HomeMy WebLinkAboutFY 2014 - 2015 - Annual Comprehensive Financial Reports (ACFRs)Comprehensive Annual Financial Report
For Fiscal Year Ending June 30, 2015
TOWN OF VINTON, VIRGINIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2015
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 Schedule of Changes in the Net Pension Liability and Related Ratios ............................. 68
Exhibit 12 Schedule of Pension Contributions..................................................................................... 69
Exhibit 13 Schedule of Funding Progress -OPEB .............................................................................. 70
Notes to Required Supplementary Information ......................................................................................... 71
TOWN OF VINTON, VIRGINIA
TABLE OF CONTENTS
(Continued)
Page
STATISTICAL SECTION
Table 1 Net Position by Component ....................................................................................................... 73
Table 2 Change in Net Position by Component ..................................................................................... 74
Table 3 Fund Balances –Governmental Fund ....................................................................................... 76
Table 4 Changes in Fund Balances –Governmental Fund .................................................................... 77
Table 5 Assessed Value and Actual Value of Taxable Property ........................................................... 78
Table 6 Principal Water and Sewer Customers ...................................................................................... 79
Table 7 Property Tax Levies and Collections ........................................................................................ 80
Table 8 Water and Sewer Rates .............................................................................................................. 81
Table 9 Legal Debt Margin Information ................................................................................................ 82
Table 10 Ratios of Outstanding Debt by Type ......................................................................................... 83
Table 11 Pledged Revenue Coverage ....................................................................................................... 84
Table 12 Demographic Statistics .............................................................................................................. 85
Table 13 Principal Employers ................................................................................................................... 86
Table 14 Full-Time Equivalent Town Government Employees by Function/Program .......................... 87
Table 15 Operating Indicators by Function/Program ............................................................................... 88
Table 16 Capital Asset and Infrastructure Statistics by Function/Program ............................................. 89
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..................................................................................................... 91
Summary of Compliance Matters .................................................................................................................. 93
Schedule of Findings and Responses ............................................................................................................. 94
INTRODUCTORY SECTION
THIS PAGE INTENTIONALLY BLANK
TOWN OF VINTON
311 S. POLLARD STREET
VINTON, VIRGINIA 24179
PHONE (540) 983-0608 Barry W. Thompson
FAX (540) 985-3105 Finance Director/Treasurer
November 9, 2015
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, 2015 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 2014 Water Quality Report, the Town had no water quality
violations. The Virginia Department of Environmental Quality reported statewide recycling rates for
calendar year 2014 and the Town of Vinton’s recycling rate was 60.7%.
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 partnered with the Vinton Area Chamber of Commerce for
economic development and business retention, recruitment and promotion.
The Town also participates in the Greenway Commission, the purpose of which is to identify possible
greenway locations in the Roanoke Valley area. Through this the Town is building a greenway that will
connect the downtown business district with Roanoke City’s greenway system. This will allow for an
individual to travel from Vinton to Salem on the greenway system. The Town of Vinton is participating
in a joint project between the city of Roanoke to interconnect two existing regional greenways, the
Roanoke River Greenway and Tinker Creek Greenway and the proposed Glade Creek Greenway, with a
pedestrian bridge. The completion of the bridge project over Tinker Creek will be Vinton’s connection to
the regional system. Vinton is also partnering with the Roanoke-Alleghany Regional Commission to
promote a Blueways Trail on the Roanoke River. Vinton opened a canoe launch on the Tinker Creek this
past June which is a component of the proposed Roanoke River Blueway and the Roanoke Valley
Greenways network.
From years 2002 to 2014, Vinton maintained stable property tax rates, while continuing to provide high
quality municipal services and responsive government. In 2015, Town Council adopted a $.04 per $100
of assessed value tax increase on real estate for a new tax rate of $.07 per $100 of assessed value effective
January 1, 2015 for the tax year which was used to support the increase of 24/7 Fire and EMS Services.
The Town Council had previously adopted an ordinance to eliminate the vehicle decal and to enact a
vehicle license fee effective January 1, 2008. This essentially was a revenue neutral action by Council.
The nearby educational institutions allow opportunities for Town citizens to receive higher education and
technical training. Expansion of industry, tourist facilities, and conference centers in the region continue
to enhance the reputation of the Town as a highly desirable residential area.
Long-Term Financial Planning
Christopher S. Lawrence was appointed as Town Manager in September 2008. Mr. Lawrence has strong
leadership and management skills and has set goals toward community and economic development. The
Town’s Management Team works closely with the Roanoke County Management Team to develop short-
term and long-term financial goals addressing the financial stability of the Town/County endeavors.
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 in 2013 and continues to
work on the different components of the grant. This CDBG award was the product of the Business
District Revitalization Planning Grant awarded to the Town. The CDBG grant will enable the Town to
provide Façade improvements to 12 downtown businesses, upgrade the farmer’s market infrastructure, do
streetscape improvements, improve street lighting, administer 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’s streetscape revitalization work was completed in the fall of 2015 in conjunction with the
Town’s Fall Festival and the new Roanoke County Library Project which is being built in the downtown
area. The Farmer’s Market Project will begin in winter of 2016 with completion in the spring. One
Revolving Loan has been issued from the CDBG Grant in the amount of $28,759.04 with a term of five
years. The town will plan to ask for an extension for the project until June 30, 2016.
Another economic benefit for the Town is the result of the marketing and branding efforts of the War
Memorial Conference Center. The Town continues 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 fully ADA compliant and all floors are served by an elevator.
The Town continues to commit to the improvement of the highways, streets, and roads by including
approximately $345,438 for paving and milling of streets throughout the Town.
Major Initiatives
The Town of Vinton continues to work on the $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 has 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.
The Vinton Business Center has been 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 Theresa Fontana became the Town’s Attorney on January 1,
2015 to serve as counsel for the Town’s other legal matters. Attorney Fontana replaced Attorney
Elizabeth Dillon who was appointed a U. S. District Judge for the Western District of Virginia on March
20, 2015.
In June 2013, the Town issued bonds amounting to $1,968,875. The only outstanding project is the
$939,785 Upgrade project at the Western Virginia Water Authority Wastewater Treatment Plant which is
still on going and has an outstanding construction amount of $237,174. The Town also has a new
obligation with the Western Virginia Water Authority in 2015 for additional improvements at the
Wastewater Treatment Plant in the amount of $294,516.
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 remaining balance as of June 30, 2015 is $325,000.
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.
Prospects for the Future
The Town of Vinton has been working with Roanoke County to market two surplused schools that are
located within the Town’s boundaries. One of these schools, the Roland E. Cook Elementary School
property at the corner of Jefferson Avenue and Poplar Street is 100 years old built in 1915 and the
proposal for “Roland E. Cook Lofts” is to transform each of the 21 classrooms in the building into
upscale apartments -15 one-bedroom and six studio units. The aim is to leave the schoolhouse character
intact with the gymnasium as some type of community space. The other property is the old William Byrd
High School property built in 1930. Roanoke County is accepting proposals for the purchase and
redevelopment of this property also which is located at 100 Highland Road. The development of these
properties has 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. The new
$10 million library across from the Vinton Municipal Building on Pollard Street will replace the current
Vinton branch, which is the oldest library building in the county. The library will feature a coffee shop
inside and was one thing Vinton residents indicated they wanted the facility to include.
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.
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 and Money Markets. 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.
viii
ix
TOWN OF VINTON, VIRGINIA
DIRECTORY OF PRINCIPAL OFFICIALS
June 30, 2015
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. • Roanoke, VA 24014-1711 • 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, 2015, 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, 2015, 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, the Town adopted new accounting
guidance, GASB Statement No. 68, Accounting and Financial Reporting for Pensions – an Amendment
of GASB Statement No. 27, as amended by GASB Statement No. 71. Our opinion is not modified with
respect to this matter.
2
Prior Period Adjustments
As described in Note 16 to the financial statements, net position as of June 30, 2014 has been
restated to adjust for the correction of an error. Our opinion is not modified with respect to this matter.
Report on Summarized Comparative Information
We have previously audited the Town’s 2014 financial statements, on which, in our report dated
November 26, 2014, we expressed unmodified opinions. The 2014 financial information is provided for
comparative purposes only. For the year ended June 30, 2015, beginning net position has been restated
to reflect the impacts of adopting GASB No. 68, as described in Note 16. However, the information for
periods prior to June 30, 2014 is not readily available, therefore the 2014 financial information has not
been restated to reflect the effects of the new standard.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and other required supplementary information, as listed in the table
of contents, be presented to supplement the basic financial statements. Such information, although not a
part of the basic financial statements, is required by the Governmental Accounting Standards Board,
who considers it to be an essential part of financial reporting for placing the basic financial statements in
an appropriate operational, economic, or historical context. We have applied certain limited procedures
to the required supplementary information in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s responses
to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town’s basic financial statements. The introductory section and the statistical
section are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or
provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
November 9, 2015 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 9, 2015
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, 2015. 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.
In 2015, the Town adopted GASB Statement No. 68, Accounting and Financial Reporting for
Pensions. The overall effect of this new standard is to reflect the Town’s long-term Virginia Retirement
System (VRS) obligations directly in the financial statements. Previously, such amounts were mostly
disclosed, but were not recognized as long as the Authority was current with its required VRS
contributions. The new standard not only changes certain measurement methodologies, but also
requires certain new disclosures and that the Town record a net pension liability directly on the
statement of net position. Beginning net position has been restated as discussed in footnote 16, and this
has had a significant impact on the Town’s net position. However, because similar information has been
disclosed in prior years, both in the notes to the financial statements and in required supplementary
information, the effect of this new standard is not expected to negatively affect how most governmental
entities are viewed by sophisticated readers of their financial statements. Because information to restate
prior years is not readily available, the prior year comparative information included in this discussion
and analysis has not been restated.
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 $11,965,815 (net
position). Of this amount, $616,641 (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 $891,990. This increase is largely due to total
expenses of $10,605,547 being less than total revenues of $11,497,537. In addition, a
decrease of $301,480 (4.8%) in current and other assets occurred. Capital assets increased
by $676,440 (3.3%) with the final result being an increase of 1.4% in total assets.
On the other hand, long-term liabilities increased by $950,929 (7.6%) mainly due to
implementing GASB 68 and recording the net pension liability, while other liabilities
increased by $129,756 (13.7%) which was an offset of an increase in accounts payable and
related liabilities and a decrease in accrued payroll and related liabilities.
Both deferred outflows and inflows experienced significant changes during the year due to
the implementation of GASB 68 and recording the associated deferred outflows and inflows
related to the net pension liability.
The final result of all these effects is a 8.1% increase in net position.
As of the close of the current fiscal year, the Town’s governmental fund reported an ending
fund balance of $2,656,499, a decrease of $513,677 in comparison with the prior year. This is
mostly due to an increase of $207,552 (45.6%) in total liabilities particularly due from
accounts payable. In addition to this negative effect, deferred inflows of resources
increased by $422,829 (50.2%) in particular unavailable/unearned revenue.
Approximately 88.9% of the ending governmental fund balance, $2,361,436 is available for
spending at the Town’s discretion (unassigned fund balance), and represents 28.7% of the
governmental fund’s expenditures.
4
Overview of the Financial Statements (Continued)
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.
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.
5
Overview of the Financial Statements (Continued)
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the Water and Sewer Department.
Notes to the Financial Statements –The notes provide additional information that is essential to
a full understanding of the data provided in the government-wide and fund financial statement.
Other Information –In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information concerning the Town’s funding progress for the
defined benefit pension plan.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the Town, the net position was $11,965,815 at the close of the most recent fiscal
year.
By far the largest portion of the Town’s net position (92.9%) 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 $4,583,937 $4,467,233 $1,458,590 $1,876,774 $6,042,527 $6,344,007
Capital assets 9,442,948 9,375,163 11,984,814 11,376,159 21,427,762 20,751,322
Total assets 14,026,885 13,842,396 13,443,404 13,252,933 27,470,289 27,095,329
Deferred outflows
of resources 470,314 149,512 80,543 - 550,857 149,512
Current and other liabilities 696,139 512,637 383,459 437,205 1,079,598 949,842
Long-term liabilities 5,752,569 4,905,705 7,674,974 7,570,909 13,427,543 12,476,614
Total liabilities 6,448,708 5,418,342 8,058,433 8,008,114 14,507,141 13,426,456
Deferred inflows
of resources 1,384,094 540,775 164,096 - 1,548,190 540,775
Net investment in capital
assets 5,929,925 5,550,872 5,184,003 4,834,097 11,113,928 10,384,969
Restricted 235,246 190,161 - - 235,246 190,161
Unrestricted 499,226 2,291,758 117,415 410,722 616,641 2,702,480
Total net position $6,664,397 $8,032,791 $5,301,418 $5,244,819 $11,965,815 $13,277,610
Unrestricted net position of $616,641 may be used to meet the Town’s ongoing obligations to
citizens and creditors.
At the end of the current fiscal year, the Town is able to report positive balances in all three
categories of net position, both for the government as a whole, and for its separate governmental and
business-type activities. The same situation held true for the prior fiscal year.
6
Government-wide Financial Analysis (Continued)
Governmental activities –Governmental activities increased the Town’s net position by $438,710.
For the most part, revenues closely paralleled inflation and conditions represented in the
economy and growth in the demand for services. Revenues from operating grants and contributions,
capital grants and contributions, and various taxes showed an increase over the prior year. Investment
earnings also showed an increase because of the Town’s investments and bond proceeds being invested
in higher yields.
