HomeMy WebLinkAboutFY 2013 - 2014 - Annual Comprehensive Financial Reports (ACFRs)Comprehensive Annual Financial Report
For Fiscal Year Ending June 30, 2014
TOWN OF VINTON, VIRGINIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2014
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 .............................................................viii
Directory of Principal Officials.......................................................................................................................ix
Organizational Chart ........................................................................................................................................x
FINANCIAL SECTION
Independent Auditor’s Report ..........................................................................................................................1
Management’s Discussion and Analysis .........................................................................................................3
Basic Financial Statements
Government-wide Financial Statements
Exhibit 1 Statement of Net Position ...................................................................................................12
Exhibit 2 Statement of Activities ........................................................................................................13
Fund Financial Statements
Exhibit 3 Balance Sheet –Governmental Fund .................................................................................14
Exhibit 4 Reconciliation of the Governmental Fund Balance Sheet
to the Statement of Net Position......................................................................................15
Exhibit 5 Statement of Revenues, Expenditures, and Changes in
Fund Balance –Governmental Fund ..............................................................................16
Exhibit 6 Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balance of the Governmental Fund to the Statement of Activities ..................17
Exhibit 7 Statement of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual –General Fund .................................................................................18
Exhibit 8 Statement of Net Position –Proprietary 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 ......................................55
Exhibit 12 Analysis of Funding Progress for Other Postemployment Benefits ..................................56
TOWN OF VINTON, VIRGINIA
TABLE OF CONTENTS
(Continued)
Page
STATISTICAL SECTION
Table 1 Net Position by Component .......................................................................................................58
Table 2 Change in Net Position by Component .....................................................................................59
Table 3 Fund Balances –Governmental Fund .......................................................................................61
Table 4 Changes in Fund Balances –Governmental Fund ....................................................................62
Table 5 Assessed Value and Actual Value of Taxable Property ...........................................................63
Table 6 Principal Water and Sewer Customers ......................................................................................64
Table 7 Property Tax Levies and Collections ........................................................................................65
Table 8 Water and Sewer Rates ..............................................................................................................66
Table 9 Legal Debt Margin Information ................................................................................................67
Table 10 Ratios of Outstanding Debt by Type .........................................................................................68
Table 11 Pledged Revenue Coverage .......................................................................................................69
Table 12 Demographic Statistics ..............................................................................................................70
Table 13 Principal Employers ...................................................................................................................71
Table 14 Full-Time Equivalent Town Government Employees by Function/Program ..........................72
Table 15 Operating Indicators by Function/Program ...............................................................................73
Table 16 Capital Asset and Infrastructure Statistics by Function/Program .............................................74
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.....................................................................................................76
Summary of Compliance Matters ..................................................................................................................78
Schedule of Findings and Responses .............................................................................................................79
INTRODUCTORY SECTION
THIS PAGE INTENTIONALLY BLANK
i
November 26, 2014
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, 2014 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 2013 Water Quality Report,the Town had no water quality violations.
The Virginia Department of Environmental Quality reported statewide recycling rates for
calendar year 2013. The Town of Vinton’s rate was 48.9% and was ranked sixth 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 working closely with Roanoke County on development opportunities and
promoting a shared industrial park. The Town also partners with community groups to hold two
major festivals and several smaller community events throughout the year. In 2014 the Town
will also partner with the Vinton Area Chamber of Commerce for economic development and
business retention, recruitment and promotion.
The Town also participates in the Greenway Commission, the purpose of which is to identify
possible greenway locations in the Roanoke Valley area. Through this the Town is building a
greenway that will connect the downtown business district with Roanoke City’s greenway
system. This will allow for an individual to travel from Vinton to Salem on the greenway
system. Vinton is also partnering with the Roanoke-Alleghany Regional Commission to
promote a Blueways Trail on the Roanoke River.
Vinton has maintained stable property tax rates over the years, while continuing to provide high
quality municipal services and responsive government. The 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.
iii
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.
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 four 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 Town of Vinton began working on a $700,000 CDBG Program for its Downtown District.
The improvements include streetlights with underground wiring, façade improvements to
twelve (12) buildings, improvements to the Farmers’ Market area and stage and downtown
intersection improvements. The Town also initiated a new Branding Program for the Town
called “InVinton”. This program was quickly accepted by the citizens and the Vinton Area
Chamber of Commerce.
iv
Major Initiatives (Continued)
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.
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, 2014 to serve as counsel for the Town’s other legal matters.
In June 2013, the Town issued bonds to amounting to $1,968,875. The new bond money was
designated to be used for the following projects:
$939,785 Upgrade project at the Western Virginia Water Authority Wastewater
Treatment Plant.
$323,480 Water line projects on Cleveland, Jackson and Jefferson Streets in the Town
of Vinton next to the downtown revitalization corridor.
$500,000 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 was in severely deteriorated condition and needed to be
replaced immediately.
$205,610 Equipment Purchases within the Public Works Department
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 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. The Town is continuously updating its electronic payment options to
improve efficiency and better serve its customers.
v
Prospects for the Future
The Town of Vinton is currently working with Roanoke County to market two surplused
schools that are located within the Town’s boundaries. These schools have the potential to add
the first mixed-use developments to the Town.
Roanoke County Library Vinton Branch -Roanoke County is building its first urban library
in Downtown Vinton. The current library is outdated and too small for the patrons who use it.
The library will serve more than 200,000 people a year who will also visit stores, shops and
restaurants in the renovated downtown area. This will also be the only County Library on a
mass transit route.
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
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 diversified 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.
Change of Use Grant -. 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.
The grant helps with expenses such as architectural renderings, ISO standards and other code
compliance issues. The grant offers the participant up to $5,000 in assistance and is a 50%
reimbursement of expenses.
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.
vi
Accounting System and Budgetary Controls (Continued)
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.
Independent Audit
Virginia law requires that the financial statements of the Town be audited by a Certified Public
Accountant (or alternatively, by the Auditor of Public Accounts) selected by the Town Council.
Brown, Edwards & Company, L.L.P., has performed an annual audit of the Comprehensive
Annual Financial Report. Their audit was conducted in accordance with generally accepted
auditing standards; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; and Specifications
for Audit of Counties, Cities, and Towns, issued by the Auditor of Public Accounts of the
Commonwealth of Virginia. The auditor’s report, which includes their opinion on the financial
statements of the Town, is contained in this report on page one of the Financial Section. Other
auditor’s reports are included in the Compliance Section.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management’s Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read
in conjunction with it. The Town’s MD&A can be found immediately following the report of
the independent auditors.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial reporting to the Town for its
Comprehensive Annual Financial Report for the fiscal year ended June 30, 2013. The
Certificate of Achievement is a national award that recognizes conformance with the highest
standards for preparation of government financial reports.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily
readable and efficiently organized Comprehensive Annual Financial Report, the contents of
which must conform to program standards. The CAFR must sat isfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The Town of Vinton has
received a Certificate of Achievement for the past eleven fiscal years. We believe our current
report cont inue s to conform with the Cert ificate of Achievement Program requirements, thus,
this report is being submitted to GFOA.
The Town Manager ha s also established a goal for the budget document to be reevaluated as a
budgeting and communication tool. The GFOA budget document standards are being used as a
model for improving the budget document.
Acknowledgements
T he preparation of this report was made po ss ible through the diligent effort of the
Treasurer/F inanc e Office with the supp ort of all departments. Appreciation is expressed to the
members of the Town Council for their interest in the preparation of the Town of Vinton's
comprehensive annual financial report and to the Town's independent auditing firm, Brown ,
Edwards & Company, L.L.P . for their cooperation and input in thi s work.
4o~~o~~
Tr easurer/Finance Director
vii
viii
ix
TOWN OF VINTON, VIRGINIA
DIRECTORY OF PRINCIPAL OFFICIALS
June 30, 2014
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.
x
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 (the “Town”), as of and for
the year ended June 30, 2014, and the related notes to the financial statements, which collectively
comprise the Town’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America, the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, and Specifications for Audits of Counties, Cities,
and Towns issued by the Auditor of Public Accounts of the Commonwealth of Virginia.Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type activities,
and each major fund of the Town, as of June 30, 2014, and the respective changes in financial
position and, where applicable, cash flows thereof and the respective budgetary comparison for the
general fund for the year then ended in accordance with accounting principles generally accepted in
the United States of America.
Change In Accounting Principle
As described in Note 16 to the financial statements, in 2014, the Town adopted new accounting
guidance, GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. Our opinion is
not modified with respect to this matter.
2
Prior Period Adjustments
As described in Note 16 to the financial statements, beginning balances as of June 30, 2013
have been restated to adjust for the correction of an error and for the effects of GASB 65
implementation. Our opinion is not modified with respect to this matter.
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 the 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.
Report on Summarized Comparative Information
We have previously audited the Town’s 2013 financial statements, and on our report dated
November 1, 2013 expressed unmodified opinions on the respective financial statements of the
governmental activities, the business-type activities, and each major fund. In our opinion, the summarized
comparative information presented herein as of and for the year ended June 30, 2013, 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 26, 2014 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 26, 2014
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, 2014. We encourage readers to consider the information presented here in
conjunction with additional information that we have furnished in our letter of transmittal, which can be
found on pages i through vi of this report.
Financial Highlights
The total assets and deferred outflows of resources of the Town exceeded its liabilities and
deferred inflows of resources at the close of the most recent fiscal year by $13,153,992 (net
position). Of this amount, $2,702,480 (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 $60,484. This increase is largely due to total
expenses of $10,881,491 being less than total revenues of $10,941,975. In addition, a
decrease of $828,460 (11.6%) in current and other assets occurred. Capital assets decreased
by $397,507 (1.9%) with the final result being a decrease of 4.3% in total assets.
On the other hand, long-term liabilities decreased by $1,270,882 (9.2%) due to payments on
bonds, while other liabilities decreased by $41,506 (4.2%) which was an offset of a
decrease in accounts payable and related liabilities and an increase in accrued payroll and
related liabilities.
Both deferred outflows and inflows experienced minimal changes during the year.
The final result of all these effects is a 0.5% increase in net position.
As of the close of the current fiscal year, the Town’s governmental fund reported an ending
fund balance of $3,170,176, an increase of $221,597 in comparison with the prior year. This
is mostly due to an increase of $177,992 (4.2%) in total assets particularly due from cash
and cash equivalents as well as an increase in other current assets. In addition to this
positive effect, total liabilities decreased by $80,740 (15.1%) in particular accounts payable
and accrued liabilities, and deferred inflows of resources increased $37,135 (4.6%).
Approximately 92.1% of the ending governmental fund balance, $2,919,657 is available for
spending at the Town’s discretion (unassigned fund balance), and represents 39.3% of the
governmental fund’s expenditures.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Town’s basic financial
statements. The Town’s basic financial statements comprise three components: (1) government-wide
financial statements,(2)fund financial statements, and (3) notes to the financial statements. This report
also contains other supplementary information in addition to the basic financial statements themselves.
Government-wide Financial Statements –The government-wide financial statements are
designed to provide readers with a broad overview of the Town’s finances, in a manner similar to
a private-sector business.
The statement of net position presents information on all of the Town’s assets, deferred
outflows of resources, liabilities, and deferred inflows of resources, with the difference between
the four reported as net position. Over time, increases or decreases in net position may serve as
a useful indicator of whether the financial position of the Town is improving or deteriorating.
4
Overview of the Financial Statements (Continued)
Government-wide Financial Statements (Continued) -The statement of activities presents
information showing how the government’s net position changed during the most recent fiscal
year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will result only in cash flows in future fiscal
periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the Town that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the Town include
general government, public safety, public works, community development, and parks,recreation,
and cultural. The business-type activity of the Town is the water and sewer department.
Fund Financial Statements –A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The Town,
like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds of the Town can be divided
into two categories: governmental funds and proprietary funds.
Governmental Funds –Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources,as well as on
balances of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the government’s near-term
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balance provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The Town adopts an annual appropriated budget for its general fund. A budgetary comparison
statement has been provided for the general fund to demonstrate compliance with this budget.
