HomeMy WebLinkAboutFY 2015 - 2016 - Annual Comprehensive Financial Reports (ACFRs)Comprehensive Annual Financial Report
For Fiscal Year Ending June 30, 2016
TOWN OF VINTON, VIRGINIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2016
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 .............................................................viii
Directory of Principal Officials.......................................................................................................................ix
Organizational Chart ........................................................................................................................................x
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 Position ................................................................................................... 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 Position...................................................................................... 15
Exhibit 5 Statement of Revenues, Expenditures, and Changes in
Fund Balance –Governmental Fund .............................................................................. 16
Exhibit 6 Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balance 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................................................................................. 18
Exhibit 8 Statement of Net Position –Proprietary Fund.................................................................... 19
Exhibit 9 Statement of Revenues, Expenses, and Changes in Fund
Net Position –Proprietary Fund ...................................................................................... 20
Exhibit 10 Statement of Cash Flows –Proprietary Fund..................................................................... 21
Notes to Financial Statements .................................................................................................................... 22
Required Supplementary Information
Exhibit 11 Schedule of Changes in the Net Pension Liability and Related Ratios .............................60
Exhibit 12 Schedule of Pension Contributions..................................................................................... 61
Exhibit 13 Schedule of Funding Progress –OPEB .............................................................................. 62
Notes to Required Supplementary Information ......................................................................................... 63
TOWN OF VINTON, VIRGINIA
TABLE OF CONTENTS
(Continued)
Page
STATISTICAL SECTION
Table 1 Net Position by Component ....................................................................................................... 65
Table 2 Change in Net Position by Component ..................................................................................... 66
Table 3 Fund Balances –Governmental Fund ....................................................................................... 68
Table 4 Changes in Fund Balances –Governmental Fund .................................................................... 69
Table 5 Assessed Value and Actual Value of Taxable Property ........................................................... 70
Table 6 Principal Water and Sewer Customers ...................................................................................... 71
Table 7 Property Tax Levies and Collections ........................................................................................ 72
Table 8 Water and Sewer Rates .............................................................................................................. 73
Table 9 Legal Debt Margin Information ................................................................................................ 74
Table 10 Ratios of Outstanding Debt by Type ......................................................................................... 75
Table 11 Pledged Revenue Coverage ....................................................................................................... 76
Table 12 Demographic Statistics .............................................................................................................. 77
Table 13 Principal Employers ................................................................................................................... 78
Table 14 Full-Time Equivalent Town Government Employees by Function/Program .......................... 79
Table 15 Operating Indicators by Function/Program ............................................................................... 80
Table 16 Capital Asset and Infrastructure Statistics by Function/Program ............................................. 81
COMPLIANCE SECTION
Independent Auditor’s 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..................................................................................................... 83
Summary of Compliance Matters .................................................................................................................. 85
Schedule of Findings and Responses ............................................................................................................. 86
INTRODUCTORY SECTION
i
TOWN OF VINTON
311 S. POLLARD STREET
VINTON, VIRGINIA 24179
PHONE (540) 983-0608
FAX (540) 985-3105
November 18, 2016
To the Honorable Mayor, Members of Town Council, and Citizens of the Town of Vinton, Virginia
We are pleased to present the Town of Vinton, Virginia (the Town) Comprehensive Annual Financial
Report (CAFR) for the fiscal year ended June 30, 2016 in accordance with Section 15.1-167 of the 1950
Code of Virginia, (1950 as amended). The Code requires that the Town issues an annual report on its
financial accounts and records. In addition, the report must be audited. The report was prepared by the
Treasurer’s Office and audited independently by the accounting firm Brown,Edwards & Company,
L.L.P.
The Town’s Management is responsible for both the accuracy of the data and completeness and fairness
of the presentation, including all disclosures. To the best of our knowledge and belief, the enclosed data
is accurate in all material respects and is reported in a manner designed to present fairly the financial
position and results of operations of the various funds of the Town. All disclosures necessary to enable
the reader to gain an understanding of the Town’s financial activities have been included.
The Reporting Entity and Services Provided
The financial reporting entity includes all of the funds of the primary government of the Town of Vinton,
as legally defined. The reporting entity does not include legally separate entities (component units) for
which a primary government is financially accountable because there are no such component units
within the Town. The Town jointly operates the Roanoke Valley Resource Authority and the Regional
Center for Animal Care and Protection through membership on the multi-jurisdictional boards.
The Town of Vinton provides a full range of municipal services. These services include police
protection, fire and first aid services, refuse and recycling functions, general public improvements, street
and right-of-way maintenance, recreational and cultural activities, and planning and zoning. The Town
also provides potable water distribution, wastewater collection, maintenance and service of line, meters,
and other components related to its utility system. Based on the latest Water Quality Report, the water
system meets all state and federal requirements administered by the Office of Drinking Water under the
Virginia Department of Health. According to the 2015 Water Quality Report, the Town had no water
quality violations. The Virginia Department of Environmental Quality reported statewide recycling rates
for calendar year 2015. The Town of Vinton’s rate was 58.7% and was ranked sixth out of all of the
waste planning units in the Commonwealth.
ii
Local Economic Condition and Outlook
The Town of Vinton is located in the southern end of the Shenandoah Valley, in the southwestern region
of Virginia. Vinton is a part of the Roanoke Metropolitan Statistical Area, which includes the Cities of
Roanoke and Salem and Counties of Roanoke, Botetourt, and Craig. The Town is a compact, urban
area of 3.2 square miles located within eastern Roanoke County and shares a common border with the
City of Roanoke. It is approximately 170 miles west of Richmond, Virginia, the State capital. The
Town is a major gateway to the recreational attractions of Smith Mountain Lake and the Blue Ridge
Parkway. Approximately 78.8% of the total land within the Town is developed; 50.6% for residential
use, 13.8% for commercial or industrial development (within the Town industrial park and at various
other locations) and 14.4% for public facility development.
The Town of Vinton is full of a depth of history in the region. Vinton Motors operated in the Town from
1931 –2008, and was considered the oldest auto dealership in the Roanoke Valley and the second oldest
in the State. The oldest running business to date is Southern States, which began operations in the Town
limits during the year 1935.
Vinton is proud of its small size in relation to the surrounding dense urban areas. The Town has a
reputation as a friendly community with much scenic charm and beauty, and is often the urban center of
choice for residents in east Roanoke County and the surrounding population centers of Bedford,
Botetourt, and Franklin counties.
The location of the Town provides quick and easy access from neighboring jurisdictions via US
Interstates 81 and 581, U.S. Routes 460 and 220, and Virginia Routes 24 and 634. This also provides an
opportunity for citizens to be able to drive to a community college, two private colleges, and two public
universities in less than one hour. The Town’s location also means that its economy is impacted by the
economic conditions of its neighbors, and by decisions made by these larger neighboring jurisdictions.
Since the Town of Vinton is highly concerned with providing a positive atmosphere and quality of life
for its citizens, it has taken an active role in various regional authorities and activities. The Town
participates in economic development by being a member of the Roanoke Regional Partnership and
working closely with Roanoke County on development opportunities and promoting a shared industrial
park. The Town also partners with community groups to hold two major festivals and several smaller
community events throughout the year. In 2016, the Town also partnered with the Vinton Area
Chamber of Commerce for economic development through business retention, recruitment,and
promotion.
The Town also participates in the Greenway Commission, to assist in identifying possible greenway
locations in the Roanoke Valley area. The Town is currently building a greenway that will connect the
downtown business district with Roanoke City’s greenway system. The new greenway connect will
allow for an individual to travel from Vinton to Salem on the greenway system. In 2016, Botetourt
County petitioned to join the Greenway Commission and was accepted by all participating members,
which expands the economic development opportunities thus promoting regional partnerships. Vinton is
also partnering with the Roanoke Valley Alleghany Regional Commission (RVARC) to promote a
Blueways Trail on the Roanoke River.
Over the years, Vinton has maintained stable property tax rates, while continuing to provide high quality
municipal services and responsive government. The combined real estate and personal property tax
collections for fiscal year 2016 generate approximately $638,000 or 7.7% of total revenue in the general
fund.
The nearby educational institutions allow opportunities for Town citizens to receive higher education
and technical training. Expansion of industry, tourist facilities, and conference centers in the region
continue to enhance the reputation of the Town as a highly desirable residential area.
iii
Long-term Financial Planning
Barry W. Thompson was appointed as Town Manager in June 2016. Mr. Thompson previously served
the Town of Vinton as the Interim Town Manager from January 2016 to June 2016, and also as the
Treasurer/Finance Director since December 2004. Mr. Thompson worked with the City of Bedford as
the Finance Director and Assistant City Manager for 14 years from November 1984 to October 1998.
After leaving the City of Bedford, Mr. Thompson worked as a consultant in governmental accounting
and as a Director of Financial Support for a governmental accounting software company. Based on his
work experience and education, Mr. Thompson has a strong understanding of local government, as well
as an economic development and community focus. Under Mr. Thompson’s leadership, the Town has
worked closely with Roanoke County to develop a relationship for mutually beneficial economic
development opportunities ranging from short-term and long-term financial goals.
The Town Council approved a balanced budget for the upcoming fiscal year. The budget provides for
maintaining the existing levels of services provided to the Town’s citizens while increasing an effort on
economic development through revitalizing the downtown business area.
The Town received notification of the $700,000 Community Development Block Grant (CDBG) Award
in 2012 to assist with revitalization of our downtown. The grant is funded through a Federal
Government and administered through the Virginia Department of Housing and Community
Development with a deadline for completion in next fiscal year. The Town utilized its commitment
to assist with the purchase of property for the relocation of the Vinton Branch Library to leverage the
CDBG funds.
The revitalization efforts focus on four key areas: (1) streetscape improvements, (2) business facade
improvements, (3) branding and marketing of the downtown, and (4) a revolving loan fund to support
business development. The grant is managed by the Assistant Town Manager, with guidance provided
by a Project Management Team comprised of Town Officials and Community Stakeholders.
Multiple aspects of the initial planning and administration of the project has been completed to date, to
include creating the necessary contracts and other guiding documents and conducting the various
required environmental and historic reviews.In addition, $100,000 has been issued through
four revolving loans for building renovations and job creation,the “In-Vinton”brand was developed
along with the associated downtown shopping guide, as well as the completion of sidewalk
improvements and the replacement of the street lamps on Pollard and Lee Streets.
Several key aspects remain for the revitalization project and are set to be completed by next fiscal year.
The remaining projects include as many as seven business facades to be renovated, downtown park
bench and trash receptacle replacements, interior way-finding sign fabrication and installation,and the
Farmers Market Stage restoration and expansion.
The Town continues to commit to the improvement of the highways, streets, and roads by including
approximately $374,984 for paving and milling of streets throughout the Town in the upcoming budget
year.
Major Initiatives
The Town of Vinton continues to work on a $700,000 CDBG Program for its Downtown District, as
mentioned above. The improvements include streetlights with underground wiring, façade
improvements to buildings, improvements to the Farmers’ Market area and stage and downtown
intersection improvements. The Town also initiated a new Branding Program for the Town called
“InVinton”. This program was well received and accepted by the citizens and the Vinton Area Chamber
of Commerce.
iv
Major Initiatives (Continued)
The Vinton Business Center is open for business. Cardinal Glass Industries of Minnesota is the first
company located in the Vinton Business Center. It has completed its 222,000 square-foot building at an
investment of approximately $23.9 million. Currently, it is fully staffed.
There are two additional prepared sites at the Vinton Business Center which are being marketed. A
picnic shelter has been completed while the Greenway Trail is planned to eventually connect with the
existing Greenway System running through the Town of Vinton and east Roanoke County. Currently,
there are plans to market the business center with a realtor in partnership with Roanoke County.
The Roanoke County Commonwealth Attorney’s Office continues to represent the Town’s interests in
the prosecution of criminal charges. Attorney Theresa Fontana of Guynn & Waddell, P.C. was
re-appointed by the Town Council on July 1, 2015 to serve as counsel for the Town’s other legal
matters.
In June 2013, the Town issued bonds amounting to $1,968,875. Currently, there is only one project still
awaiting completion:
$939,785 upgrade project at the Western Virginia Water Authority Wastewater Treatment Plant,
remaining amount of $96,853.76.
Along with the County of Roanoke,the Town continues to update the Real Estate Tax and Personal
Property Tax Software with its current vendor and billing on said software has been successfully
implemented The Town bills Real Estate taxes twice a year,in April for a June 5th collection date and
in October for a December 5th collection date. Personal Property is billed in April for a May 31st
collection date. Roanoke County/Town of Vinton has also implemented and continues to update an
Appraisal System which is used to update property appraisals and send appraisal notifications annually
to all taxpayers in January. DMV imports have been automated and set-off debts have been automated
and have improved delinquent collections. The Town has an agreement with Xerox Corporation - ACS
Enterprise, Inc. for Application Hosting and Technology Support Systems and Services for the Financial
Applications. They provide the Town with Technical Support, continuous software updating on the
financial applications, and a disaster recovery plan in the event of some unforeseen emergency. The
Town is looking to partner with Roanoke County to issue a request for proposal on electronic payment
options to improve efficiency and better serve its customers.
Prospects for the Future
The Town of Vinton is currently working with Roanoke County to market two surplus schools that are
located within the Town’s boundaries. Both schools have been approved for re-zoning as mixed-use
developments. The former Roland E. Cook building is under construction to be renovated into loft
apartments, with future renovation potential for the former William Byrd High School building. The
former Vinton Branch of the Roanoke County Library has been sold, with plans to develop into a
Macado’s Restaurant.
Roanoke County Library Vinton Branch –Roanoke County built its first urban library in Downtown
Vinton. The former library was outdated and deemed too small for the patrons who used it, and has
been sold and rezoned as mixed-use development. The current library serves more than 200,000 people
a year who will also visit stores, shops and restaurants in the renovated downtown area. The new
Vinton Library is the only County Library on a mass transit route.
v
Prospects for the Future (Continued)
Comprehensive Plan –The twenty-year Comprehensive Plan for the Town’s economic and community
development was adopted in September 2004. This plan which serves as the blue print for the Town’s
direction regarding land use, capital development, and economic progress is continuously being
reviewed and updated, as needed. Funding for this review has been approved in the fiscal year
2016-2017 budget.
Façade Improvement Program –The Façade Improvement program was envisioned from
recommendations during the Vinton Comprehensive Planning process, which was adopted by Town
Council in 2004. The Program provides financial assistance to small businesses, within an identified
Downtown area, that wish to improve their property. The grants available under this program range
from $500 to $5,000. The program provides a 50% reimbursement of qualified expenses, which include
façade and other general property improvements undertaken in accordance with the established design
guidelines for exterior improvements only and address architecture, signage, landscaping, walls,
lighting, veneers, and awnings
Vinton Area Corridors Plan –The Vinton Area Corridors Plan’s purpose is to provide data and
information for the Town of Vinton, Roanoke County, and the Virginia Department of Transportation
(VDOT) to assist with land use and transportation planning. The Town, with a population over 8,000
and a land mass slightly larger than 3 square miles is a diversified urban area striving to sustain its
distinctive small-town charm within the greater Roanoke Valley. The study area is comprised of 7.5
miles of corridors that traverse through the Town of Vinton and eastern Roanoke County. The Plan
contains a number of implementation strategies that are to be completed over the next 20 years and are
grouped by project names, timeframes, and responsible parties.
Change of Use Grant –In conjunction with the Façade Program the Town also offers a Change of Use
Grant that helps property owners’ change zoning from Residential to Business. The grant helps with
expenses such as architectural renderings, International Organization for Standardization (ISO)
guidelines and other code compliance issues. The grant offers the participant up to $5,000 in assistance
and is a 50% reimbursement of expenses.
Urban Development Areas (UDAs) –On July 8, 2015, the Town received $65,000 in grant funding
from the Virginia Department of Transportation (VDOT) Office of Intermodal Planning and Investment
(OIPI). This grant is to establish Urban Development Areas (UDAs) within the Town. Four meetings
were held from November 2015 through June 2016 by the UDA Planning Grant Steering Grant
Committee which was comprised of members of the Town Council, Planning Commission, Board of
Appeals, property/business owners,and staff members from the Town, Roanoke County, and the
Roanoke Valley Alleghany Regional Commission (RVARC) An Open House for the public was held on
June 28, 2016 at the War Memorial.
Eight (8) UDA boundaries were identified by the UDA Planning Grant Committee:
1. Downtown
2. Hardy Road East Gateway
3. Mid-Town: Bypass Road/Hardy Road
4. Mid-Washington: Avenue corridor
5. Virginia Avenue: West Gateway
6. Virginia Avenue/Hardy Road Corridor
7. Walnut Avenue West Gateway
8. Washington Avenue East Gateway
vi
Prospects for the Future (Continued)
Council will hold a Public Hearing early next fiscal year and consider an ordinance to amend the Town
of Vinton 2004-2024 Comprehensive Plan, Chapter III Community Facilities and Services, and
Chapter V. Land Use and Transportation Plan of the Comprehensive Plan including the Future Land
Use and Transportation Map; dated September 7, 2004; and Vinton Area Corridors Plan, Map 31
Vinton Area Corridor Plan; Future Land Use Scenario 4 Map; dated February 16, 2010, by
incorporating and designating by reference, Urban Development Areas (UDA)sections and
boundaries; goals and strategies; population projections data; and Traditional Neighborhood Design
(TND) principles.
Accounting System and Budgetary Controls
The Town’s accounting records for governmental fund type operations are maintained on a modified
accrual basis with revenues being recorded when available and measurable, and expenditures being
recorded when services or goods are received and fund liabilities are incurred. Accounting records for
proprietary fund types are maintained on the accrual basis with revenues and expenses being recorded
when earned or incurred.
