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HomeMy WebLinkAboutFY 2010 - 2011 - Annual Comprehensive Financial Reports (ACFRs) Comprehensive Annual Financial Report For Fiscal Year Ending June 30, 2011 TOWN OF VINTON, VIRGINIA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2011 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 Assets ......................................................................................................12 Exhibit 2 Statement of Activities ........................................................................................................ 13 Fund Financial Statements Exhibit 3 Balance Sheet –Governmental Fund ................................................................................. 14 Exhibit 4 Reconciliation of the Governmental Fund Balance Sheet to the Statement of Net Assets ........................................................................................ 15 Exhibit 5 Statement of Revenues, Expenditures, and Changes in Fund Balances –Governmental Fund ............................................................................. 16 Exhibit 6 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Fund to the Statement of Activities................. 17 Exhibit 7 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual –General Fund................................................................................. 18 Exhibit 8 Statement of Net Assets –Proprietary Fund ...................................................................... 19 Exhibit 9 Statement of Revenues, Expenses, and Changes in Fund Net Assets –Proprietary Fund ........................................................................................ 20 Exhibit 10 Statement of Cash Flows –Proprietary Fund..................................................................... 21 Notes to Financial Statements .................................................................................................................... 22 Required Supplementary Information Exhibit 11 Analysis of Funding Progress for Defined Benefit Pension Plan ......................................49 Exhibit 12 Analysis of Funding Progress for Other Post-Employment Benefits ................................ 50 TOWN OF VINTON, VIRGINIA TABLE OF CONTENTS (Continued) Page STATISTICAL SECTION Table 1 Net Assets by Component ......................................................................................................... 52 Table 2 Change in Net Assets by Component ........................................................................................ 53 Table 3 Fund Balances –Governmental Fund ....................................................................................... 55 Table 4 Changes in Fund Balances –Governmental Fund .................................................................... 56 Table 5 Assessed Value and Actual Value of Taxable Property ...........................................................57 Table 6 Principal Water and Sewer Customers ...................................................................................... 58 Table 7 Property Tax Levies and Collections ........................................................................................ 59 Table 8 Water and Sewer Rates .............................................................................................................. 60 Table 9 Legal Debt Margin Information ................................................................................................ 61 Table 10 Ratios of Outstanding Debt by Type ......................................................................................... 62 Table 11 Pledged Revenue Coverage ....................................................................................................... 63 Table 12 Demographic Statistics .............................................................................................................. 64 Table 13 Principal Employers ................................................................................................................... 65 Table 14 Full-Time Equivalent Town Government Employees by Function/Program .......................... 66 Table 15 Operating Indicators by Function/Program ............................................................................... 67 Table 16 Capital Asset and Infrastructure Statistics by Function/Program ............................................. 68 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..................................................................................................... 70 Summary of Compliance Matters .................................................................................................................. 72 Schedule of Findings and Responses ............................................................................................................. 73 INTRODUCTORY SECTION i November 3, 2011 To the Honorable Mayor, Members of Town Council, and Citizens of the Town of Vinton, Virginia The Comprehensive Annual Financial Report (CAFR) for the Town of Vinton for the fiscal year ended June 30, 2011 is hereby submitted in accordance with Section 15.1-167 of the 1950 Code of Virginia, (1950 as amended). The Code requires that the Town issues an annual report on its financial accounts and records. In addition, the report must be audited. The report was prepared by the Treasurer’s Office and audited independently by the accounting firm of Brown, Edwards & Company, L.L.P. Responsibility for both the accuracy of the data and completeness and fairness of the presentation, including all disclosures, rests with the Town of Vinton. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the Town. All disclosures necessary to enable the reader to gain an understanding of the Town’s financial activities have been included. The Reporting Entity and Services Provided The financial reporting entity includes all of the funds of the primary government of the Town of Vinton, as legally defined. The reporting entity does not include legally separate entities (component units) for which a primary government is financially accountable because there are no such component units within the Town. The Town jointly operates the Roanoke Valley Resource Authority with Roanoke County and City of Roanoke. It is, however, a legally separate entity governed by a six-member multi-jurisdictional Board, one member of which represents the Town. The Town of Vinton provides a full range of municipal services. These services include police protection, fire and first aid services, refuse and recycling functions, general public improvements, street and right-of-way maintenance, recreational and cultural activities, and planning and zoning. The Town also provides potable water distribution, wastewater collection, maintenance and service of line, meters, and other components related to its utility system. Based on the latest Water Quality Report, the water system meets all state and federal requirements administered by the Office of Drinking Water under the Virginia Department of Health. According to the 2010 Water Quality Report,the Town had no water quality violations. The Town also received a third place award in the Water Taste Competition from the Virginia Rural Water Association in 2009. The Virginia Department of Environmental Quality in April 2011 reported statewide recycling rates for calendar year 2010. The Town of Vinton’s rate was 51.8% which ranked seventh out of 71 solid waste planning units in the Commonwealth. Barry W. Thompson Finance Director/Treasurer Town of Vinton 311 S. Pollard Street Vinton, VA 24179 Phone (540) 983-0608 Fax (540) 985-3105 ii Local Economic Condition and Outlook The Town of Vinton is located in the southern end of the Shenandoah Valley, in the southwestern region of Virginia. Vinton is a part of the Roanoke Metropolitan Statistical Area, which includes the Cities of Roanoke and Salem and Counties of Roanoke, Botetourt, and Craig. The Town is a compact, urban area of 3.2 square miles located within eastern Roanoke County and shares a common border with the City of Roanoke. It is approximately 170 miles west of Richmond, Virginia, the State capital. The Town is a major gateway to the recreational attractions of Smith Mountain Lake and the Blue Ridge Parkway. Approximately 78.8% of the total land within the Town is developed; 50.6% for residential use, 13.8% for commercial or industrial development (within the Town industrial park and at various other locations) and 14.4% for public facility development. Vinton is proud of its small size in relation to the surrounding dense urban areas. It has a reputation as a friendly community with much scenic charm and beauty, and is often the urban center of choice for residents in east Roanoke County and the surrounding population centers of Bedford, Botetourt, and Franklin counties. The location of the Town provides quick and easy access from neighboring jurisdictions via US Interstates 81 and 581, U.S.Routes 460 and 220, and Virginia Routes 24 and 634. This also provides an opportunity for citizens to be able to drive to a community college, two private colleges, and two public universities in less than one hour. The Town’s location also means that its economy is impacted by the economic conditions of its neighbors, and by decisions made by these larger neighboring jurisdictions. Since the Town of Vinton is highly concerned with providing a positive atmosphere and quality of life for its citizens, it has taken an active role in various regional authorities and activities. The Town participates in economic development by being a member of the Roanoke Regional Partnership and in a variety of Valley wide recreational events like the Virginia Commonwealth Games as well as in community relations by funding a portion of the annual operating costs of the Roanoke Valley Regional Cable Television. The Town also participates in the Greenway Commission, the purpose of which is to identify possible greenway locations in the Roanoke Valley area. In 1999, the Town chose to participate in the construction and maintenance of a Regional Fire Training Academy. Vinton has maintained stable property tax rates over the years, while continuing to provide high quality municipal services and responsive government. The Town Council adopted an ordinance to eliminate the vehicle decal and to enact a vehicle license fee effective January 1, 2008. This essentially was a revenue neutral action by Council. The nearby educational institutions allow opportunities for Town citizens to receive higher education and technical training. Expansion of industry, tourist facilities, and conference centers in the region continue to enhance the reputation of the Town as a highly desirable residential area. Long-term Financial Planning Christopher S. Lawrence was appointed as Town Manager in September 2008. Mr. Lawrence has strong leadership and management skills and has set goals toward community and economic development. The Town’s Management Team works closely with the Roanoke County Management Team to develop short-term and long-term financial goals addressing the financial stability of the Town/County endeavors. iii Long-term Financial Planning (Continued) The Town Council approved a balanced budget for the upcoming fiscal year. The budget provides for maintaining the existing levels of services provided to the Town’s citizens while increasing an effort on economic development through revitalizing the downtown business area. These efforts include partnering with the Virginia Department of Housing and Community Development whereby funding may be provided for a downtown economic restructuring plan as well as a physical improvement master plan. The Town was also awarded by the Virginia Department of Housing and Community Development (VA DHCD), a Business District Revitalization Planning Grant in the amount of $35,000. The grant enabled the Town to hire consultants to complete the Downtown Revitalization and Economic Restructuring Plans. The project involved citizens in a participatory planning process from May 2009 through September 2010. A series of meeting and surveys were held to identify community assets and opportunities in downtown Vinton. These identified economic and physical needs will be used to compile the Downtown Revitalization and Economic Restructuring Plans for Vinton and will be submitted for future VA DHCD Community Improvement Grant applications for funding. The budget maintains the Cigarette Tax, which was passed two years ago at $0.20 per pack of cigarettes. This revenue generated an additional $325,000. Another economic benefit for the Town is the result of the marketing and branding efforts of the newly completed War Memorial Conference Center. The Town should continue to realize increased revenue from the use of this facility. It is a premier conference facility. It has a main ballroom with a seating capacity of 240 to 300 depending on the room configuration which can be converted into two rooms. There is also a smaller meeting room known as the Library on the main floor and another two smaller meeting rooms on the second floor. The facility has a modern sound system, projectors and screens, and wireless Internet. The facility is now fully ADA compliant and all floors are served by an elevator. As a part of this project,the Jaycee Ball field near the War Memorial Complex was relocated to the Vineyard Park in order to continue providing the Vinton community an adequate ball field facility. This project is in cooperation with Roanoke County through its Parks and Recreation Program in order to provide a high level of service to our citizens. The Town continues to commit to the improvement of the highways, streets, and roads by including approximately $250,000 for paving and milling of streets throughout the Town. Major Initiatives The Vinton Business Center is open for business. Cardinal Glass Industries of Minnesota is the first company located in the Vinton Business Center. It has completed its 222,000 square-foot building at an investment of approximately $23.9 million. Currently, it is fully staffed. There are two additional prepared sites at the Vinton Business Center which are being marketed. A picnic shelter has been completed while the Greenway Trail is planned to eventually connect with the existing Greenway System running through the Town of Vinton and east Roanoke County. A business center sign has been constructed to better identify the Vinton Business Center. This was jointly constructed by the Town of Vinton and Roanoke County at a cost of $36,874. In November 2003, the citizens of Vinton voted to allow operation of an off-track betting facility within the Town limits. Colonial Downs was constructed and began operations in October 2004 which has brought approximately $30,000 of tax revenue to the Town. iv Major Initiatives (Continued) The Roanoke County Commonwealth Attorney’s Office continues to represent the Town’s interests in the prosecution of criminal charges. Attorney Elizabeth Dillon was re-appointed by the Town Council on July 1, 2010 to serve as counsel for the Town’s other legal matters. The Town evaluated its wastewater collection and water distribution system and as a result identified four (4) projects as vital to improve and update its safe and reliable operations. In January 2008, the Town issued bonds through VML-VACo amounting to $2,750,000 to fund these projects. The bonds were issued to fund the water and wastewater improvement projects and are secured by pledges from the water and sewer revenues from the current utility system. The remaining project to be completed is as follows: Glade Creek/Tinker Creek Wastewater Trunk Line will replace 750 foot segment of 18-inch wastewater trunk line and install new manholes along new alignment. The new alignment will locate replacement line away from creek within existing right-of-way. The segment of existing line to be replaced is in severely deteriorated condition and needs to be replaced immediately. The Town continues to update with the County of Roanoke the Real Estate Tax and Appraisal and Personal Property Tax Software and billing has been successfully implemented. Roanoke County/Town of Vinton also has implemented and continues to update an Appraisal System. DMV imports have been automated and set-off debts have been automated and have improved delinquent collections. The Town is currently implementing an agreement with ACS Enterprise, Inc. for Application Hosting and Technology Support Systems and Services for the Financial Applications which will provide the Town with Technical Support, continuous software updating on the financial applications, and a disaster recovery plan in the event of some unforeseen emergency. This project should be complete in December 2011. Prospects for the Future Comprehensive Plan –The twenty-year Comprehensive Plan for the Town’s economic and community development was adopted in September 2004. This plan which serves as the blue print for the Town’s direction regarding land use, capital development, and economic progress is continuously being reviewed and updated, as needed. Façade Improvement Program –The Façade Improvement program was envisioned from recommendations during the Vinton Comprehensive Planning process, which was adopted by Town Council in 2004. The Program provides financial assistance to small