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HomeMy WebLinkAboutCouncil Presentation 02/01/2022 Marana ACFR FY21TOWN OF MARANA, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2021 _____________________________ 11555 W. Civic Center Dr., A3 Marana, Arizona 85653 Issued by: Town of Marana Finance Department 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 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 86 Schedule of Changes in the Town’s Net Pension Liability (Asset) and – Related Ratios Agent Pension Plans 88 Schedule of Town Pension Contributions 92 Notes to Pension Plan Schedules 96 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 103 Transportation Capital Fund 104 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 106 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – All Non-Major Governmental Funds – By Fund Type 107 Non-Major Special Revenue Funds: Combining Balance Sheet 110 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 112 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 114 Non-Major Capital Projects Funds: Combining Balance Sheet 122 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 124 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 126 Non-Major Debt Service Fund: Combining Balance Sheet 136 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 138 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual 140 TOWN OF MARANA, ARIZONA TABLE OF CONTENTS (Cont’d) STATISTICAL SECTION FINANCIAL TRENDS Net Position by Component – Last Ten Fiscal Years 147 Changes in Net Position – Last Ten Fiscal Years 149 Fund Balances of Governmental Funds – Last Ten Fiscal Years 153 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 154 REVENUE CAPACITY Governmental Activities Tax Revenues by Source – Last Ten Years 158 Assessed Value, Estimated Actual Value and Assessment Ratios of Taxable 159 Property – Last Ten Years Property Tax Rates – Direct and Overlapping Governments – Last Ten Years 160 Principal Property Taxpayers – Current Year and Nine Years Ago 162 Property Tax Levies and Collections – Last Ten Fiscal Years 163 Tangerine Farms Road Improvement District Assessments 164 Sales Tax by Industry – Last Ten Years 175 Excise Tax Collections – Last Ten Years 177 DEBT CAPACITY Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 179 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years 180 Direct and Overlapping Governmental Activities Debt 181 Legal Debt Margin Information 182 Pledged-Revenue Coverage – Last Ten Fiscal Years 183 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 185 Principal Employers – Current Year and Nine Years Ago 186 Principal Retail and Contracting Sales Taxpayers – Current and Nine Years Ago 187 OPERATING INFORMATION Full-time Equivalent Town Government Employees by Function – Last 188 Ten Fiscal Years Single Family Residential Permits Issued – Last Ten Years 189 Capital Assets Statistics by Function 190 This page intentionally left blank INTRODUCTORY SECTION i January 4, 2022 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, 2021. 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, 2021, 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, 2021, 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 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 121.8 square miles and serves a population of 51,908 according to the 2020 US Census Bureau survey. 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, Gladden Farms II, Sunflower, Heritage Highlands, Dove Mountain, Lazy K, 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 402 full-time equivalent positions is responsible for the functions and operations of the Town government. Economic Condition and Outlook Current Condition As we are all aware, 2021 was an unprecedented 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. However, due to sound budgeting practices, receiving $5.6M from the CARES Act, individual stimulus checks to iii citizens, accelerated housing development, the lifting of restrictions on local businesses, and stronger-than-anticipated retail sales, the Town’s economy grew robustly through much of the fiscal year, although, not fully recovering from the devastating economic impacts of the pandemic. In fiscal year 2021, the Town has not only seen higher than anticipated projections and collections for key revenue streams that fund essential services, but also, significant wins in commercial development around the community. Revenues in the General Fund grew by approximately 26.9% overall with growth in transaction privilege taxes of $3.5 million or 11.5% 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 $14 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, 2021, the Town’s governmental funds reported a combined fund balance of $113.5 million, of which $67.4 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 50.7% of general fund revenues. Of those revenues, retail comprised 56.6% and restaurants and bars, construction, and utilities comprised 29.2% of total transaction privilege tax revenues. Sales taxes and revenues continued to improve during the fiscal year with the exception of hotels and lodging taxes and contracting taxes. 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 has used the following assumptions to develop the fiscal year 2021-2022 budget. • Upward economic trend assuming the COVID-19 outbreak continues to dissipate. • Inflation rate holding at 1.5%. • Population growth rate of 4% with 940 new residential home permits. Accomplishments and Initiatives During fiscal year 2021, the Town had several significant accomplishments and initiatives. Marana Parks and Recreation 10 Year Master Plan The Ten Year Marana Parks and Recreation Department’s Master Plan 2020-2030 was completed and adopted by Mayor and Council on February 2, 2021. This comprehensive planning document will be a road map for the Town’s parks and recreation development for the next decade. iv COVID-19 Pandemic Management The Town successfully transitioned the majority of Town staff to work from home to protect staff’s health, with no service interruption and no loss of productivity during the COVID-19 pandemic. An emergency communication of local and state action was administered through manager messages to the community, website management, Newsroom articles, and social media monitoring. The Legal Department provided administrative directives and emergency proclamations to address COVID-19. Human Resources facilitated the Town wide COVID-19 vaccination process. Facilities assisted and implemented safety protocols such as windows at customer facing locations, hand sanitizing stations, distancing markings, and sanitizing work stations and public amenities. Marana Visitors Center The Town remodeled the Parks Administration Building to create a Visitors Center Facility that will house the Marana Chamber of Commerce. 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 August 4, 2020, 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, 2021. 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 Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2020. This was the 13th 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 ACFR, 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 v 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 vi Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Town of Marana Arizona For its Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2020 Executive Director/CEO vii TOWN OF MARANA, ARIZONA PRINCIPAL OFFICIALS OF THE TOWN OF MARANA FISCAL YEAR 2021 MAYOR AND COUNCIL Ed Honea, Mayor Jon Post, Vice Mayor Herb Kai, Councilmember John Officer, Councilmember Roxanne Ziegler, Councilmember Jackie Craig, Councilmember Patti Comerford, Councilmember MANAGEMENT STAFF Terry Rozema, 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, Town Attorney Keith Brann, Town Engineer Yiannis Kalaitzidis, Finance Director Mohammad El-Ali, Public Works Director Heath Vescovi-Chiordi, Interim Airport Manager Reuben Nunez, Police Chief Laine McDonald, Town Magistrate Lisa Shafer, Community and Neighborhood Services Director Isaac Abbs, Technology Services Director Jim Conroy, Parks and Recreation Director Jing Luo, Utilities Director Curt Woody, Director of Economic Development viii TOWN OF MARANA, ARIZONA ORGANIZATIONAL CHART FISCAL YEAR 2021 This page intentionally left blank FINANCIAL SECTION This page intentionally left blank 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, 2021, 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 1 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, 2021, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund, Highway User Revenue Fund, and the Other Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and pension information as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Marana, Arizona’s basic financial statements. The introductory section, the combining and individual fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 2 Other Information (Continued) The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Compliance Over the Use of Highway User Revenue Fund and Other Dedicated State Transportation Revenue Monies In connection with our audit, nothing came to our attention that caused us to believe that the Town of Marana, Arizona failed to use highway user revenue fund monies received by the Town pursuant to Arizona Revised Statutes Title 28, Chapter 18, Article 2, and any other dedicated state transportation revenues received by the Town of Marana solely for the authorized transportation purposes, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the Town of Marana’s noncompliance with the use of highway user revenue fund monies and other dedicated state transportation revenues, insofar as they relate to accounting matters. The communication related to compliance over the use of highway user revenue fund and other dedicated state transportation revenue monies in the preceding paragraph is intended solely for the information and use of the members of the Arizona State Legislature, the Board of Supervisors, management, and other responsible parties with the Town and is not intended to be and should not be used by anyone other than these specified parties. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 4, 2022 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 January 4, 2022 3 This page intentionally left blank 4 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) (Required Supplementary Information) 5 This page intentionally left blank 6 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2021 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, 2021. 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 $28.3 million or 7.1 percent from the previous fiscal year 2019- 20. The increase is primarily due to an increase in cash, receivables due from other governments, deferred outflows, and a decrease in deferred inflows. The increase in cash is due to revenue collections in excess of projections and reductions to expenses. This was a result of cautious budgeting for fiscal year 2020-21 with the onset of the pandemic. The increase in receivable due from other governments is from the allocation from the American Rescue Plan Act (ARPA) for lost revenues of $8.2 million. The increase in deferred outflows and the decrease in deferred inflows related to pensions occurred primarily due to an increase in the difference between projected and actual investment earnings and a reduction in the changes in assumptions for the Arizona State Retirement System, respectively. • General revenues from governmental activities, excluding transfers, accounted for $61.7 million in revenue, or 61.9 percent of all revenues from governmental activities. Program specific revenues in the form of charges for services and grants and contributions accounted for $38 million or 38.1 percent of total revenues from governmental activities. The Town had $23.6 million of program revenues related to business-type activities. Overall revenues have increased by 6.8 percent, with increases in all categories except capital grants and contributions, investment income, and miscellaneous revenues. The largest increases in revenue in fiscal year 2020-21 was $6 million in operating grants and contributions, $3.3 million in charges for services, $2.1 in sales taxes and $2.3 million in state shared revenues. • The General Fund had $67.1 million in fiscal year 2020-21 revenues, which primarily consisted of sales taxes, intergovernmental revenue and licenses, fees and permits. This was an increase of $14.2 million contrary to the anticipated decrease due to the pandemic. The increase was a result of the ARPA funds and unprecedented growth in residential development and a 19% growth in retail trade sales tax. The General fund had $40.1 million of expenditures and $4.3 million in required transfers out during the year. The decrease of $2.3 million in expenditures is due to the reduced budget with the anticipation of lower revenue collections. The $25.2 million fund balance increase is attributed to higher than anticipated revenues in sales taxes, intergovernmental revenue, and licenses, fees and permits, as well as cautious use of Town funds for departmental expenditures. • Highway User Revenue Fund revenues remained consistent with the prior year in fiscal year 2020-21 at $4.2 million. Expenditures were slightly less than the previous year due to projected declines in revenue collections related to the pandemic. The decrease in expenditures was 9.3%. • Tangerine Farms Road Improvement District Debt Service Fund, which accounts for special assessments, had a $519,241 fund balance attributable to the accumulation of prepaid assessments and resources required for debt service payment. • The Transportation Fund had a decrease in revenue of 17.6 percent in fiscal year 2020-21 due to decreased construction tax revenues. There was an increase of 88.2 percent in expenditures due several planned projects. Specifically the Adonis Road Extension and the Adonis Drainage 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 funds from the CARES funds. In fiscal year 2020-21 the remainder of the 7 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2021 CARES funds were recognized. Overall revenues decreased by 31.3% and expenditures decreased by 40.5% in fiscal year 2020-21. 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, 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. 8 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2021 Fund financial statements. Also presented are the financial statements for governmental funds and proprietary funds. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town can be divided into two categories: governmental funds and proprietary funds. Governmental funds. Governmental 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 106. 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 103-104, 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. 9 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2021 Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found immediately following the basic financial statements. Required supplementary information other than MD&A. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Town’s 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 86-97 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 $428.5 million as of June 30, 2021. Noncurrent assets increased by $3.4 million or 1 percent due to the addition of capital assets and increased restricted cash for debt service purposes. The current assets increased by $31.7 million or 31.5 percent primarily due to an increase in cash and receivables due from other governments. The increase in cash is primarily due to a planned reduction in spending due to unknown effects of the pandemic and higher than expected revenue collections during the pandemic. The increase to receivables due from other governments is due to the funding from ARPA. The current liabilities remained fairly consistent at $22.5 million. Long-term liabilities increased by $11.8 million or 8.4 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, 2021 and June 30, 2020. 10 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2021 Governmental Activities Business-type Activities Total 2021 2020 2021 2020 2021 2020 Current and other assets $131,599,536 $109,227,186 $ 14,023,513 $ 9,358,849 $145,623,049 $118,586,035 Capital assets, net 301,486,932 303,776,864 144,117,321 133,807,290 445,604,253 437,584,154 Total assets, net 433,086,468 413,004,050 158,140,834 143,166,139 591,227,302 556,170,189 Deferred outflows related to pensions 10,931,378 7,360,900 567,075 242,121 11,498,453 7,603,021 Deferred charge on refunding 1,307,614 1,455,510 - - 1,307,614 1,455,510 Total deferred outflows of resources 12,238,992 8,816,410 567,075 242,121 12,806,067 9,058,531 Current and other liabilities 17,749,513 16,213,675 4,768,257 6,019,925 22,517,770 22,239,075 Long-term liabilities 113,621,944 109,533,832 38,972,319 31,246,634 152,594,263 140,780,466 Total liabilities 131,371,457 125,747,507 43,740,576 37,266,559 175,112,033 163,019,541 Deferred inflows related to pensions 467,204 1,916,755 - 128,975 467,204 2,045,730 Total deferred inflows of resources 467,204 1,916,755 - 128,975 467,204 2,045,730 Net position: Net investment in capital assets 243,691,969 244,996,219 106,165,559 102,911,048 349,857,528 347,907,267 Restricted 21,674,530 21,837,395 1,128,549 770,019 22,803,079 22,607,414 Unrestricted 48,120,299 27,322,584 7,673,224 2,331,659 55,793,523 29,654,243 Total net position $313,486,798 $294,156,198 $114,967,332 $106,012,726 $428,454,130 $400,168,924 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 $349.9 million or 81.7 percent, which represents the largest portion of net position. This portion of net position increased by $2 million as of June 30, 2021. 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 $22.8 million or 5.3 percent represents resources that are subject to external restrictions on how they may be utilized. This category remained consistent with the prior year. The third portion consists of unrestricted net position of $55.8 million or 13 percent. The unrestricted balance has increased by $26.1 million. The increase in governmental activities accounts for $20.8 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 $5.3 million. The increase in business-type activities was due to an overall increase in cash as a result of increased charges for services and development fees. 11 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2021 Changes in net position. The Town’s total revenues for the fiscal year ended June 30, 2021, were $123.4 million, which was an overall increase of $7.9 million or 6.8 percent. Although we collected more revenues than the previous year, the growth rate has declined significantly due to the pandemic. We projected a decline in revenue projections, which were greater than the outcome. This year we have seen record highs in residential building over the last decade. The number of single family residential permits issued increased by 24.8 percent. The total cost of all programs and services was $95.1 million. The increase of $3.6 million or 3.9 percent is primarily attributable to increased spending in General Government, Highways and Street, Water, Wastewater, and Airport. The increase in spending in the General Government function is due to increased pension expense. The increase in spending in the Highways and Street function is due to an increase in compensated absences and depreciation expense. The enterprise funds had increases in all categories of operating expenses. Primarily the contractual services increased due to costs related to implementing the Adonis sewer connection, the Airport runway safety study, and a Water study to review the Town’s existing water resources portfolio. 12 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2021 Governmental Activities Business-type Activities Total 2021 2020 2021 2020 2021 2020 Revenues: Program revenues: Charges for services $12,667,676 $11,045,881 $ 10,157,583 $ 8,505,655 $22,825,259 $19,551,536 Operating grants and contributions 14,465,174 8,469,543 - - 14,465,174 8,469,543 Capital grants and contributions 10,839,877 15,046,692 13,461,844 13,603,706 24,301,721 28,650,398 General revenues: Sales taxes 42,846,634 40,704,792 - - 42,846,634 40,704,792 Property taxes 1,420,127 1,161,124 - - 1,420,127 1,161,124 Franchise taxes 584,762 548,703 - - 584,762 548,703 State shared revenues 15,371,517 13,098,547 - - 15,371,517 13,098,547 Investment income 484,181 1,964,946 4,158 56,796 488,339 2,021,742 Miscellaneous revenues 1,002,901 1,001,722 122,960 364,473 1,125,861 1,366,195 Total revenues 99,682,849 93,041,950 23,746,545 22,530,630 123,429,394 115,572,580 Expenses: General government 22,578,082 21,040,161 - - 22,578,082 21,040,161 Public safety 19,223,164 19,980,753 - - 19,223,164 19,980,753 Highways and streets 25,728,785 25,003,972 - - 25,728,785 25,003,972 Health and welfare 460,865 442,266 - - 460,865 442,266 Economic and community development 4,158,387 4,173,881 - - 4,158,387 4,173,881 Culture and recreation 5,861,170 6,121,683 - - 5,861,170 6,121,683 Interest on long-term debt 2,346,385 2,484,808 - - 2,346,385 2,484,808 Water - - 7,795,647 6,750,034 7,795,647 6,750,034 Wastewater - - 5,345,902 4,135,927 5,345,902 4,135,927 Airport - - 1,645,801 1,392,850 1,645,801 1,392,850 Total expenses 80,356,838 79,247,524 14,787,350 12,278,811 95,144,188 91,526,335 Increase/(decrease) in net position before transfers 19,326,011 13,794,426 8,959,195 10,251,819 28,285,206 24,046,245 Transfers 4,589 (135,953) (4,589) 135,953 - - Increase/(decrease) in net position 19,330,600 13,658,473 8,954,606 10,387,772 28,285,206 24,046,245 Net position, beginning of year 294,156,198 280,497,725 106,012,726 95,624,954 400,168,924 376,122,679 Net position, end of year $313,486,798 $294,156,198 $114,967,332 $106,012,726 $428,454,130 $400,168,924 13 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2021 Governmental Activities. Governmental activities increased net position by $19.3 million for fiscal year ended June 30, 2021. This increase is attributable to holding the line on spending and increased collections of revenues greater than projected. 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 $5.5 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, 2021 Year Ended June 30, 2020 Total Net (Expense)/ Total Net (Expense)/ Expenses Revenue Expenses Revenue Governmental Activities General government $ 22,578,082 $ (8,189,953) $ 21,040,161 $(15,250,919) Public safety 19,223,164 (15,247,020) 19,980,753 (14,157,799) Highways and streets 25,728,785 (15,967,280) 25,003,972 (10,788,675) Health and welfare 460,865 (373,570) 442,266 (334,967) Economic and community development 4,158,387 4,928,238 4,173,881 3,390,396 Culture and recreation 5,861,170 (5,188,141) 6,121,683 (5,058,636) Interest on long-term debt 2,346,385 (2,346,385) 2,484,808 (2,484,808) Total $ 80,356,838 $ (42,384,111) $ 79,247,524 $(44,685,408) Business-Type Activities Water 7,795,647 $ 7,287,051 6,750,034 $ 6,038,049 Wastewater 5,345,902 2,524,629 4,135,927 2,701,558 Airport 1,645,801 (979,603) 1,392,850 1,090,943 Total $ 14,787,350 $ 8,833,324 $ 12,278,811 $ 9,830,550 • The cost of all governmental activities this year was $80.4 million. There was only a 1.4 percent increase in governmental activities expenses, which as previously mentioned is due to a conservative budget related to unknown effects of the pandemic. • Net cost of governmental activities of $42.3 million was largely financed by general revenues, which are made up of primarily sales taxes totaling $442.8 million and state shared revenues of $15.4 million. • The Water fund expenses increased $1 million or 15.4 percent. This is primarily due to increased costs overall for operating expenses. Specifically mid-year salary increases were provided, a new water resource study is being conducted by consultants, and additional costs were incurred for system repairs. • The Wastewater fund expenses increased $1.2 million or 29.3 percent. Wastewater had an overall increase in all categories of operating expenses. Specifically mid-year salary increases were provided, costs to connect residents to the new Adonis sewer connection were incurred, and an expense was recognized for an agreement to defer electric costs related to hydropower. 