Annual Comprehensive Financial Report

TOWN OF WICKENBURG, ARIZONA
WICKENBURG, ARIZONA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED JUNE 30, 2025

Issued by:
Finance Department

TOWN OF WICKENBURG, ARIZONA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025

INTRODUCTORY SECTION
Letter of Transmittal
Organizational Chart
List of Principal and Elected Officials
GFOA Certificate of Achievement for Excellence in Financial Reporting

FINANCIAL SECTION
Independent Auditors' Report
Management's Discussion and Analysis
Basic Financial Statements:
Governmental-wide Financial Statements
Statement of Net Position
Statement of Activities
Fund Financial Statements
Balance Sheet - Governmental Funds
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Position
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Governmental Funds
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures,
and Changes in Fund Balances to the Statement of Activities
Statement of Net Position - Proprietary Funds
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
Statement of Cash Flows - Proprietary Funds
Statement of Net Position - Fiduciary Funds
Statement of Changes in Net Position - Fiduciary Funds
Notes to Basic Financial Statements

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of the Proportionate Share of the Net Pension Liability and Contributions
Cost Sharing Pension Plan
Schedule of Changes in the Net Pension Liability (Asset) and Related Ratios
Agent Pension Plan - PSPRS Police
Schedule of Changes in the Net Pension Liability (Asset) and Related Ratios
Agent Pension Plan - PSPRS Fire
Schedule of Changes in the Net Pension Liability (Asset) and Related Ratios
Agent Pension Plan - CORP Dispatchers
Schedule of Pension Contributions: PSPRS Police, PSPRS Fire, CORP Dispatchers
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget to Actual - General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget to Actual - Highway User Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget to Actual - Grants Fund
Notes to the Required Supplementary Information

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TOWN OF WICKENBURG, ARIZONA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025

OTHER SUPPLEMENTARY INFORMATION

Combining and Individual Fund Statements and Schedules:
Nonmajor Governmental Fund Descriptions
Combining Balance Sheet - Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Nonmajor Governmental Funds
Budgetary Comparison Schedules - Nonmajor Governmental Funds:
Budget and Actual - Judicial Court Enhancement Fund
Budget and Actual - Debt Service Fund
Budget and Actual - Capital Improvement Fund
Internal Service Funds Descriptions
Combining Statement of Net Position - Internal Service Funds
Combining Statement of Revenues, Expenses, and Change in Fund Net Position -
Internal Service Funds
Combining Statement of Cash Flows - Internal Service Funds

STATISTICAL SECTION
Statistical Section Descriptions
Financial Trends:
Net Position by Component
Expenses, Program Revenues, and Net Expense
Changes in Net Position
Fund Balances - Governmental Funds
Changes in Fund Balances of Governmental Funds
Revenue Capacity:
Governmental Activities Tax Revenues by Source
Sales Tax Collections by Category
Direct and Overlapping Sales Tax Rates
Assessed Value and Estimated Actual Value of Taxable Property
Direct and Overlapping Property Tax Rates
Principal Property Taxpayers
Property Tax Levies and Collections
Debt Capacity:
Ratio of Outstanding Debt by Type
Direct and Overlapping Governmental Activities Debt
Legal Debt Margin Information
Calculation of Legal Debt Margin
Pledged Revenue Coverage
Demographic and Economic Information:
Demographic and Economic Statistics
Principal Employers
Operating Information:
Full-Time Equivalent Employees by Type
Operating Indicators by Department
Capital Asset Statistics by Department
Utility Customer Statistics by Service

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INTRODUCTORY SECTION

TOWN OF WICKENBURG

155 N. Tegner, Ste. A- Wickenburg, Arizona 85390
(928) 684-5451 FAX (602) 506-1580

February 18, 2026

Honorable Mayor, Members of the Town Council, and Citizens of the Town of Wickenburg:

I am pleased to submit the Annual Comprehensive Financial Report (ACFR) of the Town of
Wickenburg (Town) for fiscal year ended June 30, 2025. State law requires that every local
government publish within six months of the close of each fiscal year all audited financial
statements. Financial statements are to be presented in conformity with the United States Generally
Accepted Accounting Principles (GAAP), audited in accordance with Generally Accepted Auditing
Standards (GAAS), by a licensed certified public accountant(s). Pursuant to that requirement, we
believe to the best of our knowledge that the data presented herein is accurate in all material
respects and is designed to enable the reader to gain the maximum understanding of the Town's
financial affairs.

