HomeMy WebLinkAboutFY 2012 - 2013 - Annual Comprehensive Financial Reports (ACFRs)Comprehensive Annual Financial Report
For Fiscal Year Ending June 30, 2013
TOWN OF VINTON, VIRGINIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2013
Prepared by the Town of Vinton
Finance Department/Treasurer’s Office
TOWN OF VINTON, VIRGINIA
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal ..........................................................................................................................................i
Certificate of Achievement for Excellence in Financial Reporting ..............................................................vii
Directory of Principal Officials.....................................................................................................................viii
Organizational Chart .......................................................................................................................................ix
FINANCIAL SECTION
Independent Auditor’s Report ..........................................................................................................................1
Management’s Discussion and Analysis .........................................................................................................3
Basic Financial Statements
Government-wide Financial Statements
Exhibit 1 Statement of Net Position ................................................................................................... 12
Exhibit 2 Statement of Activities ........................................................................................................ 13
Fund Financial Statements
Exhibit 3 Balance Sheet –Governmental Fund ................................................................................. 14
Exhibit 4 Reconciliation of the Governmental Fund Balance Sheet
to the Statement of Net Position...................................................................................... 15
Exhibit 5 Statement of Revenues, Expenditures, and Changes in
Fund 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 Position –Proprietary Fund.................................................................... 19
Exhibit 9 Statement of Revenues, Expenses, and Changes in Fund
Net Position –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 ...................................... 48
Exhibit 12 Analysis of Funding Progress for Other Postemployment Benefits .................................. 49
TOWN OF VINTON, VIRGINIA
TABLE OF CONTENTS
(Continued)
Page
STATISTICAL SECTION
Table 1 Net Position by Component ....................................................................................................... 51
Table 2 Change in Net Position by Component ..................................................................................... 52
Table 3 Fund Balances –Governmental Fund ....................................................................................... 54
Table 4 Changes in Fund Balances –Governmental Fund .................................................................... 55
Table 5 Assessed Value and Actual Value of Taxable Property ........................................................... 56
Table 6 Principal Water and Sewer Customers ...................................................................................... 57
Table 7 Property Tax Levies and Collections ........................................................................................ 58
Table 8 Water and Sewer Rates .............................................................................................................. 59
Table 9 Legal Debt Margin Information ................................................................................................ 60
Table 10 Ratios of Outstanding Debt by Type ......................................................................................... 61
Table 11 Pledged Revenue Coverage ....................................................................................................... 62
Table 12 Demographic Statistics .............................................................................................................. 63
Table 13 Principal Employers ................................................................................................................... 64
Table 14 Full-Time Equivalent Town Government Employees by Function/Program .......................... 65
Table 15 Operating Indicators by Function/Program ............................................................................... 66
Table 16 Capital Asset and Infrastructure Statistics by Function/Program ............................................. 67
COMPLIANCE SECTION
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards..................................................................................................... 69
Summary of Compliance Matters .................................................................................................................. 71
Schedule of Findings and Responses ............................................................................................................. 72
INTRODUCTORY SECTION
i
November 1, 2013
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, 2013 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 2012 Water Quality Report,the Town had no water quality violations.
The Virginia Department of Environmental Quality in reported statewide recycling rates for
calendar year 2012. The Town of Vinton’s rate was 62.4%and was ranked second out of all of
the 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
major festivals 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.
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 Community Development Block Grant in the amount of $700,000. The
CDBG award was the product of the Business District Revitalization Planning Grant awarded to the
Town. The grant will enable the Town to do Façade improvement to 12 downtown businesses, upgrade
the farmer’s market infrastructure, do streetscape improvements, improve street lighting, administer and
a $100,000 Revolving Loan Fund and design a marketing and branding strategy for the Town. The
program is being administered by the Town of Vinton with the help of a Project Management Team
consisting of community stakeholders and a Revolving Loan Committee to screen and administer loans
to current or potential downtown businesses. The Town has two years to complete the revitalization
work which commenced in the summer of 2013.
The budget maintains the Cigarette Tax, which was passed two years ago at $0.20 per pack of cigarettes.
This revenue generated an additional $296,000. 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 $215,000 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.All of these projects were completed with the
final being the Glade Creek/Tinker Creek Wastewater Trunk Line which replaced 750 feet 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 needed to be replaced immediately.This part of the project
cost an additional $500,000 and was included in new bonds issued by the Town in June 2013 amounting
to $1,968,875. The remainder of the new bond money will be used for the following projects:
$939,785 Upgrade project at the Western Virginia Water Authority Wastewater Treatment
Plant.
$529,090 Water line projects on Cleveland, Jackson and Jefferson Streets in the Town of Vinton
next to the downtown revitalization corridor.
The town and the County of Roanoke entered into an agreement pursuant to the acquisition of real estate
at 304 Pollard Street in the downtown corridor for the construction of a future Roanoke County Public
Library. The Town’s portion of the $1,255,000 real estate transaction was $625,000. The Town agreed
to pay $100,000 at closing with the balance of $525,000 paid over a period of ten (10) annual
installments.
The Town continues to update with the County of Roanoke,the Real Estate Tax and Appraisal and
Personal Property Tax Software and billing has been successfully implemented. Roanoke County/Town
of Vinton also has implemented and continues to update an Appraisal System. DMV imports have been
automated and set-off debts have been automated and have improved delinquent collections. In January
2012, the Town has implemented an agreement with ACS Enterprise, Inc. for Application Hosting and
Technology Support Systems and Services for the Financial Applications. They provide the Town with
Technical Support, continuous software updating on the financial applications, and a disaster recovery
plan in the event of some unforeseen emergency.
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. In conjunction with the Façade Program the Town also offers a Change
of Use Grant that helps property owners change zoning from Residential to Business.
v
Prospects for the Future (Continued)
Vinton Area Corridors Plan –The Vinton Area Corridors Plan’s purpose is to provide data and
information for the Town of Vinton, Roanoke County, and the Virginia Department of Transportation
(VDOT) to use in land use and transportation planning. The Town, with a population over 8,000 and a
land mass slightly larger than 3 square miles is a 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.
Accounting System and Budgetary Controls
The Town’s accounting records for governmental fund type operations are maintained on a modified
accrual basis with revenues being recorded when available and measurable, and expenditures being
recorded when services or goods are received and fund liabilities are incurred. Accounting records for
proprietary fund types are maintained on the accrual basis with revenues and expenses being recorded
when earned or incurred.
In developing or modifying the Town’s accounting system, consideration is given to the adequacy of
internal controls. Internal controls are designed to provide reasonable, but not absolute, assurance
regarding: (a) the safeguarding of assets against loss from unauthorized use or disposition, and (b) the
reliability of financial records for preparing financial statements and maintaining accountability for
assets.
The concept of reasonable assurance recognizes that: (a) the cost of a control should not exceed the
benefits likely to be derived, and (b) the evaluation of costs and benefits requires estimates and
judgments by management. All internal control evaluations occur within the above framework. The
Town’s internal controls adequately safeguard assets and provide reasonable assurance of proper
recording of financial transactions.
Budgetary control is maintained at the department or function level by the adoption of an annual,
accrual plus encumbrances basis budget for both the General and Enterprise Funds. The budgetary
controls are designed to ensure compliance with legal restrictions on expenditures as established by the
Town Council. Only the Council can revise appropriations. Year-end outstanding encumbrances are
reported as a reserve of fund balance and re-appropriated in the subsequent year.
Cash Management
The Town uses a pooled cash concept to allow greater investment flexibility and consequently a better
return on investments. Cash from all funds is pooled for investment purposes in the Commonwealth of
Virginia’s Local Government Investment Pool and in Certificates of Deposit. The Town’s checking
account is an interest bearing public fund demand deposit account earning interest rates tied to the
90-day US T-Bill.
Risk Management
The Town’s various property and liability insurance coverage is provided by 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, 2013
TOWN COUNCIL
Bradley E. Grose, Mayor
William S. Nance, Vice Mayor
I. Douglas Adams, Jr.
Robert R. Altice
Matthew S. Hare
APPOINTED OFFICIALS
Christopher S. Lawrence ........................................................Town Manager
Barry W. Thompson ............................................Finance Director/Treasurer
Susan Johnson ..............................................................................Town Clerk
Ben Cook .................................................................................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
To the Honorable Members of Town Council
Town of Vinton, Virginia
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, and each major fund of the Town of Vinton, Virginia, as of and for the year ended
June 30, 2013, and the related notes to the financial statements, which collectively comprise the Town’s
basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, and Specifications for Audits of Counties, Cities,
and Towns issued by the Auditor of Public Accounts of the Commonwealth of Virginia.Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type activities,
and each major fund of the Town, as of June 30, 2013, and the respective changes in net position and,
where applicable, cash flows 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.
2
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, 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.
Prior-Year Comparative Information
We have previously audited the Town’s 2012 financial statements, and we expressed unmodified
audit opinions on the respective financial statements of the governmental activities, the business-type
activities, and each major fund in our report dated November 2, 2012. In our opinion, the summarized
comparative information presented herein as of and for the year ended June 30, 2012, is consistent, in all
material respects, with the audited financial statements from which it has been derived.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town’s basic financial statements. The introductory section and the statistical
section are presented for purposes of additional analysis and are not a required part of the basic financial
statements.
The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or
provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
November 1, 2013 on our consideration of the Town’s internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements
and other matters. The purpose of that report is to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Town’s internal
control over financial reporting and compliance.
CERTIFIED PUBLIC ACCOUNTANTS
Roanoke, Virginia
November 1, 2013
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, 2013. 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 $13,263,911 (net position). Of this amount, $2,614,216 (unrestricted net position) may be
used to meet the Town’s ongoing obligations to citizens and creditors.
The Town’s total net position increased by $193,246. This increase is largely due to the total
revenues of $10,525,134 being greater than the total expenses of $10,331,888. In addition,
an increase of $2,305,039 (45.8%) in current and other assets occurred. Additionally,
capital assets increased by $170,327 (0.8%) with the final result being an increase of 9.7%
in total assets.
On the other hand, long-term liabilities increased by $2,082,734 (18.1%) while other
liabilities increased by $199,386 (15.1%).
The final result of all these effects is a 1.5% increase in net assets.
As of the close of the current fiscal year, the Town’s governmental fund reported an ending
fund balance of $3,131,811, an increase of $467,050 in comparison with the prior year. This
is largely due to an increase of $553,981 (14.1%) in total assets particularly due from cash
and cash equivalents as well as restricted cash and cash equivalents. In addition to this
positive effect, total liabilities increased by $86,931 (6.9%) in particular accounts payable
and accrued liabilities.
Approximately 90.6% of the ending fund balance, $2,837,802 is available for spending at the
Town’s discretion (unassigned fund balance), and represents 37.6% of the governmental
fund’s expenditures.
The Town’s total long-term liabilities increased by $2,082,734 (18.1%) during the current
fiscal year. This increase is largely due to the refunding and issuance of a new bond as well
as entering into a capital lease for police vehicles.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Town’s basic financial
statements. The Town’s basic financial statements comprise three components: (1) government-wide
financial statements,(2)fund financial statements, and (3) notes to the financial statements. This report
also contains other supplementary information in addition to the basic financial statements themselves.
Government-wide Financial Statements –The government-wide financial statements are
designed to provide readers with a broad overview of the Town’s finances, in a manner similar to
a private-sector business.
The statement of net position presents information on all of the Town’s assets and liabilities,
with the difference between the two reported as net position. 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.
4
Overview of the Financial Statements (Continued)
Government-wide Financial Statements (Continued) -The statement of activities presents
information showing how the government’s net position changed during the most recent fiscal
year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will result only in cash flows in future fiscal
periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the Town that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the Town include
general government, public safety, public works, community development, and parks,recreation,
and cultural. The business-type activity of the Town is the water and sewer department.
Fund Financial Statements –A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The Town,
like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds of the Town can be divided
into two categories: governmental funds and proprietary funds.
Governmental Funds –Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources,as well as on
balances of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the government’s near-term
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund 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.
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.
5
Overview of the Financial Statements (Continued)
Other Information –In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information concerning the Town’s funding progress for the
defined benefit pension plan.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the Town, assets exceeded liabilities by $13,263,911 at the close of the most recent
fiscal year.
By far the largest portion of the Town’s net position (74.1%) 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
2013 2012 2013 2012 2013 2012
Current and other assets $4,550,233 $4,006,466 $2,792,637 $1,031,365 $7,342,870 $5,037,831
Capital assets 9,757,009 9,941,952 11,268,202 10,912,932 21,025,211 20,854,884
Total assets 14,307,242 13,948,418 14,060,839 11,944,297 28,368,081 25,892,715
Long-term liabilities 5,196,537 4,992,646 8,386,978 257,999 13,583,515 5,250,645
Other liabilities 1,095,739 1,063,270 424,916 6,508,135 1,520,655 7,571,405
Total liabilities 6,292,276 6,055,916 8,811,894 6,766,134 15,104,170 12,822,050
Net position
Net investment in capital
assets 5,704,050 5,919,643 4,853,969 4,838,640 10,558,019 10,758,283
Restricted 91,676 - - - 91,676 -
Unrestricted 2,219,240 1,972,859 394,976 339,523 2,614,216 2,312,382
Total net position $8,014,966 $7,892,502 $5,248,945 $5,178,163 $13,263,911 $13,070,665
Unrestricted net position of $2,614,216 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.