Proprietary Funds –The Town maintains one type of proprietary fund. Enterprise funds are
used to report the same functions presented as business-type activities in the government-wide
financial statements. The Town uses an enterprise fund to account for its Water and Sewer
Department.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the Water and Sewer Department.
Notes to the Financial Statements –The notes provide additional information that is essential to
a full understanding of the data provided in the government-wide and fund financial statement.
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,the net position was $13,153,992 at the close of the most recent fiscal
year.
By far the largest portion of the Town’s net position (78.0%) reflects its net investment in capital
assets (e.g., land, buildings, infrastructure, machinery, and equipment less any related debt used to acquire
those assets that are still outstanding). The Town uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the Town’s net investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt
must be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
The Town’s Net Position
Governmental Business-Type
Activities Activities Total
Current and other assets $4,467,233 $4,289,241 $1,876,774 $2,883,226 $6,344,007 $7,172,467
Capital assets 9,251,545 9,757,009 11,376,159 11,268,202 20,627,704 21,025,211
Total assets 13,718,778 14,046,250 13,252,933 14,151,428 26,971,711 28,197,678
Deferred outflows
of resources 149,512 163,981 - - 149,512 163,981
Current and other liabilities 512,637 566,432 437,205 424,916 949,842 991,348
Long-term liabilities 4,905,705 5,177,286 7,570,909 8,570,210 12,476,614 13,747,496
Total liabilities 5,418,342 5,743,718 8,008,114 8,995,126 13,426,456 14,738,844
Deferred inflows
of resources 540,775 529,307 - - 540,775 529,307
Net investment in capital
assets 5,427,254 5,626,290 4,834,097 4,761,326 10,261,351 10,387,616
Restricted 190,161 91,676 - - 190,161 91,676
Unrestricted 2,291,758 2,219,240 410,722 394,976 2,702,480 2,614,216
Total net position $7,909,173 $7,937,206 $5,244,819 $5,156,302 $13,153,992 $13,093,508
Unrestricted net position of $2,702,480 may be used to meet the Town’s ongoing obligations to
citizens and creditors.
At the end of the current fiscal year, the Town is able to report positive balances in all three
categories of net position, both for the government as a whole, and for its separate governmental and
business-type activities. The same situation held true for the prior fiscal year.
6
Government-wide Financial Analysis (Continued)
Governmental activities –Governmental activities decreased the Town’s net position by $28,033.
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 an increase over
the prior year. Investment earnings also showed an increase because of the Town’s investments and bond
proceeds being invested in higher yields. However, there was a decrease in gain sharing revenue due to onetime
capital expenditures in Fire and EMS in the County which has an adverse effect on the gain sharing formula.
The Town’s Changes in Net Position
Governmental Business-Type
Activities Activities Total
Revenues
Program revenues
Charges for services $753,455 $694,363 $3,002,970 $2,754,147 $3,756,425 $3,448,510
Operating grants and
contributions 1,382,744 1,287,108 - - 1,382,744 1,287,108
Capital grants and
contributions 114,966 53,749 - - 114,966 53,749
General revenues
Property taxes 448,349 453,135 - - 448,349 453,135
Other taxes 4,120,413 4,166,901 - - 4,120,413 4,166,901
Intergovernmental
unrestricted 756,199 807,117 - - 756,199 807,117
Investment earnings 74,168 4,434 5,308 828 79,476 5,262
Other 28,268 41,418 255,135 261,934 283,403 303,352
Total revenues 7,678,562 7,508,225 3,263,413 3,016,909 10,941,975 10,525,134
Expenses
General government 962,341 942,315 - - 962,341 942,315
Public safety 3,339,148 3,238,361 - - 3,339,148 3,238,361
Public works 1,993,713 2,074,464 - - 1,993,713 2,074,464
Parks, recreation, and
cultural 635,252 588,649 - - 635,252 588,649
Community development 575,557 398,517 - - 575,557 398,517
Interest on long-term
debt 200,584 163,767 - - 200,584 163,767
Water and sewer - - 3,174,896 2,941,797 3,174,896 2,941,797
Total expenses 7,706,595 7,406,073 3,174,896 2,941,797 10,881,491 10,347,870
Change in net position (28,033)102,152 88,517 75,112 60,484 177,264
position –July 1,
as restated 7,937,206 7,835,054 5,156,302 5,081,190 13,093,508 12,916,244
position –June 30 $7,909,173 $7,937,206 $5,244,819 $5,156,302 $13,153,992 $13,093,508
Government-wide Financial Analysis (Continued)
Expenses and Program Revenues – Governmental Activities
Revenues by Source – Governmental Activities
Business-type activities – Business-type activities increased the Town’s net position by $88,517. The Town
increased water and sewer rates 8.7% effective July 1, 2013 with an anticipated 8.9% rate increase for
July 1, 2014 and July 1, 2015.
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
Government Recreation, &
Cultural
Development Long-Term
Debt
Revenues
Charges for
Services
9%
Operating Grants
and Contributions
17%
Capital Grants and
Contributions
1%
6%
17%
Other Taxes
39%
Intergovernmental
Revenue
10%
Other
1%
7
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
$3,170,176, an increase of $221,597 in comparison with the prior year. This is largely due to an increase in total
assets of $177,992 (4.1%) particularly an increase in cash and cash equivalents of $106,301 (2.9%) and a decrease
in restricted cash and cash equivalents of $19,705 (47.3%). Accounts payable and accrued liabilities, accrued
payroll and related liabilities, and unearned revenue decreased by $80,740 (15.1%). This decrease was due to
payables in the prior year for the bond refunding, street paving, 911 wireless reimbursement,and boiler repair at
the Fire Department,and a partial offset due to one more day on the payroll accrual than in prior year.
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 $410,722.
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 $203,569
primarily due to an increase in Categorical Aid by $124,913 (9.4%) and Charges for Services by $47,872
(12.1%).
Differences between the original budget and the final amended budget for expenditures were $273,747
with the majority being 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 102.8% of the budget due to budgeting too low and collections being higher on current property
taxes. Cigarette tax was 82.7% of the budget due to a rate increase from $.20 per pack to $.40 per pack which
decreased revenue as a result of decreased cigarette sales in the Town. This rate was decreased to $.25 per pack in
March 2014 as a result of working with local merchants to regain their sales.
On the other hand, there were also favorable variances on certain expenditures. These were due to a
concerted effort to control and minimize expenditures.
Variances in the governmental fund are in the highway streets account salaries and wages (14.67%) due to a
reclassification of a position to the enterprise fund. Contracted resale items in the War Memorial account was
established to track expenditures for caterers in which there is also an offset revenue account. In Economic
Development, CBDG match expenditures reflect an increase of $6,855 which is the Downtown Improvement Grant
expenditures.
9
General Fund Budgetary Highlights (Continued)
Significant variances in the enterprise fund are in the salaries and wages in the water treatment account. This
increase of 18.7% reflects a reclassified position from the general fund. Contractual services in the current year
were separated in to three expense accounts. Audit services were placed into a separate account as well as services
for rate studies and engineering work, and legal services. This segregation allows for better tracking of actual
expenses. Material and supplies expense decreased over 34.6% primarily due to inventory purchases. Wastewater
treatment costs increased over the prior year by 42.7% as a result of a 19% rate increase in December 2013, which
was retroactive back to July 2013. This retroactive amount for wastewater amounted to $69,731. The remainder of
the increase was attributable to treatable consumption.
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 4.4% due to the corresponding decrease in
the bulk water sale. Expenditures which can be held off without affecting services and operations caused positive
variances on contractual services (54.9%) and materials and supplies expense (40.1%). Wastewater treatment costs
increased 10.2% in the budget due to the projection not factoring in the 19% higher treatment cost which was passed
on by the WVWA in December 2013, which was retroactively applied to July 2013. The unfavorable variance in
the salaries and wage category in water was partially offset by the favorable salaries and wage category in sewer due
to different actual cost allocation for expenditures than what was budgeted.
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, 2014, amounts to $20,627,704 (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 1.9% (a 5.2% decrease for governmental
activities and a 1.0% 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)
Land $1,706,089 $1,706,089 $80,752 $80,752 $1,786,841 $1,786,841
Buildings and systems 5,532,485 5,819,107 7,732,845 8,201,314 13,265,330 14,020,421
Infrastructure 1,440,659 1,532,812 - - 1,440,659 1,532,812
Improvements other than
buildings - - 2,527,672 2,657,790 2,527,672 2,657,790
Machinery and equipment 485,270 611,959 631,614 250,199 1,116,884 862,158
Construction in progress 87,042 87,042 403,276 78,147 490,318 165,189
Total $9,251,545 $9,757,009 $11,376,159 $11,268,202 $20,627,704 $21,025,211
10
Capital Asset and Debt Administration (Continued)
Long-term debt –At the end of the current fiscal year, the Town had total debt outstanding of $11,836,624.
Of this amount, $9,402,362 comprises debt backed by the full faith and credit of the government, $2,225,000 is
related to revenue bond obligations, and $209,262 is related to capital leases.
The Town’s Outstanding Debt
General Obligation and Capital Leases
General obligation bonds $3,724,405 $4,176,641 $5,235,409 $5,941,895 $8,959,814 $10,118,536
Revenue bonds - - 2,225,000 2,340,000 2,225,000 2,340,000
Other obligations 442,548 425,000 - - 442,548 425,000
Capital leases 209,262 257,549 - - 209,262 257,549
$4,376,215 $4,859,190 $7,460,409 $8,281,895 $11,836,624 $13,141,085
The Town’s total debt decreased by $1,304,461, or 9.9%, during the fiscal year. This decrease is due to the
payment of principal payment on outstanding debt.
Additional information on the Town’s long-term debt can be found in Note 6 of this report.
Economic Factors and Next Year’s Budgets and Rates
During the current year, the Town took measures to mitigate the impact of the economic downturn.
Departments were also asked to delay small capital expenditures and to monitor operating expenditures for the
remainder of the fiscal year.
The unemployment rate for Roanoke County (no statistics are available for the Town individually) as
of June 30, 2014 is 5.50%, which is lower than last year’s rate of 5.70%. This compares favorably to
the state’s average unemployment rate as of June 30, 2014 of 5.30% and to the national average rate
of 6.10%.
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 $81,855. The
general fund remains strong with an increase in ending total fund balance of $221,597. It is intended that this
available fund balance will be used for future needs of the Town.
Requests for Information
This financial report is designed to provide a general overview of the Town’s finances for all those with an
interest in the government’s finances. Questions concerning any of the information provided in this report or
requests for additional financial information should be addressed to the Finance Department/Treasurer’s Office,
Town of Vinton, 311 S. Pollard Street, Vinton, Virginia 24179.
THIS PAGE INTENTIONALLY BLANK
11
BASIC
FINANCIAL STATEMENTS
EXHIBIT 1
Governmental Business-type
(For Comparison
Only)
Activities Activities 2014 2013
ASSETS
Cash and cash equivalents (Note 2)3,756,008$ 214,518$ 3,970,526$ 3,949,645$
Receivables, net (Note 3)283,787 571,540 855,327 788,821
Due from other governmental units (Note 4)345,109 - 345,109 313,435
Inventories 3,525 80,425 83,950 44,199
Prepaids 56,833 19,223 76,056 15,517
21,971 991,068 1,013,039 2,060,850
Capital assets: (Note 5)
Nondepreciable 1,793,131 484,028 2,277,159 1,952,030
Depreciable, net 7,458,414 10,892,131 18,350,545 19,073,181
Total assets 13,718,778 13,252,933 26,971,711 28,197,678
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 149,512 - 149,512 163,981
LIABILITIES
Accounts payable and accrued liabilities 251,309 294,977 546,286 711,236
Accrued payroll and related liabilities 207,258 29,545 236,803 156,424
Accrued interest payable 33,594 87,283 120,877 113,088
Customer security deposits - 25,400 25,400 10,600
Unearned revenue 20,476 - 20,476 -
Long-term liabilities: (Note 6)
Due within one year 525,790 480,440 1,006,230 1,528,870
Due in more than one year 4,379,915 7,090,469 11,470,384 12,218,626
Total liabilities 5,418,342 8,008,114 13,426,456 14,738,844
DEFERRED INFLOWS OF RESOURCES
Property taxes 540,775 - 540,775 529,307
NET POSITION
5,427,254 4,834,097 10,261,351 10,387,616
Public safety 140,161 - 140,161 41,676
Parks, recreation, and cultural 50,000 - 50,000 50,000
Unrestricted 2,291,758 410,722 2,702,480 2,614,216
Restricted for:
Net investment in capital assets
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
June 30, 2014
Cash and cash equivalents, restricted (Note 2)
The Notes to Financial Statements are
an integral part of this statement.
