Appendix
D
Illustrative Comprehensive
Annual Financial Report
RELATIONSHIP OF APPENDICES
The first four appendices illustrate the preparation of a comprehensive annual financial report (CAFR) prepared in conformity with the authoritative guidance issued by the Governmental Accounting Standards
Board (GASB) and the requirements of the Government Finance Officers Association’s Certificate of
Achievement for Excellence in Financial Reporting Program.
• Illustrative journal entries (Appendix A). This appendix illustrates the different types of journal entries
used to collect data in the government’s fund-based accounting system.
• Illustrative trial balances (Appendix B). This appendix provides 1) a trial balance as of the beginning of
the current fiscal year, 2) a preclosing trial balance, and 3) a trial balance as of the end of the current fiscal year for each of the funds for which illustrative journal entries are provided in Appendix A.
• Illustrative adjustments worksheet (Appendix C). This appendix illustrates how the data reported in governmental funds and internal service funds are converted and consolidated for presentation as governmental activities in the government-wide financial statements.
• Illustrative CAFR (Appendix D). This appendix (available electronically at www.gfoa.org/GAAFR/
appendixD) offers a complete illustrative CAFR. The numbers in this illustrative CAFR are supported
by the journal entries, trial balances, and adjustments worksheet provided in Appendices A, B, and C.
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Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
NAME OF GOVERNMENT, STATE
COMPEREHENSIVE ANNUAL FINANCIAL REPORT
For the fiscal year ended
June 30, 2022
Prepared by:
Department of Finance and Administration
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
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Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2022
TABLE OF CONTENTS
· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Page
INTRODUCTORY SECTION
Letter of Transmittal · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 3
GFOA Certificate of Achievement · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 8
Organizational Chart · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 9
List of Elected and Appointed Officials · · · · · · · · · · · · · · · · · · · · · · · · · · · 10
FINANCIAL SECTION
Independent Auditor’s Report · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·
Management’s Discussion and Analysis · · · · · · · · · · · · · · · · · · · · · · · · · ·
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·
Statement of Activities · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·
Fund Financial Statements:
Balance Sheet - Governmental Funds · · · · · · · · · · · · · · · · · · · · · · · · ·
Reconciliation of the Balance Sheet - Governmental Funds to the
Government-wide Statement of Net Position · · · · · · · · · · · · · · · · · · ·
Statement of Revenues, Expenditures, and Changes in Fund
Balances - Governmental Funds· · · · · · · · · · · · · · · · · · · · · · · · · · ·
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances - Governmental Funds to the Government-wide
Statement of Activities · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual - General Fund · · · · · · · · · · · · · · ·
Statement of Net Position - Proprietary Funds · · · · · · · · · · · · · · · · · · · ·
Statement of Revenues, Expenses, and Changes in Net
Position - Proprietary Funds · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·
Statement of Cash Flows - Proprietary Funds · · · · · · · · · · · · · · · · · · · ·
Statement of Fiduciary Net Position – Fiduciary Funds · · · · · · · · · · · · · · ·
Statement of Changes in Fiduciary Net Position - Fiduciary Funds · · · · · · · ·
Notes to the Financial Statements· · · · · · · · · · · · · · · · · · · · · · · · · · · · ·
Required Supplementary Information:
Schedule of Funding Progress - Public Safety Employees’ Pension Plan · · · · · ·
Schedule of Funding Progress - General Employees’ Other
Postemployment Benefits Plan · · · · · · · · · · · · · · · · · · · · · · · · · · · ·
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds · · · · · · · · · · · · ·
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances - Nonmajor Governmental Funds · · · · · · · · · · · · · · · · ·
Schedule of Revenues, Expenditures, and Changes in Fund
Balance - Budget and Actual - Library Fund · · · · · · · · · · · · · · · · · · · · ·
Schedule of Revenues, Expenditures, and Changes in Fund
Balance - Budget and Actual - Debt Service Fund · · · · · · · · · · · · · · · · · ·
i
13
15
30
31
32
33
34
35
36
37
38
39
40
41
43
77
77
79
80
81
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Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – From Inception and for the Year Ended June 30, 2022 –
Capital Projects Fund · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·
Combining Statement of Net Position – Internal Service Funds · · · · · · · · ·
Combining Statement of Revenues, Expenses, and Changes in Net Position –
Internal Service Funds · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·
Combining Statement of Cash Flows – Internal Service Funds · · · · · · · · · ·
Statement of Changes in Assets and Liabilities - Agency Fund · · · · · · · · · ·
· · 83
· · 85
· · 86
· · 87
· · 89
STATISTICAL SECTION
Financial Trends:
Net Position by Component · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 91
Changes in Net Position · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 92
Fund Balances - Governmental Funds · · · · · · · · · · · · · · · · · · · · · · · · · · 94
Changes in Fund Balances - Governmental Funds · · · · · · · · · · · · · · · · · · · 95
Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property · · · · · · · · · · 97
Property Tax Rates – Direct and Overlapping Governments · · · · · · · · · · · · · 98
Principal Property Taxpayers · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 99
Property Tax Levies and Collections · · · · · · · · · · · · · · · · · · · · · · · · · · 100
Debt Capacity:
Ratios of Outstanding Debt by Type · · · · · · · · · · · · · · · · · · · · · · · · · · 101
Ratios of General Bonded Debt Outstanding· · · · · · · · · · · · · · · · · · · · · · 102
Direct and Overlapping Governmental Activities Debt· · · · · · · · · · · · · · · · 103
Legal Debt Margin Information · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 104
Pledged-Revenue Coverage · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 105
Demographic and Economic Information:
Demographic and Economic Statistics · · · · · · · · · · · · · · · · · · · · · · · · · 106
Principal Employers· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 107
Operating Information:
Full-Time Equivalent Employees by Function · · · · · · · · · · · · · · · · · · · · · 108
Operating Indicators by Function · · · · · · · · · · · · · · · · · · · · · · · · · · · · 109
Capital Asset Statistics by Function · · · · · · · · · · · · · · · · · · · · · · · · · · · 110
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Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
INTRODUCTORY SECTION
1
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
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Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
LETTERHEAD OF GOVERNMENT
November 15, 2022
To the Honorable Mayor, Members of the Governing Council and Citizens of the NAME OF GOVERNMENT:
State law requires that every general purpose local government publish, within six months of the
close of each fiscal year, a complete set of audited financial statements. This report is published to
fulfill that requirement for the fiscal year ended June 30, 2022.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial
statements are free of any material misstatements.
West, Lee, Roberts & Co., Certified Public Accountants, have issued an unqualified (“clean”)
opinion on the NAME OF GOVERNMENT’S financial statements for the year ended June 30,
2022. The independent auditor’s report is located at the front of the financial section of this report.
Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s
report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it.
Profile of the government
The NAME OF GOVERNMENT, incorporated in 1866, is located in the eastern part of the state,
which is considered to be one of the top growth areas in both the state and the country. It currently
occupies 10 square miles and serves a population of 57,468. The NAME OF GOVERNMENT is
empowered to levy a property tax on real property located within its boundaries. It also is empowered by state statute to extend its corporate limits by annexation, which it has done from time
to time.
The NAME OF GOVERNMENT has operated under the mayor-council form of government since
1916, having been the first in the state to adopt this form of government. Policy-making and legislative authority are vested in the governing council (Council) consisting of the mayor and six other
members, all of whom are elected at large. Council members serve four-year terms, with three
members elected every two years. The Mayor is elected for a four-year term. The Mayor, with
Council approval, appoints the NAME OF GOVERNMENT’s manager, who in turn appoints its
department heads.
The NAME OF GOVERNMENT provides a full range of services, including police and fire protection; refuse collection; snow and leaf removal; traffic control; on- and off-street parking; building
3
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
inspections; licenses and permits; vital statistics; the construction and maintenance of highways,
streets, and other infrastructure; recreational and cultural activities; library services; low-income
housing; and transit services. Water distribution services are provided through a legally separate
Water Authority, which functions, in essence, as a department of the NAME OF GOVERNMENT
and therefore has been included as an integral part of the NAME OF GOVERNMENT’S financial
statements. The NAME OF GOVERNMENT also is financially accountable for a legally separate
urban renewal agency and a legally separate cable television operation, both of which are reported separately within the NAME OF GOVERNMENT’S financial statements. Additional information on all three of these legally separate entities can be found in the notes to the financial
statements (see note I.B).
The Council is required to adopt an initial budget for the fiscal year no later than May 31 preceding the beginning of the fiscal year on July 1. This annual budget serves as the foundation for the
NAME OF GOVERNMENT’S financial planning and control. The budget is prepared by fund,
function (e.g., public safety), and department (e.g., police). Department heads may transfer resources within a department as they see fit. Transfers between departments, however, need special approval from the governing council.
Local economy
The NAME OF GOVERNMENT is a suburb in an affluent metropolitan area and functions as a
major commuter hub and suburban regional center. The NAME OF GOVERNMENT is headquarters for many corporations, and functions as a major regional shopping center for the metropolitan area. Major industries located within the government’s boundaries or in close proximity
include hospitals, manufacturers of computer hardware and software, retail stores, and several financial institutions and insurance companies. The school district and NAME OF GOVERNMENT
also have a significant economic presence, employing in total more than 2,300 teachers, professionals, and support staff.
Because of its location in a region with a varied economic base, unemployment had been relatively
stable until the effect of the current recession was felt during the current year. During the past ten
years, the unemployment rate rose from an initial low of 3.1 percent (2013) to a decade high of 7.1
percent for the current year (2022). Although unemployment rates have risen nationwide over the
last year, the NAME OF GOVERNMENT continues to experience unemployment rates consistently lower than national averages. The NAME OF GOVERNMENT’s unemployment rate as of
June 2022 was 7.1 percent compared to 9.5 percent nationally. The increases in unemployment
rates during the current year reflect the current recession. Additional increases may occur in the
near future. However, based on economic forecasts, a leveling off and subsequent decline in unemployment rates are anticipated in calendar year 2023.
Median household incomes within the NAME OF GOVERNMENT are significantly higher than
for the state as a whole. According to the year 2021 census, the government’s median family income was $71,891, the county’s was $79,881, while the state’s was $51,691. The government’s population recently increased from 57,100 to 57,468 as of June 30, 2022, in part because of new
residential developments in the downtown area. Despite the softening of the housing market na-
4
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
tionwide, housing prices in the vicinity of the NAME OF GOVERNMENT continue to remain
strong. At the end of the second quarter of 2022, the median price of a single family home in the vicinity of the NAME OF GOVERNMENT was $410,000.
Due to its strong and healthy local economy, the NAME OF GOVERNMENT has maintained a
credit rating of Aa1 from Moody’s Investor Service since 2005, which is the highest bond rating
given to any government within the state and which is shared by only one other government in
the state.
Over the past ten plus years, the government has experienced a period of significant economic
growth and investment. More than $3 billion in new mixed-use and residential development has
been completed or is in various phases of development throughout the downtown and surrounding areas, including the NAME OF GOVERNMENT’s first new office building in more than
twenty years. This development, combined with an easy commute to the nearby metropolitan
center afforded by high quality transportation systems, the presence of retail and service industries, and the presence of recreational, educational and health facilities has even further strengthened the NAME OF GOVERNMENT’s already strong economic base. Thanks to the diversity of
its commercial base, the NAME OF GOVERNMENT expects a full recovery in all sectors of its local economy as the national economy improves.
During the past ten years, the government’s expenditures related to public safety have increased
not only in amount, but also as a percentage of total expenditures in governmental funds (currently 33.8 percent, reflecting a ten-year increase of 8.3 percent). Much of this increase reflects a regional trend that has seen the salaries and benefits of police and firefighters growing at a much
faster rate than those of other categories of public-sector employees.
During this same ten-year period, charges for services related to governmental funds have increased not only in amount, but also as a percentage of total revenues in governmental funds (currently 12.6 percent, reflecting a ten-year increase of 5.2 percent). The increase in charges for
services has been necessary to offset decreases in other revenue sources (e.g., grants).
Long-term financial planning and major initiatives
Unrestricted fund balance (the total of the committed, assigned, and unassigned components of
fund balance) in the general fund at year end was 15.1 percent of total general fund revenues. This
amount was slightly below the policy guidelines set by the Council for budgetary and planning
purposes (i.e., two months of general fund revenues, approximately 16.7%). The year-end amount
is below the minimum target set by the policy guidelines because of a $4,022,452 deficiency of revenues under expenditures during the year ended June 30, 2022. The Council recently reviewed the
NAME OF GOVERNMENT’S strategic plan, including policy guidelines, and plans to raise the
target to 25 percent of total general fund revenues to reduce the amount that otherwise would
need to be borrowed to finance future construction.
As part of its strategic plan, the Council also envisions the revitalization of its Main Street/Howard
Avenue corridor, which will begin with the installation of new streetscapes on Main Street. Fed-
5
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
eral funding in the amount of $1 million has been secured for this project, which will include new
sidewalks, lighting fixtures, and benches.
The government has also completed a feasibility study on the development of a trolley system
within the downtown area. This system is expected to benefit the government in regard to traffic
mitigation, air quality improvement, and economic development in the downtown area. Accordingly, the NAME OF GOVERNMENT will proceed with this project, which it has incorporated
into its six-year Capital Improvement Program.
As mentioned earlier, the government has undergone a recent period of growth and expansion.
New residential development in and around the downtown areas has been extremely strong, with
nearly 1,400 new condominium and rental units being constructed and/or approved since 2014.
These units are located throughout the NAME OF GOVERNMENT and consist of rental properties, affordable housing, market rate condominiums, and senior housing.
The NAME OF GOVERNMENT operates an Affordable Rental and Home Ownership Program,
which is funded through payment by developers in lieu of providing affordable housing units.
This program was established to assist qualified residents with home ownership and to provide
grants to developers for the construction of affordable housing projects for low- and moderate-income housing. Over 200 affordable housing units have been approved under this program.
By charter, the NAME OF GOVERNMENT maintains a six-year Capital Improvement Program
which serves as its planning document to ensure that its facilities, equipment, and infrastructure
are well maintained and operating in peak condition. Under the guidance of a Capital Projects
Board, this process gives the NAME OF GOVERNMENT the ability to plan for its capital needs
and allocate short- and long-term resources appropriately. As part of this process, the government
identifies and quantifies the operational costs associated with its capital projects and budgets resources accordingly. In addition, the Vehicles and Equipment Committee monitors the condition
of all government equipment and vehicles and makes recommendations on their replacement.
The NAME OF GOVERNMENT maintains a vehicle replacement policy which serves as its fleet
replacement guide over a ten-year period. The fiscal year 2022-2023 Capital Improvement Program anticipates $8.3 million in capital projects and $1.2 million in rolling stock replacement. Included in this $8.3 million is $.86 million for various parking facility improvements, $.65 million in
municipal building improvements and $6.45 million for infrastructure and water system improvements. The remainder of the program will finance improvements to the government’s
parks, traffic systems and technology. Because of fiscal constraints, the government’s 2022-23 machinery, equipment and vehicles program will fund moderate and heavy duty vehicles only. The
government did not fund additions or replacements of passenger vehicles (including police vehicles). The purchase of these vehicles will be addressed as funding becomes available.
Relevant financial policies
The NAME OF GOVERNMENT has adopted a comprehensive set of financial policies. During the
current year, two of these policies were particularly relevant. The NAME OF GOVERNMENT has a
policy that requires the adoption of a balanced annual operating budget (i.e., estimated revenues
6
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
equal to or in excess of appropriations). As a result of the economic downturn, however, estimated
revenues were less than appropriations ($126,015,303 v. $131,056,197). In such cases, the policy allows for the appropriation of fund balance to close the gap. The amount necessary for this purpose
in the original budget was $5,040,894, which increased to $5,472,458 in the final amended budget.
However, thanks to measures taken during the year to control expenditures, the NAME OF GOVERNMENT ultimately had to spend only $4,022,452 to close the operating deficit for the year.
In addition, the NAME OF GOVERNMENT has a policy that nonrecurring (i.e., “one-time”) resource inflows not be used for operating purposes. During the current year, the state informed the
government that it would provide compensation for the cost of retroactive compliance with the
Local Wetlands Protection Act of 2015. The Council, in accordance with its policy, plans to use the
amount it eventually receives for the acquisition of new park land.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded
a Certificate of Achievement for Excellence in Financial Reporting to the Name of Government for
its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2021. This was
the twenty-eighth consecutive year that the government has achieved this prestigious award. In
order to be awarded a Certificate of Achievement, the government had to publish an easily readable and efficiently organized CAFR that satisfied both generally accepted accounting principles
and applicable program requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year
only. However, we believe that our current CAFR continues to meet the Certificate of Achievement for Excellence in Financial Reporting Program’s requirements, and we are submitting it to
the GFOA to determine its eligibility for another certificate.
The government also received the GFOA’s Distinguished Budget Presentation Award for its annual budget document dated May 28, 2021. 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 communications device.
The preparation of this report would not have been possible without the skill, effort, and dedication of the entire staff of the Finance and Administration Department. We wish to thank all government departments for their assistance in providing the data necessary to prepare this report.
Credit also is due to the mayor and the Council for their unfailing support for maintaining the
highest standards of professionalism in the management of the NAME OF GOVERNMENT’S finances.
Respectfully submitted,
Lorraine M. Desmarais, Manager
Betty Louise Confer, Finance Director
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Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
8
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
9
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
List of Elected and Appointed Officials
June 30, 2022
Elected Officials
Mayor
Council Member - Ward I
Council Member - Ward II
Council Member - Ward III
Council Member - Ward IV
Council Member - Ward V
Council Member - Ward VI
Barbara J. McCown
Marc Christian
Paul Édouard
Gregory Joseph
Sawyer D. Christopher
Marie Desmarais
Monika Toma
Appointed Officials
Manager
Assistant Manager
Attorney
Clerk
Culture and Recreation Director
Library Director
Finance Director
Assistant Finance Director
Fire Chief
Fleet Management Director
Internal Audit Director
Management Information Systems Director
Personnel Director
Police Chief
Sanitation Director
Streets and Highways Director
Transit Manager
Public Safety Employees Retirement System President
Water Authority Chair
10
Lorraine M. Desmarais
Josephine Paquette
James M. Falconer
James A. Phillips
Robert Kotchen
Qun Wang
Betty Louise Confer
Robert Andrew
Robbin D. Henry
Kathie Schultz
Zhikuan Hu
Delores Smith
Julius G. Howard III
Stephen J. Gates
Aleksandra Bak
Carole Colin
Sarah Marrs
Quijian Jiang
John Fishbein
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
FINANCIAL SECTION
11
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
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12
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
OFFICIAL LETTERHEAD OF THE INDEPENDENT AUDITOR
INDEPENDENT AUDITORS’ REPORT
We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of the NAME OF GOVERNMENT as of and for the year
ended June 30, 2022, which collectively comprise the NAME OF GOVERNMENT’S basic financial
statements as listed in the table of contents. We have also audited the financial statements of each
of the NAME OF GOVERNMENT’s nonmajor governmental, internal service, and fiduciary
funds presented as supplementary information in the accompanying combining and individual
fund financial statements and schedules as of and for the year ended June 30, 2022, as listed in the
table of contents. These financial statements are the responsibility of the NAME OF GOVERNMENT‘s management. Our responsibility is to express opinions on these basic financial statements based on our audit. We did not audit the financial statements of the Urban Renewal Agency
and Cable Television discretely presented component units, which represent 100 percent of the
assets, net position, and revenues of the aggregate discretely presented component units. Those financial statements were audited by other auditors whose reports thereon have been furnished to
us, and our opinion, insofar as it relates to the amounts included for the Urban Renewal Agency
and Cable Television discretely presented component units, is based on the report of the other auditors.
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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our audit and the reports of other auditors provide a reasonable basis for our opinions.
In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component
units, each major fund and the aggregate remaining fund information of the NAME OF GOVERNMENT as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparison for the general fund for the
year then ended in conformity with accounting principles generally accepted in the United States
of America. In addition, in our opinion, the financial statements referred to above present fairly, in
all material respects, the respective financial position of each nonmajor governmental fund, internal service fund, and fiduciary fund of the NAME OF GOVERNMENT, as of June 30, 2022, and the
respective changes in financial position and, where applicable, cash flows thereof, and the budgetary comparisons for the library special revenue, debt service, and capital projects funds for the
year then ended in conformity with accounting principles generally accepted in the United States
of America.
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Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
In accordance with Government Auditing Standards, we have also issued a report dated October 31,
2022, on our consideration of the NAME OF GOVERNMENT’S internal control over financial reporting and 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 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 internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards
and should be considered in assessing the results of our audit.
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and required supplementary 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 assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the NAME OF GOVERNMENT’S basic financial statements. The introductory
section and statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has 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 it.
West, Lee, Roberts & Company
Certified Public Accountants
October 31, 2022
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Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Management’s Discussion and Analysis
As management of the NAME OF GOVERNMENT, we offer readers of the NAME OF GOVERNMENT’S financial statements this narrative overview and analysis of the financial activities of the
NAME OF GOVERNMENT for the fiscal year ended June 30, 2022. 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 on pages 3-7 of this report.
Financial Highlights
• The assets and deferred outflows of resources of the NAME OF GOVERNMENT exceeded its
liabilities at the close of the most recent fiscal year by $257,381,778 (net position). Of this amount,
$15,861,380 represents unrestricted net position, which may be used to meet the government’s
ongoing obligations to citizens and creditors.
• The NAME OF GOVERNMENT’S total net position decreased $16,822,869 because of a requirement to make contributions to an other postemployment benefits (OPEB) plan established during the current period.
• At the close of the current fiscal year, the NAME OF GOVERNMENT’S governmental funds reported combined fund balances of $26,319,196, a decrease of $15,418,066 in comparison with the
prior year. Approximately 42% of this amount ($11,175,698) is available for spending at the government’s discretion (unassigned fund balance).
• At the end of the current fiscal year, unrestricted fund balance (the total of the committed, assigned, and unassigned components of fund balance) for the general fund was $18,657,783, or approximately 14.6% of total general fund expenditures.
• The NAME OF GOVERNMENT’S total outstanding long-term debt decreased by $1,360,166
during the current fiscal year because short-term financing was used to provide resources for
certain projects in anticipation of the future issuance of long-term bonds.
Overview of the Financial Statements
The discussion and analysis provided here are intended to serve as an introduction to the NAME
OF GOVERNMENT’S basic financial statements. The NAME OF GOVERNMENT’S basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) the notes to financial statements. This report also includes
supplementary information intended to furnish additional detail to support 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 NAME OF GOVERNMENT’S finances, in a manner
similar to a private-sector business.
The statement of net position presents financial information on all of the NAME OF GOVERNMENT’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 NAME OF GOVERNMENT is improving or
deteriorating.
15
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
The statement of activities presents information showing how the NAME OF 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 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 of the government-wide financial statements distinguish functions of the NAME OF GOVERNMENT 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
NAME OF GOVERNMENT include general government, public safety, highways and streets,
sanitation, and culture and recreation. The business-type activities of the NAME OF GOVERNMENT include a Water Authority and a transit operation.
The government-wide financial statements include not only the NAME OF GOVERNMENT itself
(known as the primary government), but also a legally separate urban renewal agency and a legally
separate cable television operation for which the NAME OF GOVERNMENT is financially accountable. Financial information for these component units is reported separately from the financial information presented for the primary government itself. The Water Authority, although also
legally separate, functions for all practical purposes as a department of the NAME OF GOVERNMENT, and therefore has been included as an integral part of the primary government.
The government-wide financial statements can be found on pages 30-31 of this report.
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 NAME OF
GOVERNMENT, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the NAME
OF GOVERNMENT 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 on balances of spendable resources available at the end of the fiscal year. Such information may be useful in assessing a government’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 government’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.
The NAME OF GOVERNMENT maintains ten individual governmental funds. 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 fund, the capital
16
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
projects fund, and the debt service fund, which are considered to be major funds. Data from the
other seven governmental funds are combined into a single aggregated presentation. Individual
fund data for each of these nonmajor governmental funds is provided in the form of combining
statements in the combining and individual fund statements and schedules section of this report.
The NAME OF GOVERNMENT adopts an annual appropriated budget for its general fund. A
budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 32-36 of this report.
