HomeMy WebLinkAboutFY 2018 - 2019 - Annual Comprehensive Financial Reports (ACFRs)
THE TOWN OF VINTON, VIRGINIA
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FOR FISCAL YEAR ENDED JUNE 30, 2019
TOWN OF VINTON, VIRGINIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2019
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 .........................................................................................................3
Basic Financial Statements
Government-wide Financial Statements
Exhibit 1 Statement of Net Position ...................................................................................................12
Exhibit 2 Statement of Activities ........................................................................................................13
Fund Financial Statements
Exhibit 3 Balance Sheet –Governmental Fund .................................................................................14
Exhibit 4 Reconciliation of the Governmental Fund Balance Sheet
to the Statement of Net Position......................................................................................15
Exhibit 5 Statement of Revenues, Expenditures, and Changes in
Fund Balance –Governmental Fund ..............................................................................16
Exhibit 6 Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balance of the Governmental Fund to the Statement of Activities ..................17
Exhibit 7 Statement of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual –General Fund .................................................................................18
Exhibit 8 Statement of Net Position –Proprietary Funds ..................................................................19
Exhibit 9 Statement of Revenues, Expenses, and Changes in Fund
Net Position –Proprietary Funds ....................................................................................20
Exhibit 10 Statement of Cash Flows –Proprietary Funds ...................................................................21
Notes to Financial Statements ....................................................................................................................22
Required Supplementary Information
Exhibit 11 Schedule of Changes in Net Pension Liability and Related Ratios ...................................63
Exhibit 12 Schedule of Pension Contributions.....................................................................................64
Exhibit 13 Schedule of Changes in Net OPEB Liability and Related Ratios –Local Plan ................65
Exhibit 14 Schedule of Employer’s Share of Net OPEB Liability –VRS GLI ..................................66
Exhibit 15 Schedule of OPEB Contributions –VRS GLI ...................................................................67
Notes to Required Supplementary Information .........................................................................................68
TOWN OF VINTON, VIRGINIA
TABLE OF CONTENTS
(Continued)
Page
STATISTICAL SECTION
Table 1 Net Position by Component .......................................................................................................71
Table 2 Change in Net Position by Component .....................................................................................72
Table 3 Fund Balances –Governmental Fund .......................................................................................74
Table 4 Changes in Fund Balances –Governmental Fund ....................................................................75
Table 5 Assessed Value and Actual Value of Taxable Property ...........................................................76
Table 6 Principal Water and Sewer Customers ......................................................................................77
Table 7 Property Tax Levies and Collections ........................................................................................78
Table 8 Water and Sewer Rates ..............................................................................................................79
Table 9 Legal Debt Margin Information ................................................................................................80
Table 10 Ratios of Outstanding Debt by Type .........................................................................................81
Table 11 Pledged Revenue Coverage .......................................................................................................82
Table 12 Demographic Statistics ..............................................................................................................83
Table 13 Principal Employers ...................................................................................................................84
Table 14 Full-Time Equivalent Town Government Employees by Function/Program ..........................85
Table 15 Operating Indicators by Function/Program ...............................................................................86
Table 16 Capital Asset and Infrastructure Statistics by Function/Program .............................................87
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.....................................................................................................89
Summary of Compliance Matters ..................................................................................................................91
Schedule of Finding and Response ................................................................................................................92
Schedule of Prior Audit Finding ....................................................................................................................93
INTRODUCTORY SECTION
TOWN OF VINTON
311 S. POLLARD STREET
VINTON, VIRGINIA 24179
PHONE (540) 983-0608
FAX (540) 985-3105
November 8, 2019
To the Honorable Mayor, Members of Town Council, and Citizens of the Town of Vinton, Virginia
We are pleased to present the Town of Vinton, Virginia (the Town) Comprehensive Annual Financial
Report (CAFR) for the fiscal year ended June 30, 2019 in accordance with Section 15.1-167 of the 1950
Code of Virginia, (1950 as amended). The Code requires that the Town issues an annual report on its
financial accounts and records. In addition, the report must be audited. The report was prepared by the
Treasurer’s Office and audited independently by the accounting firm Brown Edwards & Company, L.L.P.
Responsibility for both the accuracy of the data and completeness and fairness of the presentation,
including all disclosures, rests with the Town’s management. To the best of our knowledge and belief, the
enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the
financial position and results of operations of the various funds of the Town. All disclosures necessary to
enable the reader to gain an understanding of the Town’s financial activities have been included.
The Reporting Entity and Services Provided
The financial reporting entity includes all of the funds of the primary government of the Town of Vinton,
as legally defined. The reporting entity does not include legally separate entities (component units) for
which a primary government is financially accountable because there are no such component units within
the Town. The Town jointly operates the Roanoke Valley Resource Authority and the Regional Center
for Animal Care and Protection through membership on the multi-jurisdictional boards.
The Town of Vinton provides a full range of municipal services. These services include police protection,
fire and first aid services, refuse and recycling functions, general public improvements, street and right-of-
way maintenance, recreational and cultural activities, and planning and zoning. The Town also provides
potable water distribution, wastewater collection, maintenance and service of line, meters, and other
components related to its utility system. Based on the latest Water Quality Report, the water system meets
all state and federal requirements administered by the Office of Drinking Water under the Virginia
Department of Health. According to the 2018 Water Quality Report, the Town had no water quality
violations. The Virginia Department of Environmental Quality reported statewide recycling rates for
calendar year 2017. The Town of Vinton’s rate was 64.0% and was ranked first based on rate out of all of
the waste planning units in the Commonwealth.
Local Economic Condition and Outlook
The Town of Vinton is located in the southern end of the Shenandoah Valley, in the southwestern region
of Virginia. Vinton is a part of the Roanoke Metropolitan Statistical Area, which includes the Cities of
Roanoke and Salem and Counties of Roanoke, Botetourt, and Craig. The Town is a compact, urban area
i
Local Economic Condition and Outlook (Continued)
of 3.2 square miles located within eastern Roanoke County and shares a common border with the City of
Roanoke. It is approximately 170 miles west of Richmond, Virginia, the State capital. The Town is a
major gateway to the recreational attractions of Smith Mountain Lake and the Blue Ridge Parkway.
Approximately 78.8% of the total land within the Town is developed; 50.6% for residential use, 13.8%
for commercial or industrial development (within the Town industrial park and at various other locations)
and 14.4% for public facility development.
The location of the Town provides quick and easy access from neighboring jurisdictions via US
Interstates 81 and 581, U.S. Routes 460 and 220, and Virginia Routes 24 and 634. This also provides an
opportunity for citizens to be able to drive to a community college, two private colleges, and two public
universities in less than one hour. The Town’s location also means that its economy is impacted by the
economic conditions of its neighbors, and by decisions made by these larger neighboring jurisdictions.
Since the Town of Vinton is highly concerned with providing a positive atmosphere and quality of life for
its citizens, it has taken an active role in various regional authorities and activities. The Town participates
in economic development by being a member of the Roanoke Regional Partnership and working closely
with Roanoke County on development opportunities and promoting a shared industrial park. The Town
also partners with community groups to hold two major festivals and several smaller community events
throughout the year. In 2018, the Town also partnered with the Vinton Area Chamber of Commerce for
economic development and business retention, recruitment and promotion.
The Town also participates in the Greenway Commission, the purpose of which is to identify possible
greenway locations in the Roanoke Valley area. Through this the Town is building a greenway that will
connect the downtown business district with Roanoke City’s greenway system. This will allow for an
individual to travel from Vinton to Salem on the greenway system. Vinton has also partnered with the
Roanoke-Alleghany Regional Commission to promote a Blueways Trail on the Roanoke River.
Vinton has maintained stable property tax rates over the years, while continuing to provide high quality
municipal services and responsive government. The combined real estate and personal property tax
collections for fiscal year 2019 generate approximately $726,000 or 8.51% of total revenue in the general
fund.
The meals tax continues to be a strong revenue source for the Town and is estimated to generate $1,078,000.
This stable revenue source is reflective of the value our restaurants are able to offer their customers. As part of
the development of the FY20 budget, Town Council authorized raising the meals tax from 5% to 6%, with the
proceeds of the increase to benefit Capital related improvements such as equipment to maintain and improve
our public infrastructure. We are optimistic that this revenue source will continue to increase more with a
growing list of downtown restaurants, a successful craft brewery and entertainment offerings that provide
opportunities to attract new visitors and for existing patrons to remain within the downtown later into the
evenings and throughout the weekends.
The nearby educational institutions allow opportunities for Town citizens to receive higher education and
technical training. Expansion of industry, tourist facilities, and conference centers in the region continue
to enhance the reputation of the Town as a highly desirable residential area.
ii
Long-term Financial Planning
Council members and staff worked together to set mid to long-term goals for the future of the Town of Vinton,
which goals will be reevaluated during future Council Retreats. Town staff will also work with Council
Members to review mid and long-term goals to be addressed in upcoming budgets.
•Provide High Quality Water to Town and East Roanoke County Residents
•Replace Town Gateway Entrance Signs
•Continued Economic Development (Gish’s Mill, Vinton Motors, River Park, Potential Hotel)
•Dedication to Street Paving, Marking, Crosswalks, and Traffic Signals
•Develop Skate Park in the Town of Vinton
•Fund required Stormwater Management Program
•Improve Town Walkability with Sidewalk Inventory & Project Implementation
•Review Town Program Services and Subsidies
•Staff to Review & Update Job Descriptions, Classifications, and Processes
•Safety of Town Facilities
•Engineering Study for Commercial District Power Lines
Major Initiatives
The Town completed implementation of the $700,000 Department of Housing and Community
Development (DHCD) Block Grant in December of 2016 that focused on four key areas of the
Downton improvements and initiatives to include: (1) streetscape and fixture improvements, (2) business
storefront and facade improvements, (3) branding and marketing collateral, and (4) a revolving loan fund
to support business development.
Since 2017, the Town has been focused on new initiatives to continue the revitalization momentum by
focusing on downtown housing rehabilitation and the redevelopment of underutilized commercial
properties
The Town was awarded a $30,000 planning grant from DHCD to establish a housing rehabilitation
program within downtown neighborhoods. The Town has completed an exercise to identify and rank
current housing conditions and to engage with community stakeholders to confirm that conditions exist
and resources are available to develop the redevelopment plan. The Town intends to apply for future grant
funding from DHCD for construction and implementation of the rehabilitation program in FY20.
Working with the Virginia Brownfields Assistance Fund (VBAF) and the Department of Environmental
Equality (DEQ), the Town was awarded a $60,000 grant and completed a Phase I and Phase II
Environmental Study at Gish’s Mill. The Town also received another $39,000 from the VBAF to conduct
similar testing for properties located at the intersection of S. Pollard and Cleveland Ave. Each of these
two properties are showing great promise as gateway enhancements projects and attracting the critical
economic segments of destination retail and hospitality opportunities to our community. In addition, The
Town has been awarded a $300,000 grant from the Environmental Protection Agency (EPA), to review
environmental conditions at other “brownfield” sites throughout the community, and includes funding for
conceptual planning and marketing materials to promote the sites as available for redevelopment.
In partnership with Roanoke County, Vinton is also realizing success with targeted projects such as the
former Roland E. Cook School,the former William Byrd High School as apartments, and the
redevelopment of the former Vinton Library as a full service Macado’s Restaurant. Other successful
renovation projects include the reinstallation of an ice-rink at the Lancerlot Sports Complex, the
redevelopment of the former Vinton Motors property into a mixed-use restaurant and commercial space,
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Major Initiatives (Continued)
several new small retail and restaurants locating to downtown storefronts and the return of Horse Race
Wagering to the former Colonial Downs property as Rosie’s Gaming Emporium.
Accounting System and Budgetary Controls
The Town’s accounting records for governmental fund type operations are maintained on a modified
accrual basis with revenues being recorded when available and measurable, and expenditures being
recorded when services or goods are received and fund liabilities are incurred. Accounting records for
proprietary fund types are maintained on the accrual basis with revenues and expenses being recorded
when earned or incurred.
In developing or modifying the Town’s accounting system, consideration is given to the adequacy of
internal controls. Internal controls are designed to provide reasonable, but not absolute, assurance
regarding: (a) the safeguarding of assets against loss from unauthorized use or disposition, and (b) the
reliability of financial records for preparing financial statements and maintaining accountability for assets.