Responsibility for the accuracy and completeness of the presented data, including all disclosures,
rests with management. To the best of our knowledge and belief, this report is accurate in all
material respects and is presented in a manner designed to fairly set forth the financial position of
the Town. All disclosures necessary to enable the reader to gain an understanding of the Towns
financial activities have been included. To provide a reasonable basis for making these
representations, management has established a comprehensive framework of internal controls
intended to protect the Town's assets from loss, theft, or misuse. Because the cost of internal
controls should not outweigh their benefits, the Town’s comprehensive internal control framework
has been designed to provide a reasonable rather than absolute assurance that the financial
statements are free of any material misstatements.

Advisent Assurance LLP, an independent certified public accounting firm, performed the Town’s
annual financial statement audit and has issued an unmodified opinion on the Town of Wickenburg’s
financial statements for the year ended June 30, 2025. Their independent auditor’s report is located
at the front of the financial section of this report. GAAP requires 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). The MD&A, which immediately follows the
Independent Auditors Report, is intended to complement this transmittal letter and should be read
in conjunction with it.

Profile of the Government

Henry Wickenburg along with other settlers founded Wickenburg in 1863. The infant town went
through many trials and tribulations during its first few decades surviving Indian wars, mine
closures, desperadoes, drought, and a disastrous flood in 1890 when the Walnut Creek Dam (1)
burst, but through it all the town continued to grow. On June 19, 1909, the Town of Wickenburg
was incorporated.

Located in the Southwest section of the State, in Northwest Maricopa County, the town sits at an
elevation of 2,049 feet. With approximately 27.2 square miles of land today compared to only 13
square miles back in 2003, the Town continues to expand as annexation plans continue. The Town
is empowered to levy a property tax on real property located within its boundaries and continues
to keep that levy substantially below the maximum allowed. The 2020 census population estimate
is 7,474 which is almost a 17.5% increase from 2010's 6,363.

The Town of Wickenburg operates under the Council-Manager form of government, with
policymaking and legislative authority vested in the Town Council. The elected officers of the Town
consist of a Mayor and six (6) Councilmembers. The qualified electors of the Town commencing in
1996 have directly elected the Mayor. The term of office of the Mayor and Councilmembers is four
(4) years, with Councilmembers serving overlapping terms in the manner provided by State law.
Within twenty (20) days after an election where one or more Councilmembers are elected, the Vice
Mayor shall be selected by a majority of the Council, from among its own members, for a term to
run concurrently with that of the Mayor’s term. If the Vice Mayor’s term expires sooner, he/she
shall serve until his/her successor is appointed and qualified. In the absence or disability of both
the Mayor and Vice Mayor, the Council may designate another of its members to serve as acting
Mayor who shall have all the powers, duties and responsibilities of the Mayor during such absence
or disability.

The Town Council is responsible for the hiring of the Town Manager, who is responsible for
overseeing all local government-related activities and implementation of the policies of the Town
Council. Except for the Town Attorney and Magistrate, the Town Manager appoints all Department
Heads. Together the Council, Management, and Staff provide a full range of services including
water, electric, sanitation and wastewater; inspections, licenses and permits; construction and
maintenance of streets and related infrastructure; programming of various recreational activities;
and enforcement of both the Town and Local Tax Code.

Local Economy

The last sales tax change was on April 1, 2016, at which time the construction tax rate increased
from 2.2% to 3.5%. The “General” Sales Tax rate remains at 2.2% since June 1, 2009, with Rental
and Leasing of Real Property dropping from 2.2% to 1.7% on October 1, 2009. The Town increased
the Transient Lodging “Bed Tax” rate from 2% to 3% on August 1, 2015. The tiered rate for single
item purchases of $5,000 or more remains at 1.69% since September 1, 2012.