businesses, within an identified Downtown area, that wish to improve their property. The grants available under this program range from $500 to $5,000. The program provides a 50% reimbursement of qualified expenses, which include façade and other general property improvements undertaken in accordance with the established design guidelines for exterior improvements only and address architecture, signage, landscaping, walls, lighting, veneers,and awnings. Ten buildings in downtown Vinton have been updated using the façade grant program. Vinton Area Corridors Plan –The Vinton Area Corridors Plan’s purpose is to provide data and information for the Town of Vinton, Roanoke County, and the Virginia Department of Transportation (VDOT) to use in land use and transportation planning. The Town, with a population approaching 8,000 and a land mass slightly larger than 3 square miles is a diversifying urban area striving to sustain its distinctive small-town charm within the greater Roanoke Valley. The study area is comprised of 7.5 miles of corridors that traverse through the Town of Vinton and eastern Roanoke County. The Plan contains a number of implementation strategies that are to be completed over the next 20 years and are grouped by project names, timeframes, and responsible parties. v Accounting System and Budgetary Controls The Town’s accounting records for governmental fund type operations are maintained on a modified accrual basis with revenues being recorded when available and measurable, and expenditures being recorded when services or goods are received and fund liabilities are incurred. Accounting records for proprietary fund types are maintained on the accrual basis with revenues and expenses being recorded when earned or incurred. In developing or modifying the Town’s accounting system, consideration is given to the adequacy of internal controls. Internal controls are designed to provide reasonable, but not absolute, assurance regarding: (a) the safeguarding of assets against loss from unauthorized use or disposition, and (b) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (a) the cost of a control should not exceed the benefits likely to be derived, and (b) the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. The Town’s internal controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Budgetary control is maintained at the department or function level by the adoption of an annual, accrual plus encumbrances basis budget for both the General and Enterprise Funds. The budgetary controls are designed to ensure compliance with legal restrictions on expenditures as established by the Town Council. Only the Council can revise appropriations. Year-end outstanding encumbrances are reported as a reserve of fund balance and re-appropriated in the subsequent year. Cash Management The Town uses a pooled cash concept to allow greater investment flexibility and consequently a better return on investments. Cash from all funds is pooled for investment purposes in the Commonwealth of Virginia’s Local Government Investment Pool. The Town’s checking account is an interest bearing public fund demand deposit account earning interest rates tied to the 90-day US T-Bill. Risk Management The Town’s various property and liability insurance coverage is provided by Virginia Municipal League Insurance Programs. The annual insurance costs are allocated to specific departments and funds based on assigned equipment, number of personnel, building usage, and other equitable cost estimates. vii viii TOWN OF VINTON, VIRGINIA DIRECTORY OF PRINCIPAL OFFICIALS June 30, 2011 TOWN COUNCIL Bradley E. Grose, Mayor Robert R. Altice Carolyn D. Fidler William S. Nance Matthew S. Hare APPOINTED OFFICIALS Christopher S. Lawrence ........................................................Town Manager Barry W. Thompson ............................................Finance Director/Treasurer Susan Johnson ..............................................................................Town Clerk Herbert G. Cooley ...................................................................Chief of Police INDEPENDENT AUDITORS Brown, Edwards & Company, L.L.P. ix Citizens of Vinton Town Council Town Manager Town Attorney Police Department Administration Public Works Department Finance Department Planning and Zoning Department Special Programs Department War Memorial Department Operations Services Streets Property/Grounds Utilities Refuse/Recycling Fire/EMS Department Career Human Resources Volunteer Fire and First Aid Crew Assistant Town Manager Economic Development/Business Advocacy Town Clerk Town of Vinton Organization Chart FINANCIAL SECTION 1 Your Success is Our Focus 319 McClanahan Street, S.W. • P.O. Box 12388 • Roanoke, VA 24025-2388 • 540-345-0936 • Fax: 540-342-6181 • www.BEcpas.com INDEPENDENT AUDITOR’S REPORT Honorable Members of Town Council Town of Vinton, Virginia 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, as of and for the year ended June 30, 2011, which collectively comprise the Town’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Town’s management. Our responsibility is to express an opinion on these financial statements based on our audit. The prior year partial comparative information has been derived from the Town’s 2010 financial statements and, in our report dated September 30, 2010,we expressed unqualified opinions on the respective financial statements of the governmental activities, the business-type activities, and each major fund. 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our 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, 2011, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparison for the general fund for the year then ended, in conformity with accounting principles generally accepted in the United States of America. During 2011, the Town implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. In accordance with Government Auditing Standards, we have also issued our report dated November 3, 2011 on our consideration of the Town’s internal control over financial reporting and our tests of its compliance with certain provisions of laws,regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. 2 Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information, the Analysis of Funding Progress for Defined Benefit Pension Plan, and Analysis of Funding Progress for Other Postemployment Benefits 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. Our audit was conducted for the purpose of forming an opinion 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 section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. CERTIFIED PUBLIC ACCOUNTANTS Roanoke, Virginia November 3, 2011 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, 2011. 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 of the Town exceeded its liabilities at the close of the most recent fiscal year by $13,509,155 (net assets). Of this amount, $2,152,648 (unrestricted net assets) may be used to meet the Town’s ongoing obligations to citizens and creditors. The Town’s total net assets decreased by $368,878. This decrease is largely due to the total expenses of $10,695,736 being more than the total revenues of $10,326,858. This resulted in a drop of $48,943 (1.1%) in current and other assets. Additionally, capital assets decreased by $1,116,017 (4.8%) in capital assets with the final result being a drop of 4.2% in total assets. On the other hand, long-term liabilities decreased by $739,572 (6.0%) while other liabilities fell by $56,510 (3.8%), thus causing a favorable effect on the total net assets. The final result of all these effects is a 2.7% decrease in net assets. As of the close of the current fiscal year, the Town’s governmental fund reported an ending fund balance of $1,735,401, an increase of $52,216 in comparison with the prior year. This is largely due to an increase of $47,258 (1.6%) in total assets particularly due from other governmental units. In addition to this positive effect, total liabilities decreased by $4,958 (0.4%) in particular accrued payroll and related liabilities. Approximately 69.0% of the ending fund balance,$1,196,789 is available for spending at the Town’s discretion (unassigned fund balance), and represents 16.3% of the governmental fund’s expenditures. The Town’s total long-term liabilities decreased by $739,572 (5.70%) during the current fiscal year. This decrease is largely due to the regular payment on bonds and capital lease. 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 assets presents information on all of the Town’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets 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 assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result only in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the Town that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Town include general government, public safety, public works, community development, and parks,recreation, and cultural. The business-type activity of the Town is the water and sewer department. Fund Financial Statements –A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town can be divided into two categories: governmental funds and proprietary funds. Governmental Funds –Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources,as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget. Proprietary Funds –The Town maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Town uses an enterprise fund to account for its Water and Sewer Department. 5 Overview of the Financial Statements (Continued) Proprietary Funds (Continued)–Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water and Sewer Department. Notes to the Financial Statements –The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statement. Other Information –In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Town’s funding progress for the defined benefit pension plan. Government-wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the case of the Town, assets exceeded liabilities by $13,509,155 at the close of the most recent fiscal year. By far the largest portion of the Town’s net assets (84.0%) reflects its 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 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 Assets Governmental Business-Type Activities Activities Total 2011 2010 2011 2010 2011 2010 Current and other assets $3,187,166 $3,146,550 $1,323,424 $1,412,983 $4,510,590 $4,559,533 Capital assets 10,603,739 11,304,677 11,492,996 11,908,075 22,096,735 23,212,752 Total assets 13,790,905 14,451,227 12,816,420 13,321,058 26,607,325 27,772,285 Long-term liabilities 4,736,142 5,070,376 6,922,032 7,327,370 11,658,174 12,397,746 Other liabilities 1,226,398 1,237,607 213,598 258,899 1,439,996 1,496,506 Total liabilities 5,962,540 6,307,983 7,135,630 7,586,269 13,098,170 13,894,252 Net assets Invested in capital assets, net of related debt 6,316,937 6,760,474 5,019,517 5,437,639 11,336,454 12,198,113 Restricted 20,053 20,000 - - 20,053 20,000 Unrestricted 1,491,375 1,362,770 661,273 297,150 2,152,648 1,659,920 Total net assets $7,828,365 $8,143,244 $5,680,790 $5,734,789 $13,509,155 $13,878,033 Unrestricted net assets of $2,152,648 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 assets, 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 decreased the Town’s net assets by 314,879. The key elements of this decrease are a decrease in cigarette tax of $40,087 (11.6%), a reduction of transfers by $78,466 (100.0%),and a drop on operating grants and contributions by $48,577 (3.6%). 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 showed a major decrease due to not receiving VDOT revenue sharing which was a significant amount In the prior year. Investment earnings also showed a decline because of a very low interest rate coupled with the declining investments and bond proceeds. However, there was an increase in gain sharing revenue due to business growth in the area. The Town’s Changes in Net Assets Governmental Business-Type Activities Activities Total 2011 2010 2011 2010 2011 2010 Revenues Program revenues Charges for services $696,556 $708,263 $2,672,156 $2,439,634 $3,368,712 $3,147,897 Operating grants and contributions 1,318,394 1,366,971 - - 1,318,394 1,366,971 Capital grants and contributions 75,188 8,034 - - 75,188 8,034 General revenues Property taxes 429,409 419,401 - - 429,409 419,401 Other taxes 4,026,254 3,971,094 - - 4,026,254 3,971,094 Intergovernmental unrestricted 748,815 664,975 - - 748,815 664,975 Investment earnings 1,904 3,187 1,601 3,551 3,505 6,738 Other 81,373 29,275 275,208 298,591 356,581 327,866 Total revenues 7,377,893 7,171,200 2,948,965 2,741,776 10,326,858 9,912,976 Expenses General government 934,388 1,023,227 - - 934,388 1,023,227 Public safety 3,397,562 3,446,746 - - 3,397,562 3,446,746 Public works 2,243,111 2,457,832 - - 2,243,111 2,457,832 Parks,recreation, and cultural 583,569 617,778 - - 583,569 617,778 Community development 339,983 393,160 - - 339,983 393,160 Interest on long-term debt 194,159 203,787 - - 194,159 203,787 Water and sewer - - 3,002,964 3,238,927 3,002,964 3,238,927 Total expenses 7,692,772 8,142,530 3,002,964 3,238,927 10,695,736 11,381,457 Excess (deficiency) before transfers (314,879) (971,330)(53,999)(497,151) (368,878)(1,468,481) Transfers - 78,466 - (78,466)- - Change in net assets (314,879) (892,864)(53,999)(575,617) (368,878)(1,468,481) Net assets –July 1 8,143,244 9,036,108 5,734,789 6,310,406 13,878,033 15,346,514 Net assets –June 30 $7,828,365 $8,143,244 $5,680,790 $5,734,789 $13,509,155 $13,878,033 7 Government-wide Financial Analysis (Continued) Expenses and Program Revenues –Governmental Activities - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 General Government Public Safety Public Works Parks, Recreation, & Cultural Community Development Interest on Long-Term Debt Total Expenses Program Revenues Revenues by Source –Governmental Activities Business-type activities –Business-type activities decreased the Town’s net assets by $53,999. This decrease is largely due to the decrease in other revenue by $23,383 (7.8%). There were no capital grants and contributions received this fiscal year. This unfavorable effect was partially offset by an increase in charges for services of $232,522 (9.5%), a reduction of transfers out of $78,466 (100.0%), and a decrease in expenses of $235,963 (7.3%). 8 Financial Analysis of the Government’s Funds As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds –The focus of the Town’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Town’s governmental fund reported combined ending fund balances of $1,735,401, an increase of $52,216 in comparison with the prior year. This is largely due to an increase in total of assets totaling $47,258 (1.6%) particularly an increase by due from other governmental units by $39,689 (11.4%), and an increase in prepaid items by $9,605 (17.1%). In addition to this favorable effect, accrued payroll and related liabilities decreased by $56,372 (26.0%) but was partially counteracted by an increase in accounts payable and accrued liabilities of $56,171 (18.6%). 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 assets of the Water and Sewer Department at the end of the year amounted to $661,273. 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 $65,443 primarily due to an increase on Categorical Aid by $67,028,or 6.03%. Differences between the original budget and the final amended budget for expenditures were $207,673. These differences are primarily due to minimal increases on expenses for general government administration; public safety; parks, recreation, and cultural; and community development. There were multiple significant variances between the final budget and the actual final results for the year. They can be briefly summarized as follows: Some revenue forecasts in the governmental fund were not significantly realized. Current personal property tax collection was 77.57% of the budget due to budgeting too high and collections being lower on current property taxes while tax on public utilities was budgeted too high. Interest from investments had a variance of 84% due to very low interest rate on investments. Other income expectations were significantly met. These are the revenues on recoveries and rebates $41,658,or 145%, other police grants $63,129,or 123%, ATF recoveries $5,870,or 100%. No CDBG grant was received during the fiscal year. However, there were unfavorable variances on revenue raised on cigarette tax (6.0%) and wireless 911 grant (75%) which could not be precisely predicted since the E-911 center merged with Roanoke County. On the other hand, there were also favorable variances on certain expenses. Some maintenance service contracts were discontinued as a result of the merger of the E911 Communication System with Roanoke County thereby using only 36% of the budget. Additionally, 25% of the wireless E-911 expense budgeted was not used due to the merger with Roanoke County Emergency Communication Services. Also, much of the items for the criminal justice system improvement were acquired during the fiscal year causing a significant variance over the budget. A favorable variance resulted from the delay in the completion of the web cad project in the Police Department due to the change in the record program. However, this project was completed almost two months after the end of the fiscal year. 9 General Fund Budgetary Highlights (Continued) Salaries and wages of personnel assigned in maintenance of highways, streets, and bridges are 9.08% above the budget because of the classification of expenses at the time actually recorded were different than budgeted. Significant variances in the enterprise fund are in the bulk water sale and interest from investments. Revenue realized from bulk water sale was 48% below the budget due to classification whereas interest earned from investment was dramatically short by 84% because of the very low interest rate. These negative variances were partially offset by a $20,000 planning grant received that was not budgeted. The numbers of accounts with significant favorable variances in the enterprise fund are more than the unfavorable ones. Water purchased for resale was below the budget by 22% due to the corresponding decrease in the bulk water sale. Expenditures which can be held off without affecting services and operations cause positive variances on contractual services (63%), and maintenance and repair of buildings (30%). Wastewater treatment cost was 21% favorably below the budget because the projection was based on higher treatment cost which turned out to be relatively the same as last year. The favorable variance in the salaries and wage category in sewer was offset by the unfavorable salaries and wage category in water due to different actual cost allocation for expenditures than the budget. The favorable variance of 20% in electrical services is primarily due to rebate of previous rate increase during the year. Pump houses and pumps had to be repaired thus overshooting the budget. Some necessary repairs had to be done in the wastewater system maintenance thus exceeding the allocation by 65%. 