Vistancia
Community Facilities
District
Peoria, Arizona

Annual
Financial Report
For Fiscal Year Ended
June 30, 2008

District Board:
Bob Barrett, Chairman
Vicki Hunt
Ron Aames
Cathy Carlat
Joan Evans
Carlo Leone
Dave Pearson

District Administrative Staff:
Carl Swenson, District Manager
Brent D. Mattingly, District Treasurer & Chief Financial Officer
Stephen M. Kemp, District Council
Mary Jo Kief, District Clerk

Prepared by City of Peoria Finance Department

VISTANCIA COMMUNITY FACILITIES DISTRICT
Peoria, Arizona
ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2008
TABLE OF CONTENTS
Page
Transmittal letter

ii

Independent Auditors’ Report

1

Management’s Discussion and Analysis

3

BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Assets
Statement of Activities

7
8

Fund Financial Statements
Governmental Funds Balance Sheet
Reconciliation of the Balance Sheet to the Statement of Net Assets – Governmental Activities
Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
Of Governmental Funds to the Statement of Activities – Governmental Activities
Budgetary Comparison Statement – General Fund
Notes to the Financial Statements

9
10
11
12
13
15

SUPPLEMENTAL INFORMATION
Budgetary Comparison Schedule – Debt Service Fund

i

24

Vistancia Community Facilities District
Peoria, Arizona

October 7, 2008
Honorable Board of Directors:
The accompanying basic financial statements of the Vistancia Community
Facilities District (the District) for the year ended June 30, 2008 have been
prepared for the use of the District Board, staff and other interested parties. This
report includes Management’s Discussion and Analysis, the basic financial
statements for the District including government-wide financial statements, fund
financial statements and footnotes, and supplemental budget comparison
schedules for the District’s funds.
This report was prepared by the Financial Services Division of the Finance
Department of the City of Peoria, Arizona (the City) as finance staff for the
District. It is intended as District management’s report to the District Board and
other interested parties.
The District is a component unit of the City of Peoria, Arizona for financial
reporting. As a component unit of the City, the accompanying financial
statements were included in the annual audit of the City’s Comprehensive Annual
Financial Report (CAFR) for the year ended June 30, 2008. A copy of the City’s
CAFR may be obtained by contacting the City’s Finance Department at 8401
West Monroe Street, Peoria, Arizona 85345. Additionally, the auditors, Heinfeld,
Meech & Co., P.C., have also expressed an opinion on the separate financial
statements of the District included herein. That opinion may be found on page 1
of this financial report.
Questions about the financial statements included herein should be addressed to
the City of Peoria, Finance Department at the above address.

ii

BASIC FINANCIAL STATEMENTS

MANAGEMENT’S DISCUSSION AND ANALYSIS

As management of the Vistancia Community Facilities District (the District), we offer this narrative
overview and analysis of the financial activities of the District for the fiscal year ended June 30, 2008.
This discussion and analysis is designed to (1) assist the reader in focusing on significant financial
issues, (2) provide an overview of the District’s financial activity, (3) identify changes in the District’s
financial position, and (4) identify individual fund issues or concerns.
On October 15, 2002, the District was formed by petition to the City Council of the City of Peoria, Arizona
(City) pursuant to Title 48, Chapter 4, Article 6 of the Arizona Revised Statutes. The District is a special
purpose taxing district and separate political subdivision under Arizona statues. As such, the District can
levy taxes and issue bonds, independent of the City. Property owners within the District boundaries pay
for District infrastructure and functions through secondary property tax assessments. The District’s
purpose is to acquire or construct public infrastructure in a specified area of the City. City staff administers
the District. The Peoria City Council also serves as the District Board of Directors. The District is one of
the City of Peoria’s component units for the fiscal year ended June 30, 2008.
Financial Highlights
¾

The fiscal year 2008 tax levy was $2.10 per $100 valuation.

¾

District tax collections plus developer contributions were sufficient to pay District debt service
during fiscal year 2008.

¾

The fund balance of the District’s governmental funds at June 30, 2008 is $26.7 million, a
decrease of $8.8 million (24.8%) from the previous year, due to the expenditure of bond
proceeds on capital expenditures. Of the total ending governmental fund balance, $7.8
million is reserved for debt service, and $18.9 million is reserved for capital projects.

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis introduces the District’s basic financial statements. The basic financial
statements are comprised of three components: (1) government-wide financial statements, (2) fund
financial statements and (3) notes to the financial statements.
Government-wide Financial Statements
The statement of net assets is designed to provide a broad overview of the District’s finances in a manner
similar to those used by private businesses. The statement of net assets presents information on all of
the District’s assets and liabilities, both current and long-term, with the difference between assets and
liabilities reported as net assets. The focus on net assets is designed to be similar to the emphasis for
businesses. Over time, increases or decreases in net assets may serve as a useful indicator of the
whether the financial position of the District is improving or deteriorating. To assess the overall health of
the District, other indicators, including non-financial indicators should also be considered.
The statement of activities presents information showing how the District’s net assets changed over the
most recent fiscal year. Since full accrual accounting is used for the government-wide financial
statements, all changes to net assets are reported at the time that the underlying event giving rise to the
change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods, such as
revenues pertaining to uncollected taxes and expenses related to accrued interest. This statement also
focuses on both the gross and net costs of the various functions of the District, based only on direct
functional revenues and expenses. This is designed to show the extent to which the various functions
depend on general taxes and revenues for support.

