HomeMy WebLinkAboutFY 2009 - 2010 - Annual Comprehensive Financial Reports (ACFRs)
Town of Vinton, Virginia
Comprehensive Annual Financial Report
For Fiscal Year Ending June 30, 2010
TOWN OF VINTON, VIRGINIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2010
Prepared by the Town of Vinton
Finance Department/Treasurer’s Office
TOWN OF VINTON, VIRGINIA
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal ..............................................................................................................................i
Certificate of Achievement for Excellence in Financial Reporting.........................................................vii
Directory of Principal Officials...........................................................................................................viii
Organizational Chart ............................................................................................................................ix
FINANCIAL SECTION
Independent Auditor’s Report................................................................................................................1
Management’s Discussion and Analysis ................................................................................................3
Basic Financial Statements
Government-wide Financial Statements
Exhibit 1 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...................................46
Exhibit 12 Analysis of Funding Progress for Other Post-Employment Benefits .............................47
TOWN OF VINTON, VIRGINIA
TABLE OF CONTENTS
(Continued)
Page
STATISTICAL SECTION
Table 1 Net Assets by Component ................................................................................................49
Table 2 Change in Net Assets by Component ................................................................................50
Table 3 Fund Balances –Governmental Fund................................................................................52
Table 4 Changes in Fund Balances –Governmental Fund ..............................................................53
Table 5 Assessed Value and Actual Value of Taxable Property ......................................................54
Table 6 Principal Water and Sewer Customers...............................................................................55
Table 7 Property Tax Levies and Collections .................................................................................56
Table 8 Legal Debt Margin Information ........................................................................................57
Table 9 Ratios of Outstanding Debt by Type .................................................................................58
Table 10 Pledged Revenue Coverage ..............................................................................................59
Table 11 Demographic Statistics .....................................................................................................60
Table 12 Principal Employers .........................................................................................................61
Table 13 Full-Time Equivalent Town Government Employees by Function/Program........................62
Table 14 Operating Indicators by Function/Program ........................................................................63
Table 15 Capital Asset and Infrastructure Statistics by Function/Program .........................................64
COMPLIANCE SECTION
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 ............................................................................................66
Summary of Compliance Matters ........................................................................................................68
Schedule of Findings and Responses....................................................................................................69
INTRODUCTORY SECTION
vii
viii
TOWN OF VINTON, VIRGINIA
DIRECTORY OF PRINCIPAL OFFICIALS
June 30, 2010
TOWN COUNCIL
Bradley E. Grose, Mayor
Carolyn D. Fidler., Vice Mayor
Robert R. Altice
William S. Nance
Matthew S. Hare
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.
ix
Citizens of Vinton
Town Council
Town Manager Town Attorney
Police Department
Administration
Public Works Department
Finance Department
Planning and Zoning Department
Special Programs Department
War Memorial Department
Operations
Services
Streets
Property/Grounds
Utilities
Refuse/Recycling
Fire/EMS Department
Career
Human Resources
Volunteer Fire and First Aid Crew
Assistant Town Manager
Economic Development/Business Advocacy
Town Clerk
Town of Vinton
Organization Chart
FINANCIAL SECTION
1
Providing Professional Business Advisory & Consulting Services
319 McClanahan Street, S.W. • P.O. Box 12388 • Roanoke, VA 24025-2388 • 540-345-0936 • Fax: 540-342-6181 • www.BEcpas.com
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, 2010, 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 2009 financial statements and, in our report
dated October 7, 2009,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, 2010, 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.
As described in Note 8 to the financial statements, the Town adopted provisions of GASB
Statement No. 45, Financial Reporting for Post-Employment Benefits Other Than Pension Plans in 2010.
In accordance with Government Auditing Standards, we have also issued our report dated
September 30,2010 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 should be considered in assessing the
results of our audit.
2
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and budgetary comparison information on pages 3 through 10, the
Analysis of Funding Progress for Defined Benefit Pension Plan, and Analysis of Funding Progress for
Other Postemployment Benefits be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion or provide any assurance
on the information because the limited procedures do not provide us with sufficient evidence to express an
opinion or provide any assurance.
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.
CERTIFIED PUBLIC ACCOUNTANTS
Roanoke, Virginia
September 30,2010
3
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, 2010. 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 $13,878,033 (net assets). Of this amount, $1,659,920 (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 $1,468,481. This decrease is largely due to the
total expenses of $11,381,457 being more than the total revenues of $9,912,976. This
resulted in a sizeable drop of $1,298,757 (22.1%) in current and other assets. Additionally,
capital assets decreased by $743,093 (3.1%) in capital assets with the final result being a
drop of 6.8% in total assets.
On the other hand, long-term liabilities decreased by $573,862 (4.4%) while other liabilities
fell by $494 (0.0%), thus causing a favorable effect on the total net assets
The final result of all these effects is a 9.5% decrease in net assets.
As of the close of the current fiscal year, the Town’s governmental fund reported an ending
fund balance of $1,683,185, a decrease of $(288,311)in comparison with the prior year. This
is largely due to a decrease of $198,808 (6.1%) in total assets particularly cash and cash
equivalents. In addition to this adverse effect, total liabilities increased by $89,503 (7.0%)
in particular deferred revenue.
Approximately 78.5% of the ending fund balance, $1,322,095 is available for spending at the
Town’s discretion (unreserved fund balance), and represents 17.6% of the governmental
fund’s expenditures.
The Town’s total long-term liabilities decreased by $(573,862)(4.4%)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.
4
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 information 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 outflows 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-term 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-term 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.
5
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 $13,878,033 at the close of the most recent
fiscal year.
By far the largest portion of the Town’s net assets (87.8%) 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
2010 2009 2010 2009 2010 2009
Current and other assets $3,146,550 $3,352,001 $1,412,983 $2,506,289 $4,559,533 $5,858,290
Capital assets 11,304,677 12,160,535 11,908,075 11,795,309 23,212,752 23,955,844
Total assets 14,451,227 15,512,536 13,321,058 14,301,598 27,772,285 29,814,134
Long-term liabilities 5,070,376 5,264,233 7,327,370 7,707,375 12,397,746 12,971,608
Other liabilities 1,237,607 1,212,195 258,899 283,817 1,496,506 1,496,012
Total liabilities 6,307,983 6,476,428 7,586,269 7,991,192 13,894,252 14,467,620
Net assets
Invested in capital
assets, net of
related debt 6,760,474 7,365,632 5,437,639 5,342,230 12,198,113 12,707,862
Restricted 20,000 20,000 - - 20,000 20,000
Unrestricted 1,362,770 1,650,476 297,150 968,176 1,659,920 2,618,652
Total net assets $8,143,244 $9,036,108 $5,734,789 $6,310,406 $13,878,033 $15,346,514
Unrestricted net assets of $1,659,920 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.
6
Government-wide Financial Analysis (Continued)
Governmental activities –Governmental activities decreased the Town’s net assets by 892,864.
The key elements of this decrease are a decrease in property taxes of $14,775 (3.4%), a reduction on
investment earnings by $25,917 (89.0%),and a drop on operating grants and contributions by $87,872
(6.0%). Additionally, expenses increased for parks, recreation, and cultural by $7,022 (1.1%) and
community development by $53,856 (15.8%).
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 VDOT revenue sharing which was a significant amount In
the prior year. Investment earnings also showed a decline because of a very low interest rate coupled
with the declining investments and bond proceeds. However, there was an increase in gain sharing
revenue due to business growth in the area.
The Town’s Changes in Net Assets
Governmental Business-Type
Activities Activities Total
2010 2009 2010 2009 2010 2009
Revenues
Program revenues
Charges for services $708,263 $741,574 $2,439,634 $2,289,754 $3,147,897 $3,031,328
Operating grants and
contributions 1,366,971 1,454,813 - - 1,366,971 1,454,813
Capital grants and
contributions 8,034 2,146 - 303,556 8,034 305,702
General revenues
Property taxes 419,401 434,176 - - 419,401 434,176
Other taxes 3,971,094 3,613,573 - - 3,971,094 3,613,573
Intergovernmental
revenueunrestricted 664,975 631,320 - - 664,975 631,320
Investment earnings 3,187 29,104 3,551 43,592 6,738 72,696
Other 29,275 16,038 298,591 236,198 327,866 252,236
Total revenues 7,171,200 6,922,744 2,741,776 2,873,100 9,912,976 9,795,844
Expenses
General government 1,023,227 1,037,073 - - 1,023,227 1,037,073
Public safety 3,446,746 3,593,946 - - 3,446,746 3,593,946
Public works 2,457,832 2,455,754 - - 2,457,832 2,455,754
Parks, recreation, and
cultural 617,778 610,756 - - 617,778 610,756
Community development 393,160 339,304 - - 393,160 339,304
Interest on long-term
debt 203,787 211,189 - - 203,787 211,189
transfers (971,330)(1,325,278)(497,151)(316,215)(1,468,481)(1,641,493)
7
Government-wide Financial Analysis (Continued)
Expenses and Program Revenues –Governmental Activities
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
General
Government
Public Safety Public Works Parks,
Recreation, &
Cultural
Community
Development
Interest on
Long-Term
Debt
Total
Expenses
Program Revenues
Revenues by Source –Governmental Activities
Business-type activities –Business-type activities decreased the Town’s net assets by
$575,617. This decrease is largely due to the substantial decrease in investment earnings by $40,041
(91.9%). There were no capital grants and contributions received this fiscal year. This unfavorable
effect was also brought about by a rise in expenses of $49,612 (1.6%). All these unfavorable effects
were partially offset by an increase in charges for services of $149,880 (6.5%).