12
EXHIBIT 2
Charges for
Capital Grants
Governmental
Business-Comparison
Functions/Programs Expenses Services Contributions Contributions Activities Activities 2014 2013
Governmental activities
962,341$ 103,437$ -$ -$ (858,904)$ (858,904)$ (840,751)$
Public safety 3,339,148 88,364 317,133 55,099 (2,878,552) (2,878,552) (2,898,839)
Public works 1,993,713 110,425 1,065,611 - (817,677) (817,677) (927,648)
Parks, recreation, and cultural 635,252 446,603 - - (188,649) (188,649) (147,966)
Community development 575,557 4,626 - 59,867 (511,064) (511,064) (391,882)
Interest on long-term debt 200,584 - - - (200,584) (200,584) (159,437)
Total governmental activities 7,706,595 753,455 1,382,744 114,966 (5,455,430) (5,455,430) (5,366,523)
Business-type activities
Water and sewer 3,174,896 3,002,970 - - (171,926)$ (171,926) (191,980)
Total business-type activities 3,174,896 3,002,970 - - (171,926) (171,926) (191,980)
Total 10,881,491$3,756,425 1,382,744 114,966 (5,455,430) (171,926) (5,627,356) (5,558,503)
General revenues
Property taxes (Note 10)448,349 - 448,349 453,135
Sales tax 1,287,437 - 1,287,437 1,284,455
Meals tax 900,591 - 900,591 912,226
Utilities tax 787,097 - 787,097 785,555
Business license tax 517,111 - 517,111 491,996
Cigarette tax 266,367 - 266,367 321,976
Other local taxes 361,810 - 361,810 370,693
Unrestricted intergovernmental revenue 756,199 - 756,199 807,117
Unrestricted investment earnings 14,540 7 14,547 4,500
Restricted investment earnings 59,628 5,301 64,929 762
Other 28,268 255,135 283,403 303,352
Total general revenues 5,427,397 260,443 5,687,840 5,735,767
Change in net position (28,033) 88,517 60,484 177,264
NET POSITION AT JULY 1, AS RESTATED (NOTE 16)7,937,206 5,156,302 13,093,508 12,916,244
NET POSITION AT JUNE 30 7,909,173$ 5,244,819$ 13,153,992$ 13,093,508$
General government administration
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF ACTIVITIES
Year Ended June 30, 2014
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
The Notes to Financial Statements are
an integral part of this statement.
13
EXHIBIT 3
Comparison
2014 2013
ASSETS
Cash and cash equivalents 3,756,008$ 3,649,707$
Receivables, net 283,787 265,322
Due from other governmental units 345,109 313,435
Inventories 3,525 3,584
Prepaids 56,833 15,517
Cash and cash equivalents, restricted 21,971 41,676
Total assets 4,467,233$ 4,289,241$
LIABILITIES
Accounts payable and accrued liabilities 227,708$ 400,391$
Accrued payroll and related liabilities 207,258 135,791
20,476 -
Total liabilities 455,442 536,182
DEFERRED INFLOWS OF RESOURCES
Unavailable/unearned revenue 841,615 804,480
FUND BALANCES
Nonspendable 60,358 19,101
Restricted 190,161 91,676
Unassigned 2,919,657 2,837,802
Total fund balances 3,170,176 2,948,579
Total liabilities, deferred inflows of resournces,
and fund balances 4,467,233$ 4,289,241$
General Fund
TOWN OF VINTON, VIRGINIA
BALANCE SHEET
GOVERNMENTAL FUND
June 30, 2014
Unearned revenue
The Notes to Financial Statements are
an integral part of this statement.
14
EXHIBIT 4
(For
Comparison
Only)
2014 2013
Total Fund Balances – Governmental Fund 3,170,176$ 2,948,579$
are different because:
Capital assets used in governmental activities are not financial resources,
and, therefore, are not reported in the funds.
Governmental capital assets 17,953,227$
Less: accumulated depreciation (8,701,682)
9,251,545 9,757,009
Bond premiums are reported as revenues in the governmental funds,
Bond premiums total $(65,279) and accumulated amortization
is $25,143.(40,136) (43,742)
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are deferred in the funds.300,840 275,173
Long-term liabilities are not due and payable in the current period and,
therefore, are not reported in the funds.
General obligation bonds, including unamortized deferred amounts (3,574,893)
(442,548)
(209,262)
Bank stock payable (23,601)
Accrued interest payable (33,594)
Compensated absences (432,075)
Other postemployment benefits (57,279)
(4,773,252) (4,999,813)
Total Net Position – Governmental Activities
Capital lease obligations
Obligations payable – Roanoke County and RCACP
but are amortized over the life of the debt obligation in the
statement of net position:
General Fund
TOWN OF VINTON, VIRGINIA
TO THE STATEMENT OF NET POSITION
June 30, 2014
Amounts reported for governmental activities in the statement of net position
The Notes to Financial Statements are
an integral part of this statement.
15
EXHIBIT 5
Comparison
Only)
2014 2013
REVENUES
General property taxes 445,931$ 430,968$
Other local taxes 4,116,702 4,166,914
Permits, privilege fees, and regulatory licenses 9,085 10,861
Fines and forfeitures 75,059 73,107
Revenues from use of money and property 177,605 105,998
Charges for services 428,920 387,049
Other 33,207 72,337
Gain sharing 542,676 594,173
Recovered costs 132,990 146,157
Non-categorical aid 402,617 401,898
Categorical aid 1,281,587 1,097,764
Total revenues 7,646,379 7,487,226
EXPENDITURES
Current:
General government administration 645,071 632,136
Public safety 3,201,533 3,005,917
Public works 1,795,602 1,892,656
Parks, recreation, and cultural 620,636 547,604
Community development 468,678 386,592
Capital projects 140,478 542,235
Debt service:
Principal retirement 372,923 335,766
Interest and fiscal charges 186,377 174,699
Bond issuance costs - 36,638
Total expenditures 7,431,298 7,554,243
Excess (deficiency) of revenues over expenditures 215,081 (67,017)
OTHER FINANCING SOURCES (USES)
Proceeds from issuance of long-term debt - 2,228,409
Payments to refunded bond escrow agent - (2,190,889)
Proceeds from capital lease - 313,315
Proceeds from sale of uncapitalized items 6,516 -
Total other financing sources 6,516 350,835
Net change in fund balance 221,597 283,818
FUND BALANCE AT JULY 1, AS RESTATED (NOTE 16)2,948,579 2,664,761
FUND BALANCE AT JUNE 30 3,170,176$ 2,948,579$
General Fund
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUND
Year Ended June 30, 2014
The Notes to Financial Statements are
an integral part of this statement.
16
EXHIBIT 6
Comparison
Only)
2014 2013
Net change in fund balance governmental fund 221,597$ 283,818$
(3,344) 33,463
(505,464) (184,943)
25,667 20,999
288,880 (962)
(55,369) (50,223)
Change in net position of governmental activities
The issuance of long-term debt provides current financial
resources to governmental funds,while the repayment of the
principal of long-term debt consumes the current financial
resources of governmental funds.Neither transaction has any
effect on net position.Also,governmental funds report
premiums,discounts,and similar items when debt is issued,
whereas these amounts are deferred and amortized in the
statement of activities.This amount is the net effect of those
differences.
Some items reported in the statement of activities do not
require the use of current financial resources and therefore are
not reported as expenditures in governmental funds.These
activities consist of an increase in compensated absenses of
$(16,210),an increase in other postemployment benefits of
$(15,558),and the recording of a bank stock payable
$(23,601).
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 $(554,422)
exceeded capital outlays $48,958 in the current period.
Amounts reported for governmental activities in the statement of
activities are different because:
TOWN OF VINTON, VIRGINIA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE OF THE GOVERNMENTAL FUND TO THE
STATEMENT OF ACTIVITIES
Year Ended June 30, 2014
General Fund
Revenues in the statement of activities that do not provide
current financial resources are not reported as revenues in the
funds.
The Notes to Financial Statements are
an integral part of this statement.
17
EXHIBIT 7
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
General property taxes 498,264$ 498,264$ 445,931$ (52,333)$
Other local taxes 4,256,056 4,256,056 4,116,702 (139,354)
Permits, privilege fees, and 11,500 11,500 9,085 (2,415)
regulatory licenses
Fines and forfeitures 82,125 82,125 75,059 (7,066)
Revenues from use of money 104,150 104,150 177,605 73,455
and property
Charges for services 394,950 442,822 428,920 (13,902)
Other 5,000 30,348 33,207 2,859
Gain sharing 635,000 635,000 542,676 (92,324)
Recovered costs 150,650 156,086 132,990 (23,096)
Non-categorical aid 400,639 400,639 402,617 1,978
Categorical aid 1,329,533 1,454,446 1,281,587 (172,859)
Total revenues 7,867,867 8,071,436 7,646,379 (425,057)
EXPENDITURES
Total expenditures 7,905,867 8,179,614 7,431,298 748,316
OTHER FINANCING SOURCES
Proceeds from sale of capital assets 3,000 3,000 6,516 3,516
Net change in fund balance (35,000)$ (105,178)$ 221,597$ 326,775$
Budgeted Amounts
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL –
GENERAL FUND
Year Ended June 30, 2014
The Notes to Financial Statements are
an integral part of this statement.
18
EXHIBIT 8
Only)
2014 2013
ASSETS
Current assets:
Total current assets 1,876,774 2,883,226
Noncurrent assets:
Capital assets:
Total noncurrent assets 11,376,159 11,268,202
Total assets 13,252,933 14,151,428
LIABILITIES
Current liabilities:
Total current liabilities 917,645 1,445,654
Noncurrent liabilities:
Total noncurrent liabilities 7,090,469 7,549,472
Total liabilities 8,008,114 8,995,126
NET POSITION
Net investment in capital assets 4,834,097 4,761,326
Unrestricted 410,722 394,976
Total net position 5,244,819$ 5,156,302$
Water and Sewer
Business-type Activities –
Enterprise Fund
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
PROPRIETARY FUND
June 30, 2014
The Notes to Financial Statements are
an integral part of this statement.
19
EXHIBIT 9
Only)
2014 2013
OPERATING REVENUES
Water service charges and fees 1,359,126$ 1,250,580$
Sewer service charges and fees 1,590,870 1,452,410
Water/sewer penalties 52,974 51,157
Other revenue 255,135 261,934
Total operating revenues 3,258,105 3,016,081
OPERATING EXPENSES
Salaries 838,728 773,781
Fringe benefits 271,468 265,366
Contractual services 39,466 84,610
Maintenance 73,095 93,288
Rent, utilities, and insurance 284,829 273,443
Materials and supplies 38,875 95,739
Equipment repairs and rentals 50,710 34,395
Sewage treatment 384,255 269,249
Purchase of water 119,976 106,505
Other 160,127 133,257
Depreciation 655,671 605,004
Total operating expenses 2,917,200 2,734,637
Operating income 340,905 281,444
NON-OPERATING REVENUE (EXPENSE)
Interest income 5,308 828
Interest expense (257,696) (207,160)
Net non-operating expense (252,388) (206,332)
Change in net position 88,517 75,112
NET POSITION AT JULY 1, AS RESTATED (NOTE 16)5,156,302 5,081,190
NET POSITION AT JUNE 30 5,244,819$ 5,156,302$
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, 2014
The Notes to Financial Statements are
an integral part of this statement.
