State law requires towns to issue a Comprehensive Annual Financial Report (CAFR) within six months after the close of each fiscal year. Heinfeld, Meech & Co., a certified public accounting firm, compiled Fountain Hills’ report June 30, 2017.

Here are some highlights of that audit:

Page 8: Economic outlook: Long-financial planning: Fountain Hills’ financial policies are balanced on sound financial reserves and conservative revenue growth forecasts for the foreseeable future.

Page 34: Statement of net position: These are capital assets like buildings, land, vehicles, machinery and equipment. Note: This includes revenues, less expenses, less depreciation on capital assets, which lower our net position each year. Total net position (7/30/2017): $116,959,432 – Almost $117 million. Not bad for a 29-year-old town “without a town property tax.”

Page 54: Fund balance classifications: This is money on hand in separate funds for things like vehicle replacement and capital projects. Total: $21,971,837.

Page 56: Cash and investments like treasury notes, total $21,749,746 – almost $22 million. Note: Together, fund balance classifications and cash and investments total almost $44 million.

Back to Page 54: Unassigned – $2,696,999. What is this?

Next: The amount in the rainy day fund is estimated to be about 60 days of expenditures coverage. This policy continues to require the town to internally restrict an amount to 20 percent of the average actual General Fund (GF) revenues for the preceding five years as part of its GF balance. We also set aside 10 percent of the GF for “pay-as-you-go” capital replacement expenditures for the same five years.

Please go online and read the whole report, I am sure you will not hear any of this report at the upcoming meetings.

I believe our Moody rating is still A-1. This and a percentage of our net position give us the amount of our bonding capability.