TOWN OF
CHINO VALLEY POPULAR ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2025
Town of Chino Valley, Arizona
Table of Contents Introduction
1
Community Overview
2
PAFR Award
3
Key Accomplishments
4
Financial Highlights Revenues
5
Expenses
6
Debt Obligations
7
Capital Assets
8
Simplified Financial Statements Statement of Net Position
9
Statement of Activities
10
Future Outlook
11
Citizen Engagement and Resources
12
Fred Harvey Buildings at Del Rio Springs
Fiscal Year Ended June 30, 2025
iii
Town of Chino Valley, Arizona
Introduction
Message to Our Residents Dear Residents,
What is a PAFR?
I am pleased to present the Fiscal Year 2024-25 Popular Annual Financial Report (PAFR) for the Town of Chino Valley. This report is designed to provide you with a clear, concise, and transparent overview of the Town’s financial activities, achievements, and goals. At Chino Valley we are committed to maintaining sound financial practices that ensure our community’s long-term sustainability. This report highlights the Town’s financial performance over the last fiscal year, including where your tax dollars come from and how they are spent. We have also included summaries of key initiatives and projects that demonstrate the Town’s ongoing commitment to improving the quality of life in our community. I encourage you to explore this report and learn more about how we are working to meet your needs and ensure a vibrant future for Chino Valley. Should you have any questions or if you wish to provide feedback, please do not hesitate to reach out. Your input is invaluable as we strive to serve you better. Thank you for your continued trust and support. Together, we can build on our successes and embrace the many opportunities ahead.
The Popular Annual Financial Report (PAFR) is a simplified version of the government's detailed financial report (called the Annual Comprehensive Financial Report or ACFR). Its main purpose is to display the financial information in an easy to digest format that everyone, not just accountants or finance experts, can understand. The PAFR is intended to help you stay informed and engaged by showing you how your local government is performing and how your tax dollars are being put to use to improve the community.
Sincerely,
Terri Denemy Town Manager
Chino Valley Town Council The 7 member Council is responsible for setting public policies, approving board and commission appointments, making planning and development decisions, adopting new laws, and setting the annual budget. The Council appoints the Town Manager to implement these policies and oversee daily operations. Council meetings are held at 6:00 p.m. on the 2nd and 4th Tuesday of each month. They are located at Chino Valley Town Hall, 202 N. State Route 89. All of the meetings are open to the public, with agendas and minutes available on the Town’s website at www.chinoaz.net.
Council meeting in action
Fiscal Year Ended June 30, 2025
1
Town of Chino Valley, Arizona
Community Overview
Location and Land Area Located just northwest of Prescott and surrounded by sandy-hued Gama grasses and gentle rolling hills, Chino Valley, encompassing approximately 63 square miles, is a peaceful retreat where residents and visitors can escape the big-city lifestyle and embrace outdoor adventures. Known for its vibrant restaurant scene, local microbrewery, and vineyard, Chino Valley offers unique experiences that celebrate the local flavor.
On clear nights, brilliant constellations and bright stars light up the sky, a natural spectacle visible from anywhere in town. With vast open spaces, it’s common to see locals riding horseback or offroading along Perkinsville Road, exploring the beauty of the high desert. At an elevation of 5,300 feet, Chino Valley enjoys cooler summers and mild winters with occasional snowfall. The community takes pride in its rural character, valuing relaxation and a quiet lifestyle.
History Chino Valley’s history began when Arizona was declared a U.S. Territory on February 24, 1863. Shortly after, on December 23, 1863, Fort Whipple was established near Del Rio Springs in Chino Valley, serving as the site of Arizona's first Territorial government. In May 1864, Fort Whipple moved closer to Prescott, but settlers soon began homesteading the area, marking the start of Chino Valley’s long tradition of farming and ranching.
Chino Valley landscape
Median Age
Population
49.9
13,911
Employment Rate
Bachelor’s Degree or Higher Education
46.1%
21.6%
Total Housing Units
5,754
Fiscal Year Ended June 30, 2025
2
Town of Chino Valley, Arizona
PAFR Award
Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the Town of Chino Valley for its Popular Annual Financial Report for the fiscal year ended June 30, 2024. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability, and reader appeal.
An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. The Town of Chino Valley received its first Popular Award for the fiscal year ended 2024. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA to determine its eligibility for another Award.
