HomeMy WebLinkAboutTown of Prescott Valley - Public Financial ReportPopular Annual
Financial Report
Fiscal Year Ended
June 30, 2021
Town of Prescott Valley
Arizona
Fiscal Year Ended June 30, 2021 1
This report is prepared by the Finance Department.The information in this report is drawn from the Town of Prescott Valley
Annual Comprehensive Financial Report (ACFR)for the year ended June 30,2021.More detailed information can be obtained
by reviewing our ACFR online at https://www.pvaz.net/ArchiveCenter/ViewFile/Item/883,or questions relating to this report
can be directed to Katie Pehl, Finance Director, by email at kpehl@pvaz.net.
Investments and Capital Assets…........................................................
Debt Management…............................................................................
Capital Projects….................................................................................
Financial Planning….............................................................................
Financial Awards…..............................................................................
Contact Information….........................................................................
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Page 16
Message from the Town Manager…..................................................
Prescott Valley Facts….......................................................................
Accomplishments…............................................................................
Where the Money Comes From….......................................................
Where the Money Goes…...................................................................
Governmental Funds Trends…...........................................................
Business-Type Funds…........................................................................
Statement of Net Position….................................................................
Financials….........................................................................................
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Town of Prescott Valley, AZ
TOWN OF PRESCOTT VALLEY | 7501 E SKOOG BLVD. PRESCOTT VALLEY, AZ 86314 | (928) 759-3000
Table of Contents
Dear Citizens:
Gilbert Davidson
Fiscal Year Ended June 30, 2021 2
The Town of Prescott Valley has a council/manager form of
government.The seven-member Town Council includes a voting
Mayor and Vice Mayor.The Council serves as the legislative policy-
making body for the Town in an effort to meet the needs of the
community and plan for future needs in an effective and
representative manner.The Mayor and Council serve four-year
elected terms of office.
Town of Prescott Valley, AZ
Regular meetings of the Council are usually held on the second and
fourth Thursday of each month at 5:30pm in the Prescott Valley
Library Auditorium/Council Chambers at 7401 East Skoog
Boulevard,1st floor.Work studies are typically on the first
Thursday of the month.All meetings are aired live on local Channel
56 and can be watched online at www.pvaz.net.Meetings are
archived and made available for online viewing.
The mission of the Town of Prescott Valley is to
inspire and sustain a dynamic, innovative and
prosperous community through the combined
talents of our citizenry.
The Town Council has set the goals to preserve and sustain the
elements of our environment,improve infrastructure,support and
encourage activities and events,expand and diversify water
resources,maintain a safe community,maximize citizen
involvement in achieving our vision,maximize and diversify revenue
sources,ensure growth with the General Plan 2025,increase and
diversify our economic base, and improve regional cooperation.
The PAFR is intended to be a more simplified explanation of the
Town’s Annual Comprehensive Financial Report (ACFR)which is
published on an annual basis.The ACFR provides a detailed
account of the Town’s financial statements,schedules,notes,and
statistics prepared in accordance with Generally Accepted
Accounting Principles (GAAP).A copy of the ACFR is available for
citizens on the Town’s website at www.pvaz.net.
This clarification of the governmental financial reporting process
in an easy-to-understand language allows our residents to see
where their tax dollars go and also offer feedback to our Mayor
and Town Council on the quality policy decisions they have
directed staff to carry out.
For the tenth year,we are pleased to present you with the
Town’s Popular Annual Financial Report (PAFR)for the year
ended June 30,2021.The previous PAFR reports have all won the
Award for Outstanding Achievement in Popular Annual Financial
Reporting since they were first reported in 2012.Our Finance
Department staff has done a tremendous job compiling another
excellent report.
This abbreviated financial report will show the reader that
Prescott Valley has done very well during the challenging
economic times of the past decade.It is important to note that
the Town of Prescott Valley is financially sound in large part
because of comprehensive long-term planning and aggressive
management decisions.We have now achieved nine consecutive
years of record sales tax collections.
We look forward to providing you with a transparent and
excellent local government for another year.Thank you for being
part of this outstanding community.
