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1884-2009
Town of Vinton, Virginia
Comprehensive Annual Financial Report
For Fiscal Year Ending June 30, 2009
TOWN OF VINTON, VIRGINIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2009
Prepared by the Town of Vinton
Finance Department/Treasurer's Office
TOWN OF VINTON, VIRGINIA
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letterof Transmittal.............................................................................................................................. i
Certificate of Achievement for Excellence in Financial Reporting......................................................... vii
Directory of PrincipalOfficials ........................................................................................................... vui
OrganizationalChart ............................................................................................................................ ix
FINANCIAL SECTION
IndependentAuditor's Report ................................................................................................................ 1
Management's Discussion and Analysis................._._............................................................................ 3
Basic Financial Statements
Govemment-wide Financial Statements
Exhibit I Statement of Net Assets............................................................................................. 12
Exhibit 2 Statement of Activities............................................................................................... 13
Fund Financial Statements
Exhibit 3 Balance Sheet — Governmental Fund.......................................................................... 14
Exhibit 4 Reconciliation of the Governmental Fund Balance Sheet
to the Statement of Net Assets................................................................................. 15
Exhibit 5 Statement of Revenues, Expenditures, and Changes in
Fund Balances — Governmental Fund............................._........................................ 16
Exhibit 6 Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of the Governmental Fund to the Statement of Activities ............... 17
Exhibit 7 Statement of Revenues, Expenditures, and Changes in Fund Balance —
Budget and Actual — General Fund (Non-GAAP Budgetary Basis) ........................... 18
Exhibit 8 Statement of Net Assets — Proprietary Fund................................................................ 19
Exhibit 9 Statement of Revenues, Expenses, and Changes in Fund
Net Assets — Proprietary Fund................................................................................. 20
Exhibit 10 Statement of Cash Flows — Proprietary Fund............................................................... 21
Notes to Financial Statements.......................................................................................................... 22
Required Supplementary Information
Exhibit 11 Analysis of Funding Progress for Defined Benefit Pension Plan ................................... 43
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Table 11
Table 12
Table 13
Table 14
Table 15
TOWN OF VINTON, VIRGINIA
TABLE OF CONTENTS
(Continued)
STATISTICAL SECTION
NetAssets by Component........................................................................................
Change in Net Assets by Component........................................................................
Fund Balances — Governmental Fund...........................................................
Changes in Fund Balances — Governmental Fund .........................................
Assessed Value and Actual Value of Taxable Property .................................
Principal Water and Sewer Customers..........................................................
Property Tax Levies and Collections............................................................
Legal Debt Margin Information...................................................................
Ratios of Outstanding Debt by Type............................................................
Pledged Revenue Coverage.........................................................................
Demographic Statistics................................................................................
PrincipalEmployers....................................................................................
Full -Time Equivalent Town Government Employees by Function/Program...
Operating Indicators by Function/Program...................................................
Capital Asset and Infrastructure Statistics by Function/Program....................
COMPLIANCE SECTION
Page
... 45
... 46
... 48
... 49
... 50
... 51
... 52
... 53
... 54
... 55
... 56
... 57
... 58
... 59
... 60
Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards............................................................................................ 62
Summaryof Compliance Matters........................................................................................................ 64
Schedule of Findings and Responses.................................................................................................... 65
INTRODUCTORY SECTION
TOWN OF VINTON
311 South Pollard Street Barry W. Thompson
VINTON, VIRGINIA 24179-2531 Treasurer/Finance Director
PHONE (540) 983-0608
FAX (540) 985-3105
October 7.2009
To the Honorable Mayor, Members of Town Council, and Citizens of the Town of Vinton, Virginia
The Comprehensive Annual Financial Report (CAFR) for the Town of Vinton for the fiscal year ended
June 30, 2009 is hereby submitted in accordance with Section 15.1-167 of the 1950 Code of Virginia,
(1950 as amended). The Code requires that the Town issue an annual report on its financial accounts and
records. In addition, the report must be audited. The report was prepared by the Treasurer's Office and
audited independently by the accounting firm of Brown, Edwards & Company, L.L.P.
Responsibility for both the accuracy of the data and completeness and fairness of the presentation,
including all disclosures, rests with the Town of Vinton. To the best of our knowledge and belief, the
enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the
financial position and results of operations of the various funds and account groups of the Town. All
disclosures necessary to enable the reader to gain an understanding of the Town's financial activities have
been included.
The Reporting Entity and Services Provided
The financial reporting entity includes all of the funds of the primary government of the Town of Vinton,
as legally defined. The reporting entity does not include legally separate entities (component units) for
which a primary government is financially accountable because there are no such component units within
the Town. The Town jointly operates the Roanoke Valley Resource Authority with Roanoke County and
City of Roanoke. It is, however, a legally separate entity governed by a six -member multi jurisdictional
Board, one member of which represents the Town.
The Town of Vinton provides a full range of municipal services. These services include police protection,
fire and first aid services, refuse and recycling functions, general public improvements, street and right-of-
way maintenance, recreational and cultural activities, and planning and zoning. The Town also provides
potable water distribution, wastewater collection, maintenance and service of line, meters, and other
components related to its utility system. Based on the latest Water Quality Report, the water system meets
all state and federal requirements administered by the Office of Drinking Water under the Virginia
Department of Health. According to the 2008 Water Quality Report the Town had three water quality
violations for exceeding Maximum Contaminant Level (MCL) for Coliform. The Town also received a
second place award in the Water Taste Competition from the Virginia Rural Water Association. The
Virginia Department of Environmental Quality in November 2008 reported statewide recycling rates for
calendar year 2007. The Town of Vinton had the highest rate in the Commonwealth at 55.7% out of 74
Solid Waste Planning Units.
Local Economic Condition and Outlook
The Town of Vinton is located in the southern end of the Shenandoah Valley, in the southwestern region
of Virginia. Vinton is a part of the Roanoke Metropolitan Statistical Area, which includes the Cities of
Roanoke and Salem and Counties of Roanoke, Botetourt, and Craig. The Town is a compact, urban area
of 3.2 square miles located within eastern Roanoke County and shares a common border with the
City of Roanoke. It is approximately 170 miles west of Richmond, Virginia, the State capital. The
Town is a major gateway to the recreational attractions of Smith Mountain Lake and the Blue Ridge
Parkway. Approximately 78.8% of the total land within the Town is developed; 50.6% for residential
use, 13.8% for commercial or industrial development (within the Town industrial park and at various
other locations) and 14.4% for public facility development.
Local Economic Condition and Outlook (Continued)
Vinton is proud of its small size in relation to the surrounding dense urban areas. It has a reputation as
a friendly community with much scenic charm and beauty, and is often the urban center of choice for
residents in east Roanoke County and the surrounding population centers of Bedford, Botetourt, and
Franklin counties.
The location of the Town provides quick and easy access from neighboring jurisdictions via US
Interstates 81 and 581, US Routes 460 and 220, and Virginia Routes 24 and 634. This also provides an
opportunity for citizens to be able to drive to a community college, two private colleges, and two public
universities in less than one hour. The Town's location also means that its economy is impacted by the
economic conditions of its neighbors, and by decisions made by these larger neighboring jurisdictions.
Since the Town of Vinton is highly concerned with providing a positive atmosphere and quality of life
for its citizens, it has taken an active role in various regional authorities and activities. The Town
participates in economic development by being a member of the Roanoke Regional Partnership and in a
variety of Valley wide recreational events like the Virginia Commonwealth Games as well as in
community relations by funding a portion of the annual operating costs of the Roanoke Valley Regional
Cable Television. The Town also participates in the Greenway Commission, the purpose of which is to
identify possible greenway locations in the Roanoke Valley area. In 1999, the Town chose to
participate in the construction and maintenance of a Regional Fire Training Academy.
Vinton has maintained stable property tax rates over the years, while continuing to provide high quality
municipal services and responsive government. The Town Council adopted an ordinance to eliminate
the vehicle decal and to enact a vehicle license fee effective January 1, 2008. This essentially was a
revenue neutral action by Council.
The nearby educational institutions allow opportunities for Town citizens to receive higher education
and technical training. Expansion of industry, tourist facilities, and conference centers in the region
continue to enhance the reputation of the Town as a highly desirable residential area.
Long-term Financial Planning
Christopher S. Lawrence was appointed as Town Manager in September 2008. Mr. Lawrence has
strong leadership and management skills and has set goals toward community and economic
development. The Town's Management Team works closely with the Roanoke County Management
Team to develop short-term and long term financial goals addressing the financial stability of the
Town/County endeavors.
The Town Council approved a balanced budget for the upcoming fiscal year. The budget provides for
maintaining the existing levels of services provided to the Town's citizens while increasing an effort on
economic development through revitalizing the downtown business area. These efforts include
partnering with the Virginia Department of Housing and Community Development whereby funding
may be provided for a downtown economic restructuring plan as well as a physical improvement master
plan. The Town was also awarded Virginia Housing Development Authority Mixed Use Mixed Income
Planning Grant in the amount of $10,000 solely for the purpose of supporting the costs associated with the
planning and design work for the Vinton Motors property in the downtown Vinton area. The budget
ii
introduced a new revenue source, a Cigarette Tax which was passed at $0.20 per pack of cigarettes.
This new revenue is estimated to generate an additional $255,000. Another economic uplift for the
Town is the newly completed War Memorial Conference Center and as a result of marketing the
complex and branding efforts, the Town should realize increased revenue from the use of this facility.
The Town continues to commit to the improvement of the highways, streets, and roads by including
approximately $250,000 for paving and milling of streets throughout the Town.
Major Initiatives
The Vinton Business Center is open for business. Cardinal Glass Industries of Minnesota is the first
company located in the Vinton Business Center. It has completed its 222,000 square -foot building at an
investment of approximately $23.9 million. Currently, it is fully staffed.
There are two additional prepared sites at the Vinton Business Center which are being marketed. A
picnic shelter has been completed while the Greenway Trail is planned to eventually connect with the
existing Greenway System running through the Town of Vinton and east Roanoke County.
In November 2003, the citizens of Vinton voted to allow operation of an off-track betting facility within
the Town limits. Colonial Downs was constructed and began operations in October 2004 which has
brought approximately $75,000 of tax revenue to the Town.
The expanded and renovated War Memorial Facility located in the Town of Vinton celebrated its re-
opening in October 2007. It is a premier conference facility. It has a main ballroom with a seating
capacity of 240 to 300 depending on the room configuration which can be converted into two rooms.
There is also a smaller meeting room known as the Library on the main floor and another two smaller
meeting rooms on the second floor. The facility has a modern sound system, projectors and screens,
and wireless Internet. The facility is now fully ADA compliant and all floors are served by an elevator.
As a part of this project the Jaycee Ball field near the War Memorial Complex was relocated to the
Vineyard Park in order to continue providing the Vinton community an adequate ball field facility.
This project is in cooperation with Roanoke County through its Parks and Recreation Program in order
to provide a high level of service to our citizens.
The Roanoke County Commonwealth Attorney's Office continues to represent the Town's interests in
the prosecution of criminal charges. Attorney Elizabeth Dillon was re -appointed by the Town Council
on July 1, 2008 to serve as counsel for the Town's other legal matters.
The Town evaluated its wastewater collection and water distribution system and as a result identified
four (4) projects as vital to improve and update its safe and reliable operations. In January 2008, the
Town issued bonds through VML-VACo amounting to $2,750,000 to fund these projects. The bonds
issued to fund the water and wastewater improvement projects are secured by pledges from the water
and sewer revenues from the current utility system.
These projects are as follows:
The Falling Creek Connection Project Phase II which constructed a pumping station and installed
distribution lines to connect the Falling Creek Service area to the Town of Vinton water system.
The project included the installation of additional fire hydrants in the area to improve public
safety. The project was completed in November 2008.
The Twin Mountain Water Storage Tank project will replace two 19,000 gallon water storage
tanks, which are 35 years old, with anew single 57,000 gallon tank. The new tank will increase
distribution storage capacity and will also improve the system service pressure significantly.
in
The Hardy Road Wastewater Force Main Extension Project extended the existing force mainline
by 3,400 feet to eliminate sanitary sewer overflows and to provide sufficient capacity for growth
in the sewer shed area being served. This project was completed in December 2008.
The Third Street and Niagara Road Wastewater Lift Stations Upgrade Project will improve and
repair two critical sewage lift stations in the Town's wastewater collections system. Pumps and
mechanical piping will be replaced, electrical equipment upgraded, building and structures
improved, emergency generators replaced, and physical security improvements made. Both
stations will be brought up to current code standards. The estimated completion date is January
2010.
The Town is working with the County of Roanoke on a new system for Real Estate Tax and Appraisal and
Personal Property Tax.. The Real Estate Tax Billing was successfully installed and tax bills were generated in
April 2008. Roanoke County/Town of Vinton also implemented a new Appraisal System in April 2008. The
Personal Property Tax Billing was implemented in April 2009. Supplemental bills were live in December 2008
and 2009 tax bills were generated on the new software. The Town plans to review, analyze, and begin updating
the accounting system during the Fiscal Year 2010-2011 budget.
Prospects for the Future
The twenty-year Comprehensive Plan for the Town's economic and community development was adopted in
September 2004. This plan which serves as the blue print for the Town's direction regarding land use, capital
development, and economic progress is continuously being reviewed and updated, as needed.
Accounting System and Budgetary Controls
The Town's accounting records for governmental fund type operations are maintained on a modified accrual basis
with revenues being recorded when available and measurable, and expenditures being recorded when services or
goods are received and fund liabilities are incurred. Accounting records for proprietary fund types are maintained
on the accrual basis with revenues and expenses being recorded when earned or incurred.
In developing or modifying the Town's accounting system, consideration is given to the adequacy of internal
controls. Internal controls are designed to provide reasonable, but not absolute, assurance regarding: (a) the
safeguarding of assets against loss from unauthorized use or disposition, and (b) the reliability of financial records
for preparing financial statements and maintaining accountability for assets.
The concept of reasonable assurance recognizes that: (a) the cost of a control should not exceed the benefits likely
to be derived, and (b) the evaluation of costs and benefits requires estimates and judgments by management. All
internal control evaluations occur within the above framework. The Town's internal controls adequately
safeguard assets and provide reasonable assurance of proper recording of financial transactions.
Budgetary control is maintained at the department or function level by the adoption of an annual, accrual plus
encumbrances basis budget for both the General and Enterprise Funds. The budgetary controls are designed to
ensure compliance with legal restrictions on expenditures as established by the Town Council. Only the Council
can revise appropriations. Year-end outstanding encumbrances are reported as a reserve of fund balance and re -
appropriated in the subsequent year.
IV
Cash Management
The Town uses a pooled cash concept to allow greater investment flexibility and consequently a better return on
investments. Cash from all funds is pooled for investment purposes in the Commonwealth of Virginia's Local
Government Investment Pool. The Town's checking account is an interest bearing public fund demand deposit
account earning interest rates tied to the 90-day US T-Bill. Total earnings for all funds equal $72,696 for the
year.
Risk Management
The Town's various property and liability insurance coverage is provided by Virginia Municipal League
Insurance Programs. The annual insurance costs are allocated to specific departments and funds based on
assigned equipment, number of personnel, building usage, and other equitable cost estimates.
Independent Audit
Virginia law requires that the financial statements of the Town be audited by a Certified Public Accountant (or
alternatively, by the Auditor of Public Accounts) selected by the Town Council. Brown, Edwards & Company,
L.L.P., has performed an annual audit of the Comprehensive Annual Financial Report. Their audit was conducted
in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and Specifications for
Audit of Counties, Cities, and Towns, issued by the Auditor of Public Accounts of the Commonwealth of Virginia.
