HomeMy WebLinkAboutFY 2016 - 2017 - Annual Comprehensive Financial Reports (ACFRs)Comprehensive Annual Financial Report
For Fiscal Year Ending June 30, 2017
TOWN OF VINTON, VIRGINIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2017
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
Certificate of Distinguished Budget Presentation Award .............................................................................ix
Directory of Principal Officials........................................................................................................................x
Organizational Chart .......................................................................................................................................xi
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 Funds ..................................................................19
Exhibit 9 Statement of Revenues, Expenses, and Changes in Fund
Net Position –Proprietary Funds ....................................................................................20
Exhibit 10 Statement of Cash Flows –Proprietary Funds ...................................................................21
Notes to Financial Statements ....................................................................................................................22
Required Supplementary Information
Exhibit 11 Schedule of Changes in the Net Pension Liability and Related Ratios .............................62
Exhibit 12 Schedule of Pension Contributions.....................................................................................63
Exhibit 13 Schedule of Funding Progress –OPEB ..............................................................................64
Notes to Required Supplementary Information .........................................................................................65
TOWN OF VINTON, VIRGINIA
TABLE OF CONTENTS
(Continued)
Page
STATISTICAL SECTION
Table 1 Net Position by Component .......................................................................................................67
Table 2 Change in Net Position by Component .....................................................................................68
Table 3 Fund Balances –Governmental Fund .......................................................................................70
Table 4 Changes in Fund Balances –Governmental Fund ....................................................................71
Table 5 Assessed Value and Actual Value of Taxable Property ...........................................................72
Table 6 Principal Water and Sewer Customers ......................................................................................73
Table 7 Property Tax Levies and Collections ........................................................................................74
Table 8 Water and Sewer Rates ..............................................................................................................75
Table 9 Legal Debt Margin Information ................................................................................................76
Table 10 Ratios of Outstanding Debt by Type .........................................................................................77
Table 11 Pledged Revenue Coverage .......................................................................................................78
Table 12 Demographic Statistics ..............................................................................................................79
Table 13 Principal Employers ...................................................................................................................80
Table 14 Full-Time Equivalent Town Government Employees by Function/Program ..........................81
Table 15 Operating Indicators by Function/Program ...............................................................................82
Table 16 Capital Asset and Infrastructure Statistics by Function/Program .............................................83
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.....................................................................................................85
Summary of Compliance Matters ..................................................................................................................87
Schedule of Finding and Response ................................................................................................................88
Schedule of Prior Audit Finding ....................................................................................................................89
INTRODUCTORY SECTION
i
TOWN OF VINTON
311 S. POLLARD STREET
VINTON, VIRGINIA 24179
PHONE (540) 983-0608
FAX (540) 985-3105
November 15, 2017
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, 2017 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.
Responsibility for both the accuracy of the data and completeness and fairness of the presentation,
including all disclosures, rests with the Town’s management. 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 2016 Water Quality Report,the Town had no water
quality violations. The Virginia Department of Environmental Quality reported statewide recycling rates
for calendar year 2016. The Town of Vinton’s rate was 53.7% and was ranked sixth out of all of the
waste planning units in the Commonwealth.
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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. The oldest running business to date is
Southern States, which began operations in the Town limits during the year 1935. In 2015, the Town
purchased the former Gish’s Mill property that dates back to the late 1800’s, due to it being one of the
founding properties of the Vinton Community and the primary feature of our Town Seal. The Town
recently began the process of developing a Feasibility Study for the site to encourage its restoration and
redevelopment as a commercial property.
Vinton is proud of its small size in relation to the surrounding dense urban areas. It has a reputation as a
friendly community with much scenic charm and beauty, and is often the urban center of choice for
residents in east Roanoke County and the surrounding population centers of Bedford, Botetourt, and
Franklin counties.
The location of the Town provides quick and easy access from neighboring jurisdictions via US
Interstates 81 and 581, 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 over a dozen
smaller community events and concerts throughout the year. The Town also continues to partner with
the Vinton Area Chamber of Commerce for economic development and business retention, recruitment,
and promotion.
The Town also participates in the Greenway Commission, the purpose of which is to identify and
develop possible greenway connections throughout the Roanoke Valley. Through this effort, the Town
has recently completed the first phase of the Glade Creek Greenway that will assist to connect the
downtown business district with the Roanoke City’s Tinker Creek Greenway and the entire valley-wide
greenway system. This will allow for an individual to travel from Vinton to Salem via the bike and
pedestrian trail network. In 2016, Botetourt County petitioned to join the Greenway Commission and
was accepted by all participating members, which expands the economic development opportunities in
the valley through more connections in the region. Vinton is also partnering with the
Roanoke-Alleghany Regional Commission to promote a Blueway Trail on the Roanoke River.
Vinton has maintained stable property tax rates over the years, while continuing to provide high quality
municipal services and responsive government. The combined real estate and personal property tax
collections for fiscal year 2017 generate approximately $678,000 or 7.8% of total revenue in the general
fund.
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Local Economic Condition and Outlook (Continued)
The nearby educational institutions allow opportunities for Town citizens to receive higher education
and technical training. Expansion of industry, tourism facilities, and conference centers in the region
continue to enhance the reputation of the Town as a highly desirable residential area.
Long-term Financial Planning
Barry W. Thompson was appointed as Town Manager in June 2016. Mr. Thompson has served the
Town of Vinton prior 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 Block Grant Award in 2012 to assist with revitalization
of our downtown. The grant was funded through the Federal Government and administered through the
Virginia Department of Housing and Community Development and was completed on
December 31, 2016. 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 focused 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 was managed by the Assistant Town Manager, with guidance provided
by a Project Management Team comprised of Town Officials and Community Stakeholders.
The grant assisted in several Town projects, such as the Farmers Market Stage Renovations, downtown
park benches and trash receptacles, business storefront façade improvements, a $100,000 revolving loan
fund for building renovations and job creation,the “In-Vinton”brand, the downtown shopping guide, as
well as the completion of sidewalk improvements and the replacement of the street lamps on Pollard and
Lee Streets. The Town had a “Downtown Grand Re-Opening” in April 2017 at the annual Dogwood
Festival.
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 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.
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Major Initiatives (Continued)
There are two additional prepared sites at the Vinton Business Center which are being marketed. A
picnic shelter has been completed while the Greenway Trail is planned to eventually connect with the
existing Greenway System running through the Town of Vinton and east Roanoke County. In 2016, the
County and the Town partnered to contract with Poe & Cronk Realtors to market the remaining
available sites.
In June 2017, the Town finalized the project with the Western Virginia Water Authority for Peak Flow
Enhancement.
The Town continues to update with the County of Roanoke, the Real Estate Tax and Appraisal and
Personal Property Tax Software and billing has been successfully implemented. Roanoke County/Town
of Vinton also has implemented and continues to update an Appraisal System. DMV imports have been
automated and set-off debts have been automated and have improved delinquent collections. In January
2012, the Town implemented an agreement with 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 worked successfully with Roanoke County in 2016 to market two surplus schools
that are located within the Town’s boundaries. Both schools were approved for re-zoning as mixed-use
developments. The former Roland E. Cook was renovated into loft apartments and opened in July 2017,
and a similar apartment renovation is underway for the former William Byrd High School building. The
prior Roanoke County Library has also been purchased, and construction is underway to convert the
building into a Macado’s Restaurant.
In spring of 2017, the Town acquired an Option to Purchase the former Vinton Motors Property and is
actively working with the owner to position the property for redevelopment. This property previously
operated as an auto dealership in the Town from 1931 –2008, and was considered at the time of its
closing to be the oldest dealership in the Roanoke Valley and the second oldest in the State. This site
provides a tremendous opportunity as a mixed-use development due to its road frontage, high vehicle
traffic counts,and its proximity to the Downtown Vinton Business District, Route 460,and the Blue
Ridge Parkway.
Roanoke County Library Vinton Branch -Roanoke County has built its first urban library in
Downtown Vinton. The prior library was outdated and 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. This also is the
only County Library on a mass transit route.
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.
v
Prospects for the Future (Continued)
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 use in 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, ISO standards,and other code compliance issues. The grant
offers the participant up to $5,000 in assistance and is a 50% reimbursement of expenses.
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.
vi
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,
issued by the Auditor of Public Accounts of the Commonwealth of Virginia. The auditor’s report,
which includes their opinion on the financial statements of the Town, is contained in this report on page
one of the Financial Section. Other auditor’s reports are included in the Compliance Section.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This
letter of transmittal is designed to 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, 2016. The Certificate of Achievement is a
national award that recognizes conformance with the highest standards for preparation of government
financial reports.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily
readable and efficiently organized Comprehensive Annual Financial Report, the contents of which must
conform to program standards. The CAFR must satisfy both generally accepted accounting principles
and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The Town of Vinton has received a
Certificate of Achievement for the past 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 submitted the fiscal year 2016-2017 budget
document and was awarded GFOA Distinguished Budget Presentation Award for the first time.
viii
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x
TOWN OF VINTON, VIRGINIA
DIRECTORY OF PRINCIPAL OFFICIALS
June 30, 2017
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.................................................Finance Director/Treasurer
Susan Johnson ..............................................................................Town Clerk
Thomas Foster .........................................................................Chief of Police
INDEPENDENT AUDITORS
Brown, Edwards & Company, L.L.P.
xi
THIS PAGE INTENTIONALLY BLANK
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, 2017, 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, 2017, 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 2016 financial statements, and in our report dated
November 18, 2016, we expressed unmodified opinions on those financial statements. The 2016
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, 2016, 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 2017
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 15, 2017
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, 2017. 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 $13,908,431
(net position). Of this amount, $2,274,979 (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 $755,380. This increase is largely due to total
expenses of $11,556,876 being less than total revenues of $12,312,256. However, a
decrease of $2,670 (0.04%)in current and other assets occurred. Capital assets decreased
by $508,323 with the final result being a decrease of 1.8%in total assets.
On the other hand, long-term liabilities decreased by $454,986 (3.42%) which has a small
variance from the prior year.Other liabilities decreased by $228,230 (19.27%)which was a
decrease in accounts payable and accrued liabilities and an increase in accrued payroll and
related liabilities due to end of year timing.
