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HomeMy WebLinkAboutRegular Council Meeting Agenda Packet 02/07/2023MARANA TOWN COUNCIL REGULAR COUNCIL MEETING NOTICE AND AGENDA 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, February 7, 2023, at or after 6:00 PM Ed Honea, Mayor Jon Post, Vice Mayor Patti Comerford, Council Member Jackie Craig, Council Member Herb Kai, Council Member John Officer, Council Member Roxanne Ziegler, Council Member Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the Marana Town Council and to the general public that the Town Council will hold a meeting open to the public on February 7, 2023, at or after 6:00 PM located in the Council Chambers of the Marana Municipal Complex, 11555 W. Civic Center Drive, Marana, Arizona. ACTION MAY BE TAKEN BY THE COUNCIL ON ANY ITEM LISTED ON THIS AGENDA. Revisions to the agenda can occur up to 24 hours prior to the meeting. Revised agenda items appear in italics. As a courtesy to others, please turn off or put in silent mode all electronic devices. Meeting Times Welcome to this Marana Town Council meeting. Regular Council meetings are usually held the first and third Tuesday of each month at 6:00 PM at the Marana Municipal Complex, although the date or time may change and additional meetings may be called at other times and/or places. Contact the Town Clerk or watch for posted agendas for other meetings. This agenda may be revised up to 24 hours prior to the meeting. In such a case a new agenda will be posted in place of this agenda. Speaking at Meetings If you are interested in speaking to the Council during the Call to the Public or Public Hearings, you must fill out a speaker card (located in the lobby outside the Council Chambers) and deliver it to the Town Clerk prior to the convening of the meeting. Marana Regular Town Council Meeting February 7, 2023 Page 1 of 339 All persons attending the Council meeting, whether speaking to the Council or not, are expected to observe the Council rules, as well as the rules of politeness, propriety, decorum and good conduct. Any person interfering with the meeting in any way, or acting rudely or loudly will be removed from the meeting and will not be allowed to return. Accessibility To better serve the citizens of Marana and others attending our meetings, the Council Chambers are wheelchair and handicapped accessible. Persons with a disability may request a reasonable accommodation, such as a sign language interpreter, by contacting the Town Clerk at (520) 382-1999. Requests should be made as early as possible to arrange the accommodation. Agendas Copies of the agenda are available the day of the meeting in the lobby outside the Council Chambers or online at www.maranaaz.gov under Agendas and Minutes. For questions about the Council meetings, special services or procedures, please contact the Town Clerk, at (520) 382-1999, Monday through Friday from 8:00 AM to 5:00 PM. This Notice and Agenda Posted no later than 24 hours prior to the meeting, at the Marana Municipal Complex, 11555 W. Civic Center Drive, the Marana Operations Center, 5100 W. Ina Road, and at www.maranaaz.gov under Agendas and Minutes.   REGULAR COUNCIL MEETING             CALL TO ORDER AND ROLL CALL   PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE   APPROVAL OF AGENDA   CALL TO THE PUBLIC At this time any member of the public is allowed to address the Town Council on any issue within the jurisdiction of the Town Council, except for items scheduled for a Public Hearing at this meeting. The speaker may have up to three minutes to speak. Any persons wishing to address the Council must complete a speaker card located outside the Council Chambers and deliver it to the Town Clerk prior to the commencement of the meeting. Individuals addressing a meeting at the Call to the Public will not be provided with electronic technology capabilities beyond the existing voice amplification and recording capabilities in the facilities. Pursuant to the Arizona Open Meeting Law, at the conclusion of Call to the Public, individual members of the Council may respond to criticism made by those who have addressed the Council, and may ask staff to review the matter, or may ask that the matter be placed on a future agenda. Marana Regular Town Council Meeting February 7, 2023 Page 2 of 339 future agenda.   PROCLAMATIONS   MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS   MANAGER’S REPORT: SUMMARY OF CURRENT EVENTS   PRESENTATIONS   P1 Relating to Budget; presentation of independent auditor's report and final results for the 2021-2022 fiscal year (Yiannis Kalaitzidis)   CONSENT AGENDA The Consent Agenda contains items requiring action by the Council which are generally routine items not requiring Council discussion. A single motion and affirmative vote will approve all items on the Consent Agenda, including any resolutions or ordinances. Prior to a motion to approve the Consent Agenda, any Council member may remove any item from the Consent Agenda and that item will be discussed and voted upon separately.   C1 Ordinance No. 2023.003: Relating to Finance; temporarily waiving the fee required under Section 14-6-3(J) of the Marana Town Code for late payment of water rates, charges, or fees, beginning retroactively on January 1, 2023 and continuing until March 7, 2023 (Jing Luo)   C2 Resolution No. 2023-010: Relating to Development; approving the final plat for Tortolita Mountain Estates, Lots 1-81, and Common Areas "A" (Drainage / Open Space) and "B" (Recreation) located north of Tangerine Road and east of Camino de Oeste within Section 31, Township 11 South and Range 13 East (Brian D. Varney)    C3 Resolution No. 2023-011: Relating to Development; approving a final re-plat of The Preserve at Twin Peaks, Lots 44 through 46, generally located east of Camino de Manana and approximately a quarter mile north of Lambert Lane within Section 12, Township 12 South and Range 12 East (Brian D. Varney)    C4 Resolution No. 2023-012: Relating to Water; approving and authorizing the Marana Regular Town Council Meeting February 7, 2023 Page 3 of 339 C4 Resolution No. 2023-012: Relating to Water; approving and authorizing the Mayor to sign an Agreement for Construction of Water Facilities Under Private Contract with Tangerine 2021, LLC for Crossroads at Gladden (David L. Udall)   C5 Resolution No. 2023-013: Relating to Water; approving and authorizing the Mayor to sign an Agreement for Construction of Water Facilities under Private Contract for Tortolita Mountain Estates, Lots 1-81 (David L. Udall)   C6 Resolution No. 2023-014: Relating to the Water Department; approving and authorizing the submission of a grant application to the Bureau of Reclamation under the WaterSMART Grants: Water Recycling and Desalination Planning for Fiscal Year 2024 program and verifying certain information required under the program (Jing Luo)   C7 Approval of Study Session Summary Minutes of January 10, 2023, Special Council Meeting Summary Minutes of January 11, 2023, and Regular Council Meeting Summary Minutes of January 17, 2023 (David L. Udall)   LIQUOR LICENSES   BOARDS, COMMISSIONS AND COMMITTEES   COUNCIL ACTION   ITEMS FOR DISCUSSION / POSSIBLE ACTION   D1 Relating to Development and Public Works; update, discussion, and possible direction regarding public and private projects and development applications on the Town’s Marana Current and Proposed Projects internet site (Jason Angell)      D2 Relating to Legislation and Government Actions; discussion and possible action regarding all pending state, federal, and local legislation/government actions and on recent and upcoming meetings of the other governmental bodies (Terry Rozema)      D3 Relating to Budget; discussion, direction, and possible action regarding development of the fiscal year 2023/2024 budget, including proposed budget initiatives and expenditures (Terry Rozema)      Marana Regular Town Council Meeting February 7, 2023 Page 4 of 339 EXECUTIVE SESSIONS Pursuant to A.R.S. § 38-431.03, the Town Council may vote to go into executive session, which will not be open to the public, to discuss certain matters.   E1 Executive Session pursuant to A.R.S. §38-431.03 (A), Council may ask for discussion or consideration, or consultation with designated Town representatives, or consultation for legal advice with the Town Attorney, concerning any matter listed on this agenda for any of the reasons listed in A.R.S. §38-431.03 (A).      E2 Executive session pursuant to A.R.S. §38-431.03 (A)(3) and (4) for discussion or consultation with the Town’s attorneys and to instruct the Town’s representatives concerning the litigation entitled Southern Arizona Home Builders Association v. Town of Marana, Pima County Superior Court Case No. C20184411, Arizona Supreme Court Case No. CV-21-0211-PR.      FUTURE AGENDA ITEMS Notwithstanding the Mayor’s discretion regarding the items to be placed on the agenda, if three or more Council members request that an item be placed on the agenda, it must be placed on the agenda for the second regular Town Council meeting after the date of the request, pursuant to Marana Town Code Section 2-4-2(B).   ADJOURNMENT     Marana Regular Town Council Meeting February 7, 2023 Page 5 of 339      Council-Regular Meeting   P1        Meeting Date:02/07/2023   To:Mayor and Council From:Yiannis Kalaitzidis, Finance Director Date:February 7, 2023 Strategic Plan Focus Area: Proactive Public Services Strategic Plan Focus Area Additional Info: Goal: Elevate the Town's Public Service Quality Through Efficient Procedures. Strategy: Maintain a transparent financial environment by providing accurate and accessible financial information. Subject:Relating to Budget; presentation of independent auditor's report and final results for the 2021-2022 fiscal year (Yiannis Kalaitzidis) Discussion: On September 6, 2022, staff provided Council with preliminary financial results for the Town’s General Fund and certain other funds for fiscal year 2021-2022. The results presented were preliminary, unaudited, and subject to change. Baker Tilly, LLP, the Town’s independent financial statement audit firm, conducted its audit field work in November 2022 and released its opinion to the Town in December 2022. The Town received a clean opinion and the financial results are now final. The purpose of this presentation is to formally present the financial results of the audit and to provide Council with a brief summary of the audit. Copies of the Annual Comprehensive Financial Report (ACFR) and Annual Expenditure Limitation Report (AELR) are attached to this item. The Town expended more than $750,000 in federal award funding during fiscal year 2021-2022, as such a Single Audit Report is also attached to this item. The Town expended nearly $9.9 million in federal funding. The majority, or $8.2 million, being directly related to ARPA Marana Regular Town Council Meeting February 7, 2023 Page 6 of 339 grant funding received from the U.S. Department of Treasury. The 2022 ACFR has been submitted to the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting award program. The Town believes the current ACFR continues to meet the program requirements for another year. Staff Recommendation: Presentation only. Suggested Motion: Presentation only. Attachments Town of Marana - Fiscal Year 2021-2022 ACFR Town of Marana - Fiscal Year 2021-2022 Single Audit Town of Marana - Fiscal Year 2021-2022 Expenditure Limitation Report Town of Marana - Independent Auditors' Report Presentation Marana Regular Town Council Meeting February 7, 2023 Page 7 of 339 Marana Regular Town Council Meeting February 7, 2023 Page 8 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 9 of 339 TOWN OF MARANA, ARIZONA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Marana Regular Town Council Meeting February 7, 2023 Page 10 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 11 of 339 Page I. Introductory Section Letter of Transmittal i GFOA Certificate of Achievement v List of Principal Officials vi Organizational Chart vii II. Financial Section Independent Auditors’ Report 1 Management’s Discussion & Analysis 7 A. Basic Financial Statements Government-wide Financial Statements Statement of Net Position 24 Statement of Activities 26 Governmental Fund Financial Statements Balance Sheet 30 Reconciliation of the Balance Sheet to the Statement of Net Position 32 Statement of Revenues, Expenditures and Changes in Fund Balances 34 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 36 Proprietary Fund Financial Statements Statement of Net Position 38 Statement of Revenues, Expenses and Changes in Fund Net Position 39 Statement of Cash Flows 40 Notes to the Financial Statements Note 1 - Summary of Significant Accounting Policies 44 Note 2 - Fund Balance Classifications 52 Note 3 - Budgetary Control 54 Note 4 - Cash and Investments 55 Note 5 - Capital Assets 57 Note 6 - Leases 59 Note 7 - Long-term Liabilities 62 Note 8 - Unavailable and Unearned Amounts 69 Note 9 - Interfund Receivables, Payables and Transfers 70 Note 10 - Employee Retirement Systems 71 Note 11 - Risk Management 89 Note 12 - Commitments and Contingencies 89 Note 13 - Subsequent Events 89 Table of Contents Town of Marana, Arizona Marana Regular Town Council Meeting February 7, 2023 Page 12 of 339 Page B. Required Supplementary Information Budgetary Comparison Schedules Statement of Revenues, Expenditures and Changes in Fund Balances Budget to Actual - General Fund 95 Statement of Revenues, Expenditures and Changes in Fund Balances Budget to Actual - Highway User Revenue Fund 97 Notes to the Budgetary Comparison Schedules 98 Pension Plan Schedules Schedule of the Town’s Proportionate Share of the Net Pension Liability Cost-Sharing Pension Plan 101 Schedule of Changes in theTown’s Net Pension Liability and Related Ratios Agent Pension Plan 102 Schedule of the Town Pension Contributions 104 Notes to Pension Plan Schedules 106 C. Other Supplementary Information Budgetary Comparion Schedules - Major Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances Budget to Actual - Tangerine Farms Improvement District Debt Fund 112 Statement of Revenues, Expenditures and Changes in Fund Balances 113 Budget to Actual - Transportation Capital Fund Combining and Individual Fund Financial Statements and Schedules Non-Major Governmental Funds Combining Balance Sheet- All Non-Major Governmental Funds - By Fund Type 116 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - All Non-Major Governmental Funds - By Fund Type 117 Non-Major Special Revenue Funds Combining Balance Sheet 121 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 122 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 123 Non-Major Capital Projects Funds Combining Balance Sheet 132 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 134 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 136 Non-Major Debt Service Fund Combining Balance Sheet 148 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 149 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 150 Marana Regular Town Council Meeting February 7, 2023 Page 13 of 339 Page III. Statistical Section Financial Trends Net Position By Component 158 Changes in Net Position 162 Fund Balances, Governmental Funds 165 Changes in Fund Balances of Governmental Funds 166 Revenue Capacity 170 Governmental Activities Tax Revenues by Source Assessed Value, Estimated Actual Value and Assessment Ratios of wwwTaxable Property 171 Property Tax Rates- Direct and Overlapping Governments 172 Principal Property Taxpayers 173 Property Tax Levies and Collections 174 Tangerine Farms Road Improvement District Assessments Sales Tax by Industry 175 Excise Tax Collections 195 Debt Capacity Ratios of Outstanding Debt By Type 196 Ratios of General Bonded Debt Outstanding 197 Direct and Overlapping Governmental Activities Debt 198 Legal Debt Margin Information 199 Pledged-Revenue Coverage 200 Demographic and Economic Information Demographic and Economic Statistics 201 Principal Employers 202 Principal Retail and Contracting Sales Taxpayers Operating Information Full-Time Equivalent Town Government Employees By Function 204 Single Family Residental Permits Issued 205 Capital Asset Statistics By Function 206 194 203 Marana Regular Town Council Meeting February 7, 2023 Page 14 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 15 of 339 INTRODUCTORY SECTION Marana Regular Town Council Meeting February 7, 2023 Page 16 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 17 of 339 December 20, 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, 2022. 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 Baker Tilly US, 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, 2022, 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, 2022, are fairly presented in conformity with accounting principles generally accepted in the United States of America. The independent auditors’ report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the Town was part of a broader, federally mandated Single Audit as required by the provisions of the Single Audit Act Amendments of 1996 and the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited Town’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in a separately issued Single Audit Reporting Package. Accounting principles generally accepted in the United States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Town’s MD&A can be found immediately following the report of the independent auditors. iMarana Regular Town Council Meeting February 7, 2023 Page 18 of 339 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 54,895 according to the 2021 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 429 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, 2020 and 2021 were unprecedented years 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. In fiscal year 2022, the pandemic continued to be felt both individually and collectively across the region, nation, and world. Despite these ripple effects, the local, state, and national economies grew at near record pace. This economic growth, paired with accelerated housing development, and federal stimulus funds from the American Rescue Plan Act, encapsulate the strong financial performance of the Town. In fiscal year 2022, the Town has not only seen higher than anticipated projections and collections for key revenue streams that fund essential services, but also, significant gains in one-time revenues tied to commercial development throughout the community. Revenues in the General Fund grew by approximately 13.1% overall with growth in transaction privilege taxes of $3.8 million or 11.1% 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 approximately $10 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, 2022, the Town’s governmental funds reported a combined fund balance of $166.3 million, of which $95.0 million is unassigned and available for spending at the Town’s discretion. iiMarana Regular Town Council Meeting February 7, 2023 Page 19 of 339 The Town, like most municipalities, is significantly dependent upon transaction privilege tax revenues, which are subject to economic fluctuations. Transaction privilege tax revenues comprised 49.8% of general fund revenues. Of those revenues, retail comprised 55.9% and restaurants and bars, construction, and utilities comprised 29.8% of total transaction privilege tax revenues. Sales taxes and other revenues continued to show improvement compared to the prior fiscal year. Future Economic Outlook The Town’s goal in managing budgets is to structurally balance on-going revenues matched with on-going expenses and one-time revenues aligned with one-time expenses. In addition to our sound budgeting practices developed over the years, Town has used the following assumptions to develop the fiscal year 2022-2023 budget. •Cautious, moderated growth compared to fiscal year 2021-2022. •Inflation rate at 8.5% (40 year high). •Low unemployment rate of 3.6% •Population growth rate of 6.3% with 1,250 new residential home permits. •Continued growth in commercial development. Accomplishments and Initiatives During fiscal year 2022, the Town had several significant accomplishments and initiatives. Multigenerational Community & Aquatic Facility On October 19, 2021 the Town of Marana Council passed Ordinance No. 2021.022, amending the Town Tax Code by increasing the rate on certain business activities from 2.0% to 2.5% to fund the design and construction of a new multigenerational community and aquatic facility in North Marana. Formation of Strategic Plan V Strategic Plan V is the latest iteration of Town’s strategic planning process. Town leadership worked to outline specific goals and strategies to be taken by the Town for the next 2-to-3 years in order to reach long-term goals established in long-term planning documents. Strategic Plan V is built upon five focus areas that reflect Council’s vision for Marana. They are: Cherished Heritage, Vibrant Community, Thriving Commerce, Healthy Lifestyles, and Proactive Public Services. These focus areas, with their corresponding goals, create a strong approach to achieving Marana’s desired vision. Market Study and Employee Compensation The Town engaged with an outside consultant to complete a market and employee compensation study to ensure the Town remains competitive and equitable with recruitment, pay, and compensation-related benefits in the labor market. The culmination of this study led to adjustments in Town pay grades, ranges, and employee salaries effective July 1, 2022. 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 adjust 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 and encompasses fiscal year ending June 30, 2022. On November 8, 2022, voters approved a permanent base adjustment which is schedule to take effect in future fiscal years. iiiMarana Regular Town Council Meeting February 7, 2023 Page 20 of 339 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, 2021. This was the 14th 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 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 Town Manager Finance Director ivMarana Regular Town Council Meeting February 7, 2023 Page 21 of 339 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Town of Marana Arizona For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2021 Executive Director/CEO vMarana Regular Town Council Meeting February 7, 2023 Page 22 of 339 TOWN OF MARANA, ARIZONA PRINCIPAL OFFICIALS OF THE TOWN OF MARANA FISCAL YEAR 2022 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 Curry C. Hale, Human Resources Director Jane Fairall, Town Attorney Laine McDonald, Town Magistrate Lisa Shafer, Community and Neighborhood Services Director Jason Angell, Development Services Director Jim Conroy, Parks and Recreation Director Reuben Nunez, Police Chief Fausto Burruel, Public Works Director Yiannis Kalaitzidis, Finance Director Ricardo Carlos, Technology Services Director Jing Luo, Utilities Director David Udall, Town Clerk Curt Woody, Director of Economic Development viMarana Regular Town Council Meeting February 7, 2023 Page 23 of 339 Town of Marana Citizens Deputy Town Manager Development Services Center Town Clerk Finance ORGANIZATIONAL CHART Community & Neighborhood Services Technology Services Human Resources Police Water Parks & Recreation Engineering Public Works Legal Economic Development Town Manager Town Magistrate Mayor & Council Appointed Boards & Commissions viiMarana Regular Town Council Meeting February 7, 2023 Page 24 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 25 of 339 FINANCIAL SECTION Marana Regular Town Council Meeting February 7, 2023 Page 26 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 27 of 339 INDEPENDENT AUDITORS’ REPORT The Honorable Mayor and Town Council Town of Marana Marana, Arizona Report on the Audit of the Financial Statements Opinions 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 the Town of Marana, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Town of Marana’s basic financial statements as listed in the table of contents. 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, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions 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. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Town of Marana and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note 1 to the financial statements, for the year ended June 30, 2022, the Town adopted new accounting guidance, Governmental Accounting Standards Board Statement No. 87, Leases. Our opinions are not modified with respect to this matter. Other Matter 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 failed to comply with the authorized transportation purposes, insofar as they relate to accounting matters, for Highway User Revenue Fund monies it received pursuant to Arizona Revised Statutes Title 28, Chapter 18, Article 2, and any other dedicated State transportation revenues it received. 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’s noncompliance with the authorized transportation purposes referred to above, insofar as they relate to accounting matters. Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2020-2022 Baker Tilly US, LLP Marana Regular Town Council Meeting February 7, 2023 Page 28 of 339 Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town of Marana’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: •Exercise professional judgment and maintain professional skepticism throughout the audit. •Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. •Obtain an understanding of internal control relevant to the audit 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 Town of Marana’s internal control. Accordingly, no such opinion is expressed. •Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. •Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town of Marana’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Marana Regular Town Council Meeting February 7, 2023 Page 29 of 339 Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and post-employment benefit schedules as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Marana’s basic financial statements. The accompanying other supplementary information as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the 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, other supplementary information as listed in the table of contents are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Marana Regular Town Council Meeting February 7, 2023 Page 30 of 339 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 20. 2022 on our consideration of the Town of Marana’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely 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 the effectiveness of the Town of Marana’s 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 Town of Marana’s internal control over financial reporting and compliance. Tempe, Arizona December 20, 2022 Marana Regular Town Council Meeting February 7, 2023 Page 31 of 339 MANAGEMENT’S DISCUSSION AND ANALYSIS Marana Regular Town Council Meeting February 7, 2023 Page 32 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 33 of 339 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS Year Ended June 30, 2022 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, 2022. 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 $50.6 million or 11.8 percent from the previous fiscal year 2020-21. The increase is primarily due to an increase in cash, receivables due from other governments, and the recognition of leases receivable. The increase in cash is due to revenue collections in excess of projections, while expenses were below projections. This was a result of cautious budgeting for fiscal year 2021-22, due to the continued uncertainty surrounding the global pandemic. The increase in receivables due from other governments is attributable to local transaction privilege taxes collected by the State and due to the Town for activity during June 2022. The addition of leases receivable is associated with existing lease agreements now recognized under GASB 87. •General revenues from governmental activities, excluding transfers, accounted for $71.7 million in revenue, or 57.8 percent of all revenues from governmental activities. Program specific revenues in the form of charges for services and grants and contributions accounted for $52.5 million or 42.2 percent of total revenues from governmental activities. The Town had $28.3 million of program revenues related to business-type activities. Overall revenues have increased by 23.9 percent, with increases in all categories except investment income due to mark to market adjustments. Revenue categories that saw the largest increases for fiscal year 2021-22 were $13.6 million additional in capital grants and contributions, $9.3 million additional in sales taxes, and $5.3 million additional in charges for services, as compared to the prior fiscal year. •The General Fund had $75.9 million in revenue for fiscal year 2021-22, which primarily consisted of sales taxes, intergovernmental revenue, and licenses, fees and permits. This was an increase of $8.8 million compared to the prior fiscal year. This increase was a primarily result of increased activity across most areas, including strong growth in local sales tax collections and revenues related to residential and commercial development. The General fund had $44.6 million of expenditures and $4.1 million in required transfers out during the year. This is an increase of $4.2 million compared to the prior fiscal year. The increase in expenditures is a return to more normal expenditure levels as the global pandemic began to subside. Fund balance for the General Fund increased $27.2 million, and is attributed to higher than anticipated revenues in sales taxes, intergovernmental revenue, and licenses, fees and permits, as well as cautious and prudent uses of Town funds for departmental expenditures. •Highway User Revenue Fund revenues increased slightly compared to the prior fiscal year 2020- 21 to $4.4 million. Expenditures were less than the previous year due to supply chain shortages disrupting normal operations for the fund . The decrease in expenditures was 13.7 percent. •Tangerine Farms Road Improvement District Debt Service Fund, which accounts for special assessments, had a $367,265 fund balance attributable to the accumulation of prepaid assessments and resources required for debt service payments. •The Transportation Fund saw an increase in revenue of 29.4 percent in fiscal year 2021-22 due to increased construction tax revenues. There was a large degrease of 81.7 percent in expenditures due to delays with several large capital projects, such as the Tangerine Road Widen ing Phase II, and Twin Peaks Rattlesnake Pass Widening projects. 7Marana Regular Town Council Meeting February 7, 2023 Page 34 of 339 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 compr ise 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 activ ities 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 res ult, 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. 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. 8Marana Regular Town Council Meeting February 7, 2023 Page 35 of 339 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 fu nd statement of revenues, expenditures and changes in fund balances for the General Fund, Highway User Revenue, Tangerine Farms Road Improvement District Debt Service, and Transportation Capital Fund all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements and schedules. These statements are included as supplementary information after the basic financial statements starting on page 106. The Town adopts an annual budget and legally allocates (or appropriates) available monies for the General, Highway User Revenue, Tangerine Farms Road Improvement District Debt Service, 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 budg et. The basic governmental fund financial statements can be found on pages 32-42 of this report. Proprietary funds. The Town maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Town uses enterprise funds to account for its water, wastewater and airport services, which are primarily supported by user charges and fees. Internal service funds are an accounting device used to accumulate and allocate costs internally among the Town’s various functions. The Town uses an internal service fund to account for the employee health and dental benefits. Because the services of internal service funds predominantly benefits governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found immediately following the basic financial statements. 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. 9Marana Regular Town Council Meeting February 7, 2023 Page 36 of 339 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 $479.0 million as of June 30, 2022. Noncurrent assets decreased by $10.5 million or 2.3 percent due to the reduction of capital assets and non-current accounts receivable. The current assets increased by $67.6 million or 51.1 percent primarily due to an increase in cash, and the addition of leases receivable. Increases in cash is primarily due to relatively conservative spending and higher than expected revenue collections from a strong economy. The addition of lease receivable is related to the implementation of GASB 87 for pre-existing Town leases. Current liabilities decreased slightly from $22.5 million to $21.6 million. Long- term liabilities decreased by $11.9 million or 7.8 percent primarily due to a decrease in net pension liability. Net position. The majority of the Town’s net position reflects its investment in capital assets (land, building and improvements, infrastructure, vehicles and equipment and construction in progress) net of accumulated depreciation and any related outstanding debt used to acquire or construct those assets. The Town uses these capital assets to provide services to its citizens; c onsequently, these assets are not available for future spending. Although the Town’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. In addition, a portion of the Town’s net position represents resources that are subject to external restrictions on how they may be used. The Town’s financial position is the product of several financial transactions including the net results of activities, the acquisition and payment of debt, the acquisition and disposal of capital assets, and the depreciation of capital assets. The following table presents a summary of the Town’s net position for the fiscal years ended June 30, 2022 and June 30, 2021. Governmental Activities Business-type Activities Total 2022 2021 2022 2021 2022 2021 Current and other assets 185,080,318$ 131,599,536$ 26,657,212$ 14,023,513$ 211,737,530$ 145,623,049$ Capital assets, net 289,081,688 301,486,932 147,459,195 144,117,321 436,540,883 445,604,253 Total assets, net 474,162,006 433,086,468 174,116,407 158,140,834 648,278,413 591,227,302 Deferred outflows related to refunding 1,159,718 1,307,614 - - 1,159,718 1,307,614 Deferred outflows related to pensions 9,119,870 10,931,378 584,139 575,075 9,704,009 11,506,453 Total deferred outflows of resources 10,279,588 12,238,992 584,139 575,075 10,863,727 12,814,067 Current and other liabilities 17,279,281 17,749,513 4,327,709 4,768,257 21,606,990 22,517,770 Long-term liabilities 102,439,115 113,621,944 38,188,286 38,972,319 140,627,401 152,594,263 Total liabilities 119,718,396 131,371,457 42,515,995 43,740,576 162,234,391 175,112,033 Deferred inflows related to pensions 9,296,687 467,204 815,581 - 10,112,268 467,204 Deferred inflows related to leases 3,045,820 - 4,705,078 - 7,750,898 - Total deferred inflows of resources 12,342,507 467,204 5,520,659 - 17,863,166 467,204 Net position: Net investment in capital assets 229,747,427 243,691,969 110,451,894 106,165,559 340,199,321 349,857,528 Restricted 34,401,328 21,674,530 818,271 1,128,549 35,219,599 22,803,079 Unrestricted 88,231,936 48,120,299 15,393,727 7,673,224 103,625,663 55,793,523 Total net position 352,380,691$ 313,486,798$ 126,663,892$ 114,967,332$ 479,044,583$ 428,454,130$ 10Marana Regular Town Council Meeting February 7, 2023 Page 37 of 339 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 $340.2 million or 71.0 percent, which represents the largest portion of net position. This por tion of net position decreased by $9.7 million as of June 30, 2022. The second portion of net position of $35.2 million or 7.4 percent represents resources that are subject to external restrictions on how they may be utilized. This category increased $12.4 million from as of June 30, 2022 primarily due to increases related to capital projects . The third portion consists of unrestricted net position of $103.6 million or 21.6 percent. The unrestricted balance has increased by $47.8 million. The increase in governmental activities accounts for $40.1 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 stronger than anticipated revenues. The business-type activities increase in unrestricted net position was $7.7 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. Changes in net position. The Town’s total revenues for the fiscal year ended June 30, 2022, were $152.9 million, which was an overall increase of $24.5 million or 24.6 percent. While most categories experienced growth from the prior fiscal year, the large increases are mainly related to capital grants and contributions, and sales taxes. Capital grants and contributions increased by $10.0 million due to increased developer and other agency contributions towards capital projects. Sales tax collections increased by $9.3 million due to strong economic conditions and the Town increasing its tax rate from 2.0 percent to 2.5 percent mid-way through the fiscal year to help fund the construction of capital projects. The total cost of all programs and services was $102.3 million. This is an increase of $5.3 million or 6.6 percent. This increase is primarily attributable to increased spending in General Government, Culture and Recreation, and Water. The increase in spending within the General Government function is due to increased construction expenses. The increase in spending within the Culture and Recreation function is due to an increase in wages and depreciation expense. Water had increases in numerous operating categories as well as capital related expenses. Net investment in capital assets 71.0% Restricted 7.4% Unrestricted 21.6% Government-wide Net Position at June 30, 2022 11Marana Regular Town Council Meeting February 7, 2023 Page 38 of 339 2022 2021 2022 2021 2022 2021 Revenues: Program revenues: Charges for services 16,874,628$ 12,667,676$ 11,297,598 10,157,583$ 28,172,226$ 22,825,259$ Operating grants and contributions 14,710,958 14,465,174 - - 14,710,958 14,465,174 Capital grants and contributions 20,876,971 10,839,877 17,045,660 13,461,844 37,922,631 24,301,721 General revenues: Sales taxes 52,111,536 42,846,634 - - 52,111,536 42,846,634 Property taxes 1,697,968 1,420,127 - - 1,697,968 1,420,127 Franchise taxes 608,355 584,762 - - 608,355 584,762 State shared revenues 16,513,277 15,371,517 - - 16,513,277 15,371,517 Investment income (217,907) 484,181 8,912 4,158 (208,995) 488,339 Gain on sale of capital assets 77,345 - - - 77,345 - Miscellaneous revenues 956,000 1,002,901 369,854 122,960 1,325,854 1,125,861 Contributions - - - - - - Total revenues 124,209,131 99,682,849 28,722,024 23,746,545 152,931,155 123,429,394 Expenses: General government 28,538,663 22,578,082 - - 28,538,663 22,578,082 Public safety 17,852,105 19,223,164 - - 17,852,105 19,223,164 Highways and streets 25,480,792 25,728,785 - - 25,480,792 25,728,785 Health and welfare 489,357 460,865 489,357 460,865 Economic and community development 4,113,481 4,158,387 4,113,481 4,158,387 Culture and recreation 6,950,406 5,861,170 - - 6,950,406 5,861,170 Interest on long-term debt 2,257,780 2,346,385 - - 2,257,780 2,346,385 Water - - 9,751,629 7,795,647 9,751,629 7,795,647 Wastewater - - 5,103,996 5,345,902 5,103,996 5,345,902 Airport - - 1,802,493 1,645,801 1,802,493 1,645,801 Total expenses 85,682,584 80,356,838 16,658,118 14,787,350 102,340,702 95,144,188 Increase/(decrease) in net position before transfers 38,526,547 19,326,011 12,063,906 8,959,195 50,590,453 28,285,206 Transfers 367,346 4,589 (367,346) (4,589) - - Increase/(decrease) in net position 38,893,893 19,330,600 11,696,560 8,954,606 50,590,453 28,285,206 Net position, beginning of year 313,486,798 294,156,198 114,967,332 106,012,726 428,454,130 400,168,924 Net position, end of year 352,380,691$ 313,486,798$ 126,663,892$ 114,967,332$ 479,044,583$ 428,454,130$ Governmental Activities Business-type Activities Total Governmental Activities. Governmental activities increased net position by $9.2 million for fiscal year ended June 30, 2022. This increase is attributable to 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 $4.9 million, which contributed to the increase in governmental net position. The following table presents the cost of the nine maj or Town functional activities. The table also shows each function’s net cost (total cost less charges for services generated by the activities and intergovernmental aid provided for specific programs). The net cost shows the financial burden that was placed on the State and Town’s taxpayers by each of these functions. 12Marana Regular Town Council Meeting February 7, 2023 Page 39 of 339 Year Ended June 30, 2022 Year Ended June 30, 2021 Total Net (Expense)/Total Net (Expense)/ Expenses Revenue Expenses Revenue Governmental Activities General government 28,538,663$ (14,360,178)$ 22,578,082$ (8,189,953)$ Public safety 17,852,105 (16,074,351) 19,223,164 (15,247,020) Highways and streets 25,480,792 (5,090,084) 25,728,785 (15,967,280) Health and welfare 489,357 (375,222) 460,865 (373,570) Economic and community development 4,113,481 8,790,812 4,158,387 4,928,238 Culture and recreation 6,950,406 (3,853,224) 5,861,170 (5,188,141) Interest on long-term debt 2,257,780 (2,257,780) 2,346,385 (2,346,385) Total 85,682,584$ (33,220,027)$ 80,356,838$ (42,384,111)$ Business-Type Activities Water 9,751,629$ 9,108,081$ 7,795,647$ 7,287,051$ Wastewater 5,103,996 3,309,148 5,345,902 2,524,629 Airport 1,802,493 (765,624) 1,645,801 (979,603) Total 16,658,118$ 11,651,605$ 14,787,350$ 8,832,077$ The cost of all governmental activities this year was $85.7 million. There was a 6.6 percent increase in governmental activities expenses, which as previously mentioned is due to increased spending levels and the pandemic subsides. •Net cost of governmental activities of $33.2 million was largely financed by general revenues, which are made up of primarily sales taxes totaling $52.1 million and state shared revenues of $16.5 million. •The Water fund expenses increased $2.0 million or 25.1 percent. This is primarily due to increased costs as inflationary pressures increased operating expenses, as well as increased expenses related to planned capital projects. •Expenses in the Wastewater fund remained relatively similar to the prior fiscal year, with a small overall decrease of $241,906 or 4.5 percent. •The Airport fund expenses increased $156,692 or 9.5 percent. The increases were primarily related to the Airport Control Tower siting study and various runway light replacements . 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 c overed 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 $52.5 million are 62.9 percent of expenses for fiscal year 2022, up from 47.3 percent a year earlier. As described earlier, this increase is attributable to higher collections for charges for services and operating grants and contributions. 13Marana Regular Town Council Meeting February 7, 2023 Page 40 of 339 As seen on the following graphs, the largest revenue source for the Town’s governmental activities is sales tax revenues at 42.0 percent, followed by capital grants and contributions at 16.8 percent, charges for services at 13.6 percent, and state shared revenues at 13.3 percent. The Town’s largest expense category is general government at 33.3 percent, followed by highways and streets at 29.7 percent, and public safety at 20.8 percent. This is largely consistent with the allocation of expenses in the previous fiscal year. $28.5 $17.9 $25.5 $0.5 $4.1 $7.0 $14.2 $1.8 $20.4 $0.1 $12.9 $3.1 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 General government Public safety Highways and streets Economic and community development Economic and community development Culture and recreation Governmental Activities Expenses and Program Revenues Revenues Expenses 14Marana Regular Town Council Meeting February 7, 2023 Page 41 of 339 Charges for services , 13.6% Operating grants and contributions, 11.8% Capital grants and contributions , 16.8%Sales taxes, 42.0% Property taxes, 1.4% Franchise taxes, 0.5% State shared revenues , 13.3% Investment income, -0.2% Miscellaneous revenues, 0.8% Gain on sale of capital assets, 0.1% Governmental Activities Revenues by Type General government 33.3% Public safety 20.8% Highways and streets 29.7% Health and welfare 0.6% Economic and community development 4.8% Culture and recreation 8.1% Interest on long- term debt 2.6% Governmental Activities Expenses by Function 15Marana Regular Town Council Meeting February 7, 2023 Page 42 of 339 Business-type activities’ net position increased by $2.8 million for fiscal year ended June 30, 2022. This increase is largely related to higher than projected revenue collections. Charges for services continued to increase due to continued growth. This correlates with the increases mentioned previously for development related activity. Overall, business-type activity expenses increased by $2.0 million or 12.7 percent from the prior fiscal year. Water expenses increased by $1.9 million, while Airport saw a modest increase of $156,692 and Wastewater saw a decrease of $241,906. The Town’s largest overall business-type activity is the Water Utility with $9.8 million in expenses and $18.9 million in program revenues during the year. The second largest activity is the Wastewater Utility with $5.1 million in expenses and $8.4 million in program revenues, followed by the Airport with $1.8 million in expenses and $1.0 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 59.2 percent followed by charges for services revenues at 39.3 percent. Miscellaneous revenues make up the remaining portion at 1.3 percent. $9.8 $5.1 $1.8 $18.9 $8.4 $1.0 $- $5.0 $10.0 $15.0 $20.0 Water Wastewater Airport Business-type Activities Expenses and Program Revenues Revenues Expenses Business-type Activities 16Marana Regular Town Council Meeting February 7, 2023 Page 43 of 339 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, 2022, the Town’s governmental funds reported a combined fund balance of $166.3 million, of which $92.7 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 $98.6 million. Revenues increased by 13.1 percent and expenditures increased by 11.1 percent compared to the prior fiscal year. The primary increases in revenues were related to sales taxes and licenses, fees and permits. The increase in expenditures is related to increase spending as the pandemic subsides, as well as inflationary pressures. The Transportation Fund had a fund balance of $19.5 million which reflects an increase of $6.7 million from a year earlier. This is attributable to increased construction sales tax collections, and reduced expenditures due to capital project delays. 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 $126.4 million. Of this amount, $110.5 million comprised the funds’ net investment in capital assets, $0.8 million is restricted debt service, and unrestricted net position is $15.2 million. The factors concerning the finances of these funds, as well as the changes in net position, have been addressed previously in the discussion of the Town’s business-type activities. Charges for services 39.4%Capital grants and contributions 59.3% Miscellaneous revenues 1.3% Business-type Activities Revenues by Type 17Marana Regular Town Council Meeting February 7, 2023 Page 44 of 339 The governmental activities net position increased by $394,412 with a total net position of $2.4 million. This balance remains 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 the Town closely reviews adopted initiatives and goals tied to the Strategic Plan, which serves as the comprehensive, guiding blueprint for the organization. These goals are utilized to ensure that allocations are aligned with need, and that strategies are resulting in the appropriate outcomes. General Fund revenues exceeded budget projections in several key revenue sources like sales taxes, intergovernmental, and licenses, permits and fees. At the same time, departments maintained their prudent use of available resources. As mentioned previously, ARPA funds and a robust economy resulted in higher than budgeted revenue collections. The judicious use of funds as well as higher than expected revenues resulted in an increase in fund balance of $27.2 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, as well as between funds did occur. Two budget amendments of note were a transfer of $333,195 of budget authority from the General Fund to the Water Fund, and a $425,000 amendment from the General Fund to the Wastewater Fund. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets. As of June 30, 2022 the Town had invested $432.2 million in governmental and business- type capital assets (net of accumulated depreciation). Total depreciation expense for the year was $27.2 million, with $22.1 million attributed to governmental activities and $5.1 million to business-type activities respectively. The following schedule presents capital asset balances for the fiscal years ended June 30, 2022 and June 30, 2021. Additional information on the Town’s capital assets can be found in Note 5. Governmental Activities Business-type Activities Total As of As of As of As of As of As of June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Land 9,541,148$ 9,478,747$ 4,167,618$ 4,167,618$ 13,708,766$ 13,646,365$ Water rights - - 4,262,697 4,262,697 4,262,697 4,262,697 Construction in progress 6,790,444 6,153,645 19,290,665 19,290,665 26,081,109 25,444,310 Right of use assets - land 368,153 - - - 368,153 - Buildings and improvements 65,945,662 65,945,662 153,410,834 153,410,834 219,356,496 219,356,496 Machinery and equipment 26,627,533 26,199,233 3,920,889 3,920,889 30,548,422 30,120,122 Infrastructure 462,629,861 455,182,556 - - 462,629,861 455,182,556 Less: Accumulated depreciation/ amortization (282,821,113) (261,472,912) (40,935,382) (40,935,382) (323,756,495) (302,408,294) Total 289,081,688$ 301,486,931$ 144,117,321$ 144,117,321$ 433,199,009$ 445,604,252$ 18Marana Regular Town Council Meeting February 7, 2023 Page 45 of 339 Major capital asset events during the current fiscal year included the following: •Completion of the Court Jury Assembly Room for $0.5 million. •Rehabilitation of Cortaro Road for $0.4 million. •Design and land acquisition for the Twin Peaks Road, Rattlesnake Pass widening project (construction in progress as of the close of the fiscal y ear had reached $0.4 million). •Completion of construction of the Airline/Lambert water treatment campus for $8.0 million. •Completion of construction of the Picture Rocks water treatment campus for $8.0 million. •Completion of construction of the Tangerine X-Zone Booster & PRV Station for $1.4 million. •Completion of the Clark Farms Flow Split for $0.4 million. Debt Administration. At year-end, the Town had $113.6 million in long-term debt obligations outstanding with $8.1 million due within one year. The Town had new debt adding $8.4 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 $0.5 million. The following table presents a summary of the Town’s outstanding debt for fiscal years ended June 30, 2022 and June 30, 2021. Additional information on the Town’s long-term obligations can be found in Note 6. Governmental Activities Business-type Activities Total 2022 2021 2022 2021 2022 2021 General obligation bonds 24,000,000$ 17,800,000$ -$ -$ 24,000,000$ 17,800,000$ Revenue bonds 38,820,000 41,970,000 19,780,000 19,780,000 58,600,000 61,750,000 Revenue bonds - Direct Placements 2,616,000 3,331,000 197,000 390,000 2,813,000 3,721,000 Special assessment bonds 5,695,000 7,529,000 - - 5,695,000 7,529,000 Loan payable - - 16,729,659 16,776,531 16,729,659 16,776,531 Bond Premium 5,464,506 4,766,981 291,807 311,494 5,756,313 5,078,475 Total 76,595,506$ 75,396,981$ $36,998,466 $37,258,025 113,593,972$ 112,655,006$ ECONOMIC FACTORS AND NEXT YEAR’S BUDGET While some effects of the pandemic still linger, the Town and the economy has recovered from the initial disruption caused by the pandemic. Due to stimulus provided by the CARES and ARPA Acts, in addition to individual stimulus checks to citizens, the economy grew at near record pace for fiscal 2021 -22. Because of these efforts, the Town saw strong growth in sales taxes and development related revenues which is forecasted to continue into fiscal year 2022-23. However, with rapid recovery and revenue growth throughout the economy, inflationary pressures and a tight labor market are projected in the fiscal year 2022-23 budget. This is anticipated to limit the availability of funding available to accomplish goals and initiative in the Town’s Strategic Plan. The 2022-23 budget increased by $74.6 million or 46.9%. This large increase is due in part to projected revenue growth from the prior fiscal year, as well as increased expenditures as global pandemic subsides. Revenues and other financing sources for the fiscal year 202 2-2023 budget are $161.7 million, while expenditures total $233.5 million. The financial plan assumes that $71.8 million in fund balance/equity will be used to complete previously funded projects and other onetime expenditures approved by council. The budget is structurally balanced with ongoing revenues supporting ongoing program expenditures. 