8
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 $1,683,185, a decrease of $288,311 in comparison with the prior year. This is largely
due to a decrease in total of assets totaling $198,808 (6.1%) particularly a decrease by cash equivalents
by $250,802 (9.7%)which was partially offset by an increase in receivables by $45,895 (18.6%). In
addition to this adverse effect, deferred revenue increased by $106,357 (12.6%) but was partially
counteracted by a decrease in accounts payable and accrued liabilities of $16,854 (3.1%).
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
$297,150. 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 wer e
$123,180 primarily due to an increase on Categorical Aid by $109,133 (8.5%).
Differences between the original budget and the final amended budget for expenditures were
$375,441. These differences are primarily due to minimal increases on expenses for general
government administration;public safety;parks, recreation, and cultural;and community development.
There were multiple significant variances between the final budget and the actual final results for
the year. They can be briefly summarized as follows:
Some revenue forecasts in the governmental fund were not significantly realized. Current
personal property tax collection was 82.4% of the budget due to budgeting too high and collections being
lower on current property taxes while tax on public utilities was budgeted too high. Interest from
investments had a variance of 93.6% due to very low interest rate on investments. Other income
expectations were not significantly met. These are the revenues on recoveries and rebates (60.4%), other
police grants (42.8%), ATF recoveries (98.8%). No CDBG grant was received during the fiscal year.
However, there were favorable variances on revenue raised on cigarette tax (36.0%) and wireless
911 grant (5.1%) which could not be precisely predicted.
On the other hand, there were also favorable variances on certain expenses. The Police
Department was fully staffed during the year resulting to an overtime expense of 7.3% of the budget.
Some maintenance service contracts were discontinued thereby using only 46.7% of the budget.
Additionally, 21.2% of the wireless E-911 expense budgeted was not used due to the merger with
Roanoke County Emergency Communication Services. Also, much of the items for the criminal justice
system improvement were acquired during the fiscal year causing a significant variance over the budget.
A favorable variance resulted from the delay in the completion of the web cad project in the Police
Department due to the change in the record program. However, this project was completed almost two
months after the end of the fiscal year.
9
General Fund Budgetary Highlights (Continued)
Salaries and wages of personnel assigned in maintenance of highways, streets, and bridges are
11.4% above the budget because of the classification of expenses at the time actually recorded were
different than budgeted.
Significant variances in the enterprise fund are in the bulk water sale and interest from
investments. Revenue realized from bulk water sale was 18.2% below the budget whereas interest earned
from investment was dramatically short by 96.4% because of the very low interest rate. These negative
variances were partially offset by a $20,000 planning grant received that was not budgeted.
The numbers of accounts with significant favorable variances in the enterprise fund are more than
the unfavorable ones. Water purchased for resale was below the budget by 22.0% due to the
corresponding decrease in the bulk water sale. Expenditures which can be held off without affecting
services and operations cause positive variances on contractual services (59.8%), and maintenance and
repair of buildings (80.8%). Wastewater treatment cost was 10.7% favorably below the budget because
the projection was based on higher treatment cost which turned out to be relatively the same as last year.
The favorable variance in the salaries and wage category in sewer was offset by the unfavorable salaries
and wage category in water due to different actual cost allocation for expenditures than the budget. The
unfavorable variance of 12.2% in electrical services is primarily due to price hikes during the year. Pump
houses and pumps had to be repaired thus overshooting the budget. Some necessary repairs had to be
done in the wastewater system maintenance thus exceeding the allocation by 27.5%.
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, 2010, amounts to $23,212,752 (net of accumulated depreciation). This investment
in capital assets includes land, buildings and systems, improvements, infrastructure, machinery,and
equipment. The total decrease in the Town’s investment in capital assets for the current fiscal year was
3.1% (a 7.0%decrease for governmental activities and a 1.0% increase for business-type activities).
Additional information on the Town’s capital assets can be found in Note 5 of this report.
The Town’s Capital Assets
(Net of Depreciation)
Governmental Business-Type
Activities Activities Total
2010 2009 2010 2009 2010 2009
Land $1,706,092 $1,706,092 $80,752 $80,752 $1,786,844 $1,786,844
Buildings and systems 6,634,029 6,923,634 7,798,074 8,031,032 14,432,103 14,954,666
Infrastructure 1,809,274 1,899,252 - - 1,809,274 1,899,252
Improvements other than
buildings - - 3,048,142 3,183,565 3,048,142 3,183,565
Machinery and equipment 1,066,393 1,544,515 338,752 339,503 1,405,145 1,884,018
Construction in progress 88,889 87,042 642,355 160,457 731,244 247,499
Total $11,304,677 $12,160,535 $11,908,075 $11,795,309 $23,212,752 $23,955,844
10
Capital Asset and Debt Administration (Continued)
Long-term debt –At the end of the current fiscal year, the Town had total debt outstanding of
$11,801,120. Of this amount, $7,548,025 comprises debt backed by the full faith and credit of the
government, $4,160,000 is related to revenue bond obligations, and $93,095 is related to capital lease
obligations.
The Town’s Outstanding Debt
General Obligation and Capital Leases
Governmental Business-Type
Activities Activities Total
2010 2009 2010 2009 2010 2009
General obligation bonds $2,990,000 $3,130,000 $4,558,025 $4,848,160 $7,548,025 $7,978,160
Revenue bonds 1,505,000 1,575,000 2,655,000 2,750,000 4,160,000 4,325,000
Capital leases 93,095 136,595 - - 93,095 136,595
$4,588,095 $4,841,595 $7,213,025 $7,598,160 $11,801,120 $12,439,755
The Town’s total debt decreased by $638,635 (5.1%) during the fiscal year. This decrease is
largely due to the principal payments on general obligation and revenue bonds amounting to $430,135
(5.7%) and $165,000 (4.0%), respectively. The payment of $43,500 (3.2%) 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. 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, 2010 is 6.4%, which is the same as a year ago. This compares
favorably to the state’s average unemployment rate as of June 30, 2010 of 7.1% percent and
to the national average rate of 9.6%.
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
$375.376. The general fund remains strong although less than in prior years with an ending fund
balance of $1,971,496. It is intended that this available fund balance will be used for future needs of the
Town.
Requests for Information
This financial report is designed to provide a general overview of the Town’s finances for all
those with an interest in the government’s finances. Questions concerning any of the information provided
in this report or requests for additional financial information should be addressed to the Finance
Department/Treasurer’s Office, Town of Vinton, 311 S. Pollard Street, Vinton, Virginia 24179.
11
BASIC
FINANCIAL STATEMENTS
EXHIBIT 1
Governmental Business-type
(For Comparison
Only)
Activities Activities 2010 2009
ASSETS
Cash and cash equivalents (Note 2)2,317,207$ 54,505$ 2,371,712$ 3,386,190$
Receivables, net (Note 3)292,806 499,880 792,686 679,984
347,717 - 347,717 345,678
Inventories - 36,028 36,028 39,996
Prepaid expenses 56,736 15,786 72,522 66,764
Bond issue costs, net 101,260 75,107 176,367 187,341
Restricted assets:
30,824 731,677 762,501 1,152,337
Capital assets: (Note 5)
Nondepreciable 1,794,981 723,107 2,518,088 2,034,343
Depreciable, net 9,509,696 11,184,968 20,694,664 21,921,501
Total assets 14,451,227 13,321,058 27,772,285 29,814,134
LIABILITIES
Accounts payable and accrued liabilities 301,887 118,951 420,838 460,677
Accrued payroll and related liabilities 216,735 44,242 260,977 258,939
Accrued interest payable 73,405 95,706 169,111 177,584
Unearned revenue (Note 3)645,580 - 645,580 598,812
Long-term liabilities: (Note 6)
Due within one year 365,061 415,735 780,796 742,262
Due in more than one year 4,705,315 6,911,635 11,616,950 12,229,346
Total liabilities 6,307,983 7,586,269 13,894,252 14,467,620
NET ASSETS
6,760,474 5,437,639 12,198,113 12,707,862
Restricted for:
Flower fund 20,000 - 20,000 20,000
Unrestricted 1,362,770 297,150 1,659,920 2,618,652
Invested in capital assets, net of
related debt
Due from other governmental
units (Note 4)
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET ASSETS
June 30, 2010
The Notes to Financial Statements are
an integral part of this statement.
