HomeMy WebLinkAboutFY 2019 - 2020 - Annual Comprehensive Financial Reports (ACFRs)
For Fiscal Year Ended June 30, 2020
The Town of Vinton, Virginia
Comprehensive Annual Financial Report
For Fiscal Year Ended June 30, 2020
TOWN OF VINTON, VIRGINIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2020
Prepared by the Town of Vinton
Finance Department/Treasurer’s Office
TOWN OF VINTON, VIRGINIA
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal ..........................................................................................................................................i
Certificate of Achievement for Excellence in Financial Reporting ..............................................................vii
Directory of Principal Officials.....................................................................................................................viii
Organizational Chart .......................................................................................................................................ix
FINANCIAL SECTION
Independent Auditor’s Report ..........................................................................................................................1
Management’s Discussion and Analysis .........................................................................................................3
Basic Financial Statements
Government-wide Financial Statements
Exhibit 1 Statement of Net Position ...................................................................................................12
Exhibit 2 Statement of Activities ........................................................................................................13
Fund Financial Statements
Exhibit 3 Balance Sheet –Governmental Funds ................................................................................14
Exhibit 4 Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position......................................................................................15
Exhibit 5 Statement of Revenues, Expenditures, and Changes in
Fund Balances –Governmental Funds ...........................................................................16
Exhibit 6 Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of the Governmental Funds to the Statement of Activities ...............17
Exhibit 7 Statement of Revenue,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 ...................................66
Exhibit 12 Schedule of Pension Contributions.....................................................................................67
Exhibit 13 Schedule of Changes in Net OPEB Liability and Related Ratios –Local Plan ................68
Exhibit 14 Schedule of Employer’s Share of Net OPEB Liability –VRS GLI ..................................69
Exhibit 15 Schedule of OPEB Contributions –VRS GLI ...................................................................70
Notes to Required Supplementary Information .........................................................................................71
TOWN OF VINTON, VIRGINIA
TABLE OF CONTENTS
(Continued)
Page
STATISTICAL SECTION
Table 1 Net Position by Component .......................................................................................................74
Table 2 Change in Net Position by Component .....................................................................................75
Table 3 Fund Balances –Governmental Funds......................................................................................77
Table 4 Changes in Fund Balances –Governmental Funds ..................................................................78
Table 5 Assessed Value and Actual Value of Taxable Property ...........................................................79
Table 6 Principal Water and Sewer Customers ......................................................................................80
Table 7 Property Tax Levies and Collections ........................................................................................81
Table 8 Water and Sewer Rates ..............................................................................................................82
Table 9 Legal Debt Margin Information ................................................................................................83
Table 10 Ratios of Outstanding Debt by Type .........................................................................................84
Table 11 Pledged Revenue Coverage .......................................................................................................85
Table 12 Demographic Statistics ..............................................................................................................86
Table 13 Principal Employers ...................................................................................................................87
Table 14 Full-Time Equivalent Town Government Employees by Function/Program ..........................88
Table 15 Operating Indicators by Function/Program ...............................................................................89
Table 16 Capital Asset and Infrastructure Statistics by Function/Program .............................................90
COMPLIANCE SECTION
Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards.....................................................................................................92
Summary of Compliance Matters ..................................................................................................................94
Schedule of Findings and Responses .............................................................................................................95
Schedule of Prior Audit Finding ....................................................................................................................96
INTRODUCTORY SECTION
i
To the Honorable Mayor, Members of Town Council, and Citizens of the Town of Vinton, Virginia
Code of
Virginia Code
d records. In addition, the report must be audited. The report was prepared by the Treasurer’s
Town’s management
reader to gain an understanding of the Town’s financial activities have been included.
The Reporting Entity and Services Provided
of Vinton’s rate was
Local Economic Condition and Outlook
Town of Vinton
311 S. Pollard Street
Vinton, VA 24179
Phone (540) 983-0608
Fax (540) 985-3105
ii
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 even ts
throughout the year. In 2019-2020, 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 2020 generate approximately $761,000 or 9.67% of total revenue in the general
fund.
The meals tax continues to be a strong revenue source for the Town despite impacts from the COVID19
pandemic. This revenue source is reflective of the value our restaurants are able to offer their customers
and how they were able to quickly adjust during the pandemic. 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. The Town is optimistic that despite recent events that this revenue source will continue to
increase 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 as society returns to normal.
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 co ntinue
to enhance the reputation of the Town as a highly desirable residential area.
iii
COVID-19 Impact
The local government, like other organizations across the globe, felt great uncertainty towards the impact
on revenue collection from the COVID-19 pandemic which began in the first quarter of 2020. The Town
operations are heavily dependent on the ability to collect taxes, assess fees and access the capital markets.
Like many local governments, the Town was accomplishing several capital projects through grant funding,
and Management is aware that the future accessibility of grants is likely to decrease from impacts of the
pandemic. At this time, the full impact is unknown while the pandemic is still ongoing. However,
Management is actively monitoring the fiscal conditions of the Town to ensure its financial condition and
liquidity will be sustain services during this time of uncertainty.
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.
•Enhance the Town’s infrastructure and livability
•Maintain an efficient and high-performing government
•Ensure the Town’s continued financial viability by actively pursuing quality economic development
(Gish’s Mill, Vinton Motors, River Park, Potential Hotel)
•Provide High Quality Water to Town and East Roanoke County Residents
•Replace Town Gateway Entrance Signs
•Stormwater Management Program with required funding
Major Initiatives
The Town continues to focus revitalization efforts to facilitate housing rehabilitation, improve the
community’s walkability, enhance our transportation corridors and encourage the redevelopment of
targeted underutilized commercial properties.
Housing: The Town has completed a $1.5M Community Development Block Grant (CBDG)
submittal to DHCD (Department of Housing and Community Development) to implement a
Comprehensive Neighborhood Housing and Community Infrastructure Rehabilitation Program for
the greater West Cleveland and Cedar Avenue neighborhood. The Town has worked with a grant
management team and other community stakeholders for two years to develop the program goals
and desired outcomes for the project. If awarded, the funds will be matched with an additional
$1.3M of Hazard Mitigation Grant Program (HMGP) and Southeast Rural Community Assistance
Project (SERCAP) funds for the following program activities: (1) Housing Rehabilitation, (2)
Acquisition, demolition and relocation of residents occupying flood prone properties, (3) Water,
wastewater and storm water improvements, (4) Sidewalk connections and improvements, and (5)
Voluntary property blight removal.
Transportation: The Town continues to partner with the Greater Roanoke Transportation
Corporation (GRTC) to maintain and enhance public transit routes within the Town to key
commercial, public services and residential activity centers, such as Lake Drive Plaza, Washington
Avenue and South Pollard Street. In addition, the Town has been awarded over $3M in
transportation related grants from the Virginia Department of Transportation (VDOT) to enhance
walkability by adding signalized pedestrian crosswalks at the key intersections of South Pollard
Street and Washington Avenue and Hardy and Vinyard Roads; and by also the continued
iv
Major Initiatives (Continued)
begun with assessment of the environmental conditions at other “brownfield” sites throughout the
In partnership with Roanoke County, Vinton has realized immense success with this “redevelopment”
as apartments, the redevelopment of the former Vinton Library as a full service Macado’s Restaurant, the
Wagering as Rosie’s Gaming Emporium, and the rehabilitation of the Gish Mill Property into a mixed
Accounting System and Budgetary Controls
The Town’s accounting records for governmental fund type operations are maintained on a modified
modifying the Town’s accounting system, consideration is given to the adequacy of
management. All internal control evaluations occur within the above framework. The Town’s internal
v
Cash Management
Virginia’s Local Government Investment Pool . The Town’s checking
Risk Management
The Town’s various property and liability insurance coverage is provided by
Independent Audit
Government Auditing Standards
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
the Financial Section. Other auditor’s reports are included in the Compliance Section.
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
Certificate of Achievement
Acknowledgements
The preparation of this report was made possible through the diligent effort of the Treasurer's
Office/Finance Department 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,
=ffa�� Town Manager Treasurer/Finance Director
vi
vii
viii
TOWN OF VINTON, VIRGINIA
DIRECTORY OF PRINCIPAL OFFICIALS
June 30, 2020
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.
ix
Organizational Chart
Citizens of Vinton
Town Council
Town Manager*Town Attorney*
Police Department
Administration*
Public Works
Treasurer/Finance Department *
Planning and Zoning
Operations
Services
Streets
Property/Grounds
Utilities (Water/Sewer)
Refuse/Recycling
HR/Risk Management
Assistant Town Manager/Economic Development Director Executive Assistant/Town Clerk*
Community Programs
Town Museum
Stormwater
* Town Manager, Town Attorney, Executive Assistant/Town Clerk, Chief of Police, and the Treasurer are positions within the department
appointed by Town Council bi-annually.
THIS PAGE INTENTIONALLY BLANK
FINANCIAL SECTION
1
Your Success is Our Focus
319 McClanahan Street, S.W. • Roanoke, VA 24014-7705 • 540-345-0936 • Fax: 540-342-6181 • www.BEcpas.com
INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of Town Council
Town of Vinton, Virginia
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, and each major fund of the Town of Vinton, Virginia (the “Town”), as of and for the year ended
June 30, 2020, 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, 2020, 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 2019 financial statements, and in our report dated
November 8, 2019, we expressed unmodified opinions on those financial statements. The 2019 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, 2019, 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 3, 2020 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 solely to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an
opinion on the effectiveness of the Town’s 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 3, 2020
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, 2020. We encourage readers to consider the information presented here in
conjunction with additional information that we have furnished in our letter of transmittal, which can be
found on pages i through vi of this report.
Financial Highlights
The total assets 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 $16,348,259 (net
position). Of this amount, $5,214,226 (unrestricted net position) may be used to meet the
Town’s ongoing obligations to citizens and creditors.
The Town’s total net position increased by $1,512,875. This increase is largely due to total
expenses of $11,168,113 being less than total revenues of $12,680,988. Another factor
includes an increase of $1,480,166 (18.2%) in current and other assets. However, capital
assets continue to decrease by a total this fiscal year of $1,005,355 (5.15%) with the final
result being a increase of 1.71%in total assets.
On the other hand, long-term liabilities decreased by $787,811 (7.47%), mostly due to no
additional debt issuances during the year. However, other liabilities decreased by $213,702
(9.33%) 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 and
decrease in spending due to the global pandemic.
Deferred Outflows increased $177,403 (19.03%) and Deferred Inflows increased $140,852
(14.33%) due to the net difference between projected and actual earnings on plan
investments.
The final result of all these effects is a 10.20% increase in net position.
As of the close of the current fiscal year, the Town’s governmental funds reported an ending
fund balance of $4,830,290 an increase of $1,311,144 in comparison with the prior year. This
is mostly due revenues over expenditures, but also due to a decrease of $150,635 (26.51%)
in total liabilities.
The general fund accounted for $4,433,019 of the ending fund balance in the
governmental fund, with an unassigned fund balance of $3,668,974. Approximately
82.76% of the ending governmental fund balance, $3,668,974 is available for spending at
the Town’s discretion (unassigned fund balance), and represents 50.92% of the general
fund’s expenditures.
In Fiscal Year (FY) 2020, the Town re-opened the capital fund, included in the
governmental fund, which had remained closed since FY2012. The Capital Fund ended
with $397,271 committed fund balance, which is being set aside for a Town match
requirement on a grant application submitted to the Virginia Department of
Transportation (VDOT).
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Town’s basic financial
statements. The Town’s basic financial statements comprise three components: (1) government-wide
financial statements,(2)fund financial statements, and (3) notes to the financial statements. This report
also contains other supplementary information in addition to the basic financial statements themselves.
4
Overview of the Financial Statements (Continued)
Government-wide Financial Statements –The government-wide financial statements are
designed to provide readers with a broad overview of the Town’s finances, in a manner similar to
a private-sector business.
The statement of net position presents information on all of the Town’s assets, deferred
outflows of resources, liabilities, and deferred inflows of resources, with the difference between
the four reported as net position. Over time, increases or decreases in net position may serve as
a useful indicator of whether the financial position of the Town is improving or deteriorating.
The statement of activities presents information showing how the government’s net position
changed during the most recent fiscal year. All changes in net position are reported as soon as
the underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will
result only in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused
vacation leave).
Both of the government-wide financial statements distinguish functions of the Town that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the Town include
general government, public safety, public works, community development, and parks, recreation,
and cultural. The business-type activity of the Town is the water and sewer department, and the
stormwater functions.
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 and capital 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 and Stormwater functions.
5
Overview of the Financial Statements (Continued)
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the Water and Sewer Department and Stormwater functions.