The concept of reasonable assurance recognizes that: (a) the cost of a control should not exceed the
benefits likely to be derived, and (b) the evaluation of costs and benefits requires estimates and judgments
by management. All internal control evaluations occur within the above framework. The Town’s internal
controls adequately safeguard assets and provide reasonable assurance of proper recording of financial
transactions.
Budgetary control is maintained at the department or function level by the adoption of an annual, accrual
plus encumbrances basis budget for both the General and Enterprise Funds. The budgetary controls are
designed to ensure compliance with legal restrictions on expenditures as established by the Town
Council. Only the Council can revise appropriations. Year-end outstanding encumbrances are reported
as a reserve of fund balance and re-appropriated in the subsequent year.
Cash Management
The Town uses a pooled cash concept to allow greater investment flexibility and consequently a better
return on investments. Cash from all funds is pooled for investment purposes in the Commonwealth of
Virginia’s Local Government Investment Pool and in Certificates of Deposit. The Town’s checking
account is an interest bearing public fund demand deposit account earning interest rates tied to the
90-day US T-Bill.
Risk Management
The Town’s various property and liability insurance coverage is provided by the Virginia Risk Sharing
Association. The annual insurance costs are allocated to specific departments and funds based on
assigned equipment, number of personnel, building usage, and other equitable cost estimates.
Independent Audit
Virginia law requires that the financial statements of the Town be audited by a Certified Public
Accountant (or alternatively, by the Auditor of Public Accounts) selected by the Town Council. Brown,
Edwards & Company, L.L.P., has performed an annual audit of the Comprehensive Annual Financial
Report. Their audit was conducted in accordance with generally accepted auditing standards; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
iv
Independent Audit (Continued)
Comptroller General of the United States; and Specifications for Audit of Counties, Cities, and Towns,
issued by the Auditor of Public Accounts of the Commonwealth of Virginia. The auditor’s report, which
includes their opinion on the financial statements of the Town, is contained in this report on page one of
the Financial Section. Other auditor’s reports are included in the Compliance Section.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This
letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The
Town’s MD&A can be found immediately following the report of the independent auditors.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial reporting to the Town for its Comprehensive
Annual Financial Report for the fiscal year ended June 30, 2018. The Certificate of A chievement is a
national award that recognizes conformance with the highest standards for preparation of government
financial reports.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable
and efficiently organized Comprehensive Annual Financial Report, the contents of which must conform
to program standards. The CAFR must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The Town of Vinton has received
a Certificate of Achievement since their first award in 1995. We believe our current report
continues to conform with the Certificate of Achievement Program requirements, thus, this report is
being submitted to GFOA.
Acknowledgements
The preparation of this report was made possible through the diligent effort of the Treasurer/Finance
Office with the support of all departments and staff. We would like to express our appreciation to the
members of the Town Council for their support in the preparation of the Town of Vinton’s comprehensive
annual financial report and to the Town’s independent auditing firm, Brown, Edwards & Company,
L.L.P. for their cooperation and input in this work.
Respectfully submitted,
Barry W. Thompson Anne W. Cantrell
Town Manager Treasurer/Finance Director
v
vi
vii
TOWN OF VINTON, VIRGINIA
DIRECTORY OF PRINCIPAL OFFICIALS
June 30, 2019
TOWN COUNCIL
Bradley E. Grose, Mayor
Keith N. Liles, Vice Mayor
Sabrina McCarty
Janet Schneid
Michael W. Stovall
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, 2019, 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, 2019, 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)
Report on Summarized Comparative Information
We have previously audited the Town’s 2018 financial statements, and in our report dated
November 15, 2018, we expressed unmodified opinions on those financial statements. The 2018
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, 2018, is consistent, in all
material respects, with the audited financial statements from which it has been derived.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and other required supplementary information, as listed in the table of contents, be
presented to supplement the basic financial statements. Such information, although not a part of the
basic financial statements, is required by the Governmental Accounting Standards Board, who considers
it to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town’s basic financial statements. The introductory section and the statistical
section are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or
provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
November 8, 2019 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 8, 2019
3
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the Town of Vinton, Virginia (the “Town”), we offer readers of the Town’s financial
statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended
June 30, 2019. 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 $14,958,131 (net position). Of this
amount, $3,344,025 (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 $945,587. This increase is largely due to total expenses of
$11,398,812 being less than total revenues of $12,344,399. Another factor includes an increase of
$730,851 (8.96%) in current and other assets. However, capital assets continue to decrease by a total
this fiscal year of $649,728 with the final result being an increase of 0.29%in total assets.
On the other hand, long-term liabilities decreased by $244,411 (2.03%), mostly due to normal
reductions. Other liabilities decreased by $93,655 (8.18%)which was due to a decrease in accounts
payable and related liabilities and in accrued payroll and related liabilities due to end of year timing
of these payments.
Deferred Outflows increased $249,664 (36.58%) and Deferred Inflows decreased $276,734 (21.97%)
due to the net difference between projected and actual earnings on plan investments.
The final result of all these effects is a 6.75% increase in net position.
As of the close of the current fiscal year, the Town’s governmental fund reported an ending fund
balance of $3,750,688 an increase of $528,182 in comparison with the prior year. This is mostly due to
revenues over expenditures, but also due to a decrease of $37,026 (6.12%) in total liabilities.
Approximately 77.85% of the ending governmental fund balance, $2,919,827 is available for spending
at the Town’s discretion (unassigned fund balance), and represents 36.61% 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 are comprised of three components: (1) government-wide financial
statements,(2)fund financial statements, and (3) notes to the financial statements. This report also contains other
supplementary information in addition to the basic financial statements themselves.
Government-wide Financial Statements –The government-wide financial statements are designed to
provide readers with a broad overview of the Town’s finances, in a manner similar to a private-sector
business.
The statement of net position presents information on all of the Town’s assets, deferred outflows of
resources, liabilities, and deferred inflows of resources, with the difference between the four reported as
net position. Over time, increases or decreases in net position may serve as a useful indicator of whether
the financial position of the Town is improving or deteriorating.
4
Overview of the Financial Statements (Continued)
Government-wide Financial Statements (Continued)
The statement of activities presents information showing how the government’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will result only in cash flows in future fiscal
periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the Town that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business-type
activities). The governmental activities of the Town include general government, public safety, public
works, community development, and parks, recreation, and cultural. The business-type activity of the Town
is the water and sewer department.
Fund Financial Statements –A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The Town, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the Town can be divided into two categories: governmental funds and
proprietary funds.
Governmental Funds –Governmental funds are used to account for essentially the same functions reported
as governmental activities in the government-wide financial statements. However, unlike the government-
wide financial statements, governmental fund financial statements focus on near-term inflows and outflows
of spendable resources,as well as on balances of spendable resources available at the end of the fiscal year.
Such information may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements,
it is useful to compare the information presented for governmental funds with similar information presented
for governmental activities in the government-wide financial statements. By doing so, readers may better
understand the long-term impact of the government’s near-term financing decisions. Both the governmental
fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund
balance provide a reconciliation to facilitate this comparison between governmental funds and governmental
activities.
The Town adopts an annual appropriated budget for its general fund. A budgetary comparison statement
has been provided for the general fund to demonstrate compliance with this budget.
Proprietary Funds –The Town maintains one type of proprietary fund. Enterprise funds are used to report
the same functions presented as business-type activities in the government-wide financial statements. The
Town uses an enterprise fund to account for its Water and Sewer Department.
Proprietary funds provide the same type of information as the government-wide financial statements, only
in more detail. The proprietary fund financial statements provide separate information for the Water and
Sewer Department.
Notes to the Financial Statements –The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statement.
Other Information –In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information concerning the Town’s funding progress for the defined benefit pension
plan.
5
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the
case of the Town, the net position was $14,958,131 at the close of the most recent fiscal year.
By far the largest portion of the Town’s net position (74.71%)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 $5,411,782 $4,893,387 $3,475,687 $3,263,231 $8,887,469 $8,156,618
Capital assets 8,893,679 9,058,492 10,068,935 10,553,850 18,962,614 19,612,342
Total assets 14,305,461 13,951,879 13,544,622 13,817,081 27,850,083 27,768,960
Deferred outflows
of resources 675,122 477,791 257,094 204,761 932,216 682,552
Current and other liabilities 584,285 621,099 467,057 523,898 1,051,342 1,144,997
Long-term liabilities 5,254,395 5,241,976 6,535,600 6,792,430 11,789,995 12,034,406
Total liabilities 5,838,680 5,863,075 7,002,657 7,316,328 12,841,337 13,179,403
Deferred inflows
of resources 917,834 1,137,883 64,997 121,682 982,831 1,259,565
Net investment in capital
assets 6,562,966 6,548,322 4,612,847 4,760,652 11,175,813 11,308,974
Restricted 438,293 412,925 --438,293 412,925
Unrestricted 1,222,810 467,465 2,121,215 1,823,180 3,344,025 2,290,645
Total net position $8,224,069 $7,428,712 $6,734,062 $6,583,832 $14,958,131 $14,012,544
Unrestricted net position of $3,344,025 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 $795,357.
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 and capital grants and contributions
remained relatively flat, whereas various taxes showed an increase over the prior year. Investment earnings also
showed an increase because of the Town’s investments and bond proceeds being invested in higher yields.
6
Government-wide Financial Analysis (Continued)
The Town’s Changes in Net Position
Governmental Business-Type
Activities Activities Total
Revenues
Program revenues
Charges for services $700,984 $709,926 $3,386,429 $3,354,057 $4,087,413 $4,063,983
Operating grants and
contributions 1,531,540 1,539,975 - - 1,531,540 1,539,975
Capital grants and
contributions 72,006 84,184 - - 72,006 84,184
General revenues
Property taxes 726,573 684,319 - - 726,573 684,319
Other taxes 4,538,798 4,191,215 - - 4,538,798 4,191,215
Intergovernmental revenue
unrestricted 812,923 770,645 - - 812,923 770,645
Investment earnings 68,002 25,780 40,851 8,152 108,853 33,932
Other 69,900 57,781 379,813 299,102 449,713 356,883
Gain (loss) on sale 16,580 - - - 16,580 -
Total revenues 8,537,306 8,063,825 3,807,093 3,661,311 12,344,399 11,725,136
Expenses
General government 1,049,355 962,685 - - 1,049,355 962,685
Public safety 3,566,718 3,686,891 - - 3,566,718 3,686,891
Public works 1,861,525 1,893,248 - - 1,861,525 1,893,248
Parks, recreation, and
cultural 539,309 517,122 - - 539,309 517,122
Community development 461,068 416,637 - - 461,068 416,637
Interest on long-term
debt 92,062 94,963 - - 92,062 94,963
Water and sewer --3,491,120 3,279,827 3,491,120 3,279,827
Stormwater management --337,655 253,188 337,655 253,188
Total expenses 7,570,037 7,571,546 3,828,775 3,533,015 11,398,812 11,104,561
Excess (deficit) of
revenues over
expenditures 967,269 492,279 (21,682)128,296 945,587 620,575
Other Financing Sources (Uses)
Transfers in (out)(171,912)(140,298)171,912 140,298 - -
total other financing
sources (uses)(171,912)(140,298)171,912 140,298 - -
Change in net position 795,357 351,981 150,230 268,594 945,587 620,575
–July 1 7,428,712 7,076,731 6,583,832 6,315,238 14,012,544 13,391,969
–June 30 $8,224,069 $7,428,712 $6,734,062 $6,583,832 $14,958,131 $14,012,544
7
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
8%Operating grants and
contributions
18%
Capital grants and
contributions
1%
Property taxes
8%
Other taxes
53%
Intergovernmental
revenue unrestricted
10%
Investment earnings
1%
Other
1%
Gain (loss)
0%
8
Government-wide Financial Analysis (Continued)
Business-type activities –Business-type activities increased the Town’s net position by $150,230. The last
increase by the Town was effective July 1, 2015 with a rate of 8.9%. There was no increase in fiscal year 2017,
2018, or 2019.
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
$3,750,688, an increase of $528,182 in comparison with the prior year. This is due to revenues performing over
expenditures, a decrease in liabilities of $37,026 (6.12%), and an increase in nonspendable fund balance for land
held for resale.
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 $2,172,853.
Unrestricted net position of the Stormwater Management Department at the end of the year was a deficit of $51,638.