12
EXHIBIT 2
Charges for
Operating Capital Grants
Governmental
Business-Comparison
Functions/Programs Expenses Services Contributions Contributions Activities Activities 2010 2009
Governmental activities
1,023,227$ 153,346$ -$ 6,384$ (863,497)$ (863,497)$ (862,670)$
Public safety 3,446,746 108,187 412,030 - (2,926,529) (2,926,529) (3,068,221)
Public works 2,457,832 110,175 944,941 - (1,402,716) (1,402,716) (1,280,660)
Parks, recreation, and cultural 617,778 327,940 - 1,650 (288,188) (288,188) (295,107)
Community development 393,160 8,615 10,000 - (374,545) (374,545) (331,642)
Interest on long-term debt 203,787 - - - (203,787) (203,787) (211,189)
Total governmental activities 8,142,530 708,263 1,366,971 8,034 (6,059,262) (6,059,262) (6,049,489)
Business-type activities
Water and sewer 3,238,927 2,439,634 - - - (799,293)$ (799,293) (596,005)
Total business-type activities 3,238,927 2,439,634 - - - (799,293) (799,293) (596,005)
Total 11,381,457$ 3,147,897$ 1,366,971$ 8,034$ (6,059,262) (799,293) (6,858,555) (6,645,494)
General revenues
Property taxes (Note 10)419,401 - 419,401 434,176
Sales tax 1,113,322 - 1,113,322 1,132,519
Meals tax 842,384 - 842,384 861,286
Utilities tax 803,044 - 803,044 795,268
Business license tax 456,536 - 456,536 437,797
Cigarette tax 346,886 - 346,886 -
Other local taxes 408,922 - 408,922 386,703
Unrestricted intergovernmental revenue 664,975 - 664,975 631,320
Unrestricted investment earnings 3,187 1,824 5,011 45,636
Restricted investment earnings - 1,727 1,727 27,060
Other 29,275 298,591 327,866 252,236
Transfers (Note 14)78,466 (78,466) - -
Total general revenues and transfers 5,166,398 223,676 5,390,074 5,004,001
Change in net assets (892,864) (575,617) (1,468,481) (1,641,493)
NET ASSETS AT JULY 1 9,036,108 6,310,406 15,346,514 16,988,007
NET ASSETS AT JUNE 30 8,143,244$ 5,734,789$ 13,878,033$15,346,514$
General government administration
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF ACTIVITIES
Year Ended June 30, 2010
Program Revenues
Net (Expense) Revenue and
Changes in Net Assets
The Notes to Financial Statements are
an integral part of this statement.
13
EXHIBIT 3
Comparison
2010 2009
ASSETS
Cash and cash equivalents 2,317,207$ 2,579,999$
Cash and cash equivalents, restricted 30,824 18,834
Receivables, net 292,806 246,911
Due from other governmental units 347,717 345,678
Prepaid items 56,736 52,676
Total assets 3,045,290$ 3,244,098$
LIABILITIES
Accounts payable and accrued liabilities 301,887$ 317,476$
Accrued payroll and related liabilities 216,735 218,000
Deferred revenue (Note 3)843,483 737,126
Total liabilities 1,362,105 1,272,602
FUND BALANCES
Reserved for:
Encumbrances 284,354 199,969
Prepaid items 56,736 52,676
Flower fund 20,000 20,000
Unreserved:
Designated:
150,000 150,000
Undesignated 1,172,095 1,548,851
Total fund balances 1,683,185 1,971,496
Total liabilities and fund balances 3,045,290$ 3,244,098$
Vinton Business Center
General Fund
TOWN OF VINTON, VIRGINIA
BALANCE SHEET
GOVERNMENTAL FUND
June 30, 2010
The Notes to Financial Statements are
an integral part of this statement.
14
EXHIBIT 4
Comparison
Only)
2010 2009
Total Fund Balances – Governmental Fund 1,683,185$ 1,971,496$
are different because:
Capital assets used in governmental activities are not financial resources,
and, therefore, are not reported in the funds.
Governmental capital assets 17,431,959$
Less: accumulated depreciation (6,127,282)
11,304,677 12,160,535
Bond issuance costs and premiums are reported as expenditures or
Issuance costs on debt issuances total $132,858 and
accumulated amortization is $31,598.101,260
Bond premiums total $70,855 and accumulated amortization
is $13,487.(57,368)
43,892 46,992
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are deferred in the funds.197,903 138,314
Long-term liabilities are not due and payable in the current period and,
therefore, are not reported in the funds.
General obligation bonds (2,990,000)
Revenue bonds (1,505,000)
Capital lease obligations (93,095)
Accrued interest payable (73,405)
Compensated absences (411,019)
Other postemployment benefits (13,894)
(5,086,413) (5,281,229)
Total Net Assets – Governmental Activities 8,143,244$ 9,036,108$
revenues in the governmental funds, but are amortized over the life of
the debt obligation in the statement of net assets:
General Fund
TOWN OF VINTON, VIRGINIA
TO THE STATEMENT OF NET ASSETS
June 30, 2010
Amounts reported for governmental activities in the statement of net assets
The Notes to Financial Statements are
an integral part of this statement.
15
EXHIBIT 5
Comparison
Only)
2010 2009
REVENUES
General property taxes 403,172$ 435,373$
Other local taxes 3,942,775 3,614,140
Permits, privilege fees, and regulatory licenses 12,116 11,321
Fines and forfeitures 94,548 116,463
Revenues from use of money and property 156,533 201,341
Charges for services 328,116 319,293
Other 3,562 4,638
Gain sharing 435,113 416,300
Recovered costs 150,488 136,045
Contribution from Roanoke County 5,807 10,709
Non-categorical aid 405,975 424,388
Categorical aid 1,173,407 1,243,160
Total revenues 7,111,612 6,933,171
EXPENDITURES
Current:
General government administration 641,853 652,359
Public safety 3,200,859 3,259,980
Public works 2,164,328 2,219,226
Parks, recreation, and cultural 574,215 571,291
Community development 365,366 316,267
Capital projects 90,570 384,982
Debt service:
Principal retirement 253,500 241,585
Interest and fiscal charges 205,189 212,090
Total expenditures 7,495,880 7,857,780
Excess of expenditures over revenues (384,268) (924,609)
OTHER FINANCING SOURCES
Proceeds from sale of capital assets 17,491 15,560
Transfers in 78,466 126,018
Total other financing sources 95,957 141,578
Net change in fund balances (288,311) (783,031)
FUND BALANCES AT JULY 1 1,971,496 2,754,527
FUND BALANCES AT JUNE 30 1,683,185$ 1,971,496$
General Fund
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND
Year Ended June 30, 2010
The Notes to Financial Statements are
an integral part of this statement.
16
EXHIBIT 6
Comparison
Only)
2010 2009
Net change in fund balances governmental fund (288,311)$ (783,031)$
4,502 (6,686)
(855,858) 1,076,598
59,589 46,529
250,400 (22,193)
(63,186) 16,508
Change in net assets of governmental activities
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 and other postemployment benefits do
not require the use of current financial resources and therefore
are not reported as expenditures in governmental funds.
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 ($956,422)
and the value of capital assets disposed ($63,996)exceeded
capital outlays ($164,560) in the current period.
Amounts reported for governmental activities in the statement of
activities are different because:
TOWN OF VINTON, VIRGINIA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUND TO THE
STATEMENT OF ACTIVITIES
Year Ended June 30, 2010
General Fund
Revenues in the statement of activities that do not provide
current financial resources are not reported as revenues in the
funds.
The Notes to Financial Statements are
an integral part of this statement.
17
EXHIBIT 7
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
General property taxes 499,215$ 499,215$ 403,172$ (96,043)$
Other local taxes 4,064,223 4,064,223 3,942,775 (121,448)
Permits, privilege fees, and 14,100 14,100 12,116 (1,984)
regulatory licenses
Fines and forfeitures 118,000 118,000 94,548 (23,452)
Revenues from use of money 227,000 227,000 156,533 (70,467)
and property
Charges for services 356,250 356,250 328,116 (28,134)
Other 10,000 16,685 3,562 (13,123)
Gain sharing 450,000 450,000 435,113 (14,887)
Recovered costs 192,900 200,262 150,488 (49,774)
Contribution from Roanoke County - - 5,807 5,807
Non-categorical aid 454,749 454,749 405,975 (48,774)
Categorical aid 1,270,720 1,379,853 1,173,407 (206,446)
Total revenues 7,657,157 7,780,337 7,111,612 (668,725)
EXPENDITURES
Total expenditures 7,662,157 8,037,598 7,580,265 457,333
OTHER FINANCING SOURCES
Proceeds from sale of capital assets 5,000 5,000 17,491 12,491
Net change in fund balance -$ (252,261)$ (372,696)$ (120,435)$
Budgeted Amounts
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, 2010
The Notes to Financial Statements are
an integral part of this statement.