3

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 conditions. Funds are used to ensure and demonstrate compliance
with finance-related legal requirements. All of the funds of the District are governmental funds and all are
restricted, either by bond covenants or state law, as to use.
The District maintains two governmental funds, a general fund and a debt service fund. Information is
presented separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures and changes in fund balances for each fund.
The District adopts annual budgets for both the general fund and the debt service fund. Budgetary
comparison statements are provided to demonstrate compliance with the adopted budgets.
Notes to the financial statements
The notes to the financial statements provide additional information that is essential to a full
understanding of the data provided in the financial statements and should be read in conjunction with the
financial statements.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As of June 30, 2008, the liabilities of the District exceed its assets by $36.0 million (net assets). The
deficit in net assets is due to the nature of the District’s operations. The purpose of the District is to
acquire or construct certain capital infrastructure, primarily water and wastewater systems, within the
boundaries of the District. Once the capital infrastructure is acquired or constructed, it is turned over to
the City to operate. As a special purpose district and a separate political subdivision under the Arizona
Constitution, the District can levy taxes and issue bonds independently of the City. Property owners
within the District are assessed property taxes to pay the debt service over the life of the bonds. The City
has no liability for debt of the District. Because the capital assets are reported in the City’s financial
statements, the Statement of Net Assets for the District reflects a large liability (bonds payable) without an
offsetting asset.
The following tables, graphs and analysis discuss the financial position and changes to the financial
position for the District as a whole as of and for the year ended June 30, 2008 with comparative
information for the previous year.
Net Assets
Net assets may serve over time as a useful indicator of a government’s financial position. The following
table reflects the condensed Statement of Net Assets of the District for June 30, 2008 compared to the
prior year.
Statement of Net Assets
As of June 30
(in millions of dollars)

Governmental Activities
Current and other assets
Capital assets
Total assets
Other liabilities
Long-term liabilities outstanding
Total liabilities
Net assets:
Restricted

2008
$ 28.9
1.9
30.8

2007
$ 37.7
37.7

3.7
63.1
66.8

3.7
64.6
68.3

$ (36.0)

$ (30.6)

% Change
(23.3)%
(18.3)
0.0
(2.3)
(2.2)
17.6

Current assets (cash, restricted cash & cash equivalents and property taxes receivable) decreased $8.8
million in fiscal year 2008 due to the acquisition and construction of capital infrastructure during fiscal year
4

2008. Capital assets of $7.2 million were constructed and transferred to the City during fiscal year 2008,
while work-in-progress capital assets of $1.9 were retained by the District pending asset completion.
Changes in Net Assets
The following table compares the revenue and expenses for the current and previous fiscal year.
Changes in Net Assets
For the year ended June 30
(in millions of dollars)

Governmental Activities
2008
REVENUES:
Program revenues:
Developer contributions
General revenues:
Property taxes
Investment earnings
Total revenues
EXPENSES:
Program activities:
Public works
Interest expense on debt
Total expenses
Excess before transfers
Transfers in (out)
Increase (decrease) in net assets

$

2.4

$

1.8
1.2
5.4

2007

% Change

2.7

(11.1)%

1.0
1.2
4.9

3.6
3.6
1.8
(7.2)
$ (5.4)

3.2
3.2
1.7
(2.9)
$ (1.2)

80.0
0.0
10.2

12.5
12.5
5.9
148.3
(350.0)

The net assets of the District decreased $5.4 million in fiscal year 2008. This decrease is primarily due to
completed capital assets of $7.2 million transferred to the City in fiscal year 2008. Under an agreement
between the District and the developer, the developer is to cover any deficits between tax collections and
debt service requirements. In fiscal year 2008 the developer contributed $2.4 million for payments on
district debt.
FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS
The District maintains fund accounting to demonstrate compliance with budgetary and legal requirements
related to special purpose districts and general obligation bonds.
The focus of the governmental fund financial statements is to provide information on near-term inflows,
outflows and balances of spendable resources. Such information is useful in assessing the District’s
ability to pay the debt service on the general obligation bonds it issues to fund construction or acquisition
of public infrastructure.
The fund balance of the District’s combined governmental funds is $26.7 million, a decrease of $8.8
million from the previous year, due to expenditures for the acquisition or construction of capital assets of
$9.1 million. Of the total ending fund balance $7.8 million is for debt service and $18.9 million is reserved
for capital projects.
Revenues totaled $5.4 million in fiscal year ending June 30, 2008, of which $2.4 million is from developer
contributions under the Standby Contribution Agreement between the District and the developer.
Property tax revenues increased by $.8 million during the fiscal year due to an increase in the district’s
assessed valuation from $45.0 million to $91.3 million.

5

CAPITAL ASSET AND DEBT ADMINISTRATION
The District was formed to finance the acquisition or construction of public infrastructure that is
subsequently donated to the City for operation. The District does not own or operate infrastructure once
completed. Since formation, District bonds have been issued and the proceeds used to construct public
infrastructure such as a water reclamation plant, wells and booster stations. During fiscal year 2008,
$9,112,431 was expended for capital. Associated assets of $7,259,160 were transferred to the City, and
accepted by the City as a donation of capital assets. Construction in progress of $1,853,271 was held by
the District at the end of fiscal year 2008.
The District is authorized, by an election held November 12, 2002, to issue $100 million in District general
obligation or revenue bonds. As of June 30, 2008, the District has issued $67.6 million of general
obligation bonds against the authorization. These bonds are to be repaid through property taxes levied
on the property within the District. Under a Standby Contribution Agreement, Vistancia LLC, the
developer of the community, is obligated to fund any difference between debt service costs and property
tax revenues. The City has no obligation for the District’s debt, other than to the administration of the
collection of property taxes and the payment of debt service on behalf of the District.
At the time of issue, District general obligation bonds have a 20-year term. In the event the District Board
decides at a future time to dissolve the District, State statute provides that all taxable property in the
District will remain subject to the lien for the payment of the bonds until all bonds have been defeased.
Outstanding Long-Term Debt at June 30