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 actual and the final amended budget for revenues were $238,401 primarily due to
Categorical Aid amounting to $501,257. The decrease in Categorical Aid was primarily due to carryforward
grants and re-appropriation of fund balance for the purchase of trash cans and land for economic development
purposes.
Differences between the actual and the final amended budget for expenditures were $1,253,612 with the majority
being primarily due to unspent grant funding and other capital projects not completed.
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 99.10% 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 positive variance of other local taxes of $241,639 or 5.61%. This was primarily due to a change in the
business license threshold from various levels to $125,000 and an increase in the rates to match neighboring
jurisdictions. The sales tax outperformed budget expectations. A new revenue source started in May 2019 with the
opening of Rosie’s facility, generating approximately $100,000 in unbudgeted revenue.
There continues to be a downward trend in several revenue areas. In consumer’s utility tax and cigarette tax, the
trend has been continuously decreasing due to change in legislation, consumer habits, and application of the tax to
products that are being replaced with newer items.These impacts are not only felt in the Town of Vinton, but across
the region. There was a small unfavorable variance in fines & forfeitures, the revenue was reviewed in the upcoming
budget process and was reduced to match revised expectations. There was also a decrease in the charges for services
due to less revenue received for the fee for transport and War Memorial rentals. These items were also reviewed in
the upcoming budget and reduced to match the revised forecast.
9
General Fund Budgetary Highlights (Continued)
All expenditures by budget functions have favorable variances due to concerted efforts of all departments to
control and minimize expenditures.The transfer to the Stormwater Fund was reduced $76,646 from
anticipated budget, and was a component of the favorable balance in the General Fund.
The Stormwater Management Fund was created in fiscal year 2017 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.
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, 2019, amounts to $18,962,614 (net of accumulated depreciation). This investment in capital assets includes
land, buildings and systems, improvements, infrastructure, machinery, and equipment. The total decrease in the
Town’s investment in capital assets for the current fiscal year was 3.31% (a 1.82%decrease for governmental
activities and a 4.59% decrease for business-type activities). Additional information on the Town’s capital assets
can be found in Note 5 of this report.
The Town’s Capital Assets
(Net of Depreciation)
Land $1,832,033 $1,832,033 $80,752 $80,752 $1,912,785 $1,912,785
Buildings and systems 4,551,606 4,747,664 7,214,760 7,711,634 11,766,366 12,459,298
Infrastructure 1,806,110 1,934,831 - - 1,806,110 1,934,831
Improvements other than
buildings - - 2,141,389 2,285,350 2,141,389 2,285,350
Machinery and equipment 552,643 336,827 632,034 463,268 1,184,677 800,095
Construction in progress 151,287 207,137 - 12,846 151,287 219,983
Total $8,893,679 $9,058,492 $10,068,935 $10,553,850 $18,962,614 $19,612,342
Long-term debt –At the end of the current fiscal year, the Town had total debt outstanding of $8,847,668.Of this
amount, $5,765,236 comprises debt backed by the full faith and credit of the government, $1,687,000 is related to
revenue bond obligations, and $1,019,275 is related to capital leases.
The Town’s Outstanding Debt
General Obligation and Capital Leases
General obligation bonds $2,311,756 $2,617,814 $3,453,480 $3,789,564 $5,765,236 $6,407,378
Revenue bonds - - 1,687,000 1,852,000 1,687,000 1,852,000
Other obligations 139,296 203,036 236,861 252,532 376,157 455,568
Capital leases 352,931 240,612 666,344 498,198 1,019,275 738,810
$2,803,983 $3,061,462 $6,043,685 $6,392,294 $8,847,668 $9,453,756
The Town’s total debt decreased by $606,088, or 6.41%, 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.
10
Economic Factors and Next Year’s Budgets and Rates
During the current year, the Town felt impacts of a better local economy after years of little to no revenue growth.
Several key revenue areas increased during the year, and a new source of revenue was introduced with the
re-opening of off-track betting in Town limits. The Town has previously had limited funding for capital items
due to revenue impacts from the recession, and has dedicated these new revenues to improve and replace capital
items vital to the Town’s services.
The unemployment rate for Roanoke County (no statistics are available for the Town individually) as
of June 30, 2019 is 2.90%, which is a decrease from last year’s rate of 3.40%. This is comparable to
the state’s average unemployment rate as of June 30, 2019 of 2.90% and to the national average rate
of 3.70%.
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 2019, 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 $244,173. The
general fund remains strong with an ending unassigned fund balance of $2,919,827. It is intended that this
available fund balance will be used for future needs of the Town and as working capital during the months of low
cash collection volume.
Requests for Information
This financial report is designed to provide a general overview of the Town’s finances for all those with an interest
in the government’s finances. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the Finance Department/Treasurer’s Office, Town of Vinton,
311 S. Pollard Street, Vinton, Virginia 24179.
11
BASIC
FINANCIAL STATEMENTS
EXHIBIT 1
Governmental Business-Type
(For Comparison
Only)
Activities Activities 2019 2018
ASSETS
Cash and cash equivalents (Note 2)3,994,138$ 2,219,816$ 6,213,954$ 5,647,332$
Receivables, net (Note 3)447,919 646,368 1,094,287 1,029,636
Due from other governmental units (Note 4)385,678 - 385,678 449,644
Inventories 1,543 57,255 58,798 49,891
168,375 - 168,375 -
Prepaids 68,960 17,257 86,217 80,760
Loans receivable 35,487 - 35,487 69,126
309,682 534,991 844,673 830,229
Capital assets: (Note 5)
Nondepreciable 1,983,320 80,752 2,064,072 2,132,768
Depreciable, net 6,910,359 9,988,183 16,898,542 17,479,574
Total assets 14,305,461 13,544,622 27,850,083 27,768,960
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 93,455 98,957 192,412 221,087
518,313 151,194 669,507 418,855
Deferred outflows related to other postemployment
benefits (Notes 8, 9, & 10)63,354 6,943 70,297 42,610
Total deferred outflows of resources 675,122 257,094 932,216 682,552
LIABILITIES
Accounts payable and accrued liabilities 327,904 323,611 651,515 727,643
Accrued payroll and related liabilities 225,353 53,659 279,012 289,150
Accrued interest payable 16,139 44,087 60,226 65,885
Customer security deposits - 45,700 45,700 44,100
Unearned revenue 14,889 - 14,889 18,219
576,242 663,046 1,239,288 1,154,050
Noncurrent liabilities due in more than one year:
Net pension liability (Notes 7 & 10)1,306,978 381,250 1,688,228 1,411,290
Net other post employment
benefit liability (Notes 8, 9 & 10)733,653 80,884 814,537 741,001
Long-term liabilities due in more than one year (Note 6)2,637,522 5,410,420 8,047,942 8,728,065
Total liabilities 5,838,680 7,002,657 12,841,337 13,179,403
DEFERRED INFLOWS OF RESOURCES
Property taxes 671,614 - 671,614 663,409
Deferred inflows related to pensions (Notes 7 & 10)208,730 60,888 269,618 547,498
Deferred inflow related to other postemployment
benefits (Notes 8, 9, & 10)37,490 4,109 41,599 48,658
Total deferred inflows of resources 917,834 64,997 982,831 1,259,565
NET POSITION
6,562,966 4,612,847 11,175,813 11,308,974
Public safety 180,691 - 180,691 155,323
Public works 257,602 - 257,602 257,602
Unrestricted 1,222,810 2,121,215 3,344,025 2,290,645
Restricted for:
Net investment in capital assets
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
June 30, 2019
Cash and cash equivalents, restricted (Note 2)
Deferred outflows related to pensions (Notes 7 & 10)
Land held for resale
Long-term liabilities due within one year (Note 6)
The Notes to Financial Statements are an integral part of this statement.
12
EXHIBIT 2
Charges for
Capital Grants
Governmental
Comparison
Functions/Programs Expenses Services Contributions Contributions Activities Activities 2019 2018
Governmental activities
1,049,355$ 127,096$ 4,000$ -$ (918,259)$ (918,259)$ (832,829)$
Public safety 3,566,718 84,876 292,650 3,500 (3,185,692) (3,185,692) (3,242,310)
Public works 1,861,525 114,918 1,234,090 49,260 (463,257) (463,257) (565,166)
Parks, recreation, and cultural 539,309 369,932 - 607 (168,770) (168,770) (141,961)
Community development 461,068 4,162 800 18,639 (437,467) (437,467) (360,232)
Interest on long-term debt 92,062 - - - (92,062) (92,062) (94,963)
Total governmental activities 7,570,037 700,984 1,531,540 72,006 (5,265,507) (5,265,507) (5,237,461)
Business-type activities
Water and sewer 3,491,120 3,386,429 - - - (104,691)$ (104,691) 74,230
Stormwater management 337,655 - - - - (337,655) (337,655) (253,188)
Total business-type activities 3,828,775 3,386,429 - - - (442,346) (442,346) (178,958)
Total 11,398,812$4,087,413$ 1,531,540$ 72,006$ (5,265,507) (442,346) (5,707,853) (5,416,419)
General revenues
Property taxes (Note 12)726,573 - 726,573 684,319
Sales tax 1,469,693 - 1,469,693 1,370,590
Meals tax 1,078,908 - 1,078,908 966,053
Utilities tax 735,791 - 735,791 756,225
Business license tax 586,739 - 586,739 482,003
Cigarette tax 153,104 - 153,104 175,020
Other local taxes 514,563 - 514,563 441,324
Unrestricted intergovernmental revenue 812,923 - 812,923 770,645
Unrestricted investment earnings 50,855 9,007 59,862 33,407
Restricted investment earnings 17,147 31,844 48,991 525
Gain on sale of assets 16,580 - 16,580 -
Other 69,900 379,813 449,713 356,883
Transfers (Note 17)(171,912) 171,912 - -
Total general revenues 6,060,864 592,576 6,653,440 6,036,994
Change in net position 795,357 150,230 945,587 620,575
NET POSITION AT JULY 1 7,428,712 6,583,832 14,012,544 13,391,969
NET POSITION AT JUNE 30 8,224,069$ 6,734,062$ 14,958,131$ 14,012,544$
General government administration
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF ACTIVITIES
Year Ended June 30, 2019
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
The Notes to Financial Statements are an integral part of this statement.
13
EXHIBIT 3
Comparison
2019 2018
ASSETS
Cash and cash equivalents 3,994,138$ 3,610,785$
Receivables, net 447,919 400,797
Due from other governmental units 385,678 449,644
Inventories 1,543 2,331
Land held for resale 168,375 -
Prepaids 68,960 63,666
Loans receivable 35,487 69,126
Cash and cash equivalents, restricted 309,682 297,038
Total assets 5,411,782$ 4,893,387$
LIABILITIES
Accounts payable and accrued liabilities 327,904$ 348,592$
Accrued payroll and related liabilities 225,353 238,361
14,889 18,219
Total liabilities 568,146 605,172
DEFERRED INFLOWS OF RESOURCES
Deferred revenue 1,092,948 1,065,709
FUND BALANCES
Nonspendable 323,947 103,927
Restricted 438,293 412,925
Committed 30,000 30,000
Assigned 38,621 -
Unassigned 2,919,827 2,675,654
Total fund balances 3,750,688 3,222,506
Total liabilities, deferred inflows of resources,
and fund balances 5,411,782$ 4,893,387$
Unearned revenue
General Fund
TOWN OF VINTON, VIRGINIA
BALANCE SHEET
GOVERNMENTAL FUND
June 30, 2019
The Notes to Financial Statements are an integral part of this statement.
14
EXHIBIT 4
(For
Comparison
Only)
2019 2018
Total Fund Balances – Governmental Fund 3,750,688$ 3,222,506$
are different because:
Capital assets used in governmental activities are not financial resources,
and, therefore, are not reported in the funds.
Governmental capital assets 19,352,967$
Less: accumulated depreciation (10,459,288)
8,893,679 9,058,492
Bond premiums are reported as revenues in the governmental funds,
Bond premiums total $(65,279) and accumulated amortization
is $48,196.(17,083) (19,359)
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are deferred in the funds.421,334 402,300
Financial statement elements related to other postemployment benefits and pensions
are applicable to future periods and, therefore, are not reported in the funds.
