HomeMy WebLinkAboutFY08 CAFRTOWN OF FOUNTAIN lULLS, ARI ZONA
FOUNTAIN HILLS, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCA L YEAR ENDED JUNE 30, 2008
Issued by:
Finance De partm ent
TOWN OF FOUNTAIN HILLS, ARiZONA
TABL E O F C ONTENTS
INTRODUCTOR Y SECTION
Letter of Transmittal
GFOA Certificate of Ach ievement
Organizational C han
List of Princ ipal Officials
FINANCIAL S ECTION
INDEPENDENT AUDITORS' REPORT
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information)
BASIC FINANCIAL STATEMENTS
Government-Wide Fi nancial Statements:
Statement of Net Assets
Statement of Activiti es
Fund Financial S ta te ments:
Balance Sheet -Governmental Funds
Reconcil iation of the Balance Sheet -
Govenunental F und s to the Statement of Net Assets
Statement of Revenues, Expendi tures a nd Changes i n Fttnd Ba lances -
Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures a nd
Changes in Flllld Balances-Governmenta l Funds to the
Statement of Acti vities
Notes to Financial Statements
P age
X
XI
X II
5
20
21
24
2 7
28
30
31
TOWN OF FO UNTAIN IDLLS, AIUZONA
TABLE OF CONTENTS (Con t 'd)
FINANClAL SECTION (Co nt'd)
SCHEDULE OF REVENUES , EXPENDITURES AND CHANGES IN
FUND BALANCES-BUDGET AND ACTUAL
(Required Supplementary In fo rm at ion)
General Fund
Deve lopment Fees Fund
Note to Req uired Supp lementary InfornJation
COMBINING AND IND IVID UAL FUND FINANCIAL STATEMENTS AND
SCHEDULES
Other Major Governmental Funds Schedules of Revenues, Expenditures and
Changes in Fund Ba lances-Bu dget and Actua l:
Genera l Ob li gation Debt Serv ice Fund
Municipal Property Corporati on Debt Serv ice Fund
Capi tal Projects Fund
Non -Major Governmenta l Funds:
Comb ining Balance Shee t -All Non -Maj or Govern mental Funds-
By Fund Type
Combin ing Statemen t of Revenues , Expend itures and Changes in
Fund Balances -All Non-Major Governmental Funds -By Fund Type
Non -Major Spec ial Revenue Funds:
Com binin g Balance Sheet
Combin in g Statement of Revenues, Ex penditu res and
Changes in Fund Balances
Com bining Schedule of Revenues , Expenditures and
Changes in Fu nd Balances-Budget and Actual
Page
46
47
48
52
53
54
56
57
60
62
64
T OWN OF FO UNTAIN HILLS, ARIZONA
TABLE O F C O NTENTS (C ont'd)
F I NANCI AL SECTIO N (C o n c l'd )
Non-Major Debt Service Funds:
Combining Balance Sheet
Combin ing Statement of Revenues , Expenditures and Changes in
Fund Balances
Comb ining Sc hedule of Revenu es, Expenditures and Changes in
Fund Balances-Budget and Actua l
STATI ST I CAL SECTI ON
Financial Trends:
Net Assets by Component
Expenses, Program Revenues , and Net (Expense)/Revenue
General Revenu es and Tota l C hanges in Net Assets
Fund Balances-Governmental Fun ds
Governmental Funds Revenues
Governmental Funds Expenditures and Debt Service Ratio
Other Financing Sources and Uses and Net Changes in Fund
Balances -Governmental Funds
Revenue Capacity:
Taxable Sales by Category
Direct and Overlapping Sales Tax Rates
Pa g e
71
72
74
79
80
81
82
83
84
86
87
88
TOWN OF FOUNTAIN HILLS, AIUZO NA
TABLE OF C ONTENTS (Coocl 'd)
ST ATISTI CAL SECTION (Co ocl'd)
Debt Capacity:
Outstanding Debt by Type
Direct and Overlapping Governmental Activities Debt
Legal Debt Margin Information
Demographic and Economic Information:
Demographic and Economic Statistics
Principal Employers
Full-Time Equivalent Town Government Emp loyees by Func ti on/Program
Ope rating Infonna ti on:
Operating Indicators by Function
Capital Assets Statistics by Function
P a ge
89
90
9 1
92
93
94
96
97
November 13 , 2008
Town of Fountain Hills
16705 E . Avenue of the Fountains
Fountain Hills, AZ 85268
Phone: 480-816·5100 • Fax: 480-837-3145
www.tb.az.gov
To the Honorable Mayor, Members of th e Town Counci l, and Citizens of the Town of Fountain
Hills :
State law requires that all general-purpose local governments p ubli s h, within six months of the c lose
of each fiscal year, a complete set of fmancial statements presented in confor mity w ith generally
accepted accounting princ ip les (GAAP) and audited in accordance with generally accepted aucliting
s tandard s by a firm ofl icensed certified public accountants. Pursuan t to that requirement, we hereby
issue the compreh ensive annual financ ia l report of the Town of Fountain Hi ll s for the fiscal yea r
ended June 30, 2008.
This rep ort consists of management's representations concerning the finances of the Town of
Fountain Hills. Con sequently, ma nagement assumes full responsibi lity for the completeness and
reliability of al l of the informati on p resented in this report. To provi de a reasonable basis for making
th ese representations, management of the Town of Fountain Hi lls has establ ished a comprehensive
internal contro l framework that is designed both to protect the government 's assets from loss, theft,
or misuse and to compi le s ufficient reli able information for the preparation of the Town ofFountain
Hills' financ ia l statements in conformity with GAAP. Because the cost of internal co ntro ls s hould
not outwei gh their benefits, the Town of Fountain Hills ' comprehensive fran1ework of internal
controls has been designed to provide reasonable rather than absolute assurance that the financial
statements will be free of materia l mi sstatement. As management, we assert that, to the best of our
knowledge an d be lief, this financial report is co mpl ete and re liable in a ll material respects .
The comprehensive armual financ ial report is presented in three sections: introductory, financial , and
stati stical. Th e introductory section includes this transm ittal letter. the Town of Foun tai n Hills '
organizati o n chart and a li s t ofT own of Fountain H ill s e lected and appointed o rfi c ials. The financ ial
section includes U1e fmancial s tatements and the combining and individual ftutd financial s tatements
and sc hedules , as well as the aud itors' report on U1e financial statements and schedules. The
s tatistical secti on includes certai n unaudited financ ia l a nd de mographi c info m1ation, gene rall y
presented on a multiyear basis.
The Town of Fountain Hills' fmancial statements have been audited by Heinfeld, Meech & Co.,
P.C., a firm of licensed certified public accountants. The goal of the independent audit was to
provide reasonable assurance that the financial statements of the Town of Fountain Hills for the
fiscal year ended June 30,2008, 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 auditors concluded,
based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the
Town of Fountain Hills' fmancial statements for the fiscal year ended June 30, 2008, are fairly
presented in conformity with GAAP. The independent auditors' report is presented as the first
component of the financial section of tllis report.
The independent audit of the financial s tatements of the Town of Fountain Hill s was part of a
broader, federally mandated Single Audit as requir ed by the provisions of the Single Audit Act
Amendments of 1996 and U.S. Office of Management and Budget Circular A-133, Audits of Stares,
Local Governments and Non-Profit Organizations designed to meet the speciaJ needs of federal
grantor agencies. The standards governing Single Audit engagements require the independent
auditor to repon not only o n the fair presentation of the financial statements, bm also on the Town of
Fountain Hills' internal controls and compliance with legal req uirements, with special emphasis on
internal controls and legal requirements involving the administration of federal awards. These
reports are avaiJable in a separately issued Single Audit Reporting Package.
GAAP require that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the fo rm of Management's Discussion and Analys.is
(MD&A). This leuer of transnlittal is designed to complement the MD&A and should be read in
conjunction with it. The Town of Fowllain Hills' MD&A can be found immediately following the
repon of the independent auditors .
Town of Fountain Hills Proftle
i i
The Town of Fountain Hills is a plarmed, family-
oriented community established in 1970 by
McCulloch Properties (now MCO Properties,
lnc.). Prior to 1970 the area was a cattle ranch
and was part of one of t11e largest land and cattle
holdings in Arizona. It was purchased by Robert
McCulloch in tbe late 1960s and designed by
Charles Wood, Jr. (designer of Disneyland in
southern California). The centerpiece of
Fountain Hills is one of the world's taU est man-
made fountains, a focal point that attracts
thousands of visitors each year.
Located on 13,006 acres ofland , and bordering northeast Scottsdale, Fountain Hills is surrounded by
the 3,500-foot McDowell Mountains on the west, the Fort McDowelllndian Reservation on the east,
the Salt River Indian Reservation on the south and by the McDowell Mountain Regional Park on the
north. Elevation is 1,520 feet at th e fountain, 3,000 feet on Golden Eagle .Boulevard , and is 500 feet
above Phoenix.
Over the past seventeen years Fountain Hills has grown from I 0 ,190 residents to a town of almost
25,000 in 2008. The latest estimates for Fountain Hills indicate that the population will continue to
grow to near 36,045 by 2025. On June 5. 2006 the Town of Fountain Hills became two square
miles and about ten percent larger by annexing I ,3 00 acres of State Trust Land. The process to
annex the State Tn.1st Land occurred over a two and one-half year period and development of the
land will occur over the next decade. Annexing this property into the Town ensures that its future
development will be of the highest q uality under such Town's standards as the cut-and-fill ordinance
and strict zoning regulations. Fountain Hills will have an opportunity to demonstrate that it is truly
the best place to live in the Valley.
The Town offers a range of living styles , from small community subdivisions to a nun1ber of large
custom homes . Fountain Hills also offers recreational , cultural and retirement prograo1s that address
the needs and lifestyles of active families and adults. The community consists of primarily
residential property; of the total 20.32 square miles of land only 2.58% of the total is zoned
commercial and/or industrial, 31 % is reserved as open space and the remainder is res idential.
The Town 's Mission Statement for the Organization
The Town of Fountain Hills' purpose is to serve the best interests of the community by:
providing for its s afety and well-being;
respecting its special, small-town character and quality of life;
providing superi or public services;
sustaining the publi c trust through open and responsive government;
and maintaining the stewardship and preservation of its financial and natural resources.
To serve and respect, and provide trust and stewardship.
Fountain Hills Town Hall
Ill
Tbe Town of Fountain Hills is an Arizona Municipal Corporation, acting as a general law Town as
prescribed in the Arizona Revised statutes. The Town was incorporated on December 5, 1989 with
the governmental and administrative affairs of the Town operating under the Cow1cii-Manager form
of government. The Town Council is responsib le, among other things, for the adoption of local
ordinances, budget adoption , the development of citizen advisory committees and hiring the Town
Manager. The Town Manager is responsible for implementation of the policies of the Town Council
and administering the Town's operations through five department directors and approximately 89
FTE employees. The Magistrate, Town Attorney and Town Prosecu1or are under the direction of the
Town Council.
The Town provides or adm inisters a full range of services including public safety (law enforcement,
fire , animal control, bui lding inspection); community development (code enforcement, planning,
zoning and engineering); the constm ction and maintenance of streets and infrastructure, municipal
court, l'ecreational activities, community center, se nior ce nte r and cultura l events. The Town does not
maintain utility or other operations that require the establi shment of enterprise funds.
The financial reporting entity (the Town) includes all the funds and account groups of the primary
government (i.e., the Town of Fountain Hills as legally defmed) as weU as all of its component units.
The component Wlits consist of legally separate entities for which the prinlary government is
financially accountable. Bl ended component units, although legally separate entities, are, in
substance, part of the primary government's operations and are included as part of the primary
government. Accordingly, the Cottonwoods Maintenance District, Eagle Mountain Community
Facilities District and Fountain Hills Municipal Property Corporation are included in the financial
reports of the Town.
The annual budget serves as the foundati on for the Town of Fountain Hills' financial planning and
control. The Town CounciJ forma ll y adop ts the budget and legally allocates, or appropriates,
available monies for lhe General Fw1d, Special Revenue Funds, Debt Service Funds, and Capital
Projects Fund. Therefore, lhese funds have appropriated budgets, and budget to actual infonnation is
presented. On or before the second meeting in May the Town Manager submits to the Town Council
a proposed budget for the fiscal year commencing the following July 1. The budget includes
proposed expenditures and the means of financing them. The Town Council is then required to hold
public hearings on the proposed budget and to adopt a final budget by no later than June 30, the close
of the Town of Fountain Hills· fiScal year. The budget is legally enacted through passage of an
ordinance and is prepared by fund and department. The ordinance sets the limit for expenditures
during the fiscal year. The Town Manager may authorize transfers from and within personnel and
from operating capital to services or supplies within a department. Additional expenditures may be
authorized for expenditures direc tl y necessitated by a natural or man-made disaster as prescribed in
the State Consti tution, Article 9, Section 20.
Fact or s Affcetinl!, F ina n c ia l Con dition
The infom1ation presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the Town of
Fountain Hills operates.
IV
Local Economy. The Town of Fountain Hills, similar to other Arizona municipalities, is primarily
dependent upon state revenues and l.ocal sales tax as a major source of operating revenue, accounting
for 77% of total revenue for fiscal year 2007 -08 . Locally, 20% of the Town's sales tax is from
construction activity (down from 31% last fiscal year) and 37% is generated from retail activity. The
construction activity is primarily residential; fiscal year 2007 -08 continued the dramatic downturn in
building permit activity that is being experienced nationwide. State shared revenues increased
during fiscal year 2007-08 because state income tax revenues are based on two years prior personal
and corporate earnings; however future revenues from income tax are projected to decline for the
next few years. The majority of land use in Fountain Hills is residential, therefore , there is not a
significant amount of retai l activity that is affected locally by the economy. Revenues from retail and
non -construction related activity are projected to remain flat over the next couple of years.
The chart below is a breakdown of Town resources:
r..p Me. CFD
'"
,.-;.
Revenues (all funds)
Fiscal Year E nding 6/30/08
T otal $25.1M
The Fountain Hills Medical Plaza will complete a substantial redevelopment proj ect in the Fall of
2008. The three buildings totaling 50 ,000 square feet that used to house Town municipal operations
were comp lete ly renovated including new interiors and a new exterior fmish. The proj ect has also
created a shaded courtyard between the three buildings . Other improvements to the site incl uded
upgraded lan dscaping and covered parking areas as well as new ingress and egress to adjacent
developments.
v
Eighteen months of discussion between Fountain Hills Town Square, LLC and the Town have
resulted in a development agreement being approved for the potential development of the 13 -acre
downtown parcel on the Avenue of the Fountains. An aggressive deve lopment schedule has been
estab lished starting with a Phase 1 Concept Plan application submittal by October 20, 2008. The
plans will be reviewed by staff and the Concept Plan is planned to be presented to the Planning and
Zoning Commission and the Town Council for approval by the end of the year. Phase I will include
38,000 square feet of retail, 58,000 square feet of office and a 52,000 square foot movie theater.
Firerock Plaza, located on Shea Boulevard, bas completed construction and has begun allowing
tenants to occupy some suites. Included in the list of tenants so far are a beauty salon and an urgent
care medical facility. Firerock Business Park industrial condominiums located on Technology Drive
behind Target Plaza was approved for a revised Concept Plan for Phase II of the project to allow a
re-configuration of building pads and a mini -storage facility.
Fountain View Retail Plll7..a, located on Fountain Hills Boulevard just south of Safeway Plaza,
completed constmction and has occupancy in a majority of their suites.
Fountain Hills Plaza (Bashas Plaza) applied for and received approvals to enlarge the Bashas and
Ace Hardware building footprints as well as to do a complete fa<;:ade renovation of the entire plaza.
Additiona ll y, numerous site improvements will be made inc luding shade structures for a portion of
the parking areas , more landscaping and decorative hardscape , and improved ingress and egress to
the Plaza.
Plaza Waterfront , located adjacent to P lll7..a Fountainside at the comer of Saguaro Boulevard and El
Lago Bou levard. has completed constmction and has begun allowing tenants to occupy both their
retail suites as well as the residential condominiums.
The Eagle Mountain Golf Club received approval to expand and enclose their event pavil ion
overlooking the 181h ho le. The go lf c lub a lso received permits for shade stmctures over their golf cart
storage area.
A 9-lot, sing le-family residential subdivision named Serenity Estates (fom1erly High Nob Acres) and
located at the end of Cerro Alto Drive was approved.
A 12-lot, single-fami ly residential subdivision named The Vista at Fountain Hi ll s (formerly Lion's
Spring) and located at the intersection of Cerro Alto Drive and Sierra Madre Drive was app roved .
The Ellman Company who purchased the fo rmer State Trusl Land in2007 requested an amendment
to U1e pre-armexation agreement, a rezoning of U1e property and a General Plan amendment The
requested an1endments proposed several design changes including additional park space. additional
open space , a reduction in housing units and a realignment of McDowell Mountain Road. Even
though all requested amendments were approved by Mayor and Council in May 2008, the
amendments are sti ll pending.
vi
i'nulftitl Hllll2.6°o Std~TAX At'lhitr"Y Sr<_cor-'F\"14 thi'IJ !'\"OS ...... n """M -........ ........ ........ ,_
I:.OOIJIIOO ........ .. _
...... ..
CCIIutr'IJCUIOtl. ThiiUf'Ol ~Mib 11ul \\llo.,_I.,'RIIt:lll nt$U\lftDt184'1rt
The chart to the left is a summary of
local sales tax collections from fiscal
year 2003-04 through fiscal year 2007-
08 by category. Retail activity declined
slighL.ly during fiscal year 2007-08 with
the s lowdown in the national economy .
Sales tax from construction activity bas
declined for three years straight; this
rrend will likely continue through fiscal
year2009-10. The opponunityto further
expand the retail tax base in Fountain
Hills is limited by Ll1e lack of available
commercial land -75 % of tbe
,__ ___________________ .J developable lots are already developed.
L ong-term F inancia l Planning. Over the past decade the Town of Fountain Hills nas embraced a
strategic planning process that has focused on the long-term viability of the community. In late
2004, the Town initiated a compre hensive strategic p lanning process that involved a significant
amount of citizen input. A technical Advisory Committee consisting of citizens, vo lunteers and
Town staff met to discuss tlte To wn's long range vis ion for nearly a year. This citizen driven
strategic planning process resulted in an expansive report entitled. "Town of Fountain HiUs Strategic
P lan 2006-2010" which was adopte d on December l, 2005. One of the major issues addressed in the
report was the Town's projected future financ ial health. Tbe report described a growing concern
witll the current reliance on construction sales tax base. Construction sales tax is considered a one-
time revenue source which is dri ven entirely by development activity. As the Town approaches
build-out construction related sales taxes and fees are likely to dwind le ; with a declining revenue
base it will become a challenge for the Town to meet tile increasing demands of current service
leve ls.