Click Here to View FY 2023-24 PAFR
Fiscal Year Ended June 30, 2025
3
Town of Chino Valley, Arizona Fred Harvey Buildings at Del Rio Springs
Key Accomplishments
In early 2025, the Town in partnership with the Trust for Public Land, acquired the historical Fred Harvey Farm located at Del Rio Springs, the original Territorial Capital of Arizona. The land is 23 acres in size and is within the boundaries of a future state park. The Town plans to stabilize the historical buildings on the site, preserve the land and create a unique tourism attraction for the region. Learn more about this historical effort by watching the video at the following link:
Senior Center The $721,306 kitchen remodel for the Senior Center was completed. Approximately 55% of the cost was covered by a CDBG grant.
Fred Harvey Farm Commercial. Territorial Days Other Awards The Town of Chino Valley also received the Government Finance Officers Association of the United States and Canada (GFOA) Certificate of Achievement for Excellence in Financial Reporting award for fiscal year ended June 30, 2024 and the Distinguished Budget Presentation award for fiscal year beginning July 1, 2024.
North Road 1 East Improvements This $1.5 million project included water, sewer, and roadway improvements from Juniper Drive to Perkinsville Road, extending infrastructure capacity to support future sewer service for undeveloped commercial properties.
Remodel of Town Facilities
The Town hosted a successful territorial days event in August 2024, with lots of fun, a great turnout and fireworks to top off the celebration!
The former Police and Detective buildings were remodeled to accommodate Public Works and Human Resources staff. The $590,971 renovation updated office space, conference rooms, and support areas to better meet current operational needs.
North Reed Road and Outer Loop Road Improvements Together, these projects totaled $1.2 million and included repairs to deteriorated roadway sections of North Reed Rd. and Outer Loop Rd., improving safety and extending pavement life.
Fiscal Year Ended June 30, 2025
4
Town of Chino Valley, Arizona
Revenues
The chart below illustrates the main sources and percentages of the Town’s revenues totaling $26.2 million for FY 2024-25. The Town’s primary revenue sources during FY 202425 include charges for services, transaction privilege taxes and state shared revenues. When combined, these three categories represent 88.0% of all revenue collections in FY 2024-25.
Charges for Services $4,894,047 18.7%
State-Shared Revenues $6,248,537 23.9%
Capital Grants and Contributions $1,305,874 4.9%
Transaction Privilege Taxes $11,905,452 45.5%
Other $568,410 2.2%
Operating Grants and Contributions $615,331 2.3% Investment Earnings $641,894 2.5%
The chart below presents a five-year historical comparison of the Town’s revenue growth. The decrease in state–shared revenues for FY 2024-25 was attributable to the State of Arizona transition to a flat tax system, reducing urban revenue sharing (income tax).
FY 2020-21 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000
FY 2021-22
FY 2022-23
FY 2023-24
FY 2024-25
What it Means Charges for Services are revenues (primarily water and sewer sales) collected for services rendered to the public. Transaction Privilege Taxes (TPT) are levied on retail sales, utilities, restaurants, and construction activity at 4% and short-term lodging at 8%. State-Shared Revenues consist of the Town’s portion of Arizona state income tax, TPT, and vehicle license tax revenue. Capital Contributions and Grants are dedicated for specific capital expenditures and purposes. Operating Contributions and Grants are dedicated for specific operating purposes, such as employee salaries and ongoing maintenance costs for roadways, culture and recreation, and public safety. Investment Earnings consist of interest income earned on the Town’s invested funds. Other consists of franchise tax, district specific property tax, gains on capital asset disposals and all other funds that aren’t already classified.