In developing or modifying the Town’s accounting system, consideration is given to the adequacy of
internal controls. Internal controls are designed to provide reasonable, but not absolute, assurance
regarding: (a) the safeguarding of assets against loss from unauthorized use or disposition, and (b) the
reliability of financial records for preparing financial statements and maintaining accountability for
assets.
The concept of reasonable assurance recognizes that: (a) the cost of a control should not exceed the
benefits likely to be derived, and (b) the evaluation of costs and benefits requires estimates and
judgments by management. All internal control evaluations occur within the above framework. The
Town’s internal controls adequately safeguard assets and provide reasonable assurance of proper
recording of financial transactions.
Budgetary control is maintained at the department or function level by the adoption of an annual,
accrual plus encumbrances basis budget for both the General and Enterprise Funds. The budgetary
controls are designed to ensure compliance with legal restrictions on expenditures as established by the
Town Council. Only the Council can revise appropriations. Year-end outstanding encumbrances are
reported as a reserve of fund balance and re-appropriated in the subsequent year.
Cash Management
The Town uses a pooled cash concept to allow greater investment flexibility and consequently a better
return on investments. Cash from all funds is pooled for investment purposes in the Commonwealth of
Virginia’s Local Government Investment Pool and in Certificates of Deposit. The Town’s checking
account is an interest bearing public fund demand deposit account earning interest rates tied to the
90-day US T-Bill.
Risk Management
The Town’s various property and liability insurance coverage is provided by Virginia Municipal League
Insurance Programs. The annual insurance costs are allocated to specific departments and funds based
on assigned equipment, number of personnel, building usage, and other equitable cost estimates.
Independent Audit
Virginia law requires that the financial statements of the Town be audited by a Certified Public
Accountant (or alternatively, by the Auditor of Public Accounts) selected by the Town Council. Brown,
Edwards & Company, L.L.P., has performed an annual audit of the Comprehensive Annual Financial
Report. Their audit was conducted in accordance with generally accepted auditing standards; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and Specifications for Audit of Counties, Cities, and Towns,
iss ued by the Auditor of Public Accounts of the Commonwealth of Virginia. The auditor's report,
which includes their opinion on the financial statements of the Town, is contained in this report on page
one of the Financial Section. Other auditor's reports are included in the Compliance Section.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management's Discus sion and Analysis (MD&A). This
Jetter of tran sm ittal is designed to complement the MD&A and should be read in conjunction with it.
The Town's MD&A can be found immediately following the report of the independent auditors.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial reporting to the Town for its Comprehensive
Annual Financial Report for the fiscal year ended June 30, 2015. The Certificate of Achievement is a
national award that recognizes conformance with the highest standards for preparation of government
financial reports.
In order to be awarded a Certificate of Achievement , a governmental unit mu st publish an easily
readable and efficiently organized Comprehensive Annual Financial Report, the contents of which must
conform to program standards. The CAFR must satisfy both generally accepted accounting principles
and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The Town of Vinton has received a
Certificate of Achievement for the past eleven fiscal years. We believe our current report continues to
conform with the Certificate of Achievement Program requirements, thus, this report is being submitted
to GFOA.
The Town Manager has also established a goal for the budget document to be reevaluated as a
budgeting and communication tool. The GFOA budget document standards are being used as a model
for improving the budget document, and the Town s ubmitted the fiscal year 2016-2017 budget
document for consideration of the GFOA Distinguished Budget Presentation Award for the first time
and was selected for the award.
Acknowledgements
The preparation of this report was made possible through the diligent effort of the Treasurer/Finance
Office with the su pport of all departments and staff. We would like to express our appreciation to the
members of the Town Council for their support in the preparation of the Town of Vinton 's
comprehensive annual financial report and to the Town's independent auditing firm , Brown , Edwards &
Company, L.L.P. for their cooperation and input in this work.
Respectfully submitted,
Int erim Finance Director
vii
viii
ix
TOWN OF VINTON, VIRGINIA
DIRECTORY OF PRINCIPAL OFFICIALS
June 30, 2016
TOWN COUNCIL
Bradley E. Grose, Mayor
Matthew S. Hare, Vice Mayor
Keith N. Liles
Sabrina McCarty
Janet Schneid
APPOINTED OFFICIALS
Barry W. Thompson ...............................................................Town Manager
Anne W. Cantrell.....................................................Interim Finance Director
Susan Johnson ..............................................................................Town Clerk
Thomas Foster .........................................................................Chief of Police
INDEPENDENT AUDITORS
Brown, Edwards & Company, L.L.P.
x
FINANCIAL SECTION
1
Your Success is Our Focus
319 McClanahan Street, S.W. • Roanoke, VA 24014-7705 • 540-345-0936 • Fax: 540-342-6181 • www.BEcpas.com
INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of Town Council
Town of Vinton, Virginia
Report on the Financial Statements
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 (the “Town”), as of and for
the year ended June 30, 2016, and the related notes to the financial statements,which collectively
comprise the Town’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. 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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
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, 2016, and the respective changes in financial
position and, where applicable, cash flows thereof and the respective budgetary comparison for the
general fund for the year then ended in accordance with accounting principles generally accepted in
the United States of America.
2
Report on Summarized Comparative Information
We have previously audited the Town’s 2015 financial statements, and in our report dated
November 9, 2015, we expressed unmodified opinions on those financial statements. The 2015 financial
information is provided for comparative purposes only. In our opinion, the summarized comparative
information presented herein as of and for the year ended June 30, 2015, is consistent, in all material
respects, with the audited financial statements from which it has been derived.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and other required supplementary information, as listed in the table
of contents, 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.
Other Information
Our audit was conducted for the purpose of forming opinions 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 and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or
provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
November 18, 2016 on our consideration of the Town’s internal control over financial reporting and on
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
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Town’s internal
control over financial reporting and compliance.
CERTIFIED PUBLIC ACCOUNTANTS
Roanoke, Virginia
November 18, 2016
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, 2016. 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 vii of this report.
Financial Highlights
The total assets and deferred outflows of resources of the Town exceeded its liabilities and
deferred inflows of resources at the close of the most recent fiscal year by $13,153,051 (net
position). Of this amount, $1,837,459 (unrestricted net position) may be used to meet the
Town’s ongoing obligations to citizens and creditors.
The Town’s total net position increased by $1,187,236. This increase is largely due to total
expenses of $10,637,682 being less than total revenues of $11,824,918. In addition, an
increase of $665,929 (11.0%) in current and other assets occurred. Capital assets decreased
by $219,750 (1.0%) with the final result being an increase of 1.6% in total assets.
On the other hand, long-term liabilities decreased by $125,636 (0.9%)which has a small
variance from the prior year.GASB 68 was implemented in fiscal year 2015. Other
liabilities increased by $104,766 (9.7%) which was an increase in accounts payable and
related liabilities and an increase in accrued payroll and related liabilities due to end of year
timing.
Both deferred outflows and inflows experienced insignificant changes during the year.
The final result of all these effects is a 9.9% increase in net position.
As of the close of the current fiscal year, the Town’s governmental fund reported an ending
fund balance of $2,879,221, an increase of $222,722 in comparison with the prior year. This
is mostly due to a decrease of $154,458 (12.2%) in deferred inflows of resources, in
particular unavailable/unearned revenue. In addition, total liabilities increased by $66,904
(10.1%), with a slight decrease in accounts payable and an increase in accrued payroll and
related liabilities.
Approximately 90.6% of the ending governmental fund balance, $2,607,524 is available for
spending at the Town’s discretion (unassigned fund balance), and represents 31.8% of the
governmental fund’s expenditures.
4
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.
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 position presents information on all of the Town’s assets, deferred
outflows of resources, liabilities, and deferred inflows of resources, with the difference between
the four reported as net position. Over time, increases or decreases in net position 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 position
changed during the most recent fiscal year. All changes in net position 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 balance 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 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 position may serve over time as a useful indicator of a government’s financial
position. In the case of the Town, the net position was $13,153,051 at the close of the most recent fiscal
year.
By far the largest portion of the Town’s net position (84.4%) reflects its net 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 net 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 Position
Governmental Business-Type
Activities Activities Total
Current and other assets $4,719,105 $4,583,937 $1,989,351 $1,458,590 $6,708,456 $6,042,527
Capital assets 9,555,472 9,442,948 11,652,540 11,984,814 21,208,012 21,427,762
Total assets 14,274,577 14,026,885 13,641,891 13,443,404 27,916,468 27,470,289
Deferred outflows
of resources 547,349 470,314 232,417 80,543 779,766 550,857
Current and other liabilities 747,092 696,139 437,272 383,459 1,184,364 1,079,598
Long-term liabilities 5,858,376 5,752,569 7,443,531 7,674,974 13,301,907 13,427,543
Total liabilities 6,605,468 6,448,708 7,880,803 8,058,433 14,486,271 14,507,141
Deferred inflows
of resources 979,560 1,384,094 77,352 1,056,912 1,548,190
Net investment in capital
assets 6,225,603 5,929,925 4,880,340 5,184,003 11,105,943 11,113,928
Restricted 209,649 235,246 - - 209,649 235,246
Unrestricted 801,646 499,226 1,035,813 117,415 1,837,459 616,641
Total net position $7,236,898 $6,664,397 $5,916,153 $5,301,418 $13,153,051 $11,965,815
Unrestricted net position of $1,837,459 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 position, 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 increased the Town’s net position by $572,501.
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,
capital grants and contributions, and various taxes showed an increase over the prior year. Investment
earnings also showed an increase because of the Town’s investments and bond proceeds being invested
in higher yields.
The Town’s Changes in Net Position
Governmental Business-Type
Activities Activities Total
Revenues
Program revenues
Charges for services $733,005 $753,110 $3,437,535 $3,195,850 $4,170,540 $3,948,960
Operating grants and
contributions 1,389,380 1,426,127 - - 1,389,380 1,426,127
Capital grants and
contributions 317,643 384,074 - - 317,643 384,074
General revenues
Property taxes 640,391 539,764 - - 640,391 539,764
Other taxes 4,157,323 4,067,111 - - 4,157,323 4,067,111
Intergovernmental
unrestricted 744,247 768,956 - - 744,247 768,956
Investment earnings 17,709 76,184 1,318 1,353 19,027 77,537
Other 106,706 34,446 279,661 250,562 386,367 285,008
Total revenues 8,106,404 8,049,772 3,718,514 3,447,765 11,824,918 11,497,537
Expenses
General government 1,001,560 927,954 - - 1,001,560 927,954
Public safety 3,340,624 3,418,566 - - 3,340,624 3,418,566
Public works 2,026,305 2,021,994 - - 2,026,305 2,021,994
Parks, recreation, and
cultural 591,342 621,897 - - 591,342 621,897
Community development 447,908 427,409 - - 447,908 427,409
Interest on long-term
debt 126,164 193,242 - - 126,164 193,242
Water and sewer - - 3,103,779 2,994,485 3,103,779 2,994,485
Total expenses 7,533,903 7,611,062 3,103,779 2,994,485 10,637,682 10,605,547
Change in net position 572,501 438,710 614,735 453,280 1,187,236 891,990
–July 1,6,664,397 6,225,687 5,301,418 4,848,138 11,965,815 11,073,825
–June 30 $7,236,898 $6,664,397 $5,916,153 $5,301,418 $13,153,051 $11,965,815
7
Government-wide Financial Analysis (Continued)
Expenses and Program Revenues –Governmental Activities
Revenues by Source –Governmental Activities
Business-type activities –Business-type activities increased the Town’s net position by $614,735. The
Town increased water and sewer rates 8.9%effective July 1, 2015, with no increase in 2016.
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
General
Government
Public Safety Public Works Parks,
Recreation, &
Cultural
Community
Development
Interest on
Long-Term
Debt
Total
Expenses Program Revenues
Charges for Services
9%Operating Grants
and Contributions
17%
Capital Grants and
Contributions
4%
Property Taxes
8%Sales Taxes
17%
Other Taxes
35%
Unrestricted
Intergovernmental
Revenue
9%
Other
1%
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, unassigned 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 an ending fund
balance of $2,879,221, an increase of $222,722 in comparison with the prior year. This is largely due to a
decrease in deferred inflows of $154,458 (12.2%)and an increase in total liabilities of $66,904 (10.1%)
particularly a decrease in accounts payable and accrued liabilities of $7,639 (1.5%) and an increase in
accrued payroll and related liabilities of $71,943 (54.5%).Accounts payable and accrued liabilities,
accrued payroll and related liabilities, and unearned revenue increased by $66,904 (10.1%); this increase
was due to timing of the first payroll in July 2016 and the accrual to June 2016.
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 position of the Water and Sewer Department at the end of the year amounted to
$1,035,813. Factors concerning the finances of this fund have already been addressed in the discussion of
the Town’s business-type activities.
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget for revenues were
$197,925 primarily due to an increase in Categorical Aid by $19,805 (0.9%), Recovered Costs by
$30,221 (76.5%), and Other Revenue by $147,699 (121.3%).
Differences between the original budget and the final amended budget for expenditures were
$338,969 with the majority being primarily due to increases on expenses for capital projects.
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 general
property taxes collected was 92.09% of the budgeted amount. The real tax rate did not change from $0.07
per $100 of assessed value, which resulted in a regular collection because of the relationship between
classifying the current year tax collection as deferred revenue.
Cigarette tax collection continues to decrease as a result of $0.20 increase in tax rate effective July
2013. Although the tax rate was reduced by $0.15 in March 2014 to encourage buyers, the market has not
recovered. In addition to this negative impact, there has been a loss of two (2) retailers and a cigarette
outlet opened outside of the Town limits. Another effect on this revenue is the sale of vapors, which are
not currently included in cigarette tax sales.
Fines and forfeitures were under budget estimates by 34.40% primarily due to court fines being
down by $27,069. In reviewing this area, we have found that more community service versus fines is
being sentenced by the Court thus having an impact on this type of revenue.Another factor is turnover
within the department during the fiscal year, which increased the training time for officers which reduced
total hours enforcing safety.
For the most part, economic indicators such as sales tax, meals tax, and business license tax reflect
very favorable collection.
9
General Fund Budgetary Highlights (Continued)
All expenditures by budget functions have favorable variances due to concerted efforts of all
departments to control and minimize expenditures except for Interest and Fiscal Charges and Bond
Issuance Costs where the budget was understated.
The substantial favorable variance on Community Development is mainly due to $653,497
forecast for CDBG downtown revitalization project for which only $241,769 (37%) was expended.
Of the $585,291 budget on Capital Projects, only $437,389 was spent. Main projects such as
VDOT Revenue Sharing Glade Creek were not purchased during the FY 2016 but will be pursued in FY
2017.
The 2.85% increase in total operating revenue was affected primarily by a real estate tax rate
increase on effective 2015 resulting to 18.64%increase in property tax revenue from last fiscal year.
There was an increase of the sewage treatment cost ($71,997 or 21.26%) for fiscal year 2016 due
to a change in the billing calculation from the Western Virginia Water Authority (WVWA). Previously,
the WVWA was billing based on an estimated usage, now the flow is metered and billed directly on
consumption. The change in methods increased the sewage treatment costs to the Town of Vinton.
Significant variances in the enterprise fund expenses are in salaries and benefits. Salaries
decreased 9.44% while benefits were up 5.20%. This was caused by labor distribution of employees
working in different cost centers thus shifting salaries and benefits to the general fund. Maintenance
expense decrease was partly caused by various repairs and maintenance on well houses and pumps in the
previous year that were not needed in the current year. Positive variances in water purchased from the
Western Virginia Water Authority were caused by variations in the volume of bulk water purchased by
industry.
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, 2016, amounts to $21,208,012 (net of accumulated depreciation). This investment
in capital assets includes land, buildings and systems, improvements, infrastructure, machinery, and
equipment. The total increase in the Town’s investment in capital assets for the current fiscal year was
resulted in a decrease of 1.02% (a 1.2% increase for governmental activities and a 2.8% decrease 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)
Land $1,832,033 $1,706,089 $80,752 $80,752 $1,912,785 $1,786,841
Buildings and systems 5,303,005 5,570,041 7,457,516 7,275,787 12,760,521 12,845,828
Infrastructure 1,413,942 1,369,223 - - 1,413,942 1,369,223
Improvements other than
buildings - - 2,560,925 2,692,070 2,560,925 2,692,070
Machinery and equipment 555,879 503,136 570,176 567,575 1,126,055 1,070,711
Construction in progress 450,613 294,459 983,171 1,368,630 1,433,784 1,663,089
Total $9,555,472 $9,442,948 $11,652,540 $11,984,814 $21,208,012 $21,427,762
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
$10,772,261. Of this amount, $8,365,292 comprises debt backed by the full faith and credit of the
government, $2,176,000 is related to revenue bond obligations, and $230,969 is related to capital leases.
The Town’s Outstanding Debt
General Obligation and Capital Leases
General obligation bonds $3,217,540 $3,451,877 $4,539,723 $4,892,861 $7,757,263 $8,344,738
Revenue bonds - - 2,176,000 2,105,000 2,176,000 2,105,000
Other obligations 327,424 385,080 280,605 608,029 679,596
Capital leases 230,969 159,415 - - 230,969 159,415
$3,775,933 $3,996,372 $6,996,328 $7,292,377 $10,772,261 $11,288,749
The Town’s total debt decreased by $516,488, or 4.6%,during the fiscal year. This decrease is
due to the payment of principal payment on outstanding 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, 2016 is 3.70%, which is lower than last year’s rate of 4.50%.
This is comparable to the state’s average unemployment rate as of June 30, 2016 of 3.70%
and to the national average rate of 4.90%.