Deferred Outflows increased $311,612 (39.96%) and Deferred Inflows decreased $271,545
(25.69%) due to the change in various pension related elements.
The final result of all these effects is a 5.7%increase in net position.
As of the close of the current fiscal year, the Town’s governmental fund reported an ending
fund balance of $2,799,962, a decrease of $79,259 in comparison with the prior year. This is
mostly due to a decrease of $275,937 (54.5%)in accounts payable. In addition, deferred
inflows decreased by $69,091 (6.2%)and due from other governmental units increased
$366,615 (89.5%).
Approximately 92.08%of the ending governmental fund balance, $2,578,193 is available for
spending at the Town’s discretion (unassigned fund balance), and represents 29.98%of the
governmental fund’s expenditures.
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.
4
Overview of the Financial Statements (Continued)
Government-wide Financial Statements (Continued)
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.
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.
5
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 $13,908,431 at the close of the most recent fiscal
year.
By far the largest portion of the Town’s net position (82.69%)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 $4,306,230 $4,$2,399,556 $1,989,351 $6,705,786 $6,708,456
Capital assets 9,507,841 9,555,472 11,191,848 11,652,540 20,699,689 21,208,012
Total assets 13,814,071 14,274,577 13,591,404 13,641,891 27,405,475 27,916,468
Deferred outflows
of resources 799,612 547,349 291,766 232,417 1,091,378 779,766
Current and other liabilities 483,828 747,092 472,306 437,272 956,134 1,184,364
Long-term liabilities 5,830,980 5,858,376 7,015,941 7,443,531 12,846,921 13,301,907
Total liabilities 6,314,808 6,605,468 7,488,247 7,880,803 13,803,055 14,486,271
Deferred inflows
of resources 757,328 979,560 28,039 77,352 785,367 1,056,912
Net investment in capital
assets 6,638,792 6,225,603 4,862,273 4,880,340 11,501,065 11,105,943
Restricted 132,387 209,649 - - 132,387 209,649
Unrestricted 770,368 801,646 1,504,611 1,035,813 2,274,979 1,837,459
Total net position $7,541,547 $7,236,898 $6,366,884 $5,916,153 $13,908,431 $13,153,051
Unrestricted net position of $2,274,979 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.
Governmental activities –Governmental activities increased the Town’s net position by $304,649.
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.
6
Government-wide Financial Analysis (Continued)
The Town’s Changes in Net Position
Governmental Business-Type
Activities Activities Total
Revenues
Program revenues
Charges for services $769,199 $733,005 $3,398,582 $3,437,535 $4,167,781 $4,170,540
Operating grants and
contributions 1,666,789 1,389,380 - - 1,666,789 1,389,380
Capital grants and
contributions 408,362 317,643 - - 408,362 317,643
General revenues
Property taxes 697,622 640,391 - - 697,622 640,391
Other taxes 4,232,122 4,157,323 - - 4,232,122 4,157,323
Intergovernmental
unrestricted 773,690 744,247 - - 773,690 744,247
Investment earnings 19,406 17,709 2,266 1,318 21,672 19,027
Other 66,305 106,706 338,118 279,661 404,423 386,367
Transfers (219,978)- 219,978 - - -
Total revenues 8,413,517 8,106,404 3,958,944 3,718,514 12,372,461 11,824,918
Expenses
General government 992,699 1,001,560 - - 992,699 1,001,560
Public safety 3,926,763 3,340,624 - - 3,926,763 3,340,624
Public works 2,011,469 2,026,305 - - 2,011,469 2,026,305
Parks, recreation, and
cultural 591,208 591,342 - - 591,208 591,342
Community development 479,973 447,908 - - 479,973 447,908
Interest on long-term
debt 106,756 126,164 - - 106,756 126,164
Water and sewer - - 3,088,256 3,103,779 3,088,256 3,103,779
Stormwater management - - 419,957 - 419,957 -
Total expenses 8,108,868 7,533,903 3,508,213 3,103,779 11,617,081 10,637,682
Change in net position 304,649 572,501 450,731 614,735 755,380 1,187,236
–July 1,7,236,898 6,664,397 5,916,153 5,301,418 13,153,051 11,965,815
–June 30 $7,541,547 $7,236,898 $6,366,884 $5,916,153 $13,908,431 $13,153,051
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 $450,731.
The last increase by the Town was effective July 1, 2015 with a rate of 8.9%. There was no increase in
the last two fiscal years.
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
General
Government
Public safety Public works Parks, recreation,
and Cultural
Community
development
Interest on long-
term debt
Expenses Program Revenues
Charges for services
9%
Operating grants
and contributions
19%
Capital grants and
contributions
5%
Property taxes
8%
Other taxes
49%
Intergovernmental
revenue
unrestricted
9%
Investment earnings
0%
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 $2,799,962, a decrease of $79,259 in comparison with the prior year. This is largely due to a
decrease in deferred inflows of $69,091 (6.22%), an increase in due from other governmental units of
$366,615 (89.51%),and a decrease in total liabilities of $264,525 (3.62%) particularly a decrease in
accounts payable and accrued liabilities of $275,937 (54.47%) and an increase in accrued payroll and
related liabilities of $7,956 (3.90%). Accounts payable and accrued liabilities, accrued payroll and
related liabilities, and unearned revenue decreased by $264,525 (3.62%); this decrease was due to
payment of a large accounts payable that had carried over from the prior year.
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
$1,590,413. Unrestricted net position of the Stormwater Management Department at the end of the year
was a deficit of $85,802. 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
$575,595 primarily due to carryover grants included in Categorical Aid amounting to $444,225. Another
component of the variance from budget includes $75,207 in charges for services.There was a decrease
in revenue in Fee for Transport, and less revenue than anticipated from the War Memorial and Senior
Center Rentals.
Differences between the original budget and the final amended budget for expenditures were
$815,389 with the majority being primarily due to carryover expenses for grant items in Community
Development with the Greenway Phase II, and an overestimation on carryover expenses relating to the
CDBG grant.
Multiple variances between the final budget and the actual final results for the year can be briefly
summarized as follows:
There was only a minor variance in real property taxes, and 96.75% of the budgeted amount was
collected. The real property tax rate did not change from $0.07 per $100 of assessed value.
There was a variance of business license revenue of $39,553 (6.91%), this was due to a higher
collection of taxes during the period due and a decrease in the late penalties charged.
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.The variance from budget was $29,875 (14.36%).
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 where the budget
was understated.
The substantial favorable variance on Community Development is mainly due to $647,106 the
carryover grant funding for the Greenway Phase II and an overestimation of carryover budget for the
CDBG Downtown Revitalization that was not utilized.
The favorable variance in the Public Works Department is mainly due to paving budget that was
not utilized by the General Fund due to utility cuts that were made during the year that required the Utility
Fund to cover the expense of re-paving those areas.
The Stormwater Management Fund was created this year to allow for better tracking of expenses.
Prior to creation of this fund, the costs were being paid for by the General Fund and Utility Fund where
applicable. Costs that were previously budgeted for in the General Fund and Utility Fund were treated as a
transfer to the fund to cover expenditures.
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, 2017, amounts to $20,699,689 (net of accumulated depreciation). This investment
in capital assets includes land, buildings and systems, improvements, infrastructure, machinery, and
equipment. The total decrease in the Town’s investment in capital assets for the current fiscal year was
2.40%(a 0.50% decrease for governmental activities and a 3.95% 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 $1,832,033 $80,752 $80,752 $1,912,785 $1,912,785
Buildings and systems 5,019,401 5,303,005 8,183,663 7,457,516 13,203,064 12,760,521
Infrastructure 1,880,757 1,413,942 - - 1,880,757 1,413,942
Improvements other than
buildings - - 2,429,311 2,560,925 2,429,311 2,560,925
Machinery and equipment 435,380 555,879 485,599 570,176 920,979 1,126,055
Construction in progress 340,270 450,613 12,523 983,171 352,793 1,433,784
Total $9,507,841 $9,555,472 $11,191,848 $11,652,540 $20,699,689 $21,208,012
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
$9,693,598.Of this amount, $7,627,761 comprises debt backed by the full faith and credit of the
government, $2,011,000 is related to revenue bond obligations, and $54,837 is related to capital leases.
The Town’s Outstanding Debt
General Obligation and Capital Leases
General obligation bonds $2,919,146 $3,217,540 $4,175,676 $4,539,723 $7,094,822 $7,757,263
Revenue bonds - - 2,011,000 2,176,000 2,011,000 2,176,000
Other obligations 266,576 327,424 266,363 280,605 532,939 608,029
Capital leases 54,837 230,969 - - 54,837 230,969
$3,240,559 $3,775,933 $6,453,039 $6,996,328 $9,693,598 $10,772,261
The Town’s total debt decreased by $1,078,663, or 10.01%, 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, 2017 is 3.70%, which is the same as last year’s rate of 3.70%.
This is comparable to the state’s average unemployment rate as of June 30, 2017 of 3.70%
and to the national average rate of 4.4%.
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 decreased by
$29,331. The general fund remains strong with an ending unassigned fund balance of $2,578,193. It is
intended that this available fund balance will be used for future needs of the Town.
Requests for Information
This financial report is designed to provide a general overview of the Town’s finances for all
those with an interest in the government’s finances. Questions concerning any of the information provided
in this report or requests for additional financial information should be addressed to the Finance
Department/Treasurer’s Office, Town of Vinton, 311 S. Pollard Street, Vinton, Virginia 24179.
