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Home My WebLink AboutAELR FY15TOWN OF FOUNTAIN HILLS, ARIZONA AN NUAL EXPENDITURE LIMITATION REPORT YEAR ENDED JUNE 30, 2015 TOWN OF FOUNTAIN HILLS, ARIZONA TABLE OF CONTENTS YEAR ENDED JUNE 30, 2015 INDEPENDENT ACCOUNTANTS’ REPORT 1 AN NUAL EXPENDITURE LIMITATION REPORT -PART I 2 AN NUAL EXPENDITURE LIMITATION REPORT -PART II 3 AN NUAL EXPENDITURE LIMITATION REPORT -RECONCILIATION 4 NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT 5 An independent member of Nexia Internat ional (1) INDEPENDENT ACCOUNTANTS’ REPORT The Auditor General of the State of Arizona and The Honorable Mayor and the Town Council Town of Fountain Hills, Arizona Fountain Hills, Arizona We have examined the accompanying Annual Expenditure Limitation Report of the Town of Fountain Hills, Arizona, for the year ended June 30, 2015. This report is the responsibility of the Town of Fountain Hills, Arizona’s management. Our responsibility is to express an opinion on this report based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence supporting the amounts and disclosures in the report and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. In our opinion, the Annual Expenditure Limitation Report of the Town of Fountain Hills, Arizona, referred to above presents, in all material respects, the information prescribed by the uniform expenditure reporting system as described in Note 1. a CliftonLarsonAllen LLP Phoenix, Arizona September 30, 2015 TOWN OF FOUNTAIN HILLS, ARIZONA AN NUAL EXPENDITURE LIMITATION REPORT -PART I YEAR ENDED JUNE 30, 2015 See accompanying notes to report. (2) 1.Economic Estimates Commission expenditure limitation 26,076,074$ 2.Voter approved alternative expenditure limitation (Approved for fiscal year 2009-2010.)- 3.Enter applicable amount from Line 1 or Line 2 26,076,074$ 4.Amount subject to the expenditure limitation (total amount from Part II, Line C)17,873,639 5.Board-authorized expenditures necessitated by a disaster not declared by the Governor [Article IX, §20(20)(a), Arizona Constitution]- 6.Board-authorized expenditures necessitated by a disaster not declared by the Governor [Article IX, §20(20)(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 17,873,639 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 17,873,639 11.Amount under (in excess of) the expenditure limitation (If excess expenditures are reported, provide an explanation.)8,202,435$ 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 Finance Director: Name and Title:Craig Rudolphy, Finance Director Telephone Number:(480) 816-5162 Date:September 30, 2015 TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT -PART II YEAR ENDED JUNE 30, 2015 See accompanying notes to report. (3) Description Governmental Funds Enterprise Funds Internal Service Funds Fiduciary Funds Total A.Amounts reported on the Reconciliation Line D 23,725,601$ -$ -$ -$ 23,725,601$ B.Less exclusions claimed: 1 Bond proceeds 2,149,201 - - - 2,149,201 Debt service requirements on bonded indebtedness 559,772 - - - 559,772 Debt service requirements on other long-term obligations - - - - - 2 Dividends, interest and gains on sale of investment securities - - - - - 3 Trustee or custodian - - - - - 4 Grants and aid from the federal government 25,575 - - - 25,575 5 23,677 - - - 23,677 6 Amounts received from the state 2,676,908 - - - 2,676,908 7 - - - - - 8 - - - - - 9 Highway user revenues in excess FY 1979-80 416,829 - - - 416,829 10 Contracts with other political subdivisions - - - - - 11 Refunds, reimbursements and other recoveries - - - - - 12 Voter approved exclusions not identified above - - - - - 13 Prior years carryforward - - - - - 14 Total exclusions claimed 5,851,962 - - - 5,851,962 C.Amounts subject to the expenditure limitation 17,873,639$ -$ -$ -$ 17,873,639$ Grants, aid, contributions or gifts from private agency, organization