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, 2011, amounts to $22,096,735 (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 4.81% (a 6.20% decrease for governmental activities and a 3.49% 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) Governmental Business-Type Activities Activities Total 2011 2010 2011 2010 2011 2010 Land $1,706,089 $1,706,092 $80,752 $80,752 $1,786,841 $1,786,844 Buildings and systems 6,392,462 6,634,029 8,072,486 7,798,074 14,464,948 14,432,103 Infrastructure 1,717,120 1,809,274 - - 1,717,120 1,809,274 Improvements other than buildings - - 2,918,026 3,048,142 2,918,026 3,048,142 Machinery and equipment 701,026 1,066,393 288,813 338,752 989,839 1,405,145 Construction in progress 87,042 88,889 132,919 642,355 219,961 731,244 Total $10,603,739 $11,304,677 $11,492,996 $11,908,075 $22,096,735 $23,212,752 10 Capital Asset and Debt Administration (Continued) Long-term debt –At the end of the current fiscal year, the Town had total debt outstanding of $11,141,403. Of this amount, $7,103,808 comprises debt backed by the full faith and credit of the government, $3,990,000 is related to revenue bond obligations, and $47,595 is related to capital lease obligations. The Town’s Outstanding Debt General Obligation and Capital Leases Governmental Business-Type Activities Activities Total 2011 2010 2011 2010 2011 2010 General obligation bonds $2,845,000 $2,990,000 $4,258,808 $4,558,025 $7,103,808 $7,548,025 Revenue bonds 1,435,000 1,505,000 2,555,000 2,655,000 3,990,000 4,160,000 Capital leases 47,595 93,095 - - 47,595 93,095 $4,327,595 $4,588,095 $6,813,808 $7,213,025 $11,141,403 $11,801,120 The Town’s total debt decreased by $659,717,or 5.59% during the fiscal year. This decrease is largely due to the principal payments on general obligation and revenue bonds amounting to $444,208, or 67.33% and $170,000,or 25.77% respectively. The payment of $45,501,or 6.90% on capital lease also lowered the total debt. Additional information on the Town’s long-term debt can be found in Note 6 of this report. Economic Factors and Next Year’s Budgets and Rates During the current year, the Town took measures to mitigate the impact of the economic downturn. Departments were also asked to delay small capital expenditures and to monitor operating expenditures for the remainder of the fiscal year. The unemployment rate for Roanoke County (no statistics are available for the Town individually) as of June 30, 2011 is 5.7%, which is lower than last year’s rate of 6.3%. This compares favorably to the state’s average unemployment rate as of June 30, 2011 of 6.0% percent and to the national average rate of 9.2%. The occupancy rate of the Town’s central business district has remained at 90% for the past five years. Inflationary trends in the region compare favorably to national indices. During the current fiscal year, the unreserved fund balance in the general fund increased by $52,216. The general fund remains strong with an increase in ending fund balance of $1,735,401. It is intended that this available fund balance will be used for future needs of the Town. Requests for Information This financial report is designed to provide a general overview of the Town’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Department/Treasurer’s Office, Town of Vinton, 311 S. Pollard Street, Vinton, Virginia 24179. 11 BASIC FINANCIAL STATEMENTS EXHIBIT 1 Governmental Business-type (For Comparison Only) Activities Activities 2011 2010 ASSETS Cash and cash equivalents (Note 2)2,302,531$ 310,112$ 2,612,643$ 2,371,712$ Receivables, net (Note 3)314,130 566,657 880,787 792,686 387,406 - 387,406 347,717 Inventories 505 31,589 32,094 36,028 Prepaid expenses 65,836 14,211 80,047 72,522 Bond issue costs, net 94,618 70,777 165,395 176,367 Restricted assets: Cash and cash equivalents (Note 2)22,140 330,078 352,218 762,501 Capital assets: (Note 5) Nondepreciable 1,793,131 213,671 2,006,802 2,518,088 Depreciable, net 8,810,608 11,279,325 20,089,933 20,694,664 Total assets 13,790,905 12,816,420 26,607,325 27,772,285 LIABILITIES Accounts payable and accrued liabilities 358,058 113,777 471,835 420,838 Accrued payroll and related liabilities 160,363 8,242 168,605 260,977 Accrued interest payable 68,856 91,579 160,435 169,111 Unearned revenue (Note 3)639,121 - 639,121 645,580 Long-term liabilities: (Note 6) Due within one year 353,248 430,936 784,184 780,796 Due in more than one year 4,382,894 6,491,096 10,873,990 11,616,950 Total liabilities 5,962,540 7,135,630 13,098,170 13,894,252 NET ASSETS 6,316,937 5,019,517 11,336,454 12,198,113 Restricted for: Flower fund 20,053 - 20,053 20,000 Unrestricted 1,491,375 661,273 2,152,648 1,659,920 Total net assets 7,828,365$ 5,680,790$ 13,509,155$ 13,878,033$ Invested in capital assets, net of related debt Due from other governmental units (Note 4) Totals TOWN OF VINTON, VIRGINIA STATEMENT OF NET ASSETS June 30, 2011 The Notes to Financial Statements are an integral part of this statement. 12 EX H I B I T 2 Ch a r g e s f o r Op e r a t i n g Gr a n t s a n d Ca p i t a l G r a n t s an d Go v e r n m e n t a l Bu s i n e s s - ty p e (F o r Co m p a r i s o n On l y ) Fu n c t i o n s / P r o g r a m s Ex p e n s e s Se r v i c e s Co n t r i b u t i o n s C o n t r i b u t i o n s Ac t i v i t i e s A c t i v i t i e s 20 1 1 20 1 0 Go v e r n m e n t a l a c t i v i t i e s 93 4 , 3 8 8 $ 11 6 , 6 5 6 $ - $ - $ (8 1 7 , 7 3 2 ) $ (8 1 7 , 7 3 2 ) $ (8 6 3 , 4 9 7 ) $ Pu b l i c s a f e t y 3, 3 9 7 , 5 6 2 11 9 , 8 7 0 33 8 , 9 9 2 2, 2 2 5 (2 , 9 3 6 , 4 7 5 ) (2 , 9 3 6 , 4 7 5 ) (2 , 9 2 6 , 5 2 9 ) Pu b l i c w o r k s 2, 2 4 3 , 1 1 1 11 0 , 3 8 0 97 9 , 4 0 2 35 , 7 6 3 (1 , 1 1 7 , 5 6 6 ) (1 , 1 1 7 , 5 6 6 ) (1 , 4 0 2 , 7 1 6 ) Pa r k s , r e c r e a t i o n , a n d c u l t u r a l 58 3 , 5 6 9 34 5 , 0 4 0 - 2, 2 0 0 (2 3 6 , 3 2 9 ) (2 3 6 , 3 2 9 ) (2 8 8 , 1 8 8 ) Co m m u n i t y d e v e l o p m e n t 33 9 , 9 8 3 4, 6 1 0 - 35 , 0 0 0 (3 0 0 , 3 7 3 ) (3 0 0 , 3 7 3 ) (3 7 4 , 5 4 5 ) In t e r e s t o n l o n g - t e r m d e b t 19 4 , 1 5 9 - - - (1 9 4 , 1 5 9 ) (1 9 4 , 1 5 9 ) (2 0 3 , 7 8 7 ) To t a l g o v e r n m e n t a l a c t i v i t i e s 7, 6 9 2 , 7 7 2 69 6 , 5 5 6 1, 3 1 8 , 3 9 4 75 , 1 8 8 (5 , 6 0 2 , 6 3 4 ) (5 , 6 0 2 , 6 3 4 ) (6 , 0 5 9 , 2 6 2 ) Bu s i n e s s - t y pe a c t i v i t i e s Wa t e r a n d s e w e r 3, 0 0 2 , 9 6 4 2, 6 7 2 , 1 5 6 - - - (3 3 0 , 8 0 8 ) $ (3 3 0 , 8 0 8 ) (7 9 9 , 2 9 3 ) To t a l b u s i n e s s - t y pe a c t i v i t i e s 3, 0 0 2 , 9 6 4 2, 6 7 2 , 1 5 6 - - - (3 3 0 , 8 0 8 ) (3 3 0 , 8 0 8 ) (7 9 9 , 2 9 3 ) To t a l 10 , 6 9 5 , 7 3 6 $ 3, 3 6 8 , 7 1 2 1, 3 1 8 , 3 9 4 75 , 1 8 8 (5 , 6 0 2 , 6 3 4 ) (3 3 0 , 8 0 8 ) (5 , 9 3 3 , 4 4 2 ) (6 , 8 5 8 , 5 5 5 ) Ge n e r a l r e v e n u e s Pr o p e r t y t a x e s ( N o t e 1 0 ) 42 9 , 4 0 9 - 42 9 , 4 0 9 41 9 , 4 0 1 Sa l e s t a x 1, 1 7 1 , 5 9 0 - 1 , 1 7 1 , 5 9 0 1, 1 1 3 , 3 2 2 Me a l s t a x 86 4 , 4 4 8 - 86 4 , 4 4 8 84 2 , 3 8 4 Ut i l i t i e s t a x 80 1 , 2 6 4 - 80 1 , 2 6 4 80 3 , 0 4 4 Bu s i n e s s l i c e n s e t a x 45 4 , 6 3 6 - 45 4 , 6 3 6 45 6 , 5 3 6 Ci g a r e t t e t a x 30 6 , 7 9 9 - 30 6 , 7 9 9 34 6 , 8 8 6 Ot h e r l o c a l t a x e s 42 7 , 5 1 7 - 42 7 , 5 1 7 40 8 , 9 2 2 Un r e s t r i c t e d i n t e r g o v e r n m e n t a l r e v e n u e 74 8 , 8 1 5 - 74 8 , 8 1 5 66 4 , 9 7 5 Un r e s t r i c t e d i n v e s t m e n t e a r n i n g s 1, 9 0 4 1, 1 7 4 3, 0 7 8 5, 0 1 1 Re s t r i c t e d i n v e s t m e n t e a r n i n g s - 42 7 42 7 1, 7 2 7 Ot h e r 81 , 3 7 3 27 5 , 2 0 8 35 6 , 5 8 1 32 7 , 8 6 6 To t a l g e n e r a l r e v e n u e s 5, 2 8 7 , 7 5 5 27 6 , 8 0 9 5, 5 6 4 , 5 6 4 5, 3 9 0 , 0 7 4 Ch a n g e i n n e t a s s e t s (3 1 4 , 8 7 9 ) (5 3 , 9 9 9 ) (3 6 8 , 8 7 8 ) (1 , 4 6 8 , 4 8 1 ) NE T A S S E T S A T J U L Y 1 8, 1 4 3 , 2 4 4 5, 7 3 4 , 7 8 9 13 , 8 7 8 , 0 3 3 15 , 3 4 6 , 5 1 4 NE T A S S E T S A T J U N E 3 0 7, 8 2 8 , 3 6 5 $ 5, 6 8 0 , 7 9 0 $ 13 , 5 0 9 , 1 5 5 $ 13 , 8 7 8 , 0 3 3 $ Ge n e r a l g o v e r n m e n t a d m i n i s t r a t i o n To t a l s TO W N O F V I N T O N , V I R G I N I A ST A T E M E N T O F A C T I V I T I E S Ye a r E n d e d J u n e 3 0 , 2 0 1 1 Pr o g r a m R e v e n u e s Ne t ( E x p e n s e ) R e v e n u e a n d Ch a n g e s i n N e t A s s e t s Th e N o t e s t o F i n a n c i a l S t a t e m e n t s a r e a n i n t e g r a l p a r t o f t h i s s t a t e m e n t . 13 EXHIBIT 3 (For Comparison Only) 2011 2010 ASSETS Cash and cash equivalents 2,302,531$ 2,317,207$ Cash and cash equivalents, restricted 22,140 30,824 Receivables, net 314,130 292,806 Due from other governmental units 387,406 347,717 Inventories 505 505 Prepaid items 65,836 56,231 Total assets 3,092,548$ 3,045,290$ LIABILITIES Accounts payable and accrued liabilities 358,058$ 301,887$ Accrued payroll and related liabilities 160,363 216,735 Deferred revenue (Note 3)838,726 843,483 Total liabilities 1,357,147 1,362,105 FUND BALANCES Nonspendable 66,341 56,736 Restricted 372,271 751,677 Committed - 303,644 Assigned 100,000 130,710 Unassigned 1,196,789 440,418 Total fund balances 1,735,401 1,683,185 Total liabilities and fund balances 3,092,548$ 3,045,290$ General Fund TOWN OF VINTON, VIRGINIA BALANCE SHEET GOVERNMENTAL FUND June 30, 2011 The Notes to Financial Statements are an integral part of this statement. 14 EXHIBIT 4 (For Comparison Only) 2011 2010 Total Fund Balances – Governmental Fund 1,735,401$ 1,683,185$ are different because: Capital assets used in governmental activities are not financial resources, and, therefore, are not reported in the funds. Governmental capital assets 17,420,879$ Less: accumulated depreciation (6,817,140) 10,603,739 11,304,677 Bond issuance costs and premiums are reported as expenditures or Issuance costs on debt issuances total $132,858 and accumulated amortization is $38,240.94,618 Bond premiums total $70,855 and accumulated amortization is $17,029.(53,826) 40,792 43,892 Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds.199,605 197,903 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. General obligation bonds (2,845,000) Revenue bonds (1,435,000) Capital lease obligations (47,595) Accrued interest payable (68,856) Compensated absences (330,621) Other post-employment benefits (24,100) (4,751,172) (5,086,413) Total Net Assets – Governmental Activities 7,828,365$ 8,143,244$ revenues in the governmental funds, but are amortized over the life of the debt obligation in the statement of net assets: General Fund TOWN OF VINTON, VIRGINIA RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET TO THE STATEMENT OF NET ASSETS June 30, 2011 Amounts reported for governmental activities in the statement of net assets The Notes to Financial Statements are an integral part of this statement. 15 EXHIBIT 5 (For Comparison Only) 2011 2010 REVENUES General property taxes 431,418$ 403,172$ Other local taxes 4,035,740 3,942,775 Permits, privilege fees, and regulatory licenses 10,242 12,116 Fines and forfeitures 102,566 94,548 Revenues from use of money and property 118,560 156,533 Charges for services 355,606 328,116 Other 16,860 3,562 Gain sharing 527,420 435,113 Recovered costs 170,511 150,488 Contribution from Roanoke County - 5,807 Non-categorical aid 407,876 405,975 Categorical aid 1,197,925 1,173,407 Total revenues 7,374,724 7,111,612 EXPENDITURES Current: General government administration 628,386 641,853 Public safety 3,250,590 3,200,859 Public works 1,990,381 2,164,328 Parks, recreation, and cultural 551,240 574,215 Community development 333,617 365,366 Capital projects 114,309 90,570 Debt service: Principal retirement 260,501 253,500 Interest and fiscal charges 195,608 205,189 Total expenditures 7,324,632 7,495,880 Excess (deficiency) of revenues over expenditures 50,092 (384,268) OTHER FINANCING SOURCES Proceeds from sale of capital assets 2,124 17,491 Transfers in - 78,466 Total other financing sources 2,124 95,957 Net change in fund balances 52,216 (288,311) FUND BALANCES AT JULY 1 1,683,185 1,971,496 FUND BALANCES AT JUNE 30 1,735,401$ 1,683,185$ General Fund TOWN OF VINTON, VIRGINIA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUND Year Ended June 30, 2011 The Notes to Financial Statements are an integral part of this statement. 16 EXHIBIT 6 (For Comparison Only) 2011 2010 Net change in fund balances governmental fund 52,216$ (288,311)$ 4,549 4,502 (700,938) (855,858) 1,701 59,589 257,401 250,400 70,192 (63,186) Change in net assets of governmental activities (314,879)$ (892,864)$ TOWN OF VINTON, VIRGINIA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUND TO THE STATEMENT OF ACTIVITIES Year Ended June 30, 2011 General Fund Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 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 assets.Also,governmental funds report issuance costs,premiums,discounts,and similar items when debt is issued,whereas these amounts are deferred and amortized in the statement of activities.This amount is the net effect of those differences. Some items reported in the statement of activities,do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.These activities consist of a decrease in compensated absenses of $80,398 and an increase in other post-employment benefits of $(10,206). The net effect of the change in accrued interest expense,which is not reflected in the fund statements. Governmental funds report capital outlays as expenditures; however,in the statement of activities,the cost of those assets are allocated over their estimated useful lives as depreciation expense.This is the amount by which depreciation ($864,358) exceeded capital outlays ($163,420) in the current period. Amounts reported for governmental activities in the statement of activities are different because: The Notes to Financial Statements are an integral part of this statement. 17 EXHIBIT 7 Variance with Final Budget Positive Original Final Actual (Negative) REVENUES General property taxes 531,332$ 531,332$ 431,418$ (99,914)$ Other local taxes 3,993,000 3,993,000 4,035,740 42,740 Permits, privilege fees, and 11,500 11,500 10,242 (1,258) regulatory licenses Fines and forfeitures 116,500 116,500 102,566 (13,934) Revenues from use of money 152,000 152,000 118,560 (33,440) and property Charges for services 342,000 343,661 355,606 11,945 Other 21,000 13,500 16,860 3,360 Gain sharing 450,000 450,000 527,420 77,420 Recovered costs 143,500 147,754 170,511 22,757 Non-categorical aid 405,096 405,096 407,876 2,780 Categorical aid 1,111,153 1,178,181 1,197,925 19,744 Total revenues 7,277,081 7,342,524 7,374,724 32,200 EXPENDITURES Current: General government administration 642,013 642,012 628,386 13,626 Public safety 3,253,701 3,268,484 3,250,590 17,894 Public works 1,937,564 1,979,090 1,990,381 (11,291) Parks, recreation, and cultural 567,523 588,734 551,240 37,494 Community development 344,800 348,485 333,617 14,868 Capital projects 79,710 206,179 114,309 91,870 Debt service: Principal retirement 260,501 260,501 260,501 - Interest and fiscal charges 196,269 196,269 195,608 661 Total expenditures 7,282,081 7,489,754 7,324,632 165,122 OTHER FINANCING SOURCES Proceeds from sale of capital assets 5,000 5,000 2,124 (2,876) Transfers in 51,500 51,500 - (51,500) Total other financing sources 56,500 56,500 2,124 (54,376) Net change in fund balance 51,500$ (90,730)$ 52,216$ 142,946$ Budgeted Amounts TOWN OF VINTON, VIRGINIA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – GENERAL FUND Year Ended June 30, 2011 The Notes to Financial Statements are an integral part of this statement. 