Governmental activities –Governmental activities increased the Town’s net position by
$122,464.
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.
6
Government-wide Financial Analysis (Continued)
The Town’s Changes in Net Position
Governmental Business-Type
Activities Activities Total
2013 2012 2013 2012 2013 2012
Revenues
Program revenues
Charges for services $694,363 $642,539 $2,754,147 $2,753,851 $3,448,510 $3,396,390
Operating grants and
contributions 1,287,108 1,281,998 - - 1,287,108 1,281,998
Capital grants and
contributions 53,749 66,545 - - 53,749 66,545
General revenues
Property taxes 453,135 510,558 - - 453,135 510,558
Other taxes 4,166,901 4,098,917 - - 4,166,901 4,098,917
Intergovernmental
unrestricted 807,117 773,617 - - 807,117 773,617
Investment earnings 4,434 3,020 828 505 5,262 3,525
Other 41,418 184,846 261,934 287,359 303,352 472,205
Total revenues 7,508,225 7,562,040 3,016,909 3,041,715 10,525,134 10,603,755
Expenses
General government 942,315 948,803 - - 942,315 948,803
Public safety 3,238,361 3,214,622 - - 3,238,361 3,214,622
Public works 2,074,464 2,062,430 - - 2,074,464 2,062,430
Parks, recreation, and
cultural 588,649 553,866 - - 588,649 553,866
Community development 398,517 1,034,510 - - 398,517 1,034,510
Interest on long-term
debt 143,455 183,672 - - 143,455 183,672
Water and sewer - - 2,946,127 3,044,342 2,946,127 3,044,342
Total expenses 7,385,761 7,997,903 2,946,127 3,044,342 10,331,888 11,042,245
Excess (deficiency) before
transfers 122,464 (435,863)70,782 (2,627)193,246 (438,490)
Transfers - 500,000 - (500,000)- -
Change in net position 122,464 64,137 70,782 (502,627)193,246 (438,490)
Net position –July 1 7,892,502 7,828,365 5,178,163 5,680,790 13,070,665 13,509,155
Net position –June 30 $8,014,966 $7,892,502 $5,248,945 $5,178,163 $13,263,911 $13,070,665
Government-wide Financial Analysis (Continued)
Expenses and Program Revenues – Governmental Activities
Revenues by Source – Governmental Activities
Business-type activities – Business-type activities in creased the Town’s net position by $70,782.
Capital grants and contributions received this fiscal year amounted to $53,250, of which $50,000 was a
donation for the Greenway.
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
General
Government
Public Safety Public Works Parks,
Recreation, &
Cultural
Community
Development
Interest on
Long-Term
Debt
Total
Expenses
Program
Revenues
Charges for
Services
9%
Operating Grants
and Contributions
17%
Capital Grants and
Contributions
1%
Property Taxes
6% Sales Taxes
17%
Other Taxes
39%
Unrestricted
Intergovernmental
Revenue
10%
Other
1%
8
Financial Analysis of the Government’s Funds
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds –The focus of the Town’s governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the Town’s financing requirements. In particular, unassigned fund balance may serve as a useful measure
of a government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the Town’s governmental fund reported an ending fund
balance of $3,131,811, an increase of $467,050 in comparison with the prior year. This is largely due to
an increase in total of assets of $825,944 (26.7%) particularly an increase in cash and cash equivalents
of $407,687 (12.6%)and an increase in restricted cash and cash equivalents of $207,840 (1217.7%)
largely comprised of unspent bond proceeds.In addition to this favorable effect, accounts payable,
accrued payroll and related liabilities increased by $86,182 (76.9%).
Proprietary funds –The Town’s proprietary fund provides the same type of information found in
the government-wide financial statements, but in more detail.
Unrestricted net position of the Water and Sewer Department at the end of the year amounted to
$394,976. 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
$75,741 primarily due to an increase in Categorical Aid by $25,915 (2.4%), Other Revenues by $55,057
(1001.0%), and Other Local Taxes by $86,021 (2.1%).
Differences between the original budget and the final amended budget for expenditures were
$96,638. These differences are primarily due to increases on expenses for capital projects.
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 103.4% of the budget due to budgeting too low and collections being
higher on current property taxes.
On the other hand, there were also favorable variances on certain expenses. These were due to a
concerted effort to control and minimize expenditures.
Significant variances in the enterprise fund are in the bulk water sales, water and sewer service
billing, and recoveries and rebates. Revenue realized from bulk sale was 17.9% below the budget due to
consumption whereas revenue from water and sewer service billing was short by 2.5% due to decreased
consumption as well. No recoveries or rebates were received during the year. These negative variances
were partially offset by a 15.4% increase in system development fees for water and sewer and a 10.7%
increase in Roanoke County utility taxes.
9
General Fund Budgetary Highlights (Continued)
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 33.08% 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 (22.90%), and materials and
supplies (42.10%). Wastewater treatment cost was 29.80% 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 water was offset by the unfavorable salaries and
wage category in sewer due to different actual cost allocation for expenditures than the budget. The
favorable variance of 7.90% 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
29.10%.
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, 2013, amounts to $21,025,211 (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
0.82% (a 1.86% decrease for governmental activities and a 3.26% increase 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
2013 2012 2013 2012 2013 2012
Land $1,706,089 $1,706,089 $80,752 $80,752 $1,786,841 $1,786,841
Buildings and systems 5,819,107 6,105,727 8,201,314 7,645,020 14,020,421 13,750,747
Infrastructure 1,532,812 1,624,966 - - 1,532,812 1,624,966
Improvements other than
buildings - - 2,657,790 2,787,908 2,657,790 2,787,908
Machinery and equipment 611,959 418,128 250,199 248,925 862,158 667,053
Construction in progress 87,042 87,042 78,147 150,327 165,189 237,369
Total $9,757,009 $9,941,952 $11,268,202 $10,912,932 $21,025,211 $20,854,884
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
$13,141,085. Of this amount, $10,543,536 comprises debt backed by the full faith and credit of the
government, $2,340,000 is related to revenue bond obligations, and $257,549 is related to capital leases.
The Town’s Outstanding Debt
General Obligation and Capital Leases
Governmental Business-Type
Activities Activities Total
2013 2012 2013 2012 2013 2012
General obligation bonds $4,176,641 $4,060,000 $5,941,895 $3,950,222 $10,118,536 $6,650,222
Revenue bonds - - 2,340,000 2,450,000 2,340,000 2,450,000
Other obligations 425,000 475,000 - - 425,000 475,000
Capital leases 257,549 - - - 257,549 -
$4,859,190 $4,535,000 $8,281,895 $6,400,222 $13,141,085 $10,935,222
The Town’s total debt increased by $2,205,863,or 20.2%,during the fiscal year. This increase is
largely due to the refunding and issuance of a new bond as well as entering into a capital lease for police
vehicles.
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, 2013 is 5.70%, which is the same as last year’s rate of 5.70%.
This compares favorably to the state’s average unemployment rate as of June 30, 2013 of
5.80% percent and to the national average rate of 7.70%.
The occupancy rate of the Town’s central business district has remained at 90% for the past
five years.
Inflationary trends in the region compare favorably to national indices.
During the current fiscal year, the unassigned fund balance in the general fund increased by
$252,855. The general fund remains strong with an increase in ending total fund balance of $467,050.
It is intended that this available fund balance will be used for future needs of the Town.
Requests for Information
This financial report is designed to provide a general overview of the Town’s finances for all
those with an interest in the government’s finances. Questions concerning any of the information provided
in this report or requests for additional financial information should be addressed to the Finance
Department/Treasurer’s Office, Town of Vinton, 311 S. Pollard Street, Vinton, Virginia 24179.
THIS PAGE INTENTIONALLY BLANK
11
BASIC
FINANCIAL STATEMENTS
EXHIBIT 1
Governmental Business-type
(For Comparison
Only)
Activities Activities 2013 2012
ASSETS
Cash and cash equivalents (Note 2)3,649,707$ 299,938$ 3,949,645$ 3,318,548$
Receivables, net (Note 3)265,322 523,499 788,821 756,931
Due from other governmental units (Note 4)313,435 - 313,435 352,706
Inventories 3,584 40,615 44,199 48,340
Prepaids 15,517 - 15,517 73,476
Bond issue costs, net 77,760 92,643 170,403 154,421
224,908 1,835,942 2,060,850 333,409
Capital assets: (Note 5)
Nondepreciable 1,793,131 158,899 1,952,030 2,024,210
Depreciable, net 7,963,878 11,109,303 19,073,181 18,830,674
Total assets 14,307,242 14,060,839 28,368,081 25,892,715
LIABILITIES
Accounts payable and accrued liabilities 400,391 310,845 711,236 492,825
Accrued payroll and related liabilities 135,791 20,633 156,424 127,883
Accrued interest payable 30,250 82,838 113,088 151,004
Customer security deposits - 10,600 10,600 -
Unearned revenue (Note 3)529,307 - 529,307 549,557
Long-term liabilities: (Note 6)
Due within one year 392,002 985,501 1,377,503 821,097
Due in more than one year 4,804,535 7,401,477 12,206,012 10,679,684
Total liabilities 6,292,276 8,811,894 15,104,170 12,822,050
NET POSITION
5,704,050 4,853,969 10,558,019 10,758,283
Public safety 41,676 - 41,676 -
Parks, recreation, and cultural 50,000 - 50,000 -
Unrestricted 2,219,240 394,976 2,614,216 2,312,382
Total net position 8,014,966$ 5,248,945$ 13,263,911$ 13,070,665$
Restricted for:
Net investment in capital assets
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
June 30, 2013
Cash and cash equivalents, restricted (Note 2)
The Notes to Financial Statements are
an integral part of this statement.
12
EXHIBIT 2
Charges for
Operating
Grants and
Capital Grants
and Governmental
Business-
type
(For
Comparison
Only)
Functions/Programs Expenses Services Contributions Contributions Activities Activities 2013 2012
Governmental activities
942,315$ 101,564$ -$ -$ (840,751)$ (840,751)$ (845,002)$
Public safety 3,238,361 89,115 250,407 - (2,898,839) (2,898,839) (2,806,030)
Public works 2,074,464 110,115 1,036,701 - (927,648) (927,648) (922,328)
Parks, recreation, and cultural 588,649 386,934 - 53,749 (147,966) (147,966) (220,144)
Community development 398,517 6,635 - - (391,882) (391,882) (1,029,645)
Interest on long-term debt 143,455 - - - (143,455) (143,455) (183,672)
Total governmental activities 7,385,761 694,363 1,287,108 53,749 (5,350,541) (5,350,541) (6,006,821)
Business-type activities
Water and sewer 2,946,127 2,754,147 - - (191,980)$ (191,980) (290,491)
Total business-type activities 2,946,127 2,754,147 - - (191,980) (191,980) (290,491)
Total 10,331,888$ 3,448,510 1,287,108 53,749 (5,350,541) (191,980) (5,542,521) (6,297,312)
General revenues
Property taxes (Note 10)453,135 - 453,135 510,558
Sales tax 1,284,455 - 1,284,455 1,247,566
Meals tax 912,226 - 912,226 909,814
Utilities tax 785,555 - 785,555 782,487
Business license tax 491,996 - 491,996 460,638
Cigarette tax 321,976 - 321,976 296,309
Other local taxes 370,693 - 370,693 402,103
Unrestricted intergovernmental revenue 807,117 - 807,117 773,617
Unrestricted investment earnings 4,434 66 4,500 3,434
Restricted investment earnings - 762 762 91
Other 41,418 261,934 303,352 472,205
Total general revenues 5,473,005 262,762 5,735,767 5,858,822
Change in net position 122,464 70,782 193,246 (438,490)
NET POSITION AT JULY 1 7,892,502 5,178,163 13,070,665 13,509,155
NET POSITION AT JUNE 30 8,014,966$ 5,248,945$ 13,263,911$ 13,070,665$
General government administration
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF ACTIVITIES
Year Ended June 30, 2013
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
The Notes to Financial Statements are
an integral part of this statement.
13
EXHIBIT 3
(For
Comparison
Only)
2013 2012
ASSETS
Cash and cash equivalents 3,649,707$ 3,242,020$
Receivables, net 265,322 243,952
Due from other governmental units 313,435 352,706
Inventories 3,584 -
Prepaids 15,517 62,746
Cash and cash equivalents, restricted 224,908 17,068
Total assets 4,472,473$ 3,918,492$
LIABILITIES
Accounts payable and accrued liabilities 400,391$ 337,896$
Accrued payroll and related liabilities 135,791 112,104
Deferred revenue (Note 3)804,480 803,731
Total liabilities 1,340,662 1,253,731
FUND BALANCES
Nonspendable 19,101 62,746
Restricted 274,908 17,068
Unassigned 2,837,802 2,584,947
Total fund balances 3,131,811 2,664,761
Total liabilities and fund balances 4,472,473$ 3,918,492$
General Fund
TOWN OF VINTON, VIRGINIA
BALANCE SHEET
GOVERNMENTAL FUND
June 30, 2013
The Notes to Financial Statements are
an integral part of this statement.