Notes to the Financial Statements –The notes provide additional information that is essential to
a full understanding of the data provided in the government-wide and fund financial statement.
Other Information –In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information concerning the Town’s funding progress for the
defined benefit pension plan.
Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the Town, the net position was $16,348,259 at the close of the most recent fiscal
year.
By far the largest portion of the Town’s net position (67.65%)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 $6,336,885 $5,180,239 $3,284,509 $2,960,989 $9,621,394 $8,141,228
Capital assets 8,854,637 9,078,690 9,726,116 10,507,418 18,580,753 19,586,108
Total assets 15,191,522 14,258,929 13,010,625 13,468,407 28,202,147 27,727,336
Deferred outflows
of resources 785,382 675,122 324,237 257,094 1,109,619 932,216
Current and other liabilities 1,006,372 1,160,527 1,070,556 1,130,103 2,076,928 2,290,630
Long-term liabilities 4,360,578 4,678,153 5,402,318 5,872,554 9,762,896 10,550,707
Total liabilities 5,366,950 5,838,680 6,472,874 7,002,657 11,839,824 12,841,337
Deferred inflows
of resources 1,051,254 917,834 72,429 64,997 1,123,683 982,831
Net investment in capital
assets 6,634,748 6,747,977 4,424,574 5,051,330 11,059,322 11,799,307
Restricted 74,711 180,691 - - 74,711 180,691
Unrestricted 2,849,241 1,248,869 2,364,985 1,606,517 5,214,226 2,855,386
Total net position $9,558,700 $8,177,537 $6,789,559 $6,657,847 $16,348,259 $14,835,384
* Restated
Unrestricted net position of $5,214,226 may be used to meet the Town’s ongoing obligations to
citizens and creditors.
At the end of the current fiscal year, the Town is able to report positive balances in all three
categories of net position, both for the government as a whole, and for its separate governmental and
business-type activities. The same situation held true for the prior fiscal year.
6
Government-Wide Financial Analysis (Continued)
Governmental activities –Governmental activities increased the Town’s net position by
$1,381,163.
For the most part, revenues closely paralleled inflation and conditions represented in the
economy and growth in the demand for services. Revenues from operating grants and contributions,
capital grants and contributions, and various taxes showed an increase over the prior year. Investment
earnings also showed an increase because of the Town’s investments and bond proceeds being invested
in higher yields.
The Town’s Changes in Net Position
Governmental Business-Type
Activities Activities Total
Revenues
Program revenues
Charges for services $420,047 $700,984 $3,423,342 $3,386,429 $3,843,389 $4,087,413
Operating grants and
contributions 1,966,475 1,531,540 - - 1,966,475 1,531,540
Capital grants and
contributions 309,973 72,006 - - 309,973 72,006
General revenues
Property taxes 749,564 726,573 - - 749,564 726,573
Other taxes 4,833,542 4,538,798 - - 4,833,542 4,538,798
Intergovernmental revenue 518,418 812,923 - - 518,418 812,923
Investment earnings 42,409 50,854 8,271 9,009 50,680 59,863
Other 37,669 69,900 371,278 379,813 408,947 449,713
Gain (loss) on sale - 16,580 - - - 16,580
Total revenues 8,878,097 8,520,158 3,802,891 3,775,251 12,680,988 12,295,409
Expenses
General government 1,391,690 1,049,355 - - 1,391,690 1,049,355
Public safety 2,941,870 3,566,718 - - 2,941,870 3,566,718
Public works 1,748,237 1,890,909 - - 1,748,237 1,890,909
Parks, recreation, and
cultural 477,604 539,309 - - 477,604 539,309
Community development 679,173 461,068 - - 679,173 461,068
Interest on long-term
debt 76,732 92,062 - - 76,732 92,062
Water and sewer - - 3,488,665 3,535,493 3,488,665 3,535,493
Stormwater management - - 364,142 337,655 364,142 337,655
Total expenses 7,315,306 7,599,421 3,852,807 3,873,148 11,168,113 11,472,569
Excess (deficit) of
revenues over
1,562,791 920,737 (49,916)(97,897)1,512,875 822,840
Other financing sources (uses)
transfers in (out)(181,628)(171,912)181,628 171,912 - -
Total other financing
sources (uses)(181,628)(171,912)181,628 171,912 - -
Change in net position 1,381,163 748,825 131,712 74,015 1,512,875 822,840
–July 1 8,177,537 7,428,712 6,657,847 6,583,832 14,835,384 14,012,544
–June 30 $9,558,700 $8,177,537 $6,789,559 $6,657,847 $16,348,259 $14,835,384
* Restated
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
General
government
Public safety Public works Parks, recreation,
and cultural
Community
development
Interest on long-
term debt
Expenses Program Revenues
Charges for services
5%
Operating grants and
contributions
22%
Capital grants and
contributions
4%
Property taxes
8%
Other taxes
54%
Intergovernmental
revenue unrestricted
6%
Investment earnings
1%Other
0%Gain (loss)
0%
8
Government-Wide Financial Analysis (Continued)
Business-type activities –Business-type activities increased the Town’s net position by
$131,712,when including the restated net position in Note 24. The last increase by the Town was
effective July 1, 2020 with an increase in the service charge of 8.0% and an increase in the volumetric
rate of 6.0%.There was no increase in fiscal year 2017, 2018, or 2019.Town Council adopted a
multi-year rate schedule to include the same percentage increases in 2021, 2022 and 2023.
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 funds reported an ending fund
balance of $4,830,290, an increase of $1,311,114 in comparison with the prior year. This is due to
revenues performing above budget expectations, drastic reduction of expenditures due to pandemic
uncertainty, a decrease in liabilities of $150,635 (26.51%), an increase in committed fund balance with
the re-opening of the capital fund, 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
$2,414,970.Unrestricted net position of the Stormwater Management Department at the end of the year
was a deficit of $49,985.Factors concerning the finances of this fund have already been addressed in the
discussion of the Town’s business-type activities.
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget for revenues were
$2,796,192 primarily due to Categorical Aid amounting to $3,146,216 for multi-year grant projects that
cross fiscal years.
Differences between the original budget and the final amended budget for expenditures were
$4,106,182 with the majority being multi-year grant projects that cross fiscal years, with a majority
being located in the General Government Administration remaining balance of $2,894,881.
Multiple variances between the final budget and the actual final results for the year can be briefly
summarized as follows:
There was only positive variance in real property taxes, and 107.11% of the budgeted amount was
collected. The real property tax rate did not change from $0.07 per $100 of assessed value.The Town
calculated about half the positive variance was prepayment for second half real estate bills.
There was a positive variance of other local taxes of $235,747 or 105.09%of the budgeted amount
was collected. This was primarily due to an increase in the business license revenue due to higher gross
receipts reported by businesses on the 2020 filing and an over performance of sales tax and meals tax.
There continues to be a downward trend in a few revenue areas. In communication sales & use tax
(previously called consumer’s utility tax)and rental income.These impacts are not only felt in the Town
of Vinton, but across the region.
9
General Fund Budgetary Highlights (Continued)
All expenditures by budget functions have favorable variances, except Public Safety grant
accounts, due to concerted efforts of all departments to control and minimize expenditures. The transfer to
the Stormwater Fund was reduced $96,955 from anticipated budget, and was a component of the favorable
balance in the General Fund.
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, 2020, amounts to (net of accumulated depreciation). This investment in capital
assets includes land, buildings and systems, improvements, infrastructure, machinery, and equipment. The
total decrease in the Town’s investment in capital assets for the current fiscal year was 5.13% (a 2.47%
decrease for governmental activities and a 7.44%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 4,399,609 4,551,605 6,667,975 7,214,760 11,067,584 11,766,365
Infrastructure 1,662,811 1,806,111 - - 1,662,811 1,806,111
Improvements other than
buildings - - 1,997,428 2,141,389 1,997,428 2,141,389
Machinery and equipment 599,485 737,654 979,961 1,070,517 1,579,446 1,808,171
Construction in progress 360,699 151,287 - - 360,699 151,287
Total $8,854,637 $9,078,690 $9,726,116 $10,507,418 $18,580,753 $19,586,108
* Restated
Long-term debt –At the end of the current fiscal year, the Town had total debt outstanding of
$7,745,714. Of this amount, $5,080,683 comprises debt backed by the full faith and credit of the
government, $1,513,000 is related to revenue bond obligations, and $855,090 is related to capital leases.
The Town’s Outstanding Debt
General Obligation and Capital Leases
General obligation bonds $1,985,234 $2,311,756 $3,095,449 $3,453,480 $5,080,683 $5,765,236
Revenue bonds - - 1,513,000 1,687,000 1,513,000 1,687,000
Other obligations 75,352 139,296 221,589 236,861 296,941 376,157
Capital leases 296,746 352,931 558,344 666,344 855,090 1,019,275
$2,357,332 $2,803,983 $5,388,382 $6,043,685 $7,745,714 $8,847,668
* Restated
10
Capital Asset and Debt Administration (Continued)
Long-term debt (continued)
The Town’s total debt decreased by $1,101,954, or 12.45%, during the fiscal year. This decrease is due to
the payment of principal payment on outstanding debt.
Additional information on the Town’s long-term debt can be found in Note 6 of this report.
Economic Factors and Next Year’s Budgets and Rates
During the current year, the Town experienced a growth in revenue despite several health
measures during the pandemic such as business closures. Several key revenue areas increased during the
year, and pari-mutuel tax quickly became a top revenue source in the General Fund. The Town has
previously had limited funding for capital items due to slow or negative growth from the last decade
(2010-2019), and has dedicated this new revenue 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, 2020 is 8.10%, which is a sharp increase from last year’s rate of
2.90%. Unemployment is primarily due to the pandemic. This is comparable to the state’s
average unemployment rate as of June 30, 2020 of 8.10% and to the national average rate of
11.1%.
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 2020, 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
$723,087. The general fund remains strong with an ending unassigned fund balance of $3,668,974. It is
intended that this available fund balance will be used for future needs of the Town and as working
capital during the months of low cash collection volume.
Requests for Information
This financial report is designed to provide a general overview of the Town’s finances for all
those with an interest in the government’s finances. Questions concerning any of the information provided
in this report or requests for additional financial information should be addressed to the Finance
Department/Treasurer’s Office, Town of Vinton, 311 S. Pollard Street, Vinton, Virginia 24179.