The auditor's report, which includes their opinion on the financial statements of the Town, is contained in this
report on page one of the Financial Section. Other auditor's reports are included in the Compliance Section.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic
financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is
designed to compliment the MD&A and should be read in conjunction with it. The Town's MD&A can be found
immediately following the report of the independent auditors.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial reporting to the Town for its Comprehensive Annual Financial Report
for the fiscal year ended June 30, 2008. The Certificate of Achievement is a national award that recognizes
conformance with the highest standards for preparation of government financial reports.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and
efficiently organized Comprehensive Annual Financial Report, the contents of which must conform to program
standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. The Town of Vinton has received a
Certificate of Achievement for the past ten fiscal years. We believe our current report continues to conform with
the Certificate of Achievement Program requirements, thus, this report is being submitted to GFOA.
The Town Manager has also established a goal for the budget document to be reevaluated as a budgeting
and communication tool. The GFOA budget document standards are being used as a model for improving
the budget document.
v
Acknowledgements
The preparation of this report was made possible through the diligent effort of the Treasurer/Finance Office with
the support of all departments. Appreciation is expressed to the members of the Town Council for their interest in
the preparation of the Town of Vinton's comprehensive annual financial report and to the Town's independent
auditing firm, Brown, Edwards & Company, L.L.P. for their cooperation and input in this work.
Respectfully sub it ed,
r top her S. Lawrence Aarry W. Thomps6n�
To n Manager TreasurerlFinance Director
vi
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Vinton
Virginia
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2008
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 highost
standards in government accounting
and iuiancial reporting.
oaf r President
sue.
Executive Director
vii
TOWN OF VINTON, VIRGINIA
DIRECTORY OF PRINCIPAL OFFICIALS
June 30, 2009
TOWN COUNCIL
Bradley E. Grose, Mayor
William E. Obenchain, Jr., Vice Mayor
Robert R. Altice
Carolyn D. Fidler
William W. Nance
APPOINTED OFFICIALS
Christopher S. Lawrence ................................................... Town Manager
Barry W. Thompson ........................................ Finance Director/Treasurer
Darleen Bailey....................................................................... Town Clerk
Herbert G. Cooley............................................................. Chief of Police
INDEPENDENT AUDITORS
Brown, Edwards & Company, L.L.P.
viii
rug
Citizens of Vinton
Town of Vinton
Organization Chart
Town council
Town Manager I I Town Attorney
Assistant Town Manager
Police Department
Administration
Operations
Communications
Public Works Department
Finance Department
1
Planning and Zoning Department
Special Programs Department
War Memorial Department
1X
FINANCIAL SECTION
�OMl'_ANY,L.L.P.
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
Honorable Members of Town Council
Town of Vinton, Virginia
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, and each major fund of the Town of Vinton, Virginia, as of and for the year ended
June 30, 2009, which collectively comprise the Town's basic financial statements as listed in the table of
contents. These financial statements are the responsibility of the Town's management. Our responsibility
is to express an opinion on these financial statements based on our audit. The prior year partial
comparative information has been derived from the Town's 2008 financial statements and, in our report
dated September 21, 2008 we expressed unqualified opinions on the respective financial statements of the
governmental activities, the business -type activities, and each major fund.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and Specifications for Audits of
Counties, Cities, and Towns issued by the Auditor of Public Accounts of the Commonwealth of Virginia.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business -type activities,
and each major fund of the Town, as of June 30, 2009, and the respective changes in financial
position and cash flows, where applicable, thereof and the respective budgetary comparison for the
general fund for the year then ended, in conformity with accounting principles generally accepted in
the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
October 7, 2009 on our consideration of the Town's internal control over financial reporting and our tests
of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and important for assessing the results of our audit.
Providing Professional Business Advisory & Consulting Service-
319 McClanahan Street, S.W. - P.O. Boa 12388 - Roanoke, VA 24025-2388 - 540-345-0936 - Fax: 540-342-6181 - wwwBEcpas.com
The management's discussion and analysis and the required supplementary information on pages
3 through 10 and page 43, respectively, are not a required part of the basic financial statements but are
supplementary information required by accounting principles generally accepted in the United States of
America. We have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the required supplementary
information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the Town's basic financial statements. The introductory section and the statistical
section are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The introductory section and statistical section have not been subjected to the auditing
procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion
on them.
Roanoke, Virginia
October 7, 2009
40", 66wUC& sc;� ,
CERTIFIED PUBLIC ACCOUNTANTS
2
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the Town of Vinton, Virginia (the "Town"), we offer readers of the Town's
financial statements this narrative overview and analysis of the financial activities of the Town for the
fiscal year ended June 30, 2009. We encourage readers to consider the information presented here in
conjunction with additional information that we have furnished in our letter of transmittal, which can be
found on pages i through vi of this report.
Financial Highlights
• The total assets of the Town exceeded its liabilities at the close of the most recent fiscal year
by $15,346,514 net assets). Of this amount, $2,618,652 (unrestricted net assets) may be used
to meet the Town's ongoing obligations to citizens and creditors.
• The Town's total net assets decreased by $(1,641,493). This decrease is largely due to the
total expenses of $11,437,337 being more than the total revenues of $9,795,844. This
resulted in a sizeable drop of $2,597,565 (30.7%) in current and other assets. This
unfavorable effect was partially offset by an insignificant increase of $401,332 (1.7%) in
capital assets with the final result being a drop of 6.7% in total assets.
On the other hand, long-term liabilities decreased by $517,860 (3.8%) while other liabilities
fell by $36,880 (3.7%), thus causing a favorable effect on the total net assets
The final result of all these effects is a 9.7% decrease in net assets.
As of the close of the current fiscal year, the Town's governmental fund reported an ending
fund balance of $1,971,496, a decrease of $(783,031) in comparison with the prior year. This
is largely due to a total decrease of $826,877 (20.3%) in all forms of assets particularly cash
and cash equivalents, due from other governments, and prepaid expenses. In addition to
this adverse effect, accrued payroll also rose by $29,852 (15.9%), but was partially
counteracted by a decrease in accounts payable and accrued liabilities of $28,004 (8.1%0), as
well as in deferred revenue of $45,694 (5.8%).
Approximately 86% of the combined ending fund balance, $1,698,851 is available for
spending at the Town's discretion (unreserved fund balance), and represents 21% of the
governmental fund's expenditures.
• The Town's total long-term liabilities decreased by $(517,860) (4%) during the current
fiscal year. This decrease is largely due to the annual payment of a bond series starting this
fiscal year in addition to the regular payment on bonds and capital lease.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Town's basic financial
statements. The Town's basic financial statements comprise three components: (1) government -wide
financial statements, (2) fund financial statements, and (3) notes to the financial statements. This report
also contains other supplementary information in addition to the basic financial statements themselves.
Overview of the Financial Statements (Continued)
Government -wide Financial Statements — The government -wide financial statements are
designed to provide readers with a broad overview of the Town's finances, in a manner similar to
a private -sector business.
The statement of net assets presents information on all of the Town's assets and liabilities, with
the difference between the two reported as net assets. Over time, increases or decreases in net
assets may serve as a useful indicator of whether the financial position of the Town is
improving or deteriorating.
The statement of activities presents infonmation showing how the government's net assets
changed during the most recent fiscal year. All changes in net assets are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will result only in
cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the Town that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business -type activities). The governmental activities of the Town include
general government, public safety, public works, community development, and parks, recreation,
and cultural. The business -type activity of the Town is the water and sewer department.
Fund Financial Statements — A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The Town,
like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance -related legal requirements. All of the funds of the Town can be divided
into two categories: governmental funds and proprietary funds.
Governmental Funds — Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government -wide financial statements.
However, unlike the government -wide financial statements, governmental fund financial
statements focus on near -.term inflows and ouflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating a government's near -tern financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements.
By doing so, readers may better understand the long-tenn impact of the government's near -term
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The Town adopts an annual appropriated budget for its general fund. A budgetary comparison
statement has been provided for the general fund to demonstrate compliance with this budget.
Proprietary Funds — The Town maintains one type of proprietary fund. Enterprise funds are
used to report the same functions presented as business -type activities in the government -wide
financial statements. The Town uses an enterprise fund to account for its Water and Sewer
Department.
F.
Overview of the Financial Statements (Continued)
Proprietary Funds (Continued) — Proprietary funds provide the same type of information as the
government -wide financial statements, only in more detail. The proprietary fund financial
statements provide separate information for the Water and Sewer Department.
Notes to the Financial Statements — The notes provide additional information that is essential to
a full understanding of the data provided in the government -wide and fund financial statement.
Other Information — In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the Town's funding
progress for the defined benefit pension plan.
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. In the case of the Town, assets exceeded liabilities by $15,346,514 at the close of the most recent
fiscal year.
By far the largest portion of the Town's net assets (83%) reflects its investment in capital assets
(e.g., land, buildings, infrastructure, machinery, and equipment), less any related debt used to acquire those
assets that are still outstanding. The Town uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the Town's investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt
must be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
The Town's Net Assets
Governmental Business -Type
Activities Activities Total
2009 2008 2009 2008 2009 2008
Current and other assets $ 3,352,001 $ 4,185,522 $ 2,506,289 $ 4,270,333 $ 5,858,290 $ 8,455,855
Capital assets 12,160,535 12,796,556 11,795,309 10,757,956 23,955,844 23,554,512
Total assets
Long-term liabilities
Other liabilities
Total liabilities
Net assets
Invested in capital
assets, net of
related debt
Restricted
Unrestricted
Total net assets
15,512,536 16,982,078 14,301,598 15,028,289 29,814,134 32,010,367
5,264,233
5,497,095
7,707,375
7,992,373
12,971,608
13,489,468
1,212,195
1,249,615
283,817
283,277
1,496,012
1,532,892
6,476,428
6,746,710
7,991,192
8,275,650
14,467,620
15,022,360
7,365,632
7,763,470
5,342,230
5,497,604
12,707,862
13,261,074
20,000
20,000
-
-
20,000
20,000
1,650,476
2,451,898
968,176
1,255,035
2,618,652
3,706,933
$ 9,036,108 $ 10,235,368 $ 6,310,406 $ 6,752,639 $ 15,346,514 $ 16,988,007
Unrestricted net assets of $2,618,652 may be used to meet the Town's ongoing obligations to
citizens and creditors.
At the end of the current fiscal year, the Town is able to report positive balances in all three
categories of net assets, both for the government as a whole, and for its separate governmental and
business -type activities. The same situation held true for the prior fiscal year.
5
Government -wide Financial Analysis (Continued)
Governmental activities - Governmental activities decreased the Town's net assets by
$(1,199,260). The key elements of this decrease are a significant decline on capital grants and
contributions by $89,444 (97.7%), a reduction on investment earnings by $94,655 (76.4%) and other
revenues by $61,039 (79.2%), and a significant drop on operating grants and contributions by $236,350
(14.0%). Additionally, expenses increased for general government by $131,001 (14.5%), public safety
by $186.410 (5.5%), parks, recreation, and cultural by $34,861 (6.1%), and community development by
$112, 001 (49.3 %).
For the most part, revenues closely paralleled inflation and conditions represented in the
economy and growth in the demand for services. Revenues from operating grants and contributions
showed a major decrease due to not receiving as many law enforcement grants from the state through
the department of criminal justice. Investment earnings also showed a decline because of lower interest
rates. However, there was an increase in gain sharing revenue due to more growth and tax collections in
the gain sharing area.
The Town's Changes in Net Assets
Governmental
Business -Type
Activities
Activities
Total
2009
2008
2009
2008
2009
2008
Revenues
Program revenues
Charges for services
$ 741,574
$ 692,828
$ 2,289,754
$ 2,255,505
$ 3,031,328
$ 2,948,333
Operating grants and
contributions
1,454,813
1,691,163
-
-
1,454,813
1,691,163
Capital grants and
contributions
2,146
91,590
303,556
-
305,702
91,590
General revenues
Property taxes
434,176
467,806
-
-
434,176
467,806
Other taxes
3,613,573
3,588,820
-
-
3,613,573
3,588,820
Intergovernmental
unrestricted
631,320
679,009
-
-
631,320
679,009
Investment earnings
29,104
123,759
43,592
115,006
72,696
238,765
Other
16,038
77,077
236,198
236,838
252,236
313,915
Total revenues
6,922,744
7,412,052
2,873,100
2,607,349
9,795,844
I0,019,401
Expenses
General government
1,037,073
906,072
-
-
1,037,073
906,072
Public safety
3,593,946
3,407,536
-
-
3,593,946
3,407,536
Public works
2,455,754
2,905,249
-
-
2,455,754
2,905,249
Parks, recreation, and
cultural
610,756
575,895
-
-
610,756
575,895
Community development
339,304
227,303
-
-
339,304
227,303
Interest on long-term
debt
211,189
220,551
-
-
211,189
220,551
Water and sewer
-
-
3,189,315
3,134,236
3,189,315
3,134,236
Total expenses
8,248,022
8,242,606
3,189,315
3,134,236
11,437,337
11,376,842
Excess (deficiency) before
transfers
(1,325,278)
(830,554)
(316,215)
(526,887)
(1,641,493)
(1,357,441)
Transfers
126,018
113,486
(126,018)
(113,486)
-
-
Change in net assets
(1,199,260)
(717,068)
(442,233)
(640,373)
(1,641,493)
(1,357,441)
Net assets -July 1,
10,235,368
10,952,436
6,752,639
7,393,012
16,988,007
18,345,448
Net assets - June 30,
$ 9,036,108
$ 10,235,368
$ 6,310,406
$ 6,752,639
$ 15,346,514
$ 16,988,007
C
Government -wide Financial Analysis (Continued)
Expenses and Program Revenues — Governmental Activities
9,000.000
8,000,000
7,000,000
6.000,000
5,000.000
4,000,000
3,000,000
2,000.000
1,000,000
General Public Safety Public Works Parks, Community Interest on Total
Government Recreation, & Development Long -Term
Cultural Debt
Revenues by Source — Governmental Activities
OtherTaxes
36%
Unrestricted
ergovernmental
Revenue Other Charges for Services
9% 1% 11%
Operating Grants and
Contributions
21%
Sales Taxes
16%
Property Taxes
6%
Grants and
ributions
0%
■Expenses
■Program Revenues
Business -type activities — Business -type activities decreased the Town's net assets by
$(442,233). This decrease is largely due to the substantial decrease in investment earnings by $71,414
(62.1%). There were no capital grants and contributions received this fiscal year. This unfavorable
effect was also brought about by a rise in expenses of $55,079 (12.6%). All these unfavorable effects
were partially offset by an increase in charges for services of $34,249 (1.5%).
7
Financial Analysis of the Government's Funds
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with
finance -related legal requirements.
Governmental funds — The focus of the Town's governmental funds is to provide information on
near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the Town's financing requirements. In particular, unreserved fund balance may serve as a useful measure
of a government's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the Town's governmental fund reported combined ending
fund balances of $1,971,496, a decrease of $(783,031) in comparison with the prior year. This is largely
due to a decrease in all forms of assets totaling $826,877 (20.3%) particularly cash equivalents, due
from other governments, and prepaid expenses. In addition to this adverse effect, accrued payroll also
rose by $29,852 (15.9%) but was partially counteracted by a decrease in accounts payable and accrued
liabilities of $28,004 (8.1 % o) as well as in deferred revenue of $45,694 (5.8%).
Proprietary funds — The Town's proprietary fund provides the same type of information found in
the government -wide financial statements, but in more detail.
Unrestricted net assets of the Water and Sewer Department at the end of the year amounted to
$968,176. Factors concerning the finances of this fund have already been addressed in the discussion of
the Town's business -type activities.