Deferred outflows related to:
Pensions 518,313
Other postemployment benefits 63,354
Deferred inflows related to:
Pensions (208,730)
Other postemployment benefits (37,490)
(1,306,978)
Net other postemployment benefits liability (733,653)
(1,705,184) (1,883,688)
Long-term liabilities are not due and payable in the current period and,
therefore, are not reported in the funds.
General obligation bonds, including unamortized deferred amounts (2,218,301)
(139,296)
(352,931)
Accrued interest payable (16,139)
Compensated absences (392,698)
(3,119,365) (3,351,539)
Total Net Position – Governmental Activities 8,224,069$ 7,428,712$
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, 2019
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.
15
EXHIBIT 5
Comparison
Only)
2019 2018
REVENUES
General property taxes 700,649$ 685,924$
Other local taxes 4,545,688 4,182,822
Permits, privilege fees, and regulatory licenses 6,408 8,955
Fines and forfeitures 60,652 71,210
Revenues from use of money and property 187,142 148,433
Charges for services 382,806 377,369
Other 136,351 137,547
Gain sharing 600,983 567,201
Recovered costs 67,319 52,732
Non-categorical aid 418,427 402,537
Categorical aid 1,395,267 1,422,307
Total revenues 8,501,692 8,057,037
EXPENDITURES
Current:
General government administration 711,058 695,683
Public safety 3,577,731 3,703,343
Public works 1,485,888 1,775,465
Parks, recreation, and cultural 515,693 533,892
Community development 458,435 485,624
Capital projects 734,326 37,880
Debt service:
Principal retirement 414,532 436,699
Interest and fiscal charges 77,568 83,211
Total expenditures 7,975,231 7,751,797
Excess of revenues over expenditures 526,461 305,240
OTHER FINANCING SOURCES (USES)
Proceeds from capital lease 157,053 257,602
Proceeds from sale of capital assets 16,580 -
Transfers out (171,912) (140,298)
Total other financing sources (uses)1,721 117,304
Net change in fund balance 528,182 422,544
FUND BALANCE AT JULY 1 3,222,506 2,799,962
FUND BALANCE AT JUNE 30 3,750,688$ 3,222,506$
General Fund
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUND
Year Ended June 30, 2019
The Notes to Financial Statements are an integral part of this statement.
16
EXHIBIT 6
(For
Comparison
Only)
2019 2018
Net change in fund balance governmental fund 528,182$ 422,544$
(212) 2,528
(164,813) (449,349)
19,034 6,788
213,763 225,055
Employer other postemployment benefit contributions $17,000
Other postemployment benefits expense (52,259)
(35,259) (35,910)
243,197 164,817
(8,535) 15,508
Change in net position of governmental activities
Governmental funds report employer pension contributions as expenditures.However,in the statement
of activities the cost of pension benefits earned net of employee contributions is reported as pension
expense.This is the amount by which employer pension contributions $328,566 exceed pension
expense $114,803 in the current period.
The issuance of long-term debt provides current financial resources to governmental funds, while the
repayment of the principal of long-term debt consumes the current financial resources of governmental
funds.Neither transaction has any effect on net position. Also,governmental funds report premiums,
discounts,and similar items when debt is issued,whereas these amounts are deferred and amortized in
the statement of activities. This amount is the net effect of those differences.
Some items reported in the statement of activities do not require the use of current financial resources
and therefore are not reported as expenditures in governmental funds.These activities consist of a
increase in compensated absences $8,535.
The net effect of the change in accrued interest expense is not reflected in the fund statements.
Governmental funds report capital outlays as expenditures;however,in the statement of activities,the
cost of those assets are allocated over their estimated useful lives as depreciation expense.This is the
amount by which capital outlay $417,396 exceeded depreciation $582,209 and the value of capital
assets disposed in the current period.
Governmental funds report employer other postemployment benefit contributions as expenditures.
However,in the statement of activities the cost of these benefits earned,net of employee contributions,
is reported as other postemployment benefit expense.
TOWN OF VINTON, VIRGINIA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE OF THE
GOVERNMENTAL FUND TO THE
STATEMENT OF ACTIVITIES
Year Ended June 30, 2019
General Fund
Revenues in the statement of activities that do not provide current financial resources are not reported
as revenues in the funds.
Amounts reported for governmental activities in the statement of activities are different because:
The Notes to Financial Statements are an integral part of this statement.
17
EXHIBIT 7
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
General property taxes 707,000$ 707,000$ 700,649$ (6,351)$
Other local taxes 4,298,049 4,304,049 4,545,688 241,639
Permits, privilege fees, and
regulatory licenses 9,950 9,950 6,408 (3,542)
Fines and forfeitures 87,100 87,100 60,652 (26,448)
Revenues from use of money
and property 173,500 173,500 187,142 13,642
Charges for services 397,750 399,750 382,806 (16,944)
Other 126,750 126,750 136,351 9,601
Gain sharing 567,200 567,200 600,983 33,783
Recovered costs 7,000 48,503 67,319 18,816
Non-categorical aid 419,767 419,767 418,427 (1,340)
Categorical aid 1,243,399 1,896,524 1,395,267 (501,257)
Total revenues 8,037,465 8,740,093 8,501,692 (238,401)
EXPENDITURES
Total expenditures 7,977,987 9,228,843 7,975,231 1,253,612
OTHER FINANCING SOURCES (USES)
Proceeds from capital lease - 156,804 157,053 249
Proceeds from sale of capital assets 1,000 1,000 16,580 15,580
Transfers out (250,478) (248,558) (171,912) 76,646
Net change in fund balance (190,000)$ (579,504)$ 528,182$ 1,107,686$
Budgeted Amounts
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL –
GENERAL FUND
Year Ended June 30, 2019
The Notes to Financial Statements are an integral part of this statement.
18
EXHIBIT 8
2018
Total Enterprise
Water and Sewer
Stormwater
Management Total Enterprise
(For Comparison
Only)
Current assets:
Cash and cash equivalents 2,194,266$ 25,550$ 2,219,816$ 2,036,547$
Receivables, net 646,368 - 646,368 628,839
Inventories 57,255 - 57,255 47,560
Prepaids 15,089 2,168 17,257 17,094
Cash and cash equivalents, restricted 534,991 - 534,991 533,191
Total current assets 3,447,969 27,718 3,475,687 3,263,231
Noncurrent assets:
Capital assets:
Nondepreciable 80,752 - 80,752 93,598
Depreciable, net 9,757,523 230,660 9,988,183 10,460,252
Total noncurrent assets 9,838,275 230,660 10,068,935 10,553,850
Total assets 13,286,244 258,378 13,544,622 13,817,081
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 98,957 - 98,957 111,074
Deferred outflows related to pensions (Notes 7 & 10)122,335 28,859 151,194 89,426
Deferred outflows related to other postemployment
benefits (Notes 8, 9, & 10)6,075 868 6,943 4,261
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
49,266 11,622 60,888 116,891
NET POSITION
Business-Type Activities –
Enterprise Funds
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2019
2019
The Notes to Financial Statements are an integral part of this statement.
19
EXHIBIT 9
2018
Total Enterprise
Water and Sewer
Stormwater
Management Total Enterprise Only)
OPERATING REVENUES
Water service charges and fees 1,573,041$ -$ 1,573,041$ 1,552,545$
Sewer service charges and fees 1,764,815 - 1,764,815 1,749,192
Water/sewer penalties 48,573 - 48,573 52,320
Other revenue 379,792 21 379,813 299,102
Total operating revenues 3,766,221 21 3,766,242 3,653,159
OPERATING EXPENSES
Total operating expenses 3,308,151 336,433 3,644,584 3,364,152
Operating income (loss)458,070 (336,412) 121,658 289,007
NON-OPERATING REVENUE (EXPENSE)
Net non-operating expense (142,118) (1,222) (143,340) (160,711)
Income (loss) before transfers 315,952 (337,634) (21,682) 128,296
TRANSFERS IN (OUT)
Change in net position 144,040 6,190 150,230 268,594
NET POSITION AT JULY 1
NET POSITION AT JUNE 30 6,797,743$ (63,681)$ 6,734,062$ 6,583,832$
2019
TOWN OF VINTON, VIRGINIA
Business-Type Activities –
Enterprise Fund
The Notes to Financial Statements are an integral part of this statement.
20
EXHIBIT 10
2018
Water and Sewer
Stormwater
Management Total Enterprise Total Enterprise
(For Comparison
Only)
OPERATING ACTIVITIES
Receipts from customers 3,370,500$ -$ 3,370,500$ 3,351,131$
Receipts from other sources 379,792 21 379,813 299,102
Payments to suppliers (1,543,248) (79,740) (1,622,988) (1,313,949)
Payments to employees (1,074,833) (250,226) (1,325,059) (1,281,075)
Net cash provided by (used in) operating activities 1,132,211 (329,945) 802,266 1,055,209
NONCAPITAL FINANCING ACTIVITIES
Transfers from (to) other funds (171,912) 343,824 171,912 140,298
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchases of capital assets (63,586) - (63,586) (118,846)
Principal paid on long-term liabilities (591,312) - (591,312) (595,555)
Proceeds from long-term liabilities - 3,500 3,500 534,810
Interest paid (177,340) (1,222) (178,562) (166,641)
Net cash provided by (used in) capital and related
financing activities (832,238) 2,278 (829,960) (346,232)
INVESTING ACTIVITIES
Interest received on investments 40,851 - 40,851 8,152
Net increase in cash and cash equivalents
CASH AND CASH EQUIVALENTS
Beginning at July 1 2,560,345 9,393 2,569,738 1,712,311
Ending at June 30 2,729,257$ 25,550$ 2,754,807$ 2,569,738$
RECONCILIATION TO EXHIBIT 8
Cash and cash equivalents 2,194,266$ 25,550$ 2,219,816$ 2,036,547$
Cash and cash equivalents, restricted 534,991 - 534,991 533,191
2,729,257$ 25,550$ 2,754,807$ 2,569,738$
Reconciliation of operating income to net cash
provided by (used in) operating activities
Operating income (loss)458,070$ (336,412)$ 121,658$ 289,007$
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation 768,067 8,543 776,610 766,804
Pension expense net of employer contributions (34,847) (2,984) (37,831) (30,953)
Other postemployment benefit expense net of
employer contributions 5,902 (2,371) 3,531 3,713
Change in certain assets and liabilities:
(Increase) decrease in:
Receivables, net (17,529) - (17,529) (4,026)
Inventories (9,695) - (9,695) 483
Prepaids 146 (309) (163) (2,705)
Increase (decrease) in:
Accounts payable and accrued liabilities (44,586) 240 (44,346) 43,635
Accrued payroll and related liabilities (346) 3,216 2,870 3,082
Customer security deposits 1,600 - 1,600 1,100
Compensated absences 5,429 132 5,561 (14,931)
Net cash provided by (used in) operating activities 1,132,211$ (329,945)$ 802,266$ 1,055,209$
NONCASH CAPITAL AND RELATED FINANCING
Capital asset purchases included in accounts payable 26,771$ -$ 26,771$ 37,865$
Capital asset purchases using capital lease proceeds -$ 239,203$ 239,203$ -$
Capitalized interest -$ -$ -$ 323$
2019
TOWN OF VINTON, VIRGINIA
Business-Type Activities –
Enterprise Fund
The Notes to Financial Statements are an integral part of this statement.
21
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
22
Note 1.Summary of Significant Accounting Policies
A.The Financial Reporting Entity
The Town of Vinton was established in 1884. It is a political subdivision of the Commonwealth
of Virginia operating under the Council-Manager form of government. The Town Council
consists of a mayor and four other council members. The Town is part of Roanoke County and
has taxing powers subject to state-wide restrictions and tax limits.
Vinton provides a full range of municipal services including police, refuse collection, recycling,
public improvements, planning and zoning, general administrative services, fire, first aid,
recreation, and water and sewer services. Fire and first-aid services are supplemented by
volunteer departments.
Jointly Governed Organizations
Roanoke Valley Resource Authority
The Town of Vinton, Roanoke County, and the City of Roanoke jointly participate in the
Roanoke Valley Resource Authority, which operates a regional solid waste disposal system that
includes a sanitary landfill, waste collection, and transfer station. The Authority is governed by a
board composed of seven members appointed by the governing bodies of participating
jurisdictions. Town Council appoints one member. The Town has control over the budget and
financing of the Authority only to the extent of representation by the board member appointed.