14
EXHIBIT 4
(For
Comparison
Only)
2013 2012
Total Fund Balances – Governmental Fund 3,131,811$ 2,664,761$
are different because:
Capital assets used in governmental activities are not financial resources,
and, therefore, are not reported in the funds.
Governmental capital assets 17,904,269$
Less: accumulated depreciation (8,147,260)
9,757,009 9,941,952
Bond issuance costs and premiums are reported as expenditures or
Issuance costs on debt issuances total $129,287 and
accumulated amortization is $(51,527).77,760
Bond premiums total $(67,856) and accumulated amortization
is $24,114.(43,742)
34,018 37,691
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are deferred in the funds.275,173 254,174
Long-term liabilities are not due and payable in the current period and,
therefore, are not reported in the funds.
General obligation bonds, including unamortized deferred amounts (4,012,660)
(425,000)
(257,549)
Accrued interest payable (30,250)
Compensated absences (415,865)
Other postemployment benefits (41,721)
(5,183,045) (5,006,076)
Total Net Position – Governmental Activities 8,014,966$ 7,892,502$
Capital lease obligations
Obligation payable – Roanoke County
revenues in the governmental funds, but are amortized over the life of
the debt obligation in the statement of net position:
General Fund
TOWN OF VINTON, VIRGINIA
RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET
TO THE STATEMENT OF NET POSITION
June 30, 2013
Amounts reported for governmental activities in the statement of net position
The Notes to Financial Statements are
an integral part of this statement.
15
EXHIBIT 5
(For
Comparison
Only)
2013 2012
REVENUES
General property taxes 430,968$ 447,877$
Other local taxes 4,166,914 4,082,076
Permits, privilege fees, and regulatory licenses 10,861 9,273
Fines and forfeitures 73,107 75,989
Revenues from use of money and property 105,998 105,666
Charges for services 387,049 333,832
Other 72,337 18,522
Gain sharing 594,173 564,417
Recovered costs 146,157 180,390
Non-categorical aid 401,898 400,789
Categorical aid 1,097,764 1,157,690
Total revenues 7,487,226 7,376,521
EXPENDITURES
Current:
General government administration 632,136 618,951
Public safety 3,005,917 2,948,155
Public works 1,892,656 1,834,120
Parks, recreation, and cultural 547,604 518,579
Community development 386,592 544,245
Capital projects 542,235 160,752
Debt service:
Principal retirement 335,766 267,595
Interest and fiscal charges 174,699 185,715
Bond issuance costs 36,638 -
Total expenditures 7,554,243 7,078,112
Excess (deficiency) of revenues over expenditures (67,017) 298,409
OTHER FINANCING SOURCES (USES)
Proceeds from issuance of long-term debt 2,411,641 -
Payments to refunded bond escrow agent (2,190,889) -
Proceeds from capital lease 313,315 -
Proceeds from sale of capital assets - 130,951
Transfers in - 500,000
Total other financing sources 534,067 630,951
Net change in fund balances 467,050 929,360
FUND BALANCES AT JULY 1 2,664,761 1,735,401
FUND BALANCES AT JUNE 30 3,131,811$ 2,664,761$
General Fund
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND
Year Ended June 30, 2013
The Notes to Financial Statements are
an integral part of this statement.
16
EXHIBIT 6
(For
Comparison
Only)
2013 2012
Net change in fund balances governmental fund 467,050$ 929,360$
33,463 5,143
(184,943) (661,787)
20,999 54,568
(163,882) (210,505)
(50,223) (52,642)
Change in net position of governmental activities 122,464$ 64,137$
The issuance of long-term debt provides current financial
resources to governmental funds, while the repayment of the
principal of long-term debt consumes the current financial
resources of governmental funds.Neither transaction has any
effect on net position.Also,governmental funds report
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 an increase in compensated absenses of
$(47,791)and an increase in other postemployment benefits of
$(2,432).
The net effect of the change in accrued interest expense is not
reflected in the fund statements.
Governmental funds report capital outlays as expenditures;
however,in the statement of activities,the cost of those assets
are allocated over their estimated useful lives as depreciation
expense.This is the amount by which depreciation $(657,425)
exceeded capital outlays $472,482 in the current period.
Amounts reported for governmental activities in the statement of
activities are different because:
TOWN OF VINTON, VIRGINIA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUND TO THE
STATEMENT OF ACTIVITIES
Year Ended June 30, 2013
General Fund
Revenues in the statement of activities that do not provide
current financial resources are not reported as revenues in the
funds.
The Notes to Financial Statements are
an integral part of this statement.
17
EXHIBIT 7
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
General property taxes 501,450$ 416,644$ 430,968$ 14,324$
Other local taxes 4,086,585 4,172,606 4,166,914 (5,692)
Permits, privilege fees, and 11,375 10,861 10,861 -
regulatory licenses
Fines and forfeitures 73,725 73,107 73,107 -
Revenues from use of money 100,850 105,998 105,998 -
and property
Charges for services 384,500 389,199 387,049 (2,150)
Other 5,500 60,557 72,337 11,780
Gain sharing 605,000 594,173 594,173 -
Recovered costs 151,750 146,157 146,157 -
Non-categorical aid 400,639 401,898 401,898 -
Categorical aid 1,071,849 1,097,764 1,097,764 -
Total revenues 7,393,223 7,468,964 7,487,226 18,262
EXPENDITURES
Current:
General government administration 668,974 675,925 632,136 43,789
Public safety 3,126,117 3,133,829 3,005,917 127,912
Public works 1,960,857 1,960,857 1,892,656 68,201
Parks, recreation, and cultural 550,007 552,007 547,604 4,403
Community development 420,605 420,602 386,592 34,010
Non-departmental 38,883 (88) - (88)
Capital projects 117,035 235,984 542,235 (306,251)
Debt service:
Principal retirement 334,863 334,863 335,766 (903)
Interest and fiscal charges 180,882 180,882 174,699 6,183
Bond issuance costs - - 36,638 (36,638)
Total expenditures 7,398,223 7,494,861 7,554,243 (59,382)
OTHER FINANCING SOURCES (USES)
Proceeds from long-term debt - 2,265,929 2,411,641 145,712
Payments to refunded bond escrow agent - - (2,190,889) (2,190,889)
Proceeds from capital lease - - 313,315 313,315
Proceeds from sale of capital assets 5,000 - - -
Total other financing sources 5,000 2,265,929 534,067 (1,731,862)
Net change in fund balance -$ 2,240,032$ 467,050$ (1,772,982)$
Budgeted Amounts
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL –
GENERAL FUND
Year Ended June 30, 2013
The Notes to Financial Statements are
an integral part of this statement.
18
EXHIBIT 8
(For Comparison
Only)
2013 2012
ASSETS
Current assets:
Cash and cash equivalents 299,938$ 76,528$
Receivables, net 523,499 512,979
Inventories 40,615 48,340
Prepaids - 10,730
Cash and cash equivalents, restricted 1,835,942 316,341
Total current assets 2,699,994 964,918
Noncurrent assets:
Bond issue costs, net 92,643 66,447
Capital assets:
Nondepreciable 158,899 231,079
Depreciable, net 11,109,303 10,681,853
Total noncurrent assets 11,360,845 10,979,379
Total assets 14,060,839 11,944,297
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 310,845 154,929
Accrued payroll and related liabilities 20,633 15,779
Accrued interest payable 82,838 87,291
Customer security deposits 10,600 -
Current portion of noncurrent liabilities 985,501 442,348
Total current liabilities 1,410,417 700,347
Noncurrent liabilities:
Due in more than one year 7,401,477 6,065,787
Total noncurrent liabilities 7,401,477 6,065,787
Total liabilities 8,811,894 6,766,134
NET POSITION
Net investment in capital assets 4,853,969 4,838,640
Unrestricted 394,976 339,523
Total net position 5,248,945$ 5,178,163$
Water and Sewer
Business-type Activities –
Enterprise Fund
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
PROPRIETARY FUND
June 30, 2013
The Notes to Financial Statements are
an integral part of this statement.
19
EXHIBIT 9
(For Comparison
Only)
2013 2012
OPERATING REVENUES
Water service charges and fees 1,250,580$ 1,241,260$
Sewer service charges and fees 1,452,410 1,460,204
Water/sewer penalties 51,157 52,387
Other revenue 261,934 287,359
Total operating revenues 3,016,081 3,041,210
OPERATING EXPENSES
Salaries 773,781 759,718
Fringe benefits 265,366 280,630
Contractual services 84,610 62,851
Maintenance 93,288 120,322
Rent, utilities, and insurance 273,443 256,395
Materials and supplies 95,739 94,960
Equipment repairs and rentals 34,395 85,090
Sewage treatment 269,249 294,961
Purchase of water 106,505 115,135
Other 133,257 117,621
Depreciation 605,004 619,337
Amortization 4,330 4,330
Total operating expenses 2,738,967 2,811,350
Operating income 277,114 229,860
NON-OPERATING REVENUE (EXPENSE)
Interest income 828 505
Interest expense (207,160) (232,992)
Net non-operating expense (206,332) (232,487)
Income (loss) before transfers 70,782 (2,627)
TRANSFERS IN (OUT)- (500,000)
Change in net position 70,782 (502,627)
NET POSITION AT JULY 1 5,178,163 5,680,790
NET POSITION AT JUNE 30 5,248,945$ 5,178,163$
TOWN OF VINTON, VIRGINIA
Business-type Activities –
Enterprise Fund
Water and Sewer
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUND
Year Ended June 30, 2013
The Notes to Financial Statements are
an integral part of this statement.
20
EXHIBIT 10
(For Comparison
Only)
2013 2012
OPERATING ACTIVITIES
Receipts from customers 2,754,227$ 2,807,529$
Receipts from other sources 261,934 287,359
Payments to suppliers (957,124) (1,119,453)
Payments to employees (1,033,455) (1,029,454)
Net cash provided by operating activities 1,025,582 945,981
NONCAPITAL FINANCING ACTIVITIES
Transfers from (to) other funds - (500,000)
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchases of capital assets (919,265) (39,273)
Principal paid on long-term liabilities (428,247) (413,586)
Proceeds from long-term liabilities 2,309,920 -
Debt issuance costs (30,526) -
Interest paid (215,281) (240,948)
Net cash provided by (used in) capital and related
financing activities 716,601 (693,807)
INVESTING ACTIVITIES
Interest received on investments 828 505
Net increase (decrease) in cash and cash equivalents 1,743,011 (247,321)
CASH AND CASH EQUIVALENTS
Beginning at July 1 392,869 640,190
Ending at June 30 2,135,880$ 392,869$
RECONCILIATION TO EXHIBIT 8
Cash and cash equivalents 299,938$ 76,528$
Cash and cash equivalents, restricted 1,835,942 316,341
2,135,880$ 392,869$
Reconciliation of operating income to net cash
provided by operating activities
Operating income 277,114$ 229,860$
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation and amortization 609,334 623,667
Change in certain assets and liabilities:
(Increase) decrease in:
Receivables, net (10,520) 53,678
Inventories 7,725 (16,751)
Prepaids 10,730 3,481
Increase in:
Accounts payable and accrued liabilities 114,907 41,152
Accrued payroll and related liabilities 4,854 7,537
Customer security deposits 10,600 -
Compensated absences 551 1,509
Other post employment benefits 287 1,848
Net cash provided by operating activities 1,025,582$ 945,981$
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
Capital asset purchases included in accounts payable 41,009$ -$
Business-type Activities –
Enterprise Fund
Water and Sewer
TOWN OF VINTON, VIRGINIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUND
Year Ended June 30, 2013
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, 2013
Note 1.Summary of Significant Accounting Policies
A.The Financial Reporting Entity
The Town of Vinton was established in 1884. It is a political subdivision of the Commonwealth
of Virginia operating under the Council-Manager form of government. The Town Council
consists of a mayor and four other council members. The Town is part of Roanoke County and
has taxing powers subject to state-wide restrictions and tax limits.
Vinton provides a full range of municipal services including police, refuse collection, recycling,
public improvements, planning and zoning, general administrative services, fire, first aid,
recreation, and water and sewer services. Fire and first-aid services are supplemented by
volunteer departments.
Jointly Governed Organizations
Roanoke Valley Resource Authority:
The Town of Vinton, Roanoke County, and the City of Roanoke jointly participate in the
Roanoke Valley Resource Authority, which operates a regional solid waste disposal system that
includes a sanitary landfill, waste collection, and transfer station. The Authority is governed by a
board composed of seven members appointed by the governing bodies of participating
jurisdictions. Town Council appoints one member. The Town has control over the budget and
financing of the Authority only to the extent of representation by the board member appointed.
The participating localities are each responsible for their pro-rata share, based on population, of
any year-end operating deficit. For the current year, the Town remitted $180,362 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
$40,596 for the current year. Separate financial statements are not available.