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 unassigned fund balance in the general fund increased by
$246,088. The general fund remains strong with an ending unassigned fund balance of $2,607,524. It is
intended that this available fund balance will be used for future needs of the Town.
Requests for Information
This financial report is designed to provide a general overview of the Town’s finances for all
those with an interest in the government’s finances. Questions concerning any of the information provided
in this report or requests for additional financial information should be addressed to the Finance
Department/Treasurer’s Office, Town of Vinton, 311 S. Pollard Street, Vinton, Virginia 24179.
11
BASIC
FINANCIAL STATEMENTS
EXHIBIT 1
Governmental Business-type
(For Comparison
Only)
Activities Activities 2016 2015
ASSETS
Cash and cash equivalents (Note 2)3,762,852$ 1,101,786$ 4,864,638$ 3,975,338$
Receivables, net (Note 3)365,784 627,692 993,476 1,028,528
Due from other governmental units (Note 4)409,592 - 409,592 600,152
Inventories 5,772 71,255 77,027 73,356
Prepaids 56,276 53,728 110,004 68,714
Loans receivable 95,524 - 95,524 -
23,305 134,890 158,195 296,439
Capital assets: (Note 5)
Nondepreciable 2,282,646 1,063,923 3,346,569 3,449,930
Depreciable, net 7,272,826 10,588,617 17,861,443 17,977,832
Total assets 14,274,577 13,641,891 27,916,468 27,470,289
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 143,129 135,309 278,438 135,043
75,284 18,087 93,371 -
328,936 79,021 407,957 415,814
Total deferred outflows of resources 547,349 232,417 779,766 550,857
LIABILITIES
Accounts payable and accrued liabilities 506,612 322,032 828,644 753,255
Accrued payroll and related liabilities 203,845 28,477 232,322 155,281
Accrued interest payable 17,194 48,363 65,557 122,721
Customer security deposits - 38,400 38,400 31,500
Unearned revenue 19,441 - 19,441 16,841
Long-term liabilities:
Net pension liability (Note 7)1,549,973 372,358 1,922,331 1,479,900
Due within one year (Note 6)565,533 556,903 1,122,436 1,028,860
Due in more than one year (Note 6)3,742,870 6,514,270 10,257,140 10,918,783
Total liabilities 6,605,468 7,880,803 14,486,271 14,507,141
DEFERRED INFLOWS OF RESOURCES
Property taxes 657,574 - 657,574 636,548
321,986 77,352 399,338 911,642
Total deferred inflows of resources 979,560 77,352 1,056,912 1,548,190
NET POSITION
6,225,603 4,880,340 11,105,943 11,113,928
Public safety 209,649 - 209,649 185,246
Parks, recreation, and cultural - - - 50,000
Unrestricted 801,646 1,035,813 1,837,459 616,641
Restricted for:
Net investment in capital assets
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
June 30, 2016
Cash and cash equivalents, restricted (Note 2)
Pension contributions subsequent to
measurement date (Note 7)
Net difference between projected and actual
investment earnings on pension plan
investments (Note 7)
Differences between expected and actual
experience (Note 7)
The Notes to Financial Statements are
an integral part of this statement.
12
EXHIBIT 2
Charges for
Operating Grants
and
Capital Grants
and Governmental
Business-
t e
(For
Comparison
Onl
Functions/Programs Expenses Services Contributions Contributions Activities Activities 2016 2015
Governmental activities
1,001,560$ 124,180$ -$ -$ (877,380)$ (877,380)$ (823,441)$
Public safety 3,340,624 63,735 250,685 5,000 (3,021,204) (3,021,204) (2,843,061)
Public works 2,026,305 110,099 1,138,695 - (777,511) (777,511) (816,801)
Parks, recreation, and cultural 591,342 428,716 - 5,635 (156,991) (156,991) (134,611)
Community development 447,908 6,275 - 307,008 (134,625) (134,625) (236,595)
Interest on long-term debt 126,164 - - - (126,164) (126,164) (193,242)
Total governmental activities 7,533,903 733,005 1,389,380 317,643 (5,093,875) (5,093,875) (5,047,751)
Business-type activities
Water and sewer 3,103,779 3,437,535 - - 333,756$ 333,756 201,365
Total business-type activities 3,103,779 3,437,535 - - 333,756 333,756 201,365
Total 10,637,682$ 4,170,540$ 1,389,380$ 317,643$ (5,093,875) 333,756 (4,760,119) (4,846,386)
General revenues
Property taxes (Note 10)640,391 - 640,391 539,764
Sales tax 1,348,456 - 1,348,456 1,320,700
Meals tax 955,488 - 955,488 912,713
Utilities tax 767,736 - 767,736 782,869
Business license tax 508,747 - 508,747 489,749
Cigarette tax 178,127 - 178,127 196,383
Other local taxes 398,769 - 398,769 364,697
Unrestricted intergovernmental revenue 744,247 - 744,247 768,956
Unrestricted investment earnings 17,709 989 18,698 15,438
Restricted investment earnings - 329 329 62,099
Other 106,706 279,661 386,367 285,008
Total general revenues 5,666,376 280,979 5,947,355 5,738,376
Change in net position 572,501 614,735 1,187,236 891,990
NET POSITION AT JULY 1 6,664,397 5,301,418 11,965,815 11,073,825
NET POSITION AT JUNE 30 7,236,898$ 5,916,153$ 13,153,051$ 11,965,815$
General government administration
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF ACTIVITIES
Year Ended June 30, 2016
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
The Notes to Financial Statements are
an integral part of this statement.
13
EXHIBIT 3
Comparison
2016 2015
ASSETS
Cash and cash equivalents 3,762,852$ 3,483,614$
Receivables, net 365,784 417,816
Due from other governmental units 409,592 600,152
Inventories 5,772 2,947
Prepaids 56,276 56,870
Loans receivable 95,524 -
Cash and cash equivalents, restricted 23,305 22,538
Total assets 4,719,105$ 4,583,937$
LIABILITIES
Accounts payable and accrued liabilities 506,612$ 514,251$
Accrued payroll and related liabilities 203,845 131,902
19,441 16,841
Total liabilities 729,898 662,994
DEFERRED INFLOWS OF RESOURCES
Unavailable/unearned revenue 1,109,986 1,264,444
FUND BALANCES
Nonspendable 62,048 59,817
Restricted 209,649 235,246
Unassigned 2,607,524 2,361,436
Total fund balances 2,879,221 2,656,499
Total liabilities, deferred inflows of resources,
and fund balances 4,719,105$ 4,583,937$
General Fund
TOWN OF VINTON, VIRGINIA
BALANCE SHEET
GOVERNMENTAL FUND
June 30, 2016
Unearned revenue
The Notes to Financial Statements are
an integral part of this statement.
14
EXHIBIT 4
(For
Comparison
Only)
–2,879,221$ 2,656,499$
are different because:
Capital assets used in governmental activities are not financial resources,
and, therefore, are not reported in the funds.
Governmental capital assets 18,862,973$
Less: accumulated depreciation (9,307,501)
9,555,472 9,442,948
Bond premiums are reported as revenues in the governmental funds,
Bond premiums total $(65,279) and accumulated amortization
is $40,790.(24,489) (36,774)
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are deferred in the funds.452,412 627,896
Financial statement elements related to pensions are applicable to future
periods and, therefore, are not reported in the funds.
404,220
(321,986)
(1,549,973)
(1,467,739) (1,625,794)
Long-term liabilities are not due and payable in the current period and,
therefore, are not reported in the funds.
General obligation bonds, including unamortized deferred amounts (3,074,411)
(327,424)
(230,969)
Accrued interest payable (17,194)
Compensated absences (377,499)
Other postemployment benefits (130,482)
(4,157,979) (4,400,378)
Total Net Position – Governmental Activities
Net pension liability
Capital lease obligations
Obligations payable – Roanoke County and RCACP
but are amortized over the life of the debt obligation in the
statement of net position:
General Fund
TO THE STATEMENT OF NET POSITION
June 30, 2016
Amounts reported for governmental activities in the statement of net position
Deferred outflows of resources for differences between expected and
actual and 2016 employer contributions
Deferred inflows of resources for the net differences between
projected and actual investment earnings on pension plan investments
The Notes to Financial Statements are
an integral part of this statement.
15
EXHIBIT 5
Comparison
Only)
2016 2015
REVENUES
General property taxes 637,659$ 456,952$
Other local taxes 4,207,695 4,012,871
Permits, privilege fees, and regulatory licenses 9,788 12,403
Fines and forfeitures 51,631 56,503
Revenues from use of money and property 141,889 197,241
Charges for services 452,903 438,558
Other 138,589 129,124
Gain sharing 536,023 549,213
Recovered costs 237,421 21,301
Non-categorical aid 402,244 401,902
Categorical aid 1,436,509 1,439,204
Total revenues 8,252,351 7,715,272
EXPENDITURES
Current:
General government administration 710,412 668,082
Public safety 3,304,624 3,313,099
Public works 1,942,260 1,918,439
Parks, recreation, and cultural 594,550 617,934
Community development 687,006 604,476
Capital projects 437,389 551,936
Debt service:
Principal retirement 404,038 379,843
Interest and fiscal charges 115,486 182,584
Bond issuance costs 15,920 -
Total expenditures 8,211,685 8,236,393
Excess (deficiency) of revenues over expenditures 40,666 (521,121)
OTHER FINANCING SOURCES (USES)
Proceeds from issuance of long-term debt 702,000 -
Payments to refunded bond escrow agent (686,080) -
Proceeds from capital lease 136,599 -
Proceeds from sale of capital assets 29,537 7,444
Total other financing sources 182,056 7,444
Net change in fund balance 222,722 (513,677)
FUND BALANCE AT JULY 1 2,656,499 3,170,176
FUND BALANCE AT JUNE 30 2,879,221$ 2,656,499$
General Fund
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUND
Year Ended June 30, 2016
The Notes to Financial Statements are
an integral part of this statement.
16
EXHIBIT 6
Comparison
Only)
2016 2015
Net change in fund balance governmental fund 222,722$ (513,677)$
15,951 449
112,524 67,785
(175,484) 327,056
158,055 181,310
240,810 368,736
(2,077) 7,051
Change in net position of governmental activities
TOWN OF VINTON, VIRGINIA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE OF THE GOVERNMENTAL FUND TO THE
STATEMENT OF ACTIVITIES
Year Ended June 30, 2016
General Fund
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.
Governmental funds report employer pension contributions as expenditures.
However,in the statement of activities the cost of pension benefits earned
net of employee contributions is reported as pension expense.This is the
amount by which employer pension contributions $328,936 exceed pension
expense $170,881 in the current period.
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 position.Also, governmental funds report
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 items reported in the statement of activities do not require the use of
current financial resources and therefore are not reported as expenditures in
governmental funds.These activities consist of a decrease in compensated
absenses of $34,531 and an increase in other postemployment benefits of
$(36,608).
The net effect of the change in accrued interest expense 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
capital outlays $684,480 exceeded depreciation $(571,956)in the current
period.
Amounts reported for governmental activities in the statement of activities are
different because:
The Notes to Financial Statements are
an integral part of this statement.
17
EXHIBIT 7
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
General property taxes 692,458$ 692,458$ 637,659$ (54,799)$
Other local taxes 4,145,200 4,145,200 4,207,695 62,495
Permits, privilege fees, and 11,000 11,000 9,788 (1,212)
regulatory licenses
Fines and forfeitures 78,700 78,700 51,631 (27,069)
Revenues from use of money
and property 220,520 220,520 141,889 (78,631)
Charges for services 404,500 404,500 452,903 48,403
Other 121,750 269,449 138,589 (130,860)
Gain sharing 550,000 550,000 536,023 (13,977)
Recovered costs 39,500 69,721 237,421 167,700
Non-categorical aid 402,440 402,440 402,244 (196)
Categorical aid 2,257,910 2,277,715 1,436,509 (841,206)
Total revenues 8,923,978 9,121,703 8,252,351 (869,352)
EXPENDITURES
Total expenditures 8,977,318 9,316,287 8,211,685 1,104,602
OTHER FINANCING SOURCES (USES)
Proceeds from long-term debt - - 702,000 702,000
Payments to refunded bond escrow agent - - (686,080) (686,080)
Proceeds from capital lease - - 136,599 136,599
Proceeds from sale of capital assets 3,000 20,000 29,537 9,537
Net change in fund balance (50,340)$ (174,584)$ 222,722$ 397,306$
Budgeted Amounts
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL –
GENERAL FUND
Year Ended June 30, 2016
The Notes to Financial Statements are
an integral part of this statement.
18
EXHIBIT 8
Only)
2016 2015
ASSETS
Current assets:
Total current assets 1,989,351 1,458,590
Noncurrent assets:
Capital assets:
Total noncurrent assets 11,652,540 11,984,814
Total assets 13,641,891 13,443,404
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 135,309 -
Differences between expected and actual experience 18,087 -
Pension contributions subsequent to measurement date 79,021 80,543
Total deferred outflows of resources 232,417 80,543
LIABILITIES
Current liabilities:
Total current liabilities 994,175 885,899
Noncurrent liabilities:
Net pension liability 372,358 266,381
Total noncurrent liabilities 6,886,628 7,172,534
Total liabilities 7,880,803 8,058,433
DEFERRED INFLOWS OF RESOURCES
77,352 164,096
NET POSITION
Net investment in capital assets 4,880,340 5,184,003
Unrestricted 1,035,813 117,415
Total net position 5,916,153$ 5,301,418$
Net difference between projected and actual investment earnings
on pension plan investments
Water and Sewer
Business-type Activities –
Enterprise Fund
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
PROPRIETARY FUND
June 30, 2016
The Notes to Financial Statements are
an integral part of this statement.
19
EXHIBIT 9
Only)
2016 2015
OPERATING REVENUES
Water service charges and fees 1,576,460$ 1,454,106$
Sewer service charges and fees 1,804,869 1,686,890
Water/sewer penalties 56,206 54,854
Other revenue 279,661 250,562
Total operating revenues 3,717,196 3,446,412
OPERATING EXPENSES
Salaries 665,050 734,363
Fringe benefits 277,276 263,571
Contractual services 73,523 28,939
Maintenance 108,917 120,441
Rent, utilities, and insurance 284,019 271,555
Materials and supplies 88,615 100,487
Equipment repairs and rentals 54,304 21,661
Sewage treatment 410,718 338,721
Purchase of water 113,040 104,653
Other 166,475 131,345
Depreciation 687,384 674,615
Total operating expenses 2,929,321 2,790,351
Operating income 787,875 656,061
NON-OPERATING REVENUE (EXPENSE)
Interest income 1,318 1,353
Interest expense (174,458) (204,134)
Net non-operating expense (173,140) (202,781)
Change in net position 614,735 453,280
NET POSITION AT JULY 1 5,301,418 4,848,138
NET POSITION AT JUNE 30 5,916,153$ 5,301,418$
TOWN OF VINTON, VIRGINIA
Business-type Activities –
Enterprise Fund
Water and Sewer
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUND
Year Ended June 30, 2016
The Notes to Financial Statements are
an integral part of this statement.
20
EXHIBIT 10
Only)
OPERATING ACTIVITIES
Receipts from customers 3,427,455$ 3,162,778$
Receipts from other sources 279,661 250,562
Payments to suppliers (1,242,508) (1,142,429)
Payments to employees (938,117) (1,041,463)
Net cash provided by operating activities 1,526,491 1,229,448
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchases of capital assets (314,155) (950,257)
Principal paid on long-term liabilities (2,082,049) (462,548)
Proceeds from long-term liabilities 1,786,000 -
Interest paid (446,554) (257,957)
Net cash used in capital and related financing activities (1,056,758) (1,670,762)
INVESTING ACTIVITIES
Interest received on investments 1,318 1,353
Net increase (decrease) in cash and cash equivalents 471,051 (439,961)
CASH AND CASH EQUIVALENTS
Beginning at July 1 765,625 1,205,586
RECONCILIATION TO EXHIBIT 8
Cash and cash equivalents 1,101,786$ 491,724$
Cash and cash equivalents, restricted 134,890 273,901
1,236,676$ 765,625$
Reconciliation of operating income to net cash
provided by operating activities
Operating income 787,875$ 656,061$
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation 687,384 674,615
Pension expense net of employer contributions 2,668 (46,747)
Change in certain assets and liabilities:
(Increase) decrease in:
Receivables, net (16,980) (39,172)
Inventories (846) 10,016
Prepaids (41,884) 7,379
Increase (decrease) in:
Accounts payable and accrued liabilities 99,833 (42,022)
Accrued payroll and related liabilities 5,098 (6,166)
Customer security deposits 6,900 6,100
Compensated absences (6,842) 4,505
Other post employment benefits 3,285 4,879
NONCASH CAPITAL AND RELATED FINANCING
Capital asset purchases included in accounts payable 53,097$ 69,902$
Increase in WVWA Sewage Treatment Plant and Interceptor rights -$ 294,516$
Capitalized interest 57,760$ 52,448$
Business-type Activities –
Enterprise Fund
The Notes to Financial Statements are
an integral part of this statement.
21
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)22
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 current year, the Town remitted $187,972 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
$46,840 for the current year. Separate financial statements are not available.
Roanoke County Emergency Communications Center:
The Town participates in an intergovernmental agreement with the County of Roanoke for the
operation of a E-911 dispatch center. All personnel of the Center are employees of Roanoke
County. The Director of Communications & Information Technology in coordination with the
Emergency Communications Center Advisory Board is responsible for oversight of the Center.