11
BASIC
FINANCIAL STATEMENTS
EXHIBIT 1
Governmental Business-Type
(For Comparison
Only)
Activities Activities 2020 2019
ASSETS
Cash and cash equivalents (Note 2)4,470,842$ 2,434,426$ 6,905,268$ 6,213,954$
Receivables, net (Note 3)471,929 707,658 1,179,587 1,094,287
Due from other governmental units (Note 4)745,054 - 745,054 385,678
Inventories 109 63,988 64,097 58,798
487,378 - 487,378 168,375
Prepaids 91,444 31,785 123,229 86,217
Loans receivable 44,022 - 44,022 35,487
26,107 46,652 72,759 98,432
Capital assets: (Note 5)
Nondepreciable 2,192,732 80,752 2,273,484 2,064,072
Depreciable, net 6,661,905 9,645,364 16,307,269 17,522,036
Total assets 15,191,522 13,010,625 28,202,147 27,727,336
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 76,897 86,840 163,737 192,412
629,630 229,378 859,008 669,507
Deferred outflows related to other postemployment
benefits (Notes 9, 10, & 11)78,855 8,019 86,874 70,297
Total deferred outflows of resources 785,382 324,237 1,109,619 932,216
LIABILITIES
Accounts payable and accrued liabilities 227,120 251,501 478,621 651,515
Accrued payroll and related liabilities 179,046 54,146 233,192 279,012
Accrued interest payable 14,050 39,129 53,179 60,226
Customer security deposits - 46,500 46,500 45,700
Unearned revenue 11,345 - 11,345 14,889
574,811 679,280 1,254,091 1,239,288
Noncurrent liabilities due in more than one year:
Net pension liability (Notes 8 & 11)1,647,165 600,911 2,248,076 1,688,228
Net other post employment
benefit liability (Notes 9, 10 & 11)545,415 59,091 604,506 814,537
Long-term liabilities due in more than one year (Note 6)2,167,998 4,742,316 6,910,314 8,047,942
Total liabilities 5,366,950 6,472,874 11,839,824 12,841,337
DEFERRED INFLOWS OF RESOURCES
Property taxes 690,728 - 690,728 671,614
Deferred inflows related to pensions (Notes 8 & 11)135,925 49,588 185,513 269,618
Deferred inflow related to other postemployment
benefits (Notes 9, 10, & 11)224,601 22,841 247,442 41,599
Total deferred inflows of resources 1,051,254 72,429 1,123,683 982,831
NET POSITION
6,634,748 4,424,574 11,059,322 11,799,307
Public safety 74,711 - 74,711 180,691
Unrestricted 2,849,241 2,364,985 5,214,226 2,855,386
Restricted for:
Net investment in capital assets
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
June 30, 2020
Cash and cash equivalents, restricted (Note 2)
Deferred outflows related to pensions (Notes 8 & 11)
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
Comparison
Functions/Programs Expenses Services Contributions Contributions Activities Activities 2020 2019
Governmental activities
1,391,690$ 125,573$ 4,214$ 40,516$ (1,221,387)$ (1,221,387)$ (918,259)$
Public safety 2,941,870 72,594 602,808 49,239 (2,217,229) (2,217,229) (3,185,692)
Public works 1,748,237 119,580 1,234,309 171,864 (222,484) (222,484) (492,641)
Parks, recreation, and cultural 477,604 97,708 - 200 (379,696) (379,696) (168,770)
Community development 679,173 4,592 125,144 48,154 (501,283) (501,283) (437,467)
Interest on long-term debt 76,732 - - - (76,732) (76,732) (92,062)
Total governmental activities 7,315,306 420,047 1,966,475 309,973 (4,618,811) (4,618,811) (5,294,891)
Business-type activities
Water and sewer 3,488,665 3,423,342 - - - (65,323)$ (65,323) (149,064)
Stormwater management 364,142 - - - - (364,142) (364,142) (337,655)
Total business-type activities 3,852,807 3,423,342 - - - (429,465) (429,465) (486,719)
Total 11,168,113$3,843,389$ 1,966,475$ 309,973$ (4,618,811) (429,465) (5,048,276) (5,781,610)
General revenues
Property taxes (Note 15)749,564 - 749,564 726,573
Sales tax 1,153,748 - 1,153,748 1,469,693
Meals tax 1,289,457 - 1,289,457 1,078,908
Utilities tax 718,109 - 718,109 735,791
Business license tax 638,888 - 638,888 586,739
Cigarette tax 175,687 - 175,687 153,104
Other local taxes 857,653 - 857,653 514,563
Intergovernmental revenue 518,418 - 518,418 812,923
Unrestricted investment earnings 42,406 8,271 50,677 10,872
Restricted investment earnings 3 - 3 48,991
Gain on sale of assets - - - 16,580
Other 37,669 371,278 408,947 449,713
Transfers (Note 20)(181,628) 181,628 - -
Total general revenues 5,999,974 561,177 6,561,151 6,604,450
Change in net position 1,381,163 131,712 1,512,875 822,840
NET POSITION AT JULY 1, AS RESTATED (NOTE 24)8,177,537 6,657,847 14,835,384 14,012,544
NET POSITION AT JUNE 30 9,558,700$ 6,789,559$ 16,348,259$ 14,835,384$
General government administration
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF ACTIVITIES
Year Ended June 30, 2020
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
2019
Capital Total Total
General Projects Governmental Governmental
Fund Fund Funds Funds
Comparison
ASSETS
Cash and cash equivalents 4,073,571$ 397,271$ 4,470,842$ 4,020,198$
Receivables, net 471,929 - 471,929 447,919
Due from other governmental units 745,054 - 745,054 385,678
Inventories 109 - 109 1,543
Land held for resale 487,378 - 487,378 168,375
Prepaids 91,444 - 91,444 68,960
Loans receivable 44,022 - 44,022 35,487
Cash and cash equivalents, restricted 26,107 - 26,107 52,080
Total assets 5,939,614$ 397,271$ 6,336,885$ 5,180,240$
LIABILITIES
Accounts payable and accrued liabilities 227,120$ -$ 227,120$ 327,904$
Accrued payroll and related liabilities 179,046 - 179,046 225,353
11,345 - 11,345 14,889
Total liabilities 417,511 - 417,511 568,146
DEFERRED INFLOWS OF RESOURCES
Deferred revenue 1,089,084 - 1,089,084 1,092,948
FUND BALANCES (Note 21)
Nonspendable 655,751 - 655,751 323,947
Restricted 74,711 - 74,711 180,691
Committed 30,000 397,271 427,271 30,000
Assigned 3,583 - 3,583 38,621
Unassigned 3,668,974 - 3,668,974 2,945,887
Total fund balances 4,433,019 397,271 4,830,290 3,519,146
Total liabilities, deferred inflows of resources,
and fund balances 5,939,614$ 397,271$ 6,336,885$ 5,180,240$
Unearned revenue
TOWN OF VINTON, VIRGINIA
BALANCE SHEET
GOVERNMENTAL FUND
June 30, 2020
2020
The Notes to Financial Statements are an integral part of this statement.
14
EXHIBIT 4
(For
Comparison
Only)
2020 2019
Total Fund Balances – Governmental Fund 4,830,290$ 3,519,146$
are different because:
Capital assets used in governmental activities are not financial resources,
and, therefore, are not reported in the funds.
Governmental capital assets 19,156,678$
Less: accumulated depreciation (10,302,041)
8,854,637 9,078,689
Bond premiums are reported as revenues in the governmental funds,
Bond premiums total $(65,279) and accumulated amortization
is $50,473.(14,806) (17,083)
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are deferred in the funds.398,356 421,334
Financial statement elements related to other postemployment benefits and pensions
are applicable to future periods and, therefore, are not reported in the funds.
Deferred outflows related to:
Pensions 629,630
Other postemployment benefits 78,855
Deferred inflows related to:
Pensions (135,925)
Other postemployment benefits (224,601)
(1,647,165)
Net other postemployment benefits liability (545,415)
(1,844,621) (1,705,184)
Long-term liabilities are not due and payable in the current period and,
therefore, are not reported in the funds.
General obligation bonds, including unamortized deferred amounts (1,908,337)
(75,352)
(296,746)
Accrued interest payable (14,050)
Compensated absences (370,671)
(2,665,156) (3,119,365)
Total Net Position – Governmental Activities 9,558,700$ 8,177,537$
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, 2020
Amounts reported for governmental activities in the statement of net position
Governmental Funds
The Notes to Financial Statements are an integral part of this statement.
15
EXHIBIT 5
The Notes to Financial Statements are an integral part of this statement.
2019
Capital Total Total
General Projects Governmental Governmantal
Fund Fund Funds Funds
Comparison
REVENUES
General property taxes 742,567$ -$ 742,567$ 700,649$
Other local taxes 4,863,517 - 4,863,517 4,545,688
Permits, privilege fees, and regulatory licenses 4,592 - 4,592 6,408
Fines and forfeitures 54,486 - 54,486 60,652
Revenues from use of money and property 159,655 - 159,655 169,995
Charges for services 115,380 - 115,380 382,806
Other 134,151 - 134,151 136,351
Gain sharing 134,486 - 134,486 600,983
Recovered costs 34,671 - 34,671 67,319
Non-categorical aid 459,083 - 459,083 418,427
Categorical aid 2,198,487 - 2,198,487 1,395,267
Total revenues 8,901,075 - 8,901,075 8,484,545
EXPENDITURES
Current:
General government administration 835,575 - 835,575 711,058
Public safety 2,821,897 - 2,821,897 3,577,731
Public works 1,377,264 - 1,377,264 1,485,888
Parks, recreation, and cultural 457,443 - 457,443 515,693
Community development 871,782 - 871,782 458,435
Capital projects 330,410 202,741 533,151 948,721
Debt service:
Principal retirement 446,651 - 446,651 414,532
Interest and fiscal charges 64,540 - 64,540 77,568
Total expenditures 7,205,562 202,741 7,408,303 8,189,626
Excess (deficit) of revenues over expenditures 1,695,513 (202,741) 1,492,772 294,919
OTHER FINANCING SOURCES (USES)
Proceeds from capital lease - - - 157,053
Proceeds from sale of capital assets - - - 16,580
Transfers in - 600,012 600,012 -
Transfers out (781,640) - (781,640) (171,912)
Total other financing sources (uses)(781,640) 600,012 (181,628) 1,721
Net change in fund balance 913,873 397,271 1,311,144 296,640
FUND BALANCE AT JULY 1, AS RESTATED (NOTE 24)3,519,146 - 3,519,146 3,222,506
FUND BALANCE AT JUNE 30 4,433,019$ 397,271$ 4,830,290$ 3,519,146$
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Year Ended June 30, 2020
2020
EXHIBIT 6
The Notes to Financial Statements are an integral part of this statement.
(For
Comparison
2020 2019
Net change in fund balance governmental fund 1,311,144$ 296,640$
2,089 (212)
(224,053) 20,197
(22,977) 19,034
(156,065) 213,763
16,628 (35,259)
432,370 243,197
22,027 (8,535)
Change in net position of governmental activities 1,381,163$ 748,825$
statement of activities,the cost of pension benefits earned net of employee contributions is reported as
pension expense.This is the amount by which expense $424,317 exceeded employer pension
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
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
Governmental funds report capital outlays as expenditures;however,in the statement of activities,the
cost of those assets are allocated over their estimated useful lives as depreciation expense.This is the
amount by which depreciation $618,708 exceeded capital outlay $394,655 and the value of capital
Governmental funds report employer other postemployment benefit contributions as expenditures.
However,in the statement of activities the cost of these benefits earned,net of employee
TOWN OF VINTON, VIRGINIA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF
THE GOVERNMENTAL FUNDS TO THE
Revenues in the statement of activities that do not provide current financial resources are not reported
as revenues in the funds.
Amounts reported for governmental activities in the statement of activities are different because:
EXHIBIT 7
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
General property taxes 693,300$ 693,300$ 742,567$ 49,267$
Other local taxes 4,527,770 4,627,770 4,863,517 235,747
Permits, privilege fees, and
regulatory licenses 5,750 5,750 4,592 (1,158)
Fines and forfeitures 57,100 57,100 54,486 (2,614)
Revenues from use of money
and property 158,000 158,000 159,655 1,655
Charges for services 144,750 144,750 115,380 (29,370)
Other 118,250 118,850 134,151 15,301
Gain sharing - 111,676 134,486 22,810
Recovered costs 10,000 15,608 34,671 19,063
Non-categorical aid 419,760 419,760 459,083 39,323
Categorical aid 1,396,190 5,344,703 2,198,487 (3,146,216)
Total revenues 7,530,870 11,697,267 8,901,075 (2,796,192)
EXPENDITURES
Total expenditures 6,801,753 11,311,744 7,205,562 4,106,182
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 1,000 1,000 - (1,000)
Transfers out (730,117) (931,793) (781,640) 150,153
Net change in fund balance -$ (545,270)$ 913,873$ 1,459,143$
Budgeted Amounts
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL –
GENERAL FUND
Year Ended June 30, 2020
The Notes to Financial Statements are an integral part of this statement.
18
EXHIBIT 8
2019
Total Enterprise
Water and Sewer
Stormwater
Management Total Enterprise
(For Comparison
Only)
Current assets:
Cash and cash equivalents 2,385,943$ 48,483$ 2,434,426$ 2,193,757$
Receivables, net 707,658 - 707,658 646,368
Inventories 62,289 1,699 63,988 57,255
Prepaids 26,721 5,064 31,785 17,257
Cash and cash equivalents, restricted 46,652 - 46,652 46,352
Total current assets 3,229,263 55,246 3,284,509 2,960,989
Noncurrent assets:
Capital assets:
Nondepreciable 80,752 - 80,752 80,752
Depreciable, net 9,448,876 196,488 9,645,364 10,426,666
Total noncurrent assets 9,529,628 196,488 9,726,116 10,507,418
Total assets 12,758,891 251,734 13,010,625 13,468,407
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 86,840 - 86,840 98,957
Deferred outflows related to pensions (Notes 8 & 11)186,472 42,906 229,378 151,194
Deferred outflows related to other postemployment
benefits (Notes 9, 10, & 11)6,682 1,337 8,019 6,943
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
40,312 9,276 49,588 60,888
NET POSITION
Business-Type Activities –
Enterprise Funds
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2020
2020
The Notes to Financial Statements are an integral part of this statement.