19Marana Regular Town Council Meeting February 7, 2023 Page 46 of 339 The budget document is the comprehensive decision making tool resulting from the annual budget process and provides detail for the upcoming fiscal year. The budget is a long-range plan by which financial policy is implemented and controlled and serves as a funding plan for policies, goals, and service-levels provided to the citizens of Marana. CONTACTING THE TOWN’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a general overview of the Town’s finances and to demonstrate the Town’s accountability for the resources it receives. If you have questions about this r eport or need additional information, contact the Finance Department, Town of Marana, Arizona at 11555 West Civic Center Drive, Marana, Arizona 85653, or visit www.MaranaAZ.gov. 20Marana Regular Town Council Meeting February 7, 2023 Page 47 of 339 BASIC FINANCIAL STATEMENTS Marana Regular Town Council Meeting February 7, 2023 Page 48 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 49 of 339 GOVERNMENTAL-WIDE FINANCIAL STATEMENTS Marana Regular Town Council Meeting February 7, 2023 Page 50 of 339 24 TOWN OF MARANA, ARIZONA STATEMENT OF NET POSITION June 30, 2022 Governmental Activities Business-type Activities Total ASSETS Current assets: Cash and cash equivalents 146,395,450$ 24,125,953$ 170,521,403$ Property taxes receivable 20,664 - 20,664 Accounts receivable 2,124,518 1,610,385 3,734,903 Leases receivable 3,138,055 4,777,097 7,915,152 Interest receivable 231,302 - 231,302 Due from other governments 16,567,998 545,010 17,113,008 Internal balances 352,436 (352,436) - Inventories 84,137 - 84,137 Prepaid items 289,870 1,221 291,091 Total current assets 169,204,430 30,707,230 199,911,660 Noncurrent assets: Accounts receivable 3,820,000 - 3,820,000 Restricted cash and investments 7,187,599 818,271 8,005,870 Advances 4,868,289 (4,868,289) - Capital assets not being depreciated/amortized 16,331,592 11,657,050 27,988,642 Capital assets, being depreciated/amortized, net 272,750,096 135,802,145 408,552,241 Total noncurrent assets 304,957,576 143,409,177 448,366,753 Total assets 474,162,006 174,116,407 648,278,413 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions 9,119,870 584,139 9,704,009 Deferred charge on refunding 1,159,718 - 1,159,718 Total deferred outflows of resources 10,279,588 584,139 10,863,727 LIABILITIES Current liabilities: Accounts payable 4,134,756 836,867 4,971,623 Retainage payable 283,479 8,835 292,314 Accrued payroll and employee benefits 1,381,793 123,039 1,504,832 Unearned revenue 673,667 - 673,667 Deposits held for others 861,594 1,049,858 1,911,452 Due to other government 61,540 221,660 283,200 Claims payable 280,354 - 280,354 Accrued interest payable 1,390,642 613,698 2,004,340 Compensated absences 1,236,796 121,806 1,358,602 Leases payable 5,660 - 5,660 Water agreement payable - 202,035 202,035 Loan payable - 952,911 952,911 General obligation bonds - CFD 865,000 - 865,000 Special assessment bonds - TFRID 1,569,000 - 1,569,000 Revenue bonds 4,535,000 197,000 4,732,000 Total current liabilities 17,279,281 4,327,709 21,606,990 See accompanying notes.Marana Regular Town Council Meeting February 7, 2023 Page 51 of 339 25 Noncurrent liabilities: Compensated absences 137,421 13,534 150,955 Leases payable 357,473 - 357,473 Net pension liablity 32,808,935 1,720,092 34,529,027 Water agreement payable - 606,105 606,105 Loan payable - 15,776,749 15,776,749 General obligation bonds - CFD 24,716,539 - 24,716,539 Special assessment bonds - TFRID 4,126,000 - 4,126,000 Revenue bonds 40,292,747 20,071,806 60,364,553 Total non-current liabilities 102,439,115 38,188,286 140,627,401 Total liabilities 119,718,396 42,515,995 162,234,391 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions 9,296,687 815,581 10,112,268 Deferred inflows related to leases 3,045,820 4,705,078 7,750,898 Total deferred inflows of resources 12,342,507 5,520,659 17,863,166 NET POSITION Net investment in capital assets 229,747,427 110,451,894 340,199,321 Restricted for: Capital projects 23,840,307 - 23,840,307 Debt service - 818,271 818,271 General government 4,163,747 - 4,163,747 Public safety 1,299,411 - 1,299,411 Highways and streets 5,005,197 - 5,005,197 Economic and community development 92,666 - 92,666 Unrestricted 88,231,936 15,393,727 103,625,663 Total net position 352,380,691$ 126,663,892$ 479,044,583$ See accompanying notes.Marana Regular Town Council Meeting February 7, 2023 Page 52 of 339 26 TOWN OF MARANA, ARIZONA STATEMENT OF ACTIVITIES Year Ended June 30, 2022 Program Revenues Net (Expense) Revenue and Changes in Net Position Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Primary Government Governmental activities: General government 28,538,663$ 5,579,764$ 8,593,453$ 5,268$ Public safety 17,852,105 - 1,733,156 44,598 Highways and streets 25,480,792 - 4,272,741 16,117,967 Health and welfare 489,357 82,831 31,304 - Economic and community development 4,113,481 10,934,975 78,972 1,890,346 Culture and recreation 6,950,406 277,058 1,332 2,818,792 Interest on long-term debt 2,257,780 - - - Total governmental activities 85,682,584 16,874,628 14,710,958 20,876,971 Business-type activities: Water 9,751,629 8,022,044 - 10,871,201 Wastewater 5,103,996 2,839,117 - 5,574,027 Airport 1,802,493 436,437 - 600,432 Total business-type activities 16,658,118 11,297,598 - 17,045,660 Total primary government 102,340,702$ 28,172,226$ 14,710,958$ 37,922,631$ General revenues: Taxes: Sales taxes Property taxes Franchise taxes State shared revenues, unrestricted Investment income Interest earnings Change in fair value of investments Gain on sale of capital assets Miscellaneous Transfers Total general revenues and transfers Changes in net position Net position, beginning of year Net position, end of year See accompanying notes.Marana Regular Town Council Meeting February 7, 2023 Page 53 of 339 27 Net (Expense) Revenue and Changes in Net Position Governmental Activities Business-type Activities Totals (14,360,178)$ -$ (14,360,178)$ (16,074,351) - (16,074,351) (5,090,084) - (5,090,084) (375,222) - (375,222) 8,790,812 - 8,790,812 (3,853,224) - (3,853,224) (2,257,780) - (2,257,780) (33,220,027) - (33,220,027) - 9,141,616 9,141,616 - 3,309,148 3,309,148 - (765,624) (765,624) - 11,685,140 11,685,140 (33,220,027) 11,685,140 (21,534,887) 52,111,536 - 52,111,536 1,697,968 - 1,697,968 608,355 - 608,355 16,513,277 - 16,513,277 957,026 8,912 965,938 (1,174,933) - (1,174,933) 77,345 - 77,345 956,000 369,854 1,325,854 367,346 (367,346) - 72,113,920 11,420 72,125,340 38,893,893 11,696,560 50,590,453 313,486,798 114,967,332 428,454,130 352,380,691$ 126,663,892$ 479,044,583$ See accompanying notes.Marana Regular Town Council Meeting February 7, 2023 Page 54 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 55 of 339 FUND FINANCIAL STATEMENTS Marana Regular Town Council Meeting February 7, 2023 Page 56 of 339 30 TOWN OF MARANA, ARIZONA BALANCE SHEET – GOVERNMENTAL FUNDS June 30, 2022 General Fund Highway User Revenue ASSETS Cash and cash equivalents 85,689,304$ 4,808,453$ Property taxes receivable - - Accounts receivable 281,480 - Leases receivable 3,138,055 - Special assessments receivable - - Interest receivable 134,502 - Development agreement receivable - - Due from other governments 13,176,858 473,701 Due from other funds 897,445 - Inventories 84,137 - Prepaid items 284,285 - Advances 2,568,289 - Restricted cash and investments - - Total assets 106,254,355$ 5,282,154$ LIABILITIES Accounts payable 1,795,273$ 276,957$ Retainage payable 4,453 89,151 Accrued payroll and employee benefits 1,347,625 - Due to other funds - - Due to other governments 61,540 - Deposits held for others 764,384 - Unearned revenue 660,438 - Total liabilities 4,633,713 366,108 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - - Deferred inflows related to leases 3,045,820 - Total deferred inflows of resources 3,045,820 - FUND BALANCES (DEFICITS) Nonspendable 2,936,711 - Restricted - 4,916,046 Committed - - Unassigned 95,638,111 - Total fund balances (deficits)98,574,822 4,916,046 Total liabilities, deferred inflow of resources, and fund balances (deficits) 106,254,355$ 5,282,154$ See accompanying notes.Marana Regular Town Council Meeting February 7, 2023 Page 57 of 339 31 Tangerine Farms Improvement District Debt Service Transportation Non-Major Governmental Funds Total Governmental Funds 367,265$ 16,287,378$ 36,332,846$ 143,485,246$ - - 20,664 20,664 - - 828 282,308 - - - 3,138,055 5,591,342 - - 5,591,342 - 79,684 17,116 231,302 - - 70,868 70,868 - 1,575,158 1,342,281 16,567,998 - 50,000 - 947,445 - - - 84,137 - - 5,585 289,870 - 2,300,000 - 4,868,289 - 332,487 6,855,112 7,187,599 5,958,607$ 20,624,707$ 44,645,300$ 182,765,123$ -$ 966,595$ 832,255$ 3,871,080$ - 151,558 38,317 283,479 - - 34,168 1,381,793 - - 595,009 595,009 - - - 61,540 - - 97,210 861,594 - - 13,229 673,667 - 1,118,153 1,610,188 7,728,162 5,591,342 - 79,357 5,670,699 - - - 3,045,820 5,591,342 - 79,357 8,716,519 - - 5,585 2,942,296 367,265 332,487 41,953,657 47,569,455 - 19,174,067 1,628,523 20,802,590 - - (632,010) 95,006,101 367,265 19,506,554 42,955,755 166,320,442 5,958,607$ 20,624,707$ 44,645,300$ 182,765,123$ See accompanying notes.Marana Regular Town Council Meeting February 7, 2023 Page 58 of 339 32 TOWN OF MARANA, ARIZONA RECONCILIATION OF THE BALANCE SHEET – GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION June 30, 2022 Total governmental fund balances 166,320,442$ 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 571,534,649$ Governmental right of use assets 368,153 Less accumulated depreciation/amortization (282,821,114) 289,081,688 Long-term liabilities, such as net pension liabilities, leases, and bonds payable, are not due and payable in the current period and, therefore, are not reported in the governmental funds: Compensated absences (1,374,217) Leases payable (363,133) Revenue bonds payable (41,436,000) General obligation bonds payable (24,000,000) Special assessment bonds (5,695,000) Net pension liability (32,808,935) Accrued interest payable (1,390,642) (107,067,927) 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.2,366,174 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 (4,973,286) Deferred charge on refunding 1,159,718 Deferred inflows related to pensions (9,296,687) Deferred outflows related to pensions 9,119,870 (3,990,385) 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 79,357 Special assessments revenue 5,591,342 5,670,699 Net position of governmental activities 352,380,691$ See accompanying notes.Marana Regular Town Council Meeting February 7, 2023 Page 59 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 60 of 339 34 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS Year Ended June 30, 2022 General Fund Highway User Revenue Revenues: Sales taxes 37,758,894$ -$ Property taxes - - Intergovernmental 24,710,836 4,271,391 Licenses, fees & permits 11,190,988 48,098 Fines, forfeitures & penalties 382,476 - Charges for services 988,782 - Lease income 264,148 - Contributions 500 - Investment income Interest earnings 779,086 6,691 Change in fair value of investments (959,247) - Miscellaneous 758,188 31,053 Total revenues 75,874,651 4,357,233 Expenditures: Current - General government 14,160,004 - Public safety 16,341,432 - Highways and streets 2,714,642 3,173,692 Health and welfare 318,004 - Economic and community development 4,126,391 - Culture and recreation 5,714,361 - Capital outlay 1,183,638 21,147 Debt service - Principal retirement 5,020 - Interest and fiscal charges 10,978 - Bond issuance costs - - Total expenditures 44,574,470 3,194,839 Excess (deficiency) of revenues over expenditures 31,300,181 1,162,394 Other financing sources (uses): Issuance of debt - - Premium on bonds issued - - Transfers in 11,708 - Transfers out (4,093,861) - Total other financing sources (uses)(4,082,153) - Changes in fund balances 27,218,028 1,162,394 Fund balances (deficits), beginning of year 71,356,794 3,753,652 Fund balances (deficits), end of year 98,574,822$ 4,916,046$ See accompanying notes.Marana Regular Town Council Meeting February 7, 2023 Page 61 of 339 35 Tangerine Farms Improvement District Debt Service Transportation Non-Major Governmental Funds Total Governmental Funds -$ 8,395,919$ 5,956,723$ 52,111,536$ - - 1,697,968 1,697,968 - - 6,887,524 35,869,751 - - 9,710,243 20,949,329 - - 45,734 428,210 - - - 988,782 - - - 264,148 1,801,409 1,197,199 32,992 3,032,100 - 97,552 73,697 957,026 - (137,107) (78,579) (1,174,933) - - 6,120 795,361 1,801,409 9,553,563 24,332,422 115,919,278 - 977,461 1,081,207 16,218,672 - - 1,506,917 17,848,349 - - 117,422 6,005,756 - - - 318,004 - - 370,884 4,497,275 - - 1,290 5,715,651 - 987,938 8,456,210 10,648,933 1,834,000 - 4,465,000 6,304,020 145,001 - 2,719,626 2,875,605 - - 510,765 510,765 1,979,001 1,965,399 19,229,321 70,943,030 (177,592) 7,588,164 5,103,101 44,976,248 - - 6,800,000 6,800,000 - - 697,524 697,524 25,616 - 6,540,207 6,577,531 - (858,375) (1,257,949) (6,210,185) 25,616 (858,375) 12,779,782 7,864,870 (151,976) 6,729,789 17,882,883 52,841,118 519,241 12,776,765 25,072,872 113,479,324 367,265$ 19,506,554$ 42,955,755$ 166,320,442$ See accompanying notes.Marana Regular Town Council Meeting February 7, 2023 Page 62 of 339 36 TOWN OF MARANA, ARIZONA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGED IN FUND BALANCES – GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended June 30, 2022 Net changes in fund balances - total governmental funds 52,841,118$ 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 4,437,650$ Less current year depreciation/amortization (22,117,793) (17,680,143) 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. Issuance of general obligation bonds (6,800,000) Issuance of premium on bonds (697,525) Lease principal 5,020 Special assessment bond retirement 1,834,000 General obligation bond retirement 600,000 Revenue bond principal retirement 3,865,000 (1,193,505) Contributions of infrastructure assets are not recorded as revenues in the governmental funds.4,930,982 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 47,050 Intergovernmental revenue 32,300 Special assessments (1,625,898) Compensated absences 72,080 Loss on sale of assets (24,234) Amortization of bond premiums 491,219 Amortization of deferred charges (147,896) (1,155,379) 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 4,275,641 Pension revenue 22,534 Pension expense (3,541,767) 756,408 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.394,412 Change in net position in governmental activities 38,893,893$ See accompanying notes.Marana Regular Town Council Meeting February 7, 2023 Page 63 of 339 PROPRIETARY FUNDS FINANCIAL STATEMENTS Marana Regular Town Council Meeting February 7, 2023 Page 64 of 339 38 TOWN OF MARANA, ARIZONA STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2022 Business-type Activities Governmental Activities Water Wastewater Airport Total Enterprise Funds Internal Service Funds ASSETS Current assets: Cash and cash equivalents 15,906,533$ 8,219,320$ 100$ 24,125,953$ 2,910,204$ Accounts receivable 1,225,978 307,233 77,174 1,610,385 - Lease receivable - - 4,777,097 4,777,097 - Due from governments 184,940 - 360,070 545,010 - Prepaid items 1,071 - 150 1,221 - Total current assets 17,318,522 8,526,553 5,214,591 31,059,666 2,910,204 Noncurrent assets: Restricted cash 413,737 404,534 - 818,271 - Capital assets not being depreciated/amortized 6,938,773 3,045,452 1,672,825 11,657,050 - Capital assets being depreciated/amortized, net 55,770,319 63,706,101 16,325,725 135,802,145 - Total noncurrent assets 63,122,829 67,156,087 17,998,550 148,277,466 - Total assets 80,441,351 75,682,640 23,213,141 179,337,132 2,910,204 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions 433,532 94,875 55,732 584,139 - Total deferred outflows of resources 433,532 94,875 55,732 584,139 - LIABILITIES Current liabilities: Accounts payable 471,034 121,441 244,392 836,867 263,676 Retainage payable - - 8,835 8,835 - Accrued payroll and employee benefits 94,240 19,274 9,525 123,039 - Claims payable - 280,354 Compensated absences 82,333 27,079 12,394 121,806 - Due to other funds - 250,000 102,436 352,436 - Deposits held for others 1,049,858 - - 1,049,858 - Due to other governments 221,660 - - 221,660 - Water agreement payable 202,035 - - 202,035 - Bonds payable - current 197,000 - - 197,000 - Loan payable - current 913,510 39,401 952,911 - Interest payable 199,435 414,263 - 613,698 - Total current liabilities 3,431,105 871,458 377,582 4,680,145 544,030 Noncurrent liabilities: Advances - 4,868,289 - 4,868,289 - Compensated absences 9,148 3,009 1,377 13,534 - Water agreement payable 606,105 - - 606,105 - Bonds payable - 20,071,806 - 20,071,806 - Loan payable 14,986,723 790,026 - 15,776,749 - Net pension liability 1,368,106 176,709 175,277 1,720,092 - Total non-current liabilities 16,970,082 25,909,839 176,654 43,056,575 - Total liabilities 20,401,187 26,781,297 554,236 47,736,720 544,030 DEFERRED INFLOWS OF RESOURCES Resources related to pensions 607,419 138,359 69,803 815,581 - Resources related to leases - - 4,705,078 4,705,078 - Total deferred inflows of resources 607,419 138,359 4,774,881 5,520,659 - NET POSITION Net investment in capital assets 46,611,859 45,850,320 17,989,715 110,451,894 - Restricted for debt service 413,737 404,534 - 818,271 - Unrestricted 12,840,681 2,603,005 (49,959) 15,393,727 2,366,174 Total net position 59,866,277$ 48,857,859$ 17,939,756$ 126,663,892$ 2,366,174$ See accompanying notes.Marana Regular Town Council Meeting February 7, 2023 Page 65 of 339 39 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS Year Ended June 30, 2022 Business-type Activities Governmental Activities Water Wastewater Airport Total Enterprise Funds Internal Service Funds Operating revenues: Licenses, fees & permits 246,318$ 172,386$ -$ 418,704$ -$ Charges for services 7,775,726 2,666,731 290,100 10,732,557 4,933,037 Miscellaneous 116,499 244,700 8,655 369,854 - Total operating revenues 8,138,543 3,083,817 298,755 11,521,115 4,933,037 Operating expenses: Personnel costs 2,306,109 596,580 244,255 3,146,944 - Contractual services 1,398,765 553,134 306,922 2,258,821 1,013,778 Commodities 2,533,632 695,304 35,186 3,264,122 - Other 1,423,362 147,815 60,611 1,631,788 3,524,847 Depreciation expense 1,688,156 2,302,325 1,153,810 5,144,291 - Total operating expenses 9,350,024 4,295,158 1,800,784 15,445,966 4,538,625 Operating income (loss)(1,211,481) (1,211,341) (1,502,029) (3,924,851) 394,412 Nonoperating revenues (expenses): Contributions 184,940 - 186,622 371,562 - Investment income 8,899 13 146,337 155,249 - Interest expense (160,935) (808,838) - (969,773) - Gain (loss) on disposal of capital assets (240,670) - (1,709) (242,379) - Total nonoperating revenues (expenses)(207,766) (808,825) 331,250 (685,341) - Net income (loss) before contributions and transfers (1,419,247) (2,020,166) (1,170,779) (4,610,192) 394,412 Development fees 6,778,108 2,856,699 - 9,634,807 - Capital contributions 3,908,153 2,717,328 413,810 7,039,291 - Transfers in 1,055,852 404,527 387,965 1,848,344 - Transfers out (1,310,109) (905,581) - (2,215,690) - Changes in net position 9,012,757 3,052,807 (369,004) 11,696,560 394,412 Net position, beginning of year 50,853,520 45,805,052 18,308,760 114,967,332 1,971,762 Net position, end of year 59,866,277$ 48,857,859$ 17,939,756$ 126,663,892$ 2,366,174$ See accompanying notes.Marana Regular Town Council Meeting February 7, 2023 Page 66 of 339 40 TOWN OF MARANA, ARIZONA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Year Ended June 30, 2022 Business-type Activities Governmental Activities Water Wastewater Airport Total Enterprise Funds Internal Service Funds Cash flows from operating activities: Received from customers 8,158,069$ 2,955,970$ 215,133$ 11,329,172$ 4,933,037$ Payments to suppliers for goods and services (4,867,153) (1,324,958) (168,132) (6,360,243) (4,557,709) Payments to employees for services (2,354,704) (605,398) (246,400) (3,206,502) - Other receipts/payments 116,499 244,700 8,655 369,854 - Net cash provided by (used for) operating activities 1,052,711 1,270,314 (190,744) 2,132,281 375,328 Cash flows from non-capital activities: Interfund borrowing - (248,204) (306,229) (554,433) - Contributions 184,940 - 186,622 371,562 - Transfers in 1,055,852 404,527 387,965 1,848,344 - Transfers out (1,310,109) (905,581) - (2,215,690) - Net cash provided by (used for) non-capital activities (69,317) (749,258) 268,358 (550,217) - Cash flows from capital activities and related financing activities: Capital grants received - - 106,899 106,899 - Development fees received 6,778,108 2,856,699 - 9,634,807 - Loan proceeds 797,923 - 797,923 - Principal payments (1,083,612) (276,823) - (1,360,435) - Interest paid on debt (135,927) (827,953) - (963,880) - Proceeds from sale of capital assets 15,527 - 9,787 25,314 - Acquisition and construction of capital assets (1,750,014) (632,628) (430,637) (2,813,279) - Net cash provided by (used for) capital activities 4,622,005 1,119,295 (313,951) 5,427,349 - Cash flows from investing activities: Interest on investments 8,899 13 146,337 155,249 - Net cash provided by investing activities 8,899 13 146,337 155,249 - Net increase (decrease) in cash and cash equivalents 5,614,298 1,640,364 (90,000) 7,164,662 375,328 Cash and cash equivalents, beginning of year 10,705,972 6,983,490 90,100 17,779,562 2,534,876 Cash and cash equivalents, end of year 16,320,270$ 8,623,854$ 100$ 24,944,224$ 2,910,204$ Reconciliation of operating income (loss) to net cash provided by (used for) operating activities: Operating income (loss)(1,211,481)$ (1,211,341)$ (1,502,029)$ (3,924,851)$ 394,412$ See accompanying notes.Marana Regular Town Council Meeting February 7, 2023 Page 67 of 339 41 Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation 1,688,156 2,302,325 1,153,810 5,144,291 - Changes in assets and liabilities: (Increase) decrease in accounts receivable 97,331 116,853 (2,948) 211,236 - (Increase) decrease in leases receivable - (4,777,097) (4,777,097) - (Increase) decrease in prepaid items 48,461 - (150) 48,311 - (Increase) in deferred outflows of resources related to pensions (9,186) (4,033) (3,846) (17,065) - Increase (decrease) in accounts payable (353,579) 71,295 234,737 (47,547) (13,076) Increase (decrease) in claims payable - - - (6,008) Increase (decrease) in accrued payroll payable 16,612 826 591 18,029 - Increase (decrease) in compensated absences (10,943) 4,657 6,290 4 Increase (decrease) in water agreement payable 808,140 - - 808,140 Increase (decrease) in deposits held for others 38,694 - - 38,694 - Increase (decrease) in due to other governments (14,416) - - (14,416) - Increase (decrease) in net pension liability (652,497) (148,627) (74,983) (876,107) - Increase (decrease) in deferred inflows of resources related to pensions 607,419 138,359 69,803 815,581 - Increase (decrease) in deferred inflows of resources related to leases - 4,705,078 4,705,078 - Net cash provided (used) by operating activities 1,052,711$ 1,270,314$ (190,744)$ 2,132,281$ 375,328$ Noncash investing, capital and financing Capital contributions 3,908,153 2,717,328 - 6,625,481 - Amortization of bond premium - 19,689 - -- Loss on disposal of capital assets 256,197 - 11,496 267,693 - Reconciliation of cash and cash equivalents to the statement of net position: Cash and cash equivalents 15,906,533$ 8,219,320$ 100$ 24,125,953$ 2,910,204$ Restricted cash 413,737 404,534 - 818,271$ - Total cash and cash equivalents 16,320,270$ 8,623,854$ 100$ 24,944,224$ 2,910,204$ See accompanying notes.Marana Regular Town Council Meeting February 7, 2023 Page 68 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 69 of 339 NOTES TO FINANCIAL STATEMENTS Marana Regular Town Council Meeting February 7, 2023 Page 70 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 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. 44Marana Regular Town Council Meeting February 7, 2023 Page 71 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The statement of activities demonstrates the degree to which the direct expenses of a given function of the Town’s governmental activities or segment of its business-type activities are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The Town does not currently have an indirect cost allocation system. However, the General Fund does allocate administrative charges to the Enterprise funds to support general services used by those funds (like purchasing, accounting, administration, etc.). These fees are included in the expense column on the Statement of Activities. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes, investment income, and other items not included among program revenues are reported instead as general revenues. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Water Utility, Wastewater Utility, and Airport funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Generally, the effect of interfund activity has been eliminated from the government-wide financial statements to minimize the double counting of internal activities. However, charges for interfund services provided and used are not eliminated if doing so would distort the direct costs and program revenues reported by the departments concerned. Fund Financial Statements Fund statements provide information about the Town’s funds, including blended component units. Separate statements are presented for the governmental and proprietary fund categories. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as non-major funds. The Town reports the following major governmental funds: General Fund – This fund is the general operating fund of the Town. It is used to account for all financial resources, except those required to be accounted for in another fund. Highway User Revenue Fund – This fund accounts for excise fuel taxes which are distributed to cities and towns based on a formula. A constitutional restriction requires that these funds be used solely for street and highway purposes. Tangerine Farms Improvement District Debt Service Fund – This fund accounts for the accumulation of resources and payment of principal and interest on the Tangerine Farms Road Improvement District Special Assessment Bonds. 45Marana Regular Town Council Meeting February 7, 2023 Page 72 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Transportation Fund – This fund accounts for the financing and construction of transportation capacity improvement projects. The Town reports the following major proprietary funds: Water Fund – This fund is used to account for the financing and operation of the Water Utility. Wastewater Fund – This fund is used to account for the financing and operation of the Wastewater Utility. Airport Fund – This fund is used to account for the financing and operation of the Marana Airport. Additionally, the Town reports the following fund types: Internal service fund – This fund is used to account for the operating revenues and charges for health and dental benefits. C.Measurement Focus and Basis of Accounting The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned, including unbilled water services which are accrued, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon all eligibility requirements imposed by the grantor or provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Debt service resources are provided during the current year for payment of long-term debt principal and interest due early in the following year. Compensated absences are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuances of general long- term debt and acquisitions under capital lease agreements are reported as other financing sources. Sales taxes, licenses and permits, charges for services, and investment income associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Grants and similar awards are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. Miscellaneous revenue is not susceptible to accrual because generally they are not measurable until received in cash. 46Marana Regular Town Council Meeting February 7, 2023 Page 73 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Measurement Focus and Basis of Accounting (Continued) Property taxes are levied by community facility districts, which are component units of the Town and collected by the Pima County Treasurer and special assessment property taxes are levied and collected by the Town. All property taxes are levied no later than the third Monday in August and are payable in two installments due October 1 of the current year and March 1 of the subsequent year. Taxes become delinquent after the first business day of November and May, respectively. Interest attaches on installments after the delinquent date. Pursuant to ARS, a lien against assessed real and personal property attaches on the first day of January preceding assessment and levy; however according to case law, an enforceable legal claim to the asset does not arise. Tangerine Farms Road Improvement District (a component unit) issued special assessment bonds for infrastructure improvements. These bonds will be paid through assessments made to the property owners within the Tangerine Farms Road Improvement District. The Town is responsible for the collection of the assessments and the disbursement of funds to retire the bonds. If a delinquency on an assessment occurs, the Town is required to cover the delinquency with other resources until foreclosure proceeds are received. D.Cash and Cash Equivalents For the purposes of the statement of cash flows, the Town considers all highly liquid investments (including the funds' participation in the investment pool account, and appropriate restricted assets) to be cash equivalents. Individual fund investments with a maturity of three months or less when purchased are considered as cash equivalents. E.Investments Arizona Revised Statutes authorize the Town to invest public monies in the State Treasurer’s Local Government Investment Pool, interest-bearing savings accounts, certificates of deposit, and repurchase agreements in eligible depositories; bonds or other obligations of the U.S. government that are guaranteed as to principal and interest by the U.S. government; and bonds of the State of Arizona counties, cities, towns, school districts, and special districts as specified by statue. The State Board of Investment provides oversight for the State Treasurer’s pools. The fair value of a participant’s position in the pool approximates the value of that participant’s pool shares Nonparticipating interest-earning investment contracts are stated at cost. Money market investments and participating interest contracts with a remaining maturity of one year or less at time of purchase are stated at amortized cost. All investments are stated at fair value. 47Marana Regular Town Council Meeting February 7, 2023 Page 74 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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, 2022 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. 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. 48Marana Regular Town Council Meeting February 7, 2023 Page 75 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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/amortization 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/amortization is provided over the estimated useful lives of such assets using the straight-line method. These estimated useful lives are as follows: Years Buildings 15-40 Building improvements 10-15 Pump stations, distribution systems, equipment and improvements 20-75 Public domain infrastructure 20-50 Machinery, equipment, and assets under capital lease 5-10 Intangible right-to-use lease assets are amortized over the shorter of the lease term or the useful life of the underlying asset. 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. 49Marana Regular Town Council Meeting February 7, 2023 Page 76 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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.Leases Lessee: As lessee, the Town recognizes lease liabilities with an initial, individual value of $100,000 or more. The Town uses its estimated incremental borrowing rate to measure lease liabilities unless it can readily determine the interest rate implicit in the lease. The Town’s estimated incremental borrowing rate is based on the average interest rate of other financing instruments with similar terms and risks as those currently entered into by the Town. Lessor: As lessor, the Town recognizes lease receivables with an initial, individual value of $100,000 or more. If there is no stated rate in the lease contract (or if the stated rate is not the rate the Town charges the lessee) and the implicit rate cannot be determined, the Town uses its own estimated incremental borrowing rate as the discount rate to measure lease receivables. The Town’s estimated incremental borrowing rate is calculated as described above. At the commencement of the lease, the Town initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. O.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. 50Marana Regular Town Council Meeting February 7, 2023 Page 77 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) P.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. Q.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. R.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 assets 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 assets or fund balance that applies to future periods and will be recognized as revenue in future periods. S.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. T.Change in Accounting Principle For the year ended June 30, 2022, the Town implemented the provisions of GASB Statement No. 87, Leases, as amended, which establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. As a result, the Town’s financial statements have been modified to reflect the recognition of certain lease assets for leases that were previously classified as rental income and recognized as inflows of resources based on the contract payment provisions. 51Marana Regular Town Council Meeting February 7, 2023 Page 78 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 2 – FUND BALANCE CLASSIFICATIONS In the fund financial statements, fund balance is reported in classifications that comprise a hierarchy based on the extent to which the Town is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The classifications of fund balance are Nonspendable, Restricted, Committed, Assigned, and Unassigned. Nonspendable and Restricted fund balances represent the restricted classifications and Committed, Assigned, and Unassigned represent the unrestricted classifications. Committed fund balance can be used only for specific purposes determined by formal action of Town Council. Town Council is the highest level of decision-making authority for the town. Commitments may be established, modified, or rescinded only through resolutions approved by Town Council. Nonspendable Fund Balance consists of funds that are not in a spendable form, such as inventories and prepaids, or can be legally or contractually required to be maintained intact. Restricted Fund Balance consists of funds that are externally imposed by creditors, grantors, contributors, law or regulations of other governments, or by law imposed through constitutional provisions or enabling legislation. Committed Fund Balance consists of funds that can only be used for specific purposes pursuant to constraints imposed by formal action of the Town’s highest level of decision-making authority. Assigned Fund Balance consists of funds constrained by the Town’s intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance. This classification of fund balance must be designated by the Town’s highest level of decision making authority or a Town official that has been delegated the authority to assign funds. Unassigned Fund Balance consists of the residual classification for the general fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the general fund. The General Fund is the only fund that can report a positive unassigned fund balance and any other governmental fund can report a negative fund balance. When both restricted and unrestricted resources are available for specific expenditures, restricted resources are considered spent before unrestricted resources. 52Marana Regular Town Council Meeting February 7, 2023 Page 79 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 2 – FUND BALANCE CLASSIFICATIONS (Continued) As of June 30, 2022, the fund balance details by classification are listed below: General Fund Highway User Revenue Tangerine Farms Road Improvement District Debt Service Transportation Non-Major Governmental Funds Fund Balances: Nonspendable: Inventories 84,137$ -$ -$-$-$ Prepaid expenditures 284,285 -- -5,585 Long-term advance 2,568,289 -- -- Restricted: Debt service - - 367,265 - 6,874,420 Public Safety - - - - 1,217,394 Capital projects - - - 332,487 29,608,355 Streets and highways - 4,916,046 - - - Courts --- - 688,480 Affordable housing --- - 92,666 Tourism promotion --- - 3,472,342 Committed: Capital projects - - - 19,174,067 1,628,523 Unassigned:95,638,111 - - - (632,010) Total fund balances: 98,574,822$ 4,916,046$ 367,265$ 19,506,554$ 42,955,755$ 53Marana Regular Town Council Meeting February 7, 2023 Page 80 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 3 - BUDGETARY CONTROL Excess Expenditures Over Budget – At June 30, 2022, 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, 2022. 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. 54Marana Regular Town Council Meeting February 7, 2023 Page 81 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 4 - CASH AND INVESTMENTS A.R.S and the Town’s investment policy authorize investments in the State Treasurer’s local government investment pools, the County Treasurer’s investment pool, interest-bearing savings accounts, certificates of deposit, and repurchase agreements in eligible depositories; 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, 2022, the carrying amount of the Town’s deposits was $12,048,749 and the bank balance was $58,830,903. 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, $2,092,058 was covered by Federal depository insurance and $57,973,679 was covered by collateral held by the pledging financial institution’s trust department but not in the Town’s name; no portion of the balance was uninsured and uncollateralized. The Town had $4,375 in petty cash funds, change drawers and other related items at year end. Additionally, the Town had deposits of $706,761 held by Pima County in a fiduciary capacity. At June 30, 2022, the Town’s investments, categorized within the fair value hierarchy established by generally accepted accounting principles, were as follows: Investment by fair value level Amount Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Federal Home Loan Mortgage Corp 4,581,185$ $ -$ 4,581,185 -$ Federal National Mortgage Assoc 1,983,729 - 1,983,729 - Federal Home Loan Banks 2,429,812 - 2,429,812 - U.S. Treasuries 38,404,007 38,404,007 - - Corporate Bonds 68,936,466 68,936,466 - - Total investments by fair value level 116,335,199 $ 107,340,473 $ 8,994,726 -$ External investment pools measured at fair value State Treasurer’s investment pool 5 29,041,765 State Treasurer’s investment pool 7 1,947,200 Total investments measured at fair value 30,988,965 Investments measured at amortized costs Money market investments 18,443,224 Total investments 165,767,388$ Fair value measurement using 55Marana Regular Town Council Meeting February 7, 2023 Page 82 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 4 - CASH AND INVESTMENTS (Continued) Investments categorized as Level 1 are valued using prices quoted in active markets for those investments. Investments categorized as Level 2 are valued using market-corroborated inputs by evaluating issues with its best-known market maker. Investments in the State Treasurer’s investment pools are valued at the pool’s share price multiplied by the number of shares the Town held. The fair value of a participant’s position in the pools approximates the value of that participant’s pool shares. The State Board of Investment provides oversight for the State Treasurer’s investment pools. Interest Rate Risk. Statutes require that public monies invested in securities and deposits have a maximum maturity of 5 years. The maximum maturity for investments in repurchase agreements is 180 days. In order to limit interest and market rate risk, the Town’s investment policy sets a maximum maturity on any investment of 3 years. The weighted average maturity (WAM) at June 30, 2022 for Town investments was 305 days. The State Treasurer’s investment policy sets a maximum WAM for pools 5 and 7 not to exceed 90 days. Credit Risk. As of June 30, 2022, 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, 2022 was $1.00. Pool 5 has continued to maintain the highest credit rating of AAA f/S1+ by Standard & Poor’s. Pool 7 invests in securities backed by the U.S. Government and has an AAA weighted average rating. The Town’s investments in U.S. Agencies were rated AA+ by Standard & Poor’s. The Arizona State Treasurer has a publicly available financial report that includes financial statements and required supplementary information. Copies may be obtained by contacting the Arizona State Treasurer, 1700 West Washington, Phoenix, AZ 85007 or at www.aztreasury.gov. Custodial Credit Risk. To control custodial credit risk, State law and the Town’s investment policy requires all securities and collateral to be held by an independent third party custodian in the Town’s name. The custodian provides the Town with monthly safekeeping statements. The Town’s investment in the State Treasurer’s investment pool represents a proportionate interest in the pool’s portfolio; however, the Town’s portion is not identified with specific investments and is not subject to custodial credit risk. Concentration of Credit Risk. The Town places no limit on the amount it may invest in any one issuer. More than 23% of the Town’s investments are in U.S. Agencies. These investments are 54% of the Town’s total investments. 56Marana Regular Town Council Meeting February 7, 2023 Page 83 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 4 - CASH AND INVESTMENTS (Continued) At June 30, 2022, the Town had the following investment in debt securities: Investment Type Amount Less than 1 Year 1-5 Years Money market investments 18,443,224$ 18,443,224$ -$ State Treasurer’s Investment Pool 5 29,041,765 29,041,765 - State Treasurer’s Investment Pool 7 1,947,200 1,947,200 - Federal Home Loan Mortgage Corp 4,581,185 - 4,581,185 Federal National Mortgage Assoc 1,983,729 1,004,307 979,422 Federal Home Loan Banks 2,429,812 - 2,429,812 U.S. Treasuries 38,404,007 26,588,769 11,815,238 Corporate Bonds 68,936,466 - 68,936,466 Total investments 165,767,388$ 77,025,265$ 88,742,123$ Investment Maturities NOTE 5 - CAPITAL ASSETS The following is a summary of the changes in capital assets for fiscal year ended June 30, 2022: Governmental Activities Beginning Balance, restated Additions Deletions Ending Balance Capital assets, not being depreciated/amortized: Land 9,478,747$ 62,401$ -$ 9,541,148$ Construction in progress 6,153,645 3,133,659 2,496,860 6,790,444 Total capital assets, not being depreciated/amortized 15,632,392 3,196,060 2,496,860 16,331,592 Capital assets, being depreciated/amortized: Right of use lease assets - land 368,153 - - 368,153 Buildings and improvements 65,945,662 - - 65,945,662 Machinery, equipment, and other assets 26,199,233 1,222,126 793,825 26,627,534 Infrastructure 455,182,556 7,447,305 - 462,629,861 Total capital assets being depreciated 547,695,604 8,669,431 793,825 555,571,210 Less accumulated depreciation/amortization for: Right of use lease assets - land - (15,666) - (15,666) Buildings and improvements (23,957,409) (1,933,738) - (25,891,147) Machinery, equipment, and other assets (17,598,002) (1,753,957) (769,591) (18,582,368) Infrastructure (219,917,501) (18,414,432) - (238,331,933) Total accumulated depreciation/amortization (261,472,912) (22,117,793) (769,591) (282,821,114) Total capital assets, being depreciated/amortized, net 286,222,692 (13,448,362) 24,234 272,750,096 Governmental activities capital assets, net 301,855,084$ (10,252,302)$ 2,521,094$ 289,081,688$ The beginning balances for the right-to-use lease assets – land have been restated due to implementation of GASB 87. 57Marana Regular Town Council Meeting February 7, 2023 Page 84 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 5 - CAPITAL ASSETS (Continued) Governmental activities depreciation expense was charged to function/programs as follows: Governmental Activities General government 928,624$ Public safety 1,043,807 Highways and streets 17,991,667 Economic and community development 151,787 Health and welfare 28,800 Culture and recreation 1,973,108 Total depreciation expense - governmental actvities 22,117,793$ A summary of changes in capital assets for business-type activities is as follows: Business-type Activities Beginning Balance Additions Deletions Ending Balance Capital assets, not being depreciated/amortized: Land 4,167,618$ 10,500$ 8,000$ 4,170,118$ Water rights 4,262,697 127,983 79,398 4,311,282 Construction in progress 19,290,665 2,215,723 18,330,738 3,175,650 Total capital assets, not being depreciated/amortized 27,720,980 2,354,206 18,418,136 11,657,050 Capital assets, being depreciated/amortized: Buildings, improvements and infrastructure 153,410,834 24,550,823 294,345 177,667,312 Machinery, equipment, and other assets 3,920,889 179,565 77,701 4,022,753 Total capital assets being depreciated/amortized 157,331,723 24,730,388 372,046 181,690,065 Less accumulated depreciation/amortization for: Buildings, improvements and infrastructure (39,155,688) (4,695,434) (117,549) (43,733,573) Machinery, equipment, and other assets (1,779,694) (448,857) (74,204) (2,154,347) Total accumulated depreciation/amortization (40,935,382) (5,144,291) (191,753) (45,887,920) Total capital assets, being depreciated/amortized, net 116,396,341 19,586,097 180,293 135,802,145 Business-type activities capital assets, net 144,117,321$ 21,940,303$ 18,598,429$ 147,459,195$ Business-type depreciation expense was charged to functions/programs as follows: Business-type Activities Airport 1,153,810$ Water 1,688,156 Wastewater 2,302,325 Total depreciation expense - business-type actvities 5,144,291$ 58Marana Regular Town Council Meeting February 7, 2023 Page 85 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 6 – LEASES In accordance with the provisions of GASB No. 87, each lease was retroactively measured as of July 1, 2021 at an interest rate of 3.0%, the Town’s incremental borrowing rate used for lease measurements. Lessee Effective January 1, 2015, the Town renewed a lease for land. Based on this agreement the Town will make variable monthly payments through fiscal year 2025. The Town has acquired land as a right-to-use asset by under the provisions of a lease agreement. There is no purchase option included in the agreement for the land. The total amount of the lease asset and the related accumulated amortization is as follows: Total Intangible right-to-use lease asset 368,153$ Less: accumulated amortization (15,666) Carrying value 352,487$ The following schedule details minimum lease payments to maturity for the Town’s leases payable at June 30, 2022: Fiscal Year Principal Interest Total 2023 5,660$ 10,818$ 16,478$ 2024 6,333 10,639 16,972 2025 7,042 10,440 17,482 2026 7,788 10,218 18,006 2027 8,572 9,974 18,546 2028-2032 56,101 45,319 101,420 2033-2037 82,541 35,034 117,575 2038-2042 116,023 20,281 136,304 2043-2047 73,073 2,899 75,972 363,133$ 155,622$ 518,755$ Governmental Activities Lessor The Town has entered into various lease agreements as the Lessor. From time to time the Town’s lease contracts include variable lease payments, including residual value guarantees, that are not included in the lease receivable because they are not fixed in substance. The Town recognized an insignificant amount of revenue related to these variable lease payments and they have not been further disclosed or included in the measurement of the Town's lease receivables. 59Marana Regular Town Council Meeting February 7, 2023 Page 86 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 6 – LEASES (Continued) As of June 30, 2022, the Town is reporting the following lease receivables, deferred inflows related to leases, lease revenue, and interest revenue: Governmental Activities Lease Lease Receivable Deferred Inflows Related to Leases Lease Revenue Lease Interest Revenue Communication Tower Land Leases $ 2,989,439 $ 2,901,561 $ 144,894 $ 90,626 Building Lease 148,616 144,260 6,412 4,493 Totals $ 3,138,055 $ 3,045,821 $ 151,306 $ 95,119 Business-type Activities Lease Lease Receivable Deferred Inflows Related to Leases Lease Revenue Lease Interest Revenue Airport Land Leases $ 4,777,097 $ 4,705,078 $ 193,801 $ 146,336 The Town’s leases are summarized as follows: Communication Tower Land Leases – The Town has entered into multiple land leases for communication towers. Based on these agreement the Town will be receiving variable monthly and/or annual payments through fiscal year 2048. Building Lease – The Town has entered into a building lease leases for a communication tower. Based on the agreement the Town will be receiving variable monthly payments through fiscal year 2045. Other 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. This lease does not meet the definition of a lease under GASB 87 as the lease does not provide the Town with exclusive rights to the property. 60Marana Regular Town Council Meeting February 7, 2023 Page 87 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 6 – LEASES (Continued) 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 $1,000,000 in resort sales tax to the Town from the development project known as "Dove Mountain". This threshold was reached on June 30, 2011, and therefore the developer ceased reimbursing the Town for the annual rent payment. These leases provide for payments of minimum annual rentals as follows, excluding real estate taxes, common area charges, management fees, and sales taxes: Years Ending June 30, 2023 632,491$ 2024 632,491 2025 632,491 2026 695,740 2027 695,740 2028 - 2032 3,617,848 2033 - 2037 3,979,632 2038 - 2042 4,377,595 2043 - 2047 4,815,356 2048 - 2052 5,296,891 2053 - 2057 5,826,580 2058 - 2062 6,409,240 2063 - 2067 7,050,165 2068 - 2072 7,755,181 2073 - 2077 8,530,699 2078 - 2082 9,383,769 2083 - 2087 10,322,146 2088 - 2092 11,354,361 2093 - 2097 12,489,796 2098 - 2099 5,284,144 Total 109,782,356$ Minimum annual rentals above excludes annual rental under the remaining renewal options as of June 30, 2022. Rent expense under the above leases for fiscal 2021-22 aggregated $632,491. 61Marana Regular Town Council Meeting February 7, 2023 Page 88 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 7 – 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, 2022 on the outstanding balance is 1.468 percent. During 2019, the Town obtained $15,000,000 in financing from WIFA for the design and construction of two water treatment campuses. As of year-end, the Town has drawndown the entire balance of the loan. The interest rate at June 30, 2022 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, 2022 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 $483,534 of the loan, leaving $90,966 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, 2022 $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. $ 2,256,524 $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. 