18
EXHIBIT 8
Only)
2010 2009
ASSETS
Current assets:
Total current assets 1,337,876 2,426,851
Noncurrent assets:
Bond issue costs, net 75,107 79,438
Capital assets:
Total noncurrent assets 11,983,182 11,874,747
Total assets 13,321,058 14,301,598
LIABILITIES
Current liabilities:
Total current liabilities 674,634 677,612
Noncurrent liabilities:
Total noncurrent liabilities 6,911,635 7,313,580
Total liabilities 7,586,269 7,991,192
NET ASSETS
Invested in capital assets, net of related debt 5,437,639 5,342,230
Unrestricted 297,150 968,176
Total net assets 5,734,789$ 6,310,406$
Water and Sewer
Business-type Activities –
Enterprise Fund
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET ASSETS
PROPRIETARY FUND
June 30, 2010
The Notes to Financial Statements are
an integral part of this statement.
19
EXHIBIT 9
Only)
2010 2009
OPERATING REVENUES
Water service charges and fees 1,104,196$ 1,015,264$
Sewer service charges and fees 1,292,309 1,235,277
Water/sewer penalties 43,129 39,213
Other revenue 298,591 236,198
Total operating revenues 2,738,225 2,525,952
OPERATING EXPENSES
Salaries 809,286 792,182
Fringe benefits 274,419 277,793
Contractual services 65,168 51,767
Maintenance 48,507 67,360
Rent, utilities, and insurance 361,056 312,948
Materials and supplies 112,621 100,936
Equipment repairs and rentals 36,998 32,775
Sewage treatment 345,141 350,098
Purchase of water 141,569 145,714
Other 166,953 181,022
Depreciation 658,380 633,509
Amortization 4,330 4,331
Total operating expenses 3,024,428 2,950,435
Operating loss (286,203) (424,483)
NON-OPERATING REVENUE (EXPENSE)
Interest income 3,551 43,592
Interest expense (195,038) (213,792)
Loss on disposal of capital asset (19,461) (25,088)
Net non-operating expense (210,948) (195,288)
Loss before transfers and contributions (497,151) (619,771)
TRANSFERS OUT (78,466) (126,018)
CAPITAL CONTRIBUTIONS - 303,556
Change in net assets (575,617) (442,233)
NET ASSETS AT JULY 1 6,310,406 6,752,639
NET ASSETS AT JUNE 30 5,734,789$ 6,310,406$
TOWN OF VINTON, VIRGINIA
Business-type Activities –
Enterprise Fund
Water and Sewer
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUND
Year Ended June 30, 2010
The Notes to Financial Statements are
an integral part of this statement.
20
EXHIBIT 10
Only)
OPERATING ACTIVITIES
Receipts from customers 2,372,827$ 2,321,578$
Receipts from other sources 298,591 236,198
Payments to suppliers (1,314,701) (1,130,811)
Payments to employees (1,071,607) (1,064,693)
Net cash provided by operating activities 285,110 362,272
NONCAPITAL FINANCING ACTIVITIES
Transfers to other funds (78,466) (126,018)
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchases of capital assets (775,899) (1,499,927)
Principal paid on long-term liabilities (385,135) (281,331)
Interest paid (202,673) (231,950)
Net cash provided by (used in) capital and related
financing activities (1,363,707) (2,013,208)
INVESTING ACTIVITIES
Interest received on investments 3,551 43,592
Net decrease in cash and cash equivalents (1,153,512) (1,733,362)
CASH AND CASH EQUIVALENTS
Ending at June 30 786,182$ 1,939,694$
RECONCILIATION TO EXHIBIT 8
Cash and cash equivalents 54,505$ 806,191$
Cash and cash equivalents, restricted 731,677 1,133,503
786,182$ 1,939,694$
Reconciliation of operating loss to net cash
Operating loss (286,203)$ (424,483)$
Adjustments to reconcile operating loss to
net cash provided by operating activities:
Depreciation and amortization 662,710 637,840
Change in certain assets and liabilities:
(Increase) decrease in:
Receivables, net (66,808) 31,824
Inventories 3,968 (3,662)
Prepaid items (1,698) (1,811)
(Decrease) increase in:
Accounts payable and accrued liabilities (26,860) 122,564
Net cash provided by operating activities 285,109$ 362,272$
NONCASH CAPITAL AND RELATED FINANCING
Capital asset purchases included in accounts payable 14,708$ -$
Capital asset additions donated by developers -$ 303,556$
Business-type Activities –
Enterprise Fund
Water and Sewer
STATEMENT OF CASH FLOWS
PROPRIETARY FUND
Year Ended June 30, 2010
The Notes to Financial Statements are
an integral part of this statement.
21
(Continued)22
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Note 1.Summary of Significant Accounting Policies
A.The Financial Reporting Entity
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.
Jointly 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 year ended June 30, 2010,the Town remitted $178,889 to
the Authority for services. A separate financial statement can be obtained from the Roanoke
Valley Resource Authority, 110 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
$41,719 for the year ended June 30, 2010. Separate financial statements are not available.
(Continued)23
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Note 1.Summary of Significant Accounting Policies (Continued)
A.The Financial Reporting Entity (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 $14,000 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 operational or 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)24
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
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 revenue as available if it is collected within
45 days of the end of the current fiscal period. 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)25
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
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 $375,441 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)26
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Note 1.Summary of Significant Accounting Policies (Continued)
E.Budgets and Budgetary 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:
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)27
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Note 1.Summary of Significant Accounting Policies (Continued)
I.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:
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 $70,797 of interest capitalized for the year ended
June 30, 2010.
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)28
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
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 Equity
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 thos e
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 amounts in the prior-year comparison information have been reclassified for comparative
purposes to conform with the presentation in the current-year financial statements.
(Continued)29
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
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 Policy:
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
bankers’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-1” (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. Bankers’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-1” 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)30
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Note 2.Deposits and Investments (Continued)
Investments (Continued)
Interest Rate Risk:
As of June 30, the fair value and weighted average maturity investments were as follows:
Investment Type Fair Value
Credit
Rating
Average
Maturity*
Virginia LGIP $1,975,685 AAAm 31.38
Money Market Funds –Wells Fargo (Heritage)731,677 AAAm 6.49
Total investments $2,707,362
Portfolio weighted average maturity 37.87
* Weighted average maturity in days.
Custodial Credit Risk:
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.
Fair
Value
Investments
Deposits
Total deposits and investments
Reconciliation of deposits and investments to Exhibit 1:
Total deposits and investments
Restricted cash and cash equivalents consists primarily of unused bond proceeds.
(Continued)31
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Note 3.Receivables
Receivables consist of the following:
Governmental Business-type
Activities Activities Total
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:
Unavailable Unearned Total
(Continued)32
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Note 4.Due from Other Governmental Units
A summary of funds due from other governmental units was as follows:
(Continued)33
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
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 $1,706,092 $- $- $1,706,092
Construction in progress 87,042 1,847 - 88,889
Total capital assets, not depreciated 1,793,134 1,847 - 1,794,981
Capital assets, depreciated
Buildings and improvements 9,304,851 --9,304,851
Machinery and equipment 4,850,083 160,874 1,111,504 3,899,453
Infrastructure 2,430,835 1,839 - 2,432,674
Total capital assets,depreciated 16,585,769 162,713 1,111,504 15,636,978
Less accumulated depreciation for:
Buildings and improvements 2,381,217 289,605 - 2,670,822
Machinery and equipment 3,305,568 575,000 1,047,508 2,833,060
Infrastructure 531,583 91,817 - 623,400
Total accumulated depreciation 6,218,368 956,422 1,047,508 6,127,282
Total capital assets,depreciated, net 10,367,401 (793,709)63,996 9,509,696
Governmental activities
capital assets, net $12,160,535 $(791,862)$63,996 $11,304,677
Business-type activities
Capital assets, not depreciated
Land $80,752 $- $- $80,752
Construction in progress 160,457 681,233 199,335 642,355
Total capital assets, not depreciated 241,209 681,233 199,335 723,107
Capital assets, depreciated
Utility plant 16,774,725 229,779 - 17,004,504
Sewage treatment contract 3,816,857 - - 3,816,857
Machinery and equipment 1,045,938 59,469 - 1,105,407
Total capital assets,depreciated 21,637,520 289,248 - 21,926,768
Less accumulated depreciation for:
Utility plant 8,743,693 462,737 - 9,206,430
Sewage treatment contract 633,292 135,423 - 768,715
Machinery and equipment 706,435 60,220 - 766,655
Total accumulated depreciation 10,083,420 658,380 - 10,741,800
Total capital assets, depreciated, net 11,554,100 (369,132)- 11,184,968
Business-type activities
capital assets, net $11,795,309 $312,101 $199,335 $11,908,075
(Continued)34
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Note 5.Capital Assets (Continued)
Included in Governmental Activities’ capital assets is equipment with a cost of $227,500 and
accumulated amortization of $132,708 financed by a capital lease.
