HomeMy WebLinkAboutFY 2017 - 2018 - Annual Comprehensive Financial Reports (ACFRs)
THE TOWN OF VINTON, VIRGINIA
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FOR FISCAL YEAR
ENDING JUNE 30, 2018
TOWN OF VINTON, VIRGINIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2018
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 ...............................................................vi
Directory of Principal Officials......................................................................................................................vii
Organizational Chart .....................................................................................................................................viii
FINANCIAL SECTION
Independent Auditor’s Report ..........................................................................................................................1
Management’s Discussion and Analysis .........................................................................................................4
Basic Financial Statements
Government-wide Financial Statements
Exhibit 1 Statement of Net Position .....................................................................................................6
Exhibit 2 Statement of Activities ..........................................................................................................7
Fund Financial Statements
Exhibit 3 Balance Sheet –Governmental Fund ...................................................................................8
Exhibit 4 Reconciliation of the Governmental Fund Balance Sheet
to the Statement of Net Position........................................................................................9
Exhibit 5 Statement of Revenues, Expenditures, and Changes in
Fund Balance –Governmental Fund ..............................................................................10
Exhibit 6 Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balance of the Governmental Fund to the Statement of Activities ..................11
Exhibit 7 Statement of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual –General Fund .................................................................................12
Exhibit 8 Statement of Net Position –Proprietary Funds ..................................................................13
Exhibit 9 Statement of Revenues, Expenses, and Changes in Fund
Net Position –Proprietary Funds ....................................................................................14
Exhibit 10 Statement of Cash Flows –Proprietary Funds ...................................................................15
Notes to Financial Statements ....................................................................................................................16
Required Supplementary Information
Exhibit 11 Schedule of Changes in the Net Pension Liability and Related Ratios .............................64
Exhibit 12 Schedule of Pension Contributions.....................................................................................65
Exhibit 13 Schedule of Changes in Net OPEB Liability and Related Ratios –Local Plan ................66
Exhibit 14 Schedule of Employer’s Share of Net OPEB Liability –VRS GLI ..................................67
Exhibit 15 Schedule of OPEB Contributions –VRS GLI ...................................................................68
Notes to Required Supplementary Information .........................................................................................69
TOWN OF VINTON, VIRGINIA
TABLE OF CONTENTS
(Continued)
Page
STATISTICAL SECTION
Table 1 Net Position by Component .......................................................................................................72
Table 2 Change in Net Position by Component .....................................................................................73
Table 3 Fund Balances –Governmental Fund .......................................................................................75
Table 4 Changes in Fund Balances –Governmental Fund ....................................................................76
Table 5 Assessed Value and Actual Value of Taxable Property ...........................................................77
Table 6 Principal Water and Sewer Customers ......................................................................................78
Table 7 Property Tax Levies and Collections ........................................................................................79
Table 8 Water and Sewer Rates ..............................................................................................................80
Table 9 Legal Debt Margin Information ................................................................................................81
Table 10 Ratios of Outstanding Debt by Type .........................................................................................82
Table 11 Pledged Revenue Coverage .......................................................................................................83
Table 12 Demographic Statistics ..............................................................................................................84
Table 13 Principal Employers ...................................................................................................................85
Table 14 Full-Time Equivalent Town Government Employees by Function/Program ..........................86
Table 15 Operating Indicators by Function/Program ...............................................................................87
Table 16 Capital Asset and Infrastructure Statistics by Function/Program .............................................88
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.....................................................................................................90
Summary of Compliance Matters ..................................................................................................................92
Schedule of Finding and Response ................................................................................................................93
Schedule of Prior Audit Finding ....................................................................................................................94
INTRODUCTORY SECTION
i
ii
iii
iv
v
vi
vii
TOWN OF VINTON, VIRGINIA
DIRECTORY OF PRINCIPAL OFFICIALS
June 30, 2018
TOWN COUNCIL
Bradley Grose, Mayor
Matt Hare, Vice Mayor
Keith 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.
viii
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, 2018, 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, 2018, 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 the Financial Statements (Continued)
Change in Accounting Principle
As described in Note 17 to the financial statements, in 2018 the Town adopted new accounting
guidance, GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits
Other Than Pension. Our opinion is not modified with respect to this matter.
Report on Summarized Comparative Information
We have previously audited the Town’s 2017 financial statements, and in our report dated
November 15, 2017, we expressed unmodified opinions on those financial statements. The 2017
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, 2017, is consistent, in all
material respects, with the audited financial statements from which it has been derived. Because
information to restate prior years in relation to GASB 75, discussed above, is not readily available, the
comparative information has not been restated.
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.
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
November 15, 2018 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, 2018
4a
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, 2018. 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 v 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 $14,012,544 (net
position). Of this amount, $2,290,645 (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 $620,575. This increase is largely due to total
expenses of $11,104,561 being less than total revenues of $11,725,136. However, a decrease
of $1,450,832 (21.64%) in current and other assets occurred. Capital assets decreased by
$1,087,347 with the final result being a decrease of 5.25%in total assets.
On the other hand, long-term liabilities decreased by $812,515 (6.32%), mostly due to
decrease in net pension liability.Other liabilities increased by $188,863 (19.75%)which was
an increase in accounts payable and related liabilities and in accrued payroll and related
liabilities due to end of year timing.
Deferred Outflows decreased $408,826 (37.46%) and Deferred Inflows increased $474,198
(60.38%) due to the net difference between projected and actual earnings on plan investments.
The final result of all these effects is a 0.75% increase in net position.
As of the close of the current fiscal year, the Town’s governmental fund reported an ending
fund balance of $3,222,506, an increase of $422,544 in comparison with the prior year. This is
mostly due to an increase of $117,917 (54.5%) in accounts payable. In addition, deferred
inflows increased by $24,814 (2.38%).
Approximately 83.03% of the ending governmental fund balance, $2,675,654 is available for
spending at the Town’s discretion (unassigned fund balance), and represents 34.52% 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.
4b
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.
4c
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 $14,012,544 at the close of the most recent fiscal year.
By far the largest portion of the Town’s net position (80.71%) 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 $4,893,387 $4,306,230 $3,263,231 $2,399,556 $8,156,618 $6,705,786
Capital assets 9,058,492 9,507,841 10,553,850 11,191,848 19,612,342 20,699,689
Total assets 13,951,879 13,814,071 13,817,081 13,591,404 27,768,960 27,405,475
Deferred outflows
of resources 477,791 799,612 204,761 291,766 682,552 1,091,378
Current and other liabilities 621,099 483,828 523,898 472,306 1,144,997 956,134
Long-term liabilities 5,241,976 5,830,980 6,792,430 7,015,941 12,034,406 12,846,921
Total liabilities 5,863,075 6,314,808 7,316,328 7,488,247 13,179,403 13,803,055
Deferred inflows
of resources 1,137,883 757,328 121,682 28,039 1,259,565 785,367
Net investment in capital
assets 6,548,322 6,638,792 4,760,652 4,862,273 11,308,974 11,501,065
Restricted 412,925 132,387 -- 412,925 132,387
Unrestricted 467,465 770,368 1,823,180 1,504,611 2,290,645 2,274,979
Total net position $7,428,712 $7,541,547 $6,583,832 $6,366,884 $14,012,544 $13,908,431
Unrestricted net position of $2,290,645 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 $351,981, when
including the restated net position in Note 17.
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.
4d
Government-wide Financial Analysis (Continued)
The Town’s Changes in Net Position
Governmental Business-Type
Activities Activities Total
Revenues
Program revenues
Charges for services $709,926 $769,199 $3,354,057 $3,398,582 $4,063,983 $4,167,781
Operating grants and
contributions 1,539,975 1,666,789 - - 1,539,975 1,666,789
Capital grants and
contributions 84,184 408,362 - - 84,184 408,362
General revenues
Property taxes 684,319 697,622 - - 684,319 697,622
Other taxes 4,191,215 4,232,122 - - 4,191,215 4,232,122
Intergovernmental revenue
unrestricted 770,645 773,690 - - 770,645 773,690
Investment earnings 25,780 19,406 8,152 2,266 33,932 21,672
Other 57,781 66,305 299,102 338,118 356,883 404,423
Gain (Loss) on Sale - - - - - -
Total revenues 8,063,825 8,633,495 3,661,311 3,738,966 11,725,136 12,372,461
Expenses
General government 962,685 992,699 - - 962,685 992,699
Public safety 3,686,891 3,926,763 - - 3,686,891 3,926,763
Public works 1,893,248 2,011,469 - - 1,893,248 2,011,469
Parks, recreation, and
cultural 517,122 591,208 - - 517,122 591,208
Community development 416,637 479,973 - - 416,637 479,973
Interest on long-term
debt 94,963 106,756 - - 94,963 106,756
Water and sewer - - 3,279,827 3,088,256 3,279,827 3,088,256
Stormwater management - - 253,188 419,957 253,188 419,957
Total expenses 7,571,546 8,108,868 3,533,015 3,508,213 11,104,561 11,617,081
Excess of revenues
Other Financing Sources (Uses)
Transfers in (out)(140,298)(219,978)140,298 219,978 - -
Total Other Financing
Sources (Uses)(140,298)(219,978)140,298 219,978 - -
Change in net position 351,981 304,649 268,594 450,731 620,575 755,380
–July 1 (Restated)7,076,731 7,236,898 6,315,238 5,916,153 13,391,969 13,153,051
–June 30 $7,428,712 $7,541,547 $6,583,832 $6,366,884 $14,012,544 $13,908,431
4e
Government-wide Financial Analysis (Continued)
Expenses and Program Revenues –Governmental Activities
Revenues by Source –Governmental Activities
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
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
1%
Property taxes
8%
Other taxes
52%
Intergovernmental
revenue unrestricted
10%
Investment earnings
0%
Other
1%
4f
Government-wide Financial Analysis (Continued)
Business-type activities –Business-type activities increased the Town’s net position by $268,594, when
including the restated net position in Note 17. The last increase by the Town was effective July 1, 2015
with a rate of 8.9%. There was no increase in the last three fiscal years.
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
$3,222,506, an increase of $422,544 in comparison with the prior year. This is partly due to an increase in
deferred inflows of $24,814 (2.38%) and largely due to an increase in accounts payable and accrued
liabilities of $117,917 (51.12%) and an increase in accrued payroll and related liabilities of $26,560
(12.54%).Accounts payable and accrued liabilities, accrued payroll and related liabilities, and unearned
revenue increased by $139,799 (30.04%); this increase was due to a large accounts payable carried into
the next year for fiscal year 2018 street paving.
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 $1,893,051.
Unrestricted net position of the Stormwater Management Department at the end of the year was deficit
$69,871. 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 $616,912
primarily due to carryover grants included in Categorical Aid amounting to $533,565. Another component
of the variance from budget includes $34,531 in charges for services and $42,417 in other local taxes.
There was a decrease in revenue in Fee for Transport, and less revenue than anticipated from the War
Memorial and Senior Center Rentals.The Town of Vinton experienced less than anticipated collections
in consumer’s utility tax, which resulted in a shortfall in the other local taxes category.
Differences between the original budget and the final amended budget for expenditures were $715,189
with the majority being primarily due to decreased spending in the public works department than
anticipated expenditures.
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 96.79% 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 other local taxes of $42,417 or 1.00%. This was primarily due to a decrease in
Consumer’s Utility Tax from anticipated budget, a shortfall of $16,668 or 2.25%. The Consumer’s Utility
Tax is generated by fees relating to cable, phone, and other utility services.