20
EXHIBIT 10
Only)
OPERATING ACTIVITIES
Receipts from customers 2,969,729$ 2,754,227$
Receipts from other sources 255,135 261,934
Payments to suppliers (1,269,078) (957,124)
Payments to employees (1,092,198) (1,033,455)
Net cash provided by operating activities 863,588 1,025,582
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchases of capital assets (720,784) (919,265)
Principal paid on long-term liabilities (1,004,718) (428,247)
Proceeds from long-term liabilities - 2,493,152
Debt issuance costs - (30,526)
Interest paid (256,920) (215,281)
Net cash provided by (used in) capital and related
financing activities (1,982,422) 899,833
INVESTING ACTIVITIES
Interest received on investments 5,308 828
Net increase (decrease) in cash and cash equivalents (1,113,526) 1,926,243
CASH AND CASH EQUIVALENTS
Beginning at July 1, as restated 2,319,112 392,869
RECONCILIATION TO EXHIBIT 8
Cash and cash equivalents 214,518$ 299,938$
Cash and cash equivalents, restricted 991,068 2,019,174
1,205,586$ 2,319,112$
Reconciliation of operating income to net cash
provided by operating activities
Operating income 340,905$ 277,114$
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation 655,671 609,334
Change in certain assets and liabilities:
(Increase) decrease in:
Receivables, net (48,041) (10,520)
Inventories (39,810) 7,725
Prepaids (19,223) 10,730
Increase in:
Accounts payable and accrued liabilities (58,712) 114,907
Accrued payroll and related liabilities 8,912 4,854
Customer security deposits 14,800 10,600
Compensated absences 7,168 551
Other post employment benefits 1,918 287
NONCASH CAPITAL AND RELATED FINANCING
Capital asset purchases included in accounts payable 83,853$ 41,009$
Enterprise Fund
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, 2014
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 $183,478 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
$52,740 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 $475,643 in the current year. Separate financial statements are
not available.
(Continued)23
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 1.Summary of Significant Accounting Policies (Continued)
A.The Financial Reporting Entity (Continued)
Jointly Governed Organizations (Continued)
Western Virginia Regional Industrial Facility Authority:
The Town of Vinton, County of Botetourt, County of Franklin, County of Roanoke, City of
Salem, and the City of Roanoke jointly participate in the Western Virginia Regional Industrial
Facility Authority, which functions to enhance the economic base for members by developing,
owning, and operating facilities on a cooperative basis. The Authority is governed by a board
composed of twelve members appointed by the governing bodies of participating jurisdictions.
Town Council appoints two members. There were no associated costs to members for
participation in the Authority in the current year. A separate financial statement can be obtained
from the Western Virginia Regional Industrial Facility Authority care of Roanoke Regional
Partnership, 111 Franklin Road, SE, Roanoke, Virginia 24011.
Joint Venture
Regional Fire Training Facility:
The Town participates in an intergovernmental agreement with the County of Roanoke and the
Cities of Roanoke and Salem for the operation of a regional fire training facility. The Roanoke
Valley Regional Fire Training Academy Board is responsible for overseeing the management,
operation, and administration of the Academy. Each participating jurisdiction maintains a
leasehold interest in the project and shares costs of operation and maintenance equal to the
jurisdiction’s payment percentage as defined in the agreement. The Town’s participating interest
is 4%. The Town’s share of the operating cost was approximately $5,694 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.
(Continued)24
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 1.Summary of Significant Accounting Policies (Continued)
C.Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
changes in net position) report information on all of the activities of the Town. For the most part,
the effect of interfund activity has been removed from these statements. Interfund services
provided and used are not eliminated in the process of consolidation. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported separately
from business-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include (1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment and (2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as general
revenues.
Separate financial statements are provided for the governmental fund and proprietary fund.
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.
(Continued)25
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 1.Summary of Significant Accounting Policies (Continued)
D.Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
The Town reports the following major governmental fund:
The general fund is the Town’s primary operating fund. It accounts for all financial
resources of the Town, except those required to be accounted for in another fund.
The Town reports the following major proprietary 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.
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.
(Continued)26
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 1.Summary of Significant Accounting Policies (Continued)
E.Budgets and Budgetary Accounting (Continued)
3)Prior to June 30, the budgets for the general and enterprise funds are legally enacted through
passage of an appropriations ordinance. Town Council may, from time to time, amend the
budget providing for additional expenditures and the means for financing them. Town
Council approved additional general fund appropriations of approximately $273,747 during
the fiscal year ended June 30, primarily for capital projects deferred from the prior year and
additional operating expenditures.
4)The appropriations ordinance places legal restrictions on expenditures at the department or
function level. Management can over-expend at the line item level without approval of Town
Council. The appropriation for each department or function can be revised only by Town
Council. The Town Manager is authorized to transfer budget amounts within departments.
All budget data presented in Exhibit 7 is at the legal level of budgetary control.
5)Formal budgetary integration is employed as a management control device during the year for
the general and enterprise funds.
6)Budgets are adopted on a basis consistent with generally accepted accounting principles
(GAAP).
7)Appropriations lapse on June 30.
8)All budget data presented in the accompanying financial statements are revised as of June 30.
F.Cash and Cash Equivalents
Cash and cash equivalents are defined as short-term, highly liquid investments (including
restricted assets) with an original maturity of three months or less when purchased.
G.Allowance for Uncollectible Accounts
The Town calculates its allowance for uncollectible accounts using historical collection data and
specific account analysis.
H.Inventories
Inventories are valued at the lower of cost (first-in, first-out) or market method.
(Continued)27
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 1.Summary of Significant Accounting Policies (Continued)
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.Deferred Outflows/Inflows of Resources
In addition to assets, statements that present financial position also report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position that applies to a future period(s) and so will
not be recognized as an outflow of resources (expense/expenditure) until then. The Town only
has one item that qualifies for reporting in this category. It is the deferred charge on refunding
reported in the government-wide statement of net position. A deferred charge on refunding results
from the difference in the carrying value of refunded debt and its reacquisition price. This amount
is deferred and amortized over the shorter of the life of the refunded or refunding of debt.
In addition to liabilities, statements that present financial position also report a separate section
for deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position that applies to a future period(s) and so will
not be recognized as an inflow of resources (revenue) until that time. The Town has two items
that qualify for reporting in this category. The first item occurs only under a modified accrual
basis of accounting. The item, unavailable revenue, is reported only in the governmental funds
balance sheet. The governmental funds report unavailable revenue from property taxes and other
receivables not collected within 45 days of year-end and property taxes levied to fund future
years. These amounts are deferred and recognized as an inflow of resources in the period that the
amounts become available. The second item relates to unearned property taxes including taxes
received in advance of the year in which they are intended to fund operations. This item is a
deferred inflow in both the governmental fund balance sheet and the entity-wide statement of net
position.
(Continued)28
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 1.Summary of Significant Accounting Policies (Continued)
K.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 $8,405 of interest capitalized in the current year.
L.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.
M.Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type statement of
net position. Bond premiums and discounts are deferred and amortized over the life of the bonds
using the straight-line method. Bonds payable are reported net of the applicable bond premium or
discount. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as expenses.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are reported
as other financing sources, while discounts on debt issuances are reported as other financing uses.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as
debt service expenditures.
N.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.
(Continued)29
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 1.Summary of Significant Accounting Policies (Continued)
N.Fund Balances (Continued)
The classifications are as follows:(Continued)
Committed –Amounts constrained to specific purposes by the Town, using its highest
level of decision making authority; to be reported as committed, amounts cannot be used
for any other purposes unless the same highest level of action is taken to remove or
change the constraint.
Assigned –Amounts the Town intends to use for a specified purpose; intent can be
expressed by the governing body.
Unassigned –Amounts that are available for any purpose; positive amounts are reported
only in the general fund.
Council establishes fund balance commitments by passage of an ordinance or resolution. This is
typically done through adoption and amendment of the budget. Assigned fund balance is
established by Council through adoption or amendment of the budget as intended for specific
purpose (such as the purchase of capital assets, construction, debt service, or for other purposes).
The Town applies restricted resources first when expenditures are incurred for purposes for which
either restricted or unrestricted (committed, assigned, and unassigned) amounts are available.
Similarly, within unrestricted fund balance, committed amounts are reduced first followed by
assigned, and then unassigned amounts when expenditures are incurred for purposes for which
amounts in any of the unrestricted fund balance classifications could be used.
Minimum Fund Balance Policy
The Town does not have a minimum fund balance policy or target for the General Fund.
O.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.
P.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.
(Continued)30
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 1.Summary of Significant Accounting Policies (Continued)
Q.Reclassifications
Certain amounts in the prior-year comparison information have been reclassified for comparative
purposes to conform with the presentation in the current-year financial statements.
Note 2.Deposits and Investments
Deposits
Deposits with banks are covered by the Federal Deposit Insurance Corporation (FDIC) and
collateralized in accordance with the Virginia Security for Public Deposits Act (the “Act”) Section
2.2-4400 et. seq. of the Code of Virginia. Under the Act, banks and savings institutions holding
public deposits in excess of the amount insured by the FDIC must pledge collateral to the
Commonwealth of Virginia Treasury Board. Financial institutions may choose between two
collateralization methodologies and depending upon that choice, will pledge collateral that ranges in
the amounts from 50% to 130% of excess deposits. Accordingly, all deposits are considered fully
collateralized.
Investments
Investment Policy:
Statutes authorize the Town to invest in obligations of the United States or agencies thereof,
obligations of the Commonwealth of Virginia or political subdivisions thereof, obligations of the
International Bank for Reconstruction and Development (World Bank), the Asian Development Bank,
the African Development Bank, “prime quality” commercial paper and certain corporate notes, and
bankers’ acceptances, repurchase agreements, and the State Treasurer’s Local Government
Investment Pool (LGIP). Pursuant to Section 2.1-234.7 Code of Virginia, the Treasury Board of the
Commonwealth sponsors the LGIP and has delegated certain functions to the State Treasurer. The
LGIP reports to the Treasury Board at their regulatory scheduled monthly meetings and the fair value
of the position in LGIP is the same as the value of the pool shares (i.e., the LGIP maintains a stable
net asset value of $1 per share). The investment policy (the “Policy”) specifies that no investment
may have a maturity greater than one year from the date of purchase.
Credit Risk:
As required by state statute, the Policy requires that commercial paper have a short-term debt rating
of no less than “A-1” (or its equivalent) from at least two of the following: Moody’s Investors
Service, Standard & Poor’s, and Fitch Investors Service, provided that the issuing corporation has a
net worth of at least $50 million and its long-term debt is rated “A” or better by Moody’s and
Standard & Poor’s. Bankers’ acceptances and Certificates of Deposit maturing in less than one year
must have a short-term debt rating of at least “A-1” by Standard & Poor’s and “P-1” by Moody’s
Investors Service.
(Continued)31
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 2.Deposits and Investments (Continued)
Investments (Continued)
Credit Risk:(Continued)
Although the intent of the Policy is for the Town to diversify its investment portfolio to avoid
incurring unreasonable risks regarding (i) security type, (ii) individual financial institution or issuing
entity, and (iii) maturity, the Policy places no limit on the amount the Town may invest in any one
issuer.
Interest Rate Risk:
As a means of limiting its exposure to fair value losses arising from rising interest rates, the Town’s
investment policy specifies that no investment may have a maturity greater than two years from the
date of purchase, and the average maturity of the portfolio must not exceed 1 year.
Custodial Credit Risk:
The Policy requires that all investment securities shall be held in safekeeping by a third-party and
evidenced by safekeeping receipts. As required by the Code of Virginia, all security holdings with
maturities over 30 days may not be held in safekeeping with the “counterparty” to the investment
transaction.
As of June 30, the Town did not have any investments.
Deposits
Reconciliation of deposits to Exhibit 1:
Total deposits
Restricted cash and cash equivalents consists of $967,868 of unspent bond proceeds, $23,200 of
utility deposits, $20,207 of evidence found, and $1,764 of flex benefit spending that can only be used
for specific purposes.