General obligation bonds

Governmental Activities
2007
2008
$ 66,085,000
$ 64,610,000

The District issued $21,250,000 in bonds in fiscal year 2003, $23,550,000 during fiscal year 2005, and an
additional $22,760,000 during fiscal year 2007. As of June 30, 2008 $2,950,000 has been paid against
principal on the outstanding debt.
ECONOMIC FACTORS
The unemployment rate in the metropolitan Phoenix region for June 2008 was 4.3%, which remains
below both the state (4.4%) and national average (5.5%). The regional economy remains subdued with
slower residential and commercial building activity. Overall employment growth for the Phoenix area
slowed to a 3% pace with some moderate gains realized in the business, healthcare and education
sectors, which has helped to offset job losses within the construction and financial services industries.
Within Peoria, the local economy has remained stable with decreased residential construction and slower
but steady commercial activity continuing to provide services to the neighborhoods and planned
communities that have developed over the past few years.
The adopted fiscal year 2009 budget for the District is $35.9 million, a decrease of 19.5% from 2008. The
tax rate for the District for fiscal year 2009 is $2.10, unchanged from the fiscal year 2008 tax rate.
FINANCIAL CONTACT
This financial report is designed to provide a general overview of the District’s finances and to
demonstrate accountability for the use of public funds. Questions about any of the information provided
in this report, or requests for additional financial information should be addressed to the City’s Finance
Department at the following address: City of Peoria, 8401 W. Monroe Street, Peoria, Arizona 85345.

6

VISTANCIA COMMUNITY FACILITIES DISTRICT
STATEMENT OF NET ASSETS
JUNE 30, 2008
Primary Government
Governmental
Activities
ASSETS
Cash and cash equivalents
Investments
Interest receivable
Property taxes receivable
Deferred bond issuance costs, net
Restricted cash and cash equivalents
Capital assets:
Non-depreciable
Total assets
LIABILITIES
Accounts payable
Interest payable
Unamortized bond premium
Other liabilities
Non-current liabilities:
Due within one year:
Current portion of bonds payable
Due in more than one year:
Noncurrent portion of bonds payable
Total liabilities
NET ASSETS
Unrestricted
Total net assets

$

5,021
7,136
38,232
99,963
1,764,244
27,037,392
1,853,271
30,805,259
936
1,726,313
77,765
416,678

1,550,000
63,060,000
66,831,692

$

(36,026,433)
(36,026,433)

The accompanying notes are an integral part of the financial statements
7

VISTANCIA COMMUNITY FACILITIES DISTRICT
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2008

Expenses
Functions/Programs
Primary government:
Governmental activites:
Public works
Interest expense on debt
Totals

$

17,661
3,559,514
3,577,175

Capital
Contributions

$

Net (Expenses) Revenues and
Changes in Net Assets
Governmental Activities

2,413,644
2,413,644

General revenues
Taxes:
Property taxes, levied for general purposes
Investment earnings
Transfers in (out)
Total general revenues and transfers
Change in net assets
Net assets - beginning
Net assets - ending

The accompanying notes are an integral part of the financial statements
8

$

2,395,983
(3,559,514)
(1,163,531)

1,816,886
1,171,344
(7,259,161)
(4,270,931)
(5,434,462)
(30,591,971)
$ (36,026,433)

VISTANCIA COMMUNITY FACILITIES DISTRICT
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2008
Debt
Service
Fund

General
Fund
ASSETS
Cash and cash equivalents
Investments
Interest receivable
Property taxes receivable
Restricted cash and cash equivalents
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Deferred revenue
Retainage payable
Total liabilities
Fund balances:
Reserved for:
Debt service
Capital projects
Total fund balance
Total liabilities and fund balance

$

28,254
19,329,013
$ 19,357,267

$

$

$

$

$

936
416,678
417,614

18,939,653
18,939,653
$ 19,357,267

$

$

$

$

Totals

5,021
7,136
9,978
99,963
7,708,379
7,830,477

$

64,814
64,814

$

7,765,663
7,765,663
7,830,477

$

The accompanying notes are an integral part of the financial statements
9

$

$

$

5,021
7,136
38,232
99,963
27,037,392
27,187,744

936
64,814
416,678
482,428

7,765,663
18,939,653
26,705,316
27,187,744

VISTANCIA COMMUNITY FACILITIES DISTRICT
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
GOVERNMENTAL ACTIVITIES
JUNE 30, 2008

Fund balances - total governmental funds balance sheet

$

26,705,316

$

1,853,271

Amounts reported for governmental activities in the statements of
net assets are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the governmental funds.
Governmental capital assets
Other assets used in governmental activities are not financial resources
and therefore are not reported in the governmental funds.
Deferred bond issue costs

1,764,244

Long-term liabilities, including bonds payable are not due and payable
in the current period and therefore are not reported in the governmental
funds.
Governmental bonds payable
Bond premiums are recognized at the time of issuance in the governmental
funds, but is deferred and recognized over the life of the bonds for
government-wide reporting
Property tax revenue earned but not received within 60 days of year-end
is deferred for the governmental statements, but is recognized as
revenue for the government-wide statements
Interest payable on long-term debt is not reported in the governmental
funds.

Net assets of governmental activities - statement of net assets

The accompanying notes are an integral part of the financial statements
10

(64,610,000)

(77,765)

64,814

(1,726,313)

$ (36,026,433)

VISTANCIA COMMUNITY FACILITIES DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
Debt
Service
Fund

General
Fund
REVENUES:
Taxes:
Property taxes
Investment earnings
Developer contributions
Total revenues
EXPENDITURES:
Debt service:
Principal payments
Interest and other charges
Capital outlay
Total expenditures

$

637,317
637,317

$

1,773,469
534,027
2,413,644
4,721,140

$

1,773,469
1,171,344
2,413,644
5,358,457

$

1,853,271
1,853,271

$

1,475,000
3,532,249
5,007,249

$

1,475,000
3,532,249
1,853,271
6,860,520

Excess (deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources and uses
Net change in fund balances
Fund balances - beginning
Fund balances - ending

Totals

(1,215,954)

$

(7,452,116)
(7,452,116)

(286,109)

$

(8,668,070)

(93,154)

27,607,723
$ 18,939,653

192,955
192,955

$

(1,502,063)

$

192,955
(7,452,116)
(7,259,161)
(8,761,224)

7,858,817

35,466,540

7,765,663

$ 26,705,316

The accompanying notes are an integral part of the financial statements
11

VISTANCIA COMMUNITY FACILITIES DISTRICT
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES - GOVERNMENTAL ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2008
Net change in fund balances - total governmental funds

$

(8,761,224)

Amounts reported for governmental activities in the statement of activities are different because:
Certain revenues are deferred in the governmental funds because they do not provide current
financial resources, but are considered revenue on the statement of activities.