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget for revenues were
$(296,098) primarily due to decreases on Other Local Taxes of $1.96,600 (4.8%), on Revenues from Use
of Money by $58,000 (17.0%), and on Charges for Services by 35,782 (7.6%).
Differences between the original budget and the final amended budget for expenditures were
less significant than the decrease in revenues in the amount of $83,715. These differences are primarily
due to minimal increases on expenses for general government administration; public safety; parks,
recreation, and cultural; and community development. However, these decreases were offset by a large
increase on projected capital assets and a minimal increase on public works expenses.
There were multiple significant variances between the final budget and the actual final results for
the year. They can be briefly summarized as follows:
• Revenue on other local taxes had an unfavorable significant variance of $(454,390) (11 %)
due primarily to over budgeting tax on public utilities by $163,000; Cable Franchise Tax
was budgeted individually $85,000 and also included in Communication Tax; Prepared
Food Tax was overbudgeted by $13,714; and Sales and Use Tax was over budgeted by
$127,687, and the remainder in various other categories of other taxes.
Actual revenues from use of money and property was $(140,659) (41 %) less than the
budget because interest on investments was lower than budgeted and therefore did not
generate the income that was anticipated.
Charges for services was $(151,975) (32%) below the budget because the War Memorial
generated $98,944 of the budgeted $249,218, which left a shortfall of $150,273 in this one
area of operation.
8
General Fund Budgetary Highlights (Continued)
• The $(129,255) (49%) unfavorable variance on recovered costs was primarily due to not
receiving as many recoveries and rebates as budgeted.
• The favorable variance of $129,120 in public safety total expenditures was lower than
budgeted due to each of the department areas working diligently to control their
expenditures and reduce their spending even further after the budget was formally cut in
February. Small capital items under $5,000 were delayed from being purchased until a later
date.
• The favorable variance of $127,115 in public works total expenditures was lower than
budgeted due to the efforts of public works to control their expenditures and reduce their
spending even further after the budget was formally cut in February. Small capital items or
projects under $5,000 were delayed until a later date.
• The Town's expenditures on parks, recreation, and cultural was $62,242 (10%) lower than
the forecast due to efforts of the departments in this category to control their expenditures
and reduce their spending even further after the budget was formally cut in February. In the
Swimming Pool area, better utilization of part-time employees created a savings of $16,904.
Other areas included small capital projects which were delayed until a later date.
• Expenditures for capital projects had a favorable variance of $231,634 (35%) when
compared with the budget due to capital asset purchases being cut from the budget during
the reduction process in February. Those removed during the budget cuts included the
finance department's lease of a computer system and the sign for the Vinton Business
Center. Other projects were not completed in the fiscal year and therefore the money was
not expended.
• Payment on principal retirement and interest was $(49,783) (12%) more than the budget
because the first interest payment on the VRA 2007E Capital Improvement Bond Issue was
not budgeted.
Capital Asset and Debt Administration
Capital assets — The Town's investment in capital assets for its governmental and business -type
activities as of June 30, 2009, amounts to $23,955,844 (net of accumulated depreciation). This investment
in capital assets includes land, buildings and systems, improvements, infrastructure, machinery, and
equipment. The total increase in the Town's investment in capital assets for the current fiscal year was 2%
(a 5% decrease for governmental activities and a 10% o increase for business -type activities). Additional
information on the Town's capital assets can be found in Note 5 of this report.
Land
Buildings and systems
Infrastructure
Improvements other than
buildings
Machinery and equipment
Construction in progress
Governmental
Activities
2009 2008
$ 1,706,092 $ 1,706,092
6,923,634 7,220,543
1,899,252 1,990,954
1,544,515
87,042
The Town's Capital Assets
(Net of Depreciation)
Business -Type
Activities
2009 2008
$ 80,752 $ 80,752
8,031,032 6533,699
Total
2009 2008
$ 1,786,844 $ 1,786,844
14,954,666 13,754,242
1,899,252 1,990,954
- 3,183,565 3,315,168 3,183,565 3,315,168
1,796,016 339,503 351,982 1,884,018 2,147,998
82,951 160,457 476,355 247,499 559,306
Total
$ 12,160,535 $ 12,796,556 $ 11,795,309 $ 10,757,956 $ 23,955,844 $ 23,554,512
Capital Asset and Debt Administration (Continued)
Long-term debt — At the end of the current fiscal year, the Town had total debt outstanding of
$12,439,755. Of this amount, $7,978,160 comprises debt backed by the full faith and credit of the
government, $4,325,000 is related to revenue bond obligations, and $136,595 is related to capital lease
obligations.
General obligation bonds
Revenue bonds
Capital leases
The Town's Outstanding Debt
General Obligation and Capital Leases
Governmental
Activities
2009 2008
$ 3,130,000 $ 3,265,000
1,575,000 1,640,000
136,595 178,180
Business -Type
Activities
2009 2008
$ 4,848,160 $ 5,129,491
2,750,000 2,750,000
Total
2009 2008
$ 7,978,160 $ 8,394,491
4,325,000 4,390,000
136,595 178,180
$ 4,841,595 $ 5,083,180 $ 7,598,160 $ 7,879,491 $ 12,439,755 $ 12,962,671
The Town's total debt decreased by $522,916 (4%) during the fiscal year. This decrease is
largely due to the principal payments on general obligation and revenue bonds amounting to $416,331
(5.0%) and $65,000 (1.5%), respectively. The payment of $41,585 (23.3%) on capital lease also
lowered the total debt.
Additional information on the Town's long-term debt can be found in Note 6 of this report.
Economic Factors and Next Year's Budgets and Rates
During the current year, the Town took measures to mitigate the impact of the economic
downturn. This included a formal budget reduction approved by Council in February in the amount of
$356,773 across all departments and in all funds. Departments were also asked to delay small capital
expenditures and to monitor operating expenditures for the remainder of the fiscal year.
The unemployment rate for Roanoke County (no statistics are available for the Town
individually) as of June 30, 2009 is 6.4% o, which is an increase from the annual rate of 2.5%
a year ago. This compares favorably to the state's average unemployment rate as of
June 30, 2009 of 7.1 % percent and to the national average rate of 9.5%.
The occupancy rate of the Town's central business district has remained at 90% for the past
five years.
• inflationary trends in the region compare favorably to national indices.
During the current fiscal year, the unreserved fund balance in the general fund decreased by
$(740,774). The general fund remains strong although less than in prior years with an ending fund
balance of $1,971,496. It is intended that this available fund balance will be used for future needs of the
Town.
Requests for Information
This financial report is designed to provide a general overview of the Town's finances for all
those with an interest in the government's finances. Questions concerning any of the information provided
in this report or requests for additional financial information should be addressed to the Finance
Department/Treasurer's Office, Town of Vinton, 311 S. Pollard Street, Vinton, Virginia 24179.
H
THIS PAGE INTENTIONALLY BLANK
BASIC
FINANCIAL STATEMENTS
EXHIBIT 1
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET ASSETS
June 30, 2009
Totals
(For Comparison
Governmental Business -type Only)
Activities Activities 2009 2008
ASSETS
Cash and cash equivalents (Nate 2)
$ 2,579,999
$ 806,191
$ 3,386,190 $
4,252,766
Receivables, net (Note 3)
246,911
433,073
679,984
713,016
Due from other governmental
units (Note 4)
345,678
-
345,678
548,272
Inventories
-
39,996
39,996
36,334
Prepaid expenses
52,676
14,088
66,764
79,946
Bond issue costs, net
107,903
79,438
187,341
198,316
Restricted assets:
Cash and cash equivalents (Note 2)
18,834
1,133,503
1,152,337
2,627,205
Capital assets: (Note 5)
Nondepreciable
1,793,134
241,209
2,034,343
2,346,150
Depreciable, net
10,367,401
11,554,100
21,921,501
21,208,362
Total assets
15,512,536
14,301,598
29,814,134
32,010,367
LIABILITIES
Accounts payable and accrued liabilities
317,476
143,201
460,677
478,932
Accrued payroll and related liabilities
218,000
40,939
258,939
223,805
Accrued interest payable
77,907
99,677
177,584
196,076
Unearned revenue (Note 3)
598,812
-
598,812
634,079
Long-term liabilities: (Note 6)
Due within one year
348,467
393,795
742,262
619,611
Due in more than one year
4,915,766
7,313,580
12,229,346
12,869,857
Total liabilities
6,476,428
7,991,192
14,467,620
15,022,360
NET ASSETS
Invested in capital assets, net of
related debt
7,365,632
5,342,230
12,707,862
13,261,074
Restricted for:
Flower fund
20,000
-
20,000
20,000
Unrestricted
1,650,476
968,176
2,618,652
3,706,933
Total net assets
$ 9,036,108
$ 6,310,406
$ 15,346,514 $
16,988,007
The Notes to Financial Statements are 12
an integral part of this statement.
Functions/Programs
Governmental activities
General government administration
Public safety
Public works
Parks, recreation, and cultural
Community development
Interest on long-term debt
Total governmental activities
Business -type activities
Water and sewer
Total business -type activities
Total
TOWN OF VINTON, VIRGINIA
STATEMENT OF ACTIVITIES
Year Ended June 30, 2009
Program Revenues
Operating Capital Grants
Charges for Grants and and
Expenses Services Contributions Contributions
$ 1,037,073
$ 172,357 $ - $
3,593,946
132,382 393,343
2,455,754
113,624 1,061,470
610,756
315,549 -
339,304
7,662 -
211,189
- -
8,248,022
741,574 11,454,813
3,189,315
2,289,754 -
3,189,315
2,289,754 -
$ 11,437337
$ 3,031,328 $ 1,454,813
General revenues
Property taxes (Note 10)
Sales tax
Meals tax
Utilities tax
Business license tax
Other local taxes
Unrestricted intergovernmental revenue
Unrestricted investment earnings
Restricted investment earnings
Other
Transfers (Note 14)
Total general revenues and transfers
Change in net assets
NET ASSETS AT JULY 1
NET ASSETS AT JUNE 30
The Notes to Financial Statements are 13
an integral part of this statement.
EXHIBIT 2
Net (Expense) Revenue and
Changes in Net Assets
Totals
(For
Business- Comparison
Governmental type Only)
Activities Activities 2009 2008
2,046 $ (862,670)� �'. $ (862,670) $ (713,026)
- (3,068,221) (3,068,221) (2,509,432)
- (1,280,660)_ (1,280,660) (1,744,002)
100 (295,107) �(295,107) (309,618)
- (331,642) (331,642) (284,396)
(211,189)'� (211,189) (220,551)
2,146 (6,049,489) (6,049,489) (5,781,025)
303,556 $ (596,005) (596,005) (878,731)
303,556 (596,005) (596,005) (878,731)
305,702 (6,049,489) (596,005) (6,645,494) (6,659,756)
434,176 - 434,176 467,806
1,.132,519 - 1,132,519 1,132,083
86L286 - 861,286 860,961
795,268 - 795,268 804,812
437,797 - 437,797 452,672
386,703 - 386,703 338,292
631,320 - 631,320 679,009
28,917 16,719 45,636 180,444
187 26,873 27,060 58,321
16,038 236,198 252,236 327,915
126,018 (126,018) - -
4,850,229 153,772 5,004,001 5,302,315
(1,199,260) (442,233) (1,641,493) (1,357,441)
10,235,368 6,752,639 16,988,007 18,345,448
$ 9,036,108 $ 6,310,406 $15,346,514 $ 16,988,007
EXHIBIT 3
TOWN OF VINTON, VIRGINIA
BALANCE SHEET
GOVERNMENTAL FUND
June 30, 2009
General Fund
(For
Comparison
Only)
2009
2008
ASSETS
Cash and cash equivalents
$
2,579,999
$ 3,186,607
Cash and cash equivalents, restricted
18,834
20,308
Receivables, net
246,911
248,119
Due from other governmental units
345,678
548,272
Prepaid items
52,676
67,669
Total assets
$
3,244,098
$ 4,070,975
LIABILITIES
Accounts payable and accrued liabilities
$
317,476
$ 345,480
Accrued payroll and related liabilities
218,000
188,148
Deferred revenue (Note 3)
737,126
782,820
Total liabilities
1,272,602
1,316,448
FUND BALANCES
Reserved for:
Encumbrances
199,969
227,233
Prepaid items
52,676
67,669
Flower fund
20,000
20,000
Unreserved:
Designated:
Vinton Business Center
150,000
150,000
Undesignated
1,548,851
2,289,625
Total fund balances
1,971,496
2,754,527
Total liabilities and fund balances
$
3,244,098
$ 4,070,975
The Notes to Financial Statements are 14
an integral part of this statement.
TOWN OF VINTON, VIRGINIA
EXHIBIT 4
RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
June 30, 2009
Total Fund Balances — Governmental Fund
Amounts reported for governmental activities in the statement of net assets are
different because:
Capital assets used in governmental activities are not financial resources,
and, therefore, are not reported in the funds.
Governmental capital assets $ 18,378,903
Less: accumulated depreciation (6,218,368)
Bond issuance costs and premiums are reported as expenditures or
revenues in the governmental funds, but are amortized over the life of
the debt obligation in the statement of net assets:
Issuance costs on debt issuances total $132,858 and
accumulated amortization is $24,955. 107,903
Bond premiums total $70,855 and accumulated amortization
is $9,944. (60,911)
Other long-term assets are not available to pay for current -period
expenditures and, therefore, are deferred in the funds.
Long-term liabilities are not due and payable in the current period and,
therefore, are not reported in the funds.
General obligation bonds
(3,130,000)
Revenue bonds
(1,575,000)
Capital lease obligations
(136,595)
Accrued interest payable
(77,907)
Compensated absences
(361,727)
Total Net Assets — Governmental Activities
The Notes to Financial Statements are
an integral part of this statement. 1.5
General Fund
(For
Comparison
Only)
2009 2008
$ 1,971,496 $ 2,754,527
12,160,535 12,796,556
46,992 50,094
138,314 148,741
(5,281,229) (5,514,550)
$ 9,036,108 $ 10,235,368
EXHIBIT 5
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND
Year Ended June 30, 2009
REVENUES
General property taxes
Other local taxes
Permits, privilege fees, and regulatory licenses
Fines and forfeitures
Revenues from use of money and property
Charges for services
Other
Gain sharing
Recovered costs
Contribution from Roanoke County
Non -categorical aid
Categorical aid
Total revenues
EXPENDITURES
Current:
General government administration
Public safety
Public works
Parks, recreation, and cultural
Community development
Capital projects
Debt service:
Principal retirement
Interest and fiscal charges
Debt issuance costs
Total expenditures
Excess of expenditures over revenues
OTHER FINANCING SOURCES
Issuance of debt
Proceeds from sale of capital assets
Transfers in
Total other financing sources
Net change in fund balances
FUND BALANCES AT JULY 1
FUND BALANCES AT DUNE 30
The Notes to Financial Statements are
an integral part of this statement.
on
General Fund
(For
Comparison
Only)
2009 2008
$ 435,373
$ 473,133
3,614,140
3,611,453
11,321
14,035
116,463
102,720
201,341
298,369
319,293
270,521
4,638
4,718
416,300
345,087
136,045
322,081
10,709
7,727
207,735
220,253
1,459,813
1,695,427
6,933,171
7,365,524
652,359
643,342
3,259,980
3,379,924
2,219,226
2,357,040
571,291
511,481
316,267
274,338
384,982
1,962,873
241,585
208,404
21.2,090
208,912
-
1,856
7,857,780
9,548,170
(924,609)
(2,182,646)
-
227,500
15,560
13,836
126,018
113,486
141,578
354,822
(783,031)
(1,827,824)
2,754,527
4,582,351
$ 1,971,496 $
2,754,527
TOWN OF VINTON, VIRGINIA
EXHIBIT 6
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUND TO THE
STATEMENT OF ACTIVITIES
Year Ended June 30, 2009
General Fund
(For
Comparison
Only)
2009 2008
Net change in fund balances governmental fund $ (783,031) $ (1,827,824)
Amounts reported for governmental activities in the statement of
activities are different because:
The net effect of the change in accrued interest expense, which
is not reflected in the fund statements.