11
BASIC
FINANCIAL STATEMENTS
EXHIBIT 1
Governmental
Business-
Type
(For Comparison
Only)
Activities Activities 2017 2016
ASSETS
Cash and cash equivalents (Note 2)2,952,161$ 1,665,160$ 4,617,321$ 4,864,638$
Receivables, net (Note 3)398,338 624,813 1,023,151 993,476
Due from other governmental units (Note 4)776,207 - 776,207 409,592
Inventories 3,351 48,043 51,394 77,027
Prepaids 66,152 14,389 80,541 110,004
Loans receivable 84,134 - 84,134 95,524
25,887 47,151 73,038 158,195
Capital assets: (Note 5)
Nondepreciable 2,172,303 93,275 2,265,578 3,346,569
Depreciable, net 7,335,538 11,098,573 18,434,111 17,861,443
Total assets 13,814,071 13,591,404 27,405,475 27,916,468
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 126,571 123,191 249,762 278,438
38,066 9,534 47,600 93,371
314,663 78,813 393,476 -
320,312 80,228 400,540 407,957
Total deferred outflows of resources 799,612 291,766 1,091,378 779,766
LIABILITIES
Accounts payable and accrued liabilities 230,675 325,780 556,455 828,644
Accrued payroll and related liabilities 211,801 47,707 259,508 232,322
Accrued interest payable 18,455 55,819 74,274 65,557
Customer security deposits - 43,000 43,000 38,400
Unearned revenue 22,897 - 22,897 19,441
Long-term liabilities:
Net pension liability (Note 7)1,997,309 500,264 2,497,573 1,922,331
Due within one year (Note 6)551,600 559,087 1,110,687 1,122,436
Due in more than one year (Note 6)3,282,071 5,956,590 9,238,661 10,257,140
Total liabilities 6,314,808 7,488,247 13,803,055 14,486,271
DEFERRED INFLOWS OF RESOURCES
Property taxes 645,383 - 645,383 657,574
Net difference between projected and actual
investment earnings on pension plan
investments (Note 7)- - - 399,338
111,945 28,039 139,984 -
Total deferred inflows of resources 757,328 28,039 785,367 1,056,912
NET POSITION
6,638,792 4,862,273 11,501,065 11,105,943
Public safety 132,387 - 132,387 209,649
Unrestricted 770,368 1,504,611 2,274,979 1,837,459
Differences between expected and actual
experience (Note 7)
Net difference between projected and actual
earnings on plan investments (Note 7)
Restricted for:
Net investment in capital assets
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
June 30, 2017
Cash and cash equivalents, restricted (Note 2)
Pension contributions subsequent to
measurement date (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
Capital Grants
Governmental
Business-Comparison
Governmental activities
992,699$ 121,654$ -$ -$ (871,045)$ (871,045)$ (877,380)$
Public safety 3,926,763 118,454 488,204 3,500 (3,316,605) (3,316,605) (3,021,204)
Public works 2,011,469 110,145 1,178,585 80,000 (642,739) (642,739) (777,511)
Parks, recreation, and cultural 591,208 413,532 - - (177,676) (177,676) (156,991)
Community development 479,973 5,414 - 324,862 (149,697) (149,697) (134,625)
Interest on long-term debt 106,756 - - - (106,756) (106,756) (126,164)
Total governmental activities 8,108,868 769,199 1,666,789 408,362 (5,264,518) (5,264,518) (5,093,875)
Business-type activities
Water and sewer 3,088,256 3,398,582 - - 310,326$ 310,326 333,756
Stormwater management 419,957 - - - (419,957) (419,957) -
Total business-type activities 3,508,213 3,398,582 - - (109,631) (109,631) 333,756
Total 11,617,081$4,167,781$ 1,666,789$ 408,362$ (5,264,518) (109,631) (5,374,149) (4,760,119)
General revenues
Property taxes (Note 10)697,622 - 697,622 640,391
Sales tax 1,436,325 - 1,436,325 1,348,456
Meals tax 953,721 - 953,721 955,488
Utilities tax 755,985 - 755,985 767,736
Business license tax 500,713 - 500,713 508,747
Cigarette tax 178,125 - 178,125 178,127
Other local taxes 407,253 - 407,253 398,769
Unrestricted intergovernmental revenue 773,690 - 773,690 744,247
Unrestricted investment earnings 19,406 2,172 21,578 18,698
Restricted investment earnings - 94 94 329
Other 66,305 338,118 404,423 386,367
Transfers ( Note 15)(219,978) 219,978 - -
Total general revenues 5,569,167 560,362 6,129,529 5,947,355
Change in net position 304,649 450,731 755,380 1,187,236
NET POSITION AT JULY 1 7,236,898 5,916,153 13,153,051 11,965,815
NET POSITION AT JUNE 30 7,541,547$ 6,366,884$ 13,908,431$ 13,153,051$
General government administration
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF ACTIVITIES
Year Ended June 30, 2017
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
2017 2016
ASSETS
Cash and cash equivalents 2,952,161$ 3,762,852$
Receivables, net 398,338 365,784
Due from other governmental units 776,207 409,592
Inventories 3,351 5,772
Prepaids 66,152 56,276
Loans receivable 84,134 95,524
Cash and cash equivalents, restricted 25,887 23,305
Total assets 4,306,230$ 4,719,105$
LIABILITIES
Accounts payable and accrued liabilities 230,675$ 506,612$
Accrued payroll and related liabilities 211,801 203,845
22,897 19,441
Total liabilities 465,373 729,898
DEFERRED INFLOWS OF RESOURCES
Deferred revenue 1,040,895 1,109,986
FUND BALANCES
Nonspendable 89,382 62,048
Restricted 132,387 209,649
Unassigned 2,578,193 2,607,524
Total fund balances 2,799,962 2,879,221
Total liabilities, deferred inflows of resources,
and fund balances 4,306,230$ 4,719,105$
General Fund
TOWN OF VINTON, VIRGINIA
BALANCE SHEET
GOVERNMENTAL FUND
June 30, 2017
Unearned revenue
The Notes to Financial Statements are
an integral part of this statement.
14
EXHIBIT 4
(For
Comparison
Only)
–2,799,962$ 2,879,221$
are different because:
Capital assets used in governmental activities are not financial resources,
and, therefore, are not reported in the funds.
Governmental capital assets 19,318,643$
Less: accumulated depreciation (9,810,802)
9,507,841 9,555,472
Bond premiums are reported as revenues in the governmental funds,
Bond premiums total $(65,279) and accumulated amortization
is $43,642.(21,637) (24,489)
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are deferred in the funds.395,512 452,412
Financial statement elements related to pensions are applicable to future
periods and, therefore, are not reported in the funds.
Deferred outflows of resources for differences between expected and
actual experience, net difference between projected and actual
673,041
(111,945)
(1,997,309)
(1,436,213) (1,467,739)
Long-term liabilities are not due and payable in the current period and,
therefore, are not reported in the funds.
General obligation bonds, including unamortized deferred amounts (2,792,575)
(266,576)
(54,837)
Accrued interest payable (18,455)
Compensated absences (399,671)
Other postemployment benefits (171,804)
(3,703,918) (4,157,979)
Total Net Position – Governmental Activities
TOWN OF VINTON, VIRGINIA
RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET
TO THE STATEMENT OF NET POSITION
June 30, 2017
Amounts reported for governmental activities in the statement of net position
earnings on plan investments, and 2017 employer contributions
Deferred inflows of resources for the differences between
expected and actual experience
Net pension liability
Capital lease obligations
Obligations payable – Roanoke County and RCACP
but are amortized over the life of the debt obligation in the
statement of net position:
General Fund
The Notes to Financial Statements are
an integral part of this statement.
15
EXHIBIT 5
Comparison
Only)
2017 2016
REVENUES
General property taxes 677,609$ 637,659$
Other local taxes 4,227,337 4,207,695
Permits, privilege fees, and regulatory licenses 8,712 9,788
Fines and forfeitures 75,085 51,631
Revenues from use of money and property 136,695 141,889
Charges for services 418,042 452,903
Other 150,967 138,589
Gain sharing 552,764 536,023
Recovered costs 36,498 237,421
Non-categorical aid 416,105 402,244
Categorical aid 1,960,410 1,436,509
Total revenues 8,660,224 8,252,351
EXPENDITURES
Current:
General government administration 650,824 710,412
Public safety 3,649,236 3,304,624
Public works 1,749,305 1,942,260
Parks, recreation, and cultural 570,065 594,550
Community development 889,397 687,006
Capital projects 463,945 437,389
Debt service:
Principal retirement 535,374 404,038
Interest and fiscal charges 91,789 115,486
Bond issuance costs - 15,920
Total expenditures 8,599,935 8,211,685
Excess of revenues over expenditures 60,289 40,666
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 80,430 29,537
Transfers out (219,978) -
Total other financing sources (uses)(139,548) 182,056
Net change in fund balance (79,259) 222,722
FUND BALANCE AT JULY 1 2,879,221 2,656,499
FUND BALANCE AT JUNE 30 2,799,962$ 2,879,221$
General Fund
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUND
Year Ended June 30, 2017
The Notes to Financial Statements are
an integral part of this statement.
16
EXHIBIT 6
Comparison
Only)
2017 2016
Net change in fund balance governmental fund (79,259)$ 222,722$
(1,261) 15,951
(47,631) 112,524
(56,900) (175,484)
31,526 158,055
521,668 240,810
(63,494) (2,077)
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, 2017
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 $320,312 exceed pension
expense $288,786 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 increase in compensated
absenses of $(22,172)and an increase in other postemployment benefits of
$(41,322).
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 $680,489 exceeded depreciation $(617,656)and the value of
capital assets disposed $(110,464) in the current period.
Amounts reported for governmental activities in the statement of activities are
different because:
The Notes to Financial Statements are
an integral part of this statement.
17
EXHIBIT 7
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
General property taxes 697,167$ 697,167$ 677,609$ (19,558)$
Other local taxes 4,274,328 4,274,328 4,227,337 (46,991)
Permits, privilege fees, and
regulatory licenses 11,000 11,000 8,712 (2,288)
Fines and forfeitures 78,700 78,700 75,085 (3,615)
Revenues from use of money
and property 139,310 139,310 136,695 (2,615)
Charges for services 487,500 493,249 418,042 (75,207)
Other 121,750 122,250 150,967 28,717
Gain sharing 550,000 550,000 552,764 2,764
Recovered costs 39,500 56,645 36,498 (20,147)
Non-categorical aid 408,535 408,535 416,105 7,570
Categorical aid 1,714,055 2,404,635 1,960,410 (444,225)
Total revenues 8,521,845 9,235,819 8,660,224 (575,595)
EXPENDITURES
Total expenditures 8,409,867 9,415,324 8,599,935 815,389
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 3,000 82,267 80,430 (1,837)
Transfers in - 93,252 - (93,252)
Transfers out (219,978) (219,978) (219,978) -
Net change in fund balance (105,000)$ (223,964)$ (79,259)$ 144,705$
Budgeted Amounts
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL –
GENERAL FUND
Year Ended June 30, 2017
The Notes to Financial Statements are
an integral part of this statement.
