HomeMy WebLinkAboutFY00 CAFRTown of Fountain Hills, Arizona
Fiscal Year 1999 - 2000
Comprehensive Annual
Financial Report
��� ,� ,�.
of the
TOWN OF FOUNTAIN HILLS, ARIZONA
for the
FISCAL YEAR ENDED JUNE 30, 2000
Prepared by the Finance Department
Town Manager
Paul L. Nordin
Town Accountant
Julie A. Ghetti
TOWN OF FOUNTAIN HILLS, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUKE 305 2000
Contents
INTRODUCTORY SECTION
Letter of Transmittal
GFOA Certificate of Achievement
Organizational Chart
List of Principal Officials
FINANCIAL SECTION
Independent Auditor's Report
General -Purpose Financial Statements
Combined Balance Sheet -All Fund Types and Account Groups 4
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Governmental Fund Types
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - Budget and Actual All Governmental Fund Types
Notes to Financial Statements
Required Supplementary Information:
Arizona Public Safety Personnel Retirement System
Analysis of Funding Progress
Combining, Individual Fund and Account Group
Statements and Schedules
GENERAL FUND:
Statement of Revenues, Expenditures and
Changes in Fund Balance -Budget and Actual
SPECIAL REVENUE FUNDS:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
11
30
34
36
37
OR THE FISCAL YEAR ENDED JUNE 302000
Contents (Cont'd) Page
Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual 38
Cottonwoods Maintenance District Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual 39
Grants Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual 40
I� t
Combining Balance Sheet
42
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 43
HURF Debt Service Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual 44
GO Debt Service Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual 45
Eagle Mountain Debt Service Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual 46
Cottonwoods Special Assessment Fund:
CAPITAL PROJECTS FUNDS:
Combining Balance Sheet
Combining Statement of Revenues, Expendihxres
and Changes in Fund Balance
50
51
TOWN OF FOUNTAIN HILLS, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUKE 30, 2000
Contents (Concl'd) Page
Heritage Grant Fund:
Statement of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual 52
Capital Projects Fund:
Statement of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual 53
GENERAL FIXED ASSETS ACCOUNT GROUP:
Comparative Schedules of General
Fixed Assets by Source 56
Schedule of General Fixed Assets by
Function and Activity 57
Schedule of Changes in General Fixed Assets
by Function and Activity 58
STATISTICAL SECTION
General Govemment Expenditures by Function 60
General Government Revenues by Source 61
General Governmental Tax Revenues By Source 62
Primary and Secondary Taxable Property Assessed Valuation 63
Primary and Secondary Property Tax Rates - All Overlapping Governments 64
Assessed Valuation of Major Taxpayers 65
Computation of Legal Debt Margin 66
Ratio of Net General Bonded Debt to Assessed Value
and Net Bonded Debt Per Capita 67
Ratio of Annual Debt Service Expenditures to Total General Expenditures 68
Direct and Overlapping General Obligation Bonded Debt 69
Assessed and Estimated Actual Value of Property 70
Property Tax Levies and Collections 71
Property Tax Rates for all Overlapping Governments 72
Maricopa County Economic Indicators 73
Demographic and Miscellaneous Statistics 74
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Town of FOUNTAIN HILLS
October 13, 2000
To the Honorable Mayor and Council of the
Town of Fountain Hills, Arizona
The Comprehensive Annual Financial Report (CAFR) of the Town of Fountain Hills for the year
ended June 30, 2000, is hereby submitted. Local ordinances and state statutes require that the
Town issue an annual report on its financial position and activity and that this report be audited
by an independent firm of certified public accountants. Responsibility for the accuracy of the
data and the completeness and fairness of the presentation, including all disclosures, rests with
management. Staff believes that the data is accurate in all material respects and is reported in a
manner that presents fairly the financial position and operational results of the Town of Fountain
Hills' various funds and account groups. All disclosures necessary for the reader to understand
the Town's activities have been included.
The Comprehensive Annual Financial Report is presented in three sections: Introductory,
Financial and Statistical. The Introductory Section includes the letter of transmittal, an
organizational chart and a list of the Town of Fountain Hills' elected officials and department
heads. The Financial Section includes the general-purpose financial statements, the combining,
individual fund and account group financial statements and schedules, as well as the independent
auditor's report on these financial statements and schedules. The Statistical Section includes
selected financial and demographic information, generally presented on a multi -year basis.
The financial reporting entity (the Town) includes all the funds and account groups of the
primary govemment (i.e,, the Town of Fountain Hills as legally defined) as well as all of its
component units. The component units consist of legally separate entities for which the primary
government is financially accountable. The Town provides or administers a full range of
services including public safety (police, animal control, building inspection); community
development (code enforcement, planning and engineering); the construction and maintenance of
streets and infrastructure, municipal court, recreational activities and cultural events.
Blended component units, although legally
separate
entities, are,
in substance, part of the
primary govenunent's operations and are
included
as part of
the primary government.
Accordingly, the Eagle Mountain Community
Facilities
District and
Cottonwoods Improvement
and Maintenance District and are included in
the financial reports of the Town. During fiscal
year 1999-2000 the Fountain Hills Municipal
Property
Corporation
was formed to finance the
construction of a Community Center,
16836 East Palisades Boulevard,
Building A - P.O.
Box 17958 -Fountain Hills, Arizona
85269 - (480) 837-2003 -FAX:
(480) 837-3145
The Town does not have a property tax for operating purposes. Operations are paid for from
sales tax, user fees and charges, licenses and permits and other similar sources. The Town's
property tax of $0.26 per $100 of assessed secondary valuation is used solely for the retirement
of debt.
GOVERNMENTAL STRUCTURE, LOCAL ECONOMIC
CONDITION AND OUTLOOK
General Information
The Town of Fountain Hills is a planned, family -oriented community established in 1970 by
McCulloch Properties (now MCO Properties, hic.). Prior to 1970 the area was a cattle ranch and
was part of one of the largest land and cattle holdings in Arizona. It was purchased by Robert
McCulloch in the 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 tallest man-made fountains, a
focal point that attracts thousands of visitors each year. Located on 11,340 acres of land, and
bordering northeast Scottsdale, Fountain Hills is surrounded by the 3,500-foot McDowell
Mountains on the west, the Fort McDowell Indian 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 the fountain, 3,000 feet on Golden Eagle Boulevard, and is 500 feet above Phoenix.
The population of Fountain Hills is estimated to be 18,595 in 2000. The 1995 special census
revealed a year round population of 14,146. The 2000 estimate represents a 45.4% increase in
population from 1995 and a 643% increase from the 1980 census (2,771).
Governmental Structure
The 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 Council -
Manager form of government. Policy making and legislative authority are vested in the Town
Council, which consists of a Mayor and six Councilmembers. Councilmembers are elected at
large for staggered four-year terms. The Mayor, who also sits on the Town Council, is directly
elected bi-annually by the voters and the Vice -Mayor is selected by the Council every eight
months on a rotating basis. The Town Council is responsible, 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 six department
managers and approximately 106 regular full time employees. The Magistrate, Town Attorney
and Town Prosecutor are under the direction of the Town Council.
ii
The towns two master -planned communities, Eagle Mountain and Sunridge Canyon, are
nearing completion in home construction. Nearly all of the subdivision approvals in these two
communities have been approved. Eagle Mountain will construct approximately 600 single-
family homes and 80 condominiums. The Sunridge Canyon development will ultimately include
approximately 720 single-family houses.
In April of 1998 the Town approved the Firerock Country Club development. The developer,
MCO Properties, plans to develop up to 390 single-family homes and 288 condominiums in this
gated community. The development has a private country club that includes an 18-hole golf
course. Several of the subdivisions within the Firerock Country Club have been platted and lot
sales have begun. The golf course and the clubhouse are now open.
The Town recently approved subdivisions for the development of the remaining undeveloped
land east and north of Fountain Park. Diamante Del Lago, a 139 lot single-family development
and Bella Lago, a 68-unit condominium development were approved. Town voters also
approved a bond issue that was used to acquire 9.25 acres of land that comprises most of the
prime viewshed ridgeline in the area.
As of July 1, 2000 there were 6,884 developed single-family dwelling units within the Town and
3,214 multi -family dwelling units. As of today, within the entire Town, there are 2,214
undeveloped single-family zoned platted lots.
The remainder of the Town's commercial core will soon be subdivided. Anchoring the
commercial development in this area is the Town future Community Center and
Library/Museum, which is currently under construction. The Town expects that construction
will soon commence on a new Hilton Hotel, more retail, office and multi -family developments.
Initial entitlements have been approved for a third shopping center with a Target and grocery
store along Shea Boulevard on land that has recently been rezoned for commercial uses.
A 20f-acre parcel of land near the northeast comer of the Shea/Palisades Boulevard intersection
received zoning approvals fora 200-room hotel with a restaurant and conference facility. This
facility should begin construction early in 2001.
Fountain Hills has a business park that is partially developed. The Business Park contains
individual construction equipment storage and maintenance yards, construction company
operation yards, a utility company storage and maintenance yard, a distribution business and
several small manufacturing operations.
ElL
MAJOR INITIATIVES AND ACCOMPLISHMENTS
Community Centerlbbrary Museum:
Progress continues on the Community Center and Library/Museum complex currently under
construction on the 13-acre town -owned site located in the downtown area of Fountain Hills.
Following a successful $3.7 million bond election in May 1999 for the 21,000 square foot
Library/Museum, a citizen advisory committee worked with the Town staff and architect to
design the facility. The architect also completed the re -design of the Community Center lobby to
accommodate the revised site plan resulting from the temporary removal of the performing arts
facility and addition of the Library/Museum to the project. A Mayor -sponsored visioning
committee planned and designed the courtyard area created by the re -siting of the Community
Center, Library/Museum and future Performing Arts Center. They also designed the adjacent
1,470400t long, 120400t wide linear mall that will provide connectivity between the community
center plaza and Fountain Park a block and a half to the east. The courtyard feature, budgeted at
$400,000, will provide a sheltered outdoor venue for art shows, small concerts and other
community/commercial activities. Both projects successfully bid in February 2000. The 31,000
square foot Community Center, consisting of two arts and crafts classrooms, two seminar rooms,
two classrooms, a kinder -care room, a conference room, a game room, lounge and lobby areas,
an 8,000 square foot banquet room subdividable into four activity/event rooms, a catering
kitchen, office and support facilities, will be financed through a Municipal Property Corporation
with bonds retired using local sales tax revenues. The 21,000 square foot Library/Museum,
consisting of separate adult and children reading areas and book stacks, meeting rooms,
computer resource center and 5,000 square feet of exhibit space for the museum, will be paid for
by the voter -approved general obligation bonds. The groundbreaking ceremony took place June
2, 2000 and the facilities are expected to open in April 2001,
The final phase of construction for Golden Eagle Park was completed by the end of calendar year
1998. Golden Eagle Park is a 25 acre active recreation facility located adjacent to the Fountain
Hills Middle/High School. The School District and the Parks and Recreation Department have
developed a partnership which supports their needs as well as the community activities at the
Park.
Golden Eagle Park includes four multi -purpose ballfields with covered dugouts, a batting cage,
seating for 550 spectators, four lighted tennis courts with a shaded waiting area, two lighted
basketball courts with spectator seating, two lighted sand volleyball courts with automated
watering and shower tower, a tot lot and children's playground area. The park also includes a
2,500 square foot control building with restrooms, one large ramada (Saguaro) with seating for
96, two smaller ramadas (Ocotillo and Cottonwood), all available for parties and group activities.
Other amenities include a horseshoe pit, six chilled drinking fountains, a shaded seat wall at the
children's playground, two pedestrian foot bridges, three parking lots with entry gates with a
total of 223 parking spaces.
The Town of Fountain Hills received $1,718,800 in grants from the Arizona Heritage Fund to
construct Golden Eagle Park. Recognition for this and the development of this multi purpose
park complex was presented in September, 1999 with the Outstanding Facility Award.