25,756

Interest expense in the statement of activities differs from the amount reported in governmental
funds because accrued interest was calculated for bonds and notes payable for the statement
of activities, but is expensed when due for the governmental fund statements.

79,625

Governmental funds report capital outlays as expenditures. However, in the statement of
activities, the costs of those assets is allocated over their estimated useful lives and reported
as depreciation expense. This is the amount by which capital outlays ($1,853,271) exceeded
depreciation ($0) in the current period.

1,853,271

Repayment of bond principal is an expenditure in the governmental funds, but reduces long-term
liabilities in the statement of net assets. No effect on net assets.

1,475,000

The costs of issuing bonds are reported as an expenditure in governmental funds in the year of
bond issuance and thus has the effect of reducing fund balance because current financial
resources have been used. For the City as a whole, however, the bond issuance costs are
deferred and amortized (expensed) over the life of the bonds.
Change in net assets of governmental activities- statement of activities

The accompanying notes are an integral part of the financial statements
12

(106,890)
$

(5,434,462)

VISTANCIA COMMUNITY FACTILITIES DISTRICT
BUDGETARY COMPARISON STATEMENT
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2008

Budgeted Amounts
Original
Final
Budgetary fund balance, July 1, 2007

$

21,630,856

$

21,630,856

RESOURCES (INFLOWS):
Investment earnings
Total inflows
Amounts available for appropriation

545,000
545,000
22,175,856

545,000
545,000
22,175,856

CHARGES TO APPROPRIATIONS (OUTFLOWS):
Public works
Capital outlay
Total charges to appropriations

27,821,686
27,821,686

27,821,686
27,821,686

Budgetary fund balance, June 30, 2008

$

(5,645,830)

$

(5,645,830)

Variance with
Final Budget
Over
(Under)

Actual
Amounts
(budgetary basis)
$

21,630,856

$

614,616
614,616
22,245,472

69,616
69,616
69,616

(936)
9,064,704
9,063,768
$

13,181,704

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriations" from the budgetary
comparison schedule
$
22,245,472
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary resource but is not a
a current year revenue for financial reporting purposes
(21,630,856)
The City budgets certain revenues on the cash basis, rather than on the modified
accrual basis
22,701
Total revenues as reported on the combining statement of revenue, expenditures, and changes
in fund balances - non-major governmental funds
$
637,317
Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary
comparison schedule
$
9,063,768
Differences - budget to GAAP:
The City budgets for certain other expenditures on the cash basis, rather than on the
modified accrual basis
48,664
Capital outlay recognized as expenditures for budgetary purposes, but assets capitalized
in proprietary funds for financial reporting purposes
(7,259,161)
Total expenditures as reported in the combining statement of revenues, expenditures, and
changes in fund balances - non-major governmental funds
$
1,853,271

The accompanying notes are an integral part of the financial statements
13

-

(936)
(18,756,982)
(18,757,918)
$

18,827,534

VISTANCIA COMMUNITY FACILITIES DISTRICT
Peoria, Arizona
NOTES TO THE FINANCIAL STATEMENTS

Page
Summary of Significant Accounting Policies

15

Budget Basis of Accounting

20

Cash and Investments

20

Property Taxes

20

Transfers

21

Deficits in Fund Equity/Excess of Expenditures over Appropriations

22

Fund Balance/Net Assets Reservations and Designations

22

Capital Assets

22

Long-Term Debt

22

14

VISTANCIA COMMUNITY FACILITIES DISTRICT
PEORIA, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2008
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the Vistancia Community Facilities District, a component unit of the City of
Peoria, Arizona (City), conform to accounting principles generally accepted in the United States of
America (“GAAP”) as applicable to governmental units. The Governmental Accounting Standards Board
(“GASB”) is the accepted standard-setting body for establishing governmental accounting and financial
reporting principles.
The following is a summary of other significant accounting policies:
A. Financial Reporting Entity
The Vistancia Community Facilities District (the District) was formed by petition to the City
Council in 2002. The District’s purpose is to acquire or construct public infrastructure in a
specified area of the City. As a special purpose district and separate political subdivision under
the Arizona Constitution, the District can levy taxes and issue bonds independently of the City.
Property owners in the designated areas are assessed for the District’s property taxes, and thus
for the costs of operating the District. The City Council serves as the Board of Directors of the
District. The City has no liability for the District’s debt. For financial reporting purposes, the
transactions of the District are included as governmental type funds in the City’s financial
statements as if they were part of the City’s operations.
B. Basic Financial Statements
The basic financial statements of the District include both government-wide and fund financial
statements. The government-wide financial statements (statement of net assets and statement of
activities) report on all of the non-fiduciary activities of the District as a whole. All of the activities
of the District are governmental activities. All activities are reported in the government-wide
financial statements using the economic resources measurement focus and the accrual basis of
accounting, which includes long-term assets and receivables as well as long-term debt and
obligations. The government-wide financial statement focus more on sustainability of the District
as an entity and the change in aggregate financial position resulting from activities of the period.
Generally, the effect of interfund activity has been removed from the government-wide financial
statements.
The government-wide Statement of Net Assets reports all financial and capital resources of the
government (excluding fiduciary funds). It is displayed in a format of assets less liabilities equal
net assets, with the assets and liabilities shown in order of their relative liquidity. Net assets are
required to be displayed in three components, if applicable: 1) invested in capital assets, net of
related debt, 2) restricted and 3) unrestricted. Restricted net assets are those with constraints
placed on their use by either: 1) externally imposed by creditors (such as through debt
covenants), grantors, contributors, or laws or regulations of other governments, or 2) imposed by
law through constitutional provisions or enabling legislation. All net assets not otherwise
classified as restricted, are shown as unrestricted.
Generally, the District would first apply
restricted resources when an expense is incurred for purposes for which both restricted and
unrestricted net assets are available. At June 30, 2008, the net assets of the District are negative
and therefore are shown as unrestricted.
The government-wide Statement of Activities demonstrates the degree to which the direct
expenses of the functions and segments of the District are offset by program revenues. Direct
expenses are those that are clearly identifiable with a specific function or segment. Interest on
general long-term debt is shown separately, not allocated to functions. Program revenues
include: 1) charges to customers or users who purchase, use or directly benefit from goods,
15