Depreciation expense was charged to functions/programs of the primary government as follows:
Construction Commitments
The Town has active construction projects as of June 30,2010,as follows:
Remaining
Commitment
Project Spent to Date Activities
Upgrade Third Street and Niagara Road
sewer lift stations $558,353 $161,647
Wastewater Trunk Line, Phase II 84,001 250,656
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.
Modifications costing approximately $46.0 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)35
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Note 6.Long-Term Liabilities
The following is a summary of changes in long-term liabilities for the year:
Governmental Beginning Ending Due Within
Activities Balance Additions Reductions Balance One Year
benefits - 13,894 - 13,894 -
Business-type
Activities
benefits - 1,356 - 1,356 -
The annual requirements to amortize long-term debt and related interest are as follows:
Governmental Activities Business-type Activities
General Obligation
Bonds Revenue Bonds Capital Leases
General Obligation
Bonds Revenue Bonds
Fiscal
Year Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest
2011 $145,000 $125,879 $70,000 $65,274 $45,501 $4,283 $301,878 $146,791 $100,000 $119,525
2012 145,000 120,573 75,000 62,941 47,594 2,190 312,975 135,695 105,000 115,425
2013 155,000 114,672 75,000 60,064 - - 324,498 124,172 110,000 111,125
2014 160,000 108,260 75,000 57,079 - - 265,570 112,209 115,000 106,625
2015 165,000 101,873 80,000 54,002 - - 237,382 103,649 120,000 101,925
2016-2020 920,000 403,125 450,000 217,454 - - 1,305,966 400,188 655,000 435,988
2021-2025 1,145,000 180,453 570,000 107,213 - - 1,481,187 179,229 835,000 262,375
2026-2030 155,000 11,750 110,000 8,065 - - 328,569 9,617 615,000 47,125
$2,990,000 $1,166,585 $1,505,000 $632,092 $93,095 $6,473 $4,558,025 $1,211,550 $2,655,000 $1,300,113
(Continued)36
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Note 6.Long-Term Liabilities (Continued)
Details of long-term indebtedness are as follows:
Interest
Rates Date Issued
Maturity
Date
Original
Issue Activities
type
Activities
Virginia Resources Authority Taxable:
G.O. Water and Sewer Bonds 3.00%01/17/97 12/01/13 $1,120,000 $- $326,280
Revenue Bonds:
Infrastructure Revenue Bonds 2.38-4.48%11/04/04 10/01/24 $1,015,000 $830,000 $-
Capital Leases:
(Continued)37
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
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 five years of service. Employees are eligible for an unreduced
retirement benefit at age 65 with five 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 1.70% 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 5.00% 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 at http://www.varetire.org/Pdf/Publications/2009-Annual-Report.pdf
or obtained by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, Virginia
23218-2500.
Funding Policy
Plan members are required by Title 51.1 of the Code of Virginia (1950), as amended, to contribute
5% of their annual reported compensation to the VRS. This 5.00% 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 2010
including the employee’s portion was 13.63% of annual covered payroll.
Annual Pension Cost
For 2010, the Town’s annual pension cost of $477,750 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
(c) 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)38
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Note 7.Defined Benefit Pension Plan (Continued)
Trend Information for the Town
June 30, 2010 $477,750 100%$-
June 30,2009 $473,590 100%$-
June 30, 2008 $371,405 100%$-
Funded Status and Funding Progress
As of June 30, 2009, the most recent actuarial valuation date, the plan was 93.08% funded. The
actuarial accrued liability for benefits was $13,108,688, and the actuarial value of assets was
$12,201,884, resulting in an unfunded actuarial accrued liability (UAAL) of $906,804. The covered
payroll (annual payroll of active employees covered by the plan) was $3,601,670, and ratio of the
UAAL to the covered payroll was 25.18%.
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.Other Post-Employment Benefits
The Governmental Accounting Standards Board (GASB) has issued Statement No. 45, Financial
Reporting for Post-employment Benefit Plans Other Than Pension Plans. The Statement establishes
standards for the measurement, recognition and display of other post-employment benefits (OPEB)
expense and related liabilities in the financial statements. In addition to salary, many employees earn
benefits over their years of service that will not be received until they retire. The cost of these post-
employment benefits are part of the compensation employees earn each year, rather than costs of
future years when the benefits are paid and should be recognized during their years of service. The
Town prospectively adopted the requirements of GASB 45 during the fiscal year ended
June 30, 2010. Recognition of the liability accumulated from prior years will be phased in over 30
years, commencing with the 2010 liability.
(Continued)39
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Note 8.Other Post-Employment Benefits (Continued)
Plan Description
The Town provides post-employment medical and dental benefits to its eligible retirees and their
dependents who elect to stay in the plans. At retirement, retirees under the age of 65 may participate
in one of the Town’s health and dental plans and may continue coverage under these plans until age
65 or becoming eligible for Medicare, whichever comes first. The Town contributes $200 per month
towards this coverage with the retiree paying the remainder of the premium. Medicare-eligible
retirees may participate in the Medicare supplement only. Medicare-eligible retirees pay 100% of the
Medicare supplement. Additionally, the retirees receive an implicit benefit from participating in the
Town’s health and dental plans through lower insurance rates created by the blending of the retirees
with active employees rates. The Town Council may change, add, or delete benefits (including
contributions required of retired employees) as deemed appropriate.
Participants are eligible for the plan at age 55 if they have completed 25 years of service. Retiring
employees must have been active employees when they retire.
Funding Policy
The Town currently funds post-employment benefits on a pay-as-you-go basis. The Town does not
intend to establish a trust to pre-fund this liability.
Annual OPEB Cost and Net OPEB Obligation
For the year ended June 30,2010, the Town’s annual OPEB cost (expense) of $55,400 was equal to
its Annual Required Contribution (ARC). The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed 30 years. For the year ended 2010, the
Town’s pay-as-you-go funding totaled $40,150 and resulted in a Net OPEB obligation of $15,250.
The pay-as-you-go funding includes the Town’s contribution towards retiree health care premiums of
$8,504, and an implicit subsidy of the retiree health care premiums created through the blending of
active employee and retiree insurance rates.
(Continued)40
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Note 8.Other Post-Employment Benefits (Continued)
Annual OPEB Cost and Net OPEB Obligation (Continued)
The Town’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the
net OPEB obligation for 2010 are as follows:
Fiscal Year
Ended
OPEB
Obligation
Annual OPEB
Cost
Contributed
Net OPEB
Obligation
June 30, 2010 $55,400 72.5%$15,250
Funded Status and Funding Progress
As of January 1, 2009, the Town’s most recent actuarial valuation date, the unfunded actuarial
accrued liability (UAAL) for benefits was $479,500, all of which was unfunded. The covered payroll
(annual payroll of active employees covered by the plan) was $3,715,300, and the ratio of the UAAL
to the covered payroll was 12.91%.
Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and healthcare cost trends. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates
are made about the future.
Projections of benefits for financial reporting purposes are based on the substantive plan and include
the types of benefits provided at the time of each valuation and the historical pattern of sharing of
benefit costs between the employer and plan members to that point. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short-term volatility in
actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective
of the calculations. The projection of benefits for financial reporting purposes does not explicitly
incorporate the potential effects of legal or contractual funding limitations on the pattern of cost
sharing between the employer and plan members in the future.
In the January 1, 2009 actuarial valuation, the projected unit credit cost method was used to determine
the liabilities. Under this method, the post-retirement health costs are assumed to be earned ratably
from the date of hire to the participant’s full eligibility age. The actuarial assumptions used a 4%
discount rate and an initial annual healthcare cost trend of 6.8% reduced by decrements each year to
arrive at an ultimate healthcare cost trend rate of 4.5%. The unfunded accrued liability is being
amortized over 30 years. The remaining amortization period at June 30, 2010 is 29 years.
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.
(Continued)41
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Note 9.Service Contracts
Sewage 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 10.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.
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% 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 wer e
as follows:
Note 11.Leases
The Town leases a portion of a building to the Virginia State Department of Health for $1,602 per
month for a term of one year expiring on April 1, 2011. Upon expiration, the lease will renew
automatically on a month to month basis until terminated by either party.