1V
On May 1, 1997, the Town to ownership of Fountain Park. Fountain Park is a 59-acre passive
recreation area which includes: 30-acres of turf, a 29-acre lake with a "world famous fountain"
that sends a jet stream 560 feet into the air. The park also includes a pump station, a dam, an 18-
hole championship disc golf course, and a children's playground. On July 31, 2000 Chaparral
Construction Company was given notice to proceed with Phase I improvements to the park. The
project includes a new 970 square foot restroom/control building, two 640 square foot picnic
ramadas with site furnishings and connecting sidewalks. Phase I improvements are scheduled to
be completed by February 2001.
Four Peaks Neighborhood Park is a 15-acre active recreation area adjacent to the elementary
school. The park includes a 300' x 150' soccer field, two multi -purpose ball fields with seating
for spectators, two lighted tennis courts, two lighted basketball courts, a children's playground, a
750 square foot restroom/control building, a group ramada with barbecue grills. The park also
includes 42 parking spaces, two chilled drinking fountains, a pedestrian foot bridge, and a
storage yard. This park also supports both the Fountain Hills School District and community
activities. Phase II improvements for the park is in the conceptual stages and has not been
finalized.
Desert Vista Neighborhood Park is a 12-acre site that the Town acquired on May 21, 1998 from
the master developer. The Town has fenced 3.5 acres of this site for an off -lease recreational
facility with the balance of the site available for open play. Future park improvements are in the
planning stages.
Town Management is responsible far establishing and maintaining an internal control structure
designed to ensure that the assets of the government are protected from loss, theft, or misuse and
to ensure that adequate accounting data are compiled to allow for the preparation of financial
statements in conformity with generally accepted accounting principles. The internal control
structure is designed to provide reasonable, but not absolute, assurance that these objectives are
met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not
exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires
estimates and judgments by management.
In addition, the Town of Fountain Hills maintains extensive budgetary controls. The objective of
these controls is to ensure compliance with legal provisions embodied in the annual appropriated
budget approved by the government's council. Activities of the general fund, special revenue
funds, debt service funds and capital projects funds are included in the annual budget. The level
of budgetary control (i.e., the level at which expenditures cannot legally exceed the appropriated
amount) is the departmental level for the General Fund and in total by fund for the other funds.
As demonstrated by the statements and schedules included in the Financial Section of this report,
the Town of Fountain Hills continues to meet its responsibility for sound financial management.
v
General Government Functions The following schedule presents a summary of General Fund,
Special Revenue Funds, Debt Service Funds and Capital Projects Funds revenues for the fiscal
year ended June 30, 2000 and the amount of increases and decreases in relation to the prior year.
Increase/
Percent
Percent of
(Decrease)
Increase/
Revenues
Amount
Total
from 1998-99(Decrease)
Taxes
$ 4,876,466
35.40%
$ 110153129
26.29%
Intergovernmental
4,7715792
34.63
(1573270)
(3.19)
Fines and forfeitures
293,970
2.13
34,486
13.29
Licenses and permits
2,56%472
18.65
973257
3.94
Charges for services
4549366
3.30
(170,378)
(27,27)
Rents and royalties
27,208
0.20
9,068
49.99
Contributions and donations
10,598
0.08
105598
100.00
Special Assessments
%241
0.07
(5,283)
(36,38)
Interest
743,259
5.39
122,620
19.76
Other
21.055
0.15
(4,602)
17.94
Total
13.777.427
100,00%
1625
The General Government revenues total $13,777,427 for fiscal year 1999-00, which represents
an overall increase of $951,625 or 7.42% from 1998-99. The $1,015,129 increase in Taxes is
primarily due to an increase in local sales tax revenues ($693,362) as well as an increase in
secondary property tax revenue ($308,347). Local sales tax revenues are generated primarily
from construction and retail trade (72% of the total). Construction tax revenues increased 21%
from fiscal year 1998-99 and retail trade revenues increased 38%. The property tax increase was
the result of a $1,400,000 voter approved bond issue that was used to purchase 9.25 acres of
open space, preserving the "postcard" view behind the fountain.
Major items included in Intergovernmental (state -shared) revenue include state sales tax,
highway user revenue, state income tax, vehicle license tax and grants. There was an overall 8%
increase in state shared distributions; however, the Town received $526,555 less in grant
revenue, primarily from State Heritage Grant funding for Parks. The Town continues to
participate in the federal COPS Universal Hiring program for community policing. The
increased enforcement and continued growth of the community contributes to the increase in
Fines and Forfeitures of $34,426, which consists primarily of traffic citations.
The Town of Fountain Hills continues to experience growth in the area of new home
construction, which is reflected in the Building Permit revenue ($2,152,562), a 12.2% increase
over the prior year. There was, however, a decrease in Encroachment and Improvement Plan
Review fees of $152,758.
vi
Revenue received under the Charges for Services category includes Developer Contributions, In
Lieu Payments and Parks & Recreation User Fees. The decrease in this category reflects the
scheduled reduction in contributions from the developer, MCO Properties, as stipulated in the
agreement with the Town.
The Town continues to maintain a large reserve fund, primarily invested with Lite Arizona State
Local Government Investment Pool. The cash reserves generated total interest earnings of
$743,259 in fiscal year 1999-2000.
The Other category of revenue is used for miscellaneous and not -otherwise -categorized sources
of revenue.
The following schedule presents a summary of General Fund, Special Revenue Funds, Debt
Service Funds and Capital Projects Funds expenditures for the fiscal year ended June 30, 2000
and the increases and decreases in relation to prior year amounts.
Increase/
Percent
Percent of
(Decrease)
Increase/
Expenditures
Amount
Total
from 1998-99
Decrease
Current
General government
$ 2,528,953
16.42%
$ (102,292)
(3.89%)
Public Safety
3,0591020
19.86
853,420
38.69
Highways and streets
294%498
16.02
483,619
24.36
Culture and Recreation
353595509
21.81
1,024,608
43.88
Community development
L276,951
8.29
321,500
33.65
Capital outlay
1,7875469
11.60
1,230,095
220.69
Debt service
Principal retirement
33%013
2.20
115,989
52.01
Interest and fiscal charges
5853001
3.80
67,305
13.00
Bond issuance costs
-0-
0.00%
(54368)
0.00
Total
15.404.414
100,00%
$ 3.939.876
34.370
Expenditures for general operations totaled $15,404,414, which was $3,939,876 more than the
prior year. The most significant increase is in the Capital Outlay and Culture and Recreation
category, which reflects the expenditure for the new Town Community Center and
Library/Museum construction projects in the amount of $916,832. Additionally, during fiscal
year 1999-2000 the Town of Fountain Hills purchased 9.25 acres of land from the developer to
preserve a "postcard" view behind the fountain at a cost of $1,363,500,
vii
The General Government function consists of the Administration, Magistrate Court and Town
Council Departments. Public Safety includes Building Safety and the Town Marshal
Department. The Marshal Department is responsible for all local law enforcement activities,
which includes the annual contract with Maricopa County Sheriff's Office for outside police
services. The 1999-2000 expenditure for this contract exceeded the prior year by $577,2330
The Town also receives federal funding through the U.S. Department of Justice, Office of
Community Oriented Policing Services, which stipulates hiring and retaining new police
officers.
Expenditures increased by $483,619 during 1999-00 in the Highways and Streets department as a
result of the increased major road maintenance projects during the year.
Culture and Recreation includes the new Community Center/Library/Museum under
construction, four parks (121 acres), 25 acres of landscaped medians, and 1,100 acres of open
space. In June of 2000 construction began on the Community Center/Library/Museum. The
General Fund had previously allocated $1,500,000 to be used as a down payment for the project -
$515,000 of that amount was actually expended during fiscal year 1999-2000. The costs for the
parks and medians are mainly for building maintenance costs, electricity, water and
mowing/landscape maintenance fees. Major costs ($482,824) were incurred in Fountain Park
due to the lake liner replacement project that began in May of 2000. The remainder of the
project is scheduled for completion November 2000. Another $316,650 was spent for a major
renovation project on the Avenue of the Fountains median located in the downtown area.
Community Development expenditures increased by $321,500 due to increased engineering fees
required by the Engineering Department,
General Fund Balance The fund balance of the General Fund decreased by $17,161 from
June 30, 1999 due to the unanticipated costs associated with the reconstruction of the lake liner
at Fountain Park,
Debt Administration On June 30, 2000, the Town had one Street and Highway User Revenue
Bond and four general obligation bonds issues outstanding.; the outstanding principal totals
$1,045,000 for the new Street and Highway User Revenue Bond and $7,947,163 for the general
obligation bonds. The Town also had two Community Facilities District Bonds outstanding
totaling $4,905,000 and an Improvement District Bond outstanding for $29,048.
Cash Management Policies and Practices The Town uses a system of consolidated cash
management. Cash from all funds is pooled in a central disbursement fund. Cash to be used for
payment of current expenditures is maintained in a checking account, the balance of cash is
maintained on deposit with the Arizona State Treasurer's Local Government Investment Pool.
Cash in the Local Government Investment Pool is available upon 24 hours notice. The LGIP
invests in U.S. Treasury Notes, U.S. Treasury Bills and federally guaranteed insurance contracts.
The average interest rate for fiscal year 1998-99 was 5.312% and 5.907% for fiscal year 1999-
00. Investments held at LGIP earned interest revenue of $415,821 for the year ended
June 30, 2000.
ViZ1
Risk Management The Town of Fountain Hills participates in the Arizona Municipal Risk
Retention Pool. Risk coverage includes general liability, errors and omissions, property and
automobile insurance. The policy insures up to $1,000,000 per incident occurrence plus any
excess liability of up to $8,000,000 as of June 30, 2000 and $15,000,000 as of July 1, 2000, per
occurrence per year. Coverage is provided on a claims -made basis.
The Arizona Municipal
Workers
Compensation
on
is the Town insurance provider for
Workers' Compensation.
The rate
varies according
to the
functions performed
by personnel.
Independent Audit Arizona statutes require an annual audit by independent certified public
accountants. The firm of Cronstrom and Trbovich P.C., CPAs was retained by the Town to
perform the 1999-00 audit. Generally accepted auditing standards were used by the auditors in
conducting the engagement. The auditor's report on the general-purpose financial statements
and combining and individual fund statements and schedules is included in the Financial Section
of this report. r
Acknowledgements I would also like to extend my appreciation to the Mayor and Council for
their leadership and support. The preparation of this Comprehensive Annual Financial Report
was made possible by the hard work of the Finance Department staff. Each member of the
department has my sincere appreciation for the contributions made in the preparation of this
report.
Respectfully submitted,
Paul L. Nordin
Town Manager
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Fountain Hills,
Arizona
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 1999
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United 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.
Imo/ C President
Y
Executive Director
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TOWN OF FOUNTAIN HILLS, ARIZONA
LIST OF PRINCIPAL OFFICIALS
Mayor
Vice -Mayor
Councilmember
Councilmember
Councilmember
Councilmember
Councilmember
DEPARTMENT HEADS
Town Manager
Magistrate
Planning & Zoning Director
Town Clerk/Director of Administration
Town Engineer
Director of Public Safety
Parks &Recreation Deputy Directors
Town Attorney
Town Prosecutor
Street Superintendent
xii
Ms.
Sharon Morgan
Ms.
Sharon Hutcheson
Ms.
Leesa Fraverd
Dr.
John Kavanagh
Mr.
John McNeill
Ms.
Susan Ralphe
Mr.
John Wyman
Paul Nordin
Stuart Shoob
Jeffrey Valder
Cassie Hansen
Randy Harrel
Steve Gendler
Don Clark
Bryan Hughes
William E. Farrell
Iacovino & Kayler
Pat Harvey
r
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C E R T I F I E D P U B L I C A C C O U N T ANT S
The Honorable Mayor and the Town Council of the
Town of Fountain Hills, Arizona
We have audited the accompanying general-purpose financial statements of the Town of
Fountain. Hills, Arizona (Town), as of and for the year ended June 30, 2000, as listed in the table
of contents. These general-purpose financial statements are the responsibility of the Town's
management. Our responsibility is to express an opinion on these general-purpose financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the general-purpose financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
general-purpose financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall general-
purpose financial statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the general-purpose financial statements referred to above present fairly, in all
material respects, the financial position of the Town of Fountain Hills, Arizona as of
June 30, 2000, and the results of its operations for the year then ended in conformity with
generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general-purpose financial
statements taken as a whole. The combining and individual fund and account group financial
statements and schedules listed in the table of contents as supplementary information are
presented for purposes of additional analysis and are not a required part of the general-purpose
financial statements. Such information has been subjected to the auditing procedures applied in
the audit of the general-purpose financial statements and, in our opinion, is fairly stated in all
material respects in relation to the general-purpose statements taken as a whole.