$2,000,000
$-
Fiscal Year Ended June 30, 2025
5
Town of Chino Valley, Arizona
Expenses
The chart below illustrates the main uses and percentages of the Town’s expenses totaling $23.2 million for FY 2024-25. The Town’s primary uses during FY 2024-25 are general government, public safety, and sewer. These three areas represent 74.3% of all expenses in FY 2024-25. Culture and Recreation Highways and $1,942,800 Streets 8.4% $2,275,324 9.8%
Public Safety $6,285,318 27.1% Health and Welfare $536,652 2.3% Water $997,783 4.3%
Interest on LongTerm Debt $214,885 0.9%
General Government $8,482,376 36.5%
Sewer $2,476,652 10.7%
The chart below presents a five-year historical comparison of the Town’s expenses. Variations between years reflect the impact of one-time COVID-19 relief funding, periods of increased investment in infrastructure and capital assets, and changes in the allocation or classification of certain expense categories. FY 2020-21 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000
$-
FY 2021-22
FY 2022-23
FY 2023-24
FY 2024-25
What it Means General Government expenses are primarily administrative consisting of Council, Town Manager, Finance, Town Clerk, Municipal Court, IT Services, Human Resources, Facilities, Fleet Maintenance, Engineering, Development Services, and all other non-departmental costs. Highways and Streets costs are the design, construction, maintenance and operation of all roadway and street related infrastructure within the Town. Culture and Recreation is comprised of expenses that help enrich the community’s quality of life through parks, aquatics, library services, and recreational activities. Public Safety expenses are costs incurred by the Town to provide police and animal control services to the public. Health and Welfare expenses are incurred by the Town to run the Senior Center and Meals on Wheels.
Interest on Long-Term Debt reflects the interest costs for bonds and loans. Water and Sewer expenses are incurred by the Town to process and provide water and sewer services to the public.
Fiscal Year Ended June 30, 2025
6
Town of Chino Valley, Arizona
Debt Obligations
As of June 30, 2025, the Town had $28.0 million in long-term debt outstanding with $2.2 million due within one year. The Town’s long-term debt decreased by $2.9 million. The chart below depicts the outstanding debt for the fiscal year ended June 30, 2025.
Net Pension Liability $7,968,000 28.5%
Compensated Absences $925,692 3.3%
Developer Agreement Payable $420,733 1.5%
What it Means
Governmental Bonds $12,496,102 44.7%
WIFA Loans are low-interest loans from the Water Infrastructure Finance Authority of Arizona (WIFA). They finance construction and improvement of drinking water, sewer, reclamation of wastewater, and other projects that are related to water quality. Water Bonds are issued to finance the long-term water related capital improvements for the Town’s water utility service. This debt is repaid with water utility revenues.
Water Bonds $190,113 0.7%
WIFA Loans $5,962,236 21.3%
Governmental Bonds are used to finance long-term capital improvements, including land acquisition and construction or improvement of Town facilities. Town excise tax is pledged as repayment of the debt.
Compensated Absences reflects future payments due for employee leave banks. Net Pension Liability reflects the future payments due for the two retirement systems; Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS). Developer Agreement Payable reflects future payments due on water hookup fees in specified locations.
Police Department Building
Bond Ratings Bond Issue
Moody's Investors Services
S&P Global Ratings
Fitch Investors Service, Inc.
Pledged Rev Rfdg Oblig Series 2021 Pledged Rev Rfdg Oblig Series 2021 (Police Building)
-
AA-/Stable AA-/Stable
-
Credit ratings reflect the Town’s financial strength and management practices. Strong ratings help lower borrowing costs for major projects, saving taxpayer and ratepayer dollars.
Fiscal Year Ended June 30, 2025
7
Town of Chino Valley, Arizona
Capital Assets
Each year, the Town updates its five-year Capital Improvement Program (CIP) to plan and manage major investments in infrastructure, equipment, vehicles, and facilities that support community services. The CIP focuses on larger projects costing more than $50,000 with a useful life of at least five years, while the Town capitalizes all assets with a cost of $5,000 or more in accordance with its financial policies. At June 30, 2025, the Town had invested $61.9 million in capital assets (this is calculated net of the accumulated depreciation/amortization), including buildings, facilities, vehicles, machinery, right of use assets, equipment, and infrastructure assets.
These graphs show the total investment in capital assets for both the governmental and business-type activities. The numbers shown do not include a reduction for depreciation.
