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Home My WebLink AboutAELR FY04TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT FISCAL YEAR ENDED JUNE 307 2004 TOWN OF FOUNTAIN HILLS, ARIZONA TABLE OF CONTENTS FISCAL YEAR ENDED JUKE 30, 2004 Independent Auditor's Report Annual Expenditure Limitation Report - Part I Annual Expenditure Limitation Report - Part II 2 Annual Expenditure Limitation Report - Reconciliation 4 Notes to Annual Expenditure Limitation Report CRONSTROM & TRBOVICH CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT The Auditor General of the State of Arizona and The Honorable Mayor and the Town Council of the Town of Fountain Hills, Arizona We have audited the accompanying Annual Expenditure Limitation Report of the Town of Fountain Hills, Arizona, for the year ended June 30, 2004. This report is the responsibility of the Town of Fountain Hills, Arizona management. Our responsibility is to express an opinion on this report based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the report is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the report. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall report presentation. We believe that our audit provides a reasonable basis for our opinion. The accompanying Annual Expenditure Limitation Report was prepared for the purpose of complying with the uniform expenditure reporting system as discussed in Note 1, and is not intended to be a presentation in conformity with U.S. generally accepted accounting principles. In our opinion, the Annual Expenditure Limitation Report of the Town of Fountain Hills, Arizona, for the year ended June 30, 2004, referred to above presents fairly, in all material respects, the information required by the uniform expenditure reporting system on the basis of accounting described in Note 1. This report is intended solely for the information and use of management, and for filing with the Auditor General of the State of Arizona, and is not intended to be and should not be used by anyone other than these specified parties. C,. Va, c" a,��,k 0• C, Cronstrom & Trbovich, P.C. December 10, 2004 8706 EAST MANZANITA DRIVE, SUITE 100 • SCOTTSDALE. ARIZONA 85258 • (480) 348-1102 • FAX (480) 348-1 104 A PROFESSIONAL CORPORATION TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - PART I FISCAL YEAR ENDED JUNE 30, 2004 1. Economic Estimates Commission expenditure limitation $ 20,106,865 2. Voter approved alternative expenditure limitation (Approved 3. Enter applicable amount from Line 1 or Line 2 $ 20,106,865 4. Amount subject to the expenditure limitation (total amount from Part Il, Line C) 11,070,536 S. Board -authorized expenditures necessitated by a disaster not declared by the Governor [Article IX, §20(2)(a), Arizona Constitution] - 6. Board -authorized expenditures necessitated by a disaster not declared by the Governor [Article IX, §20(2)(b), Arizona Constitution] - 7. Prior -year voter approved expenditures to exceed the expenditure limitation for the reporting fiscal year [Article IX, §20(2)(c), Arizona Constitution] - 8. Subtotal I L070,536 9. Board -authorized excess expenditures for the previous fiscal year necessitated by a disaster not declared by the Governor and not approved by the voters [Article IX, §20(2)(b), Arizona Constitution] - 10. Total adjusted amount subject to the expenditure limitation 11,070,536 11. Amount under (in excess of) the expenditure limitation (If excess expenditures are reported, provide an explanation.) $ 9.036,329 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. c. 'o" 71 - Signature of Chief Fiscal Officer: Name and Title: Telephone Number: 480-837-2003 Dater December 10, 2004 See accompanying notes to report. 2 TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - PART II FISCAL YEAR ENDED JUNE 30, 2004 Internal Governmental Enterprise Service Fiduciary Description Funds Funds Funds Funds Total A. Amounts reported on the Reconciliation, Line D $ 13,905,032 $ - $ - $ - $ 13,905,032 B. Less exclusions claimed: - - - - - I . Bond Proceeds - - - - - Debt service requirements on bonded indebtedness 1,482,846 - - - 1,482,846 Proceeds from other long-term obligations - - - - - Debt service requirements on other long-term obligations - - - - - 2. Dividends, interest, and gains on the sale or redemption of investment securities - - - - - 3. Trustee or custodian - - - - - 4. Grants and aid from the federal government - - - - - 5. Grants, aid, contributions, or gigs from a private agency, organization, or individual except amounts received in lieu of taxes 75,000 - - - 75,000 6. Amounts received from the state 143,940 - - - 143,940 7. Quasi -external interfund transactions - - - - - 8. Amounts accumulated for the purchase of land, and the purchase or construction of buildings or improvements - - - - - 9. Highway user revenues in excess of those received in fiscal year 1979-80 1,132,710 - - - 1,132,710 10. Contracts with other political subdivisions - - - - - 11. Refunds, reimbursements, and other recoveries - - - - - 12. Voter approved exclusions not identified above (attach resolution) - - - - - 13. Prior years carryforward - - - - 14. Total exclusions claimed 2,834,496 - 2,834,496 C. Amounts subject to the expenditure limitation (If an individual fund category/type amount is negative, reduce exclusions claimed to net to zero.) $ 1 1 00 $® $� $® $ See accompanying notes to report. 