The Assistant Director for Communications and Information Technology is responsible for the
day-to-day operational management of the Center.The Town and County contribute to the
operational cost of the Center based on the pro rata share of call volume. The Town’s share of the
operating cost was approximately $421,741 in the current year. Separate financial statements are
not available.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)23
Note 1.Summary of Significant Accounting Policies (Continued)
A.The Financial Reporting Entity (Continued)
Jointly Governed Organizations (Continued)
Western Virginia Regional Industrial Facility Authority:
The Town of Vinton, County of Botetourt, County of Franklin, County of Roanoke, City of
Salem, and the City of Roanoke jointly participate in the Western Virginia Regional Industrial
Facility Authority, which functions to enhance the economic base for members by developing,
owning, and operating facilities on a cooperative basis. The Authority is governed by a board
composed of twelve members appointed by the governing bodies of participating jurisdictions.
Town Council appoints two members. There were no associated costs to members for
participation in the Authority in the current year. A separate financial statement can be obtained
from the Western Virginia Regional Industrial Facility Authority care of Roanoke Regional
Partnership, 111 Franklin Road, SE, Roanoke, Virginia 24011.
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 $3,545 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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)24
Note 1.Summary of Significant Accounting Policies (Continued)
C.Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
changes in net position) 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. Interfund services
provided and used are not eliminated in the process of consolidation. 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 is 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.
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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)25
Note 1.Summary of Significant Accounting Policies (Continued)
D.Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
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.
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.
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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)26
Note 1.Summary of Significant Accounting Policies (Continued)
E.Budgets and Budgetary Accounting (Continued)
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 $338,969 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.
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).
7)Appropriations lapse on June 30.
8)All budget data presented in the accompanying financial statements are revised as of June 30.
F.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.
G.Allowance for Uncollectible Accounts
The Town calculates its allowance for uncollectible accounts using historical collection data and
specific account analysis.
H.Inventories
Inventories are valued at the lower of cost (first-in, first-out) or market method.
I.Prepaid Items
Governmental fund prepaid items consist primarily of health insurance premiums payments
incurred for periods in a subsequent fiscal year. Prepaid items are accounted for using the
consumption method. The payments are recorded as expenditures in the fiscal year related to the
coverage period.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)27
Note 1.Summary of Significant Accounting Policies (Continued)
I.Prepaid Items (Continued)
Proprietary fund prepaid items consist primarily of inventory purchased before year end but not
received and on hand until after year end. Prepaid items are accounted for using the consumption
method. The costs of these items are expensed in the subsequent fiscal year when they are
actually consumed or used.
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.
Capital assets are depreciated using the straight-line method over the following estimated useful
lives:
Buildings and improvements 10-40 years
Machinery and equipment 3-10 years
Utility plant 20-40 years
Public domain infrastructure 25-40 years
Sewage treatment contract 30 years
K.Deferred Outflows/Inflows of Resources
In addition to assets, the statements which present financial position report a separate section for
deferred outflows of resources. This separate financial statement element represents a
consumption of net position that applies to future periods and so will not be recognized as an
outflow of resources (expense/expenditure) until then. The Town has three items that qualify for
reporting in this category. The first is the deferred charge on refunding reported in the
government-wide statement of net position. A deferred charge on refunding results from the
difference in the carrying value of refunded debt and its reacquisition price. This amount is
deferred and amortized over the shorter of the life of the refunded or refunding of debt. The
second item consists of contributions subsequent to the measurement date for pensions; this will
be applied to the net pension liability in the next fiscal year. The third item consists of the
differences between expected and actual expense for economic/demographic factors in the
measurement of the total pension liability. This difference will be recognized in pension expense
over the closed five year period.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)28
Note 1.Summary of Significant Accounting Policies (Continued)
K.Deferred Outflows/Inflows of Resources (Continued)
In addition to liabilities, statements which present financial position report a separate section for
deferred inflows of resources. This separate financial statement element represents an acquisition
of net position that applies to future periods and so will not be recognized as an inflow of
resources (revenue) until that time. The Town has three items that qualify for reporting in this
category. The first item occurs only under a modified accrual basis of accounting. The item,
unavailable revenue, is reported only in the governmental fund balance sheet. The governmental
fund reports unavailable revenue from property taxes and other receivables not collected within
45 days of year-end and property taxes levied to fund future years. These amounts are deferred
and recognized as an inflow of resources in the period that the amounts become available. The
second item relates to unearned property taxes including taxes received in advance of the year in
which they are intended to fund operations. This item is a deferred inflow in both the
governmental fund balance sheet and the entity-wide statement of net position. The third item is
the net difference between projected and actual earnings on pension plan investments. This
difference will be recognized in pension expense over a closed five year period.
L.Capitalization of Interest
The Town capitalizes 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 $57,760 of interest capitalized in the current year.
M.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.
N.Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary net
position of the Political Subdivision’s Retirement Plan and the additions to/deductions from the
Political Subdivision’s Retirement Plan’s net fiduciary position have been determined on the
same basis as they were reported by the Virginia Retirement System (VRS). For this purpose,
benefit payments (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)29
Note 1.Summary of Significant Accounting Policies (Continued)
O.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 position. Bond premiums and discounts are deferred and amortized over the life of the bonds
using the straight-line method. Bonds payable are reported net of the applicable bond premium or
discount. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as expenses.
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.
P.Fund Balances
Fund balance is divided into five classifications based primarily on the extent to which the Town
is bound to observe constraints imposed upon the use of the resources.
The classifications are as follows:
Nonspendable –Amounts that cannot be spent because they are not in spendable form,
or legally or contractually required to be maintained intact. The “not in spendable form”
criterion includes items that are not expected to be converted to cash.
Restricted –Amounts constrained to specific purposes by their providers (such as
grantors, bondholders, and higher levels of government), through constitutional
provisions, or by enabling legislation.
Committed –Amounts constrained to specific purposes by the Town, using its highest
level of decision making authority; to be reported as committed, amounts cannot be used
for any other purposes unless the same highest level of action is taken to remove or
change the constraint.
Assigned –Amounts the Town intends to use for a specified purpose; intent can be
expressed by the governing body.
Unassigned –Amounts that are available for any purpose; positive amounts are reported
only in the general fund.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)30
Note 1.Summary of Significant Accounting Policies (Continued)
P.Fund Balances (Continued)
Council establishes (and modifies or rescinds) fund balance commitments by passage of an
ordinance or resolution. This is typically done through adoption and amendment of the budget.
The degree of difficulty to remove an ordinance is greater than a resolution; therefore an
ordinance is the most binding. Assigned fund balance is established by Council, the Town
Manager, or the Director of Finance through adoption or amendment of the budget as intended for
specific purpose (such as the purchase of capital assets, debt service, or for other purposes).
The Town applies restricted resources first when expenditures are incurred for purposes for which
either restricted or unrestricted (committed, assigned, and unassigned) amounts are available.
Similarly, within unrestricted fund balance, committed amounts are reduced first followed by
assigned, and then unassigned amounts when expenditures are incurred for purposes for which
amounts in any of the unrestricted fund balance classifications could be used.
Minimum Fund Balance Policy
The Town does not have a minimum fund balance policy or target for the General Fund.
Q.Estimates
Management uses estimates and assumptions in preparing its financial statements. Those
estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of
contingent liabilities, and reported revenues and expenses. Actual results could differ from those
estimates.
R.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.
S.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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)31
Note 2.Deposits and Investments
Deposits
Deposits with banks are covered by the Federal Deposit Insurance Corporation (FDIC) and
collateralized in accordance with the Virginia Security for Public Deposits Act (the “Act”) Section
2.2-4400 et. seq. of the Code of Virginia. Under the Act, banks and savings institutions holding
public deposits in excess of the amount insured by the FDIC must pledge collateral to the
Commonwealth of Virginia Treasury Board. Financial institutions may choose between two
collateralization methodologies and depending upon that choice, will pledge collateral that ranges in
the amounts from 50% to 130% of excess deposits. Accordingly, all deposits are considered fully
collateralized.
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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)32
Note 2.Deposits and Investments (Continued)
Investments (Continued)
Credit Risk: (Continued)
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.
Interest Rate Risk:
As a means of limiting its exposure to fair value losses arising from rising interest rates, the Town’s
investment policy specifies that no investment may have a maturity greater than two years from the
date of purchase, and the average maturity of the portfolio must not exceed 1 year.
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, the Town did not have any investments.
Deposits
Reconciliation of deposits to Exhibit 1:
Total deposits
Restricted cash and cash equivalents consists of $96,855 of unspent bond proceeds, $37,900 of utility
deposits, $20,774 of evidence found, and $2,666 of flex benefit spending that can only be used for
specific purposes.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)33
Note 3.Receivables
Receivables consist of the following:
Governmental Business-type
Activities Activities Total
Note 4.Due from Other Governmental Units
A summary of funds due from other governmental units was as follows:
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)34
Note 5.Capital Assets
Capital asset activity for the year was as follows:
Governmental Activities
Beginning
Balance Increases Decreases Transfers
Ending
Balance
Capital assets, not depreciated
Land $1,706,089 $125,944 $- $- $1,832,033
Construction in progress 294,459 156,154 - - 450,613
Total capital assets, not depreciated 2,000,548 282,098 - - 2,282,646
Capital assets, depreciated
Buildings and improvements 9,501,969 22,997 (37,202)- 9,487,764
Machinery and equipment 4,604,980 237,436 (345,192)- 4,497,224
Infrastructure 2,453,390 141,949 - 2,595,339
Total capital assets, depreciated 16,560,339 402,382 (382,394)- 16,580,327
Less accumulated depreciation for:
Buildings and improvements 3,931,928 290,033 (37,202)- 4,184,759
Machinery and equipment 4,101,844 184,693 (345,192)- 3,941,345
Infrastructure 1,084,167 97,230 - - 1,181,397
Total accumulated depreciation 9,117,939 571,956 (382,394)- 9,307,501
Total capital assets, depreciated, net 7,442,400 (169,574)- - 7,272,826
Governmental activities
capital assets, net $9,442,948 $112,524 $- $- $9,555,472
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)35
Note 5.Capital Assets (Continued)
Beginning Ending
Capital assets, not depreciated
Land $80,752 $- - $80,752
Construction in progress 1,368,630 202,514 (587,973) 983,171
Total capital assets, not depreciated 1,449,382 202,514 (587,973)1,063,923
Capital assets, depreciated
Utility plant 18,794,362 667,599 - 19,461,961
Sewage treatment contract 4,111,373 - - 4,111,373
Machinery and equipment 1,558,299 - 1,631,269
Total capital assets, depreciated 24,464,034 740,569 - 25,204,603
Less accumulated depreciation for:
Utility plant 11,518,575 485,870 - 12,004,445
Sewage treatment contract 1,419,303 131,145 - 1,550,448
Machinery and equipment 990,724 70,369 - 1,061,093
Total accumulated depreciation 13,928,602 687,384 - 14,615,986
Total capital assets, depreciated, net 10,535,432 53,185 - 10,588,617
Business-type activities
capital assets, net $11,984,814 $255,699 (587,973)$11,652,540
Depreciation expense was charged to functions/programs of the primary government as follows:
Construction Commitments
The Town’s active construction projects as of June 30 are as follows:
Project
Total
Remaining
Commitment
Mason Road / Bexhill Drive Water Line $8,500
Downtown Revitalization Project 109,121
$117,621
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)36
Note 5.Capital Assets (Continued)
Sewage Treatment Contract
Through its participation in an agreement with four other localities for the expansion of the regional
sewage treatment plant and interceptors, the Town has contractual rights to predetermined capacity in
both the plant and interceptors through 2034.
The plant is upgrading its facilities to improve compliance with DEQ peak flow requirements.
Modifications costing approximately $17 million are currently under construction. The Town’s share
will be approximately 5.5% or $987,000, which is being funded with general obligation bonds issued
through the Virginia Resources Authority. The construction in progress balance related to this project
at June 30, 2016 is $970,696.
The plant upgraded its Tinker Creek Interceptor in 2015 to reduce inflow and infiltration as well as
mitigate overflow. Modifications costing approximately $5 million were completed. The Town’s
share was approximately 5.5% or $294,000, which was funded with an obligation payable to the
Western Virginia Water Authority.
The Town is required to contribute $66,000 annually to a capital reserve fund for ongoing
maintenance of the system. The Town has made the annual required contribution since the formation
of the Authority in 2005.
Note 6.Long-Term Liabilities
The following is a summary of changes in long-term liabilities for the year:
Governmental Beginning Ending Due Within
General obligation bonds $3,451,877 $702,000 $(936,337 $3,217,540 $298,394
Obligation payable –
Roanoke County 325,000 - 275,000 55
Obligation payable –
60,080 - (7,656)52,424 7,848
Capital leases 159,415 136,599 (65,045 230,969 79,717
Compensated absences 412,030 101,440 (135,971 377,499 124,574
Other postemployment
benefits 93,874 48,813 (12,205 130,482 -
Business-type
General obligation bonds $4,892,861 $- $(353,138) $4,539,723 $364,079
Revenue bonds 2,105,000 1,786,000 (1,715,000) 2,176,000 165,000
Obligation payable –
294,516 - (13,911)280,605 14,241
Bond Premiums 45,851 - (37,814 8,037 -
Compensated absences 59,081 8,519 (15,361 52,239 13,583
Other postemployment
benefits 11,284 4,380 (1,095 14,569 -
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)37
Note 6.Long-Term Liabilities (Continued)
The general fund has been used to liquidate the liability for compensated absences, net pension
obligation, and net other postemployment benefits.
The annual requirements to amortize long-term debt and related interest are as follows:
Governmental Activities
General Obligation
Bonds Capital Leases
Obligations Payable
Roanoke County and
RCACP
Fiscal
Year Principal Interest Principal Interest Principal Interest
2017 298,394 $78,710 $79,717 $5,293 $62,848 $1,217
2018 301,332 70,296 81,847 3,162 63,040 1,023
2019 306,059 63,083 27,430 970 63,240 823
2020 326,522 55,643 27,857 543 63,444 619
2021 330,638 47,801 14,118 109 74,852 618
2022-2026 1,525,545 115,523 -- --
2027 129,000 3,426 -- --
3,217,540 $434,482 $230,969 $10,077 $327,424 $4,300
Business-type Activities
General Obligation
Bonds Revenue Bonds
Obligation Payable
WVWA
Fiscal
Year Principal Interest Principal Interest Principal Interest
2017 364,079 $134,296 $165,000 $37,397 $14,241 $6,470
2018 375,330 123,045 159,000 43,496 14,578 6,134
2019 348,217 112,013 165,000 37,591 14,922 5,789
2020 358,028 101,202 174,000 32,800 15,275 5,437
2021 369,176 90,055 175,000 29,223 --
2022-2026 1,891,244 272,686 935,000 90,046 81,964 21,593
2027-2031 603,845 71,965 403,000 8,292 92,120 11,437
2032-2033 229,804 6,598 --47,505 1,522
$4,539,723 $911,860 $2,176,000 $278,845 $280,605 $58,382
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)38
Note 6.Long-Term Liabilities (Continued)
The revenue bond has been issued in accordance with the terms of an indenture agreement with the
Virginia Municipal League/Virginia Association of Counties. The indenture agreement requires the
Town to pledge its Water and Sewer Fund Revenues as collateral for the revenue bond and to
maintain revenues in the Water and Sewer Fund equal to at least 1.20 of all debt service payments
which exclude any refunded principal payments. The pledged revenue coverage ratio for the year
ended June 30, 2016 was 1.85.Statistical Section Table 11 presents the pledged revenue coverage
ratio.
Details of long-term indebtedness are as follows:
Interest
Rates Date Issued
Final
Maturity
Date
Amount of
Original
Issue
Governmental
Activities
Business-
type
Activities
General Obligation Bonds:
Virginia Resources Authority Taxable:
G.O. Public Improvement Bonds 3.64-4.96%06/01/06 10/01/26 $755,000 $495,000 $-
Virginia Revolving Loan Fund:
G.O. Water and Sewer Bonds 3.30%07/24/03 07/01/24 1,250,704 - 643,833
G.O. Water and Sewer Bonds 3.10%10/01/04 10/01/26 2,479,000 - 1,516,860
G.O. Water and Sewer Bonds 3.10%01/12/06 03/01/26 1,210,000 - 710,279
Virginia Association of Counties:
G.O. Public Improvement Bonds 3.75-5.25%02/08/07 02/01/27 1,045,000 50,000 -
G.O. Refunding Bonds 2.05%05/25/16 02/01/27 702,000 702,000 -
Capital One Public Funding:
G.O. Public Improvement Bonds 2.85%06/27/13 11/01/32 1,993,152 - 1,668,751
Carter Bank and Trust:
G.O. Refunding Bonds 2.05%06/27/13 11/01/24 2,228,409 1,970,540 -
3,217,540 4,539,723
Plus bond premium, net of amortization 24,489 -
$3,242,029 $4,539,723
Revenue Bonds:
Virginia Association of Counties:
Revenue Water and Sewer Bonds 2.05%05/25/16 08/01/27 $1,786,000 $ - $1,786,000
Revenue Water and Sewer Bonds 3.50-5.00%12/19/07 08/01/27 2,750,000 - 390,000
2,176,000
Plus bond premium, net of amortization - 8,037
$- $2,184,037
Capital Lease:
Kansas State Bank 3.23%09/06/12 10/06/17 $313,315 $107,958 $-
Carter Bank & Trust 1.55%02/26/16 12/10/20 136,599 123,011 -
$230,969 $-
Obligations Payable:
Roanoke County 0.00%07/01/11 07/01/20 $625,000 $275,000 $-
RCACP 2.46 12/31/13 09/30/22 73,180 52,424 -
WVWA 2.35 03/01/15 09/01/32 294,516 - 280,605
$327,424 $280,605
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)39
Note 6.Long-Term Liabilities (Continued)
Current Year Debt Issuance and Defeasances of Debt
On May 25, 2016, the Town issued $702,000 in series 2016A general obligation bonds and
$1,786,000 in series 2016B revenue bonds with an interest rate of 2.05%. $2,488,000 of this issuance
was used to advance refund $2,250,000 of outstanding 2006C and 2007E series general obligation
and revenue bonds with interest rates of 3.50% -5.25%. The net proceeds of $2,450,862 were used to
purchase government securities. Those securities were deposited in an irrevocable trust with an
escrow agent to provide for future debt service payments on the 2006C and 2007E series general
obligation and revenue bonds. As a result, $655,000 of the 2006C, and $1,595,000 of the 2007E
series general obligation and revenue bonds are considered to be defeased and the liability for those
bonds has been removed from the government-wide statement of net position.