14 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2021 • The Airport fund expenses increase $0.3 million or 18.1 percent. The increases were primarily due to the runway study and increased depreciation expense. The following graph shows the functional revenues and expenses of the governmental activities in order to demonstrate the extent to which the governmental functions produce direct revenues to offset related program costs. It should be noted that this graph is not intended to represent a full allocation to these functions. As described above, expenses not covered by direct program revenues are covered by the Town’s general revenues which consist primarily of taxes and unrestricted State shared revenues. In governmental activities, the functional revenues of $38 million are 47.3 percent of expenses for fiscal year 2021, up from 43.6 percent a year earlier. As described earlier, this increase is attributable to higher collections for charges for services and operating 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 percent, followed by State shared revenues at 15.4 percent, operating grants and contributions at 14.5 percent, and charges for services at 12.7 percent. The Town’s largest expense category is highways and streets at 32 percent, followed by general government at 28.1 percent, and public safety at 23.9 percent. This is consistent with the allocation of expenses in the previous year. 15 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2021 16 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2021 Business-type Activities Business-type activities’ net position increased by $8.9 million for fiscal year ended June 30, 2021. This increase is largely related to higher than projected revenue collections and conservative spending. Charges for services continued to increase due to continued growth. This correlates with the increases mentioned previously for single family permits. Business-type activity expenses increased by $2.5 million or 20.4 percent primarily. All operating expenses were higher than the prior fiscal year. The Town’s largest overall business-type activity is the Water Utility with $7.8 million in expenses and $15.1 million in program revenues during the year. The second largest activity is the Wastewater Utility with $5.3 million in expenses and $7.9 million in program revenues, followed by the Airport with $1.6 million in expenses and $0.7 million in program revenues. As seen on the following graph, the largest revenue source for the Town’s business-type activities is capital grants and contributions at 56.7 percent followed by charges for services revenues at 42.8 percent. 17 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2021 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, 2021, the Town’s governmental funds reported a combined fund balance of $113.5 million, of which $67.4 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 $71.4 million. Revenues increased by 26.9 percent and expenditures decreased slightly from the previous year. The primary increases in revenues were related to sales taxes and intergovernmental revenue. The decrease in expenditures relates to conservative budgeting in response to the pandemic. The Transportation Fund had a fund balance of $12.8 million which reflected a decrease of $4.1 million from a year earlier. Sales tax revenues decreased slightly due to reduced commercial construction activity. Expenditures increased significantly, as previously mentioned, for planned construction road and drainage projects. 18 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2021 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 $115 million, $106.2 million comprised the funds’ net investment in capital assets. $1.1 million is restricted for capital projects and debt service, and unrestricted net position of $7.7 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. The governmental activities net position increased by $0.7 million with a total net position of $2 million. This balance is unrestricted for dental and medical benefits. 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. Every year we examine closely our goals and accomplishments during the budget development process. We do this to make sure that allocations are aligned with need, and that strategies are resulting in the appropriate outcomes. In fiscal year 2020-2021, the Town took extra care in the preparation of the budget due to COVID 19. All budgets were adjusted in accordance with known limitations in the wake of the pandemic. Due to projected shortfalls in sales tax and other revenues, the Town was in a holding pattern on hiring for vacant positions and worked with Department Heads on reducing their budgets by approximately 5%, while still maintaining focus on providing high levels of service. General Fund revenues exceeded conservative budget projections in several key revenue sources like sales taxes, intergovernmental, and licenses, permits and fees. Departments maintained their conservative use of available resources. As mentioned previously, the CARES funds, ARPA funds, and conservative budgeting resulted in higher than budgeted revenue collections. The prudent use of funds as well as higher than expected revenues resulted in an increase in fund balance of $25.2 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, 2021 the Town had invested $445.6 million in governmental and business-type capital assets (net of accumulated depreciation). Total depreciation expense for the year was $26.3 million, with $21.3 million attributed to governmental activities and $5 million to business-type activities. The following schedule presents capital asset balances for the fiscal years ended June 30, 2021 and June 30, 2020. Additional information on the Town’s capital assets can be found in Note 5. 19 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2021 Governmental Activities Business-type Activities Total As of As of As of As of As of As of June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 June 30, 2020 June 30, 2020 Land $ 9,478,747 $ 8,277,460 $ 4,167,618 $ 4,626,609 $ 13,646,365 $ 12,904,069 Water rights - - 4,262,697 4,155,666 4,262,697 4,155,666 Construction in progress 6,153,645 14,963,310 19,290,665 10,112,355 25,444,310 25,075,665 Buildings and improvements 65,945,662 65,557,261 153,410,834 147,233,893 219,356,496 212,791,154 Machinery and equipment 26,199,233 25,621,255 3,920,889 3,628,280 30,120,122 29,249,535 Infrastructure 455,182,556 430,158,240 - - 455,182,556 430,158,240 Less: Accumulated depreciation (261,472,912) (240,800,662) (40,935,382) (35,949,513) (302,408,294) (276,750,175) Total $301,486,931 $303,776,864 $144,117,321 $133,807,290 $445,604,252 $437,584,154 Major capital asset events during the current fiscal year included the following: • Completion of the reconstruction of Avra Valley Road for $2.7 million. • Completion of the construction of the Adonis Subdivision Drainage Improvement for $1.7 million. • Construction of the extension of Adonis Road completed for $5.2 million. • Restoration of the Camino de Oeste Road for $1.5 million. • Design and construction of the Airline/Lambert water treatment campus (construction in progress as of the close of the fiscal year had reached $7.9 million). • Design and construction of the Picture Rocks water treatment campus (construction in progress as of the close of the fiscal year had reached $7.9 million). • Design and construction of the Tangerine X-Zone Booster & PRV Station (construction in progress as of the close of the fiscal year had reached $1.3 million). • Completion of the Adonis Sewer Connection for $1.3 million. Debt Administration. At year-end, the Town had $112.7 million in long-term debt obligations outstanding with $7.3 million due within one year. The Town had new debt adding $12.4 million. The Town also had reductions of $7.9 million during the current fiscal year due to regularly scheduled principal payments and premium amortizations. This resulted in an overall increase to debt of $4.5 million. The following table presents a summary of the Town’s outstanding debt for the fiscal years ended June 30, 2021 and June 30, 2020. Additional information on the Town’s long-term obligations can be found in Note 6. 20 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2021 Governmental Activities Business-type Activities Total 2021 2020 2021 2020 2021 2020 General obligation bonds $17,800,000 $14,215,000 $ -$-$ 17,800,000 $ 14,215,000 Revenue bonds 41,970,000 45,000,000 19,780,000 19,780,000 61,750,000 64,780,000 Revenue bonds –Direct Placements 3,331,000 4,027,000 390,000 576,000 3,721,000 4,603,000 Special assessment bonds 7,529,000 9,552,000 - - 7,529,000 9,552,000 Loan payable - - 16,776,531 9,560,823 16,776,531 9,560,823 Deferred bond premium 4,766,981 5,116,387 311,494 331,182 5,078,475 5,447,569 Total $75,396,981 $77,910,387 $37,258,025 $30,248,005 $112,655,006 $108,158,392 ECONOMIC FACTORS AND NEXT YEAR’S BUDGET While the effects of the pandemic still linger, we are now slowly emerging from the initial disruption caused by the pandemic. Due to multiple factors, including sound budgeting practices, receiving $5.6 million from the CARES Act, as well as an additional $16.4 million from the American Rescue Plan, individual stimulus checks to citizens, accelerated housing development, the lifting of restrictions on local businesses, and stronger-than-anticipated retail sales projections, the Town is optimistic in its fiscal and financial position as we enter fiscal year 2021-22. The 2021-22 budget increased by $9.6 million or 6.4%. Revenues and other financing sources for the fiscal year 2021-2022 budget are $127.8 million. The financial plan assumes that $31.1 million in fund balance/equity will be used to complete previously funded projects and other onetime expenditures approved by council. The budget is structurally balanced with ongoing revenues supporting ongoing program expenditures. The budget document is the comprehensive decision making tool resulting from the annual budget process. The budget is a long-range plan by which financial policy is implemented and controlled. CONTACTING THE TOWN’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a general overview of the Town’s finances and to demonstrate the Town’s accountability for the resources it receives. If you have questions about this report or need additional information, contact the Finance Department, Town of Marana, Arizona at 11555 West Civic Center Drive, Marana, Arizona 85653, or visit www.MaranaAZ.gov. 21 This page intentionally left blank 22 BASIC FINANCIAL STATEMENTS 23 This page intentionally left blank 24 GOVERNMENT-WIDE FINANCIAL STATEMENTS 25 This page intentionally left blank 26 The notes to the financial statements are an integral part of this statement. TOWN OF MARANA, ARIZONA STATEMENT OF NET POSITION JUNE 30, 2021 Governmental Activities Business-type Activities Total ASSETS Current assets: Cash and cash equivalents 97,461,362$ 16,651,013$ 114,112,375$ Property taxes receivable 15,016 - 15,016 Accounts receivable 1,701,401 1,821,620 3,523,021 Interest receivable 106,570 - 106,570 Due from other governments 14,046,580 147,957 14,194,537 Internal balances 658,665 (658,665) - Inventories 65,724 - 65,724 Prepaid items 260,045 49,532 309,577 Total current assets 114,315,363 18,011,457 132,326,820 Noncurrent assets: Accounts receivable 5,868,000 - 5,868,000 Restricted cash and investments 6,299,679 1,128,549 7,428,228 Advances 5,116,494 (5,116,494) - Capital assets not depreciated 15,632,392 27,720,980 43,353,372 Capital assets (net of depreciation)285,854,539 116,396,341 402,250,880 Total noncurrent assets 318,771,104 140,129,376 458,900,480 Total assets 433,086,467 158,140,833 591,227,300 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions 10,931,378 567,075 11,498,453 Deferred charge on refunding 1,307,614 - 1,307,614 Total deferred outflows of resources 12,238,992 567,075 12,806,067 LIABILITIES Current liabilities: Accounts payable 5,655,253 884,414 6,539,667 Retainage payable 945,595 693,737 1,639,332 Accrued payroll and employee benefits 1,237,811 105,010 1,342,821 Unearned revenue 380,978 - 380,978 Deposits held for others 302,453 1,011,164 1,313,617 Due to other government 75,701 236,076 311,777 Claims payable 286,362 - 286,362 Accrued interest payable 1,437,692 588,116 2,025,808 Compensated absences 1,301,668 121,803 1,423,471 Loan payable - 934,937 934,937 General obligation bonds - CFD 600,000 - 600,000 Special assessment bonds - TFRID 1,661,000 - 1,661,000 Revenue bonds 3,865,000 193,000 4,058,000 Total current liabilities 17,749,513 4,768,257 22,517,770 Noncurrent liabilities: Compensated absences 144,629 13,532 158,161 Net pension liablity 44,206,334 2,596,199 46,802,533 Due to other government - 232,500 232,500 Loan payable - 15,841,594 15,841,594 General obligation bonds - CFD 18,155,652 - 18,155,652 Special assessment bonds - TFRID 5,868,000 - 5,868,000 Revenue bonds 45,247,329 20,288,494 65,535,823 Total non-current liabilities 113,621,944 38,972,319 152,594,263 Total liabilities 131,371,457 43,740,576 175,112,033 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions 467,204 - 467,204 Total deferred inflows of resources 467,204 - 467,204 NET POSITION Net investment in capital assets 243,691,969 106,165,559 349,857,528 Restricted for: Capital projects 13,073,371 160,596 13,233,967 Debt service - 967,953 967,953 General government 3,609,557 - 3,609,557 Public safety 1,023,762 - 1,023,762 Highways and streets 3,866,688 - 3,866,688 Economic and community development 101,152 - 101,152 Unrestricted 48,120,299 7,673,224 55,793,523 Total net position 313,486,798$ 114,967,332$ 428,454,130$ 27 Program Revenues Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Primary Government Governmental activities: General government 22,578,082$ 5,651,193$ 8,693,427$ 43,509$ Public safety 19,223,164 91,019 3,885,125 - Highways and streets 25,728,785 33,922 1,827,337 7,900,246 Health and welfare 460,865 86,169 1,126 - Economic and community development 4,158,387 6,626,421 56,084 2,404,120 Culture and recreation 5,861,170 178,952 2,075 492,002 Interest on long-term debt 2,346,385 - - - Total governmental activities 80,356,838 12,667,676 14,465,174 10,839,877 Business-type activities: Water 7,795,647 7,372,659 - 7,710,039 Wastewater 5,345,902 2,364,535 - 5,505,996 Airport 1,645,801 420,389 - 245,809 Total business-type activities 14,787,350 10,157,583 - 13,461,844 Total primary government 95,144,188$ 22,825,259$ 14,465,174$ 24,301,721$ General revenues: Taxes: Sales taxes Property taxes Franchise taxes State shared revenues, unrestricted Investment income Miscellaneous Transfers Total general revenues and transfers Changes in net position Net position, beginning of year Net position, end of year The notes to the financial statements are an integral part of this statement. TOWN OF MARANA, ARIZONA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2021 28 Net (Expense) Revenue and Changes in Net Position Governmental Activities Business-type Activities Totals (8,189,953)$ -$ (8,189,953)$ (15,247,020) - (15,247,020) (15,967,280) - (15,967,280) (373,570) - (373,570) 4,928,238 - 4,928,238 (5,188,141) - (5,188,141) (2,346,385) - (2,346,385) (42,384,111) - (42,384,111) - 7,287,051 7,287,051 - 2,524,629 2,524,629 - (979,603) (979,603) - 8,832,077 8,832,077 (42,384,111) 8,832,077 (33,552,034) 42,846,634 - 42,846,634 1,420,127 - 1,420,127 584,762 - 584,762 15,371,517 - 15,371,517 484,181 4,158 488,339 1,002,901 122,960 1,125,861 4,589 (4,589) - 61,714,711 122,529 61,837,240 19,330,600 8,954,606 28,285,206 294,156,198 106,012,726 400,168,924 313,486,798$ 114,967,332$ 428,454,130$ 29 This page intentionally left blank 30 FUND FINANCIAL STATEMENTS 31 General Fund Highway User Revenue Other Special Revenue Fund ASSETS Cash and cash equivalents 56,757,159$ 4,703,627$ 910,318$ Property taxes receivable - - - Accounts receivable 288,862 - - Special assessments receivable - - - Interest receivable 29,819 - - Development agreement receivable - - - Due from other funds 1,639,375 - - Due from other governments 12,458,770 364,397 285,978 Inventories 65,724 - - Prepaid items 247,244 - 6,127 Advances 2,716,494 - - Restricted cash and investments - - - Total assets 74,203,447$ 5,068,024$ 1,202,423$ LIABILITIES Accounts payable 970,031$ 1,201,336$ 138,415$ Retainage payable - 113,036 - Accrued payroll and employee benefits 1,182,794 - 37,342 Due to other funds - - - Due to other governments 75,701 - - Deposits held for others 240,053 - - Unearned revenue 378,074 - 2,904 Total liabilities 2,846,653 1,314,372 178,661 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - - 34,759 Total deferred inflows of resources - - 34,759 FUND BALANCES (DEFICITS) Nonspendable 3,029,462 - 6,127 Restricted - 3,753,652 982,876 Committed - - - Unassigned 68,327,332 - - Total fund balances (deficits)71,356,794 3,753,652 989,003 Total liabilities, deferred inflows of resources, and fund balances (deficits) 74,203,447$ 5,068,024$ 1,202,423$ TOWN OF MARANA, ARIZONA BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2021 The notes to the financial statements are an integral part of this statement. 32 Tangerine Farms Improvement District Debt Service Transportation Non-Major Governmental Funds Total Governmental Funds 519,241$ 12,535,630$ 19,500,511$ 94,926,486$ - - 15,016 15,016 - - 1,467 290,329 7,217,240 - - 7,217,240 - 67,067 9,684 106,570 - - 61,832 61,832 - - - 1,639,375 - 699,224 238,211 14,046,580 - - - 65,724 - - 6,674 260,045 - 2,400,000 - 5,116,494 - 330,740 5,968,939 6,299,679 7,736,481$ 16,032,661$ 25,802,334$ 130,045,370$ -$ 2,518,765$ 563,225$ 5,391,772$ - 737,131 95,428 945,595 - - 4,404 1,224,540 - - 980,710 980,710 - - - 75,701 - - 62,400 302,453 - - - 380,978 - 3,255,896 1,706,167 9,301,749 7,217,240 - 12,298 7,264,297 7,217,240 - 12,298 7,264,297 - - 6,674 3,042,263 519,241 330,740 23,521,052 29,107,561 - 12,446,025 1,524,534 13,970,559 - - (968,391) 67,358,941 519,241 12,776,765 24,083,869 113,479,324 7,736,481$ 16,032,661$ 25,802,334$ 130,045,370$ 33 This page intentionally left blank 34 Total governmental fund balances 113,479,324$ 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 562,959,843$ Less accumulated depreciation (261,472,912) 301,486,931 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 (1,446,297) Revenue bonds payable (45,301,000) General obligation bonds payable (17,800,000) Special assessment bonds (7,529,000) Net pension liability (44,206,334) Accrued interest payable (1,437,692) (117,720,323) 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.1,971,762 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 (4,766,981) Deferred charge on refunding 1,307,614 Deferred inflows related to pensions (467,204) Deferred outflows related to pensions 10,931,378 7,004,807 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 47,057 Special assessments revenue 7,217,240 7,264,297 Net position of governmental activities 313,486,798$ 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, 2021 35 General Fund Highway User Revenue Other Special Revenue Fund Revenues: Sales taxes 34,001,109$ -$ -$ Property taxes - - - Intergovernmental 23,559,040 3,956,482 3,930,857 Licenses, fees & permits 7,248,433 324,246 - Fines, forfeitures & penalties 436,491 - 16,200 Charges for services 541,107 - - Lease income 158,998 - - Special assessments - - - Contributions 12,636 - - Investment income 476,106 603 5,468 Miscellaneous 641,286 - - Total revenues 67,075,206 4,281,331 3,952,525 Expenditures: Current - General government 12,238,056 - 8,211 Public safety 15,375,855 - 1,591,019 Highways and streets 2,685,862 3,471,325 - Health and welfare 350,436 - - Economic and community development 4,205,306 - - Culture and recreation 4,182,708 - - Capital outlay 1,096,887 231,274 - Debt service - Principal retirement - - - Interest and fiscal charges - - - Bond issuance costs - - - Total expenditures 40,135,110 3,702,599 1,599,230 Excess (deficiency) of revenues over expenditures 26,940,096 578,732 2,353,295 Other financing sources (uses): Issuance of debt - - - Premium on bonds issued - - - Proceeds from sale of capital assets 131,810 - - Transfers in 2,480,555 - 378 Transfers out (4,306,521) - (2,480,555) Total other financing sources (uses)(1,694,156) - (2,480,177) Changes in fund balances 25,245,940 578,732 (126,882) Fund balances (deficits), beginning of year 46,110,854 3,174,920 1,115,885 Fund balances (deficits), end of year 71,356,794$ 3,753,652$ 989,003$ TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 The notes to the financial statements are an integral part of this statement. 36 Tangerine Farms Improvement District Debt Service Transportation Non-Major Governmental Funds Total Governmental Funds -$ 7,378,783$ 1,466,742$ 42,846,634$ - - 1,420,127 1,420,127 - - 80,248 31,526,627 - - 3,176,790 10,749,469 - - 42,969 495,660 - - - 541,107 - - - 158,998 2,297,832 - - 2,297,832 - 6,257 47,372 66,265 - - 2,004 484,181 - - 1,928 643,214 2,297,832 7,385,040 6,238,180 91,230,114 - 1,325,700 844,073 14,416,040 - - - 16,966,874 - - 64,885 6,222,072 - - - 350,436 - - 334,523 4,539,829 - - 42,570 4,225,278 - 9,439,498 6,328,922 17,096,581 2,023,000 - 4,296,000 6,319,000 184,838 - 2,725,219 2,910,057 - - 216,360 216,360 2,207,838 10,765,198 14,852,552 73,262,527 89,994 (3,380,158) (8,614,372) 17,967,587 - - 4,155,000 4,155,000 - - 114,985 114,985 - - - 131,810 - - 5,990,918 8,471,851 - (693,655) (986,531) (8,467,262) - (693,655) 9,274,372 4,406,384 89,994 (4,073,813) 660,000 22,373,971 429,247 16,850,578 23,423,869 91,105,353 519,241$ 12,776,765$ 24,083,869$ 113,479,324$ 37 This page intentionally left blank 38 Net changes in fund balances - total governmental funds 22,373,971$ 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 13,592,638$ Less current year depreciation (21,340,820) (7,748,182) 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 (4,155,000) Premium on bonds (114,985) Special assessment bond retirement 2,023,000 General obligation bond retirement 570,000 Revenue bond principal retirement 3,726,000 2,049,015 Contributions of infrastructure assets are not recorded as revenues in the governmental funds.5,467,986 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 40,152 Intergovernmental revenue (64,226) Special assessments (2,129,145) Compensated absences (877) Asset transfer from enterprise fund (1,247) Gain on sale of assets (8,490) Amortization of bond premium 464,391 Amortization of deferred charges (147,896) (1,847,338) 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 3,997,622 Pension revenue 27,043 Pension expense (5,715,066) (1,690,401) 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.725,549 Change in net position in governmental activities 19,330,600$ 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, 2021 39 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, 2021 Budgeted Amounts Original Final Actual Revenues: Sales taxes 24,389,464$ 24,389,464$ 34,001,109$ 9,611,645$ Intergovernmental 13,435,743 13,435,743 23,559,040 10,123,297 Licenses, fees & permits 4,453,112 4,453,112 7,248,433 2,795,321 Fines, forfeitures & penalties 408,500 408,500 436,491 27,991 Charges for services 545,000 545,000 541,107 (3,893) Lease income 145,000 145,000 158,998 13,998 Contributions 37,100 37,100 12,636 (24,464) Investment income 610,000 610,000 476,106 (133,894) Miscellaneous 512,471 512,471 641,286 128,815 Total revenues 44,536,390 44,536,390 67,075,206 22,538,816 Expenditures: General government: General government 13,621,843 13,328,843 1,965,613 11,363,230 Town council 350,244 350,244 317,314 32,930 Town clerk 497,112 497,112 452,184 44,928 Town manager 1,466,235 1,494,235 1,493,673 562 Human resources 850,605 850,605 768,253 82,352 Facilities 1,232,912 1,232,912 1,201,197 31,715 Finance 1,486,885 1,486,885 1,375,345 111,540 Legal 994,826 994,826 917,581 77,245 Technology services 3,040,575 3,040,575 2,658,240 382,335 Municipal courts 1,102,740 1,102,740 1,088,656 14,084 Total general government 24,643,977 24,378,977 12,238,056 12,140,921 Public Safety: Police 14,123,519 14,373,519 14,372,579 940 Building safety 1,011,172 1,010,633 990,492 20,141 Code Enforcement 24,400 24,400 12,784 11,616 Total public safety 15,159,091 15,408,552 15,375,855 32,697 Highways and streets 2,826,984 2,827,200 2,685,862 141,338 Health and welfare 382,925 362,425 350,436 11,989 Economic and community development: Development services 3,189,318 3,228,754 3,228,311 443 Economic development and tourism 238,458 240,458 199,894 40,564 Community development 756,673 777,173 777,101 72 Total economic and community development 4,184,449 4,246,385 4,205,306 41,079 Culture and recreation 4,723,832 4,723,832 4,182,708 541,124 Capital outlay 2,195,191 2,169,078 1,096,887 1,072,191 Total expenditures 54,116,449 54,116,449 40,135,110 13,981,339 Excess (deficiency) of revenues over expenditures (9,580,059) (9,580,059) 26,940,096 36,520,155 Other financing sources (uses): Proceeds from the sale of capital assets 100,000 100,000 131,810 31,810 Transfers in 5,628,966 5,628,966 2,480,555 (3,148,411) Transfers out (4,514,884) (4,514,884) (4,306,521) 208,363 Total other financing sources (uses)1,214,082 1,214,082 (1,694,156) (2,908,238) Changes in fund balances (8,365,977) (8,365,977) 25,245,940 33,611,917 Fund balances, beginning of year - - 46,110,854 