The economy in Wickenburg continues to do well, but anticipated declines have been witnessed.
We experienced a decrease of about 15.17% in local sales tax over the prior year with all major
categories including construction, transient lodging, restaurants & bars, and retail reflecting a
decrease.

Though we saw an up kick in building permits during the prior year with 570 issued, construction
has seen a decline in growth with 538 permits issued in fiscal year ending June 30, 2025.

Long-Term Financial Planning & Major Initiatives

Wickenburg, like other governmental jurisdictions in Arizona, is subject to an annual expenditure
limit, which is adjusted each year by population and inflationary growth factors from the base year
of 1979-80. That expenditure base can be adjusted by voters to enable the Town to spend increased
revenues received by various sources during the year. In March 2006, voters approved of a
$4,794,034 permanent increase to the base, which became effective in fiscal year 207. The increase
in the base was expected to continue accommodating the Town’s budgeted expenditures for at least
another five years. Close attention is kept towards expenditures and potential needs of the Town,
and in the future a permanent increase may need to be addressed again. Permanent adjustments
to expenditure limits do not increase taxes.

To maintain strong long-term financial plans, annually the Town Council has a Retreat with the
Town Manager to review and revise the Strategic Plan for the future of the Town. For the upcoming
year the Council’s Strategic Plan continues to focus on five areas: Economic Development, the
Downtown Area, Public Safety, Youth & Families, and Natural Resources & Recreation. Together it
is our hope that these initiatives will encourage forward thinking in how the Town plans and funds
the upkeep and growth of the community.

Next, Department Heads are required to submit their budgets for the following fiscal year through
“hybrid zero- based” budgeting for the majority of their line items, which requires them to
extensively analyze and plan projected expenditures for the year in more depth. To tie the Council’s
Strategic Plan with the budget, staff also must submit a Five-Year Capital Improvement Plan.

With a slight economic decline in our latest forecast, we continue to project that our healthy fund
balances will overcome moderate recessionary trends. Thanks to the Towns long-term financial
planning, Capital Improvements for the new fiscal year are planned to be $19,082,176, which
represents an investment in the growth of infrastructure and planned capital maintenance of the
Town’s assets.

Relevant Financial Policies

The Town of Wickenburg takes pride in having a comprehensive set of financial policies to assure
financial stability and transparency of the Towns finances, by setting guidelines for fund balance,
which is an important measure of the economic stability of the Town. It is essential that the Town
of Wickenburg maintain adequate levels of unassigned fund balance to mitigate financial risk that
can occur from unforeseen revenue fluctuations, unanticipated expenditures, and similar
circumstances. The fund balance also provides cash flow liquidity for general operations.
Additionally, the Town has a policy that nonrecurring (e.g., one-time) resources of inflows are not
used for on-going operating purposes.

The annual budget serves as the foundation for the Town of Wickenburg’s financial planning and
control. The Town of Wickenburg's financial planning and control begins with its annual budget,
which serves three purposes: for the Town Council it serves as a policy tool and as an expression
of goals and objectives; Management uses the budget as an operating guide and a control
mechanism; and for the citizens of Wickenburg, it presents a picture of the local government
operations and intentions of the year.

Annually each department director is required to submit requests for appropriation to the Finance
Director. The Finance Director then compiles and presents the total budget request, which is
prepared by fund and department to the Town Manager. The Town Manager then uses these
requests as the starting point for developing a draft budget to be presented to the Council for
review. Once the Council has reviewed and adjusted the draft budget, it becomes the tentative
budget. The Council is then required to hold public hearings on the tentative budget and to adopt
the budget no later than the third Monday in July of each year. To ensure compliance with legal
provisions applicable to the annual appropriated budget the Town of Wickenburg maintains several
budgetary controls. Department Directors are responsible for ensuring expenditure does not exceed
their approved budget and mid-year budget adjustments are kept to a minimum. Additionally, all
transfers from capital line items or between Funds must be approved by Council. The Council may
appropriate contingency funds to cover emergencies or other unexpected necessary expenditures.