(Continued)42
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Note 12.Risk Management
The Town 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
2009-2010, total premiums paid were approximately $98,457 Benefits are those afforded through
Commonwealth 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 Liability
The Town provides general liability and other insurance through policies with Virginia Municipal
Self-Insurance Association. During 2009-2010, total premiums paid were approximately $185,509.
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 2009-2010, total premiums paid were approximately $550,760.
Note 13.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.
(Continued)43
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Note 13.Commitments and Contingencies (Continued)
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 Sharing 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 states
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 states 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.
Note 14.Major Customer/Taxpayer
During fiscal year 2010, approximately 9.3% of the Town’s business-type revenues were generated
by one industrial customer.
Note 15.Interfund Activity
The primary purpose of the $78,466 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.
44
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Note 16.Subsequent Events
On January 6, 2010, the Town and Roanoke County reached an agreement to merge the Town’s
E-911 dispatch center into the Roanoke County Emergency Communications Center. This merger
became effective July 1, 2011. This agreement stipulated the formation of an Emergency
Communication Centers Advisory Board. The Town has two representatives on this advisory board.
The Town is required to contribute toward the operational cost of the Communication Center based
on a formula which considers calls for service and number of incidents. Additionally property was
transferred from the Town to Roanoke County with a fair market value of $14,877 on the effective
date of the merger. The merger also resulted in the transfer of the Town’s E-911 dispatch employees
to Roanoke County.
Note 17.New Accounting Standards
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions,
provides new fund balance classifications and clarifies governmental fund type definitions. This
statement establishes fund balance classifications that comprise a hierarchy based primarily on the
extent to which a government is bound to observe constraints imposed upon the use of the resources
reported in governmental funds. Management has not yet evaluated the effects, if any, of adopting
this standard but does not expect them to be material. This statement will be effective for the year
ending June 30, 2011.
THIS PAGE INTENTIONALLY BLANK
45
REQUIRED SUPPLEMENTARY
INFORMATION
EXHIBIT 11
(a)(b)(b-a)(a/b)(c)((b-a)/c)
Unfunded
Actuarial UAAL as of
Actuarial Actuarial Actuarial Accrued Annual Percentage
Valuation Value of Accrued Liability Funded Covered of Covered
Date Assets Liability (AAL)(UAAL)Ratio Payroll Payroll
June 30, 2009 12,201,884$ 13,108,688$ 906,804$ 93.08%3,601,670$ 25.18%
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$ (177,941)$ 101.87%2,787,681$ (6.38)%
June 30, 2005 9,259,266$ 9,590,278$ 331,012$ 96.55%2,519,480$ 13.14%
TOWN OF VINTON, VIRGINIA
ANALYSIS OF FUNDING PROGRESS FOR DEFINED BENEFIT PENSION PLAN
June 30, 2010
46
EXHIBIT 12
(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
January 1, 2009 -$ 479,500$ 479,500$ 0.00%3,715,300$ 12.91%
TOWN OF VINTON, VIRGINIA
ANALYSIS OF FUNDING PROGRESS FOR OTHER POSTEMPLOYMENT BENEFITS
June 30, 2010
47
48
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.
Debt Capacity .....................................................................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:
Reports for
34 in 2003; schedules presenting government-
include information beginning in that year.
TABLE 1
2010 2009 2008 2007 2006 2005 2004 2003
Governmental activities
Invested in capital assets, net of related debt 6,760,474$ 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 20,000
Unrestricted 1,362,770 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 8,143,244$ 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 5,437,639$ 5,342,230$ 5,497,604$ 5,555,583$ 6,072,220$ 6,042,240$ 6,176,039$ 6,388,053$
Restricted - - - - - - - -
Unrestricted 297,150 968,176 1,255,035 1,837,429 1,882,467 2,027,777 2,109,040 2,216,182
Total business-type activities net assets 5,734,789$ 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 12,198,113$ 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 20,000
Unrestricted 1,659,920 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 13,878,033$ 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 GASB Statement 34 in fiscal year 2003.
TOWN OF VINTON, VIRGINIA
NET ASSETS BY COMPONENT
Last Eight Fiscal Years
(accrual basis of accounting)
49
TABLE 2
2010 2009 2008 2007 2006 2005 2004 2003
Expenses
Governmental activities
General government 1,023,227$ 1,037,073$ 906,072$ 1,842,084$ 758,537$ 758,738$ 687,073$ 736,478$
Public safety 3,446,746 3,593,946 3,407,536 3,454,713 2,973,885 2,678,245 2,693,087 2,405,198
Public works 2,457,832 2,455,754 2,905,249 2,058,379 1,583,537 1,505,832 1,201,386 1,409,330
Parks, recreation, and cultural 617,778 610,756 575,895 300,854 456,343 544,242 535,102 538,083
Community development 393,160 339,304 227,303 218,941 206,510 196,075 223,272 196,691
Interest on long-term debt 203,787 211,189 220,551 188,966 140,534 148,719 5,295 7,268
Total governmental activities 8,142,530 8,248,022 8,242,606 8,063,937 6,119,346 5,831,851 5,345,215 5,293,048
Business-type activities
Water and sewer 3,238,927 3,189,315 3,148,236 3,035,847 2,380,728 2,174,939 2,197,396 1,863,274
Total business-type activities expense 3,238,927 3,189,315 3,148,236 3,035,847 2,380,728 2,174,939 2,197,396 1,863,274
Total primary government expenses 11,381,457$ 11,437,337$ 11,390,842$ 11,099,784$ 8,500,074$ 8,006,790$ 7,542,611$ 7,156,322$
Program Revenues
Governmental activities
Charges for services
Public safety 108,187$ 172,357$ 128,216$ 231,207$ 203,532$ 193,264$ 132,263$ 313,961$
Public works 110,175 132,382 114,274 110,220 114,267 113,917 113,966 113,434
Other activities 489,901 436,835 450,338 370,838 502,979 544,415 586,866 440,873
Operating grants and contributions 1,366,971 1,454,813 1,691,163 1,282,244 1,102,340 1,121,561 1,122,314 1,016,694
Capital grants and contributions 8,034 2,146 91,590 1,337,016 123,240 737,716 - 10,212
Total governmental activities program revenues 2,083,268 2,198,533 2,475,581 3,331,525 2,046,358 2,710,873 1,955,409 1,895,174
Business-type activities
Charges for services
Water and sewage 2,439,634 2,289,754 2,255,505 2,274,224 2,143,032 1,873,821 1,807,775 1,687,904
Capital grants and contributions - 303,556 - 48,540 - - - -
Total business-type activities program revenues 2,439,634 2,593,310 2,255,505 2,322,764 2,143,032 1,873,821 1,807,775 1,687,904
Total primary government program revenues 4,522,902$ 4,791,843$ 4,731,086$ 5,654,289$ 4,189,390$ 4,584,694$ 3,763,184$ 3,583,078$
Net (expense) revenue
Governmental activities (6,059,262)$ (6,049,489)$ (5,767,025)$ (4,732,412)$ (4,072,988)$ (3,120,978)$ (3,389,806)$ (3,397,874)$
Business-type activities (799,293) (596,005) (892,731) (713,083) (237,696) (301,118) (389,621) (175,370)
Total primary government net expense (6,858,555)$ (6,645,494)$ (6,659,756)$ (5,445,495)$ (4,310,684)$ (3,422,096)$ (3,779,427)$ (3,573,244)$
(Continued)
(accrual basis of accounting)
TOWN OF VINTON, VIRGINIA
CHANGE IN NET ASSETS BY COMPONENT
Last Eight Fiscal Years
50
TABLE 2
2010 2009 2008 2007 2006 2005 2004 2003
(accrual basis of accounting)
TOWN OF VINTON, VIRGINIA
CHANGE IN NET ASSETS BY COMPONENT
Last Eight Fiscal Years
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes
Property taxes 419,401$ 434,176$ 467,806$ 411,866$ 397,200$ 397,424$ 400,896$ 400,780$
Sales tax 1,113,322 1,132,519 1,132,083 1,148,136 1,065,843 1,177,089 1,156,165 1,056,387
Business license tax 842,384 437,797 452,672 413,400 403,818 192,344 183,824 167,991
Meals tax 803,044 861,286 860,961 806,916 715,267 584,998 539,348 512,792
Other taxes 456,536 386,703 338,292 397,014 423,145 410,121 380,078 351,218
Utilities tax 346,886 795,268 804,812 790,308 719,289 734,279 558,704 475,006
Intergovernmental revenue not restricted 408,922 631,320 679,009 755,599 437,496 334,649 308,307 245,941