19
EXHIBIT 9
2019
(For Comparison
Only)
Water and Sewer
Stormwater
Management Total Enterprise Total Enterprise
OPERATING REVENUES
Water service charges and fees 1,596,474$ -$ 1,596,474$ 1,573,041$
Sewer service charges and fees 1,795,142 - 1,795,142 1,764,815
Water/sewer penalties 31,726 - 31,726 48,573
Other revenue 371,278 - 371,278 379,813
Total operating revenues 3,794,620 - 3,794,620 3,766,242
OPERATING EXPENSES
Total operating expenses 3,332,317 357,208 3,689,525 3,688,957
Operating income (loss)462,303 (357,208) 105,095 77,285
NON-OPERATING REVENUE (EXPENSE)
Net non-operating expense (148,077) (6,934) (155,011) (175,182)
Income (loss) before transfers 314,226 (364,142) (49,916) (97,897)
TRANSFERS IN (OUT)
Change in net position 132,598 (886) 131,712 74,015
NET POSITION AT JULY 1, AS RESTATED (NOTE 24)
NET POSITION AT JUNE 30 6,854,126$ (64,567)$ 6,789,559$ 6,657,847$
2020
TOWN OF VINTON, VIRGINIA
Business-Type Activities –
Enterprise Fund
The Notes to Financial Statements are an integral part of this statement.
20
EXHIBIT 10
2019
Water and Sewer
Stormwater
Management Total Enterprise Total Enterprise
(For Comparison
Only)
OPERATING ACTIVITIES
Receipts from customers 3,362,852$ -$ 3,362,852$ 3,370,500$
Receipts from other sources 371,278 - 371,278 379,813
Payments to suppliers (1,489,764) (51,285) (1,541,049) (1,622,988)
Payments to employees (1,056,686) (250,471) (1,307,157) (1,325,059)
Net cash provided by (used in) operating activities 1,187,680 (301,756) 885,924 802,266
NONCAPITAL FINANCING ACTIVITIES
Transfers from (to) other funds (181,628) 363,256 181,628 171,912
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchases of capital assets (23,428) - (23,428) (546,442)
Principal paid on long-term liabilities (623,670) (31,633) (655,303) (591,312)
Proceeds from long-term liabilities - - - 3,500
Interest paid (149,189) (6,934) (156,123) (178,562)
Net cash used in capital and related
financing activities (796,287) (38,567) (834,854) (1,312,816)
INVESTING ACTIVITIES
Interest received on investments 8,271 - 8,271 9,009
Net increase (decrease) in cash and cash equivalents
CASH AND CASH EQUIVALENTS
Beginning at July 1, as restated 2,214,559 25,550 2,240,109 2,569,738
Ending at June 30 2,432,595$ 48,483$ 2,481,078$ 2,240,109$
RECONCILIATION TO EXHIBIT 8
Cash and cash equivalents 2,385,943$ 48,483$ 2,434,426$ 2,193,757$
Cash and cash equivalents, restricted 46,652 - 46,652 46,352
2,432,595$ 48,483$ 2,481,078$ 2,240,109$
Reconciliation of operating income to net cash
provided by (used in) operating activities
Operating income (loss)462,303$ (357,208)$ 105,095$ 77,285$
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation 786,351 34,172 820,523 820,983
Pension expense net of employer contributions 106,936 23,241 130,177 (37,831)
Other postemployment benefit expense net of
employer contributions (4,862) 725 (4,137) 3,531
Change in certain assets and liabilities:
(Increase) decrease in:
Receivables, net (61,290) - (61,290) (17,529)
Inventories (5,034) (1,699) (6,733) (9,695)
Prepaids (11,632) (2,896) (14,528) (163)
Increase (decrease) in:
Accounts payable and accrued liabilities (86,975) (928) (87,903) (44,346)
Accrued payroll and related liabilities (85) 572 487 2,870
Customer security deposits 800 - 800 1,600
Compensated absences 1,168 2,265 3,433 5,561
Net cash provided by (used in) operating activities 1,187,680$ (301,756)$ 885,924$ 802,266$
NONCASH CAPITAL AND RELATED FINANCING
Capital asset purchases included in accounts payable 42,564$ -$ 42,564$ 26,771$
Capital asset purchases using capital lease proceeds -$ -$ -$ 239,203$
2020
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, 2020
(Continued)
22
Note 1.Summary of Significant Accounting Policies
A.The Financial Reporting Entity
The Town of Vinton (the “Town”) 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, recreation, and water
and sewer services.
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 $199,852 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 County of Roanoke assumed
responsibility for the Town’s percentage of the costs as part of the new memorandum of
understanding with the County of Roanoke that went into effect on July 1, 2019.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 of Roanoke 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 $450,549 in the current year. Separate financial
statements are not available.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(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.
B.Individual Component Unit Disclosures
As required by generally accepted accounting principles, these financial statements present the
Town as the primary government. A component unit is an entity for which the primary
government is considered to be financially accountable. There are no component units within this
reporting entity.
C.Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net 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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
24
Note 1.Summary of Significant Accounting Policies (Continued)
D.Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund financial
statements. Revenues are recorded when earned, and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the Town considers revenue as available if it is collected within
45 days of the end of the current fiscal period. Expenditures generally are recorded when a
liability is incurred, as under accrual accounting. However, debt service expenditures, as well as
expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are
all considered to be susceptible to accrual and have been recognized as revenues of the current
fiscal period. All other revenue items are considered to be measurable and available only when
cash is received by the Town.
The Town reports the following major governmental funds:
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 capital projects fund is used to account for financial resources which have been
segregated for the acquisition or construction of major capital facilities.
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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
25
Note 1.Summary of Significant Accounting Policies (Continued)
D.Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
Amounts reported as program revenues include (1) charges to customers or applicants for goods,
services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as
general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund’s principal ongoing operations. The
principal operating revenues of the water and sewer enterprise fund are charges to customers for
sales and services. 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.
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 $4,712,000 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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
26
Note 1. Summary of Significant Accounting Policies (Continued)
E. Budgets and Budgetary Accounting (Continued)
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.
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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
27
Note 1. Summary of Significant Accounting Policies (Continued)
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:
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.
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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
28
Note 1. Summary of Significant Accounting Policies (Continued)
O. Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type statement of
net position. Bond premiums and discounts are deferred and amortized over the life of the bonds
using the straight-line method. Bonds payable are reported net of the applicable bond premium or
discount. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as expenses.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are reported
as other financing sources, while discounts on debt issuances are reported as other financing uses.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as
debt service expenditures.
P. Fund Balances
Fund balance is divided into five classifications based primarily on the extent to which the Town
is bound to observe constraints imposed upon the use of the resources. The classifications are as
follows:
• Nonspendable – Amounts that cannot be spent because they are not in spendable form,
or legally or contractually required to be maintained intact. The “not in spendable form”
criterion includes items that are not expected to be converted to cash.
• Restricted – Amounts constrained to specific purposes by their providers (such as
grantors, bondholders, and higher levels of government), through constitutional
provisions, or by enabling legislation.
• Committed – Amounts constrained to specific purposes by the Town, using its highest
level of decision making authority; to be reported as committed, amounts cannot be used
for any other purposes unless the same highest level of action is taken to remove or
change the constraint.
• Assigned – Amounts the Town intends to use for a specified purpose; intent can be
expressed by the governing body.
• Unassigned – Amounts that are available for any purpose; positive amounts are reported
only in the general fund.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
29
Note 1.Summary of Significant Accounting Policies (Continued)
P.Fund Balances (Continued)
Council establishes (and modifies or rescinds) fund balance commitments by passage of an
ordinance or resolution. This is typically done through adoption and amendment of the budget.
The degree of difficulty to remove an ordinance is greater than a resolution; therefore an
ordinance is the most binding. Assigned fund balance is established by Council, the Town
Manager, or the Director of Finance through adoption or amendment of the budget as intended for
specific purpose (such as the purchase of capital assets, debt service, or for other purposes).
The Town applies restricted resources first when expenditures are incurred for purposes for which
either restricted or unrestricted (committed, assigned, and unassigned) amounts are available.
Similarly, within unrestricted fund balance, committed amounts are reduced first followed by
assigned, and then unassigned amounts when expenditures are incurred for purposes for which
amounts in any of the unrestricted fund balance classifications could be used.
Minimum Fund Balance Policy
The Town 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 $14,582 in net investment in capital assets due
to the difference of when a new vehicle was placed into service and begun depreciation and the
principal amount outstanding at year end.
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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
30
Note 1.Summary of Significant Accounting Policies (Continued)
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.
Credit Risk
As required by state statute, the Policy requires that commercial paper have a short-term debt rating
of no less than “A-1” (or its equivalent) from at least two of the following: Moody’s Investors
Service, Standard & Poor’s, and Fitch Investors Service, provided that the issuing corporation has a
net worth of at least $50 million and its long-term debt is rated “A” or better by Moody’s and
Standard & Poor’s. Bankers’ acceptances and Certificates of Deposit maturing in less than one year
must have a short-term debt rating of at least “A-1” by Standard & Poor’s and “P-1” by Moody’s
Investors Service.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
31
Note 2. Deposits and Investments (Continued)
Investments (Continued)
Credit Risk (Continued)
Although the intent of the Policy is for the Town to diversify its investment portfolio to avoid
incurring unreasonable risks regarding (i) security type, (ii) individual financial institution or issuing
entity, and (iii) maturity, the Policy places no limit on the amount the Town may invest in any one
issuer.
Interest Rate Risk
As a means of limiting its exposure to fair value losses arising from rising interest rates, the Town’s
investment policy specifies that no investment may have a maturity greater than two years from the
date of purchase, and the average maturity of the portfolio must not exceed 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 $46,600 of utility deposits, $24,781 of evidence
found, and $1,378 of flex benefit spending that can only be used for specific purposes.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(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, 2020
(Continued)
33
Note 5.Capital Assets
Capital asset activity for the year was as follows:
Governmental Activities
Beginning
Balance
(Restated)Increases Decreases
Ending
Balance
Capital assets, not depreciated
Land $1,832,033 $- $- $1,832,033
Construction in progress 151,287 209,412 - 360,699
Total capital assets, not depreciated 1,983,320 209,412 - 2,192,732
Capital assets, depreciated
Buildings and improvements 9,560,717 121,492 - 9,682,209
Machinery and equipment 4,561,019 35,867 (802,289)3,794,597
Infrastructure 3,459,256 27,884 - 3,487,140
Total capital assets, depreciated 17,580,992 185,243 (802,289)16,963,946
Less accumulated depreciation for:
Buildings and improvements (5,009,112)(273,488)- (5,282,600)
Machinery and equipment (3,823,365)(174,036)802,289 (3,195,112)
Infrastructure (1,653,145)(171,184)- (1,824,329)
Total accumulated depreciation (10,485,622)(618,708)802,289 (10,302,041)
Total capital assets, depreciated, net 7,095,370 (433,465)- 6,661,905
Governmental activities
capital assets, net $9,078,690 $(224,053)$- $8,854,637
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
34
Note 5.Capital Assets (Continued)
Business-type Activities
Beginning
Balance
(Restated)Increases Decreases
Ending
Balance
Capital assets, not depreciated
Land $80,752 $- $- $80,752
Total capital assets, not depreciated 80,752 - - 80,752
Capital assets, depreciated
Utility plant 19,427,860 39,221 - 19,467,081
Sewage treatment contract 4,111,373 - - 4,111,373
Machinery and equipment 2,331,038 - (40,084)2,290,954
Total capital assets, depreciated 25,870,271 39,221 (40,084)25,869,408
Less accumulated depreciation for:
Utility plant (12,213,100)(586,006)- (12,799,106)
Sewage treatment contract (1,969,984)(143,961)- (2,113,945)
Machinery and equipment (1,260,521)(90,556)40,084 (1,310,993)
Total accumulated depreciation (15,443,605)(820,523)40,084 (16,224,044)
Total capital assets, depreciated, net 10,426,666 781,302 - 9,645,364
Business-type activities
capital assets, net $10,507,418 $(781,302)$- $9,726,116
Depreciation expense was charged to functions/programs of the primary government as follows:
Construction Commitments
The Town has a $307,000 construction commitment for the Glade Creek Greenway construction
project as of June 30, 2020.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(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
Activities Balance Additions Reductions Balance One Year
Business-type
Activities
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
36
Note 6.Long-Term Liabilities (Continued)
Governmental activities’ compensated absences, pension liabilities, and other post-employment
liabilities are generally liquidated by the general fund.