Awards & Acknowledgements

The Government Finance Officers Association (GFOA) of the United States and Canada awarded a
Certificate of Achievement for Excellence in Financial Reporting to the Town of Wickenburg for its
ACFR for fiscal year ended June 30, 2025, making this the 15th consecutive year the Town has
achieved this prestigious award. Because of budget cuts, the Town discontinued participating in this
program effective fiscal year ending June 30, 2006, at which time 11 consecutive awards had been
achieved, this latest award brings the total awards to date to 25. To be awarded this certificate of
achievement, the Town must publish an easily readable and efficiently organized ACFR that satisfies
both GAAP and applicable program requirements. This Certificate of Achievement is valid for a
period of one year only. Achieving this certificate shows our commitment to encouraging
transparency in government for the Town. We believe our current ACFR continues to conform to
the program’s requirements, and we are therefore submitting it to the GFOA to determine its
eligibility for another certificate.

The Town is a recipient for the GFOA’s Distinguished Budget Presentation Award in prior years and
intends to achieve this award in fiscal year 2026. To qualify for the Distinguished Budget
Presentation Award the government’s budget document had to be judged proficient as a policy
document, a financial plan, an operations guide, and a communication device.

The preparation of this report would not have been possible without the efficient and dedicated
service of the entire staff of the Finance Department; and I wish to thank each member for their
assistance in providing the data necessary to prepare this report. Credit is also given to the Mayor,
Town Council, and Town Manager for their continued support in maintaining the highest standards
of professionalism in the management of the Town’s finances.

Respectfully submitted,

Robert L. Martine, IT

Robert L. Martinez II
Finance Director

TOWN OF WICKENBURG, ARIZONA
ORGANIZATIONAL CHART
YEAR ENDED JUNE 30, 2025

Town of Wickenburg

Organizational Chart
Updated July 2025

Municipal Court
Gharles Adometto, Town Magistrate
Rosa Garcia-Marquez, Cowt
Administrator
Boards,
BepryeaseTs Town a
& Committees Fierce Coleman PLLC, Town Attomey
Law Office of Elleen M. McGuire PLLC,
Town Prosecutor
Deputy Town Manager!
Economic Development
Tim Suan, Deputy Town Manager
Marketing & Tourism
Recreation
Events & Facility Rentals Public Works Finance Town Clerk
Information Technologies faite mies & Finance Department Town Clerk
Intergovernmental Refations & Flest Servi Department
Parks Management Administration
Community Utilities: Water, Wastewater,
Development Electric, Sanitation
Steve Boyle, Director Project Management
Planning & Zoning
Building Safety |
‘Code Enforcement . =
cosinor es Town Engineer Fire
$ (Contract) Ed Temerowski, Chief
(GHD, Inc., Towm Engineer Fire Suppression
Emergency Medical Services
Police
Human Resources Les Brown, Chief
Taraht Mayerhofer, Director Law Enforcement
Human Resources! Animal Control
Risk Management Communications
Emergency Management

TOWN OF WICKENBURG, ARIZONA
LIST OF PRINCIPAL AND ELECTED OFFICIALS
YEAR ENDED JUNE 30, 2025

ELECTED OFFICIALS

Mayor
Vice-Mayor
Councilmember
Councilmember
Councilmember
Councilmember
Councilmember

BG Bratcher
Brian Jones
Kristy Bedoian
Shawn Clark
Margaret Nyberg
Rebecca Rovey
Art Rubash

DEPARTMENT DIRECTORS

Town Manager
Finance Director
Town Clerk

Public Services Director
Community Development Director
Economic Dev & Deputy Town Manager

Chief of Police
Fire Chief

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Troy Smith
Robert Martinez
Amy Brown
Cason Chambers
Steve Boyle
Timothy Suan
Les Brown