The Town’s Changes in Net Position
Governmental Business-Type
Activities Activities Total
Revenues
Program revenues
Charges for services $753,110 $753,455 $3,195,850 $3,002,970 $3,948,960 $3,756,425
Operating grants and
contributions 1,426,127 1,382,744 - - 1,426,127 1,382,744
Capital grants and
contributions 384,074 114,966 - - 384,074 114,966
General revenues
Property taxes 539,764 448,349 - - 539,764 448,349
Other taxes 4,067,111 4,120,413 - - 4,067,111 4,120,413
Intergovernmental
unrestricted 768,956 756,199 - - 768,956 756,199
Investment earnings 76,184 74,168 1,353 5,308 77,537 79,476
Other 34,446 28,268 250,562 255,135 285,008 283,403
Total revenues 8,049,772 7,678,562 3,447,765 3,263,413 11,497,537 10,941,975
Expenses
General government 927,954 962,341 - - 927,954 962,341
Public safety 3,418,566 3,339,148 - - 3,418,566 3,339,148
Public works 2,021,994 1,993,713 - - 2,021,994 1,993,713
Parks, recreation, and
cultural 621,897 635,252 - - 621,897 635,252
Community development 427,409 575,557 - - 427,409 575,557
Interest on long-term
debt 193,242 200,584 - - 193,242 200,584
Water and sewer - - 2,994,485 3,174,896 2,994,485 3,174,896
Total expenses 7,611,062 7,706,595 2,994,485 3,174,896 10,605,547 10,881,491
Change in net position 438,710 (28,033)453,280 88,517 891,990 60,484
–July 1,
as restated 6,225,687 7,937,206 4,848,138 5,156,302 11,073,825 13,093,508
–June 30 $6,664,397 $7,909,173 $5,301,418 $5,244,819 $11,965,815 $13,153,992
*As restated
7
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 $453,280.
The Town increased water and sewer rates 8.9% effective July 1, 2014 with an anticipated 8.9% rate
increase for 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
General
Government
Public Safety Public Works Parks,
Recreation, &
Cultural
Community
Development
Interest on
Long-Term
Debt
Total
Expenses
Charges for
Services
9%Operating Grants
and Contributions
18%
Capital Grants and
Contributions
5%
Property Taxes
7%Sales Taxes
16%
Other Taxes
34%
Unrestricted
Intergovernmental
Revenue
10%
Other
1%
8
Financial Analysis of the Government’s Funds
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds –The focus of the Town’s governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the Town’s financing requirements. In particular, unassigned fund balance may serve as a useful measure
of a government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the Town’s governmental fund reported an ending fund
balance of $2,656,499, a decrease of $513,677 in comparison with the prior year. This is largely due to
an increase in deferred inflows of $422,829 (50.2%) and an increase in total liabilities of $207,552
(45.6%) particularly an increase in accounts payable and accrued liabilities of $286,543 (125.8%) and a
decrease in accrued payroll and related liabilities of $75,356 (36.4%). Accounts payable and accrued
liabilities, accrued payroll and related liabilities, and unearned revenue increased by $634,016 (49.7%).
This increase was due to an increase in the 2015 real estate rate, which is used to fund the next fiscal
year, and a large invoice for paving.
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
$117,415. 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
$55,337 primarily due to an increase in Categorical Aid by $43,177 (2.2%) and Recovered Costs by
$12,160 (8.2%).
Differences between the original budget and the final amended budget for expenditures were
$497,743 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
general property taxes collected was 91.41% of the budgeted amount. The real tax rate was
increased from $0.03 to $0.07 per $100 of assessed value which resulted in a lower collection
because of classifying the current year tax collection as deferred revenue.
Cigarette tax collection continues to decrease as a result of $0.20 increase in tax rate
effective July 2013. Although the tax rate was reduced by $0.15 in March 2014 to encourage
buyers, the market has not recovered. In addition to this negative impact, there has been a loss of
two (2) retailers and a cigarette outlet opened outside of the Town limits. Another effect on this
revenue is the sale of vapors
Fines and forfeitures were under budget estimates by 28.20% primarily due to court fines
being down by $21,267 or 27.98%.. In reviewing this area, we have found that more community
service versus fines is being sentenced by the Court thus having an impact on this type of
revenue.
For the most part, economic indicators such as sales tax, meals tax, and business license
tax reflect very favorable collection.
9
General Fund Budgetary Highlights (Continued)
All expenditures by budget functions have favorable variances due to concerted efforts of all
departments to control and minimize expenditures. except for Interest and Fiscal Charges where
the budget was understated.
The substantial favorable variance on Community Development is mainly due to $675,000
forecast for CDBG downtown revitalization project for which only $156,895 (23%) was expended.
Of the $668,105 budget on Capital Projects, only $551,936 was spent. Main projects such as
RSTP Walnut Street Improvement ($74,178), Replacement of Dumptruck in Public Works were not
purchased during the FY 2015 but will be pursued in FY 2016. The painting of the pool was not
accomplished because the Town Council decided to closed the Pool after 2015 summer season.
The 5.78% increase in total operating revenue was affected primarily by a 8.9% rate increase on
water and sewer effective July 1, 2014 resulting to 6.99% increase in water revenue and 6.04% increase in
sewer revenue. There are more substantial positive variances on operating expenses but were offset by
major spike on Maintenance and Materials but still resulted to a net effect of 4.35% favorable variance.
Significant variances in the enterprise fund expenses are in salaries and benefits. Salaries
decreased 12.44%while benefits were down 2.91%. This was caused by labor distribution of employees
working in different cost centers thus shifting salaries and benefits to the general fund. Maintenance
expense increase was partly caused by various repairs and maintenance on well houses and pumps. The
considerable increase in materials can be attributed to a large inventory at the end of FY 2014 which was
expended in FY 2015 and by more water chemicals used to comply with the new requirements in water
testing. Positive variances in wastewater treatment at the Western Virginia Wastewater Treatment Plant
and water purchased from the Western Virginia Water Authority were caused by variations in the volume
of bulk water purchased by industry and wastewater treated from the Town.
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, 2015, amounts to $21,427,762 (net of accumulated depreciation). This investment
in capital assets includes land, buildings and systems, improvements, infrastructure, machinery, and
equipment. The total increase in the Town’s investment in capital assets for the current fiscal year was
3.3% (a 0.7% increase for governmental activities and a 5.4% 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 5,570,041 5,532,484 7,275,787 7,732,845 12,845,828 13,265,329
Infrastructure 1,369,223 1,440,659 - - 1,369,223 1,440,659
Improvements other than
buildings - - 2,692,070 2,527,672 2,692,070 2,527,672
Machinery and equipment 503,136 608,889 567,575 631,614 1,070,711 1,240,503
Construction in progress 294,459 87,042 1,368,630 403,276 1,663,089 490,318
Total $9,442,948 $9,375,163 $11,984,814 $11,376,159 $21,427,762 $20,751,322
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
$11,288,749. Of this amount, $9,024,334 comprises debt backed by the full faith and credit of the
government, $2,105,000 is related to revenue bond obligations, and $159,415 is related to capital leases.
The Town’s Outstanding Debt
General Obligation and Capital Leases
General obligation bonds $3,451,877 $3,724,405 $4,892,861 $5,235,409 $8,344,738 $8,959,814
Revenue bonds - - 2,105,000 2,225,000 2,105,000 2,225,000
Other obligations 385,080 442,548 294,516 - 679,596 442,548
Capital leases 159,415 209,262 - - 159,415 209,262
$3,996,372 $4,376,215 $7,292,377 $7,460,409 $11,288,749 $11,836,624
The Town’s total debt decreased by $547,875, or 4.6%, 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, 2015 is 4.50%, which is lower than last year’s rate of 5.50%.
This compares favorably to the state’s average unemployment rate as of June 30, 2015 of
4.9% and to the national average rate of 5.30%.
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 decreased by
$558,221. The general fund remains strong with an ending unassigned fund balance of $2,361,436. It is
intended that this available fund balance will be used for future needs of the Town.
Requests for Information
This financial report is designed to provide a general overview of the Town’s finances for all
those with an interest in the government’s finances. Questions concerning any of the information provided
in this report or requests for additional financial information should be addressed to the Finance
Department/Treasurer’s Office, Town of Vinton, 311 S. Pollard Street, Vinton, Virginia 24179.
THIS PAGE INTENTIONALLY BLANK
11
BASIC
FINANCIAL STATEMENTS
EXHIBIT 1
Governmental Business-type
(For Comparison
Only)
Cash and cash equivalents (Note 2)3,483,614$ 491,724$ 3,975,338$ 3,970,526$
Receivables, net (Note 3)417,816 610,712 1,028,528 855,327
Due from other governmental units (Note 4)600,152 - 600,152 345,109
Inventories 2,947 70,409 73,356 83,950
Prepaids 56,870 11,844 68,714 76,056
22,538 273,901 296,439 1,013,039
Capital assets: (Note 5)
Nondepreciable 2,000,548 1,449,382 3,449,930 2,277,159
Depreciable, net 7,442,400 10,535,432 17,977,832 18,474,163
Total assets 14,026,885 13,443,404 27,470,289 27,095,329
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 135,043 - 135,043 149,512
335,271 80,543 415,814 -
Total deferred outflows of resources 470,314 80,543 550,857 149,512
LIABILITIES
Accounts payable and accrued liabilities 514,251 239,004 753,255 546,286
Accrued payroll and related liabilities 131,902 23,379 155,281 236,803
Accrued interest payable 33,145 89,576 122,721 120,877
Customer security deposits - 31,500 31,500 25,400
Unearned revenue 16,841 - 16,841 20,476
Long-term liabilities:
Net pension liability (Note 7)1,213,519 266,381 1,479,900 -
Due within one year (Note 6)526,420 502,440 1,028,860 1,006,230
Due in more than one year (Note 6)4,012,630 6,906,153 10,918,783 11,470,384
Total liabilities 6,448,708 8,058,433 14,507,141 13,426,456
DEFERRED INFLOWS OF RESOURCES
Property taxes 636,548 - 636,548 540,775
747,546 164,096 911,642 -
Total deferred inflows of resources 1,384,094 164,096 1,548,190 540,775
NET POSITION
5,929,925 5,184,003 11,113,928 10,384,969
Public safety 185,246 - 185,246 140,161
Parks, recreation, and cultural 50,000 - 50,000 50,000
Unrestricted 499,226 117,415 616,641 2,702,480
Restricted for:
Net investment in capital assets
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
June 30, 2015
Cash and cash equivalents, restricted (Note 2)
Pension contributions subsequent to
measurement date (Note 7)
Net difference between projected and actual
investment earnings on pension plan
investments (Note 7)
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 2015 2014
Governmental activities
927,954$ 104,513$ -$ -$ (823,441)$ (823,441)$ (858,904)$
Public safety 3,418,566 72,356 331,229 171,920 (2,843,061) (2,843,061) (2,878,552)
Public works 2,021,994 110,295 1,094,898 - (816,801) (816,801) (817,677)
Parks, recreation, and cultural 621,897 460,786 - 26,500 (134,611) (134,611) (188,649)
Community development 427,409 5,160 - 185,654 (236,595) (236,595) (511,064)
Interest on long-term debt 193,242 - - - (193,242) (193,242) (200,584)
Total governmental activities 7,611,062 753,110 1,426,127 384,074 (5,047,751) (5,047,751) (5,455,430)
Business-type activities
Water and sewer 2,994,485 3,195,850 - - 201,365$ 201,365 (171,926)
Total business-type activities 2,994,485 3,195,850 - - 201,365 201,365 (171,926)
Total 10,605,547$3,948,960 1,426,127 384,074 (5,047,751) 201,365 (4,846,386) (5,627,356)
General revenues
Property taxes (Note 10)539,764 - 539,764 448,349
Sales tax 1,320,700 - 1,320,700 1,287,437
Meals tax 912,713 - 912,713 900,591
Utilities tax 782,869 - 782,869 787,097
Business license tax 489,749 - 489,749 517,111
Cigarette tax 196,383 - 196,383 266,367
Other local taxes 364,697 - 364,697 361,810
Unrestricted intergovernmental revenue 768,956 - 768,956 756,199
Unrestricted investment earnings 15,438 - 15,438 14,547
Restricted investment earnings 60,746 1,353 62,099 64,929
Other 34,446 250,562 285,008 283,403
Total general revenues 5,486,461 251,915 5,738,376 5,687,840
Change in net position 438,710 453,280 891,990 60,484
NET POSITION AT JULY 1, AS RESTATED (NOTE 16)6,225,687 4,848,138 11,073,825 13,217,126
NET POSITION AT JUNE 30 6,664,397$ 5,301,418$ 11,965,815$ 13,277,610$
General government administration
Totals
TOWN OF VINTON, VIRGINIA
STATEMENT OF ACTIVITIES
Year Ended June 30, 2015
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
2015 2014
ASSETS
Cash and cash equivalents 3,483,614$ 3,756,008$
Receivables, net 417,816 283,787
Due from other governmental units 600,152 345,109
Inventories 2,947 3,525
Prepaids 56,870 56,833
Cash and cash equivalents, restricted 22,538 21,971
Total assets 4,583,937$ 4,467,233$
LIABILITIES
Accounts payable and accrued liabilities 514,251$ 227,708$
Accrued payroll and related liabilities 131,902 207,258
16,841 20,476
Total liabilities 662,994 455,442
DEFERRED INFLOWS OF RESOURCES
Unavailable/unearned revenue 1,264,444 841,615
FUND BALANCES
Nonspendable 59,817 60,358
Restricted 235,246 190,161
Unassigned 2,361,436 2,919,657
Total fund balances 2,656,499 3,170,176
Total liabilities, deferred inflows of resources,
and fund balances 4,583,937$ 4,467,233$
General Fund
TOWN OF VINTON, VIRGINIA
BALANCE SHEET
GOVERNMENTAL FUND
June 30, 2015
Unearned revenue
The Notes to Financial Statements are
an integral part of this statement.