Governmental funds report capital outlays as expenditures;
however, in the statement of activities, the cost of those assets
are allocated over their estimated useful lives as depreciation
expense. This is the amount by which depreciation
($1,025,432) exceeded capital outlays ($389,411) in the current
period.
Revenues in the statement of activities that do not provide
current financial resources are not reported as revenues in the
funds.
The issuance of long-term debt provides current financial
resources to governmental funds, while the repayment of the
principal of long-term debt consumes the current financial
resources of governmental funds. Neither transaction has any
effect on net assets. Also, governmental funds report issuance
costs, premiums, discounts, and similar items when debt is
issued, whereas these amounts are deferred and amortized in
the statement of activities. This amount is the net effect of
those differences.
Some expenses reported in the statement of activities, such as
compensated absences, do not require the use of current
financial resources and therefore are not reported as
expenditures in governmental funds.
Change in net assets of governmental activities
4,001 (6,686)
(636,021) 1,076,598
(10,427) 46,529
238,483 (22,193)
(12,265) 16,508
$ (1,199,260) $ (717,068)
The Notes to Financial Statements are 17
an integral part of this statement.
EXHIBIT 7
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL - GENERAL FUND (NON-GAAP BUDGETARY BASIS)
Year Ended June 30, 2009
REVENUES
General property taxes
Other local taxes
Permits, privilege fees, and
regulatory licenses
Fines and forfeitures
Revenues from use of money
and property
Charges for services
Other
Gain sharing
Recovered costs
Contribution from Roanoke County
Non -categorical aid
Categorical aid
Total revenues
EXPENDITURES
Current:
General government administration
Public safety
Public works
Parks, recreation, and cultural
Community development
Capital projects
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
OTHER FINANCING SOURCES
Proceeds from sale of capital assets
Transfers in
Total other financing sources
Net change in fund balance
Budgeted Amounts
Original Final Actual
$ 481,489
4,265,130
17,100
112,500
400,000
507,050
10,000
384,500
265,300
243,263
1,457,515
8,143,847
714,370
3,447,968
2,266,637
661,683
319,019
501,278
$ 4815489 $ 435,373 $
4,068,530 3,614,140
17,100 11,321
1125500
342,000
471,268
10,000
384,500
265,300
237,547
1,457,515
7,847,749
692,925
3,383,921
2,305,929
632,502
316,450
6625943
116,463
201,341
319,293
4,638
416,300
136,045
10,709
207,735
1,459,813
6,933,171
642,103
3,254,801
2,178,814
570,260
299,554
431,309
200,000
200,000
241,586
203,892
203,892
212,089
8,314,847
8,398,562
7,830,516
9,000
9,000
1.5,560
162,000
162,000
126,018
171,000
171,000
141,578
$ -
$ (379,813)
$ (755,767) $
Variance with
Final Budget
Positive
(Negative)
(46,116)
(454,390)
(5,779)
3,963
(140,659)
(151,975)
(5,362)
31,800
(129,255)
10,709
(29, 812)
2,298
(914,578)
50,822
129,120
127,115
62,242
16,896
231,634
(41,586)
(8,197)
568,046
6,560
(35,982)
(29,422)
(375,954)
The Notes to Financial Statements are 18
an integral part of this statement.
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET ASSETS
PROPRIETARY FUND
June 30, 2009
ASSETS
Current assets:
Cash and cash equivalents
Cash and cash equivalents, restricted
Receivables, net
Inventories
Prepaid items
Total current assets
Noncurrent assets:
Bond issue costs, net
Capital assets:
Nondepreciable
Depreciable, net
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities
Accrued payroll and related liabilities
Accrued interest payable
Current portion of noncurrent liabilities
Total current liabilities
Noncurrent liabilities:
Due in more than one year
Total noncurrent liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
Total net assets
EXHIBIT 8
Business -type Activities —
Enterprise Fund
Water and Sewer
(For Comparison
Only)
2009 2008
$ 806,191 $
1,066,159
1,133,503
2,606,897
433,073
464,897
39,996
36,334
14,088
12,277
2,426,851
4,186,564
79,438
83,769
241,209
557,107
11,554,100
10,200,849
11, 874,747
10, 841,725
14,301,598
15,028,289
143,201
133,452
40,939
35,657
99,677
114,168
393,795
289,395
677,612
572,672
7,313,580
7,702,978
7,313,580
7,702,978
7,991,192
8,275,650
5,342,230
5,497,604
968,176
1,255,035
$ 6,310,406 S
6,752,639
The Notes to Financial Statements are
an integral part of this statement.
19
TOWN OF VINTON, VIRGINIA
EXHIBIT 9
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUND
Year Ended June 30, 2009
OPERATING REVENUES
Water service charges and fees
Sewer service charges and fees
Water/sewer penalties
Other revenue
Total operating revenues
OPERATING EXPENSES
Salaries
Fringe benefits
Contractual services
Maintenance
Rent, utilities, and insurance
Materials and supplies
Equipment repairs and rentals
Sewage treatment
Purchase of water
Other
Depreciation
Amortization
Total operating expenses
Operating loss
NON -OPERATING REVENUE (EXPENSE)
Interest income
Interest expense
Loss on disposal of capital asset
Net non -operating revenue (expense)
Loss before transfers and contributions
TRANSFERS OUT
CAPITAL CONTRIBUTIONS
Change in net assets
NET ASSETS AT JULY 1
NET ASSETS AT JUNE 30
Business -type Activities -
Enterprise Fund
Water and Sewer
(For Comparison
Only)
2009 2008
$ 1,015,264 $
1,041,361
1,235,277
1,178,823
39,213
35,321
236,198
250,838
2,525,952
2,506,343
792,182
797,398
277,793
259,860
51,767
6,700
67,360
165,454
312,948
266,542
100,936
98,495
32,775
30,676
350,098
401,583
145,714
189,900
181,022
105,375
633,509
587,889
4,331
2,332
2,950,435
2,912,204
(424,483) (405,861)
43,592
115,006
(213,792)
(222,032)
(25,088)
(14,000)
(195,288)
(121,026)
(619,771)
(526,887)
(126,018)
(113,486)
303,556
-
(442,233)
(640,373)
6,752,639
7,393,012
$ 6,310,406 $
6,752,639
The Notes to Financial Statements are
an integral part of this statement.
20
EXHIBIT 10
TOWN OF VINTON, VIRGINIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUND
Year Ended June 30, 2009
OPERATING ACTIVITIES
Receipts from customers
Receipts from other sources
Payments to suppliers
Payments to employees
Net cash provided by operating activities
NONCAPITAL FINANCING ACTIVITIES
Transfers to other funds
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchases of capital assets
Principal paid on long-term liabilities
Proceeds from long-term liabilities
Debt issuance costs
Interest paid
Net cash provided by (used in) capital and related
financing activities
INVESTING ACTIVITIES
Interest received on investments
Net increase (decrease) in cash and cash equivalents
CASH AND CASH EQUIVALENTS
Beginning at July 1
Ending at June 30
RECONCILIATION TO EXHIBIT 8
Cash and cash equivalents
Cash and cash equivalents, restricted
Reconciliation of operating loss to net cash
provided by operating activities
Operating loss
Adjustments to reconcile operating loss to
net cash provided by operating activities:
Depreciation
Amortization
Change in certain assets and liabilities:
(Increase) decrease in:
Receivables, net
Inventories
Prepaid items
(Decrease) increase in:
Accounts payable and accrued liabilities
Net cash provided by operating activities
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
Capital asset purchases included in accounts payable
Capital asset additions donated by developers
The Notes to Financial Statements are 21
an integral part of this statement.
$
Business -type Activities —
Enterprise Fund
Water and Sewer
(For Comparison
Only)
2009 2008
2,321,578 $
2,201,362
236,198
250,838
(1,130,811)
(1,401,363)
(1,064,693)
(1,045,676)
362,272
5,161
(126,018) (113,486)
(1,499,927) (309,301)
(281,331) (272,788)
2,832,015
(79,904)
(231,950) (149,476)
(2,013,208) 2,020,546
43,592 115,006
(1,733,362) 2,027,227
3,673,056 1,645,829
1,939,694 $ 3,673,056
806,191 $
1,066,159
1,133,503
2,606,897
1939,694 $
3,673,056
(424,483) $
(405,861)
633,509 587,889
4,331 2,332
31,824 (54,143)
(3,662) (10,144)
(1,811) (2,653)
122,564 (112,259)
362,272 $ 5,161
- $ 107,533
303,556 $ -
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Note 1. Summary of Significant Accounting Policies
A. The Financial RenortinL- Entitv
The Town of Vinton was established in 1884. It is a political subdivision of the Commonwealth
of Virginia operating under the Council -Manager form of government. The Town Council
consists of a mayor and four other council members. The Town is part of Roanoke County and
has taxing powers subject to state-wide restrictions and tax limits.
Vinton provides a full range of municipal services including police, refuse collection, recycling,
public improvements, planning and zoning, general administrative services, fire, first aid,
recreation, and water and sewer services. Fire and first -aid services are supplemented by
volunteer departments.
Jointiv Governed Organizations
Roanoke Valley Resource Authority:
The Town of Vinton, Roanoke County, and the City of Roanoke jointly participate in the
Roanoke Valley Resource Authority, which operates a regional solid waste disposal system that
includes a sanitary landfill, waste collection, and transfer station. The Authority is governed by a
board composed of seven members appointed by the governing bodies of participating
jurisdictions. Town Council appoints one member. The Town has control over the budget and
financing of the Authority only to the extent of representation by the board member appointed.
The participating localities are each responsible for their pro-rata share, based on population, of
any year-end operating deficit. For the fiscal year ended June 30, 2009, the Town remitted
$182,095 to the Authority for services. A separate financial statement can be obtained from the
Roanoke Valley Resource Authority, 11.0 Hollins Road, NE, Roanoke, Virginia 24012.
Roanoke Valley Regional Pound Facility:
The Counties of Roanoke and Botetourt, the City of Roanoke, the Town of Vinton, and the
Roanoke Valley Society for the Prevention of Cruelty to Animals, Inc.. formed the Advisory
Board of the Roanoke Valley Regional Pound Facility to construct and operate a regional pound
facility. The Board is composed of nine members. Each locality's financial obligation is based
on the number of animals caged per day at the facility. The Town's proportionate share totaled
$43,867 for the year ended June 30, 2009. Separate financial statements are not available.
(Continued) 22
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Note 1. Summary of Significant Accounting Policies (Continued)
A. The Financial Renortine Entitv (Continued)
Joint Venture
Regional Fire Training Facility:
The Town participates in an intergovernmental agreement with the County of Roanoke and the
Cities of Roanoke and Salem for the operation of a regional fire training facility. The Roanoke
Valley Regional Fire Training Academy Board is responsible for overseeing the management,
operation, and administration of the Academy. Each participating jurisdiction maintains a
leasehold interest in the project and shares costs of operation and maintenance equal to the
jurisdiction's payment percentage as defined in the agreement. The Town's participating interest
is 4%. The Town's share of the operating cost was approximately $4,000 in the current year.
Separate financial statements are not available.
B. Individual Component Unit Disclosures
As required by generally accepted accounting principles, these financial statements present the
Town as the primary government. A component unit is an entity for which the primary
government is considered to be financially accountable. There are no component units within this
reporting entity.
C. Government -Wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net assets and the statement of
changes in net assets) report information on all of the activities of the Town. For the most part,
the effect of interfund activity has been removed from these statements. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported separately
from business -type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include (1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment and (2) grants and contributions that are restricted to
meeting the operationalor capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as general
revenues.
Separate financial statements are provided for the governmental fund and proprietary fund.
(Continued) 23
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Note 1. Summary of Significant Accounting Policies (Continued)
D. Measurement Focus. Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund financial
statements. Revenues are recorded when earned, and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the Town considers taxes as available if they are collected
within 45 days of the end of the current fiscal period. A one-year availability period is used for
recognition of all other governmental fund revenues. Expenditures generally are recorded when a
liability is incurred, as under accrual accounting. However, debt service expenditures, as well as
expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are
all considered to be susceptible to accrual and have been recognized as revenues of the current
fiscal period. All other revenue items are considered to be measurable and available only when
cash is received by the Town.
The Town reports the following major governmental fund:
The general fund is the Town's primary operating fund. It accounts for all financial
resources of the Town, except those required to be accounted for in another fund.
The Town reports the following major proprietary fund:
The enterprise fund accounts for the financing of services to the general public where all or
most of the operating expenses involved are intended to be recovered in the form of user
charges, or where management has decided that periodic determination of revenues earned,
expenses incurred, and/or net income is appropriate for management control, accountability,
or other purposes. The enterprise fund consists of the activities relating to water and sewer
services.
Private -sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the government -wide and proprietary fund financial statements to
the extent that those standards do not conflict with or contradict guidance of the Governmental
Accounting Standards Board. Governments also have the option of following subsequent private -
sector guidance for their enterprise funds, subject to this same limitation. The Town has elected
not to follow subsequent private -sector guidance.
(Continued) 24
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Note 1. Summary of Significant Accounting Policies (Continued)
D. Measurement Focus. Basis of Accounting, and Financial Statement Presentation
(Continued)
Amounts reported as program revenues include (1) charges to customers or applicants for goods,
services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as
general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non -operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the water and sewer enterprise fund are charges to customers for
sales and services. Operating expenses for enterprise funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as non -operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the Town's policy to
use restricted resources first, then unrestricted resources as they are needed.
E. Budgets and Budgetary Accounting,
The following procedures are used in establishing the budgetary data reflected in the financial
statements:
1) Prior to June 30, the Town Manager submits to Council a proposed operating and capital
budget for the fiscal year commencing the following July 1. This budget includes proposed
expenditures and the means of financing them.
2) Public hearings are conducted to obtain citizen comments.
3) Prior to June 30, the budgets for the general and enterprise funds are legally enacted through
passage of an appropriations ordinance. Town Council may, from time to time, amend the
budget providing for additional expenditures and the means for financing them. Town
Council approved additional general fund appropriations of approximately $84,000 during the
fiscal year ended June 30, primarily for capital projects deferred from the prior year and
additional operating expenditures.
4) The appropriations ordinance places legal restrictions on expenditures at the department or
function level. Management can over -expend at the line item level without approval of Town
Council. The appropriation for each department or function can be revised only by Town
Council_ The Town Manager is authorized to transfer budget amounts within departments.
All budget data presented in Exhibit 7 is at the legal level of budgetary control.
(Continued) 25
Note 1.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Summary of Significant Accounting Policies (Continued)
E. Budgets and Budeetary Accounting, (Continued)
5) Formal budgetary integration is employed as a management control device during the year for
the general and enterprise funds.
6) Budgets are adopted on a basis consistent with generally accepted accounting principles
(GAAP), except that encumbrances are recognized as expenditures for budgetary purposes in
the general fund.
7) Appropriations lapse on June 30.
8) All budget data presented in the accompanying financial statements are revised as of June 30.
The following reconciles the results of operations on the budgetary basis to the GAAP basis:
General Fund
Net decrease in fund balance (non-GAAP budgetary basis) $ (755,767)
Encumbrances at June 30, 2008 (227,233)
Encumbrances at June 30, 2009 199,969
Net decrease in fund balance (GAAP basis) $ (783,031)
F. Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable
appropriations, is employed as an extension of formal budgetary integration in the general fund.