Ed Temerowski

ty

Government Finance Officers Association

Certificate of
Achievement
for Excellence
in Financial
Reporting

Presented to

Town of Wickenburg
Arizona

For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended

June 30, 2024

Executive Director/CEO

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FINANCIAL SECTION

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Advisent

Assurance LLP

INDEPENDENT AUDITORS’ REPORT

Honorable Mayor and the Town Council
Town of Wickenburg, Arizona
Wickenburg, Arizona

Report on the Audit of the Financial Statements

Opinions

We have audited the financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of Town of Wickenburg,
Arizona (the “Town”), as of and for the year ended June 30, 2025, and the related notes to the
financial statements, which collectively comprise the Town’s basic financial statements as listed in
the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of Town of Wickenburg, Arizona, as of June
30, 2025, and the respective changes in financial position for the year then ended in accordance
with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United
States of America (GAAS) and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Statements section of our report. We are required to be independent of the Town and to
meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating
to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements

The Town’s management is responsible for the preparation and fair presentation of the financial
statements in accordance with accounting principles generally accepted in the United States of
America, and for 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.

In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s
ability to continue as a going concern for twelve months beyond the financial statement date,
including any currently known information that may raise substantial doubt shortly thereafter.

858.565.2700 - a
www.advisent.com ma

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinions. Reasonable assurance is a high level of assurance but is not
absolute assurance and therefore is not a guarantee that an audit conducted in accordance with
GAAS and Government Auditing Standards will always detect a material misstatement when it
exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if
there is a substantial likelihood that, individually or in the aggregate, they would influence the
judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

e Exercise professional judgment and maintain professional skepticism throughout the audit.

e Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.

e Obtain an understanding of internal control relevant to the audit 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 Town’s internal control. Accordingly, no such opinion
is expressed.

e Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.

e Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the Town’s ability to continue as a going
concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control-related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, pension schedules, and budgetary comparison information,
as listed within the table of contents, be presented to supplement the basic financial statements.
Such information is the responsibility of management and, 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.

wwrwadvieent.com Advisent

14 Assurance LLP

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town’s basic financial statements. The combining and individual nonmajor
fund financial statements are presented for purposes of additional analysis and are not a required
part of the basic financial statements.

The combining and individual nonmajor 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 nonmajor fund financial statements and schedules are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.

Other Information

Management is responsible for the other information included in the annual comprehensive financial
report. The other information comprises the introductory and statistical sections but does not
include the financial statements and our auditor's report thereon. Our opinions on the financial
statements do not cover the other information, and we do not express an opinion or any form of
assurance thereon. In connection with our audit of the financial statements, our responsibility is to
read the other information and consider whether a material inconsistency exists between the other
information and the financial statements, or the other information otherwise appears to be
materially misstated. If, based on the work performed, we conclude that an uncorrected material
misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated February
18, 2026, on our consideration of the Town’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 solely to 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 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 the Town’s internal control over financial reporting and compliance.

Adoigert A ituranw LLP

Mesa, Arizona
February 18, 2026

wwrwadvieent.com Advisent

15 Assurance LLP

REQUIRED SUPPLEMENTARY INFORMATION

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TOWN OF WICKENBURG, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2025

As management of the Town of Wickenburg, Arizona (Town), we offer the readers of the Town’s
financial statements this narrative overview and analysis of the financial activities of the Town for
the fiscal year ended June 30, 2025.

FINANCIAL HIGHLIGHTS

e The assets and deferred outflows of resources of the Town exceeded its liabilities and
deferred inflows of resources at the close of the most recent fiscal year by $150.1 million
(net position). The Town’s total net position increased by $4.9 million.

e As of the close of the current fiscal year, the Town’s governmental funds reported combined
ending fund balances of $29.1 million, a decrease of $3.6 million in comparison with the prior
year.

e Atthe end of the current fiscal year, unassigned fund balance for the General Fund was $25.6
million, or 119% of total General Fund expenditures.

e The Town’s net capital assets increased $3.1 million in the current year.

e The Town’s long-term liabilities did not have a significant change in activity during the current
year. The decreases were the result of routinely scheduled principal payments on financed
purchases payable and a decrease in the net pension liability based on actuarial inputs and
changes in the proportionate share of the cost-sharing plan.