13,184,119 $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. 617,430 $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. 459,590 $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. 211,997 Total $ 16,729,660 62Marana Regular Town Council Meeting February 7, 2023 Page 89 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 7 – LONG-TERM LIABILITIES (Continued) The following is a schedule by years of the debt service requirements for the loan as of June 30, 2022. Fiscal Year Principal Interest Total 2023 952,911$ 402,828$ 1,355,739$ 2024 973,940 379,818 1,353,758 2025 998,931 354,504 1,353,435 2026 1,024,569 328,533 1,353,102 2027 1,050,873 301,888 1,352,761 2028-2032 5,021,864 1,104,124 6,125,988 2033-2037 4,635,489 534,584 5,170,073 2038-2042 2,071,083 52,207 2,123,290 Totals $ 16,729,660 3,458,486$ $ 20,188,146 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. During 2022, Gladden Farms Phase II Community Facilities District (a component unit) issued $4,080,000 of Series 2021 general obligation bonds for infrastructure improvements. During 2022, Saguaro Springs Community Facilities District (a component unit) issued $2,720,000 of Series 2021 general obligation bonds for infrastructure improvements. 63Marana Regular Town Council Meeting February 7, 2023 Page 90 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 7 – LONG-TERM LIABILITIES (Continued) These bonds are payable from the property tax collected by each District. The CFD general obligation bonds outstanding as reported in governmental activities as of June 30, 2022, were as follows: Outstanding June 30, 2022 6,445,000$ 3,535,000 1,215,000 1,850,000 4,155,000 4,080,000 2,720,000 Total 24,000,000$ $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. $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. $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 $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. $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. $4,080,000 Gladden Farms CFD General Obligation Bonds, 2021 Series, due in annual installments of $110,000 to $330,000; through July 15, 2047; at a 3.0% interest rate. $2,720,000 Saguaro Springs CFD General Obligation Bonds, 2021 Series, due in annual installments of $50,000 to $460,000; through July 15, 2047; at a 3.0% interest rate. Annual debt service requirements to maturity on the CFD general obligation bonds at June 30, 2022, are summarized as follows: Fiscal Year Principal Interest Total 2023 865,000$ 812,125$ 1,677,125$ 2024 750,000 787,550 1,537,550 2025 915,000 762,225 1,677,225 2026 950,000 731,525 1,681,525 2027 985,000 696,700 1,681,700 2028-2032 5,490,000 2,903,581 8,393,581 2033-2037 5,220,000 1,878,269 7,098,269 2038-2042 5,130,000 1,081,869 6,211,869 2043-2047 3,695,000 236,931 3,931,931 Totals 24,000,000$ 9,890,775$ 33,890,775$ 64Marana Regular Town Council Meeting February 7, 2023 Page 91 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 7 – LONG-TERM LIABILITIES (Continued) B.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, 2022, were as follows: Outstanding June 30, 2022 $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%. $ 5,695,000 Annual debt service requirements to maturity on the TFRID special assessment bonds at June 30, 2022, are summarized as follows: Fiscal Year Principal Interest Total 2023 1,569,000$ 109,231$ 1,678,231$ 2024 1,350,000 80,870 1,430,870 2025 1,375,000 54,410 1,429,410 2026 1,401,000 27,460 1,428,460 Totals 5,695,000$ 271,971$ 5,966,971$ 65Marana Regular Town Council Meeting February 7, 2023 Page 92 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 7 – LONG-TERM LIABILITIES (Continued) C.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, 2022, were as follows: Governmental Business-type 23,520,000$ 17,215,000$ 15,300,000 2,565,000 Totals 38,820,000$ 19,780,000$ $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. Outstanding June 30, 2022 $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. $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. $19,865,000 Pledged Excise Tax Revenue and Revenue Refunding Obligations, 2017 Series B, due in annual installments of $840,000 to $2,580,000; through July 1, 2028; at a 2.0% to 5.0% interest rate. Annual debt service requirements to maturity on revenue bonds at June 30, 2022, are summarized as follows: Fiscal Year Principal Interest Principal Interest 2023 3,800,000$ 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 4,615,000 979,375 - 809,069 2028-2032 14,510,000 2,053,700 235,000 4,032,969 2033-2037 3,360,000 170,000 6,325,000 2,506,194 2038-2042 - - 10,800,000 1,585,328 2043 - - 2,420,000 48,400 Totals 38,820,000$ 9,255,500$ 19,780,000$ 12,218,236$ Governmental Activities Business-type Activties 66Marana Regular Town Council Meeting February 7, 2023 Page 93 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 7 – LONG-TERM LIABILITIES (Continued) D.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, 2022 were as follows: Governmental Business-type 2,616,000$ 197,000$ Totals 2,616,000$ 197,000$ Outstanding June 30, 2022 $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 $1,343,000 Water Utility Revenue Refunding Obligations, 2014 Series, due in annual installments of $129,000 to $197,000; through July 1, 2022; at a 2.53% interest rate. Annual debt service requirements to maturity on direct placement revenue bonds at June 30, 2022, are summarized as follows: Fiscal Year Principal Interest Principal Interest 2023 735,000$ 57,337$ 197,000$ 2,492$ 2024 609,000 40,201 - - 2025 629,000 24,416 - - 2026 643,000 8,198 - - Totals 2,616,000$ 130,152$ 197,000$ 2,492$ Governmental Activities Business-type Activties E.Water Agreement Payable In September 2021, the Town entered into a repayment agreement with Central Arizona Project (CAP) whereas the Town will pay annually for the repayment of past CAP water service capital and 9(d) debt charges over a five year period through fiscal year 2027. The agreement is calculating interest at a rate of 2.5%. Annual debt service requirements to maturity on the water agreement payable at June 30, 2022, is summarized as follows: Fiscal Year Principal Interest Total 2023 202,035$ 8,384$ 210,419$ 2024 202,035 8,384 210,419 2025 202,035 8,384 210,419 2026 202,035 8,384 210,419 Total 808,140$ 33,536$ 841,676$ 67Marana Regular Town Council Meeting February 7, 2023 Page 94 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 7 – LONG-TERM LIABILITIES (Continued) 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, $61.4 million in bonds remain outstanding and $14.4 million in loans remain outstanding to be repaid by future excise tax revenues. The net revenues available for service of this debt were $75.3 million. The debt principal and interest paid on this debt during fiscal year 2022 was $7.7 million (10.2% of available net pledged revenues). 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, $2.4 million remains outstanding to be repaid by future water revenues. For the fiscal year ended June 30, 2022, the net revenues available for service of this debt were $6.3 million. The debt principal and interest paid, including fees, on this debt during fiscal year 2022 was $517,787. 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, 2022, the total legal debt limit was $186,911,137. As of June 30, 2022, the total outstanding debt applicable to the limit was zero. 68Marana Regular Town Council Meeting February 7, 2023 Page 95 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 69 NOTE 7 – LONG-TERM LIABILITIES (Continued) G. Changes in Long-term Liabilities The following is a summary of changes in long-term liability activity for fiscal year ended June 30, 2022. Beginning Balance, restated Additions Reductions Ending Balance Due Within One Year Governmental activities: General obligation bonds 17,800,000$ 6,800,000$ (600,000)$ 24,000,000$ 865,000$ Revenue bonds- Public Placements 41,970,000 - (3,150,000) 38,820,000 3,800,000 Revenue bonds- Direct Placements 3,331,000 - (715,000) 2,616,000 735,000 Compensated absences 1,446,297 1,107,005 (1,179,085) 1,374,217 1,236,796 Net pension liability 44,206,334 (11,397,399) 32,808,935 - Special assessment bonds 7,529,000 (1,834,000) 5,695,000 1,569,000 Bond premium 4,766,981 697,524 (491,219) 4,973,286 - Leases payable 368,153 - (5,020) 363,133 5,660 Total 121,417,765$ 8,604,529$ (19,371,723)$ 110,650,571$ 8,211,456$ Business-type activities: Loan payable 16,776,531$ 888,065$ (934,936)$ 16,729,660$ 952,911$ Net pension liability 2,596,199 (876,107) 1,720,092 - Revenue bonds - Public Placement 19,780,000 - - 19,780,000 - Revenue bonds - Direct Placement 390,000 -(193,000)197,000 197,000 Compensated absences 135,335 94,330 (94,325)135,340 121,806 Bond premium 311,494 - (19,688) 291,806 - Water agreement payable - 1,018,559 (210,419) 808,140 202,035 Total 39,989,559$ 2,000,954$ (2,328,475)$ 39,662,038$ 1,473,752$ The beginning balances for the leases payable have been restated due to implementation of GASB 87. NOTE 8 – 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: Unavailable Unearned Program revenues (General Fund) -$ 660,438$ Intergovernmental (Non-Major Governmental Funds)79,357 13,229 Special assessments (Tangerine Farms Improvement District Debt Service Fund)5,591,342 - Total deferred amounts for governmental funds 5,670,699$ 673,667$ Deferred revenue Marana Regular Town Council Meeting February 7, 2023 Page 96 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 9 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS Due to/from other funds: At June 30, 2022, 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 2021- 2022, these interfund borrowing will be eliminated as sufficient resources become available. A portion of the amount due from the Wastewater Fund, $2,300,000 to the Transportation Fund and $2,568,289 to the General Fund, is considered long term. Listed below is a summary of the interfund borrowing transactions. Due From Due To Non-Major Governmental Funds Wastewater Fund Airport Fund Total General Fund $ 595,009 0 $ 2,768,289 $ 102,436 0 $ 3,465,734 Transportation Fund -2,350,000 -2,350,000 Total $ 595,009 $ 5,118,289 $ 102,436 $ 5,815,734 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. Listed below is a summary of transfers between funds. Transfer Out General Fund $ -$-$ 11,708 $ -$ -$ 11,708 Tangerine Farms Improvement District Debt Service - - 25,616 - - 25,616 Non-Major Governmental 2,650,044 858,375 1,220,625 905,582 905,581 6,540,207 Water Fund 1,055,852 - - - - 1,055,852 Wastewater Fund - - - 404,527 -404,527 Airport Fund 387,965 - - - 387,965 Total $ 4,093,861 $ 858,375 $ 1,257,949 $ 1,310,109 $ 905,581 $ 8,425,875 TotalWater Fund Wastewater Fund Transfers In Governmental Funds Enterprise Funds General Fund Transportation Non-Major Governmental Funds 70Marana Regular Town Council Meeting February 7, 2023 Page 97 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS All full-time and permanent part-time employees participate in one of four different retirement plans. With the exception of public safety personnel, police dispatchers and elected officials, all other employees participate in the Arizona State Retirement System (ASRS). Certified public safety personnel participate in the Public Safety Retirement Systems (PSPRS). Police dispatch and communication staff participate in the Corrections Officer Retirement Plan (CORP). The Town’s Mayor and Council Members participate in the Elected Officials’ Retirement Plan (EORP). At June 30, 2022, 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 Activites Total Net pension liabilities 32,808,935 1,720,092 34,529,027$ Deferred outflows of resources 9,119,870 584,139 9,704,009 Deferred inflows of resources 9,296,687 815,581 10,112,268 Pension expense 3,541,767 204,900 3,746,667 The Town reported $4,275,641 of pension contributions as expenditures in the governmental funds related to all pension plans to which it contributes. 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. 71Marana Regular Town Council Meeting February 7, 2023 Page 98 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Continued) 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: Retirement Initial membership date: ASRS Before July 1, 2011 On or after July 1, 2011 Sum of years and age equals 80 30 years age 55 10 years age 62 25 years age 60 5 years age 50*10 years age 62 any years age 65 5 years age 50* any years age 65 *with actuarially reduced benefits. Benefit percent per year of service 2.1% to 2.3%2.1% to 2.3% Years of service and age required to receive benefit Highest 36 consecutive months of last 120 months Final average salary is based on Highest 60 consecutive months of last 120 months 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, 2022, statute required active ASRS members to contribute at the actuarially determined rate of 12.41 percent (12.22 percent for retirement and 0.19 percent for long-term disability) of the members’ annual covered payroll, and statute required the Town to contribute at the actuarially determined rate of 12.41 percent (12.01 percent for retirement, 0.21 percent for health insurance premium benefit, and 0.19 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 10.22 percent (10.13 percent for retirement and 0.09 percent for long-term disability) of annual covered payroll of retired members who worked for the Town in positions that would typically be filled by an employee who contributes to the ASRS. The Town’s contributions to the pension plan for the year ended June 30, 2022, were $1,992,666. During fiscal year 2022, the Town paid for ASRS pension contributions as follows: 86% percent from the General Fund and 14% from enterprise funds. 72Marana Regular Town Council Meeting February 7, 2023 Page 99 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Continued) Pension liability—At June 30, 2022, the Town reported a liability of $18,165,436 for its proportionate share of the ASRS’ net pension liability. The net pension liability was measured as of June 30, 2021. 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, 2020, to the measurement date of June 30, 2021. The total liabilities as of June 30, 2021, reflect changes in actuarial assumptions based on the results of an actuarial experience study for the 5-year period ended June 30, 2020, including decreasing the discount rate from 7.5 percent to 7.0 percent and changing the projected salary increases from 2.7–7.2 percent to 2.9–8.4 percent. 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, 2021. The Town’s proportion measured as of June 30, 2021, was 0.13825 percent, which was a decrease of 0.00448 percent from its proportion measured as of June 30, 2020. Pension expense and deferred outflows/inflows of resources—For the year ended June 30, 2022, the Town recognized pension expense for ASRS of $1,463,575. At June 30, 2022, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of ASRS Resources Resources Differences between expected and actual experience 276,915$ -$ Changes of assumptions or other inputs 2,364,377 - Net difference between projected and actual earnings on pension plan investments - 5,755,449 Changes in proportion and differences between Town contributions and proportionate share of contributions 124,959 456,492 Town contributions subsequent to the measurement date 1,992,666 - Total 4,758,917$ 6,211,941$ The $1,992,666 reported as deferred outflows of resources related to ASRS pensions resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to ASRS pensions will be recognized in pension expense as follows: 2023 (42,537)$ 2024 (151,000) 2025 (1,268,782) 2026 (1,983,371) 2027 - Thereafter - Year ending June 30 73Marana Regular Town Council Meeting February 7, 2023 Page 100 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 74 NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Continued) Actuarial Assumptions—The significant actuarial assumptions used to measure the total pension liability are as follows: ASRS Actuarial valuation date June 30, 2020 Actuarial roll forward date June 30, 2021 Actuarial cost method Entry age normal Investment rate of return 7.0% Projected salary increases 2.9-8.4% for pensions/not applicable for OPEB Inflation 2.3% Permanent benefit increase Included for pensions /not applicable for OPEB Mortality rates 2017 SRA Scale U-MP for pensions Recovery rates 2012 GLDT for long-term disability 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, 2020. The long-term expected rate of return on ASRS pension plan investments was determined to be 7.0 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: Target Long-term expected Asset Class Allocation arithmetic real rate of return Equity 50%4.90% Fixed income - credit 20%5.20% Fixed income - interest rate sensitive 10%0.70% Real estate 20%5.70% Total 100% Discount Rate—At June 30, 2021, the discount rate used to measure the ASRS total pension/OPEB liability was 7.0 percent, which was a decrease of 0.5 from the discount rate used as of June 30, 2020. 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. Marana Regular Town Council Meeting February 7, 2023 Page 101 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Continued) 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 7.0 percent, as well as what the Town’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.0 percent) or 1 percentage point higher (8.0 percent) than the current rate: Current 1% Decrease Discount Rate 1% increase ASRS (6.5%)(7.5%)(8.5%) Town's proportionate share of the net pension liability 28,572,710$ 18,165,436$ 9,488,660$ 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, 2022 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. 75Marana Regular Town Council Meeting February 7, 2023 Page 102 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Continued) Benefits provided—The PSPRS and CORP provide retirement, health insurance premium supplement, disability, and survivor benefits. State statute establishes benefit terms. Retirement, disability, and survivor benefits are calculated on the basis of age, average monthly compensation, and service credit as follows: PSPRS Initial membership date: On or after January 1, 2012 Before January 1, 2012 and before July 1, 2017 Retirement and Disability Years of service 20 years of service, any age 25 years of service or 15 years and age required 15 years of service, age 62 of credited service, age 52.5 to receive benefit Final average Highest 36 months Highest 60 months salary is based on of last 20 years of last 20 years Benefit percent Normal 50% less 2.0% for each year 1.5% to 2.5% per year of credited Retirement of credited service less than 20 service, not to exceed 80% years OR plus 2.0% to 2.5% for each year of credited service over 20 years, not to exceed 80% Accidental Disability 50% or normal retirement, whichever is greater Retirement Catastrophic Disability 90% for the first 60 months then reduced to either 62.5% Retirement or normal retirement, whichever is greater Ordinary Disability Normal retirement calculated with actual years of credited service Retirement or 20 years of credited service, whichever is greater, mulitiplied by years of credited service (not to exceed 20 years) divided by 20 Survivor Benefits Retired Members 80% 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 76Marana Regular Town Council Meeting February 7, 2023 Page 103 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Continued) CORP Initial membership date: On or after January 1, 2012 Before January 1, 2012 and before July 1, 2018 Retirement and Disability Years of service 25 years of service, any age 25 years of service or 15 years and age required 10 years of service, age 62 of credited service, age 52.5 to receive benefit Final average Highest 36 months Highest 60 months salary is based on of last 10 years of last 10 years Benefit percent Normal 2.0% to 2.5% per year of credited 2.5% per year of credited Retirement service, not to exceed 80% service, not to exceed 80% Accidental Disability 50% or normal retirement if more 50% or normal retirement if more Retirement than 20 years of credited service than 25 years of credited service Total and permanent 50% or normal retirement if more than 25 years of credited service disability retirement Ordinary Disability 2.5% per year of credited service Retirement Survivor Benefits 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 $260 per month depending on the age of the member and dependents. 77Marana Regular Town Council Meeting February 7, 2023 Page 104 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Continued) Employees covered by benefit terms—At June 30, 2022, the following employees were covered by the agent pension plans’ benefit terms: PSPRS Police CORP Inactive employees or beneficiaries currently receiving benefits 36 1 Inactive employees entitled to but not yet receiving benefits 17 2 Active employees 72 6 Total 125 9 Contributions—State statutes establish the pension contribution requirements for active PSPRS and CORP employees. In accordance with state statutes, annual actuarial valuations determine employer contribution requirements for PSPRS and CORP pension and health insurance premium benefits. The combined active member and employer contribution rates are expected to finance the costs of benefits employees earn during the year, with an additional amount to finance any unfunded accrued liability. Contributions rates for the year ended June 30, 2022, are indicated below. Rates are a percentage of active members’ annual covered payroll. PSPRS Police CORP Active members - Pension 7.65% - 11.65% 7.96% Town Pension 36.71%27.33% Health insurance permium benefit 0.16%0.32% Also, the PSPRS Board of Trustees required an additional employer contribution of 21.45 percent for legacy costs of Tier 1 and 2 amortization of unfunded liabilities on Tier 3 contributions. In addition, statute required the Town to contribute at the actuarially determined rate of 21.45 percent for the PSPRS of annual covered payroll of retired members who worked for the Town in positions that an employee who contributes to the PSPRS would typically fill. The Town’s contributions to the pension plan for the year ended June 30, 2022, were: PSPRS Pension Police CORP Contributions made 2,442,651$ 66,152$ During fiscal year 2022, the Town paid for PSPRS and CORP pension contributions with 89.7% percent from the General Fund and 10.3% from non-major governmental funds. 78Marana Regular Town Council Meeting February 7, 2023 Page 105 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Continued) Pension liability—At June 30, 2022, the Town reported the following net pension liabilities: Net Pension Liability PSPRS $14,574,051 CORP Dispatchers 839,557 Total $15,413,608 The net pension liabilities were measured as of June 30, 2021, 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, 2021 Actuarial cost method Entry age normal Investment rate of return 7.3% Wage inflation 3.5% for pensions Price inflation 2.5% for pensions Cost of living adjustment 1.75% for pensions Mortality rates PubS-2010 tables Healthcare cost trend rate Not applicable Actuarial assumptions used in the June 30, 2021 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. 79Marana Regular Town Council Meeting February 7, 2023 Page 106 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Continued) The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Long-Term PSPRS and CORP Target Expected Arithmetic Asset Class Allocation Real Rate of Return U.S. public equity 24%4.08% International public equity 16%5.20% Global private equity 20%7.67% Other assets (capital appreciation)7%5.43% Core bonds 2%0.42% Private credit 20%5.74% Diversifying strategies 10%3.99% Cash - Mellon 1%-0.31% Total 100% Pension discount rates—At June 30, 2021, 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. 80Marana Regular Town Council Meeting February 7, 2023 Page 107 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Continued) Changes in the Net Pension Liability (Asset) PSPRS - Police Plan Total Fiduciary Net Pension Net Pension Liability Position Liability (a)(b)(a) - (b) Balances at June 30, 2021 43,354,440$ 23,495,820$ 19,858,620$ Adjustments to beginning of year - - - Changes for the year: Service Cost 1,124,761 - 1,124,761 Interest on the total pension liability 3,180,634 - 3,180,634 Changes of benefit terms - - - Differences between expected and actual experience in the measurement of the pension liability 128,853 - 128,853 Changes of assumptions or other inputs - - - Contributions - employer - 2,216,029 (2,216,029) Contributions - employee - 503,893 (503,893) Net investment income - 7,031,611 (7,031,611) Benefit payments, including refunds of employee contributions (1,817,754) (1,817,754) - Hall/Parker Settlement - - - Administrative expense - (32,716) 32,716 Other changes - - - Net changes 2,616,494 7,901,063 (5,284,569) Balances at June 30, 2022 45,970,934$ 31,396,883$ 14,574,051$ Increase (Decrease) 81Marana Regular Town Council Meeting February 7, 2023 Page 108 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Continued) CORP Plan Total Fiduciary Net Pension Net Pension Liability Position Liability (a)(b)(a) - (b) Balances at June 30, 2021 2,874,535$ 1,695,002$ 1,179,533$ Adjustments to beginning of year - - - Changes for the year: Service Cost 40,973 - 40,973 Interest on the total pension liability 211,853 - 211,853 Changes of benefit terms - - - Differences between expected and actual experience in the measurement of the pension liability (2,539) - (2,539) Changes of assumptions or other inputs - - - Contributions - employer - 91,440 (91,440) Contributions - employee - 29,136 (29,136) Net investment income - 471,853 (471,853) Benefit payments, including refunds of employee contributions (26,829) (26,829) - Administrative expense - (2,166) 2,166 Other changes - - - Net changes 223,458 563,434 (339,976) Balances at June 30, 2022 3,097,993$ 2,258,436$ 839,557$ Increase (Decrease) 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. Current 1% Decrease Discount Rate 1% increase PSPRS - Police (6.30%)(7.30%)(8.30%) Total pension liability 21,547,070$ 14,574,051$ 8,938,974$ CORP Total pension liability 1,233,904$ 839,557$ 509,954$ 82Marana Regular Town Council Meeting February 7, 2023 Page 109 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Continued) Pension expense/(income)—For the year ended June 30, 2022, the Town recognized the following pension expense/(income): Pension Expense/(Income) PSPRS $2,006,920 CORP Dispatchers 120,410 Pension deferred outflows/inflows of resources—At June 30, 2022, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of PSPRS - Police Resources Resources Differences between expected and actual experience 1,278,617$ 255,731$ Changes of assumptions or other inputs 878,046 - Net difference between projected and actual earnings on pension plan investments - 3,257,924 Town contributions subsequent to the measurement date 2,442,651 - Total 4,599,314$ 3,513,655$ Deferred Deferred Outflows of Inflows of CORP Resources Resources Differences between expected and actual experience 110,572$ 14,857$ Changes of assumptions or other inputs 14,011 147 Net difference between projected and actual earnings on pension plan investments - 218,310 Town contributions subsequent to the measurement date 66,152 - Total 190,735$ 233,314$ 83Marana Regular Town Council Meeting February 7, 2023 Page 110 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Continued) 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, 2023. 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 Year ending June 30,Police CORP 2023 (99,538)$ 39,737$ 2024 (335,212) (25,172) 2025 (461,039) (54,341) 2026 (678,221) (68,955) 2027 198,610 - Thereafter 18,408 - 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. 84Marana Regular Town Council Meeting February 7, 2023 Page 111 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Continued) 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: Initial membership date: Before January 1, 2012 On or after January 1, 2012 Retirement and Disability Years of service 20 years, any age 10 years, age 62 and age required 10 years, age 62 5 years, age 65 to receive benefit 5 years, age 65 any years and age if disabled 5 years, any age* any years and age if disabled Final average Highest 36 months Highest 60 months salary is based on of last 10 years of last 10 years Benefit percent Normal 4% per year of service,3% per year of service, Retirement not to exceed 80%not to exceed 75% Disability 80% with 10 or more 75% with 10 or more Retirement years of service years of service 40% with 5-10 years of service 37.5 with 5-10 years of service 20% with less than 5 years 18.75% with less than 5 years of service of service Survivor Benefits Retired Members 75% of retired member's benefit 50% of retired member's benefit Active Members 75% of disability retirement 50% of disability retirement and other inactive benefit benefit members * With reduced benefits of 0.25% for each month early retirement precedes the member's normal retirement age, with a maximum reduction of 30% 85Marana Regular Town Council Meeting February 7, 2023 Page 112 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Continued) 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, 2022, 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 49.21 percent of annual covered payroll of retired members who worked for the Town in positions that an employee who contributes to the EORP would typically fill. The Town’s contributions to the pension plan for the year ended June 30, 2022, was $53,207. During fiscal year 2022, the Town paid for EORP pension contributions 100 percent from the General Fund. Pension liability—At June 30, 2022, Town reported a liability for its proportionate share of the EORP’s net pension liability that reflected a reduction for the Town’s proportionate share of the State’s appropriation for EORP. The amount the Town recognized as its proportionate share of the net pension liability, the related state support, and the total portion of the net pension liability that was associated with the Town were as follows: Town's proportionate share of the EORP net pension liability 949,986$ State's proportionate share of the EORP net pension liability associated with the Town 95,489 Total 1,045,475$ The net pension liability was measured as of June 30, 2021, 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, 2021. The Town’s proportion measured as of June 30, 2021, was .1561 percent, which was an increase of .0029 percent from its proportion measured as of June 30, 2020. Pension expense/income and deferred outflows/inflows of resources—For the year ended June 30, 2022, the Town recognized pension income of $22,534 and pension expense of $94,148. 86Marana Regular Town Council Meeting February 7, 2023 Page 113 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Continued) At June 30, 2022, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience -$ 12,642$ Changes of assumptions or other inputs - 48,400 Changes in proportion and differences between Town contributions and proportionate share of contributions 9,521 Town contributions subsequent to the measurement date 53,207 - Total 62,728$ 61,042$ The $53,207 reported as deferred outflows of resources related to EORP pensions resulting from Town contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to EORP pensions will be recognized in pension expense as follows: Year ending June 30,EORP 2023 (13,058)$ 2024 (10,079) 2025 (11,904) 2026 (16,480) 2027 - Thereafter - Actuarial assumptions—The significant actuarial assumptions used to measure the total pension liability are as follows: EORP Actuarial valuation date June 30, 2021 Actuarial cost method Entry age normal Investment rate of return 7.3% Wage inflation 3.75% for pensions Price inflation 2.5% for pensions Cost-of-living adjustment 1.75% for pensions Mortality rates PubG-2010 tables Healthcare cost trend rate Not applicable 87Marana Regular Town Council Meeting February 7, 2023 Page 114 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Continued) Actuarial assumptions used in the June 30, 2021, 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: Long-Term Target Expected Arithmetic Asset Class Allocation Real Rate of Return U.S. public equity 24%4.08% International public equity 16%5.20% Global private equity 20%7.67% Other assets (capital appreciation)7%5.43% Core bonds 2%0.42% Private credit 20%5.74% Diversifying strategies 10%3.99% Cash - Mellon 1%-0.31% Total 100.00% Discount rate—At June 30, 2021, 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 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: Current 1% Decrease Discount Rate 1% increase (6.3%)(7.3%)(8.3%) Town's proportionate share of the net pension liability 1,091,608$ 949,986$ 828,442$ Pension Plan Fiduciary Net Position—Detailed information about the pension plan’s fiduciary net position is available in the separately issued EORP financial report. 88Marana Regular Town Council Meeting February 7, 2023 Page 115 of 339 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS Year Ended June 30, 2022 NOTE 11 - RISK MANAGEMENT The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters. The Town's insurance protection is provided by the Arizona Municipal Risk Retention Pool, of which the 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 12 - COMMITMENTS AND CONTINGENCIES The Town is subject to a number of lawsuits, investigations, and other claims (some of which involve substantial amounts) that are incidental to the ordinary course of its operations, including those related to wrongful death and personal injury matters. Although the Town Attorney does not currently possess sufficient information to reasonably estimate the amounts of the liabilities to be recorded upon the 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 2022, the Town was obligated to $8.8 million in significant contractual commitments for vehicles, airport, transportation, park, street, and water and wastewater facility related construction projects. NOTE 13 – SUBSEQUENT EVENTS Town of Marana Water Fund – Loan Issuance In October 2022, the Town issued a WIFA Loan in the amount of $1,000,000 of which $512,500 as forgivable principal. The loan has a combined interest and fee payment of 3.204%, maturing in fiscal year 2043. The loan was issued to finance the costs of water infrastructure. Gladden Farms Community Phase II Facilities District – Debt Issuance In October 2022, the District issued the Series 2022 General Obligation Bonds (Bonds) in the amount of $6,220,000, maturing in 2047, with an interest rate of 5.0%. The Bonds were issued to finance the costs to acquire and construct certain public infrastructure benefiting the District and to pay costs of issuance related to the Bonds. 89Marana Regular Town Council Meeting February 7, 2023 Page 116 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 117 of 339 REQUIRED SUPPLEMENTARY INFORMATION Marana Regular Town Council Meeting February 7, 2023 Page 118 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 119 of 339 BUDGETARY COMPARISON SCHEDULES General Fund Highway User Revenue Fund Marana Regular Town Council Meeting February 7, 2023 Page 120 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 121 of 339 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL – GENERAL FUND Year Ended June 30, 2022 Budgeted Amounts Original Final Actual Revenues: Sales taxes 30,950,841$ 30,950,841$ 37,758,894$ 6,808,053$ Intergovernmental 14,629,322 14,629,322 24,710,836 10,081,514 Licenses, fees & permits 5,865,800 5,865,800 11,190,988 5,325,188 Fines, forfeitures & penalties 391,000 391,000 382,476 (8,524) Charges for services 622,500 622,500 988,782 366,282 Lease income 145,000 145,000 264,148 119,148 Contributions - - 500 500 Investment income Interest earnings 508,508 508,508 779,086 270,578 Change in fair value of investments - - (959,247) (959,247) Miscellaneous 622,371 622,371 758,188 135,817 Total revenues 53,635,342 53,735,342 75,874,651 22,139,309 Expenditures: General government: General government 7,647,527 6,797,332 2,777,523 4,019,809 Town council 374,098 374,098 326,725 47,373 Town clerk 501,892 501,892 369,375 132,517 Town manager 2,129,569 1,770,420 1,407,226 363,194 Human resources 1,073,177 1,073,177 1,025,702 47,475 Facilities 1,652,815 1,644,815 1,302,382 342,433 Finance 1,571,532 1,571,532 1,417,753 153,779 Legal 1,112,888 1,112,888 1,067,073 45,815 Technology services 3,583,367 3,583,367 3,345,519 237,848 Municipal courts 1,247,301 1,247,301 1,120,726 126,575 Public Safety: Police 16,141,711 16,141,711 15,313,361 828,350 Building safety 1,081,440 1,153,440 1,010,061 143,379 Code Enforcement 23,150 22,150 18,010 4,140 Highways and streets: Public works 3,170,327 3,170,327 2,714,642 455,685 Health and welfare: Animal Services 310,989 318,009 318,004 5 Economic and community development: Development services 3,290,588 3,306,588 3,045,397 261,191 Economic development and tourism 311,435 311,435 291,362 20,073 Community development 838,180 832,160 789,632 42,528 Culture and recreation: Parks and recreation 6,336,557 6,695,706 5,714,361 981,345 Capital outlay 2,753,778 2,765,778 1,183,638 1,582,140 Debt service - Principal retirement - - 5,020 (5,020) Interest and fiscal charges - - 10,978 (10,978) Total expenditures 55,152,321 54,394,126 44,574,470 9,819,656 Variance - Positive (Negative) 95See accompanying notes to budgetary comparison schedules.Marana Regular Town Council Meeting February 7, 2023 Page 122 of 339 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – GENERAL FUND Year Ended June 30, 2022 Excess (deficiency) of revenues over expenditures (1,516,979) (658,784) 31,300,181 31,958,965 Other financing sources (uses): Transfers in - - 11,708 11,708 Transfers out (4,286,035) (4,286,035) (4,093,861) 192,174 Total other financing sources (uses)(4,286,035) (4,286,035) (4,082,153) 203,882 Changes in fund balances (5,803,014) (4,944,819) 27,218,028 32,162,847 Fund balances, beginning of year - - 71,356,794 71,356,794 Fund balances, end of year (5,803,014)$ (4,944,819)$ 98,574,822$ 103,519,641$ 96See accompanying notes to budgetary comparison schedules.Marana Regular Town Council Meeting February 7, 2023 Page 123 of 339 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL – HIGHWAY USER REVENUE FUND Year Ended June 30, 2022 Budgeted Amounts Original Final Actual Variance - Positive (Negative) Revenues: Intergovernmental 3,912,106$ 3,912,106$ 4,271,391$ 359,285$ Licenses, fees & permits - - 48,098 48,098 Interest earnings 5,000 5,000 6,691 1,691 Miscellaneous - - 31,053 31,053 Total revenues 3,917,106 3,917,106 4,357,233 440,127 Expenditures: Current - Highways and streets 4,348,548 4,348,548 3,173,692 1,174,856 Capital outlay - - 21,147 (21,147) Total expenditures 4,348,548 4,348,548 3,194,839 1,153,709 Excess (deficiency) of revenues over expenditures (431,442) (431,442) 1,162,394 1,593,836 Fund balances, beginning of year - - 3,753,652 3,753,652 Fund balances, end of year (431,442)$ (431,442)$ 4,916,046$ 5,347,488$ 97See accompanying notes to budgetary comparison schedules.Marana Regular Town Council Meeting February 7, 2023 Page 124 of 339 TOWN OF MARANA, ARIZONA NOTES TO BUDGETARY COMPARISON SCHEDULES Year Ended June 30, 2022 NOTE 1 – BUDGETING AND BUDGETARY CONTROL A.R.S. requires the Town to prepare and adopt a balanced budget annually for each governmental fund. The Town Council must approve such operating budgets on or before the third Monday in July to allow sufficient time for the legal announcements and hearings required for the adoption of the property tax levy on the third Monday in August. A.R.S. prohibits expenditures or liabilities in excess of the amounts budgeted. Expenditures may not legally exceed appropriations at the department level. In certain instances, transfers of appropriations between departments or from the contingency account to a department may be made upon the Town Council’s approval. With the exception of the General Fund, each fund includes only one department. NOTE 2 - BUDGETARY BASIS OF ACCOUNTING The adopted budget of the Town is prepared on a basis of accounting consistent with accounting principles generally accepted in the United States of America. 98Marana Regular Town Council Meeting February 7, 2023 Page 125 of 339 PENSION PLAN SCHEDULES Marana Regular Town Council Meeting February 7, 2023 Page 126 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 127 of 339 TOWN OF MARANA, ARIZONA SCHEDULE OF THE TOWN’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) COST SHARING PLANS June 30, 2022 Arizona Retirement System 2014 2022 2021 2020 2019 2018 2017 2016 2015 through (2021) (2020) (2019) (2018) (2017) (2016) (2015) (2014)2013 Town's proportion of the net pension liability 0.138250% 0.14273% 0.140040% 0.142210% 0.142860% 0.140584% 0.136510% 0.129998%Information Town's proportionate share of the net not available pension liability 18,165,436$ 24,730,142$ 20,377,449$ 19,833,290$ 22,254,803$ 22,691,024$ 21,263,376$ 19,235,271$ Town's covered payroll 15,163,886$ 15,605,818$ 14,773,437$ 14,143,225$ 13,881,636$ 13,150,962$ 12,565,464$ 11,714,615$ Town's proportionate share of the net pension liability as a percentage of its covered payroll 119.79% 158.47% 137.93% 140.23% 160.32% 172.54% 169.22% 164.20% Plan fiduciary net position as a percentage of the total pension liability 78.58% 69.33% 73.24% 73.40% 69.92% 67.06% 68.35% 69.49% Elected Officials Retirement Plan 2014 2022 2021 2020 2019 2018 2017 2016 2015 through (2021) (2020) (2019) (2018) (2017) (2016) (2015) (2014)2013 Town's proportion of the net pension liability 0.156103% 0.153230% 0.148366% 0.155545% 0.150480% 0.148768% 0.133401% 0.165886%Information Town's proportionate share of the net pension liability 949,986$ 1,034,238$ 983,931$ 980,148$ 1,833,747$ 1,405,489$ 1,042,465$ 1,112,385$ not State's proportionate share of the net pension available* liability associated with the Town 95,489 89,765 88,985 167,942 380,586 290,197 324,997 341,068 Total 1,045,475$ 1,124,003$ 1,072,916$ 1,148,090$ 2,214,333$ 1,695,686$ 1,367,462$ 1,453,453$ Town's covered payroll 119,423$ 119,423$ 119,423$ 116,021$ 119,424$ 119,424$ 119,424$ 119,423$ Town's proportionate share of the net pension liability as a percentage of its covered payroll 795.48% 866.03% 823.90% 844.80% 1535.49% 1176.89% 872.91% 831.15% Plan fiduciary net position as a percentage of the total pension liability 36.28% 29.80% 30.14% 30.36% 19.66% 23.42% 28.32% 31.91% * Additional years' information will be displayed as it becomes available (Measurement Date) Reporting Fiscal Year Reporting Fiscal Year (Measurement Date) 101See accompanying notes to pension plan schedules.Marana Regular Town Council Meeting February 7, 2023 Page 128 of 339 TOWN OF MARANA, ARIZONA SCHEDULE OF THE TOWN’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) AGENT PENSION PLANS June 30, 2022 PSPRS 2014 2022 2021 2020 2019 2018 2017 2016 2015 through (2021)(2020)(2019)(2018)(2017)(2016)(2015)(2014)2013 Total pension liability Service cost 1,124,761$ 1,130,556$ 1,116,409$ 1,100,133$ 1,213,757$ 994,058$ 891,324$ 876,619$ Information Interest on the total pension liability 3,180,634 2,922,105 2,689,703 2,538,335 2,322,987 2,005,255 1,844,654 1,551,602 not available Changes on benefit terms - - - - 367,673 1,837,430 - 308,515 Differences between expected and actual experience in the measurement of the pension liability 128,853 1,261,412 284,100 (566,255) 340,373 536,692 333,269 148,583 Changes of assumptions or other inputs - - 1,136,498 - 725,862 1,226,081 - 1,933,583 Benefit payments, including refunds of employee contributions (1,817,754) (1,715,812) (1,402,911) (1,783,172) (1,387,192) (1,174,525) (974,950) (1,211,258) Net change in total pension liability 2,616,494 3,598,261 3,823,799 1,289,041 3,583,460 5,424,991 2,094,297 3,607,644 Total pension liability - beginning 43,354,440 39,756,179 35,932,380 34,643,339 31,059,879 25,634,888 23,540,591 19,932,947 Total pension liability - ending (a)45,970,934$ 43,354,440$ 39,756,179$ 35,932,380$ 34,643,339$ 31,059,879$ 25,634,888$ 23,540,591$ Plan fiduciary net position Contributions - employer 2,216,029$ 2,024,395$ 2,011,933$ 1,904,911$ 1,384,924$ 1,323,677$ 1,006,859$ 797,871$ Contributions - employee 503,893 467,180 406,546 488,777 621,583 672,181 579,390 578,596 Net investment income 7,031,611 305,606 1,190,198 1,355,793 2,081,790 95,438 533,938 1,698,902 Benefit payments, including refunds of employee contributions (1,817,754) (1,715,812) (1,402,911) (1,783,172) (1,387,192) (1,174,525) (974,950) (1,211,258) Hall/Parker settlement - - - (780,563) - - - - Administrative expense (32,716) (24,918) (21,675) (21,335) (18,820) (14,134) (13,410) - Other changes - - - 227 2,417 223,597 46,032 (543,969) Net change in plan fiduciary net position 7,901,063 1,056,451 2,184,091 1,164,638 2,684,702 1,126,234 1,177,859 1,320,142 Plan fiduciary net position - beginning 23,495,820 22,557,297 20,384,543 19,219,905 16,535,203 15,408,969 14,231,110 12,910,968 Adjustment to beginning of year - (117,928) (11,337) Plan fiduciary net position - ending (b)31,396,883$ 23,495,820$ 22,557,297$ 20,384,543$ 19,219,905$ 16,535,203$ 15,408,969$ 14,231,110$ Town's net pension liability (asset) - ending (a) - (b)14,574,051$ 19,858,620$ 17,198,882$ 15,547,837$ 15,423,434$ 14,524,676$ 10,225,919$ 9,309,481$ Plan fiduciary net position as a percentage of the total pension liability 68.30% 54.19% 56.74% 56.73% 55.48% 53.24% 60.11% 60.45% Covered payroll 5,617,205$ 5,207,363$ 5,272,202$ 5,121,661$ 5,318,831$ 5,182,784$ 4,900,569$ 4,638,415$ Town's net pension liability (asset) as a percentage of covered payroll 259.45% 381.36% 326.22% 303.57% 289.98% 280.25% 208.67% 200.70% (Measurement Date) Reporting Fiscal Year 102See accompanying notes to pension plan schedules.Marana Regular Town Council Meeting February 7, 2023 Page 129 of 339 CORP - Dispatchers 2014 2022 2021 2020 2019 2018 2017 2016 2015 through (2021) (2020) (2019) (2018) (2017) (2016) (2015) (2014)2013 Total pension liability Service cost 40,973$ 41,671$ 60,952$ 62,894$ 59,139$ 57,866$ 64,307$ 63,474$ Information Interest on the total pension liability 211,853 189,052 157,366 150,833 118,108 113,075 105,144 94,360 not available Changes on benefit terms - - - (111,265.00) 312,169 15,002 - - Differences between expected and actual experience in the measurement of the pension liability (2,539) 108,881 224,526 (40,404) (18,913) (25,358) (18,303) (16,512) Changes of assumptions or other inputs - - 56,044 - (5,967) (136) - 18,699 Benefit payments, including refunds of employee contributions (26,829) (26,303) (6,543) - (5,825) (47,673) (46,131) - Net change in total pension liability 223,458 313,301 492,345 62,058 458,711 112,776 105,017 160,021 Total pension liability - beginning 2,874,535 2,561,234 2,068,889 2,006,831 1,548,120 1,435,344 1,330,327 1,170,306 Total pension liability - ending (a)3,097,993$ 2,874,535$ 2,561,234$ 2,068,889$ 2,006,831$ 1,548,120$ 1,435,344$ 1,330,327$ Plan fiduciary net position Contributions - employer 91,440$ 70,986$ 83,517$ 57,269$ 51,162$ 48,648$ 49,045$ 48,667$ Contributions - employee 29,136 29,446 31,930 32,445 32,199 32,623 35,981 36,306 Net investment income 471,853 41,793 79,174 90,441 124,809 6,034 34,230 102,910 Benefit payments, including refunds of employee contributions (26,829) (26,303) (6,543) - (5,825) (47,673) (46,131) - Administrative expense (2,166) (1,618) (2,113) (2,068) (1,491) (1,253) (1,233) - Other changes - - - (22) (6) (5) (635) (24,446) Net change in plan fiduciary net position 563,434 114,304 185,965 178,065 200,848 38,374 71,257 163,437 Plan fiduciary net position - beginning 1,695,002 1,580,698 1,394,733 1,216,668 1,015,820 977,446 906,189 742,752 Adjustment to beginning of year Plan fiduciary net position - ending (b)2,258,436$ 1,695,002$ 1,580,698$ 1,394,733$ 1,216,668$ 1,015,820$ 977,446$ 906,189$ Town's net pension liability (asset) - ending (a) - (b)839,557$ 1,179,533$ 980,536$ 674,156$ 790,163$ 532,300$ 457,898$ 424,138$ Plan fiduciary net position as a percentage of the total pension liability 72.90% 58.97% 61.72% 67.41% 60.63% 65.62% 68.10% 68.12% Covered payroll 358,783$ 369,922$ 401,139$ 407,607$ 404,506$ 397,428$ 430,892$ 456,107$ Town's net pension liability (asset) as a percentage of covered payroll 234.00% 318.86% 274.56% 165.39% 195.34% 133.94% 106.27% 92.99% (Measurement Date) Reporting Fiscal Year 103See accompanying notes to pension plan schedules.Marana Regular Town Council Meeting February 7, 2023 Page 130 of 339 TOWN OF MARANA, ARIZONA SCHEDULE OF THE TOWN’S PENSION CONTRIBUTIONS June 30, 2022 Arizona Retirement System 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Statutorily required contribution 1,992,666$ 1,810,568$ 1,786,018$ 1,645,597$ 1,536,196$ 1,496,440$ 1,426,879$ 1,367,122$ 1,253,464$ Information Town's contributions in relation to the not available statutorily required contribution 1,992,666 1,856,449 1,786,018 1,645,597 1,536,196 1,496,440 1,426,879 1,367,122 1,253,464 Town's contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$ -$ -$ Town's covered payroll 16,591,724$ 15,163,886$ 15,605,818$ 14,773,437$ 14,143,225$ 13,881,636$ 13,150,962$ 12,565,464$ 11,714,615$ Town's contributions as a percentage of covered payroll 12.01% 11.94% 11.44% 11.14% 10.86% 10.78% 10.85% 10.88% 10.70% Elected Officials Retirement Plan 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Statutorily required contribution 53,207$ 69,196$ 69,800$ 63,358$ 27,266$ 28,065$ 28,065$ 28,065$ 38,431$ Information Town's contributions in relation to the not available statutorily required contribution 53,207 69,196 69,800 63,358 27,266 28,065 28,065 28,065 38,431 Town's contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$ -$ -$ Town's covered payroll 75,557$ 119,423$ 119,423$ 119,423$ 116,021$ 119,424$ 119,424$ 119,424$ 119,423$ Town's contributions as a percentage of covered payroll 70.42% 57.94% 58.45% 53.05% 23.50% 23.50% 23.50% 23.50% 32.18% Reporting Fiscal Year Reporting Fiscal Year 104See accompanying notes to pension plan schedules.Marana Regular Town Council Meeting February 7, 2023 Page 131 of 339 PSPRS 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Actuarially determined conbirution 2,442,651$ 2,216,029$ 2,110,954$ 2,003,419$ 1,782,576$ 1,381,861$ 1,322,941$ 1,006,859$ 797,871$ Information Town's contributions in relation to the not available actuarially required contribution 2,442,651 2,216,029 2,110,954 2,003,419 1,782,576 1,381,861 1,322,941 1,006,859 797,871 Town's contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$ -$ -$ Town's covered payroll 6,653,912$ 5,617,205$ 6,402,828$ 6,270,642$ 5,542,238$ 5,614,773$ 5,315,870$ 4,900,569$ 4,638,415$ Town's contributions as a percentage of covered payroll 36.71% 39.45% 32.97% 31.95% 32.16% 24.61% 24.89% 20.55% 17.20% CORP - Dispatchers 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Actuarially determined conbirution 66,152$ 91,440$ 70,988$ 83,517$ 57,269$ 51,210$ 48,648$ 49,045$ 48,667$ Information Town's contributions in relation to the not available actuarially required contribution 91,440 70,988 83,517 57,269 51,210 48,648 49,045 48,667 Town's contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$ -$ -$ Town's covered payroll 242,049$ 358,783$ 369,921$ 401,139$ 407,607$ 404,507$ 409,843$ 430,892$ 456,106$ Town's contributions as a percentage of covered payroll 27.33% 25.49% 19.19% 20.82% 14.05% 12.66% 11.87% 11.38% 10.67% Reporting Fiscal Year Reporting Fiscal Year 105See accompanying notes to pension plan schedules.Marana Regular Town Council Meeting February 7, 2023 Page 132 of 339 TOWN OF MARANA, ARIZONA NOTES TO PENSION PLAN SCHEDULES June 30, 2022 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 19 years for underfunded of the 2020 actuarial valuation 20 years for overfunded Asset valuation method 7-year smoothed market value; 80%/120% market corridor Actuarial assumptions: Investment rate of return In the 2019 actuarial valuation,the investment rate of return was decreased from 7.4%to 7.3%.