VISTANCIA COMMUNITY FACILITIES DISTRICT
PEORIA, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2008
services or privileges provided by a particular 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, investment income and other revenues not identifiable with particular functions
or segments are included as general revenues. The general revenues support the net costs of
the functions and segments not covered by program revenues.
Also part of the basic financial statements are fund financial statements. The focus of the fund
financial statements is on major funds. Both of the funds of the District, the capital projects fund
and the debt service fund are governmental funds. The governmental fund financial statements
are prepared on a current financial resources measurement focus and modified accrual basis of
accounting. Since the governmental fund financial statements are presented on a different basis
than the governmental activities of the government-wide financial statements, reconciliations are
provided following each fund statement. These reconciliations briefly explain the adjustments
necessary to transform the fund financial statements into the governmental activities of the
government-wide financial statements.
C. Basis of Presentation
The accounts of the District are organized and operated on the basis of funds. A fund is an
independent fiscal and accounting entity with a self-balancing set of accounts, which includes
assets, liabilities, fund equity, revenues and expenditures/expenses.
Fund accounting
segregates funds according to their intended purpose and is used to aid management in
demonstrating compliance with finance-related legal and contractual provisions. The minimum
number of funds is maintained consistent with legal and managerial requirements.
The following fund categories (further divided by fund type) are used by the District:
Governmental Funds
Governmental funds are used to account for the District’s general government activities. The
focus of Governmental Fund measurement is upon determination of financial position and
changes in financial position rather than upon net income. The following are the Governmental
Funds of the District:
General Fund accounts for the proceeds from the sales of Community Facilities District bonds
and the acquisition of capital assets or construction of major capital projects within the District.
Debt Service Fund accounts for the resources accumulated for, and the servicing of the general
long-term debt of the District, including principal, interest and other related costs.
D. Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. Governmental fund types are presented using the flow of current financial
resources measurement focus. This presentation is deemed most appropriate to 1) demonstrate
legal and covenant compliance, 2) demonstrate the sources and uses of liquid resources, and 3)
demonstrate how the District’s actual revenues and expenditures conform to the annual budget.
With this measurement focus, operating statements present increases and decreases in net
current assets, and unreserved fund balance is a measure of available spendable resources.
Under the modified accrual basis of accounting, revenues are recognized when susceptible to
accrual (i.e. when they are “measurable and available”). “Measurable” means the amount of the
transaction can be determined and “available” means collectible within the current period or soon
thereafter to pay liabilities of the current period. The District considers revenues available under
16

VISTANCIA COMMUNITY FACILITIES DISTRICT
PEORIA, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2008
modified accrual, if they are earned by June 30 (all eligibility requirements have been met) and
the revenue is expected to be collected within six months after year-end, except for property
taxes. For property taxes, the District uses a 60 day collection period. Expenditures are
recorded when the related fund liability is incurred, except for unmatured interest on general longterm debt which is recognized when due.
When applying the “susceptible to accrual” concept to intergovernmental revenues pursuant to
GASB Statement #33 – Recipient Reporting for Certain Shared Non-exchange Transactions
(Statement #33), receivables and revenues are recognized when the applicable eligibility
requirements, including time requirements, are met. Resources transmitted before the eligibility
requirements are met are reported as deferred revenue.
Under GASB Statement #33, property taxes are susceptible to accrual when an enforceable legal
claim has arisen. As noted above, the District recognizes property taxes received within 60 days
of fiscal year-end to be revenues under modified accrual. The remaining taxes levied, if any, are
considered deferred revenue on the financial statements. Other receipts become measurable and
available when cash is received by the District and are recognized as revenue at that time.
Interest and dividend income is recognized on the modified accrual basis. Changes in fair value
of investments are recognized in investment income at the end of the year.
E. Budgets and Budgetary Accounting
The District uses the following procedures in establishing the budgetary data reflected in the
accompanying financial statements:
•

According to the laws of the State of Arizona, all operating budgets must be approved
by their governing board on or before the second Monday in August to allow sufficient
time for legal announcements and hearings required for the adoption of the property
tax levy on the third Monday in August.

•

In June, the proposed budget for the following fiscal year is presented by the
Treasurer to the District Board. The budget includes proposed expenditures and the
means of financing them. Public meetings are held to obtain taxpayer comment.

•

Prior to June 30, the District Board legally enacts the budget, through the passage of
a resolution. The resolution sets the limit for expenditures for the year. There were
no supplemental appropriations made during fiscal year 2008.

•

The initial budget for the fiscal year may be amended during the year in a legally
permissible manner.

•

All unencumbered expenditure appropriations expire at the end of the fiscal year.

•

Encumbered amounts are re-budgeted in the following year as deemed appropriate
and necessary. Budgetary carry forwards are approved by the District Board.

•

All funds of the District have legally adopted budgets. Formal integration of these
budgets into the District’s financial systems is employed as a management control
device during the year for all funds.

