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Home My WebLink AboutAELR FY16Town of Fountain Hills, Arizona Annual Expenditure Limitation Report Year Ended June 30, 2016 TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT YEAR ENDED JUNE 30, 2016 CONTENTS PAGE Independent Accountant’s 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 INDEPENDENT ACCOUNTANT’S REPORT The Auditor General of the State of Arizona The Honorable Mayor and Town Council of the Town of Fountain Hills, Arizona We have examined the accompanying Annual Expenditure Limitation Report of Town of Fountain Hills, Arizona for the year ended June 30, 2016. The Town of Fountain Hills, Arizona’s management is responsible for this report. 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 referred to above presents, in all material respects, the information prescribed by the uniform expenditure reporting system as described in Note 1. Heinfeld, Meech & Co., P.C. Phoenix, Arizona October 19, 2016 Page 1 TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT – PART I YEAR ENDED JUNE 30, 2016 1. Economic Estimates Commission expenditure limitation $ 26,804,069 2. Voter-approved alternative expenditure limitation (approved N/A) 3. Enter applicable amount from line 1 or line 2 $ 26,804,069 4. Amount subject to the expenditure limitation (total amount from Part II, Line C) $ 15,310,762 5. Amount under the expenditure limitation $ 11,493,307 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 Fiscal Officer Name and Title: Craig Rudolphy, Finance Director Telephone Number: 480-816-5162 Date: October 19, 2016 See accompanying notes to report. Page 2 Internal Governmental Enterprise Service Fiduciary Funds Funds Funds Funds Total A. Amounts reported on the Reconciliation, Line D $ 24,787,833 $ - $ - $- $ 24,787,833 - B. Less exclusions claimed:- 1 Bond proceeds 5,415,799 5,415,799 Debt service requirements on bonded indebtedness 2,001,850 2,001,850 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 193,084 193,084 3 Trustee or custodian - 4 Grants and aid from the federal government - 5 Grants, aid, contributions, or gifts from a private agency, organization, or individual, except amounts received in lieu of taxes 75,000 75,000 6 Amounts received from the State of Arizona 219,327 219,327 7 Quasi-external interfund transactions 8,532 8,532 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 1,563,479 1,563,479 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 9,477,071 - - - 9,477,071 C.Amounts subject to expenditure limitation $ 15,310,762 $ - $ - $ - $ 15,310,762 TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - PART II YEAR ENDED JUNE 30, 2016 Description See accompanying notes to report. Internal Governmental Enterprise Service Fiduciary Description Funds Funds Funds Funds Total A. $ 27,357,799 $ - $- $ - $ 27,357,799 B. Subtractions: 1.Items not requiring the use of working capital - Depreciation - Loss on disposal of capital assets - Bad debt expense - Other postemployment benefits expense - Claims incurred but not reported - Pension expense - Landfill closure and postclosure care costs - 2.- 2,569,966 2,569,966 3.Present value of net minimum capital lease and installment purchase contract payments recorded as expenditures at inception of the agreements - 4.Involuntary court judgments - 5.Total subtractions 2,569,966 - - - 2,569,966 C. Additions: 1.Principal payments on long-term debt - 2.Acquisition of capital assets - 3.Other postemployment benefits paid in the current year but reported as expenses in previous years - 4.Claims paid in the current year but reported as expenses incurred but not reported in previous years - 5.Pension contributions paid in the current year - 6. - 7.Total additions - - - - - D. Amounts reported on Part II, Line A $ 24,787,833 $- $- $ - $ 24,787,833 See accompanying notes to report. TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - RECONCILIATION YEAR ENDED JUNE 30, 2016 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 Statues Landfill closure and postclosure care costs paid in the current year but reported as expenses in previous years TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT YEAR ENDED JUNE 30, 2016 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. The AELR 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 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 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 - The exclusion claim for expenditures of separate legal entities established under Arizona Revised Statutes 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. Governmental Municipal Property Corporation Debt Service Fund $ 2,158,550 Cottonwoods Maintenance Fund 2,705 Eagle Mountain Debt Service Fund 408,711 $ 2,569,966 NOTE 3 - Bond proceeds and interest earnings are claimed as exclusions in the year the expenditure occurs and any unused amounts are carried forward for future years. The rollforward of carryforward exclusions is as follows: Governmental Carryforward exclusions as of 6/30/15 $ 5,415,799) Prior year bond proceeds utilized (5,415,799) Carryforward exclusions as of 6/30/16 $ - NOTE 4 - The exclusions claimed for debt service requirements on bonded indebtedness in the Governmental Funds consisted of principal retirement, interest, and fiscal fees in the General Obligation Debt Service Fund. Page 5 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT YEAR ENDED JUNE 30, 2016 NOTE 5 - The exclusions claimed for dividends, interest, and gains on the sale or redemption of investment securities in the Governmental Funds consisted of investment earnings. The current year exclusion utilized is a follows: Governmental Carryforward exclusions as of 6/30/15 $ -) Investment Earnings 219,058) Current year exclusion utilized (193,084) Carryforward exclusions as of 6/30/16 $ 25,974) NOTE 6 - Grant revenues from private organizations are claimed as exclusions in the year the expenditure occurs and any unused amounts are carried forward for future years. The current year grant exclusion utilized is a follows: Proposition 202 75,000 Current year exclusion utilized $ 75,000 NOTE 7 - State grant revenues are claimed as exclusions in the year the expenditure occurs and any unused amounts are carried forward for future years. The current year state grant exclusion utilized is a follows: Arizona Sports and Tourism Authority $ 72,624 Proposition 302 28,347 Regional Area Road Fund 118,356 Current year exclusion utilized $ 219,327 NOTE 8 - Quasi-external interfund transactions are claimed as exclusions in the year the expenditure occurs and any unused amounts are carried forward for future years. The current year exclusion is $8,532 related to the Town's environmental fee paid from the General Fund to the Environmental Fee Fund. Page 6 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT YEAR ENDED JUNE 30, 2016 NOTE 9 - The highway user revenue (HURF) earned in excess of the amounts received in fiscal year 1979-80 is as follows: HURF Fund Intergovernmental Revenue $ 2,378,871) Less: Vehicle License Tax Revenues (927,440) Excludable Revenue $ 1,451,431) Carryforward HURF funds as of 6/30/15 $ 975,977) HURF Fund Expenditures 2,498,714) Less: Expenditures of Vehicle License Tax (927,440) Less: Expenditures of Non-excludable Revenue (52,795) Plus: Amounts Transferred to the Environmental Fund for Eligible HURF Expenditures 45,000) Less: Current year HURF funds utilized (1,451,431) Less: Prior Year HURF exclusions utilized (112,048) Carryforward HURF funds as of 6/30/16 $ 863,929 Page 7