18
EXHIBIT 8
2016
Total Enterprise
Water and Sewer
Stormwater
Management Total Enterprise
(For Comparison
Only)
Current assets:
Cash and cash equivalents 1,644,206$ 20,954$ 1,665,160$ 1,101,786$
Receivables, net 624,813 - 624,813 627,692
Inventories 48,043 - 48,043 71,255
Prepaids 11,738 2,651 14,389 53,728
Cash and cash equivalents, restricted 47,151 - 47,151 134,890
Total current assets 2,375,951 23,605 2,399,556 1,989,351
Noncurrent assets:
Capital assets:
Nondepreciable 93,275 - 93,275 1,063,923
Depreciable, net 11,098,573 - 11,098,573 10,588,617
Total noncurrent assets 11,191,848 - 11,191,848 11,652,540
Total assets 13,567,799 23,605 13,591,404 13,641,891
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 123,191 - 123,191 135,309
Differences between expected and actual experience 7,259 2,275 9,534 18,087
Net difference between projected and actual earnings
on plan investments 60,005 18,808 78,813 -
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
21,348 6,691 28,039 77,352
Net investment in capital assets 4,862,273 - 4,862,273 4,880,340
Unrestricted 1,590,413 (85,802) 1,504,611 1,035,813
Total net position 6,452,686$ (85,802)$ 6,366,884$ 5,916,153$
Differences between expected and actual experience
Enterprise Funds
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2017
2017
The Notes to Financial Statements are
an integral part of this statement.
19
EXHIBIT 9
2016
Total Enterprise
Water and Sewer
Stormwater
Management Total Enterprise
(For Comparison
Only)
OPERATING REVENUES
Water service charges and fees 1,567,715$ -$ 1,567,715$ 1,576,460$
Sewer service charges and fees 1,774,446 - 1,774,446 1,804,869
Water/sewer penalties 56,421 - 56,421 56,206
Other revenue 338,118 - 338,118 279,661
Total operating revenues 3,736,700 - 3,736,700 3,717,196
OPERATING EXPENSES
Total operating expenses 2,904,099 419,957 3,324,056 2,929,321
Operating income (loss)832,601 (419,957) 412,644 787,875
NON-OPERATING REVENUE (EXPENSE)
Net non-operating expense (181,891) - (181,891) (173,140)
Income (loss) before transfers 650,710 (419,957) 230,753 614,735
TRANSFERS IN (OUT)
Change in net position 536,533 (85,802) 450,731 614,735
NET POSITION AT JULY 1
NET POSITION AT JUNE 30 6,452,686$ (85,802)$ 6,366,884$ 5,916,153$
TOWN OF VINTON, VIRGINIA
Business-Type Activities –
Enterprise Fund
The Notes to Financial Statements are
an integral part of this statement.
20
EXHIBIT 10
2016
Water and Sewer
Stormwater
Management Total Enterprise Total Enterprise
(For Comparison
Only)
OPERATING ACTIVITIES
Receipts from customers 3,406,061$ -$ 3,406,061$ 3,427,455$
Receipts from other sources 338,118 - 338,118 279,661
Payments to suppliers (1,259,286) (81,867) (1,341,153) (1,242,508)
Payments to employees (920,767) (231,334) (1,152,101) (938,117)
Net cash provided by (used in) operating activities 1,564,126 (313,201) 1,250,925 1,526,491
NONCAPITAL FINANCING ACTIVITIES
Transfers from (to) other funds (114,177) 334,155 219,978 -
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchases of capital assets (272,663) - (272,663) (314,155)
Principal paid on long-term liabilities (543,289) - (543,289) (2,082,049)
Proceeds from long-term liabilities - - - 1,786,000
Interest paid (181,582) - (181,582) (446,554)
Net cash used in capital and related financing activities (997,534) - (997,534) (1,056,758)
INVESTING ACTIVITIES
Interest received on investments 2,266 - 2,266 1,318
Net increase in cash and cash equivalents
CASH AND CASH EQUIVALENTS
Beginning at July 1 1,236,676 - 1,236,676 765,625
Ending at June 30 1,691,357$ 20,954$ 1,712,311$ 1,236,676$
RECONCILIATION TO EXHIBIT 8
Cash and cash equivalents 1,644,206$ 20,954$ 1,665,160$ 1,101,786$
Cash and cash equivalents, restricted 47,151 - 47,151 134,890
1,691,357$ 20,954$ 1,712,311$ 1,236,676$
Reconciliation of operating income to net cash
provided by operating activities
Operating income (loss)832,601$ (419,957)$ 412,644$ 787,875$
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation 721,776 - 721,776 687,384
Pension expense net of employer contributions (78,720) 85,846 7,126 2,668
Change in certain assets and liabilities:
(Increase) decrease in:
Receivables, net 2,879 - 2,879 (16,980)
Inventories 23,212 - 23,212 (846)
Prepaids 41,990 (2,651) 39,339 (41,884)
Increase (decrease) in:-
Accounts payable and accrued liabilities 23,824 4,792 28,616 99,833
Accrued payroll and related liabilities 7,771 11,459 19,230 5,098
Customer security deposits 4,600 - 4,600 6,900
Compensated absences (19,378) 6,290 (13,088) (6,842)
Other post employment benefits 3,571 1,020 4,591 3,285
Net cash provided by (used in) operating activities 1,564,126$ (313,201)$ 1,250,925$ 1,526,491$ -$
NONCASH CAPITAL AND RELATED FINANCING
Capital asset purchases included in accounts payable 28,229$ -$ 28,229$ 53,097$
Capitalized interest 13,289$ -$ 13,289$ 57,760$
TOWN OF VINTON, VIRGINIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Year Ended June 30, 2017
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, 2017
(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 $184,695 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
$50,317 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 $419,390 in the current year. Separate financial statements are
not available.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2017
(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, 2017
(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 funds.
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, 2017
(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 funds:
The enterprise funds account 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 funds consist of the activities relating to water and sewer
services and stormwater management.
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. The stormwater management fund has not begun to collect dedicated utility
fees. 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, 2017
(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 $1,005,457 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.Inventories are
accounted for under the consumption method, where inventories are recorded as expenditures
when consumed, rather than when purchased.
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, 2017
(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, donated works of art and similar items, and capital assets
received in a service concession arrangement at acquisition value.
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 four 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 experience for economic/demographic factors in the
measurement of the total pension liability. The fourth item is the net difference between
projected and actual earning on pension plan investments. These pension differences will be
recognized in pension expense over the closed five year period.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2017
(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
consists of the differences between expected and actual experience for economic/demographic
factors in the measurement of the total pension liability. 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 $13,289 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, 2017
(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, 2017
(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, 2017
(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, 2017
(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 $4,600 of unspent bond proceeds, $42,500 of utility
deposits, $23,199 of evidence found, and $2,739 of flex benefit spending that can only be used for
specific purposes.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2017
(Continued)33
Note 3.Receivables
Receivables consist of the following:
Governmental Business-type
Activities Activities Total
Note 4.Due from Other Governmental Units
Governmental
Activities
A summary of funds due from other governmental units was as follows:
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2017
(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 $1,832,033 $- $- $- $1,832,033
Construction in progress 450,613 490,824 (601,167)- 340,270
Total capital assets, not depreciated 2,282,646 490,824 (601,167)- 2,172,303
Capital assets, depreciated
Buildings and improvements 9,487,764 - - - 9,487,764
Machinery and equipment 4,497,224 189,665 (224,819)- 4,462,070
Infrastructure 2,595,339 601,167 - - 3,196,506
Total capital assets, depreciated 16,580,327 790,832 (224,819)- 17,146,340
Less accumulated depreciation for:
Buildings and improvements 4,184,759 283,604 - - 4,468,363
Machinery and equipment 3,941,345 199,700 (114,355)- 4,026,690
Infrastructure 1,181,397 134,352 - - 1,315,749
Total accumulated depreciation 9,307,501 617,656 (114,355)- 9,810,802
Total capital assets, depreciated, net 7,272,826 173,176 (110,464)- 7,335,538
Governmental activities
capital assets, net $9,555,472 $664,000 $(711,631)$- $9,507,841
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2017
(Continued)35
Note 5.Capital Assets (Continued)
Beginning Ending
Capital assets, not depreciated
Land $80,752 $- - $80,752
Construction in progress 983,171 78,326 (1,048,974)12,523
Total capital assets, not depreciated 1,063,923 78,326 (1,048,974)93,275
Capital assets, depreciated
Utility plant 19,461,961 1,231,732 (40,184)20,653,509
Sewage treatment contract 4,111,373 - - 4,111,373
Machinery and equipment 1,631,269 - - 1,631,269
Total capital assets, depreciated 25,204,603 1,231,732 (40,184)26,396,151
Less accumulated depreciation for:
Utility plant 12,004,445 505,585 (40,184)12,469,846
Sewage treatment contract 1,550,448 131,614 - 1,682,062
Machinery and equipment 1,061,093 84,577 - 1,145,670
Total accumulated depreciation 14,615,986 721,776 (40,184)15,297,578
Total capital assets, depreciated, net 10,588,617 509,956 - 11,098,573
Business-type activities
capital assets, net $11,652,540 $588,282 (1,048,974)$11,191,848
Depreciation expense was charged to functions/programs of the primary government as follows:
Construction Commitments
The Town’s has no active construction projects as of June 30.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2017
(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 upgraded its facilities in 2017 to improve compliance with DEQ peak flow requirements.
Modifications costing approximately $17 million were completed. The Town’s share was $1,039,443,
which was funded with general obligation bonds issued through the Virginia Resources Authority.
