TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

Comprehensive Annual Financial Report

Fiscal Year Ended June 30, 2019

2300 N. Tanque Verde Loop Rd. Bldg #1 ▪ Tucson, Arizona 85749

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

TUCSON, ARIZONA

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019

Issued by: Business Office

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

TABLE OF CONTENTS

INTRODUCTORY SECTION	Page

Letter of Transmittal	1

ASBO Certificate of Excellence	6

GFOA Certificate of Achievement	7

Organizational Structure	8

List of Principal Officials	9

FINANCIAL SECTION

INDEPENDENT AUDITOR’S REPORT	13

MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)	17

BASIC FINANCIAL STATEMENTS

Government-Wide Financial Statements:

Statement of Net Position	30

Statement of Activities	31

Fund Financial Statements:

Balance Sheet – Governmental Funds	34

Reconciliation of the Balance Sheet –
Governmental Funds to the Statement of Net Position	37

Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds	38

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds to the
Statement of Activities	40

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

TABLE OF CONTENTS

FINANCIAL SECTION	Page

BASIC FINANCIAL STATEMENTS

Statement of Assets and Liabilities – Fiduciary Funds	41

Notes to Financial Statements	42

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Revenues Expenditures and Changes in Fund Balances – Budget and Actual:

General Fund	66

Pension Schedules	67

OPEB Schedules	68

Notes to Required Supplementary Information	70

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

Governmental Funds:

Combining Balance Sheet – All Non-Major Governmental Funds –
By Fund Type	74

Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – All Non-Major Governmental Funds – By Fund Type	76

Special Revenue Funds:

Combining Balance Sheet	80

Combining Statement of Revenues, Expenditures and
Changes in Fund Balances	86

Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances – Budget and Actual	92

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

TABLE OF CONTENTS

FINANCIAL SECTION	Page

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

Debt Service Fund:

Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual	114

Capital Projects Funds:

Combining Balance Sheet	116

Combining Statement of Revenues, Expenditures and Changes in
Fund Balances	118

Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual	120

Agency Funds:

Combining Statement of Changes in Assets and Liabilities	128

STATISTICAL SECTION

Financial Trends:

Net Position by Component	131

Expenses, Program Revenues, and Net (Expense)/Revenue	132

General Revenues and Total Changes in Net Position	134

Fund Balances – Governmental Funds	136

Governmental Funds Revenues	138

Governmental Funds Expenditures and Debt Service Ratio	140

Other Financing Sources and Uses and Net Changes in Fund
Balances – Governmental Funds	142

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

TABLE OF CONTENTS

STATISTICAL SECTION	Page

Revenue Capacity:

Net Limited Assessed Value and Full Cash Value of Taxable Property by Class	143

Net Full Cash Assessed Value of Taxable Property by Class	144

Property Tax Assessment Ratios	145

Direct and Overlapping Property Tax Rates	146

Principal Property Taxpayers	147

Property Tax Levies and Collections	148

Debt Capacity:

Outstanding Debt by Type	149

Direct and Overlapping Governmental Activities Debt	150

Direct and Overlapping General Bonded Debt Ratios	150

Legal Debt Margin Information	151

Demographic and Economic Information:

County-Wide Demographic and Economic Statistics	152

Principal Employers	153

Operating Information:

Full-Time Equivalent District Employees by Type	154

Operating Statistics	156

Capital Assets Information	157

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INTRODUCTORY SECTION

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Tanque Verde Unified School District #13 2300N. Tanque Verde Loop Rd., Bldg. 1
Tucson, Arizona 85749

Phone: 520.749.5751▪ Fax: 520.749.5400 ▪ www.tanqueverdeschools.org

December 20, 2019

Citizens and Governing Board
Tanque Verde Unified School District No. 13 2300 N. Tanque Verde Loop Road, Bldg. #1 Tucson, Arizona 85749-8524

State law mandates that school districts required to undergo an annual single audit publish a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States by a certified public accounting firm licensed in the State of Arizona. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the Tanque Verde Unified School District No. 13 (District) for the fiscal year ended June 30, 2019.

This report consists of management’s representations concerning the finances of the District. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the District has established a comprehensive internal control framework that is designed both to protect the District’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the District’s financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, the District’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free of material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The District’s financial statements have been audited by Heinfeld, Meech & Co., P.C., a certified public accounting firm. The goal of the independent audit was to provide reasonable assurance that the financial statements of the District for the fiscal year ended June 30, 2019, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the District’s financial statements for the fiscal year ended June 30, 2019, are fairly presented in conformity with accounting principles generally accepted in the United States of America. The independent auditor’s report is presented as the first component of the financial section of this report.

District Administration: Dr. Scott Hagerman, Superintendent; Elaine Armienti, Business Manager Governing Board: Jeremy Schalk, President; Susan Fry, Clerk; Members: Jeffery Neff, Carlos Ruiz, Vieri Tenuta

Accounting principles generally accepted in the United States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The District’s MD&A can be found immediately following the report of the independent auditors.

PROFILE OF THE DISTRICT

The District is one of 18 public school districts located in Pima County, Arizona. It provides a program of public education from preschool through grade 12, with current enrollment of approximately 2,100 students. The average age of the District’s buildings is 20 years.

The District’s Governing Board is organized under Section 15-321 of the Arizona Revised Statutes (A.R.S.). Management of the District is independent of other state or local governments. The County Treasurer collects taxes for the District, but exercises no control over its expenditures/expenses.

The membership of the Governing Board consists of five members elected by the public. Under existing statutes, the Governing Board’s duties and powers include, but are not limited to, the acquisition, maintenance and disposition of school property; the development and adoption of a school program; and the establishment, organization and operation of schools. The Board also has broad financial responsibilities, including the approval of the annual budget, and the establishment of a system of accounting and budgetary controls.

The financial reporting entity consists of a primary government and its component units. A component unit is a legally separate entity that must be included in the reporting entity in conformity with generally accepted accounting principles. The District is a primary government because it is a special-purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Furthermore, there are no component units combined with the District for financial statement presentation purposes, and the District is not included in any other governmental reporting entity. Consequently, the District’s financial statements include only the funds of those organizational entities for which its elected governing board is financially accountable. The District’s major operations include education, student transportation, construction and maintenance of District facilities, and food services.

The District is located entirely in Pima County on the far east side of Tucson. The District is bounded on the north and east borders by the Coronado National Forest and by the Saguaro National Park as well as the Tucson Unified School District to the west and Vail School District to the south. The net limited assessed valuation increased 3.6% during the 2018-19 school year. The net limited assessed valuation places Tanque Verde in the middle of the other school districts in Pima County. However, the total primary and secondary school tax rate is among the lowest of the districts in the Tucson area. There are a few commercial operations within the District, including several plant nurseries, a golf country club, an internationally known resort, utility substations and a few retail stores. The District is mainly a quiet low density “bedroom community” with residents being in a retired status, or working in professional occupations in the Tucson area for IBM, the University of Arizona, or Raytheon.

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Tanque Verde Unified School District student test scores continue to far exceed both the state and national norms and are among the highest in the Tucson area as well as the State of Arizona. The District administrators and board members continue to be active in the Pima County Collaborative, a group composed of school board members and administrators from each district in Pima County. The major goal of the collaborative is to help formulate legislation that affects education in the State of Arizona and to make positive contacts with our legislators to that end.

Lastly, the District continues its membership in the Pima County Joint Technological Education District (JTED). Through JTED, the District offers its students enhanced career and technical education opportunities in such fields as computer technology, drafting and design, graphic communications, health care, and agriculture-science.

Enrollment in this program exceeds 150 students, around 28% or our High School population, and continued program offerings will enable our students to receive college credit by successfully completing the required course work. The JTED academic offerings at TVHS have been bolstered with an expansion of the veterinary science program and the expansion of an engineering/precision manufacturing program.

The annual expenditure budget serves as the foundation for the District’s financial planning and control. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual expenditure budget approved by the District’s Governing Board.

The expenditure budget is prepared by fund for all Governmental Funds, and includes function and object code detail for the General Fund and some Special Revenue and Capital Projects Funds. The legal level of budgetary control (that is, the level at which expenditures cannot exceed the appropriated amount) is established at the individual fund level for all funds. Funds that are not required to legally adopt a budget may have overexpenditures of budgeted funds. The budget for these funds is simply an estimate and does not prevent the District from exceeding the budget as long as the necessary revenue is earned. The District is not required to prepare an annual budget of revenue; therefore, a deficit budgeted fund balance may be presented. However, this does not affect the District’s ability to expend monies.

FACTORS AFFECTING FINANCIAL CONDITION

The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the District operates.

Local Economy. The economy of the District is centered on Pima County, which has a population of over 1.0 million. The City of Tucson encompasses approximately 226 square miles. Principal economic activities within the District include manufacturing, services, government, education, and tourism. Some of Tucson’s largest employers include the following: Davis Monthan Air Force Base, the University of Arizona, and the Raytheon Missile Systems. Tucson is home to one of the world’s largest gem, mineral, and fossil shows, and the International Mariachi Festival.

The District consists of two elementary schools, one junior high school, and one high school. Support facilities include District administrative offices, maintenance facilities, and a transportation facility. All campuses and facilities are maintained in a serviceable condition that meets local code and safety standards.

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Long-term Financial Planning. In the November 2018 election, District voters approved the continuance of a 15% Maintenance and Operations override. This override is used primarily to fund teacher salaries to support arts, PE, and Advanced Placement programs. A $15.0 million bond question that was also on the 2018 election was not approved. The bond would have addressed capital needs at the four district schools.

The District continues to save an estimated $150,000 annually in electricity costs and will be for the next 17 years (the savings started in 2012-13). This was the initiative in conjunction with the Tucson Electric Power Company’s Energy Rebate Program; a solar company completed a $5.0 million lease purchase solar project in 2012 on the District’s campuses. The project was 100% paid for by the solar company.

With the prior sale of general obligation bonds in the principal amount not to exceed $14,000,000 in 2009, and the Arizona School Facilities Board award in fiscal year 2009-10, the District was able to make substantial additions and upgrades to its facilities. We built the Emily Gray Junior High School, added building upgrades at the three other school sites, and also added approximately 21,000 square feet of new classroom space at Tanque Verde High School.

Student enrollment has been slowly increasing with most of the increase occurring at the high school. The current enrollment is around 2,100. The District is currently over 80% capacity, with the elementary and junior high schools at over 90% capacity. This high level of enrollment ensures efficiency of staffing and the ability to provide a wide range of programs to support students. This can be seen in the District’s much higher than average percent of spending in the classroom.

District administrators actively participate in the Southern Arizona School Business Officials, Southern Arizona School Personnel Administrators, Southern Arizona Professional Development, Southern Arizona Special Education Administrators, and Council for Exceptional Students, organizations will allow District administrators to meet with their respective professional groups to share training, interests, and concerns.

AWARDS AND ACKNOWLEDGMENT

Awards.	The Association of School Business Officials International (ASBO) awarded a Certificate of Excellence in Financial Reporting to the District for its comprehensive annual financial report for the fiscal year ended June 30, 2018. This was the twenty-fifth consecutive year that the District has received this prestigious award. In addition, the Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the District for its comprehensive annual financial report for the fiscal year ended June 30, 2018. In order to be awarded these certificates, the District published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both accounting principles generally accepted in the United States of America and applicable legal requirements.

These certificates are valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the programs’ requirements and we are submitting it to ASBO and GFOA to determine its eligibility for the fiscal year ended June 30, 2019 certificates.

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Acknowledgments. The preparation of the comprehensive annual financial report on a timely basis was made possible by the dedicated service of the entire staff of the business office. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report.

In closing, without the leadership and support of the Governing Board of the District, preparation of this report would not have been possible.

Respectfully submitted,

Dr. Scott Hagerman Superintendent

Elaine Armienti Business Manager

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

LIST OF PRINCIPAL OFFICIALS

GOVERNING BOARD

Jeremy Schalk, President

Susan Fry, Clerk

Jeffrey Neff, Member

Carlos Ruiz, Member

Vieri Tenuta, Member

ADMINISTRATIVE STAFF

Dr. Scott Hagerman Superintendent

Elaine Armienti Business Manager

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FINANCIAL SECTION

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INDEPENDENT AUDITOR’S REPORT

Governing Board
Tanque Verde Unified School District No. 13

Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Tanque Verde Unified School District No. 13 (District), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Tanque Verde Unified School District No. 13, as of June 30, 2019, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, budgetary comparison information, net pension liability information, and other postemployment benefit plan information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The Introductory Section, Combining and Individual Fund Financial Statements and Schedules, and Statistical Section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The Combining and Individual Fund Financial Statements and Schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Fund Financial Statements and Schedules information is fairly stated in all material respects in relation to the basic financial statements as a whole.

The Introductory Section and Statistical Section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 20, 2019, on our consideration of Tanque Verde Unified School District No. 13’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to solely describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Tanque Verde Unified School District No. 13’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Tanque Verde Unified School District No. 13’s internal control over financial reporting and compliance.

Heinfeld, Meech & Co., P.C. Tucson, Arizona
December 20, 2019

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MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) (Required Supplementary Information)

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2019

As management of the Tanque Verde Unified School District No. 13 (District), we offer readers of the District’s financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended June 30, 2019. The management’s discussion and analysis is presented as required supplementary information to supplement the basic financial statements. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report.

FINANCIAL HIGHLIGHTS

	The District’s total net position of governmental activities increased $2.3 million which represents a 96 percent increase from the prior fiscal year primarily due to an increase in Arizona School Facilities Board funding to repair the roof at Agua Caliente Elementary School.

	General revenues accounted for $16.2 million in revenue, or 79 percent of all current fiscal year revenues. Program specific revenue in the form of charges for services and grants and contributions accounted for $4.3 million or 21 percent of total current fiscal year revenues.

	 The District had approximately $18.1 million in expenses related to governmental activities, an increase of two percent from the prior fiscal year.

	Among major funds, the General Fund had $13.6 million current fiscal year revenues, which primarily consisted of state aid and property taxes, and $13.9 million in expenditures. The General Fund’s fund balance decrease from $2.4 million at the prior fiscal year end to $2.1 million at the end of the current fiscal year was primarily due to an increase in teacher compensation.

	 The Building Renewal Grant Fund had $1.3 million in total expenditures. The Building Renewal Grant Fund’s fund balance decrease from a deficit fund balance of $103,450 at the prior fiscal year end to a deficit fund balance of $1.4 million was primarily due to the new roof project at Agua Caliente Elementary School and outstanding reimbursements due from the Arizona School Facilities Board.

OVERVIEW OF FINANCIAL STATEMENTS

This discussion and analysis are intended to serve as an introduction to the District’s basic financial statements. The District’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-wide financial statements.	The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business. The accrual basis of accounting is used for the government-wide financial statements.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2019

OVERVIEW OF FINANCIAL STATEMENTS

The statement of net position presents information on all of the District’s assets, liabilities, and deferred inflows/outflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

The statement of activities presents information showing how the District’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences).

The government-wide financial statements outline functions of the District that are principally supported by property taxes and intergovernmental revenues. The governmental activities of the District include instruction, support services, operation and maintenance of plant services, student transportation services, operation of non-instructional services, and interest on long-term debt.

Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the District can be divided into two categories: governmental funds and fiduciary funds.

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements use the modified accrual basis of accounting and focus on near-term inflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the District’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2019

OVERVIEW OF FINANCIAL STATEMENTS

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 the General and Building Renewal Grant Funds, both of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements and schedules.

Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the District. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the District’s own programs. Due to their custodial nature, the fiduciary funds do not have a measurement focus.

Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found immediately following the basic financial statements.

Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the District’s budget process and pension plan. The District adopts an annual expenditure budget for all governmental funds. A schedule of revenues, expenditures and changes in fund balances – budget and actual has been provided for the General Fund as required supplementary information. Schedules for the pension and other postemployment benefit plans have been provided as required supplementary information.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Net position may serve over time as a useful indicator of a government’s financial position. In the case of the District, assets and deferred outflows exceeded liabilities and deferred inflows by $4.7 million at the current fiscal year end.

The largest portion of the District’s net position reflects its investment in capital assets (e.g., land and improvements, buildings and improvements, and vehicles, furniture and equipment), less any related outstanding debt used to acquire those assets. The District uses these capital assets to provide services to its students; consequently, these assets are not available for future spending. Although the District’s investment in its capital assets is reported net of related outstanding debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. In addition, a portion of the District’s net position represents resources that are subject to external restrictions on how they may be used.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2019

GOVERNMENT-WIDE FINANCIAL ANALYSIS

The following table presents a summary of the District’s net position for the fiscal years ended June 30, 2019 and June 30, 2018.

Current and other assets Capital assets, net
Total assets

Deferred outflows

Current and other liabilities Long-term liabilities
Total liabilities

Deferred inflows

Net position:
Net investment in capital assets Restricted
Unrestricted
Total net position

As of June 30, 2019
$       4,900,244 24,460,064
	29,360,308 

2,323,506

935,362 24,405,578
	25,340,940 

1,678,362

14,622,454 1,716,069
(11,674,011)
	$	4,664,512 

As of June 30, 2018
$        4,690,003 23,665,341
	28,355,344 

2,120,262

765,167 26,375,110
	27,140,277 

950,821

13,123,724 1,405,612
(12,144,828)
 $	2,384,508 

The District’s financial position is the product of several financial transactions including the net result of activities, the acquisition and payment of debt, the acquisition and disposal of capital assets, and the depreciation of capital assets.

The following are significant current year transactions that had an impact on the Statement of Net Position.

	The addition of $791,539 in accumulated depreciation through current year depreciation expense.

	 The addition of $1.6 million in capital assets through other school improvements and purchases of vehicles, furniture and equipment.

	The principal retirement of $720,000 in bonds payable. 	The decrease of $1.2 million in pension liabilities.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2019

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Changes in net position. The District’s total revenues for the current fiscal year were $20.4 million. The total cost of all programs and services was $18.1 million. The following table presents a summary of the changes in net position for the fiscal years ended June 30, 2019 and June 30, 2018.