The Fountain Hills Town Council main tains a fund balance policy that ensures adequate reserves
that will. provide financial stabil.ity in the event of an unanticipated economic downturn. The pol icy
states:
1. A contingency fund of no less than 30 days operating expenditures for lbe upcoming fiscal
year to be designated for unanticipated expenditure or loss of revenue (contingency)
2. A designated unreserved fund balance of a min imun1 of ten percent (10%) of the average
acwal revenues for the prec eding five fiscal years designated for "pay-as-you-go" capital
3. A resetved fund balance of twenty percent (20%) of the average actual revenues for tile
preceding five fiscal years which is unavailable for appropriation
These amounts will not be progranlllled for expenditure and are only available for use within tile
confines of expenditure limitations imposed by the State. A Capital Projects Fund has been c reated
and is funded with proceeds from excess revenues collected over budget and any tmexpended
appropriations not needed to meet fund balance requirements or re-appropriation. For the fiscal-
year ending June 30, 2008 $1M of surplus revenues were transferred from the General Fund to the
Capital Projects Fund.
vi.i
The Council a lso adopted financi a l policies that include guidelines for the issuance of debt for capital
expenditures, Community Faci lity Districts, financin g alternat ives, expenditure controls and financial
planning. The policy was an1ended during fiscal year 2006-07 to allocate a portion of the local
construction sales taX to the Capital Projects Fund , thereby assuring that one time revenues are used
for one time expenditures . The debt policy was prepared with a p reference for "pay-as-you-go"
fmancing for capital spending. An investment policy was adopted and was awarded the In vestment
Policy Certification from the Association of Public Treasurers ofUnited States and Canada.
Cash Management. State statutes permit municipalities in Arizona to invest in obligations of the
U.S. Treasury, commercial paper, corporate bonds, repurchase agreements, and the State Treasurer's
Local Government lnvestment Pool (LGIP). The Town of Fountain Hi ll s debt policy restricts
investments to securities that are 100% backed by the full fa ith and c redit of th e U.S. government.
The Town of Pountain Hills inves ts al l idle cash in the State LGIP-GOV , which consists of
government-backed securities. The year-to-date yie ld on investments as of J nne 30, 2008 was
3.4404%. Investment income includes appreciation in the fair value of investments. Increases in fair
va lue during the current year, however, do not necessaril y represent trends that wi ll continue; nor is it
a lways possible to realize s uch amounts, especially in the case oftempOr'<ll)' changes in the fair va lue
of investments that the government in tends to hold to mat1u·ity .
Dail y cash deposits are made with the local bank and are maintained fo r payroll and payables; these
accounts are fully co ll ateralized to $1 million.
Risk Management. The Town of Fountain Hills is a member of the Arizona Municipal Risk
Retention Pool. Risk coverage includes genera l l iabi li ty, workers compensation, errors and
omissions, property and auto mobi le ins urance. The pol icy insures up to $2,000,000 per incident
occurrence p lus a ny excess liabi lity of up to $13,000,000 per occurrence per yea r. Coverage is
provided on a c laims-made basis.
Pension P lan and Otber Postemployment Benefits . The Town of Fountain Hills provides two
deferred compensation plans through the International City/County Management Assoc iation
OCMA) in accordance with In terna l Revenue Code Sections 40 I A and 457. The 40 I A is funded by
mandatory employee wage deductions and matching Town contributions. The 457 is volunta ry a nd
funded l 00% tlu·ough employee participation.
Por further infonnation on these p lans please refer to Note 1 1 in the financial statements.
AWARDS AND AC KNOWLEDGEMENT
Awards. The Government F inan ce Officers Association (GFOA) awarded a Cen ificate of
Achievement for Excellence in Financial Reporting to the Town of Fountain Hills for its
comprehensive annual financia l report (CAFR) for the fi scal year ended June 30,2007. This was the
e leventh consecutive year tha t the government has rece i ved this presti gious award. In o rder to be
awarded a Certificate of Achievement, the government published an easily readable and efficien tly
organized CAFR. This report satisfied both GAAP and app licab le lega l requirements.
A Cert ificate of Achievement is valid for a peri od of one year only. We believe that our current
CAFR con ti nues to meet U1e Certificate of Achievement Program's requiremen ts and we are
s ubmitting it to tbe GFOA to determine its el igibility for another certificate.
vi ii
In addition, the government also received the GFOA 's Distinguished Budget Presentation Award for
its annual budget for the fiscal year ending June 30 ,2008. In order to qualify for the Distinguished
Budget Presentation Award, the government's budget document was judged to be proficient in
several categories, including as a policy document, a financial plan, an operations guide , and a
communications device. This is the fifth consecutive year that the Town bas received the award.
Acknowledgements. The preparation of this report would not have been possible without the
efficient and dedicated services of the entire team of the Finance and Administration Department. I
would also like to extend my appreciation to the Mayor and Council for their leadership and support.
Each member of the department has my sincere appreciation for the contributions made in the
preparation of this report.
Respectfully submitted,
't<.Q;_
Richard L. Davis , ICMA-CM
Town Manager
ix
Certificate of
Achievement
for Excellenc e
in Financial
Reporting
Presented to
To wn of Fountain Hill s
Ari zona
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30,2007
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the GoveiiUDeDt Finance Officers
Association of the l!nited States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting .
~~-C?ox
President
~/.~
Executive Director
X
~-
Stnlor Stnotecs
Ad\'I.JOry
Commlllto111
ConJn1a111lty
Cenfer Advltei'J
Commiulon
Baud flf
AdJ ••t ... •c
TOWN OF FOUNT AJN HILLS, ARIZONA
ORGANI ZATIONAL CHART
JUNE 30, 2008
rtanJ~IIII.,.d
Zealn1
Commln:k•
OHuuorth«-
To'lm t f Fount•l• tllllt
Mayor
ond
TOWII COIIIf(.U
P•rkt .. d
Rtetullo•
Con~n•ln .. •
Mt.D•w«<l
Mo•nlaln
PRKrY•Un
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ToWll Attornty Prw.ld.lna Jadae
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TOWN OF FOUNTAIN HILLS, ARIZONA
List of Principal Officials
ELECTED OFFICIALS
Mayor
Vice-Mayor
Counc ilmcmber
Councilmembe r
Cou ncil member
Cou ncil member
Councilrnember
Town Manager
Mag istrate
Finance Director
Public Works Director
Parks & Recreation Director
Planning & Zo nin g Director
Comm uni ty Center Director
Fire Chief
District Commande r
Town Prosecutor
Town Attorney
Mr. Jay Schlum
Mr. Henry Lege r
Mr. Mike Archambault
Mr. Dennis Co ntino
Ms. Ginny Dickey
Ms. Cassie Hansen
Mr. Keith McMahan
DEPARTMENT DIRECTOR S
xii
Richard L. Davis
Ted Am1bruster
Ju lie A. Ghetti, CPA
Tom Ward
Mark Mayer
Ri chard Turner
Samantha Coffman
Scot1 LaGreca ,
Rural Metro Corporatio n
Capt John .Kleinbeinz,
Maricopa Conn ty Sheriff's Office
lacovino & Kayler
Andrew McGui re,
Gust Rosenfeld , P.L.C .
't:l :z >
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(") ->
I:""
V>
r:rl
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'2
...,... HEINFELD, MEECH & CO., P.C. ~'fi CERTIFIED PUBLIC ACCOUNTANTS
Gary Heinfeld. CPA, CG FM
Nancy A. Meech, CPA , CGFM
Jennifer L. Shields, CPA
Corey Arvizu, CPA
Sco tt W . Kies, CPA
Kim berly A. Rob inson . CPA
Ke ra Badal am enti . CPA, CGFM
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and Members of the Town Council
Town of Fountain H ill s, Arizona
3033 N. Centml Avenue, Sui te 300
Phoeni x, Ari zono 85 01 2
(602) 277·9449
Fax (602) 277·9297
We have audited the accompanying financial statements of the govemmemal activities, each major
fund (General Fund, Development Fees Fund, General Obl igation Debt Service Fund, Municipal
Property Corporation Debt Service Fund. Capital Projects Fund), and the aggregate remaining fun d
infonnation ofthe Town ofFow1tain Hills, Arizona (the Town}, as of and for the year ended June 30,
2008, which collectively comprise the Town's basic financial statements as li sted in rhe table of
contents. These financial statements are the responsibility of the Town's management. Our
responsibility is to express opinions on these financial statements based on our audi t.
We conducted our audit in accordance with auditing standards generally accepted in the Uoited
States of America and the standards a pplicable to fmancial audits contained in Governmenl Audiling
Standards, issued by tile Comptroller General of the United States. Those staodards require that we
p lan and perform the audit to obtain reasonable assurance about whether the financial statements are
rree of material misstatement. An au di t includes examining, on a test basis, evidence s uppo rting ti1e
amounts and disclosures in the fmancial statements. An audi t also inc ludes assess in g tile accounting
p rinci ples used and tl1e significant esti mates made by management, as weU as evaluating the overall
fi11ancial statement presentation. We believe that o w· audi t provi des a reasonabl e basis for our
opinions.
In our opinion, the financial statements referred to a bove present fa irl y, in all material respects, the
res pective financ ial position of the governmental activi ties, each major fund as listed above, and tile
aggregate remainin g fund information of the Town of Fountain Hills, Arizona as of June 30,2008,
and the respective changes in ftnancial position thereof for the year then ended in conform ity with
accoUDting princi p les general ly accepted in the United States of America.
ln accordance wi th Govemmenl Auditing Standards, we have also issued our report dated Novembe r
13 , 2008, on our consideration of the Town of Fountain Hills, Arizona 's internal control over
financial reporting and on our tests of its compli ance w ith certain provisions of laws , regu lations,
contracts, and grant agreements and o ther matters. The purpose of that report is to describe the scope
of our testing of internal control over financial reporting and compli ance and the results of that
testing, and not to provide an opinion o n the internal control over fmancial reporting or on
compliance. Tbat report is an integral part of an audit perfom1ed in accordance with Government
Auditing S!Crndards and should be considered in assessing the results of our audit.
TUCSON • PHOENIX • FLAGSTAFF
www.he infe ldm ecch.com
The management's d iscussion and anal ysis on pages S through IS and budgetar y comparison
information on pages 46 through 48 arc not a requ ired part of the basic financial statements but are
supplementary information required by the Governmental Accounting Standards Board. We have
applied certain limited procedures, which consisted principally of inquiries of management regarding
the methods of measurement and presentation of the required supplementary information. However,
we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town's basic financial statements. The accompanying supplementary
information such as the introductory section, combining and individual fund financial statements and
schedules, and statistical section arc presented for purposes of additional analysis and are not a
required part of the basic financial statements. The combining and individual fund fmancial
statements and schedules have been subjected to the auditing procedures applied in the audit of the
basic financia l statements and, in our opinion, arc fairly stated in all materia l respects ill relation to
the basic linancial statements taken as a who le. The introductory section and statis tical section have
not been subjected to the auditing procedures applied in the aud it of the basic financial statements
and , accordingly, we express no opinion on them.
~~ M_W)t flW .;"P.CJ .
HEINFELD, tv£EECH & CO., P.C .
Certified Public Accountants
November 13, 2008
Page2
;,o ao
(D
w
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT'S DI SCUSSION AND ANALYSTS (MD&A)
YEAR E NDED JUNE 30, 2008
As management of the Town of Fountain Hi ll s, Arizona (Town), we offer readers of the Town's
financial statements th is narrative overview and analysis of the financial activities of the Town for
the fiscal year ended June 30, 2008. We encourage readers to consider the infom1ation presented
here in conjunction wi th addilional information lhat we have furnished in our letter of transmittal,
which can be found in the introductory section of this report.
FINANCIAL HIG I ILIGHTS
• The Town's total net assets of governmenta l activities increased $2.0 million which
represents a 2 percent increase from fiscal year 2006-07 primarily due to lhe increase in
investment of capital assets, specifically park deve lopment.
• Genera l revenues accounted for $22.3 million in revenue, or 87 percent of all fiscal year
2007-08 revenues. Program specific revenues in the fom1 of charges for serv ices and grants
and contributions accounted for $3.2 million or 13 percent of total fiscal year 2007-08
revenues.
• The Town had approximate ly $23.5 million in expenses re lated to governmental activities , an
increase of 5 percent from the prior fiscal year. The increase was primarily due to increased
costs for pub I ic safety and public works projects.
• Among major funds , the General Fund had $16.7 mill ion in fiscal year 2007-08 revenues.
wh ich primarily cons isted of local sales tax and state shared revenues , and $15.3 million in
expendit11fes . Per local policy residual General F\md revenues are transferred at year end to
lhe Capital Projects Fw1d {$1.0 million for fiscal year 2007-08). Therefore, the General
Fu nd 's fund balance remains at $6.6 m illion.
OVERVIEW OF F I NANCIAL S TATEMENTS
This discussion and analysis are intended to serve as an introduction to the Town 's basic financial
statements. The Town's basic fmancial statements comprise three components: I) government-wide
financial statements, 2) fund financ ial statements, and 3) notes to the financial sta tements. This
report also contains other supplementary information in addition to the basic financial statements
themselves.
Govc .-nm cnt-w id c finan cial 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.
Page 5
TOWN OF FOUN T A I N HILLS, ARIZONA
MANAGEMENT'S DI SC USS ION AND ANALYS IS (MO&A)
YEA R E NDED JUNE 30, 2008
OV E RV IEW OF FINANCI AL ST ATEMENTS (Cont 'd )
The statement of net assets presents infonnation on all of the Town's assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets
may serve as a useful indicator of whether the financial position of the Town is improving or
deteriorating.
ll1e statement of activ ities presents information s howing how the Town's net asse ts c hanged during
the most recent fisca l year. AU changes in net assets are reported as soon as the underlying event
g iv ing rise to the c hange occurs, regardless of the ti ming of re lated cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash nows in futu re
fiscal periods (e.g., uncollected taxes and earned but unused compensated absences).
The government-wide financial statements outline functions of the Town that are principally
supported by taxes and intergovernmental revenues. The governmental activities of the Town
include general government, public safety, highways and streets, culture and recreation, community
development, and interest on long-tenn debt.
Fund fina n cial s tatements . 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 are included in the governmental funds.
Governme nta l f unds. Governmental funds are used to account for essentia lly 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 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 fmancing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the infom1ation presented for governmental funds with similar
infom1ation presented for governmental activities in the government-wide financial statements.
By doing so, readers may better w1derstan d the long-term im p act of the Town's near-term
financing decision. Both the governmental fund ba lance sheet and the governmental fund
statement of revenues, expend itures and changes in fund balances provide a reconc iliation to
facilitate this comparison between governmental funds and governmental activ it ies.
Page 6
TOWN OF FOUN TAIN HILLS, ARIZ O NA
MANAGEMENT'S DISCUSSIO N AND ANALYS IS (MD&A)
YEAR ENDE D JUNE 30, 2008
OVERVIEW OF FINANCIAL STATEMENTS (Co ncl 'd )
Information is presented separately in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures and changes in fund balances for the
General Fund, Development Fees Fund, General Obligation Debt Service Fund, Municipal
Property Corporation Debt Service Fund. and Capital Projects Fund, all of which are considered
to be major funds. Data from the other governme ntal funds are combined into a single,
aggregated presentation. Individual fund data for each of these non-major governmental funds is
prov ided in the form of combining statements and schedules.
No t es to the financial st~te ments. 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.
Other information. In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the Town's budget
process. The Town adopts an annual expenditure budget for all governmental funds. A schedule of
revenues, expenditures and changes in fund balances-budget and actual has been provided for the
General Fund and Development Fees Fund as required supplementary inforn1ation.
GOVER NMENT-WIDE FINANCIAL ANALYS IS
Net assets may serve over time as a useful indi cator of a government's financial position. In the case
of the Town, assets exceeded liabilities by $121.0 million as of June 30, 2008.
The largest portion of the Town's net assets (78 percent) reflects its investment in capital assets (e.g.,
land , infrastructure, buiJdings. improvements other than buiJdings. vehicles, machinery and
equipment, artwork and construction in progress) Jess any related debt used to acquire those assets
that is still outstanding. The Town uses these capital assets to provide services to its ci tizens;
consequently, these assets are not avaiJable 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 assets (II percent) are restricted
by statute for the specified purposes of debt service repayment, capital outlay investment, and
highways and streets.
Page 7
T OWN O F FOUNTAIN BILLS, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2008
G O VERNMENT-WID E FINANCIAL ANALYSIS (Cont 'd)
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 sum mary of the Town's net assets for the fiscal years ended Jw1e 30,
2008 and JUile 30,2007.
Current and oth e r assets
Capital assets, net
Total assets, net
Current and other liabi li ties
Long-term liabilities
Total liabilities
Net assets:
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total net assets
As of
June 30, 2008
$27,961,526
121 ,118,950
149,080,476
2,876,276
25,234,167
28,110 ,443
94,939,805
12,799,502
13,230,726
$120,970,033
As of
June 30, 2007
$26,894,65 8
120,783,479
147,678,137
1,592,815
27,089,593
28,682,408
92,508,637
12,210,966
14,276,126
$118,995.729
Percent
Chan ge
4%
<I
1
81
(7)
(2)
3
5
(7)
2%
Th e fo llowing are s ignificant current year transacti ons that have had an impact on the Statement of
Net Assets.
• $2.0 million in construction in progress fo r park improvements.
• $769,573 in receivable-s from the State for park improvement grants.
• The addition of $1.0 million in capital assets through purchase of vehicles, a new street
sweeper and pumper fire engine.
Page8
TOWN OF FOUNTAIN RILLS, ARI ZONA
MANAGEMENT'S DI SC USSION AND ANALYSIS (MD&A)
YEAR ENDE D JUNE 30, 2008
GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont'd)
C h a n ges in n et assets. The Town's total revenues for the fiscal year ended June 30, 2008 , were
$25.5 million. The total cost of all programs and services was $23 .5 million. The following table
presents a summary of the changes in net assets for the fiscal years ended June 30, 2008 and
June 30, 2007.