4g
General Fund Budgetary Highlights (Continued)
Cigarette tax collection historically has decreased within Town limits as a result of $0.20 increase in tax rate
effective July 2013. The tax rate was reduced by $0.15 in March 2014 to encourage buyers, but the market
has not fully recovered. The Town reduced the budget to match the trend in fiscal year 2018, and Cigarette
tax collection generated $10,020 or 6.07% above budgeted estimate. However, one retailer in Town limits
removed cigarettes from retail during fiscal year 2019, and future revenues are anticipated to decrease as a
result of the change of the business.
For the most part, economic indicators such as sales tax, meals tax, and business license tax reflect very
favorable collection.
All expenditures by budget functions have favorable variances due to concerted efforts of all
departments to control and minimize expenditures.The transfer to the Stormwater Fund was reduced
$73,000 from anticipated budget, and was a major component of the favorable balance in the General
Fund.
The Stormwater Management Fund was created last fiscal 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 fund transfer
to the stormwater fund to cover expenditures.
In 2018, the Town of Vinton adopted GASB Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions. The overall effect of this new standard is to reflect the
Town’s long-term other postretirement benefit (“OPEB”) obligations directly in the financial statements.
Under previous accounting guidance, these amounts were recorded incrementally over time, but were not
recognized in their entirety. Instead, the total liability which has now been recorded, was only disclosed.
The new standard not only changes certain measurement methodologies, but also requires certain new
disclosures and that the Town record a net OPEB liability directly on the statement of net position. Beginning
net position has been restated as discussed in Note 17, and this has had a significant impact on the Town’s
net position. However, because similar information has been disclosed in prior years, both in the notes to
the financial statements and in required supplementary information, the effect of this new standard is not
expected to negatively affect how most governmental entities are viewed by sophisticated readers of their
financial statements. Because information to restate prior years is not readily available, the prior year
comparative information included in this discussion and analysis has not been restated.
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, 2018, amounts to $19,612,342 (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 5.259% (a 4.73%
decrease for governmental activities and a 5.70% decrease for business-type activities). Additional
information on the Town’s capital assets can be found in Note 5 of this report.
4h
Capital Asset and Debt Administration (Continued)
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 4,747,664 5,019,401 7,711,634 8,183,663 12,459,298 13,203,064
Infrastructure 1,934,831 1,880,757 - - 1,934,831 1,880,757
Improvements other than
buildings - - 2,285,350 2,429,311 2,285,350 2,429,311
Machinery and equipment 336,827 435,380 463,268 485,599 800,095 920,979
Construction in progress 207,137 340,270 12,846 12,523 219,983 352,793
Total $9,058,492 $9,507,841 $10,553,850 $11,191,848 $19,612,342 $20,699,689
Long-term debt –At the end of the current fiscal year, the Town had total debt outstanding of $9,453,756.
Of this amount, $6,862,946 comprises debt backed by the full faith and credit of the government, $1,852,000
is related to revenue bond obligations, and $738,810 is related to capital leases.
The Town’s Outstanding Debt
General Obligation and Capital Leases
General obligation bonds $2,617,814 $2,919,146 $3,789,564 $4,175,676 $6,407,378 $7,094,822
Revenue bonds - - 1,852,000 2,011,000 1,852,000 2,011,000
Other obligations 203,036 266,576 252,532 266,363 455,568 532,939
Capital leases 240,612 54,837 498,198 - 738,810 54,837
$3,061,462 $3,240,559 $6,392,294 $6,453,039 $9,453,756 $9,693,598
The Town’s total debt decreased by $239,842, or 2.47%, 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 Town experienced an unexpected increase in sales tax at the end
of year, as well as reduced costs in stormwater management that resulted in a favorable variance for the
budget year.
4i
Economic Factors and Next Year’s Budgets and Rates (Continued)
The unemployment rate for Roanoke County (no statistics are available for the Town
individually) as of June 30, 2018 is 3.40%, which is a decrease from last year’s rate of 3.70%.
This is comparable to the state’s average unemployment rate as of June 30, 2018 of 3.20%
and to the national average rate of 4.0%.
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.
No real property tax increase for calendar year 2018, but a reassessment increase in real estate
values slightly increased the tax levy.
During the current fiscal year, the unassigned fund balance in the general fund increased by $97,461. The
general fund remains strong with an ending unassigned fund balance of $2,675,654. It is intended that
this available fund balance will be used for future needs of the Town.
Requests for Information
This financial report is designed to provide a general overview of the Town’s finances for all those with an
interest in the government’s finances. Questions concerning any of the information provided in this report
or requests for additional financial information should be addressed to the Finance Department/Treasurer’s
Office, Town of Vinton, 311 S. Pollard Street, Vinton, Virginia 24179.
5
BASIC
FINANCIAL STATEMENTS
EXHIBIT 1
Governmental
Business-
Type
(For Comparison
Only)
Activities Activities 2018 2017
ASSETS
Cash and cash equivalents (Note 2)3,610,785$ 2,036,547$ 5,647,332$ 4,617,321$
Receivables, net (Note 3)400,797 628,839 1,029,636 1,023,151
Due from other governmental units (Note 4)449,644 - 449,644 776,207
Inventories 2,331 47,560 49,891 51,394
Prepaids 63,666 17,094 80,760 80,541
Loans receivable 69,126 - 69,126 84,134
297,038 533,191 830,229 73,038
Capital assets: (Note 5)
Nondepreciable 2,039,170 93,598 2,132,768 2,265,578
Depreciable, net 7,019,322 10,460,252 17,479,574 18,434,111
Total assets 13,951,879 13,817,081 27,768,960 27,405,475
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 110,013 111,074 221,087 249,762
329,429 89,426 418,855 841,616
Deferred outflows related to other postemployment
benefits (Note 8 and 9)38,349 4,261 42,610 -
Total deferred outflows of resources 477,791 204,761 682,552 1,091,378
LIABILITIES
Accounts payable and accrued liabilities 348,592 379,051 727,643 556,455
Accrued payroll and related liabilities 238,361 50,789 289,150 259,508
Accrued interest payable 15,927 49,958 65,885 74,274
Customer security deposits - 44,100 44,100 43,000
Unearned revenue 18,219 - 18,219 22,897
Long-term liabilities:
Net pension liability (Note 7)1,109,980 301,310 1,411,290 2,497,573
Net other post employment
benefit liability (Note 8 and 9)667,012 73,989 741,001 190,964
Due within one year (Note 6)531,135 622,915 1,154,050 1,110,687
Due in more than one year (Note 6)2,933,849 5,794,216 8,728,065 9,047,697
Total liabilities 5,863,075 7,316,328 13,179,403 13,803,055
DEFERRED INFLOWS OF RESOURCES
Property taxes 663,409 - 663,409 645,383
Deferred inflows related to pensions (Note 7)430,607 116,891 547,498 139,984
Deferred inflow related to other postemployment
benefits (Note 8 and 9)43,867 4,791 48,658 -
Total deferred inflows of resources 1,137,883 121,682 1,259,565 785,367
NET POSITION
6,548,322 4,760,652 11,308,974 11,501,065
Public safety 155,323 - 155,323 132,387
Public works 257,602 - 257,602 -
Unrestricted 467,465 1,823,180 2,290,645 2,274,979
Restricted for:
Net investment in capital assets
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
June 30, 2018
Cash and cash equivalents, restricted (Note 2)
Deferred outflows related to pensions (Note 7)
The Notes to Financial Statements are an integral part of this statement.
6
EXHIBIT 2
Charges for
Capital Grants
Governmental
Comparison
Functions/Programs Expenses Services Contributions Contributions Activities Activities 2018 2017
Governmental activities
962,685$ 125,928$ 3,928$ -$ (832,829)$ (832,829)$ (871,045)$
Public safety 3,686,891 93,599 337,641 13,341 (3,242,310) (3,242,310) (3,316,605)
Public works 1,893,248 110,167 1,198,306 19,609 (565,166) (565,166) (642,739)
Parks, recreation, and cultural 517,122 373,927 - 1,234 (141,961) (141,961) (177,676)
Community development 416,637 6,305 100 50,000 (360,232) (360,232) (149,697)
Interest on long-term debt 94,963 - - - (94,963) (94,963) (106,756)
Total governmental activities 7,571,546 709,926 1,539,975 84,184 (5,237,461) (5,237,461) (5,264,518)
Business-type activities
Water and sewer 3,279,827 3,354,057 - - 74,230$ 74,230 310,326
Stormwater management 253,188 - - - (253,188) (253,188) (419,957)
Total business-type activities 3,533,015 3,354,057 - - (178,958) (178,958) (109,631)
Total 11,104,561$4,063,983$ 1,539,975$ 84,184$ (5,237,461) (178,958) (5,416,419) (5,374,149)
General revenues
Property taxes (Note 11)684,319 - 684,319 697,622
Sales tax 1,370,590 - 1,370,590 1,436,325
Meals tax 966,053 - 966,053 953,721
Utilities tax 756,225 - 756,225 755,985
Business license tax 482,003 - 482,003 500,713
Cigarette tax 175,020 - 175,020 178,125
Other local taxes 441,324 - 441,324 407,253
Unrestricted intergovernmental revenue 770,645 - 770,645 773,690
Unrestricted investment earnings 25,780 7,627 33,407 21,578
Restricted investment earnings - 525 525 94
Other 57,781 299,102 356,883 404,423
Transfers (Note 16)(140,298) 140,298 - -
Total general revenues 5,589,442 447,552 6,036,994 6,129,529
Change in net position 351,981 268,594 620,575 755,380
NET POSITION AT JULY 1, AS RESTATED (NOTE 17)7,076,731 6,315,238 13,391,969 13,153,051
NET POSITION AT JUNE 30 7,428,712$ 6,583,832$ 14,012,544$ 13,908,431$
General government administration
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF ACTIVITIES
Year Ended June 30, 2018
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
The Notes to Financial Statements are an integral part of this statement.
7
EXHIBIT 3
Comparison
2018 2017
ASSETS
Cash and cash equivalents 3,610,785$ 2,952,161$
Receivables, net 400,797 398,338
Due from other governmental units 449,644 776,207
Inventories 2,331 3,351
Prepaids 63,666 66,152
Loans receivable 69,126 84,134
Cash and cash equivalents, restricted 297,038 25,887
Total assets 4,893,387$ 4,306,230$
LIABILITIES
Accounts payable and accrued liabilities 348,592$ 230,675$
Accrued payroll and related liabilities 238,361 211,801
18,219 22,897
Total liabilities 605,172 465,373
DEFERRED INFLOWS OF RESOURCES
Deferred revenue 1,065,709 1,040,895
FUND BALANCES
Nonspendable 103,927 89,382
Restricted 412,925 132,387
Committed 30,000 -
Unassigned 2,675,654 2,578,193
Total fund balances 3,222,506 2,799,962
Total liabilities, deferred inflows of resources,
and fund balances 4,893,387$ 4,306,230$
Unearned revenue
General Fund
TOWN OF VINTON, VIRGINIA
BALANCE SHEET
GOVERNMENTAL FUND
June 30, 2018
The Notes to Financial Statements are an integral part of this statement.