(Continued)32
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 3.Receivables
Receivables consist of the following:
Governmental Business-type
Activities Activities Total
Note 4.Due from Other Governmental Units
A summary of funds due from other governmental units was as follows:
(Continued)33
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 5.Capital Assets
Capital asset activity for the year was as follows:
Beginning Ending
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 9,280,710 - - 9,280,710
Machinery and equipment 4,397,754 48,958 - 4,446,712
Infrastructure 2,432,674 - - 2,432,674
Total capital assets, depreciated 16,111,138 48,958 - 16,160,096
Less accumulated depreciation for:
Buildings and improvements 3,461,603 286,622 - 3,748,225
Machinery and equipment 3,785,795 175,647 - 3,961,442
Infrastructure 899,862 92,153 - 992,015
Total accumulated depreciation 8,147,260 554,422 - 8,701,682
Total capital assets, depreciated, net 7,963,878 (505,464)- 7,458,414
Governmental activities
capital assets, net $9,757,009 $(505,464)$- $9,251,545
(Continued)34
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 5.Capital Assets (Continued)
Beginning Ending
Capital assets, not depreciated
Land $80,752 $- - $80,752
Construction in progress 78,147 325,129 - 403,276
Total capital assets, not depreciated 158,899 325,129 - 484,028
Capital assets, depreciated
Utility plant 18,753,606 17,456 - 18,771,062
Sewage treatment contract 3,816,857 - - 3,816,857
Machinery and equipment 1,137,156 421,043 - 1,558,199
Total capital assets, depreciated 23,707,619 438,499 - 24,146,118
Less accumulated depreciation for:
Utility plant 10,552,292 485,925 - 11,038,217
Sewage treatment contract 1,159,067 130,118 - 1,289,185
Machinery and equipment 886,957 39,628 - 926,585
Total accumulated depreciation 12,598,316 655,671 - 13,253,987
Total capital assets, depreciated, net 11,109,303 (217,172 - 10,892,131
Business-type activities
capital assets, net $11,268,202 $107,957 - $11,376,159
Depreciation expense was charged to functions/programs of the primary government as follows:
Construction Commitments
The Town has no active construction projects as of June 30, 2014. 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, and a street water
project that is in the engineering phase.
(Continued)35
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
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 $987,000, which is being funded with general obligation bonds issued
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
General obligation bonds $3,993,409 $- $(269,004)$3,724,405 $272,529
Obligation payable –
Roanoke County 425,000 - (50,000)375,000 50,000
Obligation payable –
- 73,180 (5,632)67,548 7,468
Capital leases 257,549 - (48,287)209,262 49,847
Compensated absences 415,865 153,445 (137,235)432,075 142,584
Other postemployment
benefits 41,721 35,678 (20,120)57,279 -
Business-type
Activities
Bond Premiums 53,190 - (3,671)49,519 3,668
Compensated absences 47,406 19,496 (12,326)54,576 14,189
Other postemployment
benefits 4,487 4,398 (2,480)6,405 -
The general fund has been used to liquidate the liability for compensated absences, net pension
obligation, and net other postemployment benefits.
(Continued)36
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
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 and
RCACP
General Obligation
Bonds Revenue Bonds
Fiscal
Year Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest
2015 $272,529 $113,793 $49,847 $6,762 $57,468 $1,593 $342,583 $155,792 $120,000 $101,925
2016 281,336 105,149 51,458 5,151 57,656 1,408 353,167 145,208 120,000 97,125
2017 283,394 97,635 53,120 3,489 62,848 1,217 364,081 134,295 125,000 92,538
2018 290,332 90,000 54,837 1,772 63,040 1,023 375,330 123,045 130,000 87,750
2019 297,059 81,443 - - 63,240 823 348,217 112,013 135,000 82,450
2020-2024 1,674,858 263,941 - - 138,296 1,236 1,905,146 391,009 795,000 303,125
2025-2029 624,897 41,596 - - - - 1,100,013 125,571 800,000 82,500
2030-2033 - - - - - - 446,872 25,927 - -
$3,724,405 $793,557 $209,262 $17,174 $442,548 $7,300 $5,235,409 $1,212,860 $2,225,000 $847,413
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. Public Improvement Bonds 2.38-4.48%11/04/04 11/01/14 $1,015,000 $50,000 $-
G.O. Public Improvement Bonds 3.64-4.96%06/01/06 10/01/26 755,000 560,000 -
Virginia Revolving Loan Fund:
G.O. Water and Sewer Bonds 3.30%07/24/03 07/01/24 1,250,704 - 771,017
G.O. Water and Sewer Bonds 3.10%10/01/04 10/01/26 2,479,000 - 1,754,250
G.O. Water and Sewer Bonds 3.10%01/12/06 03/01/26 1,210,000 - 827,947
Virginia Association of Counties:
G.O. Public Improvement Bonds 2.50-4.38%12/15/04 08/01/14 2,500,000 120,000 -
G.O. Public Improvement Bonds 3.75-5.25%02/08/07 02/01/27 1,045,000 800,000 -
Capital One Public Funding:
G.O. Public Improvement Bonds 2.85%06/27/13 11/01/32 1,993,152 - 1,882,195
Carter Bank and Trust:
G.O. Refunding Bonds 2.05%06/27/13 11/01/24 2,228,409 2,194,405 -
3,724,405 5,235,409
Plus bond premium, net of amortization 40,136 -
$3,764,541 $5,235,409
(Continued)37
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
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 $- $2,225,000
Plus bond premium, net of amortization - 49,519
$- $2,274,519
Capital Lease:
Kansas State Bank 3.23%09/06/12 10/06/17 $313,315 $209,262 $-
Obligations Payable:
Roanoke County 0.00%07/01/11 07/01/20 $625,000 $375,000 $-
RCACP 2.46 12/31/13 09/30/22 73,180 67,548 -
$442,548 $-
Prior Year Defeasance of Debt
In 2013, the Town defeased certain bonds by placing the proceeds of new bonds in an irrevocable
trust to provide for all future debt service on the refunded bonds through their maturity date. The
deferred costs are being amortized over the life of the new bonds as a component of interest expense.
As a result, the liability for those bonds has been removed from the financial statements. At June 30,
$2,065,000 of these bonds remains outstanding.
Note 7.Defined Benefit Pension Plan
Plan Description
The Town 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 public school divisions and
employees of participating employers are automatically covered by VRS upon employment.
Members earn one month of service credit for each month they are employed and they and their
employer are paying contributions to VRS. Members are eligible to purchase prior public service,
active duty military service, certain periods of leave,and previously refunded VRS service as service
credit in their plan.
Within the VRS Plan, the System administers three different benefit plans for local government
employees –Plan 1, Plan 2, and Hybrid. Each plan has a different eligibility and benefit structure as
set out below:
(Continued)38
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
VRS PLAN 1
About VRS Plan 1 –VRS Plan 1 is a defined benefit plan. The retirement benefit is based on a
member’s age, creditable service,and average final compensation at retirement using a formula.
Employees are eligible for VRS Plan 1 if their membership date is before July 1, 2010, and they were
vested as of January 1, 2013.
Hybrid Opt-In Election –VRS non-hazardous duty covered plan members were allowed to make an
irrevocable decision to opt into the Hybrid Retirement Plan during a special election window held
January 1 through April 30, 2014. The Hybrid Retirement Plan’s effective date for eligible Plan 1
members who opted in was July 1, 2014. If eligible deferred members returned to work during the
election window, they were also eligible to opt into the Hybrid Retirement Plan. Members who were
eligible for an optional retirement plan (ORP) and had prior service under VRS Plan were not eligible
to elect the Hybrid Retirement Plan and remain as plan members or ORP.
Retirement Contributions –Members contribute up to 5% of their compensation each month to
their member contribution account through a pre-tax salary reduction. Some school divisions and
political subdivisions elected to phase in the required 5% member contribution; all employees will be
paying the full 5% by July 1, 2016. Member contributions are tax-deferred until they are withdrawn
as part of a retirement benefit or as a refund. The employer makes a separate actuarially determined
contribution to VRS for all covered employees. VRS invests both member and employer
contributions to provide funding for the future benefit payment.
Creditable Service –Creditable service includes active service. Members earn creditable service for
each month they are employed in a covered position. It also may include credit for prior service the
member has purchased or additional creditable service the member was granted. A member’s total
creditable service is one of the factors used to determine their eligibility for retirement and to
calculate their retirement benefit. It also may count toward eligibility for the health insurance credit
in retirement, if the employer offers the health insurance credit.
Vesting –Vesting is the minimum length of service a member needs to qualify for a future retirement
benefit. Members become vested when they have at least five years (60 months) of creditable
service. Vesting means members are eligible to qualify for retirement if they meet the age and
service requirements for their plan. Members also must be vested to receive a full refund of their
member contribution account balance if they leave employment and request a refund. Members are
always 100% vested in the contributions that they make.
Calculating the Benefit –The Basic Benefit is calculated based on a formula using the member’s
average final compensation, a retirement multiplier,and total service credit at retirement. It is one of
the benefit payout options available to a member at retirement. An early retirement reduction factor
is applied to the Basic Benefit if the member retires with a reduced retirement benefit or selects a
benefit payout option other than the Basic Benefit.
(Continued)39
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
VRS PLAN 1 (Continued)
Average Final Compensation –A member’s average final compensation is the average of the 36
consecutive months of highest compensation as a covered employee.
Service Retirement Multiplier –The retirement multiplier is a factor used in the formula to
determine a final retirement benefit. The retirement multiplier for non-hazardous duty members is
1.7%. The retirement multiplier for sheriffs and regional jail superintendents is 1.85%. The
retirement multiplier of eligible political subdivision hazardous duty employees other than sheriffs
and regional jail superintendents is 1.7% or 1.85% as elected by the employer.
Normal Retirement Age –Age 65.
Earliest Unreduced Retirement Eligibility –Members who are not in hazardous duty positions are
eligible for an unreduced retirement benefit at age 65 with at least five years of creditable service or
at age 50 with at least 30 years of creditable service. Hazardous duty members are eligible for an
unreduced retirement benefit at age 60 with at least five years of creditable service or age 50 with at
least 25 years of creditable service.
Earliest Reduced Retirement Eligibility –Members may retire with a reduced benefit as early as
age 55 with at least five years of creditable service or age 50 with at least 10 years of creditable
service.
Cost-of-Living Adjustment (COLA) in Retirement –The Cost-of-Living Adjustment (COLA)
matches the first 3% increase in the Consumer Price Index for all Urban Consumers (CPI-U) and half
of any additional increase (up to 4%) up to a maximum COLA of 5%.
For members who retire with an unreduced benefit or with a reduced benefit with at least 20 years of
creditable service, the COLA will go into effect on July 1 after one full calendar year from the
retirement date. For members who retire with a reduced benefit and who have less than 20 years of
creditable service, the COLA will go into effect on July 1 after one calendar year following the
unreduced retirement eligibility date.
The COLA is effective July 1 following one full calendar year (January 1 to December 31) under any
of the following circumstances:
The member is within five years of qualifying for an unreduced retirement benefit as of
January 1, 2013.
The member retires on disability.
The member retires directly from short-term or long-term disability under the Virginia
Sickness and Disability Program (VSDP).
(Continued)40
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
VRS PLAN 1 (Continued)
The COLA is effective July 1 following one full calendar year (January 1 to December 31) under any
of the following circumstances: (Continued)
The member is involuntarily separated from employment for causes other than job
performance or misconduct and is eligible to retire under the Workforce Transition Act or the
Transitional Benefits Program.
The member dies in service and the member’s survivor or beneficiary is eligible for a
monthly death-in-service benefit. The COLA will go into effect on July 1 following one full
calendar year (January 1 to December 31) from the date the monthly benefit begins.
Disability Coverage –Members who are eligible to be considered for disability retirement and retire
on disability, the retirement multiplier is 1.7% on all service, regardless of when it was earned,
purchased,or granted. VSDP members are subject to a one-year waiting period before becoming
eligible for non-work related disability benefits.
