Illustrative Comprehensive Annual Financial Report · Appendix Illustrative Comprehensive Annual...

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Illustrative ComprehensiveAnnual Financial Report

RELATIONSHIP OF APPENDICESThe first four appendices illustrate the preparation of a comprehensive annual financial report (CAFR) pre-pared in conformity with the authoritative guidance issued by the Governmental Accounting StandardsBoard (GASB) and the requirements of the Government Finance Officers Association’s Certificate ofAchievement for Excellence in Financial Reporting Program.

• Illustrative journal entries (Appendix A). This appendix illustrates the different types of journal entriesused 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 ofthe current fiscal year, 2) a preclosing trial balance, and 3) a trial balance as of the end of the current fis-cal 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 gov-ernmental funds and internal service funds are converted and consolidated for presentation as gov-ernmental 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 supportedby the journal entries, trial balances, and adjustments worksheet provided in Appendices A, B, and C.

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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

Name of GovernmentComprehensive Annual Financial Report

For the Fiscal Year Ended June 30, 2022

TABLE OF CONTENTS· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Page

INTRODUCTORY SECTIONLetter of Transmittal · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 3GFOA Certificate of Achievement · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 8Organizational Chart · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 9List of Elected and Appointed Officials · · · · · · · · · · · · · · · · · · · · · · · · · · · 10

FINANCIAL SECTIONIndependent Auditor’s Report · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 13Management’s Discussion and Analysis · · · · · · · · · · · · · · · · · · · · · · · · · · 15Basic Financial Statements:

Government-wide Financial Statements:Statement of Net Position· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 30Statement of Activities · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 31

Fund Financial Statements:Balance Sheet - Governmental Funds · · · · · · · · · · · · · · · · · · · · · · · · · 32Reconciliation of the Balance Sheet - Governmental Funds to the

Government-wide Statement of Net Position · · · · · · · · · · · · · · · · · · · 33Statement of Revenues, Expenditures, and Changes in Fund

Balances - Governmental Funds· · · · · · · · · · · · · · · · · · · · · · · · · · · 34Reconciliation of the Statement of Revenues, Expenditures, and Changes in

Fund Balances - Governmental Funds to the Government-wideStatement of Activities · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 35

Statement of Revenues, Expenditures, and Changes inFund Balances - Budget and Actual - General Fund · · · · · · · · · · · · · · · 36

Statement of Net Position - Proprietary Funds · · · · · · · · · · · · · · · · · · · · 37Statement of Revenues, Expenses, and Changes in Net

Position - Proprietary Funds· · · · · · · · · · · · · · · · · · · · · · · · · · · · · 38Statement of Cash Flows - Proprietary Funds · · · · · · · · · · · · · · · · · · · · 39Statement of Fiduciary Net Position – Fiduciary Funds · · · · · · · · · · · · · · · 40Statement of Changes in Fiduciary Net Position - Fiduciary Funds · · · · · · · · 41

Notes to the Financial Statements· · · · · · · · · · · · · · · · · · · · · · · · · · · · · 43Required Supplementary Information:

Schedule of Funding Progress - Public Safety Employees’ Pension Plan · · · · · · 77Schedule of Funding Progress - General Employees’ Other

Postemployment Benefits Plan · · · · · · · · · · · · · · · · · · · · · · · · · · · · 77Combining and Individual Fund Financial Statements and Schedules:

Combining Balance Sheet - Nonmajor Governmental Funds · · · · · · · · · · · · · 79Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances - Nonmajor Governmental Funds · · · · · · · · · · · · · · · · · 80Schedule of Revenues, Expenditures, and Changes in Fund

Balance - Budget and Actual - Library Fund · · · · · · · · · · · · · · · · · · · · · 81Schedule of Revenues, Expenditures, and Changes in Fund

Balance - Budget and Actual - Debt Service Fund · · · · · · · · · · · · · · · · · · 82

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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 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 83

Combining Statement of Net Position – Internal Service Funds · · · · · · · · · · · 85Combining Statement of Revenues, Expenses, and Changes in Net Position –

Internal Service Funds · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 86Combining Statement of Cash Flows – Internal Service Funds · · · · · · · · · · · · 87Statement of Changes in Assets and Liabilities - Agency Fund · · · · · · · · · · · · 89

STATISTICAL SECTIONFinancial Trends:

Net Position by Component · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 91Changes in Net Position · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 92Fund Balances - Governmental Funds · · · · · · · · · · · · · · · · · · · · · · · · · · 94Changes in Fund Balances - Governmental Funds · · · · · · · · · · · · · · · · · · · 95

Revenue Capacity:Assessed Value and Estimated Actual Value of Taxable Property · · · · · · · · · · 97Property Tax Rates – Direct and Overlapping Governments · · · · · · · · · · · · · 98Principal Property Taxpayers · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 99Property Tax Levies and Collections · · · · · · · · · · · · · · · · · · · · · · · · · · 100

Debt Capacity:Ratios of Outstanding Debt by Type · · · · · · · · · · · · · · · · · · · · · · · · · · 101Ratios of General Bonded Debt Outstanding· · · · · · · · · · · · · · · · · · · · · · 102Direct and Overlapping Governmental Activities Debt· · · · · · · · · · · · · · · · 103Legal Debt Margin Information · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 104Pledged-Revenue Coverage · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 105

Demographic and Economic Information:Demographic and Economic Statistics · · · · · · · · · · · · · · · · · · · · · · · · · 106Principal Employers· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 107

Operating Information:Full-Time Equivalent Employees by Function · · · · · · · · · · · · · · · · · · · · · 108Operating Indicators by Function · · · · · · · · · · · · · · · · · · · · · · · · · · · · 109Capital Asset Statistics by Function · · · · · · · · · · · · · · · · · · · · · · · · · · · 110

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INTRODUCTORY SECTION

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LETTERHEAD OF GOVERNMENT

November 15, 2022

To the Honorable Mayor, Members of the Governing Council and Citizens of the NAME OF GOV-ERNMENT:

State law requires that every general purpose local government publish, within six months of theclose of each fiscal year, a complete set of audited financial statements. This report is published tofulfill that requirement for the fiscal year ended June 30, 2022.

Management assumes full responsibility for the completeness and reliability of the informationcontained in this report, based upon a comprehensive framework of internal control that it has es-tablished for this purpose. Because the cost of internal control should not exceed anticipated bene-fits, the objective is to provide reasonable, rather than absolute, assurance that the financialstatements 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’sreport and provides a narrative introduction, overview, and analysis of the basic financial state-ments. 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 currentlyoccupies 10 square miles and serves a population of 57,468. The NAME OF GOVERNMENT isempowered to levy a property tax on real property located within its boundaries. It also is em-powered by state statute to extend its corporate limits by annexation, which it has done from timeto time.

The NAME OF GOVERNMENT has operated under the mayor-council form of government since1916, having been the first in the state to adopt this form of government. Policy-making and legis-lative authority are vested in the governing council (Council) consisting of the mayor and six othermembers, all of whom are elected at large. Council members serve four-year terms, with threemembers elected every two years. The Mayor is elected for a four-year term. The Mayor, withCouncil approval, appoints the NAME OF GOVERNMENT’s manager, who in turn appoints itsdepartment heads.

The NAME OF GOVERNMENT provides a full range of services, including police and fire protec-tion; refuse collection; snow and leaf removal; traffic control; on- and off-street parking; building

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inspections; licenses and permits; vital statistics; the construction and maintenance of highways,streets, and other infrastructure; recreational and cultural activities; library services; low-incomehousing; and transit services. Water distribution services are provided through a legally separateWater Authority, which functions, in essence, as a department of the NAME OF GOVERNMENTand therefore has been included as an integral part of the NAME OF GOVERNMENT’S financialstatements. The NAME OF GOVERNMENT also is financially accountable for a legally separateurban renewal agency and a legally separate cable television operation, both of which are re-ported separately within the NAME OF GOVERNMENT’S financial statements. Additional infor-mation on all three of these legally separate entities can be found in the notes to the financialstatements (see note I.B).

The Council is required to adopt an initial budget for the fiscal year no later than May 31 preced-ing the beginning of the fiscal year on July 1. This annual budget serves as the foundation for theNAME 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 re-sources within a department as they see fit. Transfers between departments, however, need spe-cial approval from the governing council.

Local economy

The NAME OF GOVERNMENT is a suburb in an affluent metropolitan area and functions as amajor commuter hub and suburban regional center. The NAME OF GOVERNMENT is headquar-ters for many corporations, and functions as a major regional shopping center for the metropoli-tan area. Major industries located within the government’s boundaries or in close proximityinclude hospitals, manufacturers of computer hardware and software, retail stores, and several fi-nancial institutions and insurance companies. The school district and NAME OF GOVERNMENTalso have a significant economic presence, employing in total more than 2,300 teachers, profes-sionals, and support staff.

Because of its location in a region with a varied economic base, unemployment had been relativelystable until the effect of the current recession was felt during the current year. During the past tenyears, the unemployment rate rose from an initial low of 3.1 percent (2013) to a decade high of 7.1percent for the current year (2022). Although unemployment rates have risen nationwide over thelast year, the NAME OF GOVERNMENT continues to experience unemployment rates consis-tently lower than national averages. The NAME OF GOVERNMENT’s unemployment rate as ofJune 2022 was 7.1 percent compared to 9.5 percent nationally. The increases in unemploymentrates during the current year reflect the current recession. Additional increases may occur in thenear future. However, based on economic forecasts, a leveling off and subsequent decline in un-employment rates are anticipated in calendar year 2023.