The other information included in this report, designated as the "Statistical Section" in the table
of contents, was not audited by us and, accordingly, we express no opinion on it.
Cronstrom & Trbovich, P.C.
October 13, 2000
8706
EAST
MANZANFFA
DRIVE,
SUITE
100
• SCOTTSDAIE, ARIZONA 85258 •
(480)
348-1102
•
FAX
(480)
348-1104
A PROFESSIONAL CORPORATION
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3
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
AS OF JUNE 30, 2000
Governmental Fund Types
Special
Deb[
Capital
General
Revenue
Service
Projects
Assets and Other Debits
Assets
Cash and investments
$ 79312,420
$ 14,604
$
45988,389
$ 313595527
Cash on deposit with paying agent
-
-
447,697
Accounts receivable
40,490
74
-
Taxes receivable
-
497
18,832
-
Intergovernmental receivable
501,907
272,601
-
4769321
Interest receivable
493848
-
-
-
Special assessments receivable
-
-
233239
-
Due from other funds
281,963
-
-
-
Prepaid items
11672
-
-
-
Fixed assets
-
-
-
-
Other Debits
Amount available in debt service fund
-
-
-
-
Amount to be provided for retirement
of general long-term debt
-
-
-
Total Assets and Other Debits
$ 8.188,300
$ 287,776
$
5.478.157
$ 3.835.848
Liabilities, Equity and Other Credits
Liabilities
Accounts payable
$ 1,6019171
$ 1715650
$
19726
$ 27,597
Accrued wages and benefits
128,454
31,072
-
-
Due to developer
-
-
494353000
-
Retainagepayable
399137
29728
-
-
Interest payable
-
-
2899262
-
Intergovernmental payable
123731
-
-
-
Due to other funds
-
42,503
-
2399460
Refundable deposits
26,350
-
-
-
Deferred revenue
65,996
3%823
36,897
155000
Compensated absences payable
-
-
-
-
General obligation bonds payable
-
-
3159110
-
Community facilities district bonds payable
-
-
-
-
Special assessment debt with government commitment
-
-
Total Liabilities
1,873,839
287,776
590779995
2829057
Equity and Other Credits
Investment in genera] fixed assets
- -
-
-
Fund balances
Unreserved, undesignated
6.314.461 -
400,162
3.553.791
Total Equity and Other Credits
6314,461 -
400,162
3,5534791
Total Liabilities, Equity and Other Credits
$ 841889300 $ 287.776
$ 5,4789157
$ 3,835,848
The accompanying notes [o fmancial statements are an integral part of [his statement.
Account Groups
Totals
General General (Memorandum
Fixed Assets Long-term Debt Only)
447,697
40,564
19,329
I,250,829
49,848
23,239
2815963
1,672
191843,041 - 1958439041
400,162 4003162
139386,731 1393869731
$ 19.843,041 $ 1397863893 $ 5L420,015
159,526
-
-
49435,000
41,865
289,262
12,731
281,963
26,350
157,716
-
1755792
1759792
-
816773053
8,9929163
-
459053000
459053000
294048
29,048
13,786,893
21308.560
1%843,041
-
1938433041
109268,414
l%8432041
305111,455
$
19,843.041
$13,786.893
$ 51.4203015
The accompanying notes [o financial statements are an integral part of [his statement.
5
THIS PAGE BLANK
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 2000
Totals
Special
Debt
Capital
(Memorandum
General
Revenue
Service
Projects
Only)
Revenues
Taxes
$ 432193440
$ 35202
$ 653,824
$ -
$ 458763466
Intergovernmental
313349964
L4369828
-
-
437713792
Fines and forfeitures
2935970
-
-
-
293,970
Licenses and permits
25569,472
-
-
-
235693472
Charges for services
3182748
1359618
-
-
454,366
Rents and royalties
279208
-
-
275208
Contributions and donations
-
10,598
-
-
103598
Special assessments
-
-
95241
-
91241
Interest
4205323
-
303,537
195399
7439259
Other
21.055
21.055
Total Revenues
IIn205.180
1,586,246
9669602
19.399
139777,427
Expenditures
Current
General government
2,5013466
273487
-
-
295289953
Public safety
2,8181628
2405392
-
-
310599020
Highways and streets
-
2,4689498
-
-
294689498
Culture and recreation
333582209
1,300
-
-
39359,509
Community development
192769951
-
-
-
L276,951
Capital outlay
-
-
-
15787,469
157879469
Debt service
Principal retirement
-
-
3395013
-
3395013
Interest and fiscal charges
-
5854001
-
5855001
Total Expenditures
94955,254
2/7372677
9244014
1.787.469
15.404.414
Excess of revenues over (under) expenditures
L2494926
U 151/4311
42,588
_(1776890701
(L626,98)
Other financing sources (uses)
Operating transfers in
23025
L2695112
115,656
-
L386,793
Operating transfers out
(112693112)
(1175681)
-
-
(L386,793)
Proceeds from sale of bonds
-
5.100.000
51100,000
Total other financing sources (uses)
(L2620871
1.151.431
l l5.656
51100,000
5.100.000
Excess of revenues and other sources
over (under) expenditures and other uses
(175161)
-
158,244
35331,930
3,4731013
Fund balance, beginning of year
6,3313622
-
241 918
2215861
6,795,401
Fund balance, end of year
$ 6.314,461
$
$ 400.162
$ 3,553.791
$
10.268,414
The accompanying notes to financial statements aze an integral part of this statement.
7
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 303 2000
General
Special Revenue
Variance
Variance
Favorable
Favorable
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
Revenues
Taxes
$ 33410,000
$ 41219,440
$ 8099440
$ 31200
$ 33202
$ 2
Intergovernmental
312479165
3,334,964
879799
138753452
1,436,828
(438,624)
Fines and forfeitures
2973800
2939970
(3,830)
-
-
-
Licenses and permits
11756,800
2,5695472
812,672
-
-
-
Charges for services
3489523
318,748
(299775)
803000
135,618
553618
Rents and royalties
15,000
27,208
127208
-
-
-
Contributions and donations
-
-
-
-
10,598
103598
Special assessments
-
-
-
-
-
-
Interest
3505000
4203323
70,323
19000
Other
304000
21.055
(899451
500
(500)
Total Revenues
944554288
11.205,180
1.749,892
1.960,152
145869246
(373,9061
Expenditures
Current
General government
598479029
23501,466
333455563
5195535
27,487
492,048
Public safety
29676,490
29818,628
(142,138)
2559595
2403392
159203
Highways and streets
-
-
-
213359559
25468,498
(1329939)
Culture and recreation
45255,935
333583209
897,726
29025
11300
725
Community development
154013580
192769951
1245629
-
-
-
Capital outlay
-
-
-
-
-
-
Debt service
Principal retirement
-
-
-
-
-
-
Interest and fiscal charges
-
-
Total Expenditures
14,181,034
94955,254
4,2259780
3,112,714
2,7374677
3754037
Excess of revenues over (under) expenditures
(4,725,746)
1 249 926
51975,672
1 1(, 52.562)
(19151,431)
1331
Other financing sources (uses)
Operating transfers in
-
2,025
23025
152689200
1126%112
912
Operating transfers out
(152655000)
(1726%112)
(49112)
(115,650)
(1179681)
(2,031)
Proceeds from sale of bonds
Total other financing sources (uses)
(1,265,0001
(1.267,087)
(240871
L1524550
1,1519431
1119)
Excess of revenues and other sources
over (under) expenditures and other uses
(5,990,746)
(17,161)
5,973,585
(12)
-
12
Fund balance, beginning of year
54990,746
693319622
3404876
12
(12)
Fund balance, end of year
$ -
$ 6.314.461
$ 643149461
The accompanying notes to financial statements are an integral part of this statement.
E3
Debt Service
Capital Projects
Vaziance Vaziance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
-
-
-
-
21100,000
-
(291009000)
27000
%241
79241
1205850
303,537
182,687
-
1%399
199399
7719400
9669602
1959202
2.1009000
199399
(2,080.601)
346,320 339,013 79307
581888 585,001 (3,113)
928,208 924.014 4.194
(156,8081 42,588 1999396
115,650 115,656 6
115,650 115.656 6
11,200,000 1,787,469 9,412,531
11200000 12787,469 9JI2,531
(95100.0001 (1576840701 7,3319930
9.100,000 5.100,000 (4.000,000)
9.100.000 5.100,000 (4.000.0001
(41,I58)
158,244
199,402 -
3,331,930
3,331,930
41,158
241,918
200s760
221,861
2214861
$ $
400.162
$
400,162
$
$ 3.553,791
$ 3,553.791
The accompanying notes to financial statements aze an integral part of this statement.
9
THIS PAGE BLANK
10
ii .
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Town of Fountain Hills, Arizona (Town) conform to
generally accepted accounting principles as applicable to governmental units. The
Town was incorporated on December 5, 1989 and operates under the Town Council
form of government. The more significant of the Town's accounting policies are
described below.
Reporting Entity - In evaluating how to define the Town, for financial reporting
purposes, management has identified two potential component units. The decision to
include a potential component unit in the reporting entity has been made by applying
criteria set forth in generally accepted accounting principles. Generally, component
units are legally separate organizations for which the elected officials of the primary
government (i.e., the Town) are financially accountable. The primary government is
financially accountable for a potential component unit if it: appoints a voting
majority of the potential component unit's governing body; and, either is able to
impose its will on the potential component unit or there is a possibility of the
potential component unit to provide specific financial benefits to, or impose specific
financial burdens on the primary government. In addition, a primary government
may be financially accountable for a potential component unit even though the
potential component unit may have a separately elected governing board, a board
appointed by another government, or a jointly appointed board if the potential
component unit is fiscally dependent on the primary government (e.g., the primary
government must approve the potential component unit's budget, tax rates, etc.). The
following component units have been included in the Town's reporting entity:
The Eagle Mountain Community Facilities District and the Cottonwoods
Improvement and Maintenance District. 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 District taxes and thus for the costs of operating the Districts. The Town
Council serves as the Board of Directors; however, the Town has no liability for the
Districts' debt. For financial reporting purposes, transactions of the Districts are
combined together and included as if they were part of the Town's operations.
Town of Fountain 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 formed 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. The MPC had no financial activity during the
fiscal year.
11
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED TUNE 30, 2000
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cum d)
Fund Accounting -The accounts of the Town are organized on the basis of funds
and account groups, each of which is considered a separate accounting entity. The
operations of each fund are accounted for with a separate set of self -balancing
accounts that comprise its assets, liabilities, fund equity, revenues and expenditures,
as appropriate. Government resources are allocated to and accounted for in
individual funds based upon the purposes for which they are to be spent and the
means by which spending activities are controlled. The various funds are grouped, in
the financial statements in this report, into generic fund types and broad categories as
follows:
Governmental Funds
General Fund - The General Fund is the general operating fund of the Town. It is
used to account for all financial resources except those required to be accounted for in
another fund.
Special Revenue Funds - Special Revenue Funds are used to account for the
proceeds of specific revenue sources (other than special assessments, expendable
trusts, or major capital projects) that are legally restricted to expenditures for
specified purposes.
Debt Service Funds - The Debt Service Funds account for the accumulation of
resources for, and the payment of, general long-term debt principal, interest and
related costs.
Capital Projects Funds - The Capital Projects Funds are used to account for specific
revenue sources that are legally restricted to expenditures for the acquisition or
construction of general fixed assets.
Account Groups
General Fixed Assets - The General Fixed Assets Account Group accounts for the
fixed assets of the Town.
General Long-term Debt - The General Long-term Debt Account Group accounts
for the unmatured principal balances of bonds and other long-term debt not reported
in proprietary funds.