Investment earnings not restricted 664,975 28,917 112,672 210,193 147,368 80,837 36,694 59,870
Restricted investment earnings 3,187 187 11,087 145,554 113,317 37,903 - -
Gain on disposal of property - - - - 51,366 - 48,103 -
Other 29,275 16,038 77,077 48,702 27,774 45,384 29,969 66,891
Transfers 78,466 126,018 113,486 61,900 7,500 - - -
Total governmental activities 5,166,398 4,850,229 5,049,957 5,189,588 4,509,383 3,995,028 3,642,088 3,336,876
Business-type activities:
Investment earnings not restricted 1,824 16,719 67,772 110,024 76,855 42,669 21,425 34,977
Restricted investment earnings 1,727 26,873 47,234 - - - - -
Other 298,591 236,198 250,838 103,284 53,011 52,300 49,040 104,552
Transfers (78,466) (126,018) (113,486) (61,900) (7,500) - - -
Total business-type activities 223,676 153,772 252,358 151,408 122,366 94,969 70,465 139,529
Total primary government 5,390,074$ 5,004,001$ 5,302,315$ 5,340,996$ 4,631,749$ 4,089,997$ 3,712,553$ 3,476,405$
Changes in Net Assets
Governmental activities (892,864)$ (1,199,260)$ (717,068)$ 457,176$ 436,395$ 874,050$ 252,282$ (60,998)$
Business-type activities (575,617) (442,233) (640,373) (561,675) (115,330) (206,149) (319,156) (35,841)
Total primary government (1,468,481)$ (1,641,493)$ (1,357,441)$ (104,499)$ 321,065$ 667,901$ (66,874)$ (96,839)$
51
TABLE 3
2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
General Fund
Reserved 361,090$ 272,645$ 314,902$ 2,835,003$ 4,625,979$ 3,999,505$ 513,023$ 950,814$ 1,685,175$ 1,083,398$
Unreserved 1,322,095 1,698,851 2,439,625 1,747,348 2,927,980 3,011,346 3,101,323 3,133,089 3,126,600 4,138,178
Total general fund 1,683,185$ 1,971,496$2,754,527$ 4,582,351$ 7,553,959$ 7,010,851$ 3,614,346$ 4,083,903$4,811,775$ 5,221,576$
TOWN OF VINTON, VIRGINIA
FUND BALANCES - GOVERNMENTAL FUND
Last Ten Fiscal Years
(modified accrual basis of accounting)
52
TABLE 4
2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Revenues
Taxes 4,345,947$ 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$
Permits, privilege fees, and regulatory licenses 12,116 11,321 14,035 10,852 10,029 9,006 9,160 7,446 8,342 8,249
Fines and forfeitures 94,548 116,463 102,720 103,816 93,022 76,294 92,799 96,001 72,046 61,694
Revenue from use of money and property 156,533 201,341 298,369 527,343 436,303 301,240 228,260 254,994 318,000 475,097
Charges for services 328,116 319,293 270,521 190,513 323,882 358,378 518,493 290,325 231,775 213,492
Other 3,562 4,638 4,718 10,740 5,175 954 6,302 13,009 6,126 5,107
Intergovernmental 2,170,790 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
Total revenues 7,111,612 6,933,171 7,365,524 8,248,648 6,498,466 6,697,848 5,657,300 5,037,302 4,899,959 5,077,791
Expenditures
General government 641,853 652,359 695,916 660,932 629,650 625,170 546,248 587,700 618,015 550,934
Public safety 3,200,859 3,259,980 3,379,924 3,209,720 2,813,661 2,514,263 2,520,584 2,209,600 1,884,686 1,640,239
Public works 2,164,328 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
Parks, recreation, and cultural 574,215 571,291 511,481 294,221 445,612 535,139 527,157 524,514 443,427 451,373
Community development 365,366 316,267 221,764 217,263 206,379 222,780 223,204 193,601 166,993 185,116
Capital projects 90,570 384,982 1,962,873 5,899,542 907,147 1,339,795 1,057,436 865,791 829,614 298,700
Debt service:
Principal 253,500 241,585 208,404 154,021 148,208 46,616 59,126 55,106 33,722 32,019
Interest 205,189 212,090 208,912 202,495 157,905 99,758 5,295 7,264 6,091 7,789
Debt issuance costs - - 1,856 - - - - - - -
Total expenditures 7,495,880 7,857,780 9,548,170 12,417,684 6,788,461 6,822,407 6,379,938 5,878,387 5,320,066 4,699,381
Excess (deficiency) of revenues over
expenditures (384,268) (924,609) (2,182,646) (4,169,036) (289,995) (124,559) (722,638) (841,085) (420,107) 378,410
Other Financing Sources (Uses)
Issuance of debt - - 227,500 1,045,000 755,000 3,515,000 - 113,213 - -
Premium on issuance of debt - - - 45,554 19,237 6,064 - - - -
Proceeds from sale of capital assets 17,491 15,560 13,836 4,825 51,366 - 253,081 - 10,306 36,137
Transfers in 78,466 126,018 113,486 61,900 7,500 - - - - 225,000
Total other financing sources 95,957 141,578 354,822 1,157,279 833,103 3,521,064 253,081 113,213 10,306 261,137
Net change in fund balances (288,311)$ (783,031)$ (1,827,824)$(3,011,757)$543,108$ 3,396,505$ (469,557)$ (727,872)$ (409,801)$ 639,547$
Debt service as a percentage of
TOWN OF VINTON, VIRGINIA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUND
Last Ten Fiscal Years
(modified accrual basis of accounting)
53
TABLE 5
Public Total
Fiscal Real Personal Machinery Service Mobile Assessed
Year Estate Property and Tools Corporation Homes Value
2010 468,470,600$ 42,803,545$7,303,000$ 15,632,460$48,190$ 534,257,795$
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 75,595 418,013,042
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
Notes: Assessed value equals actual value. Property is assessed at full market value and is reassessed every year.
TOWN OF VINTON, VIRGINIA
ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY (1)
Last Ten Fiscal Years
54
TABLE 6
Percentage Percentage
of Total Town of Total Town
Customer Revenue Rank Revenue Revenue Rank Revenue
Precision Fabrics Group, Inc.225,333$ 1 9.30%56,911$ 1 3.71%
Aramark 91,727 2 3.78%40,327 2 2.63%
Cardinal Glass 54,115 3 2.23%N/A N/A N/A
The Berkshire 49,752 4 2.05%11,669 6 0.76%
RGM Properties 36,370 5 1.50%17,535 4 1.14%
Blue Ridge Manor Apartments 33,638 6 1.39%18,495 3 1.21%
Clearview Manor 24,454 7 1.01%9,982 7 0.65%
Roanoke County Schools 22,731 8 0.94%15,739 5 1.03%
Richard Dickerson/RL Mansard Sq 17,220 9 0.71%9,676 8 0.63%
American Efficiency 9,891 10 0.41%4,918 10 0.32%
Skyline Cleaners/Cardinal Clean Center (1)8,393 11 0.35%7,736 9 0.50%
573,624$ 192,988$
1) FY 2010 % was based on total water and sewer revenue of $2,423,965
2) FY 2001 % was based on total water and sewer revenue of $1,533,925
3) Skyline Cleaners was bought out by Cardinal Clean Center in November 2009
Fiscal Year 2010 Fiscal Year 2001
TOWN OF VINTON, VIRGINIA
PRINCIPAL WATER AND SEWER CUSTOMERS
Current Year and Nine Years Ago
55
TABLE 7
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30,Fiscal Year Amount of Levy Years Amount of Levy
2010 627,699$ 607,701$ 96.81%- 607,701$ 96.81%
2009 631,339 619,539 98.13%16,229 635,768 100.70%
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%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%
Source: Detailed Town property tax records.
Note: Amount collected includes any penalties and interest on late payments.
TOWN OF VINTON, VIRGINIA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Total Collections to Date
Collected within the
Fiscal Year of the Levy
56
TABLE 8
2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Debt limit 53,425,780$ 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$
Total net debt applicable to limit 7,548,025 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
Legal debt margin 45,877,755$ 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$
Total net debt applicable to the limit
as a percentage of debt limit 14.13%14.98%18.74%20.37%17.83%14.95%4.95%2.33%2.63%2.99%
Legal Debt Margin Calculation for Fiscal Year 2010
Assessed value 534,257,795$
Debt limit (10% of assessed value)53,425,780$
Less debt applicable to limit:
General obligation bonds 7,548,025
Legal debt margin 45,877,755$
TOWN OF VINTON, VIRGINIA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
57
TABLE 9
Percentage of
Actual Value
Fiscal General of Taxable Per Capital Revenue
Year Bonded Debt Property Capita Leases Bonds
2010 2,990,000$ 0.56%383$ 93,095$ 1,505,000$
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 -
Total Percentage of
Fiscal General Revenue Primary Personal Per
Year Bonded Debt Bonds Government Income Capita
2010 4,558,025$ 2,655,000$ 11,801,120$ 3.68%1,510
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%135
2001 1,005,917 - 1,138,587 0.52%158
TOWN OF VINTON, VIRGINIA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities –
General Bonded Debt
Other Governmental
Activities Debt
Business-type Activities
58
TABLE 10
Less:Net
Fiscal Gross Operating Available
Year Revenue Expenses Revenue Principal Interest Coverage
2010 2,741,776$ 3,219,466$ (477,690)$ 385,135$ 195,038$ (0.82)
2009 2,569,544 3,164,227 (594,683) 281,331 213,792 (1.20)
2008 2,621,349 3,134,236 (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
N/A - The Town does not have this information available prior to fiscal year 2004.