Revenues: Program revenues:

Fiscal Year Ended
June 30, 2019

Fiscal Year Ended
June 30, 2018

Charges for services

Operating grants and contributions Capital grants and contributions
General revenues: Property taxes Investment income Unrestricted county aid Unrestricted state aid Total revenues
Expenses: Instruction
Support services – students and staff Support services – administration Operation and maintenance of plant Student transportation services Operation of non-instructional Interest on long-term debt
Total expenses

Changes in net position Net position, beginning
Net position, ending

$	 1,309,256 1,563,682 1,377,681

8,155,129 45,840 440,970 7,525,965 20,418,523

9,969,533 1,661,032 2,354,152 1,943,774 804,490 798,546 606,992 18,138,519 2,280,004 2,384,508
$	4,664,512

$       1,156,815 1,644,495 102,690

8,445,775 30,270 441,925 6,915,326 18,737,296

9,897,639 1,937,400 2,086,324 1,754,369 656,731 742,609 637,043 17,712,115 1,025,181 1,359,327
$	2,384,508

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4%
TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2019

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Expenses - Fiscal Year 2019

Student
Operation of non-transportation instructional services
services 5%

Operation and maintenance of plant services 11%

Interest on long-term debt 3%

Instruction 55%

Support services -administration 13%

Support services -students and staff 9%

The following are significant current year transactions that have had an impact on the change in net position.

	The $1.3 million increase in capital grants and contributions was due to an increase in Arizona School Facilities Board funding to repair the roof at Agua Caliente Elementary School.

	 The $610,639 increase in unrestricted state aid was due to an increase in base support level.

	The $426,404 increase in expenses is primarily due to salaries and related benefit increases for instructional, support services, and operation and maintenance of plant services personnel.

The following table presents the cost of the District’s major functional activities. The table also shows each function’s net cost (total cost less charges for services generated by the activities and intergovernmental aid provided for specific programs). The net cost shows the financial burden that was placed on the State and District’s taxpayers by each of these functions.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2019

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Year Ended June 30, 2019	Year Ended June 30, 2018

Total

Expenses

Net (Expense)/

Revenue

Total

Expenses

Net (Expense)/

Revenue

Instruction	$ Support services - students and staff Support services - administration Operation and maintenance of
plant services

Student transportation services Operation of non-instructional
services

9,969,533 1,661,032 2,354,152

1,943,774 804,490

798,546

$	 (8,357,849) (1,565,269) (2,261,862)

(522,639) (804,490)

48,935

$	 9,897,639 1,937,400 2,086,324

1,754,369 656,731

742,609

$	 (8,100,762) (1,851,680) (2,077,949)

(1,724,584) (644,102)

36,205

Interest on long-term debt

Total

606,992

$	18,138,519

(424,726) $ (13,887,900)

637,043

$	17,712,115

(445,243) $ (14,808,115)

	The cost of all governmental activities this year was $18.1 million.

	Federal and State governments and charges for services subsidized certain programs with grants and contributions and other local revenues of $4.3 million.

	Net cost of governmental activities of $13.9 million was financed by general revenues, which are made up of primarily property taxes of $8.2 million and state and county aid of $8.0 million. Investment earnings accounted for $45,840 of funding.

FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS

As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental funds. The focus of the District’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of the District’s net resources available for spending at the end of the fiscal year.

The financial performance of the District as a whole is reflected in its governmental funds. As the District completed the year, its governmental funds reported a combined fund balance of $2.3 million, a decrease of $1.2 million primarily due to increased costs related to the Agua Caliente Elementary School roof that have not yet been reimbursed by the Arizona School Facilities Board.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2019

FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS

The General Fund comprises 93 percent of the total fund balance. At year end, approximately $2.1 million, or 99 percent of the General Fund’s fund balance is unassigned.

The General Fund is the principal operating fund of the District. The fund balance decreased $306,564 in the General Fund to $2.1 million as of fiscal year end. General Fund revenues increased $542,811 as a result of an increase in state equalization funding. General Fund expenditures increased $599,975 as a result of an increase in salaries and related benefits.

The Building Renewal Grant Fund had $1.3 million in expenditures. The deficit fund balance of $1.4 million was primarily due to reimbursements not received until after the period of availability.

BUDGETARY HIGHLIGHTS

Over the course of the year, the District revised the General Fund annual expenditure budget for changes in estimated student enrollment. The difference between the original budget and the final amended budget was an $185,150 decrease, or one percent.

Significant variances for the final amended budget and actual revenues resulted from the District not being required by the State of Arizona to prepare a revenue budget. A schedule showing the original and final budget amounts compared to the District’s actual financial activity for the General Fund is provided in this report as required supplementary information. The significant variances are summarized as follows:

	The favorable variance of $291,817 in instruction was a result of budgeting for potential expenditures related to the classroom.

	 The unfavorable variance of $209,422 in support services – administration was a result of unanticipated need for fiscal consultant services.

	The unfavorable variance of $118,513 in support services – students and staff was a result of reclassification of contracted services budgeted for in instruction.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2019

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets. At year end, the District had invested $39.4 million in capital assets, including school buildings, athletic facilities, buses and other vehicles, computers, and other equipment. This amount represents a net increase prior to depreciation of $1.3 million. Total depreciation expense for the current fiscal year was $791,539.

The following schedule presents a summary of capital asset balances for the fiscal years ended June 30, 2019 and June 30, 2018.

Capital assets - non-depreciable Capital assets - depreciable, net

As of June 30, 2019
$             679,272 23,780,792

As of June 30, 2018
$             737,447 22,927,894

Total	$	24,460,064	$	23,665,341

Additional information on the District’s capital assets can be found in Note 7.

Debt Administration. At year end, the District had $10.5 million in long-term debt outstanding, $923,872 due within one year. Long-term debt decreased by $764,915.

The District’s general obligation bonds are subject to two limits; the Constitutional debt limit (total debt limit) on all general obligation bonds (up to 30 percent of the total net full cash assessed valuation) and the statutory debt limit on Class B bonds (the greater of 20 percent of the net full cash assessed valuation or $1,500 per student). The current total debt limitation for the District is $59.1 million and the Class B debt limit is $39.4 million, which are more than the District’s total outstanding general obligation and Class B debt, respectively.

Additional information on the District’s long-term debt can be found in Notes 8 through 10.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES

Many factors were considered by the District’s administration during the process of developing the fiscal year 2019-20 budget. Among them:

	Fiscal year 2018-19 budget balance carry forward. 	District student population.
	Employee salary and benefit rates.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2019

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES

Also considered in the development of the budget is the local economy and inflation of the surrounding area.

Budgeted expenditures in the General Fund increased five percent to $14.4 million in fiscal year 2019-20. The state’s base support level is expected to increase is the primary reason for the increase. State aid and property taxes are expected to be the primary funding sources. No new programs were added to the 2019-20 budget.

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the resources it receives. If you have questions about this report or need additional information, contact the Business Office; Tanque Verde Unified School District No. 13; 2300 North Tanque Verde Loop, Building #1; Tucson, Arizona 85749.

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BASIC FINANCIAL STATEMENTS

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Page 28

GOVERNMENT-WIDE FINANCIAL STATEMENTS

Page 29

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 STATEMENT OF NET POSITION JUNE 30, 2019

ASSETS Current assets:
Cash and investments Property taxes receivable Accounts receivable
Due from governmental entities Prepaid items
Total current assets

Noncurrent assets:
Net other postemployment benefit assets Capital assets not being depreciated
Capital assets, net of accumulated depreciation Total noncurrent assets
Total assets

DEFERRED OUTFLOWS OF RESOURCES Pension and other postemployment benefit plan items

LIABILITIES Current liabilities:
Accounts payable Construction contracts payable
Accrued payroll and employee benefits Compensated absences payable Obligations under capital leases
Bonds payable
Total current liabilities

Noncurrent liabilities:
Non-current portion of long-term obligations Total noncurrent liabilities
Total liabilities

DEFERRED INFLOWS OF RESOURCES Pension and other postemployment benefit plan items

Governmental Activities

$            859,715 212,486
9,520 3,719,910 65,326 4,866,957

33,287 679,272 23,780,792 24,493,351 29,360,308

2,323,506

116,300 97,198 721,864 107,222 183,872 740,000 1,966,456

23,374,484 23,374,484 25,340,940

1,678,362

NET POSITION
Net investment in capital assets Restricted
Unrestricted
Total net position

14,622,454 1,716,069 (11,674,011)
$	4,664,512

The notes to the basic financial statements are an integral part of this statement.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2019

Net (Expense) Revenue and Changes in Net
Program Revenues	Position

Functions/Programs Governmental activities:
Instruction	$ Support services - students and staff
Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Interest on long-term debt
Total governmental activities	$

Operating	Capital Grants
Charges for	Grants and	and	Governmental Expenses	Services            Contributions       Contributions           Activities

9,969,533 $             556,208 $          1,033,371 $               22,105 $       (8,357,849) 1,661,032                  14,100                  81,663                                       (1,565,269) 2,354,152                                               92,290                                       (2,261,862) 1,943,774                  65,559                                          1,355,576              (522,639) 804,490                                                                                                    (804,490) 798,546                673,389                174,092                                               48,935 606,992                                             182,266                                          (424,726) 18,138,519 $          1,309,256 $          1,563,682 $          1,377,681         (13,887,900)

General revenues: Taxes:
Property taxes, levied for general purposes Property taxes, levied for debt service Property taxes, levied for capital outlay
Investment income Unrestricted county aid Unrestricted state aid
Total general revenues

Changes in net position

Net position, beginning of year

6,669,995 1,084,397 400,737 45,840 440,970 7,525,965 16,167,904

2,280,004

2,384,508

Net position, end of year	$	4,664,512

The notes to the basic financial statements are an integral part of this statement.

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FUND FINANCIAL STATEMENTS

Page 33

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2019

ASSETS
Cash and investments Property taxes receivable Accounts receivable
Due from governmental entities Due from other funds
Prepaid items Total assets

General

$              15,213 186,290
9,520 1,779,498 963,522 27,129
$	2,981,172

Building Renewal Grant

$

1,355,576

$	1,355,576

Non-Major Governmental Funds

$            844,502 26,196

584,836 608,410 38,197
$	2,102,141

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable	$ Construction contracts payable
Due to other funds
Accrued payroll and employee benefits Total liabilities

73,695

656,866 730,561

$		$ 97,198
1,286,977

1,384,175

42,605

284,955 64,998 392,558

Deferred inflows of resources: Unavailable revenues - property taxes
Unavailable revenues - intergovernmental Total deferred inflows of resources

Fund balances (deficits): Nonspendable Restricted
Unassigned
Total fund balances

145,266

145,266

27,129

2,078,216 2,105,345

1,355,576 1,355,576

(1,384,175) (1,384,175)

17,245 161,532 178,777

38,197 1,648,867 (156,258) 1,530,806

Total liabilities, deferred inflows of resources
and fund balances	$	2,981,172	$	1,355,576	$	2,102,141

The notes to the basic financial statements are an integral part of this statement.

Page 34

Total Governmental Funds

$            859,715 212,486
9,520 3,719,910 1,571,932 65,326
$	6,438,889

$            116,300 97,198 1,571,932 721,864 2,507,294

162,511 1,517,108 1,679,619

65,326 1,648,867 537,783 2,251,976

$	6,438,889

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION JUNE 30, 2019

Total governmental fund balances	$	2,251,976

Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.

Governmental capital assets	$ 39,424,647

Less accumulated depreciation	(14,964,583)	24,460,064

Some receivables are not available to pay for current period expenditures and, therefore, are reported as unavailable revenues in the funds.

Property taxes Intergovernmental

162,511
1,517,108	1,679,619

Deferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds.

Deferred outflows of resources related to pensions/OPEB Deferred inflows of resources related to pensions/OPEB

2,323,506
(1,678,362)	645,144

The Net OPEB asset is not a current financial resource and,

therefore, is not reported in the funds.	33,287

Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds.

Compensated absences payable Obligations under capital leases Net OPEB liability
Net pension liability Bonds payable

(536,110) (1,296,754) (49,878) (13,332,836)
(9,190,000)	(24,405,578)

Net position of governmental activities	$	4,664,512

The notes to the basic financial statements are an integral part of this statement.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2019

Revenues: Other local Property taxes
State aid and grants
Federal aid, grants and reimbursements Total revenues

General

$	 696,633 6,687,626 6,177,256

13,561,515

Building Renewal Grant

$

Non-Major Governmental Funds

$         1,904,423 1,493,144 1,385,824 790,114 5,573,505

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -Principal retirement
Interest and fiscal charges Total expenditures

Excess (deficiency) of revenues over expenditures

7,946,386 1,232,449 2,225,043 1,655,790 576,601 83,161 127,689

42,140 5,689 13,894,948

(333,433)

1,280,725

1,280,725

(1,280,725)

1,792,206 501,353 139,138 8,108 88,511 706,052 643,903

859,771 601,303 5,340,345

233,160

Other financing sources (uses): Transfers in
Transfers out	(260) Capital lease agreements
Total other financing sources (uses)	(260)

260

136,996 137,256

Changes in fund balances

Fund balances (deficits), beginning of year

(333,693)

2,411,909

(1,280,725)

(103,450)

370,416

1,170,998

Increase (decrease) in reserve for prepaid items	27,129	(10,608)

Fund balances (deficits), end of year	$	2,105,345	$	(1,384,175)	$	1,530,806

The notes to the basic financial statements are an integral part of this statement.

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Total Governmental Funds

$         2,601,056 8,180,770 7,563,080 790,114 19,135,020

9,738,592 1,733,802 2,364,181 1,663,898 665,112 789,213 2,052,317

901,911 606,992 20,516,018

(1,380,998)

260 (260) 136,996 136,996

(1,244,002)

3,479,457

16,521

$	2,251,976

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2019

Changes in fund balances - total governmental funds	$     (1,244,002)

Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report the portion of capital outlay for capitalized assets as expenditures. However, in the Statement of Activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense.

Expenditures for capitalized assets Less current year depreciation

$	1,593,498
(791,539)	801,959

Capital lease agreements provide current financial resources to governmental funds,

but the issuance increases long term liabilities in the Statement of Net Position.	(136,996)

Some revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.

Property taxes Intergovernmental

(25,641)
1,309,144	1,283,503

Repayments of long-term debt principal are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position.

Capital lease principal retirement Bond principal retirement

181,911
720,000	901,911

Governmental funds report pension/OPEB contributions as expenditures. However, they are reported as deferred outflows of resources in the Statement of Net Position. The change in the net pension/OPEB liability, adjusted for deferred items, is reported as pension/OPEB expense in the Statement of Activities.

Current year pension/OPEB contributions Pension/OPEB expense

1,155,666
(481,352)	674,314

Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Prepaid items
Loss on disposal of assets Compensated absences

16,521 (7,236)
(9,970)	(685)

Changes in net position in governmental activities	$	2,280,004

The notes to the basic financial statements are an integral part of this statement.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 STATEMENT OF ASSETS AND LIABILITIES FIDUCIARY FUNDS JUNE 30, 2019

ASSETS
Cash and investments Total assets

LIABILITIES
Due to student groups Total liabilities

Agency

$              76,981 $              76,981

$              76,981 $              76,981

The notes to the basic financial statements are an integral part of this statement.

Page 41

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of Tanque Verde Unified School District No. 13 (District) have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

The more significant of the District’s accounting policies are described below.

A. Reporting Entity

The Governing Board is organized under Section 15-321 of the Arizona Revised Statutes (A.R.S.). Management of the District is independent of other state or local governments. The County Treasurer collects taxes for the District, but exercises no control over its expenditures/expenses.

The membership of the Governing Board consists of five members elected by the public. Under existing statutes, the Governing Board’s duties and powers include, but are not limited to, the acquisition, maintenance and disposition of school property; the development and adoption of a school program; and the establishment, organization and operation of schools.

The Board also has broad financial responsibilities, including the approval of the annual budget, and the establishment of a system of accounting and budgetary controls.

The financial reporting entity consists of a primary government and its component units. A component unit is a legally separate entity that must be included in the reporting entity in conformity with generally accepted accounting principles. The District is a primary government because it is a special-purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Furthermore, there are no component units combined with the District for financial statement presentation purposes, and the District is not included in any other governmental reporting entity. Consequently, the District’s financial statements include only the funds of those organizational entities for which its elected governing board is financially accountable. The District’s major operations include education, student transportation, construction and maintenance of District facilities, and food services.

B. Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net position and the statement of activities) present financial information about the District as a whole. The reported information includes all of the nonfiduciary activities of the District. For the most part, the effect of internal activity has been removed from these statements. These statements are to distinguish between the governmental and business-type activities of the District. Governmental activities normally are supported by taxes and intergovernmental revenues, and are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The District does not have any business-type activities.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes, unrestricted state and county aid, and other items not included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements.	Major individual governmental funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

Government-Wide Financial Statements – The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. As a general rule, the effect of internal activity has been eliminated from the government-wide financial statements; however, the effects of interfund services provided and used between functions are reported as expenses and program revenues at amounts approximating their external exchange value.

Fund Financial Statements – Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due.

Property taxes, federal, state, and county aid, tuition, and investment income associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Food services and miscellaneous revenues are not susceptible to accrual because generally they are not measurable until received in cash. Grants and similar awards are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. Unearned revenues arise when resources are received by the District before it has legal claim to them, as when grant monies are received prior to meeting all eligibility requirements imposed by the provider.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Delinquent property taxes and other receivables that will not be collected within the available period have been reported as unavailable revenues on the governmental fund financial statements.

The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is presented in a separate column. Non-major funds are aggregated and presented in a single column. Fiduciary funds are reported by fund type.

The District reports the following major governmental funds:

General Fund – The General Fund is the District’s primary operating fund. It accounts for all resources used to finance District maintenance and operation except those required to be accounted for in other funds. The General Fund includes the District’s Maintenance and Operation Fund as well as certain activities budgeted in separate funds in accordance with A.R.S. These funds are maintained as separate funds for purposes but do not meet the criteria for separate reporting in the financial statements.

Building Renewal Grant – to account for building renewal grant monies requested from the School Facilities Board that are used for infrastructure or for major upgrades, repairs, or renovations to areas, systems, or buildings that will maintain or extend their useful life.

Additionally, the District reports the following fund type:

Fiduciary Funds – The Fiduciary Fund is an Agency Fund which account for resources held by the District on behalf of others. This fund type includes the Student Activities Fund, which accounts for monies raised by students to finance student clubs and organizations held by the District as an agent. In addition, funds that account for employee withholdings before the monies are remitted to the appropriate entities are included in the Agency Funds.

The agency funds are custodial in nature and do not have a measurement focus and are reported on the accrual basis of accounting. The agency funds are reported by fund type.