Encumbrances outstanding at year end are reported as reservations of fund balance since they do
not constitute expenditures or liabilities.
G. Cash and Cash Equivalents
Cash and cash equivalents are defined as short-term, highly liquid investments (including
restricted assets) with an original maturity of three months or less when purchased.
H. Allowance for Uncollectible Accounts
The Town calculates its allowance for Uncollectible accounts using historical collection data and
specific account analysis.
(Continued) 26
Note 1.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Summary of Significant Accounting Policies (Continued)
L Inventories
Inventories in the enterprise funds are valued at the lower of cost (first -in, first -out) or market
method.
J. Capital Assets
Capital assets, which include property, plant, and equipment, and infrastructure assets acquired
subsequent to July 1, 2001, are reported in the applicable governmental or business -type activities
columns in the government -wide financial statements. Capital assets are defined by the Town as
assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of
one year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at estimated fair market value at the date of
donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized.
Property, plant, and equipment are depreciated using the straight-line method over the following
estimated useful lives:
Buildings and improvements 10-40 years
Machinery and equipment 3-10 years
Utility plant 20-40 years
Public domain infrastructure 25-40 years
Sewage treatment contract 30 years
K. Capitalization of Interest
The Town follows the policy of capitalizing net interest costs on funds borrowed to finance the
construction of proprietary capital assets. Interest is not capitalized on the construction of assets
used in governmental activities. There was $73,233 of interest capitalized for the year ended
June 30.
L. Compensated Absences
The Town has policies which allow for the accumulation and vesting of limited amounts of
vacation and sick leave until termination or retirement. Amounts of such absences are accrued
when incurred in the government -wide and proprietary fund financial statements. A liability for
these amounts is reported in governmental funds only when the leave is due and payable.
(Continued) 27
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Note 1. Summary of Significant Accounting Policies (Continued)
M. Long -Term Obligations
In the government -wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business -type activities, or proprietary fund type statement of
net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized
over the life of the bonds using the effective interest method. Bonds payable are reported net of
the applicable bond premium or discount. Bond issuance costs are reported as deferred charges
and amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are reported
as other financing sources, while discounts on debt issuances are reported as other financing uses.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as
debt service expenditures.
N. Fund Eauity
In the fund financial statements, governmental funds report reservations of fund balance for
amounts that are not available for appropriation or are legally restricted by outside parties for use
for a specific purpose. Designations of fund balance represent tentative management plans that
are subject to change.
O. Estimates
Management uses estimates and assumptions in preparing its financial statements. Those
estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of
contingent liabilities, and reported revenues and expenses. Actual results could differ from those
estimates.
P. Comparative Information
The basic financial statements include certain prior year summarized comparative information in
total but not at the level of detail required for a presentation in conformity with generally
accepted accounting principles. Accordingly, such information should be read in conjunction
with the government's financial statements for the prior year from which the summarized
information was derived.
Q. Reclassifications
Certain accounts in the prior -year comparison information have been reclassified for comparative
purposes to conform with the presentation in the current -year financial statements.
(Continued) 28
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Note 2. Deposits and Investments
Deposits
All cash of the Town is maintained in accounts covered by federal depository insurance or
collateralized in accordance with the Virginia Security for Public Deposits Act §2.2-4400 et seq. of
the Code of Virginia.
Investments
Investment Policv:
Statutes authorize the Town to invest in obligations of the United States or agencies thereof,
obligations of the Commonwealth of Virginia or political subdivisions thereof, obligations of the
International Bank for Reconstruction and Development (World Bank), the Asian Development Bank,
the African Development Bank, "prime quality" commercial paper and certain corporate notes, and
banker's acceptances, repurchase agreements, and the State Treasurer's Local Government
Investment Pool (LGIP). Pursuant to Section 2.1-234.7 Code of Virginia, the Treasury Board of the
Commonwealth sponsors the LGIP and has delegated certain functions to the State Treasurer. The
LGIP reports to the Treasury Board at their regulatory scheduled monthly meetings and the fair value
of the position in LGIP is the same as the value of the pool shares (i.e., the LGIP maintains a stable
net asset value of $1 per share). The investment policy (the "Policy") specifies that no investment
may have a maturity greater than one year from the date of purchase.
Credit Risk:
As required by state statute, the Policy requires that commercial paper have a short-term debt rating
of no less than "A-l" (or its equivalent) from at least two of the following: Moody's Investors
Service, Standard & Poor's, and Fitch Investors Service, provided that the issuing corporation has a
net worth of at least $50 million and its long term debt is rated "A" or better by Moody's and
Standard & Poor's. Banker's acceptances and Certificates of Deposit maturing in less than one year
must have a short-term debt rating of at least "A-1" by Standard & Poor's and "P-l" by Moody's
Investors Service.
As of June 30, 100% of the portfolio was invested in "AAAm" rated securities. All credit ratings
presented in this paragraph are Standard and Poor's short term issue credit ratings.
Although the intent of the Policy is for the Town to diversify its investment portfolio to avoid
incurring unreasonable risks regarding (i) security type, (ii) individual financial institution or issuing
entity, and (iii) maturity, the Policy places no limit on the amount the Town may invest in any one
issuer.
(Continued) 29
Note 2.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Deposits and Investments (Continued)
Investments (Continued)
Interest Rate Risk:
As of June 30, the carrying values and weighted average maturity investments were as follows:
Investment Type
Virginia LGIP
Money Market Funds — Wells Fargo (Heritage)
Total investments
Portfolio weighted average maturity
Weighted average maturity in days.
Custodial Credit Risk:
Weighted
Credit Average
Fair Value Rating Maturity*
$ 2,820,674 AAAm 22.16
1,133,503 AAAm 3.30
$ 3,954,177
The Policy requires that all investment securities shall be held in safekeeping by a third party and
evidenced by safekeeping receipts. As required by the Code of Virginia, all security holdings with
maturities over 30 days may not be held in safekeeping with the "counterparty" to the investment
transaction. As of June 30, all of the Town's investments are held in a bank's trust department in the
Town's name.
Investments
Deposits
Total deposits and investments
Reconciliation of deposits and investments to Exhibit 1:
Cash and cash equivalents, excluding $2,550 cash on hand
Cash and cash equivalents, restricted
Total deposits and investments
Restricted cash and cash equivalents consists primarily of unused bond proceeds.
Fair
Value
$ 3,954,177
581,800
$ 4,535,977
$ 3,383,640
1,152,337
$ 4,535,977
(Continued) 30
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Note 3. Receivables
Receivables consist of the following:
Governmental Business -type
Activities Activities Total
Receivables
Taxes $ 308,173 $ - $ 308,173
Accounts 11,294 482,213 493,507
Gross receivables 319,467 482,213 801,680
Allowance for uncollectibles (72,556) (49,140) (121,696)
Receivables, net $ 246,911 $ 433,073 $ 679,984
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Governmental funds also defer
revenue recognition in connection with resources that have been received but not yet earned. At the
end of the current fiscal year, the various components of deferred revenue and unearned revenue
reported in the governmental funds were as follows:
Included in receivables:
Delinquent property taxes receivable $
Vehicle license fee
Sales tax
Communication taxes
Other taxes and fees
Included in cash:
Subsequent years' tax collections
Total deferred/unearned revenue
for governmental funds
Unavailable Unearned
Total
2,688 $ 96,184 $
98,872
13,142 -
13,142
95,897 -
95,897
24,541 -
24,541
2,046 -
2,046
138,314 96,184
234,498
$ 138,314 $
502,628 502,628
598,812 $ 737,126
(Continued) 31
Note 4.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Due from Other Governmental Units
A summary of funds due from other governmental units was as follows:
Commonwealth of Virginia
Communication taxes
Wireless 911 grant
Rolling stock taxes
Miscellaneous non -categorical aid
County of Roanoke
Local sales taxes
Vinton Business Center
Transport fees
Refuse collections
Court fines
$ 51,434
12,437
4,185
150
68,206
190,245
2,046
19,266
55,000
10,915
277,472
$ 345,678
(Continued) 32
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Note 5. Capital Assets
Capital asset activity for the year was as follows:
Beginning Ending
Governmental Activities Balance Increases Decreases Balance
Capital assets, not depreciated
Land
Construction in progress
Total capital assets, not depreciated
Capital assets, depreciated
Buildings and improvements
Machinery and equipment
Infrastructure
Total capital assets, depreciated
Less accumulated depreciation for:
Buildings and improvements
Machinery and equipment
Infrastructure
Total accumulated depreciation
Total capital assets, depreciated, net
Governmental activities
capital assets, net
Business -type activities
Capital assets, not depreciated
Land
Construction in progress
Total capital assets, not depreciated
Capital assets, depreciated
Utility plant
Sewage treatment contract
Machinery and equipment
Total capital assets, depreciated
Less accumulated depreciation for:
Utility plant
Sewage treatment contract
Machinery and equipment
Total accumulated depreciation
Total capital assets, depreciated, net
Business -type activities
capital assets, net
1,706,092 $
- $
-
$ 1,706,092
82,951
4,091
-
87,042
1,789,043
4,091
-
1,793,134
9,304,851
-
-
9,304,851
4,492,287
385,249
27,453
4,850,083
2,430,764
71
-
2,430,835
16,227,902
385,320
27,453
16,585,769
2,084,308
296,909
-
2,381,217
2,696,271
636,750
27,453
3,305,568
439,810
91,773
-
531,583
5,220,389
1,025,432
27,453
6,218,368
11,007,513
(640,112)
-
10,367,401
$ 12,796,556 $ (636,021) $ - $ 12,160,535
$ 80,752 $
- $
- $ 80,752
476,355
1,358,727
1,674,625 160,457
557,107
1,358,727
1,674,625 241,209
14,821,632
1,953,093
- 16,774,725
3,816,857
-
- 3,816,857
1,012,271
33,667
- 1,045,938
19,650,760
1,986,760
- 21,637,520
8,287,933
455,760
- 8,743,693
501,689
131,603
- 633,292
660,289
46,146
- 706,435
9,449,911
633,509
- 10,083,420
10,200,849
1,353,251
- 11,554,100
$ 10,757,956 $ 2,711,978 $ 1,674,625 $ 11,795,309
(Continued) 33
Note 5.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Capital Assets (Continued)
Included in Governmental Activities' capital assets is equipment with a cost of $227,500 and
accumulated amortization of $87,208 financed by a capital lease.
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities
General government $ 344,667
Public safety 368,273
Public works 278,196
Parks, recreation, and cultural 34,296
$ 1,025,432
Business -type activities
Water and sewer $ 633,509
Construction Commitments
The Town has active construction projects as of June 30, as follows:
Remaining
Commitment
Business -type
Project Spent to Date Activities
Upgrade Third Street and Niagara Road
sewer lift stations $ 78,016 $ 842,984
Replacement of Twin Mountain storage tanks 309 369,304
$ 78,325 $ 1,212,288
Sewage Treatment Contract
Through its participation in an agreement with four other localities for expansion of the regional
sewage treatment plant and interceptors, the Town received contractual rights to predetermined
capacity in both the plant and interceptors through 2034. This expansion was completed in 2001 at a
cost to the Town of approximately $1.2 million.
The plant and interceptors were not functioning in an acceptable manner. Modifications costing
approximately $46 million were completed in June 2008. The Town's share of the costs were
approximately 5.6% or $2.6 million, which was partially funded with general obligation bonds issued
in fiscal year 2005 through the Virginia Resources Authority.
The Town is required to contribute $66,000 annually to a capital reserve fund for ongoing
maintenance of the system.
(Continued) 34
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Note 6. Long -Term Liabilities
The following is a summary of changes in long-term liabilities for the year:
Governmental
Activities
General obligation
bonds
Revenue bonds
Capital leases
Compensated
absences
Business -type
Activities
General obligation
bonds
Revenue bonds
Compensated
absences
Beginning
Balance
$ 3,265,000 $
1,640,000
178,180
349,462
$ 5,432,642 $
Ending Due Within
Additions Reductions Balance One Year
$ 135,000 $ 3,130,000 $ 140,000
65,000 1,575,000 70,000
- 41,585 136,595 43,500
21,355 9,090 361,727 94,967
21,355 $ 250,675 $ 5,203,322 $ 348,467
$ 5,129,491 $ - $ 281,331 $ 4,848,160 $ 290,135
2,750,000 - - 2,750,000 95,000
41,355 5,429 5,429 41,355 8,660
$ 7,920,846 $ 5,429 $ 286,760 $ 7,639,515 $ 393,795
The annual requirements to amortize long-term debt and related interest are as follows:
Governmental Activities
Business -type Activities
General Obligation
General Obligation
Bonds
Revenue Bonds
Capital Leases
Bonds
Revenue
Bonds
Fiscal
Year
Principal
Interest
Principal
Interest
Principal Interest
Principal
Interest
Principal
Interest
2010
$ 140,000 $
131,085
$ 70,000 $
67,607
$ 43,500 $ 6,285
$ 2901,135
$ 157,462
$ 95,000
$ 123,425
2011
145,000
125,879
70,000
65,274
45,501 4,283
301,491
146,775
100,000
119,525
2012
145,000
120,573
75,000
62,941
47,594 2,190
312,576
135,679
105,000
115,425
2013
155,000
114,672
75,000
60,064
- -
324,087
124,157
110,000
111,125
2014
160,000
108,260
75,000
57,079
- -
264,572
111,995
115,000
106,625
2015-2019
880,000
440,138
430,000
235,683
- -
1,263,446
439,519
630,000
461,788
2020-2024
1,100,000
229,986
550,000
131,982
- -
1,476,210
225,758
795,000
303,125
2025-2029
405,000
27,078
230,000
19,070
- -
615,643
26,002
800,000
82,500
$ 3,130,000 $ 1,297,671 $ 1,575,000 $ 699,700 $ 136,595 $ 12,758 $ 4,848,160 $ 1,367.347 $ 2,750,000 $ 1,423,538
(Continued) 35
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Note 6. Long -Term Liabilities (Continued)
Details of long-term indebtedness are as follows:
General Obligation Bonds:
Virginia Resources Authority Taxable:
G.O. Water and Sewer Bonds
Virginia Revolving Loan Fund:
G.O. Water and Sewer Bonds
G.O. Water and Sewer Bonds
G.O. Water and Sewer Bonds
Virginia Association of Counties:
G.O. Public improvement Bonds
G.O. Public Improvement Bonds
Revenue Bonds:
Virginia Resources Authority:
Infrastructure Revenue Bonds
Infrastructure Revenue Bonds
Virginia Association of Counties:
Revenue Water and Sewer Bonds
Capital Leases:
First Capital Equipment Leasing
Final Amount of Business -
Interest Maturity Original Governmental type
Rates Date Issued Date Issue Activities Activities
3.00% 01/17/97
3.30%
07/24/03
3.10%
10/01 /04
3.10%
01/12/06
2.50-4.3 8% 0
12/ 15/04
3.75-5.25%fl
02/08/07
12/01 / 13 $ 1,120,000 $
07/01 /24
1,250,704
10/01 /26
2,479,000
03/01 /26
1,210,000
08/21/24
2,500,000
02/01 /27
1,045,000
Plus bond premium, net of amortization
2.3 8-4.48% 0 11 /04/04
3.64-4.96% 06/01 /06
3.50-5.00% 1.2/19/07
Plus bond premium, net of amortization
$ 413,883
- 1,054,829
- 2,287,940
- 1,091,508
2,120,000 -
I,010,000 -
3,130,000 4,848,160
39,860 -
$ 3,169,860 $ 4,848,160
10/01 /24 $ 1,015,000 $
l 0/01 /26 755,000
08/01 /27 2,750,000 - 2,750,000
1,575,000 2,750,000
21,051 67,860
1,596,051 $ 2,817,860
870,000 $ -
705,000 -
4.60% 07/16/07 08/01/11 $ 227,500 $ 136,595 $
(Continued) 36
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Note 7. Defined Benefit Pension Plan
Plan Description
The Town of Vinton contributes to the Virginia Retirement System (VRS), an agent and cost -sharing
multiple -employer defined benefit pension plan administered by the Virginia Retirement System (the
"System"). All full-time, salaried permanent employees of participating employers must participate
in the VRS. Benefits vest after 5 years of service. Employees are eligible for an unreduced
retirement benefit at age 65 with 5 years of service (age 60 for participating law enforcement officers
and firefighters) and at age 50 with 30 years of service for participating employees (age 50 with 25
years for participating law enforcement officers and firefighters) payable monthly for life in an
amount equal to 1.7% of their average final compensation (AFC) for each year of credited service.