Proprietary Funds. The NAME OF GOVERNMENT maintains two different types of proprietary
funds. Enterprise funds are used to report the same functions presented as business-type activities in
the government-wide financial statements. The NAME OF GOVERNMENT uses enterprises
funds to account for its Water Authority and for its transit operation. Internal service funds are an
accounting device used to accumulate and allocate costs internally among the NAME OF GOVERNMENT’S various functions. The NAME OF GOVERNMENT uses internal service funds to account for the management of its retained risks and for its fleet of vehicles. Because both of these
services predominantly benefit governmental rather than business-type functions, they have been
included within governmental activities in the government-wide financial statements.
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 Authority and for the transit operation, both of which are considered to be
major funds of the NAME OF GOVERNMENT. Conversely, both internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds are provided in the form of combining statements in
the combining and individual fund statements and schedules section of this report.
The basic proprietary fund financial statements can be found on pages 37-39 of this report.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside of the government. Fiduciary funds are not reported in the government-wide financial
statements because the resources of those funds are not available to support the NAME OF GOVERNMENT’S own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds.
The NAME OF GOVERNMENT maintains three different types of fiduciary funds. The Pension
trust fund is used to report resources held in trust for retirees and beneficiaries covered by the Public Safety Employees’ Pension Plan. The Private-purpose trust fund is used to report resources held in
trust for prisoners to use to make purchases at the prison canteen. The Agency fund reports resources held by the NAME OF GOVERNMENT in a custodial capacity for individuals, private organizations and other governments.
The fiduciary fund financial statements can be found on pages 40-41 of this report.
Notes to the Financial Statements. The notes provide additional information that is necessary to
acquire a full understanding of the data provided in the government-wide and fund financial
statements. The notes to the financial statements can be found on pages 43-76 of this report.
17
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Other Information. In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the NAME OF GOVERNMENT’S
progress in funding its obligation to provide pension and OPEB benefits to its employees.
Required supplementary information can be found on page 77 of this report.
The combining statements referred to earlier in connection with nonmajor governmental funds
and internal service funds are presented immediately following the required supplementary information on pensions and OPEB. Combining and individual fund statements and schedules can
be found on pages 79-89 of this report.
Government-wide Overall Financial Analysis
As noted earlier, net position over time, may serve as a useful indicator of a government’s financial position. In the case of the NAME OF GOVERNMENT, assets and deferred outflows of resources exceeded liabilities by $257,381,778, at the close of the most recent fiscal year.
NAME OF GOVERNMENT’S Net Position
Governmental activities
2022
Current and other assets
Business-type activities
2021
2022
Total
2021
2022
2021
$ 56,683,011
$ 85,453,483
$11,375,197
$ 9,759,615
$ 68,058,208
$ 95,213,098
Capital assets
287,386,484
283,764,694
39,986,158
39,818,579
327,372,642
323,583,273
Total assets
344,069,495
369,218,177
51,361,355
49,578,194
395,430,850
418,796,371
726,762
611,528
1,353
726,762
612,881
102,557,945
92,165,863
10,361,034
11,138,206
112,918,979
103,304,069
20,175,107
37,243,344
5,681,748
4,657,192
25,856,855
41,900,536
122,733,052
129,409,207
16,042,782
15,795,398
138,775,834
145,204,605
205,692,289
211,236,392
29,056,307
28,563,887
234,748,596
239,800,279
Restricted
6,771,802
7,147,294
-
-
6,771,802
7,147,294
Unrestricted
9,599,114
22,036,812
6,262,266
5,220,262
15,861,380
27,257,074
$222,063,205
$240,420,498
$35,318,573
$33,784,149
$257,381,778
$274,204,647
Total deferred outflows of
resources
Long-term liabilities
oustanding
Other liabilities
Total liabilities
Net position:
Net investment in capital
assets
Total net position
By far, the largest portion of the NAME OF GOVERNMENT’S net position (91.3%) reflects its investment in capital assets (e.g., land, buildings, machinery, equipment, vehicles, and infrastructure), less any related outstanding debt that was used to acquire those assets. The NAME OF
GOVERNMENT uses these capital assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending. Although the NAME OF GOVERNMENT’S investment in capital assets is reported net of related debt, it should be noted that the resources used to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
18
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
An additional portion of the NAME OF GOVERNMENT’S net position (2.6%) represents resources that are subject to external restrictions on how they may be used. The remaining balance
of $15,861,380 is unrestricted and may be used to meet the government’s ongoing obligations to its
citizens and creditors.
At the end of the current fiscal year, the NAME OF GOVERNMENT is able to report positive balances in all reported categories of net position, both for the government as a whole, as well as for
its separate governmental and business-type activities. The same situation held true for the prior
fiscal year.
However, the NAME OF GOVERNMENT’S overall net position decreased $16,822,869 from the
prior fiscal year. The reasons for this overall decrease are discussed in the following sections for
governmental activities and business-type activities.
Governmental Activities. During the current fiscal year, net position for governmental activities
decreased $18,357,293 from the prior fiscal year for an ending balance of $222,063,205. While the
current recession certainly had an impact on the NAME OF GOVERNMENT, management was
able to take various actions (e.g., increasing rates for certain revenue sources, delaying certain
nonrecurring expenses, reducing expenses related to non-essential ongoing programs in the culture and recreation function) that neutralized its effect on governmental activities. The decrease in
the overall net position of governmental activities is the result of a recently negotiated OPEB plan
that will provide health care benefits to current and future retirees and their spouses and dependents during the life of the retiree. This plan became effective during the current year and the initial
annual required contribution (ARC) for the plan, which normally is the measure of expense for the
period, was $18,721,000. See pages 62-63 of the notes to the financial statements for more details
about this OPEB plan.
19
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
NAME OF GOVERNMENT’S Changes in Net Position
Governmental Activities
2022
Business-type Activities
2021
2022
Total
2021
2022
2021
Revenues:
Program revenues
Charges for services
$35,863,474
$ 34,141,828
$ 10,387,754
$ 9,426,262
$46,251,228
$ 43,568,091
Operating grants and
contributions
14,019,870
12,827,195
401,441
270,202
14,421,311
13,097,397
7,802,833
5,876,009
1,174,511
1,251,689
8,977,344
7,127,698
Property taxes
45,060,105
43,705,394
-
-
45,060,105
43,705,394
Other taxes
45,906,698
47,486,710
-
-
45,906,698
47,486,710
Grants and contributions not
restricted to specific
programs
1,753,982
1,692,600
-
-
1,753,982
1,692,600
Other
5,785,588
7,202,355
264,891
264,891
6,050,479
7,621,032
156,192,550
152,932,092
12,228,597
11,366,830
168,421,147
164,298,922
General government
31,887,579
28,317,571
-
-
31,887,579
28,317,571
Public safety
63,309,737
59,427,149
-
-
63,309,737
59,427,149
Highways and Streets
37,109,026
29,529,059
-
-
37,109,026
29,529,059
Sanitation
10,571,560
9,914,570
-
-
10,571,560
9,914,570
Culture and recreation
24,711,598
27,023,265
-
-
24,711,598
27,023,265
3,232,134
2,838,043
-
-
3,232,134
2,838,043
Water
-
-
8,447,428
8,356,237
8,447,428
8,356,237
Transit
-
-
5,974,954
5,762,334
5,974,954
5,762,334
Total expenses
170,821,634
157,049,657
14,422,382
14,118,571
185,244,016
171,168,228
Increase (decrease) in net
position before transfers
(14,629,084)
(4,117,565)
(2,193,785)
(2,751,741)
(16,822,869)
(6,869,306)
(3,728,209)
(3,604,638)
3,728,209
3,604,638
-
-
Increase (decrease) in net
position
(18,357,293)
(7,722,204)
1,534,424
852,897
(16,822,869)
(6,869,307)
Net position – beginning
240,420,498
248,142,701
33,784,149
32,931,252
274,204,647
281,073,953
$222,063,205
$240,420,498
$35,318,573
33,784,149
$257,381,778
$274,204,647
Capital grants and
contributions
General revenues:
Total revenues
Expenses:
Interest on long-term debt
Transfers
Net position – ending
20
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Business-type Activities. For the NAME OF GOVERNMENT’S business-type activities, the results for the current fiscal year were positive in that overall net position increased to reach an ending balance of $35,318,573. The total increase in net position for business-type activities (water and
transit funds) was $1,534,424 or 4.5% from the prior fiscal year. The growth, in large part, is attributable to a 5% water rate increase enacted for the fiscal year 2021-22 budget. As a result, revenues
from water activity charges for services increased $922,179, over the previous year’s amount. An
additional cause for the overall increase was the receipt of an unexpected capital grant of $250,000
restricted for use in purchasing upgraded vehicles for the transit operation.
Financial Analysis of Governmental Funds
As noted earlier, the NAME OF GOVERNMENT uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements.
Governmental Funds. The focus of the NAME OF GOVERNMENT’S governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the NAME OF GOVERNMENT’S financing requirements. In
particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not
yet been limited to use for a particular purpose by either an external party, the NAME OF GOVERNMENT itself, or a group or individual that has been delegated authority to assign resources
for use for particular purposes by the NAME OF GOVERNMENT’S Council.
At June 30, 2022, the NAME OF GOVERNMENT’S governmental funds reported combined fund
balances of $26,319,196, a decrease of $15,418,066 in comparison with the prior year. Approximately 42.5% of this amount ($11,175,698) constitutes unassigned fund balance, which is available
for spending at the government’s discretion. The remainder of the fund balance is either
nonspendable, restricted, committed, or assigned to indicate that it is 1) not in spendable form
($1,145,499), 2) legally required to be maintained intact ($10,000), 3) restricted for particular purposes ($9,199,459), 4) committed for particular purposes ($1,980,153), or 5) assigned for particular
purposes ($2,808,387).
21
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
The general fund is the chief operating fund of the NAME OF GOVERNMENT. At the end of the
current fiscal year, unassigned fund balance of the general fund was $15,442,019, while total fund
balance decreased to $19,802,668. As a measure of the general fund’s liquidity, it may be useful to
compare both unassigned fund balance and total fund balance to total general fund expenditures.
Unassigned fund balance represents approximately 12.1 percent of total general fund expenditures, while total fund balance represents approximately 15.5 percent of that same amount.
The fund balance of the NAME OF GOVERNMENT’S general fund decreased by $8,569,758 during the current fiscal year. As discussed earlier in connection with governmental activities, the decrease was due to a requirement for the NAME OF GOVERNMENT to contribute to a newly
22
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
established OPEB plan. The actual total contributions made during the year from the general fund
were $7,853,000.
The capital projects fund, a major fund, had a $8,258,317 decrease in fund balance during the current fiscal year which put the overall fund balance in a deficit position for the amount of
-$2,191,321. The fund reports an even larger deficit of unassigned fund balance -$4,266,321 because of amounts restricted ($875,000) and committed ($1,200,000) for a special assessment project
that began during the current fiscal year.
The large decrease in fund balance was caused mainly by the spending of resources obtained
through the issuance of long-term debt in the prior period on capital acquisition and construction
in the current period. That is, the fund balance that resulted from the previous long-term debt issuance was spent down during the current period as the related capital projects progressed.
Another reason for the decrease in fund balance for the current year was the use of short-term
debt. In the case of the capital projects fund, bond anticipation notes (BANS) were issued to finance expenditures of certain capital projects. When issued, short-term BANS are reported as a liability on the balance sheet, with no effect on fund balance (i.e., proceeds = liability for debt).
However, as the proceeds are spent, the related expenditures cause a decrease in fund balance.
The overall deficit results when the short-term debt is outstanding but the proceeds from its issuance have been spent (i.e., there are no assets available to net against the fund liability for the BANS).
BANS in the amount of $6,905,200 remained outstanding and were reported as a liability in the
capital projects fund at year end, while only $2,638,879 of the proceeds remained unspent. The difference between these two amounts ($4,266,321) is the amount reported as the deficit in unassigned fund balance in the capital projects fund at the end of the year. It is our intent to issue
long-term bonds to replaces the BANS. The issuance of the bonds will eliminate both the unassigned and the overall fund balance deficit in the capital projects fund.
The debt service fund, the remaining major governmental fund, had an increase in fund balance
during the current year of $1,297,555 to bring the year end fund balance to $2,415,560. The increase
essentially results from a special assessment project that began during the current year. First, a
debt service reserve of $846,000 was established in the debt service fund through a transfer from
the capital projects fund. Second, the first installment of the special assessment receivable,
$470,000, was collected, along with related interest of $188,000. The total increase in fund balance
from these three amounts is $1,504,000. The overall increase for the year did not reach this amount
because a portion of the fund balance at the beginning of the year was used for debt service payments during the year.
Proprietary Funds. The NAME OF GOVERNMENT’S proprietary funds provide the same type of
information found in the government-wide financial statements, but in more detail.
Unrestricted net position of the Water Authority at the end of the year was $5,376,158 and for the
transit operation was $588,590. The total growth in net position for both funds was $1,258,270 and
$259,190, respectively. As noted earlier in the discussion of business-type activities, the increase
for the Water Authority results from a 5 percent water rate increase in the current year and an unexpected capital grant of $250,000 resulted in the growth reported by the transit operation.
23
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
General Fund Budgetary Highlights
Original budget compared to final budget. During the year there was no need for any significant
amendments to increase either the original estimated revenues or original budgeted appropriations. However, there was a need to make an amendment to reallocate appropriations among departments when it became clearer which departments would actually be charged for certain
employee benefits such as pensions and other postemployment benefits. Generally, the movement of the appropriations between departments was not significant. The exception was the appropriation for the Council department in the general government function which was increased
by $2,033,040.
Final budget compared to actual results. The most significant differences between estimated revenues and actual revenues were as follows:
Revenue source
Licenses and permits
Intergovernmental
Charges for services
Investment earnings
Estimated
revenues
Actual
revenues
Difference
$ 4,166,256
11,414,391
17,738,732
1,258,200
$ 2,649,889
9,705,931
19,091,893
3,349,530
$(1,516,367)
(1,708,460 )
1,353,161
2,091,330
The shortfalls in the above revenue sources were caused by the recession experienced during the
current year. Licenses and permits were less than estimated because there were less of these items
purchased, particularly in the case of business licenses and building permits. Intergovernmental
is the classification used to report grant revenues. The recession impacted the state and most other
general and special-purpose governments. Accordingly, the grants that these other governments
were able to provide were less than expected. Actual grants from the state were approximately
$1,250,000 less than estimated while grants from other governments were approximately $500,000
less.
Over the last decade the NAME OF GOVERNMENT has worked to identify and implement more
charges for various programs and activities. This has included certain housing programs, but has
been especially true in the case of various cultural activities (e.g., performing arts) and recreational activities (e.g., use of recreational facilities such as swimming pools, indoor basketball
courts, charges for night time lighting of outdoor facilities). The goal of this effort was to increase
the percentage of total revenues that are provided by this classification. As discussed in the letter
of transmittal this effort has been moderately successful in increasing the proportion of total revenues of governmental funds that results from these charges.
Ironically, the increase in investment earnings is also attributable to the current recession. As noted
earlier in the discussion about governmental activities, actions were taken during the year to help
mitigate the negative impact of the economic downturn. The result of these actions (e.g., delaying
the payment of nonrecurring expenditures/expenses) was a significantly larger than anticipated
balance available for investment. Moreover, in some cases it was possible to invest these amounts
for longer periods, which also enhanced total investment earnings for the year.
A review of actual expenditures compared to the appropriations in the final budget yields no significant variances with one exception. Actual expenditures for the prospective inspection department within the public safety function ($1,685,839) exceeded the related appropriation of
$1,664,092, by $21,747. While the overspending of this appropriation (by up to $100,000) is autho-
24
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
rized by law in cases involving imminent public endangerment (e.g., the need to inspect properties with damage from collision, natural disaster, fire, or water to determine their inherent
stability), such overspending is still considered a budgetary violation. Furthermore, the overspending affects the subsequent year’s budget. That is, the amount of the overspending caused by
situations involving imminent public endangerment automatically decreases the portion of the
protective inspective appropriation for the subsequent year that relates to routinely scheduled inspections.
This year’s overspending was, in fact, caused by imminent public endangerment cases. Accordingly, the violation is displayed on the face of the General Fund Statement of Revenues, Expenditures,
and Changes in Fund Balance – Budget and Actual and is disclosed in the notes to the financial statements. The necessary adjustment was made to the appropriation that was legally adopted for the
subsequent year’s budget.
Capital Assets and Debt Administration
Capital assets. The NAME OF GOVERNMENT’S investment in capital assets for its governmental and business-type activities as of June 30, 2022, amounts to $327,372,462 (net of accumulated
depreciation). This investment in capital assets includes land, buildings, machinery, equipment,
vehicles, park facilities, roads, highways, bridges, and the water treatment plant. The total increase in capital assets for the current fiscal year was approximately 1.2%.
NAME OF GOVERNMENT’S Capital Assets
(net of depreciation)
Governmental activities
2022
Business-type activities
2021
2022
Total
2021
2022
2021
Land
$ 50,067,172
$ 50,067,172
$ 1,911,400
$ 1,911,400
$ 51,978,572
$ 51,978,572
Buildings
132,720,452
113,431,112
7,534,014
5,851,282
140,254,466
119,282,394
Machinery, equipment,
and vehicles
13,114,538
11,740,088
51,361,355
3,193,858
16,881,890
14,933,946
Infrastructure
81,614,204
85,552,225
-
-
81,614,204
85,552,225
Water distribution system
-
-
21,401,728
22,135,705
21,401,728
22,135,705
Construction in progress
9,870,118
22,974,097
5,371,664
6,726,334
15,241,782
29,700,431
$287,386,484
$283,764,694
$39,986,158
$39,818,579
$327,372,642
$323,583,273
Total
Major capital asset events during the current fiscal year included the following:
• Various projects related to streets, sidewalks and storm water drains at a cost of $4,847,666.
• A new parking garage with construction costs of $4,483,790 was completed and placed in service during the current year.
• Other parking structure and parking lot rehabilitation at a total cost of $2,047,220.
• Completion of renovations to various fire protection facilities at a cost of $7,222,315.
• Public Safety dispatch upgrades and renovations to police and fire facilities (construction in
progress as of the close of the fiscal year had reached $2,517,168).
25
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
• Completion of an expanded maintenance facility for the transit operation during the current
year at a cost of $2,150,249.
• The purchase of various vehicles and equipment at a total cost of $4,741,410.
Additional information on the NAME OF GOVERNMENT’S capital assets can be found in Note
IV.D on pages 57-59 of this report.
Long-term Debt. At the end of the current fiscal year, the NAME OF GOVERNMENT had total
bonded debt outstanding of $88,256,015. Of this amount, $83,556,015 is debt backed by the full
faith and credit of the government and $4,700,000 is special assessment debt for which the government is liable in the event of default by the property owners subject to the assessment. The remainder of the NAME OF GOVERNMENT’S long-term obligations comprises pension-related debt
and capital leases.
NAME OF GOVERNMENT’S Outstanding Debt
(net of depreciation)
Governmental activities
Business-type activities
Total
2022
2021
2022
2021
2022
2021
$73,522,878
$77,994,507
$10,042,137
$11,069,820
$ 83,565,015
$89,064,327
Special assessment bonds
with governmental
commitment
4,691,000
-
-
-
4,691,000
323,583,273
Pension related debt
4,739,557
5,437,453
-
-
4,739,557
5,437,453
146,042
-
-
-
146,042
-
$83,099,477
$83,431,960
$10,042,137
$11,069,820
$ 93,141,614
$94,501,780
General obligation bonds
Capital leases
Total
The NAME OF GOVERNMENT’S total debt decreased by $1,360,166, (1.4 percent) during the current fiscal year. The reason for the decrease was that the only new debt issuance during the year
was for an amount that was less than the regularly scheduled principal reductions on the existing
outstanding debt. The new issuance was special assessment debt with governmental commitment
with a face value of $4,700,000.
In addition to the one new debt issuance, the NAME OF GOVERNMENT issued general obligation bonds to refinance previously outstanding general obligation bonds reported in governmental activities. This refinancing was done to take advantage of favorable interest rates. The result is
expected to be a decrease in future debt service payments of $327,142.
The NAME OF GOVERNMENT and its Water Authority both maintain a “AA” rating from Standard & Poor’s and Fitch Ratings and a “Aa” rating from Moody’s Investors Service for general obligation debt.
State statutes limit the amount of general obligation debt a governmental entity may issue to 7
percent of the average full valuation. The current debt limitation for the NAME OF GOVERNMENT is $654,486,768, which is significantly in excess of the NAME OF GOVERNMENT’S outstanding general obligation debt.
26
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Additional information on the NAME OF GOVERNMENT’S long-term debt can be found in Note
IV.L on pages 67-72 of this report.
Economic Factors and Next Year’s Budgets and Rates
The following economic factors currently affect the NAME OF GOVERNMENT and were considered in developing the 2022-2023 fiscal year budget.
• The unemployment rate for the NAME OF GOVERNMENT is currently 7.1 percent, which is a
significant increase from a rate of 4.6 percent a year ago because of the current recession. While
the unemployment rate is likely to decrease, it is not expected to reach the pre-recession level for
several years
• An 8 percent increase in water rates beginning July 1, 2022 anticipating current and future expenditure increases due to additional state and federal water quality mandates.
• A property tax rate increase of 6.5% to fund increases in recurring expenditure obligations.
• An increase in the rates on the NAME OF GOVERNMENT’S current fee schedule.
• Several new revenue sources were enacted in the 2022-23 budget year, including a fire inspection fee on commercial and multi-family dwellings, a taxi medallion fee, and a room occupancy
tax on hotel rooms and similar lodgings.
• Declines in the taxable assessed value as a percentage of estimated actual value and resulting
decreases in property assessments will continue to affect the NAME OF GOVERNMENT’S real
property tax base.
• Declines in housing prices and sales are expected to continue throughout the fiscal year, further
straining mortgage tax revenues and assessed values.
• Interest rates are expected to remain at record low levels throughout fiscal year 2022-23.
• On the expenditure side, increases are expected in health insurance premiums, as well as pension and other employee benefit costs.
• The NAME OF GOVERNMENT continues to purchase a catastrophic liability insurance policy
to protect itself from unforeseen losses in excess of $1 million.
• The NAME OF GOVERNMENT’S daytime population exceeds 300,000 persons a day, requiring twenty-four hour services for residents and non-residents alike.
• Departmental budget reductions were implemented in recognition of the decline in revenues as
a result of the current recession.
• Contract settlements with all of the NAME OF GOVERNMENT’s unions.
During the current fiscal year, the unassigned fund balance in the general fund was $15,442,019.
The NAME OF GOVERNMENT has appropriated $2,215,728 of this amount for spending in the
2022-2023 fiscal year budget. This action was taken as an additional measure to mitigate the impact of the recession on the 2022-2023 fiscal year budget.
Requests for Information
This financial report is designed to provide a general overview of the NAME OF GOVERNMENT’S finances for all those with an interest in the government’s finances. Questions concerning
any of the information provided in this report or requests for additional financial information
should be addressed to the Office of the Finance Director, 7529 West Kilwood Street, NAME OF
GOVERNMENT, STATE, ZIP CODE.
27
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
This page is intentionally blank.