Fiscal Year Fiscal Year
Ended Ended Percent
IliD~ JQ. 2QQ8 June30.2001 _Chane.e
Revenues:
Program Revenues:
Charges for services $2 ,329,811 $2,520,068 (8)%
Operating grants and contributions 56,802 N/A
Capital grants and contribut ions 835 ,659 989,100 (16)
General Revenues:
Sales taxes 10,489,591 11,407,714 (8)
Property taxes 1,635 ,542 I ,385 ,953 18
Franchise taxes 336,290 324,318 4
State shared revenue 8,848 ,199 8,444, 731 5
Investment income 780 ,935 1,094 ,994 (29)
Miscell aneous !83.263 85 418 11 5
T o tal R eve nu es 25,496,792 26,252,296 (3)
Expens es:
General Government 3,92 1,588 4,292 ,515 (9)
Public Safety 6,532,292 5,935 ,742 10
Highways and s treets 5,981 ,347 5,225 ,835 14
Culture and recreation 3,092 ,661 3,282 ,160 (6)
Community development 2,861 ,653 2,512 ,170 14
Interest on long-term debt I I ~2.2:11 I Hi3 310 (3)
Total E x penses ?1 522 488 22 411.122 5
Cba n ges in n et assets ~1.2Z~.~Q~ $3 B1Q,5Q4 (49)%
Page 9
TOWN OF FOUNT AlN HILLS, ARIZONA
MANAGEMENT'S DISCU SSION AND ANALYSI S (MD&A)
YEAR ENDED JUNE 30, 2008
GOVERNMENT-WIDE FINANCIAL ANALYSIS (Con t'd)
Fiscal Year 2007..()8 Expenses Fiscal Year 2006·07 Expenses
""
I 0tnem1 Oo·•~rnment
0 Cubure and Recn:ation
,..
0 Public Safety
• Communily lkYrlop"""'
"'
"'~
.. ~
0 HisJ>wtys lU1d s .....
• lotcrcst on long-1erm debt
The following are signi.ficant current year transactions that have had an impact on the Statement of
Activities.
• Overall revenues declined 3% with increases in state shared revenues and property taxes, the
majority of other revenues declined due to the poor economy.
• Overall expenses increased 5% primarily due to increased pub lic safety contract costs and
publi c works projects.
The fo llowing table presents tl1e cost of the six maj or Town functional activities: general
gove=ent, public safety, highways and streets, culture and recreation, community development and
interest on long-term de bt. The table also shows each function's net cost (total cost less charges for
services generated by tlle activities and intergovernmental aid provided for specific programs). The
net cost shows the financ ial burden that was placed on the State and Town's taxpayers by each of
these functions.
Year Ended June 30, 2008 Ye:tr Ended June 30,2007
Total Net (E.xpenseY Total Net (Ex pense)/
Ex~ses Revenue Ex~nses Rev~1 ue
Gcncml Government $3,921,588 ($3 ,080,625) S4,292,515 ($3,38 1,537)
Public Safety 6,532,292 (5,739,263) 5,935,742 (4,953.083)
Highways and Streets 5,981.347 (5.957.647) 5,225,835 (5,197,650)
C ulture and Recreation 3,092,661 (1 ,9 18,670) 3,282,160 (2,139,842)
Community Development 2,861.653 (2.471.064) 2,512,170 (2,067,142)
Interest on Long-Tenn Debt 1.132.947 (1.132.947) 1,163.370 (1.163,3 70)
$23.522.488 ($20.300.216) S22.41 1.792 ($18.902,624)
Page 10
TOWN OF FOUNTAIN EITLLS, ARIZONA
MANAGEMENT'S DI SCUSSION AN D ANALYSi S (MD&A)
YEAR ENDED J UNE 30, 2008
GOVERNMENT-WIDE FINANC IAL ANALYSIS (Co ncl'd)
• The cost of all governmental activities this year was $23.5 million.
• State government and charges for services subsidized certain programs with grants and
contributions and other local revenues of $3.2 million.
• Net cost of governmental activities ($20.3 million) was financed by general revenues, which
arc made up of primarily sa les taxes ($1 0.5 million) an d state shared revenue ($8.8 million).
Investment earnings accounted for $780,935 of funding.
FINANCI AL ANA LYS IS OF THE TOWN 'S FUNDS
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with fmance-
relatcd legal requirements.
Gove r nmental fund s. 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, unreserved fund balance ma y 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 the
Town completed the year, its governmenta l funds reported a combined fund balance of
$22.8 million, a decrease of$401 ,593 due primarily to use of reserves for plruu1cd cap ital projects in
the Development Fees Fund.
The General Fund comprises 29 percent of the total fund balance. Approximately $3.5 million, or 54
percent of the General Fund 's fund balance constitutes unreserved fund balance. The remaining fund
balance is reserved to indicate that it is not available for spending because it has already been
committed as follows:
• $17,925 for inventory
• $3,035,145 for other purposes
The Genera l Fund is the principal operating fund of the Town. The fu nd balance of$6.6 million in
the General Fund as of June 30, 2008 has remained constrult over th e past three years due to the
annua l transfer of residual revenues from the General Fund to the Cap ital Projects Fw1d ($1.0 million
for fiscal year 2007-08). Expenditures within the General Fund increased 7% over the priorycar due
to increased costs for public safety contracts (police and fire), public works projects and recreation
programs. Revenues declined 1% overall from the prior fiscal year particularly in building related
revenue categories and interest earnings.
Page II
TOWN O F FOU NTAIN HILLS, ARI Z O NA
MANAGEMENT 'S DIS CUSS ION AND AN AL YS 1S (MD&A)
YEAR END ED JUNE 30, 2 008
FIN ANCi AL ANALY S IS OF TH E T OWN'S FUND S (Co ocl'd)
Other !i.wd balance va ri ances include Deve lopmen t Fees Fund that expended accumulated funds for
capita l pa rk projects. The !i.md balance in the General Ob ligation Debt Service Fu nd declined as
property tax revenues decl ined. The fw1d balance in the Municipal Property Corporation Debt
Service Fund increased du e to loca l sales tax co ll ec ti ons de ri ved from other funds exceeding the
allJlual debt service paym en t during the year.
BUD GETARYfllGHLIG HTS
A schedule showing the original and fina l budge t amounts compa red to the Town's ac tual fi nancial
acti vity for the Genera l Fu nd is provided in this repo rt as required supp lementary infonnation. The
significant variances are summarized as fo ll ows:
• The unfavorable variance of$377,486 in in tergovernmental revenues was a resu lt of the
cont inued downturn in th e state economy, affecting coll ect ions and distrib ution of state sales
tax to cities and towns.
• The unfavorab le variance of$311,430 in licenses and permits was a result of the continued
downturn in constr uction related act ivities, includ ing buildi ng pe rn1its. Bui lding permits are
down 50% from the prior fiscal year.
• T he unfavorable var ianc.e of$83,990 in investment income was a result of decreased rate of
rerum on Town investments on depos it wi th the Arizona State Treasurers Local Government
Investmen t Poo l where the Town 's idle funds are ma inta ined in a pool of gove rnment
securi ties.
• The favorab le variance of $633,896 in culture and recreation was a resu lt of a deferral of
costs related to engineering and des ign fees fo r a joint use park with the Fountain Hills
Unified Schoo l District. This project wi ll move forward when the funds to complete the
project become available.
• The favorable variance of $584,46 1 in community deve lopment was due to the deferral of
design costs for capital projects tha t are partially funded with fede ral grants; these costs were
deferred to fiscal year 2008 -09.
• Th e favorab le variance of$221 ,222 in capita l outlay was due to the elimination of a cap ital
expenditure for new commun ications equipment; it was dctcm1ined that this equ ipment could
be defe1Ted to a future year.
Page 12
TOWN OF FOUNTAIN lOLLS, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSI S (MD&A)
YEAR ENDED JUNE 30,2008
CAPITAL ASSET S AND DEBT A DMTNISTRA TION
Capita l Assets . As of June 30, 2008, the Town had invested $186.8 million in capital assets ,
inclu ding buildings, vehicles, computers, equipment, infrastructure and artwork. This amount
represents a net increase prior to depreciation of$5.1 million from last year, primari ly due to major
park improvements at two Town parks (Fountain Park and Desert Vista Neighborhood Park). Total
depreciation expense fo r the year was $4.7 mi ll ion.
The fo ll owing schedule presents a sununary of capital asset balances for the fiscal years ended June
30, 2008 and June 30,2007.
Capital assets -non -depreciable
Capital assets -depreciable , net
T ota l
As of
Jtme 30, 2"008
$ 26,971' 14 7
92,900,976
$ 119,872,123
As of
June 30, 2007
$ 24,623,735
94,795,369
$ 119,419,104
Additional information on the Town's capital assets can be found in Note 5.
Debt Administration. A t year-end, the Town h ad $24.9 million in long-tenn debt outstanding,
$2.2 million due within one year. This represents a net decrease of$2.0 million.
The Town's general obligation bonds are subject to two li mits; the Con.st ituti ooal debt l imit (total
debt limit) on all general obligation bonds (up to 20 percent of the total secondary assessed
valuation) and the statutory debt limit on general municipal purpose bonds (up to six percent of the
total secondary assessed valuation). T h e current total debt limitation for the Town is $178.0 million,
which is more than the Town's outstanding general obligation debt.
Additional infom1ation on the Town's long-term debt can be found in Notes 6 and 7.
ECONOMl C FACTORS
The Town continues to maintain strong reserves for unforeseen c ircWllStances, whether of a financial
nature or a natural (or other) disaster. The Town's reserves, i11 combination with our consistent
adherence to adopted financial policies and management practices, proved big factors in the c redit
rating awarded to Fountain Hills by the major credit rating companies.
The housing market has cooled significantly (both nationally and regionally), indicating that the
overall economy may experience s low g rowth in the year ahead. The Town's local housing economy
provides building permit and construction sales tax revenue, which have declined over the past two
fiscal years. It is not anticipated to recover until a recently annexed parcel begins development
(currently projected for fiscal year 2010-1 1 ).
Page 13
TOWN OF F O UNT A l N lULLS, ARIZONA
MANAGEMENT'S DI SCUSSI O N AND ANALYSI S (MD&A)
YEAR ENDED J UNE 30,2008
ECONOMIC FACTORS (Concl'd)
The Town's local sales tax collections. which represent the largest Town revenue source, are
projected to decrease by 5% in fiscal year 2008-09. The Town's share of the state-shared revenue is
expected to see a 3% reduction, largely based upon the State's declining sales tax collections.
However, our financial forecasting is based upon the assumption that the economy will continue to
lag for the foreseeable future.
Rapid ly rising costs in health care, maintenance contracts and f uel , have increased departmental
expenses.
The Town is aggressively pursuing economic vitality and redevelopment opportunities, specifically a
proposed development in the downtown cen ter including a movie theater, residential and retail
stores. The Town has made significant quality of life investments including the major improvements
to both Fountain Park and Desert Vista Neighborhood Park.
As of June 30, 2008 the Town had set aside $10.0 million in the Capital Projects fund. The majority
of these funds have been earmarked for future projects within the Capita! Improvement Plan.
NEXT YEAR'S BUDGETS AND RAT ES
Current economic conditions allow U1e Town to maintain core services and , in some cases, to
provide enhancements to existing service levels. However, pntdent long-tem1 fiscal planning dictates
that we remain conservative, focus on the highest Council and citizen priorities, and fund only those
enhancements we can sustain fmancially.
The operating budget for fiscal year 2008-09 is $23.9 million representing a 3% decrease from fiscal
year 2007-08. The operating budget is comprised of the costs to continue operations from year to
year without any capital expenditures. It encompasses all the basic services provided to Fountain
Hill s' residents: police and fire protection; parks, recreation, streets maintenance; planning and
zoning; building inspection: economic development and administrative services. The capital budget
for fiscal year 2008-09 is set at $4.4 million , a 25% decrease over fiscal year 2007-08. II includes
projects and new programs that are included in the five-year plan and considered affordable within
current revenue sources. Capital budgets tend to rise and fall each year depending on Lhc timing of
projects -especially if a Town, such as Fountain Hi ll s, is primarily on a "pay-as-you-go" program.
Page 14
TOWN O F FOUNTAIN HILLS, ARIZONA
MANAGEMENT'S DISCUSS ION AND ANALYSI S (MD&A)
YEAR ENDED J UNE 3 0, 2008
NEXT YEAR'S BUDG ETS AND RATES (Concl'd )
The Capital Improvement Program (CIP) is the Town's financia l plan for supporting large capital
projects. The five-year CTP addresses the growing needs of the community and enhances the quality
oflife through major public investment, and is an essentia l ingredient in the Town 's service delivery
plan . The CIP is closely aligned with the General Plan, and integrates a number of specialized
fac il ity and infrastructure master plans. Looking ahead, the five-year CrP tota ls $53.0 mi llion; with
the Capital Budget for fiscal yea r 2008-09totaling $4.4 million (which includes carryover fi.mds for
some large projects currently underway). lo fisc al year 2008 -09, the CIP places major emphasis on
street maintenance and park improvement projects .
Many factors were considered by the To"'m's administration during the process of developing the
fiscal year 2008-09 budget. The fiscal year 2008-09 budget could not be prepared without
considering the condition of the regional , state and national economies, specifically the real estate
and construction industry. Construction related revenue-s are declining and the Town is projecting
growth by only l percent over the fisca.l year 2007-08 budget. Expenditures are projected to decrease
by 10 percent over the prior year, including capital. Additional concerns are the increased cost of
doing business. The Town is a service organization; public safety services are provided by contract.
The cost of providing those services exceeds the rate of revenue growth .
The Town 's overal l authorized full-time equ ivaleut pos itions have not increased over the prior year.
The Town has maintained a Genera l Fund reserve balance of30 percent of revenues; the budgeted
expenditures do not include any use of fi.md balance.
C ONTAC T rN G THE TOWN'S FINANC IAL MANA G E MENT
This financ ial report is des igned to provide our c itizens, taxpayers , and investors and creditors with a
gene ral overview of the Town's finances and to demonstrate the Town's accountabil ity for the
resource-s it receives. If you have questions about this report or need additional information, contact
the Finance Department, Town of Fountain Hills, 16705 East Avenue of the Fountains, Fountain
Hills, Arizona 85268.
Page 15
00
ASSETS
Current assets :
Cash ru1d investments
Ta.'Xc.s receivable
Specia l assessment s receivable
Accounts receivable
Due from governmenta l entities
lnvemory , at cos(
Deferred charges
Tota l current assets
Noncurrc.nt assets:
Deferred charges
Lond
In frastructure
Buildings
I mprovemems other thnn buildings
Veh icles. machinery. and equipment
Ar1work
Construc.tion in progress
Accumu lated depreciation
Totul noncurrent assets
To tal assel$
L IAB I LIT I ES
Currcm liabilities:
Accounl> payable
Accrued payroll and emp loyee benefits
Compensated absences paynb lc
Accrued interest payable
Uneamed revenue
Bonds payab le
Bonds premium payable
Total current liabilities
Noncurrent liabi lities:
Non-c.urrent ponion or long-teml obligations
Total non~currcnt liabilities
1"ota l linb ili tie.s
NET ASSt:iS
In vested in capital assets, net of related debt
Restricted for :
1-fighways. and st reets
Debt service
Capital outlay
Unres1ricted
Total net sasstts
TOWN OF FOUNi A I N HILLS, A RI ZONA
STATEMENT OF NET ASSETS
JUNE 30, 2008
s
$
Governmental
ActivitJes
25.474,675
38.285
4,7 10
696.789
1,611 ,594
17,925
117.548
27,96 1,526
1,246,827
23.57 1.668
125,508,736
17,896,595
11.805.869
4.65 1,525
1.376,500
2,022,979
(66.961,749)
121.11 8,950
149,080,476
1,396,966
25 .338
35.000
502 .399
951,573
2.150,000
9921
5,071.197
23.039.246
23,039.246
28,1 10.44 3
94.939.805
438,535
1.596.110
10,764,857
13,230,726
120,970.033
The notes to the fi nancia l state ments a re an integra l part of this statem ent.
Page 20
Functions/Programs
Governme-ntal activities:
Ge nera I government
Public safety
Highways and st reets
Culture and recreation
Community development
I ntcres t on long-term deb t
T oul governmental uctiv ities
TOWN OF FOUNT AIN HILLS, ARIZONA
STATEMEN T OF ACTIV ITIES
YEAR ENDED J UNE 30, 2008
Prog[am Revenues
Operat ing
Charges for Grants and
Expenses Serv ices Contributio ns
s 3,92 1,588 s 830 ,963 s 10,000
6,532,292 746,227 46,802
5.98 1,347 23,700
3,092,661 338 ,332
2,86 1,653 390,589
1,132 ,947
s 23,5_22,4j!Ji _$_2,329,811 s 56,802
General rc·venues:
Taxes:
Sales taxes
Property taxes
Franchise taxes
Sta te shared reven ue
Investment income
Miscellaneous
Total general reve nues
Changes in net assets
Net assets, beginn ing or yea r
Net as se ts, end of yc or
Net (Expense)
Revenue
and Changes
in Net Assets
Capita l
Grants and Governmental
Contributions Activit ies
$ s (3,080,625)
{5, 739,263)
{5,957,647)
835,659 {1 .918,670)
{2,47 1,064)
(1.132 ,947)
$ 835,659 _Q(),IoQ.~J~)
10,489,591
1,635.542
336,290
8,848,199
780,935
183,963
22.274,520
1,974,304
118,995,729
s 120,970,033
T he notes to the financial s tatements nrc an integral part of this statement.
Pagc2 1
TOWN OF FOUNTAIN HJ LLS, ARIZONA
BALANCE S HEET-GOVERNMENTAL FUNDS
JUNE 30,2008
General
Develo pment Obli gation Debt
General Fees Service
ASSETS
Cash and investments $ 6,135,076 $ 2,540,062 $ 1,222,267
Taxes receivab le 23,858 13,947
Special assessments receivable
Accounts receivable 173,070 517,573
Due From governmenta l entities 956,617 252,000 32,656
Due from oth er fund s 141 ,917
Inventory, at cost 17.925
Total assets s 7,448,463 $ 3,309,635 $ 1,268,870
LIABILITIES AND FUND BALANCES
Liabi li ties:
Accounts payable $ 823,185 s 121 ,837 $
Due to other funds 37 ,860
Accrued payroll and employee benefits 23,470
Bond interest payable 169 ,798
Deferred revenue 22,000 929,573 5,888
Bonds payable 1,050,000
Total liabilities 868 655 I 05 1 410 I 263 546
Fund balances:
Reserved for invento ry 17,925
Reserved for o the r purposes 3 ,035,145
Unreserved:
Undesigna ted 2 ,009,165 2,258,225 5,324
Designa ted for non-recurring items 1,517,573
Unres erved reponed in:
Special revenu e funds
Debt s ervice funds
Tot:lll'und bal:mces 6,579,808 2.258.225 5 324
Total liabilities and fund balances $ 7,448.463 $ 3,309,635 $ 1,268,870
The notes to the financinl statements nre an integral part of this s tatement.