The District prepares its annual budget on a modified cash basis, which differs from GAAP. The
District prepares budgetary comparison statements for both of its funds for presentation in the
17

VISTANCIA COMMUNITY FACILITIES DISTRICT
PEORIA, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2008
annual financial statements of the District. These statements display original budget, amended
budget and actual results (on a budgetary basis). The budgetary statements are presented as
supplemental information after the notes to the financial statements.
F. Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for
the expenditure of funds are recorded in order to reserve that portion of the applicable
appropriation, is employed by the District. Encumbrances, if any, are reported as designations of
fund balances at June 30 in the financial statements, since they do not constitute expenditures or
liabilities. No restrictions of net assets for encumbrances are shown in the government-wide
financial statements.
G. Deposits and Investments
Arizona Revised Statutes authorizes the District to invest public monies in the State or County
treasurer’s investment pools, interest bearing savings accounts, certificates of deposit and
repurchase agreements in eligible depositories: bonds or other obligations of the United States
government that are guaranteed as to principal and interest by the United States government; or
bonds of the State of Arizona counties, cities, towns, school districts or special districts as
specified by statute. As required by statute, collateral is required for demand deposits,
certificates of deposit and repurchase agreements at 100% of all deposits not covered by Federal
depository insurance.
Cash and cash equivalents held at June 30, 2008 by the trustee, plus accrued interest are
restricted as to usage.
The District’s deposits at June 30, 2008 were collateralized with securities held by the pledging
financial institution’s trust department in the District’s name.
Investments, if any, are stated at fair value in accordance to GASB Statement #31. Interest
income from investments is recorded as earned under the modified accrual basis of accounting.
H. Capital Assets
Governmental Fund types do not display capital assets on the face of the fund financial
statements. The costs of purchasing, or constructing, capital assets are shown as capital outlay
expenditures in the Governmental Statement of Revenues, Expenditures and Changes in Fund
Balance, unless the capital assets have already been transferred to the City. The capital assets
of the District, once completed and acceptable to the City, are transferred to the City. All
subsequent costs of operating and maintaining those assets will be the responsibility of the City.
Since the capital assets acquired or constructed by the District are turned over to the City once
they are operational, the District generally does not own capital assets. Capital assets still under
construction at fiscal year-end, are shown as work-in-progress on the District’s government-wide
financial statements.

18

VISTANCIA COMMUNITY FACILITIES DISTRICT
PEORIA, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2008
I.

Restricted Assets

Certain proceeds of the District’s bonds, as well as certain resources set aside for their
repayments, are classified as restricted on the balance sheet because they are maintained in
separate bank accounts and their use is limited by applicable debt covenants.
J. Long-tem Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are
reported as liabilities in the applicable governmental activities. Bond premiums and discounts are
deferred and amortized over the life of the bonds using the effective interest method. Bonds
payable are reported net of the applicable bond premium or discount. Bond issuance costs are
reported as deferred charges and amortized over the life of the bonds.
Governmental fund types do not display long-term obligations on the face of the financial
statements. Bond premiums and discounts, as well as bond issuance costs, are recognized in
the period in which the bonds are issued. 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.
The long-term debt of the District is serviced by the District’s Debt Service Fund.
K. Risk Management
The District is exposed to various risks of loss related to torts; theft of, damage to and destruction
of assets; errors and omissions; and natural disasters. The District’s insurance coverage is
provided by the City under the City’s umbrella insurance policies. The City maintains a SelfInsurance Fund (accounted for in the Internal Service Funds) to account for and finance its
uninsured risks of loss. As with any risk retention program, the City is contingently liable with
respect to claims beyond those actuarially projected.
Governmental Accounting Standards Board Statement #10 requires that claims liabilities be
reported when it is probable that a loss has occurred and the amount of the loss can be
reasonably estimated. As of June 30, 2008, no claims liability is reported in the District’s financial
statements, or by the City on behalf of the District. The District, through the City, is self-insured
for property and public liability up to $500,000. Excess coverage insurance policies purchased
through commercial insurance carriers cover individual claims in excess of this amount, up to a
maximum of $40 million per occurrence. Additionally, through a development agreement
between the District and the developer, the developer is responsible for $250,000, per incident, of
any insurance deductibles that might be paid by the City on behalf of the District. During the
fiscal year ended June 30, 2008, there was no significant reduction in excess insurance
coverage. Additionally, settlements for each of the last three fiscal years have not exceeded the
City’s, and therefore the District’s, insurance coverage.
L. Cash Equivalents
The District considers short-term investments, including restricted investments, in mutual fund
money market and U.S. Treasury bills and notes with maturities of less than three months at
acquisition date to be cash equivalents.

19

VISTANCIA COMMUNITY FACILITIES DISTRICT
PEORIA, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2008
M. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the balance sheet and the reported amounts of revenue and
expenditures during the reported period. Actual results could differ from those estimates.
2. BUDGET BASIS OF ACCOUNTING
The District does not have a general fund or any special revenue funds. However, the District does adopt
an annual operating budget for both of its funds. The District prepares the annual budget on a modified
cash basis, which differs from GAAP, as discussed in Note 1. Budgetary control over expenditures is
exercised at the fund level. The budgetary comparison schedule for the general fund is presented as part
of the basic financial statements. The budgetary schedule for the debt service fund is presented as
supplemental information after these notes to the financial statements. The budgetary schedules include
a reconciliation of the adjustments required to convert the budgetary revenues and expenditures or
changes in net assets on a budgetary basis, to revenues and expenditures or changes in net assets on a
GAAP basis.
3. CASH AND INVESTMENTS
Arizona Revised Statutes authorize the District to invest public monies in the State or County Treasurers’
investment pools, interest bearing savings accounts, certificates of deposit and repurchase agreements in
eligible depositories; bonds or other obligations of the United States government that are guaranteed as
to principal and interest by the United States government; or bonds of the State of Arizona counties,
cities, towns, school districts or special districts as specified by statute. As required by statute, collateral
is required for demands deposits, certificates of deposit and repurchase agreements at 102 percent of all
deposits not covered by Federal depository insurance.
The District participates in the pooled cash and investments of the City for daily transactions. The City
then periodically requested reimbursement from the District’s restricted funds held by the trustee. At June
30, 2008, the District had a deposit of $12,157 in the City’s pooled cash and investments and a negative
pooled cash of $134,949 which was netted from restricted cash and cash equivalents.
Cash and investments at June 30, 2008 consist of the following:
Participation in City’s pooled cash & investments
Amount due from restricted investments
Cash and investments held by trustee-restricted
Total cash & investments