18 EXHIBIT 8 (For Comparison Only) 2011 2010 ASSETS Current assets: Cash and cash equivalents 310,112$ 54,505$ Cash and cash equivalents, restricted 330,078 731,677 Receivables, net 566,657 499,880 Inventories 31,589 36,028 Prepaid items 14,211 15,786 Total current assets 1,252,647 1,337,876 Noncurrent assets: Bond issue costs, net 70,777 75,107 Capital assets: Nondepreciable 213,671 723,107 Depreciable, net 11,279,325 11,184,968 Total noncurrent assets 11,563,773 11,983,182 Total assets 12,816,420 13,321,058 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 113,777 118,951 Accrued payroll and related liabilities 8,242 44,242 Accrued interest payable 91,579 95,706 Current portion of noncurrent liabilities 430,936 415,735 Total current liabilities 644,534 674,634 Noncurrent liabilities: Due in more than one year 6,491,096 6,911,635 Total noncurrent liabilities 6,491,096 6,911,635 Total liabilities 7,135,630 7,586,269 NET ASSETS Invested in capital assets, net of related debt 5,019,517 5,437,639 Unrestricted 661,273 297,150 Total net assets 5,680,790$ 5,734,789$ Water and Sewer Business-type Activities – Enterprise Fund TOWN OF VINTON, VIRGINIA STATEMENT OF NET ASSETS PROPRIETARY FUND June 30, 2011 The Notes to Financial Statements are an integral part of this statement. 19 EXHIBIT 9 (For Comparison Only) 2011 2010 OPERATING REVENUES Water service charges and fees 1,206,891$ 1,104,196$ Sewer service charges and fees 1,418,951 1,292,309 Water/sewer penalties 46,314 43,129 Other revenue 275,208 298,591 Total operating revenues 2,947,364 2,738,225 OPERATING EXPENSES Salaries 777,762 809,286 Fringe benefits 276,825 274,419 Contractual services 43,802 65,168 Maintenance 32,173 48,507 Rent, utilities, and insurance 279,090 361,056 Materials and supplies 112,787 112,621 Equipment repairs and rentals 21,144 36,998 Sewage treatment 334,336 345,141 Purchase of water 116,645 141,569 Other 146,202 166,953 Depreciation 632,179 658,380 Amortization 4,330 4,330 Total operating expenses 2,777,275 3,024,428 Operating income (loss)170,089 (286,203) NON-OPERATING REVENUE (EXPENSE) Interest income 1,601 3,551 Interest expense (225,689) (195,038) Loss on disposal of capital asset - (19,461) Net non-operating expense (224,088) (210,948) Loss before transfers (53,999) (497,151) TRANSFERS OUT - (78,466) Change in net assets (53,999) (575,617) NET ASSETS AT JULY 1 5,734,789 6,310,406 NET ASSETS AT JUNE 30 5,680,790$ 5,734,789$ TOWN OF VINTON, VIRGINIA Business-type Activities – Enterprise Fund Water and Sewer STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS PROPRIETARY FUND Year Ended June 30, 2011 The Notes to Financial Statements are an integral part of this statement. 20 EXHIBIT 10 (For Comparison Only) 2011 2010 OPERATING ACTIVITIES Receipts from customers 2,605,379$ 2,372,827$ Receipts from other sources 275,208 298,591 Payments to suppliers (1,070,631) (1,314,701) Payments to employees (1,093,039) (1,071,607) Net cash provided by operating activities 716,917 285,110 NONCAPITAL FINANCING ACTIVITIES Transfers to other funds - (78,466) CAPITAL AND RELATED FINANCING ACTIVITIES Purchases of capital assets (231,808) (775,899) Principal paid on long-term liabilities (399,218) (385,135) Interest paid (233,484) (202,673) Net cash used in capital and related financing activities (864,510) (1,363,707) INVESTING ACTIVITIES Interest received on investments 1,601 3,551 Net decrease in cash and cash equivalents (145,992) (1,153,512) CASH AND CASH EQUIVALENTS Beginning at July 1 786,182 1,939,694 Ending at June 30 640,190$ 786,182$ RECONCILIATION TO EXHIBIT 8 Cash and cash equivalents 310,112$ 54,505$ Cash and cash equivalents, restricted 330,078 731,677 640,190$ 786,182$ Reconciliation of operating income (loss) to net cash provided by operating activities Operating income (loss)170,089$ (286,203)$ Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation and amortization 636,509 662,710 Change in certain assets and liabilities: (Increase) decrease in: Receivables, net (66,777) (66,807) Inventories 4,439 3,968 Prepaid items 1,575 (1,698) (Decrease) increase in: Accounts payable and accrued liabilities (28,918) (26,860) Net cash provided by operating activities 716,917$ 285,110$ NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Capital asset purchases included in accounts payable -$ 14,708$ Business-type Activities – Enterprise Fund Water and Sewer TOWN OF VINTON, VIRGINIA STATEMENT OF CASH FLOWS PROPRIETARY FUND Year Ended June 30, 2011 The Notes to Financial Statements are an integral part of this statement. 21 (Continued)22 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 1.Summary of Significant Accounting Policies A.The Financial Reporting Entity The Town of Vinton was established in 1884. It is a political subdivision of the Commonwealth of Virginia operating under the Council-Manager form of government. The Town Council consists of a mayor and four other council members. The Town is part of Roanoke County and has taxing powers subject to state-wide restrictions and tax limits. Vinton provides a full range of municipal services including police, refuse collection, recycling, public improvements, planning and zoning, general administrative services, fire, first aid, recreation, and water and sewer services. Fire and first-aid services are supplemented by volunteer departments. Jointly Governed Organizations Roanoke Valley Resource Authority: The Town of Vinton, Roanoke County, and the City of Roanoke jointly participate in the Roanoke Valley Resource Authority, which operates a regional solid waste disposal system that includes a sanitary landfill, waste collection, and transfer station. The Authority is governed by a board composed of seven members appointed by the governing bodies of participating jurisdictions. Town Council appoints one member. The Town has control over the budget and financing of the Authority only to the extent of representation by the board member appointed. The participating localities are each responsible for their pro-rata share, based on population, of any year-end operating deficit. For the year ended June 30, 2011, the Town remitted $178,326 to the Authority for services. A separate financial statement can be obtained from the Roanoke Valley Resource Authority, 110 Hollins Road, NE, Roanoke, Virginia 24012. Roanoke Valley Regional Pound Facility: The Counties of Roanoke and Botetourt, the City of Roanoke, the Town of Vinton, and the Roanoke Valley Society for the Prevention of Cruelty to Animals, Inc. formed the Advisory Board of the Roanoke Valley Regional Pound Facility to construct and operate a regional pound facility. The Board is composed of nine members. Each locality’s financial obligation is based on the number of animals caged per day at the facility. The Town’s proportionate share totaled $39,855 for the year ended June 30, 2011. Separate financial statements are not available. (Continued)23 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 1.Summary of Significant Accounting Policies (Continued) A.The Financial Reporting Entity (Continued) Joint Venture Regional Fire Training Facility: The Town participates in an intergovernmental agreement with the County of Roanoke and the Cities of Roanoke and Salem for the operation of a regional fire training facility. The Roanoke Valley Regional Fire Training Academy Board is responsible for overseeing the management, operation, and administration of the Academy. Each participating jurisdiction maintains a leasehold interest in the project and shares costs of operation and maintenance equal to the jurisdiction’s payment percentage as defined in the agreement. The Town’s participating interest is 4%. The Town’s share of the operating cost was approximately $3,545 in the current year. Separate financial statements are not available. B.Individual Component Unit Disclosures As required by generally accepted accounting principles, these financial statements present the Town as the primary government. A component unit is an entity for which the primary government is considered to be financially accountable. There are no component units within this reporting entity. C.Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) 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. 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 are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for the governmental fund and proprietary fund. (Continued)24 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 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 fund: The general fund is the Town’s primary operating fund. It accounts for all financial resources of the Town, except those required to be accounted for in another fund. The Town reports the following major proprietary fund: The enterprise fund accounts for the financing of services to the general public where all or most of the operating expenses involved are intended to be recovered in the form of user charges, or where management has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for management control, accountability, or other purposes. The enterprise fund consists of the activities relating to water and sewer services. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private- sector guidance for their enterprise funds, subject to this same limitation. The Town has elected not to follow subsequent private-sector guidance. (Continued)25 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 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. 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 $207,673 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. (Continued)26 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 1.Summary of Significant Accounting Policies (Continued) E.Budgets and Budgetary Accounting (Continued) 5)Formal budgetary integration is employed as a management control device during the year for the general and enterprise funds. 6)Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). 7)Appropriations lapse on June 30. 8)All budget data presented in the accompanying financial statements are revised as of June 30. F.Cash and Cash Equivalents Cash and cash equivalents are defined as short-term, highly liquid investments (including restricted assets) with an original maturity of three months or less when purchased. G.Allowance for Uncollectible Accounts The Town calculates its allowance for uncollectible accounts using historical collection data and specific account analysis. H.Inventories Inventories in the general and enterprise funds are valued at the lower of cost (first-in, first-out) or market method. I.Capital Assets Capital assets, which include property, plant, and equipment, and infrastructure assets acquired subsequent to July 1, 2001, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the Town as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. (Continued)27 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 1.Summary of Significant Accounting Policies (Continued) I.Capital Assets (Continued) Property, plant, and equipment are depreciated using the straight-line method over the following estimated useful lives: Buildings and improvements 10-40 years Machinery and equipment 3-10 years Utility plant 20-40 years Public domain infrastructure 25-40 years Sewage treatment contract 30 years J.Capitalization of Interest The Town follows the policy of capitalizing net interest costs on funds borrowed to finance the construction of proprietary capital assets. Interest is not capitalized on the construction of assets used in governmental activities. There was $19,738 of interest capitalized for the year ended June 30, 2011. K.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. L.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 assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. 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. (Continued)28 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 1.Summary of Significant Accounting Policies (Continued) M.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 in the governmental funds. The classifications are as follows: Nonspendable –Amounts that cannot be spent because they are not in spendable form, or legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash. Restricted –Amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions, or by enabling legislation. Committed –Amounts constrained to specific purposes by the Town, using its highest level of decision making authority; to be reported as committed, amounts cannot be used for any other purposes unless the same highest level of action is taken to remove or change the constraint. Assigned –Amounts the Town intends to use for a specified purpose; intent can be expressed by the governing body. Unassigned – Amounts that are available for any purpose; positive amounts are reported only in the general fund. Council establishes fund balance commitments by passage of an ordinance or resolution. This is typically done through adoption and amendment of the budget. Assigned fund balance is established by Council through adoption or amendment of the budget as intended for specific purpose (such as the purchase of capital assets, construction, debt service, or for other purposes). The Town applies restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. Minimum Fund Balance Policy The Town does not have a minimum fund balance policy or target for the General Fund. N.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. (Continued)29 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 1.Summary of Significant Accounting Policies (Continued) O.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. P.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. (Continued)30 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 2.Deposits and Investments (Continued) Investments (Continued) Credit Risk: As required by state statute, the Policy requires that commercial paper have a short-term debt rating of no less than “A-1” (or its equivalent) from at least two of the following: Moody’s Investors Service, Standard & Poor’s, and Fitch Investors Service, provided that the issuing corporation has a net worth of at least $50 million and its long-term debt is rated “A” or better by Moody’s and Standard & Poor’s. Bankers’ acceptances and Certificates of Deposit maturing in less than one year must have a short-term debt rating of at least “A-1” by Standard & Poor’s and “P-1” by Moody’s Investors Service. As of June 30, 100% of the portfolio was invested in “AAAm” rated securities. All credit ratings presented in this paragraph are Standard & Poor’s short-term issue credit ratings. 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 of June 30, the fair value and weighted average maturity investments were as follows: Investment Type Fair Value Credit Rating Weighted Average Maturity* Virginia LGIP $1,921,997 AAAm 37.55 Money Market Funds –Wells Fargo (Heritage)330,079 AAAm 2.35 Total investments $2,252,076 Portfolio weighted average maturity 39.90 * Weighted average maturity in days. (Continued)31 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 2.Deposits and Investments (Continued) Investments (Continued) 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, all of the Town’s investments are held in a bank’s trust department in the Town’s name. Fair Value Investments $2,252,076 Deposits 710,123 Total deposits and investments $2,962,199 Reconciliation of deposits and investments to Exhibit 1: Cash and cash equivalents, excluding $2,662 cash on hand $2,609,981 Cash and cash equivalents, restricted 352,218 Total deposits and investments $2,962,199 Restricted cash and cash equivalents consists primarily of unused bond proceeds. (Continued)32 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 3.Receivables Receivables consist of the following: Governmental Business-type Activities Activities Total Receivables Taxes $411,031 $- $411,031 Accounts 11,780 633,657 645,437 Gross receivables 422,811 633,657 1,056,468 Allowance for uncollectibles (108,681)(67,000)(175,681) Receivables, net $314,130 $566,657 $880,787 Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows: Unavailable Unearned Total Included in receivables: Delinquent property taxes receivable $16,905 $89,895 $106,800 Vehicle license fee 29,450 - 29,450 Sales tax 94,519 - 94,519 Communication taxes 24,332 - 24,332 Overcharges 24,955 - 24,955 Intergovernmental 1,155 - 1,155 Other taxes and fees 8,289 - 8,289 199,605 89,895 289,500 Included in cash: Subsequent years’ tax collections - 537,448 537,448 Deposits on facility use - 11,778 11,778 - 549,226 549,226 Total deferred/unearned revenue for governmental funds $199,605 $639,121 $838,726 (Continued)33 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 4.Due from Other Governmental Units A summary of funds due from other governmental units was as follows: Commonwealth of Virginia Communication taxes $53,923 Miscellaneous non-categorical aid 43,124 97,047 County of Roanoke Local sales taxes 212,914 Vinton Business Center 1,155 Refuse Credit 55,000 Transport fees 14,721 Court fines 6,569 290,359 $387,406 Note 5.Capital Assets Capital asset activity for the year was as follows: Beginning Ending Governmental Activities Balance Increases Decreases Balance Capital assets, not depreciated Land $1,706,089 $ - $ - $1,706,089 Construction in progress 88,889 20,114 21,961 87,042 Total capital assets, not depreciated 1,794,978 20,114 21,961 1,793,131 Capital assets, depreciated Buildings and improvements 9,304,851 46,330 25,728 9,325,453 Machinery and equipment 3,899,454 118,937 148,770 3,869,621 Infrastructure 2,432,674 - - 2,432,674 Total capital assets, depreciated 15,636,979 165,267 174,498 15,627,748 Less accumulated depreciation for: Buildings and improvements 2,670,822 287,897 25,728 2,932,991 Machinery and equipment 2,833,058 484,307 148,770 3,168,595 Infrastructure 623,400 92,154 - 715,554 Total accumulated depreciation 6,127,280 864,358 174,498 6,817,140 Total capital assets, depreciated, net 9,509,699 (699,091) - 8,810,608 Governmental activities capital assets, net $11,304,677 $(678,977)$21,961 $10,603,739 (Continued)34 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 5.Capital Assets (Continued) Beginning Ending Business-type activities Balance Increases Decreases Balance Capital assets, not depreciated Land $80,752 $ - $ - $80,752 Construction in progress 642,354 217,101 726,536 132,919 Total capital assets, not depreciated 723,106 217,101 726,536 213,671 Capital assets, depreciated Utility plant 17,004,501 726,536 - 17,731,037 Sewage treatment contract 3,816,857 - - 3,816,857 Machinery and equipment 1,105,406 - - 1,105,406 _______________Total capital assets, depreciated 21,926,764 726,536 -22,653,300 Less accumulated depreciation for: Utility plant 9,206,430 452,121 - 9,658,551 Sewage treatment contract 768,713 130,118 - 898,831 Machinery and equipment 766,653 49,940 - 816,593 Total accumulated depreciation 10,741,796 632,179 - 11,373,975 Total capital assets, depreciated, net 11,184,968 94,357 - 11,279,325 Business-type activities capital assets, net $11,908,074 $311,458 $726,536 $11,492,996 Included in Governmental Activities’ capital assets is equipment with a cost of $227,500 and accumulated amortization of $178,208 financed by a capital lease. Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities General government $324,075 Public safety 249,446 Public works 259,337 Parks, recreation, and cultural 31,500 $864,358 Business-type activities Water and sewer $632,179 Construction Commitments The Town has no active construction projects as of June 30, 2011. The Town does have partially completed construction in progress,but there are no outstanding construction commitments related to these items. The construction in progress for governmental activities is related to design and study costs that the Town has done for future projects. The amounts in construction in progress in the water and sewer fund are engineering costs associated with the Tinker Creek Phase II project. As of the end of the year, the Town doesn’t have enough funding to fully complete this project as originally designed. The Town will revamp the designs for this project and bid the work out in the next few years. (Continued)35 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 5.Capital Assets (Continued) Sewage Treatment Contract Through its participation in an agreement with four other localities for expansion of the regional sewage treatment plant and interceptors, the Town received contractual rights to predetermined capacity in both the plant and interceptors through 2034. This expansion was completed in 2001 at a cost to the Town of approximately $1.2 million. Modifications costing approximately $46.0 million were completed in June 2008. The Town’s share of the costs were approximately 5.6% or $2.6 million, which was partially funded with general obligation bonds issued in fiscal year 2005 through the Virginia Resources Authority. The Town is required to contribute $66,000 annually to a capital reserve fund for ongoing maintenance of the system. 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 General obligation bonds $ 2,990,000 $- $ 145,000 $ 2,845,000 $ 145,000 Revenue bonds 1,505,000 - 70,000 1,435,000 75,000 Bond Premiums 57,369 - 3,543 53,826 3,543 Capital leases 93,096 - 45,501 47,595 47,595 Compensated absences 411,019 20,619 101,017 330,621 82,110 Other postemployment benefits 13,894 51,024 40,818 24,100 - $5,070,378 $71,643 $405,879 $4,736,142 $353,248 Business-type Activities General obligation bonds $4,558,026 $- $299,218 $4,258,808 $312,975 Revenue bonds 2,655,000 - 100,000 2,555,000 105,000 Bond Premiums 64,194 - 3,668 60,526 3,668 Compensated absences 48,794 6,741 10,189 45,346 9,293 Other postemployment benefits 1,356 4,978 3,982 2,352 - $7,327,370 $11,719 $417,057 $6,922,032 $430,936 The general fund has been used to liquidate the liability for compensated absences, net pension obligation, and net other post-employment benefits. (Continued)36 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 6.Long-Term Liabilities (Continued) The annual requirements to amortize long-term debt and related interest are as follows: Governmental Activities Business-type Activities General Obligation Bonds Revenue Bonds Capital Leases General Obligation Bonds Revenue Bonds Fiscal Year Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2012 $145,000 $120,573 $75,000 $62,941 $47,595 $2,190 $312,975 $135,695 $105,000 $115,425 2013 155,000 114,672 75,000 60,064 - - 324,498 124,172 110,000 111,125 2014 160,000 108,260 75,000 57,078 - - 268,204 112,209 115,000 106,625 2015 165,000 101,873 80,000 54,002 - - 237,382 103,649 120,000 101,925 2016 170,000 95,272 85,000 50,953 - - 244,924 96,106 120,000 97,125 2017-2021 960,000 363,587 470,000 197,838 - - 1,347,436 358,719 685,000 407,613 2022-2026 1,010,000 132,469 520,000 81,274 - - 1,440,022 132,910 880,000 219,500 2027-2030 80,000 4,000 55,000 2,668 - - 83,367 1,300 420,000 21,250 $2,845,000 $1,040,706 $1,435,000 $566,818 $47,595 $2,190 $4,258,808 $1,064,760 $2,555,000 $1,180,588 (Continued)37 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 6.Long-Term Liabilities (Continued) Details of long-term indebtedness are as follows: Interest Rates Date Issued Final Maturity Date Amount of Original Issue Governmental Activities Business- type Activities General Obligation Bonds: Virginia Resources Authority Taxable: G.O. Water and Sewer Bonds 3.00%01/17/97 12/01/13 $1,120,000 $ - $236,500 Virginia Revolving Loan Fund: G.O. Water and Sewer Bonds 3.30%07/24/03 07/01/24 1,250,704 - 946,845 G.O. Water and Sewer Bonds 3.10%10/01/04 10/01/26 2,479,000 - 2,084,047 G.O. Water and Sewer Bonds 3.10%01/12/06 03/01/26 1,210,000 - 991,416 Virginia Association of Counties: G.O. Public Improvement Bonds 2.50-4.38%12/15/04 08/21/24 2,500,000 1,915,000 - G.O. Public Improvement Bonds 3.75-5.25%02/08/07 02/01/27 1,045,000 930,000 - 2,845,000 4,258,808 Plus bond premium, net of amortization 35,305 - $2,880,305 $4,258,808 Revenue Bonds: Virginia Resources Authority: Infrastructure Revenue Bonds 2.38-4.48%11/04/04 10/01/24 $1,015,000 $785,000 $ - Infrastructure Revenue Bonds 3.64-4.96%06/01/06 10/01/26 755,000 650,000 - Virginia Association of Counties: Revenue Water and Sewer Bonds 3.50-5.00%12/19/07 08/01/27 2,750,000 - 2,555,000 1,435,000 2,555,000 Plus bond premium, net of amortization 18,521 60,526 $1,453,521 $2,615,526 Capital Leases: First Capital Equipment Leasing 4.60%07/16/07 08/01/11 $227,500 $47,595 $ - (Continued)38 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 7.Defined Benefit Pension Plan Plan Description The Town of Vinton contributes to the Virginia Retirement System (VRS), an agent and cost-sharing multiple-employer defined benefit pension plan administered by the Virginia Retirement System (the “System”). All full-time, salaried permanent (professional) employees of participating employers are automatically covered by VRS upon employment. Benefits vest after five years of service credit. Members earn one month of service credit for each month they are employed and their employer is paying into the VRS. Members are eligible to purchase prior public service, active duty military service, certain periods of leave and previously refunded VRS service as credit in their plan. VRS administers two defined benefit plans for local government employees –Plan 1 and Plan 2: Members hired before July 1, 2010 and who have service credits before July 1, 2010 are covered under Plan 1. Non-hazardous duty members are eligible for an unreduced retirement benefit beginning at age 65 with at least five years of service credit or age 50 with at least 30 years of service credit. They may retire with a reduced benefit as early as age 55 with at least 10 years of service credit or age 50 with at least five years of service credit. Members hired or rehired on or after July 1, 2010 and who have no service credits before July 1, 2010 are covered under Plan 2. Non-hazardous duty members are eligible for an unreduced benefit beginning at their normal Social Security retirement age with at least five years of service credit or when the sum of their age and service equals 90. They may retire with a reduced benefit as early as age 60 with at least five years of service credit. Eligible hazardous duty members in Plan 1 and Plan 2 are eligible for an unreduced benefit beginning at age 60 with at least 5 years of service credit or age 50 with at least 25 years of service credit. These members include sheriffs, deputy sheriffs and hazardous duty employees of political subdivisions that have elected to provide enhanced coverage for hazardous duty service. They may retire with a reduced benefit as early as age 50 with at least five years of service credit. All other provisions of the member’s plan apply. The VRS Basic Benefit is a lifetime monthly benefit based on a retirement multiplier as a percentage of the member’s average final compensation multiplied by the member’s total service credit. Under Plan 1, average final compensation is the average of the member’s 36 consecutive months of highest compensation. Under Plan 2, average final compensation is the average of the member’s 60 consecutive months of highest compensation. The retirement multiplier for non-hazardous duty members is 1.70%. The retirement multiplier for sheriffs and regional jail superintendents is 1.85%. The retirement multiplier for eligible political subdivision hazardous duty employees other than sheriffs and jail superintendents is 1.70% or 1.85% as elected by the employer. At retirement, members can elect the Basic Benefit, the Survivor Option, a Partial Lump-Sum Option Payment (PLOP) or the Advance Pension Option. A retirement reduction factor is applied to the Basic Benefit amount for members electing the Survivor Option, PLOP or Advance Pension Option or those retiring with a reduced benefit. (Continued)39 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 7.Defined Benefit Pension Plan Plan Description (Continued) Retirees are eligible for an annual cost-of-living adjustment (COLA) effective July 1 of the second calendar year of retirement. Under Plan 1, the COLA cannot exceed 5.00%; under Plan 2, the COLA cannot exceed 6.00%. During years of no inflation or deflation, the COLA is -0-%. The VRS also provides death and disability benefits. Title 51.1 of the Code of Virginia (1950), as amended, assigns the authority to establish and amend benefit provisions to the General Assembly of Virginia. The system issues a publicly available comprehensive annual financial report that includes financial statements and required supplementary information for the plans administered by VRS. A copy of the report may be obtained from the VRS Web site at http://www.varetire.org/Pdf/Publications/2010- annual-report.pdf or by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500. Funding Policy Plan members are required by Title 51.1 of the Code of Virginia (1950), as amended, to contribute 5.00% of their compensation toward their retirement. All or part of the 5.00% member contribution may be assumed by the employer. In addition, the Town is required to contribute the remaining amounts necessary to fund its participation in the VRS using the actuarial basis specified by the Code of Virginia and approved by the VRS Board of Trustees. The Town’s contribution rate for the fiscal year ended June 30, 2011 was 8.48% of the annual covered payroll. Annual Pension Cost For the fiscal year ended June 30, 2011, the Town’s annual pension cost of $452,742 for VRS was equal to the required and actual contributions. Three-Year Trend Information Annual Pension Percentage of Cost APC Net Pension Fiscal Year Ending (APC)Contributed Obligation June 30, 2011 $ 452,742 100 % $ - June 30, 2010 $ 477,750 100 % $ - June 30, 2009 $ 473,590 100 % $ - (Continued)40 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 7.Defined Benefit Pension Plan (Continued) The fiscal year 2011 required contribution was determined as part of the June 30,2009 actuarial valuation using the entry age actuarial cost method. The actuarial assumptions at June 30, 2009 included (a) an investment rate of return (net of administrative expenses) of 7.50%, (b) projected salary increases ranging from 3.75% to 5.60% per year for general government employees and 3.50% to 4.75% per year for employees eligible for enhanced benefits available to law enforcement officers, firefighters, and sheriffs, and (c) a cost-of-living adjustment of 2.50% per year. Both the investment rate of return and the projected salary increases also included an inflation component of 2.50%. The actuarial value of the Town’s assets is equal to the modified market value of assets. This method uses techniques that smooth the effects of short-term volatility in the market value of assets over a five-year period. The Town’s unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at June 30, 2009 for the Unfunded Actuarial Accrued Liability (UAAL) was 20 years. Funded Status and Funding Progress As of June 30, 2010, the most recent actuarial valuation date, the plan was 86.81% funded. The actuarial accrued liability for benefits was $14,175,236, and the actuarial value of assets was $12,305,195, resulting in an unfunded actuarial accrued liability (UAAL) of $1,870,041. The covered payroll (annual payroll of active employees covered by the plan) was $3,513,612, and the ratio of the UAAL to the covered payroll was 53.22%. The schedule of funding progress, presented as required supplementary information (RSI) following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability (AAL) for benefits. Note 8.Other Post-Employment Benefits Plan Description The Town provides post-employment medical and dental benefits to its eligible retirees and their dependents who elect to stay in the plans. At retirement, retirees under the age of 65 may participate in one of the Town’s health and dental plans and may continue coverage under these plans until age 65 or becoming eligible for Medicare, whichever comes first. The Town contributes $200 per month towards this coverage with the retiree paying the remainder of the premium. Medicare-eligible retirees may participate in the Medicare supplement only. Medicare-eligible retirees pay 100% of the Medicare supplement. Additionally, 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 employees 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. (Continued)41 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 8.Other Post-Employment Benefits (Continued) Funding Policy The Town currently funds post-employment benefits on a pay-as-you-go basis. The Town does not intend to establish a trust to pre-fund this liability. Annual OPEB Cost and Net OPEB Obligation For the year ended June 30, 2011, the Town’s annual OPEB cost (expense) of $55,900 was equal to its Annual Required Contribution (ARC). The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. For the year ended 2011, the Town’s pay-as-you-go funding totaled $44,800 and resulted in a Net OPEB obligation of $26,452. The pay-as-you-go funding includes the Town’s contribution towards retiree health care premiums of $4,820, and an implicit subsidy of the retiree health care premiums created through the blending of active employee and retiree insurance rates. Annual required contribution $ 55,900 Interest on net OPEB obligation 610 Adjustment to annual required contribution (508) Annual OPEB cost 56,002 Less funding (44,800) Increase in net OPEB obligation 11,202 Net OPEB obligation-beginning of year 15,250 Net OPEB obligation-end of year $ 26,452 The Town’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2011 and 2010 are as follows: Fiscal Year Ended OPEB Obligation Percentage of Annual OPEB Cost Contributed Net OPEB Obligation June 30, 2011 $56,002 80.0%$26,452 June 30, 2010 55,400 72.5%$15,250 (Continued)42 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 8.Other Post-Employment Benefits (Continued) Funded Status and Funding Progress As of January 1, 2009, the Town’s most recent actuarial valuation date, the unfunded actuarial accrued liability (UAAL) for benefits was $479,500, all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was $3,715,300, and the ratio of the UAAL to the covered payroll was 12.91%. Methods and Assumptions Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and healthcare cost trends. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Projections of benefits for financial reporting purposes are based on the substantive plan and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. In the January 1, 2009 actuarial valuation, the projected unit credit cost method was used to determine the liabilities. Under this method, the post-retirement health costs are assumed to be earned ratably from the date of hire to the participant’s full eligibility age. The actuarial assumptions used a 4% discount rate and an initial annual healthcare cost trend of 6.8% reduced by decrements each year to arrive at an ultimate healthcare cost trend rate of 4.5%. The unfunded accrued liability is being amortized over 30 years. The remaining amortization period at June 30, 2010 is 29 years. The schedule of funding progress, presented as Required Supplementary Information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. (Continued)43 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 9.Service Contracts Sewage Treatment The Town is party to an agreement, dated November 1, 2003, with the Western Virginia Water Authority for the Authority to provide the transportation and treatment of waste at a specified rate to be adjusted annually on July 1, based on the actual operating and maintenance costs for the previous year. The 30-year agreement provides for a surcharge in the event waste content or volume exceeds certain limits or the cost is less than the amount paid by users. Water Purchases/Sales Effective, June 1, 2005, the Town agreed to purchase water from the Western Virginia Water Authority at a bulk rate which is determined by a mutually agreed-upon formula. The water is designated for an industrial user who pays the Town a rate agreed upon by the user and the Town. This is a 30-year agreement and will expire in 2035. Note 10.Property Taxes The major sources of property taxes are real estate and personal property taxes. The assessments are the responsibility of the County of Roanoke, while billing and collection functions are the Town’s responsibilities. Property taxes are levied annually in April on assessed values as of January 1. Personal property transactions during the year are taxed on a prorated basis. Real estate tax is payable in two equal installments on or before June 5 and December 5, and personal property tax is due on or before May 31, or within 30 days subsequent to assessment. Personal property taxes do not create a lien on property. 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: Real estate $.03 Personal property $1.00 Machinery and tools $1.00 Note 11.Leases The Town leases a portion of a building to the Virginia State Department of Health for $1,602 per month on a month to month basis until terminated by either party. (Continued)44 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 12.Risk Management The Town is insured for workers’ compensation, general liability, health, and other risks. The risk management programs are as follows: Workers’ Compensation Workers’ compensation insurance is provided through the Virginia Municipal League. During 2010-2011, total premiums paid were approximately $79,000. 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 2010-2011, total premiums paid were approximately $170,000. General liability and business automobile have a $1,000,000 limit per occurrence. Boiler and machinery coverage and property insurance are covered per statement of values. The Town maintains an additional $4,000,000 umbrella policy over all forms of liability insurance. Police professional liability and public officials’ liability insurance with a $1,000,000 limit are covered through a policy with the Commonwealth of Virginia. There were no significant reductions in insurance coverages from the prior year and no settlements that exceeded the amount of insurance coverage during the last three fiscal years. Healthcare The Town provides healthcare coverage for employees through a policy with Anthem Blue Cross Blue Shield. The Town contributes the required premium amount for single coverage for each employee. Dependents of employees are also covered by the policy provided they pay the additional premium to the Town. During 2010-2011, total premiums paid were approximately $555,000. Note 13.Commitments and Contingencies Special Purpose Grants Special purpose grants are subject to audit to determine compliance with their requirements. Town management believes that required refunds, if any, will be immaterial. (Continued)45 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 13.Commitments and Contingencies (Continued) 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 the old landfill site formerly owned by the Roanoke Valley Regional Solid Waste Management Board. Closure and post-closure care requirements are mandated under the United States Environmental Protection Agency (EPA) rule, Solid Waste Disposal Facility Criteria, and are subject to periodic revisions by the EPA. The current estimate of remaining closure and post-closure care costs, assuming full utilization of the sites, is approximately $13.9 million. The participating localities have contributed their pro-rata shares to fund the closure and post-closure care costs. Gain Sharing Agreement –Vinton Business Center On March 2, 1999, the Town and Roanoke County reached an agreement to provide for the sharing of certain local tax revenues and sharing of the costs of certain public services. That agreement states that the Town and County may negotiate an agreement to fund jointly the costs of development of the Vinton Business Center and to share equally in the local tax revenues generated by this project. During 2007, the County paid the Town one-half of the costs of development. As part of the agreement, the Town agreed to convey a one-half undivided interest in the remaining real estate of the project. The agreement states that the Town and County plan on making additional improvements to this project and will share in the costs of that and annual maintenance equally. The Town and County must jointly agree before any future improvements are made to the property or before portions of the property are sold. No major improvements were commenced during the current year. Note 14.Major Customer/Taxpayer During fiscal year 2011, approximately 8.0% of the Town’s business-type revenues were generated by one industrial customer. (Continued)46 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 15.Fund Balances Fund balance is classified as nonspendable, restricted, committed, assigned and/or unassigned based primarily on the extent to which the Town is bound to observe constraints imposed upon the use of the resources in the general funds. The constraints placed on the general fund balance are presented below: General Fund Nonspendable: Inventories $ 505 Prepaids 65,836 Total nonspendable 66,341 Restricted for: Public safety 22,140 Public works 330,078 Community development 20,053 Total restricted 372,271 Assigned to: Community development 100,000 Total assigned 100,000 Unassigned 1,196,789 Total fund balance $ 1,735,401 Note 16.Subsequent Event On September 6, 2011, the Town and Roanoke County reached an agreement to purchase property at 304 South Pollard Street for a future Roanoke County/Vinton Branch Library to be built by Roanoke County. The property is being sold for $1.25 million, and the Town will be responsible for half of that amount or $625,000. Roanoke County will be responsible for the remainder of the costs. The Town will make an additional $100,000 good faith deposit and the remaining costs for the project will be spread out over the next 10 years. The Town will pay $50,000 each year for years one through five, and $55,000 per year in years six through ten. Roanoke County will own the property and add it to its capital assets. Note 17.New Accounting Standards The Governmental Accounting Standards Board (GASB) has issued the following statements which are not yet effective. GASB Statement No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans,was issued address issues related to the use of the alternative measurement method, and the frequency and timing of measurements by employers that participate in agent multiple-employer other postemployment benefit (OPEB) plans. The statement amends GASB No. 45, to permit an agent employer that has an individual-employer OPEB plan with fewer than 100 total plan members to use the alternative measurement method, at its option, regardless of the number of total plan members in the agent multiple-employer OPEB plan in which it participates. This statement will be effective for the year ending June 30, 2012. 47 TOWN OF VINTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2011 Note 17.New Accounting Standards (Continued) GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements,was issued to incorporate into the GASB’s authoritative literature certain accounting and financial reporting guidance that is included in FASB pronouncements issued on or before November 30,1989 which do not conflict with or contradict GASB pronouncements. This statement will be effective for the year ending June 30, 2013. GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflow of Resources, and Net Position,is intended to improve financial reporting by standardizing the presentation of deferred outflows of resources and deferred inflows of resources and their effects on a government’s net position. It alleviates uncertainty about reporting those financial statement elements by providing guidance where none previously existed.This statement will be effective for the year ending June 30, 2013. Management has not yet evaluated the effects, if any, of adopting these standards. THIS PAGE INTENTIONALLY BLANK 48 REQUIRED SUPPLEMENTARY INFORMATION EXHIBIT 11 (a)(b)(b-a)(a/b)(c)((b-a)/c) Unfunded Actuarial UAAL as of Actuarial Actuarial Actuarial Accrued Annual Percentage Valuation Value of Accrued Liability Funded Covered of Covered Date Assets Liability (AAL)(UAAL)Ratio Payroll Payroll June 30, 2010 12,305,195$ 14,175,236$ 1,870,041$ 86.81%3,513,612$ 53.22% June 30, 2009 12,201,884$ 13,108,688$ 906,804$ 93.08%3,601,670$ 25.18% June 30, 2008 12,035,517$ 12,518,772$ 483,255$ 96.14%3,225,456$ 14.98% June 30, 2007 10,981,805$ 11,558,591$ 576,786$ 95.01%3,156,124$ 18.28% June 30, 2006 9,702,178$ 9,524,237$ (177,941)$ 101.87%2,787,681$ (6.38)% June 30, 2005 9,259,266$ 9,590,278$ 331,012$ 96.55%2,519,480$ 13.14% TOWN OF VINTON, VIRGINIA ANALYSIS OF FUNDING PROGRESS FOR DEFINED BENEFIT PENSION PLAN June 30, 2011 49 EXHIBIT 12 (a)(b)(b-a)(a/b)(c)((b-a)/c) Unfunded Actuarial UAAL as of Actuarial Actuarial Actuarial Accrued Annual Percentage Valuation Value of Accrued Liability Funded Covered of Covered Date Assets Liability (AAL)(UAAL)Ratio Payroll Payroll January 1, 2009 -$ 479,500$ 479,500$ 0.00% 3,715,300$ 12.91% TOWN OF VINTON, VIRGINIA ANALYSIS OF FUNDING PROGRESS FOR OTHER POSTEMPLOYMENT BENEFITS June 30, 2011 50 51 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. 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: Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year. The Town implemented Statement 34 in 2003; schedules presenting government-wide information include information beginning in that year. TA B L E 1 20 1 1 20 1 0 20 0 9 20 0 8 20 0 7 20 0 6 20 0 5 20 0 4 20 0 3 Go v e r n m e n t a l a c t i v i t i e s In v e s t e d i n c a p i t a l a s s e t s , n e t o f r e l a t e d d e b t 6, 3 1 6 , 9 3 7 $ 6, 7 6 0 , 4 7 4 $ 7, 3 6 5 , 6 3 2 $ 7, 7 6 3 , 4 7 0 $ 7, 5 0 0 , 9 9 4 $ 7, 2 3 7 , 1 6 8 $ 6, 6 8 3 , 6 5 3 $ 5, 7 7 5 , 2 5 5 $ 4, 9 4 3 , 8 8 2 $ Re s t r i c t e d 20 , 0 5 3 20 , 0 0 0 20 , 0 0 0 20 , 0 0 0 20 , 0 0 0 20 , 0 0 0 20 , 0 0 0 20 , 0 0 0 20 , 0 0 0 Un r e s t r i c t e d 1, 4 9 1 , 3 7 5 1, 3 6 2 , 7 7 0 1, 6 5 0 , 4 7 6 2, 4 5 1 , 8 9 8 3, 4 3 1 , 4 4 2 3, 2 3 8 , 0 9 2 3, 3 5 5 , 2 1 2 3, 4 7 1 , 4 9 8 4, 0 5 0 , 5 8 9 To t a l g o v e r n m e n t a l a c t i v i t i e s n e t a s s e t s 7, 8 2 8 , 3 6 5 $ 8, 1 4 3 , 2 4 4 $ 9, 0 3 6 , 1 0 8 $ 10 , 2 3 5 , 3 6 8 $ 10 , 9 5 2 , 4 3 6 $ 10 , 4 9 5 , 2 6 0 $ 10 , 0 5 8 , 8 6 5 $ 9, 2 6 6 , 7 5 3 $ 9, 0 1 4 , 4 7 1 $ Bu s i n e s s - t y p e a c t i v i t i e s In v e s t e d i n c a p i t a l a s s e t s , n e t o f r e l a t e d d e b t 5, 0 1 9 , 5 1 7 $ 5, 4 3 7 , 6 3 9 $ 5, 3 4 2 , 2 3 0 $ 5, 4 9 7 , 6 0 4 $ 5, 5 5 5 , 5 8 3 $ 6, 0 7 2 , 2 2 0 $ 6, 0 4 2 , 2 4 0 $ 6, 1 7 6 , 0 3 9 $ 6, 3 8 8 , 0 5 3 $ Un r e s t r i c t e d 66 1 , 2 7 3 29 7 , 1 5 0 96 8 , 1 7 6 1, 2 5 5 , 0 3 5 1, 8 3 7 , 4 2 9 1, 8 8 2 , 4 6 7 2, 0 2 7 , 7 7 7 2, 1 0 9 , 0 4 0 2, 2 1 6 , 1 8 2 To t a l b u s i n e s s - t y p e a c t i v i t i e s n e t a s s e t s 5, 6 8 0 , 7 9 0 $ 5, 7 3 4 , 7 8 9 $ 6, 3 1 0 , 4 0 6 $ 6, 7 5 2 , 6 3 9 $ 7, 3 9 3 , 0 1 2 $ 7, 9 5 4 , 6 8 7 $ 8, 0 7 0 , 0 1 7 $ 8, 2 8 5 , 0 7 9 $ 8, 6 0 4 , 2 3 5 $ Pr i m a r y g o v e r n m e n t In v e s t e d i n c a p i t a l a s s e t s , n e t o f r e l a t e d d e b t 11 , 3 3 6 , 4 5 4 $ 12 , 1 9 8 , 1 1 3 $ 12 , 7 0 7 , 8 6 2 $ 13 , 2 6 1 , 0 7 4 $ 13 , 0 5 6 , 5 7 7 $ 13 , 3 0 9 , 3 8 8 $ 12 , 7 2 5 , 8 9 3 $ 11 , 9 5 1 , 2 9 4 $ 11 , 3 3 1 , 9 3 5 $ Re s t r i c t e d 20 , 0 5 3 20 , 0 0 0 20 , 0 0 0 20 , 0 0 0 20 , 0 0 0 20 , 0 0 0 20 , 0 0 0 20 , 0 0 0 20 , 0 0 0 Un r e s t r i c t e d 2, 1 5 2 , 6 4 8 1, 6 5 9 , 9 2 0 2, 6 1 8 , 6 5 2 3, 7 0 6 , 9 3 3 5, 2 6 8 , 8 7 1 5, 1 2 0 , 5 5 9 5, 3 8 2 , 9 8 9 5, 5 8 0 , 5 3 8 6, 2 6 6 , 7 7 1 To t a l p r i m a r y g o v e r n m e n t n e t a s s e t s 13 , 5 0 9 , 1 5 5 $ 13 , 8 7 8 , 0 3 3 $ 15 , 3 4 6 , 5 1 4 $ 16 , 9 8 8 , 0 0 7 $ 18 , 3 4 5 , 4 4 8 $ 18 , 4 4 9 , 9 4 7 $ 18 , 1 2 8 , 8 8 2 $ 17 , 5 5 1 , 8 3 2 $ 17 , 6 1 8 , 7 0 6 $ No t e : T h e T o w n b e g a n t o r e p o r t a c c r u a l i n f o r m a t i o n w h e n i t c o m p l e t e d G AS B S t a t e m e n t 3 4 i n f i s c a l y e a r 2 0 0 3 . TO W N O F V I N T O N , V I R G I N I A NE T A S S E T S B Y C O M P O N E N T La s t N i n e F i s c a l Y e a r s (a c c r u a l b a s i s o f a c c o u n t i n g ) 52 TA B L E 2 20 1 1 2 0 1 0 20 0 9 20 0 8 20 0 7 20 0 6 20 0 5 20 0 4 20 0 3 Ex p e n s e s Go v e r n m e n t a l a c t i v i t i e s Ge n e r a l g o v e r n m e n t 93 4 , 3 8 8 $ 1, 0 2 3 , 2 2 7 $ 1, 0 3 7 , 0 7 3 $ 90 6 , 0 7 2 $ 1, 8 4 2 , 0 8 4 $ 75 8 , 5 3 7 $ 75 8 , 7 3 8 $ 68 7 , 0 7 3 $ 73 6 , 4 7 8 $ Pu b l i c s a f e t y 3, 3 9 7 , 5 6 2 3, 4 4 6 , 7 4 6 3, 5 9 3 , 9 4 6 3, 4 0 7 , 5 3 6 3, 4 5 4 , 7 1 3 2, 9 7 3 , 8 8 5 2, 6 7 8 , 2 4 5 2, 6 9 3 , 0 8 7 2, 4 0 5 , 1 9 8 Pu b l i c w o r k s 2, 2 4 3 , 1 1 1 2, 4 5 7 , 8 3 2 2, 4 5 5 , 7 5 4 2, 9 0 5 , 2 4 9 2, 0 5 8 , 3 7 9 1, 5 8 3 , 5 3 7 1, 5 0 5 , 8 3 2 1, 2 0 1 , 3 8 6 1, 4 0 9 , 3 3 0 Pa r k s , r e c r e a t i o n , a n d c u l t u r a l 58 3 , 5 6 9 61 7 , 7 7 8 61 0 , 7 5 6 57 5 , 8 9 5 30 0 , 8 5 4 45 6 , 3 4 3 54 4 , 2 4 2 53 5 , 1 0 2 53 8 , 0 8 3 Co m m u n i t y d e v e l o p m e n t 33 9 , 9 8 3 39 3 , 1 6 0 33 9 , 3 0 4 22 7 , 3 0 3 21 8 , 9 4 1 20 6 , 5 1 0 19 6 , 0 7 5 22 3 , 2 7 2 19 6 , 6 9 1 In te r e s t o n l o n g - t e r m d e b t 19 4 , 1 5 9 20 3 , 7 8 7 21 1 , 1 8 9 22 0 , 5 5 1 18 8 , 9 6 6 14 0 , 5 3 4 14 8 , 7 1 9 5, 2 9 5 7, 2 6 8 To t a l g o v e r n m e n t a l a c t i v i t i e s 7, 6 9 2 , 7 7 2 8, 1 4 2 , 5 3 0 8, 2 4 8 , 0 2 2 8, 2 4 2 , 6 0 6 8, 0 6 3 , 9 3 7 6, 1 1 9 , 3 4 6 5, 8 3 1 , 8 5 1 5, 3 4 5 , 2 1 5 5, 2 9 3 , 0 4 8 Bu s i n e s s - t y p e a c t i v i t i e s Wa t e r a n d s e w e r 3, 0 0 2 , 9 6 4 3, 2 3 8 , 9 2 7 3, 1 8 9 , 3 1 5 3, 1 4 8 , 2 3 6 3, 0 3 5 , 8 4 7 2, 3 8 0 , 7 2 8 2, 1 7 4 , 9 3 9 2, 1 9 7 , 3 9 6 1, 8 6 3 , 2 7 4 To t a l b u s i n e s s - t y p e a c t i v i t i e s e x p e n s e 3, 0 0 2 , 9 6 4 3, 2 3 8 , 9 2 7 3, 1 8 9 , 3 1 5 3, 1 4 8 , 2 3 6 3, 0 3 5 , 8 4 7 2, 3 8 0 , 7 2 8 2, 1 7 4 , 9 3 9 2, 1 9 7 , 3 9 6 1, 8 6 3 , 2 7 4 To t a l p r i m a r y g o v e r n m e n t e x p e n s e s 10 , 6 9 5 , 7 3 6 $ 11 , 3 8 1 , 4 5 7 $ 11 , 4 3 7 , 3 3 7 $ 11 , 3 9 0 , 8 4 2 $ 11 , 0 9 9 , 7 8 4 $ 8, 5 0 0 , 0 7 4 $ 8, 0 0 6 , 7 9 0 $ 7, 5 4 2 , 6 1 1 $ 7, 1 5 6 , 3 2 2 $ Pr o g r a m R e v e n u e s Go v e r n m e n t a l a c t i v i t i e s Ch a r g e s f o r s e r v i c e s Pu b l i c s a f e t y 11 9 , 8 7 0 $ 10 8 , 1 8 7 $ 17 2 , 3 5 7 $ 12 8 , 2 1 6 $ 23 1 , 2 0 7 $ 20 3 , 5 3 2 $ 19 3 , 2 6 4 $ 13 2 , 2 6 3 $ 31 3 , 9 6 1 $ Pu b l i c w o r k s 11 0 , 3 8 0 11 0 , 1 7 5 13 2 , 3 8 2 11 4 , 2 7 4 11 0 , 2 2 0 11 4 , 2 6 7 11 3 , 9 1 7 11 3 , 9 6 6 11 3 , 4 3 4 Ot h e r a c t i v i t i e s 46 6 , 3 0 6 48 9 , 9 0 1 43 6 , 8 3 5 45 0 , 3 3 8 37 0 , 8 3 8 50 2 , 9 7 9 54 4 , 4 1 5 58 6 , 8 6 6 44 0 , 8 7 3 Op e r a t i n g g r a n t s a n d c o n t r i b u t i o n s 1, 3 1 8 , 3 9 4 1, 3 6 6 , 9 7 1 1, 4 5 4 , 8 1 3 1, 6 9 1 , 1 6 3 1, 2 8 2 , 2 4 4 1, 1 0 2 , 3 4 0 1, 1 2 1 , 5 6 1 1, 1 2 2 , 3 1 4 1, 0 1 6 , 6 9 4 Ca p i t a l g r a n t s a n d c o n t r i b u t i o n s 75 , 1 8 8 8, 0 3 4 2, 1 4 6 91 , 5 9 0 1, 3 3 7 , 0 1 6 12 3 , 2 4 0 73 7 , 7 1 6 - 10 , 2 1 2 To t a l g o v e r n m e n t a l a c t i v i t i e s p r o g r a m r e v e n u e s 2, 0 9 0 , 1 3 8 2, 0 8 3 , 2 6 8 2, 1 9 8 , 5 3 3 2, 4 7 5 , 5 8 1 3, 3 3 1 , 5 2 5 2, 0 4 6 , 3 5 8 2, 7 1 0 , 8 7 3 1, 9 5 5 , 4 0 9 1, 8 9 5 , 1 7 4 Bu s i n e s s - t y p e a c t i v i t i e s Ch a r g e s f o r s e r v i c e s Wa t e r a n d s e w e r 2, 6 7 2 , 1 5 6 2, 4 3 9 , 6 3 4 2, 2 8 9 , 7 5 4 2, 2 5 5 , 5 0 5 2, 2 7 4 , 2 2 4 2, 1 4 3 , 0 3 2 1, 8 7 3 , 8 2 1 1, 8 0 7 , 7 7 5 1, 6 8 7 , 9 0 4 Ca p i t a l g r a n t s a n d c o n t r i b u t i o n s - - 30 3 , 5 5 6 - 48 , 5 4 0 - - - - To t a l b u s i n e s s - t y p e a c t i v i t i e s p r o g r a m r e v e n u e s 2, 6 7 2 , 1 5 6 2, 4 3 9 , 6 3 4 2, 5 9 3 , 3 1 0 2, 2 5 5 , 5 0 5 2, 3 2 2 , 7 6 4 2, 1 4 3 , 0 3 2 1, 8 7 3 , 8 2 1 1, 8 0 7 , 7 7 5 1, 6 8 7 , 9 0 4 To t a l p r i m a r y g o v e r n m e n t p r o g r a m r e v e n u e s 4, 7 6 2 , 2 9 4 $ 4, 5 2 2 , 9 0 2 $ 4, 7 9 1 , 8 4 3 $ 4, 7 3 1 , 0 8 6 $ 5, 6 5 4 , 2 8 9 $ 4, 1 8 9 , 3 9 0 $ 4, 5 8 4 , 6 9 4 $ 3, 7 6 3 , 1 