FY 2024-25 Governmental Assets
Infrastructure $22,756,322 39.8%
Machinery, Equipment, Vehicles $6,325,229 11.0%
New Police Vehicle
FY 2024-25 Business-Type Assets Water Distribution System $5,287,024 11.3%
Treatment Facilities $11,040,494 23.5%
Water Rights $941,448 2.0%
Land $2,892,198 5.0%
Construction in Progress $752,973 1.6%
Construction in Progress $26,500 0.1%
Buildings $23,728,278 41.5%
Other Improvements $1,506,072 2.6%
Sewer Collection System $23,934,414 50.9%
Water Reclamation Facility Machinery, (Sewer Plant) Equipment, Vehicles $1,737,843 Land 3.7% $3,308,253 7.0%
Fiscal Year Ended June 30, 2025
8
Town of Chino Valley, Arizona
Statement of Net Position
The Statement of Net Position is presented in much more detail in the Town’s Annual Comprehensive Financial Report. Below is a very high-level summary that captures total assets and liabilities and compares them to prior years. The Statement of Net Position may serve as a useful overall indicator of the Town’s financial position and trends over the last two years. The Town’s activities are presented in two categories. Governmental activities include most of the Town’s core services, such as public safety, parks and recreation, and street maintenance. Transaction privilege taxes, state-shared revenues, and grants finance most of these activities. Business-type activities are the Water and Sewer utilities, which are primarily financed through user fees and charges.
Condensed Statement of Net Position Governmental Activities
Business-type Activities
2025
2024
2025
$ 18,475,543
$ 21,140,717
$ 1,005,295
37,656,103
35,639,934
56,131,646
56,780,651
Deferred outflows of resources
3,481,507
Long-term liabilities outstanding Other liabilities Total liabilities
Current and other assets Capital assets Total assets
Deferred inflows of resources Total net position
Total Government 2025
2024
316,049
$ 19,480,838
$ 21,456,766
24,209,022
24,323,346
61,865,125
59,963,280
25,214,317
24,639,395
81,345,963
81,420,046
4,346,289
101,591
93,070
3,583,098
4,439,359
19,373,112
22,733,603
6,399,132
7,965,500
25,772,244
30,699,103
2,737,846
2,105,867
3,469,463
3,058,152
6,207,309
5,164,019
22,110,958
24,839,470
9,868,595
11,023,652
31,979,553
35,863,122
982,257
842,189
39,915
24,796
1,022,172
866,985
$ 36,519,938
$ 35,445,281
$ 15,407,398
$ 13,684,017
$ 51,927,336
$ 49,129,298
The largest portion of the Town’s net position reflects its investment in capital assets such as land, buildings and improvements, vehicles, machinery and equipment, and construction. The Town uses these capital assets to provide services to its citizens; consequently, these assets are not available for future spending.
2024 $
What it Means Current Assets and Other Assets are assets that one can reasonably expect to convert to cash, sell, or consume within one year. Capital Assets, are the Town’s land, buildings, equipment, improvements, infrastructure, and any construction in progress, net of the accumulated depreciation/amortization. Deferred Outflows/Inflows are outflows/inflows of resources that have already occurred but are only applicable to future periods. Liabilities are the payments due to employees and vendors, lease and subscription payments due, and other long-term debt of the Town. Net Position is the difference between assets plus deferred outflows and liabilities plus the deferred inflows, which may or may not be available for future spending.
Fiscal Year Ended June 30, 2025
9
Town of Chino Valley, Arizona
Statement of Activities
The Statement of Activities, often referred to as the Town’s income statement, reflects all financial activity for the Town during the fiscal year ended June 30, 2025. This statement presents information to show how the Town’s net position changed during the year as a result of the financial activity (e.g. revenues and expenses). Over time, the increases or decreases in net position may serve as a useful indicator as to whether the Town’s financial position is improving or deteriorating. Below is a summarized version of the detailed statement of activities found in the Town’s Annual Comprehensive Financial Report. Changes in Net Position Governmental Activities 2025 2024 Revenues: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Taxes Urban revenue sharing Other revenue/(expense) Total revenues
Business-type Activities 2025 2024
$ 2,548,745
$ 4,894,047
$ 4,699,716
-
15,216
615,331
985,661
595,138
287,126
1,305,874
327,341
15,284,920
-
-
15,653,652
15,284,920
3,622,169
-
-
2,938,837
3,622,169
724,203
1,197,927
47,601
82,545
771,804
1,280,472
22,704,462
23,266,647
3,475,083
2,933,632
26,179,545
26,200,279
Total expenses
19,737,355
18,059,294
3,474,435
3,773,160
23,211,790
21,832,454
Transfers in (out) Change in net position
(1,733,134)
(985,000)
1,733,134
985,000
1,233,973
4,222,353
1,733,782
145,472
2,967,755
4,367,825
Net position, beginning 35,445,281 Restatement (159,316) Net position, beginning - restated 35,285,965
31,222,928
13,684,017
13,538,545
49,129,298
44,761,473
Ending net position
$ 2,061,703
$ 2,150,971
615,331
970,445
710,736
40,215
15,653,652 2,938,837
$ 36,519,938
-
$ 2,832,344
Total Government 2025 2024
(10,401)
-
-
-
(169,717)
-
31,222,928
13,673,616
13,538,545
48,959,581
44,761,473
$ 35,445,281
$ 15,407,398
$ 13,684,017
$ 51,927,336
$ 49,129,298
The Statement of Activities shows that the Town’s total net position has improved over the beginning net position for both Governmental Activities and Business-Type Activities. Total expenses increased $1.4 million. Personnel costs increased as a result of higher benefit costs and additional positions. Other costs increased as a result of continued inflationary impacts on services, supplies, and materials. Total revenues decreased $20,734, which is primarily due to decreased state shared revenues offset slightly by increases in tax revenues.