28
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Basic Financial Statements
29
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Statement of Net Position
June
June 30, 2022
Governmental
Activities
ASSETS
Cash and cash equivalents
Investments
Restricted assets-customer deposits
Receivables (net of allowance for uncollectibles)
Intergovernmental receivable
Due from component unit
Internal balances
Inventories
Prepaids
Net pension asset
Capital assets not being depreciated:
Land
Construction in progress
Capital assets, net of accumulated depreciation:
Buildings
Machinery, equipment, and vehicles
Infrastructure
Water distribution system
Total Assets
$
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding
Total deferred outflows of resources
LIABILITIES
Accounts payable and other accrued liabilities
Contracts and retainage payable
Accrued interest payable
Deposits payable
Intergovernmental payable
Due to primary government
Bond anticipation notes payable
Revenue anticipation note payable
Due to retirement systems
Unearned revenues
Noncurrent liabilities:
Due within one year
Due in more than one year
Total Liabilities
NET POSITION
Net investment in capital assets
Restricted for:
Capital projects
Debt service
Housing services
Law enforcement
Community redevelopment:
Expendable
Nonexpendable
Other purposes
Unrestricted
Total Net Position
$
30, 2022
Primary Government
Business-type
Activities
18,745,183
22,119,677
13,015,337
1,709,483
32,615
(309,518)
829,294
86,551
454,389
$
3,699,844
2,136,642
30,715
4,203,602
877,295
309,518
117,581
-
Total
$
22,445,027
24,256,319
30,715
17,218,939
2,586,778
32,615
946,875
86,551
454,389
Component Units
Urban Renewal
Cable
Agency
Television
$
195,647
3,000
-
$
462,992
273,328
2,266
-
50,067,172
9,870,118
1,911,400
5,371,664
51,978,572
15,241,782
6,601,630
-
-
132,720,452
13,114,538
81,614,204
344,069,495
7,534,014
3,767,352
21,401,728
51,361,355
140,254,466
16,881,890
81,614,204
21,401,728
395,430,850
6,800,277
206,426
945,012
726,762
726,762
-
726,762
726,762
-
-
5,912,641
2,199,240
716,657
18,367
6,905,200
2,105,481
2,317,521
1,601,417
24,937
143,219
30,715
28,547
1,625,000
35,364
2,192,549
7,514,058
2,224,177
859,876
49,082
28,547
8,530,200
2,140,845
4,510,070
5,801
16,218
32,615
4,000,000
-
24,620
11,260
6,640
150,000
10,403,155
92,154,790
122,733,052
944,957
9,416,077
16,042,782
11,348,112
101,570,867
138,775,834
4,054,634
1,050
43,216
236,786
205,692,289
29,056,307
234,748,596
6,601,630
206,426
338,917
852,903
625,881
376,200
-
338,917
852,903
625,881
376,200
-
-
4,514,328
10,000
53,573
9,599,114
222,063,205
6,262,266
35,318,573
4,514,328
10,000
53,573
15,861,380
257,381,778
(3,855,987)
2,745,643
501,800
708,226
$
The notes to financial statements are an integral part of this statement.
30
$
$
$
31
$
$
$
$
739,627
662,682
1,402,309
8,447,428
5,974,954
14,422,382
185,244,016
31,887,579
63,309,737
37,109,026
10,571,560
24,711,598
3,232,134
170,821,634
The notes to financial statements are an integral part of this statement.
Component units:
Urban Renewal Agency
Cable Television
Total component units
Business-type activities:
Water
Transit
Total business-type activities
Total primary government
Functions/Programs:
Primary government:
Governmental activities:
General government
Public safety
Highways and streets
Sanitation
Culture and recreation
Interest
Total governmental activities
Expenses
755,557
755,557
9,457,623
930,131
10,387,754
46,251,228
7,677,948
12,377,439
9,301,285
2,682,219
3,824,583
35,863,474
$
$
$
$
-
10,967
390,474
401,441
14,421,311
5,306,533
874,480
7,838,857
14,019,870
$
$
$
$
-
1,174,511
1,174,511
8,977,344
241,967
130,171
7,336,601
94,094
7,802,833
Capital
Grants and
Contributions
222,063,205
Net position - ending
(18,357,293)
45,060,105
44,368,865
1,537,833
1,753,982
3,440,745
22,276
2,322,567
(3,728,209)
94,778,164
(113,135,457)
(23,967,664)
(45,495,594)
(19,596,660)
(7,889,341)
(12,954,064)
(3,232,134)
(113,135,457)
240,420,498
$
$
Governmental
Activities
Net position - beginning
Change in net position
General revenues:
Property taxes
Sales taxes
Franchise taxes
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Gain on sale of capital assets
Miscellaneous
Transfers
Total general revenues and transfers
$
$
$
$
Charges for
Services
Program Revenues
Operating
Grants and
Contributions
Name of Government
Statement of Activities
For the Year Ended June 30, 2022
$
$
35,318,573
33,784,149
1,534,424
264,891
3,728,209
3,993,100
1,021,162
(3,479,838)
(2,458,676)
(2,458,676)
-
$
$
257,381,778
274,204,647
(16,822,869)
45,060,105
44,368,865
1,537,833
1,753,982
3,705,636
22,276
2,322,567
98,771,264
1,021,162
(3,479,838)
(2,458,676)
(115,594,133)
(23,967,664)
(45,495,594)
(19,596,660)
(7,889,341)
(12,954,064)
(3,232,134)
(113,135,457)
$
$
2,745,643
3,399,510
(653,867)
708,226
604,480
103,746
10,871
85,760
92,875
92,875
-
-
-
2,061
8,810
$
$
75,043
10,717
-
(739,627)
(739,627)
-
-
-
Net (Expense) Revenue and Changes in Net Position
Primary Government
Component Units
Business-type
Urban Renewal
Cable
Activities
Total
Agency
Television
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Balance
Sheet
Name of Government
Governmental
BalanceFunds
Sheet
June
30, 2022 Funds
Governmental
June 30, 2022
General
ASSETS
Cash and cash equivalents
Investments
Receivables (net of allowance for uncollectibles)
Intergovernmental receivable
Due from other funds
Due from component unit
Inventories
Prepaid items
Advances to other funds
Total assets
$
$
LIABILITIES
Accounts payable
Contracts payable
Retainage payable
Accrued liabilities
Deposits payable
Due to retirement systems
Due to other funds
Advances from other funds
Bond anticipation notes payable
Unearned revenue-other
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-property taxes
Unavailable revenue-special assessments
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Nonspendable:
Endowment
Inventory
Prepaid items
Long-term interfund advances
Restricted:
Special assessment project
Library purposes
Housing services
Community redevelopment
Law enforcement
Youth programs
Nonrecurring repairs and other parking improvements
General obligation debt
Special assessment debt
Committed:
Special asesssment project
Revenue stabilization
Open space
Assigned:
Purchases on order
Subsequent year's budget: appropriation of fund balance
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources, and fund balances (deficits)
$
$
Capital Projects
6,127,206
14,989,065
6,067,247
513,579
145,000
32,615
806,623
48,114
290,148
29,019,597
$
$
1,090,139
4,980,521
507,459
335,000
6,913,119
Total
Nonmajor
Funds
Debt Service
$
$
1,362,371
1,000,000
4,309,618
6,671,989
$
$
Total
Governmental
Funds
4,281,747
538,805
2,502,201
688,445
614
8,011,812
$
$
12,861,463
21,508,391
12,879,066
1,709,483
480,000
32,615
806,623
48,728
290,148
50,616,517
1,646,243
2,504,060
2,024,105
335,000
2,089,936
8,599,344
1,129,196
1,070,044
6,905,200
9,104,440
-
516,358
431,957
18,367
78,108
157,000
290,148
227,585
1,719,523
2,162,601
1,129,196
1,070,044
2,936,017
18,367
2,102,213
492,000
290,148
6,905,200
2,317,521
19,423,307
617,585
617,585
-
26,429
4,230,000
4,256,429
-
644,014
4,230,000
4,874,014
806,623
48,114
290,148
-
875,000
-
911,560
1,504,000
407,377
-
1,200,000
-
592,659
2,215,728
15,442,019
19,802,668
29,019,597
The notes to financial statements are an integral part of this statement.
32
$
$
-
(4,266,321)
(2,191,321)
6,913,119
$
$
$
10,000
614
-
$
10,000
806,623
48,728
290,148
52,276
625,881
4,514,328
376,200
1,297
338,917
-
875,000
52,276
625,881
4,514,328
376,200
1,297
338,917
911,560
1,504,000
-
372,776
1,200,000
407,377
372,776
2,415,560
6,671,989
6,292,289
8,011,812
592,659
2,215,728
11,175,698
26,319,196
50,616,517
$
$
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position
June 30, 2022
Amounts reported for governmental activities in the statement of net position (page 30) are different because:
Total fund balances - governmental funds (page 32)
$
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds.
26,319,196
284,482,458
The net pension asset is not an available resource and, therefore, is not reported
in the funds.
454,389
Other long-term assets are not available to pay for current period expenditures
and, therefore, are reported as unavailable revenue in the funds.
4,874,014
Internal service funds are used by management to charge the cost of fleet
management and risk management to individual funds. The assets and
liabilities of the internal service funds are included in governmental
activities in the statement of net position.
4,814,931
Long-term liabilities, including bonds payable, are not due and payable in
the current period and, therefore, are not reported in the funds.
(98,881,783)
Net position of governmental activities
$
The notes to financial statements are an integral part of this statement.
33
222,063,205
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2022
General
REVENUES
Property taxes
Sales taxes
Franchise taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Investment earnings
Fees
Special assessments
Miscellaneous
Total revenues
$
EXPENDITURES
Current:
General government
Public Safety
Highways and streets
Sanitation
Culture and recreation
Debt service:
Principal
Interest
Bond issuance costs
Capital outlay
General government
Public Safety
Highways and streets
Sanitation
Culture and recreation
Total expenditures
Excess (deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Refunding bonds issued
Premium on refunding bonds issued
Special assessment bonds issued
Discount on special assessment bonds issued
Payment to refunded bond escrow agent
Capital lease
Sale of general capital assets
Insurance recoveries
Total other financing sources (uses)
Net change in fund balances
Fund balances-beginning
Fund balances (deficit)-ending
$
31,331,083
44,368,865
1,537,833
2,649,889
9,705,931
19,091,893
6,670,562
3,349,530
4,644,708
123,350,294
Capital Projects
$
874,480
201,620
1,076,100
Total
Nonmajor
Funds
Debt Service
$
7,935,396
241,967
470,000
8,647,363
$
5,539,162
7,185,616
38,681
4,976,526
329,712
18,069,697
Total
Governmental
Funds
$
44,805,641
44,368,865
1,537,833
2,649,889
17,766,027
19,091,893
6,670,562
3,831,798
4,976,526
470,000
4,974,420
151,143,454
29,778,662
56,335,850
23,233,034
8,140,187
9,735,013
-
-
390,828
4,238,979
13,295,900
29,778,662
56,726,678
27,472,013
8,140,187
23,030,913
150,000
-
4,718,317
3,236,206
122,710
-
4,718,317
3,236,206
272,710
127,372,746
462,180
1,465,901
9,574,399
1,696,099
1,443,330
14,641,909
8,077,233
17,925,707
462,180
1,465,901
9,574,399
1,696,099
1,443,330
168,017,595
570,130
143,990
(16,874,141)
(4,022,452)
(13,565,809)
20,944
(4,939,824)
146,042
31,450
194,082
(4,547,306)
1,831,625
(1,214,133)
4,700,000
(10,000)
5,307,492
1,226,340
(621,625)
5,810,000
249,914
(5,937,204)
727,425
252,695
(284,231)
(31,536)
3,331,604
(7,059,813)
5,810,000
249,914
4,700,000
(10,000)
(5,937,204)
146,042
31,450
194,082
1,456,075
(8,569,758)
(8,258,317)
1,297,555
112,454
(15,418,066)
28,372,426
6,066,996
1,118,005
6,179,835
19,802,668
$
(2,191,321)
The notes to financial statements are an integral part of this statement.
34
$
2,415,560
$
6,292,289
41,737,262
$
26,319,196
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of
Government
Name
of Government
Reconciliation
of the Statement
of Revenues,
Expenditures
and Changes
in
Reconciliation
of the Statement
of Revenues,
Expenditures
and Changes
in
Fund Balances
of Governmental
Funds Funds
to the Statement
of Activities
Fund Balances
of Governmental
to the Statement
of Activities
For theFor
Year
June 30,
202230, 2022
theEnded
Year Ended
June
Amounts reported for governmental activities in the statement of activities (page 31) are
different because:
Net Change in Fund Balances - total governmental funds (page 34)
$
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of these assets is allocated over their estimated
useful lives and reported as depreciation expense. This is the amount by which
capital outlays exceeded depreciation expense in the current period.
(15,418,066)
3,237,028
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.
4,436,149
The net effect of various miscellaneous transactions involving capital assets
(i.e., sales and donations) is to increase net assets.
118,826
The issuance of long-term debt (e.g., bonds, leases) provides current financial
resources to governmental funds, while the repayment of the principal of long-term
debt consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net position. Also, governmental funds
report the effect of issuance costs, premiums, discounts, and similar items when
debt is first issued, whereas these amounts are deferred and amortized in the
statement of activities. This amount is the net effect of these differences in the
treatment of long-term debt and related items.
(240,435)
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 the governmental funds.
(10,249,187)
The internal service funds are used by management to charge the costs of fleet
management and risk management to individual funds. The net revenue of certain
activities of internal service funds is reported with governmental activities.
Change in net position of governmental activities
(241,608)
$
The notes to financial statements are an integral part of this statement.
35
(18,357,293)
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
General Fund
Statement of Revenues Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2022
Budgeted Amounts
Original
REVENUES
Taxes:
Property
Sales
Franchise
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Investment earnings
Miscellaneous
Total Revenues
$
EXPENDITURES
Current:
General government:
Council
Manager
Attorney
Clerk
Personnel
Financial administration
Other - unclassified
Total general government
Public safety:
Police
Fire
Protective Inspection
Total public safety
Highways and streets:
Engineering
Maintenance
Total highways and streets
Sanitation
Culture and recreation
Debt Service
Principal
Interest
Bond issaunce costs
Total debt service
Total expenditures
Excess (deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Capital leases
Sales of general capital assets
Insurance recoveries
Total other financing sources (uses)
Net change in fund balances*
Fund balance-beginning
Fund balance-ending
$
Final
32,077,856
45,400,000
1,345,000
4,166,256
11,381,830
17,738,732
7,762,650
1,258,200
4,884,779
126,015,303
$
32,077,856
45,400,000
1,345,000
4,166,256
11,414,391
17,738,732
7,762,650
1,258,200
4,886,579
126,049,664
Variance with
Final Budget
Actual
$
31,331,083
44,368,865
1,537,833
2,649,889
9,705,931
19,091,893
6,670,562
3,349,530
4,644,708
123,350,294
$
(746,773)
(1,031,135)
192,833
(1,516,367)
(1,708,460)
1,353,161
(1,092,088)
2,091,330
(241,871)
(2,699,370)
369,990
838,614
2,013,374
601,729
883,087
17,113,359
7,156,598
28,976,751
2,403,030
841,163
2,022,931
635,227
887,297
17,093,461
7,146,204
31,029,313
2,385,762
812,724
1,530,351
627,728
843,765
16,510,890
7,067,442
29,778,662
(17,268)
(28,439)
(492,580)
(7,499)
(43,532)
(582,571)
(78,762)
(1,250,651)
34,440,844
22,104,801
1,562,911
58,108,556
33,731,795
21,829,599
1,664,092
57,225,486
33,012,167
21,637,844
1,685,839
56,335,850
(719,628)
(191,755)
21,747
(889,636)
8,003,477
16,255,388
24,258,865
8,841,384
10,177,528
8,021,568
16,078,104
24,099,672
8,441,350
9,878,404
7,841,369
15,391,665
23,233,034
8,140,187
9,735,013
(180,199)
(686,439)
(866,638)
(301,163)
(143,391)
473,234
219,879
693,113
131,056,197
473,234
224,663
150,000
847,897
131,522,122
150,000
150,000
127,372,746
(473,234)
(224,663)
(697,897)
(4,149,376)
(5,040,894)
(5,472,458)
(4,022,452)
1,450,006
(6,727,010)
(6,727,010)
(6,483,534)
(6,483,534)
20,944
(4,939,824)
146,042
31,450
194,082
(4,547,306)
20,944
1,543,710
146,042
31,450
194,082
1,936,228
(11,767,904)
(11,955,992)
(8,569,758)
3,386,234
28,372,426
28,372,426
28,372,426
16,604,522
$
16,416,434
$
19,802,668
* The net change in fund balances was included in the budget as an appropriation (i.e., spenddown) of fund balance.
The notes to financial statements are an integral part of this statement.
36
$
3,386,234
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name
of Government
Name of
Government
Statement
Net Position
Statement
of Net of
Position
Proprietary
Proprietary
Funds Funds
June
June 30,
202230, 2022
Governmental
Activities
Business-type Activities
Water
ASSETS
Current Assets:
Cash and cash equivalents
Investments
Restricted assets-customer deposits
Interest receivable
Accounts receivable
Due from other funds
Intergovernmental receivable
Inventories
Prepaid items
Total current assets
Noncurrent Assets:
Capital Assets:
Land
Buildings
Machinery, equipment, and vehicles
Water distribution system
Construction-in-progress
Less accumulated depreciation
Total noncurrent assets
Total assets
$
1,388,998
2,136,642
30,715
22,468
4,145,017
7,723,840
Total
Enterprise Funds
Transit
$
2,310,846
2,383
33,734
12,000
877,295
117,581
3,353,839
$
3,699,844
2,136,642
30,715
24,851
4,178,751
12,000
877,295
117,581
11,077,679
Internal Service
Funds
$
5,883,720
611,286
7,079
129,192
22,671
37,823
6,691,771
584,715
5,274,379
1,376,709
35,422,287
5,371,664
(17,093,131)
30,936,623
38,660,463
1,326,685
7,639,062
9,952,998
(9,869,210)
9,049,535
12,403,374
1,911,400
12,913,441
11,329,707
35,422,287
5,371,664
(26,962,341)
39,986,158
51,063,837
87,745
5,283,268
(2,466,987)
2,904,026
9,595,797
LIABILITIES
Current liabilities:
Accounts payable
Accrued liabilities
Compensated absences
Claims and judgments
Retainage payable
Customer deposits payable-restricted assets
Accrued interest payable
Bond anticipation note payable
Intergovernmental payable
Due to retirement system
Bonds payable - current
Unearned revenue
Total current liabilities
1,057,264
5,990
24,937
30,715
143,219
1,625,000
35,364
938,967
3,861,456
532,741
11,412
28,547
2,192,549
2,765,249
1,590,005
11,412
5,990
24,937
30,715
143,219
1,625,000
28,547
35,364
938,967
2,192,549
6,626,705
814,023
16,679
2,174,256
3,268
3,008,226
Noncurrent liabilities:
Compensated absences
Claims and judgments
Bonds payable
Other post employment benefits obligation
Total noncurrent liabilities
Total liabilities
53,907
9,103,170
259,000
9,416,077
13,277,533
2,765,249
53,907
9,103,170
259,000
9,416,077
16,042,782
27,589
1,386,533
61,000
1,475,122
4,483,348
NET POSITION
Net investment in capital assets
Unrestricted
20,006,772
5,376,158
9,049,535
588,590
29,056,307
5,964,748
2,904,026
2,208,423
25,382,930
9,638,125
35,021,055
Total net position
Adjustment to report the cumulative internal balance for the net effect of the activity
between the internal service funds and the enterpise funds over time
297,518
$
Net position of business-type activities (page 30)
The notes to financial statements are an integral part of this statement
37
35,318,573
$
5,112,449
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Name of Government
Statement of Revenues, Expenses and Changes in Net Position
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
Proprietary Funds
For the Year Ended June 30, 2022
For the Year Ended June 30, 2022
Governmental
Activities
Business-type Activities
Water
Operating revenues:
Charges for services:
Metered water sales
Tap fees
Passanger fares
Contract transit
Charter
Risk management
Fleet management
Miscellaneous
Total operating revenues
$
Total
Enterprise Funds
Transit
9,312,150
12,050
133,423
9,457,623
$
762,983
126,353
248
40,547
930,131
$
9,312,150
12,050
762,983
126,353
248
173,970
10,387,754
Internal Service
Funds
$
2,632,108
1,902,063
4,534,171
Operating expenses:
Personnel services
Materials and supplies
Contractual services
Claims
Depreciation
Total operating expenses
Operating income (loss)
2,821,081
3,556,232
781,741
886,240
8,045,294
1,412,329
1,050,965
4,008,669
827,289
5,886,923
(4,956,792)
2,821,081
4,607,197
4,790,410
1,713,529
13,932,217
(3,544,463)
567,467
944,229
1,251,500
1,761,680
373,469
4,898,345
(364,174)
Nonoperating revenues (expenses):
Intergovernmental
Investment earnings
Loss on disposal of property
Interest expense
Total nonoperating revenues (expenses)
Income before capital contributions and transfers
10,967
254,072
(2,278)
(416,820)
(154,059)
1,258,270
390,474
10,819
(88,031)
313,262
(4,643,530)
401,441
264,891
(90,309)
(416,820)
159,203
(3,385,260)
139,530
139,530
(224,644)
-
1,174,511
3,728,209
1,174,511
3,728,209
1,258,270
259,190
1,517,460
Capital contributions
Transfers in
Change in net position
Net position-beginning
Net position-ending
$
24,124,660
25,382,930
$
9,378,935
9,638,125
16,964
$
The notes to financial statements are an integral part of this statement.
38
(224,644)
$
Adjustment for the net effect of the current year activity between
the internal service funds and the enterprise funds.
Changes in net position of business-type activities (page 31)
-
1,534,424
5,337,093
5,112,449
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
Governmental
Activities
Business-type Activities
Water
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Receipts from interfund charges for transit services
Receipts from interfund charges for fleet management services
Receipts from interfund charges for risk management services
Receipt of customer deposits
Other receipts
Payments to suppliers and service providers
Payments to employees for salaries and benefits
Payments to other funds for services provided
Return of customer deposits
Net cash provided by (used for) operating activities
$
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds
Operating grants
Net cash (used for) noncapital financing activities
8,902,065
1,215
133,423
(4,355,973)
(2,570,570)
(354,452)
(5,915)
1,749,793
$
9,816,657
8,000
1,215
133,423
(9,295,933)
(2,570,570)
(588,907)
(5,915)
(2,502,030)
$
111,312
1,774,063
2,631,049
(4,227,374)
(120,843)
168,207
3,728,209
287,695
4,015,904
1,604,868
(843,151)
22,694
784,411
1,500,000
1,604,868
(1,706,829)
(1,090,183)
(448,474)
43,144
(97,474)
(639,405)
(639,405)
16,964
16,964
(3,215,217)
2,989,249
270,687
44,719
(2,438,442)
2,407,638
137,355
106,551
906,630
554,489
1,461,119
513,083
1,756,357
2,269,440
1,500,000
(863,678)
(1,090,183)
(448,474)
20,450
(881,885)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments
Proceeds from sale of investments
Interest on investments
Net cash provided by investing activities
(3,215,217)
2,989,249
253,723
27,755
Cash and cash equivalents July 1 (including $35,415 for the water fund
reported in restricted accounts)
914,592
8,000
(4,939,960)
(234,455)
(4,251,823)
Internal Service
Funds
3,728,209
276,728
4,004,937
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from bond anticipation notes
Capital grants
Acquisition and construction of capital assets
Principal paid on capital debt
Interest paid on capital debt
Proceeds from the sale of assets
Net cash provided by (used for) capital and related financing activities
Cash and cash equivalents June 30 (including $30,715 for the water fund
reported in restricted accounts)
$
10,967
10,967
Net increase (decrease) in cash and cash equivalents
Total
Enterprise Funds
Transit
-
(364,647)
6,248,367
$
1,419,713
$
2,310,846
$
3,730,559
$
$
1,412,329
$
(4,956,792)
$
(3,544,463)
$
$
827,289
4,461
(12,000)
35,948
(76,480)
(3,623)
(70,626)
704,969
(4,251,823)
$
1,713,529
(417,674)
(12,000)
35,948
1,275
(4,700)
(372,487)
(69,454)
(3,623)
(8,489)
(70,626)
(8,266)
259,000
1,042,433
(2,502,030)
5,883,720
Reconciliation of operating income (loss) to net cash provided by
(used for) operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation expense
(Increase) decrease in accounts receivable
(Increase) in due from other funds
(Increase) in intergovernmental receivables
(Increase) decrease in inventories
(Increase) decrease in prepaid items
(Decrease) in deposits payable
(Decrease) increase in accounts payable
(Increase) in amounts payable related to equipment purchases
(Decrease) in accrued liabilities
(Decrease) increase in compensated absences
(Decrease) in intergovernmental payable
(Decrease) increase in due to retirement system
(Decrease) in claims and judgments payable
Increase in other post employment benefit obligations payable
Total Adjustments
Net Cash Provided by (Used for) Operating Activities
886,240
(422,135)
1,275
(4,700)
(296,007)
(69,454)
$
(8,489)
(8,266)
259,000
337,464
1,749,793
(364,174)
373,469
-
$
(17,747)
(22,671)
(37,823)
466,650
17,729
814
(309,040)
61,000
532,381
168,207
Schedule of non-cash capital and related financing activities:
Contributions of capital assets
Purchase of machinery, equipment, and vehicles on account
$
The notes to financial statements are an integral part of this statement.