8 4 $ 3, 5 8 3 , 0 7 8 $ Ne t ( e x p e n s e ) r e v e n u e Go v e r n m e n t a l a c t i v i t i e s (5 , 6 0 2 , 6 3 4 ) $ (6 , 0 5 9 , 2 6 2 ) $ (6 , 0 4 9 , 4 8 9 ) $ (5 , 7 6 7 , 0 2 5 ) $ (4 , 7 3 2 , 4 1 2 ) $ (4 , 0 7 2 , 9 8 8 ) $ (3 , 1 2 0 , 9 7 8 ) $ (3 , 3 8 9 , 8 0 6 ) $ (3 , 3 9 7 , 8 7 4 ) $ Bu s i n e s s - t y p e a c t i v i t i e s (3 3 0 , 8 0 8 ) (7 9 9 , 2 9 3 ) (5 9 6 , 0 0 5 ) (8 9 2 , 7 3 1 ) (7 1 3 , 0 8 3 ) (2 3 7 , 6 9 6 ) (3 0 1 , 1 1 8 ) (3 8 9 , 6 2 1 ) (1 7 5 , 3 7 0 ) To t a l p r i m a r y g o v e r n m e n t n e t e x p e n s e (5 , 9 3 3 , 4 4 2 ) $ (6 , 8 5 8 , 5 5 5 ) $ (6 , 6 4 5 , 4 9 4 ) $ (6 , 6 5 9 , 7 5 6 ) $ (5 , 4 4 5 , 4 9 5 ) $ (4 , 3 1 0 , 6 8 4 ) $ (3 , 4 2 2 , 0 9 6 ) $ (3 , 7 7 9 , 4 2 7 ) $ (3 , 5 7 3 , 2 4 4 ) $ (C o n t i n u e d ) (a c c r u a l b a s i s o f a c c o u n t i n g ) TO W N O F V I N T O N , V I R G I N I A CH A N G E I N N E T A S S E T S B Y C O M P O N E N T La s t N i n e F i s c a l Y e a r s 53 TA B L E 2 20 1 1 2 0 1 0 20 0 9 20 0 8 20 0 7 20 0 6 20 0 5 20 0 4 20 0 3 (a c c r u a l b a s i s o f a c c o u n t i n g ) TO W N O F V I N T O N , V I R G I N I A CH A N G E I N N E T A S S E T S B Y C O M P O N E N T La s t N i n e F i s c a l Y e a r s Ge n e r a l R e v e n u e s a n d O t h e r C h a n g e s i n N e t A s s e t s Go v e r n m e n t a l a c t i v i t i e s : Ta x e s Pr o p e r t y t a x e s 42 9 , 4 0 9 $ 41 9 , 4 0 1 $ 43 4 , 1 7 6 $ 46 7 , 8 0 6 $ 41 1 , 8 6 6 $ 39 7 , 2 0 0 $ 39 7 , 4 2 4 $ 40 0 , 8 9 6 $ 40 0 , 7 8 0 $ Sa l e s t a x 1, 1 7 1 , 5 9 0 1, 1 1 3 , 3 2 2 1, 1 3 2 , 5 1 9 1, 1 3 2 , 0 8 3 1, 1 4 8 , 1 3 6 1, 0 6 5 , 8 4 3 1, 1 7 7 , 0 8 9 1, 1 5 6 , 1 6 5 1, 0 5 6 , 3 8 7 Bu s i n e s s l i c e n s e t a x 45 4 , 6 3 6 45 6 , 5 3 6 43 7 , 7 9 7 45 2 , 6 7 2 41 3 , 4 0 0 40 3 , 8 1 8 19 2 , 3 4 4 18 3 , 8 2 4 16 7 , 9 9 1 Me a l s t a x 86 4 , 4 4 8 84 2 , 3 8 4 86 1 , 2 8 6 86 0 , 9 6 1 80 6 , 9 1 6 71 5 , 2 6 7 58 4 , 9 9 8 53 9 , 3 4 8 51 2 , 7 9 2 Ot h e r t a x e s 73 4 , 3 1 6 75 5 , 8 0 8 38 6 , 7 0 3 33 8 , 2 9 2 39 7 , 0 1 4 42 3 , 1 4 5 41 0 , 1 2 1 38 0 , 0 7 8 35 1 , 2 1 8 Ut i l i t i e s t a x 80 1 , 2 6 4 80 3 , 0 4 4 79 5 , 2 6 8 80 4 , 8 1 2 79 0 , 3 0 8 71 9 , 2 8 9 73 4 , 2 7 9 55 8 , 7 0 4 47 5 , 0 0 6 In te r g o v e r n m e n t a l r e v e n u e n o t r e s t r i c t e d 74 8 , 8 1 5 66 4 , 9 7 5 63 1 , 3 2 0 67 9 , 0 0 9 75 5 , 5 9 9 43 7 , 4 9 6 33 4 , 6 4 9 30 8 , 3 0 7 24 5 , 9 4 1 In ve s t m e n t e a r n i n g s n o t r e s t r i c t e d 1, 9 0 4 3, 1 8 7 28 , 9 1 7 11 2 , 6 7 2 21 0 , 1 9 3 14 7 , 3 6 8 80 , 8 3 7 36 , 6 9 4 59 , 8 7 0 Re s t r i c t e d i n v e s t m e n t e a r n i n g s - - 18 7 11 , 0 8 7 14 5 , 5 5 4 11 3 , 3 1 7 37 , 9 0 3 - - Ga i n o n d i s p o s a l o f p r o p e r t y - - - - - 51 , 3 6 6 - 48 , 1 0 3 - Ot h e r 81 , 3 7 3 29 , 2 7 5 16 , 0 3 8 77 , 0 7 7 48 , 7 0 2 27 , 7 7 4 45 , 3 8 4 29 , 9 6 9 66 , 8 9 1 Tr a n s f e r s - 78 , 4 6 6 12 6 , 0 1 8 11 3 , 4 8 6 61 , 9 0 0 7, 5 0 0 - - - To t a l g o v e r n m e n t a l a c t i v i t i e s 5, 2 8 7 , 7 5 5 5, 1 6 6 , 3 9 8 4, 8 5 0 , 2 2 9 5, 0 4 9 , 9 5 7 5, 1 8 9 , 5 8 8 4, 5 0 9 , 3 8 3 3, 9 9 5 , 0 2 8 3, 6 4 2 , 0 8 8 3, 3 3 6 , 8 7 6 Bu s i n e s s - t y p e a c t i v i t i e s : In ve s t m e n t e a r n i n g s n o t r e s t r i c t e d 1, 1 7 4 1, 8 2 4 16 , 7 1 9 67 , 7 7 2 11 0 , 0 2 4 76 , 8 5 5 42 , 6 6 9 21 , 4 2 5 34 , 9 7 7 Re s t r i c t e d i n v e s t m e n t e a r n i n g s 42 7 1, 7 2 7 26 , 8 7 3 47 , 2 3 4 - - - - - Ot h e r 27 5 , 2 0 8 29 8 , 5 9 1 23 6 , 1 9 8 25 0 , 8 3 8 10 3 , 2 8 4 53 , 0 1 1 52 , 3 0 0 49 , 0 4 0 10 4 , 5 5 2 Tr a n s f e r s - (7 8 , 4 6 6 ) (1 2 6 , 0 1 8 ) (1 1 3 , 4 8 6 ) (6 1 , 9 0 0 ) (7 , 5 0 0 ) - - - To t a l b u s i n e s s - t y p e a c t i v i t i e s 27 6 , 8 0 9 22 3 , 6 7 6 15 3 , 7 7 2 25 2 , 3 5 8 15 1 , 4 0 8 12 2 , 3 6 6 94 , 9 6 9 70 , 4 6 5 13 9 , 5 2 9 To t a l p r i m a r y g o v e r n m e n t 5, 5 6 4 , 5 6 4 $ 5, 3 9 0 , 0 7 4 $ 5, 0 0 4 , 0 0 1 $ 5, 3 0 2 , 3 1 5 $ 5, 3 4 0 , 9 9 6 $ 4, 6 3 1 , 7 4 9 $ 4, 0 8 9 , 9 9 7 $ 3, 7 1 2 , 5 5 3 $ 3, 4 7 6 , 4 0 5 $ Ch a n g e s i n N e t A s s e t s Go v e r n m e n t a l a c t i v i t i e s (3 1 4 , 8 7 9 ) $ (8 9 2 , 8 6 4 ) $ (1 , 1 9 9 , 2 6 0 ) $ (7 1 7 , 0 6 8 ) $ 45 7 , 1 7 6 $ 43 6 , 3 9 5 $ 87 4 , 0 5 0 $ 25 2 , 2 8 2 $ (6 0 , 9 9 8 ) $ Bu s i n e s s - t y p e a c t i v i t i e s (5 3 , 9 9 9 ) (5 7 5 , 6 1 7 ) (4 4 2 , 2 3 3 ) (6 4 0 , 3 7 3 ) (5 6 1 , 6 7 5 ) (1 1 5 , 3 3 0 ) (2 0 6 , 1 4 9 ) (3 1 9 , 1 5 6 ) (3 5 , 8 4 1 ) To t a l p r i m a r y g o v e r n m e n t (3 6 8 , 8 7 8 ) $ (1 , 4 6 8 , 4 8 1 ) $ (1 , 6 4 1 , 4 9 3 ) $ (1 , 3 5 7 , 4 4 1 ) $ (1 0 4 , 4 9 9 ) $ 32 1 , 0 6 5 $ 66 7 , 9 0 1 $ (6 6 , 8 7 4 ) $ (9 6 , 8 3 9 ) $ No t e : W a t e r a n d s e w e r c h a r g e s f o r s e r v i c e i s t h e T o w n ' s m o s t s i g n i f i c a n t s o u r c e o f o w n - s o u r c e r e v e n u e . 54 TA B L E 3 20 1 0 2 0 0 9 2 0 0 8 2 0 0 7 2 0 0 6 2 0 0 5 2 0 0 4 2 0 0 3 2 0 0 2 Pr e - G A S B 5 4 i m pl e m en t a t i o n : Ge n e r a l F u n d Re s e r v e d 36 1 , 0 9 0 $ 27 2 , 6 4 5 $ 31 4 , 9 0 2 $ 2, 8 3 5 , 0 0 3 $ 4, 6 2 5 , 9 7 9 $ 3, 9 9 9 , 5 0 5 $ 51 3 , 0 2 3 $ 95 0 , 8 1 4 $ 1, 6 8 5 , 1 7 5 $ Un r e s e r v e d 1, 3 2 2 , 0 9 5 1, 6 9 8 , 8 5 1 2, 4 3 9 , 6 2 5 1, 7 4 7 , 3 4 8 2, 9 2 7 , 9 8 0 3, 0 1 1 , 3 4 6 3, 1 0 1 , 3 2 3 3, 1 3 3 , 0 8 9 3, 1 2 6 , 6 0 0 To t a l g e n e r a l f u n d 1, 6 8 3 , 1 8 5 $ 1, 9 7 1 , 4 9 6 $ 2, 7 5 4 , 5 2 7 $ 4, 5 8 2 , 3 5 1 $ 7, 5 5 3 , 9 5 9 $ 7, 0 1 0 , 8 5 1 $ 3, 6 1 4 , 3 4 6 $ 4, 0 8 3 , 9 0 3 $ 4, 8 1 1 , 7 7 5 $ 20 1 1 Po s t - G A S B 5 4 i m pl e m en t a t i o n : Ge n e r a l F u n d No n s p e n d a b l e 66 , 3 4 1 $ Re s t r i c t e d 37 2 , 2 7 1 As s i g n e d 10 0 , 0 0 0 Un a s s i g n e d 1, 1 9 6 , 7 8 9 To t a l g e n e r a l f u n d 1, 7 3 5 , 4 0 1 $ No t e : 2 0 1 1 w a s t h e f i r s t y e a r o f i m pl e m en t i n g G A S B 5 4 w h i c h r e v i s e d f u n d b a l a n c e c l a s s i f i c a t i o n s . TO W N O F V I N T O N , V I R G I N I A FU N D B A L A N C E S - G O V E R N M E N T A L F U N D La s t T e n F i s c a l Y e a r s (m od i f i e d a c c r u a l b a s i s o f a c c o u n t i n g ) 55 TA B L E 4 20 1 1 2 0 1 0 2 0 0 9 2 0 0 8 2 0 0 7 2 0 0 6 2 0 0 5 2 0 0 4 2 0 0 3 2 0 0 2 Re v e n u e s Ta x e s 4, 4 6 7 , 1 5 8 $ 4, 3 4 5 , 9 4 7 $ 4, 0 4 9 , 5 1 3 $ 4, 0 8 4 , 5 8 6 $ 3, 9 1 4 , 2 0 5 $ 3, 7 2 6 , 4 5 6 $ 3, 4 8 8 , 3 5 4 $ 3, 1 9 9 , 3 4 2 $ 2, 8 9 7 , 0 0 3 $ 2, 8 6 3 , 0 3 0 $ Pe r m i t s , p r i v i l e g e f e e s , a n d r e g u l a t o r y l i c e n s e s 10 , 2 4 2 12 , 1 1 6 11 , 3 2 1 14 , 0 3 5 10 , 8 5 2 10 , 0 2 9 9, 0 0 6 9, 1 6 0 7, 4 4 6 8, 3 4 2 Fi n e s a n d f o r f e i t u r e s 10 2 , 5 6 6 94 , 5 4 8 11 6 , 4 6 3 10 2 , 7 2 0 10 3 , 8 1 6 93 , 0 2 2 76 , 2 9 4 92 , 7 9 9 96 , 0 0 1 72 , 0 4 6 Re v e n u e f r o m u s e o f m o n e y a n d p r o p e r t y 11 8 , 5 6 0 15 6 , 5 3 3 20 1 , 3 4 1 29 8 , 3 6 9 52 7 , 3 4 3 43 6 , 3 0 3 30 1 , 2 4 0 22 8 , 2 6 0 25 4 , 9 9 4 31 8 , 0 0 0 Ch a r g e s f o r s e r v i c e s 35 5 , 6 0 6 32 8 , 1 1 6 31 9 , 2 9 3 27 0 , 5 2 1 19 0 , 5 1 3 32 3 , 8 8 2 35 8 , 3 7 8 51 8 , 4 9 3 29 0 , 3 2 5 23 1 , 7 7 5 Ot h e r 16 , 8 6 0 3, 5 6 2 4, 6 3 8 4, 7 1 8 10 , 7 4 0 5, 1 7 5 95 4 6, 3 0 2 13 , 0 0 9 6, 1 2 6 In t e r g o v e r n m e n t a l 2, 3 0 3 , 7 3 2 2, 1 7 0 , 7 9 0 2, 2 3 0 , 6 0 2 2, 5 9 0 , 5 7 5 3, 4 9 1 , 1 7 9 1, 9 0 3 , 5 9 9 2, 4 6 3 , 6 2 2 1, 6 0 2 , 9 4 4 1, 4 7 8 , 5 2 4 1, 4 0 0 , 6 4 0 To ta l r e v e n u e s 7, 3 7 4 , 7 2 4 7, 1 1 1 , 6 1 2 6, 9 3 3 , 1 7 1 7, 3 6 5 , 5 2 4 8, 2 4 8 , 6 4 8 6, 4 9 8 , 4 6 6 6, 6 9 7 , 8 4 8 5, 6 5 7 , 3 0 0 5, 0 3 7 , 3 0 2 4, 8 9 9 , 9 5 9 Ex p e n d i t u r e s Ge n e r a l g o v e r n m e n t 62 8 , 3 8 6 64 1 , 8 5 3 65 2 , 3 5 9 69 5 , 9 1 6 66 0 , 9 3 2 62 9 , 6 5 0 62 5 , 1 7 0 54 6 , 2 4 8 58 7 , 7 0 0 61 8 , 0 1 5 Pu b l i c s a f e t y 3, 2 5 0 , 5 9 0 3, 2 0 0 , 8 5 9 3, 2 5 9 , 9 8 0 3, 3 7 9 , 9 2 4 3, 2 0 9 , 7 2 0 2, 8 1 3 , 6 6 1 2, 5 1 4 , 2 6 3 2, 5 2 0 , 5 8 4 2, 2 0 9 , 6 0 0 1, 8 8 4 , 6 8 6 Pu b l i c w o r k s 1, 9 9 0 , 3 8 1 2, 1 6 4 , 3 2 8 2, 2 1 9 , 2 2 6 2, 3 5 7 , 0 4 0 1, 7 7 9 , 4 9 0 1, 4 7 9 , 8 9 9 1, 4 3 8 , 8 8 6 1, 4 4 0 , 8 8 8 1, 4 3 4 , 8 1 1 1, 3 3 7 , 5 1 8 Pa r k s , r e c r e a t i o n , a n d c u l t u r a l 55 1 , 2 4 0 57 4 , 2 1 5 57 1 , 2 9 1 51 1 , 4 8 1 29 4 , 2 2 1 44 5 , 6 1 2 53 5 , 1 3 9 52 7 , 1 5 7 52 4 , 5 1 4 44 3 , 4 2 7 Co m m u n i t y d e v e l o p m e n t 33 3 , 6 1 7 36 5 , 3 6 6 31 6 , 2 6 7 22 1 , 7 6 4 21 7 , 2 6 3 20 6 , 3 7 9 22 2 , 7 8 0 22 3 , 2 0 4 19 3 , 6 0 1 16 6 , 9 9 3 Ca p i t a l p r o j e c t s 11 4 , 3 0 9 90 , 5 7 0 38 4 , 9 8 2 1, 9 6 2 , 8 7 3 5, 8 9 9 , 5 4 2 90 7 , 1 4 7 1, 3 3 9 , 7 9 5 1, 0 5 7 , 4 3 6 86 5 , 7 9 1 82 9 , 6 1 4 De b t s e r v i c e : Pr i n c i p a l 26 0 , 5 0 1 25 3 , 5 0 0 24 1 , 5 8 5 20 8 , 4 0 4 15 4 , 0 2 1 14 8 , 2 0 8 46 , 6 1 6 59 , 1 2 6 55 , 1 0 6 33 , 7 2 2 In t e r e s t 19 5 , 6 0 8 20 5 , 1 8 9 21 2 , 0 9 0 20 8 , 9 1 2 20 2 , 4 9 5 15 7 , 9 0 5 99 , 7 5 8 5, 2 9 5 7, 2 6 4 6, 0 9 1 De b t i s s u a n c e c o s t s - - - 1, 8 5 6 - - - - - - To ta l e x p e n d i t u r e s 7, 3 2 4 , 6 3 2 7, 4 9 5 , 8 8 0 7, 8 5 7 , 7 8 0 9, 5 4 8 , 1 7 0 12 , 4 1 7 , 6 8 4 6 , 7 8 8 , 4 6 1 6, 8 2 2 , 4 0 7 6, 3 7 9 , 9 3 8 5, 8 7 8 , 3 8 7 5, 3 2 0 , 0 6 6 Ex c e s s ( d e f i c i e n c y ) o f r e v e n u e s o v e r e x p e n d i t u r e s 50 , 0 9 2 (3 8 4 , 2 6 8 ) (9 2 4 , 6 0 9 ) (2 , 1 8 2 , 6 4 6 ) (4 , 1 6 9 , 0 3 6 ) (2 8 9 , 9 9 5 ) (1 2 4 , 5 5 9 ) (7 2 2 , 6 3 8 ) (8 4 1 , 0 8 5 ) (4 2 0 , 1 0 7 ) Ot h e r F i n a n c i n g S o u r c e s ( U s e s ) Is s u a n c e o f d e b t - - - 2 2 7 , 5 0 0 1, 0 4 5 , 0 0 0 75 5 , 0 0 0 3, 5 1 5 , 0 0 0 - 1 1 3 , 2 1 3 - Pr e m i u m o n i s s u a n c e o f d e b t - - - - 4 5 , 5 5 4 19 , 2 3 7 6, 0 6 4 - - - Pr o c e e d s f r o m s a l e o f c a p i t a l a s s e t s 2, 1 2 4 17 , 4 9 1 15 , 5 6 0 13 , 8 3 6 4, 8 2 5 51 , 3 6 6 - 2 5 3 , 0 8 1 - 1 0 , 3 0 6 Tr a n s f e r s i n - 7 8 , 4 6 6 12 6 , 0 1 8 11 3 , 4 8 6 61 , 9 0 0 7, 5 0 0 - - - - To ta l o t h e r f i n a n c i n g s o u r c e s 2, 1 2 4 95 , 9 5 7 14 1 , 5 7 8 35 4 , 8 2 2 1, 1 5 7 , 2 7 9 83 3 , 1 0 3 3, 5 2 1 , 0 6 4 25 3 , 0 8 1 11 3 , 2 1 3 10 , 3 0 6 Ne t c h a n g e i n f u n d b a l a n c e s 52 , 2 1 6 $ (2 8 8 , 3 1 1 ) $ (7 8 3 , 0 3 1 ) $ (1 , 8 2 7 , 8 2 4 ) $ (3 , 0 1 1 , 7 5 7 ) $ 54 3 , 1 0 8 $ 3, 3 9 6 , 5 0 5 $ (4 6 9 , 5 5 7 ) $ (7 2 7 , 8 7 2 ) $ (4 0 9 , 8 0 1 ) $ De b t s e r v i c e a s a p e r c e n t a g e o f n o n c a p i t a l e x p e n d i t u r e s 6. 3 3 % 6. 1 9 % 6. 0 7 % 5. 5 3 % 5. 4 7 % 5. 2 0 % 2. 6 7 % 1. 2 1 % 1. 2 4 % 0. 8 9 % TO W N O F V I N T O N , V I R G I N I A CH A N G E S I N F U N D B A L A N C E S - G O V E R N M E N T A L F U N D La s t T e n F i s c a l Y e a r s (m o d i f i e d a c c r u a l b a s i s o f a c c o u n t i n g ) 56 TA B L E 5 Pu b l i c To t a l Fi s c a l Re a l Pe r s o n a l Ma c h i n e r y Se r v i c e Mo b i l e As s e s s e d Ye a r Es t a t e Pr o p e r t y an d T o o l s Co r p o r a t i o n Ho m e s Va l u e 20 1 1 4 6 9 , 4 9 9 , 1 0 0 $ 43 , 3 9 2 , 2 7 0 $ 7, 2 3 2 , 7 0 0 $ 15 , 1 9 1 , 1 1 0 $ 47 , 7 4 0 $ 5 3 5 , 3 6 2 , 9 2 0 $ 20 1 0 4 6 8 , 4 7 0 , 6 0 0 42 , 8 0 3 , 5 4 5 7, 3 0 3 , 0 0 0 15 , 6 3 2 , 4 6 0 48 , 1 9 0 5 3 4 , 2 5 7 , 7 9 5 20 0 9 4 6 3 , 0 1 4 , 5 0 0 47 , 5 5 6 , 1 1 0 7, 1 9 1 , 8 3 5 14 , 9 3 3 , 5 6 9 51 , 6 7 5 5 3 2 , 7 4 7 , 6 8 9 20 0 8 4 4 7 , 9 2 6 , 3 0 0 42 , 8 5 8 , 0 1 2 7, 0 6 8 , 1 1 5 13 , 0 7 4 , 6 4 4 56 , 5 0 0 5 1 0 , 9 8 3 , 5 7 1 20 0 7 4 2 9 , 8 1 7 , 4 0 0 40 , 6 9 1 , 1 5 5 7, 6 6 5 , 9 8 0 14 , 3 8 7 , 4 2 2 60 , 7 7 5 4 9 2 , 6 2 2 , 7 3 2 20 0 6 4 0 0 , 4 2 4 , 3 0 0 40 , 8 8 9 , 1 3 5 7, 2 3 1 , 5 9 5 14 , 0 4 1 , 1 2 2 66 , 3 4 0 4 6 2 , 6 5 2 , 4 9 2 20 0 5 3 7 7 , 4 9 3 , 2 0 0 39 , 3 8 2 , 2 7 5 7, 2 7 3 , 1 0 5 14 , 1 8 6 , 8 4 8 78 , 4 2 5 4 3 8 , 4 1 3 , 8 5 3 20 0 4 3 5 7 , 8 9 2 , 1 0 0 36 , 3 2 2 , 1 1 0 7, 1 7 9 , 9 3 0 16 , 5 4 3 , 3 0 7 75 , 5 9 5 4 1 8 , 0 1 3 , 0 4 2 20 0 3 3 7 8 , 1 4 6 , 5 3 5 39 , 2 3 2 , 9 2 8 6, 0 9 8 , 1 2 5 16 , 0 5 4 , 3 1 7 89 , 9 6 5 4 3 9 , 6 2 1 , 8 7 0 20 0 2 3 5 9 , 5 2 7 , 5 4 0 35 , 9 5 5 , 9 0 8 6, 7 4 0 , 6 5 3 12 , 8 9 5 , 4 9 1 91 , 0 6 0 4 1 5 , 2 1 0 , 6 5 2 No t e s : A s s e s s e d v a l u e e q u a l s a c t u a l v a l u e . P r o p e r t y i s a s s e s s e d a t f u l l m a r k e t v a l u e a n d i s r e a s s e s s e d e v e r y y e a r . TO W N O F V I N T O N , V I R G I N I A AS S E S S E D V A L U E A N D A C T U A L V A L U E O F T A X A B L E P R O P E R T Y ( 1 ) La s t T e n F i s c a l Y e a r s 57 TA B L E 6 Pe r c e n t a g e Pe r c e n t a g e of T o t a l T o w n of T o t a l T o w n Cu s t o m e r Re v e n u e Ra n k Re v e n u e R e v e n u e Ra n k Re v e n u e Pr e c i s i o n F a b r i c s G r o u p , I n c . 22 7 , 2 5 6 $ 1 7. 9 9 % 5 4 , 8 9 4 $ 1 4. 5 4 % Ar a m a r k 90 , 7 1 6 2 3. 1 9 % 5 4 , 2 0 8 2 4. 4 8 % Ca r d i n a l G l a s s 67 , 6 6 2 3 2. 3 8 % - N / A N/ A Th e B e r k s h i r e 55 , 0 7 2 4 1. 9 4 % 2 3 , 4 1 8 3 1. 9 4 % Bl u e R i d g e M a n o r A p a r t m e n t s 38 , 3 3 3 5 1. 3 5 % 1 6 , 3 4 1 6 1. 3 5 % RG M P r o p e r t i e s 37 , 5 3 5 6 1. 3 2 % 1 7 , 3 9 3 5 1. 4 4 % Cl e a r v i e w M a n o r 33 , 8 8 0 7 1. 1 9 % 9 , 3 0 4 7 0. 7 7 % Ro a n o k e C o u n t y S c h o o l s 28 , 0 0 9 8 0. 9 8 % 1 8 , 4 5 8 4 1. 5 3 % Ri c h a r d D i c k e r s o n / R L M a n s a r d S q 17 , 7 9 4 9 0. 6 3 % 9 , 1 7 9 8 0. 7 6 % Am e r i c a n E f f i c i e n c y 8, 1 9 5 10 0. 2 9 % 4 , 6 3 8 10 0. 3 8 % Ca r d i n a l C l e a n C e n t e r 10 , 2 8 9 11 0. 3 6 % 7 , 7 1 9 9 0. 6 4 % 61 4 , 7 4 1 $ 21 5 , 5 5 2 $ 1) F Y 2 0 1 1 % w a s b a s e d o n t o t a l w a t e r a n d s e w e r r e v e n u e o f $ 2 , 8 4 4 , 0 0 4 2) F Y 2 0 0 2 % w a s b a s e d o n t o t a l w a t e r a n d s e w e r r e v e n u e o f $ 1 , 2 0 8 , 9 8 0 Fi s c a l Y e a r 2 0 1 1 Fi s c a l Y e a r 2 0 0 2 TO W N O F V I N T O N , V I R G I N I A PR I N C I P A L W A T E R A N D S E W E R C U S T O M E R S Cu r r e n t Y e a r a n d N i n e Y e a r s A g o 58 TA B L E 7 Fi s c a l Ye a r Ta x e s L e v i e d Co l l e c t i o n s En d e d fo r t h e Pe r c e n t a g e in S u b s e q u e n t Pe r c e n t a g e Ju n e 3 0 , Fi s c a l Y e a r Am o u n t of L e v y Ye a r s Am o u n t of L e v y 20 1 1 63 4 , 4 4 5 $ 59 1 , 7 4 3 $ 93 . 2 7 % - $ 59 1 , 7 4 3 $ 93 . 2 7 % 20 1 0 63 7 , 3 9 2 60 7 , 7 0 1 95 . 3 4 % 13 , 9 5 0 62 1 , 6 5 1 97 . 5 3 % 20 0 9 60 9 , 4 0 2 61 9 , 5 3 9 10 1 . 6 6 % 16 , 2 2 9 63 5 , 7 6 8 10 4 . 3 3 % 20 0 8 63 4 , 9 5 2 65 5 , 4 0 4 10 3 . 2 2 % 5, 9 4 6 66 1 , 3 5 0 10 4 . 1 6 % 20 0 7 60 5 , 5 9 9 60 9 , 4 5 4 10 0 . 6 4 % 10 , 0 2 4 61 9 , 4 7 8 10 2 . 2 9 % 20 0 6 59 3 , 3 8 2 59 4 , 8 6 6 10 0 . 2 5 % 5, 7 6 5 60 0 , 6 3 1 10 1 . 2 2 % 20 0 5 58 0 , 5 8 6 56 8 , 6 4 5 97 . 9 4 % 4, 7 6 5 57 3 , 4 1 0 98 . 7 6 % 20 0 4 54 3 , 1 4 4 56 2 , 5 1 0 10 3 . 5 7 % 9, 5 3 1 57 2 , 0 4 1 10 5 . 3 2 % 20 0 3 55 5 , 7 5 4 57 2 , 9 9 2 10 3 . 1 0 % 7, 4 5 0 58 0 , 4 4 2 10 4 . 4 4 % 20 0 2 61 5 , 7 7 9 58 7 , 0 1 2 95 . 3 3 % 6, 0 0 1 59 3 , 0 1 3 96 . 3 0 % So u r c e : De t a i l e d T o w n p r o p e r t y t a x r e c o r d s . No t e : Am o u n t c o l l e c t e d i n c l u d e s a n y p e n a l t i e s a n d i n t e r e s t o n l a t e p a y m e n t s . TO W N O F V I N T O N , V I R G I N I A PR O P E R T Y T A X L E V I E S A N D C O L L E C T I O N S La s t T e n F i s c a l Y e a r s To t a l C o l l e c t i o n s t o D a t e Co l l e c t e d w i t h i n t h e Fi s c a l Y e a r o f t h e L e v y 59 TABLE 8 Fiscal Year Water Sewer Water Sewer 2011 15.92$ 23.39$ 7.97$ 11.68$ 2010 13.84$ 20.34$ 6.93$ 10.16$ 2009 12.59$ 18.49$ 6.30$ 9.24$ 2008 12.59$ 18.49$ 6.30$ 9.24$ 2007 11.77$ 15.84$ 5.89$ 7.92$ 2006 11.77$ 15.84$ 5.89$ 7.92$ 2005 11.00$ 13.20$ 5.50$ 6.60$ 2004 10.00$ 12.00$ 5.00$ 6.00$ 2003 10.00$ 12.00$ 5.00$ 6.00$ 2002 10.00$ 12.00$ 5.00$ 6.00$ Note: Minimum charge for water and sewer resiential and commerical service is based on standard 5/8" meter 1 Residential Minimum Charges are billed on a bi-monthly basis 2 Commercial Minimum Charges are billed on a monthly basis Residential 1 Commercial 2 First 3,000 Gallons or Less First 1,500 Gallons or Less TOWN OF VINTON, VIRGINIA WATER AND SEWER RATES Last Ten Fiscal Years 60 TA B L E 9 20 1 1 2 0 1 0 2 0 0 9 2 0 0 8 2 0 0 7 2 0 0 6 20 0 5 20 0 4 2 0 0 3 20 0 2 De b t l i m i t 53 , 5 3 6 , 2 9 2 $ 53 , 4 2 5 , 7 8 0 $ 53 , 2 7 4 , 7 6 9 $ 44 , 7 9 2 , 6 3 0 $ 42 , 9 8 1 , 7 4 0 $ 40 , 0 4 2 , 3 0 0 $ 37 , 7 5 7 , 1 6 3 $ 35 , 7 9 6 , 7 7 0 $ 37 , 8 2 3 , 6 5 0 $ 35 , 9 6 1 , 8 6 0 $ To t a l n e t d e b t a p p l i c a b l e t o l i m i t 7, 1 0 3 , 8 0 8 7, 5 4 8 , 0 2 5 7, 9 7 8 , 1 6 0 8, 3 9 4 , 4 9 1 8, 7 5 3 , 6 2 5 7, 1 4 0 , 2 2 8 5, 6 4 3 , 9 2 5 1, 7 7 2 , 9 0 6 88 1 , 8 6 8 94 5 , 3 4 8 Le g a l d e b t m a r g i n 46 , 4 3 2 , 4 8 4 $ 45 , 8 7 7 , 7 5 5 $ 45 , 2 9 6 , 6 0 9 $ 36 , 3 9 8 , 1 3 9 $ 34 , 2 2 8 , 1 1 5 $ 32 , 9 0 2 , 0 7 2 $ 32 , 1 1 3 , 2 3 8 $ 34 , 0 2 3 , 8 6 4 $ 36 , 9 4 1 , 7 8 2 $ 35 , 0 1 6 , 5 1 2 $ To t a l n e t d e b t a p p l i c a b l e t o t h e l i m i t as a p e r c e n t a g e o f d e b t l i m i t 13 . 2 7 % 1 4 . 1 3 % 1 4 . 9 8 % 1 8 . 7 4 % 2 0 . 3 7 % 1 7 . 8 3 % 1 4 . 9 5 % 4. 9 5 % 2 . 3 3 % 2. 