$

12,157
(134,949)
27,172,341
$ 27,049,549

At June 30, 2008, of the cash and investments held by trustee-restricted, 100% or $27,172,341, were
invested in money market accounts, held by the trustee, with a maturity of less than one year, and are
reported as restricted cash and cash equivalents.
4. PROPERTY TAXES
Arizona law provides for a two tiered tax system: (1) a primary system for taxes levied to pay for current
operation and maintenance expenses, and (2) a secondary system for taxes levied to pay principal and
interest on bonded indebtedness as well as for the determination of maximum permissible bonded
indebtedness.
20

VISTANCIA COMMUNITY FACILITIES DISTRICT
PEORIA, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2008
Specific provisions are made under each system for determining full cash values of property, the basis of
assessment, and the maximum annual tax levies on certain types of property and by certain taxing
authorities. Under the primary system, the full cash value of locally assessed real property (consisting of
residential, commercial, industrial, agricultural and unimproved property) may increase by more than 10%
annually only under certain circumstances. Under the secondary system, there is no limitation on annual
increases in full cash value of any property. Primary levies on residential property are limited to one
percent of the primary full cash value of such property. Additionally, primary taxes on all types of property
are limited to a maximum increase of two percent over the prior year's levy, adjusted for new construction
and annexations. Secondary property taxes levied to pay principal and interest on bonded indebtedness
are not limited. The District’s assessed valuation for 2008 is $91,288,926.
The Arizona tax year has been defined as a calendar year, notwithstanding the fact that tax procedures
begin prior to January 1 of the tax year and continue through May of the succeeding calendar year. The
definition of the tax year is a function of the fact that the tax lien for the year attaches to the real property
as of January 1 of the year in question.
The District Board adopts the annual tax levy each year on or before the third Monday in August. The
basis of this levy is the full cash value as determined by the Maricopa County Assessor. For locally
assessed property, the value is determined as of January 1 of the preceding year, known as the valuation
year. For utilities and other centrally valued properties, the full cash value is determined as of January 1
of the tax year. The District has an enforceable claim on the property when the property tax is levied.
Levies are due and payable in two installments, on October 1 and March 1, and become delinquent on
November 1 and May 1, respectively. Delinquent amounts bear interest at the rate of 16 percent. A lien
is placed on the property at the time the tax bill is sold. Maricopa County, at no charge to the taxing
entities, bills and collects all property taxes. Public auctions for sale of delinquent real estate taxes are
held in February following the May 1 date upon which the second half taxes become delinquent. The
purchaser is given a Certificate of Purchase issued by the County Treasurer. Five years from the date of
sale, the holder of a Certificate of Purchase that has not been redeemed may demand a County
Treasurer's Deed from the County Treasurer.
Property taxes are recognized as revenue in the government-wide financial statements when an
enforceable legal claim has arisen. Therefore, the District recognizes revenue and a receivable, less any
allowance for doubtful accounts deemed appropriate, for the entire tax levy in the year it is levied. For the
governmental fund statements, property tax revenues not collected within 60 days of year end are
deferred.
Property taxes receivable consist of uncollected taxes as determined from the records of the County
Treasurer’s Office and at June 30, 2008 were $99,963 in the Debt Service Fund. The deferred property
taxes at June 30, 2008 were $64,814 in the Debt Service Fund.
5. TRANSFERS
Net transfers out between the District and the City of $7,259,161 are included in the government-wide
and fund financial statements of the District at June 30, 2008. These transfers are the result of capital
assets bought or constructed by the District which, upon completion, are transferred to the City for
operation and maintenance (see Note 8). Additionally, in the Fund Financial Statements at June 30, 2008
there were transfers of $192,955 between the District’s General Fund and the Debt Service Fund. There
were no significant transfers during fiscal year 2008 that were either non-routine in nature or inconsistent
with the activities of the fund making the transfer.

21

VISTANCIA COMMUNITY FACILITIES DISTRICT
PEORIA, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2008
6. DEFICITS IN FUND EQUITY/EXCESS OF EXPENDITURES OVER APPROPRIATIONS
As described in Note 1, the District was formed to finance and acquire or construct capital infrastructure
assets that are subsequently dedicated to the City for operation. The District does not own or operate
capital assets. Therefore the Statement of Net Assets reflects a large liability without an offsetting asset.
For the year ended June 30, 2008, expenditures, including capital outlay and transfers, did not exceed
budget for either of the funds of the District.
7. FUND BALANCE/NET ASSETS RESERVATIONS AND DESIGNATIONS
Only restrictions imposed by external sources are shown as Restricted Net Assets on the governmentwide financial statements. Additionally, reserves for encumbrances are shown on the governmental fund
financial statements. Reservations or designations of fund balances imposed by the reporting district,
whether by administrative policy or legislative action, are shown in aggregate on the governmental fund
financial statements. The District does, however, reserve or designate portions of net assets in other
funds to demonstrate the district’s intended use of those net assets. Reservations are created by
legislative action of the District Board while designations are created by administrative policy. There were
no reservations or designations of fund balance/net assets included in unreserved fund balance/net
assets at June 30, 2008.
8. CAPITAL ASSETS
The following table discloses the capital asset activity of the District, for the government-wide financial
statements, for the fiscal year ended June 30, 2008.
Balances
June 30, 2007
Non-depreciable assets:
Work in Progress–Water system
Work in Progress-Wastewater system
Total capital assets