D. Cash and Investments

A.R.S. require the District to deposit all cash with the County Treasurer, except as discussed below. Cash with the County Treasurer is pooled for investment purposes, except for cash of the Debt Service and Bond Building Funds which may be invested separately. Interest earned from investments purchased with pooled monies is allocated to each of the District’s funds based on their average balances. All investments are stated at fair value.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Statute authorizes the District to separately invest monies of the Bond Building and Debt Service Funds in the State Treasurer’s investment pools; obligations issued and guaranteed by the United States or any of its agencies or instrumentalities; specified state and local government bonds and notes; and interest bearing savings accounts or certificates of deposit.

Statute authorizes the District to deposit monies of the Auxiliary Operations and Student Activities Funds in bank accounts. Monies in these funds may also be invested. In addition, statute authorizes the District to maintain various bank accounts such as clearing accounts to temporarily deposit receipts before they are transmitted to the County Treasurer; revolving accounts to pay minor disbursements; and withholdings accounts for taxes and employee insurance programs. Some of these bank accounts may be interest bearing.

Statute does not include any requirements for credit risk, concentration of credit risk, interest rate risk, or foreign currency risk. Arizona statute requires a pooled collateral program for public deposits and a Statewide Collateral Pool Administrator (Administrator) in the State Treasurer’s Office. The purpose of the pooled collateral program is to ensure that governmental entities’ public deposits placed in participating depositories are secured with collateral of 102 percent of the public deposits, less any applicable deposit insurance. An eligible depository may not retain or accept any public deposit unless it has deposited the required collateral with a qualified escrow agent or the Administrator. The Administrator manages the pooled collateral program, including reporting on each depository’s compliance with the program.

E. Investment Income

Investment income is composed of interest, dividends, and net changes in the fair value of applicable investments. Investment income is included in other local revenue in the fund financial statements.

F. Receivables and Payables

Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Interfund balances between governmental funds are eliminated on the Statement of Net Position. All receivables, including property taxes receivable, are shown net of an allowance for uncollectibles.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

G. Property Tax Calendar

The County Treasurer is responsible for collecting property taxes for all governmental entities within the county. The county levies real and personal property taxes on or before the third Monday in August, that become due and payable in two equal installments. The first installment is due on the first day of October and becomes delinquent after the first business day of November. The second installment is due on the first day of March of the next year and becomes delinquent after the first business day of May.

Pursuant to A.R.S., a lien against assessed real and personal property attaches on the first day of January preceding assessment and levy; however according to case law, an enforceable legal claim to the asset does not arise.

H. Prepaid Items

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. Prepaid items are recorded as expenses when consumed in the government-wide financial statements and as expenditures when purchased in the fund financial statements.

I. Capital Assets

Capital assets, which include land and improvements; buildings and improvements; vehicles, furniture, and equipment; and construction in progress, are reported in the government-wide financial statements.

Capital assets are defined by the District as assets with an initial, individual cost in excess of $5,000, and an estimated useful life of more than one year. Capital assets are recorded at historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of the asset are not capitalized.

Capital assets are depreciated using the straight-line method over the following estimated useful lives:

Land improvements Buildings and improvements
Vehicles, furniture and equipment

5 - 50 years 5 - 50 years 5 - 40 years

Page 46

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

J. Deferred Outflows/Inflows of Resources

In addition to assets, the statement of financial position may report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of financial position may report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time.

K. Compensated Absences

The District's employee vacation and sick leave policies generally provide for granting vacation and sick leave with pay. All employees continuously employed by the District for more than three years may accrue sick leave up to a maximum of 180 days. All full-time classified employees earn vacation at rates depending on length of service; however, accumulated vacation as of June 30 cannot exceed 40 days at the end of any fiscal year. The current and long-term liabilities, including related benefits, for accumulated vacation and sick leave are reported on the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee leave, resignations and retirements. Generally, resources from the General Fund are used to pay for compensated absences.

L. Pensions and Other Postemployment Benefits

For purposes of measuring the net pension and other postemployment benefit (OPEB) assets and liabilities, related deferred outflows of resources and deferred inflows of resources, and related expenses, information about the pension and OPEB plans’ fiduciary net position and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

M. Long-term Obligations

In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities on the statement of net position. Bond premiums and discounts are amortized over the life of the bonds using the straight-line method. Deferred amounts on refunding result from the difference between the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

Page 47

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

N. Interfund Activity

Flows of cash from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers between governmental funds are eliminated in the Statement of Activities. Interfund transfers in the fund financial statements are reported as other financing sources/uses in governmental funds.

O. Net Position Flow Assumption

In the government-wide financial statements the District applies restricted resources first when outlays are incurred for purposes for which either restricted or unrestricted amounts are available.

P. Estimates

The preparation of the 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 amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

NOTE 2 – FUND BALANCE CLASSIFICATIONS

Fund balances of the governmental funds are reported separately within classifications based on a hierarchy of the constraints placed on the use of those resources. The classifications are based on the relative strength of the constraints that control how the specific amounts can be spent. The classifications are nonspendable, restricted, and unrestricted, which includes committed, assigned, and unassigned fund balance classifications.

Nonspendable. The nonspendable fund balance classification includes amounts that cannot be spent because they are not in spendable form, or legally or contractually required to be maintained intact.

Page 48

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 2 – FUND BALANCE CLASSIFICATIONS

Restricted. Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or is imposed by law through constitutional provisions or enabling legislation.

Committed. The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by formal action of the Governing Board. Those committed amounts cannot be used for any other purpose unless the Governing Board removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. The District does not have a formal policy or procedures for the utilization of committed fund balance, accordingly, no committed fund balance amounts are reported.

Assigned. Amounts in the assigned fund balance classification are intended to be used by the District for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the General Fund, assigned fund balance represents the remaining amount that is not restricted or committed. In the General Fund, assigned amounts represent intended uses established by the Governing Board or a management official delegated that authority by the formal Governing Board action. The District does not have a formal policy for the utilization of assigned fund balance, accordingly, no assigned fund balance amounts are reported.

Unassigned. Unassigned fund balance is the residual classification for the General Fund and includes all spendable amounts not contained in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned.

The District applies restricted resources first when outlays are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

Page 49

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 2 – FUND BALANCE CLASSIFICATIONS

The table below provides detail of the major components of the District’s fund balance classifications at year end.

Fund Balances: Nonspendable:
Prepaid items Restricted:
Debt service Capital projects
Teacher compensation Auxiliary operations Food service Community school Extracurricular activities Other purposes
Unassigned
Total fund balances

General Fund

$	27,129

2,078,216 $	2,105,345

Building Renewal Grant Fund

$

(1,384,175) $	(1,384,175)

Non-Major Governmental Funds

$	38,197

217,285 510,861 360,258 237,591 7,707 13,206 264,752 37,207
(156,258) $	1,530,806

NOTE 3 – RESTRICTED NET POSITION

The table below provides detail of the major components of the District’s restricted net position at year end.

Restricted Net Position: Debt service
Capital projects Teacher compensation
Federal and state projects Auxiliary operations Food service
Community school Extracurricular activities Other purposes

Governmental Activities

$         229,722 522,949 360,258 20,291 237,591 19,467 13,206 289,707 22,878

Total	$	1,716,069

Page 50

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 4 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Individual Deficit Fund Balances – At year end, the following individual major and non-major governmental funds reported deficits in fund balance.

Major Fund:
Building Renewal Grant
Non-Major Governmental Funds: Structured English Immersion Professional Development and
Technology Grants Special Education Grants State Vocational Education Results-Based Funding Other State Projects
Career Technical Education

Deficit

$ 1,384,175

167

1,130 145,849 2,076 1,595 550 4,891

The deficits arose because of operations during the year and/or because of pending grant and other reimbursements. Additional revenues received in fiscal year 2019-20 are expected to eliminate the deficits.

Excess Expenditures Over Budget – At year end, the District had expenditures in funds that exceeded the budget, however, this does not constitute a violation of any legal provisions.

NOTE 5 – CASH AND INVESTMENTS

Custodial Credit Risk – Deposits. Custodial credit risk is the risk that in the event of bank failure the District’s deposits may not be returned to the District. The District does not have a deposit policy for custodial credit risk. At year end, the carrying amount of the District’s deposits was $88,267 and the bank balance was $356,779. At year end, $8,448 of the District’s deposits were covered by collateral held by the pledging financial institution’s trust department or agent but not in the District’s name.

Fair Value Measurements. The District categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.

	Level 1 inputs are quoted prices in active markets for identical assets 	Level 2 inputs are significant other observable inputs
	Level 3 inputs are significant unobservable inputs

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 5 – CASH AND INVESTMENTS

The County Treasurer’s pool is an external investment pool with no regulatory oversight. The pool is not required to register (and is not registered) with the Securities and Exchange Commission. The fair value of each participant’s position in the County Treasurer investment pool approximates the value of the participant’s shares in the pool and the participants’ shares are not identified with specific investments. Participants in the pool are not required to categorize the value of shares in accordance with the fair value hierarchy.

At year end, the District’s investments consisted of the following:

Average Maturities	Fair Value County Treasurer’s investment pool	312 days                $	848,429

Interest Rate Risk. The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

Credit Risk. The District has no investment policy that would further limit its investment choices. As of year end, the District’s investment in the County Treasurer’s investment pools did not receive a credit quality rating from a national rating agency.

Custodial Credit Risk – Investments. The District’s investment in the County Treasurer’s investment pool represents a proportionate interest in the pool’s portfolio; however, the District’s portion is not identified with specific investments and is not subject to custodial credit risk.

NOTE 6 – RECEIVABLES

Receivable balances, net of allowance for uncollectibles, have been disaggregated by type and presented separately in the financial statements with the exception of due from governmental entities. Due from governmental entities, net of allowance for uncollectibles, as of year end for the District’s individual major funds and non-major governmental funds in the aggregate were as follows:

Due from other governmental entities: Due from federal government
Due from state government Due from county government Due from other districts
Net due from governmental entities

General Fund

$
1,770,289 9,209

$	1,779,498

Building Renewal Grant Fund

$
1,355,576

$	1,355,576

Non-Major Governmental Funds

$          254,803 280,478

49,555 $	584,836

Page 52

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 7 – CAPITAL ASSETS

A summary of capital asset activity for the current fiscal year follows:

Beginning Governmental Activities	Balance

Ending Increase	Decrease	Balance

Capital assets, not being depreciated: Land
Construction in progress
Total capital assets, not being depreciated Capital assets, being depreciated:
Land improvements Buildings and improvements
Vehicles, furniture and equipment

$	679,272 $ 58,175
737,447

1,227,874 33,344,143 2,765,775

1,016,845 1,016,845

40,141 1,442,678 168,854

$                     $ 1,075,020 1,075,020

97,653 146,437

679,272

679,272

1,268,015 34,689,168 2,788,192

Total capital assets being depreciated Less accumulated depreciation for:
Land improvements Buildings and improvements
Vehicles, furniture and equipment Total accumulated depreciation

Total capital assets, being depreciated, net

37,337,792

(503,248) (11,725,812) (2,180,838) (14,409,898)

22,927,894

1,651,673

(34,323) (695,885) (61,331) (791,539)

860,134

244,090

(97,532) (139,322) (236,854)

7,236

38,745,375

(537,571) (12,324,165) (2,102,847) (14,964,583)

23,780,792

Governmental activities capital assets, net	$	23,665,341 $	1,876,979 $ 1,082,256 $ 24,460,064

Depreciation expense was charged to governmental functions as follows:

Instruction
Support services – students and staff Support services – administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services
Total depreciation expense – governmental activities

$     410,624 622
23,596 284,760 63,409 8,528
$	791,539

Page 53

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 8 – OBLIGATIONS UNDER CAPITAL LEASES

The District has acquired stadium lighting and seating upgrades, utility management, energy efficient equipment, and vehicles under the provisions of long-term lease agreements classified as capital leases. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of their future minimum lease payments as of the inception date. Revenues from the General Fund, Community School Fund, and the Unrestricted Capital Outlay Fund are used to pay the capital lease obligations. Amortization of assets recorded under capital leases is included with depreciation expense.

The assets acquired through capital leases that meet the District’s capitalization threshold are as follows:

Governmental Activities

Asset:
Land improvements
Vehicles, furniture and equipment Less: Accumulated depreciation
Total

$          413,000 515,534 96,589
$	831,945

The future minimum lease obligations and the net present value of these minimum lease payments at year end were as follows:

Year Ending June 30:
2020 2021 2022 2023 2024 2025-29 2030
Total minimum lease payments

Less: amount representing interest

Governmental Activities
$	 233,069 233,069 196,532 189,005 185,240 464,736
5,000 1,506,651

209,897

Present value of minimum lease payments

Due within one year

$	1,296,754

$	183,872

Page 54

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 9 – GENERAL OBLIGATION BONDS PAYABLE

Bonds payable at year end consisted of the following general obligation bonds. The bonds are callable with interest payable semiannually. Property taxes from the Debt Service Fund are used to pay bonded debt. In addition, a portion of the District’s school improvement bonds are Qualified Build America Bonds (BABS). The District receives a direct subsidy payment from the United States of America for a portion of the interest due on the bonds. The District’s legal debt limit is $59.1 million and the available margin is $49.9 million.

Original Purpose	Amount Issued

Interest Rates

Remaining Maturities

Outstanding Principal June 30, 2019

Due Within One Year

Governmental activities:
School Improvement Bonds, Build
America, Series 2010 (Class B)	$	11,785,000 5.023-6.073%	7/1/20-29	$	9,190,000 $	740,000

Governmental Activities Year ending June 30:	Principal	Interest

2020 2021 2022 2023 2024 2025-29
Total

$	 740,000	$ 770,000 825,000 875,000 900,000
5,080,000
$	9,190,000	$

520,096 482,926 443,094 399,180 351,290 930,956 3,127,542

NOTE 10 – CHANGES IN LONG-TERM LIABILITIES

Long-term liability activity for the current fiscal year was as follows:

Beginning
Balance	Additions	Reductions

Ending Balance

Due Within One Year

Governmental activities: General obligation bonds Obligations under capital leases Net OPEB liability
Net pension liability Compensated absences payable

$ 9,910,000 $ 1,341,669
33,381 14,563,920 526,140

136,996 16,497

165,726

$	 720,000 $ 181,911

1,231,084 155,756

9,190,000 $ 1,296,754
49,878 13,332,836 536,110

740,000 183,872

107,222

Governmental activity long-term
liabilities	$ 26,375,110 $	319,219 $ 2,288,751 $ 24,405,578 $ 1,031,094

Page 55

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 11– INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS

At year end, interfund balances were as follows:

Due to/from other funds – At year end, the Building Renewal Grant Fund, a major governmental fund, and several non-major governmental funds had negative cash balances of $1,286,977, and $284,955 respectively, in the Treasurer’s pooled cash accounts. Negative cash on deposit with the County Treasurer was reduced by interfund borrowing with the General Fund and other non-major governmental funds. All interfund balances are expected to be paid within one year.

Interfund transfers – Transfers of $260 were to move cash from the General Fund to the Auxiliary Operations and Extracurricular Activities Fee Tax Credit Funds.

NOTE 12 – CONTINGENT LIABILITIES

Compliance – Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures/expenses that may be disallowed by the grantor cannot be determined at this time, although the District expects such amounts, if any, to be immaterial.

Page 56

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 13 – 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; injuries to employees; and natural disasters.

The District was unable to obtain general property and liability insurance at a cost it considered to be economically justifiable. Therefore, the District joined the Arizona School Risk Retention Trust, Inc. (ASRRT). ASRRT is a public entity risk pool currently operating as a common risk management and insurance program for school districts and community colleges in the State. The District pays an annual premium to ASRRT for its general insurance coverage. The agreement provides that ASRRT will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of specified amounts.

The District joined the Arizona School Alliance for Workers’ Compensation, Inc. (Alliance) together with other school districts in the state for risks of loss related to workers’ compensation claims. The Alliance is a public entity risk pool currently operating as a common risk management and insurance program for school districts in the State. The District pays quarterly premiums to the Alliance for its employee workers’ compensation coverage. The agreement provides that the Alliance will be self-sustaining through members’ premiums and will reinsure through commercial companies for claims in excess of specified amounts for each insured event.

The District’s employees have health and accident insurance coverage with the Arizona School Board Association Insurance Trust (ASBAIT). ASBAIT is a public entity risk pool currently operating as a common risk management and insurance program for school districts in the State. The District pays a monthly premium to ASBAIT for employees’ health and accident insurance coverage. The agreement provides that ASBAIT will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of specified amounts.

The District continues to carry commercial insurance for employee dental, vision, and life coverage. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.

Page 57

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

Plan Description. District employees participate in the Arizona State Retirement System (ASRS). The ASRS administers a cost-sharing multiple-employer defined benefit pension plan, a cost-sharing multiple-employer defined benefit health insurance premium benefit (OPEB) plan, and a cost-sharing multiple-employer defined benefit long-term disability (OPEB) plan. The Arizona State Retirement System Board governs the ASRS according to the provisions of A.R.S. Title 38, Chapter 5, Articles 2 and 2.1. ASRS is a component unit of the State of Arizona. The ASRS issues a publicly available financial report that includes its financial statements and required supplementary information. The report is available on the ASRS website at www.azasrs.gov.

Aggregate Amounts. At June 30, 2019, the District reported the following aggregate amounts related to pensions and OPEB for all plans to which it contributes:

Net assets Net liability
Deferred outflows of resources Deferred inflows of resources Expense
Contributions

Pension

$		$ 13,332,836
2,185,245 1,576,264 427,703
1,094,945

OPEB (33,287)
49,878 138,261 102,098 53,649
60,721

Benefits Provided. The ASRS provides retirement, health insurance premium supplement, long-term disability, and survivor benefits. State statute establishes benefit terms. Retirement benefits are calculated on the basis of age, average monthly compensation, and service credit as follows:

Years of service and age required to receive benefit

Retirement Initial Membership Date:
Before July 1, 2011	On or After July 1, 2011 Sum of years and age equals 80     30 years, age 55
10 years, age 62	25 years, age 60 5 years, age 50*	10 years, age 62 Any years, age 65	5 years, age 50*
Any years, age 65

Final average salary is based on

Highest 36 months of last 120 months

Highest 60 months of last 120 months

Benefit percent per year of service

2.1% to 2.3%	2.1% to 2.3%

*With actuarially reduced benefits

Page 58

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

Retirement benefits for members who joined the ASRS prior to September 13, 2013, are subject to automatic cost-of-living adjustments based on excess investment earnings. Members with a membership date on or after September 13, 2013, are not eligible for cost-of-living adjustments. Survivor benefits are payable upon a member’s death. For retired members, the survivor benefit is determined by the retirement benefit option chosen. For all other members, the beneficiary is entitled to the member’s account balance that includes the member’s contributions and employer’s contributions, plus interest earned.