6 3 % Le g a l D e b t M a r g i n C a l c u l a t i o n f o r F i s c a l Y e a r 2 0 1 1 As s e s s e d v a l u e 53 5 , 3 6 2 , 9 2 0 $ De b t l i m i t ( 1 0 % o f a s s e s s e d v a l u e ) 53 , 5 3 6 , 2 9 2 $ Le s s d e b t a p p l i c a b l e t o l i m i t : Ge n e r a l o b l i g a t i o n b o n d s 7, 1 0 3 , 8 0 8 Le g a l d e b t m a r g i n 46 , 4 3 2 , 4 8 4 $ TO W N O F V I N T O N , V I R G I N I A LE G A L D E B T M A R G I N I N F O R M A T I O N La s t T e n F i s c a l Y e a r s 61 TA B L E 1 0 Pe r c e n t a g e o f Ac t u a l V a l u e Fi s c a l Ge n e r a l of T a x a b l e Pe r Ca p i t a l Re v e n u e Ye a r Bo n d e d D e b t Pr o p e r t y Ca p i t a Le a s e s Bo n d s 20 1 1 2, 8 4 5 , 0 0 0 $ 0. 5 3 % 35 1 $ 47 , 5 9 5 $ 1, 4 3 5 , 0 0 0 $ 20 1 0 2, 9 9 0 , 0 0 0 0. 5 6 % 38 3 93 , 0 9 6 1, 5 0 5 , 0 0 0 20 0 9 3, 1 3 0 , 0 0 0 0. 5 9 % 39 7 13 6 , 5 9 5 1, 5 7 5 , 0 0 0 20 0 8 3, 2 6 5 , 0 0 0 0. 6 4 % 41 3 17 8 , 1 8 0 1, 6 4 0 , 0 0 0 20 0 7 3, 3 6 0 , 0 0 0 0. 6 8 % 42 4 4, 0 8 4 1, 7 0 0 , 0 0 0 20 0 6 2, 4 1 0 , 0 0 0 0. 5 2 % 31 0 28 , 1 0 5 1, 7 3 5 , 0 0 0 20 0 5 2, 5 0 0 , 0 0 0 0. 5 7 % 32 1 51 , 3 1 3 1, 0 1 5 , 0 0 0 20 0 4 - 0. 0 0 % - 97 , 9 2 9 - 20 0 3 - 0. 0 0 % - 15 7 , 0 5 5 - 20 0 2 - 0. 0 0 % - 98 , 9 4 8 - To t a l P e r c e n t a g e o f Fi s c a l Ge n e r a l Re v e n u e Pr i m ar y Pe r s o n a l Pe r Ye a r Bo n d e d D e b t Bo n d s Go v e r n m en t In c o m e Ca p i t a 20 1 1 4, 2 5 8 , 8 0 8 $ 2, 5 5 5 , 0 0 0 $ 11 , 1 4 1 , 4 0 3 $ 24 4 . 2 3 % 1, 3 7 6 20 1 0 4, 5 5 8 , 0 2 6 2, 6 5 5 , 0 0 0 11 , 8 0 1 , 1 2 2 25 8 . 6 9 % 1, 5 1 0 20 0 9 4, 8 4 8 , 1 6 0 2, 7 5 0 , 0 0 0 12 , 4 3 9 , 7 5 5 27 2 . 6 9 % 1, 5 7 9 20 0 8 5, 1 2 9 , 4 9 1 2, 7 5 0 , 0 0 0 12 , 9 6 2 , 6 7 1 27 2 . 8 5 % 1, 6 4 0 20 0 7 5, 3 9 3 , 6 2 5 - 10 , 4 5 7 , 7 0 9 24 2 . 9 9 % 1, 3 2 0 20 0 6 4, 7 3 0 , 2 2 8 - 8, 9 0 3 , 3 3 3 21 5 . 6 7 % 1, 1 4 4 20 0 5 3, 1 4 3 , 9 2 5 - 6, 7 1 0 , 2 3 8 16 9 . 6 2 % 86 2 20 0 4 1, 7 7 2 , 9 0 6 - 1, 8 7 0 , 8 3 5 48 . 6 6 % 24 0 20 0 3 88 1 , 8 6 8 - 1, 0 3 8 , 9 2 3 28 . 3 1 % 13 4 20 0 2 94 5 , 3 4 8 - 1, 0 4 4 , 2 9 6 28 . 5 8 % 13 4 TO W N O F V I N T O N , V I R G I N I A RA T I O S O F O U T S T A N D I N G D E B T B Y T Y P E La s t T e n F i s c a l Y e a r s Go v e r n m en t a l A c t i v i t i e s – Ge n e r a l B o n d e d D e b t Ot h e r G o v e r n m en t a l Ac t i v i t i e s D e b t Bu s i n e s s - t y p e A c t i v i t i e s 62 TA B L E 1 1 Le s s : Ne t Fi s c a l Gr o s s Op e r a t i n g Av a i l a b l e Ye a r Re v e n u e Ex p e n s e s Re v e n u e Pr i n c i p a l In t e r e s t Co v e r a g e 20 1 1 2 , 9 4 8 , 9 6 5 $ 3, 0 0 2 , 9 6 4 $ (5 3 , 9 9 9 ) $ 39 9 , 2 1 8 $ 22 5 , 6 8 9 $ (0 . 0 9 ) 20 1 0 2 , 7 4 1 , 7 7 6 3, 2 1 9 , 4 6 6 (4 7 7 , 6 9 0 ) 38 5 , 1 3 5 19 5 , 0 3 8 (0 . 8 2 ) 20 0 9 2 , 5 6 9 , 5 4 4 3, 1 6 4 , 2 2 7 (5 9 4 , 6 8 3 ) 28 1 , 3 3 1 21 3 , 7 9 2 (1 . 2 0 ) 20 0 8 2 , 6 2 1 , 3 4 9 3, 1 3 4 , 2 3 6 (5 1 2 , 8 8 7 ) 27 2 , 7 8 8 22 2 , 0 3 2 (1 . 0 4 ) 20 0 7 2 , 5 3 6 , 0 7 2 3, 0 3 5 , 8 4 7 (4 9 9 , 7 7 5 ) 15 0 , 6 6 0 17 2 , 5 3 4 (1 . 5 5 ) 20 0 6 2 , 2 7 2 , 8 9 8 2, 3 8 0 , 7 2 8 (1 0 7 , 8 3 0 ) 12 3 , 9 5 2 94 , 2 8 5 (0 . 4 9 ) 20 0 5 1 , 9 6 8 , 7 9 0 2, 1 7 4 , 9 3 9 (2 0 6 , 1 4 9 ) 69 , 5 9 0 42 , 3 4 7 (1 . 8 4 ) 20 0 4 1 , 8 7 8 , 2 4 0 2, 1 9 7 , 3 9 6 (3 1 9 , 1 5 6 ) 75 , 0 9 1 23 , 8 8 6 (3 . 2 2 ) 20 0 3 N / A N/ A N/ A N/ A N/ A N/ A 20 0 2 N / A N/ A N/ A N/ A N/ A N/ A N/ A - T h e T o w n d o e s n o t h a v e t h i s i n f o r m a t i o n a v a i l a b l e p r i o r t o f i s c a l y e a r 2 0 0 4 . La s t T e n F i s c a l Y e a r s PL E D G E D R E V E N U E C O V E R A G E TO W N O F V I N T O N , V I R G I N I A De b t S e r v i c e No t e s : D e t a i l s r e g a r d i n g t h e T o w n ’s o u t s t a n d i n g d e b t c a n b e f o u n d i n t h e N o t e s t o F i n a n c i a l S t a t e m e n t s . 63 TA B L E 1 2 Fi s c a l To t a l Pe r C a p i t a Pu b l i c Ye a r Pe r s o n a l Pe r s o n a l Sc h o o l Un e m p l o y m e n t En d e d ( 1 ) Po p u l a t i o n ( 2 ) In c o m e ( 3 ) I n c o m e ( 3 ) E n r o l l m e n t ( 3 ) Ra t e ( 3 ) 20 1 1 8, 0 9 8 4, 5 6 1 , 7 9 1 $ 39 , 3 1 5 $ 14 , 2 5 9 5. 7 0 % 20 1 0 7, 8 1 4 4, 5 6 1 , 7 9 1 39 , 3 1 5 14 , 4 7 4 6. 3 0 % 20 0 9 7, 8 7 6 4, 5 6 1 , 7 9 1 39 , 3 1 5 14 , 6 5 0 4. 6 0 % 20 0 8 7, 9 0 5 4, 7 5 0 , 9 1 6 41 , 0 1 9 14 , 8 0 2 2. 8 0 % 20 0 7 7, 9 2 2 4, 3 0 3 , 7 6 1 37 , 3 2 4 14 , 7 7 7 2. 6 0 % 20 0 6 7, 7 8 2 4, 1 2 8 , 1 3 7 35 , 9 7 8 14 , 7 2 8 2. 8 0 % 20 0 5 7, 7 8 2 3, 9 5 5 , 9 7 0 34 , 8 2 3 14 , 3 6 5 3. 1 0 % 20 0 4 7, 7 8 2 3, 8 4 4 , 8 5 5 34 , 2 9 6 14 , 2 7 9 2. 7 0 % 20 0 3 7, 7 8 2 3, 6 6 9 , 2 6 8 32 , 8 6 0 14 , 1 2 7 2. 5 0 % 20 0 2 7, 7 8 2 3, 6 5 4 , 1 2 8 32 , 8 8 7 13 , 9 3 0 3. 4 0 % So u r c e s : (1 ) F r o m V a S t a t , a s e r v i c e o f t h e W e l d o n C o o p e r C e n t e r f o r P u b l i c S e r v i c e . (4 ) V i r g i n i a E m p l o y m e n t C o m m i s s i o n a n d t h e U . S . B u r e a u o f L a b o r S t a t i s t i c s . TO W N O F V I N T O N , V I R G I N I A DE M O G R A P H I C S T A T I S T I C S La s t T e n F i s c a l Y e a r s (2 ) P e r s o n a l I n c o m e a n d P e r C a p i t a P e r s o n a l I n c o m e f r o m t h e B u r e a u o f E c o n o m i c A n a l y s i s . L a t e s t in f o r m a t i o n a v a i l a b l e i s f o r 2 0 0 9 . (3 ) R o a n o k e C o u n t y P u b l i c S c h o o l s B u d g e t a n d S a l a r y S c a l e s 2 0 1 1 - 2 0 1 2 M a r c h 2 0 1 1 A D M t o t a l s . 64 TA B L E 1 3 Pe r c e n t a g e Pe r c e n t a g e of T o t a l T o w n of T o t a l T o w n Em p l o y e r Em p l o y e e s Ra n k Em p l o y m e n t Em p l o y e e s Ra n k Em p l o y m e n t Pr e c i s i o n F a b r i c s G r o u p , I n c . 22 3 1 6. 2 3 % 38 2 1 10 . 7 7 % Be r k s h i r e 19 5 2 5. 4 4 % 16 7 2 4. 7 1 % Kr o g e r 17 9 3 5. 0 0 % 14 5 3 4. 0 9 % Ro a n o k e C o u n t y S c h o o l B o a r d 12 4 4 3. 4 6 % 16 7 4 4. 7 1 % To w n o f V i n t o n 11 0 5 3. 0 7 % 12 2 5 3. 4 4 % Mc D o n a l d s 90 6 2. 5 1 % N / A N/ A N/ A Ar a m a r k U n i f o r m S e r v i c e s 70 7 1. 9 5 % 90 6 2. 5 4 % Fa m o u s A n t h o n y ' s 55 8 1. 5 4 % N / A N/ A N/ A Fi s c a l Y e a r 2 0 1 1 Fi s c a l Y e a r 2 0 0 2 TO W N O F V I N T O N , V I R G I N I A PR I N C I P A L E M P L O Y E R S Cu r r e n t Y e a r a n d N i n e Y e a r s A g o Fa m o u s A n t h o n y ' s 55 8 1. 5 4 % N / A N/ A N/ A La n c e r l o t 54 9 1. 5 1 % N / A N/ A N/ A Su p e r D o l l a r 32 10 0. 8 9 % N / A N/ A N/ A 1, 1 3 2 31 . 6 0 % 1, 0 7 3 30 . 2 6 % So u r c e : T o t a l T O V E m p l o y m e n t – R o a n o k e V a l l e y R e g i o n a l C o m m i s s i o n ( P l a n n i n g ) 65 TA B L E 1 4 20 1 1 2 0 1 0 2 0 0 9 2 0 0 8 2 0 0 7 2 0 0 6 2 0 0 5 2 0 0 4 2 0 0 3 2 0 0 2 Fu n c t i o n / P r o g r a m Ge n e r a l g o v e r n m e n t Ma n a g e m e n t s e r v i c e s 4 4 4 3 4 4 4 4 4 4 Fi n a n c e 5 5 5 5 5 5 6 5 5 5 Pl a n n i n g 3 3 3 3 3 3 3 3 3 3 Po l i c e Of f i c e r s 25 2 4 2 4 2 4 2 5 2 1 2 3 1 7 2 0 1 9 Ci v i l i a n s 2 1 0 1 0 1 0 7 1 1 1 1 1 2 1 0 1 0 Fi r e Fi r e f i g h t e r s a n d o f f i c e r s 9 9 9 9 9 9 9 1 0 9 7 Ot h e r p u b l i c w o r k s 34 3 3 3 3 3 2 3 4 3 1 3 2 3 1 3 0 3 2 Pa r k s , r e c r e a t i o n , a n d c u l t u r a l 3 3 3 2 2 5 1 3 1 2 1 0 1 0 To t a l 85 9 1 9 1 8 8 8 9 8 9 1 0 1 9 4 9 1 9 0 TO W N O F V I N T O N , V I R G I N I A FU L L - T I M E E Q U I V A L E N T T O W N G O V E R N M E N T E M P L O Y E E S B Y F U N C T I O N / P R O G R A M La s t T e n F i s c a l Y e a r s 66 TA B L E 1 5 20 1 1 2 0 1 0 2 0 0 9 2 0 0 8 2 0 0 7 2 0 0 6 2 0 0 5 2 0 0 4 2 0 0 3 2 0 0 2 Fu n c t i o n / P r o g r a m Ge n e r a l g o v e r n m e n t Fl e e t e q u i p m e n t 11 7 11 7 11 7 62 62 60 60 72 72 72 Pi e c e s o f e q u i p m e n t m a i n t a i n e d 11 7 11 7 11 7 62 62 60 60 60 60 60 Pu b l i c s a f e t y Po l i c e Ar r e s t s 54 6 53 1 65 8 59 8 50 4 60 0 74 4 51 7 44 5 51 1 Pa r k i n g v i o l a t i o n s 82 13 9 84 62 16 13 5 15 6 78 10 3 14 4 Tr a f f i c v i o l a t i o n s 1, 9 3 3 2, 4 3 1 3, 0 8 8 3, 0 3 4 3, 0 8 7 2, 7 4 3 2, 7 2 5 1, 3 1 9 1, 5 2 2 2, 0 2 2 EM S Em e r g e n c y r e s p o n s e s 2, 3 1 9 2, 2 1 9 2, 3 6 9 2, 3 9 7 2, 4 5 9 1, 5 3 6 2, 0 9 5 2, 0 0 7 2, 0 1 0 1, 8 9 5 Fi r e Em e r g e n c y r e s p o n s e s 51 4 47 6 76 4 1, 0 3 8 67 3 1, 9 0 0 2, 8 3 1 2, 6 5 0 2, 7 0 6 2, 5 8 6 Pu b l i c w o r k s Re f u s e c o l l e c t i o n Re f u s e c o l l e c t e d ( t o n s p e r d a y ) 12 . 7 0 14 . 0 0 15 . 9 0 18 . 1 0 19 . 0 0 17 . 3 0 17 . 3 0 16 . 8 0 15 . 3 0 14 . 5 0 Re c y c l a b l e s c o l l e c t e d ( t o n s p e r d a y ) 2. 0 0 1. 6 0 1. 6 0 1. 7 0 1. 3 0 1. 8 0 1. 5 0 N/ A N / A N / A Ot h e r p u b l i c w o r k s St r e e t r e s u r f a c i n g ( m i l e s ) 1. 8 0 1. 9 0 3. 5 0 11 . 1 0 - - 2. 2 0 N/ A N / A N / A Pa r k s , r e c r e a t i o n , a n d c u l t u r a l Pa r k s a n d r e c r e a t i o n - a t t e n d e e s Vi n t o n D o g w o o d F e s t i v a l ( 4 - d a y ) 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 Vi n t o n B l u e g r a s s F e s t i v a l ( 4 - d a y ) Cl o s e d C l o s e d 20 , 0 0 0 20 , 0 0 0 20 , 0 0 0 20 , 0 0 0 20 , 0 0 0 20 , 0 0 0 20 , 0 0 0 20 , 0 0 0 4t h o f J u l y 4, 0 0 0 4, 0 0 0 4, 0 0 0 4, 0 0 0 4, 0 0 0 4, 0 0 0 4, 0 0 0 4, 0 0 0 4, 0 0 0 4, 0 0 0 En c h a n t e d E v e ( C o - S p o n s o r R o a n o k e C o u n t y ) Cl o s e d 5, 0 0 0 5, 0 0 0 5, 0 0 0 5, 0 0 0 5, 0 0 0 5, 0 0 0 5, 0 0 0 - - Vi n t o n F a l l F e s t i v a l (C o - S p o n s o r C h a m b e r o f C o m m e r c e ) 6, 0 0 0 6, 0 0 0 6, 0 0 0 6, 0 0 0 6, 0 0 0 6, 0 0 0 6, 0 0 0 6, 0 0 0 6, 0 0 0 6, 0 0 0 Wa t e r Nu m b e r o f c u s t o m e r a c c o u n t s 5, 0 4 4 5, 0 4 0 5, 0 2 2 4, 9 8 5 4, 9 8 4 4, 9 1 6 4, 7 9 3 4, 7 6 3 4, 7 0 4 4, 6 1 9 Mi l e s o f d i s t r i b u t i o n l i n e s 61 61 61 60 60 56 56 56 56 56 Vo l u m e p u m p e d ( m i l l i o n g a l l o n s p e r d a y a v e r a g e ) 1. 2 6 1. 4 7 1. 0 4 1. 2 9 1. 2 6 1. 3 0 1. 3 0 1. 2 0 1. 3 0 1. 4 0 Se w e r Nu m b e r o f c u s t o m e r a c c o u n t s 4, 6 1 0 4, 6 0 9 4, 6 0 0 4, 5 7 1 4, 5 7 3 4, 5 1 1 4, 4 6 0 4, 4 3 0 4, 3 7 1 4, 2 8 6 Mi l e s o f c o l l e c t i o n l i n e s 60 60 60 59 57 54 54 53 53 53 Wa s t e / W a t e r t r e a t e d ( m i l l i o n g a l l o n s p e r d a y ) 1. 0 9 1. 2 7 1. 0 4 1. 2 4 1. 2 0 1. 2 0 1. 4 9 1. 5 0 1. 5 7 1. 3 8 N/ A - N o t a v a i l a b l e . TO W N O F V I N T O N , V I R G I N I A OP E R A T I N G I N D I C A T O R S B Y F U N C T I O N / P R O G R A M La s t T e n F i s c a l Y e a r s 67 TA B L E 1 6 20 1 1 2 0 1 0 2 0 0 9 2 0 0 8 2 0 0 7 2 0 0 6 2 0 0 5 2 0 0 4 2 0 0 3 2 0 0 2 Fu n c t i o n / P r o g r a m Pu b l i c s a f e t y La w e n f o r c e m e n t v e h i c l e s 27 27 29 27 19 20 18 16 11 11 Fi r e s t a t i o n s 1 1 1 1 1 1 1 1 1 1 Pu b l i c w o r k s Pr i m a r y s t r e e t s ( l a n e m i l e s ) 21 . 6 2 21 . 6 2 21 . 6 2 21 . 6 2 18 . 2 8 18 . 7 8 18 . 7 8 16 . 5 0 16 . 5 0 16 . 5 0 Se c o n d a r y s t r e e t s ( l a n e m i l e s ) 66 . 3 2 66 . 3 2 66 . 3 2 66 . 3 2 68 . 7 8 65 . 9 6 65 . 9 6 64 . 4 0 64 . 4 0 64 . 4 0 St r e e t l i g h t s 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 Pa r k s , r e c r e a t i o n , a n d c u l t u r a l Co m m u n i t y c e n t e r s Vi n t o n S e n i o r P r o g r a m ( N o . o f E v e n t s / A t t e n d a n c e ) 17 4 / 3 3 9 6 1/ 1 8 24 0 / 4 2 3 6 1 8 0 / 3 6 0 0 1 8 0 / 3 6 0 0 1 8 0 / 3 6 0 0 1 8 0 / 3 6 0 0 1 8 0 / 3 6 0 0 1 8 0 / 3 6 0 0 1 8 0 / 3 6 0 0 Ch a r l e s R . H i l l C e n t e r ( R e n t a l s ) 21 8 29 5 35 1 20 5 25 7 22 7 22 7 22 7 22 7 22 7 Sk a t e P a r k Cl o s e d C l o s e d C l o s e d 2, 4 0 0 2, 4 0 0 2, 4 0 0 2, 4 0 0 2, 4 0 0 1, 8 0 0 - Vi n t o n W a r M e m o r i a l 20 2 27 1 27 7 15 1 - - 44 9 61 6 48 0 52 4 Pa r k s / a t h l e t i c f i e l d s Ge a r h a r t P a r k (T O V o w ne d - L e a s e d t o R k e C o u n t y ) N/ A N / A 37 / 3 0 0 0 N/ A N / A N / A N / A N / A N / A N / A Ja y ce e F i e l d ( S e a s o n a l b a l l g a m e s ) Cl o s e d C l o s e d C l o s e d C l o s e d C l o s e d C l o s e d 56 56 56 56 Gr e e n w a y ( 3 / 4 M i l e ) C i n d e r S u r f a c e 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 TO W N O F V I N T O N , V I R G I N I A CA P I T A L A S S E T A N D I N F R A S T R U C T U R E S T A T I S T I C S B Y F U N C T I O N / P R O G R A M La s t T e n F i s c a l Y e a r s Gr e e n w a y ( 3 / 4 M i l e ) C i n d e r S u r f a c e 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 La wf i t C o u r s e ( 5 F i t n e s s S t a t i o n s ) 1, 1 2 0 1, 1 2 0 1, 1 2 0 1, 1 2 0 - 1, 1 2 0 - - - - Wa r M e m o r i a l P l a y gr o u n d 6, 0 0 0 6, 0 0 0 6, 0 0 0 6, 0 0 0 5, 0 0 0 6, 0 0 0 6, 0 0 0 4, 0 0 0 4, 0 0 0 4, 0 0 0 Vi n t o n M u n i c i p a l P o o l 12 , 2 4 6 11 , 2 7 0 11 , 0 0 0 11 , 0 0 0 7, 1 0 0 7, 1 4 7 6, 7 6 3 7, 5 3 1 7, 1 4 7 7, 1 4 7 Wa t e r a n d s e w e r Wa t e r m a i n s ( m i l e s ) 61 61 61 60 60 56 56 56 56 56 Sa n i t a r y s e w e r s ( m i l e s ) 60 60 60 59 59 54 54 53 53 53 St o r m w a t e r St o r m s e w e r s ( m i l e s ) 12 12 12 12 12 11 11 11 11 11 Si g n a l i z e d S t r e e t I n t e r s e c t i o n s Tr a f f i c S i g n a l s ( e a c h ) 11 11 11 11 11 11 11 11 11 10 68 THIS PAGE INTENTIONALLY BLANK 69 COMPLIANCE SECTION 70 Your Success is Our Focus 319 McClanahan Street, S.W. • P.O. Box 12388 • Roanoke, VA 24025-2388 • 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 Honorable Members of Town Council Town of Vinton, Virginia We have audited the financial statements of the governmental activities, business-type activities, and each major fund of the Town of Vinton, Virginia, as of and for the year ended June 30, 2011, which collectively comprise the Town of Vinton, Virginia’s basic financial statements and have issued our report thereon dated November 3, 2011. We conducted our audit 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 the Specifications for Audits of Counties, Cities, and Towns issued by the Auditor of Public Accounts of the Commonwealth of Virginia. Internal Control over Financial Reporting In planning and performing our audit, we considered the Town’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Town’s internal control over financial reporting. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as described in the accompanying Schedule of Findings and Responses, we identified a certain deficiency in internal control over financial reporting that we consider to be a material weakness. A deficiency in internal control exists when the design of 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. We consider the deficiency described as 07-1 in the accompanying schedule of findings and responses to be a material weakness in internal control over financial reporting. 71 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 instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying schedule of findings and questioned costs as items 11-1 and 11-2. We noted certain matters that we reported to management of the Town in a separate letter dated November 3, 2011. The Town’s response to the findings identified in our audit is described in the accompanying schedule of findings and responses. We did not audit the Town’s responses and, accordingly, we express no opinion on them. This report is intended solely for the information and use of management, state and federal awarding agencies, pass-through entities, and Town Council, and is not intended to be,and should not be,used by anyone other than these specified parties. CERTIFIED PUBLIC ACCOUNTANTS Roanoke, Virginia November 3, 2011 72 TOWN OF VINTON, VIRGINIA SUMMARY OF COMPLIANCE MATTERS June 30, 2011 As more fully described in the 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 73 TOWN OF VINTON, VIRGINIA SCHEDULE OF FINDINGS AND RESPONSES Year Ended June 30, 2011 A.FINDINGS –FINANCIAL STATEMENT AUDIT 07-1:Segregation of Duties (Material Weakness) Condition: A fundamental concept of internal controls is the separation of duties. No one employee should have access to both physical assets and the related accounting records, or to all phases of a transaction. A proper segregation of duties has not been established in functions related to payroll, accounts payable, accounts receivable, cash disbursements, and computer controls. 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,where practical, and ensured that the same person does not have complete control or conflicting duties on the different functions in the department. B.FINDINGS –COMMONWEALTH OF VIRGINIA 11-1:Highway Maintenance Finding Condition: Costs were incurred for the maintenance of an ineligible street. Recommendation: Steps should be taken to ensure that work is only done on eligible streets included on the Department of Transportation’s annual listing of eligible streets for the Town. Management’s Response: The auditee concurs. 11-2:Public Works Budget Appropriations Condition: Public works expenditures exceeded budgeted appropriations. Recommendation: Steps should be taken to ensure that an excess expenditures over budgeted appropriations be approved by Town Council and the budget amended accordingly. Management’s Response: Any excess expenditures over budgeted appropriations will be recommended for budget amendment to Town Council for approval at a regularly scheduled Town Council meeting.