8
EXHIBIT 4
(For
Comparison
Only)
2018 2017
Total Fund Balances – Governmental Fund 3,222,506$ 2,799,962$
are different because:
Capital assets used in governmental activities are not financial resources,
and, therefore, are not reported in the funds.
Governmental capital assets 19,222,618$
Less: accumulated depreciation (10,164,126)
9,058,492 9,507,841
Bond premiums are reported as revenues in the governmental funds,
Bond premiums total $(65,279) and accumulated amortization
is $45,920.(19,359) (21,637)
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are deferred in the funds.402,300 395,512
Financial statement elements related to other postemployment benefits and pensions
are applicable to future periods and, therefore, are not reported in the funds.
Deferred outflows related to:
Pensions 329,429
Other postemployment benefits 38,349
Deferred inflows related to:
Pensions (430,607)
Other postemployment benefits (43,867)
(1,109,980)
Net other postemployment benefits liability (667,012)
(1,883,688) (1,436,213)
Long-term liabilities are not due and payable in the current period and,
therefore, are not reported in the funds.
General obligation bonds, including unamortized deferred amounts (2,507,801)
(203,036)
(240,612)
Accrued interest payable (15,927)
Compensated absences (384,163)
(3,351,539) (3,703,918)
Total Net Position – Governmental Activities 7,428,712$ 7,541,547$
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:
TOWN OF VINTON, VIRGINIA
TO THE STATEMENT OF NET POSITION
June 30, 2018
Amounts reported for governmental activities in the statement of net position
General Fund
The Notes to Financial Statements are an integral part of this statement.
9
EXHIBIT 5
Comparison
Only)
2018 2017
REVENUES
General property taxes 685,924$ 677,609$
Other local taxes 4,182,822 4,227,337
Permits, privilege fees, and regulatory licenses 8,955 8,712
Fines and forfeitures 71,210 75,085
Revenues from use of money and property 148,433 136,695
Charges for services 377,369 418,042
Other 137,547 150,967
Gain sharing 567,201 552,764
Recovered costs 52,732 36,498
Non-categorical aid 402,537 416,105
Categorical aid 1,422,307 1,960,410
Total revenues 8,057,037 8,660,224
EXPENDITURES
Current:
General government administration 695,683 650,824
Public safety 3,703,343 3,649,236
Public works 1,775,465 1,749,305
Parks, recreation, and cultural 533,892 570,065
Community development 485,624 889,397
Capital projects 37,880 463,945
Debt service:
Principal retirement 436,699 535,374
Interest and fiscal charges 83,211 91,789
Bond issuance costs - -
Total expenditures 7,751,797 8,599,935
Excess of revenues over expenditures 305,240 60,289
OTHER FINANCING SOURCES (USES)
Proceeds from capital lease 257,602 -
Proceeds from sale of capital assets - 80,430
Transfers out (140,298) (219,978)
Total other financing sources (uses)117,304 (139,548)
Net change in fund balance 422,544 (79,259)
FUND BALANCE AT JULY 1 2,799,962 2,879,221
FUND BALANCE AT JUNE 30 3,222,506$ 2,799,962$
General Fund
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUND
Year Ended June 30, 2018
The Notes to Financial Statements are an integral part of this statement.
10
EXHIBIT 6
(For
Comparison
Only)
2018 2017
Net change in fund balance governmental fund 422,544$ (79,259)$
2,528 (1,261)
(449,349) (47,631)
6,788 (56,900)
225,055 31,526
Employer other postemployment benefit contributions $17,649
Other postemployment benefits expense (53,559)
(35,910) -
164,817 521,668
15,508 (63,494)
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, 2018
General Fund
Revenues in the statement of activities that do not provide current financial resources are not reported
as revenues in the funds.
Amounts reported for governmental activities in the statement of activities are different because:
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 $323,479 exceed pension
expense $98,424 in the current period.
The issuance of long-term debt provides current financial resources to governmental funds,while the
repayment of the principal of long-term debt consumes the current financial resources of governmental
funds.Neither transaction has any effect on net position.Also,governmental funds report premiums,
discounts,and similar items when debt is issued,whereas these amounts are deferred and amortized in
the statement of activities. This amount is the net effect of those differences.
Some items reported in the statement of activities do not require the use of current financial resources
and therefore are not reported as expenditures in governmental funds.These activities consist of a
decrease in compensated absences $15,508.
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 depreciation $(580,410)exceeded capital outlays $131,061 and the value of capital
assets disposed in the current period.
Governmental funds report employer other postemployment benefit contributions as expenditures.
However,in the statement of activities the cost of these benefits earned,net of employee contributions,
is reported as other postemployment benefit expense.
The Notes to Financial Statements are an integral part of this statement.
11
EXHIBIT 7
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
General property taxes 708,679$ 708,679$ 685,924$ (22,755)$
Other local taxes 4,225,239 4,225,239 4,182,822 (42,417)
Permits, privilege fees, and
regulatory licenses 10,750 10,750 8,955 (1,795)
Fines and forfeitures 78,700 78,700 71,210 (7,490)
Revenues from use of money
and property 152,000 152,000 148,433 (3,567)
Charges for services 411,900 411,900 377,369 (34,531)
Other 126,750 128,250 137,547 9,297
Gain sharing 552,000 552,000 567,201 15,201
Recovered costs 24,000 38,096 52,732 14,636
Non-categorical aid 408,535 412,463 402,537 (9,926)
Categorical aid 1,861,599 1,955,872 1,422,307 (533,565)
Total revenues 8,560,152 8,673,949 8,057,037 (616,912)
EXPENDITURES
Total expenditures 8,349,131 8,466,986 7,751,797 715,189
OTHER FINANCING SOURCES (USES)
Proceeds from capital lease - - 257,602 257,602
Proceeds from sale of capital assets 3,000 3,000 - (3,000)
Transfers out (214,021) (214,021) (140,298) 73,723
Net change in fund balance -$ (4,058)$ 422,544$ 426,602$
Budgeted Amounts
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL –
GENERAL FUND
Year Ended June 30, 2018
The Notes to Financial Statements are an integral part of this statement.
12
EXHIBIT 8
2017
Total Enterprise
Water and Sewer
Stormwater
Management Total Enterprise
(For Comparison
Only)
Current assets:
Cash and cash equivalents 2,027,154$ 9,393$ 2,036,547$ 1,665,160$
Receivables, net 628,839 - 628,839 624,813
Inventories 47,560 - 47,560 48,043
Prepaids 15,235 1,859 17,094 14,389
Cash and cash equivalents, restricted 533,191 - 533,191 47,151
Total current assets 3,251,979 11,252 3,263,231 2,399,556
Noncurrent assets:
Capital assets:
Nondepreciable 93,598 - 93,598 93,275
Depreciable, net 10,460,252 - 10,460,252 11,098,573
Total noncurrent assets 10,553,850 - 10,553,850 11,191,848
Total assets 13,805,829 11,252 13,817,081 13,591,404
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 111,074 - 111,074 123,191
Deferred outflows related to pensions (Note 7)73,509 15,917 89,426 168,575
Deferred outflows related to other postemployment
benefits (Note 8 and 9)3,314 947 4,261 -
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
96,086 20,805 116,891 28,039
NET POSITION
Business-Type Activities –
Enterprise Funds
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2018
2018
The Notes to Financial Statements are an integral part of this statement.
13
EXHIBIT 9
2017
Total Enterprise
Water and Sewer
Stormwater
Management Total Enterprise Only)
OPERATING REVENUES
Water service charges and fees 1,552,545$ -$ 1,552,545$ 1,567,715$
Sewer service charges and fees 1,749,192 - 1,749,192 1,774,446
Water/sewer penalties 52,320 - 52,320 56,421
Other revenue 299,102 - 299,102 338,118
Total operating revenues 3,653,159 - 3,653,159 3,736,700
OPERATING EXPENSES
Total operating expenses 3,110,964 253,188 3,364,152 3,324,056
Operating income (loss)542,195 (253,188) 289,007 412,644
NON-OPERATING REVENUE (EXPENSE)
Net non-operating expense (160,711) - (160,711) (181,891)
Income (loss) before transfers 381,484 (253,188) 128,296 230,753
TRANSFERS IN (OUT)
Change in net position 241,186 27,408 268,594 450,731
NET POSITION AT JULY 1, AS RESTATED (NOTE 17)
NET POSITION AT JUNE 30 6,653,703$ (69,871)$ 6,583,832$ 6,366,884$
2018
TOWN OF VINTON, VIRGINIA
Business-Type Activities –
Enterprise Fund
The Notes to Financial Statements are an integral part of this statement.
14
EXHIBIT 10
2017
Water and Sewer
Stormwater
Management Total Enterprise Total Enterprise
(For Comparison
Only)
OPERATING ACTIVITIES
Receipts from customers 3,351,131$ -$ 3,351,131$ 3,406,061$
Receipts from other sources 299,102 - 299,102 338,118
Payments to suppliers (1,262,191) (51,758) (1,313,949) (1,341,153)
Payments to employees (1,040,676) (240,399) (1,281,075) (1,152,101)
Net cash provided by (used in) operating activities 1,347,366 (292,157) 1,055,209 1,250,925
NONCAPITAL FINANCING ACTIVITIES
Transfers from (to) other funds (140,298) 280,596 140,298 219,978
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchases of capital assets (118,846) - (118,846) (272,663)
Principal paid on long-term liabilities (595,555) - (595,555) (543,289)
Proceeds from long-term liabilities 534,810 - 534,810 -
Interest paid (166,641) - (166,641) (181,582)
Net cash used in capital and related financing activities (346,232) - (346,232) (997,534)
INVESTING ACTIVITIES
Interest received on investments 8,152 - 8,152 2,266
Net increase (decrease) in cash and cash equivalents
CASH AND CASH EQUIVALENTS
Beginning at July 1 1,691,357 20,954 1,712,311 1,236,676
Ending at June 30 2,560,345$ 9,393$ 2,569,738$ 1,712,311$
RECONCILIATION TO EXHIBIT 8
Cash and cash equivalents 2,027,154$ 9,393$ 2,036,547$ 1,665,160$
Cash and cash equivalents, restricted 533,191 - 533,191 47,151
2,560,345$ 9,393$ 2,569,738$ 1,712,311$
Reconciliation of operating income to net cash
provided by (used in) operating activities
Operating income (loss)542,195$ (253,188)$ 289,007$ 412,644$
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation 766,804 - 766,804 721,776
Pension expense net of employer contributions (3,624) (27,329) (30,953) 7,126
Other postemployment benefit expense net of
employer contributions 3,372 341 3,713 4,591
Change in certain assets and liabilities:
(Increase) decrease in:
Receivables, net (4,026) - (4,026) 2,879
Inventories 483 - 483 23,212
Prepaids (3,497) 792 (2,705) 39,339
Increase (decrease) in:
Accounts payable and accrued liabilities 46,231 (2,596) 43,635 28,616
Accrued payroll and related liabilities 6,969 (3,887) 3,082 19,230
Customer security deposits 1,100 - 1,100 4,600
Compensated absences (8,641) (6,290) (14,931) (13,088)
Net cash provided by (used in) operating activities 1,347,366$ (292,157)$ 1,055,209$ 1,250,925$
NONCASH CAPITAL AND RELATED FINANCING
Capital asset purchases included in accounts payable 37,865$ -$ 37,865$ 28,229$
Capitalized interest 323$ -$ 323$ 13,289$
2018
TOWN OF VINTON, VIRGINIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Year Ended June 30, 2018
Business-Type Activities –
Enterprise Fund
The Notes to Financial Statements are an integral part of this statement.