Retired and disabled members, with at least five years of credited service, are eligible to receive health insurance premium benefits. The benefits are payable only with respect to allowable health insurance premiums for which the member is responsible. For members with 10 or more years of service, benefits range from $100 per month to $260 per month depending on the age of the member and dependents. For members with five to nine years of service, the benefits are the same dollar amounts as above multiplied by a vesting fraction based on completed years of service.

Active members are eligible for a long-term disability benefit in the event they become unable to perform their work. The monthly benefit is equal to two-thirds of their monthly earnings. Members receiving benefits continue to earn service credit up to their normal retirement dates. Members with long-term disability commencement dates after June 30, 1999 are limited to 30 years of service or the service on record as of the effective disability date, if their service is greater than 30 years.

Contributions. In accordance with state statutes, annual actuarial valuations determine active member and employer contribution requirements. The combined active member and employer contribution rates are expected to finance the costs of benefits employees earn during the year, with an additional amount to finance any unfunded accrued liability. For the current fiscal year, active ASRS members were required by statute to contribute at the actuarially determined rate of 11.80 percent (11.64 percent for retirement and 0.16 percent for long-term disability) of the members’ annual covered payroll, and the District was required by statute to contribute at the actuarially determined rate of 11.80 percent (11.18 percent for retirement, 0.46 percent for health insurance premium benefit, and 0.16 percent for long-term disability) of the active members’ annual covered payroll. The District’s contributions for the year ended June 30, 2019 were as follows:

Contributions

Pension

Health Insurance Premium

Long-Term Disability

$          1,094,945 45,051
15,670

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

Employers are also required to pay an Alternate Contribution Rate (ACR), for retired members who return to work in positions that would typically be filled by an employee who contributes to ASRS. The District was required by statute to contribute at the actuarially determined rate of 10.53 percent (10.41 for retirement, 0.06 percent for health insurance premium benefit, and 0.06 percent for long-term disability). ACR contributions are included in employer contributions presented above.

The District’s pension and OPEB contributions are paid by the same funds as the employee’s salary, with the largest component coming from the General Fund.

Pension and OPEB Assets/Liability. The net pension and OPEB assets/liability were measured as of June 30, 2018. The total liability used to calculate the net asset or net liability was determined using update procedures to roll forward the total liability from an actuarial valuation as of June 30, 2017, to the measurement date of June 30, 2018. The total liability as of June 30, 2018 reflects changes in actuarial assumptions based on the results of an actuarial experience study for the five-year period ended June 30, 2016, including decreasing the discount rate from 8.0 percent to 7.5 percent, changing the projected salary increases from 3-6.75 percent to 2.7-7.2 percent, decreasing the inflation rate from 3 percent to 2.3 percent, and changing the mortality rates. The District’s proportion of the net assets/liability was based on the District’s actual contributions to the applicable plan relative to the total of all participating employers’ contributions to the plan for the year ended June 30, 2018.

At June 30, 2019, the District reported the following amounts for its proportionate share of the ASRS plans net assets/liability. In addition, at June 30, 2018, the District’s percentage proportion for each plan and the related change from its proportion measured as of June 30, 2017 was:

Net

(Assets) Liability

District

% Proportion

Increase

(Decrease)

Pension

Health Insurance Premium

Long-Term Disability

$         13,332,836                          0.096                           0.003 (33,287)                          0.092                           0.002
49,878	0.095	0.003

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

Pension/OPEB Expense and Deferred Outflows/Inflows of Resources. The District has deferred outflows and inflows of resources related to the net pension and OPEB assets/liabilities. Certain changes in the net pension and OPEB assets/liability are recognized as pension and OPEB expense over a period of time rather than the year of occurrence. For the year ended June 30, 2019, the District recognized pension and OPEB expense as follows:

Pension

Health Insurance Premium

Long-Term Disability

Expense

$            427,703 35,359
18,290

The District reported deferred outflows of resources and deferred inflows of resources related to pensions and OPEB from the following sources:

Deferred Outflows of Resources

Health Insurance
Pension	Premium

Long-Term

Disability

Differences between expected and actual experience Changes of assumptions or other inputs
Changes in proportion and differences between contributions and proportionate share of contributions
Contributions subsequent to the measurement date

Total

$	367,309	$ 352,811

370,180 1,094,945
$	2,185,245	$

$	1,276 64,194                      10,803

64                        1,203 45,051                      15,670
109,309	$	28,952

Deferred Inflows of Resources

Health Insurance
Pension	Premium

Long-Term

Disability

Differences between expected and actual experience Changes of assumptions or other inputs
Net difference between projected and actual earnings on pension investments
Changes in proportion and differences between contributions and proportionate share of contributions
Total

$		73,502	$ 1,182,139

320,623

$	1,576,264	$

30,722	$

66,495	4,831

47	3

97,264	$	4,834

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

The amounts of deferred outflows of resources resulting from contributions subsequent to the measurement date as reported in the table above will be recognized as an adjustment of the net pension and OPEB assets/liability in the year ended June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions and OPEB will be recognized in pension and OPEB expense as follows:

Health Insurance
Pension	Premium

Long-Term

Disability

2020 2021 2022 2023 2024
Thereafter

$	 341,225	$ (197,040) (486,362)
(143,787)

(12,886)        $                    314 (12,887)                             313 (12,887)                             313 1,284                          1,608 4,370                          1,846
4,054

Actuarial Assumptions. The significant actuarial assumptions used to measure the total pension and OPEB liability are as follows:

Actuarial valuation date Actuarial roll forward date Actuarial cost method Investment rate of return Projected salary increases Inflation
Permanent base increases Mortality rates

Healthcare cost trend rate

Pension June 30, 2017 June 30, 2018 Entry age normal 7.5%
2.7-7.2% 2.3% Included
2017 SRA Scale U-MP

Not applicable

OPEB June 30, 2017 June 30, 2018 Entry age normal 7.5%
Not applicable 2.3%
Not applicable
Health Ins: 2017 SRA Scale U-MP,
LTD: 2012 GLDT Not applicable

The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the five-year period ended June 30, 2016. The purpose of the experience study was to review actual experience in relation to the actuarial assumptions in effect. The ASRS Board adopted the experience study recommended changes which were applied to the June 30, 2017, actuarial valuation.

Page 62

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

The long-term expected rate of return on ASRS plan investments was determined to be 7.5 percent using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage, excluding any expected inflation.

On June 29, 2018, the ASRS Board approved updated strategic asset allocation targets, to be effective July 2018. The target allocation and best estimates of geometric real rates of return for each major asset class for all ASRS plans are summarized in the following table:

Asset Class Equity
Fixed income Real estate
Total

Target Allocation 50% 30% 20% 100%

Long-Term Expected Real Rate of Return
5.50% 3.83 5.85

Discount Rate. The discount rate used to measure the ASRS total pension and OPEB liability was 7.5 percent, which was a decrease of 0.5 from the discount rate used as of June 30, 2017. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers will be made based on the actuarially determined rates based on the ASRS Board’s funding policy, which establishes the contractually required rate under Arizona statute. Based on those assumptions, the plans’ fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on investments was applied to all periods of projected benefit payments to determine the total pension and OPEB liability.

Page 63

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

Sensitivity of the Proportionate Share of the Net Pension and OPEB Asset/Liability to Changes in the Discount Rate. The following presents the District’s proportionate share of the net pension and OPEB assets/liability calculated using the discount rate of 7.5 percent, as well as what the proportionate share of the net pension and OPEB asset/liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate:

Proportionate share of the net (assets) liability

1% Decrease

Rate	6.5%

Current Discount Rate
7.5%

1% Increase

8.5%

Pension

Health Insurance Premium

Long-Term Disability

$	19,006,264	$ 117,943
56,526

13,332,836	$ (33,287)
49,878

8,592,778 (162,104)
43,428

Pension and OPEB Plan Fiduciary Net Position. Detailed information about the pension and OPEB plan’s fiduciary net position is available in the separately issued ASRS financial report. The report is available on the ASRS website at www.azasrs.gov.

Page 64

REQUIRED SUPPLEMENTARY INFORMATION

Page 65

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL
YEAR ENDED JUNE 30, 2019

Revenues: Other local Property taxes
State aid and grants Total revenues

Budgeted Amounts

Original	Final

$	$

Non-GAAP Actual

$            433,152 6,687,626 6,177,256 13,298,034

Variance with Final Budget Positive (Negative)

$            433,152 6,687,626 6,177,256 13,298,034

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -Principal retirement
Interest and fiscal charges Total expenditures

Changes in fund balances

8,397,089 1,053,810 2,009,208 1,763,419 588,293 53,749

13,865,568

(13,865,568)

8,211,939 1,053,810 2,009,208 1,763,419 588,293 53,749

13,680,418

(13,680,418)

7,920,122 1,172,323 2,218,630 1,655,790 576,601 83,161 1,924

42,140 5,689 13,676,380

(378,346)

291,817 (118,513) (209,422) 107,629 11,692 (29,412) (1,924)

(42,140) (5,689) 4,038

13,302,072

Fund balances, beginning of year

Increase (decrease) in reserve for prepaid items

2,284,316

24,079

2,284,316

24,079

Fund balances (deficits), end of year	$	(13,865,568)	$	(13,680,418)	$	1,930,049	$	15,610,467

See accompanying notes to this schedule.

Page 66

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY ARIZONA STATE RETIREMENT SYSTEM LAST FIVE FISCAL YEARS

2019	2018	2017	2016	2015

Measurement date

District's proportion of the net pension (assets) liability

District's proportionate share of the net pension (assets) liability

District's covered payroll

District's proportionate share of the net pension (assets) liability as a percentage of its covered payroll

Plan fiduciary net position as a percentage of the total pension liability

June 30, 2018

0.096%

$13,332,836

$ 9,523,862

139.99%

73.40%

June 30, 2017

0.093%

$ 14,563,920

$ 9,067,653

160.61%

69.92%

June 30, 2016

0.091%

$ 14,699,613

$ 8,706,710

168.83%

67.06%

June 30, 2015

0.091%

$ 14,138,702

$ 8,377,952

168.76%

68.35%

June 30, 2014

0.082%

$ 13,687,116

$ 8,102,832

168.92%

69.49%

SCHEDULE OF PENSION CONTRIBUTIONS ARIZONA STATE RETIREMENT SYSTEM LAST FIVE FISCAL YEARS

2019	2018	2017	2016	2015

Actuarially determined contribution	$ 1,094,945	$ 1,038,101	$	977,493	$	944,678	$	912,359

Contributions in relation to the actuarially determined contribution

Contribution deficiency (excess)

District's covered payroll

Contributions as a percentage of covered payroll

1,094,945

$

$ 9,793,784

11.18%

1,038,101

$

$ 9,523,862

10.90%

977,493

$

$ 9,067,653

10.78%

944,678

$

$ 8,706,710

10.85%

912,359

$

$ 8,377,952

10.89%

NOTE: The pension and OPEB schedules in the required supplementary information are intended to show information for ten years, and additional information will be displayed as it becomes available.

See accompanying notes to this schedule. Page 67

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET OPEB LIABILITY ARIZONA STATE RETIREMENT SYSTEM - HEALTH INSURANCE PREMIUM LAST TWO FISCAL YEARS

2019	2018	2017	2016	2015

Measurement date

District's proportion of the net OPEB (assets) liability

June 30, 2018

0.092%

June 30, 2017	0

0.090%	0.000%

0	0

0.000%	0.000%

District's proportionate share of the net

OPEB (assets) liability	$	(33,287)	$	(49,263)	$	$	$

District's covered payroll	$ 9,523,862	$ 9,067,653	$	$	$

District's proportionate share of the net OPEB (assets) liability as a percentage of its covered payroll

Plan fiduciary net position as a percentage of the total OPEB liability

(0.35)%

102.20%

(0.54)%

103.57%

#DIV/0!

0.00%

#DIV/0!

0.00%

#DIV/0!

0.00%

SCHEDULE OF OPEB CONTRIBUTIONS

ARIZONA STATE RETIREMENT SYSTEM - HEALTH INSURANCE PREMIUM LAST TWO FISCAL YEARS

2019	2018	2017	2016	2015

Actuarially determined contribution	$	45,051	$	41,905	$	$	$

Contributions in relation to the

actuarially determined contribution	45,051	41,905

Contribution deficiency (excess)

District's covered payroll

$

$ 9,793,784

$	$	$	$

$ 9,523,862	$	$	$

Contributions as a percentage

of covered payroll	0.46%	0.44%	#DIV/0!	#DIV/0!	#DIV/0!

NOTE: The pension and OPEB schedules in the required supplementary information are intended to show information for ten years, and additional information will be displayed as it becomes available.

See accompanying notes to this schedule. Page 68

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET OPEB LIABILITY ARIZONA STATE RETIREMENT SYSTEM - LONG-TERM DISABILITY LAST TWO FISCAL YEARS

2019	2018	2017	2016	2015

Measurement date

District's proportion of the net OPEB (assets) liability

June 30, 2018

0.095%

June 30, 2017	0

0.092%	0.000%

0	0

0.000%	0.000%

District's proportionate share of the net

OPEB (assets) liability	$	49,878	$	33,381	$	$	$

District's covered payroll	$ 9,523,862	$ 9,067,653	$	$	$

District's proportionate share of the net OPEB (assets) liability as a percentage of its covered payroll

Plan fiduciary net position as a percentage of the total OPEB liability

0.52%	0.37%

77.83%	84.44%

#DIV/0!

0.00%

#DIV/0!

0.00%

#DIV/0!

0.00%

SCHEDULE OF OPEB CONTRIBUTIONS

ARIZONA STATE RETIREMENT SYSTEM - LONG-TERM DISABILITY LAST TWO FISCAL YEARS

2019	2018	2017	2016	2015

Actuarially determined contribution	$	15,670	$	15,238	$	$	$

Contributions in relation to the

actuarially determined contribution	15,670	15,238

Contribution deficiency (excess)

District's covered payroll

$

$ 9,793,784

$	$	$	$

$ 9,523,862	$	$	$

Contributions as a percentage

of covered payroll	0.16%	0.16%	#DIV/0!	#DIV/0!	#DIV/0!

NOTE: The pension and OPEB schedules in the required supplementary information are intended to show information for ten years, and additional information will be displayed as it becomes available.

See accompanying notes to this schedule. Page 69

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2019

NOTE 1 – BUDGETARY BASIS OF ACCOUNTING

The District budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except for the following items.

	Certain activities reported in the General Fund are budgeted in separate funds in accordance with Arizona Revised Statutes.

The following schedule reconciles expenditures and fund balances at the end of year:

Total Expenditures

Fund Balances End of Year

Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds
Activity budgeted as special revenue funds
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund

$	13,894,948	$ (218,568)

$	13,676,380	$

2,105,345 (175,296)

1,930,049

NOTE 2 – PENSION AND OPEB PLAN SCHEDULES

Actuarial Assumptions for Valuations Performed. The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated, which is the most recent actuarial valuation. The actuarial assumptions used are disclosed in the notes to the financial statements.

Factors that Affect Trends. The actuarial assumptions used in the June 30, 2017, valuation were based on the results of an actuarial experience study for the five-year period ended June 30, 2016. The purpose of the experience study was to review actual experience in relation to the actuarial assumptions in effect. The ASRS Board adopted the experience study recommended changes which were applied to the June 30, 2017, actuarial valuation.

Page 70

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

Page 71

(This page intentionally left blank)

Page 72

GOVERNMENTAL FUNDS

Page 73

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE JUNE 30, 2019

ASSETS
Cash and investments Property taxes receivable
Due from governmental entities Due from other funds
Prepaid items Total assets

Special Revenue

$	391,804

526,503 400,246 30,917
$	1,349,470

Debt Service

$            210,937 18,785

$	229,722

Capital Projects

$            241,761 7,411
58,333 208,164 7,280
$	522,949

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable	$ Due to other funds
Accrued payroll and employee benefits Total liabilities

42,605	$	$ 284,955
64,998 392,558

Deferred inflows of resources: Unavailable revenues - property taxes
Unavailable revenues - intergovernmental Total deferred inflows of resources

Fund balances (deficits): Nonspendable Restricted
Unassigned
Total fund balances

161,532 161,532

30,917 920,721 (156,258) 795,380

12,437

12,437

217,285

217,285

4,808

4,808

7,280 510,861

518,141

Total liabilities, deferred inflows of resources
and fund balances	$	1,349,470	$	229,722	$	522,949

Page 74

Total Non-Major Governmental Funds

$            844,502 26,196
584,836 608,410 38,197
$	2,102,141

$              42,605 284,955
64,998 392,558

17,245 161,532 178,777

38,197 1,648,867 (156,258) 1,530,806

$	2,102,141

Page 75

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE YEAR ENDED JUNE 30, 2019

Revenues: Other local Property taxes
State aid and grants
Federal aid, grants and reimbursements Total revenues

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -Principal retirement
Interest and fiscal charges Total expenditures

Excess (deficiency) of revenues over expenditures

Special Revenue

$	1,870,495

1,185,312 607,848 3,663,655

1,792,206 501,353 139,138 8,108 88,511 706,052 96,645

60,908 21,799 3,414,720

248,935

Debt Service

$              13,474 1,088,625

182,266 1,284,365

720,000 555,832 1,275,832

8,533

Capital Projects

$	 20,454 404,519 200,512

625,485

547,258

78,863 23,672 649,793

(24,308)

Other financing sources (uses):
Transfers in	260 Capital lease agreements
Total other financing sources (uses)	260

136,996 136,996

Changes in fund balances

Fund balances, beginning of year

249,195

534,956

8,533

208,752

112,688

427,290

Increase (decrease) in reserve for prepaid items	11,229	(21,837)

Fund balances, end of year	$	795,380	$	217,285	$	518,141

Page 76

Total Non-Major Governmental Funds

$         1,904,423 1,493,144 1,385,824 790,114 5,573,505

1,792,206 501,353 139,138 8,108 88,511 706,052 643,903

859,771 601,303 5,340,345

233,160

260 136,996 137,256

370,416

1,170,998

(10,608)

$	1,530,806

Page 77

SPECIAL REVENUE FUNDS

Classroom Site - to account for the financial activity for the portion of state sales tax collections and permanent state school fund earnings as approved by the voters in 2000.