Town Manager
Our Town Council
Message from the Town Manager
Back Left to Right:Council Member Roger Kinsinger,Council Member
April Hepperle, Mayor Kell Palguta, and Vice Mayor Lori Hunt.
Front Left to Right:Council Member Brenda Dickinson,Council
Member Don Packard, and Council Member Kendall Schumacher.
Governing Body
Land Area
40.9
Square Miles
January 51/28 July
February 54/30 August
March 60/35 September
April 67/40 October
May 77/49 November
June 87/57 December
0 to 9 Years 11%
10 to 19 Years 12%Major Employers
20 to 29 Years 11%
30 to 39 Years 11%Yavapai Regional Medical Center
40 to 49 Years 10%Humboldt Unified School District
50 to 59 Years 12%Ace Hardware Inc.
60 to 69 Years 16%MI Windows and Doors
70 to 79 Years 12%Wal-Mart
80 and Over 5%Town of Prescott Valley
Fry’s Food Store
Mountain Valley Regional Rehab Hospital
Safeway
Home Depot
Fiscal Year Ended June 30, 2021 3 Town of Prescott Valley, AZ
90/63
87/62
82/55
46,785
Population
Prescott Valley Facts
Elevation
5,100
Feet
Annual
17
Inches
In the middle of the state of Arizona lies the Town of Prescott
Valley—a growing,thriving community nestled between the
Mingus and Bradshaw Mountain ranges.Prescott Valley attracts
people who seek the natural beauty of Arizona,a peaceful
lifestyle,moderate climate with four seasons,and a unique blend
of modern and recreational amenities.Prescott Valley is located
in Yavapai County,approximately 85 miles north of Phoenix.The
close proximity to I-40 and I-17 means four hours of driving can
get you to Las Vegas in the north or Tucson in the south.
230
225
145
138
Population by Age
742
680
51/28
Employees
400
350
330
326
Average Temperature (High/Low)
71/44
60/34
Year Founded:
1966
Year Incorporated:
1978
Executive Management Community Services - Parks and Recreation
Community Services - Library
Town Clerk
Public Works
Community Development Police
Human Resources
Utilities
Information Technology Water Resource/Recharge
Fiscal Year Ended June 30, 2021 4 Town of Prescott Valley, AZ
Worked with private sector stakeholders to market the former Sam's
Club building
Completed crosswalk on Lakeshore and Lake Valley
Finance
Increased traffic enforcement through education with the addition of
two speed electronic mounted signs
Worked with numerous water organizations to manage and develop
regional water resources
Implemented a Young Adult Internship Program
Implemented 1,000 Books Before Kindergarten as an early literacy
program
Continued efforts to bring a YMCA to Prescott Valley
* Certificate of Achievement for Excellence in Financial Reporting
* Distinguished Budget Presentation
Received awards from the Government Finance Officers Association
(GFOA) for:
Developed injection well to increase capacity of the recharge facilities
Received an unmodified audit opinion for fiscal year ended June 30,
2019
Supported MATFORCE initiatives
Referred current liens and judgments to a third-party collection
agency to facilitate payment
Provided respectful workplace training for Town employees
Added one new water production well for redundancy and reliability
Added one new storage tank for additional water storage capacity
Conducted annual salary survey to benchmark Public Works and Parks
and Recreation positions
Created Town's first recruitment video to improve outreach and
advertising initiatives that showcase the Town's mission and core
values
Completed implementation of Accela Automation permitting software
Utilized Neighborhood Services programs with Code Enforcement to
assist low income citizens
Issued/resolved all permits within 24 hours
Effectively and successfully conducted jury trials
Successfully resolved multi-year litigation brought against Library
building architect and contractor
Transitioned all desktop computer systems to Windows 10
Upgraded all Library server operating systems
Installed public Library kiosk for patron information
Upgraded audit/video infrastructure for Library Meeting Room
Legal
Completed construction of the Viewpoint Drive Connector project,the
Viewpoint/Pronghorn Ranch Intersection Improvement project,the
Coyote Springs School Area Pedestrian Enhancement project,and the
Glassford Hill/Spouse Intersection Improvement project