3 TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - RECONCILIATION FISCAL YEAR ENDED JUNE 30, 2004 Internal Governmental Enterprise Service Fiduciary Description Funds Funds Funds Funds Total A. Total expenditures/expenses/deductions and applicable other financing uses, $ 15,399,989 $ - $ - $ - $ 15,399,989 B. Subtractions 1. Items not requiring use of working capital: Depreciation - - - - - Loss on disposal of capital assets - - - - - Claims incurred but not reported - - - - - Landfill closure and disclosure care costs - - - - - 2. Expenditures of separate legal entities established under Arizona Revised Statues 1,494,957 - - - 1,494,957 3. Present value of net minimum capital lease and installment purchase contract payments recorded as expenditures at inception of the agreements - - - - - 4. Charges for services paid to the Internal Service Funds - - - - - 5. Involuntary court judgments - - G. Total subtractions 1,494,957 - 1.494,957 C. Additions: 1. Principal payments on long-term debt - 2. Acquisition of capital assets 3. Claims paid in the current year but reported as expenses incurred but not reported in previous years 4. Landfill closure and postclosure care costs recorded as expended in previous years - - 5. Total additions D. Amounts reported on Part II, Line A $ 13 9�Q5 0�32 $� $ $® $ 13 905 p�32 See accompanying notes to report. 4 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT FISCAL YEAR ENDED JUNE 30, 2004 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Annual Expenditure Limitation Report (AELR) is presented on the basis of accounting prescribed by the Uniform Expenditure Reporting System (UERS), as required by Arizona Revised Statutes §41-1279.07, which excludes expenditures, expenses, or deductions of certain revenues specified in the Arizona Constitution, Article IX, §20 from the total expenditures, expenses or deductions reported in the fund -based financial statements. 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 -based 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 Assets for the Proprietary Funds, Statement of Cash Flows for the Proprietary Funds, and the Statement of Fiduciary Net Assets for the Fiduciary Funds. NOTE 2 - DEBT SERVICE REQUIREMENTS ON BONDED INDEBTEDNESS The exclusion claimed for debt service requirements on bonded indebtedness in the Governmental Funds consists of principal retirement and interest expense. NOTE 3 - AMOUNTS RECEIVED FROM THE STATE Amounts received from the State consist of the following: LTAF $ 115,339 LTAF 11 28,601 Total $ 143,940 5 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT FISCAL YEAR ENDED JUNE 30, 2004 NOTE 4 - HIGHWAY USER REVENUE IN EXCESS OF 1979-80 Highway user revenues in excess of fiscal year 1979-80: Balance at June 30, 2003 $ 187,818 2003-04 revenue 1,400,448 1979-80 revenue - Amount transferred to HURF debt service (123,996) Amount excluded (1,132,710) Canryforward $ 331560 NOTE 5 - GENERAL FUND CARRYFORWARD The Town has the following carryforward to offset further expenditures for purposes of the Annual Expenditure Limitation Report: Balance at June 30, 2003 $ 1,669,587 Interest income 68,823 Transfer in of investment earnings from Capital Projects Fund - Current year use - Prior years carryforward claimed - Balance at June 30, 2004 $ 1,738,410 NOTE 6 - SEPARATE LEGAL ENTITIES The subtraction of $1,494,957 for separate legal entities established under Arizona Revised Statutes consists of expenditures of special assessment districts and municipal property corporations included within the Town's reporting entity, but not included in the Economic Estimates Commission base limit calculations, and are reported in the Governmental Funds category in the basic financial statements: Special Assessment Districts General government $ 55,000 Principal 153,228 Interest and other charges 310,746 Total $ 518,974 C TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT FISCAL YEAR ENDED JUNE 30, 2004 MuniciQal Propej +} Corporations Principal $ 425,000 Interest and other charges 550,983 Total $ 975,983 7