Median household incomes within the NAME OF GOVERNMENT are significantly higher thanfor the state as a whole. According to the year 2021 census, the government’s median family in-come was $71,891, the county’s was $79,881, while the state’s was $51,691. The government’s pop-ulation recently increased from 57,100 to 57,468 as of June 30, 2022, in part because of newresidential developments in the downtown area. Despite the softening of the housing market na-

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tionwide, housing prices in the vicinity of the NAME OF GOVERNMENT continue to remainstrong. At the end of the second quarter of 2022, the median price of a single family home in the vi-cinity of the NAME OF GOVERNMENT was $410,000.

Due to its strong and healthy local economy, the NAME OF GOVERNMENT has maintained acredit rating of Aa1 from Moody’s Investor Service since 2005, which is the highest bond ratinggiven to any government within the state and which is shared by only one other government inthe state.

Over the past ten plus years, the government has experienced a period of significant economicgrowth and investment. More than $3 billion in new mixed-use and residential development hasbeen completed or is in various phases of development throughout the downtown and surround-ing areas, including the NAME OF GOVERNMENT’s first new office building in more thantwenty years. This development, combined with an easy commute to the nearby metropolitancenter afforded by high quality transportation systems, the presence of retail and service indus-tries, and the presence of recreational, educational and health facilities has even further strength-ened the NAME OF GOVERNMENT’s already strong economic base. Thanks to the diversity ofits commercial base, the NAME OF GOVERNMENT expects a full recovery in all sectors of its lo-cal economy as the national economy improves.

During the past ten years, the government’s expenditures related to public safety have increasednot only in amount, but also as a percentage of total expenditures in governmental funds (cur-rently 33.8 percent, reflecting a ten-year increase of 8.3 percent). Much of this increase reflects a re-gional trend that has seen the salaries and benefits of police and firefighters growing at a muchfaster rate than those of other categories of public-sector employees.

During this same ten-year period, charges for services related to governmental funds have in-creased not only in amount, but also as a percentage of total revenues in governmental funds (cur-rently 12.6 percent, reflecting a ten-year increase of 5.2 percent). The increase in charges forservices 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 offund balance) in the general fund at year end was 15.1 percent of total general fund revenues. Thisamount was slightly below the policy guidelines set by the Council for budgetary and planningpurposes (i.e., two months of general fund revenues, approximately 16.7%). The year-end amountis below the minimum target set by the policy guidelines because of a $4,022,452 deficiency of rev-enues under expenditures during the year ended June 30, 2022. The Council recently reviewed theNAME OF GOVERNMENT’S strategic plan, including policy guidelines, and plans to raise thetarget to 25 percent of total general fund revenues to reduce the amount that otherwise wouldneed to be borrowed to finance future construction.

As part of its strategic plan, the Council also envisions the revitalization of its Main Street/HowardAvenue corridor, which will begin with the installation of new streetscapes on Main Street. Fed-

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eral funding in the amount of $1 million has been secured for this project, which will include newsidewalks, lighting fixtures, and benches.

The government has also completed a feasibility study on the development of a trolley systemwithin the downtown area. This system is expected to benefit the government in regard to trafficmitigation, air quality improvement, and economic development in the downtown area. Accord-ingly, the NAME OF GOVERNMENT will proceed with this project, which it has incorporatedinto 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, withnearly 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 proper-ties, 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 providegrants to developers for the construction of affordable housing projects for low- and moderate-in-come housing. Over 200 affordable housing units have been approved under this program.

By charter, the NAME OF GOVERNMENT maintains a six-year Capital Improvement Programwhich serves as its planning document to ensure that its facilities, equipment, and infrastructureare well maintained and operating in peak condition. Under the guidance of a Capital ProjectsBoard, this process gives the NAME OF GOVERNMENT the ability to plan for its capital needsand allocate short- and long-term resources appropriately. As part of this process, the governmentidentifies and quantifies the operational costs associated with its capital projects and budgets re-sources accordingly. In addition, the Vehicles and Equipment Committee monitors the conditionof all government equipment and vehicles and makes recommendations on their replacement.The NAME OF GOVERNMENT maintains a vehicle replacement policy which serves as its fleetreplacement guide over a ten-year period. The fiscal year 2022-2023 Capital Improvement Pro-gram anticipates $8.3 million in capital projects and $1.2 million in rolling stock replacement. In-cluded in this $8.3 million is $.86 million for various parking facility improvements, $.65 million inmunicipal building improvements and $6.45 million for infrastructure and water system im-provements. The remainder of the program will finance improvements to the government’sparks, traffic systems and technology. Because of fiscal constraints, the government’s 2022-23 ma-chinery, equipment and vehicles program will fund moderate and heavy duty vehicles only. Thegovernment did not fund additions or replacements of passenger vehicles (including police vehi-cles). 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 thecurrent year, two of these policies were particularly relevant. The NAME OF GOVERNMENT has apolicy that requires the adoption of a balanced annual operating budget (i.e., estimated revenues

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equal to or in excess of appropriations). As a result of the economic downturn, however, estimatedrevenues were less than appropriations ($126,015,303 v. $131,056,197). In such cases, the policy al-lows for the appropriation of fund balance to close the gap. The amount necessary for this purposein 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 GOV-ERNMENT 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”) re-source inflows not be used for operating purposes. During the current year, the state informed thegovernment that it would provide compensation for the cost of retroactive compliance with theLocal Wetlands Protection Act of 2015. The Council, in accordance with its policy, plans to use theamount 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) awardeda Certificate of Achievement for Excellence in Financial Reporting to the Name of Government forits comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2021. This wasthe twenty-eighth consecutive year that the government has achieved this prestigious award. Inorder to be awarded a Certificate of Achievement, the government had to publish an easily read-able and efficiently organized CAFR that satisfied both generally accepted accounting principlesand applicable program requirements.

A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one yearonly. However, we believe that our current CAFR continues to meet the Certificate of Achieve-ment for Excellence in Financial Reporting Program’s requirements, and we are submitting it tothe GFOA to determine its eligibility for another certificate.

The government also received the GFOA’s Distinguished Budget Presentation Award for its an-nual budget document dated May 28, 2021. To qualify for the Distinguished Budget PresentationAward, the government’s budget document had to be judged proficient as a policy document, a fi-nancial plan, an operations guide, and a communications device.

The preparation of this report would not have been possible without the skill, effort, and dedica-tion of the entire staff of the Finance and Administration Department. We wish to thank all gov-ernment 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 thehighest standards of professionalism in the management of the NAME OF GOVERNMENT’S fi-nances.

Respectfully submitted,

Lorraine M. Desmarais, Manager Betty Louise Confer, Finance Director

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Name of GovernmentList of Elected and Appointed Officials

June 30, 2022

Elected Officials

Mayor Barbara J. McCownCouncil Member - Ward I Marc ChristianCouncil Member - Ward II Paul ÉdouardCouncil Member - Ward III Gregory JosephCouncil Member - Ward IV Sawyer D. ChristopherCouncil Member - Ward V Marie DesmaraisCouncil Member - Ward VI Monika Toma

Appointed Officials

Manager Lorraine M. DesmaraisAssistant Manager Josephine PaquetteAttorney James M. FalconerClerk James A. PhillipsCulture and Recreation Director Robert KotchenLibrary Director Qun WangFinance Director Betty Louise ConferAssistant Finance Director Robert AndrewFire Chief Robbin D. HenryFleet Management Director Kathie SchultzInternal Audit Director Zhikuan HuManagement Information Systems Director Delores SmithPersonnel Director Julius G. Howard IIIPolice Chief Stephen J. GatesSanitation Director Aleksandra BakStreets and Highways Director Carole ColinTransit Manager Sarah MarrsPublic Safety Employees Retirement System President Quijian JiangWater Authority Chair John Fishbein

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FINANCIAL SECTION

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OFFICIAL LETTERHEAD OF THE INDEPENDENT AUDITOR

INDEPENDENT AUDITORS’ REPORT

We have audited the accompanying financial statements of the governmental activities, the busi-ness-type activities, the aggregate discretely presented component units, each major fund, and theaggregate remaining fund information of the NAME OF GOVERNMENT as of and for the yearended June 30, 2022, which collectively comprise the NAME OF GOVERNMENT’S basic financialstatements as listed in the table of contents. We have also audited the financial statements of eachof the NAME OF GOVERNMENT’s nonmajor governmental, internal service, and fiduciaryfunds presented as supplementary information in the accompanying combining and individualfund financial statements and schedules as of and for the year ended June 30, 2022, as listed in thetable of contents. These financial statements are the responsibility of the NAME OF GOVERN-MENT‘s management. Our responsibility is to express opinions on these basic financial state-ments based on our audit. We did not audit the financial statements of the Urban Renewal Agencyand Cable Television discretely presented component units, which represent 100 percent of theassets, net position, and revenues of the aggregate discretely presented component units. Those fi-nancial statements were audited by other auditors whose reports thereon have been furnished tous, and our opinion, insofar as it relates to the amounts included for the Urban Renewal Agencyand Cable Television discretely presented component units, is based on the report of the other au-ditors.