14
EXHIBIT 4
(For
Comparison
Only)
–2,656,499$ 3,170,176$
are different because:
Capital assets used in governmental activities are not financial resources,
and, therefore, are not reported in the funds.
Governmental capital assets 18,560,887$
Less: accumulated depreciation (9,117,939)
9,442,948 9,375,163
Bond premiums are reported as revenues in the governmental funds,
Bond premiums total $(65,279) and accumulated amortization
is $28,505.(36,774) (40,136)
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are deferred in the funds.627,896 300,840
Financial statement elements related to pensions are applicable to future
periods and, therefore, are not reported in the funds.
335,271
(747,546)
(1,213,519)
(1,625,794) -
Long-term liabilities are not due and payable in the current period and,
therefore, are not reported in the funds.
General obligation bonds, including unamortized deferred amounts (3,316,834)
(385,080)
(159,415)
Accrued interest payable (33,145)
Compensated absences (412,030)
Other postemployment benefits (93,874)
(4,400,378) (4,773,252)
Total Net Position – Governmental Activities
TOWN OF VINTON, VIRGINIA
RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET
TO THE STATEMENT OF NET POSITION
June 30, 2015
Amounts reported for governmental activities in the statement of net position
Deferred outflows of resources for 2015 employer contributions
Deferred inflows of resources for the net differences between
projected and actual investment earnings on pension plan investments
Net pension liability
Capital lease obligations
Obligations payable – Roanoke County and RCACP
but are amortized over the life of the debt obligation in the
statement of net position:
General Fund
The Notes to Financial Statements are
an integral part of this statement.
15
EXHIBIT 5
Comparison
Only)
2015 2014
REVENUES
General property taxes 456,952$ 445,931$
Other local taxes 4,012,871 4,116,702
Permits, privilege fees, and regulatory licenses 12,403 9,085
Fines and forfeitures 56,503 75,059
Revenues from use of money and property 197,241 198,625
Charges for services 438,558 407,900
Other 129,124 149,957
Gain sharing 549,213 542,676
Recovered costs 21,301 16,240
Non-categorical aid 401,902 402,617
Categorical aid 1,439,204 1,281,587
Total revenues 7,715,272 7,646,379
EXPENDITURES
Current:
General government administration 668,082 645,071
Public safety 3,313,099 3,201,533
Public works 1,918,439 1,795,602
Parks, recreation, and cultural 617,934 620,636
Community development 604,476 468,678
Capital projects 551,936 140,478
Debt service:
Principal retirement 379,843 372,923
Interest and fiscal charges 182,584 186,377
Total expenditures 8,236,393 7,431,298
Excess (deficiency) of revenues over expenditures (521,121) 215,081
OTHER FINANCING SOURCES
Proceeds from sale of uncapitalized items 7,444 6,516
Total other financing sources 7,444 6,516
Net change in fund balance (513,677) 221,597
FUND BALANCE AT JULY 1 3,170,176 2,948,579
FUND BALANCE AT JUNE 30 2,656,499$ 3,170,176$
General Fund
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUND
Year Ended June 30, 2015
The Notes to Financial Statements are
an integral part of this statement.
16
EXHIBIT 6
Comparison
Only)
2015 2014
Net change in fund balance governmental fund (513,677)$ 221,597$
449 (3,344)
67,785 (505,464)
327,056 25,667
181,310 -
368,736 288,880
7,051 (55,369)
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 a decrease in compensated
absenses of $20,045,an increase in other postemployment benefits of
$(36,595), and decrease in bank stock payable of $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
capital outlays $738,118 exceeded depreciation $(670,333)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, 2015
General Fund
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.
Governmental funds report employer pension contributions as expenditures.
However,in the statement of activities the cost of pension benefits earned
net of employee contributions is reported as pension expense.This is the
amount by which employer pension contributions $335,271 exceed pension
expense $153,961 in the current period.
The Notes to Financial Statements are
an integral part of this statement.
17
EXHIBIT 7
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
General property taxes 499,915$ 499,915$ 456,952$ (42,963)$
Other local taxes 4,183,500 4,183,500 4,012,871 (170,629)
Permits, privilege fees, and 11,000 11,000 12,403 1,403
regulatory licenses
Fines and forfeitures 78,700 78,700 56,503 (22,197)
Revenues from use of money
and property 146,060 146,060 197,241 51,181
Charges for services 433,500 433,500 438,558 5,058
Other 121,750 123,694 129,124 5,430
Gain sharing 525,000 525,000 549,213 24,213
Recovered costs 31,000 41,216 21,301 (19,915)
Non-categorical aid 402,440 402,440 401,902 (538)
Categorical aid 2,007,442 2,050,619 1,439,204 (611,415)
Total revenues 8,440,307 8,495,644 7,715,272 (780,372)
EXPENDITURES
Total expenditures 8,566,220 9,063,963 8,236,393 827,570
OTHER FINANCING SOURCES
Proceeds from sale of uncapitalized items 3,000 3,000 7,444 4,444
Net change in fund balance (122,913)$ (565,319)$ (513,677)$ 51,642$
Budgeted Amounts
TOWN OF VINTON, VIRGINIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL –
GENERAL FUND
Year Ended June 30, 2015
The Notes to Financial Statements are
an integral part of this statement.
18
EXHIBIT 8
Only)
Current assets:
Total current assets 1,458,590 1,876,774
Noncurrent assets:
Capital assets:
Total noncurrent assets 11,984,814 11,376,159
Total assets 13,443,404 13,252,933
DEFERRED OUTFLOWS OF RESOURCES
Pension contributions subsequent to measurement date 80,543 -
LIABILITIES
Current liabilities:
Total current liabilities 885,899 917,645
Noncurrent liabilities:
Net pension liability 266,381 -
Total noncurrent liabilities 7,172,534 7,090,469
Total liabilities 8,058,433 8,008,114
DEFERRED INFLOWS OF RESOURCES
164,096 -
NET POSITION
Net difference between projected and actual investment earnings
on pension plan investments
Water and Sewer
Business-type Activities –
Enterprise Fund
TOWN OF VINTON, VIRGINIA
STATEMENT OF NET POSITION
PROPRIETARY FUND
June 30, 2015
The Notes to Financial Statements are
an integral part of this statement.
19
EXHIBIT 9
Only)
2015 2014
OPERATING REVENUES
Water service charges and fees 1,454,106$ 1,359,126$
Sewer service charges and fees 1,686,890 1,590,870
Water/sewer penalties 54,854 52,974
Other revenue 250,562 255,135
Total operating revenues 3,446,412 3,258,105
OPERATING EXPENSES
Salaries 734,363 838,728
Fringe benefits 263,571 271,468
Contractual services 28,939 39,466
Maintenance 120,441 73,095
Rent, utilities, and insurance 271,555 284,829
Materials and supplies 100,487 38,875
Equipment repairs and rentals 21,661 50,710
Sewage treatment 338,721 384,255
Purchase of water 104,653 119,976
Other 131,345 160,127
Depreciation 674,615 655,671
Total operating expenses 2,790,351 2,917,200
Operating income 656,061 340,905
NON-OPERATING REVENUE (EXPENSE)
Interest income 1,353 5,308
Interest expense (204,134) (257,696)
Net non-operating expense (202,781) (252,388)
Change in net position 453,280 88,517
NET POSITION AT JULY 1, AS RESTATED (NOTE 16)4,848,138 5,156,302
NET POSITION AT JUNE 30 5,301,418$ 5,244,819$
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, 2015
The Notes to Financial Statements are
an integral part of this statement.
20
EXHIBIT 10
Only)
OPERATING ACTIVITIES
Receipts from customers 3,162,778$ 2,969,729$
Receipts from other sources 250,562 255,135
Payments to suppliers (1,142,429) (1,269,078)
Payments to employees (1,041,463) (1,092,198)
Net cash provided by operating activities 1,229,448 863,588
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchases of capital assets (1,002,705) (720,784)
Principal paid on long-term liabilities (462,548) (1,004,718)
Interest paid (205,509) (256,920)
Net cash used in capital and related financing activities (1,670,762) (1,982,422)
INVESTING ACTIVITIES
Interest received on investments 1,353 5,308
Net decrease in cash and cash equivalents (439,961) (1,113,526)
CASH AND CASH EQUIVALENTS
Beginning at July 1 1,205,586 2,319,112
RECONCILIATION TO EXHIBIT 8
Cash and cash equivalents 491,724$ 214,518$
Cash and cash equivalents, restricted 273,901 991,068
765,625$ 1,205,586$
Reconciliation of operating income to net cash
provided by operating activities
Operating income 656,061$ 340,905$
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation 674,615 655,671
Pension expense net of employer contributions (46,747) -
Change in certain assets and liabilities:
(Increase) decrease in:
Receivables, net (39,172) (48,041)
Inventories 10,016 (39,810)
Prepaids 7,379 (19,223)
Increase in:
Accounts payable and accrued liabilities (42,022) (58,712)
Accrued payroll and related liabilities (6,166) 8,912
Customer security deposits 6,100 14,800
Compensated absences 4,505 7,168
Other post employment benefits 4,879 1,918
NONCASH CAPITAL AND RELATED FINANCING
Capital asset purchases included in accounts payable 69,902$ 83,853$
Increase in WVWA Sewage Treatment Plant and Interceptor rights 294,516$ -$
Business-type Activities –
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, 2015
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 $185,776 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
$66,170 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 $465,075 in the current year. Separate financial statements are
not available.
(Continued)23
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 1.Summary of Significant Accounting Policies (Continued)
A.The Financial Reporting Entity (Continued)
Jointly Governed Organizations (Continued)
Western Virginia Regional Industrial Facility Authority:
The Town of Vinton, County of Botetourt, County of Franklin, County of Roanoke, City of
Salem, and the City of Roanoke jointly participate in the Western Virginia Regional Industrial
Facility Authority, which functions to enhance the economic base for members by developing,
owning, and operating facilities on a cooperative basis. The Authority is governed by a board
composed of twelve members appointed by the governing bodies of participating jurisdictions.
Town Council appoints two members. There were no associated costs to members for
participation in the Authority in the current year. A separate financial statement can be obtained
from the Western Virginia Regional Industrial Facility Authority care of Roanoke Regional
Partnership, 111 Franklin Road, SE, Roanoke, Virginia 24011.
Joint Venture
Regional Fire Training Facility:
The Town participates in an intergovernmental agreement with the County of Roanoke and the
Cities of Roanoke and Salem for the operation of a regional fire training facility. The Roanoke
Valley Regional Fire Training Academy Board is responsible for overseeing the management,
operation, and administration of the Academy. Each participating jurisdiction maintains a
leasehold interest in the project and shares costs of operation and maintenance equal to the
jurisdiction’s payment percentage as defined in the agreement. The Town’s participating interest
is 4%. The Town’s share of the operating cost was approximately $3,545 in the current year.
Separate financial statements are not available.
B.Individual Component Unit Disclosures
As required by generally accepted accounting principles, these financial statements present the
Town as the primary government. A component unit is an entity for which the primary
government is considered to be financially accountable. There are no component units within this
reporting entity.
(Continued)24
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
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, 2015
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, 2015
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 $497,743 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, 2015
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, the statements which present financial position report a separate section for
deferred outflows of resources. This separate financial statement element represents a
consumption of net position that applies to future periods and so will not be recognized as an
outflow of resources (expense/expenditure) until then. The Town has two items that qualify for
reporting in this category. The first 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. The
second item consists of contributions subsequent to the measurement date for pensions; this will
be applied to the net pension liability in the next fiscal year.
In addition to liabilities, statements which present financial position report a separate section for
deferred inflows of resources. This separate financial statement element represents an acquisition
of net position that applies to future periods and so will not be recognized as an inflow of
resources (revenue) until that time. The Town has three 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 fund balance sheet. The governmental
fund reports 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. The third item is
the net difference between projected and actual earnings on pension plan investments. This
difference will be recognized in pension expense over a closed five year period.
(Continued)28
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
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 $52,448 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.Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary net
position of the Political Subdivision’s Retirement Plan and the additions to/deductions from the
Political Subdivision’s Retirement Plan’s net fiduciary position have been determined on the
same basis as they were reported by the Virginia Retirement System (VRS). For this purpose,
benefit payments (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
N.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.
O.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.
(Continued)29
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 1.Summary of Significant Accounting Policies (Continued)
O.Fund Balances (Continued)
The classifications are as follows:(Continued)
Restricted –Amounts constrained to specific purposes by their providers (such as
grantors, bondholders, and higher levels of government), through constitutional
provisions, or by enabling legislation.
Committed –Amounts constrained to specific purposes by the Town, using its highest
level of decision making authority; to be reported as committed, amounts cannot be used
for any other purposes unless the same highest level of action is taken to remove or
change the constraint.
Assigned –Amounts the Town intends to use for a specified purpose; intent can be
expressed by the governing body.
Unassigned –Amounts that are available for any purpose; positive amounts are reported
only in the general fund.