AFC is defined as the highest consecutive 36 months of reported compensation. Benefits are
actuarially reduced for retirees who retire prior to becoming eligible for full retirement benefits. In
addition, retirees qualify for annual cost -of -living (COLA) increases beginning in their second year of
retirement. The COLA is limited to 5% per year. Participating law enforcement officers and
firefighters may receive a monthly benefit supplement if they retire prior to age 65. The VRS also
provides death and disability benefits. Title 51.1 of the Code of Virginia (1950), as amended, assigns
the authority to establish and amend benefit provisions to the General Assembly of Virginia.
The System issues a publicly available comprehensive annual financial report that includes financial
statements and required supplementary information for VRS. A copy of that report may be
downloaded from their website or obtained by writing to the System at P.O. Box 2500, Richmond,
Virginia 23218-2500.
Fundin P� olicy
Plan members are required by Title 51.1 of the Code of Virginia (1950), as amended, to contribute
S% of their annual reported compensation to the VRS. This 5% member contribution has been
assumed by the employer. In addition, the Town is required to contribute the remaining amounts
necessary to fund its participation in the VRS using the actuarial basis specified by the statute and
approved by the VRS Board of Trustees. The Town's contribution rate for the fiscal year ended 2009
including the employee's portion was 13.57% of annual covered payroll.
Annual Pension Cost
For 2009, the Town's annual pension cost of $473,590 was equal to the Town's required and actual
contributions. The required contribution was determined as part of the June 30, 2007 actuarial
valuation using the entry age normal actuarial cost method. The actuarial assumptions include:
(a) 7.50% investment rate of return, (b) projected salary increases of 3.75% to 5.60% per year, and
(e) 2.50% per year cost -of -living adjustments. Both (a) and (b) included an inflation component of
2.50%. The actuarial value of the Town's assets is equal to the modified market value of assets. This
method was determined using techniques that smooth the effects of short-term volatility in the market
value of assets over a five-year period. The Town's unfunded actuarial accrued liability is being
amortized as a level percentage of payroll on an open basis within a period of 20 years.
(Continued) 37
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Note 7. Defined Benefit Pension Plan (Continued)
Trend Information for the Town
Annual Pension
Percentage of
Cost
APC Net Pension
Fiscal Year Ending
(APC)
Contributed Obligation
June 30, 2009
$ 473,590
100% $ -
June 30, 2008
$ 371,405
100% $ -
June 30, 2007
$ 380,044
100% $ -
Funded Status and Fundine Progress
As of June 30, 2008, the most recent actuarial valuation date, the plan was 96.14% funded. The
actuarial accrued liability for benefits was $12,518,772, and the actuarial value of assets was
$12,035,517, resulting in an unfunded actuarial accrued liability (UAAL) of $483,255. The covered
payroll (annual payroll of active employees covered by the plan) was $3,225,456, and ratio of the
UAAL to the covered payroll was 14.98%.
The schedule of funding progress, presented as Required Supplementary Information following the
notes to the financial statements, presents multi -year trend information about whether the actuarial
value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for
benefits.
Note 8. Service Contracts
SewaL-e Treatment
The Town is party to an agreement, dated November 1, 2003, with the Western Virginia Water
Authority for the Authority to provide the transportation and treatment of waste at a specified rate to
be adjusted annually on July 1, based on the actual operating and maintenance costs for the previous
year. The 30-year agreement provides for a surcharge in the event waste content or volume exceeds
certain limits or the cost is less than the amount paid by users.
Water Purchases/Sales
Effective, January 1, 1979, the Town agreed to purchase water from the Western Virginia Water
Authority at a bulk rate which is determined by a mutually agreed -upon formula. The water is
designated for an industrial user who pays the Town a rate agreed upon by the user and the Town.
Note 9. Property Taxes
The major sources of property taxes are real estate and personal property taxes. The assessments are
the responsibility of the County of Roanoke, while billing and collection functions are the Town's
responsibilities.
Property taxes are levied annually in April on assessed values as of January 1. Personal property
transactions during the year are taxed on a prorated basis. Real estate tax is payable in two equal
installments on or before June 5 and December 5, and personal property tax is due on or before
May 31, or within 30 days subsequent to assessment. Personal property taxes do not create a lien on
property.
(Continued) 38
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Note 9. Property Taxes (Continued)
The annual assessment for real estate is based on 100% of the assessed fair market value. A penalty
of 10% of the unpaid tax is due for late payment. Interest is accrued at 10% o for the initial year of
delinquency, and thereafter at the maximum annual rate authorized by the Internal Revenue Code
Section 6621(b). The effective tax rates per $100 of assessed value for the year ended June 30 were
as follows:
Real estate $ .03
Personal property $ 1.00
Machinery and tools $ 1.00
Note 10. Leases
The Town leases a building to the Virginia State Department of Health for $3,205 per month under a
noncancelable lease that expired on July 31, 2007. The Town has a month -to -month agreement until
the tenant vacates the premises, which is expected to occur in December 2010.
Note 11. Risk Management
The Town of Vinton is insured for workers' compensation, general liability, health, and other risks.
The risk management programs are as follows:
Workers' Compensation
Workers' compensation insurance is provided through the Virginia Municipal League. During 2008-
2009, total premiums paid were approximately $146,000. Benefits are those afforded through State
of Virginia as outlined in the Code of Virginia Section 65.2-100; premiums are based upon covered
payroll, job rates, and claims experience.
General Liabilitv
The Town provides general liability and other insurance through policies with Virginia Municipal
Self -Insurance Association. During 2008-2009, total premiums paid were approximately $155,000.
General liability and business automobile have a $1,000,000 limit per occurrence. Boiler and
machinery coverage and property insurance are covered per statement of values. The Town maintains
an additional $4,000,000 umbrella policy over all forms of liability insurance. Police professional
liability and public officials' liability insurance with a $1,000,000 limit are covered through a policy
with the Commonwealth of Virginia.
There were no significant reductions in insurance coverages from the prior year and no settlements
that exceeded the amount of insurance coverage during the last three fiscal years.
Healthcare
The Town provides healthcare coverage for employees through a policy with Anthem Blue Cross
Blue Shield. The Town contributes the required premium amount for single coverage for each
employee. Dependents of employees are also covered by the policy provided they pay the additional
premium to the Town. During 2008-2009, total premiums paid were approximately $545,000.
(Continued) 39
Note 12.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Commitments and Contingencies
Special Purpose Grants
Special purpose grants are subject to audit to determine compliance with their requirements. Town
management believes that required refunds, if any, will be immaterial.
Landfill Closure and Post -Closure Costs
As discussed in Note 1, the Town participates in the Roanoke Valley Resource Authority. The
Authority currently has responsibility for closure and post -closure care related to the new Smith Gap
landfill, the transfer station, and the old landfill site formerly owned by the Roanoke Valley Regional
Solid Waste Management Board.
Closure and post -closure care requirements are mandated under the United States Environmental
Protection Agency (EPA) rule, Solid Waste Disposal Facility Criteria, and are subject to periodic
revisions by the EPA. The current estimate of remaining closure and post -closure care costs,
assuming full utilization of the sites, is approximately $13.9 million. The participating localities have
contributed their pro-rata shares to fund the closure and post -closure care costs.
Gain Sharine Agreement — Vinton Business Center
On March 2, 1999, the Town and Roanoke County reached an agreement to provide for the sharing of
certain local tax revenues and sharing of the costs of certain public services. That agreement stated
that the Town and County may negotiate an agreement to fund jointly the costs of development of the
Vinton Business Center and to share equally in the local tax revenues generated by this project.
During 2007, the County paid the Town one-half of the costs of development.
As part of the agreement, the Town agreed to convey a one-half undivided interest in the remaining
real estate of the project. The agreement stated that the Town and County plan on making additional
improvements to this project and will share in the costs of that and annual maintenance equally. The
Town and County must jointly agree before any future improvements are made to the property or
before portions of the property are sold. No major improvements were commenced during the current
year.
Litieation
A certain claim is pending against the Town.
consulting with counsel, the potential loss, given
Town's financial position.
In the opinion of the Town's management, after
insurance coverage, will not materially affect the
(Continued) 40
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Note 13. Major Customer/Taxpayer
During fiscal year 2009, approximately I I % of the Town's business -type revenues were generated by
one industrial customer.
Note 14. Interfund Activity
The primary purpose of the $126,018 transfer from the water and sewer fund to the general fund is to
use unrestricted revenues collected in the water and sewer fund to finance general fund programs in
accordance with budgetary authorizations.
Note 15. Other Post -Employment Benefits
The Town provides limited health care benefits to qualifying retirees until the earlier of age 65 or
reaching eligibility for Medicaid and/or Medicare. The Town's contributions under this program are
accounted for on a current disbursement basis. The Town's contribution for the year ended June 30
was approximately $10,000 for five retirees.
GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment
Benefit Plans Other than Pensions, establishes standards for the measurement, recognition, and
display of OPEB expense and related liabilities in the financial statements. Management has not
completed the process of evaluating the impact that will result from adoption of the standard and is
therefore unable to disclose the impact of adoption. The requirements of the statement are effective
for the Town for fiscal year ending June 30, 2010.
Note 16. New Accounting Standards
GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets, provides
specific guidance on the recognition, initial measurement, and amortization of intangible assets.
Management has not yet evaluated the effects, if any, of adopting this standard. This statement will
be effective for the year ending June 30, 2010.
GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, addresses
the recognition, measurement, and disclosure of information regarding derivative instruments entered
into by state and local governments. A key provision in this statement is that most of the derivative
instruments covered in its scope will be reported at fair value. Management has not yet evaluated the
effects, if any, of adopting this standard but does not expect them to be material. This statement will
be effective for the year ending June 30, 2010.
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions,
provides new fund balance classifications and clarifies governmental fund type definitions. This
statement establishes fund balance classifications that comprise a hierarchy based primarily on the
extent to which a government is bound to observe constraints imposed upon the use of the resources
reported in governmental funds. This statement will be effective for the year ending June 30, 2011.
m
THIS PAGE INTENTIONALLY BLANK
REQUIRED SUPPLEMENTARY
INFORMATION
42
EXHIBIT 11
TOWN OF VINTON, VIRGINIA
ANALYSIS OF FUNDING PROGRESS FOR DEFINED BENEFIT PENSION PLAN
June 30, 2009
(a)
(b)
(b-a)
(a/b)
(c)
((b-a)/c)
Unfunded
Actuarial
UAAL as of
Actuarial
Actuarial
Actuarial
Accrued
Annual
Percentage
Valuation
Value of
Accrued
Liability
Funded
Covered
of Covered
Date
Assets
Liability (AAL)
(UAAL)
Ratio
Payroll
Payroll
June 30, 2008
$ 12,035,517
$ 12,518,772
$ 483,255
96.14%
$ 3,225,456
14.98%
June 30, 2007
$ 10,981,805
$ 11,558,591
$ 576,786
95.01%
$ 3,156,124
18.28%
June 30, 2006
$ 9,702,178
$ 9,524,237
$ (1771,941)
101.87%
$ 2,787,681
(6.38)%
43
STATISTICAL SECTION
This part of the Town of Vinton Comprehensive Annual Financial Report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the Town's overall financial health.
Contents
Table
Financial Trends...................................................................1-4
These tables contain trend information to help
the reader understand how the Town's financial
performance and well-being have changed over
time.
Revenue Capacity .........................................5-7
These tables contain information to help the
reader assess the factors affecting the Town's
ability to generate its property and sales taxes.
DebtCapacity.....................................................................8-10
These tables present information to help the
reader assess the affordability of the Town's
current levels of outstanding debt and the
Town's ability to issue additional debt in the
future.
Demographic and Economic Information .......................11-12
These tables offer demographic and economic
indicators to help the reader understand the
environment within which the Town's financial
activities take place and to help make
comparisons over time and with other
governments.
Operating Information.....................................................13-15
These schedules contain information about the
Town's operations and resources to help the
reader understand how the Town's financial
information relates to the services the Town
provides and the activities it performs.
Sources: Unless otherwise noted, the information in these
schedules is derived from the Comprehensive Annual Financial
Reports for the relevant year. The Town implemented Statement
34 in 2003; schedules presenting government -wide information
include information beginning in that year.
44
TABLE 1
TOWN OF VINTON, VIRGINIA
NET ASSETS BY COMPONENT
Last Seven Fiscal Years
(accrual basis of accounting)
2009
2008
2007
2006
2005
2004
2003
Governmental activities
Invested in capital assets, net of related debt
$ 7,365,632
$ 7,763,470
$ 7,500,994
$ 7,237,168
$ 6,683,653
$ 5,775,255 $
4,943,882
Restricted
20,000
20,000
20,000
20,000
20,000
20,000
20,000
Unrestricted
1,650,476
2,451,898
3,431,442
3,238,092
3,355,212
3,471,498
4,050,589
Total governmental activities net assets $ 9,036,108 $ 10,235,368 $ 10,952,436 $ 10,495,260 $ 10,058,865 $ 9,266,753 $ 9,014,471
Business -type activities
Invested in capital assets, net of related debt $ 5,342,230 $ 5,497,604 $ 5,555,583 $ 6,072,220 $ 6,042,240 $ 6,176,039 $ 6,388,053
Restricted - _ _
Unrestricted 968,176 1,255,035 1,837,429 1,882,467 2,027,777 2,109,040 2,216,182
Total business -type activities net assets $ 6,310,406 $ 6,752,639 $ 7,393,012 $ 7,954,687 $ 8,070,017 $ 8,285,079 $ 8,604,235
Primary government
Invested in capital assets, net of related debt $ 12,707,862 $ 13,261,074 $ 13,056,577 $ 13,309,388 $ 12,725,893 $ 11,951,294 $ 11,331,935
Restricted 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Unrestricted 2,618,652 3,706,933 5,268,871 5,120,559 5,382,989 5,580,538 6,266,771
Total primary government net assets $ 15,346,514 $ 16,988,007 $ 18,345,448 $ 18,449,947 $ 18,128,882 $ 17,551,832 $ 17,618,706
Note: The Town began to report accrual information when it completed GAS13 Statement 34 in fiscal year 2003.