We conducted our audit in accordance with auditing standards generally accepted in the UnitedStates of America and the standards applicable to financial audits contained in Government Audit-ing Standards, issued by the Comptroller General of the United States. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis, evi-dence supporting the amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made by management, as wellas evaluating the overall financial statement presentation. We believe that our audit and the re-ports 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 re-ferred to above present fairly, in all material respects, the respective financial position of the gov-ernmental activities, the business-type activities, the aggregate discretely presented componentunits, each major fund and the aggregate remaining fund information of the NAME OF GOV-ERNMENT as of June 30, 2022, and the respective changes in financial position and, where appli-cable, cash flows thereof, and the respective budgetary comparison for the general fund for theyear then ended in conformity with accounting principles generally accepted in the United Statesof America. In addition, in our opinion, the financial statements referred to above present fairly, inall material respects, the respective financial position of each nonmajor governmental fund, inter-nal service fund, and fiduciary fund of the NAME OF GOVERNMENT, as of June 30, 2022, and therespective changes in financial position and, where applicable, cash flows thereof, and the budget-ary comparisons for the library special revenue, debt service, and capital projects funds for theyear then ended in conformity with accounting principles generally accepted in the United Statesof America.

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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 re-porting and our tests of its compliance with certain provisions of laws, regulations, contracts andgrant agreements and other matters. The purpose of that report is to describe the scope of our test-ing of internal control over financial reporting and compliance and the results of that testing, andnot to provide an opinion on the internal control over financial reporting or on compliance. Thatreport is an integral part of an audit performed in accordance with Government Auditing Standardsand should be considered in assessing the results of our audit.

Accounting principles generally accepted in the United States of America require that the man-agement’s discussion and analysis and required supplementary information, as listed in the tableof contents, be presented to supplement the basic financial statements. Such information, al-though not a part of the basic financial statements, is required by the Governmental AccountingStandards Board, who considers it to be an essential part of financial reporting for placing the ba-sic financial statements in an appropriate operational, economic, or historical context. We haveapplied certain limited procedures to the required supplementary information in accordance withauditing standards generally accepted in the United States of America, which consisted of inqui-ries of management about the methods of preparing the information and comparing the informa-tion 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 notexpress an opinion or provide any assurance on the information because the limited proceduresdo 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 col-lectively comprise the NAME OF GOVERNMENT’S basic financial statements. The introductorysection and statistical tables are presented for purposes of additional analysis and are not a re-quired part of the basic financial statements. Such information has not been subjected to the audit-ing procedures applied in the audit of the basic financial statements, and accordingly, we do notexpress an opinion or provide any assurance on it.

West, Lee, Roberts & CompanyCertified Public Accountants

October 31, 2022

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Management’s Discussion and Analysis

As management of the NAME OF GOVERNMENT, we offer readers of the NAME OF GOVERN-MENT’S financial statements this narrative overview and analysis of the financial activities of theNAME OF GOVERNMENT for the fiscal year ended June 30, 2022. We encourage readers to con-sider the information presented here in conjunction with additional information that we have fur-nished 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 itsliabilities 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’songoing obligations to citizens and creditors.

• The NAME OF GOVERNMENT’S total net position decreased $16,822,869 because of a require-ment to make contributions to an other postemployment benefits (OPEB) plan established dur-ing the current period.

• At the close of the current fiscal year, the NAME OF GOVERNMENT’S governmental funds re-ported combined fund balances of $26,319,196, a decrease of $15,418,066 in comparison with theprior year. Approximately 42% of this amount ($11,175,698) is available for spending at the gov-ernment’s discretion (unassigned fund balance).

• At the end of the current fiscal year, unrestricted fund balance (the total of the committed, as-signed, and unassigned components of fund balance) for the general fund was $18,657,783, or ap-proximately 14.6% of total general fund expenditures.

• The NAME OF GOVERNMENT’S total outstanding long-term debt decreased by $1,360,166during the current fiscal year because short-term financing was used to provide resources forcertain 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 NAMEOF GOVERNMENT’S basic financial statements. The NAME OF GOVERNMENT’S basic finan-cial statements consist of three components: 1) government-wide financial statements, 2) fund fi-nancial statements, and 3) the notes to financial statements. This report also includessupplementary information intended to furnish additional detail to support the basic financialstatements themselves.

Government-wide Financial Statements. The government-wide financial statements are designed toprovide readers with a broad overview of the NAME OF GOVERNMENT’S finances, in a mannersimilar to a private-sector business.

The statement of net position presents financial information on all of the NAME OF GOVERN-MENT’S assets, liabilities, and deferred inflows/outflows of resources, with the difference re-ported as net position. Over time, increases or decreases in net position may serve as a useful indi-cator of whether the financial position of the NAME OF GOVERNMENT is improving ordeteriorating.

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The statement of activities presents information showing how the NAME OF GOVERNMENT’S netposition changed during the most recent fiscal year. All changes in net position are reported assoon as the underlying event giving rise to the change occurs, regardless of the timing of related cashflows. Thus, revenues and expenses are reported for some items that will only result in cash flowsin 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 GOV-ERNMENT that are principally supported by taxes and intergovernmental revenues (governmen-tal activities) from other functions that are intended to recover all or a significant portion of theircosts through user fees and charges (business-type activities). The governmental activities of theNAME OF GOVERNMENT include general government, public safety, highways and streets,sanitation, and culture and recreation. The business-type activities of the NAME OF GOVERN-MENT 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 legallyseparate cable television operation for which the NAME OF GOVERNMENT is financially ac-countable. Financial information for these component units is reported separately from the finan-cial information presented for the primary government itself. The Water Authority, although alsolegally separate, functions for all practical purposes as a department of the NAME OF GOVERN-MENT, 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 con-trol over resources that have been segregated for specific activities or objectives. The NAME OFGOVERNMENT, like other state and local governments, uses fund accounting to ensure anddemonstrate compliance with finance-related legal requirements. All of the funds of the NAMEOF 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 re-ported as governmental activities in the government-wide financial statements. However, unlikethe government-wide financial statements, governmental fund financial statements focus onnear-term inflows and outflows of spendable resources, as well as on balances of spendable resources avail-able at the end of the fiscal year. Such information may be useful in assessing a government’snear-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financialstatements, it is useful to compare the information presented for governmental funds with similarinformation presented for governmental activities in the government-wide financial statements. Bydoing so, readers may better understand the long-term impact of the government’s near-term fi-nancing decisions. Both the governmental fund balance sheet and the governmental fund state-ment of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitatethis comparison between governmental funds and governmental activities.

The NAME OF GOVERNMENT maintains ten individual governmental funds. Information ispresented separately in the governmental fund balance sheet and in the governmental fund state-ment of revenues, expenditures, and changes in fund balances for the general fund, the capital

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projects fund, and the debt service fund, which are considered to be major funds. Data from theother seven governmental funds are combined into a single aggregated presentation. Individualfund data for each of these nonmajor governmental funds is provided in the form of combiningstatements 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. Abudgetary comparison statement has been provided for the general fund to demonstrate compli-ance 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 proprietaryfunds. Enterprise funds are used to report the same functions presented as business-type activities inthe government-wide financial statements. The NAME OF GOVERNMENT uses enterprisesfunds to account for its Water Authority and for its transit operation. Internal service funds are anaccounting device used to accumulate and allocate costs internally among the NAME OF GOV-ERNMENT’S various functions. The NAME OF GOVERNMENT uses internal service funds to ac-count for the management of its retained risks and for its fleet of vehicles. Because both of theseservices predominantly benefit governmental rather than business-type functions, they have beenincluded within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial state-ments, only in more detail. The proprietary fund financial statements provide separate informa-tion for the Water Authority and for the transit operation, both of which are considered to bemajor funds of the NAME OF GOVERNMENT. Conversely, both internal service funds are com-bined into a single, aggregated presentation in the proprietary fund financial statements. Individ-ual fund data for the internal service funds are provided in the form of combining statements inthe 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 partiesoutside of the government. Fiduciary funds are not reported in the government-wide financialstatements because the resources of those funds are not available to support the NAME OF GOV-ERNMENT’S own programs. The accounting used for fiduciary funds is much like that used forproprietary funds.

The NAME OF GOVERNMENT maintains three different types of fiduciary funds. The Pensiontrust fund is used to report resources held in trust for retirees and beneficiaries covered by the Pub-lic Safety Employees’ Pension Plan. The Private-purpose trust fund is used to report resources held intrust for prisoners to use to make purchases at the prison canteen. The Agency fund reports re-sources held by the NAME OF GOVERNMENT in a custodial capacity for individuals, private or-ganizations 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 toacquire a full understanding of the data provided in the government-wide and fund financialstatements. The notes to the financial statements can be found on pages 43-76 of this report.

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Other Information. In addition to the basic financial statements and accompanying notes, this re-port also presents required supplementary information concerning the NAME OF GOVERNMENT’Sprogress 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 fundsand internal service funds are presented immediately following the required supplementary in-formation on pensions and OPEB. Combining and individual fund statements and schedules canbe 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 finan-cial position. In the case of the NAME OF GOVERNMENT, assets and deferred outflows of re-sources exceeded liabilities by $257,381,778, at the close of the most recent fiscal year.

NAME OF GOVERNMENT’S Net Position

By far, the largest portion of the NAME OF GOVERNMENT’S net position (91.3%) reflects its in-vestment in capital assets (e.g., land, buildings, machinery, equipment, vehicles, and infrastruc-ture), less any related outstanding debt that was used to acquire those assets. The NAME OFGOVERNMENT uses these capital assets to provide a variety of services to its citizens. Accord-ingly, these assets are not available for future spending. Although the NAME OF GOVERN-MENT’S investment in capital assets is reported net of related debt, it should be noted that the re-sources used to repay this debt must be provided from other sources, since the capital assets them-selves cannot be used to liquidate these liabilities.