Council establishes (and modifies or rescinds) fund balance commitments by passage of an
ordinance or resolution. This is typically done through adoption and amendment of the budget.
The degree of difficulty to remove an ordinance is greater than a resolution; therefore an
ordinance is the most binding. Assigned fund balance is established by Council, the Town
Manager, or the Treasuer/Director of Finance through adoption or amendment of the budget as
intended for specific purpose (such as the purchase of capital assets, debt service, or for other
purposes).
The Town applies restricted resources first when expenditures are incurred for purposes for which
either restricted or unrestricted (committed, assigned, and unassigned) amounts are available.
Similarly, within unrestricted fund balance, committed amounts are reduced first followed by
assigned, and then unassigned amounts when expenditures are incurred for purposes for which
amounts in any of the unrestricted fund balance classifications could be used.
Minimum Fund Balance Policy
The Town does not have a minimum fund balance policy or target for the General Fund.
P.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.
Q.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, 2015
Note 1.Summary of Significant Accounting Policies (Continued)
R.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, 2015
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 $242,901 of unspent bond proceeds, $31,000 of
utility deposits, $20,774 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, 2015
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, 2015
Note 5.Capital Assets
Capital asset activity for the year was as follows:
Governmental Activities
Beginning
Balance, as
restated (See
Note 16)Increases Decreases Transfers
Ending
Balance
Capital assets, not depreciated
Land $1,706,089 $- $- $- $
Construction in progress 87,042 207,417 - - 294,459
Total capital assets, not depreciated 1,793,131 207,417 - - 2,000,548
Capital assets, depreciated
Buildings and improvements 9,280,710 (101,866)9,501,969
Machinery and equipment 4,446,712 (28,592)- 4,604,980
Infrastructure 2,432,674 - - 2,453,390
Total capital assets, depreciated 16,160,096 530,701 (130,458)- 16,560,339
Less accumulated depreciation for:
Buildings and improvements 3,748,226 285,568 (101,866)- 3,931,928
Machinery and equipment 3,837,823 292,613 (28,592)- 4,101,844
Infrastructure 992,015 92,152 - - 1,084,167
Total accumulated depreciation 8,578,064 670,333 (130,458)- 9,117,939
Total capital assets, depreciated, net 7,582,032 (139,632 - - 7,442,400
Governmental activities
capital assets, net $9,375,163 $67,785 $- $- $9,442,948
(Continued)34
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 5.Capital Assets (Continued)
Beginning Ending
Capital assets, not depreciated
Land $80,752 $- - $80,752
Construction in progress 403,276 965,354 - 1,368,630
Total capital assets, not depreciated 484,028 965,354 - 1,449,382
Capital assets, depreciated
Utility plant 18,771,062 23,300 - 18,794,362
Sewage treatment contract 3,816,857 294,516 - 4,111,373
Machinery and equipment 1,558,199 100 - 1,558,299
Total capital assets, depreciated 24,146,118 317,916 - 24,464,034
Less accumulated depreciation for:
Utility plant 11,038,217 480,358 - 11,518,575
Sewage treatment contract 1,289,185 130,118 - 1,419,303
Machinery and equipment 926,585 64,139 - 990,724
Total accumulated depreciation 13,253,987 674,615 - 13,928,602
Total capital assets, depreciated, net 10,892,131 (356,699 - 10,535,432
Business-type activities
capital assets, net $11,376,159 $608,655 - $11,984,814
Depreciation expense was charged to functions/programs of the primary government as follows:
Construction Commitments
The Town’s active construction projects as of June 30 are as follows:
Project
Total
Remaining
Commitment
Sewer Line on Blanford Avenue $115,000
Phase 2 &3 of Jefferson Water Line 100,000
$215,000
(Continued)35
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
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 construction in progress balance related to this project at June 30, 2015 is $816,325.
The plant upgraded its Tinker Creek Interceptor to reduce inflow and infiltration as well as mitigate overflow.
Modifications costing approximately $5 million were completed. The Town’s share was approximately 5.5% or
$294,000, which is being funded with an obligation payable to the Western Virginia Water Authority.
The Town is required to contribute $66,000 annually to a capital reserve fund for ongoing maintenance of the
system. The Town has made the annual required contribution since the formation of the Authority in 2005.
Note 6.Long-Term Liabilities
The following is a summary of changes in long-term liabilities for the year:
Governmental Beginning Ending Due Within
General obligation bonds $3,724,405 $- $(272,528)$3,451,877 $281,336
Obligation payable –
Roanoke County 375,000 - (50,000)325,000 50,000
Obligation payable –
67,548 - (7,468)60,080 7,656
Capital leases 209,262 - (49,847)159,415 51,458
Compensated absences 432,075 122,539 (142,584)412,030 135,970
Other postemployment
benefits 57,279 44,448 (7,853)93,874 -
Business-type
General obligation bonds $5,235,409 $- $(342,548) $4,892,861 $353,167
Revenue bonds 2,225,000 - (120,000) 2,105,000 120,000
Obligation payable –
- 294,516 - 294,516 13,912
Bond Premiums 49,519 - -
Compensated absences 54,576 15,361
Other postemployment
benefits 6,405 -
(Continued)36
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 6.Long-Term Liabilities (Continued)
The general fund has been used to liquidate the liability for compensated absences, net pension
obligation, and net other postemployment benefits.
The annual requirements to amortize long-term debt and related interest are as follows:
Governmental Activities
General Obligation
Bonds Capital Leases
Obligations Payable
Roanoke County and
RCACP
Fiscal
Year Principal Interest Principal Interest Principal Interest
2016 281,336 $105,149 $51,458 $5,151 $57,656 $
2017 283,394 97,635 53,120 3,489 62,848
2018 290,332 90,000 54,837 1,772 63,040 1,023
2019 297,059 - -
2020 318,522 72,469 - - 63,444 619
2021-2025 1,716,234 213,252 - - 74,852 617
2026-2030 265,000 19,817 - - - -
$3,451,877 $679,765 $159,415 $10,412 $385,080 $5,707
Business-type Activities
General Obligation
Bonds Revenue Bonds
Obligation Payable
WVWA
Fiscal
Year Principal Interest Principal Interest Principal Interest
2016 353,167 $145,208 $120,000 $97,125 $13,912 $6,799
2017 364,081 134,295 125,000 92,538 14,241 6,470
2018 375,330 123,045 130,000 87,750 14,578 6,134
2019 348,217 112,013 135,000 82,450 14,922 5,789
2020 358,028 101,202 145,000 76,125 15,275 5,437
2021-2025 1,919,729 331,685 835,000 262,375 81,964 21,593
2026-2030 834,424 94,903 615,000 47,125 92,120 11,437
2031-2033 339,885 14,717 - - 47,504 1,522
$4,892,861 $1,057,068 $2,105,000 $745,488 $294,516 $65,181
The revenue bond has been issued in accordance with the terms of an indenture agreement with the
Virginia Municipal League/Virginia Association of Counties. The indenture agreement requires the
Town to pledge its Water and Sewer Fund Revenues as collateral for the revenue bond and to
maintain revenues in the Water and Sewer Fund equal to at least 1.20 of all debt service payments
which exclude any refunded principal payments. The pledged revenue coverage ratio for the year
ended June 30, 2015 was 1.99.Statistical Section Table 11 presents the pledged revenue coverage
ratio.
Details of long-term indebtedness are as follows:
(Continued)37
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 6.Long-Term Liabilities (Continued)
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 3.64-4.96%06/01/06 10/01/26 $755,000 $530,000 $-
Virginia Revolving Loan Fund:
G.O. Water and Sewer Bonds 3.30%07/24/03 07/01/24 1,250,704 - 708,466
G.O. Water and Sewer Bonds 3.10%10/01/04 10/01/26 2,479,000 - 1,637,383
G.O. Water and Sewer Bonds 3.10%01/12/06 03/01/26 1,210,000 - 770,018
Virginia Association of Counties:
G.O. Public Improvement Bonds 3.75-5.25%02/08/07 02/01/27 1,045,000 755,000 -
Capital One Public Funding:
G.O. Public Improvement Bonds 2.85%06/27/13 11/01/32 1,993,152 - 1,776,994
Carter Bank and Trust:
G.O. Refunding Bonds 2.05%06/27/13 11/01/24 2,228,409 2,166,877 -
3,451,877 4,892,861
Plus bond premium, net of amortization 36,774 -
$3,488,651 $4,892,861
Revenue Bonds:
Virginia Association of Counties:
Revenue Water and Sewer Bonds 3.50-5.00%12/19/07 08/01/27 2,750,000 $- $2,105,000
Plus bond premium, net of amortization - 45,851
$- $2,150,851
Capital Lease:
Kansas State Bank 3.23%09/06/12 10/06/17 $313,315 $159,415 $-
Obligations Payable:
Roanoke County 0.00%07/01/11 07/01/20 $625,000 $325,000 $-
RCACP 2.46 12/31/13 09/30/22 73,180 60,080 -
WVWA 2.35 03/01/15 09/01/32 294,516 - 294,516
$385,080 $294,516
Note 7.Defined Benefit Pension Plan
Plan Description
All full-time, salaried permanent employees of the Town of Vinton, Virginia, (the “Political
Subdivision”) are automatically covered by VRS Retirement Plan upon employment. This plan is
administered by the Virginia Retirement System (the “System”) along with plans for other employer
groups in the Commonwealth of Virginia. Members earn one month of service credit for each month
they are employed and for which they and their employer are pay contributions to VRS. Members are
eligible to purchase prior service, based on specific criteria as defined in the Code of Virginia, as
amended. Eligible prior service that may be purchased includes prior public service, active military
service, certain periods of leave, and previously refunded service.
(Continued)38
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
The System administers three different benefit structures for covered employees –Plan 1, Plan 2, and
Hybrid. Each of these benefit structures has a different eligibility criteria. The specific information
for each plan and the eligibility for covered groups within each plan are set out in the table below:
RETIREMENT PLAN PROVISIONS
PLAN 1 PLAN 2
HYBRID
RETIREMENT PLAN
About Plan 1
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 Plan 1 if their
membership date is before
July 1, 2010, and they were
vested as of January 1, 2013.
About Plan 2
Plan 2 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 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.
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 Plan 1 and Plan 2
members who were eligible and
opted into the plan during a
special election window. (see
“Eligible Members”)
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)39
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Eligible Members
Employees are in 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 1 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 Plan 1
were not eligible to elect the
Hybrid Retirement Plan and
remain as Plan 1 or ORP.
Eligible Members
Employees are in 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.
Hybrid Opt-In Election
Eligible Plan 2 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 2
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 have prior service under
Plan 2 were not eligible to elect
the Hybrid Retirement Plan and
remain as Plan 2 or ORP.
Eligible Members
Employees are in the Hybrid
Retirement Plan if their
membership date is on or after
January 1, 2014. This includes:
Political subdivision employees*
Members in Plan 1 or Plan 2
who elected to opt into the plan
during the election window
held January 1 through
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:
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 Plan 1 or Plan 2, they are
not eligible to elect the Hybrid
Retirement Plan and must select
Plan 1 or Plan 2 (as applicable)
or ORP.
(Continued)40
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Retirement Contributions
Employees contribute 5.00% of
their compensation each month to
their member contribution
account through a pre-tax salary
reduction. Some political
subdivisions elected to phase in
the required 5.00% member
contribution but all employees
will be paying the full 5.00% 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.
Retirement Contributions
Employees contribute 5.00% of
their compensation each month to
their member contribution
account through a pre-tax salary
reduction. Some political
subdivisions elected to phase in
the required 5.00% member
contribution but all employees
will be paying the full 5.00% by
July 1, 2016.
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)41
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Creditable Service
Creditable service includes active
service. Members earn creditable
service for each month they are
It also may include credit for
prior service the member has
purchased or additional creditable
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.
Creditable Service
Same as Plan 1.
Creditable Service
Defined Benefit Component:
Under the defined benefit
component of the plan, creditable
Members earn creditable service
for each month they are
employed in a covere
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
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.
(Continued)42
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30,2015
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Vesting
Vesting is the minimum length of
service a member needs to qualify
Members become vested when
they have at least five years (60
Vesting means members are
eligible to qualify for retirement
if they meet the age and service
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.
Vesting
Same as Plan 1.
Vesting
Defined Benefit Component:
Defined benefit vesting is the
minimum length of service a
member needs to qualify for a
Members are vested under the
defined benefit component of the
Hybrid Retirement Plan when
they reach five years (60 months)
of creditable service. Plan 1 or
Plan 2 members with at least five
years (60 months) 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.
(Continued)43
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Vesting (Continued)
Defined Contributions
Component: (Continued)
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.
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.
Calculating the Benefit
See definition under Plan 1.
Calculating the Benefit
Defined Benefit Component:
See definition under Plan 1.
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.
(Continued)44
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (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.
Average Final Compensation
A member’s average final
compensation is the average of
their 60 consecutive months of
highest compensation as a
covered employee.
Average Final Compensation
Same as Plan 2. It is used in the
retirement formula for the
defined benefit component of the
plan.
Service Retirement Multiplier
VRS: 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 1.70%.
Sheriffs and regional jail
superintendents: The retirement
multiplier for sheriffs and
regional jail superintendents is
1.85%.
Political subdivision hazardous
duty employees: The retirement
multiplier of eligible political
subdivision hazardous duty
employees other than sheriffs and
regional jail superintendents is
1.70% or 1.85% as elected by the
employer.