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% to 7.85%. Projected salary increases Wage growth Retirement age Mortality In the 2019 actuarial valuation, changed to PubS-2010 tables.In the 2017 actuarial valuation, change RP-2014 tables, with 75% of MP-2016 fully generational projection scales. RP-2000 mortality table (adjusted by 105% for both males and females). In the 2017 actuarial valuation, projected salary increases were decreased from 4.0% - 8.0%to 3.5% - 7.5% for PSPRS.In the 2014 actuarial valuation, projected salary increases were decreased from 4.5%-8.5%to 4.0%-8.0% for PSPRS.In the 2013 actuarial valuation, projected salary increases were decreased from 5.0%-9.0%to 4.5%- 8.5% for PSPRS. In the 2017 actuarial valuation, wage growth was decreased from 4%to 3.5% for PSPRS.In the 2014 actuarial valuation, wage growth was decreased from 4.5%to 4.0% for PSPRS.In the 2013 actuarial valuation, wage growth was decreased from 5.0% to 4.5% for PSPRS. 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. 106Marana Regular Town Council Meeting February 7, 2023 Page 133 of 339 TOWN OF MARANA, ARIZONA NOTES TO PENSION PLAN SCHEDULES June 30, 2022 NOTE 2 – FACTORS THAT AFFECT TRENDS Arizona courts have ruled that provisions of a 2011 law that changed the mechanism for funding permanent pension benefit increases and increased employee pension contribution rates were unconstitutional or a breach of contract because those provisions apply to individuals who were members as of the law’s effective date. As a result, the PSPRS, CORP, and EORP changed benefit terms to reflect the prior mechanism for funding permanent benefit increases for those members and revised actuarial assumptions to explicitly value future permanent benefit increases. PSPRS and EORP also reduced those members’ employee contribution rates. These changes are reflected in the plans’ pension liabilities for fiscal year 2015 (measurement date 2014) for members who were retired as of the law’s effective date and fiscal year 2018 (measurement date 2017) for members who retired or will retire after the law’s effective date. These changes also increased the PSPRS and CORP required pension contributions beginning in fiscal year 2016 for members who were retired as of the law’s effective date. These changes increased the PSPRS and CORP required contributions beginning in fiscal year 2019 for members who retired or will retir e 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. 107Marana Regular Town Council Meeting February 7, 2023 Page 134 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 135 of 339 OTHER SUPPLEMENTARY INFORMATION Marana Regular Town Council Meeting February 7, 2023 Page 136 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 137 of 339 BUDGETARY COMPARISON SCHEDULES Tangerine Farms Improvement Debt District Transportation Capital Fund Marana Regular Town Council Meeting February 7, 2023 Page 138 of 339 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL – TANGERINE FARMS IMPROVEMENT DISTRICT DEBT FUND Year Ended June 30, 2022 Budgeted Amounts Original Final Actual Variance - Positive (Negative) Revenues: Special assessments 2,664,488$ 2,664,488$ 1,801,409$ (863,079)$ Total revenues 2,664,488 2,664,488 1,801,409 (863,079) Expenditures: Current - Debt service - Principal retirement 2,508,000 2,508,000 1,834,000 674,000 Interest and fiscal charges 156,488 156,488 145,001 11,487 Total expenditures 2,664,488 2,664,488 1,979,001 685,487 Excess (deficiency) of revenues over expenditures - - (177,592) (177,592) Other financing sources (uses): Transfers in 25,616 (25,616) Changes in fund balances - - (151,976) (151,976) Fund balances, beginning of year - - 519,241 519,241 Fund balances, end of year -$ -$ 367,265$ 367,265$ 112Marana Regular Town Council Meeting February 7, 2023 Page 139 of 339 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL – TRANSPORTATION CAPITAL FUND Year Ended June 30, 2022 Budgeted Amounts Original Final Actual Variance - Positive (Negative) Revenues: Sales taxes 7,500,000$ 7,500,000$ 8,395,919$ 895,919$ Contributions - - 1,197,199 1,197,199 Investment income Interest earnings 50,000 50,000 97,552 47,552 Change in fair value of investments - - (137,107) (137,107) Total revenues 7,550,000 7,550,000 9,553,563 2,003,563 Expenditures: Current - General government 1,187,000 1,187,000 977,461 209,539 Capital outlay 14,670,602 14,170,602 987,938 13,182,664 Total expenditures 15,857,602 15,357,602 1,965,399 13,392,203 Excess (deficiency) of revenues over expenditures (8,307,602) (7,807,602) 7,588,164 15,395,766 Other financing sources (uses): Transfers in 50,000 50,000 - (50,000) Transfers out (859,029) (859,029) (858,375) 654 Total other financing sources (uses)(809,029) (809,029) (858,375) (49,346) Changes in fund balances (9,116,631) (8,616,631) 6,729,789 15,346,420 Fund balances, beginning of year - - 12,776,765 12,776,765 Fund balances, end of year (9,116,631)$ (8,616,631)$ 19,506,554$ 28,123,185$ 113Marana Regular Town Council Meeting February 7, 2023 Page 140 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 141 of 339 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Marana Regular Town Council Meeting February 7, 2023 Page 142 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET – ALL MAJOR GOVERNMENTAL FUNDS – BY FUND TYPE June 30, 2022 Special Revenue Capital Projects Debt Service Total Non-Major Governmental Funds ASSETS Cash and cash equivalents 5,376,980$ 30,955,866$ -$ 36,332,846$ Property taxes receivable - 2,213 18,451 20,664 Accounts receivable 828 - - 828 Interest receivable - 16,259 857 17,116 Development agreement receivable - 70,868 - 70,868 Due from other governments 440,054 902,227 - 1,342,281 Prepaid items 5,585 - - 5,585 Restricted cash and investments - - 6,855,112 6,855,112 Total assets 5,823,447$ 31,947,433$ 6,874,420$ 44,645,300$ LIABILITIES Accounts payable 230,573$ 601,682$ -$ 832,255$ Retainage payable - 38,317 - 38,317 Accrued payroll and employee benefits 34,168 - - 34,168 Due to other funds 2,882 592,127 - 595,009 Deposits held for others - 97,210 - 97,210 Unearned revenue - 13,229 - 13,229 Total liabilities 267,623 1,342,565 - 1,610,188 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 79,357 - - 79,357 Total deferred inflows of resources 79,357 - - 79,357 FUND BALANCES (DEFICITS) Fund balances: Nonspendable 5,585 - - 5,585 Restricted 5,470,882 29,608,355 6,874,420 41,953,657 Committed -1,628,523 - 1,628,523 Unassigned -(632,010) - (632,010) Total fund balances 5,476,467 30,604,868 6,874,420 42,955,755 Total liabilities, deferred inflows of resources, and fund balances 5,823,447$ 31,947,433$ 6,874,420$ 44,645,300$ 116Marana Regular Town Council Meeting February 7, 2023 Page 143 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – ALL MAJOR GOVERNMENTAL FUNDS – BY FUND TYPE Year Ended June 30, 2022 Special Revenue Capital Projects Debt Service Total Non-Major Governmental Funds Revenues: Sales tax 1,901,388$ 4,055,335$ -$ 5,956,723$ Property tax - 181,925 1,516,043 1,697,968 Intergovernmental 1,883,024 5,004,500 - 6,887,524 Licenses, fees & permits - 9,710,243 - 9,710,243 Fines, forfeitures & penalties 45,734 - - 45,734 Contributions - 32,224 768 32,992 Investment income Interest earnings 2,660 70,160 877 73,697 Change in fair value of investments - (78,579) - (78,579) Miscellaneous 6,120 - - 6,120 Total revenues 3,838,926 18,975,808 1,517,688 24,332,422 Expenditures: Current - General government 1,077,135 4,072 - 1,081,207 Public safety 1,506,917 - - 1,506,917 Highways and streets - 117,422 - 117,422 Economic and community development 368,281 2,603 - 370,884 Culture and recreation - 1,290 - 1,290 Capital outlay 111,611 1,417,046 6,927,553 8,456,210 Debt service - Principal retirement - - 4,465,000 4,465,000 Interest and fiscal charges - - 2,719,626 2,719,626 Bond issuance costs - - 510,765 510,765 Total expenditures 3,063,944 1,542,433 14,622,944 19,229,321 Excess (deficiency) of revenues over expenditures 774,982 17,433,375 (13,105,256) 5,103,101 Other financing sources (uses): Issuance of debt - - 6,800,000 6,800,000 Premium on bonds issued - - 697,524 697,524 Transfers in 44,411 - 6,495,796 6,540,207 Transfers out (11,708) (1,246,241) - (1,257,949) Total other financing sources (uses)32,703 (1,246,241) 13,993,320 12,779,782 Change in fund balances 807,685 16,187,134 888,064 17,882,883 Fund balances, beginning of year 4,668,782 14,417,734 5,986,356 25,072,872 Fund balances, end of year 5,476,467$ 30,604,868$ 6,874,420$ 42,955,755$ 117Marana Regular Town Council Meeting February 7, 2023 Page 144 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 145 of 339 NON-MAJOR SPECIAL REVENUE FUNDS Community Development Grant Fund (CDBG) – This fund accounts for the CDBG program which provides resources to address community development needs Affordable Housing Fund – This revolving fund accounts for resources utilized on affordable housing projects and programs. Bed Tax Fund – This fund accounts for the collection of the discriminatory portion of bed tax revenues which funds economic development and tourism initiatives. Judicial Collection Enhancement Fund – This fund accounts for resources required to improve, maintain and enhance the ability to collect and manage monies assessed or received by the courts including restitution, child support, fines and civil penalties; and to improve court automation projects likely to improve case processing or the administration of justice. Fill-the-Gap Fund – This fund accounts for local Fill-the-Gap resources which shall be used to improve, maintain and enhance the ability to collect and manage monies assessed or received by the courts, to improve court automation and to improve case processing or the administration of justice. Local Technology Fund – This fund accounts for resources required to fund local or collaborative technology improvement projects and programs. Other Special Revenue Fund – This fund includes all other grant related programs and projects. Marana Regular Town Council Meeting February 7, 2023 Page 146 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 147 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET Year Ended June 30, 2022 Community Development Block Grant Affordable Housing Bed Tax Judicial Collection Enhancement Fill-the-Gap Local Technology Other Special Revenue Fund Totals ASSETS Cash and cash equivalents -$ 92,666$ 3,501,743$ 126,508$ 107,411$ 454,033$ 1,094,619$ 5,376,980$ Accounts receivable - - - - 828 - - 828 Due from governments 2,882 - 175,980 - - - 261,192 440,054 Prepaid - - 2,925 - - - 2,660 5,585 Total assets 2,882$ 92,666$ 3,680,648$ 126,508$ 108,239$ 454,033$ 1,358,471$ 5,823,447$ LIABILITIES Accounts payable -$ -$ 203,988$ -$ -$ 300$ 26,285$ 230,573$ Accrued payroll and employee benefits - - 1,393 - - - 32,775 34,168 Due to other funds 2,882 - - - - - - 2,882 Total liabilities 2,882 - 205,381 - - 300 59,060 267,623 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - - - - - - 79,357 79,357 Total deferred inflows of resources - - - - - - 79,357 79,357 FUND BALANCES (DEFICITS) Nonspendable - - 2,925 - - - 2,660 5,585 Restricted - 92,666 3,472,342 126,508 108,239 453,733 1,217,394 5,470,882 Total fund balances - 92,666 3,475,267 126,508 108,239 453,733 1,220,054 5,476,467 Total liabilities, deferred inflows of resources, and fund balances 2,882$ 92,666$ 3,680,648$ 126,508$ 108,239$ 454,033$ 1,358,471$ 5,823,447$ 121Marana Regular Town Council Meeting February 7, 2023 Page 148 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 2022 Community Development Block Grant Affordable Housing Bed Tax Judicial Collection Enhancement Fill-the-Gap Local Technology Other Special Revenue Fund Totals Revenues: Sales taxes -$ -$ 1,901,388$ -$ -$ -$ -$ 1,901,388$ Intergovernmental 78,972 - - - - - 1,804,052 1,883,024 Fines, forfeitures & penalties - - - 5,399 3,009 25,776 11,550 45,734 Investment income Interest earnings - - - - - - 2,660 2,660 Miscellaneous - 1,924 - - - - 4,196 6,120 Total revenues 78,972 1,924 1,901,388 5,399 3,009 25,776 1,822,458 3,838,926 Expenditures: Current - General government - - 830,880 2,424 - 238,249 5,582 1,077,135 Public safety - - - - - - 1,506,917 1,506,917 Economic and community development 66,674 10,410 291,197 - - - - 368,281 Capital outlay - - - - - - 111,611 111,611 Total expenditures 66,674 10,410 1,122,077 2,424 - 238,249 1,624,110 3,063,944 Excess (deficiency) of revenues over expenditures 12,298 (8,486) 779,311 2,975 3,009 (212,473) 198,348 774,982 Other financing sources (uses): Transfers in - - - - - - 44,411 44,411 Transfers out - - - - - - (11,708) (11,708) Total other financing sources (uses)- - - - - - 32,703 32,703 Change in fund balances 12,298 (8,486) 779,311 2,975 3,009 (212,473) 231,051 807,685 Fund balances (deficits), beginning of year (12,298) 101,152 2,695,956 123,533 105,230 666,206 989,003 4,668,782 Fund balances (deficits), end of year -$ 92,666$ 3,475,267$ 126,508$ 108,239$ 453,733$ 1,220,054$ 5,476,467$ 122Marana Regular Town Council Meeting February 7, 2023 Page 149 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR SPECIAL REVENUE FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – COMMUNITY DEVELOPMENT BLOCK GRANT FUND Year Ended June 30, 2022 Community Development Block Grant Fund Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Intergovernmental 180,000$ 180,000$ 78,972$ (101,028)$ Total revenues 180,000 180,000 78,972 (101,028) Expenditures: Current - Economic and community development 180,000 180,000 66,674 113,326 Capital outlay - - - - Total expenditures 180,000 180,000 66,674 113,326 Change in fund balance - - 12,298 12,298 Fund balance, July 1, 2021 - - (12,298) (12,298) Fund balance (deficits), June 30, 2022 -$ -$ -$ -$ 123Marana Regular Town Council Meeting February 7, 2023 Page 150 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR SPECIAL REVENUE FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – AFFORDABLE HOUSING REVOLVING FUND Year Ended June 30, 2022 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Miscellaneous 10,000$ 10,000$ 1,924$ (8,076)$ Total revenues 10,000 10,000 1,924 (8,076) Expenditures: Current - Economic and community development 137,410 137,410 10,410 127,000 Capital outlay - - - - Total expenditures 137,410 137,410 10,410 127,000 Change in fund balance (127,410) (127,410) (8,486) 118,924 Fund balance, July 1, 2021 - - 101,152 101,152 Fund balance (deficits), June 30, 2022 (127,410)$ (127,410)$ 92,666$ 220,076$ Affordable Housing Revolving Fund 124Marana Regular Town Council Meeting February 7, 2023 Page 151 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR SPECIAL REVENUE FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – BED TAX FUND Year Ended June 30, 2022 Bed Tax Fund Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Sales taxes 1,243,341$ 1,243,341$ 1,901,388$ 658,047$ Miscellaneous - - - - Total revenues 1,243,341 1,243,341 1,901,388 658,047 Expenditures: Current - General government 748,418 748,418 830,880 (82,462) Economic and community development 494,923 494,923 291,196 203,727 Total expenditures 1,243,341 1,243,341 1,122,076 121,265 Change in fund balance - - 779,312 779,312 Fund balance, July 1, 2021 - - 2,695,955 2,695,955 Fund balance (deficits), June 30, 2022 -$ -$ 3,475,267$ 3,475,267$ 125Marana Regular Town Council Meeting February 7, 2023 Page 152 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR SPECIAL REVENUE FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – JUDICIAL COLLECTION ENHANCEMENT FUND Year Ended June 30, 2022 Judicial Collection Enhancement Fund Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Fines, forfeitures & penalties 8,000$ 8,000$ 5,399$ (2,601)$ Total revenues 8,000 8,000 5,399 (2,601) Expenditures: Current - General government 131,805 131,805 2,424 129,381 Total expenditures 131,805 131,805 2,424 129,381 Change in fund balance (123,805) (123,805) 2,975 126,780 Fund balance, July 1, 2021 - - 123,533 123,533 Fund balance (deficits), June 30, 2022 (123,805)$ (123,805)$ 126,508$ 250,313$ 126Marana Regular Town Council Meeting February 7, 2023 Page 153 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR SPECIAL REVENUE FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – FILL-THE-GAP FUND Year Ended June 30, 2022 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Fines, forfeitures & penalties 4,500$ 4,500$ $ 3,009 $ (1,491) Total revenues 4,500 4,500 3,009 (1,491) 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) 3,009 33,009 Fund balance, July 1, 2021 - - 105,230 105,230 Fund balance (deficits), June 30, 2022 (30,000)$ (30,000)$ 108,239$ 138,239$ Fill-the-Gap 127Marana Regular Town Council Meeting February 7, 2023 Page 154 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR SPECIAL REVENUE FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – LOCAL TECHNOLOGY Year Ended June 30, 2022 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Fines, forfeitures & penalties 50,000$ 50,000$ 25,776$ (24,224)$ Total revenues 50,000 50,000 25,776 (24,224) Expenditures: Current - General government 437,500 437,500 238,249 199,251 Total expenditures 437,500 437,500 238,249 199,251 Change in fund balance (387,500) (387,500) (212,473) 175,027 Fund balance, July 1, 2021 - - 666,206 666,206 Fund balance (deficits), June 30, 2022 (387,500)$ (387,500)$ 453,733$ 841,233$ Local Technology Fund 128Marana Regular Town Council Meeting February 7, 2023 Page 155 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR SPECIAL REVENUE FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – OTHER SPECIAL REVENUE Year Ended June 30, 2022 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Intergovernmental 3,463,154$ 3,463,154$ 1,804,052$ (1,659,102)$ Fines, forfeitures & penalties 50,000 50,000 11,550 (38,450) Investment income 5,000 5,000 2,660 (2,340) Miscellaneous 10,000 10,000 4,196 (5,804) Total revenues 3,528,154 3,528,154 1,822,458 (1,705,696) Expenditures: Current - General government 2,390,000 1,974,698 5,582 1,969,117 Public safety 1,630,381 1,870,883 1,506,917 363,966 Capital outlay - 99,800 111,611 (11,811) Total expenditures 4,020,381 3,945,381 1,624,109 2,321,272 Excess (deficiency) of revenues over expenditures (492,227) (417,227) 198,349 (4,026,968) Other financing sources (uses): Transfers in 100,000 100,000 44,411 55,589 Transfers out - - (11,708) 11,708 Total other financing sources (uses)100,000 100,000 32,703 67,297 Change in fund balance (392,227) (317,227) 231,052 (3,959,671) Fund balance, July 1, 2021 - - 989,003 989,002 Fund balance (deficits), June 30, 2022 (392,227)$ (317,227)$ 1,220,054$ (2,970,669)$ Other Special Revenue Fund 129Marana Regular Town Council Meeting February 7, 2023 Page 156 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 157 of 339 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. Sales Tax Capital Projects Fund – This fund accounts for sales tax proceeds for capital related funding and projects. 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. Marana Regular Town Council Meeting February 7, 2023 Page 158 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 2022 Northwest Transportation Impact Fees Northeast Transportation Impact Fees South Transportation Impact Fees Park Impact Fees ASSETS Cash and cash equivalents 1,233,457$ -$ 12,075,048$ 5,916,161$ Property taxes receivable - - - - Interest receivable - - 14,822 - Development agreement receivable - - - - Due from other governments - - - - Total assets 1,233,457$ -$ 12,089,870$ 5,916,161$ LIABILITIES Accounts payable 908$ 26,654$ 113,301$ 20,326$ Retainage payable - - - - Due to other funds - 590,775 - - Deposits held for others - - - - Unearned revenue - - - - Total liabilities 908 617,429 113,301 20,326 FUND BALANCES (DEFICITS) Restricted 1,232,549 - 11,976,569 5,895,835 Committed - - - - Unassigned - (617,429) - - Total fund balances (deficits) 1,232,549 (617,429) 11,976,569 5,895,835 Total liabilities, deferred inflows of resources, and fund balances 1,233,457$ -$ 12,089,870$ 5,916,161$ 132Marana Regular Town Council Meeting February 7, 2023 Page 159 of 339 PAG/RTA Capital Downtown Reinvestment Sales Tax Capital Projects Fund Other Capital Projects Gladden Farms Capital Saguaro Springs Capital Totals -$ 1,740,998$ 2,774,699$ 5,977,448$ 951,598$ 286,457$ 30,955,866$ - -- - 1,247 966 2,213 - -- 1,437 - - 16,259 - -- 70,868 - - 70,868 13,229 55,627 833,371 - - - 902,227 13,229$ 1,796,625$ 3,608,070$ 6,049,753$ 952,845$ 287,423$ 31,947,433$ 13,229$ 132,800$ -$ 294,143$ 215$ 106$ 601,682$ - 35,302 - 3,015 - - 38,317 1,352 - - - - - 592,127 - - - 97,210 - - 97,210 13,229 - - - - - 13,229 27,810 168,102 - 394,368 215 106 1,342,565 - - 3,608,070 5,655,385 952,630 287,317 29,608,355 - 1,628,523 - - - - 1,628,523 (14,581) - - - - - (632,010) (14,581) 1,628,523 3,608,070 5,655,385 952,630 287,317 30,604,868 13,229$ 1,796,625$ 3,608,070$ 6,049,753$ 952,845$ 287,423$ 31,947,433$ 133Marana Regular Town Council Meeting February 7, 2023 Page 160 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 2022 Northwest Transportation Impact Fees Northeast Transportation Impact Fees South Transportation Impact Fees Park Impact Fees Revenues: Sales tax -$ -$ -$ -$ Property tax - - - - Intergovernmental - - - - Licenses, fees & permits 591,130 1,010,036 5,014,519 2,818,792 Contributions - - - - Investment income Interest earnings 304 - 47,136 3,960 Change in fair value of investments - - (67,455) - Total revenues 591,434 1,010,036 4,994,200 2,822,752 Expenditures: Current - General government - - - - Highways and streets - 64,365 - - Economic and community development - - - - Culture and recreation - - - 1,290 Capital outlay 8,382 8,382 441,647 55,317 Total expenditures 8,382 72,747 441,647 56,607 Excess (deficiency) of revenues over expenditures 583,052 937,289 4,552,553 2,766,145 Other financing sources (uses): Face value of bonds issued - - - - Refunding bonds issued - - - - Premium on bonds issued - - - - Transfers out - (601,125) (619,500) - Total other financing sources (uses) - (601,125) (619,500) - Change in fund balances 583,052 336,164 3,933,053 2,766,145 Fund balances (deficits), beginning of year 649,497 (953,593) 8,043,516 3,129,690 Fund balances (deficits), end of year 1,232,549$ (617,429)$ 11,976,569$ 5,895,835$ 134Marana Regular Town Council Meeting February 7, 2023 Page 161 of 339 PAG/RTA Capital Downtown Reinvestment Sales Tax Capital Projects Fund Other Capital Projects Gladden Farms Capital Saguaro Springs Capital Totals -$ 447,265$ 3,608,070$ -$ -$ -$ 4,055,335$ - - - - 114,690 67,235 181,925 4,500 - - 5,000,000 - - 5,004,500 - - - 275,766 - - 9,710,243 - - - 32,224 - - 32,224 - - - 18,760 - - 70,160 - - - (11,124) - - (78,579) 4,500 447,265 3,608,070 5,315,626 114,690 67,235 18,975,808 - - - - 2,715 1,357 4,072 1,352 - - 51,705 - - 117,422 - 2,603 - - - 2,603 - - - - - - 1,290 15,229 340,673 - 547,416 - - 1,417,046 16,581 343,276 - 599,121 2,715 1,357 1,542,433 (12,081) 103,989 3,608,070 4,716,505 111,975 65,878 17,433,375 - - - - - - - - - - - - - - - - - - - - - (25,616) - - (1,246,241) - - (25,616) - - (1,246,241) (12,081) 103,989 3,608,070 4,690,889 111,975 65,878 16,187,134 (2,500) 1,524,534 - 964,496 840,655 221,439 14,417,734 (14,581)$ 1,628,523$ 3,608,070$ 5,655,385$ 952,630$ 287,317$ 30,604,868$ 135Marana Regular Town Council Meeting February 7, 2023 Page 162 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL – NORTHWEST TRANSPORTATION IMPACT FEES Year Ended June 30, 2022 Northwest Transportation Impact Fees Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Licenses, fees & permits 310,780$ 310,780$ 591,130$ 280,350$ Investment income - - 304 304 Total revenues 310,780 310,780 591,434 280,654 Expenditures: Current - Highways and streets - - - - Capital outlay 23,754 23,754 8,382 15,372 Total expenditures 23,754 23,754 8,382 15,372 Excess (deficiency) of revenues over expenditures 287,026 287,026 583,052 296,026 Other financing sources (uses): Transfers out - - - - Total other financing sources (uses)- - - - Change in fund balances 287,026 287,026 583,052 296,026 Fund balances (deficits), July 1, 2021 - - 649,497 649,497 Fund balances (deficits), June 30, 2022 287,026$ 287,026$ 1,232,549$ 945,523$ 136Marana Regular Town Council Meeting February 7, 2023 Page 163 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL – NORTHEAST TRANSPORTATION IMPACT FEES Year Ended June 30, 2022 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Licenses, fees & permits 768,518$ 768,518$ 1,010,036$ 241,518$ Investment income - - - - Total revenues 768,518 768,518 1,010,036 241,518 Expenditures: Current - Highways and streets 8,582 8,582 64,365 (55,783) Capital outlay 23,754 23,754 8,382 15,372 Total expenditures 32,336 32,336 72,747 (40,411) Excess (deficiency) of revenues over expenditures 736,182 736,182 937,289 201,107 Other financing sources (uses): Transfers out (601,583) (601,583) (601,125) 458 Total other financing sources (uses)(601,583) (601,583) (601,125) 458 Change in fund balances 134,599 134,599 336,164 201,565 Fund balances (deficits), July 1, 2021 - - (953,593) (953,593) Fund balances (deficits), June 30, 2022 134,599$ 134,599$ (617,429)$ (752,028)$ Northeast Transportation Impact Fees 137Marana Regular Town Council Meeting February 7, 2023 Page 164 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL – SOUTH TRANSPORTATION IMPACT FEES Year Ended June 30, 2022 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Licenses, fees & permits 856,746$ 856,746$ 5,014,519$ 4,157,773$ Investment income - - 47,136 47,136 Change in fair value of investments - - (67,455) (67,455) Total revenues 856,746 856,746 4,994,200 4,137,454 Expenditures: Current - Highways and streets - - - - Capital outlay 5,573,071 5,573,071 441,647 5,131,424 Total expenditures 5,573,071 5,573,071 441,647 5,131,424 Excess (deficiency) of revenues over expenditures (4,716,325) (4,716,325) 4,552,553 9,268,878 Other financing sources (uses): Transfers out (619,972) (619,972) (619,500) 472 Total other financing sources (uses)(619,972) (619,972) (619,500) 472 Change in fund balances (5,336,297) (5,336,297) 3,933,053 9,269,350 Fund balances (deficits), July 1, 2021 - - 8,043,516 8,043,516 Fund balances (deficits), June 30, 2022 (5,336,297)$ (5,336,297)$ 11,976,569$ 17,312,866$ South Transportation Impact Fees 138Marana Regular Town Council Meeting February 7, 2023 Page 165 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL – PARK IMPACT FEES Year Ended June 30, 2022 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Intergovernmental -$ -$ -$ -$ Licenses, fees & permits 739,777 739,777 2,818,792 2,079,015 Investment income - - 3,960 3,960 Total revenues 739,777 739,777 2,822,752 2,082,975 Expenditures: Current - Culture and recreation 12,900 12,900 1,290 11,610 Capital outlay 2,174,289 2,174,289 55,317 2,118,972 Total expenditures 2,187,189 2,187,189 56,607 2,130,582 Excess (deficiency) of revenues over expenditures (1,447,412) (1,447,412) 2,766,145 4,213,557 Other financing sources: Transfers in - - - - Total other financing sources - - - - Change in fund balances (1,447,412) (1,447,412) 2,766,145 4,213,557 Fund balances (deficits), July 1, 2021 - - 3,129,690 3,129,690 Fund balances (deficits), June 30, 2022 (1,447,412)$ (1,447,412)$ 5,895,835$ 7,343,247$ Park Impact Fees 139Marana Regular Town Council Meeting February 7, 2023 Page 166 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - PAG CAPITAL Year Ended June 30, 2022 PAG Capital Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Intergovernmental 939,000$ 939,000$ 4,500$ (934,500)$ Total revenues 939,000 939,000 4,500 (934,500) Expenditures: Current - Highways and streets - - 1,352 (1,352) Capital outlay 956,500 956,500 15,229 941,271 Total expenditures 956,500 956,500 16,581 939,919 Excess (deficiency) of revenues over expenditures (17,500) (17,500) (12,081) 5,419 Other financing sources (uses): Transfers out - - - - Total other financing sources (uses)- - - - Change in fund balances (17,500) (17,500) (12,081) 5,419 Fund balances (deficits), July 1, 2021 - - (2,500) (2,500) Fund balances (deficits), June 30, 2022 (17,500)$ (17,500)$ (14,581)$ 2,919$ 140Marana Regular Town Council Meeting February 7, 2023 Page 167 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL – DOWNTOWN REINVESTMENT Year Ended June 30, 2022 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Sales tax 228,500$ 228,500$ 447,265 218,765$ Total revenues 228,500 228,500 447,265 218,765 Expenditures: Current - Economic and community development 425,000 345,000 2,603 342,397 Capital outlay 333,555 413,555 340,673 72,882 Total expenditures 758,555 758,555 343,276 415,279 Excess (deficiency) of revenues over expenditures (530,055) (530,055) 103,989 634,044 Other financing sources (uses): Transfers in - - - - Total other financing sources (uses)- - - - Change in fund balances (530,055) (530,055) 103,989 634,044 Fund balances (deficits), July 1, 2021 - - 1,524,534 (1,524,534) Fund balances (deficits), June 30, 2022 (530,055)$ (530,055)$ 1,628,523$ (890,490)$ Downtown Reinvestment 141Marana Regular Town Council Meeting February 7, 2023 Page 168 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL – SALES TAX CAPITAL PROJECT FUND Year Ended June 30, 2022 Sales Tax Captial Projects Other Captial Projects Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Sales tax -$ -$ 3,608,070$ 3,608,070$ Total revenues - - 3,608,070 3,608,070 Expenditures: Capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 3,608,070 3,608,070 Fund balances (deficits), July 1, 2021 - - - - Fund balances (deficits), June 30, 2022 -$ -$ $- - $ 142 3,608,070 Marana Regular Town Council Meeting February 7, 2023 Page 169 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -OTHER CAPITAL PROJECTS Year Ended June 30, 2022 Other Captial Projects Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Intergovernmental 8,510,000$ 8,510,000$ 5,000,000$ (3,510,000)$ Licenses, fees & permits 250,000 250,000 275,766 25,766 Contributions 35,000 35,000 32,224 (2,776) Investment income - - 18,760 18,760 Change in fair value of investments - - (11,124) (11,124) Total revenues 8,795,000 8,795,000 5,315,626 (3,468,250) Expenditures: Highways and streets 35,000 35,000 51,705 (16,705) Culture and recreation - - - - Capital outlay 11,129,149 11,129,149 547,416 10,581,733 Total expenditures 11,164,149 11,164,149 599,121 10,565,028 Excess (deficiency) of revenues over (2,369,149) (2,369,149) 4,716,505 7,096,778 expenditures Other financing sources (uses): Transfers in - - (1,673,243) (1,673,243) Transfers out - - 1,647,627 1,647,627 Total other financing sources (uses) - - (25,616) (25,616) Changes in fund balances (2,369,149) (2,369,149) 4,690,889 7,071,162 Fund balances (deficits), July 1, 2021 - - 964,496 964,496 Fund balances (deficits), June 30, 2022 (2,369,149)$ (2,369,149)$ $ 5,655,385 8,035,658$ 143Marana Regular Town Council Meeting February 7, 2023 Page 170 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL – GLADDEN FARMS COMMUNITY FACILITIES DISTRICT CAPITAL Year Ended June 30, 2022 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property tax 115,361$ 115,361$ 114,690$ (671)$ Total revenues 115,361 115,361 114,690 (671) Expenditures: Current - General government 945,739 945,739 2,715 943,024 Capital outlay - - - - Total expenditures 945,739 945,739 2,715 943,024 Excess (deficiency) of revenues over expenditures (830,378) (830,378) 111,975 942,353 Other financing sources (uses): Transfers out - - - - Total other financing sources (uses)- - - - Change in fund balances (830,378) (830,378) 111,975 942,353 Fund balances (deficits), July 1, 2021 - - 840,655 840,655 Fund balances (deficits), June 30, 2022 (830,378)$ (830,378)$ 952,630$ 1,783,008$ Gladden Farms Community Facilities District Capital 144Marana Regular Town Council Meeting February 7, 2023 Page 171 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL – SAGUARO SPRINGS COMMUNITY FACILITIES DISTRICT CAPITAL Year Ended June 30, 2022 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property tax 67,035$ 67,035$ 67,235$ 200$ Contributions - - - - Total revenues 67,035 67,035 67,235 200 Expenditures: Current - General government 274,500 274,500 1,357 273,143 Capital outlay - - - - Debt service - Bond issuance costs - - - - Total expenditures 274,500 274,500 1,357 273,143 Excess (deficiency) of revenues over expenditures (207,465) (207,465) 65,878 273,343 Other financing sources (uses): Bond proceeds - - - - Total other financing sources (uses)- - - - Change in fund balances (207,465) (207,465) 65,878 273,343 Fund balances (deficits), July 1, 2021 - - 221,439 221,439 Fund balances (deficits), June 30, 2022 (207,465)$ (207,465)$ 287,317$ 494,782$ Saguaro Springs Capital 145Marana Regular Town Council Meeting February 7, 2023 Page 172 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 173 of 339 NON-MAJOR DEBT SERVICE FUNDS Debt Service Funds are created to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. 2013 Bond Debt Service Fund – This fund accounts for the accumulation of resources and payment of principal and interest on the series 2013 revenue bonds. The Town has pledged Town sales tax revenue and state shared revenues to make the required payments for this series. 2014 Bond Debt Service Fund – This fund accounts for the accumulation of resources and payment of principal and interest on the series 2014 revenue bonds. The Town has pledged Town sales tax revenue and state shared revenues to make the required payments for this series. 2017 Bond Debt Service Fund – This fund accounts for the accumulation of resources and payment of principal and interest on the series 2017 revenue bonds. The Town has pledged Town sales tax revenue and state shared revenues to make the required payments for this series. Gladden Farms Debt Service Fund – This fund accounts for the accumulation of resources and payment of principal and interest on the Gladden Farms general obligation bonds. Saguaro Springs Debt Service Fund – This fund accounts for the accumulation of resources and payment of principal and interest on the Saguaro Springs general obligation bonds. Marana Regular Town Council Meeting February 7, 2023 Page 174 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR DEBT SERVICE FUNDS COMBINING BALANCE SHEET Year Ended June 30, 2022 2013 Bond Debt Service 2014 Bond Debt Service 2017 Bond Debt Service Gladden Farms Debt Service Saguaro Springs Debt Service Totals ASSETS Property taxes receivable -$ -$ -$ 10,404$ 8,047$ 18,451$ Interest receviable 857 - - - - 857 Restricted cash and investments 2,503,550 768,354 2,242,500 764,404 576,304 6,855,112 Total assets 2,504,407$ 768,354$ 2,242,500$ 774,808$ 584,351$ 6,874,420$ LIABILITIES AND FUND BALANCES Liabilities: Total liabilities - - - - - - FUND BALANCES Restricted 2,504,407 768,354 2,242,500 774,808 584,351 6,874,420 Total fund balances 2,504,407 768,354 2,242,500 774,808 584,351 6,874,420 Total liabilities and fund balances 2,504,407$ 768,354$ 2,242,500$ 774,808$ 584,351$ 6,874,420$ 148Marana Regular Town Council Meeting February 7, 2023 Page 175 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 2022 2013 Bond Debt Service 2014 Bond Debt Service 2017 Bond Debt Service Gladden Farms Debt Service Saguaro Springs Debt Service Totals Revenues: Property Taxes -$ -$ -$ 955,770$ 560,273$ 1,516,043$ Contributions - - - 768 - 768 Investment income Interest earnings 859 1 - 17 - 877 Total revenues 859 1 - 956,555 560,273 1,517,688 Expenditures: Capital Outlay - - - 4,300,000 2,627,553 6,927,553 Debt service - Principal retirement 1,860,000 715,000 1,290,000 450,000 150,000 4,465,000 Interest and fiscal charges 1,166,300 77,824 799,250 452,800 223,452 2,719,626 Bond Issuance Costs - - - 254,214 256,551 510,765 Total expenditures 3,026,300 792,824 2,089,250 5,457,014 3,257,556 14,622,944 Excess (deficiency) of revenues over expenditures (3,025,441) (792,823) (2,089,250) (4,500,459) (2,697,283) (13,105,256) Other financing sources (uses): Issuance of debt - - - 4,080,000 2,720,000 6,800,000 Premium on bonds issued - - - 530,895 166,629 697,524 Transfers in 3,067,089 803,707 2,625,000 - - 6,495,796 Total other financing sources (uses)3,067,089 803,707 2,625,000 4,610,895 2,886,629 13,993,320 Change in fund balances 41,648 10,884 535,750 110,436 189,346 888,064 Fund balances, beginning of year 2,462,759 757,470 1,706,750 664,372 395,005 5,986,356 Fund balances, end of year 2,504,407$ 768,354$ 2,242,500$ 774,808$ 584,351$ 6,874,420$ 149Marana Regular Town Council Meeting February 7, 2023 Page 176 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR DEBT SERVICE FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – 2013 BOND DEBT SERVICE Year Ended June 30, 2022 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property Taxes -$ -$ -$ -$ Contributions - - - - Investment income - - 859 859 Total revenues - - 859 859 Expenditures: Debt service - Principal retirement 1,860,000 1,860,000 1,860,000 - Interest and fiscal charges 1,166,300 1,166,300 1,166,300 - Total expenditures 3,026,300 3,026,300 3,026,300 - Excess (deficiency) of revenues over expenditures (3,026,300) (3,026,300) (3,025,441) 859 Other financing sources (uses): Transfers in 3,069,100 3,069,100 3,067,089 2,011 Transfers out - - - - Total other financing sources (uses)3,069,100 3,069,100 3,067,089 2,011 Change in fund balances 42,800 42,800 41,648 (1,152) Fund balances (deficits), July 1, 2021 - - 2,462,759 2,462,759 Fund balances (deficits), June 30, 2022 42,800$ 42,800$ 2,504,407$ 2,461,607$ 2013 Bond Debt Service 150Marana Regular Town Council Meeting February 7, 2023 Page 177 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR DEBT SERVICE FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – 2014 BOND DEBT SERVICE Year Ended June 30, 2022 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property Taxes -$ -$ -$ -$ Contributions - - -- Investment income - - 1 1 Total revenues - - 1 1 Expenditures: Debt service - Principal retirement 715,000 715,000 715,000 - Interest and fiscal charges 77,825 77,825 77,824 1 Total expenditures 792,825 792,825 792,824 1 Excess (deficiency) of revenues over expenditures (792,825) (792,825) (792,823) 2 Other financing sources (uses): Transfers in 803,708 803,708 803,707 1 Transfers out - - - - Total other financing sources (uses)803,708 803,708 803,707 1 Change in fund balances 10,883 10,883 10,884 1 Fund balances (deficits), July 1, 2021 - - 757,470 757,470 Fund balances (deficits), June 30, 2022 10,883$ 10,883$ 768,354$ 757,471$ 2014 Bond Debt Service 151Marana Regular Town Council Meeting February 7, 2023 Page 178 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR DEBT SERVICE FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – 2017 BOND DEBT SERVICE Year Ended June 30, 2022 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property Taxes -$ -$ -$ -$ Contributions - - - - Investment income - - - - Total revenues - - - - Expenditures: Debt service - Principal retirement 1,290,000 1,290,000 1,290,000 - Interest and fiscal charges 799,250 799,250 799,250 - Total expenditures 2,089,250 2,089,250 2,089,250 - Excess (deficiency) of revenues over expenditures (2,089,250) (2,089,250) (2,089,250) - Other financing sources (uses): Transfers in 2,627,000 2,627,000 2,625,000 2,000 Transfers out - - - - Total other financing sources (uses)2,627,000 2,627,000 2,625,000 2,000 Change in fund balances 537,750 537,750 535,750 (2,000) Fund balances (deficits), July 1, 2021 - - 1,706,750 1,706,750 Fund balances (deficits), June 30, 2022 537,750$ 537,750$ 2,242,500$ 1,704,750$ 2017 Bond Debt Service 152Marana Regular Town Council Meeting February 7, 2023 Page 179 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR DEBT SERVICE FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – GLADDEN FARMS DEBT SERVICE Year Ended June 30, 2022 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property Taxes 961,335$ 961,335$ 955,770$ (5,565)$ Contributions 70,000 70,000 768 (69,232) Investment income - - 17 17 Total revenues 1,031,335 1,031,335 956,555 (74,780) Expenditures: Capital Outlay 4,000,000 4,000,000 4,300,000 (300,000) Debt service - Principal retirement 450,000 450,000 450,000 - Interest and fiscal charges 468,163 468,163 452,800 15,363 Bond Issuance Costs 250,000 250,000 254,214 (4,214) Total expenditures 5,168,163 5,168,163 5,457,014 (288,851) Excess (deficiency) of revenues over expenditures (4,136,828) (4,136,828) (4,500,459) (363,631) Other financing sources (uses): Issuance of debt 4,250,000 4,250,000 4,080,000 170,000 Premium on bonds issued - - 530,895 (530,895) Total other financing sources (uses)4,250,000 4,250,000 4,610,895 (360,895) Change in fund balances 113,172 113,172 110,436 (2,736) Fund balances (deficits), July 1, 2021 - - 664,372 664,372 Fund balances (deficits), June 30, 2022 113,172$ 113,172$ 774,808$ 661,636$ Gladden Farms Debt Service 153Marana Regular Town Council Meeting February 7, 2023 Page 180 of 339 TOWN OF MARANA, ARIZONA NON-MAJOR DEBT SERVICE FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – SAGUARO SPRINGS DEBT SERVICE Year Ended June 30, 2022 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property Taxes 558,622$ 558,622$ 560,273$ 1,651$ Contributions - - - - Investment income - - - - Total revenues 558,622 558,622 560,273 1,651 Expenditures: Capital Outlay 3,200,000 3,200,000 2,627,553 572,447 Debt service - Principal retirement 180,000 180,000 150,000 30,000 Interest and fiscal charges 378,622 378,622 223,452 155,170 Bond Issuance Costs 225,000 225,000 256,551 (31,551) Total expenditures 3,983,622 3,983,622 3,257,556 726,066 Excess (deficiency) of revenues over expenditures (3,425,000) (3,425,000) (2,697,283) 727,717 Other financing sources (uses): Issuance of debt 3,425,000 3,425,000 2,720,000 705,000 Premium on bonds issued - - 166,629 (166,629) Total other financing sources (uses)3,425,000 3,425,000 2,886,629 538,371 Change in fund balances - - 189,346 189,346 Fund balances (deficits), July 1, 2021 - - 395,005 395,005 Fund balances (deficits), June 30, 2022 -$ -$ 584,351$ 584,351$ Saguaro Springs Debt Service 154Marana Regular Town Council Meeting February 7, 2023 Page 181 of 339 STATISTICAL SECTION Marana Regular Town Council Meeting February 7, 2023 Page 182 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 183 of 339 TOWN OF MARANA, ARIZON STATISTICAL SECTION June 30, 2022 Fiscal Trends These schedules contain trend information to help users understand and assess how the Town's financial position has changed over time. Revenue Capacity These schedules contain information to help users understand and assess the Town's local revenue source, the property tax. 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. 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 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. Marana Regular Town Council Meeting February 7, 2023 Page 184 of 339 TOWN OF MARANA NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (Accrual basis of accounting) 2013 2014 2015 2016 (as restated) Governmental activities Net investment in capital assets 184,949$ 189,171$ 190,297$ 193,845$ Restricted 62,437 58,820 36,418 43,127 Unrestricted 1,384 (283) (4,283) (6,492) Total governmental activities net position 248,770 247,708 222,432 230,480 Business-type activities Net investment in capital assets 111,045 109,111 109,649 112,357 Restricted 219 293 365 365 Unrestricted (2,677) (208)984 1,313 Total business-type activities net position 108,587 109,196 110,998 114,035 Primary government Net investment in capital assets 295,994 298,282 299,946 306,202 Restricted 62,656 59,113 36,783 43,492 Unrestricted (1,293) (491) (3,299) (5,179) Total primary government net position 357,357$ 356,904$ 333,430$ 344,515$ 158Marana Regular Town Council Meeting February 7, 2023 Page 185 of 339 2017 2018 2019 2020 2021 2022 (as restated)(as restated) 210,137$ 236,208$ 243,685$ 244,996$ 243,692$ 229,747$ 31,163 17,242 19,985 21,837 21,675 34,402 5,119 16,272 16,827 27,323 48,120 88,232 246,419 269,722 280,497 294,156 313,487 352,381 101,524 95,777 97,435 102,911 106,166 110,452 365 365 366 770 1,128 818 16,319 (4,285) (2,176) 2,332 7,673 15,393 118,208 91,857 95,625 106,013 114,967 126,663 311,661 331,985 341,120 347,907 349,858 340,199 31,528 17,607 20,351 22,607 22,803 35,220 21,439 11,987 14,651 29,655 55,793 103,625 364,628$ 361,579$ 376,122$ 400,169$ 428,454$ 479,044$ 159Marana Regular Town Council Meeting February 7, 2023 Page 186 of 339 TOWN OF MARANA NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (Accrual basis of accounting) 2013 2014 2015 2016 General Revenues and Other Changes in Net Position Governmental activities: General revenues City sales taxes 24,768$ 26,226$ 28,059$ 35,442$ Property taxes 447 421 442 482 Franchise fees 349 377 401 447 State shared revenues 7,714 8,273 8,820 9,039 Investment income (loss)152 171 149 173 Miscellaneous 737 854 813 676 Gain on sale of assets 36 - 116 - Transfers (15,912) (2,384) (404) (2,177) Total governmental activities 18,291 33,938 38,396 44,082 Business-type activities: General revenues Investment income 2 1 9 16 Miscellaneous 19 39 19 19 Transfers 15,911 2,384 404 2,177 Special item (1,326) - - - Total business-type activities 14,606 2,424 432 2,212 Total primary government 32,897 36,362 38,828 46,294 Change in Net Position Governmental activities (12,417) (1,062) 2,529 8,049 Business-type activities 13,431 609 895 3,036 Total primary government 1,014$ (453)$ 3,424$ 11,085$ 160Marana Regular Town Council Meeting February 7, 2023 Page 187 of 339 2017 2018 2019 2020 2021 2022 37,500$ 41,689$ 41,680$ 40,705$ 42,847$ 52,112$ 509 553 834 1,161 1,420 1,698 488 507 513 549 585 608 10,619 11,506 12,013 13,098 15,372 16,513 238 663 1,954 1,965 484 (218) 744 885 1,163 1,001 1,002 956 - - - - - 77 (2,878) 1,875 (688) (136) 5 367 47,220 57,678 57,469 58,343 61,715 72,113 43 187 77 57 4 9 54 30 21 364 123 370 2,878 (1,875) 688 136 (5) (367) - - - - - - 2,975 (1,658) 786 557 122 12 50,195 56,020 58,255 58,900 61,837 72,125 15,939 23,302 10,776 13,658 19,330 38,894 4,173 3,244 4,619 10,388 8,955 11,697 20,112$ 26,546$ 15,395$ 24,046$ 28,285$ 50,557$ 161Marana Regular Town Council Meeting February 7, 2023 Page 188 of 339 TOWN OF MARANA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (Accrual basis of accounting) 2013 2014 2015 2016 Expenses Governmental activities: General government 9,532$ 10,662$ 14,707$ 17,531$ Public safety 11,777 12,134 14,324 14,423 Highways and streets 18,327 19,053 18,522 22,659 Health & Welfare 23 23 - - Culture & recreation 3,831 3,131 4,433 3,422 Economic & community development 4,123 4,691 4,796 4,779 Interest on long-term debt 4,312 4,543 4,106 3,962 Total governmental activities expenses 51,925 54,237 60,888 66,776 Business-type activities: Airport 1,179 1,197 1,289 1,829 Wastewater 2,599 2,756 3,431 3,662 Water 3,779 5,244 4,150 4,405 Total business-type activities expenses 7,557 9,197 8,870 9,896 Total primary government expenses 59,482$ 63,434$ 69,758$ 76,672$ Program Revenues Governmental activities: Charges for services: General government 975$ 941$ 4,490$ 4,787$ Culture and recreation 216 200 305 265 Economic & community development 3,906 3,386 4,585 4,027 Health and welfare - - - - Operating grants and contributions 3,747 4,442 4,360 4,507 Capital grants and contributions 12,373 10,268 11,281 17,157 Total government activities program revenues 21,217 19,237 25,021 30,743 Business-type activities: Charges for services: Airport 239 248 239 247 Wastewater 730 834 933 1,016 Water 3,455 3,766 4,146 4,243 Capital grants and contributions 1,958 2,534 4,015 5,214 Total business-type activity program revenues 6,382 7,382 9,333 10,720 Total primary government program revenues 27,599 26,619 34,354 41,463 Net (expense)/revenue Governmental activities (30,708) (35,000) (35,867) (36,033) Business-type activities (1,175) (1,815) 463 824 Total primary government net expense (31,883)$ (36,815)$ (35,404)$ (35,209)$ 162Marana Regular Town Council Meeting February 7, 2023 Page 189 of 339 2017 2018 2019 2020 2021 2022 19,393$ 18,492$ 23,846$ 21,040$ 22,578$ 28,539$ 16,736 16,114 16,059 19,981 19,223 17,852 40,172 27,893 21,629 25,004 25,729 25,481 278 236 453 442 461 489 6,006 5,147 5,294 6,122 5,861 6,950 4,902 4,328 4,076 4,174 4,159 4,113 2,335 3,077 1,858 2,485 2,346 2,258 89,822 75,287 73,215 79,248 80,357 85,682 1,772 1,816 1,395 1,393 1,645 1,803 3,983 4,598 5,276 4,136 5,346 5,104 5,368 5,979 6,178 6,750 7,796 9,752 11,123 12,393 12,849 12,279 14,787 16,692 100,945$ 87,680$ 86,064$ 91,527$ 95,144$ 102,374$ 4,909$ 5,073$ 5,007$ 5,453$ 5,863$ 5,580$ 287 324 317 197 179 277 4,355 4,993 5,260 5,396 6,626 10,935 - - - - - 83 4,619 4,665 2,259 8,470 14,465 14,711 44,371 25,856 13,679 15,047 10,839 20,877 58,541 40,911 26,522 34,563 37,972 52,463 251 294 329 373 420 436 1,065 1,502 1,626 1,873 2,365 2,839 5,064 5,609 5,750 6,260 7,373 8,022 5,941 9,890 8,977 13,604 13,462 17,046 12,321 17,295 16,682 22,110 23,620 28,343 70,862 58,206 43,204 56,673 61,592 80,806 (31,281) (34,376) (46,693) (44,685) (42,385) (33,219) 1,198 4,902 3,833 9,831 8,833 11,651 (30,083)$ (29,474)$ (42,860)$ (34,854)$ (33,552)$ (21,568)$ 163Marana Regular Town Council Meeting February 7, 2023 Page 190 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 191 of 339 TOWN OF MARANA FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting) 2013 2014 2015 2016 2017 General Fund Nonspendable 2,803$ 2,540$ 2,282$ 2,418$ 2,367$ Unassigned 18,115 21,123 22,309 20,425 22,640 Total general fund 20,918 23,663 24,591 22,843 25,007 All other governmental funds Nonspendable -$ 33$ -$ 3$ 1$ Restricted 47,616 40,774 40,771 48,486 49,960 Committed - - - - - Unassigned (444) (472) (863) (525)(1,908) Total all other governmental funds 47,172$ 40,335$ 39,908$ 47,964$ 48,053$ Total fund balance of governmental funds 68,090$ 63,998$ 64,499$ 70,807$ 73,060$ 2018 2019 2020 2021 2022 General Fund Nonspendable 4,853$ 4,513$ 4,103$ 3,029$ 2,937$ Unassigned 24,735 32,043 42,008 68,327 95,638 Total general fund 29,588 36,556 46,111 71,356 98,575 All other governmental funds Nonspendable 261$ 1$ 4$ 13$ 6$ Restricted 44,989 42,068 31,001 29,108 47,569 Committed - - 14,862 13,970 20,802 Unassigned (2,405) (562) (873) (968)(632) Total all other governmental funds 42,845$ 41,507$ 44,994$ 42,123$ 67,745$ Total fund balance of governmental funds 72,433$ 78,063$ 91,105$ 113,479$ 166,320$ Source: Governmental Fund Statements 165Marana Regular Town Council Meeting February 7, 2023 Page 192 of 339 TOWN OF MARANA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting) (Amounts expressed in thousands) 2013 2014 2015 2016 Revenues Sales taxes 24,768$ 26,226$ 28,058$ 35,442$ Property taxes 497 424 447 489 Intergovernmental revenues 18,000 12,732 14,927 20,537 Licenses, fees and permits 8,586 6,549 7,048 6,243 Fines, forfeitures and penalties 871 831 889 750 Charges for services 379 509 692 500 Lease Income 105 99 96 90 Special assessments 2,337 2,176 2,050 2,129 Contributions 589 1,098 583 1,216 Investment earnings 152 171 149 173 Miscellaneous 804 927 853 376 Total revenues 57,088 51,742 55,792 67,945 Expenditures General government 7,860 8,953 9,652 12,017 Public safety 12,067 11,952 13,886 14,068 Highways and streets 4,026 4,214 5,441 5,796 Health and welfare - - - - Economic and community development 4,479 4,508 4,351 4,146 Culture and recreation 2,859 3,195 3,598 3,710 Capital outlay 3,700 4,453 9,885 11,840 Debt service Principal 4,177 10,338 3,412 3,992 Interest 4,408 4,522 4,491 4,212 Other charges 521 97 -- Total expenditures 44,097 52,232 54,716 59,781 Excess of revenues over (under) expenditures 12,991 (490) 1,076 8,164 Fiscal Year 166Marana Regular Town Council Meeting February 7, 2023 Page 193 of 339 2017 2018 2019 2020 2021 2022 37,500$ 41,689$ 41,680$ 40,705$ 42,847$ 52,112$ 521 572 834 1,161 1,420 1,698 43,261 30,919 20,040 22,967 31,527 35,870 7,078 8,617 10,034 9,092 10,749 20,949 728 750 637 591 496 428 563 684 718 535 541 989 113 136 148 157 159 264 2,340 989 2,869 2,091 2,298 1,801 214 87 49 65 66 1,231 238 663 1,954 1,965 484 (218) 460 512 757 667 643 795 93,016 85,618 79,720 79,996 91,230 115,919 13,347 12,949 14,021 14,927 14,416 16,219 14,477 14,774 15,502 18,352 16,967 17,848 6,037 4,893 5,031 6,821 6,222 6,006 365 229 290 284 350 318 4,642 4,452 4,744 4,605 4,540 4,497 4,266 4,903 4,613 4,207 4,225 5,715 34,275 40,960 24,478 11,094 17,097 10,649 5,083 2,260 5,463 6,563 6,319 6,304 3,882 2,745 3,105 2,984 2,910 2,876 1,023 - 314 385 216 511 87,397 88,165 77,561 70,222 73,262 70,943 5,619 (2,547) 2,159 9,774 17,968 44,976 167Marana Regular Town Council Meeting February 7, 2023 Page 194 of 339 TOWN OF MARANA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting) (Amounts expressed in thousands) 2013 2014 2015 2016 Other financing sources (uses) Transfers in 19,700 14,155 6,380 6,498 Transfers out (35,611) (16,540) (6,955) (8,675) Proceeds from sale of capital assets 57 - - 321 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) 7,797 (10,052) (575) (1,856) Net change in fund balance 20,788$ (10,542)$ 501$ 6,308$ Debt service as a percentage of noncapital expenditures 27.0% 49.1% 19.5% 14.7% Fiscal Year 168Marana Regular Town Council Meeting February 7, 2023 Page 195 of 339 2017 2018 2019 2020 2021 2022 7,680 12,607 6,082 11,401 8,471 6,577 (10,558) (10,732) (6,770) (11,532) (8,467) (6,210) 45 46 226 135 132 - 178 - - - - - 42,065 - 3,845 3,195 4,155 6,800 4,089 - 88 69 115 698 (46,865) - -- - - (3,366) 1,921 3,471 3,268 4,406 7,865 2,253$ (626)$ 5,630$ 13,042$ 22,374$ 52,841$ 10.8% 6.5% 12.7% 17.6% 14.5% 16.0% 169Marana Regular Town Council Meeting February 7, 2023 Page 196 of 339 TOWN OF MARANA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS (Accrual basis of accounting) (Amounts expressed in thousands) Fiscal Year Sales Tax Highway User Revenue taxes Total 2022 52,112$ 4,271$ 56,383$ 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 Source: Statement of Revenues, Expenditures and Changes in Fund Balances 170Marana Regular Town Council Meeting February 7, 2023 Page 197 of 339 TOWN OF MARANA ASSESSED VALUE AND ESTIMATED ACTUAL OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (Amounts expressed in thousands) Fiscal Year Ended June 30 Tax Year Residential Property Commercial Property Less: Tax Exempt Real Property Net Assessed Value Total Direct Tax Rate Limited Full Cash Value Ratio of Net Assessed to Full Cash Value 2023 2022 517,595$ 246,095$ 44,801$ 718,889 8.4000 6,665,336 10.8% 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% Source: Pima County Assessor's Office Abstract of the Assessment Roll 171Marana Regular Town Council Meeting February 7, 2023 Page 198 of 339 TOWN OF MARANA PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS Fiscal Year Tax Year Pima County (General Fund) Road Tax County Library District Debt Service Flood Control District State Education Equalization Assistance Tax Flowing Wells School District Community College District Northwest Fire District Fire District Assistance 2022/23 2022 3.8764 - 0.5453 0.3200 0.3235 0.0000 6.5638 1.2878 3.1695 0.0384 2021/22 2021 3.8764 - 0.5353 0.4500 0.3335 0.4263 6.4855 1.2733 3.0495 0.0394 2020/21 2020 3.9220 - 0.5353 0.5200 0.3335 0.4426 6.6839 1.3359 2.9995 0.0416 2019/20 2019 3.9996 - 0.5353 0.6900 0.3335 0.4566 6.8539 1.3758 3.0049 0.0430 2018/19 2018 4.0696 - 0.5153 0.6900 0.3335 0.4741 6.8860 1.3983 3.0501 0.0441 2017/18 2017 4.2096 0.2500 0.5053 0.7000 0.3135 0.4875 6.7539 1.389 3.0734 0.0459 2016/17 2016 4.2896 - 0.5153 0.7000 0.3335 0.5010 6.8971 1.3733 2.9920 0.0468 2015/16 2015 4.3877 - 0.5153 0.7000 0.3135 0.5054 6.6292 1.3689 2.9138 0.0467 2014/15 2014 4.2779 - 0.4353 0.7000 0.3035 0.5089 6.6135 1.3344 2.9272 0.0472 2013/14 2013 3.6665 - 0.3753 0.7800 0.2635 0.5123 6.7146 1.2933 3.0213 0.0456 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 Vanderbilt Farms Community Facilities District Saguaro Springs Community Facilities District Total Direct Rates Total Direct & Overlapping Rates 2022/23 2022 0.1400 5.4689 21.7336 - 2.8000 2.8000 - 2.8000 8.4000 30.1336 2021/22 2021 0.1400 5.9491 22.5583 - 2.8000 2.8000 - 2.8000 8.4000 30.9583 2020/21 2020 0.1400 5.7594 22.7137 - 2.8000 2.8000 - 2.8000 8.4000 31.1137 2019/20 2019 0.1400 5.8650 23.2976 - 2.8000 2.8000 0.3000 2.8000 8.7000 31.9976 2018/19 2018 0.1400 6.0840 23.6850 - 2.4400 0.3000 0.3000 2.8000 5.8400 29.5250 2017/18 2017 0.1400 6.2334 24.1015 - 2.8000 0.3000 0.3000 0.3000 3.7000 27.8015 2016/17 2016 0.1400 6.3871 24.1757 - 2.8000 0.3000 0.3000 0.3000 3.7000 27.8757 2015/16 2015 0.1400 6.3370 23.8575 - 2.8000 0.3000 0.3000 0.3000 3.7000 27.5575 2014/15 2014 0.1400 6.2288 23.5167 - 2.8000 0.3000 0.3000 0.3000 3.7000 27.2167 2013/14 2013 0.1400 6.0085 22.8209 - 2.8000 0.3000 0.3000 0.3000 3.7000 26.5209 Notes: Source: Pima County 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 $100 of the net assessed value and are set by the County Board of Supervisors or governing board of taxing jurisdiction. 