15
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
16
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 $173,173 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
$55,964 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 $434,390 in the current year. Separate financial statements are
not available.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
17
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, 2018
(Continued)
18
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, 2018
(Continued)
19
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, 2018
(Continued)
20
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 $117,855 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 cost.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, 2018
(Continued)
21
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 are recorded 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 that present net position report a separate section for deferred
outflows of resources. These items represent a consumption of net position that applies to future
periods and so will not be recognized as an outflow of resources (expense) until then.
In addition to liabilities, the statements that present financial position report a separate section for
deferred inflows or resources. These items represent 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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
22
Note 1.Summary of Significant Accounting Policies (Continued)
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 $323 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 and Other Postemployment Benefits (OPEB)
For purposes of measuring all financial statement elements relating to pension and OPEB plans,
information about the fiduciary net position of the Town’s Plans and the additions to/deductions
from the Town’s Plan’s net fiduciary net 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.
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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
23
Note 1.Summary of Significant Accounting Policies (Continued)
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.
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
In November 2017, Council amended the General Fund Reserve Policy and kept a General Fund
Reserve target equal to 2 months of discretionary General Fund revenues.
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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
24
Note 1.Summary of Significant Accounting Policies (Continued)
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.
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 five years from the date of purchase, with different requirements
placed on different investment types.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
25
Note 2.Deposits and Investments (Continued)
Investments (Continued)
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.
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 $746,241 of unspent lease proceeds, $44,500 of
utility deposits, $36,749 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, 2018
(Continued)
26
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, 2018
(Continued)
27
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 340,270 89,399 (222,532)- 207,137
Total capital assets, not depreciated 2,172,303 89,399 (222,532)- 2,039,170
Capital assets, depreciated
Buildings and improvements 9,487,764 - (2,677)- 9,485,087
Machinery and equipment 4,462,070 41,662 (224,409)- 4,279,323
Infrastructure 3,196,506 222,532 - - 3,419,038
Total capital assets, depreciated 17,146,340 264,194 (227,086)- 17,183,448
Less accumulated depreciation for:
Buildings and improvements 4,468,363 271,737 (2,677)- 4,737,423
Machinery and equipment 4,026,690 140,215 (224,409)- 3,942,496
Infrastructure 1,315,749 168,458 - - 1,484,207
Total accumulated depreciation 9,810,802 580,410 (227,086)- 10,164,126
Total capital assets, depreciated, net 7,335,538 (316,216)- - 7,019,322
Governmental activities
capital assets, net $9,507,841 $(226,817)$(222,532)$- $9,058,492
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
28
Note 5.Capital Assets (Continued)
Beginning Ending
Capital assets, not depreciated
Land $80,752 $- - $80,752
Construction in progress 12,523 323 - 12,846
Total capital assets, not depreciated 93,275 323 - 93,598
Capital assets, depreciated
Utility plant 20,653,509 65,217 (1,300,739)19,417,987
Sewage treatment contract 4,111,373 - - 4,111,373
Machinery and equipment 1,631,269 63,266 (27,438)1,667,097
Total capital assets, depreciated 26,396,151 128,483 (1,328,177)25,196,457
Less accumulated depreciation for:
Utility plant 12,469,846 537,246 (1,300,739)11,706,353
Sewage treatment contract 1,682,062 143,961 - 1,826,023
Machinery and equipment 1,145,670 85,597 (27,438)1,203,829
Total accumulated depreciation 15,297,578 766,804 (1,328,177)14,736,205
Total capital assets, depreciated, net 11,098,573 (638,321 - 10,460,252
Business-type activities
capital assets, net $11,191,848 $(637,998 - $10,553,850
Depreciation expense was charged to functions/programs of the primary government as follows:
Construction Commitments
The Town has no active construction projects as of June 30.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
29
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 $2,919,146 $- $(301,332)$2,617,814 $306,059
Obligation payable –
Roanoke County 222,000 - (55,500)166,500 55,500
Obligation payable –
44,576 - (8,040)36,536 8,240
Capital leases 54,837 257,602 (71,827)240,612 34,603
Compensated absences 399,671 109,064 (124,572)384,163 126,733
Business-type
General obligation bonds $4,175,676 $- $(386,112) $3,789,564 $362,139
Revenue bonds 2,011,000 - (159,000) 1,852,000 165,000
Obligation payable –
266,363 - (13,831)252,532 14,922
Bond Premiums 4,327 - (3,710)617 -
Capital leases - 534,810 (36,612)498,198 74,557
Compensated absences 39,151 - (14,931)24,220 6,297
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
30
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
2019 306,059 $63,083 $34,603 $5,640 $63,740 $823
2020 326,522 55,643 35,449 4,794 63,944 619
2021 330,638 47,801 36,316 3,927 64,152 409
2022 339,387 39,635 37,204 3,039 8,868 194
2023 343,733 31,407 38,114 2,129 2,332 14
2024-2027 971,475 47,907 58,926 1,408 --
2,617,814 $285,476 $240,612 $20,937 $203,036 $2,059
Business-type Activities
General Obligation
Bonds Revenue Bonds
Obligation Payable
WVWA
Fiscal
Year Principal Interest Principal Interest Principal Interest
2019 362,139 $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 392,524 66,708 186,000 21,863 16,383 4,328
2024-2028 1,400,843 165,837 971,000 50,901 87,915 15,642
2029-2033 526,183 40,145 - - 86,395 4,801
$3,789,564 $654,521 $1,852,000 $197,952 $252,532 $45,778
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
31
Note 6.Long-Term Liabilities (Continued)
Capital Leases
Fiscal
Year Principal Interest
2019 74,557 $11,604
2020 76,367 9,794
2021 78,222 7,939
2022 80,121 6,039
2023 77,155 4,094
2024-2025 111,776 2,728
$498,198 $42,198
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, 2018 was 1.73. Statistical Section Table 11 presents the pledged revenue coverage
ratio.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
32
Note 6.Long-Term Liabilities (Continued)
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 $425,000 $-
Virginia Revolving Loan Fund:
G.O. Water and Sewer Bonds 3.30%07/24/03 07/01/24 1,250,704 - 508,044
G.O. Water and Sewer Bonds 3.10%10/01/04 10/01/26 2,479,000 - 1,278,261
G.O. Water and Sewer Bonds 3.10%01/12/06 03/01/26 1,210,000 - 585,145
Virginia Association of Counties:
G.O. Refunding Bonds 2.05%05/25/16 02/01/27 702,000 626,000 -
Capital One Public Funding:
G.O. Public Improvement Bonds 2.85%06/27/13 11/01/32 1,993,152 - 1,414,114
Carter Bank and Trust:
G.O. Refunding Bonds 2.05%06/27/13 11/01/24 2,228,409 1,566,814 -
2,617,814 3,789,564
Plus bond premium, net of amortization 19,359 -
$2,637,173 $3,789,564
Revenue Bonds
Virginia Association of Counties:
Revenue Water and Sewer Bonds 2.05%05/25/16 08/01/27 $1,786,000 $ - $1,717,000
Revenue Water and Sewer Bonds 3.50-5.00%12/19/07 08/01/18 2,750,000 - 135,000
1,852,000
Plus bond premium, net of amortization - 617
$- $1,852,617
Capital Lease
U.S. Bancorp 2.29%12/29/17 12/29/22 $46,171 $- $41,788
U.S. Bancorp 2.43%12/29/17 12/29/24 746,241 240,612 456,410
$240,612 $498,198
Obligations Payable
Roanoke County 0.00%07/01/11 07/01/20 $625,000 $166,500 $-
RCACP 2.46%12/31/13 09/30/22 73,180 36,536 -
WVWA 2.35%03/01/15 09/01/32 294,516 - 252,532
$203,036 $252,532
TOWN OF VINTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
33
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 the VRS Retirement Plan upon employment. This multi-employer agent
plan is administered by the Virginia Retirement System (the “VRS”) 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 VRS 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 and have not taken a refund.
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. 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
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
34
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 of eligible political subdivision hazardous duty
employees 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
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
35
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.
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. Members also may be eligible to purchase periods of leave without
pay.
TOWN OF VINTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
36
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.
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. Hazardous
duty employees are the 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.
TOWN OF VINTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
37
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Plan 2 (Continued)
Cost-of-Living Adjustment (COLA) in Retirement (Continued)
o Exceptions to COLA Effective Dates –Same as Plan 1.
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
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
38
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
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
39
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 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 1 and 2.
o Exceptions to COLA Effective Dates –Same as Plan 1 and 2.
TOWN OF VINTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
40
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 1, with the following exceptions:
Hybrid Retirement Plan members are ineligible for ported service.
o Defined Contribution Component –Not Applicable.
Employees Covered by Benefit Terms
As of the June 30, 2016 actuarial valuation, the following employees were covered by the benefit
terms of the pension plan:
Number
Inactive members or their beneficiaries currently receiving benefits 64
Inactive members:
Vested inactive members 21
Non-vested inactive members 20
Inactive members active elsewhere in VRS 58
Total inactive members 99
Active members 82
Total covered employees 245
TOWN OF VINTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
41
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, 2018
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 $411,289 and
$393,323 for the years ended June 30, 2018 and June 30, 2017, respectively.
Net Pension Liability
The political subdivision’s net pension liability was measured as of June 30, 2017. The total pension
liability used to calculate the net pension liability was determined by an actuarial valuation performed
as of June 30, 2016, using updated actuarial assumptions, applied to all periods included in the
measurement and rolled forward to the measurement date of June 30, 2017.
TOWN OF VINTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
42
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, 2016, 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, 2017.
Inflation 2.50%
General Employees –Salary increases,
including inflation
3.50 –5.35%
Public Safety Employees with hazardous
duty benefits –Salary 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 –15 to 20% of deaths are assumed to be service related. Public
Safety Employees –70% of deaths are assumed to be service related. Mortality is projected using the
applicable RP-2014 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, 2016 valuation were based on the results of an
actuarial experience study for the period from July 1, 2012 through June 30, 2016. Changes to the
actuarial assumptions as a result of the experience study are as follows:
General Employees –Largest 10 –Non-Hazardous Duty and All Others (Non 10 Largest):
Update mortality table; lowered retirement rates at older ages, changed final retirement from 70
to 75; lowered disability rates, no change to salary scale, increased rate of line of duty disability
from 14% to 20%.
Public Safety Employees –Largest 10 –Hazardous Duty and All Others (Non 10 Largest):
Update mortality table; adjustment to rates of retirement by increasing rate at 50 and lowering
rate at older ages; adjusted rates of withdrawal and disability to better fit experience; changes to
line of duty rates, and no changes to salary scale.
TOWN OF VINTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
43
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
Public Equity 40.00 %4.54 %1.82 %
Fixed Income 15.00 0.69 0.10
Credit Strategies 15.00 3.96 0.59
Real Assets 15.00 5.76 0.86
Private Equity 15.00 9.53 1.43
Total 100.00 %4.80 %
Inflation 2.50 %
*Expected arithmetic nominal return 7.30 %
*The above allocation provides for a one-year return of 7.30%. However, one-year returns do
not take into account the volatility present in each of the asset classes. In setting the
long-term expected rate of return for the system, stochastic projections are employed to
model future returns under various economic conditions. The results provide a range of
returns over various time periods that ultimately provide a median return of 6.83%, including
expected inflation of 2.5%.