Roanoke County Emergency Communications Center:
The Town participates in an intergovernmental agreement with the County of Roanoke for the
operation of a E-911 dispatch center.All personnel of the Center are employees of Roanoke
County. The Director of Communications & Information Technology in coordination with the
Emergency Communications Center Advisory Board is responsible for oversight of the Center.
The Assistant Director for Communications and Information Technology is responsible for the
day-to-day operational management of the Center.The Town and County contribute to the
operational cost of the Center based on the pro rata share of call volume. The Town’s share of the
operating cost was approximately $474,923 in the current year. Separate financial statements are
not available.
(Continued)23
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
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 $3,805 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 position and the statement of
changes in net position) report information on all of the activities of the Town. For the most part,
the effect of interfund activity has been removed from these statements. Interfund services
provided and used are not eliminated in the process of consolidation. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported separately
from business-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include (1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment and (2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as general
revenues.
Separate financial statements are provided for the governmental fund and proprietary fund.
(Continued)24
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
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.
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.
(Continued)25
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
Note 1.Summary of Significant Accounting Policies (Continued)
D.Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
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 $96,638 during the
fiscal year ended June 30, primarily for capital projects deferred from the prior year and
additional operating expenditures.
4)The appropriations ordinance places legal restrictions on expenditures at the department or
function level. Management can over-expend at the line item level without approval of Town
Council. The appropriation for each department or function can be revised only by Town
Council. The Town Manager is authorized to transfer budget amounts within departments.
All budget data presented in Exhibit 7 is at the legal level of budgetary control.
5)Formal budgetary integration is employed as a management control device during the year for
the general and enterprise funds.
6)Budgets are adopted on a basis consistent with generally accepted accounting principles
(GAAP).
7)Appropriations lapse on June 30.
8)All budget data presented in the accompanying financial statements are revised as of June 30.
(Continued)26
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
Note 1.Summary of Significant Accounting Policies (Continued)
F.Cash and Cash Equivalents
Cash and cash equivalents are defined as short-term, highly liquid investments (including
restricted assets) with an original maturity of three months or less when purchased.
G.Allowance for Uncollectible Accounts
The Town calculates its allowance for uncollectible accounts using historical collection data and
specific account analysis.
H.Inventories
Inventories are valued at the lower of cost (first-in, first-out) or market method.
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.
Capital assets are depreciated using the straight-line method over the following estimated useful
lives:
Buildings and improvements 10-40 years
Machinery and equipment 3-10 years
Utility plant 20-40 years
Public domain infrastructure 25-40 years
Sewage treatment contract 30 years
J.Capitalization of Interest
The Town capitalizes net interest costs on funds borrowed to finance the construction of
proprietary capital assets. Interest is not capitalized on the construction of assets used in
governmental activities. There was $23,486 of interest capitalized in the current year.
(Continued)27
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
Note 1.Summary of Significant Accounting Policies (Continued)
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.
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.
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.
(Continued)28
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
Note 1.Summary of Significant Accounting Policies (Continued)
M.Fund Balances (Continued)
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.
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.
(Continued)29
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
Note 2.Deposits and Investments
Deposits
Deposits with banks are covered by the Federal Deposit Insurance Corporation (FDIC) and
collateralized in accordance with the Virginia Security for Public Deposits Act (the “Act”) Section
2.2-4400 et. seq. of the Code of Virginia. Under the Act, banks and savings institutions holding
public deposits in excess of the amount insured by the FDIC must pledge collateral to the
Commonwealth of Virginia Treasury Board. Financial Institutions may choose between two
collateralization methodologies and depending upon that choice, will pledge collateral that ranges in
the amounts from 50% to 130% of excess deposits. Accordingly, all deposits are considered fully
collateralized.
Investments
Investment Policy:
Statutes authorize the Town to invest in obligations of the United States or agencies thereof,
obligations of the Commonwealth of Virginia or political subdivisions thereof, obligations of the
International Bank for Reconstruction and Development (World Bank), the Asian Development Bank,
the African Development Bank, “prime quality” commercial paper and certain corporate notes, and
bankers’ acceptances, repurchase agreements, and the State Treasurer’s Local Government
Investment Pool (LGIP). Pursuant to Section 2.1-234.7 Code of Virginia, the Treasury Board of the
Commonwealth sponsors the LGIP and has delegated certain functions to the State Treasurer. The
LGIP reports to the Treasury Board at their regulatory scheduled monthly meetings and the fair value
of the position in LGIP is the same as the value of the pool shares (i.e., the LGIP maintains a stable
net asset value of $1 per share). The investment policy (the “Policy”) specifies that no investment
may have a maturity greater than one year from the date of purchase.
Credit Risk:
As required by state statute, the Policy requires that commercial paper have a short-term debt rating
of no less than “A-1” (or its equivalent) from at least two of the following: Moody’s Investors
Service, Standard & Poor’s, and Fitch Investors Service, provided that the issuing corporation has a
net worth of at least $50 million and its long-term debt is rated “A” or better by Moody’s and
Standard & Poor’s. Bankers’ acceptances and Certificates of Deposit maturing in less than one year
must have a short-term debt rating of at least “A-1” by Standard & Poor’s and “P-1” by Moody’s
Investors Service.
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.
(Continued)30
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
Note 2.Deposits and Investments (Continued)
Investments (Continued)
Interest Rate Risk:
As a means of limiting its exposure to fair value losses arising from rising interest rates, the Town’s
investment policy specifies that no investment may have a maturity greater than two years from the
date of purchase, and the average maturity of the portfolio must not exceed 1 year.
Custodial Credit Risk:
The Policy requires that all investment securities shall be held in safekeeping by a third-party and
evidenced by safekeeping receipts. As required by the Code of Virginia, all security holdings with
maturities over 30 days may not be held in safekeeping with the “counterparty” to the investment
transaction.
As of June 30, the Town did not have any investments.
Fair
Value
Deposits $6,005,944
Reconciliation of deposits to Exhibit 1:
Cash and cash equivalents, excluding $4,551cash on hand $3,945,094
Cash and cash equivalents, restricted 2,060,850
Total deposits $6,005,944
Restricted cash and cash equivalents consists of $2,011,374 of unspent bond proceeds, $7,800 of
utility deposits,and $41,676 of ATF, DCJS,and State seized funds that can only be used for specific
purposes.
(Continued)31
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
Note 3.Receivables
Receivables consist of the following:
Governmental Business-type
Activities Activities Total
Receivables
Taxes $391,931 $- $391,931
Accounts 12,018 580,299 592,317
Gross receivables 403,949 580,299 984,248
Less allowance for uncollectibles 138,627 56,800 195,427
Receivables, net $265,322 $523,499 $788,821
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 $101,754 $672 $102,426
Vehicle license fee 32,938 - 32,938
Sales tax 112,142 - 112,142
Communication taxes 28,339 - 28,339
275,173 672 275,845
Included in cash:
Subsequent years’ tax collections - 528,635 528,635
Total deferred/unearned revenue
for governmental funds $275,173 $529,307 $804,480
(Continued)32
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
Note 4.Due from Other Governmental Units
A summary of funds due from other governmental units was as follows:
Commonwealth of Virginia
Communication taxes $54,992
Miscellaneous non-categorical aid 5,911
60,903
County of Roanoke
Local sales taxes 219,577
Transport fees 32,955
252,532
$313,435
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 87,042 - - 87,042
Total capital assets, not depreciated 1,793,131 - - 1,793,131
Capital assets, depreciated
Buildings and improvements 9,325,453 - 44,743 9,280,710
Machinery and equipment 3,925,272 472,482 - 4,397,754
Infrastructure 2,432,674 - - 2,432,674
Total capital assets, depreciated 15,683,399 472,482 44,743 16,111,138
Less accumulated depreciation for:
Buildings and improvements 3,219,726 286,620 44,743 3,461,603
Machinery and equipment 3,507,144 278,651 - 3,785,795
Infrastructure 807,708 92,154 - 899,862
Total accumulated depreciation 7,534,578 657,425 44,743 8,147,260
Total capital assets, depreciated, net 8,148,821 (184,943)- 7,963,878
Governmental activities
capital assets, net $9,941,952 $(184,943)$ - $9,757,009
(Continued)33
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
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 150,327 101,633 173,813 78,147
Total capital assets, not depreciated 231,079 101,633 173,813 158,899
Capital assets, depreciated
Utility plant 17,752,902 1,000,704 - 18,753,606
Sewage treatment contract 3,816,857 - - 3,816,857
Machinery and equipment 1,105,406 31,750 - 1,137,156
_______________Total capital assets, depreciated 22,675,165 1,032,454 - 23,707,619
Less accumulated depreciation for:
Utility plant 10,107,882 444,410 - 10,552,292
Sewage treatment contract 1,028,949 130,118 - 1,159,067
Machinery and equipment 856,481 30,476 - 886,957
Total accumulated depreciation 11,993,312 605,004 - 12,598,316
Total capital assets, depreciated, net 10,681,853 427,450 - 11,109,303
Business-type activities
capital assets, net $10,912,932 $529,083 $173,813 $11,268,202
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities
General government $297,648
Public safety 160,180
Public works 184,341
Parks, recreation, and cultural 15,256
$657,425
Business-type activities
Water and sewer $605,004
Construction Commitments
The Town has no active construction projects as of June 30, 2013. The Town does have partially
completed construction in progress in governmental activities, but there are no outstanding
construction commitments related to these activities. 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 associated with the outstanding
construction commitments discussed below under sewage treatment contract.
(Continued)34
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
Note 5.Capital Assets (Continued)
Sewage Treatment Contract
Through its participation in an agreement with four other localities for the expansion of the regional
sewage treatment plant and interceptors, the Town has contractual rights to predetermined capacity in
both the plant and interceptors through 2034.
The plant is upgrading its facilities to improve compliance with DEQ peak flow requirements.
Modifications costing approximately $17 million are currently under construction. The Town’s share
will be approximately 5.5% or $987 thousand, which is being funded with general obligation bonds
issued in the current fiscal year 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.The Town has made the annual required contribution since the formation
of the Authority in 2005.
Note 6.Long-Term Liabilities
The following is a summary of changes in long-term liabilities for the year:
Governmental Beginning Ending Due Within
Activities Balance Additions Reductions Balance One Year
General obligation bonds $4,060,000 $ 2,411,641 $(2,295,000)$ 4,176,641 $304,241
Obligation payable –
Roanoke County 475,000 - (50,000)425,000 50,000
Deferred amounts on
refunding - (163,981) - (163,981) (151,367)
Bond premiums 50,283 - (6,541)43,742 3,606
Capital leases - 313,315 (55,766)257,549 48,287
Compensated absences 368,074 142,997 (95,206)415,865 137,235
Other postemployment
benefits 39,289 35,756 (33,324)41,721 -
$4,992,646 $2,739,728 $(2,535,837)$5,196,537 $392,002
Business-type
Activities
General obligation bonds $3,950,222 $2,309,920 $(318,247)$5,941,895 $854,507
Revenue bonds 2,450,000 - (110,000)2,340,000 115,000
Bond Premiums 56,858 - (3,668)53,190 3,668
Compensated absences 46,855 10,983 (10,432)47,406 12,326
Other postemployment
benefits 4,200 4,234 (3,947)4,487 -
$6,508,135 $2,325,137 $(446,294)$8,386,978 $985,501
The general fund has been used to liquidate the liability for compensated absences, net pension
obligation, and net other postemployment benefits.