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 $3,217,540 $- $(298,394)$2,919,146 $301,332
Obligation payable –
Roanoke County 275,000 - (53,000)222,000 55,500
Obligation payable –
52,424 - (7,848)44,576 8,040
Capital leases 230,969 - (176,132)54,837 54,837
Compensated absences 377,499 146,747 (124,575)399,671 131,891
Other postemployment
benefits 130,482 50,412 (9,090)171,804 -
Business-type
General obligation bonds $4,539,723 $- $(364,047) $4,175,676 $375,330
Revenue bonds 2,176,000 - (165,000) 2,011,000 159,000
Obligation payable –
280,605 - (14,242)266,363 14,578
Bond Premiums 8,037 - (3,710)4,327 -
Compensated absences 52,239 8,472 (21,560)39,151 10,179
Other postemployment
benefits 14,569 5,601 (1,010)19,160 -
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2017
(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
2018 301,332 $70,296 $54,837 $1,772 $63,540 $1,023
2019 306,059 63,083 - -63,740 823
2020 326,522 55,643 - -63,944 619
2021 330,638 47,801 - -64,152 409
2022 339,387 39,635 -- 8,868 194
2023-2027 1,315,208 79,314 -- 2,332 14
2,919,146 $355,772 $54,837 $1,772 $266,576 $3,082
Business-type Activities
General Obligation
Bonds Revenue Bonds
Obligation Payable
WVWA
Fiscal
Year Principal Interest Principal Interest Principal Interest
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 15,636 5,075
2022 380,671 78,561 181,000 25,574 16,006 4,706
2023-2027 1,692,307 215,405 954,000 70,683 85,885 17,672
2028-2032 535,375 55,621 203,000 2,081 96,527 7,030
2033 116,572 1,662 -7,534 69
$4,175,676 $777,564 $2,011,000 $241,448 $266,363 $51,912
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2017
(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, 2017 was 1.64.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 Activities
Business-
Type
Activities
General Obligation Bonds:
Virginia Resource Authority:
G.O. Public Improvement Bonds 3.64-4.96%06/01/06 10/01/26 $755,000 $460,000 $-
Virginia Revolving Loan Fund:
G.O. Water and Sewer Bonds 3.30%07/24/03 07/01/24 1,250,704 - 577,050
G.O. Water and Sewer Bonds 3.10%10/01/04 10/01/26 2,479,000 - 1,392,573
G.O. Water and Sewer Bonds 3.10%01/12/06 03/01/26 1,210,000 - 648,674
Virginia Association of Counties:
G.O. Refunding Bonds 2.05%05/25/16 02/01/27 702,000 687,000 -
Capital One Public Funding:
G.O. Public Improvement Bonds 2.85%06/27/13 11/01/32 1,993,152 - 1,557,379
Carter Bank and Trust:
G.O. Refunding Bonds 2.05%06/27/13 11/01/24 2,228,409 1,772,146 -
2,919,146 4,175,676
Plus bond premium, net of amortization 21,637 -
$2,940,783 $4,175,676
Revenue Bonds:
Virginia Association of Counties:
Revenue Water and Sewer Bonds 2.05%05/25/16 08/01/27 $1,786,000 $ - $1,746,000
Revenue Water and Sewer Bonds 3.50-5.00%12/19/07 08/01/18 2,750,000 - 265,000
2,011,000
Plus bond premium, net of amortization - 4,327
$- $2,015,327
Capital Lease:
Kansas State Bank 3.23%09/06/12 10/06/17 $313,315 $54,837 $-
$54,837 $-
Obligations Payable:
Roanoke County 0.00%07/01/11 07/01/20 $625,000 $222,000 $-
RCACP 2.46 12/31/13 09/30/22 73,180 44,576 -
WVWA 2.35 03/01/15 09/01/32 294,516 - 266,363
$266,576 $266,363
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)39
Note 6.Long-Term Liabilities (Continued)
Prior Year Defeasances of Debt
In 2016, the Town defeased certain bonds by placing the proceeds in an irrevocable trust to provide
for all future debt service on the refunded bonds through their maturity date. The deferred costs are
being amortized over the life of the new bonds as a component of interest expense. As a result, the
liability for those bonds has been removed from the financial statements. At June 30,$1,595,000 of
the bonds remains outstanding.
Note 7.Defined Benefit Pension Plan
Plan Description
All full-time, salaried permanent employees of the Town of Vinton, (the “Political Subdivision”) are
automatically covered by VRS Retirement Plan upon employment. This plan is 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. Members are eligible to
purchase prior service, based on specific criteria as defined in the Code of Virginia, as amended.
Eligible prior service that may be purchased includes prior public service, active military service,
certain periods of leave, and previously refunded service.
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 and the eligibility for covered groups within each plan are as follows:
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.
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)40
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Plan 1 (Continued)
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.
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.Age 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%.
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)41
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Plan 1 (Continued)
Cost-of-Living Adjustment (COLA) in Retirement (Continued)
o Eligibility –For members who retire with an unreduced benefit or with a reduced benefit
with at least 20 years of creditable service, the COLA will go into effect on July 1 after one
full calendar year from the retirement date. For members who retire with a reduced benefit
and who have less than 20 years of creditable service the COLA will go into effect on July 1
after one calendar year following the unreduced retirement eligibility date.
o Exceptions to COLA Effective Dates –The COLA is effective July 1 following one full
calendar year (January 1 to December 31) under any of the following circumstances:
The member is within five years of qualifying for an unreduced retirement benefit as of
January 1, 2013.
The member retires on disability.
The member retires directly from short-term or long-term disability under the Virginia
Sickness and Disability Program (VSDP).
The member is involuntarily separated from employment for causes other than job
performance or misconduct and is eligible to retire under the Workforce Transition Act or
the Transitional Benefits Program.
The member dies in service and the member’s survivor or beneficiary is eligible for a
monthly death-in-service benefit. The COLA will go into effect on July 1 following one
full calendar year (January 1 to December 31) from the date the monthly benefit begins.
Disability Coverage –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.
Purchase of Prior Service –Members may be eligible to purchase service from previous public
employment, active duty military service, an eligible period of leave or VRS refunded service as
creditable service in their plan. Prior creditable service counts toward vesting, eligibility for
retirement and the health insurance credit. Only active members are eligible to purchase prior
service. When buying service, members must purchase their most recent period of service first.
Members also may be eligible to purchase periods of leave without pay.
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)42
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
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.
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%.
o Eligibility –Same as Plan 1.
o Exceptions to COLA Effective Dates –Same as Plan 1.
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)43
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Plan 2 (Continued)
Cost-of-Living Adjustment (COLA) in Retirement (Continued)
Disability Coverage –Same as Plan 1 except that the retirement multiplier is 1.65%.
Purchase of Prior Service –Same as Plan 1.
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.
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. 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.
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)44
Note 7 Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Hybrid Retirement Plan (Continued)
Creditable Service –
o Defined Benefit Component –Under the defined benefit component of the plan, creditable
service includes active service. Members earn credible 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 credible 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.
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.
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.
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)45
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Hybrid Retirement Plan (Continued)
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.
o Defined Contribution Component –Members are eligible to receive distributions upon
leaving employment, subject to restrictions.
Earliest Reduced 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.
o Defined Contribution Component –Not Applicable.
o Eligibility –Same as Plan 2.
o Exceptions to COLA Effective Dates –Same as Plan 2.
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)46
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Hybrid Retirement Plan (Continued)
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 an 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 –
o Defined Benefit Component –Same as Plan 2, with the following exceptions:
Hybrid Retirement Plan members are ineligible for ported service.
The cost for purchasing refunded service is the higher or 4% of creditable compensation
or average final compensation.
Plan members have one year from their date of hire or return from leave to purchase all
but refunded prior service at approximate normal cost. After that one-year period, the rate
for most categories of service will change to actuarial cost.
o Defined Contribution Component –Not Applicable.
Employees Covered by Benefit Terms
As of the June 30, 2015 actuarial valuation, the following employees were covered by the benefit
terms of the pension plan:
Number
Inactive members or their beneficiaries currently receiving benefits 61
Inactive members:
Vested inactive members 21
Non-vested inactive members 18
Inactive members active elsewhere in VRS 54
Total inactive members 93
Active members 80
Total covered employees 234
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)47
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, 2017
was 10.93% of covered employee compensation. This rate was based on an actuarially determined
rate from an actuarial valuation as of June 30, 2015.
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 $400,540 and
$405,320 for the years ended June 30, 2017 and June 30, 2016, respectively.
Net Pension Liability
The political subdivision’s net pension liability was measured as of June 30,2016. The total pension
liability used to calculate the net pension liability was determined by an actuarial valuation performed
as of June 30, 2015, using updated actuarial assumptions, applied to all periods included in the
measurement and rolled forward to the measurement date of June 30, 2016.
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)48
Note 7.Defined Benefit Pension Plan (Continued)
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, 2015, 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, 2016.
Inflation 2.50%
General Employees -Sal
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*
*Administrative expenses as a percent of the market value of assets for the last
experience study were found to be approximately 0.06% of the market assets for all
of the VRS plans. This would provide an assumed investment rate for GASB
purposes of slightly more than the assumed 7.0%. However, since the difference was
minimal, and a more conservative 7.0% investment return assumption provided a
projected plan net position that exceeded the projected benefit payments, the
long-term expected rate of return on investments was assumed to be 7.0% to
simplify preparation of pension liabilities.
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, 2015 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) and increase in rates of withdrawal.
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)49
Note 7.Defined Benefit Pension Plan (Continued)
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:
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 %
*Using stochastic projection results provides an expected range of real rates of return
over various time horizons. Looking at one year results produces an expected real return
of 8.33% but also has a high standard deviation, which means there is high volatility.
Over larger time horizons the volatility declines significantly and provides a median
return of 7.44%, including expected inflation of 2.50%
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)50
Note 7.Defined Benefit Pension Plan (Continued)
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.
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, 2015 $17,172,801 $15,250,470 $1,922,331
Changes for the year:
Service cost 426,921 - 426,921
Interest 1,167,910 - 1,167,910
Differences between expected
and actual experience (201,924)- (201,924)
Contributions –employer - 405,320 (405,320)
Contributions –employee - 164,126 (164,126)
Net investment income - 257,935 (257,935)
Benefit payments, including refunds
of employee contributions (976,757)(976,757)-
Administrative expenses - (9,605)9,605
Other changes - (111)111
Net changes 416,150 (159,092)575,242
Balances at June 30, 2016 $17,588,951 $15,091,378 $2,497,573
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)51
Note 7.Defined Benefit Pension Plan (Continued)
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 $4,735,412 $2,497,573 $635,567
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended June 30, 2017, the political subdivision recognized pension expense of $373,502.