Measurement Focus - The accounting and financial reporting treatment applied to a
fund is determined by its measurement focus. All Governmental Funds are accounted
for using a current financial resources measurement focus. With this measurement
focus, only current assets and current liabilities generally are included on the balance
sheet. Operating statements of these funds present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in net
current assets.
RN .! all 111
N®TE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cuntt d)
Basis of Accounting -Basis of accounting refers to when revenues and expenditures
or expenses are recognized in the accounts and reported in the financial statements.
Governmental Funds are accounted for usang the modified accrual basis of
accounting. Revenues are recognized when they become measurable and available to
finance expenditures of the current period. Expenditures are recognized when the
related fund liability is incurred. However, since debt service resources are provided
during the current year for payment of general long-term debt principal and interest
Inc early in the following year, the expenditures and related liabilities have been
recognized in the Debt Service Funds.
Those revenues susceptible to accrual are intergovernmental grants and
appropriations, franchise taxes, licenses, interest revenue and charges for services.
Sales taxes collected and held by the state at year end on behalf of the government
also are recognized as revenue. Fines, permits and parking meter revenues are not
susceptible to accrual because generally they are not measurable until received in
cash.
Budgetary Accounting -The Town Council follows these procedures in establishing
the budgetary data reflected in the financial statements:
1. In accordance with Arizona Revised Statutes, the Town Manager submits a
proposed budget for the fiscal year commencing the following July 1 to the Town
Council. The operating budget includes proposed expenditures and the means of
financing them for the upcoming year.
2. Public hearings are conducted to obtain taxpayer comment.
3. State law requires that, prior to April 1, the Economic Estimates commission
provides the Town with a final expenditure limit for the coming fiscal year. To
ensure compliance with the expenditure limitation, a uniform expenditure report
must be filed with the State each year. This report, issued under a separate cover,
reconciles total Town expenditures from the audited financial statements to total
expenditures for reporting in accordance with the State's uniform expenditure
reporting system (A.R.S. §41-1279.07).
13
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cunt'd)
4. By Arizona Constitution, expenditures may not legally exceed the expenditure
limitation described below of all fund types as a whole. For management
purposes, the Town adopts a budget by department for the General Fund and in
total by fund for other funds. The Town Manager, subject to Town Council
approval, may at any time transfer any unencumbered appropriation balance or
portion thereof between a department or activity. The adopted budget cannot be
amended in any way without Town Council approval.
5. Legal budgets are adopted for the General, Special Revenue, Debt Service and
Capital Projects Funds on essentially the same modified accrual basis of
accounting used to record actual revenues and expenditures.
The Town is subject to the State of Arizona's Spending Limitation Law for Towns
and Cities. This law does not permit the Town to spend more than budgeted revenues
plus the carry-over unrestricted cash balance from the prior fiscal year. The
limitation is applied to the total of the combined funds. The Town complied with this
law during the year.
No supplementary budgetary appropriations were necessary during the yeaz.
Encumbrances -Encumbrance accounting, under which purchase orders, contracts
and other commitments for the expenditure of monies are recorded to reserve that
portion of the applicable fund balance, is not employed by the Town during the year.
All appropriations lapse at yeaz-end.
Cash Equivalents -Cash equivalents consist of short-term, highly liquid investments
that are both (a) readily convertible to known amounts of cash; and (b) so near their
maturity that they present insignificant risk of changes in value because of changes in
interest rates. Generally, only investments with original maturities of three months or
less meet this definition.
Investments -Investments in securities aze stated at fair value in accordance with
GASB Statement No. 31.
Short-term Interfund Receivables/Payables - During the course of operations,
numerous transactions occur between individual funds for goods provided or services
rendered. These receivables and payables are classified as "due from other funds" or
"due to other funds" on the balance sheet.
NOTEI-SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Cunt'd)
Inventory of Supplies -Purchases of such inventory items are recorded at the time of
purchase as expenditures in the funds from which the purchases are made; and
because the amounts on hand at June 30, 2000 were immaterial, they are not included
in the balance sheet.
Prepaid Items -Payments made
to vendors
for services that will benefit periods
beyond June
30, 2000, are recorded
as prepaid
items. Expenditures for prepaid items
are recorded
using the consumption
method.
Property, Plant and Equipment -Fixed assets used in governmental fund type
operations are accounted for in the General Fixed Assets Account Group. Public
domain (infrastructure) assets consisting of certain improvements other than
buildings, such as roads and sidewalks are not capitalized, as these assets are
immovable and of value only to the government. Property, plant and equipment
acquired or constructed for general governmental operations are recorded at the time
of purchase as expenditures in the funds from which the expenditures were made.
Property, plant and equipment is recorded at historical cost or estimated historical
cost if actual historical cost is not available. Donated fixed assets are valued at their
estimated fair market value on the date donated.
Assets in the general fixed assets account group are not depreciated.
Fund Equity -The unreserved fund balances for governmental funds represent the
amount available for budgeting future operations. The reserved fund balances for
govenunental funds represent the amount that has been legally identified for specific
purposes.
Compensated Absences -Because all vested or accumulated vacation leave is not
expected to be liquidated with expendable available financial resources, it is reported
in the general long-term debt account group.
Interfund Transactions -Quasi-external transactions are accounted for as revenues,
expenditures or expenses. Transactions that constitute reimbursements to a fund for
expenditures/expenses initially made from it that are properly applicable to another
fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions
of expenditures/expenses in the fund that is reimbursed.
15
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 303 2000
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concl'd)
All other interfund transactions, except quasi -external transactions and
reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent
transfers of equity are reported as residual equity transfers. All other interfund
transfers are reported as operating transfers.
Property Tax Revenues -Property tax revenues aze recognized as revenues in the
fiscal year they are levied and collected or if they are collected within 60 days
subsequent to fiscal year-end. Property taxes not collected within 60 days subsequent
to fiscal year-end or collected in advance of the fiscal year for which they are levied,
are reported as deferred revenues.
The County levies real property taxes on or before the third Monday in August that
become due and payable in two equal installments. The first installment is due on the
first day of October and becomes delinquent after the first business day of November.
The second installment is due on the first day of March of the next year and becomes
delinquent after the first business day of May.
The County also levies various personal property taxes during the year that aze due
the second Monday of the month following receipt of the tax notice and become
delinquent 30 days thereafter.
Total Columns -Total columns on the combined financial statements are captioned
"Memorandum Only" to indicate they are presented only to facilitate financial
analysis. Data in these columns do not present financial position, results of
operations or cash flows in conformity with generally accepted accounting principles.
Neither are such data comparable to a consolidation. Interfund eliminations have not
been made in the aggregation of this data.
l A
• • ! Ilfi
NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCO UNTABILITY
Expenditures exceeded the adopted budget in the following funds:
Amount of
Fund Overexpenditure
General Fund:
Building Safety $ 665016
Town Marshal 76,122
Parks and Recreation 321,535
Special Revenue Funds:
HURF 1075564
Cottonwoods Maintenance District 2
Debt Service Funds:
HURF Debt Service 292
Eagle Mountain Debt Service 4,746
Cottonwoods Special Assessment 25908
Cash or receivables were available to meet all of the overexpenditures listed above.
NOTE 3 - CASHAND INVESTMENTS
Cash and investments are pooled and invested. Interest earned from investments
purchased with such pooled monies is allocated to each of the funds based on the
average monthly cash balances of the Town. State statutes authorize the Town to
invest in obligations of the U.S. Treasury and U.S. agencies, certificates of deposit in
eligible depositories, repurchase agreements, obligations of the State of Arizona or
any of its counties or incorporated cities, towns or duly organized school districts,
improvement districts in this state and the State Treasurer's Local Government
Investment Pool.
Cash and investments at June 30, 2000 consist of the following:
Cash on hand
Cash in bank
Investments
Total cash and investments
Cash on deposit with paying agent
Total cash and investments on the
combined balance sheet
$ 380
815,027
15,307,230
16,122,637
�447,697)
� 15.674.940
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 309 2000
NOTE 3 - CASHAND INVESTMENTS (Concl'd)
The Town's deposits as of June 30, 2000 were entirely insured or collateralized with
securities held by the Town's custodial bank in the Town's name.
The TOWn'S investments at June 30, 20002 consisted of the following. The State
Board of Deposit provides oversight for the State Treasurer's pools, and the Local
Government Investment Pool Advisory Committee provides consultation and advice
to the Treasurer. The fair value of a participant's position in the pool approximates
the value of that participant's pool shares. The shares are not identified with specific
investments and are not subject to custodial credit risk. The guaranteed insurance
contract is also not subject to custodial credit risk. All other investments were
insured or registered in the Town's name or were held by the Town or its agent in the
Town's name.
Carrying Fair
Amount Value
U.S. government securities $ 452,982 $ 452,982
Guaranteed Insurance Contract 4,4503765 4945%765
State Treasurer's Investment Pool 1%374,435 l%3741435
Investment in Cottonwoods
Improvement Bonds 29,048 299048
Total $ 15.307.230 $ I5.307.230
NOTE 4 -PROPERTY TAXES RECEIVABLE
Property taxes receivable consist of uncollected property taxes as determined from
the records of the County Treasurer's Office, and at June 30, 2000, were as follows.
General Obligation
Eagle Mountain
Total
Year
Debt Service Fund
Debt Service Fund
Debt Service
1999-00
$ 11,173
$ 7,105
$ 18,278
1998-99
67
10
77
1997-98
-0-
-0-
-0-
1996-97
27
-0-
27
1995-96
-0-
-0-
-0-
Prior
450
-0-
450
Total
11 717
11
1 832
That portion of property taxes receivable not collected within 60 days after
June 30, 2000, has been deferred and, consequently, is not included in current year
revenues.
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL. STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2000
NOTE 5 - CHANGES IN GENERAL FIXED ASSETS
A summary of the changes in general fixed assets follows.
Balance Completed Balance
July 1, 1999 Additions Deletions Construction June 30, 2000
Land and
improvements
$ 13,202,697
$ 194669294
$ -0-
$ -0-
$ 14,6683991
Buildings
and improvements
194405528
252309
-0-
-0-
154652837
Improvements other
than buildings
166,953
-0-
-0-
-0-
1665953
Furniture,
equipment and
vehicles
222885376
343,125
-0-
-0-
25631,501
Construction
in progress
-0-
909,759
-0-
-0-
9093759
Total
17.098.554
2.744.487
$ -0-
$ 0-
19.843.041
The estimated cost to
complete construction at June
30, 2000 was
$4,301,805.
Operating Lease -The Town leases office space under the provisions of a long-term
lease agreement classified as an operating lease. Rental expenditures under the terms
of the operating lease totaled $162,595 for the year ended June 30, 2000. The
operating lease is cancelable with a 90-day notice.
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED DUNE 3% 2000
NOTE 7 - GENERAL OBLIGATIONBONDSPAYABLE
Bonds payable at June 30, 2000 consisted of the outstanding general obligation bonds
presented below. Bonds maturing prior to July 1, 2000 are noncallable. Bonds
maturing thereafter are subject to call. Interest is payable semiannually. Principal
and interest requirements at June 30, 2000 were as follows.
Interest
Description Rates % Maturity
Street and Highway User
Revenue Refunding Bonds,
Series 1998 3.75-4,625 7/1/9940
General Obligation Bonds,
Series 1991 7.0-10.0 7/1/99-2000
General Obligation Refunding Bonds,
Series 1995 4.6-5.3 7/l/99-2010
General Obligation Bonds,
Series 1999 5.1-6.5 7/l/00-2014
General Obligation Bonds,
Series 2000 5.5-7.0 7/I/O1-2014
Outstanding Outstanding
Principal Issues/ Principal
July 1, 1999 (Retirements) June 30, 2000
$ 1,075,000 $ (30,000) $ 1,045,000
325,000 (150,000) 175,000
2,715,187 (43,024) 2,672,163
Less: amounts transferred to Debt Service Funds
to retire bonds payable on July 1, 2000
Total long-term bonds payable
20
-0- 1,400,000 1,400,000
-0- 3,700,000
3.700.000
8,992,163
(315,110)
1
General obligation on debt service requirements to maturity, including $3,410,134
of interest, are as follows:
Year ending June 30:
2001
$ 981,870
2002
190115418
2003
995,263
2004
981,453
2005
9749558
Thereafter
7,142,625
12.087.187
In prior years, the Town of Fountain Hills, Arizona defeased certain general
obligation and other bonds by placing the proceeds of new bonds in an irrevocable
trust to provide for all future debt service payments on the old bonds. Accordingly,
the trust account assets and the liability for the defeased bonds are not included in the
Town's financial statements. At June 30, 2000, the amount of defeased debt
outstanding but removed from the General Long-term Debt Account Group was
$294555000.