TOWN OF VINTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
44
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, 2016, 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, 2019 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, 2016 $17,588,951 $15,091,378 $2,497,573
Changes for the year:
Service cost 443,567 - 443,567
Interest 1,197,526 - 1,197,526
Changes of assumptions 8,604 - 8,604
Differences between expected
and actual experience - (356,343)
Contributions –employer - 393,323 (393,323)
Contributions –employee - 177,392 (177,392)
Net investment income - 1,821,216 (1,821,216)
Benefit payments, including refunds
of employee contributions (962,861)(962,861)-
Administrative expenses - (10,681)10,681
Other changes - (1,613)1,613
Net changes 330,493 1,416,776 (1,086,283)
Balances at June 30, 2017 $17,919,444 $16,508,154 $1,411,290
TOWN OF VINTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
45
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 $3,674,739 $1,411,290 $(469,322)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended June 30, 2018, the political subdivision recognized pension expense of $148,064.
At June 30, 2018, 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 $1,830 $315,606
Change in assumptions 5,736 -
on pension plan investments - 231,892
Employer contributions subsequent to the
measurement date 411,289 -
Total $418,855 $547,498
TOWN OF VINTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
46
Note 7.Defined Benefit Pension Plan (Continued)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions (Continued)
The $411,289 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, 2019. 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
2019 $(329,632)
2020 (57,712)
2021 3,207
2022 (155,795)
2023 -
Thereafter -
Pension Plan Data
Information about the VRS Political Subdivision Retirement Plans is also available in the separately
issued VRS 2017 Comprehensive Annual Financial Report (CAFR). A copy of the 2017 VRS CAFR
may be downloaded from the VRS website at http://www.varetire.org/Pdf/Publications/2017-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, 2018, approximately $51,627 was payable to the Virginia Retirement System for the
legally required contributions related to June 2018 payroll.
TOWN OF VINTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
47
Note 8.Other Postemployment Benefits Liability –Local Plan
Plan Description and Benefits Provided
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.
Employees Covered by Benefit Terms
As of the January 1, 2018 actuarial valuation, the following employees were covered by the benefit
terms of the plan:
Number
Inactive employees or beneficiaries 1
Active plan members 87
88
TOWN OF VINTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
48
Note 8.Other Postemployment Benefits Liability –Local Plan (Continued)
Total OPEB Liability
The Town’s total OPEB liability of $442,003 was measured as of June 30, 2018 and was determined
based on an actuarial valuation performed as of January 1, 2018.
Actuarial Assumptions and other inputs
The total OPEB liability was determined using the following assumptions, applied to all periods
included in the measurement, unless otherwise specified:
Inflation 2.50%
Salary increases, including inflation 3.50%
dependent on years of service
Healthcare cost trend rates 3.70%initially, grading up to 4.20% ultimately
Retirees’ share of benefit-related costs $8,800
Mortality rates: Ranges from 0.00016 to 0.07979
The actuarial assumptions used in the January 1, 2018 valuation were based on the results of an
actuarial VRS experience over the four-year period ending June 30, 2016.
Changes in assumptions and other inputs reflect plan changes, effect of economic/demographic gains
or losses, and effect of assumptions changes or inputs.
Changes in the Total OPEB Liability
Balance at June 30, 2017 $405,504
Changes for the year:
Service cost 49,307
Interest 15,730
Assumption or other input changes (17,718)
Benefit payments (10,820)
Net changes 36,499
Balance at June 30, 2018 $442,003
TOWN OF VINTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
49
Note 8.Other Postemployment Benefits Liability –Local Plan (Continued)
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the Town, as well as what the Town’s total OPEB
liability would be if it were calculated using a discount rate that is one percentage point lower
(2.87%) or one percentage point higher (4.87%) than the current discount rate:
Current
1.00%Discount 1.00%
Decrease
(2.87%)
Rate
(3.87%)
Increase
(4.87%)
Total OPEB liability $490,797 $442,003 $396,550
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB liability of the Town, as well as what the Town’s total OPEB
liability would be if it were calculated using healthcare cost trend rates that are one percentage point
lower (2.70%) or one percentage point higher (4.70%)than the current healthcare cost trend rates:
Current
1.00%
Healthcare
Cost Trend 1.00%
Decrease
(2.70%)
Rates
(3.70%)
Increase
(4.70%)
Total OPEB liability $367,606 $442,003 $534,402
TOWN OF VINTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
50
Note 8.Other Postemployment Benefits Liability –Local Plan (Continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to OPEB
For the year ended June 30, 2018, the Town recognized OPEB expense of $62,977. At
June 30, 2018, the political subdivision reported deferred outflows of resources and deferred inflows
of resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Change in assumptions $- $15,658
Total $- $15,658
The $-0-reported as deferred outflows of resources related to OPEB resulting from the Town’s
contributions subsequent to the measurement date will be recognized as a reduction of the OPEB
Liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Increase
(Reduction)
Year Ending to OPEB
June 30,Expense
2019 $(2,060)
2020 (2,060)
2021 (2,060)
2022 (2,060)
2023 (2,060)
Thereafter (5,358)
TOWN OF VINTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
51
Note 9.Other Postemployment Benefits Liability –Virginia Retirement System Plans
In addition to their participation in the pension plans offered through the Virginia Retirement System
(VRS), the Town also participates in a cost-sharing and agent multi-employer other postemployment
benefit plan, described as follows.
Plan Description
Group Life Insurance Program
All full-time employees of political subdivisions are automatically covered by the VRS Group
Life Insurance (GLI) Program upon employment.
In addition to the Basic Group Life Insurance Benefit, members are also eligible to elect
additional coverage for themselves as well as a spouse or dependent children through the
Optional Group Life Insurance Program. For members who elect the optional group life
insurance coverage, the insurer bills employers directly for the premiums. Employers deduct
these premiums from members’ paychecks and pay the premiums to the insurer. Since this is a
separate and fully insured program, it is not included as part of the GLI Program OPEB.
Specific information for the GLI is available at https://www.varetire.org/members/benefits/life-
insurance/basic-group-life-insurance.asp
The GLI is administered by the VRS along with pensions and other OPEB plans, for public
employer groups in the Commonwealth of Virginia. This plan is considered a multiple employer,
cost sharing plan.
Contributions
Contributions to the VRS OPEB program were based on actuarially determined rates from an
actuarial valuation as of June 30, 2015. The actuarially determined rates were expected to finance
the cost of benefits earned by employees during the year, with an additional amount to fund any
unfunded accrued liability. Specific details related to the contributions for the VRS OPEB program is
as follows:
Group Life Insurance Program
Governed by:Code of Virginia 51.1-506 and 51.1-508 and may
be impacted as a result of funding provided to
school divisions and governmental agencies by
the Virginia General Assembly.
Total rate:1.31% of covered employee compensation. Rate
allocated 60/40; 0.79% employee and 0.52%
employer. Employers may elect to pay all or part
of the employee contribution.
June 30, 2018 Contribution $19,610
June 30, 2017 Contribution $19,078
TOWN OF VINTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
52
Note 9.Other Postemployment Benefits Liability –Virginia Retirement System Plans (Continued)
OPEB Liability, OPEB Expense and Deferred Inflows and Outflows of Resources Related to
OPEB
The net OPEB liability was measured as of June 30, 2017 and the total OPEB liability used to
calculate the net OPEB liability was determined by an actuarial valuation as of that date. The covered
employer’s proportion of the net OPEB liability was based on the covered employer’s actuarially
determined employer contributions for the year ended June 30, 2017 relative to the total of the
actuarially determined employer contributions for all participating employers.
Group Life Insurance Program
June 30, 2018 proportionate share of
liability $299,000
June 30, 2017 proportion 0.01989%
June 30, 2016 proportion 0.01834%
June 30, 2018 expense $7,000
Since there was a change in proportionate share between measurement dates, a portion of the OPEB
expense above was related to deferred amount from changes in proportion.
At June 30, 2018, the Town reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources.
Group Life Insurance Program
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $- $7,000
Change in assumptions - 15,000
OPEB plan investments - 11,000
Changes in proportion 23,000 -
Employer contributions subsequent to the
measurement date -
Total $42,610 $33,000
TOWN OF VINTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
53
Note 9.Other Postemployment Benefits Liability –Virginia Retirement System Plans (Continued)
The deferred outflows of resources related to OPEB resulting from the Town’s contributions
subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the
year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred
inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Group Life Insurance Program
Increase
(Reduction)
Year Ending to OPEB
June 30,Expense
2019 $(3,000)
2020 (3,000)
2021 (3,000)
2022 (1,000)
2023 -
Thereafter -
Actuarial Assumptions and Other Inputs
The total OPEB liability was determined using the following assumptions based on an actuarial
valuation date of June 30, 2016, applied to all periods included in the measurement and rolled
forward to the measurement date of June 30, 2017:
Inflation 2.5%
Salary increases, including inflation:
Locality-general employees
Locality –hazardous duty
employees
3.5 –5.35%
3.5 –4.75%
Healthcare cost trend rates:
Under age 65
Ages 65 and older
7.75 –5.00%
5.75 –5.00%
Investment rate of return, net of expenses,
including inflation*
GLI: 7.0%
TOWN OF VINTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
54
Note 9.Other Postemployment Benefits Liability –Virginia Retirement System Plans (Continued)
Actuarial Assumptions and Other Inputs (Continued)
*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 percent above. However, since the difference was minimal, and a more conservative
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 the percent noted above to simplify preparation of OPEB liabilities.
Mortality rates used for the various VRS OPEB plans are the same as those used for the actuarial
valuations of the VRS pension plans. The mortality rates are discussed in detail at Note 7.
Net OPEB Liability
The net OPEB liabilities represent each program’s total OPEB liability determined in accordance with
GASB Statement No. 74, less the associated fiduciary net position. As of June 30, 2017, net OPEB
liability amounts for the various VRS OPEB programs are as follows (amounts expressed in
thousands):
Group Life
Insurance
Program
Total OPEB Liability $ 2,942,426
Plan fiduciary net
position 1,437,586
Employers’ net OPEB
liability (asset)$ 1,504,840
Plan fiduciary net
position as a percentage
of total OPEB liability 48.86%
The total liability is calculated by the VRS actuary and each plan’s fiduciary net position is reported
in the VRS financial statements. The net OPEB liability is disclosed in accordance with the
requirements of GASB Statement No. 74 in the VRS notes to the financial statements and required
supplementary information.
TOWN OF VINTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
55
Note 9.Other Postemployment Benefits Liability –Virginia Retirement System Plans (Continued)
Long-Term Expected Rate of Return
Group Life Insurance
The long-term expected rate of return on VRS 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 OPEB 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
Public Equity 40.00 %4.54 %1.82 %
Fixed Income 15.00 0.69 0.10
Credit Strategies 15.00 3.96 0.59
Real Assets 15.00 5.76 0.86
Private Equity 15.00 9.53 1.43
Total 100.00 %4.80 %
Inflation 2.50 %
*Expected arithmetic nominal return 7.30 %
*The above allocation provides for a one-year return of 7.30%. However, one-year returns do
not take into account the volatility present in each of the asset classes. In setting the
long-term expected rate of return for the system, stochastic projections are employed to
model future returns under various economic conditions. The results provide a range of
returns over various time periods that ultimately provide a median return of 6.83%, including
expected inflation of 2.5%.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
56
Note 9.Other Postemployment Benefits Liability –Virginia Retirement System Plans (Continued)
Discount Rate
The discount rate used to measure the GLI OPEB 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 Guidance 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, 2019, the
rate contributed by the employer for the OPEB liability will be subject to the portion of the VRS
Board-certified rates that are funded by the Virginia General Assembly. From July 1, 2019 on,
participating employers are assumed to contribute 100% of the actuarially determined contribution
rates. Based on those assumptions, the OPEB plans’ 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 OPEB liability.