(Continued)35
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
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 Capital Leases
Obligations Payable
Roanoke County
General Obligation
Bonds Revenue Bonds
Fiscal
Year Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest
2014 $304,241 $128,498 $48,287 $8,323 $50,000 $ - $854,507 $167,059 $115,000 $106,625
2015 307,961 117,506 49,847 6,762 50,000 - 307,151 152,079 120,000 101,925
2016 317,793 107,838 51,458 5,151 50,000 - 316,710 142,519 120,000 97,125
2017 320,905 99,269 53,120 3,489 55,000 - 326,570 132,662 125,000 92,538
2018 328,927 90,550 54,837 1,772 55,000 - 336,735 122,495 130,000 87,750
2019-2023 1,616,339 312,825 - - 165,000 - 1,848,616 448,538 755,000 341,200
2024-2028 980,475 74,155 - - - - 1,400,750 165,836 975,000 126,875
2029-2033 - - - - - - 550,856 40,145 - -
$4,176,641 $930,641 $257,549 $25,497 $425,000 $ - $5,941,895 $1,371,333 $2,340,000 $954,038
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 $ - $48,716
G.O. Public Improvement Bonds 2.38-4.48%11/04/04 11/01/14 1,015,000 95,000 -
G.O. Public Improvement Bonds 3.64-4.96%06/01/06 10/01/26 755,000 590,000 -
Virginia Revolving Loan Fund:
G.O. Water and Sewer Bonds 3.30%07/24/03 07/01/24 1,250,704 - 831,555
G.O. Water and Sewer Bonds 3.10%10/01/04 10/01/26 2,479,000 - 1,867,582
G.O. Water and Sewer Bonds 3.10%01/12/06 03/01/26 1,210,000 - 884,122
Virginia Association of Counties:
G.O. Public Improvement Bonds 2.50-4.38%12/15/04 08/01/14 2,500,000 235,000 -
G.O. Public Improvement Bonds 3.75-5.25%02/08/07 02/01/27 1,045,000 845,000 -
G.O. Public Improvement Bonds Various 11/07/12 05/31/14 500,000 - 500,000
Capital One Public Funding:
G.O. Public Improvement Bonds 2.85%06/27/13 11/01/32 1,993,152 183,232 1,809,920
Carter Bank and Trust:
G.O. Refunding Bonds 2.05%06/27/13 11/01/24 2,228,409 2,228,409 -
4,176,641 5,941,895
Less deferred amounts on refunding, net
of amortization (163,981)-
Plus bond premium, net of amortization 43,742 -
$4,056,402 $5,941,895
(Continued)36
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
Note 6.Long-Term Liabilities (Continued)
Interest
Rates Date Issued
Final
Maturity
Date
Amount of
Original
Issue
Governmental
Activities
Business-
type
Activities
Revenue Bonds:
Virginia Association of Counties:
Revenue Water and Sewer Bonds 3.50-5.00%12/19/07 08/01/27 2,750,000 $ - $2,340,000
Plus bond premium, net of amortization - 53,190
$ - $2,393,190
Capital Leases:
Kansas State Bank 3.23%09/06/12 10/06/17 $313,315 $257,549 $ -
Obligations Payable:
Roanoke County 0.00%07/01/11 07/01/20 $625,000 $425,000 $ -
Current Year Debt Issuance and Defeasances of Debt
On June 27, 2013, the Town issued $4,221,561 in series 2013 general obligation bonds with interest
rates of 2.05%-2.85%.$2,228,409 of this issuance was used to advance refund $2,065,000 of
outstanding 2004 and 2004A series general obligations bonds with interest rates of 2.38%-4.48%. The
net proceeds of $2,190,889 were used to purchase government securities. Those securities were
deposited in an irrevocable trust with an escrow agent to provide for future debt service payments on
the 2004 and 2004A series general obligation bonds. As a result, $1,465,000 of the 2004, and
$600,000 of the 2004A series general obligations bonds are considered to be defeased and the liability
for those bonds has been removed from the government-wide statement of net position.
The advance refunding resulted in a difference between the reacquisition price and the net carrying
value of the old debt of $163,981. This difference, reported in the accompanying financial statements
as a deduction from bonds payable, is being amortized over the remaining life of the old bonds as a
component of interest expense through the year 2015. The Town completed the advance refunding to
reduce its total debt service payments by $156,640 and to obtain an economic gain (difference
between the present values of the old and new debt service payments) of $144,547.
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.
(Continued)37
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
VRS administers two defined benefit plans for local government employees –Plan 1 and Plan 2:
Members hired before July 1, 2010 and who were vested as of January 1, 2013 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 5 years of service credit or age 50 with at least 10 years of
service credit.
Members hired or rehired on or after July 1, 2010 and Plan 1 members who were not
vested on January 1, 2013 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
Plans 1 and 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. The multiplier for non-vested Plan 1
members and Plan 2 members was reduced to 1.65% effective January 1, 2013 unless they are
hazardous duty employees and their employer has elected the enhanced retirement multiplier.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)38
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
Note 7.Defined Benefit Pension Plan (Continued)
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%; for non-vested Plan 1
members and Plan 2 members, the COLA cannot exceed 3.00%. During years of no inflation or
deflation, the COLA is 0.00%. All active employees not within 5 years of eligibility for unreduced
retirements as of January 1, 2013 and retiring with less than 20 years of service will have their COLA
deferred to one year after their unreduced retirement date after beginning to receive benefits. All
active employees within 5 years of eligibility for unreduced retirement as of January 1, 2013 are
grandfathered into the old provisions with no deferral of the COLA. 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 (CAFR)that includes
financial statements and required supplementary information for the plans administered by VRS.A
copy of the most recent report may be obtained from the VRS Web site at
http://www.varetire.org/PDF/Publications/2012-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. Beginning July 1, 2012 new employees were required to pay the
5% member contribution. In addition, for existing employees, employers were required to begin
making the employee pay the 5% member contribution. This could be phased in over a period of up to
5 years and the employer is required to provide a salary increase equal to the amount of the increase
in the employee-paid member contribution. 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, 2013 was 8.48% of annual covered payroll.
Annual Pension Cost
For the fiscal year ended June 30, 2013, the Town’s annual pension cost of $286,775 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, 2013 $ 286,775 100 % $ -
June 30, 2012 $419,249 100 % $ -
June 30, 2011 $ 452,742 100 % $ -
(Continued)39
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
Note 7.Defined Benefit Pension Plan (Continued)
The fiscal year 2013 required contribution was determined as part of the June 30, 2012 actuarial
valuation using the entry age actuarial cost method. The actuarial assumption at June 30, 2012 included
(a) an investment rate of return (net of administrative expenses) of 7.00% (b) projected salary increases
ranging from 3.75% to 5.60% per year for general government employees, 3.75% to 6.20% per year for
teachers, 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 for
Plan 1 employees and 2.25% for Plan 2 employees. Both the investment rate of return and the projected
salary increases also include 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 level percentage of projected payroll on an open basis.
The remaining amortization period at June 30, 2012 for the Unfunded Actuarial Accrued Liability
(UAAL) was 30 years.
Funded Status and Funding Progress
As of June 30, 2012, the most recent actuarial valuation date, the plan was 79.89% funded. The
actuarial accrued liability for benefits was $15,312,040, and the actuarial value of assets was
$12,232,068, resulting in an unfunded actuarial accrued liability (UAAL) of $3,079,972. The covered
payroll (annual payroll of active employees covered by the plan) was $2,978,778, and the ratio of the
UAAL to the covered payroll was 103.40%.
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 Postemployment Benefits
Plan Description
The Town provides postemployment medical and dental benefits to its eligible retirees and their
dependents who elect to stay in the plans. At retirement, retirees under the age of 65 may participate
in one of the Town’s health and dental plans and may continue coverage under these plans until age
65 or becoming eligible for Medicare, whichever comes first. The Town contributes $200 per month
towards this coverage with the retiree paying the remainder of the premium. Medicare-eligible
retirees may participate in the Medicare supplement only and pay 100% of the Medicare supplement
premium. The retirees receive an implicit benefit from participating in the Town’s health and dental
plans through lower insurance rates created by the blending of the retirees with active employee’s
rates. The Town Council may change, add, or delete benefits (including contributions required of
retired employees) as deemed appropriate.
Participants are eligible for the plan at age 55 if they have completed 25 years of service. Retiring
employees must have been active employees when they retire.
The plan does not provide audited financial statements.
(Continued)40
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
Note 8.Other Postemployment Benefits (Continued)
Funding Policy
The Town currently funds postemployment benefits on a pay-as-you-go basis. The Town does not
intend to establish a trust to pre-fund this liability.
Annual OPEB Cost and Net OPEB Obligation
For the year ended June 30, 2013, the Town’s annual OPEB cost (expense) of $39,700 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 2013, the
Town’s pay-as-you-go funding totaled $37,271 and resulted in a Net OPEB obligation of $46,208.
The pay-as-you-go funding includes the Town’s contribution towards retiree health care premiums of
$7,800, and an implicit subsidy of the retiree health care premiums created through the blending of
active employee and retiree insurance rates.
Annual required contribution $39,700
Interest on net OPEB obligation 1,740
Adjustment to annual required contribution (1,450)
Annual OPEB cost 39,990
Less funding (37,271)
Increase in net OPEB obligation 2,719
Net OPEB obligation-beginning of year 43,489
Net OPEB obligation-end of year $46,208
The Town’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the
net OPEB obligation for 2013, 2012,and 2011 are as follows:
Fiscal Year
Ended
OPEB
Obligation
Percentage of
Annual OPEB
Cost
Contributed
Net OPEB
Obligation
June 30, 2013 $39,900 93.2%$46,208
June 30, 2012 $67,256 74.7%$43,489
June 30, 2011 $56,002 80.0%$26,452
(Continued)41
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
Note 8.Other Postemployment Benefits (Continued)
Funded Status and Funding Progress
As of January 1, 2012, the Town’s most recent actuarial valuation date, the unfunded actuarial
accrued liability (UAAL) for benefits was $279,700, all of which was unfunded. The covered payroll
(annual payroll of active employees covered by the plan) was $3,109,500, and the ratio of the UAAL
to the covered payroll was 9.00%.
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, 2012 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 4.00%
discount rate and an initial annual healthcare cost trend of 7.20%reduced by decrements each year to
arrive at an ultimate healthcare cost trend rate of 4.80%. The unfunded accrued liability is being
amortized over 30 years. The remaining amortization period at June 30, 2013 is 30 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.
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.
(Continued)42
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
Note 9.Service Contracts (Continued)
Water Purchases/Sales
Effective, June 1, 2005, the Town agreed to purchase water from the Western Virginia Water
Authority at a bulk rate which is determined by a mutually agreed-upon formula. The water is
designated for an industrial user who pays the Town an agreed upon rate. This is a 30-year agreement
and will expire in 2035.
Note 10.Property Taxes
The major sources of property taxes are real estate and personal property taxes. The assessments are
the responsibility of the County of Roanoke, while billing and collection functions are the Town’s
responsibilities.
Property taxes are levied annually in April on assessed values as of January 1. Personal property
transactions during the year are taxed on a prorated basis. Real estate tax is payable in two equal
installments on or before June 5 and December 5, and personal property tax is due on or before
May 31, or within 30 days subsequent to assessment. Personal property taxes do not create a lien on
property.
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.
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
2012-2013, total premiums paid were approximately $73,000. 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.
(Continued)43
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
Note 12.Risk Management (Continued)
General Liability
The Town provides general liability and other insurance through policies with Virginia Municipal
Self-Insurance Association. During 2012-2013, total premiums paid were approximately $141,000.
General liability and business automobile have a $1,000,000 limit per occurrence. Boiler and
machinery coverage and property insurance are covered per statement of values. The Town maintains
an additional $4,000,000 umbrella policy over all forms of liability insurance. Police professional
liability and public officials’ liability insurance with a $1,000,000 limit are covered through a policy
with the Commonwealth of Virginia.
There were no significant reductions in insurance coverage’s 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 2012-2013, total premiums paid were approximately $512,000.
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.
Landfill Closure and Post-Closure Costs
As discussed in Note 1, the Town participates in the Roanoke Valley Resource Authority. The
Authority currently has responsibility for closure and post-closure care related to the new Smith Gap
landfill, the transfer station, and an old landfill site.
Closure and post-closure care requirements are mandated under the United States Environmental
Protection Agency (EPA) rule, Solid Waste Disposal Facility Criteria, and are subject to periodic
revisions by the EPA. The current estimate of remaining closure and post-closure care costs,
assuming full utilization of the sites, is approximately $13.9 million. The participating localities have
contributed their pro-rata shares to fund the closure and post-closure care costs.
Gain Sharing Agreement –Vinton Business Center
On March 2, 1999, the Town and Roanoke County reached an agreement to provide for the sharing of
certain local tax revenues and sharing of the costs of certain public services. That agreement states
that the Town and County may negotiate an agreement to fund jointly the costs of development of the
Vinton Business Center and to share equally in the local tax revenues generated by this project.
During 2007, the County paid the Town one-half of the costs of development.
(Continued)44
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
Note 13.Commitments and Contingencies (Continued)
Gain Sharing Agreement –Vinton Business Center (Continued)
As part of the agreement, the Town agreed to convey a one-half undivided interest in the remaining
real estate of the project. The agreement states that the Town and County plan on making additional
improvements to this project and will share in the costs of that and annual maintenance equally. The
Town and County must jointly agree before any future improvements are made to the property or
before portions of the property are sold. No major improvements were commenced during the current
year.
Roanoke County/Vinton Branch Library
On September 6, 2011, the Town and Roanoke County reached an agreement to purchase property for
a Roanoke County/Vinton Branch Library to be built by Roanoke County. The property cost
$1.25 million, and the Town is responsible for half of that amount,or $625,000. Roanoke County is
responsible for the remainder of the costs. The Town made an additional $100,000 good faith advance
payment in fiscal year 2012 with the remaining costs for the project to be spread out over the next 10
years. The Town will pay $50,000 each year for year’s one through five, and $55,000 per year in
years six through ten. Roanoke County will own the property and add it to its capital assets. The
$50,000 current year contribution is included in principal retirement expenditures on the fund
statement.
Environmental Remediation
The Environmental Protection Agency (EPA) reviewed the 2009 and 2010 annual reports submitted
by the Town to assess compliance with Virginia’s General Permit for Discharges of Stormwater from
Small Municipal Separate Storm Sewer Systems (“General Permit”). The EPA found that the Town
failed to adequately implement the minimum control measures required by the General Permit and/or
failed to adequately document compliance in the Annual Reports as required by the terms of the
General Permit. The Town has submitted its response to the notice of violation to the EPA and is
currently waiting on a final response and resolution to the matter. As of the date of this report, the
Town was not aware of any fines, penalties, or estimated liabilities resulting from the EPA’s notice of
violation.
Note 14.Major Customer/Taxpayer
During fiscal year 2013, approximately 8% of the Town’s business-type revenues were generated by
one industrial customer.