NOTE 8 -SPECIAL ASSESSMENT DEBT WITH GOVERNMENT COMMITMENT
Special assessment debt with government commitment at June 30, 2000 consisted of
the outstanding bond presented below. The bond is owned by the Town. The bond is
generally callable with interest payable5 semiannually. Principal and interest
requirements at June 30, 2000, were as follows.
Interest
Descri to ion Rates
Cottonwoods Improvement
Bond 5.25
Outstanding
Principal
Maturity July 1, 1999
1/1/00-09 32 27
21
Issues/
(Retirements
Outstanding
Principal
June 30, 2000
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 302 2000
NOTE 8 - SPECIAL ASSESSMENT DEBT WITH GOVERNMENT COMMITMENT (Concl 'd)
General obligation bond debt service requirements to maturity, including $6,863 of
interest, are as follows:
Yeaz ending June 30:
2001
$ 4,668
2002
4,498
2003
4,329
2004
4,160
2005
3,990
Thereafter
146266
E�
Improvement Districts are created only by petition of the Town Council by property
owners within the District areas. The Cottonwoods Improvement District was created
so the Town could fund the improvements. Each of the 54 homeowners within the
District has been assessed taxes by the Town for repayment of the bond. In case of
default, the Town has the responsibility to cover delinquencies of special assessment
bonds with other sources until foreclosure proceeds are received.
NOTE 9 - COMMUNITYFACILITIES DISTRICT BONDS PAYABLE
Community Facilities District bonds payable at June 30, 2000 consisted of the
outstanding bonds presented below. The bonds are generally callable with interest
payable semiannually. Of the total amount originally authorized, $2,095,000 remains
unissued. Principal and interest requirements at June 30, 2000 were as follows.
Interest
Descri ty ion Rates % Maturity
Series 1996-A 5.5-6.5 7/1/03-21
Series 1996-13 7.25 7/1/03-21
Outstanding Outstanding
Principal Issues/ Principal
July 1, 1999 (Retirements) June 30, 2000
$ 4,4351000 $ -0- $ 4,435,000
470,000 -0- 4704000
Total long-term bonds payable 4 au 000 $ _0_ $ 4.905.000
22
Community Facilities District on debt service requirements to maturity, including
$4,389,800 of interest are as follows:
Year ending June 30:
2001
$ 313,350
2002
313,350
2003
453,350
2004
4555475
2005
4565828
Thereafter
7,302,447
Community facilities districts (CFDs) are created only by petition to the Town
Council by property owners within the District areas. As board of directors for the
District, the Town Council has adopted a formal policy that CFD debt will be
permitted only when the ratio of full cash value of the District property (prior to
improvements being installed), when compared to proposed District debt, is a
minimum of 3 to 1 prior to issuance of debt and 5 to 1 or higher after construction of
improvements. These ratios are verified by an appraisal paid for by the District and
administered by the Town. In addition, cumulative debt of all CFDs cannot exceed
5 percent of the Town's secondary assessed valuation.
The developer contributed $4,435,000 to the CFD to guarantee the repayment of the
Series 1996 A bonds. The District then established a guaranteed investment contract
with a trustee as collateral for the Series 1996 A bonds, which provides for an A
rating for the bonds from Standard & Foor's Corporation. When property valuation
in the Eagle Mountain development is sufficient to establish an A rating on the bonds
without the guaranteed contract, the developer may apply to the CFD Board to have
the $4,435,000 returned. Until then, all interest earned on the guaranteed investment
contract is deposited into the Debt Service Fund of the CFD. Because it is the
intention of the CFD to return this money to the developer as long as property taxes
are sufficient to repay the bonds, it has been recorded as due to developer.
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2000
NOTE 10 - COMPENSATED ABSENCES
The liability for vested compensated absences is recorded in the General Long -Term
Debt Account Group. A summary of changes in liabilities for compensated absences
for the year ended June 30, 2000, follows.
Balance at July 1, 1999 $ 139,799
Current year increase in liabilities for
compensated absences 35,993
Balance at June 30, 2000 1 792
NOTE 11 - INTERFUND RECEIVABLESAND PAYABLES
As of June 30, 2000, interfund receivables and payables that resulted from various
interfund transactions were as follows:
Due from Due to
Other Funds Other Funds
General Fund $ 281,963 $ -0-
Special Revenue Funds:
Cottonwoods Maintenance District -0- 497
Grants Fund -0- 423006
Capital Projects Funds:
Heritage Grant Fund -0- 239,460
2 1 963 2 1 963
NOTE 12 -CONTINGENT LIABILITIES
Accumulated Sick Leave -Sick leave benefits provide for ordinary sick pay and are
cumulative but do not vest with employees and, therefore, are not accrued. Unvested
accumulated sick leave of Town employees at June 30, 2000, totaled $458,497.
24
•ilkr
IN r
NOTE 13 -SUBSEQUENT EVENTS
Subsequent to June 305 2000, the Town sold $456805000 of Municipal Property
Corporation (MPQ Revenue Bonds, Series 2000 for the construction of a 31,500
square foot community center on a 13-acre site owned by the Town. The first
principal payment will be made during the 2001-02 fiscal year and there will be an
annual principal payment through the year ended June 30, 2020. The annual interest
rate varies from 4.50% to 5.625%.
Subsequent to June 30, 2000, the Town also contracted with two outside parties as
part of the Fountain Park Repair for $701,800 and $189,689. The repairs are part of
an on -going project that is not included in the General Fixed Assets construction in
progress.
NOTE 14 -RISK MANAGEMENT
The Town of Fountain Hills, Arizona, is exposed to various risks of loss related to
torts; theft of, damage to and destruction of assets; errors and omissions; and natural
disasters. The Town's insurance protection is provided by the Arizona Municipal
Risk Retention Pool, of which the Town is a participating member. The limit for
basic coverage is for $1,000,000 per occurrence on a claims made basis. Excess
coverage is for an additional $8,000,000 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. However, effective July 1, 2000 the liability coverage was increased to
$15,0009000.
The Arizona Municipal Risk Retention Pool is structured such that member premiums
are based on an actuarial review that will provide adequate reserves to allow the pool
to meet its expected financial obligations. The pool has the authority to assess its
members additional premiums should reserves and annual premiums be insufficient to
meet the pool's obligations.
The Town is also insured by Arizona Municipal Risk Retention Pool for potential
worker related accidents.
25
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 3% 2000
NOTE I S - DEFINED CONTRZBUTIONPENSIONPLAN
All non -peace officers and full-time employees of the Town participate in a defined
contribution pension plan administered by the ICMA Retirement Corporation as a
401(a) plan. The payroll for Town employees covered by this plan for the year ended
June 30, 2000 was $2,497,358. The Town's total payroll was $3,490,735.
A defined contribution pension plan provides benefits in return for services rendered,
provides an individual account for each participant, and specifies how contributions
to the individual's account are to be determined instead of specifying 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 investment of those contributions, and
forfeitures of other participant's benefits that may be allocated to such participant's
account. All non -peace officer full-time Town employees must participate in the
pension plan from the date they are hired. Contributions made by an employee vest
immediately and contributions made by the Town vest after three years of service.
An employee that leaves the employment of the Town is entitled to his or her
contributions and the vested portion of the Town's contributions, plus interest earned.
Each employee must contribute 11% of his or her gross earnings. The Town must
contribute 11% of covered earnings. During fiscal year 1999-00, the Town's required
and actual contributions amounted to $287,196. The employees' contributions totaled
$287,196.
No pension provision changes occurred during the year that affected the required
contributions to be made by the Town or its employees.
The ICMA Retirement Corporation held no securities of the Town or other related
parties during the fiscal year 1999-00 or as of the close of the fiscal year.
• • •A 11 A P •
i�
• • 1 111
r r a
Plan Description -The Town of Fountain Hills contributes to the Public Safety
Personnel Retirement System (PSPRS), an agent multiple -employer, public employee
retirement system that acts as a common investment and administrative agent to
provide retirement and death and disability benefits for public safety personnel who
are regularly assigned hazardous duty in the employ of the State of Arizona or a
political subdivision thereof. All benefit provisions and other requirements are
established by State statute. The Public Safety Personnel Retirement System issues a
publicly available financial report that includes financial statements and required
supplementary information for PSPRS. That report may be obtained by writing to
Public Safety Personnel, 1020 E. Missouri Ave., Phoenix, AZ 85014 or by calling
(602)255-5575.
Funding Policy -Covered employees are required to contribute 7.65 percent of their
annual salary to the PSPRS. The Town of Fountain Hills is required to contribute the
remaining amounts necessary to fund the PSPRS, as determined by the actuarial basis
specified by statute. The current rate is 9.44% of annual covered payroll.
Annual Pension Cost -During the yeaz ended June 30, 1999 (the date of the last
available information), the Town of Fountain Hill's annual pension cost of $25,603
for police was equal to the Town of Fountain Hill's required and actual contributions.
The required contribution was determined as part of the June 30, 1999 actuarial
valuation using an entry age actuarial funding method. Significant actuarial
assumptions used in determining the entry age actuarial accrued liability include (a) a
rate of return on the investment of present and future assets of 9.0% per year
compounded annually, (b) projected salary increases of 6.5% per year compounded
annually, and (c) additional projected salary increases of 0.0% to 3.0% per year
attributable to seniority/merit.
The actuarial value of the Town of Fountain Hill's assets was determined using
techniques that smooth the effects of short-term volatility in the mazket value of
investments over a four-year period. The Town of Fountain Hill's unfunded actuarial
accrued liability is being amortized as a level percentage of projected payroll on a
closed basis. The remaining amortization period at June 30, 1999, was 19 years.
The preceding methods comply with the financial reporting standards established by
the Governmental Accounting Standards Board.
27
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 302 2000
NOTE 16 -RE, MEME, AND PENSION PLANS (Cond ",/
Three -Year Trend Information
Police
Fiscal
Annual
Year Ended
Pension
Percent
Net Pension
June 30,
Cost (APC)
Contributed
Obligation
1997
$ 13,997
100.0%
$ -0-
1998
22,869
100.0
-0-
1999
25,603
100.0
-0-
Additional historical trend information for the Town of Fountain Hill's PSPRS is
disclosed on page 30.
Historical trend information is presented in order for a reader to assess the progress
made in accumulating sufficient assets to pay pension benefits as they become
payable.
!1 11 111 i •
TOWN OF FOUNTAIN HILLS, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM
ANALYSIS OF FUNDING PROGRESS
Schedule of Funding Progress
Police
(Underfunded)/
Overfunded
Entry Age AAL as a
Valuation Actuarial Actuarial (Underfunded)/ Annual Percentage
Date Value of Accrued Overfunded Funded Covered of Covered
June 30, Assets Liabilily(AAL) AAL Ratio Payroll Payroll
1996
$ 17,463
$ 16,084
$ 1,379
108.6%
$ 771574
1997
543809
48,512
6,297
113.0
216,163
2.91
1998
1849135
125,791
%344
148.7
3947005
15.31
1999
258,664
263,285
(4,621)
98.2
412,182
(1.1)
30
Statements and Schedules
THIS PAGE BLANK
32
The General Fund
is the
general operating
fund of the Town. It is used to account for all
financial resources
except
those required to be
accounted for in another fund.