Instructional Improvement - to account for the activity of monies received from gaming revenue.

Structured English Immersion - to account for monies received to provide for the incremental cost of instruction to English language learners.

Title I Grants - to account for financial assistance received for the purpose of improving the teaching and learning of children failing, or most at-risk of failing, to meet challenging State academic standards.

Professional Development and Technology Grants - to account for financial assistance received to increase student academic achievement through improving teacher quality.

Title IV Grants - to account for financial assistance received for chemical abuse awareness programs and expanding projects that benefit educational and health needs of the communities.

Special Education Grants - to account for supplemental financial assistance received to provide a free, appropriate public education to disabled children.

Vocational Education – to account for financial assistance received for preparation of individuals for employment or advancement in a career not requiring a baccalaureate or advanced degree.

State Vocational Education - to account for financial assistance received for the preparation of individuals for employment.

Gifted - to account for financial assistance received for programs for gifted students.

College Credit Exam Incentives - to account for financial assistance received for college credit exams.

Results-based Funding - to account for financial assistance received for academic performance results in accordance with A.R.S. §15-249.08.

Other State Projects - to account for financial assistance received for other State projects.

School Plant - to account for proceeds from the sale or lease of school property.

Food Service - to account for the financial activity of school activities that have as their purpose the preparation and serving of regular and incidental meals and snacks in connection with school functions.

Civic Center - to account for monies received from the rental of school facilities for civic activities.

Page 78

Community School - to account for activity related to academic and skill development for all citizens.

Auxiliary Operations - to account for activity arising from bookstore, athletic and miscellaneous District related operations and activity related to monies collected in support of extracurricular activities to be taken as a tax credit by the tax payer in accordance with A.R.S. §43-1089.01.

Extracurricular Activities Fees Tax Credit - to account for activity related to monies collected in support of extracurricular activities to be taken as a tax credit by the tax payer in accordance with A.R.S. §43-1089.01.

Gifts and Donations - to account for activity related to gifts, donations, bequests and private grants made to the District.

Fingerprint - to account for activity of fingerprinting employees as mandated by the State.

Insurance Proceeds - to account for the monies received from insurance claims.

Textbooks - to account for monies received from students to replace or repair lost or damaged textbooks.

Litigation Recovery - to account for monies received for and derived from litigation.

Indirect Costs - to account for monies received from federal projects for administrative costs.

Insurance Refund - to account for insurance premium payments that are refunded to the District.

Grants and Gifts to Teachers - to account for grants and gifts under $1,500 received from private sources that are designated for use by a teacher for instructional purposes.

Advertisement - to account for monies received from the sale of advertising.

Career Technical Education Fund – to account for monies received from Career Technical Education Districts for vocational education programs.

Page 79

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2019

ASSETS
Cash and investments
Due from governmental entities Due from other funds
Prepaid items Total assets

Classroom Site

$            149,169 176,247

$	325,416

Instructional Improvement

$              27,545 40,362

$	67,907

Structured English Immersion

$
167

$	167

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable	$	$	$
Due to other funds	167 Accrued payroll and employee benefits                                                     33,065
Total liabilities	33,065	167

Deferred inflows of resources:
Unavailable revenues - intergovernmental	167

Fund balances (deficits): Nonspendable Restricted
Unassigned
Total fund balances

292,351	67,907
(167) 292,351	67,907	(167)

Total liabilities, deferred inflows of resources
and fund balances	$	325,416	$	67,907	$	167

Page 80

Professional Development and Technology
Title I Grants	Grants	Title IV Grants

Special Education Grants

Vocational Education

State Vocational Education

$		$ 29,318

3,938
$	33,256	$

$		$ 23,428
5,890 29,318

$ 31,307

31,307	$

$ 31,307

31,307

$ 14,080

14,080	$

$ 14,080

14,080

$ 154,867

154,867	$

$ 149,021
5,846 154,867

$
13,471	4,819

2,024
15,495	$	4,819

3,463	$
10,008	4,819

13,471	4,819

1,130	145,849	2,076

3,938	2,024

(1,130) 3,938	(1,130)

(145,849) (145,849)

(2,076) 2,024	(2,076)

$	33,256	$	31,307	$	14,080	$	154,867	$	15,495	$	4,819

(Continued)

Page 81

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2019

ASSETS
Cash and investments
Due from governmental entities Due from other funds
Prepaid items Total assets

College Credit Exam Incentives

$	22,929

$	22,929

Results-based Funding

$

$

Other State Projects

$
550

$	550

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable	$	$	$
Due to other funds	1,595	550 Accrued payroll and employee benefits                                                       8,600
Total liabilities	8,600	1,595	550

Deferred inflows of resources:
Unavailable revenues - intergovernmental	550

Fund balances (deficits): Nonspendable Restricted
Unassigned
Total fund balances

14,329
(1,595)	(550) 14,329	(1,595)	(550)

Total liabilities, deferred inflows of resources
and fund balances	$	22,929	$	$	550

Page 82

Community Food Service	Civic Center	School

Auxiliary Operations

Extracurricular Activities Fees
Tax Credit	Fingerprint

$	 9,511	$ 11,760

$	21,271	$

11,914	$

11,914	$

31,686	$

31,686	$

$

258,288

258,288	$

128,086	$	101

141,958 24,955
294,999	$	101

$	1,804	$	$	6,883	$	20,697	$	5,292	$

11,597
1,804	18,480	20,697	5,292

11,760

7,707	11,914

7,707	11,914

13,206	237,591

13,206	237,591

24,955
264,752	101

289,707	101

$	21,271	$	11,914	$	31,686	$	258,288	$	294,999	$	101

(Continued)

Page 83

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2019

ASSETS
Cash and investments
Due from governmental entities Due from other funds
Prepaid items Total assets

Textbooks

$	2,549

$	2,549

Insurance Refund

$	8,272

$	8,272

Grants and Gifts to Teachers

$	42

$	42

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable	$	$	$ Due to other funds
Accrued payroll and employee benefits Total liabilities

Deferred inflows of resources:
Unavailable revenues - intergovernmental

Fund balances (deficits): Nonspendable Restricted
Unassigned
Total fund balances

2,549	8,272	42

2,549	8,272	42

Total liabilities, deferred inflows of resources
and fund balances	$	2,549	$	8,272	$	42

Page 84

Career Technical
Education	Totals

$
49,555

$	49,555

$                4,466 49,980

54,446

$	391,804 526,503 400,246
30,917 $	1,349,470

$              42,605 284,955
64,998 392,558

161,532

(4,891) (4,891)

30,917 920,721 (156,258) 795,380

$	49,555	$	1,349,470

Page 85

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2019

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -Principal retirement
Interest and fiscal charges Total expenditures

Classroom Site

$                6,182 1,057,480

1,063,662

857,285 11,258

868,543

Instructional Improvement

$                   328 90,717

91,045

11,411 56,382 5,711

73,504

Structured English Immersion

$

3

3

Excess (deficiency) of revenues over expenditures	195,119	17,541	(3)

Other financing sources (uses): Transfers in
Total other financing sources (uses)

Changes in fund balances

Fund balances (deficits), beginning of year

195,119	17,541	(3)

97,232	50,366	(164)

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	292,351	$	67,907	$	(167)

Page 86

Professional Development and Technology
Title I Grants	Grants	Title IV Grants

Special Education Grants

Vocational Education

State Vocational Education

$	$	$

105,680                           49,837 105,680                           49,837

$	$	$
19,037 18,429	246,967	24,603
18,429	246,967	24,603	19,037

85,737
24,368 6,066	5,809

4,332                         278,003                             1,792                             2,261 1,807                           34,684                             8,770                             8,533
788	78,303

7,154	6,823	8,128

91,803	30,177

13,877	19,660

13,877	19,660

5,811	(20,790)

14,081

4,348

4,348

(4,348)

390,990

(144,023)

(144,023)

(1,826)

17,385

7,218

7,218

(7,218)

18,922

115

115

(2,191)

(15,750)	2,024

$	3,938	$	(1,130)	$	$	(145,849)	$	2,024	$	(2,076)

(Continued)

Page 87

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2019

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

College Credit Gifted	Exam Incentives

$	$
2,689	15,389

2,689	15,389

Results-based Funding

$

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -Principal retirement
Interest and fiscal charges Total expenditures

8,600 2,689

2,689	8,600

Excess (deficiency) of revenues over expenditures	6,789

Other financing sources (uses): Transfers in
Total other financing sources (uses)

Changes in fund balances

Fund balances (deficits), beginning of year

6,789

7,540	(1,595)

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	$	14,329	$	(1,595)

Page 88

Other State Projects

Community Food Service	Civic Center	School

Auxiliary Operations

Extracurricular Activities Fees Tax Credit

$	$	392,638	$	34,388	$	409,467	$	287,817	$	433,598

162,332 554,970

8,080 257

571,613 3,703

583,653

(28,683)

34,388

12,843 4,980 25,613 7,563 1,994

52,993

(18,605)

409,467

274,634 11,112 3,811

134,439 14,413

60,908 21,799 521,116

(111,649)

287,817

140,841 74,626 4,957 288 43,211

9,455

273,378

14,439

433,598

14,649 261,132

43,246

797

319,824

113,774

53                                207 53                                207

(28,683)	(18,605)	(111,649)	14,492	113,981

(550)	36,390	30,519	124,855	223,099	150,771

24,955

$	(550)	$	7,707	$	11,914	$	13,206	$	237,591	$	289,707

(Continued)

Page 89

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2019

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Fingerprint

$	592

592

Textbooks

$	2,538

2,538

Insurance Refund

$	5,994

5,994

Expenditures: Current -
Instruction	2,017 Support services - students and staff
Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -Principal retirement
Interest and fiscal charges
Total expenditures	2,017

Excess (deficiency) of revenues over expenditures	(1,425)	2,538	5,994

Other financing sources (uses): Transfers in
Total other financing sources (uses)

Changes in fund balances

Fund balances (deficits), beginning of year

(1,425)	2,538	5,994

1,526	11	2,278

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	101	$	2,549	$	8,272

Page 90

Grants and Gifts to Teachers

Career Technical
Education	Totals

$	2	$	296,951

2	296,951

$         1,870,495 1,185,312 607,848 3,663,655

97,798 1,012

60

46,172

145,042

1,792,206 501,353 139,138 8,108 88,511 706,052 96,645

60,908 21,799 3,414,720

2	151,909	248,935

260 260

2	151,909

40	(156,800)

249,195

534,956

11,229

$	42	$	(4,891)	$	795,380

Page 91

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2019

Classroom Site

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Budget	Actual

$                                    $                6,182 1,057,480

1,063,662

Variance -Positive (Negative)

$                6,182 1,057,480

1,063,662

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -Principal retirement
Interest and fiscal charges Total expenditures

Excess (deficiency) of revenues over expenditures

1,143,633

1,143,633

(1,143,633)

857,285 11,258

868,543

195,119

286,348 (11,258)

275,090

1,338,752

Other financing sources (uses): Transfers in
Transfers out
Total other financing sources (uses)

Changes in fund balances	(1,143,633)	195,119	1,338,752

Fund balances (deficits), beginning of year	97,232	97,232

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	(1,143,633)	$	292,351	$	1,435,984

Page 92

Instructional Improvement

Budget	Actual

Variance -Positive (Negative)

Structured English Immersion

Budget	Actual

Variance -Positive (Negative)

$	$		328	$	328	$	$	$ 90,717                           90,717

91,045	91,045

11,411                        (11,411) 56,382                        (56,382) 5,711                          (5,711)

73,504	(73,504)

17,541	17,541

17,541	17,541

50,366	50,366

3	(3)

3	(3)

(3)	(3)

(3)	(3)

(164)	(164)

$	$	67,907	$	67,907	$	$	(167)	$	(167)

(Continued)

Page 93

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2019

Title I Grants

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Budget	Actual

$	$

105,680 105,680

Variance -Positive (Negative)

$

105,680 105,680

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -Principal retirement
Interest and fiscal charges Total expenditures

Excess (deficiency) of revenues over expenditures

85,737	(85,737)

6,066	(6,066)

91,803	(91,803)

13,877	13,877

Other financing sources (uses): Transfers in
Transfers out
Total other financing sources (uses)

Changes in fund balances

Fund balances (deficits), beginning of year

Increase (decrease) in reserve for prepaid items

13,877

5,811

(15,750)

13,877

5,811

(15,750)

Fund balances (deficits), end of year	$	$	3,938	$	3,938

Page 94

Professional Development and Technology Grants	Title IV Grants

Variance -Positive
Budget	Actual	(Negative)	Budget

Variance -Positive
Actual	(Negative)

$	$	$	$	$	$

49,837                           49,837 49,837                           49,837

24,368                        (24,368) 5,809                          (5,809)

18,429                           18,429 18,429                           18,429

4,332                          (4,332) 1,807                          (1,807) 788                             (788)

7,154	(7,154)

30,177

19,660

19,660

(20,790)

(30,177)

19,660

19,660

(20,790)

14,081

4,348

4,348

(4,348)

(14,081)

4,348

4,348

(4,348)

$	$	(1,130)	$	(1,130)	$	$	$

(Continued)

Page 95

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2019

Special Education Grants

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Budget	Actual

$	$

246,967 246,967

Variance -Positive (Negative)

$

246,967 246,967

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -Principal retirement
Interest and fiscal charges Total expenditures

Excess (deficiency) of revenues over expenditures

278,003 34,684 78,303

390,990

(144,023)

(278,003) (34,684) (78,303)

(390,990)

(144,023)

Other financing sources (uses): Transfers in
Transfers out
Total other financing sources (uses)

Changes in fund balances

Fund balances (deficits), beginning of year

(144,023)

(1,826)

(144,023)

(1,826)

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	$	(145,849)	$	(145,849)

Page 96

Vocational Education

Budget	Actual

Variance -Positive (Negative)

State Vocational Education

Budget	Actual

Variance -Positive (Negative)

$	$	$	$

24,603                           24,603 24,603                           24,603

$	$
19,037	19,037

19,037	19,037

1,792 8,770

6,823

17,385

7,218

7,218

(7,218)

(1,792) (8,770)

(6,823)

(17,385)

7,218

7,218

(7,218)

2,261 8,533

8,128

18,922

115

115

(2,191)

(2,261) (8,533)

(8,128)

(18,922)

115

115

(2,191)

2,024	2,024

$	$	2,024	$	2,024	$	$	(2,076)	$	(2,076)

(Continued)

Page 97

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2019

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Gifted

Budget	Actual

$	$
2,689

2,689

Variance -Positive (Negative)

$
2,689

2,689

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -Principal retirement
Interest and fiscal charges Total expenditures

2,689	(2,689)

2,689	(2,689)

Excess (deficiency) of revenues over expenditures

Other financing sources (uses): Transfers in
Transfers out
Total other financing sources (uses)

Changes in fund balances

Fund balances (deficits), beginning of year

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	$	$

Page 98

College Credit Exam Incentives

Budget	Actual

Variance -Positive (Negative)

Results-based Funding

Budget	Actual

Variance -Positive (Negative)

$	$		$	$	$	$ 15,389                           15,389

15,389	15,389

8,600	(8,600)

8,600	(8,600)

6,789	6,789

6,789	6,789

7,540	7,540	(1,595)	(1,595)

$	$	14,329	$	14,329	$	$	(1,595)	$	(1,595)

(Continued)

Page 99

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2019

Other State Projects

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Budget	Actual

$	$

Variance -Positive (Negative)

$

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -Principal retirement
Interest and fiscal charges Total expenditures

Excess (deficiency) of revenues over expenditures

Other financing sources (uses): Transfers in
Transfers out
Total other financing sources (uses)

Changes in fund balances

Fund balances (deficits), beginning of year	(550)	(550)

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	$	(550)	$	(550)

Page 100

School Plant

Non-GAAP Budget	Actual

Variance -Positive (Negative)

Food Service

Budget	Actual

Variance -Positive (Negative)

$	$	32,406	$	32,406	$	$	392,638	$	392,638

162,332 32,406	32,406	554,970

162,332 554,970

8,080                          (8,080) 257                             (257)

50,000	8,760

50,000	8,760

(50,000)	23,646

(50,000)	23,646

575,000 41,240

41,240	575,000

73,646	(575,000)

73,646	(575,000)

571,613 3,703

583,653

(28,683)

(28,683)

3,387 (3,703)

(8,653)

546,317

546,317

26,033	26,033	36,390	36,390

$	(50,000)	$	49,679	$	99,679	$	(575,000)	$	7,707	$	582,707

(Continued)

Page 101

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2019

Civic Center

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Budget	Actual

$	$	34,388

34,388

Variance -Positive (Negative)

$	34,388

34,388

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -Principal retirement
Interest and fiscal charges Total expenditures

Excess (deficiency) of revenues over expenditures

50,000

50,000

(50,000)

12,843 4,980 25,613 7,563 1,994

52,993

(18,605)

(12,843) (4,980) 24,387 (7,563) (1,994)

(2,993)

31,395

Other financing sources (uses): Transfers in
Transfers out
Total other financing sources (uses)

Changes in fund balances	(50,000)	(18,605)	31,395

Fund balances (deficits), beginning of year	30,519	30,519

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	(50,000)	$	11,914	$	61,914

Page 102

Community School

Budget	Actual

Variance -Positive (Negative)

Auxiliary Operations

Budget	Actual

Variance -Positive (Negative)

$	$	409,467	$	409,467	$	$	287,817	$	287,817

409,467	409,467	287,817	287,817

300,000

300,000

(300,000)

274,634 11,112 3,811

134,439 14,413

60,908 21,799 521,116

(111,649)

25,366 (11,112) (3,811)

(134,439) (14,413)

(60,908) (21,799) (221,116)

188,351

600,000

600,000

(600,000)

140,841 74,626 4,957 288 43,211

9,455

273,378

14,439

459,159 (74,626) (4,957) (288) (43,211)

(9,455)

326,622

614,439

53	53

53	53

(300,000)	(111,649)	188,351	(600,000)	14,492	614,492

124,855	124,855	223,099	223,099

$	(300,000)	$	13,206	$	313,206	$	(600,000)	$	237,591	$	837,591

(Continued)