(Continued)45
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
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 fund. The constraints placed on the general fund balance are presented
below:
General Fund
Nonspendable:
Inventories $3,584
Prepaids 15,517
Total nonspendable 19,101
Restricted for:
Public safety 41,676
Public works 183,232
Greenway project 50,000
Total restricted 274,908
Unassigned 2,837,802
Total fund balance $3,131,811
Note 16.New Accounting Standards
The Governmental Accounting Standards Board (GASB) has issued the following Statements which are
not yet effective.
GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, establishes standards for
reclassification of certain item as deferred outflows and inflows of resources that were previously
reported as assets and liabilities. The standard limits the items that should be reported as deferred
outflows and inflows of resources to items specifically identified in authoritative pronouncements.
Additionally, the standard requires that debt issuance costs be recognized as an expense in the period
incurred except any portion related to prepaid insurance costs. Prospective application is required. The
Statement will be effective for the year ending June 30, 2014.
GASB Statement No. 66, Technical Corrections –2012 –an amendment of GASB Statements No. 10
and No. 62, was issued to resolve conflicting guidance that resulted from the issuance of two
pronouncements. The Statement amends GASB Statement No. 10 by removing the provision that limits
fund-based reporting of an entity’s risk financing activities to the general fund and the internal service
fund type. The fund classification should be determined based on the nature of the activity to be
reported. The Statement also amends GASB Statement No. 62 by modifying the specific guidance on
accounting for (1) operating lease payments that vary from a straight-line basis, (2) the difference
between the initial investment (purchase price) and the principal amount of a purchased loan or group
of loans, and (3) servicing fees related to mortgage loans that are sold when the stated service fee rate
differs significantly from a normal servicing fee rate. The Statement will be effective for the year
ending June 30, 2014.
46
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
Note 16.New Accounting Standards (Continued)
GASB Statement No. 67, Financial Reporting for Pension Plans replaces the requirements of GASB
Statements No. 25 and No. 50 as they relate to pension plans that are administered through trusts or
similar arrangements meeting certain criteria. The Statement enhances note disclosures and RSI for
both defined benefit and defined contribution pension plans. The Statement also requires the
presentation of new information about annual money-weighted rates of return in the notes to the
financial Statements and in 10-year RSI schedules. This Statement will be effective for the year ending
June 30, 2014.
GASB Statement No. 68, Accounting and Financial Reporting for Pension Plans replaces the
requirements of GASB Statements No. 27 and No. 50 as they relate to governments that provide
pensions through pension plans administered as trusts or similar arrangements that meet certain criteria.
The Statement requires governments providing defined benefit pensions to recognize the long-term
obligation for pension benefits as a liability for the first time, and to more comprehensively and
comparably measure the annual costs of pension benefits. The Statement also enhances accountability
and transparency through revised and new note disclosures and required supplementary information,
including disclosing descriptive information about the types of benefits provided, how contributions to
the pension plan are determined, and assumptions and methods used to calculate the pension liability.
This Statement will be effective for the year ending June 30, 2015.
GASB Statement No. 69, Government Combinations and Disposals of Government Operations was
issued to provide governmental guidance on governmental combinations and disposals of governmental
operations that does not conflict with GASB Statement No. 34.The objective of this Statement is to
improve financial reporting by addressing accounting and financial reporting for government
combinations and disposals of government operations. A disposal of a government's operations results
in the removal of specific activities of a government. This Statement requires disclosures to be made
about government combinations and disposals of government operations to enable financial Statement
users to evaluate the nature and financial effects of those transactions. This Statement will be effective
for the year ending June 30, 2015.
GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees
was issued to improve accounting and financial reporting by state and local governments that extend
and receive nonexchange financial guarantees. This Statement requires a government that extends a
nonexchange financial guarantee to recognize a liability when qualitative factors and historical data, if
any, indicate that it is more likely than not that the government will be required to make a payment on
the guarantee. This Statement requires a government that has issued an obligation guaranteed in a
nonexchange transaction to recognize revenue to the extent of the reduction in its guaranteed liabilities.
This Statement also provides guidance on the accounting for the government if they are the obligor in
the transaction and on intra-entity nonexchange financial guarantees involving blended component
units. This Statement specifies the information required to be disclosed by governments that extend or
receive nonexchange financial guarantees. This Statement will be effective for the year ending
June 30, 2014.
47
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, 2012 12,232,068$ 15,312,040$ 3,079,972$ 79.89%2,978,778$ 103.40%
June 30, 2011 12,632,410$ 14,800,513$ 2,168,103$ 85.35%3,310,821$ 65.49%
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, 2013
48
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, 2012 -$ 279,700$ 279,700$ 0.00% 3,109,500$ 9.00%
January 1, 2009 -$ 479,500$ 479,500$ 0.00% 3,715,300$ 12.91%
TOWN OF VINTON, VIRGINIA
ANALYSIS OF FUNDING PROGRESS FOR OTHER POSTEMPLOYMENT BENEFITS
June 30, 2013
49
THIS PAGE INTENTIONALLY BLANK
50
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.
THIS PAGE INTENTIONALLY BLANK
TABLE 1
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Governmental activities
Net investment in capital assets 5,704,050$ 5,919,643$ 6,316,937$ 6,760,474$ 7,365,632$ 7,763,470$ 7,500,994$ 7,237,168$ 6,683,653$ 5,775,255$
Restricted 91,676 - 20,053 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Unrestricted 2,219,240 1,972,859 1,491,375 1,362,770 1,650,476 2,451,898 3,431,442 3,238,092 3,355,212 3,471,498
Total governmental activities net position 8,014,966$ 7,892,502$ 7,828,365$ 8,143,244$ 9,036,108$ 10,235,368$ 10,952,436$ 10,495,260$ 10,058,865$ 9,266,753$
Business-type activities
Net investment in capital assets 4,853,969$ 4,838,640$ 5,019,517$ 5,437,639$ 5,342,230$ 5,497,604$ 5,555,583$ 6,072,220$ 6,042,240$ 6,176,039$
Unrestricted 394,976 339,523 661,273 297,150 968,176 1,255,035 1,837,429 1,882,467 2,027,777 2,109,040
Total business-type activities net position 5,248,945$ 5,178,163$ 5,680,790$ 5,734,789$ 6,310,406$ 6,752,639$ 7,393,012$ 7,954,687$ 8,070,017$ 8,285,079$
Primary government
Net investment in capital assets 10,558,019$ 10,758,283$ 11,336,454$ 12,198,113$ 12,707,862$ 13,261,074$ 13,056,577$ 13,309,388$ 12,725,893$ 11,951,294$
Restricted 91,676 - 20,053 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Unrestricted 2,614,216 2,312,382 2,152,648 1,659,920 2,618,652 3,706,933 5,268,871 5,120,559 5,382,989 5,580,538
Total primary government net position 13,263,911$ 13,070,665$ 13,509,155$ 13,878,033$ 15,346,514$ 16,988,007$ 18,345,448$ 18,449,947$ 18,128,882$ 17,551,832$
TOWN OF VINTON, VIRGINIA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
51
TABLE 2
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Expenses
Governmental activities
General government 942,315$ 948,803$ 934,388$ 1,023,227$ 1,037,073$ 906,072$ 1,842,084$ 758,537$ 758,738$ 687,073$
Public safety 3,238,361 3,214,622 3,397,562 3,446,746 3,593,946 3,407,536 3,454,713 2,973,885 2,678,245 2,693,087
Public works 2,074,464 2,062,430 2,243,111 2,457,832 2,455,754 2,905,249 2,058,379 1,583,537 1,505,832 1,201,386
Parks, recreation, and cultural 588,649 553,866 583,569 617,778 610,756 575,895 300,854 456,343 544,242 535,102
Community development 398,517 1,034,510 339,983 393,160 339,304 227,303 218,941 206,510 196,075 223,272
Interest on long-term debt 143,455 183,672 194,159 203,787 211,189 220,551 188,966 140,534 148,719 5,295
Total governmental activities 7,385,761 7,997,903 7,692,772 8,142,530 8,248,022 8,242,606 8,063,937 6,119,346 5,831,851 5,345,215
Business-type activities
Water and sewer 2,946,127 3,044,342 3,002,964 3,238,927 3,189,315 3,148,236 3,035,847 2,380,728 2,174,939 2,197,396
Total business-type activities expense 2,946,127 3,044,342 3,002,964 3,238,927 3,189,315 3,148,236 3,035,847 2,380,728 2,174,939 2,197,396
Total primary government expenses 10,331,888$ 11,042,245$ 10,695,736$ 11,381,457$ 11,437,337$ 11,390,842$ 11,099,784$ 8,500,074$ 8,006,790$ 7,542,611$
Program Revenues
Governmental activities
Charges for services
Public safety 89,115$ 91,196$ 119,870$ 108,187$ 172,357$ 128,216$ 231,207$ 203,532$ 193,264$ 132,263$
Public works 110,115 110,460 110,380 110,175 132,382 114,274 110,220 114,267 113,917 113,966
Other activities 495,133 440,883 466,306 489,901 436,835 450,338 370,838 502,979 544,415 586,866
Operating grants and contributions 1,287,108 1,281,998 1,318,394 1,366,971 1,454,813 1,691,163 1,282,244 1,102,340 1,121,561 1,122,314
Capital grants and contributions 53,749 66,545 75,188 8,034 2,146 91,590 1,337,016 123,240 737,716 -
Total governmental activities program revenues 2,035,220 1,991,082 2,090,138 2,083,268 2,198,533 2,475,581 3,331,525 2,046,358 2,710,873 1,955,409
Business-type activities
Charges for services
Water and sewer 2,754,147 2,753,851 2,672,156 2,439,634 2,289,754 2,255,505 2,274,224 2,143,032 1,873,821 1,807,775
Capital grants and contributions - - - - 303,556 - 48,540 - - -
Total business-type activities program revenues 2,754,147 2,753,851 2,672,156 2,439,634 2,593,310 2,255,505 2,322,764 2,143,032 1,873,821 1,807,775
Total primary government program revenues 4,789,367$ 4,744,933$ 4,762,294$ 4,522,902$ 4,791,843$ 4,731,086$ 5,654,289$ 4,189,390$ 4,584,694$ 3,763,184$
Net (expense) revenue
Governmental activities (5,350,541)$ (6,006,821)$ (5,602,634)$ (6,059,262)$ (6,049,489)$ (5,767,025)$ (4,732,412)$ (4,072,988)$ (3,120,978)$ (3,389,806)$
Business-type activities (191,980) (290,491) (330,808) (799,293) (596,005) (892,731) (713,083) (237,696) (301,118) (389,621)
Total primary government net expense (5,542,521)$ (6,297,312)$ (5,933,442)$ (6,858,555)$ (6,645,494)$ (6,659,756)$ (5,445,495)$ (4,310,684)$ (3,422,096)$ (3,779,427)$
(Continued)
(accrual basis of accounting)
TOWN OF VINTON, VIRGINIA
CHANGE IN NET POSITION BY COMPONENT
Last Ten Fiscal Years
52
TABLE 2
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
(accrual basis of accounting)
TOWN OF VINTON, VIRGINIA
CHANGE IN NET POSITION BY COMPONENT
Last Ten Fiscal Years
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes 453,135$ 510,558$ 429,409$ 419,401$ 434,176$ 467,806$ 411,866$ 397,200$ 397,424$ 400,896$
Sales tax 1,284,455 1,247,566 1,171,590 1,113,322 1,132,519 1,132,083 1,148,136 1,065,843 1,177,089 1,156,165
Business license tax 491,996 460,638 454,636 456,536 437,797 452,672 413,400 403,818 192,344 183,824
Meals tax 912,226 909,814 864,448 842,384 861,286 860,961 806,916 715,267 584,998 539,348
Other taxes 692,669 698,412 734,316 755,808 386,703 338,292 397,014 423,145 410,121 380,078
Utilities tax 785,555 782,487 801,264 803,044 795,268 804,812 790,308 719,289 734,279 558,704
Intergovernmental revenue not restricted 807,117 773,617 748,815 664,975 631,320 679,009 755,599 437,496 334,649 308,307
Investment earnings not restricted 4,434 3,020 1,904 3,187 28,917 112,672 210,193 147,368 80,837 36,694
Restricted investment earnings - - - - 187 11,087 145,554 113,317 37,903 -
Gain on disposal of property - - - - - - - 51,366 - 48,103
Other 41,418 184,846 81,373 29,275 16,038 77,077 48,702 27,774 45,384 29,969
Transfers - 500,000 - 78,466 126,018 113,486 61,900 7,500 - -
Total governmental activities 5,473,005 6,070,958 5,287,755 5,166,398 4,850,229 5,049,957 5,189,588 4,509,383 3,995,028 3,642,088
Business-type activities:
Investment earnings not restricted 66 414 1,174 1,824 16,719 67,772 110,024 76,855 42,669 21,425
Restricted investment earnings 762 91 427 1,727 26,873 47,234 - - - -
Other 261,934 287,359 275,208 298,591 236,198 250,838 103,284 53,011 52,300 49,040
Transfers - (500,000) - (78,466) (126,018) (113,486) (61,900) (7,500) - -
Total business-type activities 262,762 (212,136) 276,809 223,676 153,772 252,358 151,408 122,366 94,969 70,465
Total primary government 5,735,767$ 5,858,822$ 5,564,564$ 5,390,074$ 5,004,001$ 5,302,315$ 5,340,996$ 4,631,749$ 4,089,997$ 3,712,553$
Changes in Net Position
Governmental activities 122,464$ 64,137$ (314,879)$ (892,864)$ (1,199,260)$ (717,068)$ 457,176$ 436,395$ 874,050$ 252,282$
Business-type activities 70,782 (502,627) (53,999) (575,617) (442,233) (640,373) (561,675) (115,330) (206,149) (319,153)
Total primary government 193,246$ (438,490)$ (368,878)$ (1,468,481)$ (1,641,493)$ (1,357,441)$ (104,499)$ 321,065$ 667,901$ (66,874)$
Note: Water and sewer charges for service is the Town's most significant source of own-source revenue.