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Current and other assets

Governmental activities Business-type activities Total

2022 2021 2022 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

Total deferred outflows ofresources

726,762 611,528 1,353 726,762 612,881

Long-term liabilitiesoustanding

102,557,945 92,165,863 10,361,034 11,138,206 112,918,979 103,304,069

Other liabilities 20,175,107 37,243,344 5,681,748 4,657,192 25,856,855 41,900,536

Total liabilities 122,733,052 129,409,207 16,042,782 15,795,398 138,775,834 145,204,605

Net position:

Net investment in capitalassets

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

Total net position $222,063,205 $240,420,498 $35,318,573 $33,784,149 $257,381,778 $274,204,647

An additional portion of the NAME OF GOVERNMENT’S net position (2.6%) represents re-sources that are subject to external restrictions on how they may be used. The remaining balanceof $15,861,380 is unrestricted and may be used to meet the government’s ongoing obligations to itscitizens and creditors.

At the end of the current fiscal year, the NAME OF GOVERNMENT is able to report positive bal-ances in all reported categories of net position, both for the government as a whole, as well as forits separate governmental and business-type activities. The same situation held true for the priorfiscal year.

However, the NAME OF GOVERNMENT’S overall net position decreased $16,822,869 from theprior fiscal year. The reasons for this overall decrease are discussed in the following sections forgovernmental activities and business-type activities.

Governmental Activities. During the current fiscal year, net position for governmental activitiesdecreased $18,357,293 from the prior fiscal year for an ending balance of $222,063,205. While thecurrent recession certainly had an impact on the NAME OF GOVERNMENT, management wasable to take various actions (e.g., increasing rates for certain revenue sources, delaying certainnonrecurring expenses, reducing expenses related to non-essential ongoing programs in the cul-ture and recreation function) that neutralized its effect on governmental activities. The decrease inthe overall net position of governmental activities is the result of a recently negotiated OPEB planthat will provide health care benefits to current and future retirees and their spouses and depend-ents during the life of the retiree. This plan became effective during the current year and the initialannual required contribution (ARC) for the plan, which normally is the measure of expense for theperiod, was $18,721,000. See pages 62-63 of the notes to the financial statements for more detailsabout this OPEB plan.

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20


Revenues:

Governmental Activities Business-type Activities Total

2022 2021 2022 2021 2022 2021

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 andcontributions

14,019,870 12,827,195 401,441 270,202 14,421,311 13,097,397

Capital grants andcontributions

7,802,833 5,876,009 1,174,511 1,251,689 8,977,344 7,127,698

General revenues:

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 notrestricted to specificprograms

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

Total revenues 156,192,550 152,932,092 12,228,597 11,366,830 168,421,147 164,298,922

Expenses:

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

Interest on long-term debt 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 netposition before transfers

(14,629,084) (4,117,565) (2,193,785) (2,751,741) (16,822,869) (6,869,306)

Transfers (3,728,209) (3,604,638) 3,728,209 3,604,638 - -

Increase (decrease) in netposition

(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

Net position – ending $222,063,205 $240,420,498 $35,318,573 33,784,149 $257,381,778 $274,204,647

NAME OF GOVERNMENT’S Changes in Net Position

Business-type Activities. For the NAME OF GOVERNMENT’S business-type activities, the re-sults for the current fiscal year were positive in that overall net position increased to reach an end-ing balance of $35,318,573. The total increase in net position for business-type activities (water andtransit funds) was $1,534,424 or 4.5% from the prior fiscal year. The growth, in large part, is attrib-utable to a 5% water rate increase enacted for the fiscal year 2021-22 budget. As a result, revenuesfrom water activity charges for services increased $922,179, over the previous year’s amount. Anadditional cause for the overall increase was the receipt of an unexpected capital grant of $250,000restricted 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 demonstratecompliance with finance-related legal requirements.

Governmental Funds. The focus of the NAME OF GOVERNMENT’S governmental funds is to pro-vide information on near-term inflows, outflows, and balances of spendable resources. Such infor-mation is useful in assessing the NAME OF GOVERNMENT’S financing requirements. Inparticular, unassigned fund balance may serve as a useful measure of a government’s net re-sources available for discretionary use as they represent the portion of fund balance which has notyet been limited to use for a particular purpose by either an external party, the NAME OF GOV-ERNMENT itself, or a group or individual that has been delegated authority to assign resourcesfor use for particular purposes by the NAME OF GOVERNMENT’S Council.

At June 30, 2022, the NAME OF GOVERNMENT’S governmental funds reported combined fundbalances of $26,319,196, a decrease of $15,418,066 in comparison with the prior year. Approxi-mately 42.5% of this amount ($11,175,698) constitutes unassigned fund balance, which is availablefor spending at the government’s discretion. The remainder of the fund balance is eithernonspendable, 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 pur-poses ($9,199,459), 4) committed for particular purposes ($1,980,153), or 5) assigned for particularpurposes ($2,808,387).

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The general fund is the chief operating fund of the NAME OF GOVERNMENT. At the end of thecurrent fiscal year, unassigned fund balance of the general fund was $15,442,019, while total fundbalance decreased to $19,802,668. As a measure of the general fund’s liquidity, it may be useful tocompare 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 expendi-tures, 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 dur-ing the current fiscal year. As discussed earlier in connection with governmental activities, the de-crease was due to a requirement for the NAME OF GOVERNMENT to contribute to a newly

22


established OPEB plan. The actual total contributions made during the year from the general fundwere $7,853,000.

The capital projects fund, a major fund, had a $8,258,317 decrease in fund balance during the cur-rent 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 be-cause of amounts restricted ($875,000) and committed ($1,200,000) for a special assessment projectthat began during the current fiscal year.

The large decrease in fund balance was caused mainly by the spending of resources obtainedthrough the issuance of long-term debt in the prior period on capital acquisition and constructionin the current period. That is, the fund balance that resulted from the previous long-term debt is-suance 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-termdebt. In the case of the capital projects fund, bond anticipation notes (BANS) were issued to fi-nance expenditures of certain capital projects. When issued, short-term BANS are reported as a li-ability 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 issu-ance 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 thecapital projects fund at year end, while only $2,638,879 of the proceeds remained unspent. The dif-ference between these two amounts ($4,266,321) is the amount reported as the deficit in unas-signed fund balance in the capital projects fund at the end of the year. It is our intent to issuelong-term bonds to replaces the BANS. The issuance of the bonds will eliminate both the unas-signed 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 balanceduring the current year of $1,297,555 to bring the year end fund balance to $2,415,560. The increaseessentially results from a special assessment project that began during the current year. First, adebt service reserve of $846,000 was established in the debt service fund through a transfer fromthe 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 balancefrom these three amounts is $1,504,000. The overall increase for the year did not reach this amountbecause a portion of the fund balance at the beginning of the year was used for debt service pay-ments during the year.

Proprietary Funds. The NAME OF GOVERNMENT’S proprietary funds provide the same type ofinformation 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 thetransit 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 increasefor the Water Authority results from a 5 percent water rate increase in the current year and an un-expected capital grant of $250,000 resulted in the growth reported by the transit operation.

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General Fund Budgetary Highlights

Original budget compared to final budget. During the year there was no need for any significantamendments to increase either the original estimated revenues or original budgeted appropria-tions. However, there was a need to make an amendment to reallocate appropriations among de-partments when it became clearer which departments would actually be charged for certainemployee benefits such as pensions and other postemployment benefits. Generally, the move-ment of the appropriations between departments was not significant. The exception was the ap-propriation for the Council department in the general government function which was increasedby $2,033,040.

Final budget compared to actual results. The most significant differences between estimated reve-nues and actual revenues were as follows:

The shortfalls in the above revenue sources were caused by the recession experienced during thecurrent year. Licenses and permits were less than estimated because there were less of these itemspurchased, particularly in the case of business licenses and building permits. Intergovernmentalis the classification used to report grant revenues. The recession impacted the state and most othergeneral and special-purpose governments. Accordingly, the grants that these other governmentswere 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 $500,000less.

Over the last decade the NAME OF GOVERNMENT has worked to identify and implement morecharges for various programs and activities. This has included certain housing programs, but hasbeen especially true in the case of various cultural activities (e.g., performing arts) and recre-ational activities (e.g., use of recreational facilities such as swimming pools, indoor basketballcourts, charges for night time lighting of outdoor facilities). The goal of this effort was to increasethe percentage of total revenues that are provided by this classification. As discussed in the letterof transmittal this effort has been moderately successful in increasing the proportion of total reve-nues of governmental funds that results from these charges.

Ironically, the increase in investment earnings is also attributable to the current recession. As notedearlier in the discussion about governmental activities, actions were taken during the year to helpmitigate the negative impact of the economic downturn. The result of these actions (e.g., delayingthe payment of nonrecurring expenditures/expenses) was a significantly larger than anticipatedbalance available for investment. Moreover, in some cases it was possible to invest these amountsfor 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 sig-nificant variances with one exception. Actual expenditures for the prospective inspection depart-ment 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


Estimated ActualRevenue source revenues revenues DifferenceLicenses and permits $ 4,166,256 $ 2,649,889 $(1,516,367)Intergovernmental 11,414,391 9,705,931 (1,708,460 )Charges for services 17,738,732 19,091,893 1,353,161Investment earnings 1,258,200 3,349,530 2,091,330

rized by law in cases involving imminent public endangerment (e.g., the need to inspect proper-ties with damage from collision, natural disaster, fire, or water to determine their inherentstability), such overspending is still considered a budgetary violation. Furthermore, the over-spending affects the subsequent year’s budget. That is, the amount of the overspending caused bysituations involving imminent public endangerment automatically decreases the portion of theprotective inspective appropriation for the subsequent year that relates to routinely scheduled in-spections.

This year’s overspending was, in fact, caused by imminent public endangerment cases. Accord-ingly, 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 state-ments. The necessary adjustment was made to the appropriation that was legally adopted for thesubsequent year’s budget.