The participating localities are each responsible for their pro-rata share, based on population, of
any year-end operating deficit. For the current year, the Town remitted $192,741 to the Authority
for services. A separate financial statement can be obtained from the Roanoke Valley Resource
Authority, 110 Hollins Road, NE, Roanoke, Virginia 24012.
Roanoke Valley Regional Pound Facility
The Counties of Roanoke and Botetourt, the City of Roanoke, the Town of Vinton, and the
Roanoke Valley Society for the Prevention of Cruelty to Animals, Inc. formed the Advisory
Board of the Roanoke Valley Regional Pound Facility to construct and operate a regional pound
facility. The Board is composed of nine members. Each locality’s financial obligation is based
on the number of animals caged per day at the facility. The Town’s proportionate share totaled
$50,545 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 $456,235 in the current year. Separate financial statements are
not available.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
23
Note 1.Summary of Significant Accounting Policies (Continued)
A.The Financial Reporting Entity (Continued)
Jointly Governed Organizations (Continued)
Western Virginia Regional Industrial Facility Authority
The Town of Vinton, County of Botetourt, County of Franklin, County of Roanoke, City of
Salem, and the City of Roanoke jointly participate in the Western Virginia Regional Industrial
Facility Authority, which functions to enhance the economic base for members by developing,
owning, and operating facilities on a cooperative basis. The Authority is governed by a board
composed of twelve members appointed by the governing bodies of participating jurisdictions.
Town Council appoints two members. There were no associated costs to members for
participation in the Authority in the current year. A separate financial statement can be obtained
from the Western Virginia Regional Industrial Facility Authority care of Roanoke Regional
Partnership, 111 Franklin Road, SE, Roanoke, Virginia 24011.
Joint Venture
Regional Fire Training Facility
The Town participates in an intergovernmental agreement with the County of Roanoke and the
Cities of Roanoke and Salem for the operation of a regional fire training facility. The Roanoke
Valley Regional Fire Training Academy Board is responsible for overseeing the management,
operation, and administration of the Academy. Each participating jurisdiction maintains a
leasehold interest in the project and shares costs of operation and maintenance equal to the
jurisdiction’s payment percentage as defined in the agreement. The Town’s participating interest
is 4%. The Town’s share of the operating cost was approximately $3,545 in the current year.
Separate financial statements are not available.
B.Individual Component Unit Disclosures
As required by generally accepted accounting principles, these financial statements present the
Town as the primary government. A component unit is an entity for which the primary
government is considered to be financially accountable. There are no component units within this
reporting entity.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
24
Note 1.Summary of Significant Accounting Policies (Continued)
C.Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
changes in net position) report information on all of the activities of the Town. For the most part,
the effect of interfund activity has been removed from these statements. Interfund services
provided and used are not eliminated in the process of consolidation. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported separately
from business-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include (1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment and (2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as general
revenues.
Separate financial statements are provided for the governmental fund and proprietary funds.
D.Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund financial
statements. Revenues are recorded when earned, and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the Town considers revenue as available if it is collected within
45 days of the end of the current fiscal period. Expenditures generally are recorded when a
liability is incurred, as under accrual accounting. However, debt service expenditures, as well as
expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are
all considered to be susceptible to accrual and have been recognized as revenues of the current
fiscal period. All other revenue items are considered to be measurable and available only when
cash is received by the Town.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
25
Note 1.Summary of Significant Accounting Policies (Continued)
D.Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
The Town reports the following major governmental fund:
The general fund is the Town’s primary operating fund. It accounts for all financial
resources of the Town, except those required to be accounted for in another fund.
The Town reports the following major proprietary funds:
The enterprise funds account for the financing of services to the general public where all or
most of the operating expenses involved are intended to be recovered in the form of user
charges, or where management has decided that periodic determination of revenues earned,
expenses incurred, and/or net income is appropriate for management control, accountability,
or other purposes. The enterprise funds consist of the activities relating to water and sewer
services and stormwater management.
Amounts reported as program revenues include (1) charges to customers or applicants for goods,
services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as
general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund’s principal ongoing operations. The
principal operating revenues of the water and sewer enterprise fund are charges to customers for
sales and services. The stormwater management fund has not begun to collect dedicated utility
fees. Operating expenses for enterprise funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as non-operating revenues and expenses.
E.Budgets and Budgetary Accounting
The following procedures are used in establishing the budgetary data reflected in the financial
statements:
1)Prior to June 30, the Town Manager submits to Council a proposed operating and capital
budget for the fiscal year commencing the following July 1. This budget includes proposed
expenditures and the means of financing them.
2)Public hearings are conducted to obtain citizen comments.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
26
Note 1.Summary of Significant Accounting Policies (Continued)
E.Budgets and Budgetary Accounting (Continued)
3)Prior to June 30, the budgets for the general and enterprise funds are legally enacted through
passage of an appropriations ordinance. Town Council may, from time to time, amend the
budget providing for additional expenditures and the means for financing them. Town
Council approved additional general fund appropriations of approximately $1,249,000 during
the fiscal year ended June 30, primarily for capital projects deferred from the prior year and
additional operating expenditures.
4)The appropriations ordinance places legal restrictions on expenditures at the department or
function level. Management can over-expend at the line item level without approval of Town
Council. The appropriation for each department or function can be revised only by Town
Council. The Town Manager is authorized to transfer budget amounts within departments.
All budget data presented in Exhibit 7 is at the legal level of budgetary control.
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, 2019
(Continued)
27
Note 1.Summary of Significant Accounting Policies (Continued)
I.Prepaid Items (Continued)
Proprietary fund prepaid items consist primarily of inventory purchased before year end but not
received and on hand until after year end. Prepaid items are accounted for using the consumption
method. The costs of these items are expensed in the subsequent fiscal year when they are
actually consumed or used.
J.Land Held for Resale
Land held for resale represents a property that was purchased by the Town for the purposes of
economic development. The Town intends to sell the property as soon as possible and thus it will
not be placed into service to benefit the Town.
K.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 $10,000 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
L.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, 2019
(Continued)
28
Note 1.Summary of Significant Accounting Policies (Continued)
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, 2019
(Continued)
29
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
The Town strives to maintain a General Fund reserve equal to two months of discretionary
General Fund revenues.
Q.Net Position
The storm water management fund has a deficit of $12,043 in net investment in capital assets due
to a timing difference of when a new vehicle was placed into service and begun depreciation and
the first principal payment which was not until after year end.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
30
Note 1.Summary of Significant Accounting Policies (Continued)
R.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.
S.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.
T.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 one year from the date of purchase.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
31
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 one 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 $746,242 of unspent lease proceeds, $46,300 of
utility deposits, $50,109 of evidence found, and $2,022 of flex benefit spending that can only be used
for specific purposes.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
32
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, 2019
(Continued)
33
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 207,137 62,509 (118,359)- 151,287
Total capital assets, not depreciated 2,039,170 62,509 (118,359)- 1,983,320
Capital assets, depreciated
Buildings and improvements 9,485,087 78,142 (2,511)- 9,560,718
Machinery and equipment 4,279,323 354,887 (284,536)- 4,349,674
Infrastructure 3,419,038 40,217 - - 3,459,255
Total capital assets, depreciated 17,183,448 473,246 (287,047)- 17,369,647
Less accumulated depreciation for:
Buildings and improvements 4,737,423 274,200 (2,511)- 5,009,112
Machinery and equipment 3,942,496 139,071 (284,536)- 3,797,031
Infrastructure 1,484,207 168,938 - - 1,653,145
Total accumulated depreciation 10,164,126 582,209 (287,047)- 10,459,288
Total capital assets, depreciated, net 7,019,322 (108,963)- - 6,910,359
Governmental activities
capital assets, net $9,058,492 $(46,454)$(118,359)$- $8,893,679
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
34
Note 5.Capital Assets (Continued)
Beginning Ending
Capital assets, not depreciated
Land $80,752 $- - $80,752
Construction in progress 12,846 - (12,846)-
Total capital assets, not depreciated 93,598 - (12,846)80,752
Capital assets, depreciated
Utility plant 19,417,987 52,765 (42,892)19,427,860
Sewage treatment contract 4,111,373 - - 4,111,373
Machinery and equipment 1,667,097 251,776 (70,691)1,848,182
Total capital assets, depreciated 25,196,457 304,541 (113,583)25,387,415
Less accumulated depreciation for:
Utility plant 11,706,353 549,639 (42,892)12,213,100
Sewage treatment contract 1,826,023 143,961 - 1,969,984
Machinery and equipment 1,203,829 83,010 (70,691)1,216,148
Total accumulated depreciation 14,736,205 776,610 (113,583)15,399,232
Total capital assets, depreciated, net 10,460,252 (472,069 - 9,988,183
Business-type activities
capital assets, net $10,553,850 $(472,069 (12,846)$10,068,935
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, 2019
(Continued)
35
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 $2,617,814 $- $(306,058)$2,311,756 $326,522
Obligation payable –
Roanoke County 166,500 - (55,500)111,000 55,500
Obligation payable –
36,536 - (8,240)28,296 8,444
Capital leases 240,612 157,053 (44,734)352,931 56,185
Compensated absences 384,163 135,308 (126,773)392,698 129,591
Business-type
General obligation bonds $3,789,564 $- $(336,084) $3,453,480 $358,028
Revenue bonds 1,852,000 - (165,000) 1,687,000 174,000
Obligation payable –
252,532 - (15,671)236,861 15,275
Bond premiums 617 - (617)--
Capital leases 498,198 242,703 (74,557)666,344 108,000
Compensated absences 24,220 11,858 (6,297)29,781 7,743
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
36
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
2020 326,522 $55,643 $56,185 $9,327 $63,944 $619
2021 330,638 47,801 58,373 7,792 64,152 409
2022 339,387 39,635 59,951 6,215 8,868 194
2023 343,733 31,407 61,571 4,594 2,332 14
2024 356,578 22,797 63,236 2,929 - -
2025-2029 614,898 25,111 53,615 1,418 - -
2,311,756 $222,394 $352,931 $32,275 $139,296 $1,236
Business-type Activities
General Obligation
Bonds Revenue Bonds
Obligation Payable
WVWA
Fiscal
Year Principal Interest Principal Interest Principal Interest
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 66,708 181,000 21,863 16,383 4,328
2024 404,748 54,484 186,000 18,101 16,771 3,940
2025-2029 1,101,461 125,571 790,000 32,800 89,993 13,564
2030-2033 446,872 25,927 - - 66,797 2,939
$3,453,480 $542,508 $1,687,000 $160,361 $236,861 $39,988
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
37
Note 6.Long-Term Liabilities (Continued)
Capital Leases
Fiscal
Year Principal Interest
2020 108,000 $16,886
2021 110,818 14,069
2022 113,709 11,178
2023 111,764 8,210
2024 109,729 5,333
2025-2026 112,324 3,296
$666,344 $58,972
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, 2019 was 1.22. Statistical Section Table 11 presents the pledged revenue coverage
ratio.
Details of long-term indebtedness are as follows:
Interest
Rates Date Issued
Final
Maturity
Date
Amount of
Original
Issue Activities
Business-
Type
Activities
General Obligation Bonds
Virginia Resource Authority:
G.O. Public Improvement Bonds 3.64-4.96%06/01/06 10/01/26 $755,000 $390,000 $-
Virginia Revolving Loan Fund:
G.O. Water and Sewer Bonds 3.30%07/24/03 07/01/24 1,250,704 - 436,743
G.O. Water and Sewer Bonds 3.10%10/01/04 10/01/26 2,479,000 - 1,132,515
G.O. Water and Sewer Bonds 3.10%01/12/06 03/01/26 1,210,000 - 519,630
Virginia Association of Counties:
G.O. Refunding Bonds 2.05%05/25/16 02/01/27 702,000 562,000 -
Capital One Public Funding:
G.O. Public Improvement Bonds 2.85%06/27/13 11/01/32 1,993,152 - 1,364,592
Carter Bank and Trust:
G.O. Refunding Bonds 2.05%06/27/13 11/01/24 2,228,409 1,359,756 -
2,311,756 3,453,480
Plus bond premium, net of amortization 17,083 -
$2,328,839 $3,453,480
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
38
Note 6.Long-Term Liabilities (Continued)
Details of long-term indebtedness are as follows:(Continued)
Interest
Rates Date Issued
Final
Maturity
Date
Amount of
Original
Issue Activities
Business-
Type
Activities
Revenue Bonds
Virginia Association of Counties:
Revenue Water and Sewer Bonds 2.05%05/25/16 08/01/27 $1,786,000 $ - $1,687,000
Capital Lease
U.S. Bancorp 2.29%12/29/17 12/29/22 $46,171 $- $32,867
U.S. Bancorp 2.43%12/29/17 12/29/24 746,241 206,009 390,774
Home Trust Bank 3.10%07/27/18 07/27/25 157,053 146,922 -
Signature Public Funding Corp.3.02%04/19/19 04/19/26 242,703 - 242,703
$352,931 $666,344
Obligations Payable
Roanoke County 0.00%07/01/11 07/01/20 $625,000 $111,000 $-
RCACP 2.95%12/31/13 09/30/22 73,180 28,296 -
WVWA 2.35%03/01/15 09/01/32 294,516 - 236,861
$139,296 $236,861
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 System) along with plans for other
employer groups in the Commonwealth of Virginia. Members earn one month of service credit for
each month they are employed and for which they and their employer pay contributions to VRS.