TOWN OF FOUNTAIN HILLS, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
GENERAL FUND -BUDGET AND ACTUAL
YEAR ENDED JUNE 303 2000
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Taxes $ 394105000 $ 4321%440 $ 8093440
Intergovernmental 352479165 353349964 879799
Fines and forfeitures 2972800 2932970 (3,830)
Licenses and permits 11756,800 235695472 8125672
Charges for services 348,523 318,748 (29,775)
Rents and royalties 157000 279208 12,208
Interest 3505000 4209323 70,323
Other 30 000 214055 (84945)
Total Revenues 9,455,288 119205,180 1.749,892
Expenditures
Current
General government
Mayor and Town Council 859000 81,306 3,694
Magistrate Court 2462640 232,305 143335
General and Administrative 2,41%350 251639742 2559608
Non -departmental 3,096,039 24,113 3,0714926
Total General government 5,847,029 2/5019466 34345,563
Public safety
Building Safety 5613300 627,316 (66,016)
Town Marshal 2.115,190 2,1919312 (76.122)
Total Public safety 2.6769490 2,818,628 (142,1381
Culture and recreation
Parks and Recreation 1,322,880 196449415 (3219535)
Golden Eagle Park 2563165 2483832 72333
Civic Center 1,5559000 515,009 190399991
Community Center 64,900 603166 49734
Public Works L056.990 889,787 1679203
Total Culture and recreation 4,255,935 393584209 897,726
Community development
Engineering Department 12128,360 19015,152 113,208
Community Development 273.220 261,799 11,421
Total Community development 1,4019580 1,276,951 1244629
Total Expenditures 14,181,034 9,9554254 4,225,780
Excess of revenues over (under) expenditures (4,7259746) 11249,926 5,9754672
Other financing sources (uses)
Operating transfers in - 29025 29025
Operating transfers out (14265,000) 0.269,1121 (4,1121
Total other financing sources (uses) (1,265,000) _(19267,087) (29087)
Excess of revenues and other sources
over (under) expenditures and other uses (5,9909746) (17,161) 51973,585
Fund balance, beginning of year 5,9909746 6,3314622 340,876
Fund balance, end of year $ $ 6.3 t4.461 $ 6.314,461
34
r
Highway User Revenue Fund (HURF) -accounts for the Town°s share of motor fuel tax revenues
and lottery proceeds.
Cottonwoods Maintenance District -accounts for taxes assessed to pay for the maintenance of
the Cottonwoods District.
Grants Fund -accounts for the activities of various grants received by the Town.
35
TOWN OF FOUNTAIN HILLS, ARIZONA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
AS OF JUNE 30, 2000
Cottonwoods
Maintenance
HURF District Grants Fund Totals
Assets
Cash and investments
$
14,604
$
-
$
-
$
14,604
Accounts receivable
74
-
-
74
Taxes receivable
-
497
-
497
Intergovernmental receivable
91,757
180,844
272,601
Total Assets
$
106.435
$
497
$
1
$
287.776
Liabilities and Fund Balance
Liabilities
Accounts payable
$
869425
$
-
$
85,225
$
171,650
Accrued wages and benefits
17,282
-
13,790
31,072
Retainage payable
25728
-
-
21728
Due to other funds
-
497
423006
423503
Deferred revenue
39,823
39,823
Total Liabilities
106,435
497
1809844
287,776
Fund balances
Unreserved, undesignated
-
-
Tand Fund Balance
Total Liabilities and Fund Balance
$
106,435
$
497
$
180,844
$
287,776
s
TOWN OF FOUNTAIN HILLS, ARIZONA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED TUNE 30, 2000
Cottonwoods
Maintenance
HURF
District
Grants Fund
Totals
Revenues
Taxes
$ -
$ 33202
$ - $
33202
Intergovernmental
131365051
-
300,777
L436,828
Charges for services
1355618
-
-
1353618
Contributions and donations
10 598
10.598
Total Revenues
14282,267
3.202
300,777
1,586.246
Expenditures
Current
General government
Public safety
Highways and streets
Culture and recreation
Total Expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses)
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Excess of revenues and other sources
over (under)
expenditures and other uses
Fund balance, beginning of year
Fund balance, end of year
- 3,202
29435,723 -
294354723 3.202
(19153,4561
1,269,112
(I15,6561
1.153,456
24,285
27,487
24%392
2403392
329775
25468,498
1,300
1,300
98 752 2.737.677
2
2.025 (L(51,431
- 1,269,I12
(2,0251 1117,681)
(2,025) 1.151,431
37
TOWN OF FOUNTAIN HILLS, ARIZONA
HURF SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2000
Budget
IN FUND BALANCE -
Actual
Variance
Favorable
(Unfavorable)
Revenues
Intergovernmental
$ 1,0941097
$ 1,136,051
$ 415954
Charges for services
803000
135,618
559618
Contributions and donations
-
103598
10,598
Interest
19000
-
(11000)
Other
500
(500)
Total Revenues
1,1759597
142829267
1069670
Expenditures
Current
Highways and streets
2328,159
294354723
(107,564)
Total Expenditures
2328.159
2,435J23
(107,564)
Excess of revenues over (under) expenditures
(1,152,562)
(141539456)
(894)
Other financing sources (uses)
Operating transfers in
112685200
1,26%112
912
Operating transfers out
(115.650)
(115,656)
(6)
Total other financing sources (uses)
14152,550
19153,456
906
Excess of revenues and other sources
over (under) expenditures and other uses
(12)
-
12
Fund balance, beginning of year
12
-
12)
Fund balance, end of year
$ -
$
$ -
38
TOWN OF FOUNTAIN HILLS, ARIZONA
COTTONWOODS MAINTENANCE DISTRICT FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
YEAR ENDED TUNE 303 2000
Vaziance
Favorable
Budget Actual (Unfavorable)
Revenues
Taxes $ 3.200 $ 3 202 $ 2
Total Revenues 3.200 3,202 2
Expenditures
Current
General government
Total Expenditures
Excess of revenues over (under) expenditures
Fund balance, beginning of year
Fund balance, end of year
3.200 3.202
1200 3.202
(21
TOWN OF FOUNTAIN HILLS, ARIZONA
GRANTS SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
BUDGET AND ACTUAL
YEAR ENDED JUNE 309 2000
Budget
IN FUND BALANCE -
Variance
Favorable
Actual (Unfavorable)
Revenues
Intergovernmental
$
7819355
$ 300,777
$ (480.5781
Total Revenues
781,355
3009777
(48095781
Expenditures
Current
General government
516,335
24,285
4922050
Public safety
2559595
240,392
15,203
Highways and streets
79400
32,775
(255375)
Culture and recreation
2,025
1,300
725
Total Expenditures
7819355
298.752
482,603
Excess of revenues over (under) expenditures
2,025
2,025
Other financing sources (uses)
Operating transfers out
(240251
(2.025)
Total other financing sources (uses)
(29025)
(2.0251
Excess of revenues and other sources
over (under) expenditures and other uses
-
-
-
Fund balance, beginning of year
-
Fund balance, end of year
$
$
$
40
+ .+
HURF Debt Service -accounts for operating transfers received from the HURF special revenue
fund to pay the debt service of the Street and Highway User Revenue Bonds,
General Obligation (GO) Debt Service - accounts for the Towns property tax revenues received
to pay the debt service of the Town°s general obligation bonds.
Eagle Mountain Debt Service - accounts for the property tax revenues received to pay the debt
service of the Eagle Mountain Community Facilities District component unit.
Cottonwoods Special Assessment - accounts for all special assessments received to pay the debt
service of the Cottonwoods Special Assessment District.
41
TOWN OF FOUNTAIN HILLS, ARIZONA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
AS OF JUNE 30, 2000
Eagle
Cottonwoods
HURF
GO
Mountain
Special
Debt Service
Debt Service
Debt Service
Assement
Total
Assets
Cash and investments
$
60,336
$
62510
$
439165295
$
51248
$
499887389
Cash on deposit with paying agent
92,524
3553173
-
-
447,697
Taxes receivable
-
119717
75115
-
18,832
Special assessments receivable
-
23,239
23,239
Total Assets
$
152,860
$
373,400
$
4.923.410
$
28,487
$
5,478,157
Liabilities and Fund Balance
Liabilities
Accounts payable
$
579
$
13147
$
-
$
-
$
13726
Due to developer
-
-
41435,000
-
43435,000
Interest payable
22,524
110,063
1565675
-
28%262
Deferred revenue
-
79444
65214
235239
369897
General obligation bonds payable
70,000
2459110
-
315.110
Total Liabilities
93,103
3634764
4,597,889
23.239
54077,995
Fund balances
Unreserved, undesignated
59,757
9.636
3254521
5,248
400.162
Total Fund Balance
5%757
9,636
3259521
54248
400.162
Total Liabilities and Fund Balance
$
152
860
$
373,400
$
4,923,410
$
28.487
$
5,478,157
42
TOWN OF FOUNTAIN HILLS, ARIZONA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2000
Eagle
Cottonwoods
HURF
GO
Mountain
Special
Debt Service
Debt Service
Debt Service
Assessment
Totals
Revenues
Taxes
$ -
$ 451,760
$ 2023064
$ -
$ 653,824
Special assessments
-
-
-
93241
93241
Interest
6.986
295,636
915
303,537
Total Revenues
458.746
497.700
10,156
9669602
Expenditures
Debt service
Principal retirement
$ 705000
265,785
-
39228
339,013
Interest and fiscal charges
45,942
215,783
321,596
1.680
5854001
Total Expenditures
1154942
4815568
321,596
4.908
924,014
Excess of revenues over (under) expenditures
(1154942)
(22,822)
176 104
54248
42,588
Other financing sources (uses)
Operating transfers in
115.656
115.656
Total other financing sources (uses)
115,656
1154656
Excess of revenues and other sources
over (under) expenditures and other uses
(286)
(22,822)
176,104
5,248
158,244
Fund balance, beginning of year
60 043
32.458
149,417
241,918
Fund balance, end of year
$ 59,757
$ 9.636
$ 325.521
$ 5.248
$ 4004162
43
TOWN OF FOUNTAIN HILLS, ARIZONA
HURF DEBT SERVICE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2000
Budget
IN FUND BALANCE -
Actual
Variance
Favorable
(Unfavorable)
Total Revenues
$
$
$
Expenditures
Debt service
Principal retirement
7%000
702000
-
Interest and fiscal charges
459650
45,942
(292)
Total Expenditures
1154650
1159942
(292)
Excess of revenues over (under) expenditures
(115,650)
(115,942)
(292)
Other financing sources (uses)
Operating transfers in
115,650
l l5,656
6
Total other financing sources (uses)
1154650
1154656
6
Excess of revenues and other sources
over (under) expenditures and other uses
-
(286)
(286)
Fund balance, beginning of year
-
604043
W043
Fund balance, end of year
$
$ 59.757
$ 59,757
44
TOWN OF FOUNTAIN HILLS, ARIZONA
GO DEBT SERVICE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
YEAR ENDED JUNE 301 2000
Variance
Favorable
Budget
Actual
(Unfavorable)
Revenues
Taxes
$ 4489550
$ 4512760
$ 35210
Interest
41000
6.986
24986
Total Revenues
452,550
458.746
6,196
Expenditures
Debt service
Principal retirement
2759000
265,785
93215
Interest and fiscal charges
218,708
215,783
2.925
Total Expenditures
493,708
481 568
12,140
Excess of revenues over (under) expenditures
(41,158)
(22,822)
18,336
Fund balance, beginning of year
41.158
32.458
8 700)
Fund balance, end of year
$ -
$ 9.636
45
TOWN OF FOUNTAIN HILLS, ARIZONA
EAGLE MOUNTAIN DEBT SERVICE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
BUDGET AND ACTUAL
YEAR ENDED JUNE 3% 2000
Budget
FUND BALANCE -
Actual
Variance
Favorable
(Unfavorable)
Revenues
Taxes
$
200,000
$ 202,064
$ 2,064
Interest
116,850
2954636
178,786
Total Revenues
316,850
497,700
180,850
Expenditures
Debt service
Interest and fiscal charges
316,850
3214596
(44746)
Total Expenditures
3164850
3214596
(447461
Excess of revenues over (under)
expenditures
-
176,104
1769104
Fund balance, beginning of year
1494417
1494417
Fund balance, end of year
$
$ 325.521
$ 325,521
46
TOWN OF FOUNTAIN HILLS, ARIZONA
COTTONWOODS SPECIAL ASSESSMENT FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
YEAR ENDED JUNE 305 2000
Variance
Favorable
Budget
Actual
(Unfavorable)
Revenues
Special assessments
$ 25000
$ %241
$ 7,241
Interest
915
915
Total Revenues
25000
10,156
89156
Expenditures
Debt service
Principal retirement
13320
31228
(1,908)
Interest and fiscal charges
680
19680
(1,000)
Total Expenditures
2,000
4,908
(2.908)
Excess of revenues over (under) expenditures
-
59248
5,248
and balance, beginning of year
Fund balance, end of year
$
$ 5,248
47
ICY JbYJLef:� 71►:\.IN
Cf
Heritage Grant Fund -accounts for capital improvements through the use of Heritage Grant
funds.