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the Town, as well as what the Town’s net OPEB
liability would be if it were calculated using a discount rate that is one percentage point lower (6.00%
GLI) or one percentage point higher (8.00% GLI) than the current discount rate:
1.00%Current 1.00%
Decrease Discount Increase
(6.00%)
Rate
(7.00%)(8.00%)
GLI Net OPEB liability $387,000 $299,000 $228,000
OPEB Plan Fiduciary Net Position
Information about the various VRS OPEB plan fiduciary net position is available in the separately
issued VRS 2017 Comprehensive Annual Financial Report (CAFR). A copy of the 2017 VRS CAFR
may be downloaded from the VRS website at http://www.varetire.org/Pdf/Publications/2017-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 OPEB Plan
At June 30, 2018, the following amounts were payable to the Virginia Retirement System for the
legally required contributions related to June 2018 payroll.
Group Life Insurance $1,596
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
57
Note 10.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 11.Property Taxes
The major sources of property taxes are real estate and personal property taxes. The assessments are
the responsibility of the County of Roanoke, while billing and collection functions are the Town’s
responsibilities.
Property taxes are levied annually in April on assessed values as of January 1. Personal property
transactions during the year are taxed on a prorated basis. Real estate tax is payable in two equal
installments on or before June 5 and December 5, and personal property tax is due on or before
May 31, or within 30 days subsequent to assessment. Personal property taxes do not create a lien on
property.
The annual assessment for real estate is based on 100% of the assessed fair market value. A penalty
of 10% of the unpaid tax is due for late payment. Interest is accrued at 10% for the initial year of
delinquency, and thereafter at the maximum annual rate authorized by the Internal Revenue Code
Section 6621(b). The effective tax rates per $100 of assessed value for the year ended June 30 were
as follows:
Note 12.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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
58
Note 13.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
2017-2018, total premiums paid were approximately $120,000. 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 2017-2018, total premiums paid were approximately $95,000.
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 2017-2018, total premiums paid were approximately $739,000.
Note 14.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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
59
Note 14.Commitments and Contingencies (Continued)
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
$55,500 current year contribution is included in principal retirement expenditures on the fund
statement.
Note 15.Major Customer/Taxpayer
During fiscal year 2018, approximately 4.1% of the Town’s business-type revenues were generated
by one industrial customer.
Note 16.Interfund Activity
The primary purpose of the $140,298 from the general fund and $140,298 from the water and sewer
fund to the stormwater management fund was to cover obligations of stormwater fund.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
60
Note 17.Adoption of New Standard and Prior Period Restatement
In the current year,the Town adopted GASB Statement No. 75, Accounting and Financial Reporting
for Postemployment Benefits Other Than Pensions. This standard replaces the requirements of GASB
Statements No. 45 as it relates to governments that provide postemployment benefits other than
pensions. The new Statement requires governments providing defined benefit postemployment
benefits to recognize the long-term obligation for those benefits as a liability for the first time, and to
more comprehensively and comparably measure the annual costs of other postemployment benefits.
The Statement also enhances accountability and transparency through revised and new note
disclosures and required supplementary information, including disclosing descriptive information
about the types of benefits provided, how contributions to the plan are determined, and assumptions
and methods used to calculate the liability. Comparative prior year information, to the extent
presented, has not been restated because the necessary information is not available.
The following is a summary of the restatements to net position, resulting from the adoption of GASB
Statement No. 75:
Governmental Water and Stormwater
Activities Sewer Fund Fund
Net position, July 1, 2017, per above $7,541,547 $6,452,686 (85,802)
Recognition of other postemployment
benefits related liabilities and deferred
outflows/inflows in accordance with
GASB No. 75 (464,816)(40,169)(11,477)
, as restated $7,076,731 $6,412,517 $(97,279)
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(Continued)
61
Note 18.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 $2,331
Prepaids 63,666
CDBG revolving loan 37,930
103,927
Restricted for:
Public safety 155,323
Public works 257,602
412,925
General government administration 30,000
Unassigned 2,675,654
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 19.Subsequent Event
In July 2018, the Town took on a $162,000 lease for a vehicle for a seven-year term that is recorded
in the General Fund and Governmental Activities.
Note 20.New Accounting Standards
The Governmental Accounting Standards Board (GASB) has issued the following Statements which
are not yet effective.
The GASB issued Statement No. 83, Certain Asset Retirement Obligations in November 2016. This
Statement establishes criteria for determining the timing and pattern of recognition of a liability and a
corresponding deferred outflow of resources for asset retirement obligations. The requirements of
this Statement are effective for periods beginning after June 15, 2018.
The GASB issued Statement No. 84, Fiduciary Activities in January 2017. This Statement
establishes standards of accounting and financial reporting for fiduciary activities. The requirements
of this Statement are effective for periods beginning after December 15, 2018.
The GASB issued Statement No. 87, Leases in June 2017. This Statement establishes standards of
accounting and financial reporting for leases by lessees and lessors. The requirements of this
Statement are effective for periods beginning after December 15, 2019.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2018
62
Note 20.New Accounting Standards (Continued)
The GASB issued Statement No. 88, Certain Disclosures Related to Debt, including Direct
Borrowings and Direct Placements in March 2018. This Statement improves the information that is
disclosed in notes to government financial statements related to debt, including direct borrowing and
direct placements. It also clarifies which liabilities governments should include when disclosing
information related to debt. This Statement defines debt for purposes of disclosure in notes to
financial statements as a liability that arises from a contractual obligation to pay cash (or other assets
that may be used in lieu of cash) in one or more payments to settle an amount that is fixed at the date
the contractual obligation is established. The requirements of this Statement are effective for periods
beginning after June 15, 2018.
The GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a
Construction Period in June 2018. This Statement enhances the relevance and comparability of
information about capital assets and the cost of borrowing for a period and simplifies accounting for
interest cost incurred before the end of a construction period. The requirements of this Statement are
effective for periods beginning after December 15, 2019. The requirements of this Statement should
be applied prospectively.
The GASB issued Statement No. 90, Major Equity Interests, an amendment of GASB Statements No.
14 and No. 61 in August 2018. This Statement improves the consistency and comparability of
reporting a government’s majority equity interest in a legally separate organization and improves the
relevance of financial statement information for certain component units. It defines a majority equity
interest and specifies that a majority equity interest in a legally separate organization should be
reported as an investment if a government's holding of the equity interest meets the definition of an
investment. A majority equity interest that meets the definition of an investment should be measured
using the equity method, unless it is held by a special-purpose government engaged only in fiduciary
activities, a fiduciary fund, or an endowment (including permanent and term endowments) or
permanent fund. Those governments and funds should measure the majority equity interest at fair
value.
For all other holdings of a majority equity interest in a legally separate organization, a government
should report the legally separate organization as a component unit, and the government or fund that
holds the equity interest should report an asset related to the majority equity interest using the equity
method. This Statement establishes that ownership of a majority equity interest in a legally separate
organization results in the government being financially accountable for the legally separate
organization and, therefore, the government should report that organization as a component unit.
This Statement also requires that a component unit in which a government has a 100 percent equity
interest account for its assets, deferred outflows of resources, liabilities, and deferred inflows of
resources at acquisition value at the date the government acquired a 100 percent equity interest in the
component unit. Transactions presented in flows statements of the component unit in that
circumstance should include only transactions that occurred subsequent to the acquisition.
The requirements of this Statement are effective for periods beginning after December 15, 2018.The
requirements should be applied retroactively, except for the provisions related to (1) reporting a
majority equity interest in a component unit and (2) reporting a component unit if the government
acquires a 100 percent equity interest. Those provisions should be applied on a prospective basis.
Management has not determined the effects these new GASB Statements may have on prospective
financial statements.
THIS PAGE INTENTIONALLY BLANK
63
REQUIRED SUPPLEMENTARY
INFORMATION
EXHIBIT 11
2017 2016 2015 2014
Total Pension Liability
Service cost 443,567$ 426,921$ 450,265$ 430,229$
Interest on total pension liability 1,197,526 1,167,910 1,112,256 1,065,284
Difference between expected and actual experience (356,343) (201,924) 139,140 -
Changes in assumptions 8,604 - - -
Benefit payments, including refunds of employee contributions (962,861) (976,757) (836,477) (812,476)
Net change in total pension liability 330,493 416,150 865,184 683,037
Total pension liability - beginning 17,588,951 17,172,801 16,307,617 15,624,580
Total pension liability - ending 17,919,444 17,588,951 17,172,801 16,307,617
Plan Fiduciary Net Position
Net change in plan fiduciary net position 1,416,776 (159,092) 422,753 1,714,351
Plan fiduciary net position - beginning 15,091,378 15,250,470 14,827,717 13,113,366
Plan fiduciary net position - ending 16,508,154 15,091,378 15,250,470 14,827,717
Net pension liability - ending
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, 2018
’
presented in the entity’s fiscal year 2018 financial report.
Plan Year
The Notes to Required Supplementary Information are an integral part of this statement.
64
EXHIBIT 12
Entity Fiscal
Year Ended
June 30
Actuarially
Determined
Contribution
Relation to
Actuarially
Determined
Contribution
Contribution
Deficiency
(Excess)Covered Payroll
Percentage of
Covered Payroll
Primary
Government
2018 411,289$ 411,289$ -$ $ 3,762,660 10.93%
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%
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.
TOWN OF VINTON, VIRGINIA
SCHEDULE OF PENSION CONTRIBUTIONS
June 30, 2018
REQUIRED SUPPLEMENTAL INFORMATION
Schedule is intended to show information for 10 years.Since 2015 was the first year for this presentation,only four years of
data is available. However, additional years will be included as they become available.
The Notes to Required Supplementary Information are an integral part of this statement.
65
EXHIBIT 13
Fiscal Year 2018
Local Plan
Total OPEB Liability
Service cost 49,307$
Interest on total OPEB liability 15,730
Changes in assumptions (17,718)
Benefit payments (10,820)
Net change in total OPEB liability 36,499
Total OPEB liability - beginning 405,504
Total OPEB liability - ending 442,003
Plan Fiduciary Net Position
Contributions - employer 10,820
(10,820)
Net change in plan fiduciary net position -
Plan fiduciary net position - beginning -
Plan fiduciary net position - ending -
Net OPEB liability - ending
This schedule is intended to show information for 10 years.Since fiscal year 2018 is 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 OPEB LIABILITY AND RELATED RATIOS – LOCAL PLAN
June 30, 2018
Benefit payments
The Notes to Required Supplementary Information are an integral part of this statement.