Page 103

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2019

Extracurricular Activities Fees Tax Credit

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Budget	Actual

$	$	433,598

433,598

Variance -Positive (Negative)

$	433,598

433,598

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -Principal retirement
Interest and fiscal charges Total expenditures

Excess (deficiency) of revenues over expenditures

Other financing sources (uses): Transfers in
Transfers out
Total other financing sources (uses)

Changes in fund balances

Fund balances (deficits), beginning of year

Increase (decrease) in reserve for prepaid items

14,649 261,132

43,246

797

319,824

113,774

207

207

113,981

150,771

24,955

(14,649) (261,132)

(43,246)

(797)

(319,824)

113,774

207

207

113,981

150,771

24,955

Fund balances (deficits), end of year	$	$	289,707	$	289,707

Page 104

Gifts and Donations

Non-GAAP Budget	Actual

Variance -Positive (Negative)

Fingerprint

Budget	Actual

Variance -Positive (Negative)

$	$	216,436	$	216,436	$	$	592	$	592

216,436	216,436	592	592

26,264	(26,264)	5,000	2,017	2,983 56,096	(56,096)
2,657	(2,657)

100,000	117,005	(17,005)

100,000

(100,000)

202,022

14,414

(102,022)

114,414

5,000

(5,000)

2,017	2,983

(1,425)	3,575

(260)                             (260) (260)                             (260)

(100,000)	14,154	114,154	(5,000)	(1,425)	3,575

90,790	90,790	1,526	1,526

3,050	3,050

$	(100,000)	$	107,994	$	207,994	$	(5,000)	$	101	$	5,101

(Continued)

Page 105

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2019

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Insurance Proceeds

Non-GAAP Budget	Actual

$	$	333

333

Variance -Positive (Negative)

$	333

333

Expenditures: Current -
Instruction	5,000	5,000 Support services - students and staff
Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -Principal retirement
Interest and fiscal charges
Total expenditures	5,000	5,000

Excess (deficiency) of revenues over expenditures	(5,000)	333	5,333

Other financing sources (uses): Transfers in
Transfers out
Total other financing sources (uses)

Changes in fund balances	(5,000)	333	5,333

Fund balances (deficits), beginning of year	4,072	4,072

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	(5,000)	$	4,405	$	9,405

Page 106

Textbooks

Budget	Actual

Variance -Positive (Negative)

Litigation Recovery

Non-GAAP Budget	Actual

Variance -Positive (Negative)

$	$	2,538	$	2,538	$	$	102	$	102

2,538	2,538	102	102

5,000	5,000	5,000	5,000

5,000	5,000	5,000	5,000

(5,000)	2,538

(5,000)	2,538

7,538	(5,000)

7,538	(5,000)

102	5,102

102	5,102

11	11	5,318	5,318

$	(5,000)	$	2,549	$	7,549	$	(5,000)	$	5,420	$	10,420

(Continued)

Page 107

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2019

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Indirect Costs

Non-GAAP Budget	Actual

$	$

Variance -Positive (Negative)

$

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -Principal retirement
Interest and fiscal charges Total expenditures

Excess (deficiency) of revenues over expenditures

25,000	25,000

25,000	25,000

(25,000)	25,000

Other financing sources (uses): Transfers in
Transfers out
Total other financing sources (uses)

Changes in fund balances	(25,000)	25,000

Fund balances (deficits), beginning of year

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	(25,000)	$	$	25,000

Page 108

Insurance Refund

Budget	Actual

Variance -Positive (Negative)

Grants and Gifts to Teachers

Budget	Actual

Variance -Positive (Negative)

$	$	5,994	$	5,994	$	$	2	$	2

5,994	5,994	2	2

5,000	5,000	10,000	10,000

5,000	5,000	10,000	10,000

(5,000)

(5,000)

5,994	10,994

5,994	10,994

(10,000)

(10,000)

2	10,002

2	10,002

2,278	2,278	40	40

$	(5,000)	$	8,272	$	13,272	$	(10,000)	$	42	$	10,042

(Continued)

Page 109

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2019

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Advertisement

Non-GAAP Budget	Actual

$	$	14,204

14,204

Variance -Positive (Negative)

$	14,204

14,204

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -Principal retirement
Interest and fiscal charges Total expenditures

Excess (deficiency) of revenues over expenditures

4,030                          (4,030) 3,756                          (3,756)

7,786	(7,786)

6,418	6,418

Other financing sources (uses): Transfers in
Transfers out
Total other financing sources (uses)

Changes in fund balances

Fund balances (deficits), beginning of year

6,418	6,418

1,380	1,380

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	$	7,798	$	7,798

Page 110

Career Technical Education

Budget	Actual

Variance -Positive (Negative)

Totals

Non-GAAP Budget	Actual

Variance -Positive (Negative)

$	$	296,951	$

296,951

296,951	$

296,951

$         2,133,976 1,185,312 607,848 3,927,136

$         2,133,976 1,185,312 607,848 3,927,136

190,000

190,000

(190,000)

97,798 1,012

60

46,172

145,042

151,909

92,202 (1,012)

(60)

(46,172)

44,958

341,909

2,293,633

50,000

575,000 150,000

3,068,633

(3,068,633)

1,818,470 561,479 145,551 8,108 88,511 706,052 222,410

60,908 21,799 3,633,288

293,848

475,163 (561,479) (95,551) (8,108) (88,511) (131,052) (72,410)

(60,908) (21,799) (564,655)

3,362,481

260                                260 (260)                             (260)

(190,000)	151,909	341,909	(3,068,633)	293,848	3,362,481

(156,800)	(156,800)	662,549	662,549

14,279	14,279

$	(190,000)	$	(4,891)	$	185,109	$	(3,068,633)	$	970,676	$	4,039,309

Page 111

(This page intentionally left blank)

Page 112

DEBT SERVICE FUND

Debt Service - to account for the accumulation of resources for, and the payment of, long-term debt principal, interest and related costs.

Page 113

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR DEBT SERVICE FUND YEAR ENDED JUNE 30, 2019

Debt Service

Revenues: Other local Property taxes
Federal aid, grants and reimbursements Total revenues

Budget	Actual

$                                    $              13,474 1,088,625
182,266 1,284,365

Variance -Positive (Negative)

$              13,474 1,088,625 182,266 1,284,365

Expenditures: Debt service -
Principal retirement Interest and fiscal charges
Total expenditures

Changes in fund balances

720,000 980,000 1,700,000

(1,700,000)

720,000 555,832 1,275,832

8,533

424,168 424,168

1,708,533

Fund balances, beginning of year	208,752	208,752

Fund balances (deficits), end of year	$	(1,700,000)	$	217,285	$	1,917,285

Page 114

CAPITAL PROJECTS FUNDS

Unrestricted Capital Outlay - to account for transactions relating to the acquisition of capital items.

Adjacent Ways - to account for monies received to finance improvements of public ways adjacent to school property.

Gifts and Donations - Capital - to account for gifts and donations to be expended for capital acquisitions.

Condemnation - to account for monies received from proceeds from sales by condemnation or right-of-way settlements.

Emergency Deficiencies Correction - to account for monies received from the School Facilities Board that are used to correct deficiencies in square footage and in quality of facilities and equipment.

Building Renewal Grant - to account for building renewal grant monies requested from the School Facilities Board that are used for infrastructure or for major upgrades, repairs, or renovations to areas, systems, or buildings that will maintain or extend their useful life.

New School Facilities - to account for monies received from the School Facilities Board that are used to purchase land, to construct new school buildings, and related architectural and engineering fees.

Page 115

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS
JUNE 30, 2019

ASSETS
Cash and investments Property taxes receivable
Due from governmental entities Due from other funds
Prepaid items Total assets

Unrestricted Capital Outlay

$
7,411 58,333 208,164 7,280
$	281,188

Adjacent Ways

$	241,015

$	241,015

Gifts and Donations -Capital

$	686

$	686

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
Deferred inflows of resources:
Unavailable revenues - property taxes	$	4,808	$	$

Fund balances: Nonspendable Restricted
Total fund balances

7,280 269,100 276,380

241,015                                686 241,015                                686

Total liabilities, deferred inflows of resources
and fund balances	$	281,188	$	241,015	$	686

Page 116

Emergency Deficiencies
Condemnation	Correction

New School
Facilities	Totals

$	23	$	3	$	34	$

$	23	$	3	$	34	$

241,761 7,411 58,333 208,164 7,280 522,949

$	$	$	$	4,808

7,280 23	3	34	510,861 23	3	34	518,141

$	23	$	3	$	34	$	522,949

Page 117

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -NON-MAJOR CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2019

Revenues: Other local Property taxes
State aid and grants Total revenues

Unrestricted Capital Outlay

$	 15,618 401,790 200,512 617,920

Adjacent Ways

$                4,822 2,729

7,551

Gifts and Donations -Capital

$	13

13

Expenditures: Capital outlay Debt service -
Principal retirement Interest and fiscal charges
Total expenditures

547,258

78,863 23,672 649,793

Excess (deficiency) of revenues over expenditures	(31,873)	7,551	13

Other financing sources (uses): Capital lease agreements
Total other financing sources (uses)

136,996 136,996

Changes in fund balances

Fund balances, beginning of year

105,123

193,094

7,551	13

233,464	673

Increase (decrease) in reserve for prepaid items	(21,837)

Fund balances, end of year	$	276,380	$	241,015	$	686

Page 118

Emergency Deficiencies
Condemnation	Correction

New School
Facilities	Totals

$	$	$	1	$	 20,454 404,519 200,512
1	625,485

547,258

78,863 23,672 649,793

1	(24,308)

136,996 136,996

1	112,688

23	3	33	427,290

(21,837)

$	23	$	3	$	34	$	518,141

Page 119

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
ALL CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2019

Revenues: Other local Property taxes
State aid and grants Total revenues

Unrestricted Capital Outlay

Non-GAAP Budget	Actual

$	$	 15,618 401,790 200,512 617,920

Variance -Positive (Negative)

$	 15,618 401,790 200,512 617,920

Expenditures: Capital outlay Debt service -
Principal retirement Interest and fiscal charges
Total expenditures

Changes in fund balances

423,636

78,863 23,672 526,171

(526,171)

410,262

78,863 23,672 512,797

105,123

13,374

13,374

631,294

Fund balances (deficits), beginning of year

Increase (decrease) in reserve for prepaid items

193,094

(21,837)

193,094

(21,837)

Fund balances (deficits), end of year	$	(526,171)	$	276,380	$	802,551

Page 120

Adjacent Ways

Budget	Actual

Variance -Positive (Negative)

Gifts and Donations - Capital

Budget	Actual

Variance -Positive (Negative)

$	$	4,822	$	4,822	$	$	13	$	13 2,729                             2,729

7,551	7,551	13	13

50,000	50,000

50,000	50,000

7,551	7,551	(50,000)	13	50,013

233,464	233,464	673	673

$	$	241,015	$	241,015	$	(50,000)	$	686	$	50,686

(Continued)

Page 121

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
ALL CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2019

Condemnation

Revenues: Other local Property taxes
State aid and grants Total revenues

Budget	Actual

$	$

Variance -Positive (Negative)

$

Expenditures: Capital outlay Debt service -
Principal retirement Interest and fiscal charges
Total expenditures

Changes in fund balances

Fund balances (deficits), beginning of year	23	23

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	$	23	$	23

Page 122

Emergency Deficiencies Correction	Building Renewal Grant

Variance -Positive
Budget	Actual	(Negative)	Budget

Variance -Positive
Actual	(Negative)

$	$	$	$	$	$

1,280,725

1,280,725

(1,280,725)

(1,280,725)

(1,280,725)

(1,280,725)

3	3	(103,450)	(103,450)

$	$	3	$	3	$	$	(1,384,175)	$	(1,384,175)

(Continued)

Page 123

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
ALL CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2019

New School Facilities

Revenues: Other local Property taxes
State aid and grants Total revenues

Budget	Actual

$	$	1

1

Variance -Positive (Negative)

$	1

1

Expenditures: Capital outlay Debt service -
Principal retirement Interest and fiscal charges
Total expenditures

Changes in fund balances	1	1

Fund balances (deficits), beginning of year	33	33

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	$	34	$	34

Page 124

Totals

Non-GAAP Budget	Actual

Variance -Positive (Negative)

$	$	 20,454	$ 404,519 200,512 625,485

20,454 404,519 200,512 625,485

473,636

78,863 23,672 576,171

(576,171)

1,690,987

78,863 23,672 1,793,522

(1,168,037)

(1,217,351)

(1,217,351)

(591,866)

323,840

(21,837)

323,840

(21,837)

$	(576,171)	$	(866,034)	$	(289,863)

Page 125

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Page 126

AGENCY FUNDS

Student Activities - to account for monies raised by students to finance student clubs and organizations but held by the District as an agent.

Employee Withholding - to account for voluntary deductions temporarily held by the District as an agent.

Page 127

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS YEAR ENDED JUNE 30, 2019

Beginning
Balance	Additions	Deductions

Ending Balance

STUDENT ACTIVITIES

Assets

Cash and investments

Total assets

Liabilities

Due to student groups

Total liabilities

$	130,502	$

$	130,502	$

$	130,502	$

$	130,502	$

210,380	$

210,380	$

210,380	$

210,380	$

263,901	$	76,981

263,901	$	76,981

263,901	$	76,981

263,901	$	76,981

EMPLOYEE WITHHOLDING

Assets

Cash and investments

Total assets

Liabilities

Deposits held for others

Total liabilities

$	4,654	$

$	4,654	$

$	4,654	$

$	4,654	$

$	4,654	$

$	4,654	$

$	4,654	$

$	4,654	$

TOTAL AGENCY FUNDS

Assets

Cash and investments

Total assets

Liabilities

Deposits held for others Due to student groups

Total liabilities

$	135,156	$

$	135,156	$

$		4,654	$ 130,502

$	135,156	$

210,380	$

210,380	$

$ 210,380

210,380	$

268,555	$	76,981

268,555	$	76,981

4,654	$

263,901	76,981

268,555	$	76,981

Page 128

STATISTICAL SECTION

The statistical section presents financial statement trends as well as detailed financial and operational information not available elsewhere in the report. The statistical section is intended to enhance the reader’s understanding of the information presented in the financial statements, notes to the financial statements, and other supplementary information presented in this report. The statistical section is comprised of the five categories of statistical information presented below.

Financial Trends
These schedules contain information on financial trends to help the reader understand how the District’s financial position and financial activities have changed over time.

Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the District’s ability to generate revenue.

Debt Capacity
These schedules present information to help the reader evaluate the District’s current levels of outstanding debt as well as assess the District’s ability to make debt payments and/or issue additional debt in the future.

Demographic and Economic Information
These schedules present various demographic and economic indicators to help the reader understand the environment in which the District’s financial activities take place and to help make comparisons with other school districts.

Operating Information
These schedules contain information about the District’s operations and various resources to help the reader draw conclusions as to how the District’s financial information relates to the services provided by the District.

Note: For locally assessed property (i.e., excluding mines, utilities, etc.) Proposition 117, approved by voters in 2012, amended the Arizona Constitution to require that all property taxes after fiscal year 2014-15 be based upon property values limited to five percent in annual growth. The aggregate assessed value of all taxable properties within a taxing jurisdiction (i.e., after applying assessment ratios based on the use of a property), including property values with a growth limit, is currently referred to as net limited assessed value and formerly as primary assessed value. In accordance with Proposition 117, this value is used for all taxing purposes beginning fiscal year 2015-16. Aggregate assessed value without a growth limit is currently referred to as net full cash assessed value and formerly as secondary assessed value. This remains the value utilized for determining debt capacity limits.

Page 129

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Page 130

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (Accrual basis of accounting)

Fiscal Year Ended June 30

Net Position:

Net investment in capital assets Restricted
Unrestricted Total net position

Net Position:
Net investment in capital assets Restricted
Unrestricted Total net position

2019

$      14,622,454 1,716,069
(11,674,011) $	4,664,512

2014

$	13,790,926 1,460,282 2,272,614
$	17,523,822

2018

$      13,123,724 1,405,612
(12,144,828) $	2,384,508

2013

$	13,587,558 1,542,118 2,730,800
$	17,860,476

2017

$      12,982,690 849,448
(12,518,035) $	1,314,103

2012

$	13,927,904 1,485,356 3,885,916
$	19,299,176

2016

$      13,018,852 1,482,005
(12,952,805) $	1,548,052

2011

$	10,685,283 1,677,711 4,556,263
$	16,919,257

2015

$      13,236,747 1,526,552
(11,505,564) $	3,257,735

2010

$	 9,639,277 1,409,409 6,353,513
$	17,402,199

Source: The source of this information is the District's financial records.

Note: The provisions of Governmental Accounting Standards Board (GASB) Statement No. 68 were adopted in fiscal year 2015. The standard required the recognition of net pension liabilities which resulted in decreases in the unrestricted net position at fiscal year end.

Page 131

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE
LAST TEN FISCAL YEARS (Accrual basis of accounting)

Fiscal Year Ended June 30

Expenses Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Interest on long-term debt
Total expenses

2019

$         9,969,533 1,661,032 2,354,152 1,943,774 804,490 798,546 606,992 18,138,519

2018

$         9,897,639 1,937,400 2,086,324 1,754,369 656,731 742,609 637,043 17,712,115

2017

$         9,324,714 1,698,074 2,145,503 1,738,247 669,216 945,803 659,885 17,181,442

2016

$       10,021,236 1,584,374 2,234,179 1,535,988 501,094 873,531 666,341 17,416,743

2015

$         9,957,570 1,243,850 2,069,735 1,639,384 704,817 852,547 661,261 17,129,164

Program Revenues Charges for services:
Instruction
Operation of non-instructional services Other activities
Operating grants and contributions Capital grants and contributions
Total program revenues

556,208 673,389 79,659 1,563,682 1,377,681 4,250,619

527,338 587,063 42,414 1,644,495 102,690 2,904,000

729,098 941,811 58,618 1,083,363 32,980 2,845,870

659,322 927,073 9,319 846,658 95,214 2,537,586

734,265 1,024,731 7,133 786,528 48,736 2,601,393

Net (Expense)/Revenue	$	(13,887,900)	$	(14,808,115)	$	(14,335,572)	$	(14,879,157)	$	(14,527,771)

Source: The source of this information is the District's financial records.