Service Retirement Multiplier
VRS: Same as Plan 1 for service
earned, purchased, or granted
prior to January 1, 2013. For
non-hazardous duty members the
retirement multiplier is 1.65% for
creditable service earned,
purchased, or granted on or after
January 1, 2013.
Sheriffs and regional jail
superintendents: Same as
Plan 1.
Political subdivision hazardous
duty employees: Same as
Plan 1.
Service Retirement Multiplier
Defined Benefit Component:
VRS: The retirement multiplier
for the defined benefit
component is 1.00%.
For members who opted into the
Hybrid Retirement Plan from
Plan 1 or Plan 2, the applicable
multipliers for those plans will be
used to calculate the retirement
benefit for service credited in
those plans.
Sheriffs and regional jail
superintendents:Not applicable.
Political subdivision hazardous
duty employees: Not applicable.
Defined Contribution
Component:
Not applicable.
(Continued)45
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Normal Retirement Age
VRS: Age 65.
Political subdivisions hazardous
duty employees: Age 60.
Normal Retirement Age
VRS: Normal Social Security
retirement age.
Political subdivisions hazardous
duty employees: Same as
Plan 1.
Normal Retirement Age
Defined Benefit Component:
VRS: Same as Plan 2.
Political subdivisions hazardous
duty employees: Not applicable.
Defined Contribution
Component:
Members are eligible to receive
distributions upon leaving
employment, subject to
restrictions.
Earliest Unreduced Retirement
Eligibility
VRS: Age 65 with at least five
years (60 months) of creditable
service or at age 50 with at least
30 years of creditable service.
Political subdivisions hazardous
duty employees: Age 60 with at
least five years of creditable
service or age 50 with at least
25 years of creditable service.
Earliest Unreduced Retirement
Eligibility
VRS: Normal Social Security
retirement age with at least five
years (60 months) of creditable
service or when their age and
service equal 90.
Political subdivisions hazardous
duty employees: Same as
Plan 1.
Earliest Unreduced Retirement
Eligibility
Defined Benefit Component:
VRS: Normal Social Security
retirement age and have at least
five years (60 months) of
creditable service or when their
age and service equal 90.
Political subdivisions hazardous
duty employees: Not applicable.
Defined Contribution
Component:
Members are eligible to receive
distributions upon leaving
employment, subject to
restrictions.
(Continued)46
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Earliest Reduced Retirement
Eligibility
VRS: Age 55 with at least five
years (60 months) of creditable
service or age 50 with at least
10 years of creditable service.
Political subdivisions hazardous
duty employees: 50 with at least
five years of creditable service.
Earliest Reduced Retirement
Eligibility
VRS: Age 60 with at least five
years (60 months) of creditable
service.
Political subdivisions hazardous
duty employees: Same as
Plan 1.
Earliest Unreduced Retirement
Eligibility
Defined Benefit Component:
VRS: Age Members may retire
with a reduced benefit as early as
age 60 with at least five years
(60 months) of creditable service.
Political subdivisions hazardous
duty employees: Not applicable.
Defined Contribution
Component:
Members are eligible to receive
distributions upon leaving
employment, subject to
restrictions.
Cost-of-Living Adjustment
(COLA) in Retirement
The Cost-of-Living Adjustment
(COLA) matches the first 3.00%
increase in the Consumer Price
Index for all Urban Consumers
(CPI-U) and half of any
additional increase (up to 4.00%)
up to a maximum COLA of
5.00%.
Eligibility:
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.
Cost-of-Living Adjustment
(COLA) in Retirement
The Cost-of-Living Adjustment
(COLA) matches the first 2.00%
increase in the CPI-U and half of
any additional increase (up to
2.00%), for a maximum COLA of
3.00%.
Eligibility:
Same as Plan 1.
Cost-of-Living Adjustment
(COLA) in Retirement
Defined Benefit Component:
Same as Plan 2.
Defined Contribution
Component:
Not applicable.
Eligibility:
Same as Plan 1 and Plan 2.
(Continued)47
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Cost-of-Living Adjustment
(COLA) in Retirement
(Continued)
Eligibility: (Continued)
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.
Exceptions to COLA Effective
Dates:
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).
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.
Cost-of-Living Adjustment
(COLA) in Retirement
(Continued)
Exceptions to COLA Effective
Dates:
Same as Plan 1.
Cost-of-Living Adjustment
(COLA) in Retirement
(Continued)
Exceptions to COLA Effective
Dates:
Same as Plan 1 and Plan 2.
(Continued)48
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
Cost-of-Living Adjustment
(COLA) in Retirement
(Continued)
Exceptions to COLA Effective
Dates: (Continued)
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 1.70%
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.
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.
Disability Coverage
Employees of political
subdivisions (including Plan 1
and Plan2 opt-ins) participate in
the Virginia Local Disability
Program (VLDP) unless their
local governing body provides
and employer-paid comparable
program for its members.
Hybrid members (including
Plan 1 and Plan 2 opt-ins)
covered under VLDP are subject
to a one-year waiting period
before becoming eligible for non-
work-related disability benefits.
(Continued)49
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Plan Description (Continued)
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.
Purchase of Prior Service
Same as Plan 1.
Purchase of Prior Service
Defined Benefit Component:
Same as Plan 1, with the
following exceptions:
Hybrid Retirement Plan
members are ineligible for
ported service.
The cost for purchasing
refunded service is the higher
of 4.00% of creditable
compensation or average final
compensation.
Plan members have one year
from their date of hire or return
from leave to purchase all but
refunded prior service at
After that one-year period, the
rate for most categories of
service will change to actuarial
cost.
Defined Contribution
Component:
Not applicable.
(Continued)50
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Employees Covered by Benefit Terms
As of the June 30, 2013 actuarial valuation, the following employees were covered by the benefit
terms of the pension plan:
Number
Inactive members or their beneficiaries currently receiving benefits 56
Inactive members:
Vested inactive members 23
Non-vested inactive members 31
Inactive members active elsewhere in VRS 56
Total inactive members 110
Active members 80
Total covered employees 246
Contributions
The contribution requirement for active employees is governed by §51.1-145 of the Code of Virginia,
as amended, but may be impacted as a result of funding options provided to political subdivisions by
the Virginia General Assembly. Employees are required to contribute 5.00% of their compensation
toward their retirement. Prior to July 1, 2012, all or part of the 5.00% member contribution may have
been assumed by the employer. Beginning July 1, 2012 new employees were required to pay the
5.00% member contribution. In addition, for existing employees, employers were required to begin
making the employee pay the 5.00% 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.
The political subdivision’s contractually required contribution rate for the year ended June 30,2015
was 12.40% of covered employee compensation. This rate was based on an actuarially determined
rate from an actuarial valuation as of June 30, 2013.
This rate, when combined with employee contributions, was expected to finance the costs of benefits
earned by employee during the year, with an additional amount to finance any unfunded accrued
liability. Contributions to the pension plan from the political subdivision were $415,814 and
$307,429 for the years ended June 30, 2015 and June 30, 2014, respectively.
(Continued)51
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Net Pension Liability
The political subdivision’s net pension liability was measured as of June 30, 2014. The total pension
liability used to calculate the net pension liability was determined by an actuarial valuation performed
as of June 30, 2013, using updated actuarial assumptions, applied to all periods included in the
measurement and rolled forward to the measurement date of June 30, 2014.
Actuarial Assumptions –General Employees
The total pension liability for General Employees in the Political Subdivision’s Retirement Plan was
based on an actuarial valuation as of June 30, 2013, using the Entry Age Normal actuarial cost
method and the following assumptions, applied to all periods included in the measurement and rolled
forward to the measurement date of June 30, 2014.
Inflation 2.50%
Salary increases, including inflation 3.50 –5.35%
Investment rate of return 7.00%, net of pension plan investment expense,
including inflation*
* Administrative expenses as a percent of the market value of assets for the last experience study
were found to be approximately 0.06% of the market assets for all of the VRS plans. This would
provide an assumed investment return rate for GASB purposes of slightly more than the assumed
7.00%. However, since the difference was minimal, and a more conservative 7.00% investment
return assumption provided a projected plan net position that exceeded the projected benefit
payments, the long-term expected rate of return on investments was assumed to be 7.00% to simplify
preparation of pension liabilities.
Mortality rates: 14% of deaths are assumed to be service related.
Largest 10 –Non-LEOS:
Pre-Retirement:
RP-2000 Employee Mortality Table Projected with Scale AA to 2020 with males set forward
4 years and females were set back 2 years.
Post-Retirement:
RP-2000 Combined Mortality Table Projected with Scale AA to 2020 with males set forward
1 year.
Post-Disablement:
RP-2000 Disability Life Mortality Table Projected to 2020 with males set back 3 years and
no provision for future mortality improvement.
(Continued)52
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Actuarial Assumptions –General Employees (Continued)
All Others (Non 10 Largest) –Non-LEOS:
Pre-Retirement:
RP-2000 Employee Mortality Table Projected with Scale AA to 2020 with males set forward
4 years and females were set back 2 years.
Post-Retirement:
RP-2000 Combined Mortality Table Projected with Scale AA to 2020 with males set forward
1 year.
Post-Disablement:
RP-2000 Disability Life Mortality Table Projected to 2020 with males set back 3 years and
no provision for future mortality improvement.
The actuarial assumptions used in the June 30, 2013 valuation were based on the results of an
actuarial experience study for the period from July 1, 2008 through June 30, 2012. Changes to the
actuarial assumptions as a result of the experience study are as follows:
Largest 10 –Non-LEOS:
Update mortality table
Decrease in rates of service retirement
Decrease in rates of disability retirement
Reduce rates of salary increase by 0.25% per year
All Others (Non 10 Largest) –Non-LEOS:
Update mortality table
Decrease in rates of service retirement
Decrease in rates of disability retirement
Reduce rates of salary increase by 0.25% per year
(Continued)53
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Actuarial Assumptions –Public Safety Employees
The total pension liability for Public Safety employees in the Political Subdivision Retirement Plan
was based on an actuarial valuation as of June 30, 2013, using the Entry Age Normal actuarial cost
method and the following assumptions, applied to all periods included in the measurement and rolled
forward to the measurement date of June 30, 2014.
Inflation 2.50%
Salary increases, including inflation 3.50 –4.75%
Investment rate of return 7.00%, net of pension plan investment expense,
including inflation*
* Administrative expenses as a percent of the market value of assets for the last experience study
were found to be approximately 0.06% of the market assets for all of the VRS plans. This would
provide an assumed investment return rate for GASB purposes of slightly more than the assumed
7.00%. However, since the difference was minimal, and a more conservative 7.00% investment
return assumption provided a projected plan net position that exceeded the projected benefit
payments, the long-term expected rate of return on investments was assumed to be 7.00% to simplify
preparation of pension liabilities.
Mortality rates: 60% of deaths are assumed to be service related.
Largest 10 –LEOS:
Pre-Retirement:
RP-2000 Employee Mortality Table Projected with Scale AA to 2020 with males set back
2 years and females set back 2 years.
Post-Retirement:
RP-2000 Combined Mortality Table Projected with Scale AA to 2020 with males set
forward 1 year.
Post-Disablement:
RP-2000 Disability Life Mortality Table Projected to 2020 with males set back 3 years and
no provision for future mortality improvement.
(Continued)54
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Actuarial Assumptions –Public Safety Employees (Continued)
All Others (Non 10 Largest) –LEOS:
Pre-Retirement:
RP-2000 Employee Mortality Table Projected with Scale AA to 2020 with males set back
2 years and females set back 2 years.
Post-Retirement:
RP-2000 Combined Mortality Table Projected with Scale AA to 2020 with males set
forward 1 year.
Post-Disablement:
RP-2000 Disability Life Mortality Table Projected to 2020 with males set back 3 years and
no provision for future mortality improvement.
The actuarial assumptions used in the June 30, 2013 valuation were based on the results of an
actuarial experience study for the period from July 1, 2008 through June 30, 2012. Changes to the
actuarial assumptions as a result of the experience study are as follows:
Largest 10 –LEOS:
Update mortality table
Decrease in male rates of disability
All Others (Non 10 Largest) –LEOS:
Update mortality table
Adjustments to rates of service retirement for females
Increase in rates of withdrawal
Decrease in male and female rates of disability
(Continued)55
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on pension System investments was determined using a
log-normal distribution analysis in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension System investment expense and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and by
adding expected inflation. The target asset allocation and best estimate of arithmetic real rates of
return for each major asset class are summarized in the following table:
Weighted
Arithmetic Average
Long-Term Long-Term
Expected Expected
Target Rate of Rate of
Asset Class (Strategy)Allocation Return Return
U.S. Equity 19.50 % 6.46 % 1.26 %
Developed Non U.S. Equity 16.50 % 6.28 % 1.04 %
Emerging Market Equity 6.00 % 10.00 % 0.60 %
Fixed Income 15.00 % 0.09 % 0.01 %
Emerging Debt 3.00 % 3.51 % 0.11 %
Rate Sensitive Credit 4.50 % 3.51 % 0.16 %
4.50 % 5.00 % 0.23 %
Convertibles 3.00 % 4.81 % 0.14 %
Public Real Estate 2.25 % 6.12 % 0.14 %
Private Real Estate 12.75 % 7.10 % 0.91 %
Private Equity 12.00 % 10.41 % 1.25 %
Cash 1.00 %(1.50)%(0.02)%
Total 100.00 %5.83 %
Inflation 2.50 %
*Expected arithmetic nominal return 8.33 %
* Using stochastic projection results provides an expected range of real rates of return over various
time horizons. Looking at one year results produces an expected real return of 8.33% but also has a
high standard deviation, which means there is high volatility. Over larger time horizons the volatility
declines significantly and provides a median return of 7.44%, including expected inflation of 2.50%.