Page24
Municipal
Propcny Non-Major Total
Corporation Governmental Governmental
Debt Service Capillll Projects Funds Fun~
s 2.525.357 s 11,015,638 s 2,036,275 s 25.474,675
480 38.285
4,7 10 4,710
6,146 696,789
95,992 274,329 1,6 11 ,594
14 1,9 17
17 925
$ 2,621,349 $ II 015,63 8 S 2,321,940 s ~Wi.89s
s $ 250,78 1 s 201,163 $ 1,396,966
104,057 141,917
1.868 25,338
242.087 90,514 502.399
4 ,482 961,943
805.090 295 000 2.150,000
1,047J087 250.781 697,084 5,178,563
17,925
3,035,145
1,574,262 10,764,857 16,61 1,833
1.517,573
1,618.702 1.618,702
6 154 6.154
1.574.262 10,764,857 1.624.856 22,807,332
s 2,621,349 $ 11,0 15,638 $ 2,321,940 s 27,985,895
Page 25
TOWN OF FOUNTA I N IHLLS, ARI ZONA
RECONCI LIATION OF THE BALANCE SH EET -GOVE RN M EN T A L F UNDS
T O T HE STATEM ENT OF NET ASSET S
JUNE 30, 2008
Total gove r·nm cnl a l fund bala nc es
Amounls reported for governmental activities in the Slalemenl of
Ne1 Asse ts are d ifferem because:
Deferred charges re la ted 10 lhe issuance of refunding bonds are
amortized over the life oflhe assoc ia1ed refun d ing issue in lhe
government-wide statements but not reported in the funds.
Capita l assets used in govcmmemal act ivi ties are no! financia l
resources and therefo re are not reported in !he funds.
Govemmenla l capila l assets
Less accumulated depreciation
Some revenues arc no t avai lable 10 pay for c urrenl
period expenditures and, therefore, arc deferred in the funds .
Special assessments
Property !axes
Long-temt liabi li lies are not due and payable in the
curren t period and therefore are no t reported in
lhe funds.
Compensated absences payab le
Bonds payab le
Bonds premium payable
Net assets of gove rnm en ta l ac ti vities
s 186,833,872
(66.96 1,749)
4,482
5,888
(3 11 ,770)
(22,668,225)
(104 ,172)
Th e not es to th e fin a ncia l sta te men ts a re a n int egra l p a rt or !his state me nt.
Page27
s 22,807,332
1,364,375
119 ,872.1 23
10,370
(23,084, 167)
s 120,970,033
TOWN OF FOUNTAIN triLLS, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES A ND CHANGES IN FUND BALANCES·
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2008
Genera l
Deve lopment Ob ligation Debt
General Fees Service
Rcvcnu e.s:
Taxes $ 7,502,526 s s 1,302,724
Int ergovernmenta l 6,831,804 257,347
Fines and forfeitures 260,044
Lice nses and pem1its 1,124,405
Charges for services 210,560 359,735
Rents and roya lties 296.434
Spec ial assessments
I nvesnncnt inco me 266,010 99,139 3 1
Miscell aneo us 182,196 43
Tolal reve nues 16 673 979 7 16 22 1 1,302,798
Expenditures:
Current·
General government 3,303,201
Public safely 6,320,030
Highways and st reets 2,606
Cu lture and recrear ion 2,200,4 84
Com mun ity developmenl 2,74 1,740
Cap ira l outlay 689,241 2,0 18 ,824
Debt serv ice ·
Pri ncipal reti rement 1,050,000
Interest and fiscal charges 343 844
Tolal ex pendilurcs 15,254.696 2.02 1,430 I 393,844
Excess (de!icienry) of reve nues ovor expendilurcs 14 19,28J_ __ (1,305,209} !9J~()4(i)
Or her financing souo·ccs (u ses):
Transfers in 426
Transfers out ( 1,440,050}
Toho l olher financing souo·ces (uses) __ {1 .439,62<1)
Changes in fund ba lances (20,341) ( 1,305.209} (91.046)
Fund bnlanccs, beginning of year 6,600.149 3,563,434 96,370
Fund bnlan~es. end of ye nr s~7_MOj_ _s __ z,m,22~ s 5,324
The notes to the linancinl s tatements are llll integral part of this statement.
Page 28
Municipnl
Propeny Non-Major Tota l
Corporation Governmental Govcmmenllll
Debt Service Capital Projects Fuods Funds
s s 1.752.724 s 1.899,112 s 12,457,086
27,217 2,2 36,892 9,353,260
27.076 287,120
1,552 1,125,957
50.005 620,300
296,434
4,337 4,337
5 1.078 2 87,324 71,353 780 ,935
I 724 183,963
51,078 __ ],067,265 4 298 051 25,109,392
245.094 3.548,295
1.639 6,321,669
2,21 1,95 I 2,214,557
56,523 2,257,007
10,000 2,751,740
2,219.078 312.026 5.239.169
805,000 298,228 2,153,228
498,878 182,598 1,025,320
I ,303,878 . __ 2,2J9.m 3,31 8,059 25~1 0,98 5
(1.252,8.QQ) (151,8 13) 979 992 . (401,593)
1,564,973 1,000,000 191.589 2,756,988
(1,316,938) ____12,756.~
1.564,971. 1.000,000 (1 ,125.34?.)
312.173 -848,187 ·--(t~5~ (401,593)
1,262,089 9,916,670 1,770.213 23,208,925
s 1,574,262 s 10,764 ,857 $ 1,624 ,856 s 22,8Q.1.)32
Page 29
TOWN OF FOUNTAIN EllLLS, ARIZONA
RE CONCILIATION OF THE STATEMENT OF REVENlJES, EXPEND ITlJRES
AND CHANCES IN F UND BALANCES-GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED Jl.JNE 30, 2008
Net clumges in fund balances -total governmental funds
Amounts reported for governmemal acfivilies i n the Statemen t of Activ ities are
diffcrenl because:
Govcmmenla l fund s re pon ca pita l ou1lay as expend iiUres. However, in1he S1a1em em
of Ac ti vi ties, the cost of those assets are allocated ove r their estimated useful lives
as deprecia1ion expense.
Expendi lures for capila1ized asse1s
Less c urreru year deprecialion
Repaymenl of long-1em1 dcb1 is an cxpcndi lurc in 1hc govc mmcma l funds ,
$
but the repayment reduces long-term liab ilil ies in !he Statement ofNet Assc1s.
Some expenses reponed in the Statcmcn l of Act ivi ti es do no1 requ ire the use
of current financial resou rces and therefore are not reponed as expenditures
in gove rnmenta1 funds.
Amoniza tion of deferred charges
Compen sated absences
Change in net assets in go,,ernmcntnl activities
5,171,5 11
(4,7 18,492)
( 11 7,548)
( 122,723)
1'age 30
The notes to the fionnc inl statements arc an integral part of this sta tement
s (40 1,593)
453,019
2,163,149
(240,271)
s 1,974,304
TOWN OF FOUNTAI N HJLLS, ARIZONA
NOT ES TO FI NANC IA L STATEMENTS
J UNE 30, 2008
NOT E I -SUMMARY OF S IG NIF ICANT ACCOUNTING POLICIES
The financial statements of the Town of Fountain Hills, Arizona (Town) have been prepared in
conformiry with accounting principles generally accepted in the United States of America as
applied to government units. The Governmental Accounting Standards Board (GASB) is the
accepted standard-setting body for establishing governmental accow1ting and financial reporting
principles.
T he more s ign ificant of the Town's accoun ti ng policies are described belo w.
A. R ep orting E nti ty
The Town is a municipal entity governed by an elected Mayor and council. As required by
accounting principles generally accepted in the Un ited States of America. these financial
statements present the Town and its component units, entities for which the Town is considered
to be financially accountable. Blended component units, although legally separate entities, are,
in substance, part of the Town 's operations and so data from these units are combined with data
of the Town, the primary government.
The financial reporting entiry consists of a primary government and its component units. A
component unit is a legal ly separate en tity that mu st be included in the reporting entity in
co nfonnity w ith generall y acce pted accoun tin g principles. The Town is a primary gove rnm ent
that ha s a separately elected govern ing body, is lega lly separa te, and is fiscally ind epe nd ent of
oth er state or local governments. Furthermore , component wtits combined wi th the Town for
financia l sta tement presentation purposes and th e Town are not included in any other
governmental reporting entity. Consequently, the Town's financial statements include only the
funds of those organizational entities for which its elected governing body is financially
accountable.
The Eagle Mountain Community Facilities Town and the Col/om••oods Improvement Town. As
special purpose districts and separate political subdivisions under the Arizona Constitution, the
districts can levy taxes and issue bonds independently of the Town. Property owners in the
designated areas are assessed for Town taxes, and thus fo r the costs of opera tin g the districts.
The Town Counci l serves as the Board of Directors; however, th e Town has no liability for t11e
di stri cts' debt. For financial reporting purposes, tran sacti ons of tbe Towns are combi ned
together and included as if they were part o f the Town's operat ions.
Page 3 1
TOWN OF FOUNT A I N HILLS, ARIZ O NA
NOTES TO FI NANCI AL STATEMENT S
J UN E 30 , 2008
NOT E I -SUMMARY OF S I GNIFI CANT ACCO UNTING P OLICIES (Con t'd)
Town ofFormtain Hills, Arizona Municipal Property Corporation. The Town of Fountain Hills,
Arizona Municipal Property Corporation's (MPC) Board of Directors consists of three members
which are appointed by the Fountain Hills Town Council. The MPC, which is a nonprofit
corporation incorporated under the laws of the State of Arizona, was fom1ed for the sole purpose
of assisting the Town in obtaining financing for various projects of the Town. The Town has a
"moral obligation" for the repayment of the MPC's bonds. For financial reporting purposes,
transactions of the MPC are combined together and incl uded as if they were part ofthe Town's
operations.
B. Governmen t -Wide a n d F und Fina n cial S tate ments
The government-wide financial statements (i.e., the statement of net assets and the statement of
activities) present financial infonnation about the Town as a whole. The reported information
includes all of the nonfiduciary activities of the Town. For the most part, the eiTcct 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
arc supported by taxes and intergovernmental revenues. The Town does not have any business-
type activities.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that arc clearly
identifiable with a specific fullction or segment. Program revenues inc lude I) charges to
customers or applicants who purchase, usc, or directly benefit from goods, services, or privileges
provided by a given function or segment and 2) grants and contributions that arc r estricted to
meeting the operational or capital requirements of a particular function or segment. Taxes, state
shared revenues, investment income and other items not included among program revenues are
reported instead as general revenues.
Separate financial statements are provided for governmental funds. Major individual
governmental funds are reported as separate columns in the fund financial statements.
C. M cns u r e m eo t Foc u s, Bas is of Acco unting, and F inancial S tate me n t Prcsentution
G ovc nun e n t-wide F inancial S tate m ents -The government-wide fimmcia l s tatements are
reported using the economic resources measurement focus and the accnral basis of accounting.
Revenues are recorded when earned and expenses are recorded when a li ability is incurred,
regardless of the timing of related cash fl ows. Property taxes are recognized as revenues in the
year for which they are le vied. Grants and similar items are recognized as revenue as soon as all
e ligibility requirements imposed by the grantor or provider have been met. As a general rule, the
eiTect of internal activity has been eliminated from the govemmenl-\vide financial statements:
however, the effects of interfund services provided and used between functions are reported as
expenses and program revenues at amounts approximating their external exchange value.
Page 32
TOWN OF FOUNT AIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE 1 -SUMMARY OF SI GNIFICANT ACCOUNTING POLICIES (Cont'd)
F und Financial Statemen ts -Governmenta l fund fmancial statements are reported using the
curren t financ ial resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized as soon as they are both measurable and availab le. Revenues are
consi dered to be available when they are collectible within the current period or soon enough
the reafte r 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 fisca l period.
Expenditures general ly are recorded when a li abili ty is incurred , as under accrual account ing .
However, debt serv ice resources are provided during the current year for payment oflong-terrn
debt principal and interest due ear ly in the fo ll owing year (not to exceed one month) and
therefore the expend it·ures and related liabilities have been recognized . Compensated absences
are recorded only when payment is due.
Property taxes , sales taxes, franchise taxes, licenses and pem1its, charges for services , spec ial
assessments and investment income assoc iated with the current fiscal period are all considered to
be susceptible to accrual and have been recognized as revenues of the current fiscal period.
Grants and simi lar awards are recognized as revenue as soon as all eligibility requirements
imposed by the grantor or provider have been mel. Miscellaneous revenue is not susceptible to
accrual because generally they are not measurable until received in cash. Grants and similar
awards arc recognized as revenue as soon as all el igibil ity requirements im posed by the grantor
or provider have been met. Deferred revenues ari se when resources are received by the Town
befo re it has lega l claim to them, as when grant monies are received prior to meeting all
e li gib ili ty requ irements imposed by the provider.
Delinquent property taxes have been recorded as deferred revenue . Receivables that will not be
collected within the availab le period have also been reported as deferred revenue on the
governmenta l fund financ ial statements.
The Town reports the following major governmental funds .
Genera l Fund -Th is fund accounts for all financia l resources of the Town, excep t those
required to be accounted for in other funds .
Development Fees Fund -This fund accow1ts for development fees co llec ted from
developers restricted for projects approved by the Town Council.
Gene ral Obligation Debt Service Fund -This fun d accounts for the Town's property tax
revenues received to pay the debt service of the Town's gene ral ob li gation bonds.
Mun icipal Property Comorat ion Debt Se rvice Fund -This fund accounts fo r the revenues
received to pay the debt service on MPC revenue bonds.
Page 33
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE 1 -SUMMARY OF SI GNIFI CANT ACCOUNTING POLICIES (Cont'd)
Capital Projects Fund -This fund accounts for th e capital improvements to various projects
of the Town.
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.
The focus of governmental fund financial statements is on major funds rather than reporting
funds by type. Each major fund is presented in a separate column. Non-major funds are
aggregated and presented in a single co lumn.
D. Inves tments
Nonparticipating interest-earning investment contracts are stated at cost. Money market
investments and participating interest investment contracts with a remaining maturity of one year
or less at time of pu rchase are stated at amortized cost. All other investments are stated at fair
value.
E. Investment Income
Investment income is composed of interest and net changes in the fair value of applicab le
investments.
F . Receivables and P ayables
Activity between funds that is representative oflending/borrowing arrangements outstanding at
the end of the fiscal year is referred to as either "due to/from other fi.mds" (i.e., the current
portion of interfund loans) or "advances to/from other funds " (i.e., the non-current portion of
interfund loans). AU other outstanding balances between fund s are reported as "due to/from
other funds."
All trade and property tax receivables are shown net of an al lowance for uncollectibles.
Property taxes are levied by the Town and collected by the Maricopa County Treasurer. Property
taxes are levied no later than the third Monday in Augus t and are payable in two installments due
October I of the current year and March 1 o f the subsequent year. Taxes become delinquent
after the first business day ofNovember and May, respectively. Interest attaches on installments
after the delinquency date.
Page34
TOWN OF F OU NTA I N HILLS, ARIZONA
NOTES TO F IN ANC IAL S TATEMENT S
J UN E 3 0, 2008
NOTE I -SUMMARY OF S I GNfFI CANT ACCO UNTING P OLICIES (Co nt'd)
Pursuant to A.R.S. 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.
The State Constitution and State law specify a property tax levy limi tation system. The system
consists of two levies, a limited levy known as the primary property tax levy and an unlimited
levy referred to as the secondary levy , which may only be used to retire bonded indebtedness.
The primary tax levy is limited to an increase of2 percent over the previous year's max imum
allowable primary levy, plus an increased dollar amount because of a net gain in property not
taxed the previous year. Also, th e primary property tax from all taxing jurisdictions for
homeowners may not exceed I percent of the market value of their homes. If the combined
primary property tax (for the Town , County, School Town, etc.) exceeds I percent of the market
value of the homes, the school districts will reduce their rate until the homeowners ' aggregate
rate is equal to or less than the allowable I percent. The State will then subsidize the school
districts for the reduced revenue. This I percent limitation applies to primary property taxes
only and does not affect the secondary property tax levy .
1l1ere is also a control on the assessed value of property for primary tax purposes. 1l1e base year
for the new tax sys tem is fiscal year 1978-79. From this base year, two assessed values evolve.
The pr imary assessed values are allowed to increase by no more than I 0 percent a year. The
do llar amount of the secondary property tax levy is "unl imi ted" and the actual full cash value of
property is used in determining the tax rate.
G. Inve ntory
Inventories are stated at average cost using the first-in/first-out (F[f0) method. Inventories
consist of expendable supplies held for consumption. Inventories are recorded as expenses when
consumed in the govemmenHvide financial statements, and as expenditures when consumed on
the fund financial statements.
H . C apital Asse ts
Capita l assets, which include land, artwork, bui ldings, improvements other than bu il di ngs,
vehicles, machinery, and equipment, construction i.o progress, and infrastructure assets (e.g.,
roads, bridges, sidewalks, and simi lar items), are reported in the applicable gove mmental or
business-type activities columns in the government-wide financial statements. Capital assets are
defined by the Town 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 historical cost or estimated
historical cost if actual historical cost is not available. Donated capital assets are recorded at
estimated fair market value at the date of donation.
Page 35
TOWN OF F O UNT AIN BJLLS, ARIZONA
NOTES TO FINANCIAL S T ATEMENT S
JUNE 30 , 2 008
NO TE 1 -S UMMARY OF S IG NIFICANT ACCO UNTING POLICIES (Cont'd )
The costs of normal maintenance and repairs that do not add to the value of the asset or
mate.rial ly extend the l ife of the asset are not capitalized . Major outlays for capital assets and
impr ovements are capitalized as projects are constmcted.
Capital assets of the Town are depreciated using the straight-line method over the following
estimated useful Jives:
Assets
lnfrastmcture
Buildings
lmprovements other than buildings
Vehicles, machinery and equipment
I. Compen s ated A b sen ces
Years
15-50
50
20
5-15
The Town's empl oyee vacation and sick leave policies generally provid e for granting vacation
and s ick leave with pay. Sick leave and vacation benefits vest after 30 days at the employee's
current rate of pay.
The current and long-term li abilities, including related benefits, for accwnulated vacation and
sick leave are reported on the government-wide financial statements. A liability for these
amounts is reported in governmental funds only if they have matured, fo r example, as a result of
employee leave, resignations and retirements. Generally, resources from the General Fund are
used to pay for compensated absences.
J. L o n g-te rm Oblig ati on s
In the govermnent-wide financi al statements, l ong-term debt and other long-term obligations are
reported as l iabilities on the statement of net assets. Bond premiums and discounts, as well as
issuance costs and the difference between the reacqui sition pri ce and the net ca:rryi ng amount of
the old debt, are deferred and amortized over the life of the bonds using the straight-l ine method
over the term of the related debt .
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 amowlt of debt
issued is reported as other financing sources. Premiums r eceived on debt issuances are reported
as other financ ing sources while discounts of debt issuances are reported as other financing uses.
Issuance costs, whether or not withheld from tbe actual debt proceeds recei ved, are reported as
debt service expenditures.