Governmental Activities
General Obligation
Bonds Capital Leases
Obligations Payable
Roanoke County and
RCACP
Fiscal
Year Principal Interest Principal Interest Principal Interest
2021 330,638 $47,801 $57,700 $7,792 $64,152 $409
2022 339,388 39,635 59,256 6,215 8,868 194
2023 343,733 31,407 60,855 4,595 2,332 14
2024 356,578 22,797 62,497 2,930 - -
2025 358,897 14,032 44,064 1,219 - -
2026-2027 256,000 11,079 12,374 198 - -
1,985,234 $166,751 $296,746 $22,949 $75,352 $617
Business-type Activities
General Obligation
Bonds Revenue Bonds
Obligation Payable
WVWA
Fiscal
Year Principal Interest Principal Interest Principal Interest
2021 369,175 $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 16,384 4,328
2024 404,748 54,484 186,000 18,101 16,771 3,940
2025 373,611 41,878 191,000 14,237 17,168 3,544
2026-2030 834,838 94,903 599,000 18,563 92,120 11,437
2031-2033 339,882 14,716 - - 47,504 1,522
$3,095,449 $441,305 $1,513,000 $127,561 $221,589 $34,552
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
37
Note 6.Long-Term Liabilities (Continued)
Capital Leases
Fiscal
Year Principal Interest
2021 110,818 $14,069
2022 113,709 11,178
2023 111,764 8,210
2024 109,729 5,333
2025 74,458 2,436
2026 37,866 860
$558,344 $42,086
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, 2020 was 1.63. 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 $350,000 $-
Virginia Revolving Loan Fund:
G.O. Water and Sewer Bonds 3.30%07/24/03 07/01/24 1,250,704 - 363,069
G.O. Water and Sewer Bonds 3.10%10/01/04 10/01/26 2,479,000 - 996,177
G.O. Water and Sewer Bonds 3.10%01/12/06 03/01/26 1,210,000 - 452,069
Virginia Association of Counties:
G.O. Refunding Bonds 2.05%05/25/16 02/01/27 702,000 494,000 -
Capital One Public Funding:
G.O. Public Improvement Bonds 2.85%06/27/13 11/01/32 1,993,152 - 1,284,134
Carter Bank and Trust:
G.O. Refunding Bonds 2.05%06/27/13 11/01/24 2,228,409 1,141,234 -
1,985,234 3,095,449
Plus bond premium, net of amortization 14,806 -
$2,000,040 $3,095,449
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
38
Note 6. Long-Term Liabilities (Continued)
Details of long-term indebtedness are as follows: (Continued)
Interest Maturity Original Type
Revenue Bonds
Capital Lease
Obligations Payable
Note 7. Performance Agreements
The Town has committed funds for several performance agreements with local businesses to
encourage redevelopment and economic growth in the Town. In exchange, the Town will provide
funding equal to annual meals tax generated by the business or make annual payments as performance
benchmarks are met, depending on the agreement. The expected maturity of the total payouts is
June 30, 2031. As of June 30, 2020, the amount earned is $327,347 and the amount unearned is
$862,466.
Note 8. 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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
39
Note 8.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
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.
Employees Covered by Benefit Terms
As of the June 30, 2018 actuarial valuation, the following employees were covered by the benefit
terms of the pension plan:
Number
Inactive members or their beneficiaries currently receiving benefits 76
Inactive members:
Vested inactive members 25
Non-vested inactive members 22
Inactive members active elsewhere in VRS 53
Total inactive members 100
Active members 83
Total covered employees 259
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, 2020
was 11.69% 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 $365,794 and
$424,410 for the years ended June 30, 2020 and June 30, 2019, respectively.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
40
Note 8.Defined Benefit Pension Plan (Continued)
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, 2019. The total pension liability used to calculate the
net pension liability was determined by an actuarial valuation performed as of June 30, 2018 rolled
forward to the measurement date of June 30, 2019.
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, 2018, 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, 2019.
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 6.75%, 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 6.75%. However, since the difference was minimal, and a more conservative
6.75% 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 6.75% 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 setbacks or set forwards for both
males and females.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
41
Note 8. Defined Benefit Pension Plan (Continued)
Actuarial Assumptions (Continued)
The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an
actuarial experience study for the period from July 1, 2012 through June 30, 2016, except the change
in the discount rate, which was based on VRS Board action effective as of July 1, 2019. 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; adjusted withdrawal rates to better fit experience at each year age and service through 9
years of service; lowered disability rates, no change to salary scale, increased rate of line of
duty disability from 14% to 20% (Largest 10) or 15% (All Others), and decreased discount rate
from 7.00% to 6.75%.
Public Safety Employees – Largest 10 – Hazardous Duty and All Others (Non 10 Largest):
Update mortality table; lowered retirement rate at older ages; adjustment to rates of withdrawal
and disability to better fit experience; changes to line of duty rates, no changes to salary scale,
and decreased discount rate from 7.00% to 6.75%.
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
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
42
Note 8. Defined Benefit Pension Plan (Continued)
Long-Term Expected Rate of Return (Continued)
* The above allocation provides for a one-year return of 7.63%. 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 7.11%, including
expected inflation of 2.5%. The VRS Board elected a long-term rate of 6.75% which is
roughly at the 40th percentile of expected long-term results of the VRS fund allocation.
Discount Rate
The discount rate used to measure the total pension liability was 6.75%. 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, 2019, the alternate rate was the employer contribution rate used in the FY 2012 or 100% of
the actuarially determined employer contribution rate from the June 30, 2017, actuarial valuations,
whichever is greater. From July 1, 2019 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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
43
Note 8.Defined Benefit Pension Plan (Continued)
Changes in Net Pension Liability
Increase (Decrease)
Total Plan Net
Pension Fiduciary Pension
Liability Net Position Liability
(a)(b)(a) –(b)
Balances at June 30, 2018 $18,955,546 $17,267,318 $1,688,228
Changes for the year:
Service cost 468,134 - 468,134
Interest 1,285,883 - 1,285,883
Changes of assumptions 565,700 - 565,700
Differences between expected
and actual experience (51,996)- (51,996)
Contributions –employer - 413,427 (413,427)
Contributions –employee - 173,246 (173,246)
Net investment income - 1,133,463 (1,133,463)
Benefit payments, including refunds
of employee contributions (1,171,567)(1,171,567)-
Administrative expenses - (11,552)11,552
Other changes - (711)711
Net changes 1,096,154 536,306 559,848
Balances at June 30, 2019 $20,051,700 $17,803,624 $2,248,076
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
6.75%, 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 (5.75%) or one percentage point higher
(7.75%) than the current rate:
1.00%Current 1.00%
Decrease Discount Increase
(5.75%)Rate (6.75%)(7.75%)
Political subdivision’s net
pension liability $4,828,505 $2,248,076 $192,749
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
44
Note 8.Defined Benefit Pension Plan (Continued)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended June 30, 2020, the political subdivision recognized pension expense of $640,730.
At June 30, 2020,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 $122,583 $34,067
Change in assumptions 370,631 -
on pension plan investments - 151,446
Employer contributions subsequent to the
measurement date 365,794 -
Total $859,008 $185,513
The $365,794 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, 2021. Other amounts reported as
deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
Increase
(Reduction)
Year Ending to Pension
June 30,Expense
2021 $296,429
2022 3,968
2023 (3,243)
2024 10,547
2025 -
Thereafter -
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
45
Note 8.Defined Benefit Pension Plan (Continued)
Pension Plan Data
Information about the VRS Political Subdivision Retirement Plans is also available in the separately
issued VRS 2019 Comprehensive Annual Financial Report (CAFR). A copy of the 2019 VRS CAFR
may be downloaded from the VRS website at http://www.varetire.org/Pdf/Publications/2019-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, 2020, approximately $29,856 was payable to the Virginia Retirement System for the
legally required contributions related to June 2020 payroll.
Note 9.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 through a single-employer defined benefit plan. 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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
46
Note 9. Other Postemployment Benefits Liability – Local Plan (Continued)
Employees Covered by Benefit Terms
As of the January 1, 2020 actuarial valuation, the following employees were covered by the benefit
terms of the plan:
Number
Total OPEB Liability
The Town’s total OPEB liability of $303,506 was measured as of June 30, 2020 and was determined
based on an actuarial valuation performed as of January 1, 2020.
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:
dependent on years of service
Mortality rates: Ranges from 0.00016 to 0.09286.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
47
Note 9. Other Postemployment Benefits Liability – Local Plan (Continued)
Actuarial Assumptions and Other Inputs (Continued)
The actuarial assumptions used in the January 1, 2020 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
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
(1.21%) or one percentage point higher (3.21%) than the current discount rate:
1.00% Current 1.00%
Decrease Discount Increase
(1.21%) Rate (2.21%) (3.21%)
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%)
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
48
Note 9.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, 2020, the Town recognized OPEB expense of $25,352. At
June 30, 2020, 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
Differences between expected and actual experience $- $149,483
Change in assumptions 14,792 61,050
Total $14,792 $210,533
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, 2021. 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
2021 $(29,119)
2022 (29,119)
2023 (29,119)
2024 (29,119)
2025 (20,119)
Thereafter (50,146)
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
49
Note 10.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. This plan is considered a multiple employer,
cost sharing plan.
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, 2020 Contribution $18,325
June 30, 2019 Contribution $18,863
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
50
Note 10.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, 2019 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, 2019 relative to the total of the
actuarially determined employer contributions for all participating employers.
Group Life Insurance Program
June 30, 2020 proportionate share of
liability $301,000
June 30, 2019 proportion 0.01850%
June 30, 2018 proportion 0.01983%
June 30, 2020 expense $7,911
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, 2020, 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 $20,021 $3,904
Change in assumptions 19,006 9,078
on OPEB plan investments - 6,184
Changes in proportion 14,730 17,743
Employer contributions subsequent to the
measurement date 18,325 -
Total $72,082 $36,909
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
51
Note 10.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, 2021. 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
Reduction
Year Ending to OPEB
June 30,Expense
2021 $2,019
2022 2,020
2023 4,639
2024 4,679
2025 2,865
Thereafter 626
Actuarial Assumptions and Other Inputs
The total OPEB liability was determined using the following assumptions based on an actuarial
valuation date of June 30, 2018, applied to all periods included in the measurement and rolled
forward to the measurement date of June 30, 2019:
Inflation 2.5%
Salary increases, including inflation:
Locality-general employees
Locality –hazardous duty
employees
3.5 –5.35%
3.5 –4.75%
Healthcare cost trend rates:
Under age 65
Ages 65 and older
7.25 –4.75%
5.50 –4.75%
Investment rate of return, net of expenses,
including inflation*
GLI: 6.75%
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
52
Note 10.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 8.
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 the measurement date of
June 30, 2019, net OPEB liability amounts for the VRS OPEB program is as follows (amounts
expressed in thousands):
Group Life
Insurance
Program
Total OPEB Liability $ 3,390,238
Plan fiduciary net
position $ 1,762,972
Employers’ net OPEB
liability (asset)$ 1,627,266
Plan fiduciary net
position as a percentage
of total OPEB liability 52.00%
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, 2020
(Continued)
53
Note 10.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 34.00 %5.61 %1.91 %
Fixed Income 15.00 0.88 0.13
Credit Strategies 14.00 5.13 0.72
Real Assets 14.00 5.27 0.74
Private Equity 14.00 8.7 1.23
MAPS-Multi-Asset Public Strategies 6.00 3.52 0.21
PIP-Private Investment Partnership 3.00 6.29 0.19
Total 100.00 %5.13 %
Inflation 2.50 %
*Expected arithmetic nominal return 7.63 %
*The above allocation provides for a one-year return of 7.63%. 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 7.11%, including
expected inflation of 2.50%.The VRS Board elected a long-term rate of 6.75% which is
roughly at the 40th percentile of expected long-term results of the VRS fund asset allocation.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
54
Note 10.Other Postemployment Benefits Liability –Virginia Retirement System Plan (Continued)
Discount Rate
The discount rate used to measure the GLI OPEB liability was 6.75%.The projection of cash flows
used to determine the discount rate assumed that System member contributions will be made per the
VRS Guidance and the employer contributions will be made in accordance with the VRS funding
policy at rates equal to the difference between actuarially determined contribution rates adopted by
the VRS Board of Trustees and the member rate. Through the fiscal year ending June 30, 2019, the
rate contributed by the employer for the OPEB liabilities will be subject to the portion of the VRS
Board-certified rates that are funded by the Virginia General Assembly. From July 1, 2019 on,
participating employers are assumed to contribute 100% of the actuarially determined contribution
rates. Based on those assumptions, the OPEB plans’ fiduciary net position was projected to be
available to make all projected future benefit payments of current active and inactive employees.
Therefore the long-term expected rate of return was applied to all periods of projected benefit
payments to determine the total OPEB liability.
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB 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 (5.75%
GLI) or one percentage point higher (7.75%GLI) than the current discount rate:
1.00%
Decrease
Current
Discount Rate
1.00%
Increase
(5.75%)(6.75%)(7.75%)
GLI Net OPEB liability $395,000 $301,000 $224,000
OPEB Plan Fiduciary Net Position
Information about the various VRS OPEB plan fiduciary net position is available in the separately
issued VRS 2019 Comprehensive Annual Financial Report (CAFR). A copy of the 2019 VRS CAFR
may be downloaded from the VRS website at http://www.varetire.org/Pdf/Publications/2019-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, 2020, the following amounts were payable to the Virginia Retirement System for the
legally required contributions related to June 2020 payroll.