Memory Park
Fiscal Year Ended June 30, 2025
10
Town of Chino Valley, Arizona
Future Outlook
The economy of Chino Valley is supported by a diverse combination of agriculture, manufacturing, commercial, government, and service industries. In recent fiscal years, the Town has experienced growth in key revenue sources, including local excise taxes, state-shared revenue, state income tax, and highway user revenue. It is important to note that the Town does not levy or collect a property tax. Chino Valley’s population has seen significant growth over the past two decades, increasing from 7,901 in 2000, to 13,911 in 2025. This growth reflects the Town's strong recovery from the economic and housing downturn, with a notable increase in new housing over the last decade. This growth has slowed, but additional developments are expected in the next few years. The graph below indicates the FY 2024-25 actual and total projected revenues and expenses for the FY 2025-26 budget year and the next three fiscal years.
Townwide Revenues and Expenses $50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $FY 2024-25 Actual
FY 2025-26 Budget
FY 2026-27 Projected
Revenues
FY 2027-28 Projected
FY 2028-29 Projected
Expenses
FY 2025-26 Budget The Town continues to dedicate one-time revenues to funding one-time expenditures in the budget, specifically for capital improvement projects, while ensuring there is sufficient recurring revenues to fund the expenditures that recur. With the current realized growth and projected activity expectations in future years, it will be important to continue to analyze the budget in this way to avoid future reliance on one-time revenues to fund recurring costs. For FY 2025-26, the Town will continue to focus its efforts on supporting elements of the Town Council adopted Strategic Plan while navigating any potential economic fluctuations that may occur.
Click Here to View Budget
Fiscal Year Ended June 30, 2025
11
Town of Chino Valley, Arizona Contact the Town: Main Phone:
928-636-2646
Citizen Engagement and Resources
Main Physical Locations: Town Manager, Finance, Town Clerk, Council 202 N. State Route 89
Connect with Us!
Police Department 220 N. State Route 89 IT Services, Library 1020 W. Palomino Rd. Human Resources 1942 Voss Dr. Development Services 1982 Voss Dr. Public Works 1950 Voss Dr. Senior Center 1021 W. Butterfield Rd. Municipal Court 1988 N. Road 1 West Community Center, Aquatics, Ballfields 1527 N. Road 1 East All addresses are in Chino Valley, AZ 86323
Additional Disclosure The Town of Chino Valley is proud to present its second annual Popular Annual Financial Report (PAFR) prepared by the Finance Department. The financial information in the PAFR is taken from the Town’s Annual Comprehensive Financial Report (ACFR). The ACFR outlines the Town’s financial position and operating activities each fiscal year presented in conformity with generally accepted accounting principles (GAAP) and includes financial statements audited by Heinfeld, Meech, and Co., P.C., a certified public accounting firm. The Town received an unqualified (or clean) audit opinion, which is the best audit opinion that the financial statements could receive. While the numbers in the PAFR come from an audited source, they are presented in a summarized, unaudited non-GAAP format that is more accessible to the public. Also, some of the information in the PAFR is from the Town’s Annual Budget. Citizens who wish to review the audited, GAAP-based, full disclosure financial statements can refer to the Town’s ACFR available on the Town’s website at www.chinoaz.net or contact the Finance Department by phone at 928-636-3120 or in person at 202 N. State Route 89, Chino Valley, AZ 86323.
Click Here to View ACFR
Fiscal Year Ended June 30, 2025
12
13