Page 36
TOWN OF F OUNTAI N H lLLS , ARIZ O NA
NOTES TO F IN AN C I AL ST ATEMENTS
JUNE 3 0, 2008
NOT E I -SUMMARY OF SI GNlFI CANT ACCO UNTING POLICIES (Concl 'd )
K . Fu n d E q uity
In the fund financial statements, governmental funds report reservations of fund balance for
amounts that are not available for expenditures or are legally restricted by outside parties fo r use
for a specific purpose. Designations of fund balance represent tentative management plans tha t
arc subject to c ha nge.
L . l n tcr f u n d Activ ity
Flows of cash from o ne fund to another without a requirement for repayment are reported as
interfund transfers. lnterfund transfers between governmental funds are elim inated in the
Statement of Activities. lnterfund transfers in lhe fund Statements are reported as other financing
sources/uses in governmental funds.
M. Estimates
The preparation of the financial statements in confonnity with accounting principles generally
accepted in the United States of America requ ires management to make estimates a nd
assump tio ns that affect the amounts reported in the fi n ancial statements and accom panying
notes. Actua l results may d i ffer fro m those estim ates.
NOT E 2 -ST EWARDSHIP, COMPL I ANCE A ND ACCO UNT ABI L I T Y
Excess E xp en ditures Over Bud ge t -At June 30, 2008, the foUowing individual major
governmental funds had expenditures that exceeded the budget.
Budget
Major Funds:
General Obligation Debt Service $ 1,392,350
Municipal Property Corporation Debt Service I ,296,350
Expenditures
$ I ,393,844 $
I ,303.878
Cash was avail a ble to c o ve r a ll of the overexpcndi tures li sted above.
Page 37
Excess
1.494
7,528
TOWN O F FOUNT ATN FULLS, ARIZONA
NOTES TO F INANCIAL STATEMENTS
J U NE 3 0 , 2008
NOTE 3-CASH AND INVESTMENT S
A.R.S. authorize the Town to invest public monies in the State Treasurer's local government
investment pools, obligations of the U.S. Government and its agencies, obligations of the State
and certain local government subdivisions, interest-bearing savings accounts and certificates of
deposit, collateralized repurchase agreements, certain obligations of U.S. corporations, and
certain other securities. 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
inves tments.
The State Treasurer's pools are external investment pools , the Local Government Investment
Poo l (Pool 5) and Local Government Investment Pool-Government (Poo l 7), with no regulatory
overs ight . The pools are not required to register (and are not registered) with the Sec urities and
Exchange Commission. The fair value of each participant's position in the State Treasurer
investment pools approximates the value of the participant's shares in the pool.
Custodial Credit Risk-DeposiTs. Custodial Credit risk is the risk that in the event of bank
failure the Town's deposits may not be returned to the Town. The Town does not have a deposit
policy for custodial credit risk. At June 30, 2008, the carrying amount of th e Town's deposits
was $364,224 and the bank balance was $419,445. At June 30 ,2008, the Town's deposits were
entire ly covered by Federal depository insurance.
At June 30,2008, the Town's investments consisted of the following.
Investment Type
Town of Fountain Hills bonds
State Treasurer's investment pool 5
To tal
Maturities
01101/2009
45 days average
Fair Value
$ 2,752
22,426,682
s 22.429,434
Int erest Rate Risk. The Town does not have a formal investm ent policy that limits investment
maturitie s as a means of managing its exposure to fair value losses arising from increasing
interest rates.
Cr edit Risk. The Town has no investment pol icy that woul d further limit it s investment choices.
As of June 30 , 2008, fo r investments in the State Treasurer's investment poo l 5, 77% of t.he
sec ur ities we re rated AAA, A+, or A I ; all of the remaining securities were ra ted A-or better by
Standard and Poor's.
CIIS todia/ Credit Risk-Investments. The Town's investment in the State Treasurer's investment
pool represents a proportionate interest in th e pool's portfolio; however the Town ·s portion is not
identified with specific investments and is not subject to custodial credit risk.
Con centration of Credit Risk. The Town places no limit on the amount the Town may invest in
any one issue r.
Page 38
TOWN O F FOUNT AIN HILLS, ARIZ O NA
N OTES T O FINANCIAL ST ATEMENT S
JUNE 30, 2008
NOTE 3-CASH AND INVESTMENT S (Concl'd )
Cash and investmen ts at June 30,2008 consisted of the following :
Can·ying amount ofTown 's deposits
State Treasurer 's lnvestment Poo l
Town ofFow1tain Hills bonds
Petty cash on hand
Cash wi th paying agent
Total cash and investmen ts
NOTE 4 -RECEI VA BLES
$ 364,224
22,426,682
2,752
1,45 1
2,679,566
$ 25,474,675
Receivable balances , net of allowance fo r uncollectibles, have been disaggregated by type and
presented separate ly in the financial statements with the exception of due JJ-om governmental
entities . Due fTom govemmen tal entities , net of allowance for uncollectibles, as of yearend for
the Town's individua l major funds and non -majo r governmental funds in the aggregate, were as
fol lows.
General
Obligation
Development Debt
Municipal
Property
Corporation
Debt Service
Fund
Non-Major
Governmental
Funds
Due from governmenta l entities:
General
fund
Due from State govenm1ent $ 956,6 17 $
Net due fi-om governmental
ent ities $ 956,6 I 7 $
Fees Service
Fund Fund
252 ,000 $ 32,656 $
252 ,000 $ 32,656 $
95 ,992 $ 274,329
95,992 $ 2 74,329
Governmental funds report deferred revenue in connection wi th rece ivab les for revenues that are
not considered to be avail able to liquidate liab il ities of the current period. Governmental fi.mds
also defer revenue recognition in connection with resources that have been received , but not yet
earned. At the end of the current fisca l year, the var ious components of deferred revenue
reported in the govenm1ental funds were as follows.
Miscellaneous (General Fund)
Miscellaneous (Deve lopment Fees Fund)
Property taxes (General Ob ligat ion Debt Service Fund)
Special assessments (Non-Major Govemmental Funds)
Tota l deferred revenue for governmental funds
Page 39
Unavailab le
$
5,888
4,482
$ 10,370
Unearned
$ 22 ,000
929,573
$951 ,573
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STAT EMENTS
JUNE 30, 2008
NOTE 5 -CAPITAL ASSETS
A summary of capital asset activity for the fiscal year ended June 30, 2008 follows.
Beginning
Governmental Activ it ies Balance Increase Decrease
Cap ita l assets, not being deprec iated:
Land $ 23 ,571.668 $ $
Artwork 989,100 387,400
Constmction in progress 62,967 3,38 I 1632 1,4 2 1,620
Total capital asse ts , not being depreciated 24,623,735 3,769,032 I ,42 1,620
Capital assets, being depreciated :
Infrastructure 125,495,515 13,22 1
Buildings 17,754,746 I 4 I ,849
Improvements other than bui ldings 10,169,670 1,636,199
Vehicles, machinery and equipment 3,696,144 1,032,830 77,449
Total capital assets being depreciated 157,11 6,075 2,824,099 77,449
Less accumulated depreciation for:
Infrastructure (54 ,2 53 ,061 ) (3,536,693)
Buildings (I ,662 ,006) (357, I 65)
Improvements othe r than bui ldings (3,503, 490) (584,066)
Vehicles, machinery and equipment {2,902 , 149} {240,568} {77,449}
Total accumulated deprec iati on (62,320, 706} ( 4,7 I 8,492 } (77,449}
To tal capital assets, being depreciated , net 94,795,369 {1,894,393}
Governmental activities capital assets, net $ 119,4 19,104 $ 1,874 ,6 39 $ 1.42 1,620
Depreciation expense was charged to functions/programs as foUows:
Governmental activities:
Genera l government
Pub lic safety
Highways and streets
Cul ture and recreation
Total depreciation expense
$ 231 ,125
38,9 I 7
3,693,2 I 9
755,23 I
$ 4,718 ,492
Ending
Balance
$ 23,57 1,6 68
1,3 76 ,500
2,022,979
26,97 1,14 7
125 ,508 ,736
17 ,896,595
11.8 05,869
4,65 1,525
159,862,725
(57,7 89.754)
(2,0 19,171)
(4,087,556)
{3,065,268)
(66,961 '749)
92,900,976
$ 119,872,123
Consh·uction Commitments -As of Jun e 30,2008 , the Town was involved in several construction
projects. The es timated cost to complete the constmction projects is $198,628.
Pagc40
TOWN OF FOUNT AJN HILLS, ARIZONA
NOTES TO FINAN C IAL STATEMENTS
J UNE 30, 2008
NOTE 6-BO NDS PAY ABLE
Bonds payable at June 30, 2008, consisted of the following general obligation, municipal
property corporation, special assessment, and community facilities district bonds. The bonds are
both callable and noncallable with the interest payable semiannually. Property taxes from the
General Obligation Bond Debt Service Fund and Eagle Mountain Debt Service Fund are used to
pay general obligation and community facilities district bonds. State shared revenues from the
HURF Fund are used to pay street and highway user bonds. Tax revenues from the General
Fund and Excise Tax Fund are used to pay municipal faci li ties bond s. Special assess ments
imposed on certain parcel s ofland within the Cottonwood s Improvement District are used to pay
the Special Assessment District bonds.
Description
Governmental activities:
General Obligation Bonds, Series 1999
General Obligation Bonds, Project of
1999, Series B (2000)
Genera l Obligation Bonds, Project of
1997, Series 200 I
Genera l Obligation Refunding Bonds,
Series 2005
Eagle Mountain Community Facilities
District, General Obligation
Refunding Bonds, Series 2005
Street and Highway User Revenue
Refunding Bonds, Series 1998
Municipal Facilities Revenue Bonds.
Series 2000
Municipal Facilities Revenue Bonds,
Series 2001
Municipal Facilities Revenue Bonds,
Series 2004
Unamortized premium on Municipal
Faci lities Re venue Bonds, Ser ies
2004
Municip al Faci lities Revenue
Refunding Bonds, Series 2005
Cottonwoods Improvement District
I mprovemcnt Bond
Total
Page 41
Origina l
Amount
Issued
$ 1,400,000
3,700,000
6,000,000
7,225,000
Interest
Rates
4 .7-4.9%
5.25%
4.125-4.4%
3 .25-4.0 %
4.555,000 3.5-4.125%
I ,075,000 4.5-4.625%
4,680,000 5.0-5.25%
7,750,000 4.0-4.5%
3,645,000 3.0-4.5%
143,856 3.0-4.5%
5,330,000 3 .25-4.5%
32,276 5.25%
Outstanding
Principal
Maturity June 30, 2008
Due Within
One Year
711/08 -10 $ 300,000 $ I 00,000
7/1/08-09 550,000 275,000
7/110 8-11 1,150,000 275,000
7/1108-19 6,620,000 400,000
7/110 8-21 4,255 ,000 185,000
7/1/08 -10 345,000 110.000
711/08-12 1,080,000 200,000
7/1108-13 2,125,000 325,000
7/1/08-19 3.205,000 165,000
711/08-19 11 4,093 9,921
7/1108 -20 5,185 ,000 II 5,000
1/1/08-09 3,225 3,225 -=s-2=-4:-:,9~3='2,-='31~8 s 2,163,146
TOWN OF FOUNTAIN HlLLS, ARIZONA
NOTES TO FINANCIAL STAT EMENTS
JUNE 30, 2008
NOTE 6-BONDS PAY ABLE (Cone!' d)
Annual debt service re quirements to maturity on general o bli gation and other bonds at June 30,
2008, are summarized as follows .
Year ending J une 30 : PrinciEal Interest Premium Total
2009 $ 2,153,225 $ 961,671 $ 9,921 $ 3,124,8 17
2010 2,240,000 872,022 9,92 1 3,121,943
201 1 2,460,000 777,276 9,92 1 3,247,197
2012 2,1 15,000 686,367 9,92 1 2,8 11,288
2013 2,205,000 599,449 9,92 1 2,8 14,370
2014-1 8 9,650,000 I ,694,173 49,605 11,393,778
2019-22 3,995,000 245,301 14,883 4,255,184
Total $ 24,818,225 $ 5,836,259 $1 14,093 $ 30,768,577
In prior years, the Town defeased certai n general obli gation and o th er bonds by placing lhe
proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on
the defeased bonds . Accord ingly, the trust account assets and the liabi li ty for thedefeased bonds
are not in cluded in tbe Tovvn' s financial statements. A !June 30, 2008, $1 1,958,000 of defeased
bonds are still outstanding.
NOTE 7 -CH ANGES IN LONG-TERM LIABILITIES
Long-term liabil ity activity fo r the year ended Jw1e 30, 2008 was as follows.
Beginning Ending Due W ith in
Balance Additions Reducti ons Balance One Year
Governmental activ ities :
Compensated absences $ 189 ,047 $361 ,4 13 $ 238,690 $ 3 11 ,770 $ 35 ,000
General obligation bonds payable 22,4 89,0 14 1,8 14,921 20,674,093 I ,974,921
Special assessment bonds payable 6,453 3,228 3,225 3,225
C01rununity fac ilities district bonds payable _4.11~,()()() -1§0,000 4,255,000 185,000
Governmental activ ities long-term
I iabi I ities $27,099,514 $361,413 $2,2 16,839 $25,244,088 $ 2,198,146
Page 42
~
;;;)
0
"'
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 3 0 , 2008
NOTE 8-INTERFUND RECEIVABLES, PAY ABLE S, AND TRANSFERS
At Jtme 30, 2008, interfund balances were as follows.
Due t o/from other fund s:
Due from
Due to
General
Fund Total
General Obligation Debt Service Fund
Non-Major Governmental Funds
Total
$ 37,860
104,057
$ 141,9 17
$ 37,860
104,057
$ 141 ,917
At June 30, 2008, several funds had negative cash balances. Negative cash was reduced by
interfund borrowing with lhe General Ftmd . All interfund balances are expected to be paid
within one year.
Intc rfund transfers:
Transfers in
M unic ipal
Property
Corporation Non -Major
General Debt Capital Govenunental
Fund Service Fund
General Fund
Projects Fund Funds Tota l
$ $ 387,000 $ 1,000,000 $ 53 ,050 $1,440,050 ... . .
<.':l Non-MaJor Governmental
~ Funds
f-< Total
426 1,177,973 138 ,539 1,316,938
$ 426 $ 1,564,973 $ 1,000 ,000 $ 19 1,589 $2,756,988
Per local policy, residual General Fund revenues are tran s fe rred at year end to lhe Capital
Projects Fund ($1.0 million for fiscal year 2007-08). T ransfers between other funds were made
by the Town during the fiscal year to ens ure that sufficient resources were available to cover
expend itures i n the applicable funds.
NOTE 9-CONTINGE NT LIABILITIES
Laws uits-The Town is a defendant in variou s lawsuits . Although the outcome of these lawsui ts
is not presentl y detemlinable, in the opinion of the Town's legal counsel, the reso lutio n of thes e
matters will no t have a materi a l adverse effect on the financ ial condition of the Town.
Page43
TOWN O F FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE 10 -RI S K MANAGEMENT
The Town is exposed to various risks ofloss re lated to torts; theft of, damage to, and destruction
of assets; errors and omissions; and natural disasters. Th e Town's in surance 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 basis.
Excess coverage is for an additiona l $13,000,000 per occurrence on a follow form , claims made
basis. No significant reduction in insurance coverage occurred during the year, and no
settlements exceeded insurance coverage during any of the past three fiscal years .
The Town was unable to obtain worker's compensation insurance at a cos t considered to be
economica ll y justifiabl e. Therefore the Town joined the Arizona Municipa l Workers'
Compensat ion Pool (AMWCP). AMWCP is a public entity risk poo l cu rrenll y operating as a
common worker 's compensation insurance program for 67 member cities and towns. The Town
is responsible for paying a premium, based on an experience rating formula, that allocates pool
expenditures and liabi lities among members.
NO T E !!-RETIREMENT PLANS
Define d Contribution Pen sion Plan -All fu ll -time employees of the Town participate in a
deftned contribution pension plan administered by the ICMA Retirement Corporation as a 40 I (a)
plan. The payroll for tl1e Town employees covered by thi s plan for the year ended June 30,2008
was $3,694 ,466. The Town's tota l payroll was $4,152 ,103.
A defined contribution pension plan provides benefits in return for services rendered, provides
an indi vidual account for each participant, and specifies how contribut ions to the ind iv idual's
account are to be dete rmined, instead of specifyin g the amount of benefit the individual is to
receive. Under a defined contribution pension plan, the benefits a participant will receive
depend solely on the amount contributed to the participant 's account , the returns earned on
in vestment of those contributions , and forfeitures of other participants' benefits that may be
allocated to such participant 's accow1t. All non-peace officer full-time Town employees must
partic ipate in the pens ion plan from the date they are hired. Co ntributions made by an employee
ves t imm ediately and contributions made by lhe Tovm vest after three years of service.
An employee that leaves the employment of the Town is enti tl ed to his or her contributions and
the vested portion of the Town 's contributi ons, plus interest earned. Each employee must
contribute I I percent of his or her gross earnings. The Town must contribute I I percent of
covered earnings. During fiscal year 2007-08 , the Town's required and actual contributions
an10unted to $406 ,227. The emp loyees ' contributi ons totaled $542,958. Employees may also
contribute to the JCMA Retirement Corpo ration 457 plan on a vo luntary basis ; there is no
emp loyee match for those contributions. During fiscal year 2007-08 , emp loyees contributed
$136 ,731 to that plan.
No pens ion provision changes occurred during the year that affected the required contributions to
be made by tl1e Town or its employee-s.
The ICMA Retirement Corporation held no securities of the Town or other re lated parties during
the fisca l year 2007-08 or as of the close of the fiscal year.