CapiPal Projects Fund -accounts for the capital improvements to various proj acts of the Town.
m
TOWN OF FOUNTAIN HILLS, ARIZONA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
AS OF JUNE 30, 2000
Heritage
Capital
Grant Fund
Projects Fund
Total
Assets
Cash and investments
$ -
$ 33359,527
$
313593527
Intergovernmental receivable
4769321
-
476,321
Total Assets
$ 476321
$ 3,359.527
$.
3.835,848
Liabilities and Fund Balance
Liabilities
Accounts payable
$ -
$ 27,597
$
279597
Due to other funds
23%460
-
2395460
Deferred revenue
15,000
154000
Total Liabilities
254,460
274597
282,057
Fund balances
Unreserved, undesignated
221 86I
33314930
3,553,791
Total Fund Balance
221,861
33314930
3553,791
Total Liabilities and Fund Balance
$ 476,321
$ 3359,527
$
3,835.848
50
TOWN OF FOUNTAIN HILLS, ARIZONA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 309 2000
Heritage Capital
Grant Fund Protects Fund Total
Revenues
Interest $ $ 19,399 $ 19399
Total Revenues 19399 19399
Expenditures
Capital outlay
Total Expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses)
Proceeds from sale of bonds
Total other financing sources (uses)
Excess of revenues and offier sources
over (under) expenditures and other uses
and balance, beginning of year
Fund balance, end of year
221.861
$ 221.861
1,787.469 1,787,469
L7879469 13787,469
(1.7689070) (L768,070)
5.100.000
5.100.000
5,1001000
54100,000
3,331,930 3,331,930
2214861
$ 3,331930 $ 3,553.791
51
TOWN OF FOUNTAIN HILLS, ARIZONA
HERITAGE GRANT FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2000
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental $ 2,100,000 $ $ (2,1009000)
Total Revenues 2,100.000 (2,100,000)
Expenditures
Capital outlay 29100,000 - 291004000
Total Expenditures 21100,000 - 2.100,000
Excess of revenues over (under) expenditures - -
Fund balance, beginning of year 221,861 221,861
Fund balance, end of year $ $ 2219861 $ 221,861
52
TOWN OF FOUNTAIN HILLS, ARIZONA
CAPITAL PROJECTS FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
YEAR ENDED JUNE 309 2000
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Interest $ $ 19.399 $ 19.399
Total Revenues 19.399 19 399
Expenditures
Capital outlay
9.100,000
11787,469
743124531
Total Expenditures
R10Q000
1.787,469
723 12.53 1
Excess of revenues over (under) expenditures
(99100,0001
(1,768.070I
73312930
Other financing sources (uses)
Proceeds from sale of bonds
95100,000
5,1009000
(4400000)
Total other financing sources (uses)
9/1003000
5,100,000
4 0(, 00,000)
Excess of revenues and other sources
over (under) expenditures and other uses
-
31331,930
35331,930
Fund balance, beginning of year
-
Fund balance, end of year
$
$ 3.331.930
$ 3,331,930
53
THIS PAGE BLANK
54
General fixed assets consist of land and improvements, buildings and improvements, equipment
and vehicles. These assets represent a major investment of Town funds. Adequate control and
accountability of general fixed assets are essential to the protective custody of Town property.
55
TOWN OF FOUNTAIN HILLS, ARIZONA
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS
BY SOURCE
JUNE 30, 2000 AND 1999
2000 1999
GENERAL FIXED ASSETS
Land and improvements $ 1496689991 $ 135202,697
Buildings and improvements 134659837 13440,528
Improvements other than buildings 1669953 166,953
Furniture, equipment and vehicles 21631,501 252889376
Construction in progress 909 759
Total $ 19,843,041 $ 1Z098.554
INVESTMENT IN GENERAL FIXED
ASSETS BY SOURCE
General Fund $ 5,8492848 $ 5,4865547
Special Revenue Funds 1,2719010 15146,414
Capital Projects Funds 724972481 532409891
Donations 5,224,702 5,224,702
Total $ 19.843,041 $ 17,098,554
56
TOWN OF FOUNTAIN HILLS, ARIZONA
SCHEDULE OF GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
AS OF JUNE 305 2000
Improvements
Furniture,
Land and
Buildings and
Other than
Equipment and
Construction
Improvements
Improvements
Buildings
Vehicles
in Progress
Total
FUNCTION AND ACTIVITY
General Government
Council
$ -
$ -
$ -
$ %842
$ -
$ 9,842
Administration
4,1551037
1823818
142,270
744,596
90%759
6,1349480
Community Development
-
-
-
18,935
-
185935
Magistrate Court
-
-
-
45,631
45 631
Total General Government
4,155.037
1829818
142,270
819,004
9099759
63208,888
Public Safety
Building Safety
-
-
-
865011
-
869011
Town Marshal
4155374
415374
Total Public Safety
-
-
-
501 385
-
501,385
Highways and Streets
Engineering
-
-
-
1453673
-
1453673
Maintenance
744022
307,854
934,088
13159964
Total Highways and Streets
749022
3074854
14079,761
-
134619637
Culture and Recreation
Community Center
4539618
4639500
179965
113351
-
9463434
Parks and Recreation
958763820
511,665
6,718
157,360
-
10,5523563
Public Works
109,494
629640
172.134
Total Culture and Recreation
10,439,932
9759165
24,683
231,351
11,671,131
Total
$ 1456682991
$ L465,837
$ 166,953
$ 2.631,501
$ 909,759
$ 19,843,041
57
TOWN OF FOUNTAIN HILLS, ARIZONA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
FOR THE YEAR ENDED JUNE 30, 2000
General Fixed
Assets
July 1, 1999 Additions
Deletions
General Fixed
Assets
June 30, 2000
FUNCTION AND ACTIVITY
General Government
Council
$ 95842
$ - $
-
$ %842
Administration
317135606
294203874
-
691343480
Community Development
183935
-
-
18,935
Magistrate Court
43.918
1,713
45,631
Total General Government
34786.301
2,4224587
6,2089888
Public Safety
Building Safety
869011
-
-
86,011
Town Marshal
3524482
62,892
415,374
Total Public Safety
4384493
62,892
501.385
Highways and Streets
Engineering
1459673
-
-
145,673
Maintenance
1,191,368
124,596
14315,964
Total Highways and Streets
1.3374041
124,596
1,4619637
Culture and Recreation
Community Center
9463434
-
-
9469434
Parks and Recreation
1%418,151
1345412
-
105552,563
Public Works
172,134
172.134
Total Culture and Recreation
11.536,719
1344412
11,671,131
TOTAL GENERAL FIXED ASSETS
$17,098.554
$ 2.744.487 $
$ 19.843,041
58
•
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TOWN OF FOUNTAIN HILLS, ARIZONA
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(UNAUDITED)
Fiscal
Property
Franchise
Year
Sales Tax
Tax
Tax
2000
$ 4,087,514
$ 6573026
$ 1319926 $
1999
33394,152
3489778
1183407
1998
2,9203084
302,375
103,748
1997
2,664,923
350,024
86,840
1996
1,610,116
336,000
783345
1995
16,622
3575033
949848
1994
393,654
94,780
1993
4233798
81,956
1992
350,831
76,585
1991
62
Total
4,8761466
3,861,337
3,326,207
3,101,787
2,0243461
4689503
488,434
5053754
4273416
TOWN OF FOUNTAIN HILLS, ARIZONA
PRIMARY AND SECONDARY TAXABLE PROPERTY ASSESSED VALUATION
LAST TEN FISCAL YEARS
(UNAUDITED)
Assessed
Assessed
Assessed
Assessed
Valuation
Valuation
Valuation
Valuation
Fiscal
Town of
Fountain Hills
Maricopa
State of
Year
Fountain Hills
School District
County
Arizona
2000
P
$ 190J02,361
$ 191557%669
$ 1%362,298,255
$ 22,6453463,514
S
2122415,476
2143037,354
2018771715,546
239547,348,817
1999
P
133,721,181
1349650,036
17,463,875,533
21,67%3001013
S
1469943,730
1471884,952
18,676,830,848
22,53353483150
1998
P
11222855569
1135072,537
1590063270,531
2150015064,273
S
116,333,406
117,1443929
15,723,498,194
22,333,8615362
1997
P
10%6491833
101,573,954
131975,6683204
22,811,1583500
S
103,9445051
104,881,097
14,343,156,861
23,333,678,475
1996
P
94,1882637
95,155,307
13,493,736,826
22,10%8%588
S
10%161,568
1015137,745
145119,4349946
235022,33%962
1995
P
872383,347
8839783760
13,3021326,609
21,6883438,645
S
88,796,834
9%3941390
13,5215174,915
22,17%317,949
1994
P
85,5671821
87,353,865
13,2963003,025
21,3493754,194
S
87,4065208
8%208,873
13,50431073816
213748304%198
1993
P
83,486,645
85,445,505
133808,814,077
21,5321550,403
S
84,6879515
865675,510
13560535145589
213934,246,590
1992
P
802366,555
839384,340
14,1323936,570
2116705300,013
S
823825,480
8598789190
14,773,14%205
22,533,348,150
1991
P
795044,032
82,135,548
14376839185716
22,645,463,514
S
80,181,000
87507%910
15,43799415233
23,547,348,817
P =Primary assessed valuation
S =Secondary assessed valuation
Source: Maricopa County and Arizona Tax Research Foundation.
63
TOWN OF FOUNTAIN HILLS, ARIZONA
PRIMARY AND SECONDARY PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
(UNAUDITED)
Fiscal
Rate
Rate
Rate
Rate
Rate
Year
Town
School District
County
State
Total
2000
P
$ 0.00
$ 3.91 $
1.16 $
0.00 $
5.07
S
0.26
2.38
0.12
0.00
2.76
1999
P
0.00
3.89
1.19
0.00
5.08
S
0.17
1.96
0.11
0.00
2.24
1998
P
0.00
4.89
1.68
0.00
6.57
S
0.23
2.32
0.13
0.00
2.68
1997
P
0.00
4.98
1.64
0.00
6.62
S
0.30
2.17
0.16
0.00
2.63
1996
P
0.00
4.96
1.69
0.47
7.12
S
0.32
2.67
0.15
0.00
3.14
1995
P
0.00
5.50
1.77
0,47
7.74
S
0.39
1.69
0.00
0.00
2.08
1994
P
0.00
5.03
1.58
0.47
7.08
S
0.43
1.76
0.19
0.00
2.38
1993
P
0.00
4.29
1.60
0.47
6.36
S
0.47
1.51
0.14
0.00
2.12
1992
P
0.00
4.38
1.51
0.47
6.36
S
0.43
1.66
0.17
0.00
2.26
1991
P
0.00
N/A
1.50
0.77
2.27
S
0.00
N/A
0.17
0.00
0.17
P =Primary assessed valuation
S =Secondary assessed valuation
Source: Maricopa County and Arizona Tax Research Foundation.
CZf
TOWN OF FOUNTAIN HILLS, ARIZONA
ASSESSED VALUATION OF MAJOR TAXPAYERS
JUNE 30, 2000
(UNAUDITED)
Taxpayer
MCO Properties
Chaparral City Water Co.
US West Communications
Four Peaks Vista
Safeway Inc.