53
TABLE 3
2010 2009 2008 2007 2006 2005 2004
Pre-GASB 54 implementation:
General Fund
Reserved 361,090$ 272,645$ 314,902$ 2,835,003$ 4,625,979$ 3,999,505$ 513,023$
Unreserved 1,322,095 1,698,851 2,439,625 1,747,348 2,927,980 3,011,346 3,101,323
Total general fund 1,683,185$ 1,971,496$ 2,754,527$ 4,582,351$ 7,553,959$ 7,010,851$ 3,614,346$
2013 2012 2011
Post-GASB 54 implementation:
General Fund
Nonspendable 19,101$ 62,746$ 66,341$
Restricted 274,908 17,068 372,271
Assigned - - 100,000
Unassigned 2,837,802 2,584,947 1,196,789
Total general fund 3,131,811$ 2,664,761$ 1,735,401$
Note: 2011 was the first year of implementing GASB 54 which revised fund balance classifications.
TOWN OF VINTON, VIRGINIA
FUND BALANCES - GOVERNMENTAL FUND
Last Ten Fiscal Years
(modified accrual basis of accounting)
54
TABLE 4
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Revenues
Taxes 4,597,882$ 4,529,953$ 4,467,158$ 4,345,947$ 4,049,513$ 4,084,586$ 3,914,205$ 3,726,456$ 3,488,354$ 3,199,342$
Permits, privilege fees, and regulatory licenses 10,861 9,273 10,242 12,116 11,321 14,035 10,852 10,029 9,006 9,160
Fines and forfeitures 73,107 75,989 102,566 94,548 116,463 102,720 103,816 93,022 76,294 92,799
Revenue from use of money and property 105,998 105,666 118,560 156,533 201,341 298,369 527,343 436,303 301,240 228,260
Charges for services 387,049 333,832 355,606 328,116 319,293 270,521 190,513 323,882 358,378 518,493
Other 72,337 18,522 16,860 3,562 4,638 4,718 10,740 5,175 954 6,302
Intergovernmental 2,239,992 2,303,286 2,303,732 2,170,790 2,230,602 2,590,575 3,491,179 1,903,599 2,463,622 1,602,944
Total revenues 7,487,226 7,376,521 7,374,724 7,111,612 6,933,171 7,365,524 8,248,648 6,498,466 6,697,848 5,657,300
Expenditures
General government 632,136 618,951 628,386 641,853 652,359 695,916 660,932 629,650 625,170 546,248
Public safety 3,005,917 2,948,155 3,250,590 3,200,859 3,259,980 3,379,924 3,209,720 2,813,661 2,514,263 2,520,584
Public works 1,892,656 1,834,120 1,990,381 2,164,328 2,219,226 2,357,040 1,779,490 1,479,899 1,438,886 1,440,888
Parks, recreation, and cultural 547,604 518,579 551,240 574,215 571,291 511,481 294,221 445,612 535,139 527,157
Community development 386,592 544,245 333,617 365,366 316,267 221,764 217,263 206,379 222,780 223,204
Capital projects 542,235 160,752 114,309 90,570 384,982 1,962,873 5,899,542 907,147 1,339,795 1,057,436
Debt service:
Principal retirement 335,766 267,595 260,501 253,500 241,585 208,404 154,021 148,208 46,616 59,126
Interest and fiscal charges 174,699 185,715 195,608 205,189 212,090 208,912 202,495 157,905 99,758 5,295
Bond issuance costs 36,638 - - - - 1,856 - - - -
Total expenditures 7,554,243 7,078,112 7,324,632 7,495,880 7,857,780 9,548,170 12,417,684 6,788,461 6,822,407 6,379,938
Excess (deficiency) of revenues over
expenditures (67,017) 298,409 50,092 (384,268) (924,609) (2,182,646) (4,169,036) (289,995) (124,559) (722,638)
Other Financing Sources (Uses)
Proceeds from long-term debt 2,411,641 - - - - - 1,045,000 755,000 3,515,000 -
Premium on issuance of debt - - - - - - 45,554 19,237 6,064 -
Payments to refunded bond escrow agent (2,190,889) - - - - - - - - -
Proceeds from capital lease 313,315 - - - - 227,500 - - - -
Proceeds from sale of capital assets - 130,951 2,124 17,491 15,560 13,836 4,825 51,366 - 253,081
Transfers in - 500,000 - 78,466 126,018 113,486 61,900 7,500 - -
Total other financing sources 534,067 630,951 2,124 95,957 141,578 354,822 1,157,279 833,103 3,521,064 253,081
Net change in fund balances 467,050$ 929,360$ 52,216$ (288,311)$ (783,031)$ (1,827,824)$(3,011,757)$543,108$ 3,396,505$ (469,557)$
Debt service as a percentage of
noncapital expenditures 7.73%6.49%6.33%6.19%6.07%5.53%5.47%5.20%2.67%1.21%
TOWN OF VINTON, VIRGINIA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUND
Last Ten Fiscal Years
(modified accrual basis of accounting)
55
TABLE 5
Public Total Total Actual Value as a
Fiscal Real Personal Machinery Service Mobile Assessed Direct Tax Taxable Percentage of
Year Estate Property and Tools Corporation Homes Value Rate Value Assessed Value
2013 456,795,100$ 43,698,440$7,310,490$ 10,243,530$47,520$ 518,095,080$0.06$ 518,095,080$ 100%
2012 465,957,200 43,682,200 7,232,260 15,347,180 46,800 532,265,640 0.06 532,265,640 100
2011 469,499,100 43,392,270 7,232,700 15,191,110 47,740 535,362,920 0.06 535,362,920 100
2010 468,470,600 42,803,545 7,303,000 15,632,460 48,190 534,257,795 0.06 534,257,795 100
2009 463,014,500 47,556,110 7,191,835 14,933,569 51,675 532,747,689 0.06 532,747,689 100
2008 447,926,300 42,858,012 7,068,115 13,074,644 56,500 510,983,571 0.06 510,983,571 100
2007 429,817,400 40,691,155 7,665,980 14,387,422 60,775 492,622,732 0.06 492,622,732 100
2006 400,424,300 40,889,135 7,231,595 14,041,122 66,340 462,652,492 0.06 462,652,492 100
2005 377,493,200 39,382,275 7,273,105 14,186,848 78,425 438,413,853 0.06 438,413,853 100
2004 357,892,100 36,322,110 7,179,930 16,543,307 75,595 418,013,042 0.06 418,013,042 100
Note: Assessed value equals actual value. Property is assessed at full market value and is reassessed every year.
TOWN OF VINTON, VIRGINIA
ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
56
TABLE 6
Percentage Percentage
of Total Town of Total Town
Customer Revenue Rank Revenue Revenue Rank Revenue
Precision Fabrics Group, Inc.185,976$ 1 6.57% 61,010 2 4.05%
Aramark 97,511 2 3.44% 62,426 1 4.14%
Cardinal Glass 84,288 3 2.98% N/A N/A N/A
The Berkshire 52,395 4 1.85% 21,353 3 1.42%
Blue Ridge Manor Apartments 42,210 5 1.49% 9,992 6 0.66%
Clearview Manor 38,102 6 1.35% 18,181 4 1.21%
RGM Properties 28,211 7 1.00% 13,361 5 0.89%
Roanoke County Schools 20,866 8 0.74% 8,657 7 0.57%
Richard Dickerson/RL Mansard Sq 17,912 9 0.63% N/A N/A N/A
American Efficiency 16,092 10 0.57% 6,547 8 0.43%
583,563$ 201,527$
1) FY 2013 % was based on total water and sewer revenue of $2,830,974
2) FY 2004 % was based on total water and sewer revenue of $1,507,349
Fiscal Year 2013 Fiscal Year 2004
TOWN OF VINTON, VIRGINIA
PRINCIPAL WATER AND SEWER CUSTOMERS
Current Year and Nine Years Ago
57
TABLE 7
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30,Fiscal Year Amount of Levy Years Amount of Levy
2013 635,711$ 598,141$ 94.09%-$ 598,141$ 94.09%
2012 637,626 600,406 94.16%13,528 613,934 96.28%
2011 634,445 591,743 93.27%11,257 603,000 95.04%
2010 637,392 607,701 95.34%13,950 621,651 97.53%
2009 609,402 589,069 96.66%16,229 605,298 99.33%
2008 634,952 623,656 98.22%5,946 629,602 99.16%
2007 605,599 591,286 97.64%10,024 601,310 99.29%
2006 593,382 577,065 97.25%5,765 582,830 98.22%
2005 580,586 568,645 97.94%4,765 573,410 98.76%
2004 543,144 529,921 97.57%9,531 539,452 99.32%
Source: Detailed Town property tax records.
TOWN OF VINTON, VIRGINIA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Total Collections to Date
Collected within the
Fiscal Year of the Levy
58
TABLE 8
Fiscal
Year Water Sewer Water Sewer
2013 15.92$ 23.39$ 7.97$ 11.68$
2012 15.92 23.39 7.97 11.68
2011 15.92 23.39 7.97 11.68
2010 13.84 20.34 6.93 10.16
2009 12.59 18.49 6.30 9.24
2008 12.59 18.49 6.30 9.24
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
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
59
TABLE 9
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Debt limit 51,809,508$ 53,226,564$ 53,536,292$53,425,780$ 53,274,769$ 44,792,630$42,981,740$ 40,042,300$ 37,757,163$ 35,796,770$
Total net debt applicable to limit 10,118,536 7,125,222 7,103,808 7,548,025 7,978,160 8,394,491 8,753,625 7,140,228 5,643,925 1,772,906
Legal debt margin 41,690,972$ 46,101,342$ 46,432,484$45,877,755$ 45,296,609$ 36,398,139$34,228,115$ 32,902,072$ 32,113,238$ 34,023,864$
Total net debt applicable to the limit
as a percentage of debt limit 19.53% 13.39% 13.27% 14.13% 14.98% 18.74% 20.37% 17.83% 14.95%4.95%
Legal Debt Margin Calculation for Fiscal Year 2013
Assessed value 518,095,080$
Debt limit (10% of assessed value)51,809,508$
Less debt applicable to limit:
General obligation bonds 10,118,536
Legal debt margin 41,690,972$
TOWN OF VINTON, VIRGINIA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
60
TABLE 10
Percentage of
Actual Value
Fiscal General of Taxable Per Capital Revenue Obligations
Year Bonded Debt Property Capita Leases Bonds Payable
2013 4,176,641$ 0.81%516$ 257,549$ -$ 425,000$
2012 2,700,000 0.51%332 - 1,360,000 475,000
2011 2,845,000 0.53%351 47,595 1,435,000 -
2010 2,990,000 0.56%383 93,096 1,505,000 -
2009 3,130,000 0.59%397 136,595 1,575,000 -
2008 3,265,000 0.64%413 178,180 1,640,000 -
2007 3,360,000 0.68%424 4,084 1,700,000 -
2006 2,410,000 0.52%310 28,105 1,735,000 -
2005 2,500,000 0.57%321 51,313 1,015,000 -
2004 - 0.00%- 97,929 - -
Total Percentage of
Fiscal General Revenue Primary Personal Per
Year Bonded Debt Bonds Government Income Capita
2013 5,941,895$ 2,340,000$ 13,141,085$ 274.40%1,624$
2012 3,950,222 2,450,000 10,935,222 234.06%1,345
2011 4,258,808 2,555,000 11,141,403 244.23%1,376
2010 4,558,026 2,655,000 11,801,122 258.69%1,510
2009 4,848,160 2,750,000 12,439,755 272.69%1,579
2008 5,129,491 2,750,000 12,962,671 272.85%1,640
2007 5,393,625 - 10,457,709 242.99%1,320
2006 4,730,228 - 8,903,333 215.67%1,144
2005 3,143,925 - 6,710,238 169.62%862
2004 1,772,906 - 1,870,835 48.66%240
TOWN OF VINTON, VIRGINIA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities –
General Bonded Debt Other Governmental Activities Debt
Business-type Activities
61
TABLE 11
Less:Net
Fiscal Gross Operating Available
Year Revenue Expenses Revenue Principal Interest Coverage
2013 3,016,909$ 2,946,127$ 70,782$ 428,247$ 215,281$ 0.11
2012 3,041,715 3,042,495 (780) 413,586 232,992 (0.00)
2011 2,948,965 3,002,964 (53,999) 399,218 225,689 (0.09)
2010 2,741,776 3,219,466 (477,690) 385,135 195,038 (0.82)
2009 2,569,544 3,164,227 (594,683) 281,331 213,792 (1.20)
2008 2,621,349 3,134,236 (512,887) 272,788 222,032 (1.04)
2007 2,536,072 3,035,847 (499,775) 150,660 172,534 (1.55)
2006 2,272,898 2,380,728 (107,830) 123,952 94,285 (0.49)
2005 1,968,790 2,174,939 (206,149) 69,590 42,347 (1.84)
2004 1,878,240 2,197,396 (319,156) 75,091 23,886 (3.22)
Last Ten Fiscal Years
PLEDGED REVENUE COVERAGE
TOWN OF VINTON, VIRGINIA
Debt Service
Notes: Details regarding the Town’s outstanding debt can be found in the Notes to Financial Statements.