1) The Flowing Wells School District (a school district of approximately (13 miles) intersects approximately one mile of the Town's boundaries. Marana School District covers the remaining approximate 69 miles of the Town's boundaries. 172Marana Regular Town Council Meeting February 7, 2023 Page 199 of 339 TOWN OF MARANA PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO (Amounts expressed in thousands) Taxpayer Full Cash Value Rank Percentage of Total Taxable Assessed Value Full Cash Value Rank Percentage of Total Taxable Assessed Value UNISOURCE ENERGY CORPORATION 13,468 1 26.7%- -- HSL COTTONWOOD RC HOTEL LLC 6,895 2 13.7%- -- TUCSON PREMIUM OUTLETS LLC 6,852 3 13.6%- -- SOUTHWEST GAS CORPORATION 4,021 4 8.0%- -- TRICO ELECTRIC COOP INC 3,799 5 7.5%- -- HSL ENCANTADA CONTINENTAL RESERVE LC 3,518 6 7.0%- -- SMITHS FOOD AND DRUG CENTERS 3,384 7 6.7%1,907 -19.1% WAL-MART STORES INC 3,002 8 6.0%- -- UNION PACIFIC RAILROAD #2,968 9 5.9%- -- MARANA MARKETPLACE PARTNERS LLC#2,519 10 5.0%- -- FIDELITY NATIONAL TITLE TR 60421 1,445 2 14.5% GLADDEN 25 LLC 1,180 3 11.8% WEINGARTEN NEWQUIST LLC 903 4 9.0% FIDELITY NATIONAL TITLE TR 60423 865 5 8.7% WALGREEN ARIZONA DRUG CO 795 6 8.0% AH4R 779 7 7.8% FIDELITY NATIONAL TITLE TR 60360 761 8 7.6% FREEDBERG BARRY & FREEDBERG BELLA 700 9 7.0% FIDELITY NATIONAL TITLE TR 60422 660 10 6.6% Totals 50,426$ 9,995$ Notes: 1) The Town of Marana does not impose a property tax. Source: Pima County Assessor's Office - IS Dept (Information System's Coordinator) 20132022 173Marana Regular Town Council Meeting February 7, 2023 Page 200 of 339 TOWN OF MARANA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (Amounts expressed in thousands) Collected within the Fiscal Year of the Levy Total Collections to Date Fiscal Year Ended June 30 Total Tax Levy for Fiscal Year Amount Percentage of Levy Amount Percentage of Levy 2022 1,702$ 1,695 99.59% 1,695 99.59% 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% 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 174Marana Regular Town Council Meeting February 7, 2023 Page 201 of 339 TOWN OF MARANA TANGERINE FARMS ROAD IMPROVEMENT DISTRICT All Active Assessments As of June 30, 2022 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 $27,387.83 $3,778,800.00 78,565 Commercial 242-B3-2 215-01-003W INTERNATIONAL CENTER TUCSON LLC & SECUNDUS TUCSON LLC 49,379.55 25,713.87 1,634,851.00 73,738 Commercial 242-11 215-01-011A Tangerine/I-10, LLC 164,906.77 85,873.43 5,020.00 242,954 Residential and Commercial 242-01 215-01-0130 VM Building Two Corporation 134,077.64 69,819.50 1,004,090.00 200,818 Residential and Commercial 242-02 215-01-0140 Southwest Gas Corporation 727,102.17 378,630.66 4,356,036.00 1,089,009 Commercial 242-03 215-01-0150 Tangerine/I-10, LLC 215,513.08 112,226.13 4,001.00 322,893 Residential and Commercial 242-04 215-01-0160 Tangerine/I-10, LLC 227,728.40 118,587.13 4,228.00 341,014 Residential and Commercial 242-05 215-01-0170 CTI, Inc.567,430.53 295,483.36 24,375.00 850,047 Commercial 242-06 215-01-0180 Tangerine/I-10, LLC 341,156.34 177,653.51 2,554,970.00 510,994 Residential and Commercial 242-07 215-01-0190 U-Haul International Inc.344,646.43 179,470.93 2,581,025.00 516,205 Commercial 242-08 215-01-0200 Tangerine/I-10, LLC 378,674.81 197,190.85 8,700.00 567,141 Residential and Commercial 242-09 215-01-0210 Tangerine/I-10, LLC 80,562.92 41,952.27 1,496.00 120,700 Residential and Commercial 242-10 215-01-0220 Tangerine/I-10, LLC 28,793.25 14,993.77 540.00 43,192 Residential and Commercial 242-12 215-01-0230 VM Building Two Corporation 38,681.84 20,143.15 1,100.00 58,054 Residential and Commercial 237 217-53-040A TOWN OF MARANA 71,959.10 37,471.94 34,000.00 1,019,740 Park 238/239-2 217-53-8090 GLADDEN 25 LLC 20,407.15 10,626.80 129,323.00 57,477 Residential and Commercial 238/239-3 217-53-8100 GLADDEN 25 LLC 21,784.14 11,343.86 138,042.00 61,352 Residential and Commercial 238/239-4 217-53-8110 GLADDEN 25 LLC 20,979.61 10,924.90 132,860.00 59,049 Residential and Commercial 238/239-5 217-53-8120 GLADDEN 25 LLC 18,999.25 9,893.65 120,382.00 53,503 Residential and Commercial 238/239-6 217-53-8130 GLADDEN 25 LLC 20,144.14 10,489.84 127,613.00 56,717 Residential and Commercial 238/239-7 217-53-8140 GLADDEN 25 LLC 15,456.22 8,048.66 97,929.00 43,524 Residential and Commercial 238/239-8 217-53-8150 GLADDEN 25 LLC 35,461.12 18,466.00 224,687.00 99,861 Residential and Commercial 238/239-9 217-53-8160 GLADDEN 25 LLC 32,830.94 17,096.36 184,870.00 92,435 Residential and Commercial 238/239-10 217-53-8170 GLADDEN 25 LLC 30,974.33 16,129.56 174,390.00 87,195 Residential and Commercial 230-3 217-54-0130 KB Home Tucson Inc.330,322.98 172,012.16 15,066.00 1,215,324 Residential and Commercial 230-4 217-54-0140 Northwest Medical Center 684,379.91 356,383.51 31,212.00 2,517,768 Hospital 230-8 217-54-0190 MERITAGE HOMES OF ARIZONA 358,566.94 186,719.89 16,351.00 1,318,997 Residential and Commercial 446 217-54-026A Gladden Phase II, LLC 268,326.10 139,727.93 232,650.00 675,616 Residential and Commercial 347 217-54-0570 Richmond American Homes 3,770.07 1,963.23 268,946.00 - Residential 175Marana Regular Town Council Meeting February 7, 2023 Page 202 of 339 553 217-54-2380 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 554 217-54-2390 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 555 217-54-2400 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 556 217-54-2410 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 557 217-54-2420 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 558 217-54-2430 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 559 217-54-2440 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 560 217-54-2450 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 561 217-54-2460 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 562 217-54-2470 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 563 217-54-2480 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 564 217-54-2490 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 565 217-54-2500 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 566 217-54-2510 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 567 217-54-2520 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 568 217-54-2530 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 569 217-54-2540 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 570 217-54-2550 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 571 217-54-2560 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 572 217-54-2570 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 573 217-54-2580 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 574 217-54-2590 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 575 217-54-2600 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 576 217-54-2610 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 577 217-54-2620 Pulte Home Company, LLC 3,193.65 1,663.05 30,435.00 - Residential 578 217-54-2630 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 579 217-54-2640 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 580 217-54-2650 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 581 217-54-2660 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 582 217-54-2670 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 583 217-54-2680 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 584 217-54-2690 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 585 217-54-2700 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 586 217-54-2710 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 587 217-54-2720 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 176Marana Regular Town Council Meeting February 7, 2023 Page 203 of 339 588 217-54-2730 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 589 217-54-2740 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 590 217-54-2750 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 591 217-54-2760 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 592 217-54-2770 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 593 217-54-2780 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 594 217-54-2790 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 595 217-54-2800 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 596 217-54-2810 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 597 217-54-2820 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 598 217-54-2830 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 599 217-54-2840 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 600 217-54-2850 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 601 217-54-2860 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 602 217-54-2870 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 603 217-54-2880 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 604 217-54-2890 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 605 217-54-2900 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 606 217-54-2910 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 607 217-54-2920 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 608 217-54-2930 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 609 217-54-2940 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 610 217-54-2950 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 611 217-54-2960 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 612 217-54-2970 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 613 217-54-2980 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 614 217-54-2990 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 615 217-54-3000 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 616 217-54-3010 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 617 217-54-3020 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 618 217-54-3030 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 619 217-54-3040 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 620 217-54-3050 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 621 217-54-3060 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 622 217-54-3070 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 177Marana Regular Town Council Meeting February 7, 2023 Page 204 of 339 623 217-54-3080 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 624 217-54-3090 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 625 217-54-3100 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 626 217-54-3110 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 627 217-54-3120 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 628 217-54-3130 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 629 217-54-3140 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 630 217-54-3150 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 631 217-54-3160 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 632 217-54-3170 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 633 217-54-3180 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 634 217-54-3190 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 635 217-54-3200 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 636 217-54-3210 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 637 217-54-3220 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 638 217-54-3230 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 639 217-54-3240 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 640 217-54-3250 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 641 217-54-3260 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 642 217-54-3270 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 643 217-54-3280 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 644 217-54-3290 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 645 217-54-3300 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 646 217-54-3310 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 647 217-54-3320 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 648 217-54-3330 Pulte Home Company, LLC 3,193.66 1,663.06 30,435.00 - Residential 826 217-54-342A Gladden Phase II, LLC 205,307.14 106,911.49 28,000.00 606,791 Residential and Commercial 825 217-54-342B Marana Unified School District 190,574.93 99,239.85 8,105.00 653,836 Residential and Commercial 1583 217-54-343A Gladden 2021, LLC 421,560.82 219,523.28 1,732,640.00 1,155,093 Residential and Commercial 1584 217-54-344A Gladden Phase II, LLC 139,574.21 72,681.77 0.00 - Residential and Commercial 1585 217-54-344B HSL Gladden Farms, LLC 202,752.92 105,581.41 0.00 - Residential and Commercial 455 217-54-3520 Richmond American Homes 3,029.41 1,577.53 30,435.00 - Residential 457 217-54-3540 Richmond American Homes 3,029.41 1,577.53 30,435.00 - Residential 491 217-54-3880 Richmond American Homes 3,029.41 1,577.53 30,435.00 - Residential 492 217-54-3890 Richmond American Homes 3,029.41 1,577.53 30,435.00 - Residential 178Marana Regular Town Council Meeting February 7, 2023 Page 205 of 339 494 217-54-3910 Richmond American Homes 3,029.41 1,577.53 30,435.00 - Residential 495 217-54-3920 Richmond American Homes 3,029.41 1,577.53 30,435.00 - Residential 496 217-54-3930 Richmond American Homes 3,029.41 1,577.53 30,435.00 - Residential 510 217-54-4070 Richmond American Homes 3,029.41 1,577.53 244,043.00 - Residential 544 217-54-4410 Richmond American Homes 3,029.42 1,577.54 30,435.00 - Residential 547 217-54-4440 Richmond American Homes 3,029.42 1,577.54 30,435.00 - Residential 551 217-54-4480 Richmond American Homes 3,029.42 1,577.54 233,062.00 - Residential 827 217-54-5730 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 828 217-54-5740 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 829 217-54-5750 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 830 217-54-5760 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 831 217-54-5770 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 832 217-54-5780 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 833 217-54-5790 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 834 217-54-5800 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 835 217-54-5810 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 836 217-54-5820 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 837 217-54-5830 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 838 217-54-5840 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 839 217-54-5850 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 840 217-54-5860 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 841 217-54-5870 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 842 217-54-5880 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 843 217-54-5890 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 844 217-54-5900 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 845 217-54-5910 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 846 217-54-5920 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 847 217-54-5930 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 848 217-54-5940 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 849 217-54-5950 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 850 217-54-5960 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 851 217-54-5970 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 852 217-54-5980 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 853 217-54-5990 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 854 217-54-6000 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 179Marana Regular Town Council Meeting February 7, 2023 Page 206 of 339 855 217-54-6010 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 856 217-54-6020 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 857 217-54-6030 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 858 217-54-6040 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 859 217-54-6050 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 860 217-54-6060 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 861 217-54-6070 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 862 217-54-6080 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 863 217-54-6090 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 864 217-54-6100 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 865 217-54-6110 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 866 217-54-6120 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 867 217-54-6130 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 868 217-54-6140 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 869 217-54-6150 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 870 217-54-6160 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 871 217-54-6170 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 872 217-54-6180 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 873 217-54-6190 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 874 217-54-6200 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 875 217-54-6210 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 876 217-54-6220 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 877 217-54-6230 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 878 217-54-6240 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 879 217-54-6250 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 883 217-54-6290 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 884 217-54-6300 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 887 217-54-6330 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 888 217-54-6340 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 889 217-54-6350 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 890 217-54-6360 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 891 217-54-6370 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 892 217-54-6380 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 895 217-54-6410 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 896 217-54-6420 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 897 217-54-6430 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 898 217-54-6440 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 899 217-54-6450 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 902 217-54-6480 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 904 217-54-6500 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 905 217-54-6510 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 906 217-54-6520 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 907 217-54-6530 Richmond American Homes 3,381.52 1,760.89 30,435.00 - Residential 180Marana Regular Town Council Meeting February 7, 2023 Page 207 of 339 908 217-54-6540 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 909 217-54-6550 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 910 217-54-6560 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 911 217-54-6570 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 912 217-54-6580 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 913 217-54-6590 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 914 217-54-6600 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 915 217-54-6610 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 916 217-54-6620 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 917 217-54-6630 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 918 217-54-6640 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 919 217-54-6650 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 925 217-54-6710 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 929 217-54-6750 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 934 217-54-6800 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 935 217-54-6810 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 936 217-54-6820 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 937 217-54-6830 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 938 217-54-6840 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 939 217-54-6850 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 940 217-54-6860 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 943 217-54-6890 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 944 217-54-6900 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 946 217-54-6920 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 947 217-54-6930 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 948 217-54-6940 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 949 217-54-6950 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 950 217-54-6960 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 951 217-54-6970 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 952 217-54-6980 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 953 217-54-6990 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 954 217-54-7000 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 955 217-54-7010 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 956 217-54-7020 Lennar Homes 3,381.52 1,760.89 30,435.00 - Residential 957 217-54-7030 Lennar Homes 3,381.51 1,760.88 30,435.00 - Residential 958 217-54-7040 Lennar Homes 3,381.51 1,760.88 30,435.00 - Residential 959 217-54-7050 Lennar Homes 3,381.51 1,760.88 30,435.00 - Residential 960 217-54-7060 Lennar Homes 3,381.51 1,760.88 30,435.00 - Residential 961 217-54-7070 Lennar Homes 3,381.51 1,760.88 30,435.00 - Residential 962 217-54-7080 Lennar Homes 3,381.51 1,760.88 30,435.00 - Residential 218 217-57-3660 NP Investments LLC 18,332.46 9,546.43 364,651.00 52,093 Gladden Farms Commercial Center - Bank 219 217-57-3670 Weingarten Realty 12,423.76 6,469.53 79,432.00 35,303 Gladden Farms Commercial Center - Fast Food Restaurant 220 217-57-3680 Weingarten Realty 14,501.49 7,551.49 92,716.00 41,207 Gladden Farms Commercial Center - Fast Food Restaurant 221 217-57-3690 Weingarten Realty 11,477.10 5,976.57 73,379.00 32,613 Gladden Farms Commercial Center 222 217-57-3700 Weingarten Realty 27,082.56 14,102.95 173,153.00 76,957 Gladden Farms Commercial Center 224 217-57-3720 Weingarten Realty 41,637.17 21,682.11 236,630.00 118,315 Gladden Farms Commercial Center - Grocery 181Marana Regular Town Council Meeting February 7, 2023 Page 208 of 339 225 217-57-3730 Weingarten Realty 9,539.79 4,967.74 54,216.00 27,108 Gladden Farms Commercial Center 226 217-57-3740 Weingarten Realty 18,357.45 9,559.45 117,369.00 52,164 Gladden Farms Commercial Center 227 217-57-3750 Weingarten Realty 12,894.96 6,714.92 82,444.00 36,642 Gladden Farms Commercial Center 1045 217-59-0010 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1046 217-59-0020 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1047 217-59-0030 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1048 217-59-0040 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1049 217-59-0050 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1050 217-59-0060 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1051 217-59-0070 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1052 217-59-0080 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1053 217-59-0090 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1054 217-59-0100 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1055 217-59-0110 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1056 217-59-0120 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1057 217-59-0130 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1058 217-59-0140 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1059 217-59-0150 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1060 217-59-0160 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1061 217-59-0170 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1062 217-59-0180 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1063 217-59-0190 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1064 217-59-0200 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1065 217-59-0210 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1066 217-59-0220 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1067 217-59-0230 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1068 217-59-0240 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1069 217-59-0250 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1070 217-59-0260 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1071 217-59-0270 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1072 217-59-0280 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1073 217-59-0290 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1074 217-59-0300 KB Home Tucson Inc.2,120.36 1,104.16 12,001.00 - Residential 1075 217-59-0310 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1076 217-59-0320 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1077 217-59-0330 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1078 217-59-0340 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1079 217-59-0350 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1080 217-59-0360 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1081 217-59-0370 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1082 217-59-0380 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1083 217-59-0390 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1084 217-59-0400 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1085 217-59-0410 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1086 217-59-0420 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1087 217-59-0430 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1088 217-59-0440 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1089 217-59-0450 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1090 217-59-0460 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1091 217-59-0470 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1092 217-59-0480 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1093 217-59-0490 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1094 217-59-0500 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1095 217-59-0510 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1096 217-59-0520 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1097 217-59-0530 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 182Marana Regular Town Council Meeting February 7, 2023 Page 209 of 339 1098 217-59-0540 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1099 217-59-0550 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1100 217-59-0560 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1101 217-59-0570 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1102 217-59-0580 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1103 217-59-0590 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1104 217-59-0600 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1105 217-59-0610 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1106 217-59-0620 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1107 217-59-0630 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1108 217-59-0640 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1109 217-59-0650 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1110 217-59-0660 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1111 217-59-0670 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1112 217-59-0680 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1113 217-59-0690 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1114 217-59-0700 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1115 217-59-0710 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1116 217-59-0720 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1117 217-59-0730 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1118 217-59-0740 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1119 217-59-0750 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1120 217-59-0760 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1121 217-59-0770 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1122 217-59-0780 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1123 217-59-0790 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1124 217-59-0800 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1125 217-59-0810 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1126 217-59-0820 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1127 217-59-0830 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1128 217-59-0840 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1129 217-59-0850 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1130 217-59-0860 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1131 217-59-0870 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1132 217-59-0880 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1133 217-59-0890 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1134 217-59-0900 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1135 217-59-0910 KB Home Tucson Inc.2,120.35 1,104.15 206,142.00 - Residential 1136 217-59-0920 KB Home Tucson Inc.2,120.35 1,104.15 12,001.00 - Residential 1137 217-60-0010 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1138 217-60-0020 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1139 217-60-0030 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1140 217-60-0040 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1141 217-60-0050 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1142 217-60-0060 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1143 217-60-0070 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1144 217-60-0080 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1145 217-60-0090 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1146 217-60-0100 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1147 217-60-0110 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1148 217-60-0120 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1149 217-60-0130 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1150 217-60-0140 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1151 217-60-0150 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1152 217-60-0160 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 183Marana Regular Town Council Meeting February 7, 2023 Page 210 of 339 1153 217-60-0170 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1154 217-60-0180 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1155 217-60-0190 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1156 217-60-0200 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1157 217-60-0210 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1158 217-60-0220 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1159 217-60-0230 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1160 217-60-0240 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1161 217-60-0250 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1162 217-60-0260 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1163 217-60-0270 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1164 217-60-0280 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1165 217-60-0290 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1166 217-60-0300 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1167 217-60-0310 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1168 217-60-0320 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1169 217-60-0330 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1170 217-60-0340 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1171 217-60-0350 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1172 217-60-0360 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1173 217-60-0370 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1174 217-60-0380 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1175 217-60-0390 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1176 217-60-0400 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1177 217-60-0410 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1178 217-60-0420 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1179 217-60-0430 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1180 217-60-0440 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1181 217-60-0450 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1182 217-60-0460 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1183 217-60-0470 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1184 217-60-0480 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1185 217-60-0490 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1186 217-60-0500 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1187 217-60-0510 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1188 217-60-0520 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1189 217-60-0530 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1190 217-60-0540 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1191 217-60-0550 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1192 217-60-0560 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1193 217-60-0570 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1194 217-60-0580 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1195 217-60-0590 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1196 217-60-0600 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1197 217-60-0610 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1198 217-60-0620 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1199 217-60-0630 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1200 217-60-0640 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1201 217-60-0650 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1202 217-60-0660 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1203 217-60-0670 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1204 217-60-0680 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1205 217-60-0690 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1206 217-60-0700 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1207 217-60-0710 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1208 217-60-0720 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1209 217-60-0730 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 184Marana Regular Town Council Meeting February 7, 2023 Page 211 of 339 1210 217-60-0740 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1211 217-60-0750 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1212 217-60-0760 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1213 217-60-0770 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1214 217-60-0780 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1215 217-60-0790 Mattamy Tucson LLC 3,439.33 1,790.99 30,435.00 - Residential 1216 217-60-0800 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1217 217-60-0810 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1218 217-60-0820 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1219 217-60-0830 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1220 217-60-0840 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1221 217-60-0850 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1222 217-60-0860 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1223 217-60-0870 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1224 217-60-0880 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1225 217-60-0890 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1226 217-60-0900 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1227 217-60-0910 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1228 217-60-0920 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1229 217-60-0930 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1230 217-60-0940 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1231 217-60-0950 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1232 217-60-0960 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1233 217-60-0970 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1234 217-60-0980 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1235 217-60-0990 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1236 217-60-1000 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1237 217-60-1010 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1238 217-60-1020 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1239 217-60-1030 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1240 217-60-1040 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1241 217-60-1050 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1242 217-60-1060 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1243 217-60-1070 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1244 217-60-1080 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1245 217-60-1090 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1246 217-60-1100 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1247 217-60-1110 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1248 217-60-1120 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1249 217-60-1130 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1250 217-60-1140 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1251 217-60-1150 Mattamy Tucson LLC 3,439.32 1,790.99 30,435.00 - Residential 1252 217-61-0010 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1253 217-61-0020 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1254 217-61-0030 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1255 217-61-0040 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1256 217-61-0050 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1257 217-61-0060 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1258 217-61-0070 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1259 217-61-0080 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1260 217-61-0090 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1261 217-61-0100 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1262 217-61-0110 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1263 217-61-0120 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1264 217-61-0130 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1265 217-61-0140 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 185Marana Regular Town Council Meeting February 7, 2023 Page 212 of 339 1266 217-61-0150 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1267 217-61-0160 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1268 217-61-0170 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1269 217-61-0180 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1270 217-61-0190 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1271 217-61-0200 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1272 217-61-0210 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1273 217-61-0220 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1274 217-61-0230 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1275 217-61-0240 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1276 217-61-0250 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1277 217-61-0260 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1278 217-61-0270 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1279 217-61-0280 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1280 217-61-0290 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1281 217-61-0300 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1282 217-61-0310 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1283 217-61-0320 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1284 217-61-0330 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1285 217-61-0340 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1286 217-61-0350 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1287 217-61-0360 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1288 217-61-0370 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1289 217-61-0380 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1290 217-61-0390 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1291 217-61-0400 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1292 217-61-0410 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1293 217-61-0420 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1294 217-61-0430 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1295 217-61-0440 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1296 217-61-0450 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1297 217-61-0460 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1298 217-61-0470 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 186Marana Regular Town Council Meeting February 7, 2023 Page 213 of 339 1299 217-61-0480 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1300 217-61-0490 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1301 217-61-0500 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1302 217-61-0510 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1303 217-61-0520 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1304 217-61-0530 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1305 217-61-0540 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1306 217-61-0550 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1307 217-61-0560 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1308 217-61-0570 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1309 217-61-0580 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1310 217-61-0590 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1311 217-61-0600 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1312 217-61-0610 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1313 217-61-0620 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1314 217-61-0630 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1315 217-61-0640 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1316 217-61-0650 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1317 217-61-0660 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1318 217-61-0670 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1319 217-61-0680 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1320 217-61-0690 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1321 217-61-0700 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1322 217-61-0710 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1323 217-61-0720 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1324 217-61-0730 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1325 217-61-0740 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1326 217-61-0750 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1327 217-61-0760 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1328 217-61-0770 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1329 217-61-0780 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 187Marana Regular Town Council Meeting February 7, 2023 Page 214 of 339 1330 217-61-0790 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1331 217-61-0800 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1332 217-61-0810 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1333 217-61-0820 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1334 217-61-0830 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1335 217-61-0840 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1336 217-61-0850 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1337 217-61-0860 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1338 217-61-0870 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1339 217-61-0880 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1340 217-61-0890 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1341 217-61-0900 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1342 217-61-0910 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1343 217-61-0920 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1344 217-61-0930 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1345 217-61-0940 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1346 217-61-0950 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1347 217-61-0960 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1348 217-61-0970 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1349 217-61-0980 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1350 217-61-0990 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1351 217-61-1000 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1352 217-61-1010 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1353 217-61-1020 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1354 217-61-1030 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1355 217-61-1040 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1356 217-61-1050 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1357 217-61-1060 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1358 217-61-1070 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1359 217-61-1080 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1360 217-61-1090 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1361 217-61-1100 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1362 217-61-1110 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1363 217-61-1120 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1364 217-61-1130 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 188Marana Regular Town Council Meeting February 7, 2023 Page 215 of 339 1365 217-61-1140 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1366 217-61-1150 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1367 217-61-1160 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1368 217-61-1170 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1369 217-61-1180 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1370 217-61-1190 Richmond American Homes 3,439.32 1,790.99 0.00 - Residential 1371 217-62-0010 Lennar Homes 3,886.64 2,023.93 0.00 - Residential 1372 217-62-0020 Lennar Homes 3,886.64 2,023.93 0.00 - Residential 1373 217-62-0030 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1374 217-62-0040 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1375 217-62-0050 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1376 217-62-0060 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1377 217-62-0070 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1378 217-62-0080 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1379 217-62-0090 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1380 217-62-0100 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1381 217-62-0110 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1382 217-62-0120 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1383 217-62-0130 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1384 217-62-0140 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1385 217-62-0150 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1386 217-62-0160 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1387 217-62-0170 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1388 217-62-0180 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1389 217-62-0190 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1390 217-62-0200 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1391 217-62-0210 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1392 217-62-0220 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1393 217-62-0230 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1394 217-62-0240 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1395 217-62-0250 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1396 217-62-0260 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1397 217-62-0270 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1398 217-62-0280 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1399 217-62-0290 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1400 217-62-0300 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1401 217-62-0310 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1402 217-62-0320 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1403 217-62-0330 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1404 217-62-0340 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1405 217-62-0350 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1406 217-62-0360 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1407 217-62-0370 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1408 217-62-0380 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1409 217-62-0390 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 189Marana Regular Town Council Meeting February 7, 2023 Page 216 of 339 1410 217-62-0400 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1411 217-62-0410 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1412 217-62-0420 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1413 217-62-0430 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1414 217-62-0440 