46,110,854 Fund balances, end of year (8,365,977)$ (8,365,977)$ 71,356,794$ 79,722,771$ Variance - Positive (Negative) 40 The notes to the financial statements are an integral part of this statement. Budgeted Amounts Original Final Actual Variance - Positive (Negative) Revenues: Intergovernmental 3,276,296$ 3,276,296$ 3,956,482$ 680,186$ Licenses, fees & permits - - 324,246 324,246 Investment income 5,000 5,000 603 (4,397) Total revenues 3,281,296 3,281,296 4,281,331 1,000,035 Expenditures: Current - Highways and streets 3,868,500 3,895,824 3,471,325 424,499 Capital outlay 298,155 270,831 231,274 39,557 Total expenditures 4,166,655 4,166,655 3,702,599 464,056 Change in fund balance (885,359) (885,359) 578,732 1,464,091 Fund balances, beginning of year - - 3,174,920 3,174,920 Fund balances, end of year (885,359)$ (885,359)$ 3,753,652$ 4,639,011$ TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - HIGHWAY USER REVENUE FUND YEAR ENDED JUNE 30, 2021 41 Budgeted Amounts Original Final Actual Variance - Positive (Negative) Revenues: Intergovernmental 8,457,612$ 8,457,612$ 3,930,857$ (4,526,755)$ Fines, forfeitures & penalties 10,000 10,000 16,200 6,200 Investment income 7,500 7,500 5,468 (2,032) Miscellaneous 10,000 10,000 - (10,000) Total revenues 8,485,112 8,485,112 3,952,525 (4,532,587) Expenditures: Current - General government 7,390,000 7,352,939 8,211 7,344,728 Public safety 1,567,726 1,604,787 1,591,019 13,768 Total expenditures 8,957,726 8,957,726 1,599,230 7,358,496 Excess (deficiency) of revenues over expenditures (472,614) (472,614) 2,353,295 2,825,909 Other financing sources (uses): Transfer in 100,000 100,000 378 (99,622) Transfer out (5,628,966) (5,628,966) (2,480,555) 3,148,411 Total other financing sources (uses)(5,528,966) (5,528,966) (2,480,177) 3,048,789 Change in fund balance (6,001,580) (6,001,580) (126,882) 5,874,698 Fund balances, beginning of year - - 1,115,885 1,115,885 Fund balances, end of year (6,001,580)$ (6,001,580)$ 989,003$ 6,990,583$ TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - OTHER SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2021 42 TOWN OF MARANA, ARIZONA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2021 Business-type Activities Governmental Activities Water Wastewater Airport Total Enterprise Funds Internal Service Funds ASSETS Current assets: Cash and cash equivalents 9,981,957$ 6,578,956$ 90,100$ 16,651,013$ 2,534,876$ Accounts receivable 1,323,308 424,086 74,226 1,821,620 - Due from governments 94,798 - 53,159 147,957 - Prepaid items 49,532 - - 49,532 - Total current assets 11,449,595 7,003,042 217,485 18,670,122 2,534,876 Noncurrent assets: Restricted cash 724,015 404,534 - 1,128,549 - Capital assets not depreciated 23,551,420 2,928,207 1,241,353 27,720,980 - Capital assets (net of depreciation)36,137,595 62,775,715 17,483,031 116,396,341 - Total noncurrent assets 60,413,030 66,108,456 18,724,384 145,245,870 - Total assets 71,862,625 73,111,498 18,941,869 163,915,992 2,534,876 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions 424,347 90,842 51,886 567,075 - Total deferred outflows of resources 424,347 90,842 51,886 567,075 - LIABILITIES Current liabilities: Accounts payable 824,613 50,146 9,655 884,414 263,481 Retainage payable 693,737 - - 693,737 - Accrued payroll and employee benefits 77,628 18,448 8,934 105,010 13,271 Claims payable - - - - 286,362 Compensated absences 92,182 22,888 6,733 121,803 - Due to other funds - 250,000 408,665 658,665 - Deposits held for others 1,011,164 - - 1,011,164 - Due to other governments 236,076 - - 236,076 - Bonds payable - current 193,000 - - 193,000 - Loan payable - current 890,612 44,325 - 934,937 - Interest payable 174,427 413,689 - 588,116 - Total current liabilities 4,193,439 799,496 433,987 5,426,922 563,114 Noncurrent liabilities: Advances - 5,116,494 - 5,116,494 - Compensated absences 10,242 2,542 748 13,532 - Due to other governments - 232,500 - 232,500 Bonds payable 197,000 20,091,494 - 20,288,494 - Loan payable 15,012,168 829,426 - 15,841,594 - Net pension liability 2,020,603 325,336 250,260 2,596,199 - Total non-current liabilities 17,240,013 26,597,792 251,008 44,088,813 - Total liabilities 21,433,452 27,397,288 684,995 49,515,735 563,114 NET POSITION Net investment in capital assets 42,702,498 44,738,677 18,724,384 106,165,559 - Restricted for capital projects 160,596 - - 160,596 - Restricted for debt service 563,419 404,534 - 967,953 - Unrestricted 7,427,007 661,841 (415,624) 7,673,224 1,971,762 Total net position 50,853,520$ 45,805,052$ 18,308,760$ 114,967,332$ 1,971,762$ The notes to the financial statements are an integral part of this statement. 43 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2021 Business-type Activities Governmental Activities Water Wastewater Airport Total Enterprise Funds Internal Service Funds Operating revenues: Licenses, fees & permits 371,224$ 152,263$ -$ 523,487$ -$ Charges for services 7,001,435 2,212,272 420,389 9,634,096 5,041,997 Miscellaneous 120,309 - 2,651 122,960 - Total operating revenues 7,492,968 2,364,535 423,040 10,280,543 5,041,997 Operating expenses: Personnel costs 2,270,989 577,130 305,322 3,153,441 - Contractual services 450,188 920,321 116,083 1,486,592 896,607 Commodities 1,861,709 679,802 19,646 2,561,157 - Other 1,428,182 135,939 46,671 1,610,792 3,419,841 Depreciation expense 1,563,813 2,231,327 1,156,832 4,951,972 - Total operating expenses 7,574,881 4,544,519 1,644,554 13,763,954 4,316,448 Operating income (loss)(81,913) (2,179,984) (1,221,514) (3,483,411) 725,549 Nonoperating revenues (expenses): Contributions 147,054 158,500 - 305,554 - Investment income 3,296 862 - 4,158 - Interest expense (126,672) (801,383) - (928,055) - Gain (loss) on disposal of capital assets (94,094) - (1,247) (95,341) - Total nonoperating revenues (expenses)(70,416) (642,021) (1,247) (713,684) - Net income (loss) before contributions and transfers (152,329) (2,822,005) (1,222,761) (4,197,095) 725,549 Development fees 4,260,112 3,011,986 - 7,272,098 - Capital contributions 3,302,873 2,335,510 245,809 5,884,192 - Transfers in 1,476,231 404,504 325,145 2,205,880 - Transfers out (1,307,486) (902,983) - (2,210,469) - Changes in net position 7,579,401 2,027,012 (651,807) 8,954,606 725,549 Net position, beginning of year 43,274,119 43,778,040 18,960,567 106,012,726 1,246,213 Net position, end of year 50,853,520$ 45,805,052$ 18,308,760$ 114,967,332$ 1,971,762$ The notes to the financial statements are an integral part of this statement. 44 Business-type Activities Governmental Activities Water Wastewater Airport Total Enterprise Funds Internal Service Funds Cash flows from operating activities: Received from customers 7,082,138$ 2,186,373$ 521,910$ 9,790,421$ 5,041,997$ Payments to suppliers for goods and services (5,267,000) (1,619,257) (234,755) (7,121,012) (4,207,036) Payments to employees for services (2,200,512) (541,246) (300,229) (3,041,987) - Other receipts/payments 120,309 152,263 463,916 736,488 817 Net cash provided by (used for) operating activities (265,065) 178,133 450,842 363,910 835,778 Cash flows from non-capital activities: Interfund borrowing - (145,450) (1,231,724) (1,377,174) - Contributions 147,054 158,500 - 305,554 - Transfers in 1,476,231 404,504 325,145 2,205,880 - Transfers out (1,307,486) (902,983) - (2,210,469) - Net cash provided by (used for) non-capital activities 315,799 (485,429) (906,579) (1,076,209) - Cash flows from capital activities and related financing activities: Capital grants received 3,219,972 606,214 245,809 4,071,995 - Development fees received 4,260,112 2,853,486 - 7,113,598 - Loan proceeds 7,261,963 828,246 - 8,090,209 - Principal payments (1,030,790) (29,711) - (1,060,501) - Interest paid on debt (18,147) (811,916) - (830,063) - Proceeds from sale of capital assets - - 458,991 458,991 - Acquisition and construction of capital assets (10,231,335) (505,154) (158,963) (10,895,452) - Net cash provided by (used for) capital activities 3,461,775 2,941,165 545,837 6,948,777 - Cash flows from investing activities: Interest on investments 3,296 862 - 4,158 - Net cash provided by investing activities 3,296 862 - 4,158 - Net increase (decrease) in cash and cash equivalents 3,515,805 2,634,731 90,100 6,240,636 835,778 Cash and cash equivalents, beginning of year 7,190,167 4,348,759 - 11,538,926 1,699,098 Cash and cash equivalents, end of year 10,705,972$ 6,983,490$ 90,100$ 17,779,562$ 2,534,876$ Reconciliation of operating income (loss) to net cash provided by (used for) operating activities: Operating (loss)(81,913)$ (2,179,984)$ (1,221,514)$ (3,483,411)$ 725,549$ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation 1,563,813 2,231,327 1,156,832 4,951,972 - Changes in assets and liabilities: (Increase) decrease in accounts receivable (531,869) (25,899) 103,699 (454,069) - Decrease in due from other governments - - 461,265 461,265 - Decrease in prepaid items 41,263 - - 41,263 - (Increase) in deferred outflows of resources related to pensions (241,310) (54,393) (29,250) (324,953) Increase (decrease) in accounts payable (1,526,921) (115,695) (52,355) (1,694,971) 68,799 Increase in claims payable - - - - 40,613 Increase in accrued payroll 16,451 3,641 1,011 21,103 817 Increase (decrease) in compensated absences payable 465 3,728 (11,219) (7,026) - (Decrease) in accrued liabilities - - (2,178) (2,178) - Increase in deposits held for others 209,220 - - 209,220 - Increase (decrease) in due to other governments (9,135) 232,500 - 223,365 - Increase in net pension liability 405,560 88,290 57,455 551,305 - (Decrease) in deferred inflows of resources related to pensions (110,689) (5,382) (12,904) (128,975) - Net cash provided (used) by operating activities (265,065)$ 178,133$ 450,842$ 363,910$ 835,778$ Noncash investing, capital and financing activities: Capital contributions 2,864,305 2,098,010 - 4,962,315 - Transfer out to governmental capital asset - - (1,247) (1,247) Amortization of bond premium - (19,688) - (19,688) - Loss on disposal of capital assets (94,094) - (1,247) (95,341) - Reconciliation of cash and cash equivalents to the statement of net position: Cash and cash equivalents 9,981,957$ 6,578,956$ 90,100$ 16,651,013$ 2,534,876$ Restricted cash 724,015 404,534 - 1,128,549 - Total cash and cash equivalents 10,705,972$ 6,983,490$ 90,100$ 17,779,562$ 2,534,876$ TOWN OF MARANA, ARIZONA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2021 The notes to the financial statements are an integral part of this statement. 45 This page intentionally left blank 46 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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 Saguaro Springs Community Facilities District (SSCFD) and the Tangerine Farms Road Improvement District (TFRID). The GFCFD, GFCFD II, SSCFD and TFRID are blended component units with the Town in these financial statements as all four 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, 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 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. Separate financial statements of the TFRID are not prepared on a stand-alone basis. B. Basis of Presentation The basic financial statements include both government-wide statements and fund-based financial statements. The government-wide statements focus on the Town as a whole, while the fund-based statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the usefulness of the information. Government-wide Financial Statements The government-wide financial statements (i.e. the statement of net position and the statement of activities) present financial information about the Town as a whole. The reported information includes all of the activities of the Town and its component units. For the most part, the effect of internal activity has been removed from these statements. These statements are to distinguish between the 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. 47 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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. 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. 48 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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. 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 49 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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, 2021 in accordance with GASB 75, due to the relative insignificance to the Town’s financial statements. 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. 50 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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. Major outlays for capital assets and improvements are capitalized as projects are constructed. Depreciation is provided over the estimated useful lives of such assets using the straight-line method. These estimated useful lives are as follows: 51 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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. 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. 52 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 O. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles accepted in the United States of America requires management to make estimates and assumptions. This will affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. P. Seized Property The Town Police have in their custody certain assets seized in criminal proceedings. Until formal procedures have been finalized, the ownership of this property is not determinable. In addition, legal requirements dictate that such assets not be reflected on the Town's financial records in an agency capacity until Town ownership has been determined. Consequently, no such assets are recorded on these financial statements. Q. Deferred Outflows/Inflows of Resources The statement of net position and balance sheet include separate sections for deferred outflows of resources and deferred inflows of resources. Deferred outflows of resources represent a consumption of net position that applies to future periods that will be recognized as an expense or expenditure in future periods. Deferred inflows of resources represent an acquisition of net position or fund balance that applies to future periods and will be recognized as revenue in future periods. R. Flow Assumption Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. When both restricted and unrestricted resources are available for use, it is the Town's policy to use restricted resources first, then unrestricted resources as they are needed. Additionally, the Town funds certain programs by a combination of grants and general revenues. The Town applies grant resources to such programs before using general revenues. NOTE 2 – FUND BALANCE CLASSIFICATIONS In the fund financial statements, fund balance is reported in classifications that comprise a hierarchy based on the extent to which the Town is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The classifications of fund balance are Nonspendable, Restricted, Committed, Assigned, and Unassigned. Nonspendable and Restricted fund balances represent the restricted classifications and Committed, Assigned, and Unassigned represent the unrestricted classifications. Committed fund balance can be used only for specific purposes determined by formal action of Town Council. Town Council is the highest level of decision-making authority for the town. Commitments may be established, modified, or rescinded only through resolutions approved by Town Council. 53 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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, 2021, 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: Inventories $ 65,724 $ - $ - $ - $ - $ - Prepaid expenditures 247,244 - 6,127 - - 6,674 Long-term due from other funds 2,716,494 - - - - - Restricted: Courts - - - - - 894,969 Tourism promotion - - - - - 2,693,282 Police - - 982,876 - - - Highways and streets - 3,753,652 - - - - Housing programs - - - - - 101,152 Capital projects - - - - 330,740 13,849,293 Debt service - - - 519,241 - 5,982,356 Committed: Capital projects - - - - 12,446,025 1,524,534 Unassigned: 68,327,332 - - - - (968,391) Total fund balances: $71,326,794 $3,753,652 $989,003 $ 519,241 $12,776,765 $ 24,083,869 54 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 NOTE 3 - BUDGETARY CONTROL Excess Expenditures Over Budget – At June 30, 2021, 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 30, 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 August 4, 2020, 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, 2021. 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 Impound Fund, the Other Grants and Contributions Fund, the Series 2013 Debt Fund, the Series 2014 Debt Fund, the 2017 Debt 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, and the Saguaro Springs CFD Capital Fund. The enterprise funds, Water Utility, Wastewater Utility and Airport, are subject to flexible budgets. The Town manager is authorized to transfer budgeted amounts within any department in the General Fund or between funds for any other fund; however, any revisions that reallocate budgeted amounts between departments within the General Fund or from the budget line items labeled "contingency" must be approved by the Town Council. NOTE 4 - CASH AND INVESTMENTS A.R.S and the Town’s investment policy authorize investments in the State Treasurer’s local government investment pools, the County Treasurer’s investment pool, interest-bearing savings accounts, certificates of 55 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 deposit, and repurchase agreements in eligible depositories; commercial paper rated in the highest tier by a NRSRO; 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, 2021, the carrying amount of the Town’s deposits was $57,640,963 and the bank balance was $57,754,042. 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, $2,089,663 was covered by Federal depository insurance and $56,777,667 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 $4,475 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 $635,595. The Town’s Police Department may only use these funds for specific law enforcement activity. At June 30, 2021, 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 $ 6,701,830 $ -$ 6,701,830 $ - Federal National Mortgage Assoc 4,225,940 -4,225,940 - Federal Home Loan Banks 4,817,192 -4,817,192 - Corporate Bonds 2,063,769 2,063,769 U.S. Treasuries 11,790,722 11,790,722 - - Total investments by fair value level $ 11,790,722 $ 17,808,731 $ - External investment pools measured at fair value State Treasurer’s investment pool 5 13,662,287 State Treasurer’s investment pool 7 1,944,134 Total investments measured at fair value 45,205,874 Investments measured at amortized costs Money market investments 18,053,696 Total investments measured at amortized costs 18,053,696 Total investments $63,259,570 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. 56 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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, 2021 for Town investments was 461 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, 2021, 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, 2021 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 and Aaa by Moodys. 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. Corporate bonds were rated as follows: Standard & Poor’s Rating AA- AA AA+ Total Corporate Bonds $ 1,027,308 $ 517,587 $ 518,874 $ 2,063,769 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. Statutes require collateral for deposits at 102 percent of all deposits federal depository insurance does not cover. The Town’s investment in the State Treasurer’s investment pool represents a proportionate interest in the pool’s portfolio; however, the Town’s portion is not identified with specific investments and is not subject to custodial credit risk. Concentration of Credit Risk. The Town places no limit on the amount it may invest in any one issuer. More than 5% of the Town’s investments are in U.S. Agencies. These investments are 18.6% of the Town’s total investments. At June 30, 2021, the Town had the following investment in debt securities: Investment maturities Investment Type Amount Less than 1 Year 1-5 Years Money market investments $ 18,053,696 $ 18,053,696 $ - State Treasurer’s Investment Pool 5 13,662,287 13,662,287 State Treasurer’s Investment Pool 7 1,944,134 1,944,134 Federal Home Loan Mortgage Corp 6,701,830 -6,701,830 Federal National Mortgage Assoc 4,225,940 2,193,003 2,032,937 Federal Home Loan Banks 4,817,192 2,320,054 2,497,138 Corporate Bonds 2,063,769 -2,063,769 U.S. Treasuries 11,790,722 2,279,258 9,511,464 Total investments $ 63,259,570 $ 40,452,432 $ 22,807,138 57 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 NOTE 5 - CAPITAL ASSETS The following is a summary of the changes in capital assets for fiscal year ended June 30, 2021: Governmental Activities Beginning Balance Additions Deletions Ending Balance Capital assets, not being depreciated: Land $ 8,277,460 $ 1,201,287 $ - $ 9,478,747 Construction in progress 14,963,310 11,870,971 (20,680,636) 6,153,645 Total capital assets, not being depreciated 23,240,770 13,072,258 (20,680,636) 15,632,392 Capital assets, being depreciated: Buildings and improvements 65,557,261 388,401 - 65,945,662 Machinery, equipment, and other assets 25,621,255 1,182,018 (604,040) 26,199,233 Infrastructure 430,158,240 25,024,316 - 455,182,556 Total capital assets being depreciated 521,336,756 26,594,735 (604,040) 547,327,451 Less accumulated depreciation for: Buildings and improvements (22,034,517) (1,922,892) - (23,957,409) Machinery, equipment, and other assets (16,599,335) (1,592,975) 594,308 (17,598,002) Infrastructure (202,166,810) (17,750,691) - (219,917,501) Total accumulated depreciation (240,800,662) (21,266,558) 594,308 (261,472,912) Total capital assets, being depreciated, net 280,536,094 5,328,177 (9,732) 285,854,539 Governmental activities capital assets, net $303,776,864 $18,400,435 $(20,690,368) $301,486,931 Governmental activities depreciation expense was charged to function/programs as follows: Governmental Activities: General government $ 912,233 Public safety 1,004,070 Highways and streets 17,275,360 Economic and community development 164,415 Health and Welfare 12,514 Culture and recreation 1,972,228 Total depreciation expense – governmental activities $ 21,340,820 The difference of $74,262 between total increases to accumulated depreciation and total depreciation expense is due to the inclusion of transfers of capital assets from the business-type activities. 58 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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 $ 1,156,832 Water 1,563,813 Wastewater 2,231,327 Total depreciation expense – business-type activities $ 4,951,972 The difference of $74,262 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, 2021 on the outstanding balance is 1.468 percent. Business-type Activities Beginning Balance Additions Deletions Ending Balance Capital assets, not being depreciated: Land $ 4,626,609 $ - $ (458,991) $ 4,167,618 Water rights 4,155,666 173,864 (66,833) 4,262,697 Construction in progress 10,112,355 10,550,919 (1,372,609) 19,290,665 Total capital assets, not being depreciated 18,894,630 10,724,783 (1,898,433) 27,720,980 Capital assets, being depreciated: Buildings, improvements and infrastructure 147,233,893 6,220,405 (43,464) 153,410,834 Machinery, equipment, and other assets 3,628,280 316,772 (24,163) 3,920,889 Total capital assets being depreciated 150,862,173 6,537,177 (67,627) 157,331,723 Less accumulated depreciation for: Buildings, improvements and infrastructure (34,652,871) (4,524,427) 21,610 (39,155,688) Machinery, equipment, and other assets (1,296,642) (501,807) 18,755 (1,779,694) Total accumulated depreciation (35,949,513) (5,026,234) 40,365 (40,935,382) Total capital assets, being depreciated, net 114,912,660 1,510,943 (27,262) 116,396,341 Business-type activities capital assets, net $133,807,290 $12,235,726 $(1,925,695) $144,117,321 59 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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 $14,402,499 of the loan, leaving $597,501 available for drawdown. The interest rate at June 30, 2021 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 had drawn the entire forgivable portion plus $711,230 of the loan and returned $29,764. The interest rate at June 30, 2021 on the outstanding balance is 2.508 percent. During 2020, the Town obtained $1,100,000 in additional financing from WIFA for the two water treatment campuses. $525,500 of the principal amount is forgivable. As of year-end, the Town has drawn the entire forgivable portion plus $192,969 of the loan, leaving $381,531 available for drawdown. 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 drawn the entire forgivable portion plus $221,216 of the loan and returned $16,283. Outstanding June 30, 2021 $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. $ 2,503,250 $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. 