Purchase of Prior Service –Members may be eligible to purchase service from previous public
employment, active duty military service, an eligible period of leave,or VRS refunded service as
creditable service in their plan. Prior creditable service counts toward vesting, eligibility for
retirement,and the health insurance credit. Only active members are eligible to purchase prior
service. When buying service, members must purchase their most recent period of service first.
Members also may be eligible to purchase periods of leave without pay.
VRS PLAN 2
VRS Plan 2 is the same as VRS Plan 1 except for the following:
Employees are eligible for VRS Plan 2 if their membership date is on or after July 1, 2010, or their
membership date is before July 1, 2010, and they were not vested as of January 1, 2013.
Average Final Compensation –A member’s average final compensation is the average of their 60
consecutive months of highest compensation as a covered employee.
Service Retirement Multiplier –For non-hazardous duty members the retirement multiplier is
1.65% for creditable service earned, purchased,or granted on or after January 1, 2013.
Normal Retirement Age –Normal Social Security retirement age.
(Continued)41
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
VRS PLAN 2 (Continued)
Earliest Unreduced Retirement Eligibility –Members who are not in hazardous duty positions are
eligible for an unreduced retirement benefit when they reach normal Social Security retirement age
and have at least five years of creditable service or when their age and service equal 90.
Earliest Reduced Retirement Eligibility –Members may retire with a reduced benefit as early as
age 60 with at least five years of creditable service.
Cost-of-Living Adjustment (COLA) in Retirement –The Cost-of-Living Adjustment (COLA)
matches the first 2% increase in the CPI-U and half of any additional increase (up to 2%), for a
maximum COLA of 3%.
Disability Coverage –Members who are eligible to be considered for disability retirement and retire
on disability, the retirement multiplier is 1.65% on all service, regardless of when it was earned,
purchased,or granted. VSDP members are subject to a one-year waiting period before becoming
eligible for non-work related disability benefits.
HYBRID RETIREMENT PLAN
The Hybrid Retirement Plan is the same as VRS Plan 1 except for the following:
About the Hybrid Retirement Plan –The Hybrid Retirement Plan combines the features of a
defined benefit plan and a defined contribution plan. Most members hired on or after January 1, 2014
are in this plan, as well as VRS Plan 1 and VRS Plan 2 members who were eligible and opted into the
plan during a special election window.
The defined benefit is based on a member’s age, creditable service,and average final
compensation at retirement using a formula.
The benefit from the defined contribution component of the plan depends on the member and
employer contributions made to the plan and the investment performance of those
contributions.
In addition to the monthly benefit payment payable from the defined benefit plan at
retirement, a member may start receiving distributions from the balance in the defined
contribution account, reflecting the contributions, investment gains or losses, and any
required fees.
(Continued)42
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
HYBRID RETIREMENT PLAN (Continued)
Eligible Members –Employees are in the Hybrid Retirement Plan if their membership date is on or
after January 1, 2014. This includes:
State employees*
School division employees
Political subdivision employees*
Judges appointed or elected to an original term on or after January 1, 2014
Members in VRS Plan 1 or VRS Plan 2 who elected to opt into the plan during the election
window held January 1 –April 30, 2014; the plan’s effective date for opt-in members was
July 1, 2014
*Non-Eligible Members
Some employees are not eligible to participate in the Hybrid Retirement Plan. They include:
Members of the State Police Officers’ Retirement System (SPORS)
Members of the Virginia Law Officers’ Retirement System (VaLORS)
Political subdivision employees who are covered by enhanced benefits for hazardous duty
employees
Those employees eligible for an optional retirement plan (ORP) must elect the ORP plan or the
Hybrid Retirement Plan. If these members have prior service under VRS Plan 1 or VRS Plan 2, they
are not eligible to elect the Hybrid Retirement Plan and must select VRS Plan 1 or VRS Plan 2 (as
applicable) or ORP.
Retirement Contributions –A member’s retirement benefit is funded through mandatory and
voluntary contributions made by the member and the employer to both the defined benefit and the
defined contribution components of the plan. Mandatory contributions are based on a percentage of
the employee’s creditable compensation and are required from both the member and the employer.
Additionally, members may choose to make voluntary contributions to the defined contribution
component of the plan, and the employer is required to match those voluntary contributions according
to specified percentages.
(Continued)43
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
HYBRID RETIREMENT PLAN (Continued)
Creditable Service
Defined Benefit Component: Under the defined benefit component of the plan, creditable service
includes active service. Members earn creditable service for each month they are employed in a
covered position. It also may include credit for prior service the member has purchased or additional
creditable service the member was granted. A member’s total creditable service is one of the factors
used to determine their eligibility for retirement and to calculate their retirement benefit. It also may
count toward eligibility for the health insurance credit in retirement, if the employer offers the health
insurance credit.
Defined Contributions Component: Under the defined contribution component, creditable service
is used to determine vesting for the employer contribution portion of the plan.
Vesting
Defined Benefit Component: Defined benefit vesting is the minimum length of service a member
needs to qualify for a future retirement benefit. Members are vested under the defined benefit
component of the Hybrid Retirement Plan when they reach five years of creditable service. VRS Plan
1 or VRS Plan 2 members with at least five years of creditable service who opted into the Hybrid
Retirement Plan remain vested in the defined benefit component.
Defined Contributions Component: Defined contribution vesting refers to the minimum length of
service a member needs to be eligible to withdraw the employer contributions from the defined
contribution component of the plan. Members are always 100% vested in the contributions that they
make. Upon retirement or leaving covered employment, a member is eligible to withdraw a
percentage of employer contributions to the defined contribution component of the plan, based on
service.
After two years, a member is 50% vested and may withdraw 50% of employer contributions.
After three years, a member is 75% vested and may withdraw 75% of employer
contributions.
After four or more years, a member is 100% vested and may withdraw 100% of employer
contributions.
Distribution is not required by law until age 70½.
(Continued)44
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
HYBRID RETIREMENT PLAN (Continued)
Calculating the Benefit
Defined Contribution Component: The benefit is based on contributions made by the member and
any matching contributions made by the employer, plus net investment earnings on those
contributions.
Average Final Compensation –Same as VRS Plan 2. It is used in the retirement formula for the
defined benefit component of the plan.
Service Retirement Multiplier –The retirement multiplier is 1.0%. For members that opted into the
Hybrid Retirement Plan from VRS Plan 1 or VRS Plan 2, the applicable multipliers for those plans
will be used to calculate the retirement benefit for service credited in those plans.
Normal Retirement Age
Defined Benefit Component: Same as VRS Plan 2.
Defined Contribution Component: Members are eligible to receive distributions upon leaving
employment, subject to restrictions.
Earliest Unreduced Retirement Eligibility
Defined Benefit Component: Members are eligible for an unreduced retirement benefit when they
reach normal Social Security retirement age and have at least five years of creditable service or when
their age and service equal 90.
Defined Contribution Component: Members are eligible to receive distributions upon leaving
employment, subject to restrictions.
Earliest Reduced Retirement Eligibility
Defined Benefit Component: Members may retire with a reduced benefit as early as age 60 with at
least five years of creditable service.
Defined Contribution Component: Members are eligible to receive distributions upon leaving
employment, subject to restrictions.
(Continued)45
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
HYBRID RETIREMENT PLAN (Continued)
Cost-of-Living Adjustment (COLA) in Retirement
Defined Benefit Component: Same as VRS Plan 2.
Defined Contribution Component: Not applicable.
Disability Coverage –Eligible political subdivision and school division (including VRS Plan 1 and
VRS Plan 2 opt-ins) participate in the Virginia Local Disability Program (VLDP) unless their local
governing body provides an employer-paid comparable program for its members. State employees
(including VRS Plan 1 and VRS Plan 2 opt-ins) participating in the Hybrid Retirement Plan are
covered under the Virginia Sickness and Disability Program (VSDP), and are not eligible for
disability retirement. Hybrid members (including VRS Plan 1 and VRS Plan 2 opt-ins) covered under
VSDP or VLDP are subject to a one-year waiting period before becoming eligible for non-work
related disability benefits.
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 website at
http://www.varetire.org/Pdf/Publications/2013-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, 2014 was 8.48% of the annual covered payroll.
(Continued)46
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 7.Defined Benefit Pension Plan (Continued)
Annual Pension Cost
For the fiscal year ended June 30, 2014, the Town’s annual pension cost of $258,832 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, 2014 $313,691 100%$-
June 30, 2013 286,777 100 -
June 30, 2012 442,672 100 -
The fiscal year 2014 required contribution was determined as part of the June 30, 2013 actuarial
valuation using the entry age actuarial cost method. The actuarial assumptions at June 30, 2013
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 local 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 a closed basis. The remaining amortization period at
June 30, 2013 for the Unfunded Actuarial Accrued liability (UAAL) was 30 years.
Funded Status and Funding Progress
For the Town employees, as of June 30, 2013, the most recent actuarial valuation date, the plan was
79.80%funded. The actuarial accrued liability for benefits was $15,624,580, and the actuarial value
of assets was $12,467,943, resulting in an unfunded actuarial accrued liability (UAAL) of $3,156,637.
The covered payroll (annual payroll of active employees covered by the plan) was $3,305,685, and
the ratio of the UAAL to the covered payroll was 95.49%.
The schedule of funding progress, presented as required supplemental information (RSI) following
the notes to the financial statements, presents multiyear trend information about whether the actuarial
value of the plan assets is increasing or decreasing over time relative to the actuarial accrued liability
(AAL) for benefits.
(Continued)47
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
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.
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
The components of the Town’s annual OPEB cost (expense) are discussed below. The Annual
Required Contribution (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 2014, the Town’s pay-as-you-go
funding totaled $22,600 and resulted in a Net OPEB obligation of $63,684. The pay-as-you-go
funding includes the Town’s contribution towards retiree health care premiums of $7,000,and an
implicit subsidy of the retiree health care premiums created through the blending of active employee
and retiree insurance rates.
Annual required contribution $40,900
Interest on net OPEB obligation 1,848
Adjustment to annual required contribution (2,672)
Annual OPEB cost 40,076
Less funding (22,600)
Increase in net OPEB obligation 17,476
Net OPEB obligation-beginning of year 46,208
Net OPEB obligation-end of year $63,684
(Continued)48
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 8.Other Postemployment Benefits (Continued)
Annual OPEB Cost and Net OPEB Obligation (Continued)
The Town’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the
net OPEB obligation for 2014, 2013,and 2012 are as follows:
Fiscal Year
Annual OPEB
Cost Net OPEB
June 30, 2014 $40,076 55.3%$63,684
June 30, 2013 39,990 93.2%46,208
June 30, 2012 67,256 74.7%43,489
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%.
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.
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.
(Continued)49
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 8.Other Postemployment Benefits (Continued)
Annual OPEB Cost and Net OPEB Obligation (Continued)
Methods and Assumptions (Continued)
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 2.50%
inflation rate, 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, 2014 is 30 years.
Note 9.Service Contracts
Sewage Treatment
The Town is party to an agreement, dated November 1, 2003, with the Western Virginia Water
Authority for the Authority to provide the transportation and treatment of waste at a specified rate to
be adjusted annually on July 1, based on the actual operating and maintenance costs for the previous
year. The 30-year agreement provides for a surcharge in the event waste content or volume exceeds
certain limits or the cost is less than the amount paid by users.
Water Purchases/Sales
Effective, June 1, 2005, the Town agreed to purchase water from the Western Virginia Water
Authority at a bulk rate which is determined by a mutually agreed-upon formula. The water is
designated for an industrial user who pays the Town 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:
.03
Personal property $1.00
Machinery and tools $1.00
(Continued)50
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
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
2013-2014, total premiums paid were approximately $69,000. Benefits are those afforded through
Commonwealth of Virginia as outlined in the Code of Virginia Section 65.2-100; premiums are based
upon covered payroll, job rates, and claims experience.