$
$

-

Additions/
Transfers in

Disposals/
Transfers out

Balances
June 30, 2008

1,895,929
7,216,503
9,112,432

82,702
7,176,459
7,259,161

1,813,227
40,044
1,853,271

As discussed in Note 1, governmental fund types do not display capital assets on the face of the financial
statements. The District does, however, purchase or construct capital assets with the intent of conveying
the assets to the City upon completion and acceptance by the City.
9. LONG-TERM DEBT
Community Facilities Districts (CFD’s), are special purpose districts created specifically to acquire or
construct public infrastructure within specified areas of the City, are authorized under state law to issue
general obligation (GO) or revenue bonds to be repaid by property (ad valorem) taxes levied on property
within the district (for GO debt), or by specified revenues generated within the districts (revenue bonds).
CFD’s are created by petition to the City Council by property owners within the area to be covered by the
district, and debt may be issued only after approval of the voters within the district.
On October 15, 2002 the City Council formed the Vistancia Community Facilities District (the District)
pursuant to Title 48, Chapter 4, Article 6, Arizona Revised Statutes. The District was subsequently
authorized, by the voters of the district on November 12, 2002, to issue up to $100,000,000 in general
obligation bonds to construct public infrastructure within the District. The district issued $21,250,000 in
fiscal year 2003, $23,550,000 in fiscal year 2005, and $22,760,000 in fiscal year 2007 of general
obligation bonds against this authorization. These bonds will be repaid by the property owners within the
District. The bonds are obligations of the District only. The City has no obligation for the District debt
other than the administration of the collection of the property taxes and payment of the debt service on
behalf of the District.
22

VISTANCIA COMMUNITY FACILITIES DISTRICT
PEORIA, ARIZONA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2008

Legal Debt Limit – General Obligation bonded indebtedness for the District cannot exceed 60 percent of
the market value of the property in the District after the infrastructure is completed plus the value of the
infrastructure improvements made.
As discussed in Note 1, governmental type funds do not display long-term obligations on the face of the
financial statements. The following tables disclose the long-term debt obligations of the District as of
June 30, 2008 for the government-wide financial statements.
Delivery
Date

Description

Maturity
Dates

Purpose

Net
Interest
Rate

Ave.
Life
(Yrs)

Original
Principal
Balance

Principal
Balance
Outstanding

Community Facility District Bonds (collateralized by ad valorem property taxes levied on the property benefiting from the improvements)
12/17/02
Series 2002
Vistancia Community Facilities District infrastructure
7/15/05-22
6.69
12.7
21,250,000 19,000,000
04/27/05
Series 2005
Vistancia Community Facilities District infrastructure
7/15/07-24
5.47
13.2
23,550,000 22,850,000
12/28/06
Series 2006
Vistancia Community Facilities District Infrastructure
7/15/09-26
4.26
20
22,760,000 22,760,000
Total bonds payable
64,610,000
Less current portion
1,550,000
Long-term portion of bonds payable
$63,060,000

The following is a summary of the long-term debt activity of the District for the fiscal year ended June 30,
2008.

General obligation bonds

$

Beginning
Balance
66,085,000

Additions
-

Reductions
1,475,000

Ending
Balance
64,610,000

Amounts
Due Within
One Year
1,550,000

The following table discloses the debt service requirements as of June 30, 2008, segregating principal
and interest, for the next five years and in five-year increments thereafter.
Fiscal year
2009
2010
2011
2012
2013
2014-2018
2019-2023
2024-2027
Totals

Principal
1,550,000
2,170,000
2,275,000
2,385,000
2,505,000
14,650,000
19,305,000
19,770,000
$ 64,610,000

Interest
3,416,955
3,329,455
3,222,393
3,108,336
2,985,974
12,717,405
8,168,062
1,945,343
38,893,923

23

Total
4,966,955
5,499,455
5,497,393
5,493,336
5,490,974
27,367,405
27,473,062
21,715,343
103,503,923

SUPPLEMENTAL INFORMATION

VISTANCIA COMMUNITY FACTILITIES DISTRICT
BUDGETARY COMPARISON SCHEDULE
DEBT SERVICE FUND
FOR THE YEAR ENDED JUNE 30, 2008

Budgeted Amounts
Original
Final
Budgetary fund balance, July 1, 2007

$

RESOURCES (INFLOWS):
Property Taxes
Investment earnings
Miscellaneous
Total inflows
Amounts available for appropriation
CHARGES TO APPROPRIATIONS (OUTFLOWS):
Debt service:
Principal payments
Interest and other charges
Total charges to appropriations
Budgetary fund balance, June 30, 2008

$

7,827,930

$

7,827,930

$

7,827,930

1,905,580
248,300
2,853,371
5,007,251
12,835,181

1,905,580
245,200
2,853,371
5,004,151
12,832,081

1,759,501
533,755
2,413,644
4,706,900
12,534,830

1,475,000
3,532,251
5,007,251

1,475,000
3,532,251
5,007,251

1,475,000
3,532,249
5,007,249

7,827,930

$

7,824,830

$

7,527,581

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures
Sources/inflows of resources:
Actual amounts (budgetary basis) "available for appropriations" from the budgetary
comparison schedule
$
12,534,830
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary resource but is not a
a current year revenue for financial reporting purposes
(7,827,930)
The City budgets certain revenues on the cash basis, rather than on the modified
accrual basis
14,240
Total revenues as reported on the combining statement of revenue, expenditures, and changes
in fund balances - non-major governmental funds
$
4,721,140
Uses/outflows or resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary
comparison schedule
$
5,007,249
Differences - budget to GAAP:
Total expenditures as reported in the combining statement of revenues, expenditures, and
changes in fund balances - non-major governmental funds
$
5,007,249

24

Variance with
Final Budget
Over
(Under)

Actual
Amounts
(budgetary basis)
$

-

(146,079)
288,555
(439,727)
(297,251)
(297,251)

(2)
(2)
$

(297,249)