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1415 217-62-0450 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1416 217-62-0460 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1417 217-62-0470 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1418 217-62-0480 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1419 217-62-0490 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1420 217-62-0500 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1421 217-62-0510 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1422 217-62-0520 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1423 217-62-0530 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1424 217-62-0540 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1425 217-62-0550 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1426 217-62-0560 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1427 217-62-0570 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1428 217-62-0580 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1429 217-62-0590 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1430 217-62-0600 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1431 217-62-0610 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1432 217-62-0620 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1433 217-62-0630 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1434 217-62-0640 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1435 217-62-0650 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1436 217-62-0660 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1437 217-62-0670 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1438 217-62-0680 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1439 217-62-0690 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1440 217-62-0700 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1441 217-62-0710 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1442 217-62-0720 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1443 217-62-0730 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1444 217-62-0740 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1445 217-62-0750 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1446 217-62-0760 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1447 217-62-0770 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1448 217-62-0780 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1449 217-62-0790 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1450 217-62-0800 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1451 217-62-0810 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1452 217-62-0820 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1453 217-62-0830 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1454 217-62-0840 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1455 217-62-0850 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 190Marana Regular Town Council Meeting February 7, 2023 Page 217 of 339 1456 217-62-0860 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1457 217-62-0870 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1458 217-62-0880 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1459 217-62-0890 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1460 217-62-0900 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1461 217-62-0910 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1462 217-62-0920 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1463 217-62-0930 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1464 217-62-0940 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1465 217-62-0950 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1466 217-62-0960 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1467 217-62-0970 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1468 217-62-0980 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1469 217-62-0990 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1470 217-62-1000 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1471 217-62-1010 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1472 217-62-1020 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1473 217-62-1030 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1474 217-62-1040 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1475 217-62-1050 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1476 217-62-1060 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1477 217-62-1070 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1478 217-62-1080 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1479 217-62-1090 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1480 217-62-1100 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1481 217-62-1110 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1482 217-62-1120 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1483 217-62-1130 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1484 217-62-1140 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1485 217-62-1150 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1486 217-62-1160 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1487 217-62-1170 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1488 217-62-1180 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1489 217-62-1190 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1490 217-62-1200 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1491 217-62-1210 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1492 217-62-1220 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1493 217-62-1230 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1494 217-62-1240 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1495 217-62-1250 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1496 217-62-1260 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1497 217-62-1270 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1498 217-62-1280 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1499 217-62-1290 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1500 217-62-1300 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1501 217-62-1310 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1502 217-62-1320 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1503 217-62-1330 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 191Marana Regular Town Council Meeting February 7, 2023 Page 218 of 339 1504 217-62-1340 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1505 217-62-1350 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1506 217-62-1360 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1507 217-62-1370 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1508 217-62-1380 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1509 217-62-1390 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1510 217-62-1400 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1511 217-62-1410 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1512 217-62-1420 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1513 217-62-1430 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1514 217-62-1440 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1515 217-62-1450 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1516 217-62-1460 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1517 217-62-1470 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1518 217-62-1480 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1519 217-62-1490 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1520 217-62-1500 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1521 217-62-1510 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1522 217-62-1520 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1523 217-62-1530 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1524 217-62-1540 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1525 217-62-1550 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1526 217-62-1560 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1527 217-62-1570 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1528 217-62-1580 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1529 217-62-1590 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1530 217-62-1600 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1531 217-62-1610 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1532 217-62-1620 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1533 217-62-1630 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1534 217-62-1640 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1535 217-62-1650 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1536 217-62-1660 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1537 217-62-1670 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1538 217-62-1680 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1539 217-62-1690 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1540 217-62-1700 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1541 217-62-1710 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1542 217-62-1720 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1543 217-62-1730 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1544 217-62-1740 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1545 217-62-1750 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1546 217-62-1760 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1547 217-62-1770 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1548 217-62-1780 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1549 217-62-1790 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1550 217-62-1800 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1551 217-62-1810 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1552 217-62-1820 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1553 217-62-1830 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1554 217-62-1840 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1555 217-62-1850 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1556 217-62-1860 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1557 217-62-1870 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 192Marana Regular Town Council Meeting February 7, 2023 Page 219 of 339 1558 217-62-1880 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1559 217-62-1890 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1560 217-62-1900 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1561 217-62-1910 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1562 217-62-1920 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1563 217-62-1930 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1564 217-62-1940 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1565 217-62-1950 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1566 217-62-1960 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1567 217-62-1970 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1568 217-62-1980 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1569 217-62-1990 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1570 217-62-2000 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1571 217-62-2010 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1572 217-62-2020 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1573 217-62-2030 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1574 217-62-2040 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1575 217-62-2050 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1576 217-62-2060 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1577 217-62-2070 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1578 217-62-2080 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1579 217-62-2090 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1580 217-62-2100 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1581 217-62-2110 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1582 217-62-2120 Lennar Homes 3,886.63 2,023.92 0.00 - Residential 1586 217-55-0170 Tangerine 2021, LLC 347,856.32 181,142.45 0.00 - Residential and Commercial 1587 217-55-0180 Tangerine 2021, LLC 400,579.47 208,597.47 0.00 - Residential and Commercial 1588 217-55-0190 Tangerine 2021, LLC 130,846.64 68,136.99 0.00 - Residential and Commercial 1589 217-55-0200 Tangerine 2021, LLC 60,995.74 31,762.88 0.00 - Residential and Commercial 1590 217-55-0210 Tangerine 2021, LLC 8,913.42 4,641.57 0.00 - Residential and Commercial 1591 217-55-0220 Tangerine 2021, LLC 473,459.77 246,549.10 0.00 - Residential and Commercial 1592 217-55-0230 Tangerine 2021, LLC 16,952.97 8,828.08 0.00 - Residential and Commercial 1593 217-55-0240 Tangerine 2021, LLC 146,984.00 76,540.34 0.00 - Residential and Commercial 757 Active Assessments $2,542,873.13 $1,324,173.15 $12,118,269.00 0 50 Active Assessments $8,194,444.89 $4,267,169.32 $20,661,342.00 15,262,002 Totals:807 Active Assessments $10,737,318.02 $5,591,342.47 $32,779,611.00 15,262,002 (4) (1) Includes capitalized interest on the Bonds as sold. (2) Amount remaining after billing for the 6/1/2022 assessment installment. (4) The Pima County Assessor does not provide the square footage for most residential properties. (3) As current Full Cash Value data is not available from Pima County for certain parcels that have changed during Fiscal Year 2021/22, prior year Full Cash Value data has been supplemented where applicable. Non-Residential Totals: Residential Totals: 193Marana Regular Town Council Meeting February 7, 2023 Page 220 of 339 TOWN OF MARANA SALES TAX BY INDUSTRY LAST TEN FISCAL YEARS Industry Group FY 2013 %FY 2014 %FY 2015 %2016*%2017 % Construction 5,260,345$ 21.33%6,411,509$ 24.45%6,838,195$ 24.37%6,883,116$ 19.42%7,557,292$ 20.15% Manufacturing 127,214 0.52%97,014 0.37%100,329 0.36%- 0.00%- 0.00% Transportation, Communications, & Utilities 3,038,071 12.32%3,182,854 12.14%3,318,976 11.83%3,919,633 11.06%3,809,315 10.16% Wholesale Trade 296,077 1.20%213,657 0.81%305,012 1.09%- 0.00%- 0.00% Retail Trade 9,380,544 38.03%9,593,163 36.58%10,133,523 36.12%16,305,878 46.01%17,120,561 45.65% Restaurant & Bars 1,819,588 7.38%1,865,602 7.11%2,038,788 7.27%3,076,737 8.68%3,295,734 8.79% Fire, Insurance & Real Estate 1,234,426 5.00%1,256,418 4.79%1,240,196 4.42%1,339,496 3.78%1,540,358 4.11% Hotels & Other Lodging 2,140,493 8.68%2,064,986 7.87%2,481,304 8.84%2,292,705 6.47%2,558,312 6.82% Services 1,003,377 4.07%1,031,325 3.93%1,046,669 3.73%- 0.00%- 0.00% All Others 363,807 1.48%509,351 1.94%555,522 1.98%1,624,023 4.58%1,618,648 4.32% 24,663,942$ 100.00%26,225,881$ 100.00%28,058,514$ 100.00%35,441,588$ 100.00%37,500,220$ 100.00% Industry Group 2018 %2019 %2020 %2021 %2022 % Construction 9,825,265$ 23.57%10,817,479$ 25.95%11,599,116 28.50%9,869,708 23.03%11,299,816 21.68% Transportation, Communications, & Utilities 4,234,220 10.16%3,987,389 9.57%3,835,802 9.42%4,071,000 9.50%4,373,856 8.39% Retail Trade 17,757,284 42.59%16,403,992 39.36%16,210,073 39.82%19,308,702 45.06%23,737,350 45.55% Restaurant & Bars 3,616,110 8.67%3,514,494 8.43%3,146,078 7.73%3,489,065 8.14%4,819,803 9.25% Fire, Insurance & Real Estate 1,661,010 3.98%1,648,738 3.96%1,436,817 3.53%1,515,124 3.54%1,711,996 3.29% Hotels & Other Lodging 2,827,338 6.78%2,913,545 6.99%2,566,127 6.30%2,496,865 5.83%3,957,813 7.59% All Others 1,768,256 4.24%2,394,706 5.75%1,910,780 4.69%2,096,172 4.89%2,210,898 4.24% 41,689,483$ 100.00%41,680,343$ 100.00%40,704,792$ 100.00%42,846,635$ 100.00%52,111,532$ 100.00% Note: industry groups Source: Town of Marana Finance Department, Arizona Department of Revenue *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 194Marana Regular Town Council Meeting February 7, 2023 Page 221 of 339 TOWN OF MARANA EXCISE TAX COLLECTIONS LAST TEN FISCAL YEARS Industry Classification 2012/13 2013/14 2014/15 2015/2016 2016/2017 Town Sales Tax 24,768,104$ 26,225,881$ 28,058,823$ 35,441,585$ 37,500,219$ State-shared Sales Taxes 2,861,622 3,043,102 3,195,042 3,344,679 3,798,503 State-shared Income Taxes 3,571,191 3,896,487 4,232,245 4,209,300 5,054,592 Licenses and permits 4,323,155 3,932,108 4,813,378 4,468,910 4,848,237 Fines and forfeitures and penalties 661,341 635,869 664,955 579,369 574,884 TOTAL 36,185,413$ 37,733,447$ 40,964,443$ 48,043,843$ 51,776,435$ Industry Classification 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 Town Sales Tax 41,689,483$ 41,680,343$ 41,629,398$ 42,846,635$ 52,111,532$ State-shared Sales Taxes 4,186,856 4,524,009 4,872,825 5,816,852 7,324,638 State-shared Income Taxes 5,384,669 5,424,305 6,078,686 7,007,072 6,771,044 Licenses and permits 5,573,620 5,774,930 6,021,017 7,248,432 11,190,222 Fines and forfeitures and penalties 612,638 527,447 515,514 436,491 383,241 TOTAL 57,447,266$ 57,931,034$ 59,117,440$ 63,355,482$ 77,780,677$ Source: Statement of Revenues, Expenditures and changes in Fund Balances 195Marana Regular Town Council Meeting February 7, 2023 Page 222 of 339 TOWN 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 2022 44,828$ 20,991$ 5,695$ 20,269$ 16,730$ 108,513 195.0%2,090 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 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 Tucson Metropolitan Service Area. Source: US Census Bureau, Economic and Business Research Center, The University of Arizona Governmental Activities Business-Type Activities 196Marana Regular Town Council Meeting February 7, 2023 Page 223 of 339 TOWN OF MARANA RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS (Amounts expressed in thousands, except per capita amount) 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 2022 20,991$ 1,359$ 19,632 0.29%35.8% 2021 18,756 876 17,880 0.29%34.4% 2020 15,100 872 14,228 0.25%28.8% 2019 12,242 584 11,658 0.22%24.8% 2018 8,551 393 8,158 0.17%18.2% 2017 8,794 387 8,407 0.18%19.3% 2016 7,835 392 7,443 0.17%18.0% 2015 8,085 254 7,831 0.19%19.4% 2014 8,325 247 8,078 0.21%21.1% 2013 8,550 244 8,306 0.24%22.6% 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 197Marana Regular Town Council Meeting February 7, 2023 Page 224 of 339 TOWN OF MARANA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of June 30, 2022 (Amounts expressed in thousands) Governmental Unit Debt Outstanding (1) Estimated Percentage Applicable (2) Estimated Share of Overlapping Debt Pima County *133,965$ 7.09%9,505$ Pima County Community College District 2,969 7.09%211 Northwest Fire District 32,597 49.91%16,270 Flowing Wells Unified School District No. 8 28,040 100.00%28,040 Marana Unified School District No. 6 137,850 65.58%90,400 Total overlapping debt 144,425 Gladden Farms Community Facilities District 11,377 100.00%11,377 Saguaro Springs Community Facilities District 8,383 100.00%8,383 Gladden Farms Phase II Community Facilities District 5,822 100.00%5,822 Tangerine Farms Road Improvement District 5,695 100.00%5,695 Town of Marana 44,828 100.00%44,828 Total direct debt 76,105$ Total direct and overlapping debt 220,529$ 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 198Marana Regular Town Council Meeting February 7, 2023 Page 225 of 339 TOWN OF MARANA LEGAL DEBT MARGIN INFORMATION As of June 30, 2022 Legal Debt Margin Calculation for Fiscal Year 2022 Limited Assessed Value 718,888,990$ Debt Limit:- 6% of assessed value 43,133,339 20% of assessed value 143,777,798 Total debt limit:186,911,137 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 186,911,137$ 2013 2014 2015 2016 2017 24,745,839$ 28,630,929$ 29,446,070$ 31,218,157$ 32,138,944$ 82,486,130 95,436,430 98,153,568 104,060,525 107,129,981 - - - - - 107,231,969$ 124,067,359$ 127,599,639$ 135,278,682$ 139,268,925$ 0%0%0%0%0% 2018 2019 2020 2021 2022 34,553,958$ 34,749,542$ 37,383,083$ 40,264,323$ 43,133,339$ 115,179,860 115,831,808 124,610,278.20 134,214,411.00 143,777,798.00 - - - - - - - - 149,733,818$ 150,581,351$ 161,993,362$ 174,478,734$ 186,911,137$ 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 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 199Marana Regular Town Council Meeting February 7, 2023 Page 226 of 339 TOWN OF MARANA PLEDGED-REVENUE COVERAGE LAST TEN FISCAL YEARS (Amounts expressed in thousands) Fiscal Year Property Tax Collections Coverage Principal Interest 2022 956$ 420$ 358$ 122.9% 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% Fiscal Year Property Tax Collections Coverage Principal Interest 2022 560$ 150$ 223$ 150.1% 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 Tangerine Road Farms Improvement District Special Assessment Bonds *** Fiscal Year Special Assessment Collections Debt Service Coverage Principal Interest 2022 1,801$ 1,834$ 145$ 91.0% 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% 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. ***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 Saguaro Springs Community Facilities District General Obligation Bonds ** Debt Service Debt Service Gladden Farms Community Facilities District General Obligation Bonds* 200Marana Regular Town Council Meeting February 7, 2023 Page 227 of 339 TOWN OF MARANA DEMOGRAPHIC AND ECONOMIC STATUS LAST TEN FISCAL YEARS Fiscal Year Population Personal Income Per Capita Personal Income Median Age School Enrollment Unemployment Rate 2022 54,895 55,643,600 39,007$ 39.6 12,627 4.0% 2021 51,908 56,168,200 36,182 39.4 12,567 4.9% 2020 49,323 49,961,000 36,282 39.0 12,202 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 12,290 2.8% 2017 43,474 37,926,114 32,646 48.1 12,152 4.3% 2016 41,315 36,821,470 37,107 29.7 12,227 4.7% 2015 40,324 35,749,000 34,026 39.6 12,625 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 12,323 6.1% 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. 201Marana Regular Town Council Meeting February 7, 2023 Page 228 of 339 TOWN OF MARANA PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO Employees Percentage of Total City Employment Employees Percentage of Total City Employment Employer Marana Unified School District 922 3.7% 1,657 22.6% Town of Marana 403 1.6%319 4.3% Marana Main Health Center 356 1.4%320 4.4% Wal-Mart 343 1.4%450 6.1% The Ritz-Carlton Dove Mountain 320 1.3%350 4.8% Fry's Food & Drug 315 1.2%240 3.3% Sargeant Aerospace & Defense 311 1.2%313 4.3% Northwest Fire District 278 1.1%235 3.2% Costco 250 1.0% FLSmidth Krebs 239 0.9%306 4.2% Hunter Contracting 200 2.7% 2022 2013 Source: Town of Marana Economic Development Department, MUSD, Northwest Fire District, Sargeant Aerospace, Costco 202Marana Regular Town Council Meeting February 7, 2023 Page 229 of 339 TOWN OF MARANA PRINCIPAL RETAIL AND CONTRACTING SALES TAXPAYERS CURRENT YEAR AND NINE YEARS AGO Sales Tax Payments Rank Percentage of Total Sales Tax Payments Sales Tax Payments Rank Percentage of Total Sales Tax Payments RETAIL Taxpayer A 2,719,479$ 1 5.4%1,555,075$ 1 6.3% Taxpayer B 1,517,548 2 3.0%0.0% Taxpayer C 1,384,123 3 2.7%1,117,537 2 4.5% Taxpayer D 1,265,966 4 2.5%642,083 3 2.6% Taxpayer E 882,665 5 1.7%490,567 5 2.0% Taxpayer F 844,128 6 1.7%559,463 4 2.3% Taxpayer G 827,208 7 1.6%484,348 6 2.0% Taxpayer H 484,626 8 1.0%0.0% Taxpayer I 406,103 9 0.8%0.0% Taxpayer J 257,814 10 0.5%0.0% Taxpayer K 280,275 7 Taxpayer L 249,075 8 Taxpayer M 0.0%183,245 9 0.7% Taxpayer N 0.0%168,764 10 0.7% 10,589,659$ 20.9%5,730,431$ 21.1% CONTRACTING Taxpayer A 1,332,344$ 1 2.6%517,893$ 3 2.1% Taxpayer B 900,703 2 1.8%0.0% Taxpayer C 884,082 3 1.8%411,027 4 1.7% Taxpayer D 757,026 4 1.5%635,476 2 2.6% Taxpayer E 702,430 5 1.4%0.0% Taxpayer F 550,740 6 1.1%402,931 5 1.6% Taxpayer G 457,501 7 0.9%0.0% Taxpayer H 437,915 8 0.9%0.0% Taxpayer I 288,544 9 0.6%0.0% Taxpayer J 284,303 10 0.6%142,907 8 0.6% Taxpayer K 0.00%639,589 1 2.6% Taxpayer L 0.00%308,221 6 1.2% Taxpayer M 0.00%205,825 7 0.8% Taxpayer N 0.00%112,464 9 0.5% Taxpayer O 0.00%99,625 10 0.4% 6,595,588$ 13.2%3,475,958$ 14.1% Source: Town of Marana Finance Department, Arizona Department of Revenue Fiscal Year 2022 Fiscal Year 2013 203Marana Regular Town Council Meeting February 7, 2023 Page 230 of 339 TOWN OF MARANA FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Function General Government 62.5 62.5 67.5 70.9 72.9 73.3 73.3 75.3 75.3 78.3 Public Safety Police Officers 80.0 80.0 81.0 83.0 85.0 87.0 87.0 90.0 90.0 96.0 Civilians 26.0 26.0 28.0 28.0 28.0 28.0 31.0 31.0 31.0 31.0 Building Safety 9.0 9.0 13.0 13.0 12.0 12.0 13.0 13.0 13.0 14.0 Highways and streets 36.0 36.0 35.0 35.0 34.0 36.0 39.0 44.0 44.0 46.0 Health and Safety - - - - - 2.0 3.0 3.0 3.0 3.0 Culture and recreation 33.3 33.3 36.5 38.5 41.8 41.0 40.0 42.0 42.0 53.0 Community Development - - - - - - - - - - Economic & Community Development 48.5 48.5 40.4 39.4 43.0 44.5 42.5 39.5 39.5 40.5 Water Utilities 19.1 19.1 22.0 23.0 23.0 24.0 25.2 27.6 29.6 31.6 Wastewater Utilities 4.0 4.0 4.0 4.0 4.0 5.0 7.0 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 3.0 Total 326.1 319.3 319.3 328.3 346.7 355.8 364.0 375.4 377.4 403.4 Source: Town of Marana; Annual Budget; Authorized position schedule. 204Marana Regular Town Council Meeting February 7, 2023 Page 231 of 339 TOWN OF MARANA SINGLE FAMILY RESIDENTIAL PERMITS LAST TEN FISCAL YEARS Month 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 January 60 39 42 39 54 82 42 76 99 198 February 52 61 51 58 73 65 43 80 100 102 March 125 42 57 59 76 58 61 88 77 146 April 64 47 55 54 52 60 88 37 100 81 May 46 55 87 37 85 79 71 57 82 59 June 61 59 67 50 63 80 97 111 143 63 July 74 41 59 36 73 79 83 103 99 37 August 60 50 35 47 75 67 62 82 86 36 September 44 29 51 37 40 58 65 73 159 38 October 46 71 62 57 62 63 79 82 128 39 November 27 88 22 51 75 74 67 62 86 December 43 30 33 56 45 59 50 64 96 Calendar Total 702 612 621 581 773 824 808 915 1,255 799 Fiscal Total 591 597 668 559 687 794 802 855 1,067 1,303 Source: Town of Marana Finance Department, Town of Marana Building Services 205Marana Regular Town Council Meeting February 7, 2023 Page 232 of 339 TOWN OF MARANA CAPITAL ASSET STATISTICS BY FUNCTION As of June 30, 2022 Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 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 99 118 129 128 129 129 131 132 131 135 Highways and Streets Street (miles)494 494 511 518 520 524 540 570 591 618 Culture and Recreation Parks 8 8 8 9 9 11 13 14 14 14 Parks Acreage 139 139 139 146 146 158 182 182 182 182 Trails in Miles - Hiking 37 37 37 38 39 39 41 41 41 51 Trails in Miles - Paved 16 16 18 19 21 21 21 24 27 27 Splash Pads - - - - 1 1 2 2 2 2 Swimming Pools 1 1 1 1 1 1 1 1 1 1 Tennis Courts 6 6 6 6 6 6 6 5 4 5 Pickleball Courts - - - - - - - - 3 7 Senior/Community Center 1 1 1 1 1 1 1 1 1 1 Water Systems Miles of Water Mains 128 132 135 138 146 149 157 162 169 189 Service Connections 6,002 6,272 6,429 6,745 7,205 7,850 8,533 9,166 9,528 10,292 Water Treatment Campus - - - - - - - - - 2 Wastewater Number of Manholes 863 863 891 909 978 1,066 1,235 1313 1379 1990 Sewer Mains (miles) 47.5 47.5 48.33 49.2 53.6 58.5 62.9 66 69 89 0.198 0.287 0.348 0.360 0.425 0.480 0.520 0.600 0.659 0.739 Source: This information is provided from the Town's facility records. Function Avg Daily Sewage Treated (MGD) 206Marana Regular Town Council Meeting February 7, 2023 Page 233 of 339 This page intentionally left blank Marana Regular Town Council Meeting February 7, 2023 Page 234 of 339 Marana Regular Town Council Meeting February 7, 2023 Page 235 of 339 Town of Marana Single Audit Reporting Package June 30, 2022 Marana Regular Town Council Meeting February 7, 2023 Page 236 of 339 Marana Regular Town Council Meeting February 7, 2023 Page 237 of 339 TOWN OF MARANA, ARIZONA SINGLE AUDIT REPORTING PACKAGE Year Ended June 30, 2022 CONTENTS Page Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1 Independent Auditors’ Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance 3 7 9 10 Schedule of Expenditures of Federal Awards Notes to the Schedule of Expenditures of Federal Awards Schedule of Findings and Questioned Costs Summary Schedule of Prior Audit Finding Marana Regular Town Council Meeting February 7, 2023 Page 238 of 339 Marana Regular Town Council Meeting February 7, 2023 Page 239 of 339 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and City Council Town of Marana, Arizona We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Marana, Arizona, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Town of Marana, Arizona’s basic financial statements, and have issued our report thereon dated December 20 2022. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Town of Marana, Arizona’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town of Marana, Arizona’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Town of Marana, Arizona’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be preve nted, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all de ficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2020-2022 Baker Tilly US, LLP Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2020-2022 Baker Tilly US, LLP Marana Regular Town Council Meeting February 7, 2023 Page 240 of 339 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town of Marana, Arizona’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an i ntegral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Tempe, Arizona December 20, 2022 Marana Regular Town Council Meeting February 7, 2023 Page 241 of 339 INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Honorable Mayor and Town Council Town of Marana, Arizona Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the Town of Marana’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the Town of Marana’s major federal programs for the year ended June 30, 2022. The Town of Marana’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. In our opinion, the Town of Marana complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the Town of Marana and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the Town of Marana’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal c ontrol over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the Town of Marana’s federal programs. Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2020-2022 Baker Tilly US, LLP Marana Regular Town Council Meeting February 7, 2023 Page 242 of 339 Auditors’ Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Town of Marana’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accept ed auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Town of Marana’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we: •Exercise professional judgment and maintain professional skepticism throughout the audit. •Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Town of Marana’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. •Obtain an understanding of the Town of Marana’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the Town of Marana’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Marana Regular Town Council Meeting February 7, 2023 Page 243 of 339 Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditors’ Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opini on on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Marana, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Town of Marana’s basic financial statements. We issued our report thereon dated December 20. 2022, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. Marana Regular Town Council Meeting February 7, 2023 Page 244 of 339 The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Tempe, Arizona December 20, 2022 Marana Regular Town Council Meeting February 7, 2023 Page 245 of 339 See accompanying notes to the schedule of expenditures of federal awards. TOWN OF MARANA, ARIZONA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2022 Assistance Listing Grantor's Number Number Expenditures U.S. Department of Housing and Urban Development Passed through Pima County Community Development Block Entitlement Grant Cluster Community Development Block Grant 2020-2021 14.218 CT-CR-21-288 22,214$ Community Development Block Grant 2021-2022 14.218 CT-CR-22-182 44,460 Total Community Development Block Entitlement Grant Cluster 66,674 Total U.S. Department of Housing and Urban Development 66,674 U.S. Department of Justice Direct Grant Bulletproof Vest Partnership Program 16.607 JAG-06-135 10,191 Law Enforcement Assistance_Narcotics and Dangerous Drugs_Laboratory Analysis 16.001 Resolution 2018-076 MOU 14,116 COVID-19 - ACJC Arizona Coronavirus Emergency Supplemental Funding Program 16.034 ACESF-21-049 28,315 Passed through City of Tucson Edward Byrne Memorial Justice Assistance Grant Program 16.738 DC-20-013 110,166 Total U.S. Department of Justice 162,788 Executive Office of the President, Office of National Drug Control Policy Passed through Pima County - High Intensity Drug Trafficking Program 95.001 HT-20-2930 21,664 High Intensity Drug Trafficking Program 95.001 HT-21-2930 87,090 High Intensity Drug Trafficking Program 95.001 HT-22-2930 25,341 Total Executive Office of the President, Office of National Drug Control Policy 134,095 U.S. Department of Transportation Passed through Governor's Office of Highway Safety- Highway Safety Cluster Selective Traffic Enforcement (Step/Speed)20.616 2021-PTS-033 8,223 Selective Traffic Enforcement (Step/Speed)20.616 2022-PTS-036 31,310 DUI/Impaired Driving Enforcement 20.616 2021-II-003 9,104 DUI/Impaired Driving Enforcement 20.616 2022-AL-018 25,834 Total Highway Safety Cluster 74,471 Pass-Through Grantor / Cluster / Program Title Federal Grantor / 7Marana Regular Town Council Meeting February 7, 2023 Page 246 of 339 See accompanying notes to the schedule of expenditures of federal awards. TOWN OF MARANA, ARIZONA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2022 Assistance Listing Grantor's Number Number Expenditures U.S. Department of Homeland Security Passed through Arizona Department of Emergency and Military Affairs Homeland Security Grant Program - Operation Stonegarden 97.067 200420-01 319,590 Homeland Security Grant Program - Operation Stonegarden 97.067 200420-02 7,741 Homeland Security Grant Program - Operation Stonegarden 97.067 210434-01 78,263 Homeland Security Grant Program - Cybersecurity Enhancement 97.067 180410-01 20,000 Homeland Security Grant Program - Cybersecurity Enhancement 97.067 200404-01 20,000 AZ DEMA - 2021 National Homeland Security Conference 97.067 N/A 1,350 Total U.S. Department of Homeland Security 446,944 U.S. Department of Treasury Direct Grant COVID-19 - AZ Cares Fund 21.027 AZ-0032 8,187,523 * Exchange of Federal Tax Information with State Tax Agencies 21.004 1,651 Total U.S. Department of Treasury 8,189,174 Federal Aviation Administration Direct Grant COVID-19 FAA Cares Act Grant 20.106 3-04-0058-023-2020 12,349 COVID-19 Airport Coronavirus Response Grant Program 20.106 3-04-0058-025-2021 10,000 Airport Improvement Program - Siting Study 20.106 3-04-0058-024-2021 135,758 Total Federal Aviation Administration 158,107 U.S. Environmental Protection Agency Passed through the Water Infrastructure Finance Authority of Arizona Clean Water State Revolving Fund Cluster Capitalization Grants for Clean Water State Revolving Funds 66.458 910176-19 & 910183-20 157,474 Drinking Water State Revolving Fund Cluster Capitalization Grants for Drinking Water State Revolving Funds 66.468 920293-19 & 920303-20 597,501 Total U.S. Environmental Protection Agency 754,975 Total Expenditures of Federal Awards 9,987,228$ * Denotes major program Federal Grantor / Pass-Through Grantor / Cluster / Program Title 8Marana Regular Town Council Meeting February 7, 2023 Page 247 of 339 TOWN OF MARANA, ARIZONA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2022 NOTE 1 BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Town of Marana under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town of Marana, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Marana. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A)Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement. B)The Town of Marana has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. 9Marana Regular Town Council Meeting February 7, 2023 Page 248 of 339 TOWN OF MARANA, ARIZONA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2022 SECTION I – SUMMARY OF AUDITORS’ RESULTS Financial Statements Type of auditors’ report issued: Unmodified Internal control over financial reporting: •Material weakness(es) identified?__ yes __X _no •Significant deficiency(ies) identified that are not considered to be a material weakness(es)?__ _ yes __X_ none reported Noncompliance material to financial statements noted? yes __X_ no Federal Awards Internal control over major programs: •Material weakness(es) identified?____ yes __X_ no •Significant deficiency(ies) indentified that are not considered to be a material weakness(es)?__ _ yes __X_ none reported Type of auditors’ report issued on compliance for each major program listed below Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR section 200.516(a)? ____ yes __X_ no Identification of major programs: CFDA Numbers Name of Federal Program or Cluster 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (American Rescue Plan) Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? __ _ yes __X__ no 10Marana Regular Town Council Meeting February 7, 2023 Page 249 of 339 TOWN OF MARANA, ARIZONA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Year Ended June 30, 2022 SECTION II – FINDINGS RELATED TO FINANCIAL STATEMENTS REPORTED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS None Noted SECTION III – FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARDS None Noted 11Marana Regular Town Council Meeting February 7, 2023 Page 250 of 339 Town of Marana Annual Expenditure Limitation Report June 30, 2022 Marana Regular Town Council Meeting February 7, 2023 Page 251 of 339 Marana Regular Town Council Meeting February 7, 2023 Page 252 of 339 Town of Marana Annual Expenditure Limitation Report Year Ended June 30, 2022 Page Independent Accountants’ Report 1 Annual Expenditure Limitation Report—Part I 2 Annual Expenditure Limitation Report—Part II 3 Annual Expenditure Limitation Report—Reconciliation 4 Notes to Annual Expenditure Limitation Report 5 Table of Contents Marana Regular Town Council Meeting February 7, 2023 Page 253 of 339 Marana Regular Town Council Meeting February 7, 2023 Page 254 of 339 INDEPENDENT ACCOUNTANTS’ REPORT The Auditor General of the State of Arizona and The Honorable Mayor and Town Council of the Town of Marana, Arizona We have examined the accompanying Annual Expenditure Limitation Report of Town of Marana, Arizona for the year ended June 30, 2022, and the related notes to the report. The Town’s management is responsible for presenting this report in accordance with the uniform expenditure reporting system as described in Note 1. Our responsibility is to express an opinion on this report based on our examination. We conducted our examination in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether this report is presented in accordance with the uniform expenditure reporting system in all material respects. An examination involves performing procedures to obtain evidence about the amounts and disclosures in the report. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material misstatement of the report, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. In our opinion, the Annual Expenditure Limitation Report of Town of Marana, Arizona, referred to above is presented in accordance with the uniform expenditure reporting system as described in Note 1 in all material respects. Tempe, Arizona December 20, 2022 Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2020-2022 Baker Tilly US, LLP Marana Regular Town Council Meeting February 7, 2023 Page 255 of 339 See accompanying notes. TOWN OF MARANA, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - PART I Year Ended June 30, 2022 1.$23,110,050 2.158,915,530 3.$158,915,530 4.$ 91,004,408 5.-- 6.-- 7. -- 8.$ 91,004,408 9. +- 10.$ 91,004,408 11.$ 67,911,122 Name and title: Telephone number:Date: Economic Estimates Commission expenditure limitation Voter-approved alternative expenditure limitation (approved November 8, 2016) Enter applicable amount from line 1 or line 2 Amount subject to the expenditure limitation (total amount from Part II, line C) Board‑authorized expenditures necessitated by a disaster the Governor declared Board‑authorized expenditures necessitated by a disaster the Governor did not declare Prior‑year, voter-approved expenditures to exceed the expenditure limitation for the reporting fiscal year I hereby certify, to the best of my knowledge and belief, that the information contained in this report is accurate and in accordance with the requirements of the Uniform Expenditure Reporting System. Signature of chief financial officer: (520) 382-3493 Yiannis Kalaitzidis, Finance Director Board-authorized excess expenditures for the previous fiscal year necessitated by a disaster the Governor did not declare and the voters did not approve Subtotal Total adjusted amount subject to the expenditure limitation Amount under (in excess of) the expenditure limitation December 20, 2022 2Marana Regular Town Council Meeting February 7, 2023 Page 256 of 339 See accompanying notes. TOWN OF MARANA, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT – PART II Year Ended June 30, 2022 Internal Governmental Enterprise service Description funds funds funds Total A.Amounts reported on the Reconciliation, line D $ 70,943,030 15,522,753$ 4,538,625$ 91,004,405$ B.Less exclusions claimed: 1.Debt proceeds - - - - 2.Debt service requirements - - - - 3.Dividends, interest, and gains on the sale or redemption of investment securities - - - - 4.Trustee or custodian - - - - 5.Grants and aid from the federal government - - - - 6.Grants, aid, contributions, or gifts from a private agency, organization, or individual, except amounts received in lieu of taxes - - - - 7.Amounts received from the State of Arizona - - - - 8.Quasi-external interfund transactions - - - - 9.Voter-approved amounts accumulated for the purchase of land, and the purchase or construction of buildings or improvements - - - - 10.Highway user revenues in excess of those received in fiscal year 1979-80 - - - - 11.Contracts with other political subdivisions - - - - 12.Refunds, reimbursements, and other recoveries - - - - 13.Voter-approved exclusions not identified above (attach resolution)- - - - 14.Prior years carryforward - - - - 15.Qualifying capital improvement expenditures repaid in accordance with A.R.S. §41-1279.07 - - - - 16.Total exclusions claimed - - - - C.Amounts subject to the expenditure limitation $ 70,943,030 15,522,753$ 4,538,625$ 91,004,405$ 3 Marana Regular Town Council Meeting February 7, 2023 Page 257 of 339 See accompanying notes. TOWN OF MARANA, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT – RECONCILIATION Year Ended June 30, 2022 Internal Governmental Enterprise service funds funds funds Total A. 70,943,030 16,658,118$ 4,538,625$ 92,139,770$ B.Subtractions: 1.Items not requiring use of current financial resources: a.Depreciation - 5,144,291 - 5,144,291 b.Loss on disposal of capital assets - 242,379 - 242,379 c.Bad debt expense - -- - d.Pension and other postemployment benefits (OPEB) expense - 204,900 - 204,900 e.Claims incurred but not reported (IBNR)- -- - f.Landfill closure and postclosure care costs and pollution remediation - -- - 2.- -- - 3.- -- - 4. - - - - 5.- - - - 6.- 5,591,570 - 5,591,570 C. 1.Principal payments on long-term debt - 1,360,435 - 1,360,435 2.- 2,813,279 - 2,813,279 3.Amounts paid in the current year but reported as expenses in previous years: a.Claims previously recognized as IBNR - - - - b.Landfill closure and postclosure care costs and pollution remediation - - - - 4.- 282,491 - 282,491 5.- - - - 6.- 4,456,205 - 4,456,205 D.$ 70,943,030 15,522,753$ 4,538,625$ 91,004,405$ Involuntary court judgments Total subtractions Additions: Amounts reported on Part II, line A Capital asset acquisitions Pension and OPEB contributions paid in the current year Total additions Transfers to separate legal entities Total expenditures/expenses/deductions and applicable other financing uses, special items, and extraordinary items reported within the fund financial statements Expenditures of separate legal entities established under Arizona Revised Statutes Description Present value of net minimum lease, financed purchase, and subscription-based information technology arrangement (SBITA) contract payments recorded as expenditures at the agreements’ inception Required fees paid to the Industrial Commission of Arizona 4 Marana Regular Town Council Meeting February 7, 2023 Page 258 of 339 TOWN OF MARANA, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT Year Ended June 30, 2022 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Annual Expenditure Limitation Report (AELR) is presented as prescribed by the Uniform Expenditure Reporting System (UERS), as required by Arizona Revised Statutes §41-1279.07, and in accordance with the voter-approved alternative expenditure limitation adopted November 8, 2016, as authorized by the Arizona Constitution, Article IX, §20 (9). In accordance with the UERS requirements, a note to the AELR is presented below for any exclusion claimed on part II and each subtraction or addition in the Reconciliation that cannot be traced directly to an amount reported in the fund financial statements. All references to financial statement amounts in the following notes refer to the Statement of Revenues, Expenditures, and Changes in Fund Balances for the Governmental Funds, Statement of Revenues, Expenses, and Changes in Fund Net Position for the Proprietary Funds, Statement of Cash Flows for the Proprietary Funds, and the Employee Retirement Systems disclosure. NOTE 2 RECONCILIATION DEDUCTIONS AND ADDITIONS The subtraction of $204,900 for pension expense consists of the change in the net pension liability recognized in the current year in the Enterprise Funds. The addition of $282,491 for pension contributions paid in the current year consists of the required pension contributions made to the Arizona State Retirement System from the Enterprise Funds. The addition of $1,360,435 for principal payments on long-term debt in the Enterprise Funds consists of $1,167,435 paid on loans payable and $193,000 paid on bonds payable, during the current fiscal year. The addition for the acquisition of capital assets consists of $2,813,279 paid for various capital assets in the Enterprise Funds. 5Marana Regular Town Council Meeting February 7, 2023 Page 259 of 339 Town of Marana Independent Auditors’ Report Presentation to Town Council Year Ended June 30, 2022 Marana Regular Town Council Meeting February 7, 2023 Page 260 of 339 2 Required Communications with Town Council and Management •Auditors’ Report on the Financial Statements •Unmodified Opinion •Reasonable assurance the financial statements are fairly presented in accordance with GAAP. •Report on Compliance and on Internal Control over Financial Reporting •Unmodified Opinion Marana Regular Town Council Meeting February 7, 2023 Page 261 of 339 3 Communications with Town Council and Management •Baker Tilly’s Responsibility under U.S. General Accepted Auditing Standards (GAAS) •Stated in engagement letter dated May 10, 2022 •Internal control properly designed and implemented •Significant Accounting Policies and Issues Discussed •Note 1 of Financial Statements •Difficulties Encountered in Performing the Audit –None encountered •Corrected and Uncorrected Misstatements –No uncorrected misstatements •Disagreements with Management –No disagreements •Management Consultations with Other Auditors “Audit Shopping” -None noted Marana Regular Town Council Meeting February 7, 2023 Page 262 of 339 4 Communications with Town Council and Management •Other Reports •Annual Expenditure Limitation Report (AELR) •Issued to the Arizona State Auditor General timely Economic Estimates Commission Limitation $ 158,915,530 Town Expenditures Subject to Limitation 91,004,408 Amount under the expenditure Limitation $ 67,911,122 Marana Regular Town Council Meeting February 7, 2023 Page 263 of 339 5 Communications with Town Council and Management •Other Reports •Single Audit •Town Expensed $9,987,228 of federal funds in 2022 •Major programs were: •21.027 –Coronavirus State and Local Fiscal Recovery Funds •Town received an unmodified opinion on the federal single audit report Marana Regular Town Council Meeting February 7, 2023 Page 264 of 339 6 Findings and Recommendations •Findings •No Findings reported in 2022 •Recommendations •No recommendations reported in 2022 Marana Regular Town Council Meeting February 7, 2023 Page 265 of 339 7 Financial Highlights - 100 200 300 400 500 600 700 Assets Liabilities Net Position Revenues Expenses Total Government-Wide (In Millions) 2021 2022 Marana Regular Town Council Meeting February 7, 2023 Page 266 of 339 8 Financial Highlights - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 2020 2021 Fund Balance -Governmental All Governmental Funds General Fund Marana Regular Town Council Meeting February 7, 2023 Page 267 of 339 9 Financial Highlights - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 Water Wastewater Airport Fund Balance -Enterprise Funds 2020 2021 2022 Marana Regular Town Council Meeting February 7, 2023 Page 268 of 339 Questions? Marana Regular Town Council Meeting February 7, 2023 Page 269 of 339      Council-Regular Meeting   C1        Meeting Date:02/07/2023   To:Mayor and Council Submitted For:Jing Luo, Water Director From:Stephen Dean, Deputy Water Director Date:February 7, 2023 Strategic Plan Focus Area: Vibrant Community,  Proactive Public Services Subject:Ordinance No. 2023.003: Relating to Finance; temporarily waiving the fee required under Section 14-6-3(J) of the Marana Town Code for late payment of water rates, charges, or fees, beginning retroactively on January 1, 2023 and continuing until March 7, 2023 (Jing Luo) Discussion: On January 16, 2023, the Marana Water Department went live with its new Customer Information System (CIS), which is utilized for billing all applicable water and sewer customers. Significant notification efforts (post cards, bills, website, instagram, etc.) were made to notify customers of the change before the Go-Live date. However, some customers that pay online may be delayed in enrolling with the new CIS. As a result, this item proposes temporarily waiving the late fee required under Title 14 of the Marana Town Code, as included in the Town's comprehensive fee schedule, from January 1, 2023 until March 7, 2023 to account for those customers transitioning to the new CIS. Financial Impact: Fiscal Year:FY2023 Budgeted Y/N:Y Amount:$145,000 Marana Regular Town Council Meeting February 7, 2023 Page 270 of 339 Late fee revenues for fiscal year 2022-2023 are budgeted at $145,000.  The financial impact of waiving the fees should not exceed $22,000. Staff Recommendation: Staff recommends approval of Ordinance No. 2023.003. Suggested Motion: I move to adopt Ordinance No. 2023.003, Relating to Finance; temporarily waiving the fee required under Section 14-6-3(J) of the Marana Town Code for late payment of water rates, charges, or fees, beginning retroactively on January 1, 2023 and continuing until March 7, 2023. Attachments Ordinance No. 2023.003 Marana Regular Town Council Meeting February 7, 2023 Page 271 of 339 00086316.DOCX /1 Ordinance No. 2023.003 - 1 - MARANA ORDINANCE NO. 2023.003 RELATING TO FINANCE; TEMPORARILY WAIVING THE FEE REQUIRED UNDER SECTION 14-6-3(J) OF THE MARANA TOWN CODE FOR LATE PAYMENT OF WATER RATES, CHARGES, OR FEES, BEGINNING RETROACTIVELY ON JANUARY 1, 2023 AND CONTINUING UNTIL MARCH 7, 2023 WHEREAS the Town Council is authorized by A.R.S. § 9-240(A) to control the finances of the Town; and WHEREAS Section 14-6-3(J) of the Marana Town Code requires a late payment fee to “be added to a customer’s water bill if any water rates, charges or fees are not paid in full by the next billing date”; and WHEREAS the Town Council, via Ordinance No. 2021.008, adopted an amended comprehensive fee schedule on May 18, 2021, which was made a public record by and attached as Exhibit A to Resolution No. 2021-071; and WHEREAS from time to time the Town Council has adopted amendments to the comprehensive fee schedule, most recently on October 18, 2022, via Ordinance No. 2022.023; and WHEREAS the comprehensive fee schedule includes a generally applicable $15.00 late payment fee; and WHEREAS in January of 2023, the Marana Water Department implemented a new Customer Information System (CIS), which is used for billing all water and sewer customers; and WHEREAS significant efforts were made to notify all customers of the change in billing systems prior to the new CIS’s implementation; and WHEREAS some customers that pay online may be delayed in enrolling with the new CIS; and WHEREAS the Mayor and Council of the Town of Marana find that temporarily waiving the late payment fee as addressed in this ordinance is in the best interests of the Town and its residents. NOW, THEREFORE, BE IT ORDAINED by the Mayor and Council of the Town of Marana, Arizona, as follows: SECTION 1. The fee required under Section 14-6-3(J) of the Marana Town Code for late payment of water rates, charges, or fees, as included in the Town’s comprehensive Marana Regular Town Council Meeting February 7, 2023 Page 272 of 339 00086316.DOCX /1 Ordinance No. 2023.003 - 2 - fee schedule adopted by the Town Council and amended from time to time, is hereby temporarily waived beginning retroactively on January 1, 2023 and continuing until March 7, 2023. Notwithstanding the waiver of this fee, all Marana water and sewer customers shall still be required to pay all other required rates and fees. SECTION 2. The various town officers and employees are authorized and directed to perform all acts necessary or desirable to give effect to this ordinance. SECTION 3. All ordinances, resolutions, or motions and parts of ordinances, resolutions, or motions of the Council in conflict with the provisions of this ordinance are hereby repealed, effective as of the effective date of this ordinance. SECTION 4. If any section, subsection, sentence, clause, phrase or portion of the this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, the decision shall not affect the validity of the remaining portions of this ordinance. SECTION 5. This ordinance is administrative, and shall be effective immediately. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 7th day of February, 2023. Mayor Ed Honea ATTEST: David L. Udall, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney Marana Regular Town Council Meeting February 7, 2023 Page 273 of 339      Council-Regular Meeting   C2        Meeting Date:02/07/2023   To:Mayor and Council From:Brian Varney, Senior Planner Date:February 7, 2023 Strategic Plan Focus Area: Not Applicable Subject:Resolution No. 2023-010: Relating to Development; approving the final plat for Tortolita Mountain Estates, Lots 1-81, and Common Areas "A" (Drainage / Open Space) and "B" (Recreation) located north of Tangerine Road and east of Camino de Oeste within Section 31, Township 11 South and Range 13 East (Brian D. Varney)  Discussion: Request  Baker and Associates Engineering, Inc., on behalf of the property owner, is requesting approval of a final plat consisting of 81 lots and Common Areas "A" (Drainage / Open Space) and "B" (Recreation) on approximately 34.3 acres of land.  Location  The proposed subdivision is located approximately a quarter-mile north of Tangerine Road on the east side of Camino de Oeste.  Zoning    The zoning of the property is R-7 (Residential) per Marana Ordinance No. 2021.015 approved by the Town Council on August 17, 2021. Land Use  The final plat proposes 81 residential lots and common areas utilized for open space and drainage as well as for recreation. The subdivision sets aside 15.4 acres as drainage and open space, and approximately 0.5 acres of recreation area distributed between two park sites. The plat proposes a minimum lot size of 7,012 square feet, a maximum Marana Regular Town Council Meeting February 7, 2023 Page 274 of 339 two park sites. The plat proposes a minimum lot size of 7,012 square feet, a maximum lot size of 11,037 square feet, and an average lot size of 7,821 square feet, yielding a density of 2.36 residences per acre.     Access and Traffic Circulation      The proposed subdivision ingress and egress will be provided at two points along Camino de Oeste. The plat proposes approximately 0.7 miles of new public streets.  Infrastructure and Utilities Water service to the property will be provided through the Water Wheeling Intergovernmental Agreement between the Town and the City of Tucson. The developer will enter into the Town of Marana Agreement for Construction of Water Facilities under Private Contract and will construct the required water facilities. The developer agrees to install the water infrastructure improvements in accordance with plans approved by the Town. The developer will also enter into a separate facilities construction agreement with the City of Tucson, and will be required to construct certain offsite water infrastructure in coordination with the City of Tucson. The Town will take ownership of, operate, and service the facilities installed by the developer.  Wastewater service will be provided by the Pima County Regional Wastewater Reclamation Department.  Staff Recommendation: Staff has reviewed the request against the requirements of Marana Ordinance No. 2021.015, the Marana Town Code, and the Marana General Plan. This final plat is in substantial conformance with all required development regulations, and staff recommends approval.  Suggested Motion: I move to adopt Resolution No. 2023-010, approving the final plat for Tortolita Mountain Estates, Lots 1-81 and Common Areas "A" and "B".   Attachments Resolution No. 2023-010 Tortolita Mountain Estates FP Location Map PRV2206-008 Tortolita Mountain Estates_App Marana Regular Town Council Meeting February 7, 2023 Page 275 of 339 .DOCX /1 Marana Resolution No. 2023-010 - 1 - MARANA RESOLUTION NO. 2023-010 RELATING TO DEVELOPMENT; APPROVING THE FINAL PLAT FOR TORTOLITA MOUNTAIN ESTATES, LOTS 1-81, AND COMMON AREAS “A” (DRAINAGE / OPEN SPACE) AND “B” (RECREATION) LOCATED NORTH OF TANGERINE ROAD AND EAST OF CAMINO DE OESTE WITHIN SECTION 31, TOWNSHIP 11 SOUTH AND RANGE 13 EAST WHEREAS, on August 17, 2021, the Mayor and Town Council adopted Ordinance No. 2021.015, approving a rezoning of approximately 34 acres of land within Section 31, Township 11 South, and Range 13 East from R-144 (Residential) to R-7 (Residential); and WHEREAS, the preliminary plat for Tortolita Mountain Estates, Lots 1-81 and Common Areas “A” (Drainage / Open Space) and “B” (Recreation) was approved on October 11, 2022; and, WHEREAS Baker and Associates Engineering, Inc., representing the property owner, has applied for approval of the final plat for Tortolita Mountain Estates, Lots 1-81 and Common Areas “A” (Drainage / Open Space) and “B” (Recreation) located north of Tangerine Road and east of Camino de Oeste; WHEREAS the Mayor and Town Council, at its February 7, 2023 meeting, determined that the final plat for Tortolita Mountain Estates, Lots 1-81 and Common Areas “A” and “B” should be approved. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA that the final plat for Tortolita Mountain Estates, Lots 1-81 and Common Areas “A” and “B” is hereby approved. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 7th day of February 2023. Mayor Ed Honea ATTEST: David L. Udall, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney Marana Regular Town Council Meeting February 7, 2023 Page 276 of 339 .DOCX /1 Marana Resolution No. 2023-010 - 2 - Marana Regular Town Council Meeting February 7, 2023 Page 277 of 339 Marana Regular Town Council Meeting February 7, 2023 Page 278 of 339 Marana Regular Town Council Meeting February 7, 2023 Page 279 of 339 Marana Regular Town Council Meeting February 7, 2023 Page 280 of 339 Marana Regular Town Council Meeting February 7, 2023 Page 281 of 339 Marana Regular Town Council Meeting February 7, 2023 Page 282 of 339 © Latitude Geographics Group Ltd. 0.6 THIS MAP IS NOT TO BE USED FOR NAVIGATION WGS_1984_Web_Mercator_Auxiliary_Sphere Miles0.6 Notes Legend This map is a user generated static output from an Internet mapping site and is for reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. 0.280 1:18,056 PRV2206-008: Tortolita Mountain EstatesTown of Marana Planning Marana Town Limits Parcel Labels Parcels (Black) PRV2206-008 Tortolita Mountain Estates Tangerine Road Camino de OesteThornydale RoadMoore Road Tortolita Vistas Marana Regular Town Council Meeting February 7, 2023 Page 283 of 339 Marana Regular Town Council Meeting February 7, 2023Page 284 of 339      Council-Regular Meeting   C3        Meeting Date:02/07/2023   To:Mayor and Council From:Brian Varney, Senior Planner Date:February 7, 2023 Strategic Plan Focus Area: Not Applicable Subject:Resolution No. 2023-011: Relating to Development; approving a final re-plat of The Preserve at Twin Peaks, Lots 44 through 46, generally located east of Camino de Manana and approximately a quarter mile north of Lambert Lane within Section 12, Township 12 South and Range 12 East (Brian D. Varney)  Discussion: History The final plat for The Preserve at Twin Peaks, Lots 1-190 and Common Areas "A", "B1" - "B5", "C1" and "C2" was approved by the Town Council on March 3, 2020 by the adoption of Resolution No. 2020-020. The subdivision is currently being developed by Lennar Homes.  Request The WLB Group, Inc., representing Lennar Communities Development, Inc., is requesting approval of a final re-plat of The Preserve at Twin Peaks, Lots 44 through 46. Lennar is proposing this re-plat in order to perform a minor lot line adjustment to each of the three lots. These adjustments are proposed in order to rectify an error in the field surveying and lot staking of the three lots.  The proposed adjustments will affect the three lots as follows: Lot 44: The lot area will be increased from the existing 10,516 square feet to 10,700 square feet yielding a net increase of 184 square feet.  Lot 45: The lot area will be increased from the existing 10,200 square feet to 10,735 square feet yielding a net increase of 535 square feet. Marana Regular Town Council Meeting February 7, 2023 Page 285 of 339 Lot 46: The lot area will be decreased from the existing 8,639 square feet to 7,920 square feet yielding a net decrease of 719 square feet.     Staff Recommendation: Staff has reviewed the proposed plat against the requirements of The Preserve at Twin Peaks Specific Plan, the Marana Town Code, and the Marana General Plan. The proposed plat is in substantial conformance with all required development regulations, and staff recommends approval.  Suggested Motion: I move to adopt Resolution No. 2023-011, approving the Final Re-plat of The Preserve at Twin Peaks, Lots 44 through 46.   Attachments Resolution No. 2023-011 The Preserve at Twin Peaks 44-46 FP Location Map PRV2210-004 The Preserve at Twin Peaks App Marana Regular Town Council Meeting February 7, 2023 Page 286 of 339 .DOCX /1 Marana Resolution No. 2023-011 - 1 - MARANA RESOLUTION NO. 2023-011 RELATING TO DEVELOPMENT; APPROVING A FINAL RE-PLAT OF THE PRESERVE AT TWIN PEAKS, LOTS 44 THROUGH 46, GENERALLY LOCATED EAST OF CAMINO DE MANANA AND APPROXIMATELY A QUARTER MILE NORTH OF LAMBERT LANE WITHIN SECTION 12, TOWNSHIP 12 SOUTH AND RANGE 12 EAST WHEREAS, on February 18, 2014, the Mayor and Town Council adopted Ordinance No. 2014.004, approving The Preserve at Twin Peaks Specific Plan; and WHEREAS, on November 17, 2015, the Mayor and Town Council adopted Resolution No. 2015-120, approving the preliminary plat for The Preserve at Twin Peaks, Lots 1 through 195 and Common Areas “A”, “B”, and “C”; and WHEREAS, on March 3, 2020, the Mayor and Town Council adopted Resolution No. 2020-020, approving the final plat for The Preserve at Twin Peaks, Lots 1 through 190 and Common Areas “A”, “B1” – “B5”, “C1”, and “C2”; and WHEREAS The WLB Group, representing Lennar Communities Development, Inc., has applied for approval of the final re-plat of The Preserve at Twin Peaks, Lots 44 through 46 generally located east of Camino de Manana and approximately a quarter mile north of Lambert Lane within Section 12, Township 12 South and Range 12 East; and WHEREAS the Mayor and Town Council, at its February 7, 2023 meeting, determined that the final re-plat of The Preserve at Twin Peaks, Lots 44 through 46 should be approved. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA that the final re-plat of The Preserve at Twin Peaks, Lots 44 through 46 is hereby approved. Marana Regular Town Council Meeting February 7, 2023 Page 287 of 339 .DOCX /1 Marana Resolution No. 2023-011 - 2 - PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 7th day of February 2023. Mayor Ed Honea ATTEST: David L. Udall, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney Marana Regular Town Council Meeting February 7, 2023 Page 288 of 339 PRV2210-004 § 12 61 1211 712 8 7 13 12 1314 12 LAMBERT LN. MARANA PIMA COUNTYMANANACMO DETOWN OF THIS PROJECT 11 1-12-23 216-25-0170 216-25-019B216-25-0203 216-25-020E 216-26-003C TOWN OF MARANA 216-26-004D 216-26-004A 216-26-004B 216-26-004C 216-26-0060 216-24-012B 216-27-005J 216-27-005C 216-27-005F 216-27-005B 216-27-0060 216-24-0210 2688.93'PIMA COUNTY PIMA COUNTY TOWN OF MARANA 69 138 126 111 77 68 137 117 100 76 67 136 118 101 75 66 135 119 102 74 65 142 134 122 120 107 103 81 73 64 141 133 123 121 108 104 80 72 63 140 132 124 112 109 105 79 71 70 62 139 131 125 113 11078 130 114 145 129 115 144 128 116 143 127 106 25 176 177 146 28 147 179 29 148 18097 30 165 34 150 166 32 35 167 86 7 52 152 168 22 6 153 885 55 170 4 155 187 90 19 91 41 58 23 17 42 59 190 16 159 92 15 161 94 46 162 95 47 11 60 26 61 27 178 48 164 10 149 18198 31 9 50 18299 8 51 151 183 33 184 87 54 169 185 21 154 186 89 20 39 56 171 3 40 57 156 172 188 18 2 157 173 189 1 158 174 24 43 44 160 93 14 45 1312 163 96 53 49 3738 36 175 82 83 84 85 C.A. C1 C . A . B 2 THE PRESERVE AT TWIN PEAKS SEQ. 20202660138 C.A. "B-1" C.A. "B-1" C.A. "B-1" C.A. "B-1" C.A. "B-1" C.A. "B-5" C.A. "B-4" C. A . " B - 3 " N88°18'49"E 2575.33'2086.32'S02°02'18"E (BASIS OF BEARINGS)C.A. "B-1" Marana Regular Town Council Meeting February 7, 2023 Page 289 of 339 69717042464748504344 45 49COMMON AR E A B - 5Δ2 1 2 1 10' P .U .E .1' N .A .E .21' 2 Δ 21' 1 PRV2210-004 1-12-23 2 12688.93'2086.32'S02°02'18"E (BASIS OF BEARINGS)Marana Regular Town Council Meeting February 7, 2023 Page 290 of 339 © Latitude Geographics Group Ltd. 0.3 THIS MAP IS NOT TO BE USED FOR NAVIGATION WGS_1984_Web_Mercator_Auxiliary_Sphere Miles0.3 Legend This map is a user generated static output from an Internet mapping site and is for reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. 0.140 PRV2210-004: The Preserve at TwinPeaks, Lots 44-46Town of Marana Planning Notes 1:9,0281:9,028 Marana Town Limits Parcel Labels Parcels (Black)Twin Peaks RoadCamino de MananaLambert Lane Lots 44-46 The Preserve at Twin Peaks Marana Regular Town Council Meeting February 7, 2023 Page 291 of 339 Development Services /maranaplanning@maranaAZ.gov 11555 West Civic Center Drive / Marana, AZ 85653 Ph (520) 382-2600 / Fax (520) 382-2641 / maranaAZ.gov PROJECT APPLICATION APPLICATION TYPE ‰Annexation ‰Development Plan ‰Development Plan Package ‰General Plan Amendment ‰Rezone ‰Minor Land Division ‰Significant Land Use Change ‰Conditional Use Permit ‰Specific Plan ‰Landscape Plan ‰Native Plant Plan/Exception ‰SWPP ‰Variance ‰Hydraulic Model ‰Sewer Capacity Assurance ‰Sign Program ‰Plat ‰Improvement Plan ‰Report (Type): ______________‰Other: ___________________ PROJECT INFORMATION Project Name: Description of Project:Number of Lots: Parcel No.(s):Gross Area (Acres): Project Address: Ref. Project No.: CONTACT INFORMATION Owner:Contact Name: Address:City:State:Zip: Email:Phone No.: Applicant:Contact Name: Address:City:State:Zip: Email:Phone No.: Consultant/Engineer:Contact Name: Address:City:State:Zip: Email:Phone No.: OWNER/APPLICANT AUTHORIZATION I hereby certify that the information set forth in this application are true and correct to the best of my knowledge and that I am either the owner of the property or that I have been authorized in writing by the owner to file this application. (If applicant is not the owner, attach written authorization from the owner.) Applicant Name (PRINT)Signature Date FOR OFFICIAL USE ONLY Project No.______________________Date Received____________________Revision Date 03/29/2019 The Preserve at Twin Peaks Resubdivision of Lots 44 - 46 3 216-26-0510; 0520; 0530 0.67 5271 W. Camino De Manana PRV1907-002; PRV1503-003; PCZ12023 Lennar Communities Development Inc.Nicole Cantalicio 3275 W. Ina Road Suite 275 Tucson AZ 85741 nicole.cantalicio@lennar.com (520) 747-0997 The WLB Group, Inc.Linda Thompson 4444 E. Broadway Tucson AZ 85711 lthompson@wlbgroup.com (520) 390-1086 The WLB Group, Inc. Linda Thompson 4444 E. Broadway Tucson AZ 85711 lthompson@wlbgroup.com (520) 390-1806 Linda Thompson Linda Thompson Digitally signed by Linda Thompson Date: 2022.11.01 10:34:21 -07'00'11/1/2022 Marana Regular Town Council Meeting February 7, 2023 Page 292 of 339      Council-Regular Meeting   C4        Meeting Date:02/07/2023   To:Mayor and Council From:David L. Udall, Town Clerk/Assistant Town Attorney Date:February 7, 2023 Strategic Plan Focus Area: Not Applicable Subject:Resolution No. 2023-012: Relating to Water; approving and authorizing the Mayor to sign an Agreement for Construction of Water Facilities Under Private Contract with Tangerine 2021, LLC for Crossroads at Gladden (David L. Udall) Discussion: This agenda item presents a water infrastructure construction agreement authorized pursuant to Title 14 of the Marana Town Code for the Crossroads at Gladden development located north of Tangerine Road and west of Interstate 10. If approved, this agreement will require the developer to construct the water infrastructure necessary to serve its development. Staff Recommendation: Staff recommends approval of Resolution No. 2023-012. Suggested Motion: I move to adopt Resolution No. 2023-012, approving and authorizing the Mayor to sign an Agreement for Construction of Water Facilities Under Private Contract with Tangerine 2021, LLC for Crossroads at Gladden. Attachments Resolution No. 2023-012 Marana Regular Town Council Meeting February 7, 2023 Page 293 of 339 Resolution No. 2023-012 Crossroads at Gladden Water Service Agreement Marana Regular Town Council Meeting February 7, 2023 Page 294 of 339 - 1 - Resolution No. 2023-012 MARANA RESOLUTION NO. 2023-012 RELATING TO WATER; APPROVING AND AUTHORIZING THE MAYOR TO SIGN AN AGREEMENT FOR CONSTRUCTION OF WATER FACILITIES UNDER PRIVATE CONTRACT WITH TANGERINE 2021, LLC FOR CROSSROADS AT GLADDEN WHEREAS, Tangerine 2021, LLC desires for the Town to provide water services to the land described and depicted in the Final Block Plat for Crossroads at Gladden Blocks 1 – 8, recorded in the Pima County Recorder’s office on December 10, 2021 at Sequence 20213440123; and WHEREAS, Town staff has negotiated an Agreement for Construction of Water Facilities Under Private Contract with Tangerine 2021, LLC for Crossroads at Gladden ; and WHEREAS, the Mayor and Council find that the terms and conditions of the agreement are in the best interests of the Town. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, that the Agreement for Construction of Water Facilities Under Private Contract with Tangerine 2021, LLC for Crossroads at Gladden in substantially the form included with the agenda backup material accompany ing this resolution is hereby approved, the Mayor is hereby authorized and directed to sign it for and on behalf of the Town of Marana, and the Town’s Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms, obligations, and objectives of the agreement. Marana Regular Town Council Meeting February 7, 2023 Page 295 of 339 - 2 - Resolution No. 2023-012 PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 7th day of February 2023. Mayor Ed Honea ATTEST: David L. Udall, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney Marana Regular Town Council Meeting February 7, 2023 Page 296 of 339 00083972.DOCX /51 TOWN OF MARANA AGREEMENT FOR CONSTRUCTION OF WATER FACILITIES UNDER PRIVATE CONTRACT Crossroads at Gladden THIS AGREEMENT (this “Agreement”) is entered into by and between the TOWN OF MARANA, an Arizona municipal corporation (the “Town”), and TANGERINE 2021, LLC, a Delaware limited liability company (the “Developer”). The Town and the Developer are sometimes collectively referred to as the “Parties,” each of which is sometimes individually referred to as a “Party.” RECITALS A. This Agreement is entered into and authorized pursuant to Title 14 of the Marana Town Code, as it may be amended from time to time (“Marana Town Code Title 14”). B. The Developer desires for the Town to provide water service to the land described and depicted in the Final Block Plat for Crossroads at Gladden Blocks 1 – 8, recorded in the Pima County Recorder’s office on December 10, 2021 at Sequence 20213440123, which land area is referred to in this Agreement as the “Crossroads Property.” C. The Developer is the master developer of the Crossroads Property. D. The Town and the Developer are parties to “The Crossroads at Gladden Development Agreement,” recorded in the Pima County Recorder’s office on April 22, 2022 at Sequence 20221120085 (the “Crossroads at Gladden Development Agreement”) and approved by Marana Resolution No. 2022-039, adopted by the Marana Town Council on April 19, 2022. E. The Crossroads at Gladden Development Agreement governs development of the Crossroads Property and requires the Developer to install potable water distribution infrastructure. F. As a condition of securing water service from the Town and as more particularly set forth herein, the Developer is required to install those certain water infrastructure improvements (the “Crossroads Trail Water Facilities”) in accordance with the required plans, specifications, and materials as outlined and depicted in the “Water Plans for Crossroads Trail,” Plan No. W-2208-017, sealed by Rick Engineering Company on October 12, 2022 and approved by the Marana Water Department on November 1, 2022 (the “Crossroads Trail Water Facilities Plans”). G. The Town and Gladden Phase II, LLC, a Delaware limited liability co mpany (“Gladden”), are parties to that certain “Gladden Farms II Development Agreement,” recorded on March 10, 2006 in Sequence No. 20060470594, as it may be amended from time to time (the “Gladden Farms II Development Agreement”). Marana Regular Town Council Meeting February 7, 2023 Page 297 of 339 00083972.DOCX /52 H. The Gladden Farms II Development Agreement governs development of the property set forth in the Gladden Development Agreement (the “Gladden Farms II Property”) and Gladden has agreed to install certain water infrastructure improvements (the “Clark Farms Boulevard Water Facilities”) in accordance with the required plans, specifications, and materials as outlined and depicted in the Water Distribution to Serve Gladden Farms – Clark Farms Boulevard Plan, Plan No. ENG2111-002, sealed by the Rick Engineering Company on January 11, 2022 and approved by the Town of Marana Water Department on January 24, 2022, as amended and sealed by the Rick Engineering Company on August 3, 2022 (the “Clark Farms Boulevard Water Facilities Plans”). I. The Crossroads Trail Water Facilities and the Clark Farms Boulevard Water Facilities are sometimes collectively referred to herein as the “Water Facilities”. The Crossroads Trail Water Facilities Plans and the Clark Farms Boulevard Water Facilities Plans are sometimes collectively referred to herein as the “Facilities Plans.” The Facilities Plans are on file with the Marana Water Department. J. The Developer desires for the Town to take ownership of, operate, and service the Crossroads Trail Water Facilities. K. The Town is willing to accept the Crossroads Trail Water Facilities and permit them to be connected to the Town water system provided they meet Town standards and the work under the Crossroads Trail Water Facilities Plans is done in accordance with Town requirements. AGREEMENT NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants set forth in this Agreement, the Parties hereby agree as follows: 1. The Water Facilities 1.1. Installation of Clark Farms Boulevard Water Facilities; responsibilities of the Developer in relation to the Clark Farms Boulevard Water Facilities. The provisions for water service by the Town to the Gladden Farms II Property is addressed in the Gladden Farms II Development Agreement. As of the date of this Agreement, Gladden, as developer of the Gladden Farms II Property, is currently causing the construction and installation of the Clark Farms Boulevard Water Facilities. Developer and Gladden are related parties and Developer agrees to cause the completion of the Clark Farms Boulevard Water Facilities if the Clark Farms Boulevard Water Facilities are not fully completed by Gladden in substantial conformance with the Clark Farms Boulevard Water Facilities Plans. Developer shall ensure (or shall cause Gladden to ensure) that the Clark Farms Boulevard Water Facilities conform to the design standards of the City of Tucson Water Department and the Town of Marana Town Code Title 14 and special specifications and details as approved by the Town and by this reference made a part of this Agreement. The Clark Farms Boulevard Water Facilities Plans include a plan note identifying the Clark Farms Boulevard Water Facilities as new water facilities and show any and all alterations to the existing water system. Construction and installation of the Clark Farms Boulevard Water Facilities in accordance with the Clark Farms Boulevard Water Facilities Plans, including without limitation all labor, materials, equipment, supplies, and tools required for the construction and installation, is referred to in this Agreement as the “Clark Farms Boulevard Water Facilities Work.” Marana Regular Town Council Meeting February 7, 2023 Page 298 of 339 00083972.DOCX /53 1.2. Installation of the Crossroads Trail Water Facilities. Developer has designed and shall cause the installation, at the Developer’s own expense, the Crossroads Trail Water Facilities as depicted in the Crossroads Trail Water Facilities Plans. The Crossroads Trail Water Facilities shall conform to the design standards of the City of Tucson Water Department and the Town of Marana Town Code Title 14 and special specifications and details as approved by the Town and by this reference made a part of this Agreement. The Crossroads Trail Water Facilities Plans include a plan note identifying the Crossroads Trail Water Facilities as new water facilities and show any and all alterations to the existing water system. Construction and installation of the Crossroads Trail Water Facilities in accordance with the Crossroads Trail Water Facilities Plans, including without limitation all labor, materials, equipment, supplies, and tools required for the construction and installation, is referred to in this Agreement as the “Crossroads Trails Water Facilities Work.” The Clark Farms Boulevard Water Facilities Work and the Crossroads Trails Water Facilities Work are sometimes referred to herein collectively as the “Work.” 1.3. Work by licensed contractor. Developer shall ensure (or shall cause Gladden to ensure) that the Work has been, or will be, performed by a contractor properly licensed by the State of Arizona as determined by the Arizona Registrar of Contractors. In addition to any other contractor’s license classifications required by the Arizona Registrar of Contractors, the contractor shall hold contractor’s license classifications A, A-12 and A-16. 1.4. Payment of connection fees. Before any service connections are made from the Town’s water system to the Water Facilities, the person or entity seeking the service connection shall pay to the Town the connection fees and any other fees required under Marana Town Code Title 14. 1.5. Anticipated cost per meter. The person or entity seeking installation of a meter from the Town shall pay all applicable fees and charges in effect at the time of the meter installation request. As of the effective date of this Agreement, the Town’s fees and charges to install a five-eighths-inch water meter on the Crossroads Property are detailed below. Note that larger meters incur higher fees. 1.5.1. Meter Install Fee: $360 1.5.2. Water Infrastructure Impact Fee: $2,331 1.5.3. Water Resource Development Impact Fee: $3,050 1.6. Water Facilities approval by Town. No service connections shall be made from the Town’s water system to the Water Facilities until the Water Facilities have been accepted by the Town in accordance with Marana Town Code Title 14. 1.7. Developer’s certification. Execution of this Agreement certifies that the Developer has reviewed the Facilities Plans and all other specifications applicable to the Work and has approved and agrees with the location of all service lines required for the Crossroads Property and the Gladden Farms II Property. 1.8. Termination for lack of Work. Subject to Force Majeure Events (as defined below), approval of the Water Facilities Plans shall lapse and this Agreement shall terminate if the Work has not commenced within one year of the date of this Agreement or if the Work is discontinued for a period of one year. For purposes hereof, “Force Majeure Events” means strikes, lockouts, fire or other casualties, significant changes in availability of material or labor Marana Regular Town Council Meeting February 7, 2023 Page 299 of 339 00083972.DOCX /54 shortages beyond those existing at the time of this Agreement, governmental regulations or controls not in existence as of the date of this Agreement, governmental delays, pandemics, acts of God, or other similar causes beyond the reasonable control of Developer. 2. Engineering and Inspection 2.1. Registered civil engineer. The Developer has caused, or shall cause, a Civil Engineer registered in the State of Arizona to design, lay out, establish control lines for and certify the layout of the Work according to the Water Facilities Plans. 2.2. Town inspector’s authority. Any inspector authorized by the Town shall have full inspection authority over the Work. 2.3. Inspection provisions. The Developer shall furnish (or shall cause Gladden to furnish) the Town’s inspector with all facilities reasonably necessary to inspect the Work. The Work shall be subject to Town inspection at all reasonable times. Defective Work shall be corrected in a manner satisfactory to the Town’s inspector. Inspection by the Town is for the purpose of ensuring compliance with Water Facilities Plans only. The Town makes no guarantee as to the safety or engineering soundness of plans prepared by the Developer or any contractor. 2.4. Payment of Town inspector’s overtime cost. If scheduling by a contractor reasonably requires the Town’s inspector to work overtime, the Developer or contractor shall pay the Town for any additional salaries, expenses or employee benefits relating to the overtime. For purposes of this paragraph, overtime is any time over 40 hours worked in a seven-day work period, any time over eight hours worked Monday through Friday, and any time worked on weekends and legal holidays observed by the Town. 3. Preconstruction Procedure for Crossroads Trail Water Facilities 3.1. Request to begin construction. The Developer shall submit a written request to the Town to begin construction five working days before work on the Crossroads Trail Water Facilities is to commence. 3.2. Construction permit. This Agreement shall be completed, signed and notarized, and returned to the Town prior to issuance of a construction permit for the Crossroads Trail Water Facilities Work. 3.3. Start and completion of the Crossroads Trails Facilities Work. No portion of the Crossroads Trails Facilities Work shall begin until the Town has issued a construction permit specifying the starting date and a reasonable time for completion. 3.4. Progress of the Crossroads Trails Facilities Work. The Crossroads Trails Facilities Work shall be commenced and carried on at such points and in such order as may be directed by the Town. 3.5. Materials sampling and testing. Materials shall be available for sampling and testing by the Town prior to being used in the Crossroads Trails Facilities Work. Materials that fail to meet Town specification shall be removed from the site. 3.6. Permits and approvals. Developer shall, at the Developer’s own expense, obtain all necessary permits and licenses for the Crossroads Trail Water Facilities Work, pay all fees, and comply with all laws, ordinances, and regulations relating to the Crossroads Trail Water Facilities Work. Marana Regular Town Council Meeting February 7, 2023 Page 300 of 339 00083972.DOCX /55 4. Construction of the Water Facilities 4.1. Developer’s availability. The Developer or the Developer’s designated representative (including, without limitation, a designated representative of Gladden) shall be reasonably available at all times during performance of the Work. The name of the Developer’s and Gladden’s designated representative is Dean Wingert. The name of the contractor performing the Clark Farms Boulevard Water Facilities Work is Borderland Construction Company. The name of the contractor performing the Crossroads Trail Water Facilities Work shall be furnished to the Town before the Crossroads Trail Water Facilities Work begins. Instructions given by the Town to the designated agent shall be deemed to have been given to the Developer. 4.2. Competence and diligence. The Developer shall retain (and shall cause Gladden to retain) only competent and efficient laborers, mechanics, or artisans on the Work, and the Developer shall diligently cause (and shall cause Gladden to diligently cause) the completion of the Work on or before the completion date given in a notice to proceed. 4.3. Paving. The Developer shall identify and locate (and shall cause Gladden to identify and locate) all water valves prior to paving and set valve boxes to final grade after paving. 4.4. Alterations to the existing Town water system. The Developer shall, at the Developer’s own expense, make any and all alterations to the existing water system either on- site or off-site necessitated by paving, drainage, or other improvements caused by the development of the Crossroads Property and the Gladden Farms II Property. 4.5. Worksite safety. The Developer shall take commercially reasonably measures to ensure (and shall cause Gladden to take commercially reasonably measures to ensure) that all contractors and subcontractors performing any portion of the Work comply with all safety requirements of the Occupational Safety and Hazards Act as set forth by the Federal Government and as implemented by the State of Arizona. The Developer or its contractors and subcontractors shall be solely responsible for all fines or other penalties provided for by law for any violations of the Occupational Safety Hazards Act. 5. Dedication of Crossroads Trail Water Facilities 5.1. Transfer of the Crossroads Trail Water Facilities to the Town. Upon the Town’s final acceptance of the Crossroads Trail Water Facilities Work, the Developer shall at no cost grant, bargain, sell, convey, transfer, and deliver to the Town the Crossroads Trail Water Facilities free and clear of all liens, claims, charges, or encumbrances. Notwithstanding anything to the contrary set forth herein, by virtue of its execution of this Agreement the Town expressly acknowledges and agrees that the Clark Farms Boulevard Water Facilities are included in and subject to a Town-supervised Community Facilities District (the “District” or “CFD”) and the Clark Farms Boulevard Water Facilities will be dedicated to the District and operated by the Town in accordance with the standard CFD process. 5.2. Two-year warranty. The Developer guarantees (and shall cause Gladden to guarantee) the Work to be free from all failures due to poor workmanship or materials for a period of two years from the date of the Town’s final acceptance of the Work. 5.3. Other conflicting construction prohibited. The Developer shall not construct or allow (and shall cause Gladden not to construct or allow) the construction of any utility, structure, Marana Regular Town Council Meeting February 7, 2023 Page 301 of 339 00083972.DOCX /56 building, or other improvement that would interfere with the operation or maintenance of the Water Facilities. 5.4. Developer’s obligation to maintain finished grade. The Developer guarantees that all service lines, meters, and meter boxes on the Crossroads Property will be to finished grade and that the Developer will remain responsible for raising or lowering said services as required until the Crossroads Property is fully developed. 5.5. Acceptance by the Town. The Town shall accept title to and take possession of the Crossroads Trail Water Facilities when the Crossroads Trail Water Facilities Work has been completed to the satisfaction of the Town. Subject to the Developer’s continuing obligations under this Agreement, the Town shall operate and service the Crossroads Trails Water Facilities after taking over possession of them under this paragraph. 6. Miscellaneous 6.1. Indemnity. Developer shall indemnify, defend, and hold harmless (or shall cause Gladden to indemnify, defend, and hold harmless) the Town, its Mayor and Council, officers and employees, boards, committees and commissions from and against any loss, claim, suit, demand, cause of action, or liability of any nature, including but not limited to damage to property and injuries to persons, including death, arising or alleged to have arisen, in whole or in part, out of any negligent act or omission of the Developer, Gladden, or any contractor, subcontractor, or any person employed directly or indirectly by any of them in the performance of the Work or in the operation of the Water Facilities. 6.2. Binding effect. This Agreement shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of the Parties. 6.3. Consent required for assignment. The Developer may not assign this Agreement without the prior written consent of the Town. 6.4. Cancellation for conflict of interest. This Agreement is subject to A.R.S. § 38-511, which provides for cancellation in certain instances involving conflict of interest. 6.5. Counterparts. This Agreement may be executed in a number of identical counterparts. If so executed, each of such counterparts is to be deemed an original for all purposes, and all such counterparts shall, collectively, constitute one agreement. Signatures transmitted by facsimile and e-mailed pdf signatures shall be valid as originals. 6.6. Entirety and Amendments. This Agreement embodies the entire agreement between the Parties and supersedes all prior agreements and understandings, if any, relating to the transaction described herein, and may be amended or supplemented only by an instrument in writing executed by the Party against whom enforcement is sought. 6.7. Headings. Headings used in this Agreement are used for reference purposes only and do not constitute substantive matter to be considered in construing the terms of this Agreement. 6.8. Time of Essence. It is expressly agreed by the Parties hereto that time is of the essence with respect to this Agreement. Marana Regular Town Council Meeting February 7, 2023 Page 302 of 339 00083972.DOCX /57 [Signature page follows.] Marana Regular Town Council Meeting February 7, 2023 Page 303 of 339 00083972.DOCX /58 IN WITNESS WHEREOF the Parties have executed this Agreement as of the last date set forth below their respective signatures. THE “TOWN”: TOWN OF MARANA, an Arizona municipal corporation By: Ed Honea, Mayor Date: ATTEST: David L. Udall, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney THE “DEVELOPER”: TANGERINE 2021, LLC, a Delaware limited liability company By:______________________________ Its:_______________________________ Date:____________________ STATE OF ARIZONA ) )ss County of ____________ ) The foregoing instrument was acknowledged before me on ___________________, 2023 by _____________________________, ____________________ of TANGERINE 2021, LLC, a Delaware limited liability company, on its behalf. (Seal) Notary Public Marana Regular Town Council Meeting February 7, 2023 Page 304 of 339      Council-Regular Meeting   C5        Meeting Date:02/07/2023   To:Mayor and Council From:David L. Udall, Town Clerk/Assistant Town Attorney Date:February 7, 2023 Strategic Plan Focus Area: Proactive Public Services Subject:Resolution No. 2023-013: Relating to Water; approving and authorizing the Mayor to sign an Agreement for Construction of Water Facilities under Private Contract for Tortolita Mountain Estates, Lots 1-81 (David L. Udall) Discussion: The Tortolita Mountain Estates development is located north of Tangerine Road and east of Camino de Oeste. This agenda item presents a water infrastructure construction agreement for Tortolita Mountain Estates, Lots 1-81 pursuant to Marana Town Code Section 14-4-2. If approved, this agreement will require the developer to construct certain water infrastructure improvements in order for water to be served to the property. Due to the location of the development, the developer will construct offsite water infrastructure in coordination with the City of Tucson. This offsite infrastructure will deliver water up to the point of connection to the onsite water infrastructure that will be constructed in coordination with the Town, at which point the water will be delivered through the Town's onsite water infrastructure to the property. To that end, the developer and the Town desire for the terms and conditions of the Intergovernmental Agreement Between the City of Tucson and the Town of Marana relating to the Delivery of Central Arizona Project Water (commonly referred to as the "Wheeling IGA") to apply to this water service agreement. Marana has an allocation of CAP water, a portion of which can be delivered to Tucson Water underground storage facilities in Avra Valley and subsequently recovered and conveyed through Tucson's potable water distribution system. Marana Regular Town Council Meeting February 7, 2023 Page 305 of 339 potable water distribution system. On January 19, 2021, the Marana Town Council adopted the following approach for when to apply the Wheeling IGA: (1) projects located within the Marana Water Department's intended service area would be required connect to Marana water infrastructure, meaning no wheeling would be allowed for these projects, and all applicable impact fees would be assessed; (2) projects located in areas outside the Marana Water Department's intended service area would be candidates for permanent wheeling, and would be required to pay a fee for acquiring additional water resources because these developments would not be included in projected water developments in the Town's current Designation of Assured Water Supply (DAWS). This water service agreement complies with the wheeling approach established by the Marana Town Council. Staff Recommendation: Staff recommends approval of Resolution No. 2023-013. Suggested Motion: I move to adopt Resolution No. 2023-013, approving and authorizing the Mayor to sign an Agreement for Construction of Water Facilities under Private Contract for Tortolita Mountain Estates, Lots 1-81. Attachments Resolution No. 2023-013 Agreement for Construction of Water Facilities under Private Contract for Tortolita Mountain Estates, Lots 1-81 Marana Regular Town Council Meeting February 7, 2023 Page 306 of 339 - 1 - Marana Resolution No. 2023-013 MARANA RESOLUTION NO. 2023-013 RELATING TO WATER; APPROVING AND AUTHORIZING THE MAYOR TO SIGN AN AGREEMENT FOR CONSTRUCTION OF WATER FACILITIES UNDER PRIVATE CONTRACT FOR TORTOLITA MOUNTAIN ESTATES, LOTS 1-81 WHEREAS, Orla O’Reilly Hazra and Sanat Hazra, as Co-Trustees of the Orla O’Reilly Hazra and Sanat Hazra Joint Trust dated September 8, 2020, and Title Security Agency, LLC, a Delaware limited liability company, as Trustee under Trust No. 202214- S, and not in its corporate capacity, desire for the Town to provide water services to the land described in the Special Warranty Deed recorded in the office of the Recorder of Pima County, Arizona, on July 29, 2014, at Sequence 20142100582; and WHEREAS, Town staff has negotiated an Agreement for Construction of Water Facilities under Private Contract for Tortolita Mountain Estates, Lots 1-81, which incorporates the terms and conditions of the Intergovernmental Agreement Between the City of Tucson and the Town of Marana relating to the Delivery of Central Arizona Project Water recorded in the office of the Recorder of Pima County, Arizona, on August 21, 2020, at Sequence 20202340063 (commonly referred to as the “Wheeling IGA”); and WHEREAS, the Mayor and Council find that the terms and con ditions of the agreement are in the best interests of the Town. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, that the Agreement for Construction of Water Facilities under Private Contract for Tortolita Mountain Estates, Lots 1-81 in substantially the form included with the agenda backup material accompanying this resolution is hereby approved, the Mayor is hereby authorized and directed to sign it for and on behalf of the Town of Marana, and the Town’s Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms, obligations, and objectives of the agreement. Marana Regular Town Council Meeting February 7, 2023 Page 307 of 339 - 2 - Marana Resolution No. 2023-013 PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 7th day of February 2023. Mayor Ed Honea ATTEST: David L. Udall, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney Marana Regular Town Council Meeting February 7, 2023 Page 308 of 339 00077482.DOCX /2 - 1 - 1/4/2023 12:55 PM TOWN OF MARANA AGREEMENT FOR CONSTRUCTION OF WATER FACILITIES UNDER PRIVATE CONTRACT Tortolita Mountain Estates, Lots 1-81 THIS AGREEMENT (this “Agreement”) is entered into by and between the TOWN OF MARANA, an Arizona municipal corporation (the “Town”), and ORLA O’REILLY HAZRA AND SANAT HAZRA, as Co-Trustees of the ORLA O’REILLY HAZRA AND SANAT HAZRA JOINT TRUST dated September 8, 2020 (the “Hazra Trust”), and TITLE SECURITY AGENCY, LLC, a Delaware limited liability company, as Trustee under Trust No. 202214-S, and not in its corporate capacity (“Title Security 202214-S”). The Hazra Trust and Title Security are collectively referred to in this Agreement as the “Developer.” The Town and the Developer are sometimes collectively referred to as the “Parties,” each of which is sometimes individually referred to as a “Party.” RECITALS A. This Agreement is entered into and authorized pursuant to Title 14 of the Marana Town Code as it may be amended from time to time (“Marana Town Code Title 14”). B. The Developer desires for the Town to provide water service to the land described in the Special Warranty Deed recorded in the office of the Recorder of Pima County, Arizona, on July 29, 2014, at Sequence 20142100582 (the “Subject Property”). C. Title Security 202214-S owns the Subject Property. The Hazra Trust is the sole benefi- ciary of Title Security 202214-S. D. Effective August 21, 2020, the Town and the City of Tucson (the “City”) entered into the Intergovernmental Agreement between the City of Tucson and the Town of Marana relating to the Delivery of Central Arizona Project Water recorded in the office of the Recorder of Pima County, Arizona, at Sequence 20202340063 (the “Water Wheeling IGA”). The Water Wheeling IGA allows the Marana Water Department (“Marana Water”) to provide potable water service to certain areas of land that (1) are within the Marana town limits, (2) are too far away from Marana Water’s existing water infrastructure to receive cost-effective service from Marana Water, and (3) are close enough to be served by water infrastructure owned and operated by the Tucson Water Department (“Tucson Water”) but do not meet Tucson Water’s service area policy. The Water Wheeling IGA requires that the Town use its own CAP water, which will be wheeled through Tucson Water’s potable water system to points of interconnection to the new Marana Water cus- tomers. E. The Subject Property is located in an area that meets the three criteria for service under the Water Wheeling IGA, as described in recital D above. Marana Regular Town Council Meeting February 7, 2023 Page 309 of 339 00077482.DOCX /2 - 2 - 1/4/2023 12:55 PM F. The Developer requested that the Town and the City use the Water Wheeling IGA to deliver water to the Subject Property, and the Town and the City agreed that the Subject Property is a candidate for wheeling per the Water Wheeling IGA. G. In order to receive water through the Water Wheeling IGA, the Developer must enter into an agreement for construction of water facilities under private contract with the Town and a separate facilities construction agreement with the City. H. As a condition of securing water service from the Town for the Subject Property, the Developer agrees to install those certain water infrastructure improvements (the “Developer-In- stalled Facility”) in accordance with the required plans, specifications, and materials as outlined and depicted in the Public Water Distribution System To Serve Tortolita Mountain Estates, Lots 1 - 81, Plan No. ENG2208-009, sealed by Baker & Associates Engineering, Inc. on September 21, 2022 and accepted by the Town of Marana Water Department on October 28, 2022 (the “Facility Plan”), which is on file in the office of the Town of Marana Water Department. I. The Developer desires that the Town take ownership of, operate, and service the Devel- oper-Installed Facility. J. The Town is willing to accept the Developer-Installed Facility, provided it meets Town standards and the work is done in accordance with Town requirements. K. As described in the Facility Plan, the Developer must construct certain offsite water infrastructure (the “Offsite Work”) in coordination with the City of Tucson in order for water to be delivered to the Subject Property. AGREEMENT NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants set forth in this Agreement, the Parties hereby agree as follows: 1. The Water Wheeling IGA 1.1. Applicability. All of the terms and conditions of the Water Wheeling IGA shall apply herein as though they were set forth in this Agreement in full. 2. The Developer-Installed Facility 2.1. Developer installation of the Developer-Installed Facility. The Developer has designed and shall install, at the Developer’s own expense, the water infrastructure improvements as de- picted in the Facility Plan. The water infrastructure improvements depicted in the Facility Plan are referred to in this Agreement as the “Developer-Installed Facility,” and shall conform to the design standards of the City of Tucson Water Department and the Town of Marana Town Code Title 14 and special specifications and details as approved by the Town and by this reference made a part of this Agreement. The Facility Plan shall include a plan note identifying the Developer-Installed Facility as a new water facility and shall show any and all alterations to the existing water system. Construction and installation of the Developer-Installed Facility in accordance with the Facility Plan, including without limitation all labor, materials, equipment, supplies, and tools required for the construction and installation, is referred to in this Agreement as the “Work.” 2.2. Work by licensed contractor. The Work shall be performed by a contractor properly li- censed by the State of Arizona as determined by the Arizona Registrar of Contractors. In addition Marana Regular Town Council Meeting February 7, 2023 Page 310 of 339 00077482.DOCX /2 - 3 - 1/4/2023 12:55 PM to any other contractor’s license classifications required by the Arizona Registrar of Contractors, the contractor shall hold contractor’s license classifications A, A-12 and A-16. 2.3. Applicable fees. As a condition of and prerequisite to the Town accepting the Work, the Developer shall pay all applicable fees, including, but not limited to, fees for permitting and in- spection, as set forth by the Town of Marana and the City of Tucson. 2.4. Payment of connection fees. Before any service connections are made to the Developer- Installed Facility, the person or entity seeking the service connection shall pay to the Town the connection fees and any other fees required by Marana Town Code Title 14. 2.5. Anticipated cost per meter. The person or entity seeking installation of a meter from the Town shall pay all applicable fees and charges in effect at the time of the meter installation request. As of the effective date of this Agreement, the Town’s fees and charges to install a five-eighths- inch water meter on the Subject Property are: 2.5.1. Meter Install Fee: $360 2.5.2. Water Resource Development Impact Fee: $3,050 2.5.3. If larger meters are installed, the person or entity seeking installation shall pay the applicable Meter Install Fee, as set forth in the Town of Marana fee schedule, and the applica- ble Water Resource Development Impact Fee, as set forth in Marana Ordinance No. 2014.013 recorded in the office of the Recorder of Pima County, Arizona, on May 9, 2014, at Sequence 20141290586, a copy of which is on file in the office of the Marana Town Clerk. 