Sunridge Canyon LLC
G&G Fountain Palisades
Southwest Inn at Eagle Mountain
Fountain Hills -Old Vine LP
Eagle Mountain Golf Club
Source: Treasurer of Maricopa County
Land Description
Vacan[ Land
Water Utility
Telephone & Telegraph
Apartments
Shopping Center
Golf Course
Shopping Center
Hotel
Shopping Center
Golf Course
As % of Town's
1999/00
Total Secondary
Assessed
Assessed
Valuation
Valuation
$ 591563872
2.43%
2953%037
1,19%
2,3293867
1.10%
196413751
0.77%
7295361
0.34 %
686,985
0,32%
666,120
0.31%
525,000
0.25 %
521,144
0.25%
5045623
0.24%
$ 15,291,760
7.20%
l�
TOWN OF FOUNTAIN HILLS, ARIZONA
COMPUTATION OF LEGAL DEBT MARGIN
JUNE 305 2000
(UNAUDITED)
Net secondary assessed valuation $ 212,415,476
Water, Sewer, Light, Parks, Open Space
and Recreational Facility Boards
Debt limit - 20% of secondary net
assessed valuation $ 423483,095
Bonds outstanding None
Net 20% General Obligation Bonding Capacity 42,483,095
All Other General Obligation Bonds
Debt limit - 6% of secondary net
assessed valuation 12,744,929
Bonds outstanding subject to debt limit 8,677,053
Net 6%General Obligation Bonding Capacity 4,067,876
Tota120%and 6%Bonding Capacity $ 46,550,971
Source: Maricopa County Assessor's Office.
m
TOWN OF •ARIZONA
RATIO OF BONDED
LAST TEN FISCAL YEARS
(UNAUDITED)
Net
Secondary
Net
Ratio of Net
Net Bonded
Fiscal
Assessed
Bonded
Bonded Debt to
Debt Per
Year
Population
Valuation
Debt
Assessed
Value
Capita
1999-00
18,595 *
$ 212,415,476
$ 81677,053
4.08%
$ 467
1998-99
18,015 *
146,943,730
31913,952
2.66%
217
1997-98
16,275 *
116,3333406
35883,018
3.34%
239
1996-97
15,220 *
1035944,051
4,0565473
3.90%
267
1995-96
145146
100,161,566
45277,315
4.27%
302
1994-95
13,100
88,796,834
4,1445881
4.67%
316
1993-94
12,005
83,384,908
4,292,389
5.15%
358
1992-93
119265
84,6871515
4,461,875
5.27%
396
1991-92
102475
80,181,000
4,65%579
5.81%
445
1990-91
10,030
82,825,480
4,730,000
5.71%
472
* The source of this information is Town records; 1998-99 population estimates based on DES.
TOWN OF FOUNTAIN HILLS, ARIZONA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES TO
TOTAL GENERAL EXPENDITURES*
LAST TEN FISCAL YEARS
(UNAUDITED)
Ratio of
Interest
Total
Debt Service to
Fiscal
and Fiscal
Debt
Total
To Total
Year
Principal
Charges
Service
Expenditures*
Expenditures
1999-00
$ 3399013
$ 585,001
$ 924,014
$ 15,404,414
6.00%
1998-99
223,024
5175696
740,720
11,464,538
6.46%
1997-98
2455210
554,731
7999941
10,631,005
7.52%
1996-97
222,321
247,311
4699632
12,850,703
3.65%
1995-96
209,193
208,477
417,670
7,667,025
5.45%
1994-95
125,000
3279463
452,463
4,999,377
9.05%
1993-94
125,000
340,493
465,493
41113,127
11.32%
1992-93
125,000
352,913
477,913
6,9679798
6.86%
1991-92
75,000
420,301
495,301
31731,129
13.27%
1990-91
1,808,367
0.00%
* Includes all Govenunental Fund Types.
TOWN OF FOUNTAIN HILLS, ARIZONA
DIRECT AND OVERLAPPING GENERAL OBLIGATION BONDED DEBT
JUNE 30, 2000
(UNAUDITED)
Proportion
Applicable to
Net
Town of Fountain Hills
1999-00
Outstanding
Net Secondary
General
Assessed
Obligation
Approx.
Net Debt
Overlapping Jurisdiction
Valuation (1)
Bonded Debt
Percent
Amount
State of Arizona $
23,547,3489817
$ None
0.55%
$ -
MaricopaCounty
20,877,7159546
99,91Q000
0.94%
939,154
Maricopa County Community College
District
203877,7152546
283,0353000
0.94%
2,66Q529
Fountain Hills Unified School
District No. 98
214303 793 54
295650,000
99.36%
295460,240
East Valley Institute of Technology
District No. 401
81294,757,601
32,475,000
2,07%
672,233
Fountain Hills Sanitary District
17%51%148
756153000
100.00%
7,615,000
Fountain Hills Fire District
17492167966
None
100.00%
-
Fountain Hills Road District
None
None
100.00%
-
Town of Fountain Hills
212,415,476
7,7309000
100.00%
757307000
Total Direct and Overlapoping GO Bonded Debt
$ 49,0773156
(1)
Proportion applicable
to the Town
of Fountain
Hills,
Arizona is computed on the ratio
of secondary assessed
valuation for
1999-00.
Source: Maricopa County Treasurer's Office.
TOWN OF FOUNTAIN HILLS, ARIZONA
ASSESSED AND ESTIMATED ACTUAL VALUE OF PROPERTY (1)
LAST TEN FISCAL YEARS
(UNAUDITED)
rail' iSkf:�`I
Ratio of Total
Total
Net
Assessed Value
Tax
Assessed
Exempt
Total Full
Estimated
Assessed
to Total Estimated
Year
Value
Amount
Cash Value
Actual Value
Value
Actual Value
2000
$ 1985224,776 $
8,5781615 $
19713,0293238 $
2105536353086 $
190,1022361
9,64%
1999
170,2583614
99255,978
114673193,748
1,760,6329498
1613002,636
9.67%
1998
141,077,170
7,355,989
1120839685752
12450,7625502
1339721,181
9.72%
t997
118,888,547
65602,978
1900275467459
1,203,0551751
112,2859569
9,88%
1996
10539125474
5,262,641
884,979,322
130615975,186
100,649,833
9.97%
1995
9%271,154
5,082,517
82639179659
99253012191
94,1889637
10,00%
1994
92,3019694
41918,347
75321453358
90397743430
87,3839347
10.21%
1993
90,2995465
4,731,644
728,2553127
873,9062152
853567,821
10.33%
1992
873376,360
3,88%715
6993538,226
8391445,871
839486,645
10.41%
1991
84,2543975
338883420
6759434,505
8109521,406
80,3662555
10,40%
6YXK�)J�
Ratio of Total
Total Net Assessed Value
Tax Assessed Exempt Total Full Estimated Assessed to Total Estimated
Year Value Amount Cash Value Actual Value Value Actual Value
2000
$ 221,922,165 $
9,894,702
$ 1,889,016,352
$ 2,266,819,622
$ 212,415,476
9.79%
1999
185,540,741
1Q,575,923
1,SS3,072,952
1,899,687,542
174,964,518
9.77%
1998
1553729,430
8,7853700
1,317,9463863
1,5811536,236
146,9433730
9,85%
1997
12390973961
617649555
1,0341892,731
11241,8713277
1162333,406
9.91%
1996
109,4635361
51519,310
9063495,406
13087,794,487
103,944,051
10.06%
1995
1053660,296
5,498,728
8669122,390
1503%346,868
10031613568
10.17%
1994
94,047,575
55250,741
764,582,686
917949%223
885796,834
10,25%
1993
921482,352
51076,144
74396282593
89273542312
873406,208
10.36%
1992
89,0557130
453679615
7095986,885
8513984,262
849687,515
10.45%
1991
86,808,710
359832230
691,418,802
8291702,562
82,8253480
10.46%
(1) Arizona uses two types of property values for taxing purposes. Primary values are used to calculate primary
property [axes which are collected to fund the maintenance and operation of school districts, community college
districts, counties, cities, and state government. Secondary values are used to pay off secondary property taxes
which are collected for such things as debt service (bonds), budget overrides and special districts. Source: Arizona
Department of Revenue.
70
TOWN OF FOUNTAIN HILLS, ARIZONA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
Percent of
(1)
Current
Current
Fiscal
Total Tax
Tax
Taxes
Year
Levy
Collections
Collected
1999-00
$ 444,138
$ 4325965
97,48% $
1998-99
2483607
235,968
94.92%
1997-98
268,917
2613704
97,32%
1996-97
312,638
312,489
99.95%
1995-96
3233517
3233511
100.00%
1994-95
3393832
33%605
99.93%
1993-94
3793779
379,537
99,94%
1992-93
396,610
397,434
100,21 %
1991-92
3595371
35%371
100.00%
1990-91
N/A
Ratio of
Ratio of
Total Tax
Delinquent
Delinquent
Total
Collections
Outstanding
Taxes to
Tax
Tax
to Total
Delinquent
Total
Collections
Collections
Tax Levy
Taxes
Tax Levy
4,385
$ 4379350
98,47%
$ 61788
1.53%
6,286
242,254
97.44%
67
0,03%
7,213
2683917
100,00%
0.00%
122
3125611
99.99%
27
0.01%
3
323,514
100.00%
-
0,00%
4
339,609
99.93%
219
0.06%
11
379,548
99,94%
231
0.06%
(412)
3973022
100,10 %
-
0.00%
35%371
100.00%
0.00%
N/A
N/A
(I) The amount levied and collected
ie net ofresolutions.
NOTE 1: Amounts collected are on
a cash basis rather than the
modified accrual
basis as in the financial statements.
NOTE 2: Unsecured personal property taxes are no4 included in this schedule.
SOURCE: The Maricopa County Treasurer's Office.
71
TOWN OF FOUNTAIN
ARIZONA
. ,
CALENDARLAST TEN
(UNAUDITED) I
Value of Building
Permits (in Thousands}
Housing
Year
Starts
Residential
Commercial
Industrial
Other
1999
475106
$ 5,142,869
$ 1,878,629
$ 210,676 $
1,092,337
1998
475801
4,7785571
212303445
378,141
1,101,269
1997
43,013
3,943,544
1,840,334
2335598
1,1333069
1996
399630
3,508,538
19422,483
788,083
1107%458
1995
37,091
3519%942
1,0435978
413,835
7829609
1994
33,862
3,203,144
95%539
145,310
584,029
1993
24,147
254329682
5475667
50,139
49%052
1992
20,488
2,15%844
5509345
3%244
4789990
1991
179082
1,613,832
307,566
65,099
515,236
1990
13,375
1,217,348
607,969
140fiM
539,318
SOURCE: Arizona Real Estate Center, College of Business, Arizona State University
ric7
TOWN OF FOUNTAIN HILLS, ARIZONA
DEMOGRAPHIC AND MISCELLANEOUS STATISTICS
.TUNE 309 2000
(UNAUDITED)
DATE OF INCORPORATION December 5, 1989
FORM OF GOVERNMENT Council - Manager
NUMBER OF EMPLOYEES (No police and fire)
Classified - Full time 86
Classified - Part time 26
Exempt 20
AREA 18.27 square miles
TOWN OF FOUNTAIN HILLS FACILITIES AND SERVICES
Miles of Street
Surfaced
178.5
Unsurfaced
2
Population (estimated)
14,146
Housing Units
91946
Building Permits Issued
859
Culture and Recreation
Community Centers
I
Parks
4
Park acreage
121
Tennis Courts
6
Senior Center
1
FACILITIES AND SERVICES NOT INCLUDED IN PRIMARY GOVERNMENT
Fire Protection:
Special District
Number of stations
2
Number of fire personnel and officers
42
Number of calls answered
31180
Number of inspections conducted
2,517
Police Protection:
Contracted
Number of stations
1
Number of police personnel and officers
23
Number of patrol units
9
Number of law violations
Physical arrests
890
Traffic/Parking violations
7,907
Sewerage System:
Special District
Miles of sanitary sewers
180
Number of treatment plants
1
Number of service connections
11,000
Daily average treatment in gallons
1,580,OOOmgd
Maximum daily capacity of treatment plant in gallons
1,900,OOOmgd
Water System:
Private company
Miles of water mains
198.0
Number of service connections
113068
Number of fire hydrants
1,685
Daily average consumption in gallons
43688,851
Maximum daily capacity of plant in gallons
9,0002000
Education:
Number of elementary schools
3
Number of secondary schools
1
Number of students - Primary
19739
Number of Students - Secondary
756
Source: Town government offices and related districts.
74