At June 30, 2017, 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 $47,600 $139,984
Change in assumptions - -
on pension plan investments 393,476 -
Employer contributions subsequent to the
measurement date 400,540 -
Total $841,616 $139,984
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)52
Note 7.Defined Benefit Pension Plan (Continued)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions (Continued)
The $400,540 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, 2018. 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
2018 $(13,982)
2019 (57,924)
2020 213,996
2021 159,002
2022 -
Thereafter -
Pension Plan Data
Information about the VRS Political Subdivision Retirement Plans is also available in the separately
issued VRS 2016 Comprehensive Annual Financial Report (CAFR). A copy of the 2016 VRS CAFR
may be downloaded from the VRS website at http://www.varetire.org/Pdf/Publications/2016-annual-
report.pdf, or by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA,
23218-2500.
Payables to the Pension Plan
At June 30, 2017, approximately $52,563 was payable to the Virginia Retirement System for the
legally required contributions related to June 2017 payroll.
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)53
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 2017, the Town’s pay-as-you-go
funding totaled $10,100 and resulted in a Net OPEB obligation of $190,964. The pay-as-you-go
funding includes the Town’s contribution towards retiree health care premiums of $3,200,and an
implicit subsidy of the retiree health care premiums created through the blending of active employee
and retiree insurance rates.
Annual required contribution $56,300
Interest on net OPEB obligation 5,077
Adjustment to annual required contribution (5,364)
Annual OPEB cost 56,013
Less funding (10,100)
Increase in net OPEB obligation 45,913
Net OPEB obligation-beginning of year 145,051
Net OPEB obligation-end of year $190,964
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)54
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 2017, 2016,and 2015 are as follows:
Fiscal Year
Ended OPEB Cost
Annual OPEB
Cost
Contributed
Net OPEB
Obligation
June 30, 2017 $56,013 18.0%$190,964
June 30, 2016 53,193 25.0%145,051
June 30, 2015 50,374 17.7%105,158
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 THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)55
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, 2017 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 THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)56
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
2016-2017, total premiums paid were approximately $97,000. 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 2016-2017, total premiums paid were approximately $103,000.
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 2016-2017, total premiums paid were approximately $729,000.
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)57
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
$53,000 current year contribution is included in principal retirement expenditures on the fund
statement.
Note 14.Major Customer/Taxpayer
During fiscal year 2017, approximately 4.3%of the Town’s business-type revenues were generated
by one industrial customer.
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)58
Note 15.Interfund Activity
The primary purpose of the $219,978 from the general fund and $114,177 from the water and sewer
fund to the stormwater management fund was to cover obligations expended in the establishment of
the stormwater fund.
Note 16.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 $3,351
Prepaids 66,151
CDBG revolving loan 19,880
89,382
Restricted for:
Public safety 132,387
Unassigned 2,578,193
Total fund balance
GASB 68 created a negative fund balance in the Stormwater Management Fund. This new fund was
created this year to track costs relating to stormwater and is currently funded by a transfer from the
General Fund and Utility Fund. Staff is working with Town council to move towards a fee to sustain
the fund.
Note 17.Subsequent Event
In August 2017, the Town accepted a $50,000 Virginia Brownfied’s Assistance Fund grant from the
Virginia Economic Development Partnership (VDEP) for the Environmental Phase I and Phase II for
the former Holdren’s County Store/Gish’s Mills Property.
Note 18.New Accounting Standards
The Governmental Accounting Standards Board (GASB) has issued the following Statements which
are not yet effective.
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 replaces the requirements of Statements No. 45 and No. 57 and establishes new accounting
requirements for OPEB plans. This Statement will be effective for the year ending June 30, 2018.
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
(Continued)59
Note 18.New Accounting Standards (Continued)
GASB Statement No. 81,Irrevocable Split-Interest Agreements provides recognition and
measurement guidance for situations in which a government is a beneficiary of an irrevocable
split-interest 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 the presentation of payroll related
measures in required supplementary information, the selection of assumptions and the treatment of
deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes,
and 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, 2018.
GASB Statement No. 83, Certain Asset Retirement Obligations establishes criteria for determining
the timing and pattern of recognition of a liability and a corresponding deferred outflow of resources
for Asset Retirement Obligations (AROs). This Statement requires that recognition occur when the
liability is both incurred and reasonably estimable. The determination of when the liability is incurred
should be based on the occurrence of external laws, regulations, contracts, or court judgments,
together with the occurrence of an internal event that obligates a government to perform asset
retirement activities. Laws and regulations may require governments to take specific actions to retire
certain tangible capital assets at the end of the useful lives of those capital assets, such as
decommissioning nuclear reactors and dismantling and removing sewage treatment plants. Other
obligations to retire tangible capital assets may arise from contracts or court judgments. Internal
obligating events include the occurrence of contamination, placing into operation a tangible capital
asset that is required to be retired, abandoning a tangible capital asset before it is placed into
operation, or acquiring a tangible capital asset that has an existing ARO. This Statement will be
effective for the year ending June 30, 2019.
GASB Statement No. 84, Fiduciary Activities establishes criteria for identifying fiduciary activities
of all state and local governments. The focus of the criteria generally is on (1) whether a government
is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary
relationship exists. Separate criteria are included to identify fiduciary component units and
postemployment benefit arrangements that are fiduciary activities. This Statement will be effective
for the year ending June 30, 2020.
TOWN OF VINTON, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2017
60
Note 18.New Accounting Standards (Continued)
GASB Statement No. 85, Omnibus 2017 addresses practice issues that have been identified during
implementation and application of certain GASB Statements, including issues related to blending
component units, goodwill, fair value measurement and application, and postemployment benefits.
Specifically, this Statement addresses the following topics:
Blending a component unit in circumstances in which the primary government is a
business-type activity that reports in a single column for financial statement presentation
Reporting amounts previously reported as goodwill and “negative” goodwill
Classifying real estate held by insurance entities
Measuring certain money market investments and participating interest earning investment
contracts at amortized cost
Timing of the measurement of pension or OPEB liabilities and expenditures recognized in
financial statements prepared using the current financial resources measurement focus
Recognizing on-behalf payments for pensions or OPEB in employer financial statements
Presenting payroll-related measures in required supplementary information for purposes of
reporting by OPEB plans and employers that provide OPEB
Classifying employer-paid member contributions for OPEB
Simplifying certain aspects of the alternative measurement method for OPEB
Accounting and financial reporting for OPEB provided through certain multiple-employer
defined benefit OPEB plans.
This Statement will be effective for the year ending June 30, 2018.
GASB Statement No. 86, Certain Debt Extinguishment Issues,improves consistency in accounting
and financial reporting for in-substance defeasance of debt by providing guidance for transactions in
which cash and other monetary assets acquired with only existing resources are placed in an
irrevocable trust for the sole purpose of extinguishing debt. This Statement also improves accounting
and financial reporting for prepaid insurance on debt that is extinguished and notes to financial
statements for debt that is defeased in substance. This Statement will be effective for the year ending
June 30, 2018.
GASB Statement No. 87, Leases establishes a single model for lease accounting based on the
foundational principle that leases are financings of the right to use an underlying asset. Under this
Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset,
and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby
enhancing the relevance and consistency of information about governments' leasing activities. This
Statement will be effective for the year ending June 30, 2021.
Management has not yet evaluated the effects, if any, of adopting these standards.
THIS PAGE INTENTIONALLY BLANK
61
REQUIRED SUPPLEMENTARY
INFORMATION
EXHIBIT 11
2016 2015 2014
Total Pension Liability
Service cost 426,921$ 450,265$ 430,229$
Interest on total pension liability 1,167,910 1,112,256 1,065,284
Difference between expected and actual experience (201,924) 139,140 -
Benefit payments, including refunds of employee contributions (976,757) (836,477) (812,476)
Net change in total pension liability 416,150 865,184 683,037
Total pension liability - beginning 17,172,801 16,307,617 15,624,580
Total pension liability - ending 17,588,951 17,172,801 16,307,617
Plan Fiduciary Net Position
Contributions - employer 405,320 413,851 307,429
Contributions - employee 164,126 181,194 184,601
Net investment income 257,935 673,666 2,045,884
Benefit payments, including refunds of employee contributions (976,757) (836,477) (812,476)
Administrative expenses (9,605) (9,337) (11,195)
Other (111) (144) 108
Net change in plan fiduciary net position (159,092) 422,753 1,714,351
Plan fiduciary net position - beginning 15,250,470 14,827,717 13,113,366
Plan fiduciary net position - ending 15,091,378 15,250,470 14,827,717
Net pension liability - ending 2,497,573$ 1,922,331$ 1,479,900$
Plan fiduciary net position as a percentage of total pension liability 86%89%91%
Covered employee payroll 3,289,982$ 3,353,343$ 3,699,186$
Net pension liability as a percentage of covered employee payroll 76%57%40%
This 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, 2017
The plan years above are reported in the entity’s financial statements in the fiscal year following the plan year –i.e.,plan year 2016
information was presented in the entity’s fiscal year 2017 financial report.
Plan Year
The Notes to Required Supplementary Information
are an integral part of this statement.
62
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
2017 400,540$ 400,540$ -$ $ 3,664,576 10.93%
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, 2017
REQUIRED SUPPLEMENTAL INFORMATION
Schedule is intended to show information for 10 years.Since 2015 was the first year for this presentation,only three years of
data is available. However, additional years will be included as they become available.
The covered payroll amounts above are for the Town’s fiscal year –i.e.the covered payroll on which required contributions
were based for the same year.
The Notes to Required Supplementary Information
are an integral part of this statement.
63
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, 2017
The Notes to Required Supplementary Information
are an integral part of this statement.
64
65
TOWN OF VINTON, VIRGINIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2017
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, 2016 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
66
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.