Group Life Insurance $ 2,016
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
55
Note 11.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 $89,817 $32,766 $122,583
Changes of assumptions
VRS 271,561 99,070 370,631
Employer contributions subsequent
to the measurement date
VRS 268,252 97,542 365,794
Total deferred outflows of
resources –pensions $629,630 $229,378 $859,008
Deferred outflows of resources –
OPEB
Differences between expected and
actual experience
VRS GLI $18,173 $1,848 $20,021
Changes of assumptions
Local plan 13,427 1,365 14,792
VRS GLI 17,252 1,754 19,006
Employer contributions subsequent
to the measurement date
VRS GLI 16,633 1,692 18,325
Changes in proportional share
VRS GLI 13,370 1,360 14,730
Total deferred outflows of
resources –OPEB $78,855 $8,019 $86,874
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
56
Note 11.Summary of Pension and Other Postemployment Benefit Elements (Continued)
Total
Governmental Business-Type Primary
Activities Activities Government
Net pension liability
VRS $1,647,165 $600,911 $2,248,076
Total net pension liability $1,647,165 $600,911 $2,248,076
Local plan $272,200 $31,306 $303,506
VRS GLI 273,215 27,785 301,000
Total net OPEB liability $545,415 $59,091 $604,506
Deferred inflows of resources –
pensions
Difference between expected and
actual experience
VRS $24,960 $9,107 $34,067
Net difference between projected
and actual investment earnings
on pension plan investments
VRS 110,964 40,482 151,446
Total deferred inflows of
resources –pensions $135,924 $49,589 $185,513
Deferred inflows of resources –
OPEB
Difference between expected and
actual experience
Local plan $135,684 $13,799 $149,483
VRS GLI 3,544 360 3,904
Change in assumptions
Local plan 55,415 5,635 61,050
VRS GLI 8,240 838 9,078
Change in proportionate share
VRS GLI 16,105 1,638 17,473
Net difference between projected
and actual investment earnings
on OPEB plan investments
VRS GLI 5,613 571 6,184
Total deferred inflow of
resources –OPEB $224,601 $22,841 $247,442
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
57
Note 12.Summary of Pension and Other Postemployment Benefit Expenses/Expenditures
Total
Governmental Business-Type Primary
Activities Activities Government
Pension expense
VRS $469,463 $171,267 $640,730
Total pension expense $469,463 $171,267 $640,730
OPEB expense
Local plan $22,737 $2,615 $25,352
VRS GLI 7,181 730 7,911
Total OPEB expense $29,918 $3,345 $33,263
Note 13.Deferred Compensation Plan
Plan description
The Town offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan, available to all employees, permits them to defer a portion of
their salary until future years. The deferred compensation is not available to employees until
termination, retirement, death, or qualifying hardship. The Town makes a matching contribution up
to the equivalent of $10 per month per employee.
All amounts of compensation deferred under the plan, all property and rights purchased with these
amounts,and all income attributable to those amounts, property, or rights are held in trust by a
third-party for the exclusive benefit of participants and their beneficiaries. For 2020, the Town’s
matching contributions totaled $6,300.
Note 14.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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
58
Note 15.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 16.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.
The Town also leases vehicles for 60 months. As of June 30, 2020, the Town has leased 22 vehicles,
primarily for public safety, through this agreement. The monthly payments per vehicle range from
approximately $470 to $860 per month. Lease expense for the years ended June 30, 2020 and 2019
was $101,027 and $6,173, respectively. Estimated future minimum lease payments are as follows:
2021 $154,133
2022 154,133
2023 154,133
2024 145,565
2025 62,754
$670,718
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
59
Note 17.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
2019-2020, total premiums paid were approximately $91,000. 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 2019-2020, total premiums paid were approximately $95,000.
General liability and business automobile have a $1,000,000 limit per occurrence. Boiler and
machinery coverage and property insurance have a $5,000,000 limit per accident. The Town
maintains an additional $4,000,000 per occurrence 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.
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 2019-2020, total premiums paid were approximately $610,000.
Note 18.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 $15.7 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, 2020
(Continued)
60
Note 18.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. This agreement was replaced with a service agreement in
July 2019.
Roanoke County Service Agreement –Vinton Business Center
Effective July 1, 2019, the previous Gain Sharing Agreement was replaced with a Service Agreement
between the Town of Vinton and Roanoke County. The service agreement formalized revenues and
services shared by the local governments. The agreement also mentions the continuation of the
Vinton Business Center, previously MacDonald Farm, in the Gain Sharing Agreement. The Town
and County jointly share the costs of development and revenues generated by this project. The Town
and County must also 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 19.Major Customer/Taxpayer
During fiscal year 2020, approximately 5.4% of the Town’s business-type revenues were generated
by one industrial customer.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
61
Note 20. Interfund Activity
The primary purpose of the $181,628 from the general fund and $181,628 from the water and sewer
fund to the stormwater management fund was to cover obligations of stormwater fund. The primary
purpose of the $600,012 from the general fund to the capital projects fund was to cover capital
outlays for the new capital projects fund.
Note 21. 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
Capital
Nonspendable:
Total nonspendable
Restricted for:
Committed:
Total committed
Assigned:
Unassigned
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 22. Subsequent Event
See Note 23 for ongoing economic and financial impact of COVID-19.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
62
Note 23.COVID-19 Impact
On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency
because of a new strain of coronavirus (the “COVID-19 outbreak”) and the risks to the international
community as the virus spreads globally beyond its point of origin. In March 2020, the WHO
classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally.
The Town’s operations are heavily dependent on the ability to raise taxes, assess fees, and access the
capital markets. Additionally, access to grants and contracts from federal and state governments may
decrease or may not be available depending on appropriations. The outbreak will have a continued
material adverse impact on economic and market conditions, triggering a period of global economic
slowdown. This situation has depressed the tax bases and other areas in which the Town received
revenue during fiscal year 2020. As such, the Town’s financial condition and liquidity will be
negatively impacted for the fiscal year 2021.
The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. As such,
it is uncertain as to the full magnitude the pandemic will have on the Town’s financial condition,
liquidity, and future results of operations. Management is actively monitoring the impact of the global
situation on its financial condition, liquidity, operations, suppliers, industry, and workforce. Given the
daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the Town is
not able to estimate the effects of the COVID-19 outbreak on its results of operations, financial
condition, or liquidity for fiscal year 2021.
Note 24.Prior period Restatement of Net Position and Fund Balance
The following is a summary of the restatement to net position:
Governmental
Activities
Business-Type
Activities
Net position, July 1, 2019, as previously recorded $8,224,069 $6,734,062
Use of debt proceeds to purchase equipment (46,532)(76,215)
$8,177,537 $6,657,847
The following is a summary of the restatement of fund balance:
General Fund
Water and
Sewer Fund
Net position, July 1, 2019, as previously recorded $3,750,688 $6,797,743
Use of debt proceeds to purchase equipment (231,542)(76,215)
$3,519,146 $6,721,528
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
(Continued)
63
Note 25.New Accounting Standards
The Governmental Accounting Standards Board (GASB) has issued the following Statements which
are not yet effective. The effective dates below are updated based on Statement No. 95,
Postponement of the Effective Dates of Certain Authoritative Guidance due to the COVID-19
pandemic.
In January 2017, the GASB issued Statement No. 84, Fiduciary Activities. This Statement
establishes standards of accounting and financial reporting for fiduciary activities. The requirements
of this Statement are effective for reporting periods beginning after December 15, 2019.
In June 2017, The GASB issued Statement No. 87, Leases. This Statement establishes standards of
accounting and financial reporting for leases by lessees and lessors. The requirements of this
Statement are effective for fiscal years beginning after June 15, 2021.
In March 2018, the GASB issued Statement No. 88, Certain Disclosures Related to Debt, Including
Direct Borrowings and Direct Placements. This Statement improves the information disclosed in the
notes to government financial statements related to debt. The requirements of this Statement are
effective for fiscal years beginning after June 15, 2019.
In August 2018, the GASB issued Statement No. 90, Majority Equity Interests, an amendment of
GASB Statements No. 14 and No. 61. 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.
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2020
64
Note 25.New Accounting Standards (Continued)
The requirements of this Statement are effective for reporting periods beginning after
December 15, 2019. 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.
In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. This Statement
provides a single method of reporting conduit debt obligations by issuers and eliminates diversity in
practice associated with (1) commitments extended by issuers, (2) arrangements associated with
conduit debt obligations, and (3) related note disclosures.The requirements of this Statement are
effective for reporting periods beginning after December 15, 2021.
In January 2020, the GASB issued Statement No. 92, Omnibus. This Statement enhances
comparability in accounting and financial reporting and improves the consistency of authoritative
literature by addressing practice issues that that have been identified during implementation and
application of certain GASB Statements. Certain requirements of this Statement are effective
immediately and others for reporting periods beginning after June 15, 2021.
In March 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered Rates. This
Statement addresses accounting and financial reporting implications that result from the replacement
of an IBOR. The removal of LIBOR as an appropriate benchmark interest rate is effective for
reporting periods ending after December 31, 2022. All other requirements of this Statement are
effective for reporting periods beginning after June 15, 2021.
In March 2020, the GASB issued Statement No. 94, Public-Private and Public-Public Partnerships
and Availability Payment Arrangements. This Statement improves financial reporting by addressing
issues related to public-private and public-public partnership arrangements (PPPs). The requirements
of this Statement are effective for reporting periods beginning after June 15, 2022.
In May 2020, the GASB issued Statement No. 96, Subscription-Based Information Technology
Arrangements. This Statement provides guidance on the accounting and financial reporting for
subscription-based information technology arrangements (SBITAs) for government end users
(governments). The requirements of this Statement are effective for reporting periods beginning after
June 15, 2022.
In June 2020, the GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting
and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans –an
Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32.
This Statement provides a more consistent financial reporting of defined contribution pension plans,
defined contribution OPEB plans, and other employee benefit plans, while mitigating the costs
associated with reporting those plans. Certain requirements of this Statement are effective
immediately and others for reporting periods beginning after June 15, 2021.
Management has not determined the effects these new GASB Statements may have on prospective
financial statements.
THIS PAGE INTENTIONALLY BLANK
65
REQUIRED SUPPLEMENTARY
INFORMATION
EXHIBIT 11
2019 2018 2017 2016 2015 2014
Total Pension Liability
Service cost 468,134$ 478,932$ 443,567$ 426,921$ 450,265$ 430,229$
Interest on total pension liability 1,285,883 1,218,558 1,197,526 1,167,910 1,112,256 1,065,284
Difference between expected and actual experience (51,996) 361,554 (356,343) (201,924) 139,140 -
Changes in assumptions 565,700 - 8,604 - - -
Benefit payments, including refunds of employee contributions (1,171,567) (1,022,942) (962,861) (976,757) (836,477) (812,476)
Net change in total pension liability 1,096,154 1,036,102 330,493 416,150 865,184 683,037
Total pension liability - beginning 18,955,546 17,919,444 17,588,951 17,172,801 16,307,617 15,624,580
Total pension liability - ending 20,051,700 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 536,306 759,164 1,416,776 (159,092) 422,753 1,714,351
Plan fiduciary net position - beginning 17,267,318 16,508,154 15,091,378 15,250,470 14,827,717 13,113,366
Plan fiduciary net position - ending 17,803,624 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, 2020
financial report.
Plan Year
The Notes to Required Supplementary Information are an integral part of this statement.
66
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
2020 365,794$ 365,794$ -$ $ 3,129,677 11.69%
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, 2020
REQUIRED SUPPLEMENTAL INFORMATION
Schedule is intended to show information for 10 years.Since 2015 was the first year for this presentation,no earlier data is
available. However, additional years will be included as they become available.
The Notes to Required Supplementary Information are an integral part of this statement.
67
EXHIBIT 13
Fiscal Year 2020 Fiscal Year 2019 Fiscal Year 2018
Local Plan Local Plan Local Plan
Total OPEB Liability
Service cost 35,863$ 47,628$ 49,307$
Interest on total OPEB liability 18,608 18,664 15,730
Economic/demographic gains (171,794) - -
Changes in assumptions (56,902) 20,076 (17,718)
Benefit payments (35,806) (14,834) (10,820)
Net change in total OPEB liability (210,031) 71,534 36,499
Total OPEB liability - beginning 513,537 442,003 405,504
Total OPEB liability - ending 303,506 513,537 442,003
Plan Fiduciary Net Position
Contributions - employer 35,806 14,834 10,820
(35,806) (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
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, 2020
Benefit payments
The Notes to Required Supplementary Information are an integral part of this statement.