45
Expenses
Governmental activities
General government
Public safety
Public works
Parks, recreation, and cultural
Community development
Interest on long-term debt
Total governmental activities
Business -type activities
Water and sewer
Total business -type activities expense
Total primary government expenses
Program Revenues
Governmental activities
Charges for services
Public safety
Public works
Other activities
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities
Charges for services
Water and sewage
Capital grants and contributions
Total business -type activities program revenues
Total primary government program revenues
Net (expense) revenue
Governmental activities
Business -type activities
Total primary government net expense
(Continued)
TABLE 2
TOWN OF VINTON, VIRGINIA
CHANGE IN NET ASSETS BY COMPONENT
Last Seven Fiscal Years
(accrual basis of accounting)
2009
2008
2007
2006
2005
2004
2003
1,037,073
$
906,072
$
1,842,084
$
758,537
$
758,738
$
687,073
$
736,478
3,593,946
3,407,536
3,454,713
2,973,885
2,6781,245
2,693,087
2,405,198
2,455,754
2,905,249
2,058,379
1,583,537
1,505,832
1,201,386
1,409,330
610,756
575,895
300,854
456,343
544,242
535,102
538,083
339,304
227,303
218,941
206,510
196,075
223,272
196,691
211,189
220,551
188,966
140,534
148,719
5,295
7,268
8,248,022
8,242,606
8,063,937
6,119,346
5,831,851
5,345,215
5,293,048
3,189,315
3,148,236
3,035,847
2,3801,728
2,174,939
2,197,396
1,863,274
3,189,315
3,148,236
3,035,847
2,380,728
2,174,939
2,197,396
1,863,274
$ 11,437,337
$
11,390,842
$
11,099,784
$
8,500,074
$
8,006,790
$
7542,611
$
7,156,322
$ 172,357
$
128,216
$
231,207
$
203,532
$
193,264
$
132,263
$
313,961
132,382
114,274
110,220
114,267
113,917
113,966
113,434
436,835
450,338
370,838
502,979
544,415
586,866
440,873
11,454,813
1,691,163
1,282,244
1,102,340
1,1211,561
1,122,314
1,016,694
2,146
91,590
1,337.016
123,240
737,716
-
10,212
21,198,533
2,475,581
3,331,525
2,046,358
2,710,873
1,955,409
1,895,174
2,289,754
2,255,505
2,274,224
2,143,032
1,873,821
L807,775
1,687,904
303,556
-
48,540
-
-
-
2,593,310
2,255,505
2,322,764
2,143,032
1,873,821
1,807,775
1,687,904
$ 4,791,843
$
4,731,086
$
5,654,289
$
4,189,390
$
4,584,694
$
3,763,184
$
3,583,078
$ (6,049,489)
$
(5,767,025)
$
(4,732,412)
$
(4,072,988)
$
(3,120,978)
$
(3,389,806)
$
(3,397,874)
(596,005)
(892,731)
(713,083)
(237,696)
(301,118)
(389,621)
(175,370)
$ (6,645,494)
$
(6,659,756)
$
(5,445,495)
$
(4,3101,684)
$
(3,422,096)
$
(3,779,427)
$
(3,573,244)
LL
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes
Property taxes
Sales tax
Business license tax
Meals tax
Othertaxes
Utilities tax
Intergovernmental revenue not restricted
Investment earnings not restricted
Restricted investment earnings
Gain on disposal of property
Other
Transfers
Total governmental activities
Business -type activities:
Investment earnings not restricted
Restricted investment earnings
Other
Transfers
Total business -type activities
Total primary government
Changes in Net Assets
Governmental activities
Business -type activities
Total primary government
TABLE 2
TOWN OF VINTON, VIRGINIA
CHANGE IN NET ASSETS BY COMPONENT
Last Seven Fiscal Years
(accrual basis of accounting)
2009
2008
2007
2006
2005
2004
2003
$ 434,176
$
467,806
$
4111,866
$
397,200
$
397,424
S
400,896
$
400,780
1,132,519
1,132,083
1,148,136
1,065,843
1,177,089
1,156,165
1,056,387
437,797
452,672
413,400
403,818
192,344
183,824
167,991
861,286
860,961
806,916
715,267
584,998
539,348
512,792
386,703
338,292
397,014
423,145
410,121
380,078
351,218
795,268
8041,812
790,308
719,289
734,279
558,704
475,006
631,320
679,009
755,599
437,496
334,649
308,307
245,941
28,917
112,672
210,193
147,368
80,837
36,694
59,870
187
11,087
145,554
113,317
37,903
-
-
-
51,366
-
48,103
-
16,038
77,077
48,702
27,774
45,384
29,969
66,891
126,018
113,486
611,900
7,500
-
-
-
4,850,229
5,049,957
5,189,588
4,509,383
3,995,028
3,642,088
3,336,876
16,719
67,772
110,024
76,855
42,669
21,425
34,977
26,873
47,234
-
-
-
-
-
236,198
250,838
103,284
53,011
52,300
49,040
104,552
(126,018)
(113,486)
(61,900)
(7,500)
-
-
-
153,772
252,358
151,408
122,366
94,969
70,465
139,529
$ 5,004,001
$
5,302,315
$
5,340,996
$
4,631,749
$
4,089,997
$
3,712,553
$
3,476,405
$ (1,199,260)
$
(717,068)
$
457,176
$
436,395
$
874,050
$
252,282
$
(60,998)
(442,233)
(640,373)
(561,675)
(115,330)
(206,149)
(319,156)
(35,841)
$ (1,641,493)
$
(1,357,441)
$
(104,499)
$
321,065
S
667,901
$
(66,874)
$
(96,839)
47
,TABLE 3
WN Of VfN,I.ONVIRGINiA FEND
TO NMCI
,OVER 2000
(moLdiAfLiedaTl EENDpsenviscaYcouting)
2�
accrual basis of ac7,002
2003
$ 643.342
4 440,g 11
2005 � 116%5,115 413%,11" �--' _ -
2006 —`— $ 950,g14 3,126,6p4 —^ 5 094
2001 — $ 513,023 3133,09
— �� _
2008 --'� S 3 999,505 115 5,2
2009 �—� �5 9?9 3,101,323 `— �4 $11,
—� _ $ 4 6 301,`— $ 4 083,903
902 S 2,g35>003 2 92?,990 _�"-- $ 3,614,346
314
1,? 41 34% ---"�— S ? 010,%51
d 212,645 2 439>625 �—'—$ ? 553959
,eneral dun 1 699 951 —=�� $ 4 582,351 ----
Rese�ed ?54,521
U� eser ed S 1,911,496
F2atal genera] fund
48
TABLE 4
TOWN OF VINTON, VIRGINIA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUND
Last Ten Fiscal Years
(modified accrual basis of accounting)
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
Revenues
Taxes
$ 4,049,513
$ 4,084,586
$ 3,914,205
$ 3,726,456
$ 3,488,354
$ 3,199,342
$ 2,897,003
$ 2,863,030
$ 2,808.810
$ 2,689,594
Permits, privilege fees, and regulatory licenses
11,321
14,035
10,852
10,029
9006
9,160
7,446
8,342
8,249
9,037
Fines and forfeitures
116,463
102,720
103,816
93,022
76,294
92,799
96,001
72,046
61,694
71,913
Revenue from use of money and property
201,341
298,369
527,343
436,303
301,240
228,260
254,994
318,000
475,097
371,898
Charges for services
319,293
270,521
190,513
323,882
358,378
518,493
290,325
231,775
213,492
195,513
Other
4,638
4,718
10,740
5,175
954
6,302
13,009
6,126
5,107
4,837
Intergovernmental
2,230,602
2,590,575
3,491,179
1,903,599
2,463,622
1,602,944
1,478,524
1,400,640
1,505,342
1,234,950
Total revenues
6,933,171
7,3651,524
81,248,648
6,498,466
6,697,848
5,657,300
5,037,302
4,899,959
5,077,791
4,577,742
Expenditures
General government
652,359
695,916
660,932
629,650
625,170
546,248
587,700
618,015
550,934
494,051
Public safety
3,259,980
3,379,924
3,209,720
2,813,661
21,514,263
2,520,584
2,209,600
1,8841,686
1,640,239
1,433,251
Public works
2,219,226
2,357,040
1,779,490
1,479,899
1,438,886
1,440,888
1,434,811
1,337,518
1,533,211
1,196,436
Parks, recreation, and cultural
571,291
511,481
294,221
445,612
535,139
527,157
524,514
443,427
451,373
372,809
Community development
316,267
221,764
217,263
206,379
222,780
223,204
193,601
166,993
1851,116
166,161
Capital projects
384,982
1,962,873
5,899,542
907,147
1,339,795
1,057,436
865,791
829,614
298,700
531,613
Debt service:
Principal
241,585
208,404
154,021
148,208
46,616
59,126
55,106
33,722
321,019
22,311
Interest
212,090
208,912
202,495
157,905
99,758
5,295
7,264
6,091
7,789
51,154
Debt issuance costs
-
1,856
-
-
-
-
-
-
-
.
Total expenditures
7,857,780
9,548,170
12,417,684
6,788,461
6,822,407
6,379,938
5,878387
5,320,066
4,699,381
4,221,786
Excess (deficiency) of revenues over
expenditures
(924,609)
(2,182,646)
(41,169,036)
(289,995)
(124,559)
(722,638)
(841,085)
(420,107)
378,410
355,956
Other Financing Sources (Uses)
Issuance of debt
-
227,500
1,045,000
755,000
3,515,000
-
113,213
-
175,000
Premium on issuance of debt
-
-
45,554
19,237
6,064
-
-
-
485,780
Proceeds from sale of capital assets
15,560
13,836
4,825
51,366
-
253,081
-
101,306
36,137
68,000
Transfers in
126,018
113,486
61,900
7,500
-
-
-
-
225,000
-
Total other financing sources
141,578
3541,822
1,157,279
833,103
3,521,064
253,081
113,213
10,306
261,137
728,780
Net change in fund balances
S (783,031)
$(1,827,824)
$(3,011,757)
$ 543,108
$ 3,396,505
$ (469,557)
$ (727,872)
$ (409,801)
$ 639,547
$ 1,084,736
Debt service as a percentage of
noncapital expenditures
6.07%
5,53%
5.47%
5.20%
2.67%
1.21%
1.24%
0,89%
0.90%
0.74%
49
TABLE 5
TOWN OF VINTON, VIRGINIA
ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY (1)
Last Ten Fiscal Years
Public
Total
Fiscal
Real
Personal
Machinery
Service
Mobile
Assessed
Year
Estate
Property
and Tools
Corporation
Homes
Value
2009
$463,014,500
$47,556,110
$ 7,191,835
$14,933,569
$ 51,675
$532,747,689
2008
447,926,300
42,858,012
7,068,115
13,074,644
56,500
510,983,571
2007
429,817,400
40,691,155
7,665,980
14,387,422
60,775
492,622,732
2006
400,424,300
40,889,135
7,231,595
14,041,122
66,340
462,652,492
2005
377,493,200
39,382,275
7,273,105
14,186,848
78,425
438,413,853
2004
357,892,100
36,322,110
7,179,930
16,543,307
75,595
41.8,013,042
2003
378,146,535
39,232,928
6,098,125
16,054,317
89,965
439,621,870
2002
359,527,540
35,955,908
6,740,653
12,895,491
91,060
415,210,652
2001
336,561,315
36,593,425
6,689,450
11,952,474
97,985
391,894,649
2000
316,641,600
36,018,747
7,751,250
8,797,789
147,713
369,357,099
Notes: Property is assessed at full market value and is reassessed every year.
(1) Per $1,000 of assessed value.
50
TABLE 6
TOWN OF VINTON, VIRGINIA
PRINCIPAL WATER AND SEWER CUSTOMERS
Current Year and Nine Years Ago
Fiscal Year 2009
Fiscal Year 2000
Percentage
Percentage
of Total Town
of Total Town
Customer
Revenue
Rank
Revenue
Revenue
Rank
Revenue
Precision Fabrics Group, Inc. $
240,417
1
1.0.69%
$ 107,763
1
6.15%
Aramark
74,900
2
3.33%
37,767
2
2.16%
Cardinal Glass
44,596
3
1.98%
N/A
N/A
N/A
The Berkshire
34,713
4
1.54%
21,144
3
1.21 %
RGM Properties
32,458
5
1.44%
18,158
4
1.04%
Clearview Manor
19,768
6
0.88%
11,432
5
0.65%
Roanoke County Schools
16,538
7
0.74%
8,428
6
0.48%
Richard Dickerson/RL Mansard Sq
1,522
8
0.68%
8,092
7
0.46%
Skyline Cleaners
8,048
9
0.36%
5,492
8
0.31%
American Efficiency
7,043
10
0.31 %
1,151
9
0.07%
$ 480,003
$ 219,427
Note: FY 2000 % was based on $4,577,742 of total revenue. Information is only available for nine principal customers in 2000.
51
TABLE 7
TOWN OF VINTON, VIRGINIA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Fiscal
Collected within the
Year
Taxes Levied
Fiscal Year of
the Levy
Collections
Total Collections to Date
Ended
for the
Percentage
in Subsequent
Percentage
June 30,
Fiscal Year
Amount
of Levy
Years
Amount
of Levy
2009
$ 631,339
$ 619,539
98.13%
-
$ 619,539
98.13%
2008
652,866
655,404
100.39%
5,946
661,350
100.91 %
2007
605,599
609,454
100.64%
10,024
619,478
102.29%
2006
593,798
594,866
100.18%
5,765
600,631
101.15%
2005
573,032
568,645
99.23%
4,765
573,410
100.07%
2004
536,606
562,510
104.83%0
9,531
572,041
106.60%
2003
558,379
572,992
102.62%
7,450
580,442
103.95%
2002
615,779
587,012
95.33%
6,001
593,013
96.30%
2001
573,174
571,274
99.67%
11,041
582,315
101.59%0
2000
570,600
575,393
100.84%
14,002
589,395
103.29%
Source: Detailed Town property tax records.
Note: Amount collected includes any penalties and interest on late payments.
52
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
TABLE 8
TOWN OF VINTON, VIRGINIA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
$ 53,274,769
$44,792,630
$ 42,981,740
$ 40,042,300
$37,757,163
$ 35,796,770
$ 37,823,650
$ 35,961,860
$33,665,930
$ 31,664,160
7,978,160
8,394,491
8,753,625
7,140,228
5,643,925
1„772,906
881,868
945,348
1,005,917
1,063,708
$ 45,296,609
$36,398,139
$ 34,228,115
$ 32,902,072
$32,113,238
$ 34,023,864
$ 36,941,782
$ 35,016,512
$32,660,013
$ 30,600,452
14.98%
Legal Debt Margin Calculation for Fiscal Year 2009
Assessed value $ 532,747,689
Debt limit (10% of assessed value) $ 53,274,769
Less debt applicable to limit:
General obligation bonds 7,978,160
Legal debt margin $ 45,296,609
18.74% 20.37% 17.83%
53
14.95% 4.95% 2.33% 2.63%0 2.99% 3.36%
TOWN OF VINTON, VIRGINIA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities —
Other Governmental
General Bonded Debt
Activities Debt
Percentage of
Actual Value
Fiscal
General
of Taxable
Per
Capital
Revenue
Year
Bonded Debt
Property
Capita
Leases
Bonds
2009
$ 3,130,000
0.59%
$ 397
$ 136,595
$ 1,575,000
2008
3,265,000
0.64%
413
178,180
1,640,000
2007
3,360,000
0.68%
435
4,084
1,700,000
2006
2,410,000
0.52%
312
28,105
1,735,000
2005
2,500,000
0.57%
323
51,313
1,015,000
2004
-
0.00%
-
97,929
-
2003
-
0.00%
-
157,055
-
2002
-
0.00%
-
98,948
-
2001
-
0.00%
-
132,670
-
2000
-
0.00%
-
164,689
-
Business -type
Activities
Total
Percentage of
Fiscal
General
Revenue
Primary
Personal
Per
Year
Bonded Debt
Bonds
Government
Income
Capita
2009
$ 4,848,160
$ 2,750,000
$ 12,439,755
4.11 %
$ 1,579
2008
5,129,491
2,750,000
13,004,026
4.30%
1,645
2007
5,393,625
-
10,457,709
3.69%
1,353
2006
4,730,228
-
8,903,333
3.28%
1,152
2005
3,143,925
-
6,710,238
2.47%
868
2004
1,772,906
-
1,870,835
0.73%
242
2003
881,868
-
1,038,923
0.41%
134
2002
945,348
-
1,044,296
0.41 %
1.35
2001
1,005,917
-
1,138,587
0.52%
158
2000
1,063,709
-
1,228,397
0.56%
170
54
TABLE 9
TABLE 10
TOWN OF VINTON, VIRGINIA
PLEDGED REVENUE COVERAGE
Last Ten Fiscal Years
Less:
Net
Fiscal
Gross
Operating
Available
Debt Service
Year
Revenue
Expenses
Revenue
Principal
Interest
Coverage
2009
$ 2,569,544
$ 3,164,227
$ (594,683)
$ 281,331
$ 307,702
(1.01)
2008
2,621,349
3,1.34,236
(512,887)
272,788
222,032
(1.04)
2007
2,536,072
3,035,847
(499,775)
150,660
172,534
(1.55)
2006
2,272,898
2,380,728
(107,830)
123,952
94,285
(0.49)
2005
1,968,790
2,174,939
(206,149)
69,590
42,347
(1.84)
2004
1,878,240
2,197,396
(319,156)
75,091
23,886
(3.22)
2003
N/A
N/A
N/A
N/A
N/A
N/A
2002
N/A
N/A
N/A
N/A
N/A
N/A
2001
N/A
N/A
N/A
N/A
N/A
N/A
2000
N/A
NIA
N/A
N/A
N/A
N/A
Notes: Details regarding the Town's outstanding debt can be found in the Notes to Financial Statements.