TABLE 1
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Governmental activities
Net investment in capital assets 6,638,792$ 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$
Restricted 132,387 209,649 235,246 190,161 91,676 - 20,053 20,000 20,000 20,000
Unrestricted 770,368 801,646 499,226 2,291,758 2,219,240 1,972,859 1,491,375 1,362,770 1,650,476 2,451,898
Total governmental activities net position 7,541,547$ 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$
Business-type activities
Net investment in capital assets 4,862,273$ 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$
Unrestricted 1,504,611 1,035,813 117,415 410,722 394,976 339,523 661,273 297,150 968,176 1,255,035
Total business-type activities net position 6,366,884$ 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$
Primary government
Net investment in capital assets 11,501,065$ 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$
Restricted 132,387 209,649 235,246 190,161 91,676 - 20,053 20,000 20,000 20,000
Unrestricted 2,274,979 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
Total primary government net position 13,908,431$ 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$
Note:
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
TOWN OF VINTON, VIRGINIA
67
TABLE 2
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Expenses
Governmental activities
General government 992,699$ 1,001,560$ 927,954$ 962,341$ 942,315$ 948,803$ 934,388$ 1,023,227$ 1,037,073$ 906,072$
Public safety 3,926,763 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
Public works 2,011,469 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
Parks, recreation, and cultural 591,208 591,342 621,897 635,252 588,649 553,866 583,569 617,778 610,756 575,895
Community development 479,973 447,908 427,409 575,557 398,517 1,034,510 339,983 393,160 339,304 227,303
Interest on long-term debt 106,756 126,164 193,242 200,584 143,455 183,672 194,159 203,787 211,189 220,551
Total governmental activities 8,108,868 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
Business-type activities
Water and sewer 3,088,256 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
Stormwater management 419,957 ---------
Total business-type activities expense 3,508,213 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
Total primary government expenses 11,617,081$ 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$
Program Revenues
Governmental activities
Charges for services
Public safety 118,454$ 63,735$ 72,356$ 88,364$ 89,115$ 91,196$ 119,870$ 108,187$ 172,357$ 128,216$
Public works 110,145 110,099 110,295 110,425 110,115 110,460 110,380 110,175 132,382 114,274
Other activities 540,600 559,171 570,459 554,666 495,133 440,883 466,306 489,901 436,835 450,338
Operating grants and contributions 1,666,789 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
Capital grants and contributions 408,362 317,643 384,074 114,966 53,749 66,545 75,188 8,034 2,146 91,590
Total governmental activities program revenues 2,844,350 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
Business-type activities
Charges for services
Water and sewer 3,398,582 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
Capital grants and contributions -------- 303,556 -
Total business-type activities program revenues 3,398,582 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
Total primary government program revenues 6,242,932$ 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$
Net (expense) revenue
Governmental activities (5,264,518)$ (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)$
Business-type activities (109,631) 333,756 201,365 (171,926) (191,980) (290,491) (330,808) (799,293) (596,005) (892,731)
Total primary government net expense (5,374,149)$ (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)$
(Continued)
TOWN OF VINTON, VIRGINIA
CHANGE IN NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
68
TABLE 2
(Continued)
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
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 697,622$ 640,391$ 539,764$ 448,349$ 453,135$ 510,558$ 429,409$ 419,401$ 434,176$ 467,806$
Sales tax 1,436,325 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
Business license tax 500,713 508,747 489,749 517,111 491,996 460,638 454,636 456,536 437,797 452,672
Meals tax 953,721 955,488 912,713 900,591 912,226 909,814 864,448 842,384 861,286 860,961
Other taxes 585,378 576,896 561,080 628,177 692,669 698,412 734,316 755,808 386,703 338,292
Utilities tax 755,985 767,736 782,869 787,097 785,555 782,487 801,264 803,044 795,268 804,812
Intergovernmental revenue not restricted 773,690 744,247 768,956 756,199 807,117 773,617 748,815 664,975 631,320 679,009
Investment earnings not restricted 19,406 17,709 15,438 14,540 4,434 3,020 1,904 3,187 28,917 112,672
Restricted investment earnings - - 60,746 59,628 - - - - 187 11,087
Gain on disposal of property - - 7,444 6,516 - - - - - -
Other 66,305 106,706 27,002 21,752 41,418 184,846 81,373 29,275 16,038 77,077
Transfers (219,978) - - - - 500,000 - 78,466 126,018 113,486
Total governmental activities 5,569,167 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
Business-type activities:
Investment earnings not restricted 2,172 989 - 7 66 414 1,174 1,824 16,719 67,772
Restricted investment earnings 94 329 1,353 5,301 762 91 427 1,727 26,873 47,234
Other 338,118 279,661 250,562 255,135 261,934 287,359 275,208 298,591 236,198 250,838
Transfers 219,978 - - - - (500,000) - (78,466) (126,018) (113,486)
Total business-type activities 560,362 280,979 251,915 260,443 262,762 (212,136) 276,809 223,676 153,772 252,358
Total primary government 6,129,529$ 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$
Changes in Net Position
Governmental activities 304,649$ 572,501$ 438,710$ (28,033)$ 122,464$ 64,137$ (314,879)$ (892,864)$ (1,199,260)$ (717,068)$
Business-type activities 450,731 614,735 453,280 88,517 70,782 (502,627) (53,999) (575,617) (442,233) (640,373)
Total primary government 755,380$ 1,187,236$ 891,990$ 60,484$ 193,246$ (438,490)$ (368,878)$ (1,468,481)$ (1,641,493)$ (1,357,441)$
Note: Water and sewer charges for service is the Town’s most significant source of own-source revenue.
69
TABLE 3
2010 2009 2008
Pre-GASB 54 implementation:
General Fund
Reserved 361,090$ 272,645$ 314,902$
Unreserved 1,322,095 1,698,851 2,439,625
Total general fund 1,683,185$ 1,971,496$ 2,754,527$
2017 2016 2015 2014 2013 2012 2011
Post-GASB 54 implementation:
General Fund
Nonspendable 89,382$ 62,048$ 59,817$ 60,358$ 19,101$ 62,746$ 66,341$
Restricted 132,387 209,649 235,246 190,161 274,908 17,068 372,271
Assigned - - - - - 100,000
Unassigned 2,578,193 2,607,524 2,361,436 2,919,657 2,837,802 2,584,947 1,196,789
Total general fund 2,799,962$ 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)
70
TABLE 4
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Revenues
Taxes 4,904,946$ 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$
Permits, privilege fees, and regulatory licenses 8,712 9,788 12,403 9,085 10,861 9,273 10,242 12,116 11,321 14,035
Fines and forfeitures 75,085 51,631 56,503 75,059 73,107 75,989 102,566 94,548 116,463 102,720
Revenue from use of money and property 136,695 141,889 197,241 198,625 105,998 105,666 118,560 156,533 201,341 298,369
Charges for services 418,042 452,903 438,558 407,900 387,049 333,832 355,606 328,116 319,293 270,521
Other 150,967 138,589 129,124 149,957 72,337 18,522 16,860 3,562 4,638 4,718
Intergovernmental 2,965,777 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
Total revenues 8,660,224 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
Expenditures
General government 650,824 710,412 668,082 645,071 632,136 618,951 628,386 641,853 652,359 695,916
Public safety 3,649,236 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
Public works 1,749,305 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
Parks, recreation, and cultural 570,065 594,550 617,934 620,636 547,604 518,579 551,240 574,215 571,291 511,481
Community development 889,397 687,006 604,476 468,678 386,592 544,245 333,617 365,366 316,267 221,764
Capital projects 463,945 437,389 551,936 140,478 542,235 160,752 114,309 90,570 384,982 1,962,873
Debt service:
Principal retirement 535,374 404,038 379,843 372,923 335,766 267,595 260,501 253,500 241,585 208,404
Interest and fiscal charges 91,789 115,486 182,584 186,377 174,699 185,715 195,608 205,189 212,090 208,912
Bond issuance costs - 15,920 - - 36,638 - - - - 1,856
Total expenditures 8,599,935 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
Excess (deficiency) of revenues over
expenditures 60,289 40,666 (521,121) 215,081 (67,017) 298,409 50,092 (384,268) (924,609) (2,182,646)
Other Financing Sources (Uses)
Proceeds from long-term debt - 702,000 - - 2,411,641 - - - - -
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 80,430 29,537 7,444 6,516 - 130,951 2,124 17,491 15,560 13,836
Transfers in (219,978) - - - - 500,000 - 78,466 126,018 113,486
Total other financing sources (139,548) 182,056 7,444 6,516 534,067 630,951 2,124 95,957 141,578 354,822
Net change in fund balances (79,259)$ 222,722$ (513,677)$ 221,597$ 467,050$ 929,360$ 52,216$ (288,311)$ (783,031)$ (1,827,824)$
Debt service as a percentage of
TOWN OF VINTON, VIRGINIA
CHANGES IN FUND BALANCES – GOVERNMENTAL FUND
Last Ten Fiscal Years
(modified accrual basis of accounting)
71
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
2017 467,013,600$ 45,889,795$7,448,120$ 17,210,450$40,250$ 537,602,215$0.07$ 537,602,215$ 100%
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
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
72
TABLE 6
Customer Revenue Rank Revenue Rank
Aramark 160,171$ 1 4.29 %72,815$ 2 3.32 %
Cardinal Glass 151,497 2 4.05 37,626 4 1.72
Precision Fabrics Group, Inc.146,292 3 3.92 194,765 1 8.88
Blue Ridge Manor Apartments 51,788 4 1.39 - - -
The Berkshire 50,585 5 1.35 31,437 5 1.43
RGM 42,055 6 1.13 16,045 7 0.73
Roanoke County Schools 31,054 7 0.83 18,563 6 0.85
Clearview Manor 29,875 8 0.80 10,244 8 0.47
Richard Dickerson/RL Mansard Sq 20,534 9 0.55 42,464 3 1.94
F & W Management 18,665 10 0.50 - - -
Skyline Cleaners - - -7,694 9 0.35
American Efficiency - - -7,231 10 0.33
702,516$ 438,884$
Source: Town of Vinton Finance Department
1) FY 2017 % was based on total water and sewer revenue of $3,736,700
2) FY 2008 % was based on total water and sewer revenue of $2,506,343
of Total Town
Revenue
Fiscal Year 2008
Percentage
of Total Town
Revenue
TOWN OF VINTON, VIRGINIA
PRINCIPAL WATER AND SEWER CUSTOMERS
Current Year and Nine Years Ago
Fiscal Year 2017
Percentage
73
TABLE 7
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30,Fiscal Year Amount of Levy Years Amount of Levy
2017 859,822$ 826,673$ 96.14%-$ 826,673$ 96.14%
2016 853,737 785,340 91.99 13,902 799,242 94.37
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
Source: Detailed Town property tax records.