Members are eligible to purchase prior service, based on specific criteria as defined in the Code of
Virginia, as amended. Eligible prior service that may be purchased includes prior public service,
active military service, certain periods of leave, and previously refunded service.
The System administers three different benefit structures for covered employees –Plan 1, Plan 2, and
Hybrid. Each of these benefit structures has a different eligibility criteria. The specific information
for each plan and the eligibility for covered groups within each plan are available at
https://www.varetire.org/members/benefits/defined-benefit/plan1.asp,
https://www.varetire.org/members/benefits/defined-benefit/plan2.asp,
https://www.varetirement.org/hybrid.html.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
39
Note 7.Defined Benefit Pension Plan (Continued)
Employees Covered by Benefit Terms
As of the June 30, 2017 actuarial valuation, the following employees were covered by the benefit
terms of the pension plan:
Number
Inactive members or their beneficiaries currently receiving benefits 68
Inactive members:
Vested inactive members 24
Non-vested inactive members 15
Inactive members active elsewhere in VRS 57
Total inactive members 96
Active members 86
Total covered employees 250
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.
The political subdivision’s contractually required contribution rate for the year ended June 30, 2019
was 11.68% of covered employee compensation. This rate was based on an actuarially determined
rate from an actuarial valuation as of June 30, 2017.
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 $424,410 and
$411,289 for the years ended June 30, 2019 and June 30, 2018, respectively.
Net Pension Liability
The political subdivision’s net pension liability is calculated separately for each employer and
represents that particular employer’s total pension liability determined in accordance with GASB
Statement No. 68, less that employer’s fiduciary net position. For political subdivisions, the net
pension liability was measured as of June 30, 2018. The total pension liability used to calculate the
net pension liability was determined by an actuarial valuation performed as of June 30, 2017 rolled
forward to the measurement date of June 30, 2018.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
40
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, 2017, 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, 2018.
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, 2017 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, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
41
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, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
42
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. Consistent with the phased-in funding provided by
the General Assembly for state and teacher employer contributions; political subdivisions were also
provided with an opportunity to use an alternate employer contribution rate. For the year ended
June 30, 2018, the alternate rate was the employer contribution rate used in the FY 2012 or 90% of
the actuarially determined employer contribution rate from the June 30, 2015, actuarial valuations,
whichever is greater. From July 1, 2018 on, participating employers are assumed to continue 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, 2017 $17,919,444 $16,508,154 $1,411,290
Changes for the year:
Service cost 478,932 - 478,932
Interest 1,218,558 - 1,218,558
Differences between expected
and actual experience 361,554 - 361,554
Contributions –employer - 401,879 (401,879)
Contributions –employee - 181,566 (181,566)
Net investment income - 1,210,341 (1,210,341)
Benefit payments, including refunds
of employee contributions (1,022,942)(1,022,942)-
Administrative expenses - (10,609)10,609
Other changes - (1,071)1,071
Net changes 1,036,102 759,164 276,938
Balances at June 30, 2018 $18,955,546 $17,267,318 $1,688,228
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
43
Note 7.Defined Benefit Pension Plan (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the political subdivision using the discount rate of
7.00%, as well as what the political subdivision’s net pension liability would be if it were calculated
using a discount rate that is one percentage point lower (6.00%) or one percentage point higher
(8.00%) than the current rate:
1.00%Current 1.00%
Decrease Discount Increase
(6.00%)Rate (7.00%)(8.00%)
Political subdivision’s net
pension liability $4,075,882 $1,688,228 $(296,972)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended June 30, 2019, the political subdivision recognized pension expense of $163,046.
At June 30, 2019, 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 $242,229 $134,886
Change in assumptions 2,868 -
on pension plan investments - 134,732
Employer contributions subsequent to the
measurement date 424,410 -
Total $669,507 $269,618
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
44
Note 7.Defined Benefit Pension Plan (Continued)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions (Continued)
The $424,410 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, 2020. 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
2020 $47,501
2021 108,420
2022 (166,328)
2023 (14,114)
2024 -
Thereafter -
Pension Plan Data
Information about the VRS Political Subdivision Retirement Plans is also available in the separately
issued VRS 2018 Comprehensive Annual Financial Report (CAFR). A copy of the 2018 VRS CAFR
may be downloaded from the VRS website at http://www.varetire.org/Pdf/Publications/2018-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, 2019, approximately $35,393 was payable to the Virginia Retirement System for the
legally required contributions related to June 2019 payroll.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
45
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
Total OPEB Liability
The Town’s total OPEB liability of $513,537 was measured as of June 30, 2019 and was determined
based on an actuarial valuation performed as of January 1, 2018.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
46
Note 8.Other Postemployment Benefits Liability –Local Plan (Continued)
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%plus a variable merit component that is
dependent on years of service
Healthcare cost trend rates 3.70%initially, grading up to 4.20% ultimately
Retirees’ share of benefit-related costs $-0-
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, 2018 $442,003
Changes for the year:
Service cost 47,628
Interest 18,664
Assumption or other input changes 20,076
Benefit payments (14,834)
Net changes 71,534
Balance at June 30, 2019 $513,537
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
47
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
(2.50%) or one percentage point higher (4.50%) than the current discount rate:
1.00%Current 1.00%
Decrease Discount Increase
(2.50%)Rate (3.50%)(4.50%)
Total OPEB liability $570,260 $513,537 $460,616
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%
Decrease
Healthcare
Cost Trend
1.00%
Increase
(2.70%)
Rates
(3.70%)(4.70%)
Total OPEB liability $423,275 $513,537 $626,322
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
48
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, 2019, the Town recognized OPEB expense of $66,874. At
June 30, 2019, 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 $17,434 $13,599
Total $17,434 $13,599
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, 2020. 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
2020 $582
2021 582
2022 582
2023 582
2024 582
Thereafter 925
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
49
Note 9.Other Postemployment Benefits Liability –Virginia Retirement System Plan
In addition to their participation in the pension plan offered through the Virginia Retirement System
(VRS), the Town also participates in a cost-sharing and agent multi-employer other postemployment
benefit plans described as follows.
Plan Description
Group Life Insurance Program
All full-time teachers and 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. Both of these plans are considered multiple
employer, cost sharing plans.
Contributions
Contributions to the VRS OPEB program was based on actuarially determined rates from actuarial
valuations as of June 30, 2017. 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 are 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, 2019 Contribution $18,863
June 30, 2018 Contribution $19,610
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
50
Note 9.Other Postemployment Benefits Liability –Virginia Retirement System Plan (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, 2018 and the total OPEB liabilities used to
calculate the net OPEB liability were determined by actuarial valuations 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, 2018 relative to the total of the
actuarially determined employer contributions for all participating employers.
Group Life Insurance Program
June 30, 2019 proportionate share of
liability $301,000
June 30, 2018 proportion 0.01983%
June 30, 2017 proportion 0.01989%
June 30, 2019 expense $5,000
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, 2019, 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 $15,000 $5,000
Change in assumptions - 13,000
OPEB plan investments - 10,000
Changes in proportion 19,000 -
Employer contributions subsequent to the
measurement date 18,863 -
Total $52,863 $28,000
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
51
Note 9.Other Postemployment Benefits Liability –Virginia Retirement System Plan (Continued)
OPEB Liability, OPEB Expense and Deferred Inflows and Outflows of Resources Related to
OPEB (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, 2020. 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
2020 $-
2021 -
2022 -
2023 2,000
2024 4,000
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, 2017, applied to all periods included in the measurement and rolled
forward to the measurement date of June 30, 2018:
Inflation 2.5%
Salary increases, including inflation:
Locality-general employees
Locality –hazardous duty
employees
Teachers
3.5 –5.35%
3.5 –4.75%
3.5 –5.95%
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, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
52
Note 9.Other Postemployment Benefits Liability –Virginia Retirement System Plan (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 liability 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, 2018, net OPEB
liability amounts for the VRS OPEB program is as follows (amounts expressed in thousands):
Group Life
Insurance
Program
Total OPEB Liability $ 3,113,508
Plan fiduciary net
position 1,594,773
Employers’ net OPEB
liability (asset)$ 1,518,735
Plan fiduciary net
position as a percentage
of total OPEB liability 51.22%
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, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
53
Note 9.Other Postemployment Benefits Liability –Virginia Retirement System Plan (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, 2019
(Continued)
54
Note 9.Other Postemployment Benefits Liability –Virginia Retirement System Plan (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, 2018, the
rate contributed by the employer for the OPEB liabilities will be subject to the portion of the VRS
Board-certified rates that are funded by the Virginia General Assembly. From July 1, 2018 on,
participating employers are assumed to contribute 100% of the actuarially determined contribution
rates. Based on those assumptions,the 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 liabilities 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 $394,000 $301,000 $226,000
OPEB Plan Fiduciary Net Position
Information about the various VRS OPEB plan fiduciary net position is available in the separately
issued VRS 2018 Comprehensive Annual Financial Report (CAFR). A copy of the 2018 VRS CAFR
may be downloaded from the VRS website at http://www.varetire.org/Pdf/Publications/2018-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, 2019, the following amounts were payable to the Virginia Retirement System for the
legally required contributions related to June 2019 payroll.
Group Life Insurance $1,573
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
55
Note 10.Summary of Pension and Other Postemployment Benefits Elements
Total
Governmental Business-Type Primary
Activities Activities Government
Deferred outflows of resources –
pensions
Difference between expected and
actual experience
VRS $187,527 $54,702 $242,229
Changes of assumptions
VRS 2,220 648 2,868
Employer contributions subsequent
to the measurement date
VRS 328,566 95,844 424,410
Total deferred outflows of
resources –pensions $518,313 $151,194 $669,507
Deferred outflows of resources –
OPEB
Differences between expected and
actual experience
VRS GLI $13,519 $1,481 $15,000
Changes of assumptions
Local plan 15,712 1,722 17,434
Employer contributions subsequent
to the measurement date
VRS GLI 17,000 1,863 18,863
Changes in proportional share
VRS GLI 17,123 1,877 19,000
Total deferred outflows of
resources –OPEB $63,354 $6,943 $70,297
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
56
Note 10.Summary of Pension and Other Postemployment Benefit Elements (Continued)
Total
Governmental Business-Type Primary
Activities Activities Government
Net pension liability
VRS $1,306,978 $381,250 $1,688,228
Total net pension liability $1,306,978 $381,250 $1,688,228
Local plan $462,381 $51,156 $513,537
VRS GLI 271,272 29,728 301,000
Total net OPEB liability $733,653 $80,884 $814,537
Deferred inflows of resources –
pensions
Difference between expected and
actual experience
VRS $104,428 $30,458 $134,886
Net difference between projected
and actual investment earnings
on pension plan investments
VRS 104,302 30,430 134,732
Total deferred inflows of
resources –pensions $208,730 $60,888 $269,618
Deferred inflows of resources –
OPEB
Difference between expected and
actual experience
VRS GLI $4,507 $493 $5,000
Change in assumptions
Local plan 12,255 1,344 13,599
VRS GLI 11,716 1,284 13,000
Net difference between projected
and actual investment earnings
on OPEB plan investments
VRS GLI 9,012 988 10,000
Total deferred inflow of
resources –OPEB $37,490 $4,109 $41,599
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
(Continued)
57
Note 11.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 12.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 13.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, 2019
(Continued)
58
Note 14.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
2018-2019, total premiums paid were approximately $90,000. 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 2018-2019, total premiums paid were approximately $88,000.