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis are intended to serve as an introduction to the Town’s basic financial
statements. The Town’s basic financial statements are comprised of three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to basic 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 Town’s finances, in a manner like private-sector business. The statement of net position
presents information on all the Town’s assets, deferred outflows of resources, liabilities, and
deferred inflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as useful indicators of whether the financial position of the
Town is improving or deteriorating.

The statement of activities presents information showing how the government’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 vacation leave).

Both government-wide financial statements distinguish functions of the Town that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions
that are intended to recover all or a significant portion of their costs through user fees and charges
(business-type activities). The governmental activities of the Town include general government,
public safety, highways and streets, and parks, recreation, and facilities. The business-type activities
include water, electric, sanitation, wastewater, and airport. The government-wide financial
statements can be found directly following the management’s discussion and analysis.

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TOWN OF WICKENBURG, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2025

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 Town, like other state and _ local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All the funds of the Town can be divided into three categories: governmental
funds, proprietary 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 focus on near-
term inflows and outflows of spendable resources, as well as balances of spendable resources
available at the end of the fiscal year. Such information may be useful in evaluating a government’s
near-term financing requirements. Since the governmental fund financial statements focus on near-
term spendable resources, while the governmental activities on the government-wide financial
statements have a longer-term focus, a reconciliation of the differences between the two is provided
with the fund financial statements.

The Town maintains six individual governmental funds. Information is presented separately in the
governmental funds balance sheet and in the governmental funds statement of revenues,
expenditures, and changes in fund balances for the General Fund, Highway User Revenue Fund,
and Grants Fund which are major funds. Data from the other three governmental funds are
combined into a single, aggregate presentation. Individual fund data for each of the non-major
governmental funds is provided in the form of combining statements elsewhere in this report. The
basic governmental fund financial statements can be found as listed in the Table of Contents.

Proprietary Funds - The Town maintains two different types of proprietary funds known as
Enterprise and Internal Service Funds.

Enterprise Funds are used to report the same functions presented as business-type activities in the
government-wide financial statements only in more detail. The Town uses Enterprise Funds to
account for its water, electric, sanitation, wastewater, and airport operations, all of which are major
funds.

Internal Service Funds are an accounting device used to accumulate and allocate costs internally
among the Town’s various functions. The Town uses Internal Service Funds to account for its
maintenance shop and fuel facility funds. Though combined into a single aggregate presentation in
the financial statements, individual fund data can be found elsewhere in this report. The Internal
Service Funds have been included within governmental activities and business-type activities in the
government-wide financial statements based on the operations they benefit.

Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the water, electric, sanitation, wastewater, and airport funds. Conversely, internal
service funds are combined into a single, aggregated presentation in the proprietary fund financial
statements. Individual fund data for the internal service funds is provided in the form of combining
statements elsewhere in this report.

The basic Proprietary Fund financial statements can be found as listed in the Table of Contents.

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TOWN OF WICKENBURG, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2025

Fiduciary Fund - Fiduciary Funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary Funds are not reflected in the government-wide financial
statement because the resources of those funds are not available to support the Town’s own
programs. The accounting used for Fiduciary Funds is much like that used for Proprietary Funds.

The basic Fiduciary Fund financial statements can be found as listed in the Table of Contents.

Notes to Basic Financial Statements

The notes to basic financial statements 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 basic financial statements can be found as listed in the Table of Contents.

Required Supplementary Information Other than MD&A

Governments are required to disclose certain information about employee pension and other
postemployment benefit plans. The Town has disclosed this information on pages 66 - 70.
Additionally, governments have an option of including the budgetary comparison statements for
the General Fund and major Special Revenue Funds as either part of the fund financial statements
within the basic financial statements or as required supplementary information after the footnotes.
The Town has chosen to present these budgetary statements as required supplementary
information on pages 71 - 73. Following the budgetary statements are the notes to the required
supplementary information.