General Liability
The Town provides general liability and other insurance through policies with Virginia Municipal
Self-Insurance Association. During 2013-2014, total premiums paid were approximately $134,000.
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 2013-2014, total premiums paid were approximately $579,000.
Note 13.Commitments and Contingencies
Special Purpose Grants
Special purpose grants are subject to audit to determine compliance with their requirements. Town
management believes that required refunds, if any, will be immaterial.
(Continued)51
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 13.Commitments and Contingencies (Continued)
Landfill Closure and Post-Closure Costs
As discussed in Note 1, the Town participates in the Roanoke Valley Resource Authority. The
Authority currently has responsibility for closure and post-closure care related to the new Smith Gap
landfill, the transfer station, and 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.
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.
Note 14.Major Customer/Taxpayer
During fiscal year 2014, approximately 7%of the Town’s business-type revenues were generated by
one industrial customer.
(Continued)52
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
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:
Total nonspendable
Restricted for:
Total restricted
Unassigned
Total fund balance $3,170,176
Note 16.Prior Period Adjustments
Governmental General Water and
Activities Fund Sewer Fund
Fund balance/net position,
June 30, 2013, as previously stated $8,014,966 $3,131,811 $5,248,945
To implement GASB 65 and write off
bond costs (77,760)- (92,643)
To correct allocation of prior year bond
proceeds into the correct fund - (183,232)-
(77,760)(183,232)(92,643)
Fund balance/net position June 30, 2013,
as restated $7,937,206 $2,948,579 $5,156,302
Note 17.Subsequent Events
In August 2014, the Town was notified of a large refund claim for bank stock taxes. The Town owes
approximately $24,000 to a bank as a result of amended tax returns. The amount is recorded as a
liability in the government-wide statements as it does not affect current financial resources as
repayment terms have not yet been addressed.
53
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
Note 17.Subsequent Events (Continued)
The Town is in the process of bidding out a $300,000 renovation project to provide housing and
updated facilities for volunteers and new 24 hour fire services to be offered with career staff. The cost
of this project will be split equally between the Town and Roanoke County.
Note 18.New Accounting Standards
The Governmental Accounting Standards Board (GASB) has issued the following Statements which
are not yet effective.
GASB Statement No. 68, Accounting and Financial Reporting for Pensions 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. 71, Pension Transition for Contributions Made Subsequent to the
Measurement Date –an amendment of GASB Statement No. 68 was issued to address an issue
regarding application of the transition provisions of GASB Statement No. 68, Accounting and
Financial Reporting for Pensions. This Statement amends GASB Statement No. 68 to require that,
at transition, a government recognize a beginning deferred outflow of resources for its pension
contributions, if any, made subsequent to the measurement date of the beginning net pension liability.
The requirements of this Statement will eliminate the source of a potential significant understatement
of restated beginning net position and expense in the first year of implementation of Statement 68 in
the accrual-basis financial statements of employers and non-employer contributing entities.This
Statement will be effective for the year ending June 30, 2015.
Management has not yet evaluated the effects, if any, of adopting these standards.
THIS PAGE INTENTIONALLY BLANK
54
REQUIRED SUPPLEMENTARY
INFORMATION
THIS PAGE INTENTIONALLY BLANK
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, 2013 12,467,943$ 15,624,580$ 3,156,637$ 79.80%3,305,685$ 95.49%
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, 2014
55
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, 2014
56
57
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:
schedules is derived from the Comprehensive Annu
Reports for the relevant year.
TABLE 1
2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Governmental activities
Net investment in capital assets 5,427,254$ 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$
Restricted 190,161 91,676 - 20,053 20,000 20,000 20,000 20,000 20,000 20,000
Unrestricted 2,291,758 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
Total governmental activities net position 7,909,173$ 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$
Business-type activities
Net investment in capital assets 4,834,097$ 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$
Unrestricted 410,722 394,976 339,523 661,273 297,150 968,176 1,255,035 1,837,429 1,882,467 2,027,777
Total business-type activities net position 5,244,819$ 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$
Primary government
Net investment in capital assets 10,261,351$ 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$
Restricted 190,161 91,676 - 20,053 20,000 20,000 20,000 20,000 20,000 20,000
Unrestricted 2,702,480 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
Total primary government net position 13,153,992$ 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$
TOWN OF VINTON, VIRGINIA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
58
TABLE 2
(Continued)
2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Expenses
Governmental activities
General government 962,341$ 942,315$ 948,803$ 934,388$ 1,023,227$ 1,037,073$ 906,072$ 1,842,084$ 758,537$ 758,738$
Public safety 3,339,148 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
Public works 1,993,713 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
Parks, recreation, and cultural 635,252 588,649 553,866 583,569 617,778 610,756 575,895 300,854 456,343 544,242
Community development 575,557 398,517 1,034,510 339,983 393,160 339,304 227,303 218,941 206,510 196,075
Interest on long-term debt 200,584 143,455 183,672 194,159 203,787 211,189 220,551 188,966 140,534 148,719
Total governmental activities 7,706,595 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
Business-type activities
Water and sewer 3,174,896 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
Total business-type activities expense 3,174,896 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
Total primary government expenses 10,881,491$ 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$
Program Revenues
Governmental activities
Charges for services
Public safety 88,364$ 89,115$ 91,196$ 119,870$ 108,187$ 172,357$ 128,216$ 231,207$ 203,532$ 193,264$
Public works 110,425 110,115 110,460 110,380 110,175 132,382 114,274 110,220 114,267 113,917
Other activities 554,666 495,133 440,883 466,306 489,901 436,835 450,338 370,838 502,979 544,415
Operating grants and contributions 1,382,744 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
Capital grants and contributions 114,966 53,749 66,545 75,188 8,034 2,146 91,590 1,337,016 123,240 737,716
Total governmental activities program revenues 2,251,165 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
Business-type activities
Charges for services
Water and sewer 3,002,970 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
Capital grants and contributions - - - - - 303,556 - 48,540 - -
Total business-type activities program revenues 3,002,970 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
Total primary government program revenues 5,254,135$ 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$
Net (expense) revenue
Governmental activities (5,455,430)$ (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)$
Business-type activities (171,926) (191,980) (290,491) (330,808) (799,293) (596,005) (892,731) (713,083) (237,696) (301,118)
Total primary government net expense (5,627,356)$ (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)$
(Continued)
TOWN OF VINTON, VIRGINIA
CHANGE IN NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
59
TABLE 2
(Continued)
2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
TOWN OF VINTON, VIRGINIA
CHANGE IN NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes 448,349$ 453,135$ 510,558$ 429,409$ 419,401$ 434,176$ 467,806$ 411,866$ 397,200$ 397,424$
Sales tax 1,287,437 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
Business license tax 517,111 491,996 460,638 454,636 456,536 437,797 452,672 413,400 403,818 192,344
Meals tax 900,591 912,226 909,814 864,448 842,384 861,286 860,961 806,916 715,267 584,998
Other taxes 628,177 692,669 698,412 734,316 755,808 386,703 338,292 397,014 423,145 410,121
Utilities tax 787,097 785,555 782,487 801,264 803,044 795,268 804,812 790,308 719,289 734,279
Intergovernmental revenue not restricted 756,199 807,117 773,617 748,815 664,975 631,320 679,009 755,599 437,496 334,649
Investment earnings not restricted 14,540 4,434 3,020 1,904 3,187 28,917 112,672 210,193 147,368 80,837
Restricted investment earnings 59,628 - - - - 187 11,087 145,554 113,317 37,903
Gain on disposal of property 6,516 - - - - - - - 51,366 -
Other 21,752 41,418 184,846 81,373 29,275 16,038 77,077 48,702 27,774 45,384
Transfers - - 500,000 - 78,466 126,018 113,486 61,900 7,500 -
Total governmental activities 5,427,397 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
Business-type activities:
Investment earnings not restricted 7 66 414 1,174 1,824 16,719 67,772 110,024 76,855 42,669
Restricted investment earnings 5,301 762 91 427 1,727 26,873 47,234 - - -
Other 255,135 261,934 287,359 275,208 298,591 236,198 250,838 103,284 53,011 52,300
Transfers - - (500,000) - (78,466) (126,018) (113,486) (61,900) (7,500) -
Total business-type activities 260,443 262,762 (212,136) 276,809 223,676 153,772 252,358 151,408 122,366 94,969
Total primary government 5,687,840$ 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$
Changes in Net Position
Governmental activities (28,033)$ 122,464$ 64,137$ (314,879)$ (892,864)$ (1,199,260)$ (717,068)$ 457,176$ 436,395$ 874,050$
Business-type activities 88,517 70,782 (502,627) (53,999) (575,617) (442,233) (640,373) (561,675) (115,330) (206,149)
Total primary government 60,484$ 193,246$ (438,490)$ (368,878)$ (1,468,481)$ (1,641,493)$ (1,357,441)$ (104,499)$ 321,065$ 667,901$
Note: Water and sewer charges for service is the Town’s most significant source of own-source revenue.