66
EXHIBIT 14
Entity
Fiscal
Year
Ended
June 30
Employer’s
Proportion of
the Net OPEB
Liability
(Asset)
Employer’s
Proportionate
Share of the
Net OPEB
Liability
(Asset)
Covered
Payroll
Employer’s
Proportionate
Share of the
Net OPEB
Liability
(Asset) as a
Percentage of
Covered
Payroll
a Percentage
of the Total
OPEB
Liability
Virginia Retirement System - Group Life Insurance - General Employees
2018 0.01989%299,000$ 3,664,576$ 8.16%48.86%
The covered payroll amount above is for the measurement period, which is the twelve months prior to the entity’s fiscal year.
TOWN OF VINTON, VIRGINIA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF EMPLOYER’S SHARE OF NET OPEB LIABILITY – VRS GLI
June 30, 2018
This schedule is intended to show information for 10 years.Since 2018 was the first year for this presentation,no earlier data is available.
However, additional years will be included as they become available.
The Notes to Required Supplementary Information are an integral part of this statement.
67
EXHIBIT 15
Entity
Fiscal
Year
Ended
June 30
Contractually
Required
Contribution
Contributions
in Relation to
Contractually
Required
Contribution
Contribution
Deficiency
(Excess)
Employer’s
Covered
Payroll
Contributions
as a
Percentage of
Covered
Payroll
Virginia Retirement System - Group Life Insurance - General Employees
2018 19,610$ 19,610$ -$ 3,762,660$ 0.52%
The covered payroll amount above is for the entity’s fiscal year -i.e.the covered payroll on which required contributions were based for the
same year.
TOWN OF VINTON, VIRGINIA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF OPEB CONTRIBUTIONS – VRS GLI
June 30, 2018
This schedule is intended to show information for 10 years.Since 2018 is the first year for this presentation,no earlier data is available.
However, additional years will be included as they become available.
The Notes to Required Supplementary Information are an intergral part of this statement.
68
(Continued)
69
TOWN OF VINTON, VIRGINIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2018
Note 1.Changes of Benefit Terms
Pension
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, 2017 are not material.
Other Postemployment Benefits (OPEB)
There have been no actuarially material changes to the System benefit provisions since the prior
actuarial valuation.
Note 2.Changes of Assumptions
The following changes in actuarial assumptions were made effective June 30, 2016 based on the most
recent experience study of the System for the four-year period ending June 30, 2016:
Largest 10 –Non-Hazardous Duty:
-Update mortality table
-Lowered in rates of service retirement
-Update withdrawal rates to better fit experience
-Lowered in rates of disability retirement
-No changes to salary rates
-Increase Line of Duty Disability rates
-Applicable to: Pension and GLI OPEB
Largest 10 –Hazardous Duty/Public Safety Employees:
-Update mortality table
-Lowered rates of retirement at older ages
-Update withdrawal rates to better fit experience
-Increased disability rates
-No changes to salary rates
-Increased Line of Duty disability rates
-Applicable to: Pension and GLI OPEB
70
TOWN OF VINTON, VIRGINIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2018
Note 2.Changes of Assumptions (Continued)
All Others (Non 10 Largest) –Non-Hazardous Duty:
-Update mortality table
-Lowered rates of retirement at older ages and changed final retirement from 70 to 75
-Update withdrawal rates to better fit experience
-Lowered disability rates
-No changes to salary rates
-Increased Line of Duty disability rates from 14% to 15%
-Applicable to: Pension and GLI OPEB
THIS PAGE INTENTIONALLY BLANK
71
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.
The Town implemented GASB Statement 75 and restated beginning net position for 2018. 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
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Governmental activities
Net investment in capital assets 6,548,322$ 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$
Restricted 412,925 132,387 209,649 235,246 190,161 91,676 - 20,053 20,000 20,000
Unrestricted 467,465 770,368 801,646 499,226 2,291,758 2,219,240 1,972,859 1,491,375 1,362,770 1,650,476
Total governmental activities net position 7,428,712$ 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$
Business-type activities
Net investment in capital assets 4,760,652$ 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$
Unrestricted 1,823,180 1,504,611 1,035,813 117,415 410,722 394,976 339,523 661,273 297,150 968,176
Total business-type activities net position 6,583,832$ 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$
Primary government
Net investment in capital assets 11,308,974$ 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$
Restricted 412,925 132,387 209,649 235,246 190,161 91,676 - 20,053 20,000 20,000
Unrestricted 2,290,645 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
Total primary government net position 14,012,544$ 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$
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
72
TABLE 2
(Continued)
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Expenses
Governmental activities
General government 962,685$ 992,699$ 1,001,560$ 927,954$ 962,341$ 942,315$ 948,803$ 934,388$ 1,023,227$ 1,037,073$
Public safety 3,686,891 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
Public works 1,893,248 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
Parks, recreation, and cultural 517,122 591,208 591,342 621,897 635,252 588,649 553,866 583,569 617,778 610,756
Community development 416,637 479,973 447,908 427,409 575,557 398,517 1,034,510 339,983 393,160 339,304
Interest on long-term debt 94,963 106,756 126,164 193,242 200,584 143,455 183,672 194,159 203,787 211,189
Total governmental activities 7,571,546 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
Business-type activities
Water and sewer 3,279,827 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
Stormwater management 253,188 419,957 --------
Total business-type activities expense 3,533,015 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
Total primary government expenses 11,104,561$ 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$
Program Revenues
Governmental activities
Charges for services
Public safety 93,599$ 118,454$ 63,735$ 72,356$ 88,364$ 89,115$ 91,196$ 119,870$ 108,187$ 172,357$
Public works 110,167 110,145 110,099 110,295 110,425 110,115 110,460 110,380 110,175 132,382
Other activities 506,160 540,600 559,171 570,459 554,666 495,133 440,883 466,306 489,901 436,835
Operating grants and contributions 1,539,975 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
Capital grants and contributions 84,184 408,362 317,643 384,074 114,966 53,749 66,545 75,188 8,034 2,146
Total governmental activities program revenues 2,334,085 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
Business-type activities
Charges for services
Water and sewer 3,354,057 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
Capital grants and contributions --------- 303,556
Total business-type activities program revenues 3,354,057 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
Total primary government program revenues 5,688,142$ 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$
Net (expense) revenue
Governmental activities (5,237,461)$ (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)$
Business-type activities (178,958) (109,631) 333,756 201,365 (171,926) (191,980) (290,491) (330,808) (799,293) (596,005)
Total primary government net expense (5,416,419)$ (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)$
TOWN OF VINTON, VIRGINIA
CHANGE IN NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
73
TABLE 2
(Continued)
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
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 684,319$ 697,622$ 640,391$ 539,764$ 448,349$ 453,135$ 510,558$ 429,409$ 419,401$ 434,176$
Sales tax 1,370,590 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
Business license tax 482,003 500,713 508,747 489,749 517,111 491,996 460,638 454,636 456,536 437,797
Meals tax 966,053 953,721 955,488 912,713 900,591 912,226 909,814 864,448 842,384 861,286
Other taxes 616,344 585,378 576,896 561,080 628,177 692,669 698,412 734,316 755,808 386,703
Utilities tax 756,225 755,985 767,736 782,869 787,097 785,555 782,487 801,264 803,044 795,268
Intergovernmental revenue not restricted 770,645 773,690 744,247 768,956 756,199 807,117 773,617 748,815 664,975 631,320
Investment earnings not restricted 25,780 19,406 17,709 15,438 14,540 4,434 3,020 1,904 3,187 28,917
Restricted investment earnings - - - 60,746 59,628 - - - - 187
Gain on disposal of property - - - 7,444 6,516 - - - - -
Other 57,781 66,305 106,706 27,002 21,752 41,418 184,846 81,373 29,275 16,038
Transfers (140,298) (219,978) - - - - 500,000 - 78,466 126,018
Total governmental activities 5,589,442 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
Business-type activities:
Investment earnings not restricted 7,627 2,172 989 - 7 66 414 1,174 1,824 16,719
Restricted investment earnings 525 94 329 1,353 5,301 762 91 427 1,727 26,873
Other 299,102 338,118 279,661 250,562 255,135 261,934 287,359 275,208 298,591 236,198
Transfers 140,298 219,978 - - - - (500,000) - (78,466) (126,018)
Total business-type activities 447,552 560,362 280,979 251,915 260,443 262,762 (212,136) 276,809 223,676 153,772
Total primary government 6,036,994$ 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$
Changes in Net Position
Governmental activities 351,981$ 304,649$ 572,501$ 438,710$ (28,033)$ 122,464$ 64,137$ (314,879)$ (892,864)$ (1,199,260)$
Business-type activities 268,594 450,731 614,735 453,280 88,517 70,782 (502,627) (53,999) (575,617) (442,233)
Total primary government 620,575$ 755,380$ 1,187,236$ 891,990$ 60,484$ 193,246$ (438,490)$ (368,878)$ (1,468,481)$ (1,641,493)$
Note: Water and sewer charges for service is the Town’s most significant source of own-source revenue.
74
TABLE 3
2010 2009
Pre-GASB 54 implementation:
General Fund
Reserved 361,090$ 272,645$
Unreserved 1,322,095 1,698,851
Total general fund 1,683,185$ 1,971,496$
2018 2017 2016 2015 2014 2013 2012 2011
Post-GASB 54 implementation:
General Fund
Nonspendable 103,927$ 89,382$ 62,048$ 59,817$ 60,358$ 19,101$ 62,746$ 66,341$
Restricted 412,925 132,387 209,649 235,246 190,161 274,908 17,068 372,271
Committed 30,000 - - - - - - 100,000
Unassigned 2,675,654 2,578,193 2,607,524 2,361,436 2,919,657 2,837,802 2,584,947 1,196,789
Total general fund 3,222,506$ 2,799,962$ 2,879,221$ 2,656,499$ 3,170,176$ 3,131,811$ 2,664,761$ 1,735,401$
Note:
TOWN OF VINTON, VIRGINIA
FUND BALANCES – GOVERNMENTAL FUND
Last Ten Fiscal Years
(modified accrual basis of accounting)
75
TABLE 4
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Revenues
Taxes 4,868,746$ 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$
Permits, privilege fees, and regulatory licenses 8,955 8,712 9,788 12,403 9,085 10,861 9,273 10,242 12,116 11,321
Fines and forfeitures 71,210 75,085 51,631 56,503 75,059 73,107 75,989 102,566 94,548 116,463
Revenue from use of money and property 148,433 136,695 141,889 197,241 198,625 105,998 105,666 118,560 156,533 201,341
Charges for services 377,369 418,042 452,903 438,558 407,900 387,049 333,832 355,606 328,116 319,293
Other 137,547 150,967 138,589 129,124 149,957 72,337 18,522 16,860 3,562 4,638
Intergovernmental 2,444,777 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
Total revenues 8,057,037 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
Expenditures
General government 695,683 650,824 710,412 668,082 645,071 632,136 618,951 628,386 641,853 652,359
Public safety 3,703,343 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
Public works 1,775,465 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
Parks, recreation, and cultural 533,892 570,065 594,550 617,934 620,636 547,604 518,579 551,240 574,215 571,291
Community development 485,624 889,397 687,006 604,476 468,678 386,592 544,245 333,617 365,366 316,267
Capital projects 37,880 463,945 437,389 551,936 140,478 542,235 160,752 114,309 90,570 384,982
Debt service:
Principal retirement 436,700 535,374 404,038 379,843 372,923 335,766 267,595 260,501 253,500 241,585
Interest and fiscal charges 83,210 91,789 115,486 182,584 186,377 174,699 185,715 195,608 205,189 212,090
Bond issuance costs - - 15,920 - - 36,638 - - - -
Total expenditures 7,751,797 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
Excess (deficiency) of revenues over
expenditures 305,240 60,289 40,666 (521,121) 215,081 (67,017) 298,409 50,092 (384,268) (924,609)
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 257,602 - 136,599 - - 313,315 - - - -
Proceeds from sale of capital assets - 80,430 29,537 7,444 6,516 - 130,951 2,124 17,491 15,560
Transfers in (140,298) (219,978) - - - - 500,000 - 78,466 126,018
Total other financing sources 117,304 (139,548) 182,056 7,444 6,516 534,067 630,951 2,124 95,957 141,578
Net change in fund balances 422,544$ (79,259)$ 222,722$ (513,677)$ 221,597$ 467,050$ 929,360$ 52,216$ (288,311)$ (783,031)$
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)
76
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
2018 477,273,000$ 45,927,462$8,177,340$ 17,911,880$52,550$ 549,342,232$0.07$ 549,342,232$ 100%
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
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
77
TABLE 6
Customer Revenue Rank Revenue Rank
Precision Fabrics Group, Inc.164,937$ 1 4.51 %240,417$ 1 9.52 %
Aramark 152,290 2 4.17 74,900 2 2.97
Cardinal Glass 138,938 3 3.80 44,596 3 1.77
The Berkshire 62,730 4 1.72 34,713 4 1.37
Blue Ridge Manor Apartments 52,196 5 1.43 - --
RGM 40,160 6 1.10 32,458 5 1.28
Roanoke County Schools 32,573 7 0.89 16,538 7 0.65
Richard Dickerson/RL Mansard Sq 20,774 8 0.57 1,522 8 0.06
F & W Management 17,850 9 0.49 - --
Clearview Manor 17,050 10 0.47 19,768 6 0.78
Syline Cleaners - -- 8,048 9 0.32
American Efficiency - -- 7,043 10 0.28
699,498$ 480,003$
Source: Town of Vinton Finance Department
1) FY 2018 % was based on total water and sewer revenue of $3,653,159
2) FY 2009 % was based on total water and sewer revenue of $2,525,952
TOWN OF VINTON, VIRGINIA
PRINCIPAL WATER AND SEWER CUSTOMERS
Current Year and Nine Years Ago
Fiscal Year 2018
Percentage
of Total Town
Revenue
Fiscal Year 2009
Percentage
of Total Town
Revenue
78
TABLE 7
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30,Fiscal Year Amount of Levy Years Amount of Levy
2018 874,622$ 823,616$ 94.17%-$ 823,616$ 94.17%
2017 859,822 826,673 96.14 20,321 846,994 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
Source: Detailed Town property tax records.