Produced over one hundred virtual programs in form of online classes,
podcasts,and YouTube videos to connect with the community and
offer continuous learning skills
Conducted successful 2020 Primary and General Elections
Received Tree City USA and Tree City Growth awards
from the Arbor Day Foundation
* Outstanding Achievement in Popular Annual Financial Reporting
Provided Laserfiche Electronic Records Management system training
for Town employees
Strengthened the Adopt-A-Park program with volunteer leadership for
improved operations
Provided several new virtual children’s programs
Designed and promoted 2020 Census materials
Accomplishments
Received grant funding from the Library Services and Technology Act
(LSTA)for Wi-Fi Hotspots,Citizen Science,Library of Things,Bilingual
Story Time Kits, and Stay Connected Kits
Completed design and construction of spray pad at
Bob Edwards park
Completed grant applications and administered two CDBG projects:
Boys and Girls Club Remodel and Coyote Springs Sidewalk/Street
Improvements
Created various media content to highlight Town's operations and to
keep public informed and up to date on Town news and events:
recruitment video,National Police week video,Party on the Porch
Toolkit, New Town News, Mondays with the Mayor
Enhanced partnerships with other agencies to combat trafficking in
humans, sex, and narcotics
Rehabilitated a wastewater clarifier
Implemented operational strategies to efficiently manage the
reclaimed water recharge facilities
Met various compliance requirements specified in state statutes
Completed implementation of new records management software and
records retention project
Introduced new community outreach programs:Virtual Block Watch
and Get to Know Your Neighbor
FY 2020-21 Governmental Funds Revenues
Total $76,919,986
FY 2019-20 Governmental Funds Revenues
Total $63,038,191
Fiscal Year Ended June 30, 2021 Town of Prescott Valley, AZ
Special Assessments -revenues received for debt payments on
street and sewer improvement districts.
The two major sources of governmental funds revenue for the
Town are Transaction Privilege Tax (TPT),or local sales tax,and
intergovernmental revenues.These represent 72%of the
Town’s total revenue receipts and account for the overall 13%
increase in governmental funds revenues.The local sales tax
revenue increased by 17%over the previous year which was
attributed to an increase in retail,construction,and restaurant
sales activity.With 55%of the total sales tax revenues derived
from the retail trade sector,continued retail growth is essential.
New businesses such as Super Circle K store,Discount Tire,
Alliance Hardware and Lumber,W&Z Asian Bistro and Sushi Bar,
and Ocean Blue Car Wash all opened during the year.Best
Western Hotel,A&W Root Beer,Church's Chicken,Rosa's
Pizzeria,Grumpy Sicilian,Maverik Adventure First Stop,Amazon
distribution center,and Ocean Blue Car Wash are expected to
open during FY 2021-22.
Fines and Forfeitures -revenues received from Court and Library
fines.
5
Where the Money Comes From
Taxes -Local -the Town charges a local sales tax of 2.83%on
most goods purchased in the Town,and collects franchise tax
from utility companies for utilization of the Town right-of-way.
Intergovernmental -revenues received from other governments
(i.e.state income tax,state sales tax,auto in-lieu,and Highway
Users Revenues).
Licenses and Permits -including building permit fees,business
and liquor license fees, etc.
Charges for Services -revenues received from programs and
services provided by the Town (i.e.engineering,planning and
zoning, police and parks and recreation fees).
FY 2016-17 to FY 2020-21
Interest and Rental Earnings -revenues received from
investment interest and rental fees.
Contributions -revenues received from developer contributions
of capital, federal and state grants.
Other -revenues that do not fit under another classification (i.e.
refunds and reimbursements,litigation proceeds,donations,
other financing sources).
Governmental funds include the Town’s general fund,special
revenue funds,capital improvement fund,and debt service
funds.Business-type funds,presented on page 8,are not
included in governmental funds and are therefore excluded
from the data and graphs on this page.