13,206,561 $711,231 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. 652,535 $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. 192,969 $221,216 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. 221,216 Total $ 16,776,531 The following is a schedule by years of the debt service requirements for the loan as of June 30, 2021. Fiscal Year Principal Interest Total 2022 $ 934,937 $ 176,292 $ 1,111,229 2023 952,911 200,586 1,153,497 2024 977,332 187,635 1,164,967 2025 1,002,386 174,351 1,176,737 2026 1,028,090 160,725 1,188,815 2027 – 2031 5,161,219 590,591 5,751,810 2032 – 2036 4,396,766 289,110 4,685,876 2037 – 2041 2,322,890 36,865 2,359,755 Totals $ 16,776,531 $ 1,816,155 $ 18,592,686 60 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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. 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. During 2021, Gladden Farms Community Facilities District (a component unit) issued $4,155,000 of Series 2020 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, 2021, were as follows: Outstanding June 30, 2021 $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. $ 6,865,000 $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. 3,640,000 $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. 1,895,000 $4,155,000 Gladden Farms CFD General Obligation Bonds, 2020 Series, due in annual installments of $100,000 to $405,000; through July 15, 2041; at a 2.375% to 3.0% interest rate. 4,155,000 Total $ 17,800,000 61 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 Annual debt service requirements to maturity on the CFD general obligation bonds at June 30, 2021, are summarized as follows: Year ending June 30 Principal Interest Total 2022 $ 600,000 $ 605,350 $ 1,205,350 2023 620,000 589,350 1,209,350 2024 635,000 570,175 1,205,175 2025 755,000 548,975 1,303,975 2026 780,000 523,225 1,303,225 2027 – 2031 4,335,000 2,143,631 6,478,631 2032 – 2036 4,375,000 1,260,506 5,635,506 2037 – 2041 3,685,000 630,744 4,315,744 2042 – 2045 2,015,000 121,794 2,136,794 Totals $ 17,800,000 $ 6,993,750 $ 24,793,750 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, 2021, were as follows: Outstanding June 30, 2021 $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%. $ 7,529,000 Annual debt service requirements to maturity on the TFRID special assessment bonds at June 30, 2021, are summarized as follows: Year ending June 30 Principal Interest Total 2022 $ 1,661,000 $ 145,000 $ 1,806,000 2023 1,426,000 115,013 1,541,013 2024 1,453,000 87,063 1,540,063 2025 1,481,000 58,584 1,539,584 2026 1,508,000 29,557 1,537,557 Totals $ 7,529,000 $ 435,217 $ 7,964,217 62 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 D. Revenue Bonds – Public Placement 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, 2021, were as follows: Outstanding June 30, 2021 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. $ 25,380,000 $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. 16,590,000 $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 $ 41,970,000 $ 19,780,000 Annual debt service requirements to maturity on revenue bonds at June 30, 2021, are summarized as follows: Governmental Activities Business-type Activities Year ending June 30 Principal Interest Principal Interest 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 4,395,000 1,204,625 - 809,069 2027-2031 17,565,000 2,826,075 100,000 4,041,344 2032-2036 4,920,000 377,000 4,540,000 3,747,469 2037-2041 - - 10,390,000 2,001,347 2042-2043 - - 4,750,000 191,800 Totals $ 41,970,000 $ 11,217,050 $ 19,780,000 $14,027,305 63 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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, 2021 were as follows: Outstanding June 30, 2021 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. $ 3,331,000 $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. $ 390,000 Total $ 3,331,000 $ 390,000 Annual debt service requirements to maturity on direct placement revenue bonds at June 30, 2021, are summarized as follows: Governmental Activities Business-type Activities Year ending June 30 Principal Interest Principal Interest 2022 $ 715,000 $ 75,825 $ 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 $ 3,331,000 $ 205,977 $ 390,000 $ 9,918 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 $16.5 million in Water Infrastructure Financing Authority loans issued in 2019 and 2020. The loans were issued for wastewater improvements in the Adonis neighborhood and water quality treatment campuses. At year end, $65.1 million in bonds remain outstanding and $14.3 million in loans remain outstanding to be repaid by future excise tax revenues. The net revenues available for service of this debt were $63.4 million. The debt principal and interest paid on this debt during fiscal year 2021 was $6.7 million (10.6% of available net pledged revenues). 64 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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, $2.9 million remains outstanding to be repaid by future water revenues. For the fiscal year ended June 30, 2021, the net revenues available for service of this debt were $5.7 million. The debt principal and interest paid, including fees, on this debt during fiscal year 2021 was $515,687. 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, 2021, the total legal debt limit was $174,478,734. As of June 30, 2021, 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, 2021. Governmental activities: Beginning Balance Additions Reductions Ending Balance Due Within One Year General obligation bonds $ 14,215,000 $4,155,000 $ (570,000) $ 17,800,000 $ 600,000 Revenue bonds – Public Placements 45,000,000 - (3,030,000) 41,970,000 3,150,000 Revenue bonds – Direct Placements 4,027,000 - (696,000) 3,331,000 715,000 Compensated absences 1,445,420 1,176,763 (1,175,886) 1,446,297 1,301,668 Net pension liability 37,495,904 6,710,430 - 44,206,334 - Special assessment bonds 9,552,000 - (2,023,000) 7,529,000 1,661,000 Bond premium 5,116,387 114,985 (464,391) 4,766,981 - Total $116,851,711 $12,157,178 $(7,959,277) $121,049,612 $7,427,668 Business-type activities: Loan payable $ 9,560,823 $8,090,210 $ (874,502) $ 16,776,531 $ 934,937 Net pension liability 2,044,894 551,305 - 2,596,199 - Revenue bonds – Public Placement 19,780,000 - - 19,780,000 - Revenue bonds – Direct Placement 576,000 (186,000) 390,000 193,000 Compensated absences 142,362 106,878 (113,905) 135,335 121,803 Bond premium 331,182 - (19,688) 311,494 - Total $ 32,435,261 $8,748,393 $(1,194,095) $ 39,989,559 $1,249,740 65 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 NOTE 7 – UNAVAILABLE AND UNEARNED 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) $ - $ 378,074 Intergovernmental (Other Special Revenue Fund) 34,759 2,904 Intergovernmental (Non-Major Governmental Funds) 12,298 - Special assessments (Tangerine Farms Improvement District Debt Service Fund) 7,217,240 - Total deferred amounts for governmental funds $ 7,264,297 $ 380,978 NOTE 8 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS Due to/from other funds: At June 30, 2021, 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 Wastewater Fund, $2,400,000 to the Transportation Fund and $2,716,494 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 $ 980,710 $ 2,966,494 $ 408,665 $ 4,355,869 Transportation Fund - 2,400,000 - 2,400,000 Total $ 980,710 $ 5,366,494 $ 408,665 $ 6,755,869 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. Specifically, the General Fund and select Non-Major Governmental funds transferred funds to provide the resources for debt service payments. The Other Special Revenue Funds transferred funds to the General Fund for the AZ CARES allocation, which provided resources for public safety purposes. Listed below is a summary of transfers between funds. 66 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 Transfers In Enterprise Funds Transfers Out General Fund Other Special Revenue Fund Non-Major Governmental Funds Water Wastewater Airport Total General Fund $- $378 $2,504,767 $1,476,231 $ - $325,145 $4,306,521 Transportation 693,655 693,655 Other Special Revenue Funds 2,480,555 2,480,555 Non-Major Governmental Funds 986,531 986,531 Water 902,982 404,504 1,307,486 Wastewater 902,983 902,983 Total $2,480,555 $378 $5,990,918 $1,476,231 $404,504 $325,145 $10,677,731 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, 2021, 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 $ 44,206,334 $ 2,596,199 $ 46,802,533 Deferred outflows of resources 10,931,378 567,075 11,498,453 Deferred inflows of resources 467,204 - 467,204 Pension expense 5,715,066 294,242 6,009,308 The Town reported $3,997,622 of pension contributions as expenditures in the governmental funds related to all pension plans to which it contributes. 67 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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, 2021 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, 2021, statute required active ASRS members to contribute at the actuarially determined rate of 12.22 percent (12.04 percent for retirement and 0.18 percent for long-term disability) of the members’ annual covered payroll, and statute required the Town to contribute at the actuarially determined rate of 12.22 percent (11.65 percent for retirement, 0.39 percent for health insurance premium benefit, and 0.18 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 10.21 percent (10.14 percent for retirement and 0.07 percent for long-term 68 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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, 2021, were $1,856,449. During fiscal year 2021, the Town paid for ASRS pension contributions as follows: 86.66% percent from the General Fund and 13.34% from enterprise funds. Pension liability—At June 30, 2021, the Town reported a liability of $24,730,142 for its proportionate share of the ASRS’ net pension liability. The net pension liability was measured as of June 30, 2020. 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, 2019, to the measurement date of June 30, 2020. 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, 2020. The Town’s proportion measured as of June 30, 2020, was 0.14273 percent, which was an increase of 0.00269 percent from its proportion measured as of June 30, 2019. Pension expense and deferred outflows/inflows of resources—For the year ended June 30, 2021, the Town recognized pension expense for ASRS of $2,323,117. At June 30, 2021, 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 $ 223,727 $ - Changes of assumptions or other inputs - - Net difference between projected and actual earnings on pension plan investments 2,385,251 - Changes in proportion and differences between contributions and proportionate share of contributions 263,805 100,760 Town contributions subsequent to the measurement date 1,856,449 - Total $ 4,729,232 $ 100,760 The $1,856,449 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, 2022. 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, 2022 $ 315,135 2023 856,371 2024 862,771 2025 737,746 Thereafter - 69 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 Actuarial Assumptions—The significant actuarial assumptions used to measure the total pension liability are as follows: ASRS Actuarial valuation date June 30, 2019 Actuarial roll forward date June 30, 2020 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, 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 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% 6.39% Fixed income - credit 20% 5.44% Fixed income – interest rate sensitive 10% 0.22% 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 70 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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 $33,818,134 $24,730,142 $17,133,048 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, 2021 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: 71 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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 72 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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, 2021, the following employees were covered by the agent pension plans’ benefit terms: 73 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 PSPRS CORP Dispatchers Inactive employees or beneficiaries currently receiving benefits 34 1 Inactive employees entitled to but not yet receiving benefits 19 2 Active employees 70 6 Total 123 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, 2021, 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 35.24% 35.24% 9.21% 24.98% Health insurance premium benefit .25% .25% .14% .46% Also, the PSPRS Board of Trustees required an additional employer contribution of 21.45 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 21.45 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, 2021, were: PSPRS CORP Dispatchers Pension Contributions $ 2,228,298 $ 91,436 Health Insurance Premium Benefit 17,953 1,684 Total Contributions $ 2,246,251 $ 93,120 During fiscal year 2021, the Town paid for PSPRS and CORP pension contributions as follows: 93% percent from the General Fund and 7% percent from other funds. Pension liability—At June 30, 2021, the Town reported the following net pension liabilities: Net Pension Liability PSPRS 19,858,620 CORP Dispatchers 1,179,533 Total 21,038,153 74 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 The net pension liabilities were measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. 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, 2020 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, 2020 valuation were based on the results of an actuarial experience study for the 5-year period ended June 30, 2017. 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. public equity 23% 4.93% International public equity 15% 6.09% Global private equity 18% 8.42% Other assets (capital appreciation) 7% 5.61% Core bonds 2% 0.22% Private credit 22% 5.31% Diversifying strategies 12% 3.22% Cash – Mellon 1% -0.60% Total 100% Pension discount rates—At June 30, 2020, the discount rate used to measure the PSPRS and CORP total pension liabilities was 7.3 percent. 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. 75 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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, 2020 $39,756,179 $22,557,297 $17,198,882 Changes for the year: Service cost 1,130,556 - 1,130,556 Interest on the total pension liability 2,922,105 - 2,922,105 Differences between expected and actual experience in the measurement of the pension liability 1,261,412 - 1,261,412 Contributions—employer - 2,024,395 (2,024,395) Contributions—employee - 467,180 (467,180) Net investment income - 305,606 (305,606) Benefit payments, including refunds of employee contributions (1,715,812) (1,715,812) - Pension plan administrative expense - (24,918) 24,918 Net changes 3,598,261 1,056,451 2,541,810 Adjustment to Beginning of Year - (117,928) 117,928 Balances at June 30, 2021 $43,354,440 $23,495,820 $19,858,620 CORP Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability (Asset) (a) – (b) Balances at June 30, 2020 $2,561,234 $1,580,698 $980,536 Changes for the year: Service cost 41,671 - 41,671 Interest on the total pension liability 189,052 - 189,052 Changes of benefit terms - - Differences between expected and actual experience in the measurement of the pension liability 108,881 - 108,881 Benefit payments, including refunds of employee contributions (26,303) (26,303) - Contributions—employer - 70,986 (70,986) Contributions—employee - 29,446 (29,446) Net investment income - 41,793 (41,793) Pension plan administrative expense - (1,618) 1,618 Net changes 313,301 114,304 198,997 Balances at June 30, 2021 $2,874,535 $1,695,002 $1,179,533 76 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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, 2021, the Town recognized the following pension expense/(income): Pension Expense/(Income) PSPRS 3,256,929 CORP Dispatchers 190,298 Pension deferred outflows/inflows of resources—At June 30, 2021, 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 $ 1,544,207 $ 333,362 Changes of assumptions or other inputs 1,346,750 - Net difference between projected and actual earnings on pension plan investments 1,160,873 - Town contributions subsequent to the measurement date 2,228,298 - Total $ 6,280,128 $ 333,362 1% Decrease Current Discount Rate 1% Increase PSPRS Rate 6.30% 7.30% 8.30% Net pension liability $26,472,720 $19,858,620 $14,528,998 CORP Dispatchers Rate 6.30% 7.30% 8.30% Net pension liability $1,553,986 $1,179,533 $866,863 77 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 CORP Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $ 193,924 $ 30,899 Changes of assumptions or other inputs 28,759 1,334 Net difference between projected and actual earnings on pension plan investments 69,769 - Town contributions subsequent to the measurement date 91,436 - Total $ 383,888 $ 32,233 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, 2022. 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 2022 $958,164 $91,225 2023 938,990 109,327 2024 703,316 44,418 2025 577,489 15,249 2026 360,307 - Thereafter 180,202 - 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: 78 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 EORP Initial membership date: Before January 1, 2012 On or after January 1, 2012 Retirement and Disability Years of service and age required to receive benefit 20 years, any age 10 years, age 62 5 years, age 65 5 years, any age* any years and age if disabled 10 years, age 62 5 years, age 65 any years and age if disabled Final average salary is based on Highest 36 consecutive months of last 10 years Highest 60 consecutive months of last 10 years Benefit percent Normal Retirement 4% per year of service, not to exceed 80% 3% per year of service, not to exceed 75% Disability Retirement 80% with 10 or more years of service 40% with 5 to 10 years of service 20% with less than 5 years of service 75% with 10 or more years of service 37.5% with 5 to 10 years of service 18.75% with less than 5 years of service Survivor Benefit Retired Members 75% of retired member’s benefit 50% of retired member’s benefit Active Members and Other Inactive Members 75% of disability retirement benefit 50% of disability retirement benefit * With reduced benefits of 0.25% for each month early retirement precedes the member’s normal retirement age, with a maximum reduction of 30%. Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on inflation. In addition, the Legislature may enact permanent one-time benefit increases after a Joint Legislative Budget Committee analysis of the increase’s effects on the plan. Health insurance premium benefits are available to retired or disabled members with 5 years of credited service. The benefits are payable only with respect to allowable health insurance premiums for which the member is responsible. For members with 8 or more years of service, benefits range from $100 per month to $260 per month depending on the age of the member and dependents. For members with 5 to 7 years of service, the benefits are the same dollar amounts as above multiplied by a vesting fraction based on completed years of service. Contributions—State statutes establish active member and employer contribution requirements. Statute also appropriates $5 million annually through fiscal year 2043 for the EORP from the State of Arizona to supplement the normal cost plus an amount to amortize the unfunded accrued liability. For the year ended June 30, 2021, 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 79 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 employee who contributes to the EORP would typically fill. The Town’s contributions to the pension plan for the year ended June 30, 2021, was $69,196. During fiscal year 2021, the Town paid for EORP pension contributions 100 percent from the General Fund. Pension liability—At June 30, 2021, 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 $ 1,034,238 State’s proportionate share of the EORP net pension liability associated with the Town 89,765 Total $ 1,124,003 The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. 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, 2020. The Town’s proportion measured as of June 30, 2020, was .1532 percent, which was an increase of .0049 percent from its proportion measured as of June 30, 2019. Pension expense/income and deferred outflows/inflows of resources—For the year ended June 30, 2021, the Town recognized pension income of $27,043 and pension expense of $85,367. At June 30, 2021, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: EORP Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $ - $ 849 Changes of assumptions or other inputs - - Net difference between projected and actual earnings on pension plan investments 19,931 - Changes in proportion and differences between employer contributions and proportionate share of contributions 16,079 - Town contributions subsequent to the measurement date 69,196 Total $ 105,206 $ 849 The $69,196 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, 2022. 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: 80 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 Year ending June 30, 2022 $ 17,960 2023 6,423 2024 6,284 2025 4,494 Thereafter - Actuarial assumptions—The significant actuarial assumptions used to measure the total pension liability are as follows: EORP Actuarial valuation date June 30, 2020 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, 2020, valuation were based on the results of an actuarial experience study for the 5-year period ended June 30, 2017. 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: EORP Asset Class Target Allocation Long-Term Expected Geometric Real Rate of Return U.S. public equity 23% 4.93% International public equity 15% 6.09% Global private equity 18% 8.42% Other assets (capital appreciation) 7% 5.61% Core bonds 2% 0.22% Private credit 22% 5.31% Diversifying strategies 12% 3.22% Cash – Mellon 1% -0.60% Total 100% Discount rate—At June 30, 2020, the discount rate used to measure the EORP total pension liability was 7.3 percent. 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 81 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 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 $909,735 $1,034,238 $1,179,850 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 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 2021, the Town was obligated to $2.9 million in significant contractual commitments for vehicles and airport, transportation, park, and water facility related construction projects. 82 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 Various street projects accounted for $1.5 million, new vehicles accounted for $582,340 and the Northwest Recharge and Recovery Delivery system accounted for $192,275. The remaining commitments were for other water projects of $273,950, facility related projects accounted for $189,351, park related projects accounted for $156,867, and airport related projects accounted for $54,215. 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: Years Ending June 30, 2022 632,491 2023 632,491 2024 632,491 2025 632,491 2026 695,740 2027 - 2031 3,548,274 2032 - 2036 3,903,101 2037 - 2041 4,293,410 2042 - 2046 4,722,753 2047 - 2051 5,195,028 2052 - 2056 5,714,530 2057 - 2061 6,285,985 2062 - 2066 6,914,585 2067 - 2071 7,606,043 2072 - 2076 8,366,647 2077 - 2081 9,203,312 2082 - 2086 10,123,643 2087 - 2091 11,136,008 2092 - 2096 12,249,608 2097 - 2099 7,926,216 Total $ 110,414,847 83 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021 Minimum annual rentals above excludes annual rental under the remaining renewal options as of June 30, 2021. Rent expense under the above leases for fiscal 2020-21 aggregated $632,491. NOTE 13 – SUBSEQUENT EVENTS Gladden Farms Community Phase II Facilities District – Debt Issuance In September 2021, the District issued the Series 2021 General Obligation Bonds (Bonds) in the amount of $4,080,000, maturing in 2046, with an interest rate of 3.0% to 4.0%. 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. Saguaro Springs Facilities District – Debt Issuance In September 2021, the District issued the Series 2021 General Obligation Bonds (Bonds) in the amount of $2,720,000, maturing in 2046, with an interest rate of 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. 