68
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
2020 0.01850%301,000$ $ 3,634,236 8.28%52.00%
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, 2020
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.
69
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
2020 18,325$ 18,325$ -$ 3,129,677$ 0.59%
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, 2020
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.
70
71
TOWN OF VINTON, VIRGINIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2020
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 actuarial assumptions used in the June 30, 2018, valuation were based on the results of an
actuarial experience study for the period from July 1, 2012, through June 30, 2016, except the change
in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to
the actuarial assumptions as a result of the experience study and VRS Board action are as follows:
Largest 10 –Non-Hazardous Duty:
-Update mortality table to RP-2014 projected to 2020
-Lowered rates at older ages and extended final retirement age from 70 to 75
-Update withdrawal rates to better fit experience at each age and service year
-Lowered rates of disability retirement
-No changes to salary rates
-Increase Line of Duty Disability rates from 14% to 20%
-Decrease discount rate from 7.00% to 6.75%
-Applicable to: Pension and GLI OPEB
Largest 10 –Hazardous Duty/Public Safety Employees:
-Update mortality table to RP-2014 projected to 2020
-Lowered rates of retirement at older ages
-Update withdrawal rates to better fit experience at each age and service year
-Increased disability rates
-No changes to salary rates
-Increased Line of Duty disability rates from 60% to 70%
-Decreased discount rate from 7.00% to 6.75%
-Applicable to: Pension and GLI OPEB
72
TOWN OF VINTON, VIRGINIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2020
Note 2.Changes of Assumptions (Continued)
All Others (Non 10 Largest) –Non-Hazardous Duty:
-Update mortality table to RP-2014 projected to 2020
-Lowered rates of retirement at older ages and changed final retirement from 70 to 75
-Update withdrawal rates to better fit experience at each age and service year
-Lowered disability rates
-No changes to salary rates
-Increased Line of Duty disability rate from 14% to 15%
-Decreased discount rate from 7.00% to 6.75%
-Applicable to: Pension, GLI OPEB
All Others (Non 10 Largest) –Hazardous Duty/Public Safety Employees:
-Update mortality table to RP-2014 projected to 2020
-Increased retirement rate at age 50 and lowered rates at older ages
-Update withdrawal rates to better fit experience at each age and service year
-Update disability rates to better fit experience
-No changes to salary rates
-Lowered Line of Duty rate from 60% to 45%
-Decreased discount rate from 7.00% to 6.75%
-Applicable to: Pension, GLI OPEB
THIS PAGE INTENTIONALLY BLANK
73
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
2020 2019 1 2018 2017 2016 2015 2014 2013 2012 2011
Governmental activities
Net investment in capital assets 6,634,748$ 6,747,977$ 6,548,322$ 6,638,792$ 6,225,603$ 5,929,925$ 5,427,254$ 5,704,050$ 5,919,643$ 6,316,937$
Restricted 74,711 180,691 206,673 132,387 209,649 235,246 190,161 91,676 - 20,053
Unrestricted 2,849,241 1,248,869 673,717 770,368 801,646 499,226 2,291,758 2,219,240 1,972,859 1,491,375
Total governmental activities net position 9,558,700$ 8,177,537$ 7,428,712$ 7,541,547$ 7,236,898$ 6,664,397$ 7,909,173$ 8,014,966$ 7,892,502$ 7,828,365$
Business-type activities
Net investment in capital assets 4,424,574$ 5,051,330$ 4,760,652$ 4,862,273$ 4,880,340$ 5,184,003$ 4,834,097$ 4,853,969$ 4,838,640$ 5,019,517$
Unrestricted 2,364,985 1,606,517 1,823,180 1,504,611 1,035,813 117,415 410,722 394,976 339,523 661,273
Total business-type activities net position 6,789,559$ 6,657,847$ 6,583,832$ 6,366,884$ 5,916,153$ 5,301,418$ 5,244,819$ 5,248,945$ 5,178,163$ 5,680,790$
Primary government
Net investment in capital assets 11,059,322$ 11,799,307$ 11,308,974$11,501,065$ 11,105,943$ 11,113,928$ 10,261,351$ 10,558,019$ 10,758,283$ 11,336,454$
Restricted 74,711 180,691 206,673 132,387 209,649 235,246 190,161 91,676 - 20,053
Unrestricted 5,214,226 2,855,386 2,496,897 2,274,979 1,837,459 616,641 2,702,480 2,614,216 2,312,382 2,152,648
Total primary government net position 16,348,259$ 14,835,384$ 14,012,544$13,908,431$ 13,153,051$ 11,965,815$ 13,153,992$ 13,263,911$ 13,070,665$ 13,509,155$
1 Restated
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
74
TABLE 2
2020 2019 1 2018 2017 2016 2015 2014 2013 2012 2011
Expenses
Governmental activities
General government 1,391,690$ 1,049,355$ 962,685$ 992,699$ 1,001,560$ 927,954$ 962,341$ 942,315$ 948,803$ 934,388$
Public safety 2,941,870 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
Public works 1,748,237 1,890,909 1,893,248 2,011,469 2,026,305 2,021,994 1,993,713 2,074,464 2,062,430 2,243,111
Parks, recreation, and cultural 477,604 539,309 517,122 591,208 591,342 621,897 635,252 588,649 553,866 583,569
Community development 679,173 461,068 416,637 479,973 447,908 427,409 575,557 398,517 1,034,510 339,983
Interest on long-term debt 76,732 92,062 94,963 106,756 126,164 193,242 200,584 143,455 183,672 194,159
Total governmental activities 7,315,306 7,599,421 7,571,546 8,108,868 7,533,903 7,611,062 7,706,595 7,385,761 7,997,903 7,692,772
Business-type activities
Water and sewer 3,488,665 3,535,493 3,279,827 3,088,256 3,103,779 2,994,485 3,174,896 2,946,127 3,044,342 3,002,964
Stormwater management 364,142 337,655 253,188 419,957 ------
Total business-type activities expense 3,852,807 3,873,148 3,533,015 3,508,213 3,103,779 2,994,485 3,174,896 2,946,127 3,044,342 3,002,964
Total primary government expenses 11,168,113$ 11,472,569$ 11,104,561$ 11,617,081$ 10,637,682$ 10,605,547$ 10,881,491$ 10,331,888$ 11,042,245$ 10,695,736$
Program Revenues
Governmental activities
Charges for services
Public safety 125,573$ 127,096$ 93,599$ 118,454$ 63,735$ 72,356$ 88,364$ 89,115$ 91,196$ 119,870$
Public works 72,594 84,876 110,167 110,145 110,099 110,295 110,425 110,115 110,460 110,380
Other activities 221,880 489,012 506,160 540,600 559,171 570,459 554,666 495,133 440,883 466,306
Operating grants and contributions 1,966,475 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
Capital grants and contributions 309,973 72,006 84,184 408,362 317,643 384,074 114,966 53,749 66,545 75,188
Total governmental activities program revenues 2,696,495 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
Business-type activities
Charges for services
Water and sewer 3,423,342 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
Total business-type activities program revenues 3,423,342 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
Total primary government program revenues 6,119,837$ 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$
Net (expense) revenue
Governmental activities (4,618,811)$ (5,294,891)$ (5,237,461)$ (5,264,518)$ (5,093,875)$ (5,047,751)$ (5,455,430)$ (5,350,541)$ (6,006,821)$ (5,602,634)$
Business-type activities (429,465) (486,719) (178,958) (109,631) 333,756 201,365 (171,926) (191,980) (290,491) (330,808)
Total primary government net expense (5,048,276)$ (5,781,610)$ (5,416,419)$ (5,374,149)$ (4,760,119)$ (4,846,386)$ (5,627,356)$ (5,542,521)$ (6,297,312)$ (5,933,442)$
TOWN OF VINTON, VIRGINIA
CHANGE IN NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
75
TABLE 2
(Continued)
2020 2019 1 2018 2017 2016 2015 2014 2013 2012 2011
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 749,564$ 726,573$ 684,319$ 697,622$ 640,391$ 539,764$ 448,349$ 453,135$ 510,558$ 429,409$
Sales tax 1,153,748 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
Meals tax 1,289,457 1,078,908 966,053 953,721 955,488 912,713 900,591 912,226 909,814 864,448
Utilities tax 718,109 735,791 756,225 755,985 767,736 782,869 787,097 785,555 782,487 801,264
Business license tax 638,888 586,739 482,003 500,713 508,747 489,749 517,111 491,996 460,638 454,636
Other taxes 1,033,340 667,667 616,344 585,378 576,896 561,080 628,177 692,669 698,412 734,316
Intergovernmental revenue not restricted 134,486 812,923 770,645 773,690 744,247 768,956 756,199 807,117 773,617 748,815
Restricted intergovernmental revenue 383,932 - - - - - - - - -
Investment earnings not restricted 42,406 50,854 25,780 19,406 17,709 15,438 14,540 4,434 3,020 1,904
Restricted investment earnings 3 - - - - 60,746 59,628 - - -
Gain on disposal of property - 16,580 - - - 7,444 6,516 - - -
Other 37,669 69,900 57,781 66,305 106,706 27,002 21,752 41,418 184,846 81,373
Transfers (181,628) (171,912) (140,298) (219,978) - - - - 500,000 -
Total governmental activities 5,999,974 6,043,716 5,589,442 5,569,167 5,666,376 5,486,461 5,427,397 5,473,005 6,070,958 5,287,755
Business-type activities:
Investment earnings not restricted 8,271 9,009 7,627 2,172 989 - 7 66 414 1,174
Restricted investment earnings - - 525 94 329 1,353 5,301 762 91 427
Other 371,278 379,813 299,102 338,118 279,661 250,562 255,135 261,934 287,359 275,208
Transfers 181,628 171,912 140,298 219,978 - - - - (500,000) -
Total business-type activities 561,177 560,734 447,552 560,362 280,979 251,915 260,443 262,762 (212,136) 276,809
Total primary government 6,561,151$ 6,604,450$ 6,036,994$ 6,129,529$ 5,947,355$ 5,738,376$ 5,687,840$ 5,735,767$ 5,858,822$ 5,564,564$
Changes in Net Position
Governmental activities 1,381,163$ 748,825$ 351,981$ 304,649$ 572,501$ 438,710$ (28,033)$ 122,464$ 64,137$ (314,879)$
Business-type activities 131,712 74,015 268,594 450,731 614,735 453,280 88,517 70,782 (502,627) (53,999)
Total primary government 1,512,875$ 822,840$ 620,575$ 755,380$ 1,187,236$ 891,990$ 60,484$ 193,246$ (438,490)$ (368,878)$
Note: Water and sewer charges for service is the Town’s most significant source of own-source revenue.