Other information

The combining statements in connection with nonmajor governmental funds and internal service
funds are presented immediately following the required supplementary information other than the
MD8&A. Combining and individual fund statements and schedules can be found on pages 77 - 85 of
this report.

The statistical section includes selected financial and demographic information, generally presented
on a multi-year basis. The statistical section can be found as listed in the Table of Contents.

Government-Wide Financial Analysis

As noted earlier, net position may serve over time as useful indicators of a government’s financial
position. In the case of the Town, assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $150.1 million at the close of the most recent fiscal year.

A summary of the Town’s statement of net position is presented on the following page.

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TOWN OF WICKENBURG, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2025

Governmental Activities Business-type Activities Primary Government
2025 2024 2025 2024 2025 2024
ASSETS
Current and other assets $ 32,818,315 $ 35,915,102 $ 23,957,882 $ 20,168,910 $ 56,776,197 $ 56,084,012
Capital assets 44,051,195 41,227,735 64,543,652 64,260,493 108,594,847 105,488,228
Total Assets 76,869,510 77,142,837 88,501,534 84,429,403 165,371,044 161,572,240
DEFERRED OUTFLOWS OF RESOURCES 4,107,090 3,680,864 259,644 215,938 4,366,734 3,896,802
Total Assets and Deferred Outflows 80,976,600 80,823,701 88,761,178 84,645,341 169,737,778 165,469,042
LIABILITIES
Current liabilities 3,199,194 2,765,390 2,026,622 2,440,438 5,225,816 5,205,828
Long-term liabilities 5,906,213 6,600,146 6,285,280 6,203,150 12,191,493 12,803,296
Total Liabilities 9,105,407 9,365,536 8,311,902 8,643,588 17,417,309 18,009,124
DEFERRED INFLOWS OF RESOURCES 590,119 1,140,784 1,641,039 1,112,594 2,231,158 2,253,378
Total Liabilities and Deferred Inflows 9,695,526 10,506,320 9,952,941 9,756,182 19,648,467 20,262,502
NET POSITION
Net investment in capital assets 42,758,691 39,768,323 58,818,733 59,130,432 101,577,424 98,898,755
Restricted 1,993,831 3,517,018 - - 1,993,831 3,517,018
Unrestricted 26,528,552 27,032,040 19,989,504 15,758,727 46,518,056 42,790,767
Total Net Position $ 71,281,074 $ 70,317,381 $ 78,808,237 $ 74,889,159 $150,089,311 $145,206,540

Net position consists of three components. The largest portion of the Town of Wickenburg, Arizona’s
net position (68%) reflects its investment in capital assets (e.g., land, buildings, infrastructure,
furniture, equipment, etc.) less any related debt used to acquire those assets that is still
outstanding. The Town of Wickenburg, Arizona uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending. Although the Town’s
investment in its capital assets is reported net of related 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. The Town’s net investment in capital assets increased
$2.7 million. The increase was largely due to an increase in capital asset additions for infrastructure
and building improvements. The Town also had a decrease in ending long-term debt related to
capital assets that led to the increase in the net investment in capital assets.

An additional portion of the Town’s net position ($2.0 million) or (1%) represents resources that
are subject to external restrictions on how they may be used. The remaining balance of unrestricted
net position ($46.5 million) or (31%) may be used to meet the government’s ongoing obligations
to citizens and creditors. Restricted net position increased in the current year due to increases in
restricted funding that will be spent in future periods. The increase in unrestricted net position is
largely due to normal Town operations and is discussed on the following pages in the discussion on
changes in net position. At the end of the current fiscal year, the Town reported positive balances
in all three categories of net position.

The Town’s net position increased by 4.9 million during the current fiscal year. Key elements of this

increase are presented in the following condensed statement of changes in net position on the
following page.

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