Page44
Page 45
SCHEDULE OF REVENUES, EXPENDITURES AN D CHANGES IN
FUND BALANCES -BUDGET AND ACTUAL
(R equired Supplementary Information)
TOWN OF FOUNTAIN lULLS. ARJZONA
SCttEDULE OF REVENUES. EXPENDITURES AND
C HANGES IN FUND BALANCES· BUDGET AND ACI'UAL ·GENERAL FUND
YEAR ENDED J UNE30, 2008
Budgct«<
Amounts
Variance with
Final Budget
l'OSIIive
Ori~tinal & Final Actunl (N<!!!!Iive)
flt-,'tnues:
Ta."<eS s 7,234,185 s 7,502.526 $ 268.341
lntergo\·emmental 7,209.290 6,831,804 (377.486)
Fines and tOrfehurcs 209,705 260,044 50,339
Li«rues ~nd pc:nl~i ts 1,43 5,835 1,124,405 (311,430)
Charges ror :SCIVices 323,57 1 210.560 (1 13 ,0 1 I)
kents and roynltics 294,775 296.434 1,659
lnvestmenl income 350,000 266,0 10 (83.990)
Misecllaneous 100.000 182,196 82,196
TotJil rtvtiHJd 17,157.36 1 16.673.979 (483,382)
Expenditures :
Gtnttal eovtr-nmtnl
Mayor and council 212.146 200,081 12.065
M~gistnue coun 379.320 383,438 (4,118)
Gtncrn l and admi nistrulive-2,694 ,526 2,7 19.682 (25,156)
Tota l (tt>ntrlt l =ovtrnmtnt 3.285.992 3.303.201 (17.209)
Publi t saftl:)'
Building safety 576,700 527,920 48,780
Law enforcemem 2,790.900 2,829.736 (38 .836)
Fire dep3mnem 3,045,826 2 962,374 83.452
TOt Ill publit Slftty ~413.426 6,320,030 93.396
Cullu n: and rtC'rCR1iOII
Parks and rct.teation 2,134 ,746 1.566.326 568,420
Civ1c center 475.786 450,871 24.9 15
Senior services 223.848 183.287 40.S61
To111 1 culture tnd rttrt111 ion 2,834~80 ~00.484 633.896
Cummun ity developm ent
Publte: wor'ks 2,462.462 2.021,587 440.875
Plnnnmg and ~nmg 863 739 720,153 143 586
1'ota l tommunhy drvelopment 3,326.20 1 2,741.740 584,461
CnJ)ht l outl~y
Capitnl oull ay 910,463 689,241 22 1,222
Tot11 l t.ap ilal oullay 910,463 689.241 22 1.222
Total upcndiluru 16,770,462 15,254.696 I,SIS.766
f.;.xct'.U (dt'Ocicncy) of rtvt.nues ovcr
upc.odhurts 386.899 1,419,283 1,032.)84
Othcrlin:.ncing sourers (us~):
Transfer'$ in 426 426
Transfmoul (387,000) ! 1,440,050} !1 1053,050}
Total otbtr financing. Jou rc·es (un.'l) (38 7.000) ( 1,439,624) (I ,052,624)
Chnnge in fond bJIIAnttt ( 101) !20,341) (20.240)
l~und ba lancu. July 1. 2007 6.600.1 49 6,600.149
Fund ba b1 nctt (dtl'itlts), June 30, 2008 s (101) s 6.S79,808 s 6,579,909
Page 46 Stc accompanying notes to chi.s .llthcdule.
TOWN OF FOUNTAIN K ILLS, AIUZONA
SC HEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FU N D BALANCES-BUDGET AND ACTUAL-DEVELOPMENT F EES
YEAR ENDED JUNE 30, 2008
Revenues:
lntergovcmmcntal
Charges for services
Investment income
Total revenues
E~pcnditurcs:
Current-
Hi ghways and streets
Capital outl ay
Tot~tl expenditures
Change ir.r fund balances
Fund balances, July I, 2007
Fund balances (d c licits), June 30, 2008
Page 47
Budgeted Variance with
Amou nts Final Budget
Positive
Original & Final Actual (Negative)
s 774 ,920 s 257,347 $ (517 ,573)
586,490 359,735 (226,755)
15 ,285 99 139 83 854
1,376,695 716.221 (660,474)
2,606 (2,606)
2 ,412,5 14 2,0 18,824 393 690
2,412,5 14 2 ,02 1,430 391 084
0,035~12) (I ,305,209) (269 ,390)
3,563,434 3,563,434
s O~<t3_M19) s 2,258 ,225 $ 3,294,044
Sec accompanying notes to this schedule.
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTE TO REQUIRED SU PPLEMENTARY INFORMATION
JUNE 30, 2008
NOTE 1 -BUDG E TARY BASIS OF ACCOUNTING
The adopted bud get ofLhe Town is prepared on a basis of accounting consisten t wilh accotmting
principles genera ll y acce pted in the United States of Ame ri ca.
Page 48
Page 49
C OMBINING AND INDIV ID UAL
FUND FINANCIAL ST ATEMENTS
AN D SCHEDULES
Page 51
OTHER MAJOR GOVERNMENTAL FUNDS
SCHEDULES OF REVENUES, EXPENDITURES AND
CHANGES JN FUND BALANCES -BUDGET AND ACTUAL
TOWN OF FOUNTAIN HILLS, ARJZONA
SCHEDULE OF REVEN UES, EXP EN DITURES AND
CHANGES IN FUN D BALAN CES-BUDGET AND ACTUAL-GENERAL OBLIGATION DEBT SERVICE
YEAR ENDED JUNE 30,2008
Re ve nues:
Taxes
I nvestmcnt income
Misce ll aneous
Total revenues
Expenditures:
Debt se rvice -
Principal retirement
Interest and fisca l charges
Total expenditures
Change in fund balances
Fund bnlances, July I , 2007
Fund balances, June 30,2008
Page 52
Budgeted Variance with
Amou nts Final Budget
Positive
Or igi nal & Final Actual (Negative)
$ 1,400,000 $ 1,302 ,724 s (97,276)
1,400 31 (1,369)
43 43 --1,40 1,400 1.302,798 (98,602)
1,050,000 1,050,000
__ -c-'3~40:2":3'-::5'7-0 J~J
l ,392,350 • J'"
..,, • .., 844 (1,494)
1 ~cn.844 0,494)
____ 9=05::_:0,_ '" •' 'n' 046) (100,096)
96,370 96,370
-s 9 ,050 s .; J&..-. =q~==d~~ C ')"'A .. (3.726)
TOWN OF FOUNTAIN HILLS, ARIZONA
SCHEDULE OF REVENUES, E XPENDITURE-S AND
CHANGES I N FUND B A LAN C ES -BUDG E T AND ACTUAL-MUNIC fPAL PROPE RTY C ORPORATION D E BT S ERVI C E
YE AR END E D J UNE 30, ZOOS
Budgeted Variance w ith
Amounts Final Budget
Positive
Original & Fin a l Actual (Negative}
Revenues:
Investme nt income s 40 000 $ 5 1 078 $ I I 078
Total rev e nu es 40.000 5 1 078 11,078
Ex p e nditures :
Debt s ervice -
Prin c ipa l re ti reme nt 805,000 805 ,000
Interes t and fi sca l charges 491 350 498.878 (7,5282
Total expenditures 1,296,350 1,303,878 (7,528)
Excess (deficiency) of revenues over
e xpenditures ____11.256.350) --(1 ,252,80 0) 3,550
Other financin g s ources (us es ):
Transfers in 1,329 ,843 I 564 973 235 130
Total other financin g s ou•·ces (uses) 1,329,843 1,564,2.73_ 235,13 0
C hange in fund balances 73.493 312,173 238,680
fund balances, .July 1, 20 07 1,262,089 1,262,089
fund balances , June 30, 2008 $ 73 493 $ 1,574 ,262 $ 1 500 ,769
Page 53
T OWN O F F OUNTAIN tnLLS, ARIZONA
SC H ED ULE OF REVENUES, EXPENniTURES AND
C H AN G ES I N F UN D BA L ANCES· B UDGET A ND ACTUAL-CA PITAL PROJ ECTS
YEAR ENDED J UNE 30, 2008
Bud geted Va riance w ith
Amoun ts Fina l Budget
Posit ive
Original & Final Actual Q::!egative)
R e.ve nu es:
Taxes s 907,434 s 1,752,724 $ 845,290
Intergovernmental 27,2 17 27,2 17
lnvcs lment income 250,000 287 324 37 324
Total revenues I 157 434 2,067,265 909 83 1
Ex penditures :
Capital outlay 3,069,059 2J 19,078 84998 1
T ot a l ex pe nditures 3 oGU>~ --~.m.Q7Jt ___ 849,98 1
Excess {d e ficien cy) o f r eve nues ov e r
e xpenditures __ U,ill,6)~) 1_5!,81)) __ IJ75~8 1 2
O ther finan c in g sources (uses):
Transfers in 1.000,000 1,000,000
T ota l othe r financin g sources (us es) 1,000,000 1,000,000
C hange in fund b a lances (1,911,625) 848,187 2 759,8 12
Fund bala n ces, July I , 2007 9,9 16,670 9,916,670
Fund b a lances (defi c its), Jun e 30, 2008 $ {1 1911,625) J_IQ,7_~4,857_ .$_)2J()'76,482
Page 54
TOWN O F FOUNTAJN HILLS, A RIZONA
COMBlNI NG BALANCE S H EET-AL L NON-MAJOR GOVERNMENT AL FUNDS-BY FUND TYPE
JUNE 30, 2008
Tota l
Non-Major
Governmental
S~c i a l Revenue Debt Service F unds
ASSF.TS
Cash and inves tmen ts s I ,644,748 $ 391,527 $ 2,036,275
Taxes receivable 480 480
Special assessments receivable 4 ,710 4,710
Accounts receiva ble 6,146 6 ,146
Due from governme ntal entities 266,83 1 7 498 '74 329
Total assets s I ,917,725 s 404,215 $ 2,32 1,940
L IABILITI ES A ND FUND BALANCES
Liabili ti es:
Accounts payable s 201,163 s s 20 1,163
Due to oth er funds 95,992 8,065 104 ,057
Accru ed payro l I a nd employee benefits 1,868 1,868
Bond inte res t payab le 90,514 90,514
Deferred revenue 4,482 4,482
Bond s pa)•able 295 ,000 295,000
T otal liabilities 299,023 398 061 697 084
Fu nd balances:
Unreserved :
Undesignated 1,6 18 ,702 6 154 1,624 ,856
Total fund balances 1,6 18,702 6 154 1,624,856
Total liabilities and fund balances $ 1,911,7_~~ $ __ 101~15 s 2,32 1,940
Page 56
TOWN OF FOUNTAIN H1 LLS, ARJZONA
COMBINI NG STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
ALL NON-MAJOR GOVERNMENTAL FUNDS-BY FUND TYPE
YEAR ENDED J UNE 30, 2008
Total
Non -Major
Governmental
~ia l Revenue Debt Service Funds
Rc''cnucs:
Taxes $ 1,570,631 s 328,48 1 s 1,899,112
lntergovemmental 2,236,892 2,236,892
Fines and forfeitures 27,076 27,o76
Licenses and pennits 1,552 1,552
Charges for se rvices 50,005 50,005
Special assessments 4 ,337 4,337
Investment income 77,353 77,353
Miscellaneous I 724 l 724
Tohtl revenues 3,965,233 332,8 18 4,298,051
Ex penditures:
Current-
General government 245,094 245,094
Pub li c safety 1,639 1,639
Highways and streets 2,211,951 2,2 11 ,951
Culture and recreation 56,523 56 ,523
Community development 10.000 10 ,000
Capital outlay 312,026 3 12,026
Debt service -
Principal retirement 298,228 298,228
Interest and fiscal charges 182 598 182 598
Total expenditures 2 ,83 7,233 480 826 3,318,059
Excess (deficiency) of reve nues over expenditures I ,128,000 (148,008) 979 ,992
Other financing sources (uses):
Transfers in 65,642 125,947 191,589
Tnmsfers out (1 ,316,938) ( 1,3 16 ,938)
Total other financing sources (uses) (1 ,251,296) 125 947 (1,125,349)
C hange in fund balances {123,296) 122,061) 145,357)
Fund balances, beginning or year 1,741.998 28,215 1,770,213
Fund balances, end of year $ 1,618,702 $ 6 , 154 $ I ,624,856
Page 57
N O N-MA.IOR SPECIAL REVENUE FUNDS
Special Revenue fund s are used to account for proceeds of specific revenues so urces that are lega lly
restr icted to expenditures for specific purposes (oth er than major ca pital projects). The funds are usual ly
requ ired by statute, ord inance, or fede ral grant reg ulati on to finance spec ified ac ti vities of the Town . l11c
Town maintains th e fo ll owing non -major Spec ial Revenue funds.
HURF Fund-acco unts for the Town's snare of motor fuel tax revenues and lotte ry proceeds.
Loca l Co urt E nhancement Fund -accounts for activities of gran ts from the Arizona Su preme
Court.
Grants Fund -accounts for the activities of various grants and cont ri bu ti ons received by the Town .
Exc ise Tax Fund -accounts for the portion of Town sales tax reserved by the Town Council for
special projects including Town beautificat ion and eco no mic deve lopment.
Public Ar t Fund -accounts for the one perce nt surcharge on commercial and multi-family
deve lopment dedic ated to purchasing art.
Page 59
TOWN Of fOUNTAI N HI L LS , ARIZONA
C OMBTN I N G BALANCE S HEET-N O N-MAJOR S P ECLAL REVENUE f U ND S
JUNE 30, 2008
Local Court
HURF Enhancement Grants Exc ise Tax
ASSET S
Cash and investments $ 458,557 $ 193,148 s 36,674 s 930,064
Acco un ts rece ivab le 6 ,146
Due from governmenta l e nt it ies 138,842 127 989
Tota l a ssets s 603 545 s 193 148 $ 36,674 s 1,058.053
L IABILITI E S AND f UND BALANCES
Liab ili ties:
Acco un ts payable s 164,233 s s 36,674 s 256
Due to o ther fun ds 95,992
Accrued payroll and employee benefits 777 I 091
Toralliabilities 165 010 36674 97,339
Fu nd balances:
Unreserved:
Undes ignated 438,535 193 14 8 9607 14
T otal fund balan ces 438,535 193,148 960,7 14
T o t:~ I liabilities and fund balances $ 603,5lj1_ S __ J23.148_ S 36.674 $ __ 1~058,053
Page 60
Public An Totals
s 26,305 s 1,644 ,74 8
6,146
--266,831
s 26,305 $ 1,9 17,725
201,163
95,992
I 868
----------:2=9::'9,0.23
s s
26,305 1.618 ,702
__ _,26"",3'""0"-5 1.618.702
s 26,305 s 1,917,725
Page61
T O WN O F FOUN T A I N HTL LS, A RIZONA
C OMB IN I NG S T AT EMENT O F R EVENUES, EXPEN DI TUR ES AND C HANGES I N FUND BALANCES -
N ON-MAJOR S P ECIAL REVENU E FUNDS
YEAR EN D ED JUNE 30, 2008
Loca l Court
HURF Enhancement Grams
R evenues:
Taxes $ $ $
Intergovernmental 1,801,365 435,527
Fines and forfeitures 27,076
Licenses and permits 1,552
Charges for services 23 ,700
l nvestment income 39,006 3,552
M iscell aneous I 724
Tota l r evenues I 867 347 30628 435 527
Expenditures:
Current-
Gene ra l government 2,274 174,574
Public Sllfety 1,639
Highways and streets 2,129,389 82,562
Culture a nd recreation 56,523
Community development 10,000
Capita l outlay 58 136 2 1 875 232,0 I S
T otal expend itures 2,187,525 24 149 557,3 13
Excess (deficie ncy) o f revenues over expen ditures __ 020"178} -. -_6.479 {121,786)
O the r fin a n cing sources (uses):
Transfers in 65,642
Transfers out ( 138,539) (426)
T o tal o the r financin g sources (u ses) (138,532) 65,2 16
C hange in fund b ala nc es (458 ,717) 6 479 56,570)
F und ba la nces, begin ni ng ofycur 897,252 186,669 56,570
Fund b alances, e nd of year $ 438,535 $ 193 ,148 =$====
Page 62
Excise Ta.~ Public An Totals
s 1,570.63 1 $ s 1,570,631
2.236.892
27.076
1,552
26,305 50,005
34.795 77,353
I 724 -1,605,426 _______ 2(i>~05_ __3,~6~,233
68.246 245.094
1,639
2.211.951
56,523
10.000
312.026
6!!.,246 2,837,233
I ,537,180 26 305 1,128,000
65,642
.u_._m,973) {I ,3 16,938)
(1,177,973) (1.25 1.2.2§}
359.207 26.305 (123.296)
601,507 1,741,998
~ ===-=9.;.69,714 -~ 26,305 $ I ,6 18,702
Page63
TOWN Of fOUNTAIN HILLS, ARIZONA
COMBINI NG SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
fUND BALANCES· BUDGET AND ACTUAL-NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2008
HURF
Variance·
Positive
Bud get Actua l (Negative)
Revenues:
Taxes $ $ $
Intergovernmental 1,851 ,633 1,801 ,365 (50,268)
Fines and forfe itures
Licenses and permits 1,552 1,552
Charges for services 8,000 23,700 15 ,700
Investment income 40,000 39,006 (994)
Miscellaneous I 000 I 724 724
Total revenues 1,900,633 I 867 347 (33,286)
Expenditures:
Current-
General government
Publ ic safety
Highways and streets 2,289,485 2,129,389 160,096
Culture and recreation
Community developmenl
Capital outlay 74 000 58 136 IS 864
Total expenditures __ 2,~~3A!t5 2,187 ,525 175,960
Excess (deficiency) of revenues over
expenditures __ (46~&m __ (320,178) 142,674
Other financing sources (uses):
Transfers in
Transfers out (126,300} {138,539} (12,239}
Total other financing sou rces (uses) ( 126,300) {138,539) (12,239)
Change in fund b:ahtnces (589,152) {458,717) 130,435
Fund balonCI.'S, July I, 2007 897 ,252 897,252
Fund balances (deficits), June 30, 2008 s ~89,152) $ 438 535 $ __ 1)2f7,687
Page 64
Local Court Enhancement Grants
Variance· Var iance-
Positive Pos itive
Budget Actual (Negative) Budget Actua l (Negative)
s $ $ s $ s
1,807,500 435,527 (I ,37 1,973)
23,300 27,076 3,776
3,552 3,552
--23 ,300 30,628 7,328 1,807,500 435,527 (1,37 1,973)
2,274 (2,2 74) 90.000 174,574 (84,574)
1,639 ( 1.639)
82,562 (82,562)
56,523 (56,523)
10,000 (10,000)
28,000 21.875 6 125 1,835 ,000 232 0 15 1,602,985
28,000 24.149 3 851 1,925.000 557 313 I 367 687
(4,700) 6,479 II ,179 (117 ,500) (121 ,786) (4,286)
42.500 65 ,64 2 23,142
(426} (426)
42 ,500 65,2 16 22 716
!1,IQQ) --6479 I I 179 (75 ,000) (56,570) 18 ,430
186,669 186 ,669 56,570 56,570
s (4, 700) $ 193.148 s 197,848 $ (75.000) s s 75,000
(Cont inued )
Page65
TOWN OF FOUNTAIN FUL LS, ARIZONA
COMBI N I NG SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES· BUDGET AND ACTUAL-NON -MAJOR SPECIAL REVENUE FUNDS
YEAR EN DE D JUNE 30, 2008
(Concluded)
Excise Tax
Variance-
Positive
Budget Actual (Negative)
Revenues:
Taxes s 1,297,124 s 1,570,631 $ 273,507
Intergovernmental
Fines and forfeitures
Licenses and permits
Charges fo r ser vices
Investment income 34,795 34,795
Miscellaneou s
Totul revenues I 297 124 1,605,426 308 302
Expenditures:
Current-
General government 18 3,120 68,246 114,874
Public safety
Highways and streets
Culture and recreation
Community development
Ca pital outlay
Total expenditures 18 3,120 68~4_6_ 114 ,874
Excess (deficiency) of revenues over
expenditur-es I 114,()j)4 ___ l~snJSO_ 423,176
Other financing sources (uses):
Transfers in
Transfers out (924,3 50} (1,177,973} (253,623)
Total other financing sources (uses) (924,350) (1,177,973) (253,623)
Chnngc in fund balonees 18 9 654 359 207 169,553
Fund balances, July I, 2007 601,507 601,507
-Fund balan ces (deficits), June 30, 2008 $ 189,654 $ 960,714 s 771.060
•n1e Publ ic Art Fund was included in the Town's budget, however, the budget was -0 -.