39
69,454
$
213,126
-
$
-
$
-
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Statement of Net Position
Fiduciary Funds
June 30, 2022
Public Safety
Employees'
Pension Plan
ASSETS
Cash and cash equivalents
Investments:
Mutual funds
Certificates of deposit
U.S. Government securities
Corporate Bonds
Receivables
Total assets
$
LIABILITIES
Payroll withholdings and employer contributions
Accounts payable
Refunds payable
Deposits
Due to other governments
Total liabilities
NET POSITION
Net position held in trust for pension benefits
and other purposes
$
The notes to financial statements are an integral part of this statement.
40
2,319,275
Prison Canteen
Private-purpose
Trust Fund
$
2,750
Agency
Fund
$
1,829,884
11,366,039
13,678,594
12,467,695
16,135
39,847,738
66,379
921
70,050
3,987
50,890
1,884,761
17,061
90,947
108,008
-
141,835
604,550
1,128,594
9,782
1,884,761
39,739,730
$
70,050
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Statement of Changes in Net Position
Fiduciary Funds
For the Year Ended June 30, 2022
Public Safety
Employees'
Pension Plan
ADDITIONS
Contributions:
Employer
Plan members
Private contributions
Total contributions
Investment earnings:
Interest
Dividends
Net increase in the fair value of investments
Total investment earnings
Less investment expense
Net investment earnings
Total additions
$
DEDUCTIONS
Benefits
Refunds of contributions
Administrative expenses
Purchases by prisoners
Total deductions
Change in net position
Net position – beginning
Net position – ending
$
1,609,992
465,683
2,075,675
$
53,085
53,085
331,639
1,693
2,149,851
2,483,183
97,585
2,385,598
4,461,273
3,663
83
3,746
3,746
56,831
2,688,530
93,741
26,419
2,808,690
42,810
42,810
1,652,583
14,021
38,087,147
39,739,730
The notes to financial statements are an integral part of this statement.
41
Prison Canteen
Private-purpose
Trust Fund
$
56,029
70,050
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
This page is intentionally blank.
42
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
NAME OF GOVERNMENT
Notes to the Financial Statements
June 30, 2022
I. Summary of significant accounting policies
A. Description of government-wide financial statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. All fiduciary activities are reported only in the fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external customers
for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable.
B. Reporting entity
The NAME OF GOVERNMENT (government) is a municipal corporation governed by an
elected mayor and six-member governing council (council). The accompanying financial
statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units are, in substance,
part of the primary government’s operations, even though they are legally separate entities.
Thus, blended component units are appropriately presented as funds of the primary government. Each discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the government.
Blended component unit. The Water Authority (Authority) serves all the citizens of the government and is governed by a board comprised of the government’s elected council. The
rates for user charges and bond issuance authorizations are approved by the government’s
council and the government is legally obligated to provide resources in case there are deficiencies in debt service payments and resources are not available from any other remedies.
The Authority is reported as an enterprise fund and does not issue separate financial statements.
Discretely presented component units. The Urban Renewal Agency (Agency) was created
in 1964 by state law for the purpose of eliminating and preventing the development and
spread of deterioration and blight through the clearance, re-planning, reconstruction, rehabilitation, conservation, or renewal of areas designated for residential, commercial, industrial, community, public, and other uses. The Agency is governed by five members who are
appointed by and serve at the pleasure of the mayor. The mayor may also appoint himself as
one of the members and is currently serving as Chairman. The government periodically provides subsidies to support the Agency when it experiences operating deficits that are not financed by other means.
43
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
The Cable TV Commission (Commission) was created in 1981 to operate the government’s
cable access channels and facilities and acts as franchise administrator for the government.
The Commission is reported as a component unit because the mayor appoints its governing
body and can remove its members at will. The government also guarantees the Commission’s debt obligation. There was no debt outstanding as of June 30, 2022.
Separately issued financial reports are available for the Urban Renewal Agency and the Cable TV Commission. These reports may be obtained by contacting the following offices.
Urban Renewal Agency
5825 River Road
Government City
Cable TV Commission
2259 Stone Drive
Government City
C. Basis of presentation – government-wide financial statements
While separate government-wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds
and internal service funds, while business-type activities incorporate data from the government’s enterprise funds. Separate financial statements are provided for governmental funds,
proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements.
As discussed earlier, the government has two discretely presented component units. While
neither the Urban Renewal Agency or the Cable Television Commission are considered to be
a major component unit, they are nevertheless shown in separate columns in the government-wide financial statements.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments in lieu of taxes
where the amounts are reasonably equivalent in value to the interfund services provided and
other charges between the government’s water and transit functions and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.
D. Basis of presentation – fund financial statements
The fund financial statements provide information about the government’s funds, including
its fiduciary funds and blended component units. Separate statements for each fund category—governmental, proprietary, and fiduciary—are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported
as nonmajor funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements.
The government reports the following major governmental funds:
The general fund is the government’s primary operating fund. It accounts for all financial
resources of the general government, except those accounted for in another fund.
44
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
The capital projects fund accounts for the acquisition and construction of the government’s major capital facilities, other than those financed by proprietary funds.
The debt service fund is used to account for the accumulation of resources that are restricted, committed, or assigned for the payment of principal and interest on long-term
obligations of governmental funds.
The government reports the following major enterprise funds:
The water fund accounts for the activities of the Authority, a blended component unit of
the government. The Authority operates the water distribution system for residents of
the government.
The transit fund accounts for the government’s transit services, including public transportation trains, buses, and facilities.
Additionally, the government reports the following fund types:
Internal service funds account for fleet management and risk management services (including claims for workers’ compensation, general liability, and property damage) provided to other departments or agencies of the government, or to other governments on a
cost-reimbursement basis.
The pension trust fund accounts for the activities of the Public Safety Employees’ Pension
Plan, which accumulates resources for pension benefit payments to qualified public
safety employees.
The private-purpose trust fund accounts for contributions made on behalf of prisoners
housed at the Winterfell Correction Institute for use at the canteen.
The agency fund accounts for employee payroll tax withholdings, towing and storing
charges for impounded vehicles collected on behalf of private vendors (i.e., towing
companies), good faith deposits for the use of the government’s entertainment facilities,
and utility charges collected by the government on behalf of other governments.
During the course of operations the government has activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other
funds and advances to/from other funds. While these balances are reported in fund financial
statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds included in governmental activities (i.e., the
governmental and internal service funds) are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly, balances between the funds included in business-type activities (i.e., the enterprise funds) are eliminated
so that only the net amount is included as internal balances in the business-type activities column.
Further, certain activity occurs during the year involving transfers of resources between
funds. In fund financial statements these amounts are reported at gross amounts as transfers
in/out. While reported in fund financial statements, certain eliminations are made in the
45
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
preparation of the government-wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as
transfers in the governmental activities column. Similarly, balances between the funds included in business-type activities are eliminated so that only the net amount is included as
transfers in the business-type activities column.
E. Measurement focus and basis of accounting
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being
measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the 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, regardless of the timing of related cash
flows. 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 provider have been met.
The 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 government 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. General capital asset acquisitions
are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources.
Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current
fiscal period are all considered to be susceptible to accrual and so have been recognized as
revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year
end). Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the
amount is received during the period or within the availability period for this revenue source
(within 60 days of year end). All other revenue items are considered to be measurable and
available only when cash is received by the government.
The proprietary, pension and other postemployment benefit trust, and private-purpose trust
funds are reported using the economic resources measurement focus and the accrual basis of accounting. The agency fund has no measurement focus but utilizes the accrual basis of accounting for reporting its assets and liabilities.
46
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
F. Budgetary information
1. Budgetary basis of accounting
Annual budgets are adopted on a basis consistent with generally accepted accounting
principles for the general fund, library fund, and debt service fund. The capital projects
fund is appropriated on a project-length basis. Other special revenue funds and the permanent fund do not have appropriated budgets since other means control the use of
these resources (e.g., grant awards and endowment requirements) and sometimes span
a period of more than one fiscal year.
The appropriated budget is prepared by fund, function, and department. The government’s department heads may make transfers of appropriations within a department.
Transfers of appropriations between departments require the approval of the council.
The legal level of budgetary control (i.e., the level at which expenditures may not legally
exceed appropriations) is the department level.
Appropriations in all budgeted funds lapse at the end of the fiscal year even if they have
related encumbrances. Encumbrances are commitments related to unperformed (executory) contracts for goods or services (i.e., purchase orders, contracts, and commitments).
Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control.
While all appropriations and encumbrances lapse at year end, valid outstanding encumbrances (those for which performance under the executory contract is expected in
the next year) are re-appropriated and become part of the subsequent year’s budget
pursuant to state regulations.
2. Excess of expenditures over appropriations
For the year ended June 30, 2022, expenditures exceeded appropriations in the protective inspection department (the legal level of budgetary control) within the public safety
function of the general fund by $21,747. While overspending of this appropriation is
authorized by law up to $100,000 if related to cases involving imminent public endangerment (e.g., the need to inspect properties with damage from collision, natural disaster, fire, or water to determine their inherent stability), which was the case this year, it is
nevertheless considered a budgetary violation. Further, the overspending comes with a
consequence for the subsequent year’s budget. In accordance with the requirements of
the law, there was a decrease of $21,747 in the protective inspection appropriation for
routinely scheduled inspections that was legally adopted for the subsequent year’s
budget.
G. Assets, liabilities, deferred outflows/inflows of resources, and net position/fund balance
1. Cash and cash equivalents
The government’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or
less from the date of acquisition.
47
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
2. Investments
Investments for the government are reported at fair value (generally based on quoted
market prices) except for the position in the State Treasurer’s Investment Pool (Pool). In
accordance with state law, the Pool operates in conformity with all of the requirements
of the Securities and Exchange Commission’s (SEC) Rule 2a7 as promulgated under the
Investment Company Act of 1940, as amended. Accordingly, the Pool qualifies as a
2a7-like pool and is reported at the net asset value per share (which approximates fair
value) even though it is calculated using the amortized cost method. The Pool is subject
to regulatory oversight by the State Treasurer, although it is not registered with the SEC.
3. Inventories and prepaid items
Inventories are valued at cost using the first-in/first-out (FIFO) method and consist of
expendable supplies and vehicle repair parts. The cost of such inventories is recorded as
expenditures/expenses when consumed rather than when purchased.
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. The cost of prepaid items is recorded as expenditures/expenses when consumed
rather than when purchased.
4. Capital assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g.
roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements.
Capital assets, except for infrastructure assets, are defined by the government as assets
with an initial, individual cost of more than $5,000 and an estimated useful life in excess
of two years. For infrastructure assets the same estimated minimum useful life is used
(in excess of two years), but only those infrastructure projects that cost more than
$50,000 are reported as capital assets.
In the case of the initial capitalization of general infrastructure assets (i.e., those reported by governmental activities), the government chose to include all such items regardless of their acquisition date or amount. The government was able to estimate the
historical cost for the initial reporting of these assets through back trending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and using an
appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition year). As the government constructs or acquires additional capital assets each
period, including infrastructure assets, they are capitalized and reported at historical
cost. The reported value excludes normal maintenance and repairs which are essentially
amounts spent in relation to capital assets that do not increase the capacity or efficiency
of the item or increase its estimated useful life. Donated capital assets are recorded at
their estimated fair value at the date of donation.
Interest incurred during the construction phase of capital assets of enterprise funds is
included as part of the capitalized value of the assets constructed. The amount of interest capitalized depends on the specific circumstances. This year tax-exempt bond antici-
48
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
pation notes (BANS) were issued to finance specific water plant improvements. Accordingly, the interest capitalized in the amount of $7,881 was calculated by netting actual
interest expense on the BANS ($30,000) with the actual investment earnings on the unspent proceeds of the BANS ($22,119).
Land and construction in progress are not depreciated. The other property, plant,
equipment, and infrastructure of the primary government are depreciated using the
straight line method over the following estimated useful lives:
Capital asset classes
Buildings
Machinery and equipment
Vehicles
Improvements
Infrastructure
Water distribution system
Lives
10-50
5-20
5-10
10-20
75-100
75-100
5. Deferred outflows/inflows of resources
In addition to assets, the statement of financial position will sometimes 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(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The government only has one item that qualifies for reporting in this
category. It is the deferred charge on refunding reported in the government-wide statement of net position. A deferred charge on refunding results from the difference in 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.
In addition to liabilities, the statement of financial position will sometimes 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(s) and so will not be recognized as an inflow of resources (revenue) until
that time. The government has only one type of item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance
sheet. The governmental funds report unavailable revenues from two sources: property
taxes and special assessments. These amounts are deferred and recognized as an inflow
of resources in the period that the amounts become available.
6. Net position flow assumption
Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to
calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.
49
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
It is the government’s policy to consider restricted – net position to have been depleted
before unrestricted – net position is applied.
7. Fund balance flow assumptions
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned
fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a
flow assumption must be made about the order in which the resources are considered to
be applied. It is the government’s policy to consider restricted fund balance to have been
depleted before using any of the components of unrestricted fund balance. Further,
when the components of unrestricted fund balance can be used for the same purpose,
committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
8. Fund balance policies
Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The government itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance).
The committed fund balance classification includes amounts that can be used only for
the specific purposes determined by a formal action of the government’s highest level of
decision-making authority. The governing council is the highest level of decision-making authority for the government that can, by adoption of an ordinance prior to the end
of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation.
Amounts in the assigned fund balance classification are intended to be used by the government for specific purposes but do not meet the criteria to be classified as committed.
The governing council (council) has by resolution authorized the finance director to
assign fund balance. The council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in
the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have
to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment.
H. Revenues and expenditures/expenses
1. Program revenues
Amounts reported as 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 (including special assessments) that are restricted to meeting the operational or capital requirements of a partic-
50
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
ular function or segment. All taxes, including those dedicated for specific purposes, and
other internally dedicated resources are reported as general revenues rather than as
program revenues.
2. Property taxes
Property taxes attach as an enforceable lien on real property and are levied as of July 1st.
The tax levy is divided into two billings: the first billing (mailed on July 1) is an estimate
of the current year’s levy based on the prior year’s taxes; the second billing (mailed on
January 1) reflects adjustments to the current year’s actual levy. The billings are considered past due 30 days after the respective tax billing date, at which time the applicable
property is subject to lien, and penalties and interest are assessed.
3. Compensated absences
Vacation
The government’s policy permits employees to accumulate earned but unused vacation benefits, which are eligible for payment upon separation from government
service. The liability for such leave is reported as incurred in the government-wide
and proprietary fund financial statements. A liability for those amounts is recorded in the governmental funds only if the liability has matured as a result of employee resignations or retirements. The liability for compensated absences
includes salary-related benefits, where applicable.
Sick Leave
Accumulated sick leave lapses when employees leave the employ of the government and, upon separation from service, no monetary obligation exists.
4. Proprietary funds operating and nonoperating revenues and expenses
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the water fund, transit fund, and internal
service funds are charges to customers for sales and services. The water fund also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
II. Reconciliation of government-wide and fund financial statements
A. Explanation of certain differences between the governmental fund balance sheet and
the government-wide statement of net position
51
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
The governmental fund balance sheet includes a reconciliation between fund balance – total
governmental funds and net position – governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that “capital
assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.” The details of this $284,482,458 are as follows:
Land
Construction in progress
Buildings
Less: Accumulated depreciation-buildings
Machinery, equipment, and vehicles
Less: Accumulated depreciation-machinery, equipment, and vehicles
Infrastructure
Less: Accumulated depreciation-infrastructure
$ 50,067,172
9,870,118
215, 826,259
(83,185,398)
30,512,170
(20,222,067)
207,826,145
(126,211,941)
Net adjustment to increase fund balance – total governmental funds
to arrive at net position – governmental activities
$284,482,458
Another element of that reconciliation explains that “internal service funds are used by management to charge the costs of fleet management and risk management to individual funds.
The assets and liabilities of the internal service funds are included in governmental activities
in the statement of net position.” The details of this $4,814,931 difference are as follows:
Net position of the internal service funds
Less: Internal payable representing charges in excess of cost to
business-type activities – prior years
Less: Internal payable representing charges in excess of cost to
business-type activities – current year
Net adjustment to increase fund balance – total governmental funds
to arrive at net position – governmental activities
$5,112,449
(280,554)
(16,964)
$4,814,931
The final element of that reconciliation explains that “long-term liabilities, including bonds
payable, are not due and payable in the current period and therefore are not reported in the
funds.” The details of this $98,881,783 difference are as follows:
Bonds payable
Less: Deferred charge on refunding (to be amortized as interest expense)
Less: Issuance discount (to be amortized as interest expense)
Add: Issuance premium (to be amortized over life of debt)
Pension-related debt
Compensated absences
Capital leases
Accrued interest payable
Other postemployment benefit obligations
$77,552,863
(726,762)
(9,000)
670,015
4,739,557
5,244,411
146,042
716,657
10,548,000
Net adjustment to reduce fund balance – total governmental funds
to arrive at net position – governmental activities
$98,881,783
B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in fund balances and the government-wide statement
of activities
52
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
The governmental fund statement of revenues, expenditures, and changes in fund balances
includes a reconciliation between net changes in fund balances – total governmental funds and
changes in net position of governmental activities as reported in the government-wide statement
of activities. One element of that reconciliation explains that “governmental funds report
capital outlays as expenditures. However, in the statement of activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This
is the amount by which capital outlays exceded depreciation expense in the current period.”
The details of this $3,237,028 difference are as follows:
Capital outlay
Depreciation expense
$15,123,189
(11,886,161)
Net adjustment to increase net changes in fund balances – total governmental
funds to arrive at changes in net position of governmental activities
$3,237,028
Another element of that reconciliation states that “The net effect of various miscellaneous
transactions involving capital assets (i.e., sales and donations) is to increase net position.”
The details of this $118,826 difference are as follows:
In the statement of activities, only the loss on the sale of capital assets
is reported. However, in the governmental funds, the proceeds from
the sale increase financial resources. Thus, the change in net position differs
from the change in fund balance by the cost of the capital assets sold.
$ (9,174)
Donations of capital assets increase net position in the statement of activities,
but do not appear in the governmental funds because they are not financial
resources.
128,000
Net adjustment to increase total governmental funds to arrive at changes
in net position of governmental activities
$118,826
Another element of that reconciliation states that “the issuance of long-term debt (e.g.,
bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued,
whereas these amounts are deferred and amortized in the statements of activities. This
amount is the net effect of these differences in the treatment of long-term debt and related
items.” The details of this $240,435 difference are as follows:
Debt issued or incurred:
Capital lease financing
General obligation bonds
Plus premium
Special assessment bonds
Less discount
Principal repayments:
General obligation debt
Payment to escrow agent for refunding
$
146,042
5,810,000
249,914
4,700,000
(10,000)
(4,718,317)
(5,937,204)
Net adjustment to decrease changes in fund balances – total governmental funds
to arrive at changes in net position of governmental activities
53
$
240,435
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Another element of that reconciliation states that “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.” The details of this $10,249,187 difference are
as follows:
Compensated absences
Pension related debt
Accrued interest
Net other postemployment benefits obligation
Amortization of negative net pension obligation
Amortization of bond premiums
Amortization of bond discounts
Amortization of deferred charge on refunding
$
Net adjustment to decrease net changes in fund balances – total governmental
funds to arrive at changes in net position of governmental activities.
380,337
(697,896)
(13,816)
10,548,000
22,818
(83,226)
1,000
91,970
$10,249,187
Another element of that reconciliation states that “internal service funds are used by management to charge the costs of fleet management and risk management to individual funds.
The net revenue of certain activities of internal service funds is reported with governmental
activities.” The details of this $241,608 difference are as follows:
Change in net position of the internal service funds
Plus: loss from charges to business-type activities
$224,644
16,964
Net adjustment to decrease net changes in fund balances – total governmental funds
to arrive at changes in net position of governmental activities
$241,608
C. Explanation of certain differences between the proprietary fund statement of net position and the government-wide statement of net position
The proprietary fund statement of net position includes a reconciliation between net position
– total enterprise funds and net position of business-type activities as reported in the government-wide statement of net position. The description of the sole element of that reconciliation is “adjustment to report the cumulative internal balance for the net effect of the activity
between the internal service funds and the enterprise funds over time.” The details of the
$297,518 difference are as follows:
Internal receivable representing charges in excess of cost to business-type
activities – prior years
Internal receivable representing charges in excess of cost to business-type
activities – current year
Net adjustment to increase net position – total enterprise funds to arrive at
net position – business-type activities
$280,554
16,964
$297,518
III. Stewardship, compliance and accountability
A. Violations of legal or contractual provisions
Note I.F.2, on the Excess of expenditures over appropriations, describes a budgetary violation
that occurred for the year ended June 30, 2022. It also explains the provision provided by law
that was used to remedy the violation.
54
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
B. Deficit fund equity
At June 30, 2022, the capital projects fund, a major fund, has a deficit fund balance of
$2,191,321. It is unusual for a capital projects fund, especially one that finances capital projects mainly by borrowings, to report a deficit. The reason for the deficit in this case is that the
government issued bond anticipation notes (BANS), which do not qualify for treatment as a
long-term liability. Accordingly, the BANS are reported as a fund liability in the capital projects fund balance sheet (rather than an inflow on the statement of revenues, expenditures,
and changes in fund balances). When the cash from the BANS is spent, expenditures are reported and fund balance is reduced. Because the BANS are the main source of resources for
the fund, the result is an overall fund deficit. This deficit will be eliminated as resources are
obtained (e.g., from revenues, long-term debt issuances, and transfers in) to make the scheduled debt service principal and interest payments on the BANS.
IV. Detailed notes on all activities and funds
A. Cash deposits with financial institutions
Custodial credit risk-deposits. In the case of deposits, this is the risk that in the event of a bank
failure, the government’s deposits may not be returned to it. The government does not have a
deposit policy for custodial credit risk. As of June 30, 2022, the government’s bank balance
was $24,750,625 and $1,985,682 of that amount was exposed to custodial credit risk because it
was uninsured and collateralized with securities held by the pledging or financial institution’s trust department or agent, but not in the government’s name.
B. Investments
The State Treasurer’s Investment Pool (Pool) operates in accordance with state law, which requires it to meet all of the requirements of Rule 2a-7 of the Securities and Exchange
Commission. See note I.G.2, Investments, for a discussion of how the shares in the Pool are
valued. The Pool has a credit rating of AAA from Standard & Poor’s Financial Services. Local
government investment pools in this rating category meet the highest standards for credit
quality, conservative investment policies, and safety of principal. The Pool invests in a high
quality portfolio of debt securities investments legally permissible for municipalities and
school districts in the state.
The government utilizes a pooled investment concept for all its funds to maximize its investment program. Investment income from this internal pooling is allocated to the respective
funds based upon the sources of funds invested.
State statutes authorize the government to invest in obligations of the U.S. Treasury, commercial paper, corporate bonds, repurchase agreements, and the State Treasurer’s Investment Pool.
55
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
As of June 30, 2022, the government had the following investments:
Weighted
Average
Maturity (Years)
Investment Type
Fair Value
U.S. Treasuries
$25,877,998
0.35
13,009,263
0.52
Repurchase agreements
4,211,570
0.02
State Treasurer’s investment pool
2,709,501
0.55
16,030,681
1.46
Bond mutual funds
Corporate bonds
Total fair value
$61,839,013
Portfolio weighted average maturity
0.41
Interest rate risk. In accordance with its investment policy, the government manages its exposure to declines in fair values by limiting the weighted average maturity of its investment
portfolio to less than ten months.