Major Governmental Fund Revenue Sources:
Governmental Funds Revenues
$55
$63
$77
$48
$53
$0
$10
$20
$30
$40
$50
$60
$70
$80
16-17 17-18 18-19 19-20 20-21
Mi
l
l
i
o
n
s
Fiscal Year
$26,984,458
43%$22,351,536
36%
$1,309,417
2%
$2,575,604
4%$689,814
1%$143,892
0%
$1,047,965
2%
$7,689,997
12%
$245,508
0%
$31,663,618
41%$24,048,411
31%
$1,904,874
3%$1,891,800
2%
$632,901
1%$152,452
0%
$792,301
1%$9,144,922
12%
$6,688,707
9%
FY 2020-21 Governmental Funds Expenditures
Total $58,627,146
FY 2019-20 Governmental Funds Expenditures
Total $64,320,926
Fiscal Year Ended June 30, 2021 Town of Prescott Valley, AZ6
Culture and Recreation include expenditures related to services
that enhance the culture of the community such as maintenance
of the parks, recreational activities, Library, and Channel 56.
Public Works expenditures cover the costs of planning and
developing of the community through Neighborhood Services
and Engineering.
Highway and Streets reflect the expenditures for maintenance of
the Town’s roads and streets.
Debt Service is the portion of expenditures the Town pays for
principal and interest on bonds and other long-term debt.
Capital Outlay expenditures are for long-term assets exceeding
$5,000 in value.These assets support the operation of the Town
and include items such as machinery and equipment,drainage
projects, building and street improvements.
Governmental Funds Expenditure Areas:
General Government includes expenditures for the
administrative offices including Council,Town Clerk,Human
Resources,Executive Management,Finance,Legal,Magistrate
Court, Facilities and Fleet Maintenance.
Public Safety reflects expenditures associated with providing
police and code enforcement.
The Town currently maintains 16 governmental funds that
provide basic services including public safety,parks and
recreation,roads,planning and zoning,library,and general
administrative services.Additional funds pay for capital projects
and debt service.The governmental funds shown below are
used to report the basic services of the Town and are funded
primarily by taxes and intergovernmental revenues as explained
on the prior page.Business-type funds,which are presented on
page 8,are not included in the governmental funds and
therefore excluded from the data and graphs on this page.
Public Safety,the largest expenditure area in the governmental
funds,increased by 4%compared to the prior year mainly due
to a larger excess contribution to PSPRS unfunded liability.
General Government,the second largest expenditure area,
exhibited an increase of 11%primarily due to higher
development reimbursement and property insurance costs.
Overall,total expenditures in the governmental funds decreased
by 9% in FY 2020-21 compared to the prior year.
Where the Money Goes
Governmental Funds Revenues
Governmental Funds Expenditures
$11,035,001
19%
$15,004,280
26%
$7,437,715
13%
$1,648,001
3%
$4,799,005
8%
$10,218,672
17%
$8,484,472
14%
$66 $61 $64
$59
$47
$0
$10
$20
$30
$40
$50
$60
$70
16-17 17-18 18-19 19-20 20-21
Mi
l
l
i
o
n
s
Fiscal Year
$9,957,820
16%
$14,458,128
22%
$7,698,572
12%$1,500,326
2%
$4,844,182
8%
$8,376,366
13%
$17,485,532
27%
16-17 17-18 18-19 19-20
Taxes - Local 22,413,353$ 23,408,002$ 24,841,591$ 26,984,458$
Intergovernmental 18,647,709 19,908,566 19,987,653 22,351,536
Licenses and Permits 1,085,016 1,363,270 1,221,989 1,309,417
Charges for Services 389,963 1,993,197 2,287,894 2,575,604
Fines and Forfeitures 680,019 735,834 605,100 689,814
Special Assessments 313,801 169,669 149,687 143,892
Interest and Rental Earnings 607,711 742,611 1,080,146 1,047,965
Contributions 3,806,897 4,774,231 5,068,512 7,689,997
Other 186,730 210,678 167,673 245,508
Total 48,131,199$ 53,306,058$ 55,410,245$ 63,038,191$
16-17 17-18 18-19 19-20
General Government 11,790,593$ 10,048,161$ 10,006,443$ 9,957,820$
Public Safety 11,641,160 12,386,037 14,222,830 14,458,128
Culture and Recreation 4,120,458 7,388,165 7,090,829 7,698,572
Public Works 1,424,724 1,466,922 1,464,435 1,500,326
Highways and Streets 4,294,630 4,615,967 4,867,085 4,844,182
Debt Service 6,529,659 6,889,615 8,738,827 8,376,366
Capital Outlay 7,630,075 22,861,975 14,374,098 17,485,532
Total 47,431,299$ 65,656,842$ 60,764,547$ 64,320,926$
Fiscal Year Ended June 30, 2021 7 Town of Prescott Valley, AZ
The following chart shows the trend of revenues to expenditures in the governmental funds during the last five fiscal years,excluding
enterprise fund amounts and other financing sources.The category breakdown of the revenues and expenditures can be found below the
chart with a detailed overview of the components on the previous two pages.Total expenditures exceeded total revenues in FY 2017-18,
2018-19,and 2019-20.This was due to the completion of several large projects that utilized funds that had been accumulated over prior
years.