60
TABLE 3
2010 2009 2008 2007 2006 2005
Pre-GASB 54 implementation:
General Fund
Reserved 361,090$ 272,645$ 314,902$ 2,835,003$ 4,625,979$ 3,999,505$
Unreserved 1,322,095 1,698,851 2,439,625 1,747,348 2,927,980 3,011,346
Total general fund 1,683,185$ 1,971,496$ 2,754,527$ 4,582,351$ 7,553,959$ 7,010,851$
2014 2013 2012 2011
Post-GASB 54 implementation:
General Fund
Nonspendable 60,358$ 19,101$ 62,746$ 66,341$
Restricted 190,161 274,908 17,068 372,271
Assigned - - - 100,000
Unassigned 2,919,657 2,837,802 2,584,947 1,196,789
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)
61
TABLE 4
2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Revenues
Taxes 4,562,633$ 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$
Permits, privilege fees, and regulatory licenses 9,085 10,861 9,273 10,242 12,116 11,321 14,035 10,852 10,029 9,006
Fines and forfeitures 75,059 73,107 75,989 102,566 94,548 116,463 102,720 103,816 93,022 76,294
Revenue from use of money and property 177,605 105,998 105,666 118,560 156,533 201,341 298,369 527,343 436,303 301,240
Charges for services 428,920 387,049 333,832 355,606 328,116 319,293 270,521 190,513 323,882 358,378
Other 33,207 72,337 18,522 16,860 3,562 4,638 4,718 10,740 5,175 954
Intergovernmental 2,359,870 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
Total revenues 7,646,379 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
Expenditures
General government 645,071 632,136 618,951 628,386 641,853 652,359 695,916 660,932 629,650 625,170
Public safety 3,201,533 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
Public works 1,795,602 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
Parks, recreation, and cultural 620,636 547,604 518,579 551,240 574,215 571,291 511,481 294,221 445,612 535,139
Community development 468,678 386,592 544,245 333,617 365,366 316,267 221,764 217,263 206,379 222,780
Capital projects 140,478 542,235 160,752 114,309 90,570 384,982 1,962,873 5,899,542 907,147 1,339,795
Debt service:
Principal retirement 372,923 335,766 267,595 260,501 253,500 241,585 208,404 154,021 148,208 46,616
Interest and fiscal charges 186,377 174,699 185,715 195,608 205,189 212,090 208,912 202,495 157,905 99,758
Bond issuance costs - 36,638 - - - - 1,856 - - -
Total expenditures 7,431,298 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
Excess (deficiency) of revenues over
expenditures 215,081 (67,017) 298,409 50,092 (384,268) (924,609) (2,182,646) (4,169,036) (289,995) (124,559)
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 6,516 - 130,951 2,124 17,491 15,560 13,836 4,825 51,366 -
Transfers in - - 500,000 - 78,466 126,018 113,486 61,900 7,500 -
Total other financing sources 6,516 534,067 630,951 2,124 95,957 141,578 354,822 1,157,279 833,103 3,521,064
Net change in fund balances 221,597$ 467,050$ 929,360$ 52,216$ (288,311)$ (783,031)$ (1,827,824)$(3,011,757)$543,108$ 3,396,505$
Debt service as a percentage of
noncapital expenditures 8.04%7.21%6.49%6.33%6.19%6.07%5.53%5.47%5.20%2.67%
TOWN OF VINTON, VIRGINIA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUND
Last Ten Fiscal Years
(modified accrual basis of accounting)
62
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
2014 455,632,200$ 45,223,230$6,882,820$ 13,713,107$45,720$ 521,497,077$0.06$ 521,497,077$ 100%
2013 456,795,100 43,698,440 7,310,490 14,385,245 47,520 522,236,795 0.06 522,236,795 100
2012 465,957,200 43,682,200 7,232,260 15,347,180 46,800 532,265,640 0.06 532,265,640 100
2011 469,499,100 43,392,270 7,232,700 15,191,110 47,740 535,362,920 0.06 535,362,920 100
2010 468,470,600 42,803,545 7,303,000 15,632,460 48,190 534,257,795 0.06 534,257,795 100
2009 463,014,500 47,556,110 7,191,835 14,933,569 51,675 532,747,689 0.06 532,747,689 100
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
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
63
TABLE 6
Percentage Percentage
of Total Town of Total Town
Customer Revenue Rank Revenue Revenue Rank Revenue
Precision Fabrics Group, Inc.227,725$ 1 7.35%108,155$ 1 6.75%
Aramark 115,008 2 3.71 58,924 2 3.68
Cardinal Glass 85,967 3 2.77 24,792 3 1.55
The Berkshire 56,687 4 1.83 23,232 4 1.45
Blue Ridge Manor Apartments 45,311 5 1.46 19,530 5 1.22
Roanoke County Schools 23,676 6 0.76 11,825 6 0.74
F & W Management Co.22,029 7 0.71 580 9 0.04
Richard Dickerson/RL Mansard Sq.20,976 8 0.68 8,929 8 0.56
Clearview Manor 20,951 9 0.68 11,868 7 0.74
Nichols Car Wash 20,104 10 0.65 N/A N/A N/A
638,434$ 267,835$
1) FY 2014 % was based on total water and sewer revenue of $3,098,809
2) FY 2005 % was based on total water and sewer revenue of $1,601,658
Fiscal Year 2014 Fiscal Year 2005
TOWN OF VINTON, VIRGINIA
PRINCIPAL WATER AND SEWER CUSTOMERS
Current Year and Nine Years Ago
64
TABLE 7
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30,Fiscal Year Amount of Levy Years Amount of Levy
2014 645,360$ 610,294$ 94.57%-$ 610,294$ 94.57%
2013 635,711 598,141 94.09%13,626 611,767 96.23%
2012 637,626 600,406 94.16%13,528 613,934 96.28%
2011 634,445 591,743 93.27%11,257 603,000 95.04%
2010 637,392 607,701 95.34%13,950 621,651 97.53%
2009 609,402 589,069 96.66%16,229 605,298 99.33%
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%
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
65
TABLE 8
Fiscal
Year Water Sewer Water Sewer
2014 17.31$ 25.42$ 8.66$ 12.71$
2013 15.92 23.39 7.97 11.68
2012 15.92 23.39 7.97 11.68
2011 15.92 23.39 7.97 11.68
2010 13.84 20.34 6.93 10.16
2009 12.59 18.49 6.30 9.24
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
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
66
TABLE 9
2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Debt limit 52,149,708$ 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$
Total net debt applicable to limit 8,959,814 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
Legal debt margin 43,189,894$ 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$
Total net debt applicable to the limit
as a percentage of debt limit 17.18%19.53%13.39%13.27%14.13%14.98%18.74%20.37%17.83%14.95%
Legal Debt Margin Calculation for Fiscal Year 2014
Assessed value 521,497,077$
Debt limit (10% of assessed value)52,149,708$
Less debt applicable to limit:
General obligation bonds 8,959,814
Legal debt margin 43,189,894$
TOWN OF VINTON, VIRGINIA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
67
TABLE 10
Percentage of
Actual Value
Fiscal General of Taxable Per Capital Revenue Obligations
Year Bonded Debt Property Capita Leases Bonds Payable
2014 3,724,405$ 0.71%457$ 209,262$ -$ 442,548$
2013 3,993,409 0.76%494 257,549 - 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 -
Total Percentage of
Fiscal General Revenue Primary Personal Per
Year Bonded Debt Bonds Government Income Capita
2014 5,235,409$ 2,225,000$ 11,836,624$ 237.47%1,452$
2013 6,125,127 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
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
68
TABLE 11
Less:Net
Fiscal Gross Operating Available
Year Revenue Expenses Revenue Principal Interest Coverage
2014 3,263,413$ 2,917,200$ 346,213$ 1,004,718$ 256,920$ 0.27
2013 3,016,909 2,734,637 282,272 428,247 215,281 0.44
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)
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.
69
TABLE 12
Fiscal Total Per Capita Public
Year Personal Personal School Unemployment
Ended Population (1)Income (2)Income (2)Enrollment (3)Rate (4)
2014 8,151 4,984,547$ 42,288$ 14,333 5.50%
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%
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 2014 at
www.bea.gov/regional/docs/income.
70
TABLE 13
Percentage Percentage
of Total Town of Total Town
Employer Employees Rank Employment Employees Rank Employment
Berkshire 234 1 2.87%157 3 2.02%
Precision Fabrics Group, Inc.194 2 2.38 396 1 5.09
Kroger 149 3 1.83 146 4 1.88
Roanoke County Schools (Vinton)141 4 1.73 171 2 2.20
McDonalds 90 5 1.10 N/A N/A N/A
Town of Vinton 84 6 1.03 115 6 1.48
Aramark Uniform Services 63 7 0.77 140 5 1.80
Lancerlot 51 8 0.63 N/A N/A N/A
Famous Anthony's 44 9 0.54 N/A N/A N/A
Super Dollar 32 10 0.39 N/A N/A N/A
1,082 13.27%1,125 14.47%
Source: Total TOV Employment – Roanoke Valley Regional Commission (Planning)
N/A - Not Available
Fiscal Year 2014 Fiscal Year 2005
TOWN OF VINTON, VIRGINIA
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
71
TABLE 14
2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Function/Program
General government
Management services 4 4 4 4 4 4 3 4 4 4
Finance 6 6 6 5 5 5 5 5 5 6
Planning 3 3 3 3 3 3 3 3 3 3
Police
Officers 24 24 24 25 24 24 24 25 21 23
Civilians 2 2 2 2 10 10 10 7 11 11
Fire
Firefighters and officers 10 9 9 9 9 9 9 9 9 9
Other public works 32 32 32 34 33 33 32 34 31 32
Parks, recreation, and cultural 3 3 3 3 3 3 2 2 5 13
Total 84 83 83 85 91 91 88 89 89 101
TOWN OF VINTON, VIRGINIA
FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
72
TABLE 15
2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Function/Program
General government
Fleet equipment 133 117 117 117 117 117 62 62 60 60
Pieces of equipment maintained 133 117 117 117 117 117 62 62 60 60
Public safety:
Police
Arrests 578 582 667 546 531 658 598 504 600 744
Parking violations 64 48 56 82 139 84 62 16 135 156
Traffic violations 1,603 1,408 1,734 1,933 2,431 3,088 3,034 3,087 2,743 2,725
EMS
Emergency responses 2,735 2,654 2,872 2,319 2,219 2,369 2,397 2,459 1,536 2,095
Fire
Emergency responses 623 306 677 514 476 764 1,038 673 1,900 2,831
Public works
Refuse collection
Refuse collected (tons per day)12.78 12.92 12.75 12.70 14.00 15.90 18.10 19.00 17.30 17.30
Recyclables collected (tons per day)0.70 0.68 2.00 2.00 1.60 1.60 1.70 1.30 1.80 1.50
Other public works
Street resurfacing (miles)1.30 2.17 1.80 1.80 1.90 3.50 11.10 - - 2.20
Parks, recreation, and cultural
Parks and recreation - attendees
Vinton Dogwood Festival (4-day)25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Vinton Bluegrass Festival (4-day)Closed Closed Closed Closed Closed 20,000 20,000 20,000 20,000 20,000
4th of July 5,000 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 Closed 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 5,085 5,071 5,051 5,044 5,040 5,022 4,985 4,984 4,916 4,793
Miles of distribution lines 61 61 61 61 61 61 60 60 56 56
Volume pumped (million gallons per day average)1.14 1.21 1.23 1.26 1.47 1.04 1.29 1.26 1.30 1.30
Sewer
Number of customer accounts 4,642 4,636 4,607 4,610 4,609 4,600 4,571 4,573 4,511 4,460
Miles of collection lines 60 60 60 60 60 60 59 57 54 54
Waste/Water treated (million gallons per day)0.92 0.96 0.99 1.09 1.27 1.04 1.24 1.20 1.20 1.49
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
73
TABLE 16
2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Function/Program
Public safety
Law enforcement vehicles 25 25 26 27 27 29 27 19 20 18
Fire stations 1 1 1 1 1 1 1 1 1 1
Public works
Primary streets (lane miles)21.66 21.62 21.62 21.62 21.62 21.62 21.62 18.28 18.78 18.78
Secondary streets (lane miles)66.32 66.32 66.32 66.32 66.32 66.32 66.32 68.78 65.96 65.96
Streetlights 500 500 500 500 500 500 500 500 500 500
Parks, recreation, and cultural
Community centers
(No. of Events/Attendance)223/3,965 253/3775 231/4033 174/3396 1/18 240/4236 180/3600 180/3600 180/3600 180/3600
Charles R. Hill Center (Rentals)289 437 299 218 295 351 205 257 227 227
Skate Park Closed Closed Closed Closed Closed Closed 2,400 2,400 2,400 2,400
Vinton War Memorial 282 301 200 202 271 277 151 - - 449
Parks/athletic fields
(TOV owned-Leased to Rke County)N/A N/A N/A N/A N/A 37/3000 N/A N/A N/A N/A
Jaycee Field (Seasonal ballgames)Closed Closed Closed Closed Closed Closed Closed Closed Closed 56
TOWN OF VINTON, VIRGINIA
CAPITAL ASSET AND INFRASTRUCTURE STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Greenway (3/4 Mile) Cinder Surface 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Lawfit Course (5 Fitness Stations)N/A N/A N/A 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 6,000 5,000 6,000 6,000
Vinton Municipal Pool 8,458 10,562 10,176 12,246 11,270 11,000 11,000 7,100 7,147 6,763
Water and sewer
Water mains (miles)61 61 61 61 61 61 60 60 56 56
Sanitary sewers (miles)60 60 60 60 60 60 59 59 54 54
Stormwater
Storm sewers (miles)12 12 12 12 12 12 12 12 11 11
Signalized Street Intersections
Traffic Signals (each)11 11 11 11 11 11 11 11 11 11
74
75
COMPLIANCE SECTION
76
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, Virginia (the “Town”), as of and for the year ended June 30, 2014, 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 26, 2014.
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 a certain deficiency in internal control that we consider to be a
material weakness.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct,misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a
timely basis.A significant deficiency is a deficiency, or a combination of deficiencies, in internal
control that is less severe than a material weakness, yet important enough to merit attention by those
charged with governance.We consider the deficiency described in the accompanying schedule of
findings and responses as item 07-1 to be a material weakness.
77
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town’s financial statements are free
of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on compliance
with those provisions was not an objective of our audit, and accordingly, we do not express such an
opinion.The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
Town of Vinton’s Response to Findings
The Town of Vinton’s response to the findings identified in our audit is 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 them.
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 26, 2014
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TOWN OF VINTON, VIRGINIA
SUMMARY OF COMPLIANCE MATTERS
June 30, 2014
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
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TOWN OF VINTON, VIRGINIA
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2014
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.
B.FINDINGS –COMMONWEALTH OF VIRGINIA
14-1:Budget Appropriations
Condition:
After audit adjustments, expenditures exceeded budgeted appropriations in the public safety and debt
service 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 2014 and additional budget appropriations were approved for known
expenditures at that time.