Credit risk. State law limits investments in commercial paper and corporate bonds to the top
two ratings issued by nationally recognized statistical rating organizations (NRSROs). It is
the government’s policy to limit its investments in these investment types to the top rating issued by NRSROs. As of June 30, 2022, the government’s investment in the State Treasurer’s
investment pool was rated AAA by Standard & Poor’s and Aaa by Moody’s Investors Service. The government’s investments in commercial paper were rated A1 by Standard &
Poor’s, F-1 by Fitch Ratings, and P-1 by Moody’s Investor’s Service. The government’s investments in corporate bonds were rated AAA by Standard & Poor’s and Fitch Ratings, and
Aaa by Moody’s Investors Service.
Concentration of credit risk. The government’s investment policy does not allow for an investment in any one issuer that is in excess of 5 percent of the government’s total investments.
Custodial credit risk-investments. For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Of the investment
in corporate bonds of $16,030,681, the government has a custodial credit risk exposure of
$960,939 because the related securities are uninsured, unregistered, and held by the government’s brokerage firm, which is also the counterparty for these particular securities. The government’s investment policy limits the amount of securities that can be held by counterparties to no more than $2 million.
C. Receivables
Amounts are aggregated into a single accounts receivable (net of allowance for uncollectibles) line for certain funds and aggregated columns. Below is the detail of receivables for the
general and debt service funds and the nonmajor governmental funds in the aggregate, including the applicable allowances for uncollectible accounts:
56
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Receivables
Accounts
Property taxes
Property tax interest and penalties
Tax liens
Sales taxes
Special assessments
Loans
Interest
Gross receivables
Less: Allowance for uncollectibles
Net receivables
Debt Service
Fund
General
$ 676,752
3,347,785
165,884
258,767
$
79,618
-
Nonmajor
Governmental
$
Total
38,979
-
$ 715,731
3,427,403
165,884
258,767
1,829,576
-
-
1,829,576
-
4,230,000
-
4,230,000
37,151
-
2,462,962
260
2,462,962
37,411
$4,309,618
$4,309,618
$2,502,201
$2,502,201
$6,315,915
(248,668)
$6,067,247
$13,127,734
(248,668)
$12,879,066
Based on the payment schedule for special assessment receivables, $3,760,000 of the amount
reported in the debt service fund is not expected to be collected within the next year. Also, approximately $2,000,000 of the outstanding balance of loans receivable are not anticipated to
be collected within the next year.
Revenues of the Water Authority, an enterprise fund, are reported net of uncollectible
amounts. Total uncollectible amounts related to water sales of the period amounted to
$83,952.
D. Capital Assets
Capital assets activity for the year ended June 30, 2022, was as follows:
57
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Governmental Activities:
Balance
July 1, 2021
Increases
Balance
June 30, 2022
Decreases
Capital assets, not being depreciated:
Land
-
$ 50,067,172
Construction-in-progress
$ 50,067,172
22,974,097
$
12,357,720
-
(25,461,699)
$
9,870,118
Total capital assets, not being depreciated
73,041,269
12,357,720
(25,461,699)
59,937,290
191,856,915
24,057,089
-
215,914,004
33,208,145
3,522,428
(935,135)
35,795,438
Infrastructure
206,411,089
1,415,056
-
207,826,145
Total capital assets, being depreciated
431,476,149
28,994,573
(935,135)
459,535,587
Capital assets, being depreciated:
Buildings
Machinery, equipment, and vehicles
Less accumulated depreciation for:
Buildings
(78,425,803)
(4,767,749)
-
(83,193,552)
Machinery, equipment, and vehicles
(21,468,057)
(2,138,804)
925,961
(22,680,900)
(120,858,864)
(5,353,077)
-
(126,211,941)
(220,752,724)
(12,259,630)
925,961
(232,086,393)
-
Total capital assets being depreciated, net
210,723,425
16,734,943
9,174
227,449,194
Governmental activities capital assets, net
$283,764,694
$29,092,663
$(28,184,724)
$287,386,484
Infrastructure
Total accumulated depreciation
Depreciation expense was charged to the functions/programs of the governmental activities
of the primary government as follows:
Governmental activities:
General government
$
Public safety
192,046
1,377,351
Highways and streets
6,881,833
Sanitation
2,441,196
Culture and recreation
1,023,735
Capital assets held by the government's internal service funds are charged
to the various functions based on their usage of the assets
Total depreciation expense – governmental activities
58
373,469
$12,259,630
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Business-type activities
Balance
July 1, 2021
Increases
Decreases
Transfers/
Reclassifications
Balance
June 30, 2022
Capital assets, not being
depreciated:
Land
Construction-in-progress
$1,911,400
6,726,334
$
-
$
-
$
795,579
-
$ 1,911,400
(2,150,249)
5,371,664
(2,150,249)
7,283,064
2,150,249
12,913,441
Total capital assets, not being
depreciated
8,637,734
795,579
-
-
-
11,329,707
(762,877)
-
-
35,422,287
2,150,249
59,665,435
Capital assets, being depreciated:
Buildings
Machinery, equipment, and vehicles
10,763,192
10,873,602
Water distribution system
35,422,287
1,218,982
-
Total capital assets, being
depreciated
57,059,081
1,218,982
(762,877)
Buildings
(4,911,910)
(467,517)
-
Machinery, equipment, and vehicles
(7,679,744)
Less accumulated depreciation for:
-
(5,379,427)
-
(7,562,355)
Water distribution system
(13,286,582)
(512,708)
(733,977)
630,097
-
-
(14,020,559)
Total accumulated depreciation
(25,878,236)
(1,714,202)
630,097
-
(26,962,341)
31,180,845
(495,220)
(132,780)
2,150,249
32,703,094
$39,818,579
$ 300,359
$(132,780)
-
$39,986,158
Total capital assets being
depreciated, net
Business-type activities capital
assets, net
$
E. Accrued liabilities
Accrued liabilities reported by governmental funds at June 30, 2022, were as follows:
Salary and employee benefits
Other
Total accrued liabilities
General fund
Nonmajor
governmental
funds
Total
governmental
funds
$ 2,188,382
315,728
$ 2,504,060
245,910
186,047
431,957
2,434,242
501,775
2,936,017
F. Pension obligations
Statewide Local Government Employees’ Retirement System (SLGERS)
Plan Description. The government participates in the SLGERS, a cost-sharing multiple-employer defined benefit pension plan administered by the State Pension Board. SLGERS provides retirement, disability, and death benefits to plan members and their beneficiaries. State
statutes authorize the State to establish and amend all plan provisions. The State issues a
publicly available financial report that includes the applicable financial statements and re-
59
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
quired supplementary information for SLGERS. That report may be obtained by writing to
SLGERS, 5822 Poppy Avenue, State Capital City.
Funding policy. Contribution requirements of employers and employees and the amendment
of those requirements are governed by State statutes. The SLGERS is non-contributory, except for employees who joined SLGERS after July 28, 2009. Those plan members contribute 3
percent of their annual covered salary during their first ten years of service. Employer contribution rates are actuarially determined based upon membership tier and plan provisions.
Contributions are certified by the State Comptroller and are expressed as a percentage of covered payroll. The current employer contribution rate is 11 percent of covered payroll. The
government’s contributions to SLGERS for the years ended June 30, 2022, 2021, and 2020
were $3,031,143, $3,507,016, and $3,658,353, respectively, and were equal to 100 percent of
the required contributions for each year.
Name of Government Public Safety Employees’ Pension Plan (PSEPP)
Plan description. The government administers the PSEPP, a single-employer defined benefit
plan for police and fire employees. PSEPP provides retirement, disability, and death benefits
to plan members and their beneficiaries. The plan is governed by the Governing Council
which may amend benefits and other plan provisions, and which is responsible for the management of plan assets. The plan issues a publicly available financial report that includes the
applicable financial statements and required supplementary information for the plan. That
report may be obtained at the government’s offices.
Summary of significant accounting policies - basis of accounting and valuation of investments. The
PSEPP’s financial statements are prepared on the accrual basis of accounting. Plan member
contributions are recognized in the period in which the contributions are due. The government’s contributions are recognized when due and a formal commitment to provide the contributions has been made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. All plan investments are reported at fair value. Securities traded on a national exchange are valued at the last reported sales price on the government’s balance sheet date. Securities without an established market value are reported at
estimated fair value.
Funding policy. The contribution requirements of plan members and the government are established and may be amended by the governing council. Plan members are required to contribute 5 percent of their annual covered salary. The government is required to contribute at
an actuarially determined rate. The current employer contribution rate is 15.5 percent of annual covered payroll.
Annual pension cost (APC) and Net pension asset (NPA). The government’s APC and NPA for
the PSEPP are as follows:
60
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Annual required contribution (ARC)
$
Interest on NPA
1,609,992
(38,176)
Adjustment to the ARC
60,994
Annual pension cost (APC)
$
Contributions made
1,632,810
1,609,992
Decrease in net pension asset
22,818
Net pension asset, beginning of year
(477,207)
Net pension asset, end of year
$
(454,389)
The government’s APC, percentage of APC contributed, and NPA for the plan for the current
year and each of the two preceding years were as follows:
Fiscal Year
Annual Pension
Percentage of
Ended June 30,
Cost (APC)
APC Contributed
Net Pension
Asset
2022
2021
2020
$1,632,810
1,080,590
1,066,867
98.6%
97.9%
98.4%
$(454,389)
(477,207)
(499,899)
Funded status and funding progress. As of July 1, 2021, the most recent actuarial valuation date,
the funded status of the plan was as follows:
Actuarial accrued liability (AAL)
$ 42,267,100
Actuarial value of plan assets
$ 37,516,400
Unfunded actuarial accrued liability (UAAL)
$
Funded ratio (actuarial value of plan assets/AAL)
4,750,700
88.76%
Covered payroll (annual payroll of active
employees covered by the plan)
$ 10,396,800
UAAL as a percentage of covered payroll
45.69%
The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether
the actuarial value of plan assets is increasing or decreasing relative to the actuarial accrued
liability for benefits.
Actuarial methods and assumptions. The ARC for the plan was determined as part of the July 1,
2021 actuarial valuation using the following methods and assumptions:
Actuarial cost method
Amortization method
Remaining amortization period
Inflation rate
Asset valuation method
Investment return
Projected salary increases
Cost of living adjustments
entry age
level dollar, closed
11 years
3.00%
5-year smoothed market
8.00%
5.50%
3.00%
61
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
G. Other postemployment benefit (OPEB) obligations
Name of Government’s General Employees’ Other Postemployment Benefits Plan
Plan description. The government provides health care benefits for retired employees and
their beneficiaries through an agent multiple-employer defined benefit plan established July
28, 2020. The Name of Government General Employees’ Other Postemployment Benefits
Plan (GEOPBP) plan is administered by the State Pension Board. State statutes assign the authority to establish and amend the benefit provisions of the agent multiple-employer health
care plans administered by the State Pension Board to the respective employer entities. That
authority for the GEOPBP rests with the government. The State issues a publicly available financial report that includes the applicable financial statements and required supplementary
information for the plan. That report may be obtained by writing to GEOPBP, 5842 Poppy
Avenue, State Capital City.
Funding policy. The government pays the cost of the postemployment health care benefits for
retirees, their spouses, and their dependents during the life of the retiree. Surviving spouses
of retirees may elect to continue health care benefits at their own expense. Substantially all of
the government’s employees may become eligible for these benefits if they reach normal retirement age while working for the government.
The contribution requirements of the government are established and may be amended by
the governing council. Plan members are currently not required to contribute. The government is required to contribute at an actuarially determined rate. The current employer contribution rate is 26.9 percent of annual covered payroll.
Annual OPEB cost and Net OPEB obligation. The year ended June 30, 2022 is the initial year for
this OPEB plan. Accordingly, the annual OPEB cost is equal to the annual required contribution of $18,721,000, as determined by an actuarial valuation performed at July 1, 2021. The
end of the year net OPEB obligation is determined as follows:
Annual required contribution (ARC)
$ 18,721,000
Contributions made
(7,853,000)
Increase in net OPEB obligation
10,868,000
Net OPEB Obligation, Beginning of Year
-
Net OPEB Obligation, End of Year
$ 10,868,000
The government’s annual OPEB cost, percentage of OPEB cost contributed, and net postemployment benefit obligation for the plan for the current fiscal year ended June 30, 2022
(only available data as this is the initial plan year) is as follows:
Annual OPEB cost
$
18,721,000
Percentage of
OPEB cost contributed
Net
OPEB obligation
41.9%
$ 10,868,000
Funded status and funding progress. As of July 1, 2021, the most recent actuarial valuation date
(the initial actuarial valuation for the plan), the funded status of the plan was as follows:
62
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Actuarial accrued liability (AAL)
$ 260,210,000
Actuarial value of plan assets
$ 0
Unfunded actuarial accrued liability (UAAL)
$ 260,210,000
Funded ratio (actuarial value of plan assets/AAL)
0%
Covered payroll (annual payroll of active employees
covered by the plan)
$
UAAL as a percentage of covered payroll
69,485,795
374.48%
Actuarial valuations for OPEB plans involve estimates of the value of reported amounts and
assumptions about the probability of events far into the future. These actuarially determined
amounts are subject to continual revisions as actual results are compared to past expectations
and new estimates are made about the future. The schedule of funding progress presented
immediately following the financial statements as required supplementary information,
presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Actuarial methods and assumptions. Projections of benefits for financial reporting purposes are
based on the substantive plan (the plan as understood by the employer and the plan members) and include the type of benefits provided at the time of each valuation and the historical
pattern of sharing benefit costs between the employer and plan members to that point. The
actuarial calculations of the OPEB plan reflect a long-term perspective. Consistent with this
perspective, actuarial valuations, after this initial year, will use actuarial methods and assumptions that include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets.
The ARC for the plan’s initial year was determined as part of the July 1, 2021 actuarial valuation using the following methods and assumptions:
Actuarial cost method
Amortization method
Remaining amortization period
Inflation rate
Asset valuation method
Investment return
Projected salary increases
Cost of living adjustments
Healthcare cost trend rate
projected unit credit
level percentage of payroll, open
30 years
3.00%
5-year smoothed market
8.00%
5.50%
3.00%
10.00%
H. Construction and other significant commitments
Construction commitments. The government has active construction projects as of December
31, 2015. The projects include street construction in areas with newly developed housing,
widening of streets and bridges, and the construction of additional water plant facilities. At
year end the government’s commitments with contractors are as follows:
63
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Project
Spent-to-Date
Remaining
commitment
Residential street construction – special
assessments
$ 2,979,000
$2,095,000
Various widening of streets and bridges
7,280,315
901,527
762,714
739,286
Work plant facilities
The remaining commitment amounts of $901,527 for the widening of streets and bridges projects were encumbered at fiscal year end. As discussed earlier in note I.F.1, Budgetary information, Budgetary basis of accounting, the encumbrances and related appropriation lapse at
the end of the year, but are re-appropriated and become part of the subsequent year’s budget
because performance under the executory contract is expected in the next year.
Encumbrances. As discussed in note I.F.1, Budgetary information, Budgetary basis of accounting, encumbrance accounting is utilized to the extent necessary to assure effective budgetary
control and accountability and to facilitate effective cash planning and control. At year end
the amount of encumbrances expected to be honored upon performance by the vendor in the
next year were as follows:
General fund
Capital projects fund
Nonmajor governmental funds
Total
$3,018,564
901,527
663,820
$4,583,911
I. Risk management
The government is exposed to various risks of loss related to torts: theft of, damage to, and
destruction of assets; errors and omissions; and natural disasters. The government, including
its component units, uses the Risk Management Internal Service Fund to account for and finance risks for workers’ compensation, general liability and property damage. For workers’
compensation the government retains the risk for the first $750,000 of an individual claim.
Excess insurance coverage is purchased to cover individual claims in excess of $750,000. Insurance policies are purchased for the following exposures with the deductible or the
amount of risk retention indicated in parenthesis: public officials and employment practices
liability ($25,000/$100,000 deductible), boiler and machinery ($10,000/deductible), employee
faithful performance ($25,000 deductible), and an excess liability insurance policy (government retains risks up to $1,000,000). There were no settlements in excess of the insurance coverage in any of the three prior fiscal years.
The risk management internal service fund is funded by charges to the government’s other
funds and component units, and is based primarily upon the contributing funds’ claims
experience. Liabilities of the fund are reported when it is probable that a loss has occurred
and the amount of the loss can be reasonably estimated. Liabilities include an amount for
claims that have been incurred but not reported (IBNRs). The result of the process to estimate
the claims liability is not an exact amount as it depends on many complex factors, such as, inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated
periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. The estimate of the
64
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
claims liability also includes amounts for incremental claim adjustment expenses related to
specific claims and other claim adjustment expense regardless of whether allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claims liability estimate.
Changes in the balance of claims liabilities during the past two years are as follows:
Liability - June 30, 2020
Workers'
General and
Compensation
Property Damage
$
Claims incurred
Claims payments
Changes to prior year estimates
Liability - June 30, 2021
Claims incurred
Claims payments
Changes to prior year estimates
Liability - June 30, 2022
1,674,545
$
2,307,682
474,111
(1,067,380)
101,774
(785,884)
416,758
748,223
1,498,034
2,371,795
291,336
(1,263,384)
218,036
(807,336)
570,346
681,962
1,096,332
2,464,457
J. Lease obligations
1. Capital lease
This year, the government entered into a lease agreement as lessee for financing the acquisition of playground equipment valued at $146,042. The equipment has a ten-year
estimated useful life. This year, $14,640 was included in depreciation expense. This
lease agreement qualifies as a capital lease for accounting purposes and, therefore, has
been recorded at the present value of future minimum lease payments as of the inception date.
The future minimum lease obligations and the net present value of these minimum
lease payments as of June 30, 2022, were as follows:
Year ending June 30
Governmental Activities
2023
2024
2025
Total minimum lease payments
Less: amount representing interest
Present value of minimum lease payments
$ 50,000
50,000
50,000
150,000
(3,958)
$ 146,042
65
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
2. Operating lease
The government leases buildings to provide a facility for the Senior Center and to provide handicapped-accessible office space for its Building Department and Parking Department. Total costs for the leases were $555,947 for the year ended June 30, 2022. The
future minimum lease payments for these leases are as follows:
Year Ending
June 30
Senior
Center
Building
Department
Parking
Department
Total
2023
$ 264,000
178,925
84,583
527,508
2024
264,000
183,200
85,150
532,350
2025
264,000
183,200
14,192
461,392
2026
264,000
106,867
-
370,867
2027
264,000
-
-
264,000
2028-2032
1,330,613
-
-
1,330,613
2033-2037
1,443,665
-
-
1,443,665
2038-2042
1,098,264
-
-
1,098,264
Total
5,192,542
652,192
183,925
6,028,659
66
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
K. Short-term debt
The schedule below details the changes in short-term capital borrowings during the year
ended June 30,2022 for both governmental and business-type activities:
Original
issue
Interest
rate
Balance
July 1, 2021
Issues
Redemptions
Balance
June 30, 2022
$
$
Governmental activities:
Community Theater
2016
0%
$ 250,000
Rolling Stock Acquisition
2018
3%
603,250
$
-
-
301,625
250,000
-
Single Space Electronic Parking Meters
2018
3%
140,000
-
70,000
Skatium lce Rink Floor Renovation
2021
3%
125,000
-
-
125,000
Library Roof Replacement
2021
3%
50,000
-
-
50,000
135,775
301,625
70,000
Sanitary Sewer Reconstruction
2022
2%
-
135,775
-
Storm Water Drains
2022
2%
-
250,000
-
250,000
Municipal Parking Structure Rehab
2022
2%
-
350,000
-
350,000
Renovations to Fire Facilities
2022
2%
-
350,000
-
350,000
Street Reconstruction
2022
2%
-
1,757,800
-
1,757,800
Parking Lot Renovation
2022
2%
-
100,000
-
100,000
Lawler Playground
2022
2%
-
125,000
-
125,000
Municipal Parking Structure Rehab
2022
2%
-
300,000
-
300,000
Rolling Stock-Heavy Duty Vehicles
2022
2%
-
1,547,000
-
Public Safety Radio System Phase
2022
2%
-
525,000
$ 2,086,250
$ 5,440,575
1,547,000
-
$
621,625
525,000
$
6,905,200
Business-type activities:
Howard Street Pump Station Upgrades
2019
3%
Water Transmission Facilities
2022
2%
187,500
62,500
125,000
$ 1,500,000
$
-
1,500,000
187,500
$ 1,500,000
$
62,500
$
1,625,000
$ 2,273,750
$ 6,940,575
$
684,125
$
8,530,200
$
$
Total short-term capital borrowings
-
-
The purpose of all of the short-time borrowings was to provide resources for various capital
construction or improvement projects. The form of financing used in all cases was bond anticipation notes. The amounts issued for governmental activities are accounted for in the capital projects fund. The amounts issued for business-type activities relate to a single fund and
are therefore reported in that single fund, the water enterprise fund.
State law requires that bond anticipation notes issued for capital purposes be converted to
long-term obligations within five years after the original issue date, if not completely repaid.
However, bond anticipation notes issued for assessable improvement projects may be renewed for periods equivalent to the maximum life of the permanent financing, provided that
stipulated annual reductions of principal are made.
67
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
L. Long-Term Liabilities
General Obligation Bonds
The government issues general obligation bonds to provide funds for the acquisition
and construction of major capital facilities. General obligation bonds have been issued
for both governmental and business-type activities. General obligation bonds are direct
obligations and pledge the full faith and credit of the government. These bonds generally are issued as serial bonds with equal amounts of principal maturing each year with
maturities that range from 5 to 20 years. General obligation bonds outstanding at June
30, 2022 are as follows:
Governmental Activities:
General Obligation Bonds
Public Improvements
Sale
Date
2011
Original
Borrowing
$3,035,000
Interest
Rates to
Maturity
4.60-4.70%
Final
Maturity
2010
Outstanding
30-Jun-09
$ 373,472
Public Improvements
2013
3,235,000
5.10-5.25
2016
355,000
Public Improvements (Series A)
2014
2,100,000
4.00-4.20
2012
525,000
Public Improvements (Series A)
2015
21,000,000
4.00-4.25
2022
2,129,000
Public Improvements (Series B)
2015
2,950,000
4.125-4.25
2022
138,000
Public Improvements
2016
7,525,000
3.50-3.60
2018
5,029,247
Public Improvements (Taxable Bond)
2016
360,000
5.15
2014
180,000
Public Improvements
2017
8,112,000
4.00-4.50
2029
6,531,000
Public Improvements (Library)
2017
1,075,000
4.00-4.50
2024
879,000
Public Improvements
2018
3,575,000
3.50-4.25
2025
3,077,903
Public Improvements (Library)
2018
2,700,000
3.50-4.25
2025
2,324,568
Public Improvements
2019
3,574,000
4.00-4.25
2021
3,015,000
Public Improvements (Refunding)
2020
12,470,000
4.00-5.00
2022
12,280,000
Public Improvements
2020
8,644,500
4.00-4.25
2027
8,045,000
Public Improvements (Series A)
2021
3,835,000
3.375-4.00
2022
3,640,673
Public Improvements (Series B)
2021
18,750,000
4.00-4.375
2033
18,280,000
Public Improvements (Series C)
2021
250,000
6.25-6.750
2033
240,000
Public Improvements (Refunding)
2022
5,810,000
2.00-4.00
2028
5,810,000
$72,852,863
Business-type Activities:
General Obligation Bonds
Sale
Date
Original
Borrowing
Interest
Rates to
Maturity
Final
Maturity
Public Improvements (Refunding-Series A)
Public Improvements
Public Improvements (Refunding)
Public Improvements (Series A)
Public Improvements
Public Improvements
Public Improvements
Public Improvements
Public Improvements
Public Improvements (Series A)
2011
2012
2014
2014
2016
2017
2018
2019
2020
2021
$2,440,000
500,000
1,203,000
445,000
450,000
1,500,000
1,902,000
2,700,000
2,865,000
1,000,000
4.50-4.90%
4.60-4.70
4.00-4.20
4.50
3.50-3.60
4.00-4.50
3.50-4.25
4.00-4.25
4.00-4.25
3.375-4.00
2025
2023
2025
2029
2031
2031
2031
2034
2040
2035
68
Outstanding
June 30, 2022
$
500,000
61,528
375,000
238,000
300,753
1,240,000
1,637,529
1,980,000
2,760,000
949,327
$10,042,137
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Special Assessment Bonds
The government also issued special assessment debt in 2022 to provide funds for the
construction of streets in new residential developments. These bonds will be repaid
from amounts levied against the property owners benefited by this construction. Those
amounts, including interest, are 100 percent pledged to pay the scheduled principal and
interest payments on the special assessment bonds. In the event that a deficiency exists
because of unpaid or delinquent special assessments at the time a debt service payment
is due, the government must provide resources to cover the deficiency until other resources, for example, foreclosure proceeds, are received. The bonds have a stated rate of
interest of 6.5 percent and are payable in equal installments of principal over the next 10
years.