Note: The provisions of the Governmental Accounting Standards Board (GASB) Statement No. 34 were adopted in fiscal year 2001 therefore only six years are shown.

(Continued)

Page 132

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE
LAST TEN FISCAL YEARS (Accrual basis of accounting)

Fiscal Year Ended June 30

Expenses Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Interest on long-term debt
Total expenses

2014

$         9,366,070 1,071,992 2,014,582 1,501,218 664,236 767,742 682,186 16,068,026

2013

$         8,767,736 1,090,665 1,901,848 1,356,566 658,550 735,868 702,586 15,213,819

2012

$         7,987,861 1,164,971 1,948,137 1,532,044 731,315 758,700 723,586 14,846,614

2011

$         7,352,384 1,128,476 1,901,768 1,164,884 710,209 651,310 932,029 13,841,060

2010

$         6,734,215 1,136,111 1,680,781 1,078,542 633,464 517,588
60,124 11,840,825

Program Revenues Charges for services:
Instruction
Operation of non-instructional services Other activities
Operating grants and contributions Capital grants and contributions
Total program revenues

450,877 793,597 9,281 963,876 35,314 2,252,945

498,080 754,893 20,507 805,290 63,798 2,142,568

399,354 719,384 24,632 1,257,574 3,814,031 6,214,975

506,574 690,668 275 1,256,895 27,437 2,481,849

320,529 480,402 108,670 1,084,317 15,363 2,009,281

Net (Expense)/Revenue	$	(13,815,081)	$	(13,071,251)	$	(8,631,639)	$	(11,359,211)	$	(9,831,544)

Source: The source of this information is the District's financial records.

(Concluded)

Page 133

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 GENERAL REVENUES AND TOTAL CHANGES IN NET POSITION
LAST TEN FISCAL YEARS (Accrual basis of accounting)

Fiscal Year Ended June 30

2019	2018	2017	2016	2015

Net (Expense)/Revenue	$	(13,887,900)	$	(14,808,115)	$	(14,335,572)	$	(14,879,157)	$     (14,527,771)

General Revenues: Taxes:
Property taxes, levied for general purposes Property taxes, levied for debt service Property taxes, levied for capital outlay
Investment income Unrestricted county aid Unrestricted state aid
Total general revenues

6,669,995 1,084,397 400,737 45,840 440,970 7,525,965 16,167,904

6,681,968 1,165,152 598,655 30,270 441,925 6,915,326 15,833,296

7,000,432 158,718

25,268 414,860 6,416,947 14,016,225

6,026,983 1,135,210 147,642 16,399 402,109 6,323,234 14,051,577

5,311,469 930,045 51,070 11,058 466,615 6,569,926 13,340,183

Changes in Net Position	$	2,280,004	$	1,025,181	$	(319,347)	$	(827,580)	$	(1,187,588)

Source: The source of this information is the District's financial records.

Note:	The provisions of the Governmental Accounting Standards Board (GASB) Statement No. 34 were adopted in fiscal year 2001 therefore only six years are shown.

(Continued)

Page 134

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 GENERAL REVENUES AND TOTAL CHANGES IN NET POSITION
LAST TEN FISCAL YEARS (Accrual basis of accounting)

Fiscal Year Ended June 30

2014	2013	2012	2011	2010

Net (Expense)/Revenue	$	(13,815,081)	$	(13,071,251)	$	(8,631,639)	$	(11,359,211)	$	(9,831,544)

General Revenues: Taxes:
Property taxes, levied for general purposes Property taxes, levied for debt service Property taxes, levied for capital outlay
Investment income Unrestricted county aid Unrestricted state aid Unrestricted federal aid
Total general revenues

5,676,670 937,675 14,205 12,343 479,603 6,357,931

13,478,427

5,067,886 1,005,109 14,862 30,630 336,894 5,177,170

11,632,551

5,084,933 1,031,717 117 24,835 244,435 4,625,521

11,011,558

4,619,548 1,172,518 2,965 46,539 202,339 4,491,717 340,643 10,876,269

4,626,466 918,273

89,188 194,609 4,405,999 714,486 10,949,021

Changes in Net Position	$	(336,654)	$	(1,438,700)	$	2,379,919	$	(482,942)	$	1,117,477

Source: The source of this information is the District's financial records.

(Concluded)

Page 135

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 FUND BALANCES - GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting)

Fiscal Year Ended June 30

General Fund: Nonspendable Unassigned

2019

$		27,129	$ 2,078,216

2018

$ 2,411,909

2017

$ 2,461,754

2016

$ 1,764,369

2015

2,316,261

Total General Fund	 $	2,105,345   $	2,411,909   $	2,461,754   $	1,764,369   $	2,316,261 

All Other Governmental Funds: Nonspendable
Restricted Unassigned
Total all other governmental funds

$		38,197	$ 1,648,867
(1,540,433)
$	146,631	$

48,805	$ 1,331,552
(312,809) 1,067,548	$

$ 849,448
(158,902) 690,546	$

$ 1,447,160
(27,721) 1,419,439	$

1,512,128 (89,656)
1,422,472

(Continued)

Page 136

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 FUND BALANCES - GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting)

General Fund: Nonspendable Unassigned Reserved Unreserved
Total General Fund

All Other Governmental Funds: Restricted
Unassigned Unreserved, reported in:
Special revenue funds Capital projects funds Debt service fund
Total all other governmental funds

2014

$		$ 2,474,660

$	2,474,660	$

$	1,448,527	$ (101,347)

$	1,347,180	$

2013

$ 2,495,796

2,495,796	$

1,527,268	$

1,527,268	$

2012

$ 3,707,704

3,707,704	$

1,468,385	$

1,468,385	$

2011

203,440 4,616,782

4,820,222

4,107,461

4,107,461

2010

$

104,348 4,169,785
$	4,274,133

$

1,180,953 14,627,820 438,653
$	16,247,426

Source: The source of this information is the District's financial records.

Note: The provisions of the Governmental Accounting Standards Board (GASB) Statement No. 54 were adopted in fiscal year 2011. The standard replaces the previous reserved and unreserved fund balance categories with the following five fund balance classifications: nonspendable, restricted, committed, assigned, and unassigned fund balance.

(Concluded)

Page 137

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 GOVERNMENTAL FUNDS REVENUES LAST TEN FISCAL YEARS (Modified accrual basis of accounting)

Fiscal Year Ended June 30

Federal sources: Federal grants
National School Lunch Program Total federal sources
State sources:
State equalization assistance State grants
School Facilities Board Other revenues
Total state sources Local sources:
Property taxes County aid
Food service sales Investment income Other revenues
Total local sources Total revenues

2019

$	627,782	$ 162,332 790,114

6,377,768 37,115

1,148,197 7,563,080

8,180,770 440,970 392,185 45,840 1,722,061 10,781,826
$	19,135,020	$

2018

574,897	$ 191,751 766,648

5,864,154 270,653

1,052,112 7,186,919

8,421,511 441,925 356,733 30,270 1,247,165 10,497,604
18,451,171	$

2017

715,129	$ 224,829 939,958

5,509,587 23,539

907,360 6,440,486

7,215,838 414,860 357,290 25,268 1,491,086 9,504,342
16,884,786	$

2016

616,727 211,419 828,146

5,307,077 25,250 8,417 1,016,157 6,356,901

7,215,407 402,109 347,041 16,399 1,328,732 9,309,688 16,494,735

2015

$	592,537 192,259 784,796

5,809,987 10,860

798,610 6,619,457

6,637,180 466,615 330,297 11,038 1,436,789 8,881,919
$	16,286,172

(Continued)

Page 138

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 GOVERNMENTAL FUNDS REVENUES LAST TEN FISCAL YEARS (Modified accrual basis of accounting)

Federal sources: Federal grants
State Fiscal Stabilization (ARRA) Education Jobs
National School Lunch Program Total federal sources
State sources:
State equalization assistance State grants
School Facilities Board Other revenues
Total state sources Local sources:
Property taxes County aid
Food service sales Investment income Other revenues
Total local sources Total revenues

2014

$	666,289	$

195,319 861,608

5,541,143 5,638

816,788 6,363,569

6,537,158 479,603 344,596 12,343 932,159 8,305,859
$	15,531,036	$

2013

627,299	$

183,383 810,682

4,671,239 1,024 57,382 505,931 5,235,576

6,094,262 336,894 355,780 30,630 917,700 7,735,266
13,781,524	$

2012

803,248	$

150,475 150,126 1,103,849

4,119,965 10,687 3,799,345 505,556 8,435,553

5,865,771 244,435 350,232 24,835 950,862 7,436,135
16,975,537	$

2011

1,393,012 85,945

139,300 1,618,257

4,066,132 558,364

1,956 4,626,452

5,794,132 202,339 362,348 46,539 835,169 7,240,527 13,485,236

2010

$             650,149 714,486

117,030 1,481,665

3,856,443 4,427

421,539 4,282,409

5,598,296 194,609 369,979 89,188 867,696 7,119,768
$	12,883,842

Source: The source of this information is the District's financial records.

(Concluded)

Page 139

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO LAST TEN FISCAL YEARS (Modified accrual basis of accounting)

Fiscal Year Ended June 30

2019	2018	2017	2016	2015

Expenditures: Current -
Instruction

Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -

Interest and fiscal charges Principal retirement
Total expenditures

Expenditures for capitalized assets

$	 9,738,592	$ 1,733,802 2,364,181 1,663,898
665,112 789,213 2,052,317

606,992 901,911
$	20,516,018	$

$	1,593,498	$

9,351,122	$ 1,947,450 2,002,160 1,717,600
544,254 706,785 705,582

637,043 832,992
18,444,988	$

320,727	$

8,420,627 1,641,512 2,053,271 1,685,755 590,594 911,093 491,841

659,885 753,170 17,207,748

235,619

$         9,079,366        $ 1,547,524 2,109,302 1,498,913
412,740 839,515 678,333

666,341 630,626
$	17,462,660	$

$	479,189	$

8,820,174 1,192,583 1,960,115 1,583,821 597,598 827,763 175,964

661,261 550,000 16,369,279

41,839

Debt service as a percentage of

noncapital expenditures	8%	8%	8%	8%	7%

Source: The source of this information is the District's financial records. Notes:

(Continued)

Page 140

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO LAST TEN FISCAL YEARS (Modified accrual basis of accounting)

Fiscal Year Ended June 30

2014	2013	2012	2011	2010

Expenditures: Current -
Instruction

Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -

Interest and fiscal charges Principal retirement
Bond issuance costs Total expenditures

Expenditures for capitalized assets

$          8,611,301 1,050,679 1,902,719 1,456,686 587,749
754,904 161,036

682,186 525,000

$	15,732,260

$	91,413

$	 8,077,648	$ 1,081,336 1,781,396 1,320,272
577,018 713,944 170,349

702,586 510,000

$	14,934,549	$

$	148,442	$

7,246,054 1,142,045 1,833,652 1,288,065 631,667 734,828 6,503,794

723,586 420,000

20,523,691

6,378,149

$          6,789,084 1,095,676 1,761,103 1,210,658 618,369
632,312 11,928,973

932,029 210,000

$	25,178,204

$	11,770,328

$          6,094,038 1,126,222 1,652,044 1,123,431 545,268
483,339 613,115

56,475 1,160,000 203,800
$	13,057,732

$	475,506

Debt service as a percentage of

noncapital expenditures	8%	8%	8%	9%	10%

Source: The source of this information is the District's financial records.

(Concluded)

Page 141

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

OTHER FINANCING SOURCES AND USES AND NET CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting)

Fiscal Year Ended June 30

2019	2018	2017	2016	2015

Excess (deficiency) of

revenues over expenditures	$	(1,380,998)	$	6,183	$	(322,962)	$	(967,925)	$	(83,107)

Other financing sources (uses): Capital lease agreements Transfers in
Transfers out Insurance Recoveries
Total other financing sources (uses)

136,996 260
(260)

136,996

216,295 2,500
(2,500) 12,629
228,924

172,059 204,286 (204,286)
33,997

206,056

413,000

413,000

Changes in fund balances	$	(1,244,002)	$	235,107	$	(116,906)	$	(554,925)	$	(83,107)

2014	2013	2012	2011	2010

Excess (deficiency) of

revenues over expenditures	$	(201,224)	$	(1,153,025)	$	(3,548,154)	$	(11,692,968)	$	(173,890)

Other financing sources (uses): Issuance of school improvement bonds Premium on sale of bonds
Transfers in Transfers out
Total other financing sources (uses)

1,684

(1,684)

5,702

(5,702)

16,805

(16,805)

14,000,000 200,151 37,720
(37,720)

14,200,151

Changes in fund balances	$	(201,224)	$	(1,153,025)	$	(3,548,154)	$	(11,692,968)	$	14,026,261

Source: The source of this information is the District's financial records.

Page 142

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

NET LIMITED ASSESSED VALUE AND FULL CASH VALUE OF TAXABLE PROPERTY BY CLASS LAST TEN FISCAL YEARS

Fiscal Year

Class	2019	2018	2017	2016	2015

Commercial, Industrial, Utilities and Mining Agricultural and Vacant
Residential (Owner Occupied) Residential (Rental)
Historical Property

Total

$	 9,027,166	$ 16,235,235
146,489,176 19,102,134 56,408

$	190,910,119	$

8,260,222	$ 17,442,233
140,542,386 17,950,652 56,882

184,252,375	$

8,979,496	$ 17,900,204
136,891,998 16,851,329 56,506

180,679,533	$

6,952,635	$ 19,319,855
130,843,020 16,143,404 55,132

173,314,046	$

6,681,647 20,147,121 128,288,690 13,509,506 53,963

168,680,927

Gross Full Cash Value

Ratio of Net Limited Assessed Value to Gross Full Cash Value

Total Direct Rate

$ 2,010,534,115

9%

5.42

$ 1,948,672,789

9%

5.76

$ 1,951,500,164

9%

5.23

$ 1,790,361,226

10%

5.30

$ 1,721,553,223

10%

5.03

Fiscal Year

Class	2014	2013	2012	2011	2010

Commercial, Industrial, Utilities and Mining Agricultural and Vacant
Residential (Owner Occupied) Residential (Rental)
Historical Property

Total

$	 6,174,230	$ 21,481,242
134,604,074 7,841,097 51,706

$	170,152,349	$

6,167,792	$ 24,784,313
145,580,914 7,546,474 55,623

184,135,116	$

6,240,606	$ 27,443,331
161,144,061 4,498,664 57,482

199,393,579	$

6,150,101	$ 29,604,611
179,734,775 4,792,568 59,414

220,341,469	$

7,178,113 28,972,009 178,059,958 4,114,000 57,243

218,381,323

Gross Full Cash Value

Ratio of Net Limited Assessed Value to Gross Full Cash Value

Total Direct Rate

$ 1,728,748,371

10%

5.00

$ 1,861,329,633

10%

4.15

$ 2,003,464,671

10%

3.80

$ 2,235,227,040

10%

3.35

$ 2,324,387,909

9%

3.18

Source: The source of this information is the State and County Abstract of the Assessment Roll, Arizona Department of Revenue.

Note: On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and secondary taxes are levied against the net limited assessed value. Primary taxes are used for general District operations. Secondary taxes are used to service District bonded debt requirements and other voter-approved overrides.

Page 143

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

NET FULL CASH ASSESSED VALUE OF TAXABLE PROPERTY BY CLASS LAST TEN FISCAL YEARS

Fiscal Year

Class	2019	2018	2017	2016	2015

Commercial, Industrial, Utilities and Mining Agricultural and Vacant
Residential (Owner Occupied) Residential (Rental)
Historical Property

Total

Gross Full Cash Value

$	 9,149,916     $ 16,926,999
150,781,361 19,962,110 56,408

$	196,876,794     $

$     2,010,534,115     $

8,292,720     $ 18,085,076
145,543,278 18,698,741 56,882

190,676,697     $

1,948,672,789     $

9,126,623     $ 18,304,844
146,065,495 18,063,663 58,174

191,618,799     $

1,951,500,164     $

6,979,059     $ 19,634,181
132,786,136 16,499,727 55,132

175,954,235     $

1,790,361,226     $

6,691,415 20,403,238 128,424,010 13,647,729 53,963

169,220,355

1,721,553,223

Ratio of Net Full Cash Assessed Value to Gross Full Cash Value Estimated Net Full Cash Value
Total Direct Rate

10% 1,816,489,627
5.42

10% 1,754,806,269
5.76

10% 1,761,733,686
5.23

10% 1,592,380,593
5.30

10% 1,522,842,039
5.03

Fiscal Year

Class	2014	2013	2012	2011	2010

Commercial, Industrial, Utilities and Mining Agricultural and Vacant
Residential (Owner Occupied) Residential (Rental)
Historical Property

Total

Gross Full Cash Value

$	 6,306,055     $ 21,681,196
134,725,227 7,944,854 52,419

$	170,709,751     $

$     1,728,748,371     $

6,183,034     $ 25,334,411
145,689,889 7,614,102 56,623

184,878,059     $

1,861,329,633     $

6,334,940     $ 28,827,259
161,412,859 4,506,267 66,917

201,148,242     $

2,003,464,671     $

6,371,777     $ 34,734,376
181,495,989 4,846,850 60,029

227,509,021     $

2,235,227,040     $

7,481,560 37,914,344 189,234,195 4,406,724 61,884

239,098,707

2,324,387,909

Ratio of Net Full Cash Assessed Value to Gross Full Cash Value Estimated Net Full Cash Value
Total Direct Rate

10% 1,535,270,185
5.00

10% 1,661,944,889
4.15

10% 1,814,293,135
3.80

10% 2,055,576,149
3.35

10% 2,157,295,115
3.18

Source: The source of this information is the State and County Abstract of the Assessment Roll, Arizona Department of Revenue.

Note: On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and secondary taxes are levied against the net limited assessed value. The net full cash assessed value is used for determining the District's bonding capacity and as the ceiling for net limited assessed value.

Page 144

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 PROPERTY TAX ASSESSMENT RATIOS LAST TEN FISCAL YEARS

Fiscal Year

Class	2019	2018	2017	2016	2015

Commercial, Industrial, Utilities and Mining Agricultural and Vacant
Residential (Owner Occupied) Residential (Rental)
Railroad, Private Cars and Airlines

18 %	18 %	18 %	19 %	19 % 15	15	15	16	16
10                       10                       10                      10                      10 10                       10                       10                      10                      10
14	15	14	15	16

Fiscal Year

Class	2014	2013	2012	2011	2010

Commercial, Industrial, Utilities and Mining Agricultural and Vacant
Residential (Owner Occupied) Residential (Rental)
Railroad, Private Cars and Airlines

20 %	20 %	20 %	21 %	22 % 16	16	16	16	16
10                       10                       10                      10                      10 10                       10                       10                      10                      10
15	15	15	17	18

Source: The source of this information is the State and County Abstract of the Assessment Roll, Arizona Department of Revenue.