Note: The Town increased the real estate tax rate from $0.03 to $0.07 in 2015
TOWN OF VINTON, VIRGINIA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Total Collections to Date
Collected within the
Fiscal Year of the Levy
79
TABLE 8
Fiscal
Year Water Sewer Water Sewer
2018 18.85$ 27.68$ 9.43$ 13.84$
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
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
80
TABLE 9
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Debt limit 54,934,223$ 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$
Total net debt applicable to limit 6,407,378 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
Legal debt margin 48,526,845$ 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$
Total net debt applicable to the limit
as a percentage of debt limit 11.66%13.20%14.58%15.80%17.18%19.53%13.39%13.27%14.13%14.98%
Legal Debt Margin Calculation for Fiscal Year 2018
549,342,232$
Debt limit (10% of assessed value)54,934,223$
Less debt applicable to limit:
General obligation bonds 6,407,378
Legal debt margin 48,526,845$
Note:
TOWN OF VINTON, VIRGINIA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Assessed value
81
TABLE 10
General General
Fiscal Obligation Revenue Capital Obligations Obligation Revenue Obligations Capital
Year 1 Bonds1 Leases Payable Total Bonds1 Bonds1 Payable Leases Total
2018 2,637,173$ -$ 240,612$ 203,036$ 3,080,821$ 3,789,564$ 1,852,617$ 252,532$ 498,198$ 6,392,911$
2017 2,940,783 - 54,837 266,576 3,262,196 4,175,676 2,015,327 266,363 - 6,457,366
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 2,274,519 - - 7,509,928
2013 4,056,402 - 257,549 425,000 4,738,951 5,941,895 2,393,190 - - 8,335,085
2012 2,733,027 1,377,256 - 475,000 4,585,283 3,950,222 2,506,858 - - 6,457,080
2011 2,880,305 1,453,521 47,595 - 4,381,421 4,258,808 2,615,526 - - 6,874,334
2010 3,027,582 1,524,786 93,096 - 4,645,464 4,558,026 2,719,195 - - 7,277,221
2009 3,169,860 1,596,051 136,595 - 4,902,506 4,848,160 2,817,860 - - 7,666,020
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
2018 6,426,737$ 549,342,232$ 1.17%8,065 797$ 48,384$ 1.65%
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 9,998,297 518,095,080 1.93 8,092 1,236 40,688 3.04
2012 6,683,249 532,265,640 1.26 8,130 822 39,866 2.06
2011 7,139,113 535,362,920 1.33 8,098 882 39,315 2.24
2010 7,585,608 534,257,800 1.42 7,814 971 39,315 2.46
2009 8,018,020 532,747,690 1.50 7,876 1,018 39,315 2.58
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
82
TABLE 11
Less:Net
Fiscal Gross Operating Available
Year Revenue (1)Revenue Principal (2)Interest Coverage
2018 3,661,311$ 2,344,160$ 1,317,151$ 595,555$ 166,641$ 1.73
2017 3,738,966 2,182,323 1,556,643 543,289 181,582 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
(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.
83
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)
2018 8,065 5,786,000$ 48,384$ 14,155 926 3.40%
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
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.
84
TABLE 13
Percentage Percentage
of Total Town of Total Town
Employer Employees Rank Employment Employees Rank Employment
Berkshire 204 1 2.53%230 2 6.42%
Kroger 193 2 2.39 160 4 4.47
Precision Fabrics Group, Inc.190 3 2.36 280 1 4.97
Roanoke County Schools (Vinton)132 4 1.64 178 3 782.00%
Town of Vinton 97 5 1.20 117 5 3.27
Aramark Uniform Services 97 6 1.20 90 6 2.51
McDonalds 84 7 1.04 N/A N/A N/A
Magnets USA 70 8 0.87 N/A N/A N/A
Woods Service Center 44 9 0.55 N/A N/A N/A
Lancerlot 40 10 0.50 N/A N/A N/A
1,151 14.28%1,055 29.46%
Source: Employer Business Application or HR Contact
N/A - Not Available
Fiscal Year 2018 Fiscal Year 2009
TOWN OF VINTON, VIRGINIA
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
85
TABLE 14
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Function/Program
General government
Management services 4 4 4 4 4 4 4 4 4 4
Finance 5 5 5 6 6 6 6 5 5 5
Planning 2 3 3 3 3 3 3 3 3 3
Police
Officers 23 24 22 22 24 24 24 25 24 24
Civilians 2 2 2 2 2 2 2 2 10 10
Fire
Firefighters and officers 11 12 10 11 10 9 9 9 9 9
Other public works 34 33 29 31 32 32 32 34 33 33
Parks, recreation, and cultural 3 3 3 2 3 3 3 3 3 3
Total 84 86 78 81 84 83 83 85 91 91
TOWN OF VINTON, VIRGINIA
FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Source: Town of Vinton HR Department
86
TABLE 15
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Function/Program
General government
Fleet equipment 133 133 133 133 133 117 117 117 117 117
Pieces of equipment maintained 133 133 133 133 133 117 117 117 117 117
Public safety:
Police
Arrests 1,034 594 722 507 578 582 667 546 531 658
Parking violations 40 58 133 52 64 48 56 82 139 84
Traffic violations 2,449 2,021 1,187 1,143 1,603 1,408 1,734 1,933 2,431 3,088
EMS
Emergency responses 2,607 2,637 2,656 2,615 2,735 2,654 2,872 2,319 2,219 2,369
Fire
Emergency responses 830 501 774 278 623 306 677 514 476 764
Public works
Refuse collection
Refuse collected (tons per day)12 12 11.92 12.55 12.78 12.92 12.75 12.70 14.00 15.90
Recyclables collected (tons per day)0.45 1 0.54 0.65 0.70 0.68 2.00 2.00 1.60 1.60
Other public works
Street resurfacing (miles)2.50 2 2.03 - 1.30 2.17 1.80 1.80 1.90 3.50
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 Closed 20,000
4th of July 5,000 5,000 5,000 5,000 5,000 4,000 4,000 4,000 4,000 4,000
(Co-Sponsor Roanoke County)Closed Closed Closed Closed Closed Closed Closed Closed 5,000 5,000
(Co-Sponsor Chamber of Commerce)6,000 6,000 9,000 9,000 6,000 6,000 6,000 6,000 6,000 6,000
Water
Number of customer accounts 5,115 5,120 5,093 5,074 5,085 5,071 5,051 5,044 5,040 5,022
Miles of distribution lines 61 61 61 61 61 61 61 61 61 61
Volume pumped (million gallons per day average)1 1 1.27 1.23 1.14 1.21 1.23 1.26 1.47 1.04
Sewer
Number of customer accounts 4,691 4,686 4,658 4,639 4,642 4,636 4,607 4,610 4,609 4,600
Miles of collection lines 60 60 60 60 60 60 60 60 60 60
Waste/Water treated (million gallons per day)1 1 1.40 1.19 0.92 0.96 0.99 1.09 1.27 1.04
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
87
TABLE 16
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Function/Program
Public safety
Law enforcement vehicles 27 27 25 26 25 25 26 27 27 29
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 505 505 503 502 500 500 500 500 500 500
Parks, recreation, and cultural
Community centers
Vinton Senior Program (No. of Events/Attendance)356/5822 285/4370 252/4166 240/3990 223/3,965 253/3775 231/4033 174/3396 1/18 240/4236
Charles R. Hill Center (Rentals)303 316 283 291 289 437 299 218 295 351
Skate Park Closed Closed Closed Closed Closed Closed Closed Closed Closed Closed
Vinton War Memorial 250 276 273 235 282 301 200 202 271 277
Parks/athletic fields
Gearhart Park (TOV owned-Leased to Rke County)NA NA N/A N/A N/A N/A N/A N/A N/A 37/3000
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 N/A 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 Closed 7,977 7,977 8,458 10,562 10,176 12,246 11,270 11,000
Water and sewer
Water mains (miles)61 61 61 61 61 61 61 61 61 61
Sanitary sewers (miles)60 60 60 60 60 60 60 60 60 60
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
Source: Various Town of Vinton Departments
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THIS PAGE INTENTIONALLY BLANK
89
COMPLIANCE SECTION
90
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, 2018, 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, 2018.
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 2018-001.
91
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, 2018
92
TOWN OF VINTON, VIRGINIA
SUMMARY OF COMPLIANCE MATTERS
June 30, 2018
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
93
TOWN OF VINTON, VIRGINIA
SCHEDULE OF FINDING AND RESPONSE
Year Ended June 30, 2018
A.FINDING –FINANCIAL STATEMENT AUDIT
2018-1: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.
B.FINDING –COMMONWEALTH OF VIRGINIA
None.
94
TOWN OF VINTON, VIRGINIA
SCHEDULE OF PRIOR AUDIT FINDING
Year Ended June 30, 2018
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.