Governmental Funds Expenditures and Revenues
Governmental Funds Revenues
Governmental Funds Expenditures
20-21
Governmental Funds Trends
7,437,715
1,648,001
4,799,005
10,218,672
8,484,472
$ 58,627,147
20-21
15,004,280
$ 11,035,001
1,891,800
632,901
152,452
792,301
9,144,922
6,688,707
1,904,874
24,048,411
Governmental Funds Revenues
$ 76,919,986
$ 31,663,618
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
16-17 17-18 18-19 19-20 20-21
Mi
l
l
i
o
n
s
Revenues Expenditures
Fiscal Year
Fiscal Year Water Sewer
2011-12 18,078 15,333
2012-13 18,401 15,592
2013-14 18,855 16,040
2014-15 19,237 16,375
2015-16 19,725 16,832
2016-17 20,339 17,408
2017-18 20,882 17,961
2018-19 21,360 18,436
2019-20 21,804 18,893
2020-21 22,367 19,381
Fiscal Year Ended June 30, 2021 8 Town of Prescott Valley, AZ
Number of Utility Customers by Year
Business-Type Funds
PV Water System
The Town provides water services to over 22,300 residents and businesses within the
area.Additionally,there are several other local water providers who purchase water
from the Town and resell it to their customers.
Wastewater System
The Town provides wastewater services to over 19,300 residents and businesses
within the area.
Program Revenues and Expenses
Business-Type Activities
Business-type funds,or enterprise funds,are used to report any activity for which a fee is charged to users for goods or services,similar to
private business.Over time,revenues generated from these funds should cover the costs of their operating expenses,including debt
service. The Town maintains two business-type funds as of June 30, 2021, the PV Water System and Wastewater System.
Gallons Billed
500
750
1,000
1,250
1,500
1,750
2,000
2,250
Mi
l
l
i
o
n
s
Fiscal Year
Water Sewer
$0
$3
$6
$9
$12
$15
Wastewater System PV Water System
Mi
l
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i
o
n
s
Revenues Expenses
Statement of Net Position
June 30, 2021 and 2020
20-21 19-20 20-21 19-20 20-21 19-20
Assets
Current and other assets 75,730,550$ 56,913,387$ 19,243,275$ 18,716,293$ 94,973,825$ 75,629,680$
Capital assets 187,120,936 186,573,178 112,591,677 107,945,337 299,712,613 294,518,515
Total assets 262,851,486 243,486,565 131,834,952 126,661,630 394,686,438 370,148,195
Deferred Outflows of Resources 7,286,603 7,228,895 - 79,054 7,286,603 7,307,949
Liabilities
Long-term liabilities 65,096,921 72,412,288 3,449,949 5,554,534 68,546,870 77,966,822
Other liabilities 13,853,793 12,939,820 3,399,609 3,264,350 17,253,402 16,204,170
Total liabilities 78,950,714 85,352,108 6,849,558 8,818,884 85,800,272 94,170,992
Deferred Inflows of Resources 140,602 170,635 - - 140,602 170,635
Net Position
Net investment in capital assets 131,166,088 123,737,351 108,269,565 101,055,654 239,435,653 224,793,005
Restricted 10,541,003 23,713,423 - - 10,541,003 23,713,423
Unrestricted 49,339,682 17,741,943 16,715,829 16,866,146 66,055,511 34,608,089
Total net position 191,046,773$ 165,192,717$ 124,985,394$ 117,921,800$ 316,032,167$ 283,114,517$
Assets represent what the Town owns.