(Continued)56
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows
used to determine the discount rate assumed that System member contributions will be made per the
VRS Statutes and the employer contributions will be made in accordance with the VRS funding
policy at rates equal to the difference between actuarially determined contribution rates adopted by
the VRS Board of Trustees and the member rate. Through the fiscal year ending June 30, 2018, the
rate contributed by the employer for the Political Subdivision Retirement Plan will be subject to the
portion of the VRS Board-certified rates that are funded by the Virginia General Assembly. From
July 1, 2018 on, participating employers are assumed to contribute 100% of the actuarially
determined contribution rates. Based on those assumptions, the pension plan’s fiduciary net position
was projected to be available to make all projected future benefit payments of current active and
inactive employees. Therefore the long-term expected rate of return was applied to all periods of
projected benefit payments to determine the total pension liability.
Changes in Net Pension Liability
Increase (Decrease)
Total Plan Net
Pension Fiduciary Pension
Liability Net Position Liability
(a)(b)(a) –(b)
Balances at June 30, 2013 $15,624,580 $13,113,366 $2,511,214
Changes for the year:
Service cost 430,229 - 430,229
Interest 1,065,284 - 1,065,284
Differences between expected
and actual experience - - -
Contributions –employer - 307,429 (307,429)
Contributions –employee - 184,601 (184,601)
Net investment income - 2,045,884 (2,045,884)
Benefit payments, including refunds
of employee contributions (812,476)(812,476)-
Administrative expenses - (11,195)11,195
Other changes - 108 (108)
Net changes 683,037 1,714,351 (1,031,314)
Balances at June 30, 2014 $16,307,617 $14,827,717 $1,479,900
(Continued)57
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the political subdivision using the discount rate of
7.00%, as well as what the political subdivision’s net pension liability would be if it were calculated
using a discount rate that is one percentage point lower (6.00%) or one percentage point higher
(8.00%) than the current rate:
1.00%Current 1.00%
Decrease Discount Increase
(6.00%)Rate (7.00%)(8.00%)
Political subdivision’s
net pension liability $3,629,056 $1,479,900 $(298,251)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended June 30, 2015, the political subdivision recognized pension expense of $187,757.
At June 30, 2015, the political subdivision reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $- $-
Change in assumptions - -
on pension plan investments - 911,642
Employer contributions subsequent to the
measurement date 415,814 -
Total $415,814 $911,642
(Continued)58
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 7.Defined Benefit Pension Plan (Continued)
Deferred outflows of resources related to pensions resulting from the Political Subdivision’s
contributions subsequent to the measurement date will be recognized as a reduction of the Net
Pension Liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized in pension expense
as follows:
Reduction
Year Ending to Pension
June 30,Expense
2016 $227,910
2017 227,910
2018 227,910
2019 227,912
Thereafter -
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.
(Continued)59
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 8.Other Postemployment Benefits (Continued)
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 2015, the Town’s pay-as-you-go
funding totaled $8,900 and resulted in a Net OPEB obligation of $105,158. The pay-as-you-go
funding includes the Town’s contribution towards retiree health care premiums of $4,000, and an
implicit subsidy of the retiree health care premiums created through the blending of active employee
and retiree insurance rates.
Annual required contribution $50,500
Interest on net OPEB obligation 2,229
Adjustment to annual required contribution (2,355)
Annual OPEB cost 50,374
Less funding (8,900)
Increase in net OPEB obligation 41,474
Net OPEB obligation-beginning of year 63,684
Net OPEB obligation-end of year $105,158
The Town’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the
net OPEB obligation for 2015, 2014,and 2013 are as follows:
Fiscal Year
Ended OPEB Cost
Annual OPEB
Cost
Contributed
Net OPEB
Obligation
June 30, 2015 $50,374 17.7%$105,158
June 30, 2014 40,076 56.4%63,684
June 30, 2013 39,990 93.2%46,208
Funded Status and Funding Progress
As of January 1, 2015, the Town’s most recent actuarial valuation date, the unfunded actuarial
accrued liability (UAAL) for benefits was $304,700, all of which was unfunded. The covered payroll
(annual payroll of active employees covered by the plan) was $3,281,500, and the ratio of the UAAL
to the covered payroll was 9.29%.
The schedule of funding progress, presented as Required Supplementary Information following the
notes to the financial statements, presents multi-year trend information about whether the actuarial
value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for
benefits.
(Continued)60
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 8.Other Postemployment Benefits (Continued)
Annual OPEB Cost and Net OPEB Obligation (Continued)
Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and healthcare cost trends. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates
are made about the future.
Projections of benefits for financial reporting purposes are based on the substantive plan and include
the types of benefits provided at the time of each valuation and the historical pattern of sharing of
benefit costs between the employer and plan members to that point. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short-term volatility in
actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective
of the calculations. The projection of benefits for financial reporting purposes does not explicitly
incorporate the potential effects of legal or contractual funding limitations on the pattern of cost
sharing between the employer and plan members in the future.
In the January 1, 2015 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 3.50% discount rate, and an initial annual healthcare cost trend of 6.60% reduced by
decrements each year to arrive at an ultimate healthcare cost trend rate of 4.50%. The unfunded
accrued liability is being amortized over 30 years. The Town has selected an open amortization
method. The amortization amount is determined as a level percentage of payroll. The remaining
amortization period at June 30, 2015 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.
(Continued)61
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
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:
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
2014-2015, total premiums paid were approximately $90,000. Benefits are those afforded through
Commonwealth of Virginia as outlined in the Code of Virginia Section 65.2-100; premiums are based
upon covered payroll, job rates, and claims experience.
General Liability
The Town provides general liability and other insurance through policies with Virginia Municipal
Self-Insurance Association. During 2014-2015, total premiums paid were approximately $125,000.
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.
(Continued)62
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 12.Risk Management (Continued)
General Liability (Continued)
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 2014-2015, total premiums paid were approximately $660,000.
Note 13.Commitments and Contingencies
Special Purpose Grants
Special purpose grants are subject to audit to determine compliance with their requirements. Town
management believes that required refunds, if any, will be immaterial.
Landfill Closure and Post-Closure Costs
As discussed in Note 1, the Town participates in the Roanoke Valley Resource Authority. The
Authority currently has responsibility for closure and post-closure care related to the new Smith Gap
landfill, the transfer station, and an old landfill site.
Closure and post-closure care requirements are mandated under the United States Environmental
Protection Agency (EPA) rule, Solid Waste Disposal Facility Criteria, and are subject to periodic
revisions by the EPA. The current estimate of remaining closure and post-closure care costs,
assuming full utilization of the sites, is approximately $13.9 million. The participating localities have
contributed their pro-rata shares to fund the closure and post-closure care costs.
Gain Sharing Agreement –Vinton Business Center
On March 2, 1999, the Town and Roanoke County reached an agreement to provide for the sharing of
certain local tax revenues and sharing of the costs of certain public services. That agreement states
that the Town and County may negotiate an agreement to fund jointly the costs of development of the
Vinton Business Center and to share equally in the local tax revenues generated by this project.
During 2007, the County paid the Town one-half of the costs of development.
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.
(Continued)63
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 13.Commitments and Contingencies (Continued)
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 2015, approximately 6% of the Town’s business-type revenues were generated by
one industrial customer.
Note 15.Fund Balances
Fund balance is classified as nonspendable, restricted, committed, assigned,and/or unassigned based
primarily on the extent to which the Town is bound to observe constraints imposed upon the use of
the resources in the general fund. The constraints placed on the general fund balance are presented
below:
General Fund
Nonspendable:
Inventories $2,947
Prepaids 56,870
59,817
Public safety 185,246
Greenway project 50,000
235,246
2,361,436
Total fund balance $2,656,499
(Continued)64
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 16.Adoption of New Standard and Prior Period Restatement
The following is a summary of the restatements to net position:
Governmental
Activities
Net position June 30, 2014, as previously stated $7,909,173
4, as restated $8,032,791
In addition, in the current year,the Town adopted GASB Statement No. 68, Accounting and
Financial Reporting for Pensions—an Amendment of GASB Statement No. 27, as amended by GASB
Statement No. 71. This standard 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 new 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. Comparative prior year information,
to the extent presented, has not been restated because the necessary information is not available.
The following is a summary of the restatements to net position, resulting from the adoption of GASB
Statement No. 68:
Governmental Water and
Activities Sewer Fund
Net position, July 1, 2014, per above $8,032,791 $5,244,819
Recognition of pension related liabilities
and deferred outflows in accordance
with GASB No. 68 (1,807,104)(396,681)
July 1, 2014, as restated $6,225,687 $4,848,138
(Continued)65
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 17.New Accounting Standards
The Governmental Accounting Standards Board (GASB) has issued the following Statements which
are not yet effective.
GASB Statement No. 72, Fair Value Measurement and Application addresses accounting and
financial reporting issues related to fair value measurements. The definition of fair value is the price
that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. This Statement provides guidance for determining a fair
value measurement for financial reporting purposes. This Statement also provides guidance for
applying fair value to certain investments and disclosures related to all fair value measurements. This
Statement will be effective for the year ending June 30, 2016.
GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other than Pensions
improves the usefulness of information about postemployment benefits other than pensions (other
postemployment benefits or OPEB) included in the general purpose external financial reports of state
and local governmental OPEB plans for making decisions and assessing accountability. This
Statement results from a comprehensive review of the effectiveness of existing standards of
accounting and financial reporting for all postemployment benefits (pensions and OPEB) with regard
to providing decision-useful information, supporting assessments of accountability and interperiod
equity, and creating additional transparency. This Statement will be effective for the year ending
June 30, 2017.
GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other
Than Pensions improves accounting and financial reporting by state and local governments for
postemployment benefits other than pensions (other postemployment benefits or OPEB). It also
improves information provided by state and local governmental employers about financial support for
OPEB that is provided by other entities. This Statement results from a comprehensive review of the
effectiveness of existing standards of accounting and financial reporting for all postemployment
benefits (pensions and OPEB) with regard to providing decision-useful information, supporting
assessments of accountability and interperiod equity, and creating additional transparency. This
Statement will be effective for the year ending June 30, 2018.
GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and
Local Governments identifies—in the context of the current governmental financial reporting
environment—the hierarchy of generally accepted accounting principles (GAAP). The “GAAP
hierarchy” consists of the sources of accounting principles used to prepare financial statements of
state and local governmental entities in conformity with GAAP and the framework for selecting those
principles. This Statement reduces the GAAP hierarchy to two categories of authoritative GAAP and
addresses the use of authoritative and nonauthoritative literature in the event that the accounting
treatment for a transaction or other event is not specified within a source of authoritative GAAP. This
Statement will be effective for the year ending June 30, 2016 and should be applied retroactively.
Earlier application is permitted.
66
TOWN OF VINTON, VIRGINIA
NOTES TO FINANCIAL STATEMENTS
June 30, 2015
Note 17.New Accounting Standards (Continued)
GASB Statement No. 77, Tax Abatement Disclosures, requires governments to disclose information
about the nature and magnitude of tax abatements granted to a specific taxpayer, typically for the
purpose of economic development. This does not cover programs that reduce the tax liabilities of
broad classes of taxpayers, such as senior citizens or veterans, and which are not the product of
individual agreements with each taxpayer. The Statement does not consider issues related to
recognition. This Statement will be effective for the year ending June 20, 2017.
Management has not yet evaluated the effects, if any, of adopting these standards.
67
REQUIRED SUPPLEMENTARY
INFORMATION
EXHIBIT 11
Total Pension Liability
Service cost 430,229$
Interest on total pension liability 1,065,284
Benefit payments, including refunds of employee contributions (812,476)
Net change in total pension liability 683,037
Total pension liability - beginning 15,624,580
Total pension liability - ending 16,307,617$
Plan Fiduciary Net Position
Contributions - employer 307,429$
Contributions - employee 184,601
Net investment income 2,045,884
Benefit payments, including refunds of employee contributions (812,476)
Administrative expenses (11,195)
Other 108
Net change in plan fiduciary net position 1,714,351
Plan fiduciary net position - beginning 13,113,366
Plan fiduciary net position - ending 14,827,717$
Net pension liability - ending 1,479,900$
Plan fiduciary net position as a percentage of total pension liability 91%
Covered employee payroll 3,353,343$
Net pension liability as a percentage of covered employee payroll 44%
TOWN OF VINTON, VIRGINIA
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
June 30, 2015
REQUIRED SUPPLEMENTARY INFORMATION
Schedule is intended to show information for 10 years. Since 2015 is the first year for this presentation, no other data is
available. However, additional years will be included as they become available.
The Notes to Required Supplementary Information
are an integral part of this statement.
68
EXHIBIT 12
Year Ended
June 30
Actuarially
Determined
Contribution (1)
Contributions in
Relation to
Actuarially
Determined
Contribution (2)
Contribution
Deficiency
(Excess) (3)
Covered
(4)
percentage of
Covered Payroll
(5)
2015 415,814$ 415,814$ -$ 3,353,343$ 12.40%
TOWN OF VINTON, VIRGINIA
SCHEDULE OF PENSION CONTRIBUTIONS
June 30, 2015
REQUIRED SUPPLEMENTAL INFORMATION
Schedule is intended to show information for 10 years. Since 2015 is the first year for this presentation, no other data is
available. However, additional years will be included as they become available.