Capital Assets and Debt Administration

Capital assets. The NAME OF GOVERNMENT’S investment in capital assets for its governmen-tal and business-type activities as of June 30, 2022, amounts to $327,372,462 (net of accumulateddepreciation). This investment in capital assets includes land, buildings, machinery, equipment,vehicles, park facilities, roads, highways, bridges, and the water treatment plant. The total in-crease in capital assets for the current fiscal year was approximately 1.2%.

NAME OF GOVERNMENT’S Capital Assets

(net of depreciation)

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 ser-

vice 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).

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Land


2022 2021 2022 2021 2022 2021

$ 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

Total $287,386,484 $283,764,694 $39,986,158 $39,818,579 $327,372,642 $323,583,273

• Completion of an expanded maintenance facility for the transit operation during the currentyear 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 NoteIV.D on pages 57-59 of this report.

Long-term Debt. At the end of the current fiscal year, the NAME OF GOVERNMENT had totalbonded debt outstanding of $88,256,015. Of this amount, $83,556,015 is debt backed by the fullfaith and credit of the government and $4,700,000 is special assessment debt for which the govern-ment is liable in the event of default by the property owners subject to the assessment. The remain-der of the NAME OF GOVERNMENT’S long-term obligations comprises pension-related debtand capital leases.

NAME OF GOVERNMENT’S Outstanding Debt(net of depreciation)

The NAME OF GOVERNMENT’S total debt decreased by $1,360,166, (1.4 percent) during the cur-rent fiscal year. The reason for the decrease was that the only new debt issuance during the yearwas for an amount that was less than the regularly scheduled principal reductions on the existingoutstanding debt. The new issuance was special assessment debt with governmental commitmentwith a face value of $4,700,000.

In addition to the one new debt issuance, the NAME OF GOVERNMENT issued general obliga-tion bonds to refinance previously outstanding general obligation bonds reported in governmen-tal activities. This refinancing was done to take advantage of favorable interest rates. The result isexpected 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 Stan-dard & Poor’s and Fitch Ratings and a “Aa” rating from Moody’s Investors Service for general ob-ligation debt.

State statutes limit the amount of general obligation debt a governmental entity may issue to 7percent of the average full valuation. The current debt limitation for the NAME OF GOVERN-MENT is $654,486,768, which is significantly in excess of the NAME OF GOVERNMENT’S out-standing general obligation debt.

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General obligation bonds


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 bondswith governmentalcommitment

4,691,000 - - - 4,691,000 323,583,273

Pension related debt 4,739,557 5,437,453 - - 4,739,557 5,437,453

Capital leases 146,042 - - - 146,042 -

Total $83,099,477 $83,431,960 $10,042,137 $11,069,820 $ 93,141,614 $94,501,780

Additional information on the NAME OF GOVERNMENT’S long-term debt can be found in NoteIV.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 consid-ered 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. Whilethe unemployment rate is likely to decrease, it is not expected to reach the pre-recession level forseveral years

• An 8 percent increase in water rates beginning July 1, 2022 anticipating current and future ex-penditure 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 inspec-

tion fee on commercial and multi-family dwellings, a taxi medallion fee, and a room occupancytax on hotel rooms and similar lodgings.

• Declines in the taxable assessed value as a percentage of estimated actual value and resultingdecreases in property assessments will continue to affect the NAME OF GOVERNMENT’S realproperty tax base.

• Declines in housing prices and sales are expected to continue throughout the fiscal year, furtherstraining 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 pen-

sion 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, requir-

ing 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 the2022-2023 fiscal year budget. This action was taken as an additional measure to mitigate the im-pact 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 GOVERN-MENT’S finances for all those with an interest in the government’s finances. Questions concerningany of the information provided in this report or requests for additional financial informationshould be addressed to the Office of the Finance Director, 7529 West Kilwood Street, NAME OFGOVERNMENT, STATE, ZIP CODE.

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28


Basic Financial Statements

29


30


June 30, 2022

Primary Government Component UnitsGovernmental Business-type Urban Renewal Cable

Activities Activities Total Agency TelevisionASSETS Cash and cash equivalents $ 18,745,183 $ 3,699,844 $ 22,445,027 $ 195,647 $ 462,992 Investments 22,119,677 2,136,642 24,256,319 - - Restricted assets-customer deposits - 30,715 30,715 - - Receivables (net of allowance for uncollectibles) 13,015,337 4,203,602 17,218,939 3,000 273,328 Intergovernmental receivable 1,709,483 877,295 2,586,778 - - Due from component unit 32,615 - 32,615 - - Internal balances (309,518) 309,518 - - - Inventories 829,294 117,581 946,875 - - Prepaids 86,551 - 86,551 - 2,266 Net pension asset 454,389 - 454,389 - - Capital assets not being depreciated: Land 50,067,172 1,911,400 51,978,572 6,601,630 - Construction in progress 9,870,118 5,371,664 15,241,782 - - Capital assets, net of accumulated depreciation: Buildings 132,720,452 7,534,014 140,254,466 - - Machinery, equipment, and vehicles 13,114,538 3,767,352 16,881,890 - 206,426 Infrastructure 81,614,204 - 81,614,204 - - Water distribution system - 21,401,728 21,401,728 - - Total Assets 344,069,495 51,361,355 395,430,850 6,800,277 945,012

DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding 726,762 - 726,762 - - Total deferred outflows of resources 726,762 - 726,762 - -

LIABILITIES Accounts payable and other accrued liabilities 5,912,641 1,601,417 7,514,058 5,801 24,620 Contracts and retainage payable 2,199,240 24,937 2,224,177 - - Accrued interest payable 716,657 143,219 859,876 - - Deposits payable 18,367 30,715 49,082 16,218 11,260 Intergovernmental payable - 28,547 28,547 - - Due to primary government - - 32,615 - Bond anticipation notes payable 6,905,200 1,625,000 8,530,200 - - Revenue anticipation note payable - - - 4,000,000 - Due to retirement systems 2,105,481 35,364 2,140,845 - 6,640 Unearned revenues 2,317,521 2,192,549 4,510,070 - 150,000 Noncurrent liabilities: Due within one year 10,403,155 944,957 11,348,112 - 1,050 Due in more than one year 92,154,790 9,416,077 101,570,867 - 43,216 Total Liabilities 122,733,052 16,042,782 138,775,834 4,054,634 236,786

NET POSITION Net investment in capital assets 205,692,289 29,056,307 234,748,596 6,601,630 206,426 Restricted for: Capital projects 338,917 - 338,917 - - Debt service 852,903 - 852,903 - - Housing services 625,881 - 625,881 - - Law enforcement 376,200 - 376,200 - - Community redevelopment: Expendable 4,514,328 - 4,514,328 - - Nonexpendable 10,000 - 10,000 - - Other purposes 53,573 - 53,573 - - Unrestricted 9,599,114 6,262,266 15,861,380 (3,855,987) 501,800 Total Net Position $ 222,063,205 $ 35,318,573 $ 257,381,778 $ 2,745,643 $ 708,226

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

Name of GovernmentStatement of Net Position

June 30, 2022

31


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32


Name of GovernmentBalance Sheet

Governmental FundsJune 30, 2022

Total TotalNonmajor Governmental

General Capital Projects Debt Service Funds FundsASSETS Cash and cash equivalents $ 6,127,206 $ 1,090,139 $ 1,362,371 $ 4,281,747 $ 12,861,463 Investments 14,989,065 4,980,521 1,000,000 538,805 21,508,391 Receivables (net of allowance for uncollectibles) 6,067,247 - 4,309,618 2,502,201 12,879,066 Intergovernmental receivable 513,579 507,459 - 688,445 1,709,483 Due from other funds 145,000 335,000 - - 480,000 Due from component unit 32,615 - - - 32,615 Inventories 806,623 - - - 806,623 Prepaid items 48,114 - - 614 48,728 Advances to other funds 290,148 - - - 290,148 Total assets $ 29,019,597 $ 6,913,119 $ 6,671,989 $ 8,011,812 $ 50,616,517

LIABILITIES Accounts payable 1,646,243 - - 516,358 2,162,601 Contracts payable - 1,129,196 - - 1,129,196 Retainage payable - 1,070,044 - - 1,070,044 Accrued liabilities 2,504,060 - - 431,957 2,936,017 Deposits payable - - - 18,367 18,367 Due to retirement systems 2,024,105 - - 78,108 2,102,213 Due to other funds 335,000 - - 157,000 492,000 Advances from other funds - - - 290,148 290,148 Bond anticipation notes payable - 6,905,200 - - 6,905,200 Unearned revenue-other 2,089,936 - - 227,585 2,317,521 Total liabilities 8,599,344 9,104,440 - 1,719,523 19,423,307

DEFERRED INFLOWS OF RESOURCES Unavailable revenue-property taxes 617,585 - 26,429 - 644,014 Unavailable revenue-special assessments - - 4,230,000 - 4,230,000 Total deferred inflows of resources 617,585 - 4,256,429 - 4,874,014