Note: The Town increased the real estate tax rate from $0.03 to $0.07 in 2015
TOWN OF VINTON, VIRGINIA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Total Collections to Date
Collected within the
Fiscal Year of the Levy
74
TABLE 8
Fiscal
Year Water Sewer Water Sewer
2017 18.85$ 27.68$ 9.43$ 13.84$
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
Note: Minimum charge for water and sewer residential 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
75
TABLE 9
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Debt limit 53,760,222$ 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$
Total net debt applicable to limit 7,094,822 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
Legal debt margin 46,665,400$ 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$
Total net debt applicable to the limit
as a percentage of debt limit 13.20%14.58%15.80%17.18%19.53%13.39%13.27%14.13%14.98%18.74%
Legal Debt Margin Calculation for Fiscal Year 2017
537,602,215$
Debt limit (10% of assessed value)53,760,222$
Less debt applicable to limit:
General obligation bonds 7,094,822
Legal debt margin 46,665,400$
Note:
TOWN OF VINTON, VIRGINIA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Assessed value
76
TABLE 10
Fiscal General Obligation Revenue Capital Obligations General Obligation Revenue Obligations
Year 1 Bonds1 Leases Payable Total Bonds1 Bonds1 Payable Total
2017 2,940,783$ - 54,837$ 266,576$ 3,262,196$ 4,175,676$ 2,011,000$ 266,363$ 6,453,039$
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
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 1 Value Taxable Property Population Per Capita Income Personal Income
2017 7,116,459$ 537,602,215$ 1.32%8,185 869$ 48,047$ 1.81%
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
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
77
TABLE 11
Less:Net
Fiscal Gross Operating Available
Year Revenue (1)Revenue Principal (2)Interest Coverage
2017 3,738,966$ 2,182,323$ 1,537,139$ 543,289$ 181,582$ 2.12
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
(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.
78
TABLE 12
Fiscal Total Per Capita Public School Public
Year Personal Personal Roanoke CO Town of Vinton Unemployment
Ended Population (1)Income (2)Income (2)Enrollment (3)Enrollment (3)Rate (4)
2017 8,185 5,780,000$ 48,047$ 14,235 965 3.70%
2016 8,231 5,435,865 45,577 14,135 910 3.70
2015 8,151 5,159,100 43,418 14,384 948 4.50
2014 8,151 4,984,547 42,288 14,333 965 5.50
2013 8,092 4,789,030 40,688 14,369 935 5.90
2012 8,130 4,672,000 39,866 14,454 927 5.70
2011 8,098 4,561,791 39,315 14,259 951 5.70
2010 7,814 4,561,791 39,315 14,474 921 6.30
2009 7,876 4,561,791 39,315 14,650 978 4.60
2008 7,905 4,750,916 41,019 14,802 964 2.80
Sources:
(1) From U.S. Census Bureau link at www.rvarc.org
(4) Virginia Employment Commission www.bls.gov/eag/eag.va.htm
TOWN OF VINTON, VIRGINIA
DEMOGRAPHIC STATISTICS
Last Ten Fiscal Years
(3) Virginia Department of Education - Membership Reporting
http://www.doe.virginia.gov/statistics_reports/enrollment/fall_membership/report_data.shtml
(2) Personal Income and Per Capita Personal Income from the U.S. Department of Commerce
Bureau of Economic Analysis. Latest information available as of March 2014 at
www.bea.gov/regional/docs/income. Combined with Roanoke County/Salem.
79
TABLE 13
Percentage Percentage
of Total Town of Total Town
Employer Employees Rank Employment Employees Rank Employment
Roanoke County Schools (Vinton)208 1 2.54%179 3 2.26%
Berkshire 195 2 2.38 213 2 2.69
Precision Fabrics Group, Inc.172 3 2.10 301 1 3.81
Kroger 168 4 2.05 168 4 2.13
Town of Vinton 102 5 1.25 115 5 1.45
Magnets USA 87 6 1.06 N/A N/A N/A
Aramark Uniform Services 80 7 0.98 90 6 1.14
McDonalds 54 8 0.66 N/A N/A N/A
Lancerlot 44 9 0.54 N/A N/A N/A
Woods Service Center 44 10 0.54 N/A N/A N/A
1,154 14.10%1,066 13.48%
Source: Employer Business Application or HR Contact
N/A - Not Available
Fiscal Year 2017 Fiscal Year 2008
TOWN OF VINTON, VIRGINIA
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
80
TABLE 14
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Function/Program
General government
Management services 4 4 4 4 4 4 4 4 4 3
Finance 5 5 6 6 6 6 5 5 5 5
Planning 3 3 3 3 3 3 3 3 3 3
Police
Officers 24 22 22 24 24 24 25 24 24 24
Civilians 2 2 2 2 2 2 2 10 10 10
Fire
Firefighters and officers 12 10 11 10 9 9 9 9 9 9
Other public works 33 29 31 32 32 32 34 33 33 32
Parks, recreation, and cultural 3 3 2 3 3 3 3 3 3 2
Total 86 78 81 84 83 83 85 91 91 88
TOWN OF VINTON, VIRGINIA
FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
81
TABLE 15
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Function/Program
General government
Fleet equipment 133 133 133 133 117 117 117 117 117 62
Pieces of equipment maintained 133 133 133 133 117 117 117 117 117 62
Public safety:
Police
Arrests 594 722 507 578 582 667 546 531 658 598
Parking violations 58 133 52 64 48 56 82 139 84 62
Traffic violations 2,021 1,187 1,143 1,603 1,408 1,734 1,933 2,431 3,088 3,034
EMS
Emergency responses 2,637 2,656 2,615 2,735 2,654 2,872 2,319 2,219 2,369 2,397
Fire
Emergency responses 501 774 278 623 306 677 514 476 764 1,038
Public works
Refuse collection
Refuse collected (tons per day)12 11.92 12.55 12.78 12.92 12.75 12.70 14.00 15.90 18.10
Recyclables collected (tons per day)1 0.54 0.65 0.70 0.68 2.00 2.00 1.60 1.60 1.70
Other public works
Street resurfacing (miles)2 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 Closed 20,000 20,000
4th of July 5,000 5,000 5,000 5,000 4,000 4,000 4,000 4,000 4,000 4,000
(Co-Sponsor Roanoke County)Closed Closed Closed Closed Closed Closed Closed 5,000 5,000 5,000
(Co-Sponsor Chamber of Commerce)6,000 9,000 9,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000
Water
Number of customer accounts 5,120 5,093 5,074 5,085 5,071 5,051 5,044 5,040 5,022 4,985
Miles of distribution lines 61 61 61 61 61 61 61 61 61 60
Volume pumped (million gallons per day average)1 1.27 1.23 1.14 1.21 1.23 1.26 1.47 1.04 1.29
Sewer
Number of customer accounts 4,686 4,658 4,639 4,642 4,636 4,607 4,610 4,609 4,600 4,571
Miles of collection lines 60 60 60 60 60 60 60 60 60 59
Waste/Water treated (million gallons per day)1 1.40 1.19 0.92 0.96 0.99 1.09 1.27 1.04 1.24
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
82
TABLE 16
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Function/Program
Public safety
Law enforcement vehicles 27 25 26 25 25 26 27 27 29 27
Fire stations 1 1 1 1 1 1 1 1 1 1
Public works
Primary streets (lane miles)21.62 21.62 21.62 21.62 21.62 21.62 21.62 21.62 21.62 21.62
Secondary streets (lane miles)66.32 66.32 66.32 66.32 66.32 66.32 66.32 66.32 66.32 66.32
Streetlights 505 503 502 500 500 500 500 500 500 500
Parks, recreation, and cultural
Community centers
Vinton Senior Program (No. of Events/Attendance)285/4370 252/4166 240/3990 223/3,965 253/3775 231/4033 174/3396 1/18 240/4236 180/3600
Charles R. Hill Center (Rentals)316 283 291 289 437 299 218 295 351 205
Skate Park Closed Closed Closed Closed Closed Closed Closed Closed Closed 2,400
Vinton War Memorial 276 273 235 282 301 200 202 271 277 151
Parks/athletic fields
Gearhart Park (TOV owned-Leased to Rke County)NA N/A N/A N/A N/A N/A N/A N/A 37/3000 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 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 6,000
Vinton Municipal Pool Closed 7,977 7,977 8,458 10,562 10,176 12,246 11,270 11,000 11,000
Water and sewer
Water mains (miles)61 61 61 61 61 61 61 61 61 60
Sanitary sewers (miles)60 60 60 60 60 60 60 60 60 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
TOWN OF VINTON, VIRGINIA
CAPITAL ASSET AND INFRASTRUCTURE STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
83
THIS PAGE INTENTIONALLY BLANK
84
COMPLIANCE SECTION
85
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, 2017, 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 15, 2017.
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 finding and response, we identified a certain deficiency in internal control that we consider to
be a material weakness, which is labelled as item 2007-001.
86
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 no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
Town of Vinton’s Response to Finding
The Town of Vinton’s response to the finding identified in our audit is described in the
accompanying schedule of finding and response. The Town’s response was not subjected to the auditing
procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.
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 15, 2017
87
TOWN OF VINTON, VIRGINIA
SUMMARY OF COMPLIANCE MATTERS
June 30, 2017
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
88
TOWN OF VINTON, VIRGINIA
SCHEDULE OF FINDING AND RESPONSE
Year Ended June 30, 2017
A.FINDING –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 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.
89
TOWN OF VINTON, VIRGINIA
SCHEDULE OF PRIOR AUDIT FINDING
Year Ended June 30, 2017
A.FINDING –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.
Current Status:
Condition cleared with regard to payroll and still present for accounts payable, accounts receivable,
cash disbursements, and information technology.
B.FINDINGS –COMMONWEALTH OF VIRGINIA
2016-1:Budget Appropriations
Condition:
After audit adjustments, expenditures exceeded budgeted appropriations in the debt service
category.
Current Status:
No similar instances noted during the current year audit.