The Notes to Required Supplementary Information are
an integral part of this statement.
69
EXHIBIT 13
(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, 2015 -$ 304,700$ 304,700$ 0.00%3,281,500$ 9.29%
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
SCHEDULE OF FUNDING PROGRESS - OPEB
June 30, 2015
70
71
TOWN OF VINTON, VIRGINIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2015
Note 1.Changes of Benefit Terms
There have been no significant changes to the Virginia Retirement System (System) benefit
provisions since the prior actuarial valuation. A hybrid plan with changes to the defined benefit plan
structure and a new defined contribution component were adopted in 2012 (fiscal year 2014 for the
teacher cost sharing pool). The hybrid plan applies to most new employees hired on or after
January 1, 2014 and not covered by enhanced hazardous duty benefits. The liabilities presented do
not reflect the hybrid plan since it covers new members joining the System after the valuation date of
June 30, 2013, and the impact on the liabilities as of the measurement date of June 30, 2014 are
minimal.
Note 2.Changes of Assumptions
The following changes in actuarial assumptions were made effective June 30, 2013 based on the most
recent experience study of the System for the four-year period ending June 30, 2012:
Largest 10 –Non-LEOS:
-Update mortality table
-Decrease in rates of service retirement
-Decrease in rates of disability retirement
-Reduce rates of salary increase by 0.25% per year
Largest 10 –LEOS:
-Update mortality table
-Decrease in male rates of disability
All Others (Non 10 Largest) –Non-LEOS:
-Update mortality table
-Decrease in rates of service retirement
-Decrease in rates of disability retirement
-Reduce rates of salary increase by 0.25% per year
All Others (Non 10 Largest) –LEOS:
-Update mortality table
-Adjustments to rates of service retirement for females
-Increase in rates of withdrawal
-Decrease in male and female rates of disability
Teacher cost-sharing pool
-Update mortality table
-Adjustments to the rates of service retirement
-Decrease in rates of withdrawals for 3 through 9 years of service
-Decrease in rates of disability
-Reduce rates of salary increase by 0.25% per year
THIS PAGE INTENTIONALLY BLANK
72
STATISTICAL SECTION
This part of the Town of Vinton Comprehensive Annual Financial Report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the Town’s overall financial health.
The Town implemented GASB Statement 68 and restated beginning net position for 2015. The restatement is not
included in the prior year data.
Contents Table
Financial Trends .....................................................................1-4
These tables contain trend information to help
the reader understand how the Town’s financial
performance and well-being have changed over
time.
Revenue Capacity ...................................................................5-8
These tables contain information to help the
reader assess the factors affecting the Town’s
ability to generate its property and sales taxes, as
well as customer rates for its water and sewer
operations.
Debt Capacity .......................................................................9-11
These tables present information to help the
reader assess the affordability of the Town’s
current levels of outstanding debt and the
Town’s ability to issue additional debt in the
future.
Demographic and Economic Information ........................12-13
These tables offer demographic and economic
indicators to help the reader understand the
environment within which the Town’s financial
activities take place and to help make
comparisons over time and with other
governments.
Operating Information.......................................................14-16
These schedules contain information about the
Town’s operations and resources to help the
reader understand how the Town’s financial
information relates to the services the Town
provides and the activities it performs.
Sources:
Reports for the relevant year.
TABLE 1
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Governmental activities
Net investment in capital assets 5,929,925$ 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$
Restricted 235,246 190,161 91,676 - 20,053 20,000 20,000 20,000 20,000 20,000
Unrestricted 499,226 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
Total governmental activities net position 6,664,397$ 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$
Business-type activities
Net investment in capital assets 5,184,003$ 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$
Unrestricted 117,415 410,722 394,976 339,523 661,273 297,150 968,176 1,255,035 1,837,429 1,882,467
Total business-type activities net position 5,301,418$ 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$
Primary government
Net investment in capital assets 11,113,928$ 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$
Restricted 235,246 190,161 91,676 - 20,053 20,000 20,000 20,000 20,000 20,000
Unrestricted 616,641 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
Total primary government net position 11,965,815$ 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$
Note:
TOWN OF VINTON, VIRGINIA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
73
TABLE 2
(Continued)
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Expenses
Governmental activities
General government 927,954$ 962,341$ 942,315$ 948,803$ 934,388$ 1,023,227$ 1,037,073$ 906,072$ 1,842,084$ 758,537$
Public safety 3,418,566 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
Public works 2,021,994 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
Parks, recreation, and cultural 621,897 635,252 588,649 553,866 583,569 617,778 610,756 575,895 300,854 456,343
Community development 427,409 575,557 398,517 1,034,510 339,983 393,160 339,304 227,303 218,941 206,510
Interest on long-term debt 193,242 200,584 143,455 183,672 194,159 203,787 211,189 220,551 188,966 140,534
Total governmental activities 7,611,062 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
Business-type activities
Water and sewer 2,994,485 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
Total business-type activities expense 2,994,485 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
Total primary government expenses 10,605,547$ 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$
Program Revenues
Governmental activities
Charges for services
Public safety 72,356$ 88,364$ 89,115$ 91,196$ 119,870$ 108,187$ 172,357$ 128,216$ 231,207$ 203,532$
Public works 110,295 110,425 110,115 110,460 110,380 110,175 132,382 114,274 110,220 114,267
Other activities 570,459 554,666 495,133 440,883 466,306 489,901 436,835 450,338 370,838 502,979
Operating grants and contributions 1,426,127 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
Capital grants and contributions 384,074 114,966 53,749 66,545 75,188 8,034 2,146 91,590 1,337,016 123,240
Total governmental activities program revenues 2,563,311 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
Business-type activities
Charges for services
Water and sewer 3,195,850 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
Capital grants and contributions - - - - - - 303,556 - 48,540 -
Total business-type activities program revenues 3,195,850 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
Total primary government program revenues 5,759,161$ 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$
Net (expense) revenue
Governmental activities (5,047,751)$ (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)$
Business-type activities 201,365 (171,926) (191,980) (290,491) (330,808) (799,293) (596,005) (892,731) (713,083) (237,696)
Total primary government net expense (4,846,386)$ (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)$
(Continued)
TOWN OF VINTON, VIRGINIA
CHANGE IN NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
74
TABLE 2
(Continued)
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
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 539,764$ 448,349$ 453,135$ 510,558$ 429,409$ 419,401$ 434,176$ 467,806$ 411,866$ 397,200$
Sales tax 1,320,700 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
Business license tax 489,749 517,111 491,996 460,638 454,636 456,536 437,797 452,672 413,400 403,818
Meals tax 912,713 900,591 912,226 909,814 864,448 842,384 861,286 860,961 806,916 715,267
Other taxes 561,080 628,177 692,669 698,412 734,316 755,808 386,703 338,292 397,014 423,145
Utilities tax 782,869 787,097 785,555 782,487 801,264 803,044 795,268 804,812 790,308 719,289
Intergovernmental revenue not restricted 768,956 756,199 807,117 773,617 748,815 664,975 631,320 679,009 755,599 437,496
Investment earnings not restricted 15,438 14,540 4,434 3,020 1,904 3,187 28,917 112,672 210,193 147,368
Restricted investment earnings 60,746 59,628 - - - - 187 11,087 145,554 113,317
Gain on disposal of property 7,444 6,516 - - - - - - - 51,366
Other 27,002 21,752 41,418 184,846 81,373 29,275 16,038 77,077 48,702 27,774
Transfers - - - 500,000 - 78,466 126,018 113,486 61,900 7,500
Total governmental activities 5,486,461 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
Business-type activities:
Investment earnings not restricted - 7 66 414 1,174 1,824 16,719 67,772 110,024 76,855
Restricted investment earnings 1,353 5,301 762 91 427 1,727 26,873 47,234 - -
Other 250,562 255,135 261,934 287,359 275,208 298,591 236,198 250,838 103,284 53,011
Transfers - - - (500,000) - (78,466) (126,018) (113,486) (61,900) (7,500)
Total business-type activities 251,915 260,443 262,762 (212,136) 276,809 223,676 153,772 252,358 151,408 122,366
Total primary government 5,738,376$ 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$
Changes in Net Position
Governmental activities 438,710$ (28,033)$ 122,464$ 64,137$ (314,879)$ (892,864)$ (1,199,260)$ (717,068)$ 457,176$ 436,395$
Business-type activities 453,280 88,517 70,782 (502,627) (53,999) (575,617) (442,233) (640,373) (561,675) (115,330)
Total primary government 891,990$ 60,484$ 193,246$ (438,490)$ (368,878)$ (1,468,481)$ (1,641,493)$ (1,357,441)$ (104,499)$ 321,065$
Note: Water and sewer charges for service is the Town’s most significant source of own-source revenue.
75
TABLE 3
2010 2009 2008 2007 2006
Pre-GASB 54 implementation:
General Fund
Reserved 361,090$ 272,645$ 314,902$ 2,835,003$ 4,625,979$
Unreserved 1,322,095 1,698,851 2,439,625 1,747,348 2,927,980
Total general fund 1,683,185$ 1,971,496$ 2,754,527$ 4,582,351$ 7,553,959$
2015 2014 2013 2012 2011
Post-GASB 54 implementation:
General Fund
Nonspendable 59,817$ 60,358$ 19,101$ 62,746$ 66,341$
Restricted 235,246 190,161 274,908 17,068 372,271
Assigned - - - - 100,000
Unassigned 2,361,436 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)
76
TABLE 4
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Revenues
Taxes 4,469,823$ 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$
Permits, privilege fees, and regulatory licenses 12,403 9,085 10,861 9,273 10,242 12,116 11,321 14,035 10,852 10,029
Fines and forfeitures 56,503 75,059 73,107 75,989 102,566 94,548 116,463 102,720 103,816 93,022
Revenue from use of money and property 197,241 198,625 105,998 105,666 118,560 156,533 201,341 298,369 527,343 436,303
Charges for services 438,558 407,900 387,049 333,832 355,606 328,116 319,293 270,521 190,513 323,882
Other 129,124 149,957 72,337 18,522 16,860 3,562 4,638 4,718 10,740 5,175
Intergovernmental 2,411,620 2,243,120 2,239,992 2,303,286 2,303,732 2,170,790 2,230,602 2,590,575 3,491,179 1,903,599
Total revenues 7,715,272 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
Expenditures
General government 668,082 645,071 632,136 618,951 628,386 641,853 652,359 695,916 660,932 629,650
Public safety 3,313,099 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
Public works 1,918,439 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
Parks, recreation, and cultural 617,934 620,636 547,604 518,579 551,240 574,215 571,291 511,481 294,221 445,612
Community development 604,476 468,678 386,592 544,245 333,617 365,366 316,267 221,764 217,263 206,379
Capital projects 551,936 140,478 542,235 160,752 114,309 90,570 384,982 1,962,873 5,899,542 907,147
Debt service:
Principal retirement 379,843 372,923 335,766 267,595 260,501 253,500 241,585 208,404 154,021 148,208
Interest and fiscal charges 182,584 186,377 174,699 185,715 195,608 205,189 212,090 208,912 202,495 157,905
Bond issuance costs - - 36,638 - - - - 1,856 - -
Total expenditures 8,236,393 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
Excess (deficiency) of revenues over
expenditures (521,121) 215,081 (67,017) 298,409 50,092 (384,268) (924,609) (2,182,646) (4,169,036) (289,995)
Other Financing Sources (Uses)
Proceeds from long-term debt - - 2,411,641 - - - - - 1,045,000 755,000
Premium on issuance of debt - - - - - - - - 45,554 19,237
Payments to refunded bond escrow agent - - (2,190,889) - - - - - - -
Proceeds from capital lease - - 313,315 - - - - 227,500 - -
Proceeds from sale of capital assets 7,444 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 7,444 6,516 534,067 630,951 2,124 95,957 141,578 354,822 1,157,279 833,103
Net change in fund balances (513,677)$ 221,597$ 467,050$ 929,360$ 52,216$ (288,311)$ (783,031)$ (1,827,824)$(3,011,757)$543,108$
Debt service as a percentage of
noncapital expenditures 7.50% 7.58% 7.21% 6.49% 6.33% 6.19% 6.07% 5.53% 5.47% 5.20%
TOWN OF VINTON, VIRGINIA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUND
Last Ten Fiscal Years
(modified accrual basis of accounting)
77
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
2015 458,804,800$ 45,024,930$6,934,930$ 17,364,350$42,930$ 528,171,940$0.06$ 528,171,940$ 100%
2014 455,632,200 45,223,230 6,882,820 13,713,107 45,720 521,497,077 0.06 521,497,077 100
2013 456,795,100 43,698,440 7,310,490 14,385,245 47,520 522,236,795 0.06 522,236,795 100
2012 465,957,200 43,682,200 7,232,260 15,347,180 46,800 532,265,640 0.06 532,265,640 100
2011 469,499,100 43,392,270 7,232,700 15,191,110 47,740 535,362,920 0.06 535,362,920 100
2010 468,470,600 42,803,545 7,303,000 15,632,460 48,190 534,257,795 0.06 534,257,795 100
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
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
78
TABLE 6
Percentage Percentage
of Total Town of Total Town
Customer Revenue Rank Revenue Revenue Rank Revenue
Precision Fabrics Group, Inc.191,920$ 1 5.88% 160,955$ 1 8.74%
Aramark 129,481 2 3.97 59,279 2 3.22
Cardinal Glass 110,933 3 3.58 33,086 3 1.80
The Berkshire 63,940 4 1.96 22,352 4 1.21
Blue Ridge Manor Apartments 44,825 5 1.37 19,919 5 1.08
Clearview Manor 28,273 6 0.87 12,358 7 0.67
Roanoke County Schools 27,247 7 0.84 17,554 6 0.95
RGM 20,121 8 0.62 9,858 9 0.54
Richard Dickerson/RL Mansard Sq 19,153 9 0.59 10,344 8 0.56
F & W Management 18,001 10 0.55 685 10 0.04
653,894$ 346,390$
Source: Town of Vinton Finance Department
1) FY 2015 % was based on total water and sewer revenue of $3,262,352
2) FY 2006 % was based on total water and sewer revenue of $1,841,667
Fiscal Year 2015 Fiscal Year 2006
TOWN OF VINTON, VIRGINIA
PRINCIPAL WATER AND SEWER CUSTOMERS
Current Year and Nine Years Ago
79
TABLE 7
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30,Fiscal Year Amount of Levy Years Amount of Levy
2015 736,979$ 650,501$ 88.27%-$ 650,501$ 88.27%
2014 645,360 610,294 94.57 12,010 610,294 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
Source: Detailed Town property tax records.