Liabilities represent what the Town owes.
future period.
Fiscal Year Ended June 30, 2021 9 Town of Prescott Valley, AZ
Restricted net position ($10,541,003 or 3%)represents resources subject to restrictions on how they may be used.The Town sets aside
resources for debt service, capital projects, street improvements, grantor and contributor purposes.
Unrestricted net position ($66,055,511 or 21%)represents the accessible resources available to provide residents services if no additional
revenues or resources are obtainable.
At the end of the current fiscal year, the Town is able to report positive balances in all three categories of net position.
Governmental Activities Business-Type Activities Total
Current and other assets represent cash,investments,and accounts receivable (money due to the
Town).
Capital assets represent land,building,equipment,improvements,and infrastructure that are long-
term in nature.
Deferred Outflows/Inflows of Resources represent expenses/revenues that have been incurred/received but are not recognized until a
The statement of net position is a condensed overview of the Town’s assets and liabilities as of June 30, 2021 and June 30, 2020.
Statement of Net Position
Net Position represents the difference between the Town’s total assets and deferred outflows of resources and liabilities and deferred
inflows of resources. Over time, increases or decreases in net position may serve as a useful indicator of a government’s financial health.
Net investment in capital assets ($239,435,653 or 76%)represents the Town’s investment in capital assets less any related outstanding
debt used to acquire those assets.The Town uses these capital assets to provide services to citizens.These assets are not available for
future spending.
Long-term liabilities represent debt that the Town must pay back.
Other liabilities represent the Town’s payment obligations due within one year and include
principal and interest on long-term debt due within the next year,accounts payable (money due
from the Town to pay what it owes), and accrued items, such as payroll and interest.
Statement of Activities
Fiscal Year Ended June 30, 2021 10 Town of Prescott Valley, AZ
* The Certificate of Achievement is the highest form of recognition for excellence in state and local government reporting and is valid for one year. The ACFR must
satisfy both Generally Accepted Accounting Principles and applicable legal requirements.
For the Fiscal Year Ended June 30, 2021
The financial information is drawn from the Town of Prescott Valley Annual Comprehensive Financial Report (ACFR)for the fiscal year
ended June 30,2021.The ACFR will be presented to the Government Finance Officers Association of the United States and Canada
(GFOA)to seek the award for Achievement for Excellence in Financial Reporting*.The Town has received this award for the past
twenty-four years.
Financials
The following graphs show the revenues and expenses for governmental and business-type activities as it relates to the program
category in which the funds were collected or expended.Governmental activities include the General (the Town’s major operating
fund), Debt Service, Capital Projects, and Special Revenue Funds. Business-type activities include the Water and Wastewater Funds.
Governmental and Business-Type Activities - Expenses
For Fiscal Year Ended June 30, 2021
Governmental and Business-Type Activities - Revenues
$5.1 $4.4 $8.2
$62.3
$16.2
$0.0
$6.7
$0.2
$0
$10
$20
$30
$40
$50
$60
$70
Charges for
Services
Operating Grants Capital Grants General Revenues
Mi
l
l
i
o
n
s
Governmental Business-Type
$12.1
$16.2
$9.7
$3.6
$9.6
$3.0
$7.4 $8.6
$0
$4
$8
$12
$16
$20
Mi
l
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i
o
n
s
Governmental Business-Type
Investments
Safety
Liquidity
Return on Investment (yield)
Fair Value Less Than 1 1 - 5 6 - 10
US Treasuries 622,303$ 622,303$ -$ -$
US Agencies 1,006,291 1,006,291 - -
Certificates of Deposit 2,309,461 1,269,514 1,039,947 -
Local Government Investment Pool 74,635,415 74,635,415 - -
78,573,470$ 77,533,523$ 1,039,947$ -$
Capital Assets
Total
Buildings 45,121,236$
Construction in Progress 7,329,360
Improvements Other than Buildings 23,629,683
Machinery and Equipment 4,480,995
Infrastructure 205,730,522
Land 13,420,817
Total 299,712,613$
Fiscal Year Ended June 30, 2021 11 Town of Prescott Valley, AZ
Investments and Capital Assets
As of June 30,2021,the Town’s total capital assets (net of depreciation)were $299,712,613.This total amount is broken down into the
following categories:
The Town’s investment types and maturity schedules are listed below.Investments are not allowed to have a maturity longer than five
years. The rate earned for fiscal year ended June 30, 2021 was 0.54%.