The advance refunding resulted in a difference between the reacquisition price and the net carrying
value of the old debt of $158,777. This difference, reported in the accompanying financial statements
as a deduction from bonds payable, is being amortized over the remaining life of the old bonds as a
component of interest expense through the year 2027. The Town completed the advance refunding to
reduce its total debt service payments by $269,013 and to obtain an economic gain (difference
between the present values of the old and new debt service payments) of $236,664.
Note 7.Defined Benefit Pension Plan
Plan Description
All full-time, salaried permanent employees of the Town of Vinton, Virginia, (the “Political
Subdivision”) are automatically covered by VRS Retirement Plan upon employment. This plan is an
agent multiple-employer plan administered by the Virginia Retirement System (the “System”) along
with plans for other employer groups in the Commonwealth of Virginia. Members earn one month of
service credit for each month they are employed and for which they and their employer pay
contributions to VRS. The Code of Virginia, as amended, assigns the authority to establish and
amend benefit provisions to the Virginia General Assembly. The System issues a publicly available
comprehensive annual financial report for VRS. A copy of that report may be downloaded from the
VRS website at http://www.varetire.org/Pdf/Publications/2015-annual-report.pdf.
The System administers three different benefit structures for covered employees –Plan 1, Plan 2, and
Hybrid. Each of these benefit structures has a different eligibility criteria. The specific information
for each plan is as follows:
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued) 40
Note 7. Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Plan 1 – Plan 1 is a defined benefit plan. The retirement benefit is based on a member’s age,
creditable service, and average final compensation at retirement using a formula. Employees are
eligible for Plan 1 if their membership date is before July 1, 2010, and they were vested as of
January 1, 2013.
Hybrid Opt-In Election – VRS non-hazardous duty covered Plan 1 members were allowed
to make an irrevocable decision to opt into the Hybrid Retirement Plan during a special
election window held January 1 through April 30, 2014. The Hybrid Retirement Plan’s
effective date for eligible Plan 1 members who opted in was July 1, 2014. If eligible deferred
members returned to work during the election window, they were also eligible to opt into the
Hybrid Retirement Plan. Members who were eligible for an optional retirement plan (ORP)
and had prior service under Plan 1 were not eligible to elect the Hybrid Retirement Plan and
remain as Plan 1 or ORP.
Retirement Contributions – Employees contribute 5.00% of their compensation each month
to their member contribution account through a pre-tax salary reduction. Some political
subdivisions elected to phase in the required 5.00% member contribution but all employees
will be paying the full 5.00% by July 1, 2016. Member contributions are tax-deferred until
they are withdrawn as part of a retirement benefit or as a refund. The employer makes a
separate actuarially determined contribution to VRS for all covered employees. VRS invests
both member and employer contributions to provide funding for the future benefit payment.
Creditable Service – Creditable service includes active service. Members earn creditable
service for each month they are employed in a covered position. It also may include credit
for prior service the member has purchased or additional creditable service the member was
granted. A member’s total creditable service is one of the factors used to determine their
eligibility for retirement and to calculate their retirement benefit. It also may count toward
eligibility for the health insurance credit in retirement, if the employer offers the health
insurance credit.
Vesting – Vesting is the minimum length of service a member needs to qualify for a future
retirement benefit. Members become vested when they have at least five years (60 months)
of creditable service. Vesting means members are eligible to qualify for retirement if they
meet the age and service requirements for their plan. Members also must be vested to receive
a full refund of their member contribution account balance if they leave employment and
request a refund. Members are always 100% vested in the contributions that they make.
Calculating the Benefit – The Basic Benefit is calculated based on a formula using the
member’s average final compensation, a retirement multiplier, and total service credit at
retirement. It is one of the benefit payout options available to a member at retirement. An
early retirement reduction factor is applied to the Basic Benefit if the member retires with a
reduced retirement benefit or selects a benefit payout option other than the Basic Benefit.
Average Final Compensation – A member’s average final compensation is the average of
the 36 consecutive months of highest compensation as a covered employee.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)41
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Plan 1 (Continued)
Service Retirement Multiplier –The retirement multiplier is a factor used in the formula to
determine a final retirement benefit. The retirement multiplier for non-hazardous duty
members is 1.70%. The retirement multiplier for sheriffs and regional jail superintendents is
1.85%. The retirement multiplier of eligible political subdivision hazardous duty employees
other than sheriffs and regional jail superintendents is 1.70% or 1.85% as elected by the
employer.
Normal Retirement Age –Age 65 or age 60 for hazardous duty employees.
Earliest Unreduced Retirement Eligibility –Age 65 with at least five years (60 months) of
creditable service or at age 50 with at least 30 years of creditable service. Age 60 with at
least five years of creditable service or age 50 with at least 25 years of creditable service, for
hazardous duty employees.
Earliest Reduced Retirement Eligibility –Age 55 with at least five years (60 months) of
creditable service or age 50 with at least 10 years of creditable service. 50 with at least five
years of creditable service for hazardous duty employees.
Cost-of-Living Adjustment (COLA) in Retirement –The Cost-of-Living Adjustment
(COLA) matches the first 3.00% increase in the Consumer Price Index for all Urban
Consumers (CPI-U) and half of any additional increase (up to 4.00%) up to a maximum
COLA of 5.00%.
Disability Coverage for members who are eligible to be considered for disability retirement
and retire on disability, the retirement multiplier is 1.70% on all service, regardless of when it
was earned, purchased, or granted. VSDP members are subject to a one-year waiting period
before becoming eligible for non-work-related disability benefits.
Plan 2 –Plan 2 is a defined benefit plan. The retirement benefit is based on a member’s age,
creditable service, and average final compensation at retirement using a formula. Employees are
eligible for Plan 2 if their membership date is on or after July 1, 2010, or their membership date is
before July 1, 2010, and they were not vested as of January 1, 2013.
Hybrid Opt-In Election –Eligible Plan 2 members were allowed to make an irrevocable
decision to opt into the Hybrid Retirement Plan during a special election window held
January 1 through April 30, 2014. The Hybrid Retirement Plan’s effective date for eligible
Plan 2 members who opted in was July 1, 2014. If eligible deferred members returned to
work during the election window, they were also eligible to opt into the Hybrid Retirement
Plan. Members who were eligible for an optional retirement plan (ORP) and have prior
service under Plan 2 were not eligible to elect the Hybrid Retirement Plan and remain as Plan
2 or ORP.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)42
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Plan 2 (Continued)
Retirement Contributions –Employees contribute 5.00% of their compensation each month
to their member contribution account through a pre-tax salary reduction. Some political
subdivisions elected to phase in the required 5.00% member contribution but all employees
will be paying the full 5.00% by July 1, 2016.
Creditable Service –Same as Plan 1.
Vesting –Same as Plan 1.
Calculating the Benefit –See definition under Plan 1.
Average Final Compensation –A member’s average final compensation is the average of
their 60 consecutive months of highest compensation as a covered employee.
Service Retirement Multiplier –Same as Plan 1 for service earned, purchased, or granted
prior to January 1, 2013. For non-hazardous duty members the retirement multiplier is 1.65%
for creditable service earned, purchased, or granted on or after January 1, 2013. Sheriffs,
regional jail superintendents, and hazardous duty employees are same as Plan 1.
Normal Retirement Age –Normal Social Security retirement age. Hazardous duty
employees are the same as Plan 1.
Earliest Unreduced Retirement Eligibility –Normal Social Security retirement age with at
least five years (60 months) of creditable service or when their age and service equal 90.
Hazardous duty employees are the same as Plan 1.
Earliest Reduced Retirement Eligibility –Age 60 with at least five years (60 months) of
creditable service. Hazardous duty employees are the same as Plan 1.
Cost-of-Living Adjustment (COLA) in Retirement –The Cost-of-Living Adjustment
(COLA) matches the first 2.00% increase in the CPI-U and half of any additional increase (up
to 2.00%), for a maximum COLA of 3.00%.
Disability Coverage –Same as Plan 1 except that the retirement multiplier is 1.65%.
Hybrid Retirement Plan –The Hybrid Retirement Plan combines the features of a defined
benefit plan and a defined contribution plan. Most members hired on or after January 1, 2014 are
in this plan, as well as Plan 1 and Plan 2 members who were eligible and opted into the plan
during a special election window. The defined benefit is based on a member’s age, creditable
service, and average final compensation at retirement using a formula. The benefit from the
defined contribution component of the plan depends on the member and employer contributions
made to the plan and the investment performance of those contributions. In addition to the
monthly benefit payment payable from the defined benefit plan at retirement, a member may start
receiving distributions from the balance in the defined contribution account, reflecting the
contributions, investment gains or losses, and any required fees.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)43
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Hybrid Retirement Plan (Continued)
Eligible Members –Employees are in the Hybrid Retirement Plan if their membership date
is on or after January 1, 2014. This includes political subdivision employees; members in Plan
1 or Plan 2 who elected to opt into the plan during the election window held
January 1 through April 30, 2014; the plan’s effective date for opt-in members was
July 1, 2014.
Non-Eligible Members –Some employees are not eligible to participate in the Hybrid
Retirement Plan. They include political subdivision employees who are covered by enhanced
benefits for hazardous duty employees and those employees eligible for an optional
retirement plan (ORP) must elect the ORP plan or the Hybrid Retirement Plan. If these
members have prior service under Plan 1 or Plan 2, they are not eligible to elect the Hybrid
Retirement Plan and must select Plan 1 or Plan 2 (as applicable) or ORP.
Retirement Contributions –A member’s retirement benefit is funded through mandatory
and voluntary contributions made by the member and the employer to both the defined
benefit and the defined contribution components of the plan. Mandatory contributions are
based on a percentage of the employee’s creditable compensation and are required from both
the member and the employer. Additionally, members may choose to make voluntary
contributions to the defined contribution component of the plan, and the employer is required
to match those voluntary contributions according to specified percentages.
Creditable Service –
o Defined Benefit Component: Under the defined benefit component of the plan,
creditable service includes active service and is generally subject to the same terms as in
Plans 1 and 2.
o Defined Contributions Component: Under the defined contribution component,
creditable service is used to determine vesting for the employer contribution portion of
the plan.
Vesting –
o Defined Benefit Component: Defined benefit vesting is the minimum length of service
a member needs to qualify for a future retirement benefit. Members are vested under the
defined benefit component of the Hybrid Retirement Plan when they reach five years
(60 months) of creditable service. Plan 1 or Plan 2 members with at least five years
(60 months) of creditable service who opted into the Hybrid Retirement Plan remain
vested in the defined benefit component.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)44
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Hybrid Retirement Plan (Continued)
Vesting –(Continued)
o Defined Contributions Component: Defined contribution vesting refers to the
minimum length of service a member needs to be eligible to withdraw the employer
contributions from the defined contribution component of the plan. Members are always
100% vested in the contributions that they make. Upon retirement or leaving covered
employment, a member is eligible to withdraw a percentage of employer contributions to
the defined contribution component of the plan, based on service. After two years, a
member is 50% vested and may withdraw 50% of employer contributions. After three
years, a member is 75% vested and may withdraw 75% of employer contributions. After
four or more years, a member is 100% vested and may withdraw 100% of employer
contributions. Distribution is not required by law until age 70½.
Calculating the Benefit –
o Defined Benefit Component: See definition under Plan 1.
o Defined Contribution Component: The benefit is based on contributions made by the
member and any matching contributions made by the employer, plus net investment
earnings on those contributions.
Average Final Compensation –Same as Plan 2 for the defined benefit component of the
plan.
Service Retirement Multiplier –The retirement multiplier for the defined benefit
component is 1.00%. For members who opted into the Hybrid Retirement Plan from Plan 1
or Plan 2, the applicable multipliers for those plans will be used to calculate the retirement
benefit for service credited in those plans.This is not applicable to sheriffs, regional jail
superintendents, or hazardous duty employees.
Normal Retirement Age –
o Defined Benefit Component: Same as Plan 2, however, not applicable for hazardous
duty employees.
o Defined Contribution Component: Members are eligible to receive distributions upon
leaving employment, subject to restrictions.
Earliest Unreduced Retirement Eligibility –
o Defined Benefit Component: Normal Social Security retirement age and have at least
five years (60 months) of creditable service or when their age and service equal 90. This
is not applicable to hazardous duty employees.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)45
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Hybrid Retirement Plan (Continued)
Earliest Unreduced Retirement Eligibility –
o Defined Benefit Component: Members may retire with a reduced benefit as early as
age 60 with at least five years (60 months) of creditable service. This is not applicable to
hazardous duty employees.
o Defined Contribution Component: Members are eligible to receive distributions upon
leaving employment, subject to restrictions.
Cost-of-Living Adjustment (COLA) in Retirement
o Defined Benefit Component: Same as Plan 2.
Disability Coverage –Employees of political subdivisions (including Plan 1 and Plan 2
opt-ins) participate in the Virginia Local Disability Program (VLDP) unless their local
governing body provides and employer-paid comparable program for its members. Hybrid
members (including Plan 1 and Plan 2 opt-ins) covered under VLDP are subject to a one-year
waiting period before becoming eligible for non-work-related disability benefits.
Purchase of Prior Service –As with Plans 1 and 2, members may choose to purchase prior
service credits subject to the Plan provisions.
Employees Covered by Benefit Terms
As of the June 30, 2014 actuarial valuation, the following employees were covered by the benefit
terms of the pension plan:
Number
Inactive members or their beneficiaries currently receiving benefits 58
Inactive members:
Vested inactive members 19
Non-vested inactive members 31
Inactive members active elsewhere in VRS 56
Total inactive members 106
Active members 81
Total covered employees 245
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)46
Note 7.Defined Benefit Pension Plan (Continued)
Contributions
The contribution requirement for active employees is governed by §51.1-145 of the Code of Virginia,
as amended, but may be impacted as a result of funding options provided to political subdivisions by
the Virginia General Assembly. Employees are required to contribute 5.00% of their compensation
toward their retirement. Prior to July 1, 2012, all or part of the 5.00% member contribution may have
been assumed by the employer. Beginning July 1, 2012 new employees were required to pay the
5.00% member contribution. In addition, for existing employees, employers were required to begin
making the employee pay the 5.00% member contribution. This could be phased in over a period of
up to 5 years and the employer is required to provide a salary increase equal to the amount of the
increase in the employee-paid member contribution.
The political subdivision’s contractually required contribution rate for the year ended June 30, 2016
was 12.40%of covered employee compensation. This rate was based on an actuarially determined
rate from an actuarial valuation as of June 30, 2013.
This rate, when combined with employee contributions,was expected to finance the costs of benefits
earned by employees during the year, with an additional amount to finance any unfunded accrued
liability. Contributions to the pension plan from the political subdivision were $407,957 and
$415,814 for the years ended June 30, 2016 and June 30, 2015, respectively.
Net Pension Liability
The political subdivision’s net pension liability was measured as of June 30, 2015. The total pension
liability used to calculate the net pension liability was determined by an actuarial valuation performed
as of June 30, 2014, using updated actuarial assumptions, applied to all periods included in the
measurement and rolled forward to the measurement date of June 30, 2015.
Actuarial Assumptions
The total pension liability for General Employees in the Political Subdivision’s Retirement Plan was
based on an actuarial valuation as of June 30, 2014, using the Entry Age Normal actuarial cost
method and the following assumptions, applied to all periods included in the measurement and rolled
forward to the measurement date of June 30, 2015.
Inflation 2.50%
General Employees –
including inflation
3.50 –5.35%
Public Safety Employees –
increases, including inflation
3.50 –4.75%
Investment rate of return 7.00%, net of pension plan investment expense,
including inflation
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)47
Note 7.Defined Benefit Pension Plan (Continued)
Actuarial Assumptions (Continued)
Mortality rates: General employees –14% of deaths are assumed to be service related. Public Safety
Employees –60% of deaths are assumed to be service related. Mortality is projected using the
applicable RP-2000 Mortality Table Projected to 2020 with various set backs or set forwards for both
males and females.
The actuarial assumptions used in the June 30, 2014 valuation were based on the results of an
actuarial experience study for the period from July 1, 2008 through June 30, 2012. Changes to the
actuarial assumptions as a result of the experience study are as follows:
General Employees –Largest 10 –Non-LEOS and all Others (Non 10 Largest): Update
mortality table; decrease in rates of service retirement; decrease in rates of disability retirement;
and reduce rates of salary increase by 0.25% per year.
Public Safety Employees –Largest 10 –Non-LEOS and all Others (Non 10 Largest): Update
mortality table; adjustment to rates of service retirement for females (Non 10 Largest); decrease
in rates of male disability (Largest 10, only); decrease in male and female rates of disability
(Non 10 Largest) increase in rates of withdrawal, and reduce rates of salary increase by 0.25%
per year.