Note: The Town increased the real estate tax rate from $0.03 to $0.07 in 2015
TOWN OF VINTON, VIRGINIA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Total Collections to Date
Collected within the
Fiscal Year of the Levy
80
TABLE 8
Fiscal
Year Water Sewer Water Sewer
2015 18.85$ 27.68$ 9.43$ 13.84$
2014 17.31 25.42 8.66 12.71
2013 15.92 23.39 7.97 11.68
2012 15.92 23.39 7.97 11.68
2011 15.92 23.39 7.97 11.68
2010 13.84 20.34 6.93 10.16
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
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
81
TABLE 9
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Debt limit 52,817,194$ 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$
Total net debt applicable to limit 8,344,738 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
Legal debt margin 44,472,456$ 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$
Total net debt applicable to the limit
as a percentage of debt limit 15.80% 17.18% 19.53% 13.39% 13.27% 14.13% 14.98% 18.74% 20.37% 17.83%
Legal Debt Margin Calculation for Fiscal Year 2015
Assessed value 528,171,940$
Debt limit (10% of assessed value)52,817,194$
Less debt applicable to limit:
General obligation bonds 8,344,738
Legal debt margin 44,472,456$
Note:
TOWN OF VINTON, VIRGINIA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
82
TABLE 10
Fiscal General Obligation Revenue Capital Obligations General Obligation Revenue Obligations
Year 1 Bonds1 Leases Payable Total Bonds1 Bonds1 Payable Total
2015 3,488,651$ -$ 159,415$ 385,080$ 4,033,146$ 4,892,861$ 2,150,851$ 294,516$ 7,338,228$
2014 3,724,405 - 209,262 442,548 4,376,215 5,235,409 2,225,000 - 7,460,409
2013 3,993,409 - 257,549 425,000 4,675,958 6,125,127 2,340,000 - 8,465,127
2012 2,700,000 1,360,000 - 475,000 4,535,000 3,950,222 2,450,000 - 6,400,222
2011 2,845,000 1,435,000 47,595 - 4,327,595 4,258,808 2,555,000 - 6,813,808
2010 2,990,000 1,505,000 93,096 - 4,588,096 4,558,026 2,655,000 - 7,213,026
2009 3,130,000 1,575,000 136,595 - 4,841,595 4,848,160 2,750,000 - 7,598,160
2008 3,265,000 1,640,000 178,180 - 5,083,180 5,129,491 2,750,000 - 7,879,491
2007 3,360,000 1,700,000 4,084 - 5,064,084 5,393,625 - - 5,393,625
2006 2,410,000 1,735,000 28,105 - 4,173,105 4,730,228 - - 4,730,228
Percentage Percentage of
of Estimated Bonded Debt
Total Taxable Actual Value Per Capita Per Capita
Fiscal Total Primary Assessed of Taxable Bonded Debt Personal to Per Capita
Year Government Value Property Populatation Per Capita Income Personal Income
2015 11,371,374$ 528,171,940$ 2.15%8,151 1,395$ 43,418$ 3.21%
2014 11,836,624 521,497,080 2.27 8,151 1,452 42,288 3.43
2013 13,141,085 518,095,080 2.54 8,092 1,624 40,688 3.99
2012 10,935,222 532,265,640 2.05 8,130 1,345 39,866 3.37
2011 11,141,403 535,362,920 2.08 8,098 1,376 39,315 3.50
2010 11,801,122 534,257,800 2.21 7,814 1,510 39,315 3.84
2009 12,439,755 532,747,690 2.34 7,876 1,579 39,315 4.02
2008 12,962,671 447,926,300 2.89 7,905 1,640 41,019 4.00
2007 10,457,709 429,817,400 2.43 7,922 1,320 37,324 3.54
2006 8,903,333 400,423,000 2.22 7,782 1,144 35,978 3.18
Note: Assessed value of property can be found in Table 5.
Note: Population and Personal Income can be found in Table 12.
1 Includes bond premiums
TOWN OF VINTON, VIRGINIA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Business Type Activities Governmental Activities
83
TABLE 11
Less:Net
Fiscal Gross Operating Available
Year Revenue (1)Revenue Principal (2)Interest Coverage
2015 3,447,765$ 2,115,736$ 1,332,029$ 462,548$ 205,509$ 1.99
2014 3,263,413 2,261,529 1,001,884 504,718 256,920 1.32
2013 3,016,909 2,129,633 887,276 428,247 215,281 1.38
2012 3,041,715 2,187,683 854,032 413,586 232,992 1.32
2011 2,948,965 2,140,766 808,199 399,218 225,689 1.29
2010 2,741,776 2,361,718 380,058 385,135 195,038 0.66
2009 2,873,100 2,312,595 560,505 281,331 213,792 1.13
2008 2,621,349 2,321,983 299,366 272,788 222,032 0.60
2007 2,536,072 2,257,517 278,555 150,660 172,534 0.86
2006 2,272,898 1,848,989 423,909 123,952 94,285 1.94
(1) Excluding depreciation, interest, and amortization
(2) Excluding refunded principal payments
Last Ten Fiscal Years
PLEDGED REVENUE COVERAGE
TOWN OF VINTON, VIRGINIA
Debt Service
Notes: Details regarding the Town’s outstanding debt can be found in the Notes to Financial Statements.
84
TABLE 12
Fiscal Total Per Capita Public
Year Personal Personal School Unemployment
Ended Population (1)Income (2) Income (2) Enrollment (3)Rate (4)
2015 8,151 5,159,100$ 43,418$ 14,384 4.50%
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
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 2015 at
www.bea.gov/regional/docs/income.
85
TABLE 13
Percentage Percentage
of Total Town of Total Town
Employer Employees Rank Employment Employees Rank Employment
Precision Fabrics Group, Inc.200 1 2.45%341 1 4.38%
Berkshire 198 2 2.43 190 3 2.44
Kroger 180 3 2.21 159 4 2.04
Roanoke County Schools (Vinton)146 4 1.79 171 2 2.20
McDonalds 98 5 1.20 N/A N/A N/A
Town of Vinton 84 6 1.03 89 6 1.14
Aramark Uniform Services 72 7 0.88 120 5 1.54
Lancerlot 50 8 0.61 N/A N/A N/A
Woods Service Center 40 9 0.49 N/A N/A N/A
Carilion Clinic Family Medicine 36 10 0.44 N/A N/A N/A
1,104 13.53 1,070 13.74
Source: Total TOV Employment – Roanoke Valley Regional Commission (Planning)
N/A - Not Available
Fiscal Year 2015 Fiscal Year 2006
TOWN OF VINTON, VIRGINIA
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
86
TABLE 14
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Function/Program
General government
Management services 4 4 4 4 4 4 4 3 4 4
Finance 6 6 6 6 5 5 5 5 5 5
Planning 3 3 3 3 3 3 3 3 3 3
Police
Officers 22 24 24 24 25 24 24 24 25 21
Civilians 2 2 2 2 2 10 10 10 7 11
Fire
Firefighters and officers 11 10 9 9 9 9 9 9 9 9
Other public works 31 32 32 32 34 33 33 32 34 31
Parks, recreation, and cultural 2 3 3 3 3 3 3 2 2 5
Total 81 84 83 83 85 91 91 88 89 89
Source: Town of Vinton Finance Department
TOWN OF VINTON, VIRGINIA
FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
87
TABLE 15
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Function/Program
General government
Fleet equipment 133 133 117 117 117 117 117 62 62 60
Pieces of equipment maintained 133 133 117 117 117 117 117 62 62 60
Public safety:
Police
Arrests 507 578 582 667 546 531 658 598 504 600
Parking violations 52 64 48 56 82 139 84 62 16 135
Traffic violations 1,143 1,603 1,408 1,734 1,933 2,431 3,088 3,034 3,087 2,743
EMS
Emergency responses 2,615 2,735 2,654 2,872 2,319 2,219 2,369 2,397 2,459 1,536
Fire
Emergency responses 278 623 306 677 514 476 764 1,038 673 1,900
Public works
Refuse collection
Refuse collected (tons per day)12.55 12.78 12.92 12.75 12.70 14.00 15.90 18.10 19.00 17.30
Recyclables collected (tons per day)0.65 0.70 0.68 2.00 2.00 1.60 1.60 1.70 1.30 1.80
Other public works
Street resurfacing (miles)- 1.30 2.17 1.80 1.80 1.90 3.50 11.10 - -
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 Closed 20,000 20,000 20,000 20,000
4th of July 5,000 5,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000
(Co-Sponsor Roanoke County)Closed Closed Closed Closed Closed 5,000 5,000 5,000 5,000 5,000
(Co-Sponsor Chamber of Commerce)9,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000
Water
Number of customer accounts 5,074 5,085 5,071 5,051 5,044 5,040 5,022 4,985 4,984 4,916
Miles of distribution lines 61 61 61 61 61 61 61 60 60 56
Volume pumped (million gallons per day average)1.23 1.14 1.21 1.23 1.26 1.47 1.04 1.29 1.26 1.30
Sewer
Number of customer accounts 4,639 4,642 4,636 4,607 4,610 4,609 4,600 4,571 4,573 4,511
Miles of collection lines 60 60 60 60 60 60 60 59 57 54
Waste/Water treated (million gallons per day)1.19 0.92 0.96 0.99 1.09 1.27 1.04 1.24 1.20 1.20
N/A - Not available.
Refuse collected (tons per day) - based on 260 collection days per year.
Recyclables collected (tons per day) - based on 130 collection days per year.
Source:
TOWN OF VINTON, VIRGINIA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
88
TABLE 16
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Function/Program
Public safety
Law enforcement vehicles 26 25 25 26 27 27 29 27 19 20
Fire stations 1 1 1 1 1 1 1 1 1 1
Public works
Primary streets (lane miles)21.62 21.66 21.62 21.62 21.62 21.62 21.62 21.62 18.28 18.78
Secondary streets (lane miles)66.32 66.32 66.32 66.32 66.32 66.32 66.32 66.32 68.78 65.96
Streetlights 502 500 500 500 500 500 500 500 500 500
Parks, recreation, and cultural
Community centers
(No. of Events/Attendance)240/3990 223/3,965 253/3775 231/4033 174/3396 1/18 240/4236 180/3600 180/3600 180/3600
Charles R. Hill Center (Rentals)291 289 437 299 218 295 351 205 257 227
Skate Park Closed Closed Closed Closed Closed Closed Closed 2,400 2,400 2,400
Vinton War Memorial 235 282 301 200 202 271 277 151 - -
Parks/athletic fields
(TOV owned-Leased to Rke County)N/A N/A N/A N/A N/A N/A 37/3000 N/A N/A N/A
Jaycee Field (Seasonal ballgames)Closed Closed Closed Closed Closed Closed Closed Closed Closed Closed
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 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 6,000 5,000 6,000
Vinton Municipal Pool 7,977 8,458 10,562 10,176 12,246 11,270 11,000 11,000 7,100 7,147
Water and sewer
Water mains (miles)61 61 61 61 61 61 61 60 60 56
Sanitary sewers (miles)60 60 60 60 60 60 60 59 59 54
Stormwater
Storm sewers (miles)12 12 12 12 12 12 12 12 12 11
Signalized Street Intersections
Traffic Signals (each)11 11 11 11 11 11 11 11 11 11
Source:
TOWN OF VINTON, VIRGINIA
CAPITAL ASSET AND INFRASTRUCTURE STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
89
90
COMPLIANCE SECTION
91
Your Success is Our Focus
319 McClanahan Street, S.W. • Roanoke, Virginia 24014-1711 • 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, 2015, 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 9, 2015.
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.
92
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 Responses to Findings
The Town of Vinton’s responses to the findings identified in our audit are described in the
accompanying schedule of findings and responses. The Town’s responses were not subjected to the
auditing procedures applied in the audit of the financial statements and, accordingly, we express no
opinion on 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 9, 2015
93
TOWN OF VINTON, VIRGINIA
SUMMARY OF COMPLIANCE MATTERS
June 30, 2015
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
94
TOWN OF VINTON, VIRGINIA
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2015
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
15-1:Budget Appropriations
Condition:
After audit adjustments, expenditures exceeded budgeted appropriations in the debt service category.
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 2015 and additional budget appropriations were approved for known
expenditures at that time.