Governmental Activities:
Special assessment
bonds
Sale
Date
Original
Borrowing
Interest
Rates to
Maturity
Final
Maturity
Outstanding
30-Jun-09
2022
$4,700,000
6.5
2032
$4,700,000
Pension Related Debt
The Statewide Local Government Employees’ Retirement System (SLGERS) charges to
participating governments increased significantly in 2016. Consequently, the State Legislature enacted new statutes which enabled employers to amortize a portion of their
next three years’ bills. For fiscal year 2018, contributions in excess of seven percent of
covered payroll were eligible for amortization. For fiscal years 2019 and 2020, contributions in excess of 9.5% and 10.5% of covered payroll, respectively, were eligible for
amortization. The government can elect to accelerate its amortization payments to the
state. Below are the original amounts, activity during the year, and June 30, 2022 balances for the SLGERS contributions the government has chosen to amortize:
Fiscal
Contribution
Amount
Amortized
Balance
07/01/21
Payments
Balance
06/30/22
2020
1,893,896
1,507,040
193,428
1,313,612
2019
2,137,002
1,542,906
198,032
1,344,874
2018
3,306,815
2,387,507
306,436
2,081,071
$7,337,713
$5,437,453
$697,896
$4,739,557
During the fiscal year ended June 30, 2022, the amortization payments were charged to
expenditures in the general fund and to the government-wide financial statements for
governmental activities.
69
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Advance Refunding
The government issued $5,810,000 in public improvement bonds with interest rates
ranging from 2.0% to 4.0%. The proceeds were used to advance refund $5,730,000 of outstanding 2011, 2012 Series B, 2013 Series A, and 2013 Series B public improvement bonds
which had interest rates ranging from 4.25% to 5.25%. The net proceeds of $5,937,204
(including a $249,914 premium and after payment of $122,710 in underwriting fees and
other issuance costs) were deposited in an irrevocable trust with an escrow agent to provide funds for the future debt service payment on the refunded bonds. As a result, the
2011, 2012 Series B, 2013 Series A, and 2013 Series B public improvement bonds are considered defeased and the liability for those bonds has been removed from the statement
of net position.
The reacquisition price exceeded the net carrying amount of the old debt by
$207,204. This amount is being netted against the new debt and amortized over the
remaining life of the refunding debt. The government advance refunded the 2011,
2012 Series B, 2013 Series A, and 2013 Series B public improvement bonds to reduce
its total debt service payments over 6 years by $327,142 and to obtain an economic
gain (difference between the present values of the debt service payments on the old
and new debt) of $276,773.
Prior year defeasance of debt. In prior years, the government defeased general obligation public improvement bonds by placing the proceeds of the new bonds in an irrevocable trust account to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the government’s financial statements. At June 30, 2022, $12,230,000 of defeased bonds remain outstanding.
Legal debt margin
The government is subject to a debt limit that is 7 percent of the five-year average of the
full valuation of taxable real property. At June 30, 2022 that amount was $654,486,768.
As of June 30, 2022 the total outstanding debt applicable to the limit was 91,425,200
which is 13.97 percent of the total debt limit.
Changes in long-term liabilities
Changes in the government’s long-term liabilities for the year ended June 30, 2022 are as
follows:
70
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Balance
July 1, 2021
Additions
Reductions
Balance
Due Within
June 30, 2022
One Year
Governmental Activities:
Bonds payable
General obligation bonds
$77,491,180
$5,810,000
($10,448,317)
$72,852,863
$4,386,166
-
4,700,000
-
4,700,000
470,000
Premium
503,327
249,914
(83,226)
670,015
-
Discount
-
(10,000)
1,000
(9,000)
-
77,994,507
10,749,914
(10,530,543)
78,213,878
4,856,166
-
693,113
146,042
(697,896)
-
4,739,557
Capital leases
5,437,453
-
146,042
50,000
Compensated absences
4,864,074
1,398,215
(973,610)
5,288,679
2,629,620
Claims
3,869,829
1,761,680
(2,070,720)
3,560,789
2,174,256
-
10,609,000
-
10,609,000
-
92,165,863
24,664,851
(14,272,769)
102,557,945
10,403,155
Special assessment bonds
Total bonds payable
Pension related debt
Net other postemployment benefit obligation
Governmental activities long-term liabilities
The liability for pension-related debt is fully liquidated by the general fund. For compensated absences, the general fund normally liquidates 60 percent, and the Library,
Housing Grants, and Garage funds normally liquidate 15 percent, 10 percent, and 10
percent, respectively. The remaining 5 percent is liquidated by other governmental
funds and the internal service fund. This is the first fiscal year that the government has
reported a net other postemployment benefit obligation. In the coming years, this liability is expected to be liquidated by the General Fund, Library Fund, Housing Grants
Fund, and Garage Fund. The entire claims liability is reported in the risk management
internal service fund and will be liquidated by that fund.
Balance
July 1, 2021
Additions
Reductions
Balance
Due Within
June 30, 2022
One Year
Business-type Activity:
General obligation bonds
Compensated absences
$11,069,820
5,188
-
259,000
$11,138,206
$264,188
Net other postemployment benefit obligation
Business-type activities long-term liabilities
$-
68,386
($1,027,683)
$10,042,137
$938,967
(13,677)
59,897
5,990
259,000
-
$10,361,034
$944,957
($1,041,360)
The debt service requirements for the government’s bonds, loans, and notes are as follows:
71
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Governmental Activities:
Pension Related
Year ending
June 30,
2023
Bonds
Debt
Principal
Interest
$ 4,386,166
Principal
$ 3,010,723
$ 693,113
$1,000,000
2024
4,144,240
2,839,477
693,113
-
2025
4,114,622
2,674,760
693,113
-
2026
4,115,007
2,513,010
693,112
-
2027
4,235,943
2,346,669
693,112
-
2028-2032
21,531,716
9,002,266
1,273,994
-
2033-2037
16,662,687
4,757,611
-
-
2038-2042
9,118,349
2,037,963
-
-
2043-2046
4,544,133
505,393
-
-
$ 72,852,863
$ 29,687,872
$ 4,739,557
$1,000,000
Total
Year ending
June 30,
2023
Special Assessment Bonds
Principal
$
Total Governmental Activities
Interest
$
Interest
376,000
$ 5,549,279
$ 3,386,723
2024
470,000
268,000
5,307,353
3,107,477
2025
470,000
238,000
5,277,735
2,912,760
2026
470,000
203,000
5,278,119
2,716,010
2027
470,000
172,000
5,399,055
2,518,669
2028-2032
2,350,000
423,000
25,155,710
9,425,266
2033-2037
-
-
16,662,687
4,757,611
2038-2042
-
-
9,118,349
2,037,963
2043-2046
-
-
4,544,133
505,393
$ 4,700,000
$ 1,680,000
$ 82,292,420
$ 31,367,872
Total
470,000
Principal
Business-Type Activities
Year ending
June 30,
Bonds
Principal
Total Primary Government Debt
Interest
Principal
Interest
2023
$938,967
$403,143
$ 6,488,246
2024
875,894
365,752
6,183,247
3,473,229
2025
880,511
329,722
6,158,246
3,242,482
2026
585,127
295,917
5,863,246
3,011,927
2027
589,190
273,122
5,988,245
2,791,791
2028-2032
2,835,217
1,021,399
27,990,927
10,446,665
2033-2037
2,396,446
484,337
19,059,133
5,241,948
2038-2042
940,785
77,576
10,059,134
2,115,539
2043-2046
Total
-
-
$10,042,137
$3,250,968
72
$ 3,789,866
4,544,133
505,393
$92,334,557
$ 34,618,840
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
M. Fund balance
Minimum fund balance policy. The governing council has adopted a financial policy to maintain a minimum level of unrestricted fund balance (the total of the committed, assigned, and
unassigned components of fund balance) in the general fund. The target level is set at two
months of general fund annual revenues (approximately 16.7%). This amount is intended to
provide fiscal stability when economic downturns and other unexpected events occur. If
fund balance falls below the minimum target level because it has been used, essentially as a
“revenue” source, as dictated by current circumtstances, the policy provides for actions to replenish the amount to the minimum target level. Generally, replenishment is to occur within
a three-year period.
Stabilization arrangement. On June 18, 2021, during the prior fiscal year the governing council adopted a resolution to establish and maintain a revenue stabilization reserve (“rainy day
fund”) in the general fund. The principal resource for this reserve is a one-quarter of one percent tax on gross taxable retail sales (.25% sale tax). Other resources may be directed for inclusion in the reserve through the adoption of a resolution or ordinance by the governing
council.
Expenditure of the amounts in the revenue stabilization reserve may occur only when specific circumstances exist. The adopted resolution directs that these resources may be used to
mitigate actual revenue shortfalls (when compared to estimated revenues) of greater than
ten percent but only if the projected ending unrestricted fund balance in the general fund is
less than the one month of the current year’s budgeted expenditures (approximately 8.3%).
These circumstances are not expected to occur routinely.
To allow for the withdrawal of the resources, their use must first be recommended by the
mayor and then approved by a two-thirds vote of the governing council. If the use of resources is, in fact, allowed the maximum that can be used is limited to the amount that would
bring the ending unrestricted fund balance to one month of the current year’s budgeted expenditures (approximately 8.3%).
N. Interfund receivables and payables
The composition of interfund balances as of June 30, 2022 is as follows:
Due to/from other funds:
Receivable Fund
General
Capital projects
Transit
Payable Fund
Total nonmajor governmental funds
General
Nonmajor governmental fund –
Youth development and recreation
Total
Amount
$ 145,000
335,000
12,000
$ 492,000
The outstanding balances between funds result mainly from the time lag between the dates
that (1) interfund goods and services are provided or reimbursable expenditures occur, (2)
transactions are recorded in the accounting system, and (3) payments between funds are
made. These amounts also include balances of working capital loans made to several
73
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
nonmajor governmental funds which the general fund expects to collect in the subsequent
year.
Advances from/to other funds
Payable Fund
Nonmajor governmental funds
Receivable Fund
General
Amount
290,148
The amounts payable to the general fund relate to working capital loans made to several
nonmajor governmental funds. None of the balance is scheduled to be collected in the subsequent year.
O. Interfund transfers
The composition of interfund transfers for the year ended June 30, 2020 is as follows:
Interfund transfers:
Transfer in:
Enterprise
fund
Nonmajor
governmental
funds
General
fund
Capital
projects fund
Debt
service fund
-
1,210,000
-
1,615
3,728,209
4,939,824
20,944
-
942,109
251,080
-
1,214,133
Debt service fund
-
621,625
-
-
-
621,625
Nonmajor
governmental funds
-
-
284,231
-
-
284,231
20,944
1,831,625
1,226,340
252,695
3,728,209
7,059,813
Transit fund
Total
Transfer out:
General fund
Capital projects fund
Total
During the year, transfers are used to 1) move revenues from the fund with collection authorization to the debt service fund as debt service principal and interest payments become due
and 2) move general fund resources to provide an annual subsidy to the transit fund.
Further, during the year ended June 30, 2022, the government made the following one-time
transfers:
1) A transfer of $1,200,000 from the general fund to the capital projects fund to fulfill the
general fund’s commitment to participate in a special assessment project to construct
streets in the government’s new housing development.
2) $846,000 of special assessment bond proceeds from the capital projects fund to the debt
service fund to establish a mandatory reserve.
3) $251,080 returned by the capital projects fund because of a significant delay in a construction project of a nonmajor governmental fund.
74
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
P. Discretely presented component units
1. Urban Renewal Agency (Agency)
Capital assets activity for the Agency for the year ended June 30, 2022, was as follows:
Capital Assets-Land
Balance
July 1, 2021
$ 6,601,630
Increases
$
-
Decreases
$ -
Balance
June 30, 2022
$ 6,601,630
The schedule below details the changes in the Agency's short-term non-capital borrowings during the year ended June 30, 2022:
Year of
Original
Issue
Interest
Rate
Balance
07/01/21
Issues
2020
2.00%
$4,000,000
$4,000,000
Revenue Anticipation Note
Redemptions
$4,000,000
Balance
06/30/22
$4,000,000
The taxable revenue anticipation note was issued on May 27, 2022, and matures on December 29, 2022. Interest expense of $136,000 for the year was recorded by the Agency.
2. Cable TV Commission
Balance
July 1, 2021
Balance
June 30, 2022
Increases
Decreases
$345,616
320,730
32,513
$-
$-
$345,616
320,730
32,513
Total capital assets being depreciated
698,859
-
-
698,859
Less accumulated depreciation for:
Buildings and facilities
Machinery and equipment
Rolling stock
214,284
213,172
24,383
13,825
25,518
3,251
-
228,109
236,690
27,634
Total accumulated depreciation
451,839
40,594
$247,020
$40,594
Capital assets, being depreciated:
Buildings and facilities
Machinery and equipment
Rolling stock
Cable TV Commission capital assets, net
492,433
$
-
$206,426
Capital assets activity for the Cable TV Commission for the year ended June 30, 2022,
was as follows:
75
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Depreciation expense charged to the Cable TV Commission component unit was
$40,594.
The long-term debt activity for the Cable Television component unit for the year ended
June 30, 2022 is as follows:
Balance
July 1, 2021
Compensated absences
Additions
Reductions
Balance
Due Within
June 30, 2022
One Year
$21,246
$4,527
($23,507)
$2,266
$1,050
-
42,000
-
42,000
-
$21,246
$46,527
($23,507)
$44,266
$1,050
Other post employment benefit
obligations
Total long-term liabilities
Q. Contingencies
The government participates in various federal grant programs, the principal of which are
subject to program compliance audits pursuant to the Single Audit Act as amended. Accordingly, the government’s compliance with applicable grant requirements will be established
at a future date. The amount of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the government anticipates such amounts, if
any, will be immaterial.
The government is a defendant in various lawsuits. Although the outcome of these lawsuits
is not presently determinable, in the opinion of the government's legal counsel, the resolution of these matters will not have a material adverse effect on the financial condition of the
government.
R. Subsequent events
On September 17, 2022, the government issued $3,250,000 bond anticipation notes to fund
various capital projects. The interest rate on the notes is 1.5 percent and the maturity date is
September 17, 2023.
76
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Required Supplementary Information
Name of Government
Public Safety Employees’ Pension Plan
Schedule of Funding Progress
Actuarial
Valuation
Date
7/1/2021
7/1/2020
7/1/2019
Actuarial Value
of Assets
(a)
$37,516,400
$32,992,700
$32,992,700
Actuarial
Accrued
Liability (AAL) Entry Age
(b)
$ 42,267,100
$ 42,267,100
$ 38,731,600
Unfunded AAL
(UAAL)
(b-a)
$ 4,750,700
$ 9,274,400
$ 5,738,900
Funded Ratio
(a / b)
88.76%
78.06%
85.18%
Covered Payroll
(c)
$10,396,800
$10,396,800
$ 9,896,500
UAAL as a
Percentage of
Covered
Payroll
[(b-a) / c]
45.69%
89.20%
57.99%
Name of Government
General Employees’ Other Postemployment Benefits Plan1
Schedule of Funding Progress
Actuarial
Valuation
Date
7/1/2021
Actuarial Value of
Assets
(a)
$
-
Actuarial
Accrued
Liability (AAL) Projected
Unit Credit
(b)
$ 260,210,000
Unfunded AAL
(UAAL)
(b-a)
$ 260,210,000
1
Funded Ratio
(a / b)
$
-
Covered Payroll
(c)
$ 69,485,795
The General Employees’ Other Postemployment Benefits Plan was established on July 28, 2020. The
information is from the first actuarial valuation performed for this plan.
77
UAAL as a
Percentage of
Covered
Payroll
[(b-a) / c]
374.48%
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Nonmajor Governmental Funds
Special Revenue Funds
Special revenue funds are used to account for specific revenue sources that are restricted,
committed, or assigned to expenditures for particular purposes.
Library Fund - to account for the operation and maintenance of the library and the application of
any gifts and donations received for the benefit of the library. A portion of the property tax levy
is dedicated to the library.
Housing Grants Fund – to account for state and federal grants that provide housing assistance for
low and moderate income families within the NAME OF GOVERNMENT. This fund is also used
to account for gifts, grants and contributions used for the purpose of enhancing public housing
occupancy.
Community Development Block Grants Fund - to account for programs and activities which will
benefit low and moderate income families through the prevention or elimination of slums and
blight.
Public Safety Grants Fund - to account for grants received from the federal, state and local
governments for the enhancement of public safety activities.
Youth Development and Recreation Fund - to account for various grants received from the
federal, state and local governments and private contributions for youth development programs
that are designed to build skills and competencies among the government's youth. This fund is
also used to account for the acquisition and/or development of recreational facilities and open
space.
Garage Fund - to account for parking revenues which are restricted to the operation and
maintenance of the parking structure
Permanent Fund
The permanent fund is used to report resources that are legally restricted to the extent that only
earnings, not principal, may be used for purposes that support the government’s programs.
Tracy Sylvia Memorial Fund is – accounts for an endowment whose earnings are restircted to
expenditures for urban concerns.
78
79
$
$
$
$
The notes to financial statements are an integral part of this statement
Total liabilities and fund balances
FUND BALANCES
Nonspendable:
Endowment
Prepaid items
Restricted:
Library purposes
Housing services
Community redevelopment
Law enforcement
Youth programs
Nonrecurring repairs and other parking improvements
General obligation debt
Special assessment debt
Committed:
For open space
Total fund balances
LIABILITIES
Accounts payable
Accrued liabilities
Deposits payable
Due to retirement system
Due to other funds
Advances to other funds
Unearned revenue-other
Total liabilities
ASSETS
Cash and cash equivalents
Investments
Receivables (net of allowance for uncollectibles)
Intergovernmental receivable
Prepaid items
Total assets
346,961
$
669,291
625,988
52,783
107
9,705
12,396
18,367
2,835
43,303
630,302
38,882
107
669,291
625,881
-
$
$
$
Housing
Grants
52,276
-
507
104,700
138,741
50,737
294,178
342,746
3,708
507
346,961
Library
$
$
$
$
$
$
Garage
4,642,099
4,513,391
4,513,391
-
-
91,140
11,973
10,595
5,000
10,000
128,708
2,141,094
2,459,351
41,654
4,642,099
$
$
$
$
$
488,710
376,200
376,200
-
-
6,564
946
35,000
70,000
112,510
380,929
107,781
488,710
$
$
$
914,947
372,776
374,073
1,297
-
-
167,598
43,673
2,455
117,000
210,148
540,874
375,937
539,010
914,947
$
$
$
938,867
338,917
338,917
-
-
136,651
225,174
10,540
227,585
599,950
410,244
528,623
938,867
$
$
$
$
10,937
10,937
937
-
10,000
-
-
495
10,182
260
10,937
Tracy Sylvia
Memorial
Public Safety
Grants
Community
Development
Block Grant
Youth
Development
and Recreation
Permanent
Fund
Special Revenue Funds
Name of Government
Name of Government
Combining Balance Sheet
Combining Balance Sheet
Nonmajor Governmental Funds
Nonmajor Governmental Funds
June 30, 2022
June 30, 2022
$
$
$
$
8,011,812
10,000
614
52,276
625,881
4,514,328
376,200
1,297
338,917
372,776
6,292,289
516,358
431,957
18,367
78,108
157,000
290,148
227,585
1,719,523
4,281,747
538,805
2,502,201
688,445
614
8,011,812
Total
Nonmajor
Governmental
Funds
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
80
The notes to financial statements are an integral part of this statement.
52,783
Fund balances-ending
(1,133)
(284,231)
(284,231)
283,098
5,449,929
5,449,929
5,539,162
28,115
170
125,330
40,250
5,733,027
53,916
$
$
Fund balances-beginning
Net change in fund balances
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Excess (deficiency) of revenues
over (under) expenditures
EXPENDITURES
Current:
Public safety
Highways and streets
Culture and recreation
Total expenditures
REVENUES
Property taxes
Intergovernmental
Investment earnings
Fees
Special assessments
Miscellaneous
Total revenues
Library
$
$
625,988
1,002,711
(376,723)
1,615
1,615
(378,338)
4,665,591
4,665,591
4,248,931
8,711
17,169
12,442
4,287,253
Grants
Housing
$
$
4,513,391
4,442,850
70,541
-
70,541
1,556,393
1,556,393
1,050,074
8,795
535,503
32,562
1,626,934
Block Grant
Development
Community
$
$
376,200
291,486
84,714
-
84,714
372,872
372,872
303,280
4,018
150,288
457,586
Grants
Public Safety
Special Revenue Funds
$
$
374,073
115,073
7,920
251,080
251,080
7,920
17,956
1,623,765
1,641,721
1,555,216
7,920
86,505
1,649,641
and Recreation
Development
Youth
Name of Government
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
$
$
338,917
263,209
75,708
-
75,708
4,238,979
4,238,979
8,498
4,298,524
7,665
4,314,687
Garage
$
$
10,937
10,590
347
-
347
222
222
569
569
Memorial
Tracy Sylvia
Fund
Permanent
$
$
Total
6,292,289
6,179,835
112,454
252,695
(284,231)
(31,536)
143,990
390,828
4,238,979
13,295,900
17,925,707
5,539,162
7,185,616
38,681
4,976,526
329,712
18,069,697
Funds
Governmental
Nonmajor
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Name of Government
Library Fund
Library Fund
Schedule of Revenues, Expenditures and Changes in
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual
Fund Balance - Budget and Actual
For the Year Ended June 30, 2022
For the Year Ended June 30, 2022
Final Budgeted
Amounts
REVENUES
Property taxes
Intergovernmental
Investment earnings
Fees
Miscellaneous
Total revenues
$
EXPENDITURES
Current:
Culture and recreation:
Personnel services
Materials and supplies
Contractual services
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources
$
Net change in fund balances*
Fund balance-beginning
Fund balance-ending
$
5,857,718
28,943
250
137,500
55,185
6,079,596
Actual
Amounts
$
5,539,162
28,115
170
125,330
40,250
5,733,027
81
$
(318,556)
(828)
(80)
(12,170)
(14,935)
(346,569)
4,113,688
1,054,785
639,118
5,807,591
4,046,808
1,044,279
358,842
5,449,929
66,880
10,506
280,276
357,662
272,005
283,098
11,093
(296,591)
(296,591)
(284,231)
(284,231)
12,360
12,360
(24,586)
(1,133)
53,916
53,916
-
52,783
23,453
29,330
$
* The net change in fund balances was included in the budget as an appropriation (i.e., spenddown) of fund balance.
The notes to financial statements are an integral part of this statement.
Variance with
Final Budget
$
23,453
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
NameName
of Government
of Government
Debt Service
Fund Fund
Debt Service
Schedule
of
Revenues,
Expenditures
and Changes
in
Schedule of Revenues, Expenditures
and Changes
in
Fund Balance
Budget
and
Actual
Fund Balance - Budget and Actual
For theFor
Year
June 30,
2022
theEnded
Year Ended
June
30, 2022
Actual
Amounts
Final Budgeted
Amounts
REVENUES
Property taxes
Investment earnings
Special assessments
Total revenues
$
EXPENDITURES
Debt service:
Principal
Interest
Refunding bond issuance costs
Total expenditures
7,732,456
470,000
8,202,456
$
5,492,653
3,314,518
122,710
8,929,881
Excess (deficiency) of revenues over (under) expenditures
(727,425)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Refunding bonds issued
Premium on refunding bonds issued
Payment to refunded bond escrow agent
Total other financing sources and uses
1,226,340
(621,625)
5,810,000
249,914
(5,937,204)
727,425
Net change in fund balance
$
Fund balance-beginning
Fund balance-ending
$
The notes to financial statements are an integral part of this statement.