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 2018-2019, total premiums paid were approximately $737,000.
Note 15.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 $15.1 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, 2019
(Continued)
59
Note 15.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 16.Major Customer/Taxpayer
During fiscal year 2019, approximately 5.4% of the Town’s business-type revenues were generated
by one industrial customer.
Note 17.Interfund Activity
The primary purpose of the $171,912 from the general fund and $171,912 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, 2019
(Continued)
60
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 $1,543
Land held for resale 168,375
Prepaids 68,960
CDBG revolving loan 64,512
Vinyard Flower Fund 20,557
Total nonspendable 323,947
Restricted for:
Public safety 180,691
Public works 257,602
Total restricted 438,293
Committed
Assigned
Capital outlay 38,621
Unassigned 2,919,827
Total fund balance
The Stormwater Management Fund was created in 2017 and has carried a negative fund balance since
inception. It is used to track costs related to stormwater and currently funded by transfers 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
On July 1, 2019, the Town entered into a new memorandum of understanding with the County of
Roanoke (County)to replace the gain sharing agreement that expired on June 30, 2019. The gain
sharing agreement provided the Town with 11.77% of the sales tax received by the County for the
length of the gain sharing agreement. The new memorandum of understanding reduces the Town’s
percentage of sales tax to the formula in the state code. The County will assume the responsibility
for 100% of the fire and rescue operations in the Town, instead of the current gain sharing agreement
amount of 50%. The Town will continue to carry the debt on the fire and rescue building in the
new agreement, and the County will reimburse the Town for the debt payments on an agreed
payment schedule. The new agreement also includes the County assuming responsibility for the
Town’s percentage of the costs associated with the Regional Center for Animal Care and Protection.
In the new memorandum of understanding, the County agreed to continue a payment of $110,000 for
refuse collection services to the Town of Vinton that was originally agreed upon in the gain sharing
agreement. The new agreement is expected to be revenue-neutral for the Town and County.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
61
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. 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.
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.
62
REQUIRED SUPPLEMENTARY
INFORMATION
EXHIBIT 11
2018 2017 2016 2015 2014
Total Pension Liability
Service cost 478,932$ 443,567$ 426,921$ 450,265$ 430,229$
Interest on total pension liability 1,218,558 1,197,526 1,167,910 1,112,256 1,065,284
Difference between expected and actual experience 361,554 (356,343) (201,924) 139,140 -
Changes in assumptions - 8,604 - - -
Benefit payments, including refunds of employee contributions (1,022,942) (962,861) (976,757) (836,477) (812,476)
Net change in total pension liability 1,036,102 330,493 416,150 865,184 683,037
Total pension liability - beginning 17,919,444 17,588,951 17,172,801 16,307,617 15,624,580
Total pension liability - ending 18,955,546 17,919,444 17,588,951 17,172,801 16,307,617
Plan Fiduciary Net Position
Net change in plan fiduciary net position 759,164 1,416,776 (159,092) 422,753 1,714,351
Plan fiduciary net position - beginning 16,508,154 15,091,378 15,250,470 14,827,717 13,113,366
Plan fiduciary net position - ending 17,267,318 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, 2019
entity’s fiscal year 2019 financial report.
Plan Year
The Notes to Required Supplementary Information are an integral part of this statement.
63
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
2019 424,410$ 424,410$ -$ $ 3,634,236 11.68%
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, 2019
REQUIRED SUPPLEMENTAL INFORMATION
Schedule is intended to show information for 10 years.Since 2015 was the first year for this presentation,only five 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.
64
EXHIBIT 13
Fiscal Year 2019 Fiscal Year 2018
Local Plan Local Plan
Total OPEB Liability
Service cost 47,628$ 49,307$
Interest on total OPEB liability 18,664 15,730
Changes in assumptions 20,076 (17,718)
Benefit payments (14,834) (10,820)
Net change in total OPEB liability 71,534 36,499
Total OPEB liability - beginning 442,003 405,504
Total OPEB liability - ending 513,537 442,003
Plan Fiduciary Net Position
Contributions - employer 14,834 10,820
(14,834) (10,820)
Net change in plan fiduciary net position - -
Plan fiduciary net position - beginning - -
Plan fiduciary net position - ending - -
Net OPEB liability - ending 513,537$ 442,003$
Plan fiduciary net position as a percentage of total OPEB liability 0%0%
Covered payroll 3,831,682$ 3,831,682$
Net OPEB liability as a percentage of covered payroll 13.40%11.54%
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, 2019
Benefit payments
The Notes to Required Supplementary Information are an integral part of this statement.
65
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
2019 0.01983%301,000$ $ 3,762,660 8.00%51.22%
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, 2019
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.
66
EXHIBIT 15
Entity
Fiscal
Year
Ended
June 30
Contractually
Required
Contribution
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
2019 18,863$ 18,863$ -$ 3,634,236$ 0.52%
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, 2019
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.
67
(Continued)
68
TOWN OF VINTON, VIRGINIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2019
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.
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, 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, GLI OPEB
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.
-Applicable to: Pension, GLI OPEB
69
TOWN OF VINTON, VIRGINIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2019
Note 2.Changes of Assumptions (Continued)
All Others (Non 10 Largest) –Hazardous Duty/Public Safety Employees:
-Update mortality table
-Increased retirement rate at age 50 and lowered rates at older ages
-Update withdrawal rates to better fit experience
-Update disability rates to better fit experience
-No changes to salary rates
-Lowered Line of Duty rate
-Applicable to: Pension, GLI OPEB
THIS PAGE INTENTIONALLY BLANK
70
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
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Governmental activities
Net investment in capital assets 6,562,966$ 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$
Restricted 438,293 206,673 132,387 209,649 235,246 190,161 91,676 - 20,053 20,000
Unrestricted 1,222,810 673,717 770,368 801,646 499,226 2,291,758 2,219,240 1,972,859 1,491,375 1,362,770
Total governmental activities net position 8,224,069$ 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$
Business-type activities
Net investment in capital assets 4,612,847$ 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$
Unrestricted 2,121,215 1,823,180 1,504,611 1,035,813 117,415 410,722 394,976 339,523 661,273 297,150
Total business-type activities net position 6,734,062$ 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$
Primary government
Net investment in capital assets 11,175,813$ 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$
Restricted 438,293 206,673 132,387 209,649 235,246 190,161 91,676 - 20,053 20,000
Unrestricted 3,344,025 2,496,897 2,274,979 1,837,459 616,641 2,702,480 2,614,216 2,312,382 2,152,648 1,659,920
Total primary government net position 14,958,131$ 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$
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
71
TABLE 2
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Expenses
Governmental activities
General government 1,049,355$ 962,685$ 992,699$ 1,001,560$ 927,954$ 962,341$ 942,315$ 948,803$ 934,388$ 1,023,227$
Public safety 3,566,718 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
Public works 1,861,525 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
Parks, recreation, and cultural 539,309 517,122 591,208 591,342 621,897 635,252 588,649 553,866 583,569 617,778
Community development 461,068 416,637 479,973 447,908 427,409 575,557 398,517 1,034,510 339,983 393,160
Interest on long-term debt 92,062 94,963 106,756 126,164 193,242 200,584 143,455 183,672 194,159 203,787
Total governmental activities 7,570,037 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
Business-type activities
Water and sewer 3,491,120 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
Stormwater management 337,655 253,188 419,957 - - - - - - -
Total business-type activities expense 3,828,775 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
Total primary government expenses 11,398,812$ 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$
Program Revenues
Governmental activities
Charges for services
Public safety 127,096$ 93,599$ 118,454$ 63,735$ 72,356$ 88,364$ 89,115$ 91,196$ 119,870$ 108,187$
Public works 84,876 110,167 110,145 110,099 110,295 110,425 110,115 110,460 110,380 110,175
Other activities 489,012 506,160 540,600 559,171 570,459 554,666 495,133 440,883 466,306 489,901
Operating grants and contributions 1,531,540 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
Capital grants and contributions 72,006 84,184 408,362 317,643 384,074 114,966 53,749 66,545 75,188 8,034
Total governmental activities program revenues 2,304,530 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
Business-type activities
Charges for services
Water and sewer 3,386,429 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
Capital grants and contributions - - - - - - - - - -
Total business-type activities program revenues 3,386,429 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
Total primary government program revenues 5,690,959$ 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$
Net (expense) revenue
Governmental activities (5,265,507)$ (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)$
Business-type activities (442,346) (178,958) (109,631) 333,756 201,365 (171,926) (191,980) (290,491) (330,808) (799,293)
Total primary government net expense (5,707,853)$ (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)$
TOWN OF VINTON, VIRGINIA
CHANGE IN NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
72
TABLE 2
(Continued)
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
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 726,573$ 684,319$ 697,622$ 640,391$ 539,764$ 448,349$ 453,135$ 510,558$ 429,409$ 419,401$
Sales tax 1,469,693 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
Business license tax 586,739 482,003 500,713 508,747 489,749 517,111 491,996 460,638 454,636 456,536
Meals tax 1,078,908 966,053 953,721 955,488 912,713 900,591 912,226 909,814 864,448 842,384
Other taxes 667,667 616,344 585,378 576,896 561,080 628,177 692,669 698,412 734,316 755,808
Utilities tax 735,791 756,225 755,985 767,736 782,869 787,097 785,555 782,487 801,264 803,044
Intergovernmental revenue not restricted 812,923 770,645 773,690 744,247 768,956 756,199 807,117 773,617 748,815 664,975
Investment earnings not restricted 50,855 25,780 19,406 17,709 15,438 14,540 4,434 3,020 1,904 3,187
Restricted investment earnings 17,147 - - - 60,746 59,628 - - - -
Gain on disposal of property 16,580 - - - 7,444 6,516 - - - -
Other 69,900 57,781 66,305 106,706 27,002 21,752 41,418 184,846 81,373 29,275
Transfers (171,912) (140,298) (219,978) - - - - 500,000 - 78,466
Total governmental activities 6,060,864 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
Business-type activities:
Investment earnings not restricted 9,007 7,627 2,172 989 - 7 66 414 1,174 1,824
Restricted investment earnings 31,844 525 94 329 1,353 5,301 762 91 427 1,727
Other 379,813 299,102 338,118 279,661 250,562 255,135 261,934 287,359 275,208 298,591
Transfers 171,912 140,298 219,978 - - - - (500,000) - (78,466)
Total business-type activities 592,576 447,552 560,362 280,979 251,915 260,443 262,762 (212,136) 276,809 223,676
Total primary government 6,653,440$ 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$
Changes in Net Position
Governmental activities 795,357$ 351,981$ 304,649$ 572,501$ 438,710$ (28,033)$ 122,464$ 64,137$ (314,879)$ (892,864)$
Business-type activities 150,230 268,594 450,731 614,735 453,280 88,517 70,782 (502,627) (53,999) (575,617)
Total primary government 945,587$ 620,575$ 755,380$ 1,187,236$ 891,990$ 60,484$ 193,246$ (438,490)$ (368,878)$ (1,468,481)$
Note: Water and sewer charges for service is the Town’s most significant source of own-source revenue.