Long-Term Expected Rate of Return
The long-term expected rate of return on pension System investments was determined using a
log-normal distribution analysis in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension System investment expense and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and by
adding expected inflation. The target asset allocation and best estimate of arithmetic real rates of
return for each major asset class are summarized in the following table:
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)48
Note 7.Defined Benefit Pension Plan (Continued)
Long-Term Expected Rate of Return (Continued)
Weighted
Arithmetic Average
Long-Term Long-Term
Expected Expected
Target Rate of Rate of
Asset Class (Strategy)Allocation Return Return
U.S. Equity 19.50 % 6.46 % 1.26 %
Developed Non U.S. Equity 16.50 6.28 % 1.04
Emerging Market Equity 6.00 10.00 % 0.60
Fixed Income 15.00 0.09 % 0.01
Emerging Debt 3.00 3.51 % 0.11
Rate Sensitive Credit 4.50 3.51 % 0.16
4.50 5.00 % 0.23
Convertibles 3.00 4.81 % 0.14
Public Real Estate 2.25 6.12 % 0.14
Private Real Estate 12.75 7.10 % 0.91
Private Equity 12.00 10.41 % 1.25
Cash 1.00 (1.50)%(0.02)
Total 100.00 %5.83 %
Inflation 2.50 %
Expected arithmetic nominal return 8.33 %
Discount Rate
The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows
used to determine the discount rate assumed that System member contributions will be made per the
VRS Statutes and the employer contributions will be made in accordance with the VRS funding
policy at rates equal to the difference between actuarially determined contribution rates adopted by
the VRS Board of Trustees and the member rate. Through the fiscal year ending June 30, 2018, the
rate contributed by the employer for the Political Subdivision Retirement Plan will be subject to the
portion of the VRS Board-certified rates that are funded by the Virginia General Assembly. From
July 1, 2018 on, participating employers are assumed to contribute 100% of the actuarially
determined contribution rates. Based on those assumptions, the pension plan’s fiduciary net position
was projected to be available to make all projected future benefit payments of current active and
inactive employees. Therefore the long-term expected rate of return was applied to all periods of
projected benefit payments to determine the total pension liability.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)49
Note 7.Defined Benefit Pension Plan (Continued)
Changes in Net Pension Liability
Increase (Decrease)
Total Plan Net
Pension Fiduciary Pension
Liability Net Position Liability
(a)(b)(a) –(b)
Balances at June 30, 2014 $16,307,617 $14,827,717 $1,479,900
Changes for the year:
Service cost 450,265 - 450,265
Interest 1,112,256 - 1,112,256
Differences between expected
and actual experience 139,140 - 139,140
Contributions –employer - 413,851 (413,851)
Contributions –employee - 181,194 (181,194)
Net investment income - 673,666 (673,666)
Benefit payments, including refunds
of employee contributions (836,477)(836,477)-
Administrative expenses - (9,337)9,337
Other changes - (144)144
Net changes 865,184 422,753 442,431
Balances at June 30, 2015 $17,172,801 $15,250,470 $1,922,331
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the political subdivision using the discount rate of
7.00%, as well as what the political subdivision’s net pension liability would be if it were calculated
using a discount rate that is one percentage point lower (6.00%) or one percentage point higher
(8.00%) than the current rate:
1.00%Current 1.00%
Decrease Discount Increase
(6.00%)Rate (7.00%)(8.00%)
Political subdivision’s
net pension liability $4,129,876 $1,922,331 $88,531
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)50
Note 7.Defined Benefit Pension Plan (Continued)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended June 30, 2016, the political subdivision recognized pension expense of $250,608.
At June 30, 2016, the political subdivision reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $93,371 $-
Change in assumptions - -
on pension plan investments - -
Employer contributions subsequent to the
measurement date 407,957 399,338
Total $501,328 $399,338
The $407,957 reported as deferred outflows of resources related to pensions resulting from the
Political Subdivision’s contributions subsequent to the measurement date will be recognized as a
reduction of the Net Pension Liability in the year ended June 30, 2017. Other amounts reported as
deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
Reduction
Year Ending to Pension
June 30,Expense
2017 $(111,042)
2018 (111,042)
2019 (154,984)
2020 71,100
2021 -
Thereafter -
Payables to the Pension Plan
At June 30, 2016, approximately $51,785 was payable to the Virginia Retirement System for the
legally required contributions related to June 2016 payroll.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)51
Note 8.Other Postemployment Benefits
Plan Description
The Town provides postemployment 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 and pay 100% of the Medicare supplement
premium. 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 employee’s
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.
The plan does not provide audited financial statements.
Funding Policy
The Town currently funds postemployment 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
The components of the Town’s annual OPEB cost (expense) are discussed below. The Annual
Required Contribution (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 2016, the Town’s pay-as-you-go
funding totaled $13,300 and resulted in a Net OPEB obligation of $145,051. The pay-as-you-go
funding includes the Town’s contribution towards retiree health care premiums of $2,400, and an
implicit subsidy of the retiree health care premiums created through the blending of active employee
and retiree insurance rates.
Annual required contribution $ 53,400
Interest on net OPEB obligation 3,681
Adjustment to annual required contribution (3,888)
Annual OPEB cost 53,193
Less funding (13,300)
Increase in net OPEB obligation 39,893
Net OPEB obligation-beginning of year 105,158
Net OPEB obligation-end of year $ 145,051
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)52
Note 8.Other Postemployment 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 2016, 2015,and 2014 are as follows:
Fiscal Year
Annual OPEB
Cost Net OPEB
June 30, 2016 $53,193 25.0%$145,051
June 30, 2015 50,374 17.7%105,158
June 30, 2014 40,076 56.4%63,684
Funded Status and Funding Progress
As of January 1, 2015, the Town’s most recent actuarial valuation date, the unfunded actuarial
accrued liability (UAAL) for benefits was $304,700, all of which was unfunded. The covered payroll
(annual payroll of active employees covered by the plan) was $3,281,500, and the ratio of the UAAL
to the covered payroll was 9.29%.
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.
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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)53
Note 8.Other Postemployment Benefits (Continued)
Annual OPEB Cost and Net OPEB Obligation (Continued)
Methods and Assumptions (Continued)
In the January 1, 2015 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 2.50%
inflation rate, a 3.50% discount rate, and an initial annual healthcare cost trend of 6.60% reduced by
decrements each year to arrive at an ultimate healthcare cost trend rate of 4.50%. The unfunded
accrued liability is being amortized over 30 years. The Town has selected an open amortization
method. The amortization amount is determined as a level percentage of payroll. The remaining
amortization period at June 30, 2016 is 30 years.
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, June 1, 2005, 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 an agreed upon rate. This is a 30-year agreement
and will expire in 2035.
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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)54
Note 10.Property Taxes (Continued)
The annual assessment for real estate is based on 100% of the assessed fair market value. A penalty
of 10% of the unpaid tax is due for late payment. Interest is accrued at 10% for the initial year of
delinquency, and thereafter at the maximum annual rate authorized by the Internal Revenue Code
Section 6621(b). The effective tax rates per $100 of assessed value for the year ended June 30 were
as follows:
Note 11.Leases
The Town leases a portion of a building to the Virginia State Department of Health for $1,602 per
month on a month to month basis until terminated by either party.
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
2015-2016, total premiums paid were approximately $99,000. 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 2015-2016, total premiums paid were approximately $105,000.
General liability and business automobile have a $1,000,000 limit per occurrence. Boiler and
machinery coverage and property insurance are covered per statement of values. The Town maintains
an additional $4,000,000 umbrella policy over all forms of liability insurance. Police professional
liability and public officials’ liability insurance with a $1,000,000 limit are covered through a policy
with the Commonwealth of Virginia.
There were no significant reductions in insurance coverage 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 2015-2016, total premiums paid were approximately $645,000.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)55
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.
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 an old landfill site.
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.
Roanoke County/Vinton Branch Library
On September 6, 2011, the Town and Roanoke County reached an agreement to purchase property for
a Roanoke County/Vinton Branch Library to be built by Roanoke County. The property cost
$1.25 million, and the Town is responsible for half of that amount, or $625,000. Roanoke County is
responsible for the remainder of the costs. The Town made an additional $100,000 good faith advance
payment in fiscal year 2012 with the remaining costs for the project to be spread out over the next 10
years. The Town will pay $50,000 each year for year’s one through five, and $55,500 per year in
years six through ten. Roanoke County will own the property and add it to its capital assets. The
$50,000 current year contribution is included in principal retirement expenditures on the fund
statement.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)56
Note 14.Major Customer/Taxpayer
During fiscal year 2016, approximately 5.6% of the Town’s business-type revenues were generated
by one industrial customer.
Note 15.Fund Balances
Fund balance is classified as nonspendable, restricted, committed, assigned,and/or unassigned based
primarily on the extent to which the Town is bound to observe constraints imposed upon the use of
the resources in the general fund. The constraints placed on the general fund balance are presented
below:
General Fund
Nonspendable:
Inventories $5,772
Prepaids 56,276
62,048
Restricted for:
Public safety 209,649
209,649
Unassigned 2,607,524
Total fund balance
Note 16.Subsequent Events
In July 2016,the Town was awarded a $417,710 grant for Glade Creek Phase II from VDOT,which
requires a match from the Town of $180,000.
In August 2016,the Town awarded the contract for the construction of Phase I of the Glade Creek
Greenway to a contractor in the amount of $173,091.
Note 17.New Accounting Standards
The Governmental Accounting Standards Board (GASB) has issued the following Statements which
are not yet effective.
GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other than Pensions
improves the usefulness of information about postemployment benefits other than pensions (other
postemployment benefits or OPEB) included in the general purpose external financial reports of state
and local governmental OPEB plans for making decisions and assessing accountability. This
Statement results from a comprehensive review of the effectiveness of existing standards of
accounting and financial reporting for all postemployment benefits (pensions and OPEB) with regard
to providing decision-useful information, supporting assessments of accountability and interperiod
equity, and creating additional transparency. This Statement will be effective for the year ending
June 30, 2017.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
(Continued)57
Note 17.New Accounting Standards (Continued)
GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other
Than Pensions improves accounting and financial reporting by state and local governments for
postemployment benefits other than pensions (other postemployment benefits or OPEB). It also
improves information provided by state and local governmental employers about financial support for
OPEB that is provided by other entities. This Statement results from a comprehensive review of the
effectiveness of existing standards of accounting and financial reporting for all postemployment
benefits (pensions and OPEB) with regard to providing decision-useful information, supporting
assessments of accountability and interperiod equity, and creating additional transparency. This
Statement will be effective for the year ending June 30, 2018.
GASB Statement No. 77, Tax Abatement Disclosures, requires governments to disclose information
about the nature and magnitude of tax abatements granted to a specific taxpayer, typically for the
purpose of economic development. This does not cover programs that reduce the tax liabilities of
broad classes of taxpayers, such as senior citizens or veterans, and which are not the product of
individual agreements with each taxpayer. The Statement does not consider issues related to
recognition. This Statement will be effective for the year ending June 30, 2017.
GASB Statement No. 78, Pensions Provided through Certain Multiple-Employer Defined Benefit
Pension Plans addresses a practice issue regarding the scope and applicability of Statement No. 68,
Accounting and Financial Reporting for Pensions. This issue is associated with pensions provided
through certain multiple-employer defined benefit pension plans and to state or local governmental
employers whose employees are provided with such pensions. This Statement amends the scope and
applicability of Statement 68 to exclude pensions provided to employees of state or local
governmental employers through a cost-sharing multiple-employer defined benefit pension plan that
(1) is not a state or local governmental pension plan, (2) is used to provide defined benefit pensions
both to employees of state or local governmental employers and to employees of employers that are
not state or local governmental employers, and (3) has no predominant state or local governmental
employer (either individually or collectively with other state or local governmental employers that
provide pensions through the pension plan). This Statement establishes requirements for recognition
and measurement of pension expense, expenditures, and liabilities; note disclosures; and required
supplementary information for pensions that have the characteristics described above. This Statement
will be effective for the year ending June 30, 2017.
GASB Statement No. 79,Certain External Investment Pools and Pool Participants establishes
criteria for an external investment pool to qualify for making the election to measure all of its
investments at amortized cost for financial reporting purposes. This Statement establishes additional
note disclosure requirements for qualifying external investment pools that measure all of their
investments at amortized cost for financial reporting purposes and for governments that participate in
those pools. Those disclosures for both the qualifying external investment pools and their participants
include information about any limitations or restrictions on participant withdrawals. This Statement
will be effective for the year ending June 30, 2017.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
58
Note 17.New Accounting Standards (Continued)
GASB Statement No. 80,Blending Requirements for Certain Component Units –an amendment of
GASB Statement No. 14 clarifies the financial statement presentation requirements for certain
component units. This Statement amends the blending requirements established in paragraph 53 of
Statement No. 14, The Financial Reporting Entity, as amended. This Statement amends the blending
requirements for the financial statement presentation of component units of all state and local
governments. The additional criterion requires blending of a component unit incorporated as a
not-for-profit corporation in which the primary government is the sole corporate member. The
additional criterion does not apply to component units included in the financial reporting entity
pursuant to the provisions of Statement No. 39, Determining Whether Certain Organizations Are
Component Units. This Statement will be effective for the year ending June 30, 2017.
GASB Statement No. 81,Irrevocable Split-Interest Agreements provides recognition and
measurement guidance for situations in which a government is a beneficiary of the agreement. This
Statement requires that a government that receives resources pursuant to an irrevocable split-interest
agreement recognize assets, liabilities, and deferred inflows of resources at the inception of the
agreement. Furthermore, this Statement requires that a government recognize assets representing its
beneficial interests in irrevocable split-interest agreements that are administered by a third party, if
the government controls the present service capacity of the beneficial interests. This Statement
requires that a government recognize revenue when the resources become applicable to the reporting
period. This Statement will be effective for the year ending June 30, 2018.
GASB Statement No. 82,Pension Issues—an amendment of GASB Statements No. 67, No. 68, and
No. 73 addresses certain issues that have been raised with respect to Statements No. 67, Financial
Reporting for Pension Plans, No. 68, Accounting and Financial Reporting for Pensions, and No. 73,
Accounting and Financial Reporting for Pensions and Related Assets that are not within the scope of
GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68.
Specifically, this Statement addresses issues regarding (1) the presentation of payroll-related
measures in required supplementary information, (2) the selection of assumptions and the treatment
of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes,
and (3) the classification of payments made by employers to satisfy employee (plan member)
contribution requirements. This Statement will be effective for the year ending June 30, 2017, except
for certain provisions regarding assumptions for plans with a measurement date that differs from the
employer’s reporting date –those provisions are effective for the year ending June 30, 2018.
Management has not yet evaluated the effects, if any, of adopting these standards.
THIS PAGE INTENTIONALLY BLANK
59
REQUIRED SUPPLEMENTARY
INFORMATION
EXHIBIT 11
2015 2014
Total Pension Liability
Service cost 450,265$ 430,229$
Interest on total pension liability 1,112,256 1,065,284
Difference between expected and actual experience 139,140 -
Benefit payments, including refunds of employee contributions (836,477) (812,476)
Net change in total pension liability 865,184 683,037
Total pension liability - beginning 16,307,617 15,624,580
Total pension liability - ending 17,172,801 16,307,617
Plan Fiduciary Net Position
Contributions - employer 413,851 307,429
Contributions - employee 181,194 184,601
Net investment income 673,666 2,045,884
Benefit payments, including refunds of employee contributions (836,477) (812,476)
Administrative expenses (9,337) (11,195)
Other (144) 108
Net change in plan fiduciary net position 422,753 1,714,351
Plan fiduciary net position - beginning 14,827,717 13,113,366
Plan fiduciary net position - ending 15,250,470 14,827,717
Net pension liability - ending 1,922,331$ 1,479,900$
Plan fiduciary net position as a percentage of total pension liability 89%91%
Covered employee payroll 3,353,343$ 3,699,186$
Net pension liability as a percentage of covered employee payroll 57%40%
Schedule is intended to show information for 10 years.Since fiscal year 2015 (plan year 2014)was the first year for this
presentation, no earlier data is available. Additional years will be included as they become available.
TOWN OF VINTON, VIRGINIA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
June 30, 2016
Plan Year
The plan years above are reported in the entity’s financial statements in the fiscal year following the plan year –i.e.,plan
year 2014 information was presented in the entity's fiscal year 2015 financial report.
The Notes to Required Supplementary Information
are an integral part of this statement.
60
EXHIBIT 12
Entity Fiscal
Year Ended
June 30
Actuarially
Determined
Contribution
Relation to
Actuarially
Determined
Contribution
Contribution
Deficiency
(Excess)
Covered
Employee Payroll
Percentage of
Covered
Employee Payroll
Primary
Government
2016 407,958$ 407,958$ -$ 3,289,982$ 12.40%
2015 415,814 415,814 - 3,353,343 12.40%
TOWN OF VINTON, VIRGINIA
SCHEDULE OF PENSION CONTRIBUTIONS
June 30, 2016
REQUIRED SUPPLEMENTAL INFORMATION
Schedule is intended to show information for 10 years. Since 2015 was the first year for this presentation, only two years of
data is available. Additional years will be included as they become available.
The Notes to Required Supplementary Information
are an integral part of this statement.
61
EXHIBIT 13
(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, 2015 -$ 304,700$ 304,700$ 0.00%3,281,500$ 9.29%
January 1, 2012 - 279,700 279,700 0.00 3,109,500 9.00
January 1, 2009 - 479,500 479,500 0.00 3,715,300 12.91
TOWN OF VINTON, VIRGINIA
SCHEDULE OF FUNDING PROGRESS – OPEB
June 30, 2016
The Notes to Required Supplementary Information
are an integral part of this statement.