2.5.4. The Meter Install Fee and Water Resource Development Impact Fee outlined above reflect the fees established as of the Effective Date of this Agreement. By listing them herein, the Town does not guarantee the fees will remain at the same rate as at the time they are due. 2.6. Developer-Installed Facility acceptance by Town and the City of Tucson. No service con- nections shall be made to the Developer-Installed Facility until the Developer-Installed Facility has been accepted by the Town in accordance with Marana Town Code Title 14 and until the Offsite Work has been accepted by the City of Tucson. The Developer must provide the Town of Marana Water Department with written verification of the City of Tucson’s final acceptance of the Offsite Work prior to final acceptance of the Work by the Town. 2.7. Developer’s certification. Execution of this Agreement certifies that the developer has reviewed the Facility Plan and all other specifications applicable to the Work and has approved and agrees with the location of all service lines. 2.8. Termination for lack of Work. Approval of the Facility Plan shall lapse and this Agreement shall terminate if more than one year has passed since the date of this Agreement and the Work has not begun, or if the Work is discontinued for a period of one year. 2.9. City of Tucson Agreement Contingency. The rights and obligations of the Parties under this Agreement are contingent upon Developer entering into a separate facilities construction agreement with the City of Tucson. Orla and Sanat Hazra have satisfied this condition by enter- ing into the Agreement for Construction of Water Facilities Under Private Contract (No. DP1755) with the City of Tucson on October 19, 2022. Marana Regular Town Council Meeting February 7, 2023 Page 311 of 339 00077482.DOCX /2 - 4 - 1/4/2023 12:55 PM 2.10. Developer responsible for Offsite Work. The Developer shall be solely responsible for the Offsite Work and for complying with the terms and conditions of any agreement with the City of Tucson related thereto. 3. Engineering and Inspection 3.1. Registered civil engineer. The developer shall employ a registered Civil Engineer to de- sign, lay out, establish control lines for and certify the layout of the Work according to the Facility Plan. 3.2. Town inspector’s authority. Any inspector authorized by the Town shall have full inspec- tion authority over the Work. 3.3. Inspection provisions. The Developer shall furnish the Town’s inspector with all facilities reasonably necessary to inspect the Work. The Work shall be subject to Town inspection at all times. Defective work shall be corrected in a manner satisfactory to the Town’s inspector. Inspec- tion by the Town is for the purpose of ensuring compliance with plans and specifications only. The Town makes no guarantee as to the safety or engineering soundness of plans prepared by the Developer or any contractor. 3.4. Payment of Town inspector’s overtime cost. If scheduling by the Developer’s contractor reasonably requires the Town’s inspector to work overtime, the Developer or Developer’s con- tractor shall pay the Town for any additional salaries, expenses or employee benefits relating to the overtime. For purposes of this paragraph, overtime is any time over 40 hours worked in a seven-day work period, any time over eight hours worked Monday through Friday, and any time worked on weekends and legal holidays observed by the Town. 4. Preconstruction Procedure 4.1. Request to begin construction. The Developer shall submit a written request to begin con- struction to the Town five working days before the Work is to commence. 4.2. Construction permit. This Agreement shall be completed, signed and notarized, and re- turned to the Town prior to issuance of a construction permit for the Work. 4.3. Start and completion of the Work. No portion of the Work shall begin until the Town has issued a construction permit specifying the starting date and a reasonable time for completion. 4.4. Progress of the Work. The Work shall be commenced and carried on at such points and in such order as may be directed by the Town. 4.5. Materials sampling and testing. Materials shall be available for sampling and testing by the Town prior to being used in the Work. Materials that fail to meet Town specification shall be re- moved from the site. 4.6. Permits and approvals. The Developer shall, at Developer’s expense, obtain all necessary permits and licenses for the Work, pay all fees and comply with all laws, ordinances and regulations relating to the Work. 5. Construction 5.1. Developer’s presence on site. The developer, or Developer’s designated agent, shall be present at all times during performance of the Work. The name of the Developer’s designated agent and the contractor performing the Work shall be furnished to the Town before the Work Marana Regular Town Council Meeting February 7, 2023 Page 312 of 339 00077482.DOCX /2 - 5 - 1/4/2023 12:55 PM begins. Instructions given by the Town to the designated agent shall be deemed to have been given to the Developer. 5.2. Competence and diligence. The Developer shall employ only competent and efficient la- borers, mechanics or artisans on the Work, and the Developer agrees to perform diligently to com- plete the Work on or before the completion date given in the notice to proceed. 5.3. Paving. The Developer shall identify and locate all water valves prior to paving and set valve boxes to final grade after paving. 5.4. Alterations to the existing Town water system. The Developer shall, at Developer’s ex- pense, make any and all alterations to the existing water system either on-site or off-site necessi- tated by paving, drainage, or other improvements caused by the development of the Subject Prop- erty. 5.5. Worksite safety. The Developer shall require all contractors and subcontractors performing any portion of the Work to comply with all safety requirements of the Occupational Safety and Hazards Act as set forth by the Federal Government and as implemented by the State of Arizona. The Developer or its contractors shall be solely responsible for all fines or other penalties provided for by law for any violations of the Occupational Safety Hazards Act. 6. Dedication 6.1. Transfer of the Developer-Installed Facility to the Town. Upon the Town’s final ac- ceptance of the Work, the Developer shall at no cost grant, bargain, sell, convey, transfer and deliver to the Town the Developer-Installed Facility free and clear of all liens, claims, charges or encumbrances. 6.2. Two-year warranty. The Developer guarantees the Work to be free from all failures due to poor workmanship or materials for a period of two years from the date of the Town’s final acceptance of the Work. 6.3. Other conflicting construction prohibited. The Developer shall not construct or allow the construction of any utility, building, or other improvement that would interfere with the operation or maintenance of the Developer-Installed Facility. 6.4. Developer’s obligation to maintain finished grade. The Developer guarantees that all ser- vice lines, meters, and meter boxes on the Subject Property will be to finished grade and that Developer will remain responsible for raising or lowering said services as required until the Sub- ject Property is fully developed. 6.5. Acceptance by the Town. The Town shall accept title to and take possession of the Devel- oper-Installed Facility when the Work has been completed to the satisfaction of the Town. Subject to the Developer’s continuing obligations under this Agreement, the Town shall operate and ser- vice the Developer-Installed Facility after taking over possession of it under this paragraph. 7. Miscellaneous 7.1. Indemnity. Developer shall indemnify, defend, and hold harmless the Town, its Mayor and Council, officers and employees, boards, committees and commissions from and against any loss, claim, suit, demand, cause of action, or liability of any nature, including but not limited to damage to property and injuries to persons, including death, arising or alleged to have arisen, in whole or in part, out of any negligent act or omission of the Developer or any contractor, subcontractor, or Marana Regular Town Council Meeting February 7, 2023 Page 313 of 339 00077482.DOCX /2 - 6 - 1/4/2023 12:55 PM any person employed directly or indirectly by any of them in the performance of the Work or in the operation of the Developer-Installed Facility. 7.2. Binding effect. This agreement shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of the Parties. 7.3. Consent required for assignment and delegation. The Developer intends to assign and del- egate its rights and responsibilities under this Agreement to a third party entity and may do so upon the prior written consent of the Town, which consent shall not be unreasonably withheld. 7.4. Cancellation for conflict of interest. This agreement is subject to A.R.S. § 38-511, which provides for cancellation in certain instances involving conflict of interest. 7.5. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The signature pages from one or more counterparts may be removed from such counterparts and at- tached to a single instrument so that the signatures of all Parties may be physically attached to a single document. [Signature page follows.] Marana Regular Town Council Meeting February 7, 2023 Page 314 of 339 00077482.DOCX /2 - 7 - 1/4/2023 12:55 PM IN WITNESS WHEREOF, the Parties have executed this Agreement as of the last date set forth be- low their respective signatures. THE “TOWN”: THE TOWN OF MARANA, an Arizona municipal corporation By: Ed Honea, Mayor Date: ATTEST: David L. Udall, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney [Notary page follows.] THE “DEVELOPER”: ORLA O’REILLY HAZRA AND SANAT HAZRA, as Trustees of the ORLA O’REILLY HAZRA AND SANAT HAZRA JOINT TRUST dated Sep- tember 8, 2020 By: Orla O’Reilly Hazra Co-Trustee Date: By: _________________________________ Sanat Hazra Co-Trustee Date: _______________________________ TITLE SECURITY AGENCY, LLC, a Delaware limited liability company, as Trustee under Trust No. 202214-S, and not in its corporate capacity By: ________________________________ Name: _____________________________ Its: ________________________________ Date: _______________________________ Marana Regular Town Council Meeting February 7, 2023 Page 315 of 339 00077482.DOCX /2 - 8 - 1/4/2023 12:55 PM STATE OF ARIZONA ) ss County of Pima ) The foregoing instrument was acknowledged before me on _________________, 2023, by Orla O’Reilly Hazra, as Trustee of the ORLA O’REILLY HAZRA AND SANAT HAZRA JOINT TRUST dated September 8, 2020, on behalf of the trust. (Seal) Notary Public STATE OF ARIZONA ) ss County of Pima ) The foregoing instrument was acknowledged before me on _________________, 2023, by Sanat Hazra, as Co-Trustee of the ORLA O’REILLY HAZRA AND SANAT HAZRA JOINT TRUST dated Sep- tember 8, 2020, on behalf of the trust. (Seal) Notary Public STATE OF ARIZONA ) ss County of Pima ) The foregoing instrument was acknowledged before me on _________________, 2023, by ____________________________, as ____________________________ of TITLE SECURITY AGENCY, LLC, a Delaware limited liability company, as Trustee under Trust No. 202214-S, and not in its corporate capacity. (Seal) Notary Public Marana Regular Town Council Meeting February 7, 2023 Page 316 of 339      Council-Regular Meeting   C6        Meeting Date:02/07/2023   To:Mayor and Council Submitted For:Jing Luo, Water Director From:Asia Philbin, Water Resources Coordinator Date:February 7, 2023 Strategic Plan Focus Area: Proactive Public Services Subject:Resolution No. 2023-014: Relating to the Water Department; approving and authorizing the submission of a grant application to the Bureau of Reclamation under the WaterSMART Grants: Water Recycling and Desalination Planning for Fiscal Year 2024 program and verifying certain information required under the program (Jing Luo) Discussion: The Water Department has identified a grant opportunity that could help fund its project to evaluate potential potable water reuse options, conduct a feasibility study for short-listed alternatives, and develop a master plan for potable reuse in the Town of Marana. The application process requires the Town Council to adopt a resolution verifying the following: • The identity of the official with legal authority to enter into an agreement;  • The Town Council or appropriate official who has reviewed and supports the application submitted; and • That the Town will work with the Bureau of Reclamation to meet established deadlines for entering into a grant or cooperative agreement. If adopted, this resolution will verify the foregoing information and authorize the Town to submit the grant application. If the Town's application is accepted, staff will return to seek Council's approval of a grant agreement. Marana Regular Town Council Meeting February 7, 2023 Page 317 of 339 Financial Impact: The anticipated application request and possible grant award will not occur until early fiscal year 2024.  The anticipated amount will be $150,000, which is equal to the match amount ($50K in-kind as staff time). Water will budget $250,000 for the planning. This resolution is required to submit the application.  Staff Recommendation: Staff recommends approval of Resolution No. 2023-014. Suggested Motion: I move to adopt Resolution No. 2023-014; approving and authorizing the submission of a grant application to the Bureau of Reclamation under the WaterSMART Grants: Water Recycling and Desalination Planning for Fiscal Year 2024 program and verifying certain information required under the program. Attachments Resolution No. 2023-014 Marana Regular Town Council Meeting February 7, 2023 Page 318 of 339 - 1 - 00086325.DOCX /1 Resolution No. 2023-014 MARANA RESOLUTION NO. 2023-014 RELATING TO THE WATER DEPARTMENT; APPROVING AND AUTHORIZING THE SUBMISSION OF A GRANT APPLICATION TO THE BUREAU OF RECLAMATION UNDER THE WATERSMART GRANTS: WATER RECYCLING AND DESALINATION PLANNING FOR FISCAL YEAR 2024 PROGRAM AND VERIFYING CERTAIN INFORMATION REQUIRED UNDER THE PROGRAM WHEREAS the Town of Marana desires to apply for a WaterSMART Grant provided by the United States Bureau of Reclamation, Notice of Funding Opportunity No. R23AS00076 (NOFO No. R23AS00076), in the amount of approximately $150,000.00 to assist the Town in assisting the Town with water recycling and desalination planning; and WHEREAS as part of the application process, the Bureau of Reclamation requires the Town to include with its grant application a resolution adopted by the Marana Town Council verifying: (1) the identity of the official with legal authority to enter into an agreement, (2) the Town Council or an appropriate official who has reviewed and supports the application submitted, and (3) that the Town will work with the Bureau of Reclamation to meet established deadlines for entering into an agreement; and WHEREAS the Mayor and Council feel it is in the best interests of the Town and its citizens to apply for the WaterSMART Grant and to verify the required information in furtherance of the grant application. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, that the Town hereby verifies the following: (1) the Town Manager is authorized to enter into an agreement for and on behalf of the Town of Marana for purposes of this grant opportunity, (2) the Town of Marana Water Director has reviewed and supports the application that will be finalized and submitted to the Bureau of Reclamation by the submission deadline and (3) the Town of Marana will work with the United States Bureau of Reclamation to meet established deadlines for entering into a grant or cooperative agreement. IT IS FURTHER RESOLVED that the submission of a grant application to the Bureau of Reclamation under the WaterSMART Grants: Water Recycling and Desalination Planning for Fiscal Year 2024 is hereby approved and authorized and that Marana Regular Town Council Meeting February 7, 2023 Page 319 of 339 - 2 - 00086325.DOCX /1 Resolution No. 2023-014 the Town’s Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the grant application. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 7th day of February, 2023. Mayor Ed Honea ATTEST: David L. Udall, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney Marana Regular Town Council Meeting February 7, 2023 Page 320 of 339      Council-Regular Meeting   C7        Meeting Date:02/07/2023   To:Mayor and Council From:David L. Udall, Town Clerk/Assistant Town Attorney Date:February 7, 2023 Subject:Approval of Study Session Summary Minutes of January 10, 2023, Special Council Meeting Summary Minutes of January 11, 2023, and Regular Council Meeting Summary Minutes of January 17, 2023 (David L. Udall) Attachments Study Session Summary Minutes, 01/10/2023 Special Council Meeting Summary Minutes, 01/11/2023 Regular Council Meeting Summary Minutes, 01/17/2023 Marana Regular Town Council Meeting February 7, 2023 Page 321 of 339 Council Study Session Meeting January 10, 2023 P a g e | 1 MARANA TOWN COUNCIL STUDY SESSION 11555 W. Civic Center Drive, Marana, Arizona 85653 Second Floor Conference Center, January 10, 2023, at or after 6:00 PM Ed Honea, Mayor Jon Post, Vice Mayor Patti Comerford, Council Member Jackie Craig, Council Member Herb Kai, Council Member John Officer, Council Member Roxanne Ziegler, Council Member SUMMARY MINUTES CALL TO ORDER AND ROLL CALL Mayor Honea called the meeting to order at 6:01 PM and directed the Town Clerk to call the roll. All Council Members were present, constituting a quorum. PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE: Led by Mayor Honea. APPROVAL OF AGENDA Council Member Ziegler moved to approve the agenda as presented. Vice Mayor Post seconded the motion. Motion passed, 7-0. DISCUSSION/DIRECTION/POSSIBLE ACTION D1 Relating to Budget; presentation, discussion and direction regarding the framework for development of the fiscal year 2023-2024 budget and its role in the implementation of the Strategic Plan (Terry Rozema and Yiannis Kalaitzidis) Marana Regular Town Council Meeting February 7, 2023 Page 322 of 339 Council Study Session Meeting January 10, 2023 P a g e | 2 Town Manager Terry Rozema and Finance Director Yiannis Kalaitzidis presented on this item. A copy of the PowerPoint presentation is on file with the Town Clerk’s Office. Mr. Rozema introduced the topic and said this next fiscal year’s budget will be based on what is anticipated to happen in the economy over in the next several months. He discussed Town’s Strategic Plan 5, including the Town’s vision, mission, and five focus areas. Mr. Rozema highlighted some of the Town’s accomplishments and initiatives realized so far during the current fiscal year within those five focus areas. Council Member Ziegler mentioned the importance of cherishing our heritage, and asked if the Town would be hiring a historian to help preserve the Town’s history. Mr. Rozema explained there was a position request for a historian, but there may not be funding for new position requests for the upcoming fiscal year. He said the position may need to wait for another fiscal year. Council Member Comerford expressed concern about the traffic backed up on Interstate 10 at the Tangerine Road exit. Mr. Rozema said the Town was working on interim improvements to help alleviate the problem. Council Member Craig asked about the open space master plan. Mr. Rozema stated it was not scheduled to go forward this upcoming fiscal year and Development Services Director Jason Angell confirmed it was scheduled in the strategic plan to be completed in 2025. Finance Director Yiannis Kalaitzidis presented on the Town’s economic and budget outlook for fiscal year 2023/2024. Mr. Kalaitzidis emphasized that this is only the first look at the numbers and that things could change. He said the Federal Reserve is anticipated to continue to raise interest rates as we go into the first half of the new fiscal year. Because the future is uncertain and could involve an economic downturn, Mr. Kalaitzidis recommended a conservative approach at this stage. Please see the PowerPoint slides for further information. Council Member Craig asked for confirmation regarding whether a conservative budget would preclude the Town from spending in the event additional spending was needed. Mr. Kalaitzidis explained that was the case, but that the budget will reset every year. Deputy Town Manager Erik Montague said the Town’s approach was to be reasonably conservative, not overly conservative or overly aggressive. Council Member Ziegler asked when the Permanent Base Adjustment took effect. Mr. Kalaitzidis said it would be effective for the new fiscal year and that the Home Rule option would also remain in effect during that time. Mayor Honea said that in 45 years, the Town has never been in a position where it needed to spend more money than it had budgeted. Mr. Kalaitzidis and Mr. Rozema said the Town had a year of prosperity during the previous year and held some money in reserve, which will help the Town prepare for the year ahead. Mr. Kailitzidis went over a preliminary outlook on revenue deceases for next year and addressed questions related to the PowerPoint slides. Please see the slides for more information. Marana Regular Town Council Meeting February 7, 2023 Page 323 of 339 Council Study Session Meeting January 10, 2023 P a g e | 3 Mr. Kalaitzidis explained that the Town is currently looking at a significant reduction in state-shared revenue due to a one-time increase in a prior year resulting from the postponement of and income tax filing deadline during the pandemic. Mayor Honea said that part of the distribution was based on population, and he asked for confirmation that the Town’s percentage of state-shared revenue would increase as a result of increased population. Mr. Kalaitzidis said he would look into it and provide an update, and that any such increase was not currently factored into the budget outlook. Mr. Kalaitzidis went over the graphs and tables as shown in the PowerPoint slides. He said there was a consensus there will likely be a downturn in the economy in the coming year. Mr. Kalaitzidis said department heads we asked to maintain current service levels when putting their budgets together. Council Member Craig asked if current service levels could be maintained with so much growth in the Town. Mr. Kalaitzidis explained that department heads would take into account what it would take to maintain current service levels with the growth factored in. Mr. Rozema said the Town also had vacancy savings over the last two years available in addition to the money held in reserve from the last fiscal year. Vice Mayor Post mentioned reserve fund money could be used in a tough year. Mr. Montague explained that the budget stabilization fund is available to use at the Council’s discretion, but that vacancy savings were a one-time resource. A discussion then ensued related to maintaining five-star service levels and the realities of the forecasted economic conditions. Preliminary ideas to balance these were proposed, including: using reserve funding to maintain service levels, asking employees to step up and offering overtime pay, finding ways to show employee appreciation, looking at federal grant money, continuing tuition reimbursement, getting the Council out to more community events, creating a list of department projects organized by priority, and maintaining unity between the Council and Town staff. Vice Mayor Post and Mayor Honea noted the Town may be in a good position to hire during a downturn if people leave other organizations as a result of the downturn, and that it might also be in a good position to pursue certain capital improvement projects. Mr. Rozema thanked the Council for their comments. He said the Town’s focus right now with respect to the budget would be on employee retention rather than hiring. EXECUTIVE SESSIONS Pursuant to A.R.S. § 38-431.03, the Town Council may vote to go into executive session, which will not be open to the public, to discuss certain matters. E1 Executive Session pursuant to A.R.S. §38-431.03 (A), Council may ask for discussion or consideration, or consultation with designated Town Marana Regular Town Council Meeting February 7, 2023 Page 324 of 339 Council Study Session Meeting January 10, 2023 P a g e | 4 representatives, or consultation for legal advice with the Town Attorney, concerning any matter listed on this agenda for any of the reasons listed in A.R.S. §38-431.03 (A). FUTURE AGENDA ITEMS Notwithstanding the Mayor’s discretion regarding the items to be placed on the agenda, if three or more Council members request that an item be placed on the agenda, it must be placed on the agenda for the second regular Town Council meeting after the date of the request, pursuant to Marana Town Code Section 2-4-2(B). ADJOURNMENT Mayor Honea asked for a motion to adjourn the meeting. Vice Mayor Post moved to adjourn the meeting. Council Member Ziegler seconded the motion. Motion passed, 7-0. Meeting adjourned at 7:36 PM. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council Study Session Meeting held on January 10, 2023. I further certify that a quorum was present. ________________________________________ David L. Udall, Town Clerk Marana Regular Town Council Meeting February 7, 2023 Page 325 of 339 Special Council Meeting Summary Minutes January 11, 2023 Page 1 of 5 MARANA TOWN COUNCIL SPECIAL COUNCIL MEETING 11555 W. Civic Center Drive, Marana, Arizona 85653 Marana Police Department Community Room, January 11, 2023, at or after 11:00 AM Ed Honea, Mayor Jon Post, Vice Mayor Patti Comerford, Council Member Jackie Craig, Council Member Herb Kai, Council Member John Officer, Council Member Roxanne Ziegler, Council Member SUMMARY MINUTES CALL TO ORDER AND ROLL CALL Mayor Honea called the meeting to order at 11:10 AM and directed Town Clerk to call the roll. Vice Mayor Post, Council Member Craig, and Council Member Kai were absent. All other Council Members were present, constituting a quorum. PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE: Led by Mayor Honea. APPROVAL OF AGENDA Council Member Ziegler moved to approve the agenda as presented. Motion passed, 4-0. ITEMS FOR DISCUSSION/POSSIBLE ACTION Marana Regular Town Council Meeting February 7, 2023 Page 326 of 339 Special Council Meeting Summary Minutes January 11, 2023 Page 2 of 5 D1 Relating to Parks and Recreation: Presentation, discussion, and update regarding the Multi-Generational Community Center and Aquatics Facility project and possible direction related to design plans, project costs, and next steps. Town Manager Terry Rozema introduced the item and provided a summary of the October 5, 2022 Special Council meeting. He said today’s meeting would focus on a design and budget update. Mr. Peter Nimmer, Senior Project Manager with Abacus Project Management, Inc., provided an update regarding the selection of Chase Building Team as the construction manager at risk for the project. Mr. Jeff Dupuis, Project Director with Chase Building Team, summarized their work thus far and said they were working closely with the design team. Council Member Ziegler asked if construction costs were coming down, and Mr. Dupuis said they were. Mr. Mike Rosso, Architect/Project Manager with Architekton, Inc., and Mr. John Kane, Architect with Architekton, provided a PowerPoint presentation with a table of the project budget and various slides showing the updated design of the multi-generational community center and aquatics center. A copy of the PowerPoint presentation is on file with the Town Clerk’s Office. The project is approximately halfway through design/development. Clarifying questions were asked and answered throughout the presentation. Much of the presentation was visual, and the PowerPoint slides provide visual representations. Highlighted design elements included the following: • The two-story facility was designed around the idea of a thicket with the goal of telling the story of Marana. Local architecture in Marana was studied as part of the design process. • The first floor consisted of a teen center, multi-purpose rooms, and a large gym with three courts and a durable flooring that can be utilized for social and other gatherings. • The second floor had views of the surrounding mountains, a fitness loft, multi-purpose fitness studios, a diversity of exercise equipment, and a track encircling the gym below. Marana Regular Town Council Meeting February 7, 2023 Page 327 of 339 Special Council Meeting Summary Minutes January 11, 2023 Page 3 of 5 • The facility is being designed to be open and inviting, although there will likely be less glass than originally planned due to glare, efficiency, and cost concerns. • Roof form is under design for appropriate scale along Main Street, water and sun management, and artistic shape. • The building’s location is designed to provide and “urban edge” at the corner of Main Street. Public art is anticipated to wrap around the building. • Parking in the parking lot is designed to be compact and tight. • There will be a small catering kitchen to serve events in the large multi - purpose room that can be accessed by food trucks. • Locker room restrooms can be accessed separately from the facility for special events. • An outdoor exercise lawn is designed to be connected to the gym. • The facility includes a front desk, from which almost everything can be seen by front-desk staff. Security cameras will cover areas that cannot be seen from the desk. • The facility includes a child watch area with amenities for children and a mothers’ room. • The aquatic center can be accessed without having to enter the community center. It has a large, shaded pool event lawn for competitions, and the lifeguard area is designed to have a great visual of both bodies of water. • One of the bodies of water is designed to be a recreation pool, which includes a shaded toddler area, a play structure for older children, space for families to gather, a water resistance channel, an older child area, and an area for lap swimming. The second body of water is a competition pool. There are also two water slides, a mechanical room, and options for deck seating and shade. Marana Regular Town Council Meeting February 7, 2023 Page 328 of 339 Special Council Meeting Summary Minutes January 11, 2023 Page 4 of 5 Council feedback included the following: • Mayor Honea asked if the façade on the outside of the building would match the other buildings at the Marana Municipal Complex. Mr. Kane said it is designed to look different. Mayor Honea said he would like the façade to match the other Municipal Complex buildings. • Mayor Honea asked about whether the gym would be accessible for Town special events. Mr. Kane explained it is not directly accessible, but there are access points relatively close. • Mayor Honea asked if the pool filters could be connected so that if one went down, the other could provide redundancy. Mr. Rosso said they would need to look into that. • Council Member Ziegler expressed concern about balls leaving the gym during play. Mr. Kane said they are currently working on designing solutions to the problem. • Council Member Comerford asked if tables and chairs could be located outside of the building as well. Mr. Kane said one of the ideas they were working on was a front porch concept with a dramatic roof overhang and Wi-Fi connectivity. • Mayor Honea asked if the facility’s generator would be large enough to run the whole facility. Mr. Kane said they were currently trying to find the right size, and that cost and critical functions were the current considerations. Mayor Honea said to err on the side of too big and not too small, and requested they consider having an on-site generator with the option of hooking up a portable generator to run the facility longer, if needed. Mayor Honea also requested that the facility be heated by gas and not electric (which is the current plan) for cost reasons. • Council Member Officer commented on the parking lot size, and requested there be a section created for truck parking. • Council Member Comerford said a parking garage should also be considered, especially in light of the desire to attract businesses to this area. Marana Regular Town Council Meeting February 7, 2023 Page 329 of 339 Special Council Meeting Summary Minutes January 11, 2023 Page 5 of 5 • Council Member Ziegler commented that this facility needs to be first-class and a focal point for Marana. Council Member Comerford said the Town needs to show the smart use of taxpayer money and that extravagance should be avoided. Mayor Honea thanked the presenters. [Note that a lunch recess was taken from 11:57 AM to 12:15 PM.] EXECUTIVE SESSIONS Pursuant to A.R.S. § 38-431.03, the Town Council may vote to go into executive session, which will not be open to the public, to discuss certain matters. E1 Executive Session pursuant to A.R.S. §38-431.03 (A), Council may ask for discussion or consideration, or consultation with designated Town representatives, or consultation for legal advice with the Town Attorney, concerning any matter listed on this agenda for any of the reasons listed in A.R.S. §38-431.03 (A). FUTURE AGENDA ITEMS Notwithstanding the Mayor’s discretion regarding the items to be placed on the agenda, if three or more Council members request that an item be placed on the agenda, it must be placed on the agenda for the second regular Town Council meeting after the date of the request, pursuant to Marana Town Code Section 2-4-2(B). ADJOURNMENT Mayor Honea asked for a motion to adjourn. Council Member Ziegler moved to adjourn the meeting. Council Member Officer seconded the motion. Motion passed, 4-0. Meeting adjourned at 1:18 PM. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council special meeting held on January 11, 2023. I further certify that a quorum was present. ______________________________________ David L. Udall, Town Clerk Marana Regular Town Council Meeting February 7, 2023 Page 330 of 339 Council Regular Meeting Summary Minutes January 17, 2023 Page 1 of 9 MARANA TOWN COUNCIL REGULAR COUNCIL MEETING 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, January 17, 2023, at or after 6:00 PM Ed Honea, Mayor Jon Post, Vice Mayor Patti Comerford, Council Member Jackie Craig, Council Member Herb Kai, Council Member John Officer, Council Member Roxanne Ziegler, Council Member SUMMARY MINUTES CALL TO ORDER AND ROLL CALL Mayor Honea called the meeting to order at 6:01 PM and directed the Town Clerk to call the roll. All Council Members were present, constituting a quorum. PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE: Led by Mayor Honea. APPROVAL OF AGENDA Vice Mayor Post moved to approve the agenda as presented. Council Member Kai seconded the motion. Motion passed, 7-0 CALL TO THE PUBLIC PROCLAMATIONS Marana Regular Town Council Meeting February 7, 2023 Page 331 of 339 Council Regular Meeting Summary Minutes January 17, 2023 Page 2 of 9 PR1 Proclamation recognizing February 2, 2023 as "Optimist Day" (David L. Udall) Town Clerk / Assistant Town Attorney David Udall read the proclamation and Mayor Honea presented it to the recipient. MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS Mayor Honea said he attended the Governor’s first State of the State address with Council Member Officer. He commented on the Special Council Meeting last week related to the multi-generational community center and aquatics center. He also said he spoke at a recent Northwest Republican Club event. MANAGER’S REPORT: SUMMARY OF CURRENT EVENTS Town Manager Terry Rozema reminded the Council of the Concerts in the Courtyard event on Thursday at 5:00 PM and said dog adoptions would be available at the event. He said the Police department is starting another Citizen’s Police Academy. Mr. Rozema also commented on several necessary loop closures and on the most recent Real Talk podcast relating to affordable housing. PRESENTATIONS P1 Relating to Transportation: Presentation and discussion regarding the Marana Master Transportation Plan update (Fausto Burruel) Public Works Director / Acting Town Engineer Fausto Burruel introduced this item. A copy of the PowerPoint presentation is on file with the Town Clerk’s Office. Mr. Burruel introduced Phillis Davis with Kittleson & Associates, who presented on this item. Ms. Davis said the transportation master plan will set the vision for what transportation in Marana could look like for the next 20 years. Se said the plan will look at vehicles, pedestrians, cyclists, etc., and will help prioritize transportation needs in Marana. She said the transportation master plan is important to start now because a lot has changed since the last plan was completed in 2001, because Marana is rapidly growing, and because there is increased and differing demands on Marana’s transportation system. She outlined the study process, project timeline, and public engagement plan, which can be viewed in the PowerPoint slides. Council Member Kai commented that Marana is still agricultural, and that consideration for slow-moving tractors on the roadways and equestrian traffic should be taken into account. Marana Regular Town Council Meeting February 7, 2023 Page 332 of 339 Council Regular Meeting Summary Minutes January 17, 2023 Page 3 of 9 Vice Mayor Post asked how in-depth the plan would be. Ms. Davis said the plan would generally consider collector roads and above (such as arterials, etc.), but that it would also identify key local streets. Mayor Honea commented that if RTA Next happens, the Cortaro interchange and the Tangerine interchange may be developed through that program. Ms. Davis said that would be taken into account. CONSENT AGENDA C1 Resolution No. 2023-001: Relating to Public Works; approving and authorizing the Mayor to execute an Intergovernmental Agreement between Pima County and the Town of Marana for the Joint Administration of Public Works Projects (Jane Fairall) C2 Resolution No. 2023-002: Relating to Building Safety; approving and authorizing the Mayor to sign an intergovernmental agreement between the Town of Marana and Northwest Fire District for access to the Town's virtual private network (VPN), Laserfiche system, and TRAKiT system (David L. Udall) C3 Resolution No. 2023-003: Relating to Budget; approving a new capital improvement project, the Airport AWOS Upgrade project (AP042), and approving the transfer of up to $410,000.00 in budgeted expense authority from the Airport MIRL, PAPI, Beacon Replacement Lighting project (AP026) in the fiscal year 2022-2023 budget to fund the project (Fausto Burruel) C4 Resolution No. 2023-004: Relating to Development; approving the Final Plat for Villagio Lots 5-7 located north of Tangerine Road and west of Thornydale Road within Section 31, Township 11 South and Range 13 East (Brian D. Varney) C5 Resolution No. 2023-005: Relating to Development; approving a final plat for Boulder Canyon at Dove Mountain, Lots 1-58, and Common Areas "A" (Private Streets), "A-1" (Private Street and Public Pedestrian Trail Access), "B-1" (Public Pedestrian Trail Access and Open Space), "B-2" and "B-3" (Open Space, Utilities, Drainage, Grading and Landscaping) located north of Boulder Bridge Pass approximately one -half mile west of Secret Springs Drive within Section 15, Township 11 South and Range 12 East (Brian D. Varney) C6 Resolution No. 2023-006: Relating to Personnel; authorizing Town staff to send 60-day notice of termination of 457 deferred compensation plan to the ICMA Retirement Corporation and to begin transition process to Nationwide Retirement Solutions 457 plan (Curry Hale) Marana Regular Town Council Meeting February 7, 2023 Page 333 of 339 Council Regular Meeting Summary Minutes January 17, 2023 Page 4 of 9 C7 Approval of Regular Council Meeting Summary Minutes of December 20, 2022 and of Special Council Meeting Summary Minutes of December 20, 2022 (David L. Udall) Council Member Ziegler moved to approve the consent agenda. Council Member Comerford seconded the motion. Motion passed 7-0 LIQUOR LICENSES BOARDS, COMMISSIONS AND COMMITTEES COUNCIL ACTION A1 PUBLIC HEARING: Ordinance No. 2023.001: Relating to Development; approving a rezoning of approximately 154.5 acres of land generally located between Marana Road and Grier Road, east of Wentz Road from Zone A - Small Lot Zone to R-4 Residential; and approving and authorizing the Mayor to sign the Development Agreement Regarding Streets Development Impact Fee Credits for the Wentz 154 Development Project (Scott S. Radden) Mayor Honea opened the public hearing at 6:30 PM. Senior Planner Scott Radden presented on this item. A copy of the PowerPoint presentation is on file with the Town Clerk’s Office. Please see the slides for depictions of the property’s location and lot configuration. Mr. Radden explained that the development standards included a maximum of 750 lots with a minimum lot size of 4,000 square feet. The general plan designation is Traditional Neighborhood (2-18 RAC) with a proposed density of 4.85 RAC. The proposed rezoning meets the recreational area requirements. Town Attorney Jane Fairall explained that this ordinance would also approve a development agreement regarding funding for the Marana TI Phase One project and Tangerine Farms Road extension. The development agreement would require the developer to pay an up-front amount of a portion of the development impact fees, with an impact-fee credit for the first 500 lots. Mayor Honea closed the public hearing at 6:34 PM. Mayor Honea commented that he is not in favor of small lots, but will vote for this item. He said he hopes north Marana will not be filled with small-lot developments. Marana Regular Town Council Meeting February 7, 2023 Page 334 of 339 Council Regular Meeting Summary Minutes January 17, 2023 Page 5 of 9 Council Member Craig asked if the community open space and park space would remain the same even if the number of lots changes. Mr. Radden said they would remain the same. Keri Silvyn with Lazarus & Silvyn, P.C., on behalf of the applicant, said she is comfortable with those numbers. Vice Mayor Post moved to adopt Ordinance No. 2023.001. Council Member Ziegler seconded the motion. Motion passed, 7-0. A2 PUBLIC HEARING: Ordinance No. 2023.002: Relating to Development; approving a rezoning of approximately 165 acres of land located east of Interstate 10, east and west of Adonis Road, and approximately 1.2 miles north of Tangerine Road from Zone E (Transportation Corridor) to R-4 (Residential), R-5 (Residential), and MR-1 (Multi-Family Residential); and approving and authorizing the Mayor to sign the Development Agreement Regarding Streets Development Impact Fee Credits for the Stonegate Development Project (Brian Varney) Mayor Honea opened the public hearing at 6:39 PM. Ms. Silvyn said the development agreement associate with this ordinance is ready, but that a principal signer is unavailable. She is requesting a continuance to the February 21, 2023 meeting to ensure the agreement can be signed. Vice Mayor Post said he was ready to move forward with approving the item. Ms. Fairall said that was a possibility, but there was a risk the principal may not agree with the agreement as currently constituted. Pat Johnson, a Marana resident, addressed the Council regarding concerns related to water sufficiency. Mayor Honea explained the Town has plenty of physical water in the aquifer. He said that what is in the newspaper is dealing with water credits needed for future development. Mayor Honea closed the public hearing at 6:45 PM. Council Member Ziegler moved to continue this item to the February 23, 2023 Town Council Meeting. Council Member Kai seconded the motion. Motion passed, 7-0. Later in the meeting, Town Attorney Jane Fairall recommended the Council consider a secondary motion to clarify the date this item was continued to. Council Member Ziegler moved to continue this item to the February 21, 2023 Town Council Meeting. Vice Mayor Post seconded the motion. Motion passed, 7-0. Marana Regular Town Council Meeting February 7, 2023 Page 335 of 339 Council Regular Meeting Summary Minutes January 17, 2023 Page 6 of 9 A3 PUBLIC HEARING: Resolution No. 2023-007: Relating to Community and Neighborhood Services; approving and authorizing implementation of the Community Development Block Grant Citizen Participation Plan (Lisa Shafer) Mayor Honea opened the public hearing at 6:46 PM. Community & Neighborhood Services Director Lisa Shafer presented on this item. A copy of the PowerPoint presentation is on file with the Town Clerk’s Office. Ms. Shafer explained that due to the Town’s population growth, the Town may now receive its own Community Development Block Grant (CDBG) funding directly from the Department of Housing and Urban Development (HUD) instead of through Pima County. As part of that program, the Town must submit a citizen participation plan, among other things. She explained what the CDBG program can be used for, that the Town has hired a consulting group to assist with the citizen participation plan, what the plan consists of in summary form, the plan’s objectives, and the consolidated plan development public process. Please see the PowerPoint slides for details. Mayor Honea asked if the number for the Town’s CDBG was $216,000 and was concerned with how low that funding amount was compared to surrounding jurisdictions. Ms. Shafer confirmed that was the number and said it may be lower because the Town’s median income is higher than surrounding areas. She said the number would be finalized in April. Mayor Honea asked if the money came directly from HUD or if it went through a state allocation. Ms. Shafer said it came directly from HUD. Council Member Ziegler moved to adopt Resolution No. 2023-007. Council Member Officer seconded the motion. Motion passed, 7-0. A4 Resolution No. 2023-008: Relating to Annexation; adopting the Town of Marana Annexation Policy (Jason Angell) Development Services Director Jason Angell presented on this item. A copy of the PowerPoint presentation is on file with the Town Clerk’s Office. He said this would be the Town’s first written annexation policy, but that it was based on the Town’s past and current practices related to annexation. Mr. Angell explained the state law requirements related to annexation, the Town’s criteria for evaluating annexations, policy considerations, and a financial impact analysis associated with annexations. Please see the PowerPoint slides for details. Council Member Kai asked if there was an opportunity in this policy for members of the public to address the Council. Mr. Angell said a public hearing was associated with annexation process. He also said that in the past, Town staff has worked with applicants Marana Regular Town Council Meeting February 7, 2023 Page 336 of 339 Council Regular Meeting Summary Minutes January 17, 2023 Page 7 of 9 internally and brought requests before Council preliminarily to see if there was interest, and, if so, the formal process would then start at that point. Mayor Honea asked if this would be in a written format, and asked if the Council could go outside of the written policy. Mr. Angell confirmed it was in a written format and said the Council could supersede the policy. Council Member Kai moved to adopt Resolution No. 2023-008. Council Member Officer seconded the motion. Motion passed, 7-0. ITEMS FOR DISCUSSION / POSSIBLE ACTION D1 Relating to Legislation and Government Actions; discussion and possible action regarding all pending state, federal, and local legislation/government actions and on recent and upcoming meetings of the other governmental bodies (Terry Rozema) Town Manager Terry Rozema introduced this item and explained where things stand with the new legislative session. He highlighted a few bills, including an income tax bill that would negatively impact state-shared revenues, a bill that would allow cities and Towns to meet public posting requirements by posting on their websites instead of through newspapers, and a bill that would allow those running for office to indicate their political affiliation. Vice Mayor Post mentioned a bill relating to the inspection of sober living homes. Mr. Rozema said it was one Town staff had on its radar, but he was not ready to discuss it in detail yet. He said at first glance is appears to allow the Town to do more inspections, but there was more to it that needed to be looked into. Vice Mayor Post recommended the Town look into including other things in the bill as well after it has been looked into. Council Member Ziegler asked if Council Members would be required to list their political affiliation under the proposed bill mentioned above. Mr. Rozema said it was not required, but the bill allowed for it, if desired. Mayor Honea commented that Senator Justine Wadsack called him to follow up on the Town’s priorities discussed at the December 20, 2022 Special Council Meeting. D2 Relating to Budget; discussion, direction, and possible action regarding development of the fiscal year 2023/2024 budget, including proposed budget initiatives and expenditures (Terry Rozema) Marana Regular Town Council Meeting February 7, 2023 Page 337 of 339 Council Regular Meeting Summary Minutes January 17, 2023 Page 8 of 9 Mr. Rozema explained this would be a standing item while the budget for the next fiscal year is being developed. There was no feedback from the Council at this time. D3 Resolution No. 2023-009: Relating to Administration; approving and authorizing the Mayor to execute the Town Manager’s Employment Agreement between the Town of Marana and Terry S. Rozema (Jane Fairall) Vice Mayor Post moved to go into executive session on Items E2 and E3. Council Member Ziegler seconded the motion. Motion passed, 7-0. [An executive session on Items E2 and E3 was held, beginning at 7:16 PM and ending at 8:19 PM.] Once back in open session, the following occurred: Vice Mayor Post moved to file an administrative claim as discussed in executive session. Council Member Comerford seconded the motion. Motion passed, 7-0. Vice Mayor Post moved to offer a one-year contract to Mr. Rozema with a 6% pay raise, all other terms and conditions remaining the same. Council Member Ziegler seconded the motion. Motion passed, 7-0. Mr. Rozema thanked the Council. EXECUTIVE SESSIONS Pursuant to A.R.S. § 38-431.03, the Town Council may vote to go into executive session, which will not be open to the public, to discuss certain matters. E1 Executive Session pursuant to A.R.S. §38-431.03 (A), Council may ask for discussion or consideration, or consultation with designated Town representatives, or consultation for legal advice with the Town Attorney, concerning any matter listed on this agenda for any of the reasons listed in A.R.S. §38-431.03 (A). E2 Executive session pursuant to A.R.S. §38-431.03 (A)(3) and (4) for discussion or consultation with the Town’s attorneys and to instruct the Town’s representatives concerning the litigation entitled In Re: AFFF Products Liability Litigation, MDL No. 2873, currently pending in the United States District Court for the District of South Carolina, related to the potential recovery of costs to remedy water quality issues resulting from perfluorinated compounds contamination. Marana Regular Town Council Meeting February 7, 2023 Page 338 of 339 Council Regular Meeting Summary Minutes January 17, 2023 Page 9 of 9 E3 Executive Session pursuant to A.R.S. §38-431.03 (A)(1) to discuss the employment of Town Manager Terry Rozema, including discussion of the terms of the Town Manager’s Employment Agreement. FUTURE AGENDA ITEMS Notwithstanding the Mayor’s discretion regarding the items to be placed o n the agenda, if three or more Council members request that an item be placed on the agenda, it must be placed on the agenda for the second regular Town Council meeting after the date of the request, pursuant to Marana Town Code Section 2-4-2(B). Mayor Honea asked for future agenda items. There were no future agenda items. ADJOURNMENT Mayor Honea asked for a motion to adjourn the meeting. Vice Mayor Post moved to adjourn the meeting. Council Member Kai seconded the motion. Motion passed, 7-0. Meeting Adjourned at 8:21 PM CERTIFICATION I hereby certify that the forgoing are the true and correct minutes of the Marana Town Council meeting held on January 17, 2023. I further certify that a quorum was present. ____________________________________ David L. Udall, Town Clerk Marana Regular Town Council Meeting February 7, 2023 Page 339 of 339