62
TABLE 12
Fiscal Total Per Capita Public
Year Personal Personal School Unemployment
Ended Population (1)Income (2) Income (2) Enrollment (3)Rate (4)
2013 8,092 4,789,030$ 40,688$ 14,369 5.90%
2012 8,130 4,672,000 39,866 14,454 5.70%
2011 8,098 4,561,791 39,315 14,259 5.70%
2010 7,814 4,561,791 39,315 14,474 6.30%
2009 7,876 4,561,791 39,315 14,650 4.60%
2008 7,905 4,750,916 41,019 14,802 2.80%
2007 7,922 4,303,761 37,324 14,777 2.60%
2006 7,782 4,128,137 35,978 14,728 2.80%
2005 7,782 3,955,970 34,823 14,365 3.10%
2004 7,782 3,844,855 34,296 14,279 2.70%
Sources:
(1) From U.S. Census Bureau link at www.rvarc.org
(4) Virginia Employment Commission www.vawc.virginia.gov/analyzer
TOWN OF VINTON, VIRGINIA
DEMOGRAPHIC STATISTICS
Last Ten Fiscal Years
(3) Virginia Department of Education - Membership Reporting www.doe.virginia.gov/statistics
(2) Personal Income and Per Capita Personal Income from the U.S. Department of Commerce
Bureau of Economic Analysis. Latest information available is for 2013 at
www.bea.gov/regional/docs/income.
63
TABLE 13
Percentage Percentage
of Total Town of Total Town
Employer Employees Rank Employment Employees Rank Employment
Precision Fabrics Group, Inc.196 1 2.96%500 1 6.61%
Kroger 189 2 2.85%133 5 1.76%
Berkshire 164 3 2.48%173 2 2.29%
Roanoke County Schools (Vinton)127 4 1.92%171 3 2.26%
McDonalds 88 5 1.33%N/A N/A N/A
Aramark Uniform Services 87 6 1.31%140 4 1.85%
Town of vinton 83 7 1.25%94 6 1.24%
Lancerlot 55 8 0.83%N/A N/A N/A
Fiscal Year 2013 Fiscal Year 2004
TOWN OF VINTON, VIRGINIA
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
Lancerlot 55 8 0.83%N/A N/A N/A
Famous Anthony's 48 9 0.72%N/A N/A N/A
Super Dollar 31 10 0.47%N/A N/A N/A
1,068 16.12%1,211 16.01%
Source: Total TOV Employment – Roanoke Valley Regional Commission (Planning)
N/A - Not Available
64
TABLE 14
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Function/Program
General government
Management services 4 4 4 4 4 3 4 4 4 4
Finance 6 6 5 5 5 5 5 5 6 5
Planning 3 3 3 3 3 3 3 3 3 3
Police
Officers 24 24 25 24 24 24 25 21 23 17
Civilians 2 2 2 10 10 10 7 11 11 12
Fire
Firefighters and officers 9 9 9 9 9 9 9 9 9 10
Other public works 32 32 34 33 33 32 34 31 32 31
Parks, recreation, and cultural 3 3 3 3 3 2 2 5 13 12
Total 83 83 85 91 91 88 89 89 101 94
TOWN OF VINTON, VIRGINIA
FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
65
TABLE 15
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Function/Program
General government
Fleet equipment 117 117 117 117 117 62 62 60 60 72
Pieces of equipment maintained 117 117 117 117 117 62 62 60 60 60
Public safety
Police
Arrests 582 667 546 531 658 598 504 600 744 517
Parking violations 48 56 82 139 84 62 16 135 156 78
Traffic violations 1,408 1,734 1,933 2,431 3,088 3,034 3,087 2,743 2,725 1,319
EMS
Emergency responses 2,654 2,872 2,319 2,219 2,369 2,397 2,459 1,536 2,095 2,007
Fire
Emergency responses 306 677 514 476 764 1,038 673 1,900 2,831 2,650
Public works
Refuse collection
Refuse collected (tons per day)12.92 12.75 12.70 14.00 15.90 18.10 19.00 17.30 17.30 16.80
Recyclables collected (tons per day)0.68 2.00 2.00 1.60 1.60 1.70 1.30 1.80 1.50 N/A
Other public works
Street resurfacing (miles)2.17 1.80 1.80 1.90 3.50 11.10 - - 2.20 N/A
Parks, recreation, and cultural
Parks and recreation - attendees
Vinton Dogwood Festival (4-day)25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Vinton Bluegrass Festival (4-day)Closed Closed Closed Closed 20,000 20,000 20,000 20,000 20,000 20,000
4th of July 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000
Enchanted Eve (Co-Sponsor Roanoke County)Closed Closed Closed 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Vinton Fall Festival (Co-Sponsor Chamber of Commerce)6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000
Water
Number of customer accounts 5,071 5,051 5,044 5,040 5,022 4,985 4,984 4,916 4,793 4,763
Miles of distribution lines 61 61 61 61 61 60 60 56 56 56
Volume pumped (million gallons per day average)1.21 1.23 1.26 1.47 1.04 1.29 1.26 1.30 1.30 1.20
Sewer
Number of customer accounts 4,636 4,607 4,610 4,609 4,600 4,571 4,573 4,511 4,460 4,430
Miles of collection lines 60 60 60 60 60 59 57 54 54 53
Waste/Water treated (million gallons per day)0.96 0.99 1.09 1.27 1.04 1.24 1.20 1.20 1.49 1.50
N/A - Not available.
Refuse collected (tons per day) - based on 260 collection days per year.
Recyclables collected (tons per day) - based on 130 collection days per year.
TOWN OF VINTON, VIRGINIA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
66
TABLE 16
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Function/Program
Public safety
Law enforcement vehicles 25 26 27 27 29 27 19 20 18 16
Fire stations 1 1 1 1 1 1 1 1 1 1
Public works
Primary streets (lane miles)21.62 21.62 21.62 21.62 21.62 21.62 18.28 18.78 18.78 16.50
Secondary streets (lane miles)66.32 66.32 66.32 66.32 66.32 66.32 68.78 65.96 65.96 64.40
Streetlights 500 500 500 500 500 500 500 500 500 500
Parks, recreation, and cultural
Community centers
Vinton Senior Program (No. of Events/Attendance)253/3775 231/4033 174/3396 1/18 240/4236 180/3600 180/3600 180/3600 180/3600 180/3600
Charles R. Hill Center (Rentals)437 299 218 295 351 205 257 227 227 227
Skate Park Closed Closed Closed Closed Closed 2,400 2,400 2,400 2,400 2,400
Vinton War Memorial 301 200 202 271 277 151 - - 449 616
Parks/athletic fields
Gearhart Park (TOV owned-Leased to Rke County)N/A N/A N/A N/A 37/3000 N/A N/A N/A N/A N/A
Jaycee Field (Seasonal ballgames)Closed Closed Closed Closed Closed Closed Closed Closed 56 56
TOWN OF VINTON, VIRGINIA
CAPITAL ASSET AND INFRASTRUCTURE STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Jaycee Field (Seasonal ballgames)Closed Closed Closed Closed Closed Closed Closed Closed 56 56
Greenway (3/4 Mile) Cinder Surface 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Lawfit Course (5 Fitness Stations)N/A N/A 1,120 1,120 1,120 1,120 - 1,120 - -
War Memorial Playground 6,000 6,000 6,000 6,000 6,000 6,000 5,000 6,000 6,000 4,000
Vinton Municipal Pool 10,562 10,176 12,246 11,270 11,000 11,000 7,100 7,147 6,763 7,531
Water and sewer
Water mains (miles)61 61 61 61 61 60 60 56 56 56
Sanitary sewers (miles)60 60 60 60 60 59 59 54 54 53
Stormwater
Storm sewers (miles)12 12 12 12 12 12 12 11 11 11
Signalized Street Intersections
Traffic Signals (each)11 11 11 11 11 11 11 11 11 11
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THIS PAGE INTENTIONALLY BLANK
68
COMPLIANCE SECTION
69
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 ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Honorable Members of the Town Council
Town of Vinton. Virginia
We have audited, in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards,issued by the Comptroller General of the United States; and Specifications for Audits of
Counties, Cities, and Towns issued by the Auditor of Public Accounts of the Commonwealth of
Virginia, the financial statements of the governmental activities, the business-type activities, and each
major fund of the Town of Vinton (the “Town”), as of and for the year ended June 30, 2013, and the
related notes to the financial statements, which collectively comprise the Town’s basic financial
statements, and have issued our report thereon dated November 1, 2013.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Town’s
internal control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of Town’s internal control.
Accordingly, we do not express an opinion on the effectiveness of Town’s internal control.
Our consideration of internal control was for the limited purpose described in the preceding
paragraph and was not designed to identify all deficiencies in internal control that might be material
weaknesses or, significant deficiencies and therefore, material weaknesses or significant deficiencies
may exist that were not identified. However, as described in the accompanying schedule of findings
and responses, we identified certain deficiencies in internal control that we consider to be
material weaknesses.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a
timely basis.We consider the deficiencies described in the accompanying schedule of findings and
responses as items 07-1 and 13-1 to be material weaknesses.
70
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 an instance of noncompliance or other matters that is
required to be reported under Government Auditing Standards and which is described in the
accompanying schedule of findings and responses as item 13-2.
Town of Vinton’s Response to Findings
The Town’s responses to the findings identified in our audit are described in the accompanying
schedule of findings and responses. The Town’s responses were not subjected to the auditing procedures
applied in the audit of the financial statements and, accordingly, we express no opinion on the responses.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s
internal control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
CERTIFIED PUBLIC ACCOUNTANTS
Roanoke, Virginia
November 1, 2013
71
TOWN OF VINTON, VIRGINIA
SUMMARY OF COMPLIANCE MATTERS
June 30, 2013
As more fully described in the Independent Auditor’s Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards, we performed tests of the Town’s compliance with certain provisions of laws,
regulations, contracts and grants shown below.
STATE COMPLIANCE MATTERS
Code of Virginia:
Budget and Appropriation Laws
Cash and Investment Laws
Conflicts of Interest Act
Debt Provisions
Local Retirement Systems
Procurement Laws
Uniform Disposition of Unclaimed Property Act
State Agency Requirements:
Highway Maintenance Funds
LOCAL COMPLIANCE MATTERS
Town Charter
72
TOWN OF VINTON, VIRGINIA
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2013
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 information technology.
Recommendation:
Steps should be taken to eliminate performance of conflicting duties where possible or to implement
effective compensating controls.
Management’s Response:
Management noted this finding. The Finance Director has segregated duties,to the extent practical,
to minimize instances where the same person has complete control of a transaction or conflicting
duties.
13-1:Audit Adjustments (Material Weakness)
Condition:
A significant number of audit adjustments were necessary for the financial statements to be in
compliance with generally accepted accounting principles. The adjustments related to improper
accrual or recording of issuance and refunding of long-term debt, capital leases, accrued interest and
payroll, other post employment benefits, bond issuance costs, deferred amount on refunding,
construction in process, and deferred revenue and allowances for vehicle licenses fees and personal
property and real estate taxes.
Recommendation:
Accounting procedures should be formulated to ensure all asset and liability accounts are recorded in
the general ledger or clearly compiled in subsidiary ledgers for entity wide balances that are not
recorded on the fund level general ledger. All balances should be periodically reconciled between the
subsidiary ledgers and the general ledger, especially at year end, to ensure accurate financial
reporting.All activities should be evaluated beyond transactional processing and also focus on the
financial reporting implications of those activities.
Management’s Response:
Management agrees with the above finding.
73
TOWN OF VINTON, VIRGINIA
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2013
B.FINDINGS –COMMONWEALTH OF VIRGINIA
13-2:Budget Appropriations
Condition:
After audit adjustments, expenditures exceeded budgeted appropriations in the debt service and
capital projects categories.
Recommendation:
Steps should be taken to ensure that excess expenditures over budgeted appropriations are approved
by Town Council and the budget amended accordingly.
Management’s Response:
Town Council met in June 2013 and additional budget appropriations were approved for known
expenditures at that time. Auditors found additional expenditures during fieldwork.