FUND BALANCES (DEFICITS) Nonspendable: Endowment $ - $ - $ - $ 10,000 $ 10,000 Inventory 806,623 - - - 806,623 Prepaid items 48,114 - - 614 48,728 Long-term interfund advances 290,148 - - - 290,148 Restricted: - Special assessment project - 875,000 - - 875,000 Library purposes - - - 52,276 52,276 Housing services - - - 625,881 625,881 Community redevelopment - - - 4,514,328 4,514,328 Law enforcement - - - 376,200 376,200 Youth programs - - - 1,297 1,297 Nonrecurring repairs and other parking improvements - - - 338,917 338,917 General obligation debt - - 911,560 - 911,560 Special assessment debt - - 1,504,000 - 1,504,000 Committed: Special asesssment project - 1,200,000 - - 1,200,000 Revenue stabilization 407,377 - - - 407,377 Open space - - - 372,776 372,776 Assigned: Purchases on order 592,659 - - - 592,659 Subsequent year's budget: appropriation of fund balance 2,215,728 - - - 2,215,728 Unassigned 15,442,019 (4,266,321) - - 11,175,698 Total fund balances (deficits) 19,802,668 (2,191,321) 2,415,560 6,292,289 26,319,196Total liabilities, deferred inflows of resources, and fund balances (deficits) $ 29,019,597 $ 6,913,119 $ 6,671,989 $ 8,011,812 $ 50,616,517


Name of GovernmentBalance Sheet

Governmental FundsJune 30, 2022

33


Name of GovernmentReconciliation of the Balance Sheet of Governmental Funds

To the Statement of Net PositionJune 30, 2022

Total fund balances - governmental funds (page 32) $ 26,319,196

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 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 $ 222,063,205


Amounts reported for governmental activities in the statement of net position (page 30) are different because:

34


Name of GovernmentStatement of Revenues, Expenditures and Changes in Fund Balances

Governmental FundsFor the Year Ended June 30, 2022

Total TotalNonmajor Governmental

General Capital Projects Debt Service Funds FundsREVENUES Property taxes $ 31,331,083 $ - $ 7,935,396 $ 5,539,162 $ 44,805,641 Sales taxes 44,368,865 - - - 44,368,865 Franchise taxes 1,537,833 - - - 1,537,833 Licenses and permits 2,649,889 - - - 2,649,889 Intergovernmental 9,705,931 874,480 - 7,185,616 17,766,027 Charges for services 19,091,893 - - - 19,091,893 Fines and forfeitures 6,670,562 - - - 6,670,562 Investment earnings 3,349,530 201,620 241,967 38,681 3,831,798 Fees - - - 4,976,526 4,976,526 Special assessments - - 470,000 - 470,000 Miscellaneous 4,644,708 - - 329,712 4,974,420 Total revenues 123,350,294 1,076,100 8,647,363 18,069,697 151,143,454

EXPENDITURES Current: General government 29,778,662 - - - 29,778,662 Public Safety 56,335,850 - - 390,828 56,726,678 Highways and streets 23,233,034 - - 4,238,979 27,472,013 Sanitation 8,140,187 - - - 8,140,187 Culture and recreation 9,735,013 - - 13,295,900 23,030,913 Debt service: Principal - - 4,718,317 - 4,718,317 Interest - - 3,236,206 - 3,236,206 Bond issuance costs 150,000 - 122,710 - 272,710 Capital outlay General government - 462,180 - - 462,180 Public Safety - 1,465,901 - - 1,465,901 Highways and streets - 9,574,399 - - 9,574,399 Sanitation - 1,696,099 - - 1,696,099 Culture and recreation - 1,443,330 - - 1,443,330 Total expenditures 127,372,746 14,641,909 8,077,233 17,925,707 168,017,595

Excess (deficiency) of revenues over expenditures (4,022,452) (13,565,809) 570,130 143,990 (16,874,141)

OTHER FINANCING SOURCES (USES)Transfers in 20,944 1,831,625 1,226,340 252,695 3,331,604Transfers out (4,939,824) (1,214,133) (621,625) (284,231) (7,059,813) Refunding bonds issued - - 5,810,000 - 5,810,000Premium on refunding bonds issued - - 249,914 - 249,914Special assessment bonds issued - 4,700,000 - - 4,700,000Discount on special assessment bonds issued - (10,000) - - (10,000)Payment to refunded bond escrow agent - - (5,937,204) - (5,937,204) Capital lease 146,042 - - - 146,042Sale of general capital assets 31,450 - - - 31,450Insurance recoveries 194,082 - - - 194,082 Total other financing sources (uses) (4,547,306) 5,307,492 727,425 (31,536) 1,456,075

Net change in fund balances (8,569,758) (8,258,317) 1,297,555 112,454 (15,418,066)

Fund balances-beginning 28,372,426 6,066,996 1,118,005 6,179,835 41,737,262

Fund balances (deficit)-ending $ 19,802,668 $ (2,191,321) $ 2,415,560 $ 6,292,289 $ 26,319,196


35


Name of GovernmentReconciliation of the Statement of Revenues, Expenditures and Changes in

Fund Balances of Governmental Funds to the Statement of ActivitiesFor the Year Ended June 30, 2022

Amounts reported for governmental activities in the statement of activities (page 31) aredifferent because:

Net Change in Fund Balances - total governmental funds (page 34) $ (15,418,066)

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. 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. (241,608)

Change in net position of governmental activities $ (18,357,293)


Name of GovernmentReconciliation of the Statement of Revenues, Expenditures and Changes in

Fund Balances of Governmental Funds to the Statement of ActivitiesFor the Year Ended June 30, 2022

36


Name of GovernmentGeneral Fund

Statement of Revenues Expenditures and Changes in Fund Balance - Budget and ActualFor the Year Ended June 30, 2022

REVENUES Taxes: Property $ 32,077,856 $ 32,077,856 $ 31,331,083 $ (746,773) Sales 45,400,000 45,400,000 44,368,865 (1,031,135) Franchise 1,345,000 1,345,000 1,537,833 192,833 Licenses and permits 4,166,256 4,166,256 2,649,889 (1,516,367) Intergovernmental 11,381,830 11,414,391 9,705,931 (1,708,460) Charges for services 17,738,732 17,738,732 19,091,893 1,353,161 Fines and forfeitures 7,762,650 7,762,650 6,670,562 (1,092,088) Investment earnings 1,258,200 1,258,200 3,349,530 2,091,330 Miscellaneous 4,884,779 4,886,579 4,644,708 (241,871) Total Revenues 126,015,303 126,049,664 123,350,294 (2,699,370)

EXPENDITURES Current: General government: Council 369,990 2,403,030 2,385,762 (17,268) Manager 838,614 841,163 812,724 (28,439) Attorney 2,013,374 2,022,931 1,530,351 (492,580) Clerk 601,729 635,227 627,728 (7,499) Personnel 883,087 887,297 843,765 (43,532) Financial administration 17,113,359 17,093,461 16,510,890 (582,571) Other - unclassified 7,156,598 7,146,204 7,067,442 (78,762) Total general government 28,976,751 31,029,313 29,778,662 (1,250,651) Public safety: Police 34,440,844 33,731,795 33,012,167 (719,628) Fire 22,104,801 21,829,599 21,637,844 (191,755) Protective Inspection 1,562,911 1,664,092 1,685,839 21,747 Total public safety 58,108,556 57,225,486 56,335,850 (889,636) Highways and streets: Engineering 8,003,477 8,021,568 7,841,369 (180,199) Maintenance 16,255,388 16,078,104 15,391,665 (686,439) Total highways and streets 24,258,865 24,099,672 23,233,034 (866,638) Sanitation 8,841,384 8,441,350 8,140,187 (301,163) Culture and recreation 10,177,528 9,878,404 9,735,013 (143,391) Debt Service Principal 473,234 473,234 - (473,234) Interest 219,879 224,663 - (224,663) Bond issaunce costs - 150,000 150,000 - Total debt service 693,113 847,897 150,000 (697,897) Total expenditures 131,056,197 131,522,122 127,372,746 (4,149,376)

Excess (deficiency) of revenues over expenditures (5,040,894) (5,472,458) (4,022,452) 1,450,006

OTHER FINANCING SOURCES (USES) Transfers in - - 20,944 20,944 Transfers out (6,727,010) (6,483,534) (4,939,824) 1,543,710 Capital leases - - 146,042 146,042 Sales of general capital assets - - 31,450 31,450 Insurance recoveries - - 194,082 194,082 Total other financing sources (uses) (6,727,010) (6,483,534) (4,547,306) 1,936,228

Net change in fund balances* (11,767,904) (11,955,992) (8,569,758) 3,386,234

Fund balance-beginning 28,372,426 28,372,426 28,372,426 -

Fund balance-ending $ 16,604,522 $ 16,416,434 $ 19,802,668 $ 3,386,234

* The net change in fund balances was included in the budget as an appropriation (i.e., spenddown) of fund balance.