Page66
Pub li c An Tota ls
Variance 4 Varia nce ·
Positive l'osilive
Budge t• Actual (Negative) Bu dget Actual (Negative)
s $ s s 1,297,124 s 1,570,63 1 $ 273,507
3,659 ,133 2 ,236,892 ( 1,422,241)
23,300 27,076 3,776
1,552 1,552
26 ,305 26,305 8,000 50,005 42 ,005
40 ,000 77,353 37 ,353
I 000 I 724 724
26,305 26,305 5,028,557 3,965.233 (1,063 ,324)
273 ,120 245,094 28 ,026
1,639 (1,639)
2,289 ,485 2,2 11 ,951 77 ,534
56,523 (56,523 )
10,000 (10,000)
1,937 ,000 3 12 026 1,624,974
4 ,499 ,605 2,837,233 1 662,372
26,305 26,305 528 ,952 1,128 ,000 599,048
42 ,500 65,642 23 ,142
( 1,050 ,650) ( 1 ,3 16,938} (266 ~88}
( 1,008, 150) (1 ,25 1,296) (243 ,146 )
26,305 26,305 (479,198) (123,296) 355 902
1,74 1,998 1.74 1,998
s $ 26,305 s 26,305 $ (479.198) $ 1,6 18,702 $ 2.097,900
Page67
NON-MA JOR DEBT SERVICE F UNDS
II U RF Debt Ser-v ice Fun d -accounts for operating transfers received from th e HU RF special
revenue fund 10 pay !he debt serv ice of the Street a nd Hi g hway User Revenue Bonds.
Eagle Mountain Debt Service Fund -accou nls for the pr operty tax revenues received to pay the
debt service of the Eag le Molllltain Community Faciliries District component unit.
Cott onwood s S pecial Assessm ent Fund -accounts for all special assessments received to pay the
debt service of the Cononwoods Special Assessment District.
Page 69
T O WN OF FOUNTA I N HI LLS, AR IZONA
COMBINI NG BA L ANCE SHEE T-NON-MAJ O R OE BT SER VICE FUNDS
JUNE 30, 2008
Cottonwoods
HURFDebt Eagle Mountain Special
Service Debt Service Assessment
ASSET S
Cash and investments $ tl 7.896 s 267,138 $ 6,493 $
Taxes receivable 480
Special assessments receivab le 4 ,710
Due from governmental entities 7498
T otal assets $ 117 896 s 275 116 s 11.203 s
LIABILITI ES AND FUN O BALANCES
Liabilities:
Due to otl1er funds $ s 7,498 s 567 $
Bond interest payable 7,896 82,618
Deferred revenue 4,482
Bonds payable 110 .000 185 ,000
Tota l li abiliti es 117 ,896 275 116 5 049
Fund balances:
Unreserved:
Undes ignated 6 154
T o tal fund bala n ces 6 154
Tota l liabilities and fund bala n ces s 117 ,896 s 275 ,11 6 s 11,203 $
Page 71
Totals
391,527
480
4,710
7498
404 215
8,065
90,5 14
4,482
295 000
398 061
6.154
6,154
404,215
TOWN OF FOUNTAIN HILLS, ARJZONA
COMBIN I NG STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-
NON-MAJOR DEBT SERVI CE FUNDS
YEAR ENDED JUNE 30, 2008
Cottonwoods
HURFDebt Eag le Mountain Special
Service Debt Serviee Assessment
Revenues:
Taxes s s 328,481 $
Special assessments 4 337
Total reven ues 328 481 4 337
Expenditures:
Debt service -
Pr incipal retirement 110,000 185,000 3,228
Interest and fisca l charges 16 192 166 054 352
Total expenditures 126,192 351,054 3 ,580
Excess (deficiency) of revenues over expenditures 01§,1~2} m ,5m 757
Other financing sources {uses):
Tra nsfers in 122 28 1 3.666
Total other financing sources (uses) 122,281 3,666
C hange in fund balances (3,911) (18,907) 757
Fund balances, beginning of yea r 3,911 18 ,907 5,397
Fund bal.ances, end of year s $ s 6,154
Page 72
"" ..
"8
..
..... c} ... ~ :.;: ~A-N ~~ ... ;; ..., "'f~ coco ... N ;;;
0> .. ..,. "' :co 0"' co A 00
iv 'f'f? ~ OOV'I'l-.J ... -:..
"' N "' N ..... ... u. ..... ..... 0> .... ..... -
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINI NG SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES-BUDGET AND ACTUAL-NON-MAJOR DEBT SERVICE FUNDS
YEAR EN D ED JUNE 30, 2008
HURF Debt Service
Variance -
Positive
Budget Actual (Negative)
Revenues:
Taxes $ $ s
Special assessments
Total r<venues
l~:s penditu res:
Debt service -
Principal retirement 110 ,000 11 0,000
Interest and liscal charges 16 300 16 192 108
Total expenditures 126 300 126,192 108
Excess (deficiency) of revenues over
ex penditures (126,300). (126,192) 108
Other financin g sources (us es}:
Transfers in 126,3 00 122 ~81 {4 .019).
Total other financing sources (uses) 126 300 122,281 (4,0 19)
C hange in fund balonccs (3,9 11 ) (3,9 1 I)
Fund bnlanccs, July 1, 2007 3,9 11 3,9 11
Fund balances, June 30, 2008 $ s $
Page 74
Eagle Mountain Debt Service Cononwoods S~ial Assessment
Varian~-Variance·
Positive Positive
Bud~et ____ i\cJua_l _ ____!liegativo:}____ Budget Actual ____f!!_~\~
s 360,000 s 328.481 s (31,519) s s s
7 150 4 337
360,000 328,48_1_ (31~5.!9) 7 150 4 337
185,000 185,000 3,228 3,228
172,835 166,054 6 781 352 352
357,8]1 351,054 6 781 3 580 3 580
2,161 (22,573) (24,738} 3,570 757 -_(7Jlli}
3,666 3 666
3,666 3 666
2~ 165_ -_jl!,9Q71 (21,072) ________ 3,UQ _ 757 -_(f.._811)
18.907 18.907 5,397 5,397
-s 2,165 s s -(_2>1_65) s 3 570 $ 6)54 $ --2,584
(Continued)
Page 75
TOWN OF F OUNTAIN HILLS, ARJZONA
C OMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES· BUDGET AND ACTUAL-NON-MA.JOR DEBT SE RVICE FUNDS
YEAR ENDED J UNE 30, 2008
Revenues :
Taxes
Special assessments
Total revenut,s
Ex penditures:
Debt service -
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (d e ficienc y) or revenues o••er
e xpenditures
Other financing sources (uses}:
Tra nsfers in
Total other financing sources (uses)
C hange in fund balances
Fund balances, July I, 2007
Fund b:1lnnces, June 30, 2008
Page 76
(Concluded)
To tals
Variance·
Pos itive
Budget Actua l (N egat ive)
$ 360,000 $ 328,48 1 $ (31 ,5 19)
7,150 4 337 (2,8 13 )
367,150 33UJ1_ (~1,JJ2)
298,228 298,228
-----:-1=89':':4:.::877 >Ok
487,715
I 0'"1 59..!. 6 889
48(),826 6.889
(12Q,~65) 1 1 ~0 " •• 008) (27,443)
126,300 125,947 (353)
!M947 ----~12~6~.3~0~0 ,~, . (353)
5,735 (22,Q61) (27,796)
28,215 28,215
--
$ , • C:A ~ 419 5,735 $ 0 IJ~ ~~~======~~
STATISTICAL SECTION
The statistical section presents financial statement trends as well as detailed fmancial and operational
information not available elsewhere in the report. The statistical section is intended to enhance the
reader's understanding of the information presented in the financial statements, notes to the financial
statements, and other supplementary information presented in this report. The statistical section is
comprised of the five categories of statistical information presented below.
Fina nci a l Trends
These s chedules contain information on financial trends to help the reader understand how the
Town's financial position and financial activities have changed over time.
Reven u e Capac ity
These schedules contain information to help the reader assess the factors affecting the Town's
abili ty to generate revenue.
Debt Capacity
These schedules present information to help the reader evaluate th e Town's current leve ls of
outstanding debt as well as assess the Town's abi lity to make debt payments and/or issue
additional debt in the fi.tture.
D emog r aphic and Econ omic Inf ormation
These schedules present various demographic and economic indicators to help the reader
understand the environment in which the Town 's financial activities take p lace and to help
make comparisons wi th other citi es.
Operating Info rmation
These schedules contain information about the Tovm 's operations and various resources to
hel p the reader draw conclusions as to how the Town's financial information relates to the
services provided by the Town.
Due to cost considerations for the accumulation of data, the Town has e lected to present less than ten
years of data, or data from less than nine years prior, for certain statistical schedules. This
information will be ac cumulated and reported each year until the complete ten years of data is
presented.
Page 77
GoYernmrntal actMiies:
Invest~ in capital assets, net of rclat~ deb1
Reslric1~
Unrestricted
Total governmental ae1ivi1ies net assetS
GoYernmental oelivities:
Invested in capital assets, ncr of rclnt~ debl
Restricled
Unrestric led
Total government al nctivilies net asse1s
T O WN OF FO UNTA IN HILLS, AR IZONA
NET ASSETS BY COMPONENT
LAST S IX F ISCAL YEARS
(Accrual basis of accounting)
Fiscal Ytar End~ June 30
2008 1007 .wJ§
s 94,939,805 s 92,508,637 s 20,806,507 s
12,799,502 12,210,966 12,446,147
13,230.126 14,276,126 9,053.611
s 120,970.033 s 118,995,729 s 42,306.265 s
2003
s 11,843,575
6,681,170
2,638,149
$ 21,162.894
Source: The source of lhis infonna1ion is lhe Town's financial records.
2005
17,495,539
5,144.127
10,821.304
33,460.970
No1c: The provisions of1he Governmenla l Accounting Standards Board (GASB) Statement No. 34 were ndop1cd in fisca l year
2002·03 1hcrefore only six yea.·s are shown.
Page 79
~
s 11,261.256
6,471.863
7,976,113
s 25,709.232
Ex pen ses
Governmental activities:
General governmelll
Publ ic safety
Highways and streets
Culture and recreation
Conununity deve lopment
Interest on long-term debt
Total governmenta l activities
Total expenses
Program Revenues
Governme ntal activities:
Charges fo r services
General government
Public safety
0Lhe r acrivities
Operating grants and contribu tions
Capital grants and cQntribut ions
Total governmenta l activities
Total program revenues
Net (E~pen se)/Re.ve ou e
TOWN OF FOUNTAIN HILLS, ARIZONA
EXPENSES, PRO GRAM REVENUES, AND NET (EXPEN SE)fRE VEN UE
LAST SIX FISCAL YEARS
(Accrual basis of accounting)
Fiscal Year Ended June 30
2008 2007 2006 2005
3,92 1,588 4,292,5 15 3,875,014 3,766,500
6,532 ,292 5,935,742 5,403 ,620 5,024,686
5,98 1,347 5,225,835 I ,581 ,068 1,28 1,061
3,092 ,661 3,282,160 2,576,406 2,362,661
2,86 1,653 2 ,512 ,170 1,812,469 1,460 ,181
1,132,947 1,163 370 1297,119 1,162 ,796
23,522,488 22,411.792 16,545,696 15,057,885
$ 23,522,488 $ 22,411,792 s 16,545.696 s 15,057,885
830,963 910,978 4 ,029,437 4,43 1,154
746,227 982,659
752,621 626,43 1 103,826 59,550
56,802 2.022.675 1,692.712
835 ,659 989,100 237,307
3,2??,27? 3,509.168 6 ,155,938 6,420,723
s 3,222,272 s 3,509.168 s 6,155,938 s 6,420.723
s (20,300,2 I 6) $ (18,902,624) $ (10,3 89,75 8) s (8,637,162)
Source: The source of this in format ion is the Town's financial rec<lrds .
Noto : The provi sions of the Governmenta l Accounting Standards Board (GASB) Statement No . 34 were adop ted in fisca l
year 2002-03 therefore on ly six years are shown.
Page 80
2004 2003
3,686,452 3,479,333
4 ,918,280 5,494,708
1,419,509 1,3 10,683
2,068,6 13 2,363,897
1,144,964 1,235,985
1.499,575 1,576 842
14 .737,393 15,46 1,448
$ 14 ,737,393 s 15,46 1,448
3,388 ,923 2,738,898
32,209 43 ,487
1,590,787 1,697.900
5,01 1.919 4,480,285
s 5,0 11 ,919 s 4,480,285
s (9.725,474) s (10,981 ,16 3)
Ntt(ExpcnseVRevcnuc s
General Revenues:
Governmental activities:
Taxes:
Sales taxes
Propeny taxes
Franchise taxes
State shared revenue
Investment ineome
Miscellnneous
Total governmental <1Ctivities
Changes in Net Assets $
TOWN OF FOUNTAIN mLLS, ARIZONA
GENERAL REVENUES AND TOTAL CHAN CES IN NET ASSETS
LAST SIX FISCAL YEA RS
(Accrua l basis or accounting)
Fiscal Year Ended June 30
10()8 1007 2006 2005
(20,300,216) s (I 8,902,624) s (10.389,758) s (8.637 ,162)
10,489,591 11,407,714 11,007,924 8,879,798
1,635,542 1,385,953 1,648,947 2,020,800
336,290 324,318 314,359 216,031
8,848,199 8,444,731 5,389,551 4,756,481
780,935 1,094,994 673,351 395,124
183,963 85,418 200,921 120.666
22.274 ,520 22,743,128 19.235,053 16,388,900
1,974,304 s 3,840,504 s 8,845,295 s 7,75 1.738
So urce: The source o f this infommtion is the Town's financial records.
Note : The provi sions of the Governmenta l Accounting Standards Board (GASB) Statement No. 34 were adopted in fiscal year
2002·03 therefore on ly six years nrc shown.
Page 81
100.1 2003
s (9,725,474) s (10,981,163)
7,733,643 5,051,872
2,195,856 1,905,770
126,362 152,542
4,489.844 4,740.758
122,082 1,976,809
195 ,978 79,706
14.863.765 13 .907,457
s 5,138,29 1 s 2,926,294
TOWN OF FOUNTAIN HILLS, All i ZONA
FUND BALANCES -GOVERNMENTAL FUNDS
LAST 10 FISCAL \'EARS
(Modified accrual basis or accounling)
Fiscal Year Ended June 30
2008 2007 2006 ~ 2004
General Fund :
Reserved s 3,053,070 s 2,934,144 s 14,393 s 40,664 s 77,485
Unresel"\ ed 3,526,738 3,666,005 6.515.855 9,041,779 6.293.941
Total General Fund s 6,579,808 s 6,600,149 s 6 ,530,248 s 9,082,443 s 6,371,426
All Other Governmental Funds:
Unreserved, reported in:
S~ial revenue funds 3,876,927 5,305,432 1,951,434 2,176,086 5,969,830
Capital projects funds 10,764,857 9,916,670 9,496,266 2,429,225
Debt service funds 1,585,740 1,386.674 159,530 644,089 530,372
Total all other governme ntal funds $ 16.227,524 $ 16 .608.776 s 11,607.230 s 5,249,400 s 6,500,202
2003 2002 2001 2000 1999
Genera l Fund :
Rcset·vcd $ $ s $ s
U nt'CServcd 4,037,863 4,8 12,370 4,710,o61 6 ,3 14 461 6,331,622
Tom I Genera l Fund $ 4,037.863 s 4,8 12,370 s 4,7 10 ,061 s 6,314,461 s 6,331,622
A II Other Governmental Funds:
Reserved
Unreserved, reported in:
Specia l revenue funds 3,411,738 9,167 22 1,861 221,861
Capital projects funds 414,432 1,571,117
Debt service funds 1,705,230 1,051,311 532.248 609.35 I 241,259
Total all other governmental funds s 5,116,968 s 1,465,743 s 2.112.532 $ 831,212 s 463 ,120
Source: The source of this information is the To"11's financial records.
Page 82
TOWN OF FO UNTAIN HIL LS, ARIZONA
GOVERNME NT AL FU NDS ll EVE NUES
LAST 10 F ISCAL YEARS
(Mo dified accrua l ba sis o fn cco u ntin g)
Fisca l Year Ended J une30
200 8 Ml!lZ 2006 2005 2004
Taxes s 12.457,086 s 13,159,087 s 12,993,876 s 11,151.893 s 9,997,706
lntergovcmmcntal 9,353,260 8,444,731 7,412,226 6.686,500 6,080,631
Fines and forfeitures 287,120 304.214 235,050 249,564 361,339
Licenses and Permits 1,125,957 1,239,318 1,918,107 2,230,046 1.600.934
Charges for services 620.300 898.955 1,689,046 1,834.205 1,038,170
Rents and royalties 296,434 267,350 255,527 222.327 242,704
Special assessments 4,337 4,228 21,147 1,512 3,612
Investment income (loss) 780,935 1,094,994 673,351 395,124 122,082
Miscellaneous 183,963 85,418 233,565 179.657 261 561
Total revenues $ 25.109.392 s 25,498,295 s 25,431.895 s 22,950,828 $ 19.708.739
2003 2002 200 1 2 00 0 1999
Taxes $ 7,114,486 s 7,595 ,748 s 6,088,047 s 4,876,466 s 3,861 ,337
Intergovernmental 6,311 ,45 8 5,895,676 5,281 ,156 4,771 ,792 4,929,062
Fines and forfe itures 195,091 265,605 310,359 293,970 259,484
Licenses and Penn its 1,308,747 1,351,209 2.177,6 14 2,569,472 2,472,2 15
Charges for services 810,41 2 1,067,81 4 431 ,3 16 454,366 624,744
Rents nnd roya lt ies 18 8,74 5 10 7,6 13 35,78 1 27,208 18,140
Special assessments 4,302 4,520 7,958 9,241 14,524
lnves nn cm in co me (loss) 1,976,80 9 726,44 1 ( 1,063,339) 74 3,259 62 0,63 9
Mi sce llaneo us 275,3 43 1,7 83,85 1 II ,357 3 1,653 25,65 7
Totnl revenues $ 18,185,393 $ 18 ,798 ,477 $ 13,280,249 $ 13,777 ,427 $ 12,825,802
Source: Tile source of this infonna tion is the Town's fi nancial records.