62
63
TOWN OF VINTON, VIRGINIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2016
Note 1.Changes of Benefit Terms
There have been no actuarially material changes to the Virginia Retirement System (System) benefit
provisions since the prior actuarial valuation. The 2014 valuation includes Hybrid Retirement Plan
members for the first time. The hybrid plan applies to most new employees hired on or after
January 1, 2014 and not covered by enhanced hazardous duty benefits. Because this was a new
benefit and the number of participants was relatively small, the impact on the liabilities as of the
measurement date of June 30, 2015 are not material.
Note 2.Changes of Assumptions
The following changes in actuarial assumptions were made effective June 30, 2013 based on the most
recent experience study of the System for the four-year period ending June 30, 2012:
Largest 10 –Non-LEOS:
-Update mortality table
-Decrease in rates of service retirement
-Decrease in rates of disability retirement
-Reduce rates of salary increase by 0.25% per year
Largest 10 –LEOS:
-Update mortality table
-Decrease in male rates of disability
All Others (Non 10 Largest) –Non-LEOS:
-Update mortality table
-Decrease in rates of service retirement
-Decrease in rates of disability retirement
-Reduce rates of salary increase by 0.25% per year
All Others (Non 10 Largest) –LEOS:
-Update mortality table
-Adjustments to rates of service retirement for females
-Increase in rates of withdrawal
-Decrease in male and female rates of disability
Teacher cost-sharing pool
-Update mortality table
-Adjustments to the rates of service retirement
-Decrease in rates of withdrawals for 3 through 9 years of service
-Decrease in rates of disability
-Reduce rates of salary increase by 0.25% per year
64
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.
The Town implemented GASB Statement 68 and restated beginning net position for 2015. The restatement is not
included in the prior year data.
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 ...................................................................5-8
These tables contain information to help the
reader assess the factors affecting the Town’s
ability to generate its property and sales taxes, as
well as customer rates for its water and sewer
operations.
Debt Capacity .......................................................................9-11
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 ........................12-13
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.......................................................14-16
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 the relevant year.
THIS PAGE INTENTIONALLY BLANK
TABLE 1
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Governmental activities
Net investment in capital assets 6,225,603$ 5,929,925$ 5,427,254$ 5,704,050$ 5,919,643$ 6,316,937$ 6,760,474$ 7,365,632$ 7,763,470$ 7,500,994$
Restricted 209,649 235,246 190,161 91,676 - 20,053 20,000 20,000 20,000 20,000
Unrestricted 801,646 499,226 2,291,758 2,219,240 1,972,859 1,491,375 1,362,770 1,650,476 2,451,898 3,431,442
Total governmental activities net position 7,236,898$ 6,664,397$ 7,909,173$ 8,014,966$ 7,892,502$ 7,828,365$ 8,143,244$ 9,036,108$ 10,235,368$ 10,952,436$
Business-type activities
Net investment in capital assets 4,880,340$ 5,184,003$ 4,834,097$ 4,853,969$ 4,838,640$ 5,019,517$ 5,437,639$ 5,342,230$ 5,497,604$ 5,555,583$
Unrestricted 1,035,813 117,415 410,722 394,976 339,523 661,273 297,150 968,176 1,255,035 1,837,429
Total business-type activities net position 5,916,153$ 5,301,418$ 5,244,819$ 5,248,945$ 5,178,163$ 5,680,790$ 5,734,789$ 6,310,406$ 6,752,639$ 7,393,012$
Primary government
Net investment in capital assets 11,105,943$ 11,113,928$ 10,261,351$ 10,558,019$ 10,758,283$ 11,336,454$ 12,198,113$ 12,707,862$ 13,261,074$ 13,056,577$
Restricted 209,649 235,246 190,161 91,676 - 20,053 20,000 20,000 20,000 20,000
Unrestricted 1,837,459 616,641 2,702,480 2,614,216 2,312,382 2,152,648 1,659,920 2,618,652 3,706,933 5,268,871
Total primary government net position 13,153,051$ 11,965,815$ 13,153,992$ 13,263,911$ 13,070,665$ 13,509,155$ 13,878,033$ 15,346,514$ 16,988,007$ 18,345,448$
Note:
TOWN OF VINTON, VIRGINIA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
65
TABLE 2
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Expenses
Governmental activities
General government 1,001,560$ 927,954$ 962,341$ 942,315$ 948,803$ 934,388$ 1,023,227$ 1,037,073$ 906,072$ 1,842,084$
Public safety 3,340,624 3,418,566 3,339,148 3,238,361 3,214,622 3,397,562 3,446,746 3,593,946 3,407,536 3,454,713
Public works 2,026,305 2,021,994 1,993,713 2,074,464 2,062,430 2,243,111 2,457,832 2,455,754 2,905,249 2,058,379
Parks, recreation, and cultural 591,342 621,897 635,252 588,649 553,866 583,569 617,778 610,756 575,895 300,854
Community development 447,908 427,409 575,557 398,517 1,034,510 339,983 393,160 339,304 227,303 218,941
Interest on long-term debt 126,164 193,242 200,584 143,455 183,672 194,159 203,787 211,189 220,551 188,966
Total governmental activities 7,533,903 7,611,062 7,706,595 7,385,761 7,997,903 7,692,772 8,142,530 8,248,022 8,242,606 8,063,937
Business-type activities
Water and sewer 3,103,779 2,994,485 3,174,896 2,946,127 3,044,342 3,002,964 3,238,927 3,189,315 3,148,236 3,035,847
Total business-type activities expense 3,103,779 2,994,485 3,174,896 2,946,127 3,044,342 3,002,964 3,238,927 3,189,315 3,148,236 3,035,847
Total primary government expenses 10,637,682$ 10,605,547$ 10,881,491$ 10,331,888$ 11,042,245$ 10,695,736$ 11,381,457$ 11,437,337$ 11,390,842$ 11,099,784$
Program Revenues
Governmental activities
Charges for services
Public safety 63,735$ 72,356$ 88,364$ 89,115$ 91,196$ 119,870$ 108,187$ 172,357$ 128,216$ 231,207$
Public works 110,099 110,295 110,425 110,115 110,460 110,380 110,175 132,382 114,274 110,220
Other activities 559,171 570,459 554,666 495,133 440,883 466,306 489,901 436,835 450,338 370,838
Operating grants and contributions 1,389,380 1,426,127 1,382,744 1,287,108 1,281,998 1,318,394 1,366,971 1,454,813 1,691,163 1,282,244
Capital grants and contributions 317,643 384,074 114,966 53,749 66,545 75,188 8,034 2,146 91,590 1,337,016
Total governmental activities program revenues 2,440,028 2,563,311 2,251,165 2,035,220 1,991,082 2,090,138 2,083,268 2,198,533 2,475,581 3,331,525
Business-type activities
Charges for services
Water and sewer 3,437,535 3,195,850 3,002,970 2,754,147 2,753,851 2,672,156 2,439,634 2,289,754 2,255,505 2,274,224
Capital grants and contributions ------- 303,556 -48,540
Total business-type activities program revenues 3,437,535 3,195,850 3,002,970 2,754,147 2,753,851 2,672,156 2,439,634 2,593,310 2,255,505 2,322,764
Total primary government program revenues 5,877,563$ 5,759,161$ 5,254,135$ 4,789,367$ 4,744,933$ 4,762,294$ 4,522,902$ 4,791,843$ 4,731,086$ 5,654,289$
Net (expense) revenue
Governmental activities (5,093,875)$ (5,047,751)$ (5,455,430)$ (5,350,541)$ (6,006,821)$ (5,602,634)$ (6,059,262)$ (6,049,489)$ (5,767,025)$ (4,732,412)$
Business-type activities 333,756 201,365 (171,926) (191,980) (290,491) (330,808) (799,293) (596,005) (892,731) (713,083)
Total primary government net expense (4,760,119)$ (4,846,386)$ (5,627,356)$ (5,542,521)$ (6,297,312)$ (5,933,442)$ (6,858,555)$ (6,645,494)$ (6,659,756)$ (5,445,495)$
(Continued)
TOWN OF VINTON, VIRGINIA
CHANGE IN NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
66
TABLE 2
(Continued)
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
TOWN OF VINTON, VIRGINIA
CHANGE IN NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes 640,391$ 539,764$ 448,349$ 453,135$ 510,558$ 429,409$ 419,401$ 434,176$ 467,806$ 411,866$
Sales tax 1,348,456 1,320,700 1,287,437 1,284,455 1,247,566 1,171,590 1,113,322 1,132,519 1,132,083 1,148,136
Business license tax 508,747 489,749 517,111 491,996 460,638 454,636 456,536 437,797 452,672 413,400
Meals tax 955,488 912,713 900,591 912,226 909,814 864,448 842,384 861,286 860,961 806,916
Other taxes 576,896 561,080 628,177 692,669 698,412 734,316 755,808 386,703 338,292 397,014
Utilities tax 767,736 782,869 787,097 785,555 782,487 801,264 803,044 795,268 804,812 790,308
Intergovernmental revenue not restricted 744,247 768,956 756,199 807,117 773,617 748,815 664,975 631,320 679,009 755,599
Investment earnings not restricted 17,709 15,438 14,540 4,434 3,020 1,904 3,187 28,917 112,672 210,193
Restricted investment earnings - 60,746 59,628 - - - - 187 11,087 145,554
Gain on disposal of property - 7,444 6,516 - - - - - - -
Other 106,706 27,002 21,752 41,418 184,846 81,373 29,275 16,038 77,077 48,702
Transfers - - - - 500,000 - 78,466 126,018 113,486 61,900
Total governmental activities 5,666,376 5,486,461 5,427,397 5,473,005 6,070,958 5,287,755 5,166,398 4,850,229 5,049,957 5,189,588
Business-type activities:
Investment earnings not restricted 989 - 7 66 414 1,174 1,824 16,719 67,772 110,024
Restricted investment earnings 329 1,353 5,301 762 91 427 1,727 26,873 47,234 -
Other 279,661 250,562 255,135 261,934 287,359 275,208 298,591 236,198 250,838 103,284
Transfers - - - - (500,000) - (78,466) (126,018) (113,486) (61,900)
Total business-type activities 280,979 251,915 260,443 262,762 (212,136) 276,809 223,676 153,772 252,358 151,408
Total primary government 5,947,355$ 5,738,376$ 5,687,840$ 5,735,767$ 5,858,822$ 5,564,564$ 5,390,074$ 5,004,001$ 5,302,315$ 5,340,996$
Changes in Net Position
Governmental activities 572,501$ 438,710$ (28,033)$ 122,464$ 64,137$ (314,879)$ (892,864)$ (1,199,260)$ (717,068)$ 457,176$
Business-type activities 614,735 453,280 88,517 70,782 (502,627) (53,999) (575,617) (442,233) (640,373) (561,675)
Total primary government 1,187,236$ 891,990$ 60,484$ 193,246$ (438,490)$ (368,878)$ (1,468,481)$ (1,641,493)$ (1,357,441)$ (104,499)$
Note: Water and sewer charges for service is the Town’s most significant source of own-source revenue.
67
TABLE 3
2010 2009 2008 2007
Pre-GASB 54 implementation:
General Fund
Reserved 361,090$ 272,645$ 314,902$ 2,835,003$
Unreserved 1,322,095 1,698,851 2,439,625 1,747,348
Total general fund 1,683,185$ 1,971,496$ 2,754,527$ 4,582,351$
2016 2015 2014 2013 2012 2011
Post-GASB 54 implementation:
General Fund
Nonspendable 62,048$ 59,817$ 60,358$ 19,101$ 62,746$ 66,341$
Restricted 209,649 235,246 190,161 274,908 17,068 372,271
Assigned - - - - - 100,000
Unassigned 2,607,524 2,361,436 2,919,657 2,837,802 2,584,947 1,196,789
Total general fund 2,879,221$ 2,656,499$ 3,170,176$ 3,131,811$ 2,664,761$ 1,735,401$
Note: 2011 was the first year of implementing GASB 54 which revised fund balance classifications.
TOWN OF VINTON, VIRGINIA
FUND BALANCES – GOVERNMENTAL FUND
Last Ten Fiscal Years
(modified accrual basis of accounting)
68
TABLE 4
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Revenues
Taxes 4,845,354$ 4,469,823$ 4,562,633$ 4,597,882$ 4,529,953$ 4,467,158$ 4,345,947$ 4,049,513$ 4,084,586$ 3,914,205$
Permits, privilege fees, and regulatory licenses 9,788 12,403 9,085 10,861 9,273 10,242 12,116 11,321 14,035 10,852
Fines and forfeitures 51,631 56,503 75,059 73,107 75,989 102,566 94,548 116,463 102,720 103,816
Revenue from use of money and property 141,889 197,241 198,625 105,998 105,666 118,560 156,533 201,341 298,369 527,343
Charges for services 452,903 438,558 407,900 387,049 333,832 355,606 328,116 319,293 270,521 190,513
Other 138,589 129,124 149,957 72,337 18,522 16,860 3,562 4,638 4,718 10,740
Intergovernmental 2,612,197 2,411,620 2,243,120 2,239,992 2,303,286 2,303,732 2,170,790 2,230,602 2,590,575 3,491,179
Total revenues 8,252,351 7,715,272 7,646,379 7,487,226 7,376,521 7,374,724 7,111,612 6,933,171 7,365,524 8,248,648
Expenditures
General government 710,412 668,082 645,071 632,136 618,951 628,386 641,853 652,359 695,916 660,932
Public safety 3,304,624 3,313,099 3,201,533 3,005,917 2,948,155 3,250,590 3,200,859 3,259,980 3,379,924 3,209,720
Public works 1,942,260 1,918,439 1,795,602 1,892,656 1,834,120 1,990,381 2,164,328 2,219,226 2,357,040 1,779,490
Parks, recreation, and cultural 594,550 617,934 620,636 547,604 518,579 551,240 574,215 571,291 511,481 294,221
Community development 687,006 604,476 468,678 386,592 544,245 333,617 365,366 316,267 221,764 217,263
Capital projects 437,389 551,936 140,478 542,235 160,752 114,309 90,570 384,982 1,962,873 5,899,542
Debt service:
Principal retirement 404,038 379,843 372,923 335,766 267,595 260,501 253,500 241,585 208,404 154,021
Interest and fiscal charges 115,486 182,584 186,377 174,699 185,715 195,608 205,189 212,090 208,912 202,495
Bond issuance costs 15,920 - - 36,638 - - - - 1,856 -
Total expenditures 8,211,685 8,236,393 7,431,298 7,554,243 7,078,112 7,324,632 7,495,880 7,857,780 9,548,170 12,417,684
Excess (deficiency) of revenues over
expenditures 40,666 (521,121) 215,081 (67,017) 298,409 50,092 (384,268) (924,609) (2,182,646) (4,169,036)
Other Financing Sources (Uses)
Proceeds from long-term debt 702,000 - - 2,411,641 - - - - - 1,045,000
Premium on issuance of debt - - - - - - - - - 45,554
Payments to refunded bond escrow agent (686,080) - - (2,190,889) - - - - - -
Proceeds from capital lease 136,599 - - 313,315 - - - - 227,500 -
Proceeds from sale of capital assets 29,537 7,444 6,516 - 130,951 2,124 17,491 15,560 13,836 4,825
Transfers in - - - - 500,000 - 78,466 126,018 113,486 61,900
Total other financing sources 182,056 7,444 6,516 534,067 630,951 2,124 95,957 141,578 354,822 1,157,279
Net change in fund balances 222,722$ (513,677)$ 221,597$ 467,050$ 929,360$ 52,216$ (288,311)$ (783,031)$ (1,827,824)$(3,011,757)$
Debt service as a percentage of
noncapital expenditures 6.90% 7.50% 7.58% 7.21% 6.49% 6.33% 6.19% 6.07% 5.53% 5.47%
TOWN OF VINTON, VIRGINIA
CHANGES IN FUND BALANCES – GOVERNMENTAL FUND
Last Ten Fiscal Years
(modified accrual basis of accounting)
69
TABLE 5
Public Total Total Actual Value as a
Fiscal Real Personal Machinery Service Mobile Assessed Direct Tax Taxable Percentage of
Year Estate Property and Tools Corporation Homes Value Rate Value Assessed Value
2016 461,728,300$ 45,958,231$7,146,010$ 17,038,560$38,300$ 531,909,401$0.07$ 531,909,401$ 100%
2015 458,804,800 45,024,930 6,934,930 17,364,350 42,930 528,171,940 0.06 528,171,940 100
2014 455,632,200 45,223,230 6,882,820 13,713,107 45,720 521,497,077 0.06 521,497,077 100
2013 456,795,100 43,698,440 7,310,490 14,385,245 47,520 522,236,795 0.06 522,236,795 100
2012 465,957,200 43,682,200 7,232,260 15,347,180 46,800 532,265,640 0.06 532,265,640 100
2011 469,499,100 43,392,270 7,232,700 15,191,110 47,740 535,362,920 0.06 535,362,920 100
2010 468,470,600 42,803,545 7,303,000 15,632,460 48,190 534,257,795 0.06 534,257,795 100
2009 463,014,500 47,556,110 7,191,835 14,933,569 51,675 532,747,689 0.06 532,747,689 100
2008 447,926,300 42,858,012 7,068,115 13,074,644 56,500 510,983,571 0.06 510,983,571 100
2007 429,817,400 40,691,155 7,665,980 14,387,422 60,775 492,622,732 0.06 492,622,732 100
Note: 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
Last Ten Fiscal Years
70
TABLE 6
Customer Revenue Rank Revenue Rank
Precision Fabrics Group, Inc.206,263$ 1 5.55 % 162,198$ 1 6.82 %
Aramark 141,033 2 3.80 69,683 2 2.93
Cardinal Glass 140,019 3 3.77 38,312 3 1.61
The Berkshire 61,064 4 1.64 27,614 4 1.16
Blue Ridge Manor Apartments 50,964 5 1.37 - - -
Roanoke County Schools 32,393 6 0.87 11,072 7 0.47
Clearview Manor 28,273 7 0.76 25,542 5 1.07
Richard Dickerson/RL Mansard Sq 22,085 8 0.59 - - -
RGM 20,825 9 0.56 14,556 6 0.61
F & W Management 19,952 10 0.54 - - -
722,871$ 348,977$
Source: Town of Vinton Finance Department
1) FY 2016 % was based on total water and sewer revenue of $3,714,104
2) FY 2007 % was based on total water and sewer revenue of $2,377,508
of Total Town
Revenue
Fiscal Year 2007
Percentage
of Total Town
Revenue
TOWN OF VINTON, VIRGINIA
PRINCIPAL WATER AND SEWER CUSTOMERS
Current Year and Nine Years Ago
Fiscal Year 2016
Percentage
71
TABLE 7
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30, Fiscal Year Amount of Levy Years Amount of Levy
2016 853,737$ 785,340$ 91.99% -$ 785,340$ 91.99%
2015 736,979 650,501 88.27 13,365 663,866 90.08
2014 645,360 610,294 94.57 12,010 622,304 94.57
2013 635,711 598,141 94.09 13,626 611,767 96.23
2012 637,626 600,406 94.16 13,528 613,934 96.28
2011 634,445 591,743 93.27 11,257 603,000 95.04
2010 637,392 607,701 95.34 13,950 621,651 97.53
2009 609,402 589,069 96.66 16,229 605,298 99.33
2008 634,952 623,656 98.22 5,946 629,602 99.16
2007 605,599 591,286 97.64 10,024 601,310 99.29
Source: Detailed Town property tax records.