or individual Quasi-external interfund transactions (town sewer fees a/c 10- 41-217, 10-55-217) Amounts accumulated for purchase of land, purchase or construction of buildings or improvem ents TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT -RECONCILIATION YEAR ENDED JUNE 30, 2015 See accompanying notes to report. (4) Description Governmental Funds Enterprise Funds Internal Service Funds Fiduciary Funds Total A.Total Expenditures within the fund-based financial statements 25,610,962$ -$ -$ -$ 25,610,962$ B.Subtract: 1 Items not requiring use of working capital Depreciation - - - - - Loss on disposal of capital assets - - - - - Bad debt expense - - - - - Claims incurred but not reported - - - - - Landfill Closure - - - - - 2 Expenditures of separate legal entities established under ARS 1,885,361 - - - 1,885,361 3 Present value of net minimum capital leases - - - - - 4 Charges for services paid to Internal Service Funds - - - - - 5 Involuntary court judgments - - - - - 6 Total subtractions 1,885,361 - - - 1,885,361 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 as expended in previous years - - - - - 5 Total additions - - - - - D.Amounts reported on Part II Line A 23,725,601$ -$ -$ -$ 23,725,601$ TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT JUNE 30, 2015 (5) NOTE 1 SUMMARY OF SIGNIFICANT AC COUNTING 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. NOTE 2 EXPENDITURES OF SEPARATE LEGAL ENTITIES ESTABLISHED UNDER ARS The exclusion claimed for expenditures of separate legal entities established under A.R.S. in the Governmental Funds consists of expenditures from the Municipal Property Corporation Debt Service Fund, Cottonwoods Maintenance Fund and the Eagle Mountain Debt Service Fund. Municipal Property Corporation Debt Service Fund 1,513,013$ Cottonwoods Maintenance Fund 3,235 Eagle Mountain Debt Service Fund 369,113 1,885,361$ NOTE 3 ISSUANCE OF BONDS The exclusion claimed for bond proceeds expenditures incurred during the current fiscal year related to bond funds issued during the fiscal year ended June 30, 2015. The following is a summary of the claimed exclusion: Bond Proceeds 7,565,000$ Bond Proceeds Spent During Fiscal Year (2,149,201) Unspent Bond Proceeds 5,415,799$ TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT JUNE 30, 2015 (6) NOTE 4 DEBT SERVICE REQUIREMENTS ON BONDED INDEBTEDNESS The exclusion claimed for debt service requirements on bonded indebtedness in the Governmental Funds consist of principal retirement and interest expenditures of the General Obligation Debt Service Fund. General Obligation Debt Service Fund Principal 390,000$ Interest 169,772 559,772$ NOTE 5 GRANTS AND AI D FROM THE FEDERAL GOVERNMENT Grants and aid from the federal government consist of the following: Highway Planning and Construction Grant 25,575$ NOTE 6 GRANTS, AI D, CONTRIBUTIONS OR GIFTS FROM PRIVATE AGENCY, ORGANIZATION OR INDIVIDUAL Grants, aid, contributions or gifts received from private agency, organization or individual consist of the following: Contributions and Donations 23,677$ NOTE 7 AMOUNTS RECEIVED FROM STATE Amounts received from the State consist of the following: LTAF II 9,643$ Proposition 202 67,044 Regional Area Road Fund 2,600,221 2,676,908$ TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT JUNE 30, 2015 (7) NOTE 8 HIGHWAY USER REVENUE IN EXCESS OF 1979-80 Highway user revenues (HURF) in excess of in-lieu fees expended: HURF Fund Intergovernmental Revenue 2,251,680$ Less: Vehicle License Tax (858,874) Excludable Revenue 1,392,806$ HURF Fund Expenditures 1,275,779$ (858,874) (562) 486 Amount Excluded 416,829$ Plus: Amounts Transferred to Capital Projects Fund for Eligible HURF Expenditures Less: Amounts Transferred from Capital Projects Fund Less: Expenditures of Vehicle License Tax and Non-Excludable Revenue The unspent HURF revenues will be carried forward for future exclusions.