82
7,935,396
241,967
470,000
8,647,363
$
774,336
78,312
852,648
570,130
1,297,555
1,226,340
(621,625)
5,810,000
249,914
(5,937,204)
727,425
1,297,555
1,118,005
1,118,005
$
202,940
241,967
444,907
4,718,317
3,236,206
122,710
8,077,233
-
1,118,005
Variance with
Final Budget
2,415,560
$
1,297,555
-
$
1,297,555
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
From Inception and For the Year Ended June 30, 2022
Prior Years
Actual
REVENUES
Intergovernmental-state
Investment earnings
Total revenues
$
EXPENDITURES
Capital outlay:
General government
Public safety
Highways and streets
Sanitation
Culture and recreation
Total Expenditures
Deficiency of revenues (under)
expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Ttransfers out
General obligation bonds issued
Special assessment bonds issued
Discount on special assessment debt
Total other financing sources (uses)
Net change in fund balances
$
2,916,996
1,809,970
4,726,966
Current Year
Actual
$
874,480
201,620
1,076,100
Total Actual
to Date
$
3,791,476
2,011,590
5,803,066
Project
Authorization
$
4,850,000
2,881,325
7,731,325
104,314
1,016,896
15,157,528
1,457,573
573,659
18,309,970
462,180
1,465,901
9,574,399
1,696,099
1,443,330
14,641,909
566,494
2,482,797
24,731,927
3,153,672
2,016,989
32,951,879
1,164,250
4,378,700
30,283,000
5,347,300
3,883,700
45,056,950
(13,583,004)
(13,565,809)
(27,148,813)
(37,325,625)
19,650,000
19,650,000
1,831,625
(1,214,133)
4,700,000
(10,000)
5,307,492
1,831,625
(1,214,133)
19,650,000
4,700,000
(10,000)
24,957,492
1,821,625
(2,846,000)
33,650,000
4,700,000
37,325,625
6,066,996
(8,258,317)
(2,191,321)
Fund balances - beginning
Fund balances - ending
$
The notes to financial statements are an integral part of this statement.
83
6,066,996
(2,191,321)
$
-
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Internal Service Funds
Internal service funds are used to account for services provided to other departments or agencies
of the government, or to other governments on a cost-reimbursement basis.
Fleet Management Fund – to account for the government’s transportation fleet including fleet acquisition and disposal, preventative maintenance, repairs, and the rental of motor vehicles to
other departments and related costs.
Risk Management Fund – to account for the central management and billing of workers’ compensation, general liability, and property damage.
84
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Internal Service Funds
Combining Statement of Net Position
June 30, 2022
Fleet Management
ASSETS
Current assets:
Cash and cash equivalents
Investments
Interest receivable
Intergovernmental receivable
Inventories
Prepaid items
Total current assets
$
93,865
49,747
3,398
129,192
22,671
37,823
336,696
Noncurrent assets:
Capital assets:
Buildings
Machinery, equipement, and vehicles
Less accumulated depreciation
Total noncurrent assets
Total assets
Total
Internal Service
Funds
Risk Management
$
87,745
5,283,268
(2,466,987)
2,904,026
3,240,722
5,789,855
561,539
3,681
6,355,075
$
5,883,720
611,286
7,079
129,192
22,671
37,823
6,691,771
6,355,075
87,745
5,283,268
(2,466,987)
2,904,026
9,595,797
LIABILITIES
Current liabilities:
Accounts payable
Compensated absences
Claims and judgments
Due to retirement system
Total current liabilities
361,794
9,265
371,059
452,229
7,414
2,174,256
3,268
2,637,167
814,023
16,679
2,174,256
3,268
3,008,226
Noncurrent liabilities:
Compensated absences
Claims and judgments
Other post employment benefit obligations payable
Total noncurrent liabilities
Total liabilities
19,315
25,000
44,315
415,374
8,274
1,386,533
36,000
1,430,807
4,067,974
27,589
1,386,533
61,000
1,475,122
4,483,348
2,904,026
(78,678)
2,287,101
2,904,026
2,208,423
NET POSITION
Net investment in capital assets
Unrestricted
Total net position
$
2,825,348
The notes to financial statements are an integral part of this statement.
85
$
2,287,101
$
5,112,449
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Internal Service Funds
Combining Statement of Revenues, Expenses, and Changes in Net Position
For the Year Ended June 30, 2022
Fleet Management
Operating revenues:
Charges for services:
Risk management
Fleet management
Total operating revenues
$
1,902,063
1,902,063
Operating expenses:
Personnel services
Materials and supplies
Contractual services
Claims
Depreciation
Total operating expenses
Operating income (loss)
Change in net position
Net position-beginning
Net position-ending
Risk Management
$
295,983
518,060
633,185
373,469
1,820,697
81,366
Nonoperating revenues:
Investment earnings
The notes to financial statements are an integral part of this statement.
86
2,632,108
2,632,108
$
2,632,108
1,902,063
4,534,171
271,484
426,169
618,315
1,761,680
3,077,648
(445,540)
567,467
944,229
1,251,500
1,761,680
373,469
4,898,345
(364,174)
8,348
131,182
139,530
89,714
(314,358)
(224,644)
2,735,634
2,825,348
$
Total
Internal Service
Funds
$
2,601,459
2,287,101 $
5,337,093
5,112,449
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Internal Service Funds
Combining Statement of Cash Flows
For the Year Ended June 30, 2022
Fleet Management
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Receipts from interfund charges for fleet management services
Receipts from interfund charges for risk management services
Payments to suppliers and providers
Payments to employees for salaries and benefits
Net cash provided by (used for) operating activities
$
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets
Net cash (used for) capital and related financing activities
110,253
1,774,063
(1,055,552)
(116,315)
712,449
Risk Management
$
(639,405)
(639,405)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments
Proceeds from sale of investments
Interest on investments
Net cash provided by (used for) investing activities
28,539
Cash and cash equivalents, July 1
65,326
Cash and cash equivalents, June 30
1,059
2,631,049
(3,171,822)
(4,528)
(544,242)
$
-
(81,268)
30,638
6,125
(44,505)
Net increase (decrease) in cash and cash equivalents
Total
Internal Service
Funds
(639,405)
(639,405)
(2,357,174)
2,377,000
131,230
151,056
(2,438,442)
2,407,638
137,355
106,551
(393,186)
(364,647)
6,183,041
$
93,865
$
$
81,366
$
111,312
1,774,063
2,631,049
(4,227,374)
(120,843)
168,207
5,789,855
$
6,248,367
5,883,720
Reconciliation of operating Income (loss) to net Cash provided by
(used for) operating activities:
Operating income (loss)
(445,540)
$
(364,174)
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation expense
(Increase) in intergovernmental receivables
(Increase) in inventories
(Increase) in prepaid items
Increase in accounts payable
Increase in compensated absences
Increase in due to retirement system
(Decrease) in claims and judgments payable
Increase in other post employment benefit obligations payable
Total adjustments
373,469
(17,747)
(22,671)
(37,823)
300,540
10,315
25,000
631,083
Net cash provided by (used for) operating activities
$
The notes to financial statements are an integral part of this statement.
87
712,449
166,110
7,414
814
(309,040)
36,000
(98,702)
$
(544,242)
373,469
(17,747)
(22,671)
(37,823)
466,650
17,729
814
(309,040)
61,000
532,381
$
168,207
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Fiduciary Funds
Agency Fund
Agency funds are used to account for short-term custodial collections on resources on behalf of
another individual, entity, or government.
Agency fund – to account for employee payroll tax withholdings, towing and storing charges for
impounded vehicles collected on behalf of private vendors (i.e., towing companies), good faith
deposits for the use of the government’s entertainment facilities, and utility charges collected by
the government on behalf of other governments.
88
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Agency Fund
Statement of Changes in Assets and Liabilities
For the Year Ended June 30, 2022
Balance
July 1, 2021
ASSETS
Cash and cash equivalents
Investments
Receivables
Total assets
$
1,252,632
3,963
51,624
$
57,437,061
24
-
$
1,308,219
$
57,437,085
LIABILITIES
Payroll witholdings and
employer contributions
Accounts payable
Deposits
Due to other governments
Total liabilities
Additions
$
$
126,252
179,951
992,795
9,221
1,308,219
$
$
18,344,591
2,315,583
2,415,841
34,360,312
57,436,327
The notes to financial statements are an integral part of this statement.
89
Deductions
$
$
$
Balance
June 30, 2022
56,859,809
734
$
1,829,884
3,987
50,890
56,860,543
$
1,884,761
18,329,008
1,890,984
2,280,042
34,359,751
56,859,785
$
$
141,835
604,550
1,128,594
9,782
1,884,761
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
STATISTICAL SECTION
This part of the Government's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health.
Contents
Page
Financial Trends
91-96
These schedules contain trend information to help the reader understand
how the government's financial performance and well-being have changed
over time.
Revenue Capacity
97-100
These schedules contain information to help the reader assess the
government's most significant local revenue source, the property tax.
Debt Capacity
101-105
These schedules present information to help the reader assess the
afordability of the government's current level of outstanding debt and the
government's ability to issue additional debt in the future.
Demographic and Economic Information
106-107
reader understand the environment within which the government's financial
activities take place.
Operating Information
108-110
These schedules contain service and infrastructure data to help the reader
understand how the information in the government's financial report relates
to the services the government provides and the activities it performs.
90
$
$
Primary government
Net investment in capital assets
Restricted
Unrestricted
Total primary government
net position
222,063,205
$
91
257,381,778
234,748,596
6,771,802
15,861,380
35,318,573
29,056,307
6,262,266
205,692,289
6,771,802
9,599,114
$
Business-type activities
Net investment in capital assets
Unrestricted
Total business-type
activities net position
Governmental activities
Net investment in capital assets
Restricted
Unrestricted
Total governmental
activities net position
2022
$
$
$
$
274,204,647
239,800,279
7,147,294
27,257,074
33,784,149
28,563,887
5,220,262
240,420,498
211,236,392
7,147,294
22,036,812
2021
$
$
$
$
281,073,953
241,254,010
7,423,430
32,396,513
32,931,252
27,573,605
5,357,647
248,142,701
213,680,405
7,423,430
27,038,866
2020
$
$
$
$
278,202,536
242,112,697
7,057,070
29,032,769
32,311,733
27,163,979
5,147,754
245,890,803
214,948,718
7,057,070
23,885,015
2019
$
$
$
$
278,116,572
244,589,728
6,509,427
27,017,417
32,376,765
27,592,642
4,784,123
245,739,807
216,997,086
6,509,427
22,233,294
Fiscal Year
2018
Name of Government
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
$
$
$
$
280,332,755
245,180,115
7,289,225
27,863,415
32,693,199
26,727,785
5,965,414
247,639,556
218,452,330
7,289,225
21,898,001
2017
$
$
$
$
273,903,929
242,049,641
8,468,799
23,385,489
33,801,478
27,311,185
6,490,293
240,102,451
214,738,456
8,468,799
16,895,196
2016
$
$
$
$
269,911,075
239,116,308
6,246,577
24,548,190
34,807,378
26,600,074
8,207,304
235,103,697
212,516,234
6,246,577
16,340,886
2015
$
$
$
$
269,005,139
238,671,864
6,024,355
24,308,920
35,910,087
26,377,852
9,532,235
233,095,052
212,294,012
6,024,355
14,776,685
2014
$
$
$
$
268,342,877
238,671,864
5,802,133
23,868,880
36,999,118
26,600,074
10,399,044
231,343,759
212,071,790
5,802,133
13,469,836
2013
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
92
Net (Expense)/Revenue
Governmental Activities
Business-type Activity
Total Net Expense
$
$
(113,135,457)
(2,458,676)
(115,594,133)
69,649,883
$
Total Program Revenues
7,677,948
12,377,439
9,301,285
2,682,219
3,824,583
14,019,870
7,802,833
57,686,177
185,244,016
8,447,428
5,974,954
14,422,382
31,887,579
63,309,737
37,109,026
10,571,560
24,711,598
3,232,134
170,821,634
9,457,623
930,131
401,441
1,174,511
11,963,706
$
$
$
2022
Business-type ActivityCharges for services
Water
Transit
Operating grants and contributions
Capital grants and contributions
Total Business-type Activity
Program Revenues
Governmental Activities:
Charges for services
General government
Public safety
Highways and streets
Sanitation
Culture and recreation
Operating grants and contributions
Capital grants and contributions
Total Governmental Activities
Total Expenses
Business-type ActivityWater
Transit
Total Business-type Activities
Expenses
Governmental Activities:
General government
Public safety
Highways and streets
Sanitation
Culture and recreation
Interest
Total Governmental Activities
$
$
$
$
$
$
(104,204,625)
(3,170,418)
(107,375,043)
63,793,186
8,535,444
890,818
270,202
1,251,689
10,948,153
35,641,828
7,841,202
11,548,967
8,974,640
2,212,837
3,564,183
12,827,195
5,876,009
52,845,033
171,168,229
8,356,237
5,762,334
14,118,571
28,317,571
59,427,149
29,529,059
9,914,570
27,023,265
2,838,043
157,049,658
2021
$
$
$
$
$
$
(104,096,801)
(3,948,290)
(108,045,091)
53,450,818
7,836,344
876,150
54,123
515,564
9,282,181
31,083,487
6,838,367
10,635,881
8,879,220
2,121,670
3,108,349
8,982,551
3,602,599
44,168,637
161,495,909
7,625,604
5,604,867
13,230,471
24,734,046
55,970,449
27,742,706
10,606,726
26,660,621
2,550,891
148,265,438
2020
$
$
$
$
$
$
(98,932,373)
(4,352,325)
(103,284,698)
50,423,995
6,560,748
863,805
644,220
8,068,773
30,998,539
6,819,679
10,109,547
8,849,489
1,919,971
3,099,854
8,222,199
3,334,484
42,355,222
153,708,693
7,038,281
5,382,817
12,421,098
23,825,828
55,015,513
24,544,783
10,102,997
25,404,083
2,394,391
141,287,595
2019
$
$
$
$
$
$
(94,377,396)
(5,024,151)
(99,401,547)
47,425,548
5,946,111
842,354
203,324
549,912
7,541,701
26,274,895
6,380,477
9,645,217
8,496,213
1,725,498
2,627,490
8,085,497
2,923,455
39,883,847
146,827,095
7,060,813
5,505,039
12,565,852
22,360,541
52,051,097
23,399,935
9,451,147
24,408,633
2,589,890
134,261,243
Fiscal Year
2018
Name of Government
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
$
$
$
$
$
$
(76,004,913)
(5,670,011)
(81,674,924)
47,282,719
4,984,370
820,132
63,425
54,479
5,922,406
12,520,972
6,054,614
7,881,501
7,882,340
1,450,419
2,252,097
7,630,697
8,208,645
41,360,313
128,957,643
6,174,790
5,417,627
11,592,417
19,956,458
43,265,059
20,288,061
9,281,934
22,133,656
2,440,058
117,365,226
2017
$
$
$
$
$
$
(69,360,153)
(4,713,342)
(74,073,495)
42,524,443
4,585,558
778,808
40,629
955,430
6,360,425
11,230,388
5,770,685
6,481,420
5,930,636
1,324,608
1,123,039
7,277,208
8,256,422
36,164,018
116,597,938
5,878,362
5,195,405
11,073,767
18,433,468
36,608,992
18,859,178
8,552,546
20,536,559
2,533,428
105,524,171
2016
$
$
$
$
$
$
(72,210,153)
(4,939,262)
(77,149,415)
38,967,747
4,584,336
804,220
39,407
683,098
6,111,061
11,225,500
4,469,610
5,379,905
5,128,925
1,224,510
1,122,550
7,275,986
8,255,200
32,856,686
116,117,162
5,877,140
5,173,183
11,050,323
18,430,999
36,407,685
18,758,505
8,502,180
20,435,264
2,532,206
105,066,839
2015
$
$
$
$
$
$
(73,110,153)
(4,172,938)
(77,283,091)
37,076,295
4,572,114
791,808
27,185
1,251,834
6,642,941
11,176,612
3,958,855
4,364,750
4,311,814
1,173,532
1,117,661
7,263,764
8,242,978
30,433,354
114,359,386
5,864,918
4,950,961
10,815,879
18,406,311
35,994,618
18,451,773
8,348,513
19,822,309
2,519,983
103,543,507
2014
$
$
$
$
$
$
(73,860,153)
(4,128,020)
(77,988,173)
35,028,247
4,559,892
779,667
23,937
1,054,729
6,418,225
11,127,724
3,248,099
3,849,594
3,894,703
1,022,554
1,112,772
7,251,544
8,230,756
28,610,022
113,016,420
5,852,696
4,693,549
10,546,245
18,381,622
35,681,550
18,145,041
8,244,846
19,509,354
2,507,762
102,470,175
2013
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
93
Change in Net Assets
Governmental Activities
Business-type Activity
Total Change in Net Assets
Total primary government
Business-type ActivityUnrestricted investment earnings
Gain (loss) on sale of capital assets
Miscellaneous
Transfers in/out
Total Business-type activities
General Revenues
Governmental Activities:
Property Taxes
Sales Tax
Franchise taxes
Intergovernmental-unrestricted
Unrestricted investment earnings
Gain (loss) on sale of capital assets
Miscellaneous
Transfers in/out
Special Item
Total general revenues, transfers, and special item
$
$
$
(18,357,293)
1,534,424
(16,822,869)
98,771,264
264,891
3,728,209
3,993,100
45,060,105
44,368,865
1,537,833
1,753,982
3,440,745
22,276
2,322,567
(3,728,209)
94,778,164
2022
$
$
$
(7,722,204)
852,897
(6,869,307)
100,505,736
156,928
261,749
3,604,638
4,023,315
43,705,394
45,962,388
1,524,322
1,692,600
3,402,933
3,799,422
(3,604,638)
96,482,421
2021
$
$
$
2,251,898
619,519
2,871,417
110,916,508
172,708
112,033
4,283,068
4,567,809
41,562,032
44,853,309
1,393,945
11,129,981
2,603,890
9,088,610
(4,283,068)
106,348,699
2020
$
$
$
$
150,996
(65,032)
85,964
103,370,662
163,298
201,767
3,922,228
4,287,293
40,677,976
42,886,257
1,490,316
10,448,692
2,128,736
5,373,620
(3,922,228)
99,083,369
2019
$
$
$
$
(1,899,749)
(316,434)
(2,216,183)
97,185,364
156,366
227,227
4,324,124
4,707,717
39,560,991
41,429,781
1,373,286
9,398,195
1,983,331
3,056,187
(4,324,124)
92,477,647
Fiscal Year
2018
Name of Government
Changes in Net Position (continued)
Last Ten Fiscal Years
(accrual basis of accounting)
$
$
$
$
7,537,105
(1,108,279)
6,428,826
88,103,750
120,835
25,119
4,415,778
4,561,732
36,187,978
37,698,714
1,365,271
7,112,143
671,908
1,616,921
(4,415,778)
3,304,861
83,542,018
2017
$
$
$
$
4,998,754
(1,005,900)
3,992,854
78,066,349
167,795
25,413
3,514,234
3,707,442
32,443,742
34,413,440
1,151,473
7,136,794
1,845,553
882,139
(3,514,234)
74,358,907
2016
$
$
$
2,008,645
(1,102,709)
905,936
78,055,351
166,573
24,191
3,645,789
3,836,553
32,442,520
34,412,218
1,150,251
7,135,572
1,843,109
880,917
(3,645,789)
74,218,798
2015
$
$
$
1,751,293
(1,089,031)
662,262
77,945,353
154,351
11,969
2,917,587
3,083,907
32,430,298
34,399,996
1,138,029
7,123,350
1,818,665
868,695
(2,917,587)
74,861,446
2014
$
$
$
1,191,541
(1,344,359)
(152,818)
77,835,355
142,129
(253)
2,641,785
2,783,661
32,418,076
34,387,774
1,125,807
7,111,128
1,794,221
856,473
(2,641,785)
75,051,694
2013
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
All other governmental funds
Nonspendable
Restricted
Committed:
Assigned
Unassigned
Total all other governmental funds
General Fund
Nonspendable
Committed
Assigned
Unassigned
Total general fund
94
$
$
$
$
10,614
9,199,459
1,572,776
(4,266,321)
6,516,528
1,144,885
407,377
2,808,387
15,442,019
19,802,668
2022
$
$
$
10,000
12,982,560
372,276
13,364,836
1,112,367
6,134,938
21,125,121
28,372,426
2021
$
$
$
10,527
12,508,040
298,468
(2,214,030)
10,603,005
1,158,208
1,714,649
27,120,781
29,993,638
2020
$
$
$
Name of Government
250
9,523,094
298,468
(222,315)
9,599,497
1,116,199
510,469
24,470,440
26,097,108
2019
$
$
$
10,801,837
147,685
(3,315,220)
7,634,302
1,165,587
1,189,412
28,052,072
30,407,071
2018
Fiscal Year
$
$
$
2017
9,868,768
147,685
3,624,645
13,641,098
1,192,637
1,143,725
25,728,970
28,065,332
(modified accrual basis of accounting)
Last Ten Fiscal Years
Fund Balances of Governmental Funds
$
$
$
948
13,478,541
4,909,990
18,389,479
1,174,232
522,315
18,502,740
20,199,287
2016
$
$
$
(2,593,189)
13,291,384
15,884,573
-
1,149,202
498,256
25,907,004
27,554,462
2015
$
$
$
(988,776)
8,974,522
215
9,963,083
-
1,181,721
979,812
24,151,591
26,313,124
2014
$
$
$
9,012,351
9,012,351
1,175,130
835,217
13,342,127
15,352,474
2013
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
95
Excess (Deficiency) of Revenues
over Expenditures
Current:
General government
Public safety
Highways and streets
Sanitation
Culture and recreation
Debt Service:
Principal
Interest and fiscal charges
Refunding bond issuance costs
Capital Outlay
Total Expenditures
EXPENDITURES
Property taxes
Sales taxes
Franchise taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Investment earnings
Fees
Special assessments
Miscellaneous
Total Revenues
REVENUES
$
(16,874,141)
(18,089,743)
6,324,088
2,783,145
24,644,360
171,114,954
4,718,317
3,236,206
272,710
14,641,909
168,017,595
44,878,064
44,440,582
1,540,319
4,253,707
18,228,591
17,976,903
7,537,158
2,131,464
5,327,040
6,711,383
153,025,211
27,697,982
55,482,693
23,703,093
7,988,698
22,490,895
$
2021
29,778,662
56,726,678
27,472,013
8,140,187
23,030,913
44,805,641
44,368,865
1,537,833
2,649,889
17,766,027
19,091,893
6,670,562
3,831,798
4,976,526
470,000
4,974,420
151,143,454
2022
$
Name of Government
224,275
6,577,407
2,525,172
138,109
7,567,246
150,538,496
25,710,086
53,232,761
22,223,697
7,698,698
24,865,320
43,646,644
43,221,166
1,498,054
4,714,648
19,402,038
14,355,680
7,511,149
2,436,139
4,026,579
9,950,674
150,762,771
2020
$
(1,996,540)
6,299,245
2,762,142
7,863,464
143,131,555
24,351,996
51,555,464
19,360,550
7,135,926
23,802,768
41,275,590
40,878,100
1,399,512
4,947,321
18,610,505
14,031,230
7,623,848
2,018,885
3,905,891
6,444,133
141,135,015
2019
$
(5,965,866)
6,060,995
2,489,014
12,989,505
137,439,935
21,636,465
45,803,466
18,841,650
7,113,206
22,505,634
39,970,123
39,585,359
1,354,705
3,461,692
18,146,071
13,346,928
6,980,147
1,085,579
3,118,156
4,425,309
131,474,069
2018
Fiscal Year
(modified accrual basis of accounting)
Last Ten Fiscal Years
Changes in Fund Balances of Governmental Funds
$
(8,378,177)
6,852,569
2,328,124
108,271
16,934,301
129,103,856
19,834,138
42,067,710
13,833,659
6,814,199
20,330,885
36,433,998
36,185,655
1,226,473
2,319,937
16,418,321
11,112,023
4,900,776
529,057
5,148,016
6,451,423
120,725,679
2017
$
(6,369,565)
6,985,217
2,627,514
20,569,823
123,535,020
18,001,573
37,157,871
13,039,449
6,429,985
18,723,588
34,137,925
34,314,888
1,137,370
2,749,721
16,444,995
9,587,683
4,599,093
959,831
5,686,189
7,547,760
117,165,455
2016
$
3,528,989
6,630,347
2,477,514
7,419,020
101,912,683
17,232,685
32,713,427
12,281,672
6,063,319
17,094,699
30,942,676
30,641,039
1,062,024
3,193,943
15,694,995
9,107,683
4,539,093
937,609
4,908,412
4,414,198
105,441,672
2015
$
4,458,188
5,549,245
2,350,346
9,478,224
97,858,825
16,481,019
30,833,635
11,478,894
6,221,652
15,465,810
29,296,239
29,010,652
1,005,515
2,195,943
14,806,995
8,457,683
4,761,315
904,276
4,352,857
7,525,538
102,317,013
2014
$
1,515,239
6,277,023
2,095,476
18,422,138
93,497,107
13,049,908
23,824,539
10,661,116
5,329,985
13,836,922
28,498,615
28,223,727
967,842
2,173,721
13,806,996
7,082,683
4,305,760
848,721
3,441,746
5,662,535
95,012,346
2013
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
OTHER FINANCING SOURCES (USES)
96
$
5.20%
(15,418,066)
$
6.26%
1,140,619
-
1,140,619
19,230,362
5,810,000
249,914
4,700,000
(10,000)
(5,937,204)
146,042
31,450
194,082
1,456,075
(15,418,066)
17,494,976
(21,099,614)
22,835,000
3,331,604
(7,059,813) (1)
-
2021
$
6.41%
4,900,038
-
4,900,038
17,598,166
(21,881,234)
8,644,500
176,222
12,470,000
509,521
(12,841,412)
4,675,763
2020
Last Ten Fiscal Years
$
6.75%
(2,344,768)
-
(2,344,768)
(348,228)
16,551,216
(20,473,444)
3,574,000
2019
$
6.90%
(3,665,057)
-
(3,665,057)
12,750,296
(17,074,420)
6,275,000
127,618
222,315
2,300,809
2018
Fiscal Year
(modified accrual basis of accounting)
$
(1) The government began recording property tax revenues directly in the fund that benefits from them, rather than transferring the revenues out of the General Fund
(2) On March 15, 2017, the government sold park land for $6,256,348.