The Town’s investment policies and practices are based upon Arizona state law and prudent money management.The primary objectives
of the investment policy and the Town’s investments are:
Investment Maturities (in Years)
Investment Type
Buildings
15%Construction in
Progress
2%Improvements
Other than
Buildings
8%
Machinery
and
Equipment
2%
Infrastructure
69%
Land
4%
Moody's Standard and Poor's Fitch Investors
Investors Services Rating Group Service, Inc.
Entertainment Center CFD Revenue Bonds (Series 2017)------AA+
Revenue Refunding Bonds (Series 2020)---AA ---
Fiscal Year Ended June 30, 2021 12 Town of Prescott Valley, AZ
Debt service for Business-Type Funds:
Long-term Loans Payable -loan agreements with the Water
Infrastructure Financing Authority (WIFA)to finance the
expansion of the Town’s wastewater facility.
Community Facilities Districts (CFD)-debt issued by special
taxing entities which the Town Council created under Arizona
law to acquire and improve public infrastructure.Debt from
the CFDs is not considered debt of the Town and is repaid by
the owners of the properties located within the districts.
Other Long-Term Obligations -includes premiums,
compensated absences,and various commitments per
development agreements.
Net Pension Liability -debt associated with the outstanding
obligation to the Public Safety Personnel Retirement System.
Outstanding Debt as of June 30, 2021
Debt Management
Debt service for Governmental Funds:
The objective of the Town’s debt management policy is to maintain the Town’s ability to incur both present and future debt at the most
beneficial interest rates in the amounts needed for financing the adopted Capital Improvement Plan without adversely affecting the Town’s
ability to finance essential Town services.
Revenue Bonds -debt associated with the refunding of debt
issued for the acquisition and financing of municipal projects
and facilities,the construction of the Library,Police building,
and purchase of the joint facility from Yavapai College.
The Town continues to maintain strong credit ratings on all of its debt issues.The chart below shows the latest ratings as determined by
Moody’s Investors Services, Standard and Poor’s Rating Group, and Fitch Investors Services, Inc.
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Fiscal Year Ended June 30, 2021 13 Town of Prescott Valley, AZ
Viewpoint Connector Improvements
Summit Tank II
The Viewpoint Connector is the fourth phase of a multi-year
funded project to provide the best conditions for future traffic
mobility and ultimately provide connectivity for Viewpoint Drive
from the Town Civic Center to State Route 89A.This phase
consisted of the expansion of the intersection of Manley Drive,
Roundup,and Long Mesa Drive.This $8.3 million project was
funded from the one-third cent sales tax.Construction was
completed in June 2021.
Capital Projects
Several capital projects were completed or were being worked on in fiscal year 2020-21.Descriptions of a few of the more prominent
improvements are below.
The Summit II Water Tank project is the construction of a 3-
million gallon storage tank which will provide water to the
Jasper Development and provide additional capacity for the
Town.The location of this new tank is directly behind (west)
of the existing Summit Tank,which is located on the east face
of Glassford Hill,and immediately adjacent to the newly
constructed Glassford Hill Summit Trail.This $4.4 million
project is funded by the Town's water capacity fees.
Construction was completed in June 2021.