Page 83
Expenditures:
Current-
General government
Public safct)
Highways and st~
Culture and recreation
Community development
Capital outlay
Debt service -
Principal retiremen t
Interest on long-temt debt
Issuance costs
Advance refunding escrow
Total expo ndllures
Expenditures for CDI>ilnll zed assets
Debt serv ice as n percentage of
noncnpitnl expenditures
Page 84
TOWN 01' FOUNTAIN HILLS, ARI ZONA
GOVERNM E NTAL FUNDS EXPENDITURES AND D EBT SERVICE RATIO
LAST 10 FI SCAL YEARS
(Modi food accrual basis o f aecounling)
Fis<lll Year Ended June 30
~ 200 7 2006
s 3.548,295 s 4,024,551 s 4,459,183 s
6.321.669 5,689,020 5,208,770
2.214.557 2,028,397 2,121.986
2,257.007 2,131,374 3,607.750
2.751,740 2,462,643 1.812.469
5,239,169 2,002,8 87
2.153,228 1,968,228 1,968.22 8
1,025,320 1.058,665 1,192,414
232.762
300,000
s 25,510.985 s 21.365.765 s 20.903.562 s
s 5,17 1,511 s 2,684,134 s 3,122,912 s
16% 16% 2 1%
~ 200~
9,547.409 s 3.614,458
4,754,523 4,616.161
1,682.563 1,402,502
3.004,216 1.597,1 50
1.460.181 1.144.964
10 1,951
1.308,22 8 1,423,22 8
1,164.561 1,499,575
229,990
23.15 1,671 s 15,399.989
7,450,885 s 39 1.949
17% 19%
(Continued)
Exp<'ndilurt$:
c~nt•
General go•ernment
Public safely
Highways and streets
Culture and rcc:=tion
Communoty development
Capita l outlay
Debt service -
Principal rctiremtnt
Interest on long-tenn debt
Issuance costs
Advance refunding eserow
Tow I expenditures
Expenditures for cap itali zed assets
Debt service as u percentage of
no ncnpi 1ol expenditures
TOWN OF FOUNTAI N HILLS, ARIWNA
GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVI CE RATIO
LAST 10 FISCAL YEARS
(Modified accrual basis of accounting)
2003 £2Q! l.QQ!
s 3.31 8.574 s 3,859,633 s 3.646.500
5,174,492 5,084,532 3.354.037
I, 198,080 1,877,790 2.212,432
1,815,416 3.069,695 3.866.245
1,215,387 1,064,913 1.175,649
79.427 14.770,507 5,261,585
1,393,228 1.229,215 620,408
1,576,842 1,673,901 1.23 1.194
s 15.771.446 s 32.630,186 s 2 1.368.050
s 3 1.857 NIA NIA
19% 16% 12%
Source: 1l1e source of this information is ll1e Town's financia l reoords .
Page 85
~ 1999
$ 2.528.953 s 2.631,245
3.059,020 2.205,600
2.468.498 1.984.879
3,359.509 2,334,901
1,276,951 955,451
1,787,469 557,374
339,013 223.024
585,00 1 572,064
$ l 5.404.4 14 $ 11,464,538
NIA NIA
7% 7%
(Concluded)
TOWN OF FOUNTA IN UI LLS, AR IZO NA
OTII ER FI NANC ING SOU RCES AND USES AND NET CHANCES IN FUN D BALA NCES-GOVE RNM ENTAL FUNDS
LAST 10 FISCAL YEARS
(Modified acuual basis of accounting)
fisca l Year Ended June 30
2008 1.2QZ 2006 ~ 2004
Ex«Ss (deO<lrncy) of
revenues O\t.r txptndilurtS s (401.593) s 4.132530 s 4.528.333 s (200,843) s 4.308.750
Other nnancinc SO Ur<<S (us<S):
Transfers in 2.756,988 4383.069 10.146.663 4,805,635 1,630.907
Transfers out (2.756.988) (4.383,069) (I 0.146.663) (4.805.635) ( 1.630. 907)
Issuance or refunding debt 4.555.000 12.555.000
lssU311ce oflong-tenn debt 3.783.896
Payment to refund tS<:ro" agent !4.33 8.781) !14.6n.838!
Total 01her financing sourctS (uses) 216.219 1.661.058
Changtsln fund balanc<S s !401.593) s 4,132,S30 s 4,744 ,552 s 1.460.215 s 4.308.750
2003 2002 1ll!U 1!!JlQ .!.222
Excess (lleOcien cy) of
rtvtnuts over uptndltures s 2,413,947 s ( 13,831, 709) s (8,087 ,801) s ( 1,626.987) s 1,361,264
Olher finnnclng sourttS (uses):
Transfers in 5,98 1.544 1,585 ,674 1,833,192 1,3 86,793 1,170.732
Tmnsfc rs ou t (5.98 1.544) (1,585,674) (1,833.192) (1.3 86,793) (1,170,732)
Issuance of long-term debt 13,750,000 4,64 1,980 5.100.000 1,102 ,629
Paymen t to refund escrow agent {1,010.489)
Toto! other financin g sources (uses) 13,750.000 4.64 1.980 5.100.000 92.140
C han ges in fund bnlantts $ 2.413.947 s {8 1.709) s (3.445,82 1) $ 3.473,013 $ 1.453.404
So urce : The source of this information is the Town's financial records.
Page86
TOWN OF FOUNTA IN HILLS, AlliZONA
TAXABLE SALES BY CATEGOIW
LAST 10 FISCAL YEARS
(Modified accrual basis of account in g)
Fiscal Year Ended June 30
2008 2007 M!M ~ 2004
ConSlruction s 2,062.028 s 2,694,700 s 3,362,079 s 1.837,317 s 1,482,981
Transponation and utililic:s 1,422.158 1,330,052 1,240,120 1.124,677 916.498
Wholesale/Retail 3.912,512 4,144,263 3,796,192 3,536,045 3,212,062
Restaurants and Bars 582,226 537,596 547 ,276 524,368 419,107
Rtal Estate 982,198 792,358 626,364 604,356 341,951
S..rviec:s 327,411 280,290 263.239 185,868 423,433
M iseellaneous 1,182,349 1,296.171 1,030.966 933,366 706,816
Total s 10.470.882 s 11,075,430 s 10,866,236 s 8.745 ,997 s 7,502,848
2003 2002 lQru. 2000 1999
Construction s 1,203,706 s 1,325,749 $ 1,915,206 s 1,852,068 s 1,526,063
Transponnt ion and uti lilies 590,446 523,237 453,217 350,634 303,507
Who lesale/Retai l 1,930,175 1,477,424 1,405 ,560 1,087,8 19 793 ,367
Restaurants nnd Bars 276,664 2 19,921 187,000 148,668 12 8,330
Real Estate 205,849 192,339 245,064 99,155 133,666
Services 455,324 370,806 398,157 357,253 322,428
Miscella neous 188,654 157,818 195,3 13 136 814 102,153
Total $ 4,850,818 s 4,267,294 $ 4,799,517 s 4,032,411 $ 3,309,5 14
Source: The source of th is informa tion is the Town's financial records.
Page 87
Page 88
TOWN OF FOUNTA IN HILLS, ARl ZO NA
DIRECT AND OVERLAPI'ING SAL ES TAX RAT ES
LAST 10 FI SCAL YEARS
OveriB(!J2ing Rates
Fiscal
Year T own
E nded of Marico J>• Arizona
June 30 Fo untain Hi ll s County State
2008 2 .60 0.70 5.60
2007 2.60 0.70 5.60
2006 2.60 0.70 5.60
2005 2.60 0.70 5.60
2004 2.60 0.70 5.60
2003 1.60 0.70 5.60
2002 1.60 0 .70 5.60
2001 1.60 0.70 5.60
2000 1.20 0.70 5.00
1999 1.20 0 .70 5 .00
So urce: The source of th is informa tion is the Ari zona
Depart ment o f Revenue.
l'age 89
Fiscal
Year
ended
June 30
2008
2007
2006
2005
2ooq
2003
2002
200 1
2000
1999
TOWN OF FOUNTA IN liiLLS, ARIZONA
OUTSTANDING DEBT BY TYPE
L;\ST 10 FI SCAL YEARS
Govemmtntal Activities Total Outstanding Debt
Less :
Genera l Amounts Perctntage of
Obllgalioo and Restricted for Estimated
Other Bonds Prlncipa_l Total Actual Value -----------· ----
s 24,932,3 18 $ 2,163,146 $22,769,172 0.39 % $
26.9 10,467 1,978,14 9 24,932,318 0.43
22,365,000 1,968,228 20,396,772 0.60
24.190,000 1.308.228 22.8 8 1.772 0.72
25.335.000 1.423.228 23.91 1.772 0.8 1
24,0 15.000 1.393.22 8 22.62 1,772 0.94
25,265,000 1.229.2 15 24.035.785 1.12
26,465,000 620,408 25,844 ,592 1.37
13,160,000 339,0 13 12,820,987 0.8 1
8.775.000 223.024 8,55 I ,976 0.65
Source: The so urce of this information is the Town's financial reco rds.
Per
Capita
892
1,018
833
986
1,06 1
1.017
1,095
1.209
634
460
TOWN OF FOUNTAIN fULLS., ARI ZONA
DIRECT AND OVERLAPPING GOVE RN MENTAL ACIWITI ES DEBT
J UNE 30. 2008
Govcrnmcnud Unil
Maricopa Co UJU)'
Mari copa Co unt')' Co mmunhy College Disulct
Fountain Hills Un ified Schoo l District
E.aglc Mountain Com mun ity Fac-i liti es Distric t
Subi0!$1, Over lapp ing De bt
s
Drbt
Outs tandinJ!,
185.960.043
609.320,000
16.085,000
4.2 55 ,000
Es timat ed
Perccnlltg·e
A1,plicoblc
0.001% $
0.001%
97.03%
100.00%
Estimated
Amount
Ovtrl:.ipping
D<bt
1,860
6,093
15.607 ,276
4.255.000
19,870,229
DirecL:
Town or Founmin Hills, Arizona 18.514.172
Total Direct and Overl apping L>ebt S 38.384,40 I
!'age 90
Source: The source of this infomtal ion is the Town's records and the State nnd County AbSlract o (ahe Asses.4lmt nl
Arizona Department of Reve nue ~tnd t he ap plicable governmental unit
Debt limit equa l to 26% of nssessed valuation
Tota l net debt app li cab le to limit
Lega l debt margin
Tota l net debt app li cab le to the I irnit
as a percentage of debt lim it
Debt limit
Total net debt applicable to limit
Lega l debt margin
Total net debt applicable to the limit
as a pereentl1ge of debt limit
TOWN OF FOUNTA IN HILLS, ARIZONA
LEGAL DEBT MARCIN INFORMATION
LAST 10 FISCAL YEARS
Legal Debt Margin Calculation for Fiscal Year 2008:
Secondary assessed valuation S 684,742,347
Debt limit (200/o and 6'~ of assessed value) 178,033.010
Debt applicable to limit 8,620,000
Legal debt margin S 169,413.010
Fiscal Year Endtd June 30
2008 200 1 2006 2005 2004
S 17 8,033,0 I 0 s 158,79 1,912 $ 97,547,627 s 90,843,567 $ 84,080,160
8.620.000 9,600.000 9.600.000 10,225,000 11,740,000
s 169,413,010 s 149,19 1,912 $ 87,947,627 s 80,6 18,567 $ 72,340.160
5% 6% 10% II% 14%
2003 2002 2001 WJl 1999
s 70,356,74 5 s 62 ,065,780 s 55,228,024 s 45.437,792 s 38.205,370
12,585 .000 6.005,000 6,155,000 6,330,000 2,780,000
s 57,771,745 s 56,060,780 s 49,073,024 s 39,107,792 s 35,425,370
18~'. 10% I"· 14°,. 7"/o
Source: The source of this mformation is the To,.n's financial records.
Page91
Yen r ~u l ntion
2007 25 .540
2006 24.<192
2005 23,2 17
2004 22.54 1
2003 22.243
2002 2 1.954
2001 2 1,383
2000 20,235
1999 18.595
TOWN OF FO UNTA I N AlLLS , ARI ZONA
DEMOGRAPHI C AND ECONOMlC STATISTICS
LA ST 10 CA LENDAR YEARS
Personal Per Copi!JI Unemployme nt
Income Incom e Rllt e
N/A N/A 1.6 % s 132,423,154 s 35,046 1.8
125 .718.070 32,414 2.0
115.604,165 3 1,133 2.1
106.385.325 26,609 2.6
I 00,805,099 28.900 2.7
97.138.599 28.717 2.0
92 .975,771 28,363 1.6
83,860,233 26.385 1.6
So ur ces: 11te source of the "Perso n•llncomc" and "PcrCapiUt" info rmation is the Burea u of Economic Analysis.
11u: source or the "Popu lation'' nnd ·•unemployment Rate" informati on is State of Ari1..on~
Department of Eco nomi c Secu rity.
Note: N/A indientcs lhnl lhe information is not availab le.
Pagc92
TOWN OF FOUNT A IN HILLS, ARIZONA
PRI NCI PAL EMPLOYERS
CURRENT FISCAL YEAR AND SEVEN YEARS AG O
2008
Pe rcentage
of Total
Employer Employees Employment
Fountain Hills Unified School Districi No. 98 28S 22.2 %
Monk Construction 190
Target 130
MCO Properties, Inc. 12S
Safcway Food Stores 11 0
Town of Founta in Hills 87
Fry's 80
Basha's 70
Sun Ridge Canyon Golf Course 70
Eagle Mountain Golf Course 70
Go lf International 6S
Totlll 1,282
Totlll employment 1,2 82
Source: The source ofthis infom1ation is the Town's records.
• lnfonnation prior to 2002 is not availab le.
Page 93
14.8
10 .1
9.8
8.6
6.8
6.2
5.5
5.5
S.5
5.1
100.00 %
Employees
250
ISO
ss
9S
l iS
70
70
40
50
925
92S
2002*
l'erccntage
ofToial
Employmen t
27.0%
16.2
9.2
10.3
12.4
7.6
7.6
4.3
5.4
100.00 %
TOWN O F FOUNTAIN HILLS, ARIZONA
FULL-TIME-EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCT ION/PROGRAM
LAST SEVEN F ISCAL YEARS"
Full-rime Eguivalen! EmJ!IOl'ees as or June 30
2008 2001 2006 2005
General Gov<rnmenl
Municipal Coun 5 5 6 5
City Adminislr.ltion 13 12 13 II
Plannmg & Zoning 10 10 10 8
Toral general government 28 27 29 24
Public Sa fet y
Building Safety 8 8 9 9
Law Enforcement
Total public safety 8 8 9 9
Public Work.s
Engineering 12 12 12 12
StreetS 10 10 II II
Tota l pub lic works 22 22 23 23
Pnrk.s ond Recreation 20 20 17 15
Com munit y Development II II 7 7
31 31 24 22
Total 89 88 85 78
P3ge 94
2004
5
10
9
24
7
I
8
II
13
24
13
7
20
76
(Continued)
TOWN OF FOUNTAIN HILLS, ARIZONA
FULL-TLME·EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCfiON/PROGRAM
LAST SEVEN FISCAL YEARS•
2003
Ctneral Governmenl
Municipal Coun
Ci1y Adminismuion
Planning & Zoning
Total geneml govemmen1
Public Sa fel y
Building Safe!)'
law Enforcemen1
To1al public safe!)'
Public Works
Engineering
Streets
Total public works
Parks nnd Recrenli o n
Communi!)' Dcvelopmenl
Total suppon and adminislralion
Tolai
Source: The sou rce oflhis information is the Town's Annual Budget
• lnfonnation prior to 2002 is not avai lab le.
Page95
2002
6 6
15 18
8 6
29 30
8 9
20 26
28 35
13 13
14 15
27 28
16 18
7 5
23 23
107 116
(Concluded)
.El!!1sJWI
Cenfrtl go"crnm ecnt
Bu1 ld1n& penn1tS •ssued 716
Bu 1l d1n& 1rupeet1ons conducted 5,692
l)olict (COIIlriiC ltd)
1:111)'S1Cial nn ests 524
Traffic vlolat1ons l,S04
Flrc (co nl rllrtcd)
lnspeca lons N/A
l',u bll r: 'I'I'OI'kJ
Pot~lesrcpairtd N/A
Parb and Rt'ftC':ado n
Pll1. ICfUg< 121
Commumty ccntm I
Sourct: The SOW"ce oftbl$ mrormataon IS the Town's RCOrds
'ore: N/A indteates tb.allht mtonna.on ts not swallabk
159
7,975
993
2,3 15
2,570
N/A
121
I
TOWN O F FOUNTA IN IIII.I.S. ARI ZONA
OPERAT ING INDICATORS BY fliNCn ON
lAST I 0 F"ISCA L YEARS
468 430 228
9,377 8,446 6,985
N/A 644 601
NIA 2,432 3,186
1,8 15 N/A N/A
N/A NIA N/A
121 121 121
I I
168 260 JS I 514 929
6,389 8.49 1 N/A N/A N/A
60 1 503 93 1 890 895
3,186 3,186 4,767 7.907 5,641
NIA N/A N/A NIA NIA
NIA N/A N/A NIA NIA
121 121 121 121 121
I I I I I
Funt:lion
r ·ublit Sartt)
fIR $lll!l0n$ 3 3
Otbrr public •·otks
Strecu(maks) 179 179
Str«<hghU .14 .14
T1111lie ••snols 12 12
Parb and Rcnutioa
A<r<ogc 121 121
I'IO)'IJOOiflds ] l
Bas<baiVsoftb.lll dal111100<1s 6 6
Soo=lroocball fidds 3 l
Commumry c:tnters I 1
SouJ"tt: The SOU/tc: of thiS mform1uon •-. the Jown·s fae1hhes records.
TOW N O F FOUNTA IN IU ~LS, ARIZONA
CAPITAL ASSETS STATISTI CS BY FUNCTION
LAST I 0 F1SCA L YEARS
fiK•l \'car Ended J unt JO
3 3 l l
179 179 179 179
34 N/A N!A NIA
12 II II 10
121 121 121 121
l 3 3 J
6 6 6 6
3 • • 4
I I 1 I
3 N!A N/A N /A
179 179 179 179
N!A NIA NIA N /A
10 10 6 6
121 121 121 121
J 2 2 2
6 6 6 6
4 • 4 4
1 1 I I