Variance with Final Budget

Budgeted Amounts

Original ActualFinal

37



Proprietary FundsJune 30, 2022

GovernmentalBusiness-type Activities

TotalWater Transit Enterprise Funds

ASSETSCurrent Assets: Cash and cash equivalents $ 1,388,998 $ 2,310,846 $ 3,699,844 $ 5,883,720 Investments 2,136,642 - 2,136,642 611,286 Restricted assets-customer deposits 30,715 - 30,715 - Interest receivable 22,468 2,383 24,851 7,079 Accounts receivable 4,145,017 33,734 4,178,751 - Due from other funds - 12,000 12,000 - Intergovernmental receivable - 877,295 877,295 129,192 Inventories - 117,581 117,581 22,671 Prepaid items - - - 37,823 Total current assets 7,723,840 3,353,839 11,077,679 6,691,771

Noncurrent Assets: Capital Assets: Land 584,715 1,326,685 1,911,400 - Buildings 5,274,379 7,639,062 12,913,441 87,745 Machinery, equipment, and vehicles 1,376,709 9,952,998 11,329,707 5,283,268 Water distribution system 35,422,287 - 35,422,287 - Construction-in-progress 5,371,664 - 5,371,664 - Less accumulated depreciation (17,093,131) (9,869,210) (26,962,341) (2,466,987) Total noncurrent assets 30,936,623 9,049,535 39,986,158 2,904,026 Total assets 38,660,463 12,403,374 51,063,837 9,595,797

LIABILITIESCurrent liabilities: Accounts payable 1,057,264 532,741 1,590,005 814,023 Accrued liabilities - 11,412 11,412 - Compensated absences 5,990 - 5,990 16,679 Claims and judgments - - - 2,174,256 Retainage payable 24,937 - 24,937 - Customer deposits payable-restricted assets 30,715 - 30,715 - Accrued interest payable 143,219 - 143,219 - Bond anticipation note payable 1,625,000 - 1,625,000 - Intergovernmental payable - 28,547 28,547 - Due to retirement system 35,364 - 35,364 3,268 Bonds payable - current 938,967 - 938,967 - Unearned revenue - 2,192,549 2,192,549 - Total current liabilities 3,861,456 2,765,249 6,626,705 3,008,226

Noncurrent liabilities: Compensated absences 53,907 - 53,907 27,589 Claims and judgments - - - 1,386,533 Bonds payable 9,103,170 - 9,103,170 - Other post employment benefits obligation 259,000 - 259,000 61,000 Total noncurrent liabilities 9,416,077 - 9,416,077 1,475,122 Total liabilities 13,277,533 2,765,249 16,042,782 4,483,348

NET POSITIONNet investment in capital assets 20,006,772 9,049,535 29,056,307 2,904,026Unrestricted 5,376,158 588,590 5,964,748 2,208,423

Total net position 25,382,930 9,638,125 35,021,055 $ 5,112,449

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) $ 35,318,573

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

Activities

Internal ServiceFunds


Proprietary FundsJune 30, 2022

38


Name of GovernmentStatement of Revenues, Expenses and Changes in Net Position

Proprietary FundsFor the Year Ended June 30, 2022

Governmental Business-type Activities Activities

Total Internal ServiceWater Transit Enterprise Funds Funds

Operating revenues: Charges for services: Metered water sales $ 9,312,150 $ - $ 9,312,150 $ - Tap fees 12,050 - 12,050 - Passanger fares - 762,983 762,983 - Contract transit - 126,353 126,353 - Charter - 248 248 - Risk management - - - 2,632,108 Fleet management - - - 1,902,063 Miscellaneous 133,423 40,547 173,970 - Total operating revenues 9,457,623 930,131 10,387,754 4,534,171

Operating expenses: Personnel services 2,821,081 - 2,821,081 567,467 Materials and supplies 3,556,232 1,050,965 4,607,197 944,229 Contractual services 781,741 4,008,669 4,790,410 1,251,500 Claims - - - 1,761,680 Depreciation 886,240 827,289 1,713,529 373,469 Total operating expenses 8,045,294 5,886,923 13,932,217 4,898,345 Operating income (loss) 1,412,329 (4,956,792) (3,544,463) (364,174)

Nonoperating revenues (expenses): Intergovernmental 10,967 390,474 401,441 - Investment earnings 254,072 10,819 264,891 139,530 Loss on disposal of property (2,278) (88,031) (90,309) - Interest expense (416,820) - (416,820) - Total nonoperating revenues (expenses) (154,059) 313,262 159,203 139,530 Income before capital contributions and transfers 1,258,270 (4,643,530) (3,385,260) (224,644)

Capital contributions - 1,174,511 1,174,511 -Transfers in - 3,728,209 3,728,209 -

Change in net position 1,258,270 259,190 1,517,460 (224,644)

Net position-beginning 24,124,660 9,378,935 5,337,093Net position-ending $ 25,382,930 $ 9,638,125 $ 5,112,449

Adjustment for the net effect of the current year activity between the internal service funds and the enterprise funds. 16,964

Changes in net position of business-type activities (page 31) $ 1,534,424


Name of GovernmentStatement of Revenues, Expenses and Changes in Net Position


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Name of GovernmentStatement of Cash Flows


Governmental Business-type Activities

TotalWater Transit Enterprise Funds

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 8,902,065 $ 914,592 $ 9,816,657 $ 111,312 Receipts from interfund charges for transit services - 8,000 8,000 - Receipts from interfund charges for fleet management services - - - 1,774,063 Receipts from interfund charges for risk management services - - - 2,631,049 Receipt of customer deposits 1,215 - 1,215 - Other receipts 133,423 - 133,423 - Payments to suppliers and service providers (4,355,973) (4,939,960) (9,295,933) (4,227,374) Payments to employees for salaries and benefits (2,570,570) - (2,570,570) (120,843) Payments to other funds for services provided (354,452) (234,455) (588,907) - Return of customer deposits (5,915) - (5,915) - Net cash provided by (used for) operating activities 1,749,793 (4,251,823) (2,502,030) 168,207

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds - 3,728,209 3,728,209 - Operating grants 10,967 276,728 287,695 - Net cash (used for) noncapital financing activities 10,967 4,004,937 4,015,904 -

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from bond anticipation notes 1,500,000 - 1,500,000 - Capital grants - 1,604,868 1,604,868 - Acquisition and construction of capital assets (863,678) (843,151) (1,706,829) (639,405) Principal paid on capital debt (1,090,183) - (1,090,183) - Interest paid on capital debt (448,474) - (448,474) - Proceeds from the sale of assets 20,450 22,694 43,144 - Net cash provided by (used for) capital and related financing activities (881,885) 784,411 (97,474) (639,405)

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments (3,215,217) - (3,215,217) (2,438,442) Proceeds from sale of investments 2,989,249 - 2,989,249 2,407,638 Interest on investments 253,723 16,964 270,687 137,355 Net cash provided by investing activities 27,755 16,964 44,719 106,551

Net increase (decrease) in cash and cash equivalents 906,630 554,489 1,461,119 (364,647)

Cash and cash equivalents July 1 (including $35,415 for the water fund reported in restricted accounts) 513,083 1,756,357 2,269,440 6,248,367

Cash and cash equivalents June 30 (including $30,715 for the water fund reported in restricted accounts) $ 1,419,713 $ 2,310,846 $ 3,730,559 $ 5,883,720

Reconciliation of operating income (loss) to net cash provided by(used for) operating activities:

Operating income (loss) $ 1,412,329 $ (4,956,792) $ (3,544,463) $ (364,174)

Adjustments to reconcile operating income (loss) tonet cash provided by (used for) operating activities: Depreciation expense 886,240 827,289 1,713,529 373,469 (Increase) decrease in accounts receivable (422,135) 4,461 (417,674) - (Increase) in due from other funds - (12,000) (12,000) (Increase) in intergovernmental receivables - - - (17,747) (Increase) decrease in inventories - 35,948 35,948 (22,671) (Increase) decrease in prepaid items 1,275 - 1,275 (37,823) (Decrease) in deposits payable (4,700) - (4,700) - (Decrease) increase in accounts payable (296,007) (76,480) (372,487) 466,650 (Increase) in amounts payable related to equipment purchases (69,454) - (69,454) - (Decrease) in accrued liabilities (3,623) (3,623) - (Decrease) increase in compensated absences (8,489) - (8,489) 17,729 (Decrease) in intergovernmental payable - (70,626) (70,626) - (Decrease) increase in due to retirement system (8,266) - (8,266) 814 (Decrease) in claims and judgments payable - - - (309,040) Increase in other post employment benefit obligations payable 259,000 - 259,000 61,000 Total Adjustments 337,464 704,969 1,042,433 532,381 Net Cash Provided by (Used for) Operating Activities $ 1,749,793 $ (4,251,823) $ (2,502,030) $ 168,207

Schedule of non-cash capital and related financing activities:

Contributions of capital assets $ - $ 213,126 $ - $ - Purchase of machinery, equipment, and vehicles on account 69,454 - - -


Funds

Activities

Internal Service

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Fiduciary FundsJune 30, 2022

Public Safety Prison Canteen Employees' Private-purpose Agency

Pension Plan Trust Fund Fund

ASSETS Cash and cash equivalents 2,319,275$ $ 2,750 $ 1,829,884 Investments: Mutual funds 11,366,039 - - Certificates of deposit - 66,379 3,987 U.S. Government securities 13,678,594 - - Corporate Bonds 12,467,695 - - Receivables 16,135 921 50,890 Total assets 39,847,738 70,050 1,884,761

LIABILITIES Payroll withholdings and employer contributions - - 141,835 Accounts payable 17,061 - 604,550 Refunds payable 90,947 - - Deposits - - 1,128,594 Due to other governments - - 9,782 Total liabilities 108,008 - 1,884,761

NET POSITIONNet position held in trust for pension benefits and other purposes 39,739,730$ $ 70,050


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Name of GovernmentStatement of Changes in Net Position

Fiduciary FundsFor the Year Ended June 30, 2022

Public Safety Prison Canteen Employees' Private-purpose

Pension Plan Trust FundADDITIONSContributions: Employer $ 1,609,992 $ - Plan members 465,683 - Private contributions - 53,085 Total contributions 2,075,675 53,085 Investment earnings: Interest 331,639 3,663 Dividends 1,693 - Net increase in the fair value of investments 2,149,851 83 Total investment earnings 2,483,183 3,746 Less investment expense 97,585 - Net investment earnings 2,385,598 3,746 Total additions 4,461,273 56,831

DEDUCTIONS Benefits 2,688,530 - Refunds of contributions 93,741 - Administrative expenses 26,419 - Purchases by prisoners - 42,810 Total deductions 2,808,690 42,810

Change in net position 1,652,583 14,021

Net position – beginning 38,087,147 56,029 Net position – ending $ 39,739,730 $ 70,050




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NAME OF GOVERNMENTNotes 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 state-ment of activities) report information on all of the nonfiduciary activities of the primary gov-ernment and its component units. All fiduciary activities are reported only in the fund finan-cial statements. Governmental activities, which normally are supported by taxes, intergovern-mental revenues, and other nonexchange transactions, are reported separately from busi-ness-type activities, which rely to a significant extent on fees and charges to external customersfor support. Likewise, the primary government is reported separately from certain legally sep-arate component units for which the primary government is financially accountable.