73
TABLE 3
2010
Pre-GASB 54 implementation:
General Fund
Reserved 361,090$
Unreserved 1,322,095
Total general fund 1,683,185$
2019 2018 2017 2016 2015 2014 2013 2012 2011
Post-GASB 54 implementation:
General Fund
Nonspendable 323,947$ 103,927$ 89,382$ 62,048$ 59,817$ 60,358$ 19,101$ 62,746$ 66,341$
Restricted 438,293 206,673 132,387 209,649 235,246 190,161 274,908 17,068 372,271
Committed 30,000 30,000 - - - - - - 100,000
Assigned 38,621 - - - - - - - -
Unassigned 2,919,827 2,881,906 2,578,193 2,607,524 2,361,436 2,919,657 2,837,802 2,584,947 1,196,789
Total general fund 3,750,688$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)
74
TABLE 4
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Revenues
Taxes 5,246,337$ 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$
Permits, privilege fees, and regulatory licenses 6,408 8,955 8,712 9,788 12,403 9,085 10,861 9,273 10,242 12,116
Fines and forfeitures 60,652 71,210 75,085 51,631 56,503 75,059 73,107 75,989 102,566 94,548
Revenue from use of money and property 187,142 148,433 136,695 141,889 197,241 198,625 105,998 105,666 118,560 156,533
Charges for services 382,806 377,369 418,042 452,903 438,558 407,900 387,049 333,832 355,606 328,116
Other 136,351 137,547 150,967 138,589 129,124 149,957 72,337 18,522 16,860 3,562
Intergovernmental 2,481,996 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
Total revenues 8,501,692 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
Expenditures
General government 711,058 695,683 650,824 710,412 668,082 645,071 632,136 618,951 628,386 641,853
Public safety 3,577,731 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
Public works 1,485,888 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
Parks, recreation, and cultural 515,693 533,892 570,065 594,550 617,934 620,636 547,604 518,579 551,240 574,215
Community development 458,435 485,624 889,397 687,006 604,476 468,678 386,592 544,245 333,617 365,366
Capital projects 734,326 37,880 463,945 437,389 551,936 140,478 542,235 160,752 114,309 90,570
Debt service:
Principal retirement 414,532 436,700 535,374 404,038 379,843 372,923 335,766 267,595 260,501 253,500
Interest and fiscal charges 77,568 83,210 91,789 115,486 182,584 186,377 174,699 185,715 195,608 205,189
Bond issuance costs - - - 15,920 - - 36,638 - - -
Total expenditures 7,975,231 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
Excess (deficiency) of revenues over
expenditures 526,461 305,240 60,289 40,666 (521,121) 215,081 (67,017) 298,409 50,092 (384,268)
Other Financing Sources (Uses)
Proceeds from long-term debt 157,053 - - 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 16,580 - 80,430 29,537 7,444 6,516 - 130,951 2,124 17,491
Transfers in (171,912) (140,298) (219,978) - - - - 500,000 - 78,466
Total other financing sources 1,721 117,304 (139,548) 182,056 7,444 6,516 534,067 630,951 2,124 95,957
Net change in fund balances 528,182$ 422,544$ (79,259)$ 222,722$ (513,677)$ 221,597$ 467,050$ 929,360$ 52,216$ (288,311)$
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)
75
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
2019 488,906,400$ 50,021,021$9,451,620$ 18,380,300$33,600$ 566,792,941$0.07$ 566,792,941$ 100%
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
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
76
TABLE 6
Customer Revenue Rank Revenue Rank
Precision Fabrics Group, Inc.206,054$ 1 5.47 %225,333$ 1 9.30 %
Aramark 155,926 2 4.14 91,727 2 4.00
Cardinal Glass 106,481 3 2.83 54,115 3 2.23
The Berkshire 62,730 4 1.67 49,752 4 2.05
Roanoke County Schools 56,907 5 1.51 22,731 8 0.94
Blue Ridge Manor Apartments 54,566 6 1.45 33,638 6 1.39
RGM 30,216 7 0.80 36,370 5 1.50
Richard Dickerson/RL Mansard Sq 19,563 8 0.52 17,220 9 0.71
F & W Management 17,850 9 0.47 - --
A Porter’s Haven 16,751 10 0.44 - --
Clearview Manor - -- 24,454 7 1.01
American Efficiency - -- 9,891 10 0.41
727,044$ 565,231$
Source: Town of Vinton Finance Department
1) FY 2019 % was based on total water and sewer revenue of $3,766,221
2) FY 2010 % was based on total water and sewer revenue of $2,423,965
of Total Town
Revenue
Fiscal Year 2010
Percentage
of Total Town
Revenue
TOWN OF VINTON, VIRGINIA
PRINCIPAL WATER AND SEWER CUSTOMERS
Current Year and Nine Years Ago
Fiscal Year 2019
Percentage
77
TABLE 7
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30,Fiscal Year Amount of Levy Years Amount of Levy
2019 936,327$ 842,667$ 90.00%-$ 842,667$ 90.00%
2018 874,622 823,616 94.17 14,960 838,576 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
Source: Detailed Town property tax records.
Note: The Town increased the real estate tax rate from $0.03 to $0.07 in 2015
TOWN OF VINTON, VIRGINIA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Total Collections to Date
Collected within the
Fiscal Year of the Levy
78
TABLE 8
Fiscal
Year Water Sewer Water Sewer
2019 18.85$ 27.68$ 9.43$ 13.84$
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
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
79
TABLE 9
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Debt limit 56,679,294$ 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$
Total net debt applicable to limit 5,765,236 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
Legal debt margin 50,914,058$ 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$
Total net debt applicable to the limit
as a percentage of debt limit 10.17%11.66%13.20%14.58%15.80%17.18%19.53%13.39%13.27%14.13%
Legal Debt Margin Calculation for Fiscal Year 2019
566,792,941$
Debt limit (10% of assessed value)56,679,294$
Less debt applicable to limit:
General obligation bonds 5,765,236
Legal debt margin 50,914,058$
Note:
TOWN OF VINTON, VIRGINIA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Assessed value
80
TABLE 10
General General
Fiscal Obligation Revenue Capital Obligations Obligation Revenue Obligations Capital
Year 1 1 1 1
2019 2,328,839$ -$ 352,931$ 139,296$ 2,821,066$ 3,453,480$ 1,687,000$ 236,861$ 666,344$ 6,043,685$
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
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
2019 5,782,319$ 566,792,941$ 1.05%8,096 714$ 49,860$ 1.43%
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
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
81
TABLE 11
Less:Net
Fiscal Gross Operating Available
Year Revenue (1)Revenue Principal (2)Interest Coverage
2019 3,807,093$ 2,867,974$ 939,119$ 591,312$ 178,562$ 1.22
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
(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.
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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)
2019 8,096 5,962,802$ 49,860$ 14,121 972 2.90%
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
Sources:
(1) From U.S. Census Bureau link at www.rvarc.org/demographics/
(4) Virginia Employment Commission www.bls.gov/regions/mid-atlantic/virginia.htm#eag
(3) Virginia Department of Education - Membership Reporting
http://www.doe.virginia.gov/statistics_reports/enrollment/index.shtml
https://apps.bea.gov/regional/bearfacts/
TOWN OF VINTON, VIRGINIA
DEMOGRAPHIC STATISTICS
Last Ten Fiscal Years
(2) Personal Income and Per Capita Personal Income from the U.S. Department of Commerce
Bureau of Economic Analysis. Latest information available as of 2018 at
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TABLE 13
Percentage Percentage
of Total Town of Total Town
Employer Employees Rank Employment Employees Rank Employment
Berkshire 215 1 2.66%216 2 6.03%
Precision Fabrics Group, Inc.205 2 2.53 261 1 7.29
Kroger 185 3 2.29 149 3 4.16
Rosie’s Gaming Emporium 130 4 1.61 - --
Roanoke County Schools (Vinton)127 5 1.57 127 4 3.55
Aramark Uniform Services 97 6 1.20 70 7 1.95
Town of Vinton 95 7 1.17 107 5 2.99
McDonalds 90 8 1.11 90 6 2.51
Magnets USA 64 9 0.79 N/A N/A N/A
Lancerlot 62 10 0.77 60 8 1.68
1,270 15.69%1,080 13.82%
Source: Employer Business Application or HR Contact
N/A - Not Available
Fiscal Year 2019 Fiscal Year 2010
TOWN OF VINTON, VIRGINIA
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
84
TABLE 14
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Function/Program
General government
Management services 4 4 4 4 4 4 4 4 4 4
Finance 5 5 5 5 6 6 6 6 5 5
Planning 3 2 3 3 3 3 3 3 3 3
Police
Officers 23 23 24 22 22 24 24 24 25 24
Civilians 2 2 2 2 2 2 2 2 2 10
Fire
Firefighters and officers 11 11 12 10 11 10 9 9 9 9
Other public works 30 34 33 29 31 32 32 32 34 33
Parks, recreation, and cultural 3 3 3 3 2 3 3 3 3 3
Total 81 84 86 78 81 84 83 83 85 91
TOWN OF VINTON, VIRGINIA
FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Source: Town of Vinton HR Department
85
TABLE 15
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Function/Program
General government
Fleet equipment 133 133 133 133 133 133 117 117 117 117
Pieces of equipment maintained 133 133 133 133 133 133 117 117 117 117
Public safety:
Police
Arrests 947 1,034 594 722 507 578 582 667 546 531
Parking violations 30 40 58 133 52 64 48 56 82 139
Traffic violations 1,735 2,449 2,021 1,187 1,143 1,603 1,408 1,734 1,933 2,431
EMS
Emergency responses 2,248 2,607 2,637 2,656 2,615 2,735 2,654 2,872 2,319 2,219
Fire
Emergency responses 305 830 501 774 278 623 306 677 514 476
Public works
Refuse collection
Refuse collected (tons per day)12.39 11.80 12.21 11.92 12.55 12.78 12.92 12.75 12.70 14.00
Recyclables collected (tons per day)0.35 0.45 1 0.54 0.65 0.70 0.68 2.00 2.00 1.60
Other public works
Street resurfacing (miles)2.71 2.50 2 2.03 - 1.30 2.17 1.80 1.80 1.90
Parks, recreation, and cultural
Parks and recreation - attendees
Vinton Dogwood Festival (4-day)20,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
4th of July 4,000 5,000 5,000 5,000 5,000 5,000 4,000 4,000 4,000 4,000
(Co-Sponsor Roanoke County)Closed Closed Closed Closed Closed Closed Closed Closed Closed 5,000
(Co-Sponsor Chamber of Commerce)3,500 6,000 6,000 9,000 9,000 6,000 6,000 6,000 6,000 6,000
Water
Number of customer accounts 5,136 5,115 5,120 5,093 5,074 5,085 5,071 5,051 5,044 5,040
Miles of distribution lines 61 61 61 61 61 61 61 61 61 61
Volume pumped (million gallons per day average)2 1 1 1.27 1.23 1.14 1.21 1.23 1.26 1.47
Sewer
Number of customer accounts 4,710 4,691 4,686 4,658 4,639 4,642 4,636 4,607 4,610 4,609
Miles of collection lines 60 60 60 60 60 60 60 60 60 60
Waste/Water treated (million gallons per day)1.02 1.32 1.32 1.40 1.19 0.92 0.96 0.99 1.09 1.27
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
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TABLE 16
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Function/Program
Public safety
Law enforcement vehicles 24 27 27 25 26 25 25 26 27 27
Fire stations 1 1 1 1 1 1 1 1 1 1
Public works
Primary streets (lane miles)21.62 21.62 21.62 21.62 21.62 21.62 21.62 21.62 21.62 21.62
Secondary streets (lane miles)66.32 66.32 66.32 66.32 66.32 66.32 66.32 66.32 66.32 66.32
Streetlights 505 505 505 503 502 500 500 500 500 500
Parks, recreation, and cultural
Community centers
Vinton Senior Program (No. of Events/Attendance) 428/6283 356/5822 285/4370 252/4166 240/3990 223/3,965 253/3775 231/4033 174/3396 1/18
Charles R. Hill Center (Rentals)298 303 316 283 291 289 437 299 218 295
Skate Park Closed Closed Closed Closed Closed Closed Closed Closed Closed Closed
Vinton War Memorial 240 250 276 273 235 282 301 200 202 271
Parks/athletic fields
Gearhart Park (TOV owned-Leased to Rke County)NA NA NA N/A N/A N/A N/A N/A N/A N/A
Greenway (3/4 Mile) Cinder Surface 30,000 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 N/A 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 Closed 7,977 7,977 8,458 10,562 10,176 12,246 11,270
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
88
COMPLIANCE SECTION
89
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, 2019, 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 8, 2019.
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 2019-001.
90
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 8, 2019
91
TOWN OF VINTON, VIRGINIA
SUMMARY OF COMPLIANCE MATTERS
June 30, 2019
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
92
TOWN OF VINTON, VIRGINIA
SCHEDULE OF FINDING AND RESPONSE
Year Ended June 30, 2019
A.FINDING –FINANCIAL STATEMENT AUDIT
2019-001: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.
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TOWN OF VINTON, VIRGINIA
SCHEDULE OF PRIOR AUDIT FINDING
Year Ended June 30, 2019
A.FINDING –FINANCIAL STATEMENT AUDIT
2007-001: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.