84 REQUIRED SUPPLEMENTARY INFORMATION 85 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, 2021 See accompanying notes to pension plan schedules. Arizona State Retirement System Reporting Fiscal Year (Measurement Date) 2021 (2020) 2020 (2019) 2019 (2018) 2018 (2017) 2017 (2016) Town’s proportion of the net pension liability 0.14273% 0.14004% 0.14221% 0.14286% 0.140584% Town’s proportionate share of the net pension liability $ 24,730,142 $ 20,377,449 $ 19,833,290 $ 22,254,803 $ 22,691,024 Town’s covered payroll $ 15,605,818 $ 14,773,437 $ 14,143,225 $ 13,881,636 $ 13,150,962 Town’s proportionate share of the net pension liability as a percentage of its covered payroll 158.47% 137.93% 140.23% 160.32% 172.54% Plan fiduciary net position as a percentage of the total pension liability 69.33% 73.24% 73.40% 69.92% 67.06% 2016 (2015) 2015 (2014) 2014 through 2012 Town’s proportion of the net pension liability 0.136510% 0.129998% Information not available 10 years of information will be reported as it becomes available Town’s proportionate share of the net pension liability $ 21,263,376 $ 19,235,271 Town’s covered payroll $ 12,565,464 $ 11,714,615 Town’s proportionate share of the net pension liability as a percentage of its covered payroll 169.22% 164.20% Plan fiduciary net position as a percentage of the total pension liability 68.35% 69.49% 86 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, 2021 See accompanying notes to pension plan schedules. Elected Officials Retirement Plan Reporting Fiscal Year (Measurement Date) 2021 (2020) 2020 (2019) 2019 (2018) 2018 (2017) 2017 (2016) Town’s proportion of the net pension liability .153230% .148366% .155545% .150480% .148768% Town’s proportionate share of the net pension liability $1,034,238 $983,931 $980,148 $1,833,747 $1,405,489 State’s proportionate share of the net pension liability associated with the Town 89,765 88,985 167,942 380,586 290,197 Total $1,124,003 $1,072,916 $1,148,090 $2,214,333 $1,695,686 Town’s covered payroll $119,423 $119,423 $116,021 $119,424 $119,424 Town’s proportionate share of the net pension liability as a percentage of its covered payroll 866.03% 823.90% 844.80% 1,535.49% 1,176.89% Plan fiduciary net position as a percentage of the total pension liability 29.80% 30.14% 30.36% 19.66% 23.42% 2016 (2015) 2015 (2014) 2014 through 2012 Town’s proportion of the net pension liability .133401% .1658860% Information not available 10 years of information will be reported as it becomes available Town’s proportionate share of the net pension liability $1,042,465 $ 1,112,385 State’s proportionate share of the net pension liability associated with the Town 324,997 341,068 Total $1,367,462 $ 1,453,453 Town’s covered payroll $119,424 $ 119,423 Town’s proportionate share of the net pension liability as a percentage of its covered payroll 872.91% 931.15% Plan fiduciary net position as a percentage of the total pension liability 28.32% 31.91% 87 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, 2021 See accompanying notes to pension plan schedules. PSPRS Reporting Fiscal Year (Measurement Date) 2021 (2020) 2020 (2019) 2019 (2018) 2018 (2017) 2017 (2016) Total pension liability Service cost $1,130,556 $1,116,409 $1,100,133 $ 1,213,757 $ 994,058 Interest on the total pension liability 2,922,105 2,689,703 2,538,335 2,322,987 2,005,255 Changes of benefit terms - - - 367,673 1,837,430 Differences between expected and actual experience in the measurement of the pension liability 1,261,412 284,100 (566,255) 340,373 536,692 Changes of assumptions or other inputs - 1,136,498 - 725,862 1,226,081 Benefit payments, including refunds of employee contributions (1,715,812) (1,402,911) (1,783,172) (1,387,192) (1,174,525) Net change in total pension liability 3,598,261 3,823,799 1,289,041 3,583,460 5,424,991 Total pension liability—beginning 39,756,179 35,932,380 34,643,339 31,059,879 25,634,888 Total pension liability—ending (a) $43,354,440 $39,756,179 $35,932,380 $34,643,339 $31,059,879 Plan fiduciary net position Contributions—employer $2,024,395 $2,011,933 $1,904,911 $1,384,924 $1,323,677 Contributions—employee 467,180 406,546 488,777 621,583 672,181 Net investment income 305,606 1,190,198 1,355,793 2,081,790 95,438 Benefit payments, including refunds of employee contributions (1,715,812) (1,402,911) (1,783,172) (1,387,192) (1,174,525) Hall/Parker Settlement - - (780,563) - - Pension plan administrative expense (24,918) (21,675) (21,335) (18,820) (14,134) Other changes - - 227 2,417 223,597 Net change in plan fiduciary net position 1,056,451 2,184,091 1,164,638 2,684,702 1,126,234 Plan fiduciary net position—beginning 22,557,297 20,384,543 19,219,905 16,535,203 15,408,969 Adjustment to Beginning of Year (117,928) (11,337) Plan fiduciary net position—ending (b) $23,495,820 $22,557,297 $20,384,543 $19,219,905 $16,535,203 Town’s net pension liability (asset)—ending (a) – (b) $19,858,620 $17,198,882 $15,547,837 $15,423,434 $14,524,676 Plan fiduciary net position as a percentage of the total pension liability 54.19% 56.74% 56.73% 55.48% 53.24% Covered payroll $5,207,363 $5,272,202 $5,121,661 $5,318,831 $5,182,784 Town’s net pension liability (asset) as a percentage of covered payroll 381.36% 326.22% 303.57% 289.98% 280.25% 88 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, 2021 See accompanying notes to pension plan schedules. PSPRS Reporting Fiscal Year (Measurement Date) 2016 (2015) 2015 (2014) 2014 through 2012 Total pension liability Information not available 10 years of information will be reported as it becomes available Service cost $ 891,324 $ 876,619 Interest on the total pension liability 1,844,654 1,551,602 Changes of benefit terms - 308,515 Differences between expected and actual experience in the measurement of the pension liability 333,269 148,583 Changes of assumptions or other inputs - 1,933,583 Benefit payments, including refunds of employee contributions (974,950) (1,211,258) Net change in total pension liability 2,094,297 3,607,644 Total pension liability—beginning 23,540,591 19,932,947 Total pension liability—ending (a) $25,634,888 $ 23,540,591 Plan fiduciary net position Contributions—employer $1,006,859 $ 797,871 Contributions—employee 579,390 578,596 Net investment income 533,938 1,698,902 Benefit payments, including refunds of employee contributions (974,950) (1,211,258) Hall/Parker Settlement - - Pension plan administrative expense (13,410) - Other changes 46,032 (543,969) Net change in plan fiduciary net position 1,177,859 1,320,142 Plan fiduciary net position—beginning 14,231,110 12,910,968 Plan fiduciary net position—ending (b) $15,408,969 $ 14,231,110 Town’s net pension liability (asset)—ending (a) – (b) $10,225,919 $ 9,309,481 Plan fiduciary net position as a percentage of the total pension liability 60.11% 60.45% Covered payroll $4,900,569 $ 4,638.415 Town’s net pension liability (asset) as a percentage of covered payroll 208.67% 200.70% 89 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, 2021 See accompanying notes to pension plan schedules. CORP – Dispatchers Reporting Fiscal Year (Measurement Date) 2021 (2020) 2020 (2019) 2019 (2018) 2018 (2017) 2017 (2016) Total pension liability Service cost $41,671 $60,952 $ 62,894 $ 59,139 $ 57,866 Interest on the total pension liability 189,052 157,366 150,833 118,108 113,075 Changes of benefit terms - - (111,265) 312,169 15,002 Differences between expected and actual experience in the measurement of the pension liability 108,881 224,526 (40,404) (18,913) (25,358) Changes of assumptions or other inputs - 56,044 - (5,967) (136) Benefit payments, including refunds of employee contributions (26,303) (6,543) - (5,825) (47,673) Net change in total pension liability 313,301 492,345 62,058 458,711 112,776 Total pension liability—beginning 2,561,234 2,068,889 2,006,831 1,548,120 1,435,344 Total pension liability—ending (a) $2,874,535 $2,561,234 $2,068,889 $ 2,006,831 $ 1,548,120 Plan fiduciary net position Contributions—employer $70,986 $83,517 $ 57,269 $ 51,162 $ 48,648 Contributions—employee 29,446 31,930 32,445 32,199 32,623 Net investment income 41,793 79,174 90,441 124,809 6,034 Benefit payments, including refunds of employee contributions (26,303) (6,543) - (5,825) (47,673) Pension plan administrative expense (1,618) (2,113) (2,068) (1,491) (1,253) Other changes - - (22) (6) (5) Net change in plan fiduciary net position 114,304 185,965 178,065 200,848 38,374 Plan fiduciary net position—beginning 1,580,698 1,394,733 1,216,668 1,015,820 977,446 Plan fiduciary net position—ending (b) $1,695,002 $1,580,698 $1,394,733 $ 1,216,668 $ 1,015,820 Town’s net pension liability (asset)—ending (a) – (b) $1,179,533 $980,536 $ 674,156 $ 790,163 $ 532,300 Plan fiduciary net position as a percentage of the total pension liability 58.97% 61.72% 67.41% 60.63% 65.62% Covered payroll 369,922 401,139 $ 407,607 $ 404,506 $ 397,428 Town’s net pension liability (asset) as a percentage of covered payroll 318.86% 274.56% 165.39% 195.34% 133.94% 90 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, 2021 See accompanying notes to pension plan schedules. CORP – Dispatchers Reporting Fiscal Year (Measurement Date) 2016 (2015) 2015 (2014) 2014 through 2012 Total pension liability Information not available 10 years of information will be reported as it becomes available Service cost $ 64,307 $ 63,474 Interest on the total pension liability 105,144 94,360 Changes of benefit terms - - Differences between expected and actual experience in the measurement of the pension liability (18,303) (16,512) Changes of assumptions or other inputs - 18,699 Benefit payments, including refunds of employee contributions (46,131) - Net change in total pension liability 105,017 160,021 Total pension liability—beginning 1,330,327 1,170,306 Total pension liability—ending (a) $ 1,435,344 $ 1,330,327 Plan fiduciary net position Contributions—employer $ 49,045 $ 48,667 Contributions—employee 35,981 36,306 Net investment income 34,230 102,910 Benefit payments, including refunds of employee contributions (46,131) - Pension plan administrative expense (1,233) - Other changes (635) (24,446) Net change in plan fiduciary net position 71,257 163,437 Plan fiduciary net position—beginning 906,189 742,752 Plan fiduciary net position—ending (b) $ 977,446 $ 906,189 Town’s net pension liability (asset)—ending (a) – (b) $ 457,898 $ 424,138 Town’s net pension liability (asset)—ending (a) – (b) 68.10% 68.12% Covered payroll $ 430,892 $ 456,107 Town’s net pension liability (asset) as a percentage of covered payroll 106.27% 92.99% 91 TOWN OF MARANA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF TOWN PENSION CONTRIBUTIONS JUNE 30, 2021 See accompanying notes to pension plan schedules. Arizona State Retirement System Reporting Fiscal Year 2021 2020 2019 2018 2017 Statutorily required contribution $1,856,449 $1,786,018 $1,645,597 $1,536,196 $1,496,440 Town’s contributions in relation to the statutorily required contribution 1,856,449 1,786,018 1,645,597 1,536,196 1,496,440 Town’s contribution deficiency (excess) $ - $ - $ - $ - $ - Town’s covered payroll $15,548,339 $15,605,818 $14,773,437 $14,143,225 $13,881,636 Town’s contributions as a percentage of covered payroll 11.94% 11.44% 11.14% 10.86% 10.78% 2016 2015 2014 2013 2012 Statutorily required contribution $1,426,879 $ 1,367,122 $ 1,253,464 $1,172,006 $1,095,471 Town’s contributions in relation to the statutorily required contribution 1,426,879 1,367,122 1,253,464 1,172,006 1,095,471 Town’s contribution deficiency (excess) $ - $ - $ - $ - $ - Town’s covered payroll $13,150,962 $12,565,464 $11,714,615 $11,434,201 $11,098,998 Town’s contributions as a percentage of covered payroll 10.85% 10.88% 10.70% 10.25% 9.87% 92 TOWN OF MARANA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF TOWN PENSION CONTRIBUTIONS JUNE 30, 2021 See accompanying notes to pension plan schedules. Elected Officials Retirement Plan Reporting Fiscal Year 2021 2020 2019 2018 2017 Statutorily required contribution $69,196 $69,800 $63,358 $27,266 $28,065 Town’s contributions in relation to the statutorily required contribution 69,196 69,800 63,358 27,266 28,065 Town’s contribution deficiency (excess) $ - $ - $ - $ - $ - Town’s covered payroll $119,423 $119,423 $119,423 $116,021 $119,424 Town’s contributions as a percentage of covered payroll 57.94% 58.45% 53.05% 23.50% 23.50% 2016 2015 2014 2013 2012 Statutorily required contribution $28,065 $28,065 $38,431 $43,518 $40,861 Town’s contributions in relation to the statutorily required contribution 28,065 28,065 38,431 43,518 40,861 Town’s contribution deficiency (excess) $ - $ - $ - $ - $ - Town’s covered payroll $119,424 $119,424 $119,423 $119,423 $119,423 Town’s contributions as a percentage of covered payroll 23.50% 23.50% 32.18% 36.44% 34.22% 93 TOWN OF MARANA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF TOWN PENSION CONTRIBUTIONS JUNE 30, 2021 See accompanying notes to pension plan schedules. PSPRS Reporting Fiscal Year 2021 2020 2019 2018 2017 Actuarially determined contribution $2,228,298 $2,110,954 $2,003,419 $1,782,576 $1,381,861 Town’s contributions in relation to the actuarially determined contribution $2,228,298 $2,110,954 2,003,419 1,782,576 1,381,861 Town’s contribution deficiency (excess) $ - $ - $ - $ - $ - Town’s covered payroll $6,748,154 $6,402,828 $6,270,642 $5,542,238 $5,614,773 Town’s contributions as a percentage of covered payroll 33.02% 32.97% 31.95% 32.16% 24.61% 2016 2015 2014 2013 2012 Actuarially determined contribution $1,322,941 $1,006,859 $ 797,871 $ 831,677 $778,039 Town’s contributions in relation to the actuarially determined contribution 1,322,941 1,006,859 797,871 831,677 778,039 Town’s contribution deficiency (excess) $ - $ - $ - $ - $ - Town’s covered payroll $5,315,870 $4,900,569 $4,638,415 $4,498,048 $4,512,699 Town’s contributions as a percentage of covered payroll 24.89% 20.55% 17.20% 18.49% 17.24% 94 TOWN OF MARANA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF TOWN PENSION CONTRIBUTIONS JUNE 30, 2021 See accompanying notes to pension plan schedules. CORP - Dispatchers Reporting Fiscal Year 2021 2020 2019 2018 2017 Actuarially determined contribution $91,436 $70,988 $83,517 $57,269 $51,210 Town’s contributions in relation to the actuarially determined contribution 91,436 70,988 83,517 57,269 51,210 Town’s contribution deficiency (excess) $ - $ - $ - $ - $ - Town’s covered payroll $366,036 $369,921 $401,139 $ 407,607 $ 404,507 Town’s contributions as a percentage of covered payroll 24.98% 19.19% 20.82% 14.05% 12.66% 2016 2015 2014 2013 2012 Actuarially determined contribution $48,648 $49,045 $ 48,667 $ 32,506 $ 25,550 Town’s contributions in relation to the actuarially determined contribution 48,648 49,045 48,667 32,506 25,550 Town’s contribution deficiency (excess) $ - $ - $ - $ - $ - Town’s covered payroll $ 409,843 $ 430,892 $ 456,106 $ 443,980 $ 530,695 Town’s contributions as a percentage of covered payroll 11.87% 11.38% 10.67% 7.32% 4.25% 95 TOWN OF MARANA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO PENSION PLAN SCHEDULES JUNE 30, 2021 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 2019 actuarial valuation 17 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 96 TOWN OF MARANA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO PENSION PLAN SCHEDULES JUNE 30, 2021 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. 97 This page intentionally left blank 98 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES 99 This page intentionally left blank 100 OTHER MAJOR GOVERNMENTAL FUNDS SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL 101 This page intentionally left blank 102 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, 2021 Budgeted Amounts Original Final Actual Variance - Positive (Negative) Revenues: Special assessments 2,208,220$ 2,208,220$ 2,297,832$ 89,612$ Total revenues 2,208,220 2,208,220 2,297,832 89,612 Expenditures: Debt service - Principal retirement 2,018,000 2,018,000 2,023,000 (5,000) Interest and fiscal charges 190,220 190,220 184,838 5,382 Total expenditures 2,208,220 2,208,220 2,207,838 382 Excess (deficiency) of revenues over expenditures - - 89,994 89,994 Fund balances, beginning of year - - 429,247 429,247 Fund balances, end of year -$ -$ 519,241$ 519,241$ 103 Budgeted Amounts Original Final Actual Variance - Positive (Negative) Revenues: Sales taxes 5,750,000$ 5,750,000$ 7,378,783$ 1,628,783$ Contributions - - 6,257 6,257 Investment income 50,000 50,000 - (50,000) Total revenues 5,800,000 5,800,000 7,385,040 1,585,040 Expenditures: Current - General government 996,200 996,200 1,325,700 (329,500) Capital outlay 19,407,698 19,957,698 9,439,498 10,518,200 Total expenditures 20,403,898 20,953,898 10,765,198 10,188,700 Excess (deficiency) of revenues over expenditures (14,603,898) (15,153,898) (3,380,158) 11,773,740 Other financing sources (uses): Transfers out (693,731) (693,731) (693,655) 76 Total other financing sources (uses)(693,731) (693,731) (693,655) 76 Changes in fund balances (15,297,629) (15,847,629) (4,073,813) 11,773,816 Fund balances, beginning of year - - 16,850,578 16,850,578 Fund balances, end of year (15,297,629)$ (15,847,629)$ 12,776,765$ 28,624,394$ TOWN OF MARANA, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - TRANSPORTATION CAPITAL YEAR ENDED JUNE 30, 2021 104 NON-MAJOR GOVERNMENTAL FUNDS 105 Special Revenue Capital Projects Debt Service Total Non-Major Governmental Funds ASSETS Cash and cash equivalents 3,728,626$ 15,771,885$ -$ 19,500,511$ Taxes receivable - 1,608 13,408 15,016 Accounts receivable 1,467 - - 1,467 Interest receivable - 9,675 9 9,684 Development agreement receivable - 61,832 - 61,832 Due from governments 190,881 47,330 - 238,211 Prepaid items 2,674 - 4,000 6,674 Restricted cash and investments - - 5,968,939 5,968,939 Total assets 3,923,648$ 15,892,330$ 5,986,356$ 25,802,334$ LIABILITIES Accounts payable 171,213$ 392,012$ -$ 563,225$ Retainage payable 18,632 76,796 - 95,428 Accrued payroll and employee benefits 4,404 - - 4,404 Advances 37,322 943,388 - 980,710 Deposits held for others - 62,400 - 62,400 Total liabilities 231,571 1,474,596 - 1,706,167 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 12,298 - - 12,298 Total deferred inflows of resources 12,298 - - 12,298 FUND BALANCES (DEFICITS) Fund balances: Nonspendable 2,674 - 4,000 6,674 Restricted 3,689,403 13,849,293 5,982,356 23,521,052 Committed - 1,524,534 - 1,524,534 Unassigned (12,298) (956,093) - (968,391) Total fund balances 3,679,779 14,417,734 5,986,356 24,083,869 Total liabilities, deferred inflows of resources, and fund balances 3,923,648$ 15,892,330$ 5,986,356$ 25,802,334$ TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE JUNE 30, 2021 106 Special Revenue Capital Projects Debt Service Total Non-Major Governmental Funds Revenues: Sales tax 1,246,249$ 220,493$ -$ 1,466,742$ Property tax - 152,138 1,267,989 1,420,127 Intergovernmental 49,819 30,429 - 80,248 Licenses, fees & permits - 3,176,790 - 3,176,790 Fines, forfeitures & penalties 42,969 - - 42,969 Contributions - 30,784 16,588 47,372 Investment income - 1,954 50 2,004 Miscellaneous 1,928 - - 1,928 Total revenues 1,340,965 3,612,588 1,284,627 6,238,180 Expenditures: Current - General government 839,930 4,143 - 844,073 Highways and streets - 64,885 - 64,885 Economic and community development 334,523 - - 334,523 Culture and recreation - 42,570 - 42,570 Capital outlay - 2,277,305 4,051,617 6,328,922 Debt service - Principal retirement - - 4,296,000 4,296,000 Interest and fiscal charges - - 2,725,219 2,725,219 Bond issuance costs - - 216,360 216,360 Total expenditures 1,174,453 2,388,903 11,289,196 14,852,552 Excess (deficiency) of revenues over expenditures 166,512 1,223,685 (10,004,569) (8,614,372) Other financing sources (uses): Issuance of debt - - 4,155,000 4,155,000 Premium on bonds issued - - 114,985 114,985 Transfers in - - 5,990,918 5,990,918 Transfers out - (986,531) - (986,531) Total other financing sources (uses)- (986,531) 10,260,903 9,274,372 Change in fund balances 166,512 237,154 256,334 660,000 Fund balances, beginning of year 3,513,267 14,180,580 5,730,022 23,423,869 Fund balances, end of year 3,679,779$ 14,417,734$ 5,986,356$ 24,083,869$ 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, 2021 107 This page intentionally left blank 108 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. 109 Community Development Block Grant Affordable Housing Bed Tax ASSETS Cash and cash equivalents -$ 101,152$ 2,547,641$ Accounts receivable - - - Due from governments 37,786 - 153,095 Prepaid - - 2,674 Total assets 37,786$ 101,152$ 2,703,410$ LIABILITIES Accounts payable 464$ -$ 3,050$ Retainage payable - - - Accrued payroll and employee benefits - - 4,404 Advances 37,322 - - Total liabilities 37,786 - 7,454 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 12,298 - - Total deferred inflows of resources 12,298 - - FUND BALANCES (DEFICITS) Nonspendable - - 2,674 Restricted - 101,152 2,693,282 Unassigned (12,298) - - Total fund balances (12,298) 101,152 2,695,956 Total liabilities, deferred inflows of resources, and fund balances 37,786$ 101,152$ 2,703,410$ TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS JUNE 30, 2021 110 Judicial Collection Enhancement Fill-the-Gap Local Technology Totals 123,533$ 103,763$ 852,537$ 3,728,626$ - 1,467 - 1,467 - - - 190,881 - - - 2,674 123,533$ 105,230$ 852,537$ 3,923,648$ -$ -$ 167,699$ 171,213$ - - 18,632 18,632 - - - 4,404 - - - 37,322 - - 186,331 231,571 - - - 12,298 - - - 12,298 - - - 2,674 123,533 105,230 666,206 3,689,403 - - - (12,298) 123,533 105,230 666,206 3,679,779 123,533$ 105,230$ 852,537$ 3,923,648$ 111 Community Development Block Grant Affordable Housing Bed Tax Judicial Collection Enhancement Revenues: Sales taxes -$ -$ 1,246,249$ -$ Intergovernmental 49,819 - - - Fines, forfeitures & penalties - - - 7,048 Miscellaneous - 1,928 - - Total revenues 49,819 1,928 1,246,249 7,048 Expenditures: Current - General government - - 632,491 320 Economic and community development 53,057 26,261 255,205 - Total expenditures 53,057 26,261 887,696 320 Excess (deficiency) of revenues over expenditures (3,238) (24,333) 358,553 6,728 Change in fund balances (3,238) (24,333) 358,553 6,728 Fund balances (deficits), beginning of year (9,060) 125,485 2,337,403 116,805 Fund balances (deficits), end of year (12,298)$ 101,152$ 2,695,956$ 123,533$ TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2021 112 Fill-the-Gap Local Technology Totals -$ -$ 1,246,249$ - - 49,819 4,353 31,568 42,969 - - 1,928 4,353 31,568 1,340,965 - 207,119 839,930 - - 334,523 - 207,119 1,174,453 4,353 (175,551) 166,512 4,353 (175,551) 166,512 100,877 841,757 3,513,267 105,230$ 666,206$ 3,679,779$ 113 Community Development Block Grant Fund Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Intergovernmental 180,000$ 180,000$ 49,819$ (130,181)$ Total revenues 180,000 180,000 49,819 (130,181) Expenditures: Current - Economic and community development 180,000 180,000 53,057 126,943 Capital outlay - - - - Total expenditures 180,000 180,000 53,057 126,943 Change in fund balance - - (3,238) (3,238) Fund balance, July 1, 2020 - - (9,060) (9,060) Fund balance (deficits), June 30, 2021 -$ -$ (12,298)$ (12,298)$ 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, 2021 114 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Miscellaneous 10,000$ 10,000$ 1,928$ (8,072)$ Total revenues 10,000 10,000 1,928 (8,072) Expenditures: Current - Economic and community development 124,657 124,657 26,261 98,396 Capital outlay - - - - Total expenditures 124,657 124,657 26,261 98,396 Change in fund balance (114,657) (114,657) (24,333) 90,324 Fund balance, July 1, 2020 - - 125,485 125,485 Fund balance (deficits), June 30, 2021 (114,657)$ (114,657)$ 101,152$ 215,809$ 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, 2021 115 Bed Tax Fund Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Sales taxes 1,104,840$ 1,104,840$ 1,246,249$ 141,409$ Miscellaneous - - - - Total revenues 1,104,840 1,104,840 1,246,249 141,409 Expenditures: Current - General government 755,496 755,496 632,491 123,005 Economic and community development 349,344 349,344 255,205 94,139 Total expenditures 1,104,840 1,104,840 887,696 217,144 Change in fund balance - - 358,553 358,553 Fund balance, July 1, 2020 - - 2,337,403 2,337,403 Fund balance (deficits), June 30, 2021 -$ -$ 2,695,956$ 2,695,956$ 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, 2021 116 Judicial Collection Enhancement Fund Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Fines, forfeitures & penalties 8,000$ 8,000$ 7,048$ (952)$ Total revenues 8,000 8,000 7,048 (952) Expenditures: Current - General government 90,000 90,000 320 89,680 Total expenditures 90,000 90,000 320 89,680 Change in fund balance (82,000) (82,000) 6,728 88,728 Fund balance, July 1, 2020 - - 116,805 116,805 Fund balance (deficits), June 30, 2021 (82,000)$ (82,000)$ 123,533$ 205,533$ 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, 2021 117 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Fines, forfeitures & penalties 4,500$ 4,500$ 4,353$ (147)$ Total revenues 4,500 4,500 4,353 (147) 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) 4,353 34,353 Fund balance, July 1, 2020 - - 100,877 100,877 Fund balance (deficits), June 30, 2021 (30,000)$ (30,000)$ 105,230$ 135,230$ 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, 2021 118 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Fines, forfeitures & penalties 45,000$ 45,000$ 31,568$ (13,432)$ Total revenues 45,000 45,000 31,568 (13,432) Expenditures: Current - General government 488,000 488,000 207,119 280,881 Total expenditures 488,000 488,000 207,119 280,881 Change in fund balance (443,000) (443,000) (175,551) 267,449 Fund balance, July 1, 2020 - - 841,757 841,757 Fund balance (deficits), June 30, 2021 (443,000)$ (443,000)$ 666,206$ 1,109,206$ 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, 2021 119 This page intentionally left blank 120 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. Saguaro Springs Capital Fund – This fund accounts for the financing and construction of authorized capital improvements. 