N/A - The Town does not have this information available prior to fiscal year 2004.
55
TOWN OF VINTON, VIRGINIA
DEMOGRAPHIC STATISTICS
Last Ten Fiscal
Years
Fiscal
Total
Per Capita
Public
Year
Personal
Personal
School
Unemployment
Ended (1)
Population (2)
Income (3)
Income (3)
Enrollment (3)
Rate (3)
2009
7,876
$ 302,653,800 $
38,427
14,733
6.40%
2008
7,905
302,098,188
39,540
14,931
2.50%
2007
7,922
283,684,554
35,810
14,895
3.00%
2006
7,782
271,420,596
34,878
14,365
3.10%
2005
7,782
271,420,596
34,878
14,279
2.70%
2004
7,782
256,214,568
32,924
14,127
2.50%
2003
7,782
255,584,226
32,843
13,930
3.40%
2002
7,782
251,755,482
32,351
13,865
2.20%
2001
7,210
21.9,342,620
30,422
13,856
2.00%
2000
7,210
219,241,680
30,408
13,862
2.20%
(1) Population, school enrollment, and unemployment figures are based on fiscal
years ending June 30. Per Capita Income is as of December 31.
School enrollment figures are total County and include the Town of Vinton.
(2) Population is based on figures available from most recent U.S. Census.
(3) Figures are from the Roanoke County report and include the Town of Vinton.
N/A - Not available.
56
TABLE 11
TABLE 12
TOWN OF VINTON, VIRGINIA
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
Fiscal Year 2009
Fiscal Year 2000
Percentage
Percentage
of Total Town
of Total Town
Employer
Employees
Rank
Employment
Employees
Rank
Employment
Precision Fabrics Group, Inc.
280
1
7.82%
475
1
13.39%
Berkshire
230
2
6.42%
160
3
4.51%
Roanoke County School Board
178
3
4.97%
133
4
3.75%
Kroger
160
4
4.47%
208
2
5.86%
Town of Vinton
117
5
3.27%
96
5
2.71%
Aramark Uniform Services
90
6
2.51%
85
6
2.40%
1,055
29.46%
1,1.57
32.62%
N/A - Not Available
57
TABLE 13
TOWN OF VINTON, VIRGINIA
FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
Function/Proeram
General government
Management services
4
3
4
4
4
4
4
4
4
4
Finance
5
5
5
5
6
5
5
5
5
5
Planning
3
3
3
3
3
3
3
3
3
3
Police
Officers
24
24
25
21
23
17
20
19
18
16
Civilians
10
10
7
11
11
1.2
10
10
9
8
Fire
Firefighters and officers
9
9
9
9
9
10
9
7
7
6
Other public works
33
32
34
31
32
31
30
32
31
27
Parks, recreation, and cultural
3
2
2
5
13
12
10
10
11
10
Total
91
88
89
89
101
94
91
90
88
79
58
TABLE 14
TOWN OF VINTON,
VIRGINIA
OPERATING INDICATORS
BY
FUNCTIONIPROGRAM
Last Ten Fiscal Years
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
Function/Proeram
General government
Fleet equipment
117
62
62
60
60
72
72
72
72
72
Pieces of equipment maintained
117
62
62
60
60
60
60
60
60
60
Public safety
Police
Arrests
658
598
504
600
744
517
445
511
473
448
Parking violations
84
62
16
135
156
78
103
144
94
249
Traffic violations
3,088
3,034
3,087
2,743
2,725
1,319
1,522
2,022
1,384
1,371
EMS
Emergency responses
2,369
2,397
2,459
1,536
2,095
21,007
2,010
1,895
2,052
1,895
Fire
Emergency responses
764
1,038
673
1,900
2,831
2,650
2,706
2,586
2,755
2,586
Public works
Refuse collection
Refuse collected (tons per day)
15.90
18.10
19.00
17.30
17.30
16.80
15.30
14.50
14.40
14.10
Recyclables collected (tons per day)
1.60
1.70
1.30
1.80
1.50
N/A
N/A
N/A
N/A
N/A
Other public works
Street resurfacing (miles)
3.50
11.10
-
-
2.20
N/A
N/A
N/A
N/A
N/A
Parks, recreation, and cultural
Parks and recreation - attendees
Vinton Dogwood Festival (4-day)
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
Vinton Bluegrass Festival (4-day)
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
4th of July
4,000
41,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
Enchanted Eve (Co-sponsor Roanoke County)
5,000
5,000
5,000
5,000
5,000
5,000
-
-
-
-
Vinton Fall Festival (Co-sponsor Chamber of Commerce)
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
-
-
Water
Number of customer accounts
5,022
4,985
41,984
4,916
4,793
4,763
4,704
4,619
4,563
4,540
Miles of distribution lines
61
60
60
56
56
56
56
56
55
55
Volume pumped (million gallons per day average)
1.04
1.29
1.26
1.30
1.30
1,20
1.30
1.40
1.20
1.40
Sewer
Number of customer accounts
4,600
4,571
4,573
4,511
4,460
4,430
4,371
4,286
4,230
4,183
Miles of collection lines
60
59
57
54
54
53
53
53
52
52
Waste/Water treated (million gallons per day)
1.04
1.24
1.20
1.20
1.49
1.50
1,57
1.38
1.32
1.43
N/A - Not available.
59
TABLE 15
TOWN OF VINTON, VIRGINIA
CAPITAL ASSET AND INFRASTRUCTURE STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
Function/Proeram
Public safety
Law enforcement vehicles
29
27
19
20
18
16
11
11
12
12
Fire stations
I
1
1
1
1
I
1
I
I
1
Public works
Primary streets (lane miles)
21.62
21.62
18.28
18.78
18.78
16.50
16.50
16.50
16.50
16.50
Secondary streets (lane miles)
66.32
66.32
68.78
65.96
65.96
64.40
64.40
64.40
64.40
64.40
Streetlights
500
500
500
500
500
500
500
500
500
500
Parks, recreation, and cultural
Community centers
Vinton Senior Program (No. of Events/Attendance)
240/4236
180/3600
180/3600
180/3600
180/3600
180/3600
180/3600
180/3600
180/3600
180/3600
Charles R. Hill Center (Rentals)
351
205
257
227
227
227
227
227
227
227
Skate Park
Closed
2,400
2,400
2,400
2,400
2,400
1,800
-
-
-
Vinton War Memorial
277
151
-
-
449
616
480
524
503
548
Parks/athletic fields
Gearhart Park (Tov owned -Leased to Rke County)
37/3000
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Jaycee Field (Seasonal ballgames)
Closed
Closed
Closed
Closed
56
56
56
56
56
56
Greenway (3/4 Mile) Cinder Surface
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
Lawfit Course (5 Fitness Stations)
1,120
1,120
-
1,120
-
-
-
-
-
War Memorial Playground
6,000
6,000
5,000
6,000
6,000
4,000
4,000
4,000
4,000
4,000
Vinton Municipal Pool
11,000
11,000
7,100
7,147
6,763
7,531
7,147
7,147
7,147
7,147
Water and sewer
Water mains (miles)
61
60
60
56
56
56
56
56
55
55
Sanitary sewers (miles)
60
59
59
54
54
53
53
53
52
52
Stormwater
Storm sewers (miles)
12
12
12
11
11
11
11
11
11
11
Signalized Street Intersections
Traffic Signals (each)
11
11
11
11
11
11
11
10
10
10
60
THIS PAGE INTENTIONALLY BLANK
COMPLIANCE SECTION
rol
BROWN,
,
EDWARDS&
COMl'ANY,L,L.P.
Certified Public Accountants
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT A UDITING STANDARDS
Honorable Members of Town Council
Town of Vinton, Virginia
We have audited the financial statements of the Town of Vinton, Virginia, as of and for the year
ended June 30, 2009, and have issued our report thereon dated October 7, 2009. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States, and the Specifications for Audits of Counties, Cities, and
Towns issued by the Auditor of Public Accounts of the Commonwealth of Virginia.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Town's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on
the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
Town's internal control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the Town's internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose
described in the preceding paragraph and would not necessarily identify all deficiencies in internal
control over financial reporting that might be significant deficiencies or material weaknesses. However,
as discussed below, we identified certain deficiencies in internal control over financial reporting that we
consider to be significant deficiencies.
A control deficiency exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent or
detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the Town's ability to initiate, authorize, record, process, or
report financial data reliably in accordance with generally accepted accounting principles such that there
is more than a remote likelihood that a misstatement of the Town's financial statements that is more
than inconsequential will not be prevented or detected by the Town's internal control. We consider the
deficiencies described as Items 07-1, 08-1, 09-1 and 09-2 in the accompanying schedule of findings
and responses to be significant deficiencies in internal control over financial reporting.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the financial statements will not
be prevented or detected by the Town's internal control.
62
Providing Professional Business Advisory & Consulting Servicer
319 McClanahan Street, S.W. • P.O. Box 12388 • Roanoke, VA 24025-2388 • 540-345-0936 • Fax: 540-342-6181 - www.BEepas.com
Internal Control over Financial Reporting (Continued)
Our consideration of the internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies in the
internal control that might be significant deficiencies and, accordingly, would not necessarily disclose
all significant deficiencies that are also considered to be material weaknesses. However, we consider
significant deficiencies 07-1 and 08-1 noted above to be material weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town's financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grants, noncompliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.
The results of our tests disclosed three instances of noncompliance that are required to be
reported under Government Auditing Standards which are noted as Items 09-3, 09-4, and 09-5.
We noted certain matters that we reported to management of the Town in a separate letter dated
October 7, 2009.
The Town's response to the findings identified in our audit is described in the accompanying
schedule of findings and responses. We did not audit the Town's responses and, accordingly, we
express no opinion on them.
This report is intended solely for the information and use of management, state and federal
awarding agencies, pass -through entities, and Town Council, and is not intended to be, and should not
be, used by anyone other than these specified parties.
Roanoke, Virginia
October 7, 2009
40", 4_xu� P�g /,�o r /0
0'07�
CERTIFIED PUBLIC ACCOUNTANTS
63
TOWN OF VINTON, VIRGINIA
SUMMARY OF COMPLIANCE MATTERS
June 30, 2009
As more fully described in the Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government
Auditing Standards, we performed tests of the Town's compliance with certain provisions of laws, regulations,
contracts and grants shown below.
STATE COMPLIANCE MATTERS
Code of Virginia:
Budget and Appropriation Laws
Cash and Investment Laws
Conflicts of Interest Act
Debt Provisions
Local Retirement Systems
Procurement Laws
Uniform Disposition of Unclaimed Property Act
State A2encv Reauirements:
Highway Maintenance Funds
Town Charter
LOCAL COMPLIANCE MATTERS
64
TOWN OF VINTON, VIRGINIA
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended .Tune 30, 2009
A. FINDINGS — FINANCIAL STATEMENT AUDIT
07-1: Segregation of Duties (Material Weakness)
Condition:
A fundamental concept of internal controls is the separation of duties. No one employee should have
access to both physical assets and the related accounting records, or to all phases of a transaction. A
proper segregation of duties has not been established in functions related to payroll, accounts payable,
accounts receivable, cash disbursements, and computer controls.
Recommendation:
Steps should be taken to eliminate performance of conflicting duties where possible or to implement
effective compensating controls.
Management's Response:
Management noted this finding. The Finance Director has segregated duties, where practical, and
ensured that the same person does not have a complete control or conflicting duties on the different
functions in the department.
08-1: Capital Asset Records (Material Weakness)
Condition:
Capital assets were materially misstated in the current year due to inadequate review of capital asset
records.
Recommendation:
Steps should be taken to ensure capital assets are properly recorded.
Management's Response:
A system will be developed to ensure capital assets are properly recorded during the year.
09-1: Check Dating (Significant Deficiency)
Condition:
Checks dated June 29, 2009 were actually printed and mailed on July 1, 2009, resulting in an
incorrect cash balance at year end.
Recommendation:
Effort should be taken to schedule check runs so that the checks are printed and mailed on the actual
day that checks are dated.
Management's Response:
Steps will be taken to prevent this from happening in the future.
65
TOWN OF VINTON, VIRGINIA
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2009
A. FINDINGS — FINANCIAL STATEMENT AUDIT (Continued)
09-2: Accounts Receivable Allowance (Significant Deficiency)
Condition:
The allowance for uncollectible accounts receivable was understated for water and sewer accounts,
property taxes receivable, and vehicle license fees receivable.
Recommendation:
Management should evaluate the collectability of accounts receivable on a regular basis and adjust
the reserve accordingly, increase collection efforts, and write-off uncollectible accounts as deemed
necessary.
Management's Response:
Management concurs and has identified additional accounting reports that will assist in evaluation of
the allowance for uncollectible accounts. Additionally, management has increased collection efforts
on delinquent accounts.
B. FINDINGS — COMMONWEALTH OF VIRGINIA
09-3: General Fund Budget Appropriations
Condition:
One general fund expenditure category exceeded budgeted appropriations.
Recommendation:
Steps should be taken to ensure that any excess expenditures over budgeted appropriations be
approved by Town Council and the budget amended accordingly.
Management's Response:
The category in question relates to principal repayments for a capital lease and funds were not
re -appropriated from prior year.
09-4: Conflict of Interest Disclosures
Condition:
Conflict of 'Interest disclosure statements are not being timely filed. One disclosure statement was
noted that was not signed and notarized.
Recommendation:
Steps should be taken to ensure that all disclosure statements are signed, notarized, and timely filed.
Management's Response:
Disclosure statements will be signed, notarized, and timely filed in the future.
66
TOWN OF VINTON, VIRGINIA
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2009
B. FINDINGS — COMMONWEALTH OF VIRGINIA (Continued)
09-5: Weldon Cooper Survey
Condition:
The Weldon Cooper survey was not completed before the deadline.
Recommendation:
Steps should be taken to ensure that all the Weldon Cooper survey is completed by March 15"' each
year.
Management's Response:
The Weldon Cooper survey will be timely completed in the future..
67