This $7.5 million project was a funding partnership and
Intergovernmental Agreement (IGA)with Yavapai County and
Prescott Valley to improve and maintain a portion of Sunset
Lane located inside and outside of the Town limits between
Prescott East Highway and Pine View Drive.The IGA allowed for
construction of a three lane roadway,storm drainage,and
pedestrian improvements for better regional traffic circulation
and pedestrian safety.This project was completed in August
2020 and was funded through Utilities,Development Impact
Fees, and Flood Control.
Sunset Lane Improvements
Financial Forecasting - Governmental Funds
Fiscal Year Ended June 30, 2021 14 Town of Prescott Valley, AZ
The Town’s responsiveness to emerging economic challenges and its careful long-range planning have been key factors in Prescott
Valley’s fiscal health. The Town continues to update its five-year forecast as economic conditions change.
Multi-year budget planning encompasses long-range operating expenditure plans (including the operating impacts of capital projects),
which are linked to the community expectations and broad goals of the Town Council.The multi-year approach provides a better
opportunity for staff to change its financial paradigm from “what do we need this year”to “how do we accomplish our service objectives
over time”given our financial capacity.While the Town is required to adopt an annual budget to meet state statutory requirements,
Prescott Valley builds a financial plan for the next five years to anticipate future impacts and ensure achievement of Town objectives.
Financial Planning
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Actual Budget Forecast
Fiscal Year Ended June 30, 2021 15 Town of Prescott Valley, AZ
Ninth Award
for the Popular Annual Financial Report
received by the Town of Prescott Valley
The Town of Prescott Valley has also received numerous Comprehensive Annual Financial Reports awards over the years by the
Government Finance Officers Association (GFOA).The latest Comprehensive Annual Financial Reports award for the fiscal year ended
June 30, 2020 was the twenty-fourth consecutive award received.
In addition to the above awards,the Town of Prescott Valley also participates in the GFOA budget award program.The latest award
received for fiscal year 2020-2021 is the twentieth consecutive Annual Budget Award received.
Financial Awards
Finance Staff
Fiscal Year Ended June 30, 2021 16 Town of Prescott Valley, AZ
Contact Information
nwadsworth@pvaz.net
Ivan Legler
ilegler@pvaz.net
Acting Police Chief
Jeremy Martin
cvanharen@pvaz.net
Judge Keith Carson
kcarson@pvaz.net
Town Clerk
Fatima Fernandez
Casey Van Haren
Gilbert Davidson
gdavidson@pvaz.net
Public Works
Norm Davis
Community Services
ndavis@pvaz.net
Town Attorney
jmartin@pvaz.net
Finance Director
Katie Pehl
kpehl@pvaz.net
Finance Manager
Irina Ermakova
iermakova@pvaz.net
Contact Irina with questions about the Town audits
and accounting practices.
Other Town Staff
Town Manager Magistrate Court Information Technology
Contact Katie with general questions about the Town
finances, debt, and the budget.
Casey Danner
cdanner@pvaz.net
Deputy Town Manager
Ryan Judy
rjudy@pvaz.net
Development Services
Fernando Gonzalez
fgonzalez@pvaz.net
Neil Wadsworth
John Munderloh
jmunderloh@pvaz.net
Chief Human Resources Officer
Karen Smith
ksmith@pvaz.net
ffernandez@pvaz.net
Water Resource/Recharge
Utilities
https://prescottvalleyaz.opengov.com
OpenGov provides residents with a financial
transparency portal that is designed to bring
visibility,openness,and accountability to our
operations.
www.facebook.com/PrescottValley
www.twitter.com/PrescottVly
www.youtube.com/PrescottValley1
Interested in more financial information?
Connect with Prescott Valley!OpenGov Transparency Tool
The Town’s financial statements are designed to provide Prescott Valley citizens,taxpayers,customers,investors,and creditors
with a general overview of Town finances and to demonstrate the Town’s accountability of the resources it receives and
expends.The information in this report is drawn from the Town of Prescott Valley Annual Comprehensive Financial Report for
the fiscal year ended June 30,2021.This report’s financial data is consistent with Generally Accepted Accounting Principles
(GAAP).The Annual Comprehensive Financial Report and PAFR are available online at www.pvaz.net.Printed versions can be
viewed at the Civic Center and in the Prescott Valley Public Library.