Note: The Town increased the real estate tax rate from $0.03 to $0.07 in 2015
TOWN OF VINTON, VIRGINIA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Total Collections to Date
Collected within the
Fiscal Year of the Levy
72
TABLE 8
Fiscal
Year Water Sewer Water Sewer
2016 18.85$ 27.68$ 9.43$ 13.84$
2015 18.85 27.68 9.43 13.84
2014 17.31 25.42 8.66 12.71
2013 15.92 23.39 7.97 11.68
2012 15.92 23.39 7.97 11.68
2011 15.92 23.39 7.97 11.68
2010 13.84 20.34 6.93 10.16
2009 12.59 18.49 6.30 9.24
2008 12.59 18.49 6.30 9.24
2007 11.77 15.84 5.89 7.92
Note: Minimum charge for water and sewer resiential and commerical service is based on
standard 5/8" meter
1 Residential Minimum Charges are billed on a bi-monthly basis
2 Commercial Minimum Charges are billed on a monthly basis
Residential 1 Commercial 2
First 3,000 Gallons or Less First 1,500 Gallons or Less
TOWN OF VINTON, VIRGINIA
WATER AND SEWER RATES
Last Ten Fiscal Years
73
TABLE 9
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Debt limit 53,190,940$ 52,817,194$ 52,149,708$ 51,809,508$ 53,226,564$ 53,536,292$ 53,425,780$ 53,274,769$ 44,792,630$ 42,981,740$
Total net debt applicable to limit 7,757,263 8,344,738 8,959,814 10,118,536 7,125,222 7,103,808 7,548,025 7,978,160 8,394,491 8,753,625
Legal debt margin 45,433,677$ 44,472,456$ 43,189,894$ 41,690,972$ 46,101,342$ 46,432,484$ 45,877,755$ 45,296,609$ 36,398,139$ 34,228,115$
Total net debt applicable to the limit
as a percentage of debt limit 14.58% 15.80% 17.18% 19.53% 13.39% 13.27% 14.13% 14.98% 18.74% 20.37%
Legal Debt Margin Calculation for Fiscal Year 2016
Assessed value 531,909,401$
Debt limit (10% of assessed value)53,190,940$
Less debt applicable to limit:
General obligation bonds 7,757,263
Legal debt margin 45,433,677$
Note:
TOWN OF VINTON, VIRGINIA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
74
TABLE 10
Fiscal General Obligation Revenue Capital Obligations General Obligation Revenue Obligations
Year 1 Bonds1 Leases Payable Total Bonds1 Bonds1 Payable Total
2016 3,242,029$ -$ 230,969$ 327,424$ 3,800,422$ 4,539,723$ 2,184,037$ 280,605$ 7,004,365$
2015 3,488,651 - 159,415 385,080 4,033,146 4,892,861 2,150,851 294,516 7,338,228
2014 3,724,405 - 209,262 442,548 4,376,215 5,235,409 2,225,000 - 7,460,409
2013 3,993,409 - 257,549 425,000 4,675,958 6,125,127 2,340,000 - 8,465,127
2012 2,700,000 1,360,000 - 475,000 4,535,000 3,950,222 2,450,000 - 6,400,222
2011 2,845,000 1,435,000 47,595 - 4,327,595 4,258,808 2,555,000 - 6,813,808
2010 2,990,000 1,505,000 93,096 - 4,588,096 4,558,026 2,655,000 - 7,213,026
2009 3,130,000 1,575,000 136,595 - 4,841,595 4,848,160 2,750,000 - 7,598,160
2008 3,265,000 1,640,000 178,180 - 5,083,180 5,129,491 2,750,000 - 7,879,491
2007 3,360,000 1,700,000 4,084 - 5,064,084 5,393,625 - - 5,393,625
Net General Net General
Bonded Debt Bonded Debt
Total Taxable to Estimated Per Capita Per Capita
Fiscal Total Primary Assessed Actual Value of Bonded Debt Personal to Per Capita
Year Government Value Taxable Property Population Per Capita Income Personal Income
2016 7,781,752$ 531,909,401$ 1.46%8,231 945$ 45,577$ 2.07%
2015 8,381,512 528,171,940 1.59 8,151 1,028 43,418 2.37
2014 8,959,814 521,497,080 1.72 8,151 1,099 42,288 2.60
2013 10,118,536 518,095,080 1.95 8,092 1,250 40,688 3.07
2012 6,650,222 532,265,640 1.25 8,130 818 39,866 2.05
2011 7,103,808 535,362,920 1.33 8,098 877 39,315 2.23
2010 7,548,026 534,257,800 1.41 7,814 966 39,315 2.46
2009 7,978,160 532,747,690 1.50 7,876 1,013 39,315 2.58
2008 8,394,491 447,926,300 1.87 7,905 1,062 41,019 2.59
2007 8,753,625 429,817,400 2.04 7,922 1,105 37,324 2.96
Note: Assessed value of property can be found in Table 5.
Note: Population and Personal Income can be found in Table 12.
1 Includes bond premiums
TOWN OF VINTON, VIRGINIA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Business Type Activities Governmental Activities
75
TABLE 11
Less:Net
Fiscal Gross Operating Available
Year Revenue (1)Revenue Principal (2)Interest Coverage
2016 3,718,514$ 2,241,937$ 1,476,577$ 487,049$ 311,245$ 1.85
2015 3,447,765 2,115,736 1,332,029 462,548 257,957 1.85
2014 3,263,413 2,261,529 1,001,884 504,718 256,920 1.32
2013 3,016,909 2,129,633 887,276 428,247 215,281 1.38
2012 3,041,715 2,187,683 854,032 413,586 232,992 1.32
2011 2,948,965 2,140,766 808,199 399,218 225,689 1.29
2010 2,741,776 2,361,718 380,058 385,135 195,038 0.66
2009 2,873,100 2,312,595 560,505 281,331 213,792 1.13
2008 2,621,349 2,321,983 299,366 272,788 222,032 0.60
2007 2,536,072 2,257,517 278,555 150,660 172,534 0.86
(1) Excluding depreciation, interest, and amortization
(2) Excluding refunded principal payments
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.
76
TABLE 12
Fiscal Total Per Capita Public
Year Personal Personal School Unemployment
Ended Population (1)Income (2) Income (2) Enrollment (3)Rate (4)
2016 8,231 5,435,865$ 45,577$ 14,135 3.70%
2015 8,151 5,159,100 43,418 14,384 4.50
2014 8,151 4,984,547 42,288 14,333 5.50
2013 8,092 4,789,030 40,688 14,369 5.90
2012 8,130 4,672,000 39,866 14,454 5.70
2011 8,098 4,561,791 39,315 14,259 5.70
2010 7,814 4,561,791 39,315 14,474 6.30
2009 7,876 4,561,791 39,315 14,650 4.60
2008 7,905 4,750,916 41,019 14,802 2.80
2007 7,922 4,303,761 37,324 14,777 2.60
Sources:
(1) From U.S. Census Bureau link at www.rvarc.org
(4) Virginia Employment Commission www.vawc.virginia.gov/analyzer
TOWN OF VINTON, VIRGINIA
DEMOGRAPHIC STATISTICS
Last Ten Fiscal Years
(3) Virginia Department of Education - Membership Reporting www.doe.virginia.gov/statistics
(2) Personal Income and Per Capita Personal Income from the U.S. Department of Commerce
Bureau of Economic Analysis. Latest information available is for 2016 at
www.bea.gov/regional/docs/income.
77
TABLE 13
Percentage Percentage
of Total Town of Total Town
Employer Employees Rank Employment Employees Rank Employment
Precision Fabrics Group, Inc.171 1 2.10%334 2 4.22%
Berkshire 171 2 2.10 209 3 2.64
Kroger 129 3 1.58 142 4 1.79
Roanoke County Schools (Vinton)136 4 1.68 418 1 5.28
McDonalds 89 5 1.09 N/A N/A N/A
Town of Vinton 99 6 1.22 90 6 1.14
Aramark Uniform Services 72 7 0.91 114 5 1.44
Lancerlot 47 8 0.60 N/A N/A N/A
Woods Service Center 43 9 0.54 N/A N/A N/A
Carilion Clinic Family Medicine 36 10 0.45 N/A N/A N/A
993 12.27%1,307 16.51%
Source: Total TOV Employment – Roanoke Valley Regional Commission (Planning)
N/A - Not Available
Fiscal Year 2016 Fiscal Year 2007
TOWN OF VINTON, VIRGINIA
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
78
TABLE 14
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Function/Program
General government
Management services 4 4 4 4 4 4 4 4 3 4
Finance 5 6 6 6 6 5 5 5 5 5
Planning 3 3 3 3 3 3 3 3 3 3
Police
Officers 22 22 24 24 24 25 24 24 24 25
Civilians 2 2 2 2 2 2 10 10 10 7
Fire
Firefighters and officers 10 11 10 9 9 9 9 9 9 9
Other public works 29 31 32 32 32 34 33 33 32 34
Parks, recreation, and cultural 3 2 3 3 3 3 3 3 2 2
Total 78 81 84 83 83 85 91 91 88 89
Source: Town of Vinton Finance Department
TOWN OF VINTON, VIRGINIA
FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
79
TABLE 15
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Function/Program
General government
Fleet equipment 133 133 133 117 117 117 117 117 62 62
Pieces of equipment maintained 133 133 133 117 117 117 117 117 62 62
Public safety:
Police
Arrests 722 507 578 582 667 546 531 658 598 504
Parking violations 133 52 64 48 56 82 139 84 62 16
Traffic violations 1,187 1,143 1,603 1,408 1,734 1,933 2,431 3,088 3,034 3,087
EMS
Emergency responses 2,656 2,615 2,735 2,654 2,872 2,319 2,219 2,369 2,397 2,459
Fire
Emergency responses 774 278 623 306 677 514 476 764 1,038 673
Public works
Refuse collection
Refuse collected (tons per day)11.92 12.55 12.78 12.92 12.75 12.70 14.00 15.90 18.10 19.00
Recyclables collected (tons per day)0.54 0.65 0.70 0.68 2.00 2.00 1.60 1.60 1.70 1.30
Other public works
Street resurfacing (miles)2.03 - 1.30 2.17 1.80 1.80 1.90 3.50 11.10 -
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 Closed Closed Closed Closed Closed Closed 20,000 20,000 20,000
4th of July 5,000 5,000 5,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000
(Co-Sponsor Roanoke County)Closed Closed Closed Closed Closed Closed 5,000 5,000 5,000 5,000
(Co-Sponsor Chamber of Commerce)9,000 9,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000
Water
Number of customer accounts 5,093 5,074 5,085 5,071 5,051 5,044 5,040 5,022 4,985 4,984
Miles of distribution lines 61 61 61 61 61 61 61 61 60 60
Volume pumped (million gallons per day average)1.27 1.23 1.14 1.21 1.23 1.26 1.47 1.04 1.29 1.26
Sewer
Number of customer accounts 4,658 4,639 4,642 4,636 4,607 4,610 4,609 4,600 4,571 4,573
Miles of collection lines 60 60 60 60 60 60 60 60 59 57
Waste/Water treated (million gallons per day)1.40 1.19 0.92 0.96 0.99 1.09 1.27 1.04 1.24 1.20
N/A - Not available.
Refuse collected (tons per day) - based on 260 collection days per year.
Recyclables collected (tons per day) - based on 130 collection days per year.
Source:
TOWN OF VINTON, VIRGINIA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
80
TABLE 16
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Function/Program
Public safety
Law enforcement vehicles 25 26 25 25 26 27 27 29 27 19
Fire stations 1 1 1 1 1 1 1 1 1 1
Public works
Primary streets (lane miles)21.62 21.62 21.66 21.62 21.62 21.62 21.62 21.62 21.62 18.28
Secondary streets (lane miles)66.32 66.32 66.32 66.32 66.32 66.32 66.32 66.32 66.32 68.78
Streetlights 503 502 500 500 500 500 500 500 500 500
Parks, recreation, and cultural
Community centers
(No. of Events/Attendance)252/4166 240/3990 223/3,965 253/3775 231/4033 174/3396 1/18 240/4236 180/3600 180/3600
Charles R. Hill Center (Rentals)283 291 289 437 299 218 295 351 205 257
Skate Park Closed Closed Closed Closed Closed Closed Closed Closed 2,400 2,400
Vinton War Memorial 273 235 282 301 200 202 271 277 151 -
Parks/athletic fields
(TOV owned-Leased to Rke County)N/A N/A N/A N/A N/A N/A N/A 37/3000 N/A N/A
Jaycee Field (Seasonal ballgames)Closed Closed Closed Closed Closed Closed Closed Closed Closed Closed
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)N/A N/A N/A N/A N/A 1,120 1,120 1,120 1,120 -
War Memorial Playground 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 5,000
Vinton Municipal Pool 7,977 7,977 8,458 10,562 10,176 12,246 11,270 11,000 11,000 7,100
Water and sewer
Water mains (miles)61 61 61 61 61 61 61 61 60 60
Sanitary sewers (miles)60 60 60 60 60 60 60 60 59 59
Stormwater
Storm sewers (miles)12 12 12 12 12 12 12 12 12 12
Signalized Street Intersections
Traffic Signals (each)11 11 11 11 11 11 11 11 11 11
Source:
TOWN OF VINTON, VIRGINIA
CAPITAL ASSET AND INFRASTRUCTURE STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
81
THIS PAGE INTENTIONALLY BLANK
82
COMPLIANCE SECTION
83
Your Success is Our Focus
319 McClanahan Street, S.W. • Roanoke, Virginia 24014-7705 • 540-345-0936 • Fax: 540-342-6181 • www.BEcpas.com
INDEPENDENT AUDITOR’S 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
To the Honorable Members of the Town Council
Town of Vinton,Virginia
We have audited, 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 Specifications for Audits of Counties,
Cities, and Towns issued by the Auditor of Public Accounts of the Commonwealth of Virginia, the
financial statements of the governmental activities, the business-type activities, and each major fund of
the Town of Vinton, Virginia (the “Town”), as of and for the year ended June 30, 2016, and the related
notes to the financial statements, which collectively comprise the Town’s basic financial statements and
have issued our report thereon dated November 18, 2016.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Town’s
internal control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of Town’s internal control.
Accordingly, we do not express an opinion on the effectiveness of Town’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect 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.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.
Our consideration of internal control was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control that might
be material weaknesses or significant deficiencies and therefore, material weaknesses or significant
deficiencies may exist that were not identified. However, as described in the accompanying schedule
of findings and responses, we identified a certain deficiency in internal control that we consider to
be a material weakness, which is labelled as item 2007-001.
84
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 grant agreements, 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 an instance of noncompliance or other matters that is
required to be reported under Government Auditing Standards and which is described in the
accompanying schedule of findings and responses as item 2016-001.
Town of Vinton’s Responses to Findings
The Town of Vinton’s responses to the findings identified in our audit are described in the
accompanying schedule of findings and responses. The Town’s responses were not subjected to the
auditing procedures applied in the audit of the financial statements and, accordingly, we express no
opinion on them.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s
internal control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
CERTIFIED PUBLIC ACCOUNTANTS
Roanoke, Virginia
November 18, 2016
85
TOWN OF VINTON, VIRGINIA
SUMMARY OF COMPLIANCE MATTERS
June 30, 2016
As more fully described in the Independent Auditor’s 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
86
TOWN OF VINTON, VIRGINIA
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2016
A.FINDINGS –FINANCIAL STATEMENT AUDIT
2007-1: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 information technology.
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,to the extent practical,
to minimize instances where the same person has complete control of a transaction or conflicting
duties.
B.FINDINGS –COMMONWEALTH OF VIRGINIA
2016-1:Budget Appropriations
Condition:
After audit adjustments, expenditures exceeded budgeted appropriations in the debt service
category.
Recommendation:
Steps should be taken to ensure that excess expenditures over budgeted appropriations are approved
by Town Council and the budget amended accordingly.
Management’s Response:
This was a result of the timing of the current year bond refunding near year end, and some of the
final numbers were not known when Town Council met. Town Council met in June 2016 and
additional budget appropriations were approved for known expenditures at that time.