121 Northwest Transportation Impact Fees Northeast Transportation Impact Fees South Transportation Impact Fees Park Impact Fees ASSETS Cash and cash equivalents 649,497$ -$ 8,039,597$ 3,172,044$ Taxes receivable - - - - Interest receivable - - 8,614 - Development agreement receivable - - - - Due from governments - - - - Total assets 649,497$ -$ 8,048,211$ 3,172,044$ LIABILITIES Accounts payable -$ 21,455$ 4,695$ 42,354$ Retainage payable - - - - Advances - 932,138 - - Deposits held for others - - - - Total liabilities - 953,593 4,695 42,354 FUND BALANCES (DEFICITS) Restricted 649,497 - 8,043,516 3,129,690 Committed - - - - Unassigned - (953,593) - - Total fund balances (deficits) 649,497 (953,593) 8,043,516 3,129,690 Total liabilities, deferred inflows of resources, and fund balances 649,497$ -$ 8,048,211$ 3,172,044$ TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS JUNE 30, 2021 122 PAG/RTA Capital Downtown Reinvestment Other Capital Projects Gladden Farms Capital Saguaro Springs Capital Totals -$ 1,488,454$ 1,361,807$ 839,603$ 220,883$ 15,771,885$ - - - 1,052 556 1,608 - - 1,061 - - 9,675 - - 61,832 - - 61,832 11,250 36,080 - - - 47,330 11,250$ 1,524,534$ 1,424,700$ 840,655$ 221,439$ 15,892,330$ -$ -$ 323,508$ -$ -$ 392,012$ 2,500 - 74,296 - - 76,796 11,250 - - - - 943,388 - - 62,400 - - 62,400 13,750 - 460,204 - - 1,474,596 - - 964,496 840,655 221,439 13,849,293 - 1,524,534 - - - 1,524,534 (2,500) - - - - (956,093) (2,500) 1,524,534 964,496 840,655 221,439 14,417,734 11,250$ 1,524,534$ 1,424,700$ 840,655$ 221,439$ 15,892,330$ 123 Northwest Transportation Impact Fees Northeast Transportation Impact Fees South Transportation Impact Fees Park Impact Fees Revenues: Sales tax -$ -$ -$ -$ Property tax - - - - Intergovernmental - - - - Licenses, fees & permits 208,903 441,098 1,776,198 490,276 Contributions - - - - Investment income 87 11 - 1,856 Total revenues 208,990 441,109 1,776,198 492,132 Expenditures: Current - General government - - - - Highways and streets - 42,910 - - Culture and recreation - - - 42,570 Capital outlay 3,118 3,118 20,705 192,501 Total expenditures 3,118 46,028 20,705 235,071 Excess (deficiency) of revenues over expenditures 205,872 395,081 1,755,493 257,061 Other financing sources (uses): Transfers out - (485,558) (500,973) - Total other financing sources (uses) - (485,558) (500,973) - Change in fund balances 205,872 (90,477) 1,254,520 257,061 Fund balances (deficits), beginning of year 443,625 (863,116) 6,788,996 2,872,629 Fund balances (deficits), end of year 649,497$ (953,593)$ 8,043,516$ 3,129,690$ TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NON-MAJOR CAPITAL PROJECT FUNDS YEAR ENDED JUNE 30, 2021 124 PAG/RTA Capital Downtown Reinvestment Other Capital Projects Gladden Farms Capital Saguaro Springs Capital Totals -$ 220,493$ -$ -$ -$ 220,493$ - - - 95,686 56,452 152,138 28,703 - 1,726 - - 30,429 - - 260,315 - - 3,176,790 - - 30,784 - - 30,784 - - - - - 1,954 28,703 220,493 292,825 95,686 56,452 3,612,588 - - - 2,738 1,405 4,143 - - 21,975 - - 64,885 - - - - - 42,570 30,578 10,040 2,017,245 - - 2,277,305 30,578 10,040 2,039,220 2,738 1,405 2,388,903 (1,875) 210,453 (1,746,395) 92,948 55,047 1,223,685 - - - - - (986,531) - - - - - (986,531) (1,875) 210,453 (1,746,395) 92,948 55,047 237,154 (625) 1,314,081 2,710,891 747,707 166,392 14,180,580 (2,500)$ 1,524,534$ 964,496$ 840,655$ 221,439$ 14,417,734$ 125 Northwest Transportation Impact Fees Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Licenses, fees & permits 119,723$ 119,723$ 208,903$ 89,180$ Investment income - - 87 87 Total revenues 119,723 119,723 208,990 89,267 Expenditures: Current - Highways and streets - - - - Capital outlay 35,000 35,000 3,118 31,882 Total expenditures 35,000 35,000 3,118 31,882 Excess (deficiency) of revenues over expenditures 84,723 84,723 205,872 121,149 Other financing sources (uses): Transfers out - - - - Total other financing sources (uses)- - - - Change in fund balances 84,723 84,723 205,872 121,149 Fund balances (deficits), July 1, 2020 - - 443,625 443,625 Fund balances (deficits), June 30, 2021 84,723$ 84,723$ 649,497$ 564,774$ 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, 2021 126 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Licenses, fees & permits 270,333$ 270,333$ 441,098$ 170,765$ Investment income - - 11 11 Total revenues 270,333 270,333 441,109 170,776 Expenditures: Current - Highways and streets 8,582 8,582 42,910 (34,328) Capital outlay 35,000 35,000 3,118 31,882 Total expenditures 43,582 43,582 46,028 (2,446) Excess (deficiency) of revenues over expenditures 226,751 226,751 395,081 168,330 Other financing sources (uses): Transfers out (485,824) (485,824) (485,558) 266 Total other financing sources (uses)(485,824) (485,824) (485,558) 266 Change in fund balances (259,073) (259,073) (90,477) 168,596 Fund balances (deficits), July 1, 2020 - - (863,116) (863,116) Fund balances (deficits), June 30, 2021 (259,073)$ (259,073)$ (953,593)$ (694,520)$ 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, 2021 Northeast Transportation Impact Fees 127 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Licenses, fees & permits 856,746$ 856,746$ 1,776,198$ 919,452$ Investment income - - - - Total revenues 856,746 856,746 1,776,198 919,452 Expenditures: Current - Highways and streets - - - - Capital outlay 535,000 535,000 20,705 514,295 Total expenditures 535,000 535,000 20,705 514,295 Excess (deficiency) of revenues over expenditures 321,746 321,746 1,755,493 1,433,747 Other financing sources (uses): Transfers out (500,674) (500,674) (500,973) (299) Total other financing sources (uses)(500,674) (500,674) (500,973) (299) Change in fund balances (178,928) (178,928) 1,254,520 1,433,448 Fund balances (deficits), July 1, 2020 - - 6,788,996 6,788,996 Fund balances (deficits), June 30, 2021 (178,928)$ (178,928)$ 8,043,516$ 8,222,444$ 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, 2021 South Transportation Impact Fees 128 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Intergovernmental -$ -$ -$ -$ Licenses, fees & permits 520,502 520,502 490,276 (30,226) Investment income - - 1,856 1,856 Total revenues 520,502 520,502 492,132 (28,370) Expenditures: Current - Culture and recreation 25,800 165,171 42,570 122,601 Capital outlay 2,430,189 2,290,818 192,501 2,098,317 Total expenditures 2,455,989 2,455,989 235,071 2,220,918 Excess (deficiency) of revenues over expenditures (1,935,487) (1,935,487) 257,061 2,192,548 Other financing sources: Transfers in - - - - Total other financing sources - - - - Change in fund balances (1,935,487) (1,935,487) 257,061 2,192,548 Fund balances (deficits), July 1, 2020 - - 2,872,629 2,872,629 Fund balances (deficits), June 30, 2021 (1,935,487)$ (1,935,487)$ 3,129,690$ 5,065,177$ 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, 2021 Park Impact Fees 129 PAG Capital Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Licenses, fees & permits 48,112$ 48,112$ 28,703$ (19,409)$ Contributions - - - - Total revenues 48,112 48,112 28,703 (19,409) Expenditures: Current - Highways and streets Capital outlay 48,112 48,112 30,578 17,534 Total expenditures 48,112 48,112 30,578 17,534 Excess (deficiency) of revenues over expenditures - - (1,875) (1,875) Other financing sources (uses): Transfers out - - - - Total other financing sources (uses)- - - - Change in fund balances - - (1,875) (1,875) Fund balances (deficits), July 1, 2020 - - (625) (625) Fund balances (deficits), June 30, 2021 -$ -$ (2,500)$ (2,500)$ TOWN OF MARANA, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - PAG CAPITAL YEAR ENDED JUNE 30, 2021 130 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Sales tax 228,500$ 228,500$ 220,493 (8,007)$ Total revenues 228,500 228,500 220,493 (8,007) Expenditures: Current - Economic and community development 450,000 450,000 - 450,000 Capital outlay 343,595 343,595 10,040 333,555 Total expenditures 793,595 793,595 10,040 783,555 Excess (deficiency) of revenues over expenditures (565,095) (565,095) 210,453 775,548 Other financing sources (uses): Transfers in - - - - Total other financing sources (uses)- - - - Change in fund balances (565,095) (565,095) 210,453 775,548 Fund balances (deficits), July 1, 2020 - - 1,314,081 (1,314,081) Fund balances (deficits), June 30, 2021 (565,095)$ (565,095)$ 1,524,534$ (538,533)$ 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, 2021 Downtown Reinvestment 131 Other Captial Projects Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Intergovernmental 2,010,000$ 2,010,000$ 1,726$ (2,008,274)$ Licenses, fees & permits 228,312 228,312 260,315 32,003 Contributions 35,000 35,000 30,784 (4,216) Investment income - - - - Total revenues 2,273,312 2,273,312 292,825 (1,980,487) Expenditures: Highways and streets 35,000 35,000 21,975 13,025 Culture and recreation - - - - Capital outlay 4,578,767 4,028,767 2,017,245 2,011,522 Total expenditures 4,613,767 4,063,767 2,039,220 2,024,547 Excess (deficiency) of revenues over (2,340,455) (1,790,455) (1,746,395) 44,060 expenditures Other financing sources (uses): Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Changes in fund balances (2,340,455) (1,790,455) (1,746,395) 44,060 Fund balances (deficits), July 1, 2020 - - 2,710,891 2,710,891 Fund balances (deficits), June 30, 2021 (2,340,455)$ (1,790,455)$ 964,496$ 2,754,951$ TOWN OF MARANA, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - OTHER CAPITAL PROJECTS YEAR ENDED JUNE 30, 2021 132 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property tax 96,106$ 96,106$ 95,686$ (420)$ Total revenues 96,106 96,106 95,686 (420) Expenditures: Current - General government 684,402 684,402 2,738 681,664 Capital outlay - - - - Total expenditures 684,402 684,402 2,738 681,664 Excess (deficiency) of revenues over expenditures (588,296) (588,296) 92,948 681,244 Other financing sources (uses): Transfers out - - - - Total other financing sources (uses)- - - - Change in fund balances (588,296) (588,296) 92,948 681,244 Fund balances (deficits), July 1, 2020 - - 747,707 747,707 Fund balances (deficits), June 30, 2021 (588,296)$ (588,296)$ 840,655$ 1,428,951$ Gladden Farms Community Facilities District Capital TOWN OF MARANA, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS GLADDEN FARMS COMMUNITY FACILITIES DISTRICT CAPITAL YEAR ENDED JUNE 30, 2021 133 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property tax 56,621$ 56,621$ 56,452$ (169)$ Contributions - - - - Total revenues 56,621 56,621 56,452 (169) Expenditures: Current - General government 219,500 219,500 1,405 218,095 Capital outlay - - - - Debt service - Bond issuance costs - - - - Total expenditures 219,500 219,500 1,405 218,095 Excess (deficiency) of revenues over expenditures (162,879) (162,879) 55,047 217,926 Other financing sources (uses): Bond proceeds - - - - Total other financing sources (uses)- - - - Change in fund balances (162,879) (162,879) 55,047 217,926 Fund balances (deficits), July 1, 2020 - - 166,392 166,392 Fund balances (deficits), June 30, 2021 (162,879)$ (162,879)$ 221,439$ 384,318$ 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, 2021 134 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. 135 2013 Bond Debt Service 2014 Bond Debt Service 2017 Bond Debt Service ASSETS Property taxes receivable -$ -$ -$ Interest receviable 9 - - Prepaid items 2,000 - 2,000 Restricted cash and investments 2,460,750 757,470 1,704,750 Total assets 2,462,759$ 757,470$ 1,706,750$ LIABILITIES AND FUND BALANCES Liabilities: Total liabilities - - - FUND BALANCES Nonspendable 2,000 - 2,000 Restricted 2,460,759 757,470 1,704,750 Total fund balances 2,462,759 757,470 1,706,750 Total liabilities and fund balances 2,462,759$ 757,470$ 1,706,750$ TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET - NON-MAJOR DEBT SERVICE FUNDS JUNE 30, 2021 136 Gladden Farms Debt Service Saguaro Springs Debt Service Totals 8,771$ 4,637$ 13,408$ - - 9 - - 4,000 655,601 390,368 5,968,939 664,372$ 395,005$ 5,986,356$ - - - - - 4,000 664,372 395,005 5,982,356 664,372 395,005 5,986,356 664,372$ 395,005$ 5,986,356$ 137 2013 Bond Debt Service 2014 Bond Debt Service 2017 Bond Debt Service Revenues: Property Taxes -$ -$ -$ Contributions - - - Investment income 12 9 - Total revenues 12 9 - Expenditures: Capital Outlay - - - Debt service - Principal retirement 1,795,000 696,000 1,235,000 Interest and fiscal charges 1,239,400 95,814 856,200 Bond Issuance Costs - - - Total expenditures 3,034,400 791,814 2,091,200 Excess (deficiency) of revenues over expenditures (3,034,388) (791,805) (2,091,200) Other financing sources (uses): Issuance of debt - - - Premium on bonds issued - - - Transfers in 3,065,489 801,929 2,123,500 Total other financing sources (uses)3,065,489 801,929 2,123,500 Change in fund balances 31,101 10,124 32,300 Fund balances, beginning of year 2,431,658 747,346 1,674,450 Fund balances, end of year 2,462,759$ 757,470$ 1,706,750$ TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NON-MAJOR DEBT SERVICE FUNDS YEAR ENDED JUNE 30, 2021 138 Gladden Farms Debt Service Saguaro Springs Debt Service Totals 797,698$ 470,291$ 1,267,989$ 16,588 - 16,588 29 - 50 814,315 470,291 1,284,627 4,051,617 - 4,051,617 410,000 160,000 4,296,000 330,780 203,025 2,725,219 216,360 - 216,360 5,008,757 363,025 11,289,196 (4,194,442) 107,266 (10,004,569) 4,155,000 - 4,155,000 114,985 - 114,985 - - 5,990,918 4,269,985 - 10,260,903 75,543 107,266 256,334 588,829 287,739 5,730,022 664,372$ 395,005$ 5,986,356$ 139 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property Taxes -$ -$ -$ -$ Contributions - - - - Investment income - - 12 12 Total revenues - - 12 12 Expenditures: Debt service - Principal retirement 1,795,000 1,795,000 1,795,000 - Interest and fiscal charges 1,239,400 1,239,400 1,239,400 - Total expenditures 3,034,400 3,034,400 3,034,400 - Excess (deficiency) of revenues over expenditures (3,034,400) (3,034,400) (3,034,388) 12 Other financing sources (uses): Transfers in 3,063,500 3,063,500 3,065,489 (1,989) Transfers out - - - - Total other financing sources (uses)3,063,500 3,063,500 3,065,489 (1,989) Change in fund balances 29,100 29,100 31,101 2,001 Fund balances (deficits), July 1, 2020 - - 2,431,658 2,431,658 Fund balances (deficits), June 30, 2021 29,100$ 29,100$ 2,462,759$ 2,433,659$ 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, 2021 2013 Bond Debt Service 140 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property Taxes -$ -$ -$ -$ Contributions - - - - Investment income - - 9 9 Total revenues - - 9 9 Expenditures: Debt service - Principal retirement 696,000 696,000 696,000 - Interest and fiscal charges 95,815 95,815 95,814 1 Total expenditures 791,815 791,815 791,814 1 Excess (deficiency) of revenues over expenditures (791,815) (791,815) (791,805) 10 Other financing sources (uses): Transfers in 801,941 801,941 801,929 12 Transfers out - - - - Total other financing sources (uses)801,941 801,941 801,929 12 Change in fund balances 10,126 10,126 10,124 (2) Fund balances (deficits), July 1, 2020 - - 747,346 747,346 Fund balances (deficits), June 30, 2021 10,126$ 10,126$ 757,470$ 747,344$ 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, 2021 2014 Bond Debt Service 141 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property Taxes -$ -$ -$ -$ Contributions - - - - Investment income - - - - Total revenues - - - - Expenditures: Debt service - Principal retirement 1,235,000 1,235,000 1,235,000 - Interest and fiscal charges 856,200 856,200 856,200 - Total expenditures 2,091,200 2,091,200 2,091,200 - Excess (deficiency) of revenues over expenditures (2,091,200) (2,091,200) (2,091,200) - Other financing sources (uses): Transfers in 2,121,500 2,121,500 2,123,500 (2,000) Transfers out - - - - Total other financing sources (uses)2,121,500 2,121,500 2,123,500 (2,000) Change in fund balances 30,300 30,300 32,300 2,000 Fund balances (deficits), July 1, 2020 - - 1,674,450 1,674,450 Fund balances (deficits), June 30, 2021 30,300$ 30,300$ 1,706,750$ 1,676,450$ 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, 2021 2017 Bond Debt Service 142 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property Taxes 800,885$ 800,885$ 797,698$ (3,187)$ Contributions 217,360 217,360 16,589 (200,771) Investment income - - 29 29 Total revenues 1,018,245 1,018,245 814,316 (203,929) Expenditures: Capital Outlay 4,055,000 4,055,000 4,051,617 3,383 Debt service - Principal retirement 500,000 500,000 410,000 90,000 Interest and fiscal charges 517,744 517,744 330,780 186,964 Bond Issuance Costs 245,000 245,000 216,360 28,640 Total expenditures 5,317,744 5,317,744 5,008,757 308,987 Excess (deficiency) of revenues over expenditures (4,299,499) (4,299,499) (4,194,441) 105,058 Other financing sources (uses): Issuance of debt 4,300,000 4,300,000 4,155,000 145,000 Premium on bonds issued - - 114,984 (114,984) Total other financing sources (uses)4,300,000 4,300,000 4,269,984 30,016 Change in fund balances 501 501 75,543 75,042 Fund balances (deficits), July 1, 2020 - - 588,829 588,829 Fund balances (deficits), June 30, 2021 501$ 501$ 664,372$ 663,871$ 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, 2021 143 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property Taxes 471,845$ 471,845$ 470,291$ (1,554)$ Contributions 877 877 - (877) Investment income - - - - Total revenues 472,722 472,722 470,291 (2,431) Expenditures: Capital Outlay 1,515,000 1,515,000 - 1,515,000 Debt service - Principal retirement 190,000 190,000 160,000 30,000 Interest and fiscal charges 282,722 282,722 203,025 79,697 Bond Issuance Costs 235,000 235,000 - 235,000 Total expenditures 2,222,722 2,222,722 363,025 1,859,697 Excess (deficiency) of revenues over expenditures (1,750,000) (1,750,000) 107,266 1,857,266 Other financing sources (uses): Issuance of debt 1,750,000 1,750,000 - 1,750,000 Premium on bonds issued - - - - Total other financing sources (uses)1,750,000 1,750,000 - 1,750,000 Change in fund balances - - 107,266 107,266 Fund balances (deficits), July 1, 2020 - - 287,739 287,739 Fund balances (deficits), June 30, 2021 -$ -$ 395,005$ 395,005$ 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, 2021 Saguaro Springs Debt Service 144 STATISTICAL INFORMATION 145 TOWN OF MARANA, ARIZONA STATISTICAL SECTION JUNE 30, 2021 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 23 197 146 Schedule 1 2012 2013 2014 2015 (as restated) Governmental activities Net investment in capital assets 194,287$ 184,949$ 189,171$ 190,297$ Restricted 29,004 62,437 58,820 36,418 Unrestricted 39,911 1,384 (283) (4,283) Total governmental activities net position 263,202 248,770 247,708 222,432 Business-type activities Net investment in capital assets 112,528 111,045 109,111 109,649 Restricted 146 219 293 365 Unrestricted (17,519) (2,677) (208) 984 Total business-type activities net position 95,155 108,587 109,196 110,998 Primary government Net investment in capital assets 306,815 295,994 298,282 299,946 Restricted 29,150 62,656 59,113 36,783 Unrestricted 22,392 (1,293) (491) (3,299) Total primary government net position 358,357$ 357,357$ 356,904$ 333,430$ Source: Statement of Net Position (Amounts expressed in thousands) TOWN OF MARANA NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (Accrual basis of accounting) 147 Schedule 1 2016 2017 2018 2019 2020 2021 (as restated)(as restated) 193,845$ 210,137$ 236,208$ 243,685$ 244,996$ 243,692$ 43,127 31,163 17,242 19,985 21,837 21,675 (6,492) 5,119 16,272 16,827 27,323 48,120 230,480 246,419 269,722 280,497 294,156 313,487 112,357 101,524 95,777 97,435 102,911 106,166 365 365 365 366 770 1,128 1,313 16,319 (4,285) (2,176) 2,332 7,673 114,035 118,208 91,857 95,625 106,013 114,967 306,202 311,661 331,985 341,120 347,907 349,858 43,492 31,528 17,607 20,351 22,607 22,803 (5,179) 21,439 11,987 14,651 29,655 55,793 344,515$ 364,628$ 361,579$ 376,122$ 400,169$ 428,454$ 148 Schedule 2 2012 2013 2014 2015 Expenses Governmental activities: General government 10,833$ 9,532$ 10,662$ 14,707$ Public safety 10,206 11,777 12,134 14,324 Highways and streets 17,233 18,327 19,053 18,522 Health & Welfare 23 23 23 - Culture & recreation 2,173 3,831 3,131 4,433 Economic & community development 4,258 4,123 4,691 4,796 Interest on long-term debt 4,721 4,312 4,543 4,106 Total governmental activities expenses 49,447 51,925 54,237 60,888 Business-type activities: Airport 1,112 1,179 1,197 1,289 Wastewater 3,831 2,599 2,756 3,431 Water 3,074 3,779 5,244 4,150 Total business-type activities expenses 8,017 7,557 9,197 8,870 Total primary government expenses 57,464$ 59,482$ 63,434$ 69,758$ Program Revenues Governmental activities: Charges for services: General government 881$ 975$ 941$ 4,490$ Culture and recreation 134 216 200 305 Economic & community development 2,513 3,906 3,386 4,585 Operating grants and contributions 3,202 3,747 4,442 4,360 Capital grants and contributions 9,017 12,373 10,268 11,281 Total government activities program revenues 15,747 21,217 19,237 25,021 Business-type activities: Charges for services: Airport 233 239 248 239 Wastewater 241 730 834 933 Water 3,281 3,455 3,766 4,146 Capital grants and contributions 60,207 1,958 2,534 4,015 Total business-type activity program revenues 63,962 6,382 7,382 9,333 Total primary government program revenues 79,709 27,599 26,619 34,354 Net (expense)/revenue Governmental activities (33,700) (33,699) (35,000) (35,867) Business-type activities 55,945 55,944 (1,815) 463 Total primary government net expense 22,245$ 22,245$ (36,815)$ (35,404)$ TOWN OF MARANA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (Accrual basis of accounting) (Amounts expressed in thousands) 149 Schedule 2 2016 2017 2018 2019 2020 2021 17,531$ 19,393$ 18,492$ 23,846$ 21,040$ 22,578$ 14,423 16,736 16,114 16,059 19,981 19,223 22,659 40,172 27,893 21,629 25,004 25,729 - 278 236 453 442 461 3,422 6,006 5,147 5,294 6,122 5,861 4,779 4,902 4,328 4,076 4,174 4,159 3,962 2,335 3,077 1,858 2,485 2,346 66,776 89,822 75,287 73,215 79,248 80,357 1,829 1,772 1,816 1,395 1,393 1,645 3,662 3,983 4,598 5,276 4,136 5,346 4,405 5,368 5,979 6,178 6,750 7,796 9,896 11,123 12,393 12,849 12,279 14,787 76,672$ 100,945$ 87,680$ 86,064$ 91,527$ 95,144$ 4,787$ 4,909$ 5,073$ 5,007$ 5,453$ 5,863$ 265 287 324 317 197 179 4,027 4,355 4,993 5,260 5,396 6,626 4,507 4,619 4,665 2,259 8,470 14,465 17,157 44,371 25,856 13,679 15,047 10,839 30,743 58,541 40,911 26,522 34,563 37,972 247 251 294 329 373 420 1,016 1,065 1,502 1,626 1,873 2,365 4,243 5,064 5,609 5,750 6,260 7,373 5,214 5,941 9,890 8,977 13,604 13,462 10,720 12,321 17,295 16,682 22,110 23,620 41,463 70,862 58,206 43,204 56,673 61,592 (36,033) (31,281) (34,376) (46,693) (44,685) (42,385) 824 1,198 4,902 3,833 9,831 8,833 (35,209)$ (30,083)$ (29,474)$ (42,860)$ (34,854)$ (33,552)$ 150 Schedule 2 2012 2013 2014 2015 General Revenues and Other Changes in Net Position Governmental activities: General revenues City sales taxes 24,539$ 24,768$ 26,226$ 28,059$ Property taxes 506 447 421 442 Franchise fees 333 349 377 401 State shared revenues 6,943 7,714 8,273 8,820 Investment income (loss)97 152 171 149 Miscellaneous 803 737 854 813 Gain on sale of assets - 36 - 116 Transfers 329 (15,912) (2,384) (404) Total governmental activities 33,550 18,291 33,938 38,396 Business-type activities: General revenues Investment income 1 2 1 9 Miscellaneous 1 19 39 19 Transfers (329) 15,911 2,384 404 Special item - (1,326) - - Total business-type activities (327) 14,606 2,424 432 Total primary government 33,223 32,897 36,362 38,828 Change in Net Position Governmental activities (150) (15,408) (1,062) 2,529 Business-type activities 55,618 70,550 609 895 Total primary government 55,468$ 55,142$ (453)$ 3,424$ Source: Statement of Activities (Amounts expressed in thousands) TOWN OF MARANA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (Accrual basis of accounting) 151 Schedule 2 2016 2017 2018 2019 2020 2021 35,442$ 37,500$ 41,689$ 41,680$ 40,705$ 42,847$ 482 509 553 834 1,161 1,420 447 488 507 513 549 585 9,039 10,619 11,506 12,013 13,098 15,372 173 238 663 1,954 1,965 484 676 744 885 1,163 1,001 1,002 - - - - - - (2,177) (2,878) 1,875 (688) (136) 5 44,082 47,220 57,678 57,469 58,343 61,715 16 43 187 77 57 4 19 54 30 21 364 123 2,177 2,878 (1,875) 688 136 (5) - - - - - - 2,212 2,975 (1,658) 786 557 122 46,294 50,195 56,020 58,255 58,900 61,837 8,049 15,939 23,302 10,776 13,658 19,330 3,036 4,173 3,244 4,619 10,388 8,955 11,085$ 20,112$ 26,546$ 15,395$ 24,046$ 28,285$ 152 Schedule 3 2012 2013 2014 2015 2016 General Fund Nonspendable 293$ 2,803$ 2,540$ 2,282$ 2,418$ Unassigned 18,004 18,115 21,123 22,309 20,425 Total general fund 18,297 20,918 23,663 24,591 22,843 All other governmental funds Nonspendable -$ -$ 33$ -$ 3$ Restricted 29,821 47,616 40,774 40,771 48,486 Committed - - - - - Unassigned (816) (444) (472) (863) (525) Total all other governmental funds 29,005$ 47,172$ 40,335$ 39,908$ 47,964$ Total fund balance of governmental funds 47,302$ 68,090$ 63,998$ 64,499$ 70,807$ 2017 2018 2019 2020 2021 General Fund Nonspendable 2,367$ 4,853$ 4,513$ 4,103$ 3,029$ Unassigned 22,640 24,735 32,043 42,008 68,327 Total general fund 25,007 29,588 36,556 46,111 71,356 All other governmental funds Nonspendable 1$ 261$ 1$ 4$ 13$ Restricted 49,960 44,989 42,068 31,001 29,108 Committed - - - 14,862 13,970 Unassigned (1,908) (2,405) (562) (873) (968) Total all other governmental funds 48,053$ 42,845$ 41,507$ 44,994$ 42,123$ Total fund balance of governmental funds 73,060$ 72,433$ 78,063$ 91,105$ 113,479$ 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) 153 Schedule 4 2012 2013 2014 2015 Revenues Sales taxes 24,539$ 24,768$ 26,226$ 28,058$ Property taxes 506 497 424 447 Intergovernmental revenues 14,960 18,000 12,732 14,927 Licenses, fees and permits 4,906 8,586 6,549 7,048 Fines, forfeitures and penalties 752 871 831 889 Charges for services 456 379 509 692 Lease Income 92 105 99 96 Special assessments 2,302 2,337 2,176 2,050 Contributions 537 589 1,098 583 Investment earnings 97 152 171 149 Miscellaneous 636 804 927 853 Total revenues 49,783 57,088 51,742 55,792 Expenditures General government 8,481 7,860 8,953 9,652 Public safety 10,590 12,067 11,952 13,886 Highways and streets 3,657 4,026 4,214 5,441 Health and welfare - - - - Economic and community development 4,259 4,479 4,508 4,351 Culture and recreation 2,604 2,859 3,195 3,598 Capital outlay 7,040 3,700 4,453 9,885 Debt service Principal 6,059 4,177 10,338 3,412 Interest 4,635 4,408 4,522 4,491 Other charges - 521 97 - Total expenditures 47,325 44,097 52,232 54,716 Excess of revenues over (under) expenditures 2,458 12,991 (490) 1,076 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) 154 Schedule 4 2016 2017 2018 2019 2020 2021 35,442$ 37,500$ 41,689$ 41,680$ 40,705$ 42,847$ 489 521 572 834 1,161 1,420 20,537 43,261 30,919 20,040 22,967 31,527 6,243 7,078 8,617 10,034 9,092 10,749 750 728 750 637 591 496 500 563 684 718 535 541 90 113 136 148 157 159 2,129 2,340 989 2,869 2,091 2,298 1,216 214 87 49 65 66 173 238 663 1,954 1,965 484 376 460 512 757 667 643 67,945 93,016 85,618 79,720 79,996 91,230 12,017 13,347 12,949 14,021 14,927 14,416 14,068 14,477 14,774 15,502 18,352 16,967 5,796 6,037 4,893 5,031 6,821 6,222 - 365 229 290 284 350 4,146 4,642 4,452 4,744 4,605 4,540 3,710 4,266 4,903 4,613 4,207 4,225 11,840 34,275 40,960 24,478 11,094 17,097 - 3,992 5,083 2,260 5,463 6,563 6,319 4,212 3,882 2,745 3,105 2,984 2,910 -1,023 - 314 385 216 59,781 87,397 88,165 77,561 70,222 73,262 8,164 5,619 (2,547) 2,159 9,774 17,968 155 Schedule 4 2012 2013 2014 2015 Other financing sources (uses) Transfers in 5,998 19,700 14,155 6,380 Transfers out (5,669) (35,611) (16,540) (6,955) Proceeds from sale of capital assets - 57 - - Capitalized interest - - - - Issuance of debt - 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) 329 7,797 (10,052) (575) Net change in fund balance 3,767$ 13,320$ 7,307$ (8,976)$ Debt service as a percentage of noncapital expenditures 36.1%28.4%36.8%15.6% 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) 156 Schedule 4 2016 2017 2018 2019 2020 2021 6,498 7,680 12,607 6,082 11,401 8,471 (8,675) (10,558) (10,732) (6,770) (11,532) (8,467) 321 45 46 226 135 132 - 178 - - - - - 42,065 - 3,845 3,195 4,155 - 4,089 - 88 69 115 - (46,865) - - - - (1,856) (3,366) 1,921 3,471 3,268 4,406 (575)$ 2,253$ (626)$ 5,630$ 13,042$ 22,374$ 14.9%11.7%6.4%13.9%15.7%15.5% 157 Schedule 5 Fiscal Year Sales Tax Highway User Revenue taxes Total 2021 42,846$ 3,956$ 46,802$ 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 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) 158 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 2022 2021 480,657$ 233,235$ 42,820$ 671,072 8.4000 6,187,303 10.8% 2021 2020 438,390 224,390 42,530 620,250 8.4000 5,715,806 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% Source: Pima County Assessor's Office Abstract of the Assessment Roll 159 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 2021/22 2021 3.8764 - 0.5353 0.4500 0.3335 0.4263 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 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 2021/22 2021 0.1400 5.9491 22.5583 - 2.8000 2.8000 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 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 160 Schedule 7 Flowing Wells School District Community College District Northwest Fire District Fire District Assistance 6.4855 1.2733 3.0495 0.0394 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 Vanderbilt Farms Community Facilities District Saguaro Springs Community Facilities District Total Direct Rates Total Direct & Overlapping Rates - 2.8000 8.4000 30.9583 - 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 161 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 12,981 1 26.9%- -- HSL COTTONWOOD RC HOTEL LLC 6,910 2 14.3%- -- TUCSON PREMIUM OUTLETS LLC 6,711 3 13.9%- -- MARANA HEALTH CENTER INC 3,956 4 8.2%- -- FRYS FOOD STORE OF ARIZONA 3,885 5 8.1%- -- TRICO ELECTRIC COOP INC 3,554 6 7.4%- -- HSL ENCANTADA CONTINENTAL RESERVE 3,093 7 6.4%- -- SOUTHWEST GAS CORPORATION 2,819 8 5.8%- -- UNION PACIFIC RAILROAD 2,752 9 5.7%- -- WAL-MART STORES INC 1,582 10 3.3%- -- FIDELITY NATIONAL TITLE TR 30212 3,222 1 25.2% SMITH FOOD & DRUG CENTERS 1,907 2 14.9% PULTE HOME CORPORATION 1,415 3 11.1% GLADDEN 25 LLC 1,388 4 10.9% WEINGARTEN NEWQUIST LLC 1,113 5 8.7% FREEDBER BARRY & FREEDBRG BELLA 871 6 6.8% WALGREEN ARIZONA DRUG CO 795 7 6.2% FIDELITY NATIONAL TITLE TR 60360 765 8 6.0% FEDERAL NATIONAL MORTGAGE ASSN 719 9 5.6% OS REALITY LLC 595 10 4.7% Totals 48,242$ 12,790$ Notes: 1) The Town of Marana does not impose a property tax. Source: Pima County Assessor's Office - IS Dept (Information System's Coordinator) 20122021 TOWN OF MARANA PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO (Amounts expressed in thousands) 162 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 2021 1,426$ 1,420 99.58%1,420 99.58% 2020 1,163 1,158 99.57%1,163 100.00% 2019 834 830 99.52%832 99.76% 2018 571 569 99.65%570 99.82% 2017 521 517 99.23%521 100.00% 2016 489 485 99.18%488 99.80% 2015 448 444 99.11%448 100.00% 2014 423 419 99.05%422 99.76% 2013 471 463 98.30%469 99.58% 2012 514 499 97.08%502 97.67% Notes: 1) The Town does not impose a property tax; levies . directly related to the Gladden Farms Community Facilities District I and II, and Saguaro Springs. Source: Pima County Treasurer's Office 163 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-B3-1 215-01-003S INTERNATIONAL CENTER TUCSON LLC & SECUNDUS TUCSON LLC $52,594.14 $33,919.12 $3,778,800.00 78,565 Commercial 242-B3-2 215-01-003W INTERNATIONAL CENTER TUCSON LLC & SECUNDUS TUCSON LLC 49,379.55 31,845.96 296,239.00 73,738 Commercial 237 217-53-040A TOWN OF MARANA 71,959.10 46,408.02 34,000.00 1,019,739 Park 238/239-2 217-53-8090 GLADDEN 25 LLC 20,407.15 13,161.02 100,585.00 57,477 Residential and Commercial 238/239-3 217-53-8100 GLADDEN 25 LLC 21,784.14 14,049.07 107,366.00 61,352 Residential and Commercial 238/239-4 217-53-8110 GLADDEN 25 LLC 20,979.61 13,530.21 103,336.00 59,049 Residential and Commercial 238/239-5 217-53-8120 GLADDEN 25 LLC 18,999.25 12,253.03 93,630.00 53,503 Residential and Commercial 238/239-6 217-53-8130 GLADDEN 25 LLC 20,144.14 12,991.40 99,255.00 56,717 Residential and Commercial 238/239-7 217-53-8140 GLADDEN 25 LLC 15,456.22 9,968.06 76,167.00 43,524 Residential and Commercial 238/239-8 217-53-8150 GLADDEN 25 LLC 35,461.12 22,869.66 174,757.00 99,861 Residential and Commercial 238/239-9 217-53-8160 GLADDEN 25 LLC 32,830.94 21,173.40 161,761.00 92,435 Residential and Commercial 238/239-10 217-53-8170 GLADDEN 25 LLC 30,974.33 19,976.04 152,591.00 87,195 Residential and Commercial 230-3 217-54-0130 Gladden Phase II, LLC 330,322.98 213,032.58 15,066.00 1,215,324 Residential and Commercial 230-4 217-54-0140 Northwest Medical Center 684,379.91 441,371.70 31,212.00 2,517,768 Hospital 230-6 217-54-0160 Gladden Phase II, LLC 375,574.12 242,216.03 11,961.00 964,854 Residential and Commercial 230-7 217-54-0180 Gladden Phase II, LLC 429,227.55 276,818.31 14,742.00 1,189,188 Residential and Commercial 230-8 217-54-0190 Gladden Phase II, LLC 358,566.94 231,247.72 16,351.00 1,318,997 Residential and Commercial 230-11 217-54-0220 Gladden Phase II, LLC 708,991.95 457,244.54 21,902.00 1,766,794 Residential and Commercial 446 217-54-026A Gladden Phase II, LLC 268,326.10 173,049.41 8,375.00 675,615 Residential and Commercial 230-16 217-54-0270 Gladden Phase II, LLC 536,534.45 346,022.89 17,809.00 1,436,609 Residential and Commercial 347 217-54-0570 Richmond American Homes 3,770.07 2,431.41 242,171.00 - Residential 402 217-54-1120 Richmond American Homes 3,770.08 2,431.41 31,677.00 - Residential 404 217-54-1140 Richmond American Homes 3,770.08 2,431.41 31,677.00 - Residential 441 217-54-2330 Richmond American Homes 3,770.08 2,431.41 31,677.00 - Residential 553 217-54-2380 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 554 217-54-2390 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 555 217-54-2400 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 556 217-54-2410 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 557 217-54-2420 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 558 217-54-2430 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 559 217-54-2440 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 560 217-54-2450 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 561 217-54-2460 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 562 217-54-2470 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 563 217-54-2480 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential Town of Marana, Arizona Tangerine Farms Road Improvement District All Active Assessments As of 6/30/2021 164 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 6/30/2021 564 217-54-2490 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 565 217-54-2500 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 566 217-54-2510 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 567 217-54-2520 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 568 217-54-2530 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 569 217-54-2540 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 570 217-54-2550 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 571 217-54-2560 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 572 217-54-2570 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 573 217-54-2580 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 574 217-54-2590 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 575 217-54-2600 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 576 217-54-2610 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 577 217-54-2620 Pulte Home Company, LLC 3,193.65 2,059.65 8,001.00 - Residential 578 217-54-2630 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 579 217-54-2640 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 580 217-54-2650 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 581 217-54-2660 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 582 217-54-2670 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 583 217-54-2680 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 584 217-54-2690 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 585 217-54-2700 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 586 217-54-2710 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 587 217-54-2720 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 588 217-54-2730 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 589 217-54-2740 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 590 217-54-2750 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 591 217-54-2760 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 592 217-54-2770 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 593 217-54-2780 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 594 217-54-2790 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 595 217-54-2800 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 596 217-54-2810 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 597 217-54-2820 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 598 217-54-2830 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 599 217-54-2840 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 165 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 6/30/2021 600 217-54-2850 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 601 217-54-2860 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 602 217-54-2870 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 603 217-54-2880 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 604 217-54-2890 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 605 217-54-2900 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 606 217-54-2910 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 607 217-54-2920 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 608 217-54-2930 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 609 217-54-2940 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 610 217-54-2950 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 611 217-54-2960 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 612 217-54-2970 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 613 217-54-2980 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 614 217-54-2990 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 615 217-54-3000 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 616 217-54-3010 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 617 217-54-3020 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 618 217-54-3030 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 619 217-54-3040 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 620 217-54-3050 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 621 217-54-3060 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 622 217-54-3070 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 623 217-54-3080 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 624 217-54-3090 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 625 217-54-3100 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 626 217-54-3110 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 627 217-54-3120 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 628 217-54-3130 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 629 217-54-3140 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 630 217-54-3150 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 631 217-54-3160 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 632 217-54-3170 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 633 217-54-3180 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 634 217-54-3190 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 635 217-54-3200 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 166 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 6/30/2021 636 217-54-3210 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 637 217-54-3220 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 638 217-54-3230 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 639 217-54-3240 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 640 217-54-3250 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 641 217-54-3260 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 642 217-54-3270 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 643 217-54-3280 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 644 217-54-3290 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 645 217-54-3300 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 646 217-54-3310 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 647 217-54-3320 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 648 217-54-3330 Pulte Home Company, LLC 3,193.66 2,059.66 8,001.00 - Residential 826 217-54-342A Gladden Phase II, LLC 205,307.14 132,407.10 7,522.00 606,790 Residential and Commercial 825 217-54-342B Marana Unified School District 190,574.93 122,905.97 8,105.00 653,835 Residential and Commercial 442 217-54-3440 Gladden Phase II, LLC 342,327.13 220,774.31 15,606.00 1,258,884 Residential and Commercial 448 217-54-3450 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 449 217-54-3460 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 450 217-54-3470 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 452 217-54-3490 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 453 217-54-3500 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 455 217-54-3520 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 456 217-54-3530 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 457 217-54-3540 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 473 217-54-3700 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 480 217-54-3770 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 481 217-54-3780 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 489 217-54-3860 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 490 217-54-3870 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 491 217-54-3880 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 492 217-54-3890 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 493 217-54-3900 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 494 217-54-3910 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 495 217-54-3920 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 496 217-54-3930 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 497 217-54-3940 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 167 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 6/30/2021 510 217-54-4070 Richmond American Homes 3,029.41 1,953.73 215,641.00 - Residential 519 217-54-4160 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 520 217-54-4170 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 521 217-54-4180 Richmond American Homes 3,029.41 1,953.73 31,046.00 - Residential 538 217-54-4350 Richmond American Homes 3,029.42 1,953.74 31,046.00 - Residential 541 217-54-4380 Richmond American Homes 3,029.42 1,953.74 31,046.00 - Residential 542 217-54-4390 Richmond American Homes 3,029.42 1,953.74 31,046.00 - Residential 543 217-54-4400 Richmond American Homes 3,029.42 1,953.74 31,046.00 - Residential 544 217-54-4410 Richmond American Homes 3,029.42 1,953.74 31,046.00 - Residential 545 217-54-4420 Richmond American Homes 3,029.42 1,953.74 31,046.00 - Residential 546 217-54-4430 Richmond American Homes 3,029.42 1,953.74 31,046.00 - Residential 547 217-54-4440 Richmond American Homes 3,029.42 1,953.74 31,046.00 - Residential 548 217-54-4450 Richmond American Homes 3,029.42 1,953.74 31,046.00 - Residential 549 217-54-4460 Richmond American Homes 3,029.42 1,953.74 31,046.00 - Residential 550 217-54-4470 Richmond American Homes 3,029.42 1,953.74 249,846.00 - Residential 551 217-54-4480 Richmond American Homes 3,029.42 1,953.74 215,896.00 - Residential 552 217-54-4490 Richmond American Homes 3,029.42 1,953.74 31,046.00 - Residential 827 217-54-5730 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 828 217-54-5740 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 829 217-54-5750 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 830 217-54-5760 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 831 217-54-5770 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 832 217-54-5780 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 833 217-54-5790 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 834 217-54-5800 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 835 217-54-5810 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 836 217-54-5820 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 837 217-54-5830 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 838 217-54-5840 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 839 217-54-5850 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 840 217-54-5860 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 841 217-54-5870 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 842 217-54-5880 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 843 217-54-5890 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 844 217-54-5900 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 845 217-54-5910 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 168 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 6/30/2021 846 217-54-5920 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 847 217-54-5930 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 848 217-54-5940 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 849 217-54-5950 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 850 217-54-5960 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 851 217-54-5970 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 852 217-54-5980 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 853 217-54-5990 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 854 217-54-6000 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 855 217-54-6010 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 856 217-54-6020 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 857 217-54-6030 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 858 217-54-6040 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 859 217-54-6050 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 860 217-54-6060 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 861 217-54-6070 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 862 217-54-6080 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 863 217-54-6090 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 864 217-54-6100 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 865 217-54-6110 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 866 217-54-6120 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 867 217-54-6130 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 868 217-54-6140 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 869 217-54-6150 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 870 217-54-6160 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 871 217-54-6170 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 872 217-54-6180 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 873 217-54-6190 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 874 217-54-6200 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 875 217-54-6210 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 876 217-54-6220 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 877 217-54-6230 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 878 217-54-6240 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 879 217-54-6250 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 880 217-54-6260 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 881 217-54-6270 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 882 217-54-6280 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 883 217-54-6290 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 884 217-54-6300 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 885 217-54-6310 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 169 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 6/30/2021 886 217-54-6320 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 887 217-54-6330 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 888 217-54-6340 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 889 217-54-6350 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 890 217-54-6360 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 891 217-54-6370 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 892 217-54-6380 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 893 217-54-6390 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 894 217-54-6400 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 895 217-54-6410 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 896 217-54-6420 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 897 217-54-6430 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 898 217-54-6440 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 