Last Ten Fiscal Years
PLEDGED REVENUE COVERAGE
TOWN OF VINTON, VIRGINIA
Debt Service
Notes: Details regarding the Town’s outstanding debt can be found in the Notes to Financial Statements.
59
TABLE 11
Fiscal Total Per Capita Public
Year Personal Personal School Unemployment
Ended (1)Population (2)Income (3)Income (3)Enrollment (3)Rate (3)
2010 7,814 320,522,466$ 41,019$ 14,793 6.40%
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 7,210 219,342,620 30,422 13,856 2.00%
(1) Population is based on annual estimates from the Weldon Cooper Center for Public Service.
TOWN OF VINTON, VIRGINIA
DEMOGRAPHIC STATISTICS
Last Ten Fiscal Years
(2) Total PI and Per Capita PI are from the Bureau of Economic Analysis which includes Roanoke
County, City of Salem, and Town of Vinton.
(3) Unemployment rate is for Roanoke County report and includes the Town of Vinton. Source:
Community Profile from Roanoke County.
60
TABLE 12
Percentage Percentage
of Total Town of Total Town
Employer Employees Rank Employment Employees Rank Employment
Precision Fabrics Group, Inc.261 1 7.29%405 1 11.42%
Berkshire 216 2 6.03%164 2 4.62%
Kroger 149 3 4.16%123 3 3.47%
Roanoke County School Board 127 4 3.55%119 4 3.35%
Town of Vinton 107 5 2.99%101 5 2.85%
McDonalds 90 6 2.51% N/A N/A N/A
Aramark Uniform Services 70 7 1.95%90 6 2.54%
Lancerlot 60 8 1.68% N/A N/A N/A
Super Dollar 51 9 1.42% N/A N/A N/A
Woods Service Center 38 10 1.06% N/A N/A N/A
1,169 32.64%1,002 28.25%
Source: Total TOV Employment – Roanoke Valley Regional Commission (Planning)
Fiscal Year 2010 Fiscal Year 2001
TOWN OF VINTON, VIRGINIA
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
61
TABLE 13
2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Function/Program
General government
Management services 4 4 3 4 4 4 4 4 4 4
Finance 5 5 5 5 5 6 5 5 5 5
Planning 3 3 3 3 3 3 3 3 3 3
Police
Officers 24 24 24 25 21 23 17 20 19 18
Civilians 10 10 10 7 11 11 12 10 10 9
Fire
Firefighters and officers 9 9 9 9 9 9 10 9 7 7
Other public works 33 33 32 34 31 32 31 30 32 31
Parks, recreation, and cultural 3 3 2 2 5 13 12 10 10 11
Total 91 91 88 89 89 101 94 91 90 88
TOWN OF VINTON, VIRGINIA
FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
62
TABLE 14
2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Function/Program
General government
Fleet equipment 117 117 62 62 60 60 72 72 72 72
Pieces of equipment maintained 117 117 62 62 60 60 60 60 60 60
Public safety
Police
Arrests 531 658 598 504 600 744 517 445 511 473
Parking violations 139 84 62 16 135 156 78 103 144 94
Traffic violations 2431 3,088 3,034 3,087 2,743 2,725 1,319 1,522 2,022 1,384
EMS
Emergency responses 2219 2,369 2,397 2,459 1,536 2,095 2,007 2,010 1,895 2,052
Fire
Emergency responses 476 764 1,038 673 1,900 2,831 2,650 2,706 2,586 2,755
Public works
Refuse collection
Refuse collected (tons per day)14.00 15.90 18.10 19.00 17.30 17.30 16.80 15.30 14.50 14.40
Recyclables collected (tons per day)1.60 1.60 1.70 1.30 1.80 1.50 N/A N/A N/A N/A
Other public works
Street resurfacing (miles)1.90 3.50 11.10 - - 2.20 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)Closed 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
4th of July 4,000 4,000 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 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 6,000 -
Water
Number of customer accounts 5,040 5,022 4,985 4,984 4,916 4,793 4,763 4,704 4,619 4,563
Miles of distribution lines 61 61 60 60 56 56 56 56 56 55
Volume pumped (million gallons per day average)1.47 1.04 1.29 1.26 1.30 1.30 1.20 1.30 1.40 1.20
Sewer
Number of customer accounts 4609 4,600 4,571 4,573 4,511 4,460 4,430 4,371 4,286 4,230
Miles of collection lines 60 60 59 57 54 54 53 53 53 52
Waste/Water treated (million gallons per day)1.27 1.04 1.24 1.20 1.20 1.49 1.50 1.57 1.38 1.32
N/A - Not available.
TOWN OF VINTON, VIRGINIA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
63
TABLE 15
2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Function/Program
Public safety
Law enforcement vehicles 27 29 27 19 20 18 16 11 11 12
Fire stations 1 1 1 1 1 1 1 1 1 1
Public works
Primary streets (lane miles)21.62 21.62 21.62 18.28 18.78 18.78 16.50 16.50 16.50 16.50
Secondary streets (lane miles)66.32 66.32 66.32 68.78 65.96 65.96 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)1/18 240/4236 180/3600 180/3600 180/3600 180/3600 180/3600 180/3600 180/3600 180/3600
Charles R. Hill Center (Rentals)295 351 205 257 227 227 227 227 227 227
Skate Park Closed Closed 2,400 2,400 2,400 2,400 2,400 1,800 - -
Vinton War Memorial 271 277 151 - - 449 616 480 524 503
Parks/athletic fields
Gearhart Park (TOV owned-Leased to Rke County)N/A 37/3000 N/A N/A N/A N/A N/A N/A N/A N/A
Jaycee Field (Seasonal ballgames)Closed Closed Closed Closed Closed 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 - 1,120 - - - - -
War Memorial Playground 6,000 6,000 6,000 5,000 6,000 6,000 4,000 4,000 4,000 4,000
Vinton Municipal Pool 11,270 11,000 11,000 7,100 7,147 6,763 7,531 7,147 7,147 7,147
Water and sewer
Water mains (miles)61 61 60 60 56 56 56 56 56 55
Sanitary sewers (miles)60 60 59 59 54 54 53 53 53 52
Stormwater
Storm sewers (miles)12 12 12 12 11 11 11 11 11 11
Signalized Street Intersections
Traffic Signals (each)11 11 11 11 11 11 11 11 10 10
TOWN OF VINTON, VIRGINIA
Last Ten Fiscal Years
64
THIS PAGE INTENTIONALLY BLANK
65
COMPLIANCE SECTION
66
Providing Professional Business Advisory & Consulting Services
319 McClanahan Street, S.W. • P.O. Box 12388 • Roanoke, VA 24025-2388 • 540-345-0936 • Fax: 540-342-6181 • www.BEcpas.com
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
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, 2010, and have issued our report thereon dated September 30,2010. 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 was not designed to identify all deficiencies in internal control
over financial reporting that might be significant deficiencies or material weaknesses and therefore,
there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have
been identified. However, as described in the Schedule of Findings and Responses, we identified
certain deficiencies in internal control over financial reporting that we consider to be material
weaknesses and others that we consider to be significant deficiencies.
A deficiency in internal control exists when the design of operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a
timely basis. We consider the deficiency described as 07-1 in the accompanying schedule of
findings and responses to be a material weakness.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that
is less severe than a material weakness, yet important enough to merit attention by those charged with
governance. We consider the deficiency described as 08-01 in the accompanying schedule of
findings and responses to be a significant deficiency in internal control over financial reporting.
67
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 no instances of noncompliance or other matters that are required
to be reported under Government Auditing Standards.
We noted certain matters that we reported to management of the Town in a separate letter dated
September 30,2010.
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.
CERTIFIED PUBLIC ACCOUNTANTS
Roanoke, Virginia
September 30,2010
68
TOWN OF VINTON, VIRGINIA
SUMMARY OF COMPLIANCE MATTERS
June 30, 2010
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 Agency Requirements:
Highway Maintenance Funds
LOCAL COMPLIANCE MATTERS
Town Charter
69
TOWN OF VINTON, VIRGINIA
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2010
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 complete control or conflicting duties on the different
functions in the department.
08-1:Capital Asset Records (Significant Deficiency)
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.
B.FINDINGS –COMMONWEALTH OF VIRGINIA
None