1 Restated
76
TABLE 3
2020 2019 1 2018 2017 2016 2015 2014 2013 2012 2011
Post-GASB 54 implementation:
General Fund
Nonspendable 655,751$ 323,947$ 103,927$ 89,382$ 62,048$ 59,817$ 60,358$ 19,101$ 62,746$ 66,341$
Restricted 74,711 180,691 206,673 132,387 209,649 235,246 190,161 274,908 17,068 372,271
Committed 30,000 30,000 30,000 - - - - - - 100,000
Assigned 3,583 38,621 - - - - - - - -
Unassigned 3,668,974 2,945,887 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 4,433,019$3,519,146$3,222,506$2,799,962$2,879,221$2,656,499$3,170,176$3,131,811$2,664,761$1,735,401$
Capital Projects Fund
Note:
1 Restated
TOWN OF VINTON, VIRGINIA
FUND BALANCES – GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(modified accrual basis of accounting)
77
TABLE 4
2020 2019 1 2018 2017 2016 2015 2014 2013 2012 2011
Revenues
Taxes 5,606,084$ 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$
Permits, privilege fees, and regulatory licenses 4,592 6,408 8,955 8,712 9,788 12,403 9,085 10,861 9,273 10,242
Fines and forfeitures 54,486 60,652 71,210 75,085 51,631 56,503 75,059 73,107 75,989 102,566
Revenue from use of money and property 159,655 169,995 148,433 136,695 141,889 197,241 198,625 105,998 105,666 118,560
Charges for services 115,380 382,806 377,369 418,042 452,903 438,558 407,900 387,049 333,832 355,606
Other 134,151 136,351 137,547 150,967 138,589 129,124 149,957 72,337 18,522 16,860
Intergovernmental 2,826,727 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
Total revenues 8,901,075 8,484,545 8,057,037 8,660,224 8,252,351 7,715,272 7,646,379 7,487,226 7,376,521 7,374,724
Expenditures
General government 835,575 711,058 695,683 650,824 710,412 668,082 645,071 632,136 618,951 628,386
Public safety 2,821,897 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
Public works 1,377,264 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
Parks, recreation, and cultural 457,443 515,693 533,892 570,065 594,550 617,934 620,636 547,604 518,579 551,240
Community development 871,782 458,435 485,624 889,397 687,006 604,476 468,678 386,592 544,245 333,617
Capital projects 533,151 948,721 37,880 463,945 437,389 551,936 140,478 542,235 160,752 114,309
Debt service:
Principal retirement 446,651 414,532 436,700 535,374 404,038 379,843 372,923 335,766 267,595 260,501
Interest and fiscal charges 64,540 77,568 83,210 91,789 115,486 182,584 186,377 174,699 185,715 195,608
Bond issuance costs - - - - 15,920 - - 36,638 - -
Total expenditures 7,408,303 8,189,626 7,751,797 8,599,935 8,211,685 8,236,393 7,431,298 7,554,243 7,078,112 7,324,632
Excess (deficiency) of revenues over
expenditures 1,492,772 294,919 305,240 60,289 40,666 (521,121) 215,081 (67,017) 298,409 50,092
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
Transfers in (out)(181,628) (171,912) (140,298) (219,978) - - - - 500,000 -
Total other financing sources (181,628) 1,721 117,304 (139,548) 182,056 7,444 6,516 534,067 630,951 2,124
Net change in fund balances 1,311,144$ 296,640$ 422,544$ (79,259)$ 222,722$ (513,677)$ 221,597$ 467,050$ 929,360$ 52,216$
Debt service as a percentage of
1 Restated
TOWN OF VINTON, VIRGINIA
CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(modified accrual basis of accounting)
78
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
2020 508,108,700$ 52,015,192$7,308,830$ 18,865,440$26,500$ 586,324,662$0.07$ 586,324,662$ 100%
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
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
79
TABLE 6
Customer Revenue Rank Revenue Rank
Precision Fabrics Group, Inc.205,313$ 1 5.44 %227,256$ 1 7.99 %
Aramark 161,798 2 4.28 90,716 2 3.19
The Berkshire 76,658 3 2.03 55,072 4 1.94
Roanoke County Schools 63,838 4 1.69 28,009 8 0.98
Blue Ridge Manor Apartments 54,209 5 1.44 38,333 5 1.35
Colonial Downs 33,872 6 0.90 - - -
RGM Properties 29,195 7 0.77 37,535 6 1.32
Nichols Car Wash 27,840 8 0.74 - - -
Richard Dickerson/RL Mansard Sq 23,034 9 0.61 17,794 - 0.63
F & W Management 22,779 10 0.60 - - -
698,536$ 494,715$
Source: Town of Vinton Finance Department
1) FY 2020 % was based on total water and sewer revenue of $3,794,620
2) FY 2011 % was based on total water and sewer revenue of $2,844,004
Percentage
of Total Town
Revenue
Fiscal Year 2011
Percentage
of Total Town
Revenue
TOWN OF VINTON, VIRGINIA
PRINCIPAL WATER AND SEWER CUSTOMERS
Current Year and Nine Years Ago
Fiscal Year 2020
80
TABLE 7
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30,Fiscal Year Amount of Levy Years Amount of Levy
2020 948,341$ 875,175$ 92.28%-$ 875,175$ 92.28%
2019 936,327 842,667 90.00 21,006 863,673 92.24
2018 874,622 823,616 94.17 14,960 838,576 95.88
2017 859,822 826,673 96.14 20,321 846,994 98.51
2016 853,737 785,340 91.99 13,902 799,242 93.62
2015 736,979 650,501 88.27 13,365 663,866 90.08
2014 645,360 610,294 94.57 12,010 622,304 96.43
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
Source: Detailed Town property tax records.
Note: The Town increased the real estate tax rate from $0.03 to $0.07 in 2015
TOWN OF VINTON, VIRGINIA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Total Collections to Date
Collected within the
Fiscal Year of the Levy
81
TABLE 8
Fiscal
Year Water Sewer Water Sewer
20203 11.88$ 20.52$ 5.94$ 10.26$
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
Note: Minimum charge for water and sewer residential and commercial 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
3 As of January 1, 2020, all consumption is billed at the volumetric rate.
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
82
TABLE 9
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Debt limit 58,632,466$ 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$
Total net debt applicable to limit 5,080,683 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
Legal debt margin 53,551,783$ 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$
Total net debt applicable to the limit
as a percentage of debt limit 8.67%10.17%11.66%13.20%14.58%15.80%17.18%19.53%13.39%13.27%
Legal Debt Margin Calculation for Fiscal Year 2020
586,324,662$
Debt limit (10% of assessed value)58,632,466$
Less debt applicable to limit:
General obligation bonds 5,080,683
Legal debt margin 53,551,783$
Note:
TOWN OF VINTON, VIRGINIA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Assessed value
83
TABLE 10
General General
Fiscal Obligation Revenue Capital Obligations Obligation Revenue Obligations Capital
Year 1 1 1 1
2020 2,000,040$ -$ 296,746$ 75,352$ 2,372,138$ 3,095,449$ 1,513,000$ 221,589$ 558,344$ 5,388,382$
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
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
2020 5,095,489$ 586,324,662$ 0.87%8,104 629$ 52,248$ 1.20%
2019 5,782,319 566,792,941 1.02 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
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
84
TABLE 11
Less:Net
Fiscal Gross Operating Available
Year Revenue (1)Revenue Principal (2)Interest Coverage
2020 3,802,891$ 2,545,966$ 1,256,925$ 623,670$ 149,189$ 1.63
2019 (3)3,775,230 2,495,711 1,279,519 591,312 178,562 1.66
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
(3) Restated
TOWN OF VINTON, VIRGINIA
Debt Service
Notes: Details regarding the Town’s outstanding debt can be found in the Notes to Financial Statements.
(1) Excluding depreciation, interest, and amortization
(2) Excluding refunded principal payments
Last Ten Fiscal Years
PLEDGED REVENUE COVERAGE
85
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)
2020 8,104 6,254,966$ 52,248$ 13,999 948 8.10%
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
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
86
TABLE 13
Percentage Percentage
of Total Town of Total Town
Employer Employees Rank Employment Employees Rank Employment
Berkshire 215 1 2.65%167 2 5.44%
Precision Fabrics Group, Inc.205 2 2.53 382 1 6.23
Kroger 185 3 2.28 179 3 5.00
Roanoke County Schools (Vinton)131 4 1.62 124 4 3.46
Rosie’s Gaming Emporium 98 5 1.21 - --
Aramark Uniform Services 97 6 1.20 70 7 1.95
Penalty Box (Lancerlot)89 7 1.10 54 9 1.51
McDonalds 85 8 1.05 90 5 2.51
Magnets USA 68 9 0.84 - --
Town of Vinton 65 10 0.80 85 6 2.37
1,238 15.28%1,151 29.17%
Source: Employer Business Application or HR Contact
Fiscal Year 2020 Fiscal Year 2011
TOWN OF VINTON, VIRGINIA
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
87
TABLE 14
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Function/Program
General government
Management services 4 4 4 4 4 4 4 4 4 4
Finance 5 5 5 5 5 6 6 6 6 5
Planning 3 3 2 3 3 3 3 3 3 3
Police
Officers 22 23 23 24 22 22 24 24 24 25
Civilians 2 2 2 2 2 2 2 2 2 2
Fire
Firefighters and officers -11 11 12 10 11 10 9 9 9
Other public works 26 30 34 33 29 31 32 32 32 34
Parks, recreation, and cultural 3 3 3 3 3 2 3 3 3 3
Total 65 81 84 86 78 81 84 83 83 85
Note: As of July 1, 2019, all firefighters and emergency responders are employees of Roanoke County.
TOWN OF VINTON, VIRGINIA
FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Source: Town of Vinton HR Department
88
TABLE 15
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Function/Program
General government
Fleet equipment 133 133 133 133 133 133 133 117 117 117
Pieces of equipment maintained 133 133 133 133 133 133 133 117 117 117
Public safety:
Police
Arrests 781 947 1,034 594 722 507 578 582 667 546
Parking violations 45 30 40 58 133 52 64 48 56 82
Traffic violations 1928 1,735 2,449 2,021 1,187 1,143 1,603 1,408 1,734 1,933
EMS
Emergency responses N/A 2,248 2,607 2,637 2,656 2,615 2,735 2,654 2,872 2,319
Fire
Emergency responses N/A 305 830 501 774 278 623 306 677 514
Public works
Refuse collection
Refuse collected (tons per day)12.88 12.39 11.80 12.21 11.92 12.55 12.78 12.92 12.75 12.70
Recyclables collected (tons per day)0.3 0.35 0.45 1 0.54 0.65 0.70 0.68 2.00 2.00
Other public works
Street resurfacing (miles)3.33 2.71 2.50 2 2.03 - 1.30 2.17 1.80 1.80
Parks, recreation, and cultural
Parks and recreation - attendees
Vinton Dogwood Festival (4-day)Cancelled 20,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
4th of July Cancelled 4,000 5,000 5,000 5,000 5,000 5,000 4,000 4,000 4,000
(Co-Sponsor Chamber of Commerce)2,000 3,500 6,000 6,000 9,000 9,000 6,000 6,000 6,000 6,000
Water
Number of customer accounts 5,155 5,136 5,115 5,120 5,093 5,074 5,085 5,071 5,051 5,044
Miles of distribution lines 61 61 61 61 61 61 61 61 61 61
Volume pumped (million gallons per day average)1.05 2 1 1 1.27 1.23 1.14 1.21 1.23 1.26
Sewer
Number of customer accounts 4,728 4,710 4,691 4,686 4,658 4,639 4,642 4,636 4,607 4,610
Miles of collection lines 60 60 60 60 60 60 60 60 60 60
Waste/Water treated (million gallons per day)1 1.02 1.32 1.32 1.40 1.19 0.92 0.96 0.99 1.09
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:
Note:
TOWN OF VINTON, VIRGINIA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
89
TABLE 16
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Function/Program
Public safety
Law enforcement vehicles 26 24 27 27 25 26 25 25 26 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 505 505 505 505 503 502 500 500 500 500
Parks, recreation, and cultural
Community centers
Vinton Senior Program (No. of Events/Attendance) 428/6330 428/6283 356/5822 285/4370 252/4166 240/3990 223/3,965 253/3775 231/4033 174/3396
Charles R. Hill Center (Rentals)292 298 303 316 283 291 289 437 299 218
Vinton War Memorial 258 240 250 276 273 235 282 301 200 202
Parks/athletic fields
Greenway (3/4 Mile) Cinder Surface 30,000 30,000 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 N/A 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 Closed 7,977 7,977 8,458 10,562 10,176 12,246
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
90
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91
COMPLIANCE SECTION
92
Your Success is Our Focus
319 McClanahan Street, S.W. • Roanoke, Virginia 24014-7705 • 540-345-0936 • Fax: 540-342-6181 • www.BEcpas.com
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
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, 2020, 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 3, 2020.
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) as a basis for designing 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 2020-001.
93
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 one instance of noncompliance that is required to be reported under
Government Auditing Standards, which is described in the accompanying schedule of findings and
responses, as item 2020-002.
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 findings and responses. 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 3, 2020
94
TOWN OF VINTON, VIRGINIA
SUMMARY OF COMPLIANCE MATTERS
June 30, 2020
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
95
TOWN OF VINTON, VIRGINIA
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2020
A.FINDING –FINANCIAL STATEMENT AUDIT
2020-001: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
2020-001:General Government Budget Appropriation
Condition:
Public safety expenditures exceeded budget appropriations.
Criteria:
The Town is required to keep expenditures within budgeted amounts.
Cause:
Public Safety budget was overspent due to timing of grant payments on the Fire Programs Grant
and the BulletProof Vest Grant.
Effect:
Actual expenditures for public safety exceeded amounts approved by Town Council.
Recommendation:
Steps be taken to ensure that excess expenditures over budgeted appropriations be approved by
Town Council and budget amended accordingly.
Management’s Response (Unaudited):
The Town Finance Department developed a Grant Procedure in 2018 and will begin working
closer with departments to ensure that budget adoption are processed upon grant
award/acceptance and that correct grant procedures are followed to avoid future budget
variances.
96
TOWN OF VINTON, VIRGINIA
SCHEDULE OF PRIOR AUDIT FINDING
Year Ended June 30, 2020
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
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.