Note: Additional classes of property exist, but do not amount to a significant portion of the District's total valuation, therefore they are not included on this schedule.

Page 145

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS

Overlapping Rates

Fiscal Year
Ended	State

County	Flood Free            Control

Community College

Fire District

Central	City Arizona              of

Pima	Tanque	District Direct Rates County       Verde Valley

June 30 Equalization	County

2019	0.47	4.76 2018	0.49	5.16 2017	0.50	4.99 2016	0.51	5.09 2015	0.51	4.98 2014                     0.51               4.45 2013                     0.47               4.20 2012	0.43	4.20 2011	0.36	4.06
2010	0.33	4.02

Library

0.52 0.51 0.52 0.52 0.44 0.38 0.35 0.35 0.31
0.26

District

0.33 0.31 0.33 0.31 0.30 0.26 0.26 0.26 0.26
0.26

District

1.40 1.39 1.37 1.37 1.33 1.29 1.17 1.11 1.08
1.08

Assistance

0.04 0.05 0.05 0.05 0.05 0.05 0.04 0.04 0.04
0.04

Water	Tucson	JTED

0.14	1.48	0.05 0.14	1.43	0.05 0.14	1.60	0.05 0.14	1.60	0.05 0.14	1.46	0.05 0.14               1.43               0.05 0.10               1.26               0.05 0.10	1.16	0.05 0.10	0.96	0.05
0.10	0.93	0.05

F.D.	Primary

1.30	3.92 1.90	4.23 1.20	4.22 1.06	3.72 1.00	3.89 1.41               3.80 1.26               3.00 1.15	2.72 1.27	2.37
1.16	2.37

Secondary	Total

1.50	5.42 1.53	5.76 1.01	5.23 1.58	5.30 1.14	5.03 1.20               5.00 1.15	4.15 1.08	3.80 0.98	3.35
0.81	3.18

Source: The source of this information is the Property Tax Rates and Assessed Values, Arizona Tax Research Foundation.

Page 146

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 PRINCIPAL PROPERTY TAXPAYERS
CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR

2019
Percentage of District's Net

2010
Percentage of District's Net

Net Limited Assessed
Taxpayer	Valuation

Limited Assessed Valuation

Net Full Cash Assessed Valuation

Full Cash Assessed Valuation

Unisource Energy Group Southwest Gas Company Epidaurus
De Lage Laden Financial Services Inc. Arizona Sunshine Ranches
Landmark Title - TR 18152 Galiuro TR

$	 3,789,817 2,485,390 1,427,539 1,087,646 1,086,419
519,268 461,670

1.99     % $	% 1.30                           2,319,257                     0.97 0.75
0.57
0.57	3,897,309	1.63 0.27
0.24

Schifman Ronald Bruce & Stolov Sheila D Revoc TR Qwest Communications
MPL Communications Inc Tucson Electric Power 49er Country Club
Private Individual Private Individual Private Individual

435,600	0.23 385,419	0.20 376,778	0.20

3,419,112                     1.43 765,116                     0.32 3,108,283                     1.30 478,197                     0.20 406,468                     0.17 286,918                     0.12 286,918                     0.12

Private Individual
$	12,055,546

263,009	0.11 6.32     %	$	15,230,587	6.37 %

Source: The source of this information is the Pima County Assessor's records.

Note: On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and secondary taxes are levied against the net limited assessed value.

Page 147

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS

Fiscal

Year	Taxes Levied

Ended	for the

Collected within the Fiscal Year of the Levy

Percentage

Collections in

Subsequent

Collected to the End

of the Current Fiscal Year

Percentage

June 30	Fiscal Year	Amount	of Levy	Fiscal Years	Amount(2)	of Levy

2019	$	8,155,327 2018                       8,503,666 2017                       7,279,090 2016                       7,281,966 2015                       6,566,441 2014                       6,614,750 2013                       6,005,212 2012                       5,929,011 2011                       5,814,400
2010	5,533,500

$      8,029,961                    98.46 % 8,352,798                    98.23 7,100,175                    97.54 7,069,703                    97.09 6,358,769                    96.84 6,360,489                    96.16 5,788,261                    96.39 5,711,044                    96.32 5,595,553                    96.24
5,303,895	95.85

N/A 142,918 147,971 202,503 202,737 240,969 209,077 216,370 217,813
228,413

$      8,029,961                      98.46 % 8,495,716                      99.91 7,248,146                      99.57 7,272,206                      99.87 6,561,506                      99.92 6,601,458                      99.80 5,997,338                      99.87 5,927,414                      99.97 5,813,366                      99.98
5,532,308	99.98

Source: The source of this information is the 2019 Pima County Treasurer's records. Notes: 1) Amounts collected are on a cash basis.
2) Unsecured personal property taxes are not included in this schedule because the dates of the monthlyrolls vary each year. On the average, 90% of unsecured property taxes are collected within 90 days after the due date.

Page 148

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS

General Obligation Bonds
Fiscal	Less:	Percentage of

Total Outstanding Debt Percentage of

Year            General Ended        Obligation
June 30	Bonds

Amounts Restricted for
Principal

Estimated
Actual Value	Per Total	(Full Cash Value)               Capita

Capital

Leases

Estimated Actual Value
Total	(Full Cash Value)

Percentage of Per	Personal
Capita	Income

2019	$ 9,190,000 2018              9,910,000 2017            10,585,000 2016            11,210,000 2015            11,785,000 2014            12,335,000 2013            13,370,000 2012            13,790,000 2011            14,000,000 2010            15,160,000

$	 229,722 225,417 124,157 811,536 782,653 853,522 914,438 890,156 776,359 459,928

8,960,278 9,684,583 10,460,843 10,398,464 11,002,347 11,481,478 12,455,562 12,899,844 13,223,641 14,700,072

0.45 %	$	543 0.50                            692 0.54                            747 0.58                            743 0.64                            786 0.66                            820 0.67                            890 0.64                            921 0.59                            945 0.63                         1,050

$ 1,296,754 1,341,669 1,283,366 1,239,477

$ 10,486,754 11,251,669 11,868,366 12,449,477 11,785,000 12,335,000 13,370,000 13,790,000 14,000,000 15,160,000

0.52 %	$	636	N/A % 0.58                            804                       0.03 0.61                            848                       0.03 0.70                            889                       0.03 0.68                            842                       0.03 0.71                            881                       0.03 0.72                            955                       0.04 0.69                            985                       0.04 0.63                         1,000                       0.04 0.65                         1,083                       0.04

Source: The source of this information is the District's financial records. Note: N/A indicates that the information is not available.

Page 149

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2019

Debt Governmental Unit	Outstanding

Estimated Percentage Applicable to School District

Estimated Amount Applicable to School District

Overlapping: Pima County
Pima Community College District City of Tucson
Subtotal, Overlapping Debt

$ 1,035,180,042 None 901,337,350

2.42 %      $     25,051,357 2.42                            None 5.93                   53,449,305 78,500,662

Direct:

Tanque Verde Unified School District No. 13	100.00	10,486,754

Total Direct and Overlapping Governmental Activities Debt	$	88,987,416

DIRECT AND OVERLAPPING GENERAL BONDED DEBT RATIOS

Net Direct General Obligation Bonded Debt

As a Percentage of Net Limited Assessed Valuation	4.70 %

Net Direct and Overlapping General Bonded Debt

Per Capita	$	5,301

As a Percentage of Net Limited Assessed Valuation                                                     45.82 % As a Percentage of Gross Full Cash Value                                                                       4.35 %

Source: The source of this information is the District's records and the State and County Abstract of the Assessment Roll, Arizona Department of Revenue and the applicable governmental unit.
Notes: 1) Estimated percentage of debt outstanding applicable to the District is calculated based on a portion of the District's net limited assessed valuation as a percentage of the net limited assessed valuation of the overlapping net limited jurisdiction.
2) Outstanding debt as of June 30, 2018 is presented for the overlapping governments as this is the most recent available information.

Page 150

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS

Class B Bond Legal Debt Margin Calculation for Fiscal Year 2019: Net full cash assessed valuation	$	196,876,794

Total Legal Debt Margin Calculation for Fiscal Year 2019: Net full cash assessed valuation	$	196,876,794

Debt limit (20% of assessed value) Debt applicable to limit
Legal debt margin

39,375,359 9,190,000
$	30,185,359

Debt limit (30% of assessed value)

Debt applicable to limit (total) Legal debt margin

59,063,038 9,190,000
$	49,873,038

Fiscal Year Ended June 30

2019	2018	2017	2016	2015

Debt Limit	$	59,063,038	$	57,203,009	$	57,485,640	$	52,786,271	$	50,766,107

Total net debt applicable to limit	9,190,000	9,910,000	10,585,000	11,210,000	11,785,000

Legal debt margin	$	49,873,038	$	47,293,009	$	46,900,640	$	41,576,271	$	38,981,107

Total net debt applicable to the limit

as a percentage of debt limit	16%	17%	18%	21%	23%

2014	2013	2012	2011	2010

Debt Limit	$	51,212,925	$	55,463,418	$	60,344,473	$	68,252,706	$	71,729,612

Total net debt applicable to limit	12,335,000	13,370,000	13,790,000	14,000,000	15,160,000

Legal debt margin	$	38,877,925	$	42,093,418	$	46,554,473	$	54,252,706	$	56,569,612

Total net debt applicable to the limit

as a percentage of debt limit	24%	24%	23%	21%	21%

Source: The source of this information is the District's financial records.
Notes: 1) The District’s general obligation bonds are subject to two limits; the Constitutional debt limit (total debt limit) on all general obligation bonds outstanding and the statutory debt limit on Class B bonds outstanding. The calculations of the debt margins are presented in detail for the current fiscal year only.
2) Prior to FY17, net bond premium was restricted by amount and not subject to the statutory debt limit. Beginning with FY17, any additional net premium used for capital projects, bond counsel, printing and preparation of offering documents, a financial advisor, paying agent costs or to pay down debt is counted against both debt limits with the exception of amounts of premium deposited into the Debt Service Fund or a refunding escrow to pay interest payments.

Page 151

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COUNTY-WIDE DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS

Personal Income
Year	Population	(thousands)

Per Capita Income

Unemployment Rate

Estimated District Population

2018	1,034,201	$ 2017	1,026,099 2016	1,013,103 2015	1,010,025 2014	1,004,516 2013                   996,554 2012                   992,394 2011                   986,081 2010                   980,263 2009	1,018,012

N/A	$	N/A 42,585,356                       41,637 40,182,115                       39,541 38,922,402                       38,536 37,198,714                       37,031 36,935,363                       37,063 35,813,670                       35,371 36,058,871                       36,335 34,360,759                       34,987 34,516,424                       33,833

4.5	%	16,500 4.5                            14,000 4.9                            14,000 6.2                            14,000 6.2                            14,000 7.0                            14,000 7.2                            14,000 9.1                            14,000 9.0                            14,000 8.3                            14,000

Sources:

Note:

The source of the "Personal Income" and "Per Capita" information is the Bureau of Economic Analysis.
The source of the "Population" and "Unemployment Rate" information from 2009 through 2010 is the University of Arizona, Eller College of Management, Economic and Business Research Center. For 2011 through 2018, the source of the information is the Arizona Office of Employment and Population Statistics. N/A indicates that the information is not available.

Page 152

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 PRINCIPAL EMPLOYERS
CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR

2019	2010

Percentage of Total
Employer	Employees	Employment

Percentage of Total
Employees	Employment

University of Arizona	11,251	2.39     % Raytheon                                                                                     9,600	2.04 State of Arizona                                                                         8,580	1.82 Davis Monthan AFB                                                                  8,406	1.78 Pima County                                                                               7,060	1.50 Tucson Unified School District                                                6,770	1.44 Wal-Mart Stores, Inc.                                                                5,500	1.17 U.S. Army Intelligence Center & Fort Huachuca                    5,477	1.16 City of Tucson                                                                           4,595	0.98 Carondelet Health Network                                                      3,860	0.82 Tucson Medical Center

Total	71,099	15.10     %

11,842	3.31 % 12,515	3.50
8,710                          2.44 7,755                          2.17

6,012	1.68 6,575	1.84 6,463	1.81 6,028	1.69 4,570	1.28 3,050	0.85

73,520	20.57 %

Total employment	471,100	357,300

Source: The source of this information is the Business Journal Book of Lists (2019) and the Arizona Daily Star (2010).

Page 153

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE
LAST TEN FISCAL YEARS

Full-time Equivalent Employees as of June 30

2019	2018	2017	2016	2015

Supervisory

Consultants/supervisors of instruction Principals
Assistant principals Total supervisory
Instruction Teachers
Other professionals (instructional) Aides
Total instruction Student Services
Librarians Technicians
Total student services Support and Administration
Service workers

Total support and administration

Total

2                            2                            4                            4                            4 4                            4                            4                            4                            4 4                            4                            2                            2                            2 10                          10                          10                          10                          10

135                        129                        127                        133                        132 10                          10                            9                            7                            1 43                          47                          55                          55                          51 188                        186                        191                        195                        184

4	4	4	4	3 3	3	1	1	1 7	7	5	5	4

83                          85                          81                          81                          78 83                          85                          81                          81                          78

288	288	287	291	276

(Continued)

Page 154

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE
LAST TEN FISCAL YEARS

2014	2013	2012	2011	2010

Supervisory

Consultants/supervisors of instruction Principals
Assistant principals Total supervisory
Instruction Teachers
Other professionals (instructional) Aides
Total instruction Student Services
Librarians Technicians
Total student services Support and Administration
Service workers

Total support and administration

Total

4	4	4	4	4 4	4	4	4	4 1	1	1	1	1 9	9	9	9	9

128                        124                        116                        109                        105 1                            1                            1                            1                            1 49                          47                          46                          44                          40 178                        172                        163                        154                        146

3	3	3	3	3 1	1	1	1	1 4	4	4	4	4

78                          78                          77                          77                          74 78                          78                          77                          77                          74

269	263	253	244	233

Source: The source of this information is District personnel records.

(Concluded)

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 OPERATING STATISTICS LAST TEN FISCAL YEARS

Fiscal
Year	Average Ended                 Daily
June 30	Membership

Operating Expenditures

Cost
per	Percentage
Pupil	Change	Expenses

Cost
per	Percentage Pupil               Change

Teaching Staff

Pupil-Teacher Ratio

Percentage of Free/Reduced Students

2019                        2,009 2018                        2,026

$     16,954,798         $      8,439 16,269,371                8,031

5.09 %     $        18,138,519         $      9,029 6.41                    17,712,115                8,743

3.27 %	188	10.7	12.0     % 3.18	186	10.9	14.0

2017	2,028 2016	1,994 2015	1,997 2014	1,915 2013	1,847 2012	1,687 2011	1,583 2010	1,500 2009	1,402

15,302,852 15,487,360 14,982,054 14,364,038 13,551,614 12,876,311 12,107,202 11,024,342 11,918,040

7,547	(2.83) 7,767                    3.53 7,502                    0.02 7,501                    2.23 7,337	(3.87) 7,633	(0.20) 7,648                    4.06 7,350                 (13.54) 8,501               #DIV/0!

17,181,442 17,416,743 17,129,164 16,068,026 15,213,819 14,846,614 13,841,060 11,840,825 12,936,508

8,474	(2.99) 8,735                    1.83 8,577                    2.23 8,391                    1.86 8,237	(6.40) 8,801                    0.65 8,744                  10.76 7,894                 (14.45) 9,227               #DIV/0!

191	10.6	15.0 195	10.2	15.0 184	10.9	15.0 178	10.8	16.0 172	10.7	15.9 163	10.3	14.1 154	10.3	41.8 146	10.3	12.0

Source: The source of this information is the District's financial records.

Note: Operating expenditures are total expenditures less debt service and capital outlay.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 CAPITAL ASSETS INFORMATION LAST TEN FISCAL YEARS

Fiscal Year Ended June 30

2019	2018	2017	2016	2015	2014	2013	2012	2011	2010

Schools Elementary
Buildings Square feet Capacity Enrollment
Middle Buildings Square feet Capacity Enrollment
High Buildings
Square feet Capacity Enrollment
Other Buildings Square feet

Administrative Buildings Square feet

Transportation Garages Buses

Athletics
Football fields Soccer fields Baseball/softball Playgrounds

23 103,660 1,100 1,157

5 57,124 450 397

11 94,194 650 581

4 10,178

1 14,425

1 22

1 4 3 3

23 103,660 1,100 1,089

5 57,124 450 367

11 94,194 650 576

4 10,178

1 14,425

1 24

1 4 3 3

23 103,660 1,100 1,089

5 57,124 450 367

11 94,194 650 576

4 10,178

1 14,425

1 23

1 4 3 3

23                         2 103,660                98,371 1,100                  1,100 1,130                  1,130

5                         1 57,124                57,124 450                     450 376                     376

11                         1 94,194                94,194 650                     650 555                     555

4                         4 10,178                10,178

1                         1 14,425                14,425

1                         1 19                       17

1	1 4	4 3	3 3	3

2                         2                         2                         2                         2 98,371                98,371                98,371                98,371                98,371 1,100                  1,100                  1,050                  1,050                  1,000 1,138                  1,087                  1,040                  1,025                     975

1                         1                         1                         1                         1 57,124                57,124                57,124                57,443                57,443 450                     450                     450                     370                     370 371                     367                     350                     340                     310

1                         1                         1                         1                         1 94,194                94,194                94,194                17,100                17,100 650                     650                     650                     230                     230 479                     449                     375                     330                     350

4                         4                         4                         1                         1 10,178                10,178                10,718                     758                     758

1                         1                         1                         1                         1 14,425                14,425                14,425                40,211                40,211

1                         1                         1                         1                         1 17                       17                       17                       17                       17

1	1	1	1	1 4	4	3	2	2 3	3	7	6	6 3	3	3	3	3

Source: The source of this information is the District's facilities records.

Note: Prior to fiscal year 2015-16, the buildings are listed by the individual site.

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