899 217-54-6450 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 900 217-54-6460 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 901 217-54-6470 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 902 217-54-6480 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 903 217-54-6490 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 904 217-54-6500 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 905 217-54-6510 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 906 217-54-6520 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 907 217-54-6530 Richmond American Homes 3,381.52 2,180.82 31,046.00 - Residential 908 217-54-6540 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 909 217-54-6550 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 910 217-54-6560 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 911 217-54-6570 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 912 217-54-6580 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 913 217-54-6590 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 914 217-54-6600 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 915 217-54-6610 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 916 217-54-6620 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 917 217-54-6630 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 918 217-54-6640 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 919 217-54-6650 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 920 217-54-6660 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 921 217-54-6670 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 922 217-54-6680 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 923 217-54-6690 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 924 217-54-6700 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 925 217-54-6710 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 926 217-54-6720 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 927 217-54-6730 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 928 217-54-6740 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 929 217-54-6750 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 930 217-54-6760 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 931 217-54-6770 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 932 217-54-6780 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 933 217-54-6790 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 934 217-54-6800 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 935 217-54-6810 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 936 217-54-6820 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 937 217-54-6830 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 938 217-54-6840 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 939 217-54-6850 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 940 217-54-6860 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 170 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 6/30/2021 941 217-54-6870 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 942 217-54-6880 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 943 217-54-6890 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 944 217-54-6900 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 945 217-54-6910 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 946 217-54-6920 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 947 217-54-6930 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 948 217-54-6940 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 949 217-54-6950 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 950 217-54-6960 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 951 217-54-6970 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 952 217-54-6980 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 953 217-54-6990 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 954 217-54-7000 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 955 217-54-7010 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 956 217-54-7020 Lennar Homes 3,381.52 2,180.82 31,046.00 - Residential 957 217-54-7030 Lennar Homes 3,381.51 2,180.81 31,046.00 - Residential 958 217-54-7040 Lennar Homes 3,381.51 2,180.81 31,046.00 - Residential 959 217-54-7050 Lennar Homes 3,381.51 2,180.81 31,046.00 - Residential 960 217-54-7060 Lennar Homes 3,381.51 2,180.81 31,046.00 - Residential 961 217-54-7070 Lennar Homes 3,381.51 2,180.81 31,046.00 - Residential 962 217-54-7080 Lennar Homes 3,381.51 2,180.81 31,046.00 - Residential 231 217-55-012A WESTCOR MARANA LLC 1,586,588.33 1,023,225.80 32,195.00 2,597,047 Commercial 218 217-57-3660 NP Investments LLC 18,332.46 11,823.00 265,674.00 52,093 Gladden Farms Commercial Center - Bank 219 217-57-3670 Weingarten Realty 12,423.76 8,012.35 67,076.00 35,303 Gladden Farms Commercial Center - Fast Food Restaurant220217-57-3680 Weingarten Realty 14,501.49 9,352.33 78,293.00 41,207 Gladden Farms Commercial Center - Fast Food Restaurant221217-57-3690 Weingarten Realty 11,477.10 7,401.83 61,965.00 32,613 Gladden Farms Commercial Center222217-57-3700 Weingarten Realty 27,082.56 17,466.14 146,218.00 76,957 Gladden Farms Commercial Center 224 217-57-3720 Weingarten Realty 41,637.17 26,852.73 189,304.00 118,315 Gladden Farms Commercial Center - Grocery225217-57-3730 Weingarten Realty 9,539.79 6,152.42 43,373.00 27,108 Gladden Farms Commercial Center 226 217-57-3740 Weingarten Realty 18,357.45 11,839.13 99,112.00 52,164 Gladden Farms Commercial Center 227 217-57-3750 Weingarten Realty 12,894.96 8,316.25 69,620.00 36,642 Gladden Farms Commercial Center 649 217-58-0010 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 650 217-58-0020 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 651 217-58-0030 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 652 217-58-0040 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 653 217-58-0050 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 654 217-58-0060 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 655 217-58-0070 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 656 217-58-0080 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 657 217-58-0090 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 658 217-58-0100 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 659 217-58-0110 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 660 217-58-0120 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 661 217-58-0130 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 662 217-58-0140 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 663 217-58-0150 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 664 217-58-0160 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 665 217-58-0170 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 666 217-58-0180 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 667 217-58-0190 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 668 217-58-0200 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 669 217-58-0210 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 171 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 6/30/2021 670 217-58-0220 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 686 217-58-0380 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 687 217-58-0390 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 688 217-58-0400 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 689 217-58-0410 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 690 217-58-0420 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 691 217-58-0430 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 692 217-58-0440 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 693 217-58-0450 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 694 217-58-0460 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 695 217-58-0470 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 696 217-58-0480 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 697 217-58-0490 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 698 217-58-0500 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 699 217-58-0510 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 700 217-58-0520 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 701 217-58-0530 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 702 217-58-0540 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 703 217-58-0550 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 704 217-58-0560 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 705 217-58-0570 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 706 217-58-0580 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 707 217-58-0590 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 708 217-58-0600 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 709 217-58-0610 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 710 217-58-0620 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 711 217-58-0630 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 712 217-58-0640 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 713 217-58-0650 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 714 217-58-0660 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 715 217-58-0670 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 716 217-58-0680 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 717 217-58-0690 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 718 217-58-0700 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 719 217-58-0710 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 720 217-58-0720 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 721 217-58-0730 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 722 217-58-0740 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 723 217-58-0750 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - Residential 724 217-58-0760 KB Home Tucson Inc.3,281.65 2,116.41 31,046.00 - 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Residential 1128 217-59-0840 KB Home Tucson Inc.2,120.35 1,367.46 0.00 - Residential 1129 217-59-0850 KB Home Tucson Inc.2,120.35 1,367.46 0.00 - Residential 1130 217-59-0860 KB Home Tucson Inc.2,120.35 1,367.46 0.00 - Residential 1131 217-59-0870 KB Home Tucson Inc.2,120.35 1,367.46 0.00 - Residential 1132 217-59-0880 KB Home Tucson Inc.2,120.35 1,367.46 0.00 - Residential 1133 217-59-0890 KB Home Tucson Inc.2,120.35 1,367.46 0.00 - Residential 1134 217-59-0900 KB Home Tucson Inc.2,120.35 1,367.46 0.00 - Residential 1135 217-59-0910 KB Home Tucson Inc.2,120.35 1,367.46 0.00 - Residential 1136 217-59-0920 KB Home Tucson Inc.2,120.35 1,367.46 0.00 - Residential 242-01 242-01-ASMT Tangerine/I-10, LLC 134,077.64 86,469.63 0.00 - Commercial 242-02 242-02-ASMT Southwest Gas Corporation 727,102.17 468,924.22 0.00 - Commercial 242-03 242-03-ASMT Tangerine/I-10, LLC 215,513.08 138,989.14 0.00 - Commercial 242-04 242-04-ASMT Tangerine/I-10, LLC 227,728.40 146,867.07 0.00 - Commercial 242-05 242-05-ASMT Tangerine/I-10, LLC 567,430.53 365,948.46 0.00 - Commercial 242-06 242-06-ASMT Tangerine/I-10, LLC 341,156.34 220,019.25 0.00 - Commercial 242-07 242-07-ASMT Tangerine/I-10, LLC 344,646.43 222,270.08 0.00 - Commercial 242-08 242-08-ASMT Tangerine/I-10, LLC 378,674.81 244,215.74 0.00 - Commercial 242-09 242-09-ASMT Tangerine/I-10, LLC 80,562.92 51,956.80 0.00 - Commercial 242-10 242-10-ASMT Tangerine/I-10, LLC 28,793.25 18,569.40 0.00 - Commercial 242-11 242-11-ASMT Tangerine/I-10, LLC 164,906.77 106,352.01 0.00 - Commercial 242-12 242-12-ASMT Tangerine/I-10, LLC 38,681.84 24,946.77 0.00 - Commercial Residential Totals:450 Active Assessments $1,367,659.13 $882,033.82 $9,994,277.00 0 Non-Residential Totals:45 Active Assessments $9,823,212.14 $6,335,206.10 $6,399,968.00 18,457,261 Totals:495 Active Assessments $11,190,871.27 $7,217,239.92 $16,394,245.00 18,457,261 (5) (1) During Fiscal Year 2020/21, District Assessment Numbers 1045 through 1136 and 242-01 through 242-12 were created via apportionments. (2) Includes capitalized interest on the Bonds as sold. (3) Amount remaining after billing for the 6/1/2021 assessment installment. (5) The Pima County Assessor does not provide the square footage for most residential properties. (4) As current Full Cash Value data is not available from Pima County for certain parcels that have changed during Fiscal Year 2020/21, prior year Full Cash Value data has been supplemented where applicable. Due to the timing of the apportionments, the 2021 Full Cash Value information and Non-Residential Square Footage information is unavailable from Pima County associated with the newly created parcels that are now in existence. 174 Schedule 11 Industry Group FY 2012 %FY 2013 %FY 2014 % Construction 5,782,644$ 23.57%5,260,345$ 21.33%6,411,509$ 24.45% Manufacturing 128,089 0.52%127,214 0.52%97,014 0.37% Transportation, Communications, & Utilities 2,985,979 12.17%3,038,071 12.32%3,182,854 12.14% Wholesale Trade 233,850 0.95%296,077 1.20%213,657 0.81% Retail Trade 8,804,206 35.88%9,380,544 38.03%9,593,163 36.58% Restaurant & Bars 1,789,232 7.29%1,819,588 7.38%1,865,602 7.11% Fire, Insurance & Real Estate 1,350,977 5.51%1,234,426 5.00%1,256,418 4.79% Hotels & Other Lodging 1,991,767 8.12%2,140,493 8.68%2,064,986 7.87% Services 1,026,443 4.18%1,003,377 4.07%1,031,325 3.93% All Others 445,774 1.82%363,807 1.48%509,351 1.94% 24,538,961$ 100.00%24,663,942$ 100.00%26,225,881$ 100.00% Industry Group 2017 %2018 %2019 % Construction 7,557,292$ 20.15%9,825,265$ 23.57%10,817,479$ 25.95% Transportation, Communications, & Utilities 3,809,315 10.16%4,234,220 10.16%3,987,389 9.57% Retail Trade 17,120,561 45.65%17,757,284 42.59%16,403,992 39.36% Restaurant & Bars 3,295,734 8.79%3,616,110 8.67%3,514,494 8.43% Fire, Insurance & Real Estate 1,540,358 4.11%1,661,010 3.98%1,648,738 3.96% Hotels & Other Lodging 2,558,312 6.82%2,827,338 6.78%2,913,545 6.99% All Others 1,618,648 4.32%1,768,256 4.24%2,394,706 5.75% 37,500,220$ 100.00%41,689,483$ 100.00%41,680,343$ 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 175 Schedule 11 2015 %2016*% 6,838,195$ 24.37%6,883,116$ 19.42% 100,329 0.36%- 0.00% 3,318,976 11.83%3,919,633 11.06% 305,012 1.09%- 0.00% 10,133,523 36.12%16,305,878 46.01% 2,038,788 7.27%3,076,737 8.68% 1,240,196 4.42%1,339,496 3.78% 2,481,304 8.84%2,292,705 6.47% 1,046,669 3.73%- 0.00% 555,522 1.98%1,624,023 4.58% 28,058,514$ 100.00%35,441,588$ 100.00% 2020 %2021 % 11,599,116 28.50%9,869,708 23.03% 3,835,802 9.42%4,071,000 9.50% 16,210,073 39.82%19,308,702 45.06% 3,146,078 7.73%3,489,065 8.14% 1,436,817 3.53%1,515,124 3.54% 2,566,127 6.30%2,496,865 5.83% 1,910,780 4.69%2,096,172 4.89% 40,704,792$ 100.00%42,846,635$ 100.00% 176 Schedule 12 Industry Classification 2011/12 2012/13 2013/14 2014/2015 Town Sales Tax 24,538,961$ 24,768,104$ 26,225,881$ 28,058,823$ State-shared Sales Taxes 2,731,863 2,861,622 3,043,102 3,195,042 State-shared Income Taxes 2,950,734 3,571,191 3,896,487 4,232,245 Licenses and permits 2,720,872 4,323,155 3,932,108 4,813,378 Fines and forfeitures and penalties 558,393 661,341 635,869 664,955 TOTAL 33,500,823$ 36,185,413$ 37,733,447$ 40,964,443$ Industry Classification 2016/2017 2017/2018 2018/2019 2019/2020 Town Sales Tax 37,500,219$ 41,689,483$ 41,680,343$ 41,629,398$ State-shared Sales Taxes 3,798,503 4,186,856 4,524,009 4,872,825 State-shared Income Taxes 5,054,592 5,384,669 5,424,305 6,078,686 Licenses and permits 4,848,237 5,573,620 5,774,930 6,021,017 Fines and forfeitures and penalties 574,884 612,638 527,447 515,514 TOTAL 51,776,435$ 57,447,266$ 57,931,034$ 59,117,440$ Source: Statement of Revenues, Expenditures and changes in Fund Balances TOWN OF MARANA EXCISE TAX COLLECTIONS LAST TEN FISCAL YEARS 177 Schedule 12 2015/2016 35,441,585$ 3,344,679 4,209,300 4,468,910 579,369 48,043,843$ Budgeted 2020/2021 2021/2022 42,846,635$ 39,922,682$ 5,816,852 5,756,874 7,007,072 6,397,237 7,248,432 5,865,300 436,491 391,500 63,355,482$ 58,333,593$ 178 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 2021 49,112$ 18,756$ 7,529$ 20,481$ 16,777$ 112,655 200.6%2,170 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 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, Economic and Business Research Center, The University of Arizona Governmental Activities Business-Type Activities 179 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 2021 18,756$ 876$ 17,880$ 0.29%36.3% 2020 15,100 872 14,228 0.25%30.3% 2019 12,242 584 11,658 0.22%26.0% 2018 8,551 393 8,158 0.17%18.8% 2017 8,794 387 8,407 0.18%20.3% 2016 7,835 392 7,443 0.17%18.5% 2015 8,085 254 7,831 0.19%20.5% 2014 8,325 247 8,078 0.21%22.0% 2013 8,550 244 8,306 0.24%23.2% 2012 8,765 240 8,525 0.23%24.3% Notes: (1) Represents face value of general obligation debt outstanding plus deferred bond premiums. (2) Fund balance of GO Bond Debt Service Fund per the fund financial statements. 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) 180 Schedule 15 Governmental Unit Debt Outstanding (1) Estimated Percentage Applicable (2) Estimated Share of Overlapping Debt Pima County *138,191$ 6.92%9,564$ Pima County Community College District 2,205 6.92%153 Northwest Fire District 32,810 48.87%16,035 Flowing Wells Unified School District No. 8 29,755 100.00%29,755 Marana Unified School District No. 6 143,070 64.92%92,880 Total overlapping debt 148,386 Gladden Farms Community Facilities District 11,835 100.00%11,835 Saguaro Springs Community Facilities District 5,658 100.00%5,658 Gladden Farms Phase II Community Facilities District 1,263 100.00%1,263 Tangerine Farms Road Improvement District 7,529 100.00%7,529 Town of Marana 49,112 100.00%49,112 Total direct debt 75,397$ Total direct and overlapping debt 223,784$ 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, 2021 (Amounts expressed in thousands) 181 Schedule 16 Legal Debt Margin Calculation for Fiscal Year 2021 Limited Assessed Value 671,072,055$ Debt Limit:- 6% of assessed value 40,264,323 20% of assessed value 134,214,411 Total debt limit:174,478,734 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 174,478,734$ 2012 2013 2014 2015 2016 25,992,985$ 24,745,839$ 28,630,929$ 29,446,070$ 31,218,157$ 86,643,283 82,486,130 95,436,430 98,153,568 104,060,525 - - - - - 112,636,268$ 107,231,969$ 124,067,359$ 127,599,639$ 135,278,682$ 0%0%0%0%0% 2017 2018 2019 2020 2021 32,138,944$ 34,553,958$ 34,749,542$ 37,383,083$ 40,264,323$ 107,129,981 115,179,860 115,831,808 124,610,278.20 134,214,411.00 - - - - - - - 139,268,925$ 149,733,818$ 150,581,351$ 161,993,362$ 174,478,734$ 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, 2021 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 182 Schedule 17 Fiscal Year Property Tax Collections Coverage Principal Interest 2021 798$ 410$ 328$ 108.1% 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% Fiscal Year Property Tax Collections Coverage Principal Interest 2021 470$ 160$ 203$ 129.5% 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 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* 183 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 2021 2,298$ 2,023$ 185$ 104.1% 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% 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 184 Schedule 18 Fiscal Year Population Personal Income Per Capita Personal Income Median Age School Enrollment Unemployment Rate 2021 51,908 56,168,200$ 36,182$ 39.4 11,064 4.9% 2020 49,323 49,961,000 36,282 39.0 12,536 7.7% 2019 47,007 48,185,000 33,488 37.6 12,782 2.8% 2018 44,792 39,063,898 33,111 37.9 12,470 2.8% 2017 43,474 37,926,114 32,646 48.1 12,050 4.3% 2016 41,315 36,821,470 37,107 29.7 12,350 4.7% 2015 40,324 35,749,000 34,026 39.6 12,326 5.9% 2014 38,290 37,796,193 33,196 39.4 12,476 6.9% 2013 36,756 36,342,493 29,626 37.7 12,361 6.1% 2012 35,858 34,944,705 31,085 37.6 12,576 9.7% Sources: U.S. Census Bureau, Population Division; Arizona Department of Commerce; Pima Association of Governments; Arizona's Economy; The University of Arizona; and Marana Unified School District. TOWN OF MARANA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS 185 Schedule 19 Employees Percentage of Total City Employment Employees Percentage of Total City Employment Employer Marana Unified School District 1,447 5.7%1,800 11.8% Town of Marana 377 1.5%300 2.0% Wal-Mart 357 1.4%450 2.9% Ascent Aviation 329 1.3% The Ritz-Carlton Dove Mountain 320 1.3% Tucson Hauling & Transfer 300 1.2% Sargeant Aerospace & Defense 279 1.1%255 1.7% Costco 275 1.1%130 1.9% Northwest Fire District 272 1.1% Marana Main Health Center 250 1.0%195 1.3% FLSmidth Krebs 250 1.6% Fry's Food & Drug 240 1.6% Coca-Cola Bottling 170 1.1% Comcast of Arizona 150 1.0% Target 100 0.7% 2021 2012 TOWN OF MARANA PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO Source: AZCommerce.com, MUSD, Northwest Fire District, Ascent Aviation, Wal-Mart, Sargeant Aerospace, Costco 186 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 2,331,681$ 1 5.8%1,452,825$ 1 6.3% Taxpayer B 1,258,573 2 3.1%0.0% Taxpayer C 1,223,205 3 3.1%1,102,778 2 4.8% Taxpayer D 1,204,770 4 3.0%603,057 3 2.6% Taxpayer E 845,104 5 2.1%515,221 4 2.2% Taxpayer F 725,615 6 1.8%487,841 5 2.1% Taxpayer G 579,185 7 1.4%482,432 6 2.1% Taxpayer H 558,466 8 1.4%411,958 7 1.8% Taxpayer I 416,883 9 1.0%287,964 8 1.3% Taxpayer J 311,592 10 0.8%0.0% Taxpayer K 0.0%286,500 9 1.2% Taxpayer L 0.0%235,947 10 1.0% 9,455,074$ 23.5%5,866,523$ 25.4% CONTRACTING Taxpayer A 1,911,979$ 1 4.8%135,992$ 9 0.6% Taxpayer B 1,086,930 2 2.7%237,672 5 1.0% Taxpayer C 1,029,600 3 2.6%373,378 3 1.6% Taxpayer D 836,277 4 2.1%0.0% Taxpayer E 730,553 5 1.8%0.0% Taxpayer F 374,005 6 0.9%0.0% Taxpayer G 281,472 7 0.7%0.0% Taxpayer H 259,573 8 0.6%0.0% Taxpayer I 256,760 9 0.6%116,226 10 0.5% Taxpayer J 232,492 10 0.6%0.0% Taxpayer K 0.00%2,422,792 1 10.6% Taxpayer L 0.00%393,078 2 1.7% Taxpayer M 0.00%270,449 4 1.2% Taxpayer N 0.00%165,944 6 0.7% Taxpayer O 0.00%155,732 7 0.7% Taxpayer P 0.00%140,949 8 0.6% 6,999,641$ 17.4%4,412,212$ 19.2% Source: Town of Marana Finance Department, Arizona Department of Revenue Fiscal Year 2021 Fiscal Year 2012 187 Schedule 21 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Function General Government 62.5 62.5 62.5 67.5 70.9 72.9 73.3 73.3 75.3 75.3 Public Safety Police Officers 79.0 80.0 80.0 81.0 83.0 85.0 87.0 87.0 90.0 90.0 Civilians 28.5 26.0 26.0 28.0 28.0 28.0 28.0 31.0 31.0 31.0 Building Safety 6.0 9.0 9.0 13.0 13.0 12.0 12.0 13.0 13.0 13.0 Highways and streets 32.0 36.0 36.0 35.0 35.0 34.0 36.0 39.0 44.0 44.0 Health and Safety - - - - - - 2.0 3.0 3.0 3.0 Culture and recreation 41.7 33.3 33.3 36.5 38.5 41.8 41.0 40.0 42.0 42.0 Community Development 3.0 - - - - - - - - - Economic & Community Development 53.4 48.5 48.5 40.4 39.4 43.0 44.5 42.5 39.5 39.5 Water Utilities 20.1 19.1 19.1 22.0 23.0 23.0 24.0 25.2 27.6 29.6 Wastewater Utilities - 4.0 4.0 4.0 4.0 4.0 5.0 7.0 7.0 7.0 Municipal Airport - 1.0 1.0 1.0 3.0 3.0 3.0 3.0 3.0 3.0 Total 335.3 326.1 319.3 319.3 328.3 346.7 355.8 364.0 375.4 377.4 Source: Town of Marana; Annual Budget; Authorized position schedule. TOWN OF MARANA FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS 188 Schedule 22 Month 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 January 22 60 39 42 39 54 82 42 76 99 February 31 52 61 51 58 73 65 43 80 100 March 46 125 42 57 59 76 58 61 88 77 April 41 64 47 55 54 52 60 88 37 100 May 53 46 55 87 37 85 79 71 57 82 June 49 61 59 67 50 63 80 97 111 143 July 70 74 41 59 36 73 79 83 103 99 August 46 60 50 35 47 75 67 62 82 86 September 29 44 29 51 37 40 58 65 73 159 October 56 46 71 62 57 62 63 79 82 128 November 35 27 88 22 51 75 74 67 62 December 48 43 30 33 56 45 59 50 64 Calendar Total 526 702 612 621 581 773 824 808 915 1,073 Fiscal Total 425 692 597 668 559 687 794 802 855 1,067 Source: Town of Marana Finance Department, Town of Marana Building Services TOWN OF MARANA SINGLE FAMILY RESIDENTIAL PERMITS LAST TEN FISCAL YEARS 189 Schedule 23 Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 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 99 118 129 128 129 129 131 132 131 Highways and Streets Street (miles)300 494 494 511 518 520 524 540 570 591 Culture and Recreation Parks 7 8 8 8 9 9 11 13 14 14 Parks Acreage 84 139 139 139 146 146 158 182 182 182 Trails in Miles - Hiking 28 37 37 37 38 39 39 41 41 41 Trails in Miles - Paved 16 16 16 18 19 21 21 21 24 27 Splash Pads - - - - - 1 1 2 2 2 Swimming Pools 1 1 1 1 1 1 1 1 1 1 Tennis Courts 5 6 6 6 6 6 6 6 5 4 Pickleball Courts - - - - - - - - - 3 Senior/Community Center 1 1 1 1 1 1 1 1 1 1 Water Systems Miles of Water Mains 70 128 132 135 138 146 149 157 162 169 Service Connections 5,734 6,002 6,272 6,429 6,745 7,205 7,850 8,533 9,166 9,528 Wastewater Number of Manholes 841 863 863 891 909 978 1,066 1,235 1313 1379 Sewer Mains (miles)46.4 47.5 47.5 48.33 49.2 53.6 58.5 62.9 66 69 0.192 0.198 0.287 0.348 0.360 0.425 0.480 0.520 0.600 0.659 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, 2021 190