Debt service as a percentage
of noncapital expenditures
Net change in fund balances
Special item
Net change in fund balances
before special item
Transfers in
Transfers out
General obligation bonds issued
Premium on general obligation bonds
Refunding bonds issued
Premium on refunding bonds issued
Special assessment bonds issued
Discount on special assessment bonds
Payment to refunded bond escrow agent
Capital lease
Sales of general capital assets
Insurance recoveries
Total Other Financing Sources (Uses)
2022
Name of Government
Changes in Fund Balances of Governmental Funds (continued)
8.22%
3,117,664
6,256,348 (2)
(3,138,684)
8,180,946
209,942
(8,282,617)
5,239,493
7,709,375
(12,125,153)
9,547,000
2017
$
9.42%
(2,257,080)
-
(2,257,080)
11,125,659
(14,639,893)
7,525,000
101,719
4,112,485
2016
$
9.78%
5,558,200
-
5,558,200
2,029,211
16,328,994
(19,974,783)
5,675,000
2015
$
9.04%
10,922,821
-
10,922,821
18,275,000
788,468
(18,359,248)
6,464,633
6,931,598
(9,849,185)
8,678,000
2014
$
11.46%
1,761,454
-
1,761,454
246,215
7,931,597
(10,573,382)
2,888,000
2013
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
97
$
Condo,
72,739,746
72,115,083
72,309,698
66,388,333
64,679,083
64,189,864
63,724,104
63,651,429
63,825,309
53,130,144
Apartments
Co-ops,
$
248,431,682
253,648,541
258,470,800
268,331,520
275,369,362
282,257,581
283,224,518
283,447,393
282,725,648
152,440,740
Commercial
$
Less
151,987,770
156,658,202
154,975,203
151,904,088
153,931,776
147,275,814
145,441,665
145,410,174
145,141,310
N/A (1)
Property
Tax-Exempt
(1) Exemptions reflected in the assessed valuation numbers
Source: County Assessor's Office
Note: Property in the county is reassessed annually. Tax rates are per $1,000 of assessed value.
121,005,719
120,796,989
120,349,269
119,440,434
118,563,640
117,932,903
117,927,223
116,736,008
115,635,003
110,803,152
Residences
June 30
$
Family
Ended
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
One-Three
Fiscal Year
Last Ten Fiscal Years
$
290,189,377
289,902,411
296,154,564
302,256,199
304,680,309
317,104,534
319,434,180
318,424,656
317,044,650
316,074,036
Value
Assessed
Taxable
Total
Assessed Value and Estimated Actual Value of Taxable Property
Name of Government
Taxable
2.75%
2.75%
3.24%
3.54%
3.82%
4.45%
4.71%
6.35%
7.09%
7.45%
Actual Value
Estimated
as a Percentage of
Assessed Value
$ 10,552,340,982
10,541,905,855
9,140,572,963
8,538,310,706
7,975,924,319
7,125,944,584
6,782,042,038
5,014,561,512
4,471,715,797
4,242,604,510
Taxable Value
Actual
Estimated
Total
147.48
141.93
132.64
123.05
117.61
104.31
97.00
91.48
91.48
89.15
Rate
Direct
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
98
132.64
123.05
117.61
104.31
97.00
91.48
91.48
89.15
2020
2019
2018
2017
2016
2015
2014
2013
$
-
-
-
-
-
-
-
-
-
17.70
Millage
Library
$
-
-
-
-
-
-
-
-
-
26.59
Millage
Service
89.15
91.48
91.48
97.00
104.31
117.61
123.05
132.64
141.93
147.48
Rate
Direct
Total
$
258.81
278.59
300.71
326.53
349.03
375.30
410.45
443.77
474.62
503.01
District
School
$
61.48
59.68
54.99
54.36
62.88
82.26
86.10
88.89
93.22
102.80
$
7.57(2)
11.34(3)
7.29(2)
11.14(3)
7.36(2)
9.82(3)
7.04(2)
9.38(3)
7.80(2)
9.39(3)
8.73(2)
10.75(3)
9.82(2)
12.43(3)
10.32(2)
13.29(3)
12.96(2)
15.75(3)
14.51(2)
17.53(3)
Districts
Sewer
County
Overlapping Rates
County
(1) During the current fiscal year, the levy rates were separated for the library and for debt service.
(2) Summer Valley District
(3) River Valley District
141.93
103.19
2022
2021
Millage
Year
$
Operating
Fiscal
Debt
Name of Government (1)
Last Ten Fiscal Years
Direct and Overlapping Governments
Property Tax Rates
Name of Government
$
Refuse
8.34
8.30
8.16
7.86
8.60
9.75
10.28
10.24
10.15
9.82
District
Disposal
77.39(2)
81.16(3)
75.27(2)
79.12(3)
70.51(2)
72.97(3)
69.26(2)
71.60(3)
79.28(2)
80.87(3)
100.74(2)
102.76(3)
106.20(2)
108.81(3)
109.45(2)
112.42(3)
116.33(2)
119.12(3)
$ 127.13(2)
130.15(3)
County
Total
$
Total
425.35(2)
429.12(3)
445.34(2)
449.19(3)
462.70(2)
465.16(3)
492.79(2)
495.13(3)
532.62(2)
534.21(3)
593.65(2)
595.67(3)
639.70(2)
642.31(3)
685.86(2)
688.83(3)
732.88(2)
735.67(3)
777.61(2)
780.63(3)
Overlapping
Direct and
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Principal Property Taxpayers
Current Year and Nine Years Ago
2022
2013
Percentage
Rank
1
2
3
4
5
6
7
8
9
10
Taxpayer
Mall Management Company, LP
Electric Power Company
Riverrun Galleria
4532 Kostner Property LLC
RKD Realty Associates, LP
Willowbrook Plaza
Weston Group, Inc
American Telephone & Telegraph
Initech, LLC
Verizon, Inc.
BLK Life Ins. Co.
Cadillac Mall
IBM
Northern Properties
Westhaven One
State Telephone Company
$
Percentage
Taxable
of Total
Taxable
of Total
Assessed
Assessed
Assessed
Assessed
Value
Rank
Value
Value
Rank
Value
$11,079,450
10,563,972
8,100,000
4,270,000
4,010,000
3,394,800
3,275,000
3,125,000
2,200,000
2,084,689
1
2
3
4
5
6
7
8
9
10
3.82%
3.64
2.79
1.47
1.38
1.17
1.13
1.08
0.76
0.72
$13,253,400
13,326,544
2
1
4.19%
4.22
4,839,200
9
1.53
7,939,492
6
2.51
10,350,000
8,610,000
7,995,500
6,522,000
6,370,000
3,989,894
83,196,030
3
4
5
7
8
10
3.27
2.72
2.53
2.06
2.02
1.26
32.75%
52,102,911
23.51%
Source: Assessor's Office.
Source: Assessor's Office.
99
$
100
$44,294,228
43,889,768
42,517,288
40,886,754
39,476,392
35,747,472
33,374,171
30,137,040
28,461,997
27,706,272
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
$43,909,528
43,531,722
42,337,304
40,037,322
38,771,019
35,340,978
33,113,787
30,014,396
28,417,352
27,643,657
Source: Name of Government Finance Department
Total Tax
Levy for
Fiscal Year
Fiscal
Year Ended
June 30
99.13%
99.18%
99.58%
97.92%
98.21%
98.86%
99.22%
99.59%
99.84%
99.77%
Collected within the
Fiscal Year of the Levy
Amount
Percentage
Collected
of Levy
$0
179,463
131,824
840,693
697,106
402,536
256,641
122,644
44,645
62,615
Collections in
Subsequent Years
Name of Government
Property Tax Levies and Collections
Last Ten Fiscal Years
$
43,909,528
43,711,185
42,469,128
40,878,015
39,468,125
35,743,514
33,370,428
30,137,040
28,461,997
27,706,272
99.13%
99.59%
99.89%
99.98%
99.98%
99.99%
99.99%
100.00%
100.00%
100.00%
Total Collections to Date
Amount
Percentage
Collected
of Levy
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
101
$
60,371,744
73,522,878
77,491,180
60,529,569
57,905,557
60,593,966
60,379,961
57,501,584
55,279,362
54,067,251
$
-
-
146,042
$
Special
3,669,056
2,880,209
-
10,042,137
11,069,820
11,021,931
9,154,143
7,189,734
5,919,739
5,136,116
4,458,149
$
Activities
Business-type
Bonds
Obligation
General
$
54,067,251
60,371,744
88,402,057
77,491,180
60,529,569
57,905,557
60,593,966
60,379,961
57,501,584
55,279,362
Debt
Outstanding
Total
Last Ten Fiscal Years
-
4,691,000
Bonds (1)
Assessment
(1) Presented net of original issuance discounts and premiums
(2) Personal income is disclosed on page 106
(3) United States Census Bureau
2013
2022
2021
2020
2019
2018
2017
2016
2015
2014
Leases
Capital
Governmental Activities:
Bonds (1)
Year
General
Obligation
Fiscal
Name of Government
Ratios of Outstanding Debt by Type
3.93%
4.68%
4.92%
4.32%
3.34%
3.36%
3.61%
3.79%
3.77%
3.85%
Personal Income (2)
Percentage of
54,297
53,307
57,468
57,100
57,079
56,972
57,250
56,825
56,216
55,664
Population (3)
996
1,133
993
1,538
1,357
1,060
1,016
1,058
1,063
1,023
Capita
per
Debt
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
102
Obligation
Bonds (1)
$83,565,015
88,561,000
72,583,941
71,383,802
70,048,308
68,837,303
58,716,162
56,493,940
55,281,829
69,826,086
Year Ended
June 30
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
$525,000
800,000
650,000
580,000
620,000
600,000
425,000
415,000
325,000
650,000
Service Fund (2)
Available in Debt
Less: Amounts
$83,040,015
87,761,000
71,933,941
70,803,802
69,428,308
68,237,303
58,291,162
56,078,940
54,956,829
69,176,086
Total
0.79%
0.83%
0.79%
0.83%
0.87%
0.96%
0.86%
1.12%
1.23%
1.63%
Property (3)
Value of
Actual Taxable
Estimated
Percentage of
(1)
(2)
(3)
(4)
Per
$1,445
1,537
1,260
1,243
1,213
1,201
1,037
1,007
1,012
1,298
Capita (4)
This is the general bonded debt of both governmental and business-type activities, net of original issuance discounts and premiums
This is the amount restricted for debt service principal payments
See the Schedule of Assessed Value and the Estimated Actual Value of Taxable Property on page 97 for property value data.
Population data can be found in the Schedule of Demographic and Economic Statistics on page 106
Note: Details regarding the city's oustanding debt can be found in the notes to the financial statements
General
Fiscal
Last Ten Fiscal Years
Ratios of General Bonded Debt Outstanding
Name of Government
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Direct and Overlapping Governmental Activities Debt
As of June 30, 2022
Government Unit:
School District
County
$
Estimated
Amount
Debt
Percentage
Applicable to
Outstanding
Applicable
Primary Government
100.00%
5.19%
$100,170,000
36,796,153
100,170,000
708,325,064
Subtotal, overlapping debt
Name of Government direct debt
Total direct and overlapping debt
136,966,153
73,522,878
$210,489,031
Sources: Outstanding debt and applicable percentages provided by each governmental unit.
Note: Overlapping governments are those that coincide, at least in part, with geographic
boundaries of the city. This schedule estimates the portion of the outstanding debt of those
overlapping governments that is borne by the property taxpayers of the Name of Government.
This process recognizes that, when considering the government's ability to issue and repay long-term
debt, the entire debt burden borne by the property taxpayers should be taken into account.
However, this does not imply that every taxpayer is a resident, and therefore responsible for
repaying the debt, of each overlapping government.
103
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Legal Debt Margin Information
June 30, 2022
Taxable Assessed
Estimated
Fiscal
Total Taxable
Value as a Percentage of
Actual
Year
Assessed Value
Estimated Actual Value
290,189,377
289,902,411
296,154,564
302,256,199
304,680,309
2.75%
2.75%
3.24%
3.54%
3.82%
Taxable Value
$10,552,340,982
10,541,905,855
9,140,572,963
8,538,310,706
7,975,924,319
$46,749,054,825
2022
2021
2020
2019
2018
Total Five Year Valuation
$
Five Year Average Full Valuation of Taxable Real Property
$9,349,810,965
Constitutional Debt Limit (7% of Average Full Valuation)
$654,486,768
Outstanding General Obligation Indebtness as of June 30, 2022
Governmental Activities - General Obligation Debt
Business-type Activities - General Obligation Debt
Governmental Activities - Short-term Debt - Bond Anticipation Notes
Business-type Activities - Short-term Debt - Bond Anticipation Notes
Net Indebtness subject to debt limit
Net debt contracting margin
72,852,863
10,042,137
6,905,200
1,625,000
91,425,200
$563,061,768
Percentage of net debt contracting margin available
86.03%
Percentage of net debt contracting power exhausted
13.97%
Last Ten Fiscal Years
Percentage of
Net Debt
Outstanding
Year
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
$
Contracting
Constitutional
Indebtness
Margin
Debt Limit
June 30
Available
91,425,200
90,834,750
73,600,875
71,487,700
72,519,200
66,299,700
64,365,700
64,373,139
60,396,307
67,976,953
86.03%
85.02%
86.71%
85.59%
83.48%
82.86%
81.23%
78.94%
79.08%
75.57%
654,486,768
606,517,218
553,691,863
495,927,703
438,995,374
386,728,897
342,919,806
305,609,037
288,699,535
278,230,257
$
104
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Pledged-Revenue Coverage
June 30, 2022
Special Assessment Bonds
Special
Fiscal
Assessment
Year
Collections
2022
$
658,000
Debt Service
Interest
Principal
- (1) $
$
Coverage
188,000
(1) This was the year of issuance. Accordingly, no principal payments were scheduled.
Further, there was not any debt outstanding in the previous nine years that was
secured by pledged revenue.
105
3.5
106
37.8
37.9
37.6
37.8
37.9
37.8
38
38.2
38.3
38.1
Median
Age(1)
$31,241
31,442
31,728
30,222
29,315
28,007
27,156
25,823
25,325
24,225
Per Capita
Income (1)
$1,795,357,788
1,795,338,200
1,811,002,512
1,721,807,784
1,678,283,750
1,591,497,775
1,526,601,696
1,437,411,472
1,375,071,525
1,291,362,075
Personal
Income
14.9
14.9
15.0
15.1
15.3
15.4
15.5
15.7
15.8
15.9
Education
Level in
Years of
Formal
Schooling (2)
(3) State Department of Labor unemployment rate for the County (not seasonally adjusted).
(2) Annual School Census of the Board of Education.
(1) U.S. Census Bureau.
57,468
57,100
57,079
56,972
57,250
56,825
56,216
55,664
54,297
53,307
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
Sources:
Population(1)
Fiscal
Year
Name of Government
Demographic and Economic Statistics
Last Ten Fiscal Years
7,067
7,167
6,820
6,940
6,727
6,972
6,868
6,546
6,546
6,622
Public
School
Enrollment (2)
7.1%
4.6
3.5
3.7
3.6
4.2
4.3
4.3
3.3
3.1
Unemployment
Rate(3)
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Principal Employers
Current Year and Nine Years Ago
2022
Employer
Hospital Center
School District
Name of Government
IBM
Fortuno
Rehabilitation Hospital
Bloomingdale's
Nordstrom
National Economic Research
Alliance Capital Management Corp.
XYZ Corporation
State Mental Health Facility
Spark Electric
2013
Percentage
Percentage
of Total City
of Total City
Employees
Rank
Employment
1,300
1,155
1,151
700
650
550
500
440
430
430
1
2
3
4
5
6
7
8
9
10
3.26%
2.90%
2.89%
1.76%
1.63%
1.38%
1.25%
1.10%
1.08%
1.08%
7,306
18.32%
Source: State Department of Commerce and County Planning Department
107
####
####
####
####
####
####
####
####
####
####
Employees
Rank
Employment
1,125
995
822
352
498
462
402
410
422
298
5,786
1
2
3
9
3.38%
3.22%
1.62%
0.58%
4
5
8
1.25%
1.22%
1.16%
7
6
10
1.19%
1.21%
0.52%
15.35%
108
Sources: Various city departments
General government
Public safety
Police
Officers
Civilians
Fire
Firefighters and officers
Civilians
Highways and streets
Engineering
Maintenance
Sanitation
Culture and recreation
Water
Transit
Total
Function
309
176
74
125
43
67
45
58
75
110
74
1156
177
76
127
42
67
45
58
76
107
75
1151
2021
301
2022
Name of Government
67
45
59
78
109
72
1156
125
42
175
75
309
2020
43
29
58
77
109
76
1148
134
44
187
80
311
2019
43
28
57
76
106
74
1131
131
43
183
79
311
2018
41
28
53
76
105
73
1129
132
44
185
79
313
2017
Full-time Equivalent Employees as of June 30
Last Ten Fiscal Years
Full-time Equivalent Employees by Function
41
28
52
89
102
71
1107
128
43
180
77
296
2016
40
27
52
87
106
78
1117
126
42
177
76
306
2015
39
26
53
86
110
74
1124
130
44
182
78
302
2014
39
26
52
84
107
71
1107
125
42
176
75
310
2013
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D
Name of Government
Operating Indicators by Function
Last Ten Years
Fiscal Year
2022
General Government:
Building permits issued
1,224
Public Safety:
249
Number of police personnel and officers
Number of arrests
4,797
Number of traffic violations
23,740
Number of parking violations
228,113
Number of paid firefighters
165
Number of fire emergency responses
3,825
Number of fires extinguished
76
Number of fire inspections
1,928
Number of school crossing guards
24
Public Works:
Tons collected and disposed:
Solid waste
34,222
Metal
393
Papers
3,835
Recyclable containers
1,752
Leaves (cubic yards)
47,672
Number of shade trees:
Planted
130
Removed
217
Trimmed
284
Stumps removed
280
Wastewater
Catch basins cleaned
110
Emergency calls
200
Recreation and Parks 1
Field permits issued
236
Recreation permits issued
2,314
Number of youth programs
298
Number of adult programs
165
Number for senior citizen programs
285
Library
Volumes in collection
329,563
Water
Average daily consumption (gallons)
8,270,000
Number of metered accounts
9,541
Number of fire lines
681
2021
2020
2019
2018
2017
2016
2015
2014
2013
1,751
1,630
1,440
1,622
1,752
1,576
1,494
1,699
1,877
245
4,574
25,252
233,697
165
4,197
91
1,851
23
245
4,227
23,138
244,882
165
4,372
85
1,822
23
245
4,736
26,311
248,030
161
4,163
87
1,530
24
243
4,325
20,913
265,569
158
4,106
140
1,891
24
242
3,545
16,693
235,406
162
3,829
112
1,686
23
229
2,802
14,490
219,953
162
3,346
75
1,432
23
229
2,967
17,891
241,392
159
3,351
70
1,528
20
230
2,813
10,024
205,220
167
3,339
71
1,717
22
219
3,142
9,459
214,963
163
3,441
70
1,704
22
38,466
110
3,578
1,292
38,564
41,731
350
3,402
1,025
46,654
41,094
385
3,381
1,009
56,775
42,271
385
3,358
1,032
36,175
42,911
243
3,557
1,012
34,071
41,387
283
3,744
1,134
30,421
41,085
283
3,861
1,154
29,855
41,399
248
3,855
1,193
29,200
40,954
223
4,012
1,207
28,600
158
293
374
204
175
712
237
253
158
293
374
204
59
272
326
168
141
272
326
189
159
297
354
197
189
376
381
289
162
349
386
170
253
469
516
241
1,300
275
1,250
253
1,200
200
800
250
800
125
915
100
430
100
355
100
825
100
185
2,395
238
216
301
230
2,200
226
173
410
200
2,500
183
259
410
188
2,487
211
193
400
192
4,311
127
108
400
190
4,240
94
64
359
175
4,171
118
61
291
181
4,171
115
67
107
180
4,165
103
61
101
328,364
325,813
340,612
331,338
333,535
347,506
348,164
335,134
555,124
8,540,000
9,546
673
8,525,000
9,528
673
8,440,000
9,527
672
8,530,000
9,492
672
8,630,000
9,455
677
8,626,580
9,440
669
8,804,290
9,418
679
8,975,330
94,040
677
9,055,800
9,373
672
Sources: Various city departments
109
110
Sources: Various city departments
General Government:
Number of general government buildings
Public Safety:
Number of police stations
Number of fire stations
Parking Department:
Number of parking garages
Public Works:
Number of public works buildings
Miles of streets
Number of street lights
Miles of sanitary sewers
Miles of storm water drains
Recreation and Parks
Number of parks and recreation facilities
Acres of parks
Water
Miles of water mains
Number of fire hydrants
2
1
7
6
5
142
5,700
127.1
82.2
23
230.7
158.2
1,770
1
7
7
6
142.2
5,700
127.1
82.4
23
230.7
158.4
1,772
2021
2
2022
Name of Government
6
1
7
2
158.1
1,769
23
230.7
5
142
5,700
127
82
2020
6
1
7
2
158.1
1,767
23
230.7
5
140
7,500
124.8
81.5
2019
6
1
7
2
158.1
1,767
23
230.7
5
140
6,000
124.8
81.5
2018
Fiscal Year
Last Ten Fiscal Years
Capital Asset Statistics by Function
6
1
7
2
157.4
1,762
22
225.7
5
135
6,000
124.8
81.5
2017
6
1
7
2
157.8
1,762
20
225.7
5
135
6,000
124.8
81.5
2016
6
1
7
2
157.8
1,762
19
217.1
5
135
6,000
124.8
81.5
2015
6
1
7
2
157.8
1,762
19
217.1
5
135
6,000
124.8
81.5
2014
6
1
7
2
155.5
1,759
19
217.1
5
135
5,600
124.4
81.5
2013
Governmental Accounting, Auditing, and Financial Reporting • APPENDIX D