B. Reporting entity

The NAME OF GOVERNMENT (government) is a municipal corporation governed by anelected mayor and six-member governing council (council). The accompanying financialstatements present the government and its component units, entities for which the govern-ment 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 govern-ment. Each discretely presented component unit is reported in a separate column in the gov-ernment-wide financial statements to emphasize that it is legally separate from the govern-ment.

Blended component unit. The Water Authority (Authority) serves all the citizens of the gov-ernment and is governed by a board comprised of the government’s elected council. Therates for user charges and bond issuance authorizations are approved by the government’scouncil and the government is legally obligated to provide resources in case there are defi-ciencies 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 state-ments.

Discretely presented component units. The Urban Renewal Agency (Agency) was createdin 1964 by state law for the purpose of eliminating and preventing the development andspread of deterioration and blight through the clearance, re-planning, reconstruction, reha-bilitation, conservation, or renewal of areas designated for residential, commercial, indus-trial, community, public, and other uses. The Agency is governed by five members who areappointed by and serve at the pleasure of the mayor. The mayor may also appoint himself asone of the members and is currently serving as Chairman. The government periodically pro-vides subsidies to support the Agency when it experiences operating deficits that are not fi-nanced by other means.

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The Cable TV Commission (Commission) was created in 1981 to operate the government’scable 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 governingbody and can remove its members at will. The government also guarantees the Commis-sion’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 Ca-ble TV Commission. These reports may be obtained by contacting the following offices.

Urban Renewal Agency Cable TV Commission5825 River Road 2259 Stone DriveGovernment City Government City

C. Basis of presentation – government-wide financial statements

While separate government-wide and fund financial statements are presented, they are in-terrelated. The governmental activities column incorporates data from governmental fundsand internal service funds, while business-type activities incorporate data from the govern-ment’s enterprise funds. Separate financial statements are provided for governmental funds,proprietary funds, and fiduciary funds, even though the latter are excluded from the govern-ment-wide financial statements.

As discussed earlier, the government has two discretely presented component units. Whileneither the Urban Renewal Agency or the Cable Television Commission are considered to bea major component unit, they are nevertheless shown in separate columns in the govern-ment-wide financial statements.

As a general rule, the effect of interfund activity has been eliminated from the govern-ment-wide financial statements. Exceptions to this general rule are payments in lieu of taxeswhere the amounts are reasonably equivalent in value to the interfund services provided andother charges between the government’s water and transit functions and various other func-tions of the government. Elimination of these charges would distort the direct costs and pro-gram 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, includingits fiduciary funds and blended component units. Separate statements for each fund cate-gory—governmental, proprietary, and fiduciary—are presented. The emphasis of fund fi-nancial statements is on major governmental and enterprise funds, each displayed in a sepa-rate column. All remaining governmental and enterprise funds are aggregated and reportedas nonmajor funds. Major individual governmental and enterprise funds are reported as sep-arate 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 financialresources of the general government, except those accounted for in another fund.

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The capital projects fund accounts for the acquisition and construction of the govern-ment’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 re-stricted, committed, or assigned for the payment of principal and interest on long-termobligations 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 ofthe government. The Authority operates the water distribution system for residents ofthe government.

The transit fund accounts for the government’s transit services, including public trans-portation trains, buses, and facilities.

Additionally, the government reports the following fund types:

Internal service funds account for fleet management and risk management services (in-cluding claims for workers’ compensation, general liability, and property damage) pro-vided to other departments or agencies of the government, or to other governments on acost-reimbursement basis.

The pension trust fund accounts for the activities of the Public Safety Employees’ PensionPlan, which accumulates resources for pension benefit payments to qualified publicsafety employees.

The private-purpose trust fund accounts for contributions made on behalf of prisonershoused at the Winterfell Correction Institute for use at the canteen.

The agency fund accounts for employee payroll tax withholdings, towing and storingcharges for impounded vehicles collected on behalf of private vendors (i.e., towingcompanies), 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 pur-poses. Any residual balances outstanding at year end are reported as due from/to otherfunds and advances to/from other funds. While these balances are reported in fund financialstatements, certain eliminations are made in the preparation of the government-wide finan-cial statements. Balances between the funds included in governmental activities (i.e., thegovernmental and internal service funds) are eliminated so that only the net amount is in-cluded as internal balances in the governmental activities column. Similarly, balances be-tween the funds included in business-type activities (i.e., the enterprise funds) are eliminatedso that only the net amount is included as internal balances in the business-type activities col-umn.

Further, certain activity occurs during the year involving transfers of resources betweenfunds. In fund financial statements these amounts are reported at gross amounts as transfersin/out. While reported in fund financial statements, certain eliminations are made in the

45


preparation of the government-wide financial statements. Transfers between the funds in-cluded in governmental activities are eliminated so that only the net amount is included astransfers in the governmental activities column. Similarly, balances between the funds in-cluded in business-type activities are eliminated so that only the net amount is included astransfers in the business-type activities column.

E. Measurement focus and basis of accounting

The accounting and financial reporting treatment is determined by the applicable measure-ment focus and basis of accounting. Measurement focus indicates the type of resources beingmeasured such as current financial resources or economic resources. The basis of accounting indi-cates the timing of transactions or events for recognition in the financial statements.

The government-wide financial statements are reported using the economic resources measure-ment focus and the accrual basis of accounting. Revenues are recorded when earned and ex-penses are recorded when a liability is incurred, regardless of the timing of related cashflows. Property taxes are recognized as revenues in the year for which they are levied. Grantsand similar items are recognized as revenue as soon as all eligibility requirements imposedby the provider have been met.

The governmental fund financial statements are reported using the current financial resourcesmeasurement focus and the modified accrual basis of accounting. Revenues are recognized as soonas they are both measurable and available. Revenues are considered to be available whenthey are collectible within the current period or soon enough thereafter to pay liabilities ofthe current period. For this purpose, the government considers revenues to be available ifthey are collected within 60 days of the end of the current fiscal period. Expenditures gener-ally are recorded when a liability is incurred, as under accrual accounting. However, debtservice expenditures, as well as expenditures related to compensated absences, and claimsand judgments, are recorded only when payment is due. General capital asset acquisitionsare reported as expenditures in governmental funds. Issuance of long-term debt and acquisi-tions under capital leases are reported as other financing sources.

Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the currentfiscal period are all considered to be susceptible to accrual and so have been recognized asrevenues of the current fiscal period. Entitlements are recorded as revenues when all eligibil-ity requirements are met, including any time requirements, and the amount is received dur-ing the period or within the availability period for this revenue source (within 60 days of yearend). Expenditure-driven grants are recognized as revenue when the qualifying expendi-tures have been incurred and all other eligibility requirements have been met, and theamount 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 andavailable only when cash is received by the government.

The proprietary, pension and other postemployment benefit trust, and private-purpose trustfunds are reported using the economic resources measurement focus and the accrual basis of ac-counting. The agency fund has no measurement focus but utilizes the accrual basis of account-ing for reporting its assets and liabilities.

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F. Budgetary information

1. Budgetary basis of accounting

Annual budgets are adopted on a basis consistent with generally accepted accountingprinciples for the general fund, library fund, and debt service fund. The capital projectsfund is appropriated on a project-length basis. Other special revenue funds and the per-manent fund do not have appropriated budgets since other means control the use ofthese resources (e.g., grant awards and endowment requirements) and sometimes spana period of more than one fiscal year.

The appropriated budget is prepared by fund, function, and department. The govern-ment’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 legallyexceed appropriations) is the department level.

Appropriations in all budgeted funds lapse at the end of the fiscal year even if they haverelated encumbrances. Encumbrances are commitments related to unperformed (execu-tory) contracts for goods or services (i.e., purchase orders, contracts, and commitments).Encumbrance accounting is utilized to the extent necessary to assure effective budget-ary control and accountability and to facilitate effective cash planning and control.While all appropriations and encumbrances lapse at year end, valid outstanding en-cumbrances (those for which performance under the executory contract is expected inthe next year) are re-appropriated and become part of the subsequent year’s budgetpursuant to state regulations.

2. Excess of expenditures over appropriations

For the year ended June 30, 2022, expenditures exceeded appropriations in the protec-tive inspection department (the legal level of budgetary control) within the public safetyfunction of the general fund by $21,747. While overspending of this appropriation isauthorized by law up to $100,000 if related to cases involving imminent public endan-germent (e.g., the need to inspect properties with damage from collision, natural disas-ter, fire, or water to determine their inherent stability), which was the case this year, it isnevertheless considered a budgetary violation. Further, the overspending comes with aconsequence for the subsequent year’s budget. In accordance with the requirements ofthe law, there was a decrease of $21,747 in the protective inspection appropriation forroutinely scheduled inspections that was legally adopted for the subsequent year’sbudget.

G. Assets, liabilities, deferred outflows/inflows of resources, and net position/fund bal-ance

1. Cash and cash equivalents

The government’s cash and cash equivalents are considered to be cash on hand, de-mand deposits, and short-term investments with original maturities of three months orless from the date of acquisition.

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2. Investments

Investments for the government are reported at fair value (generally based on quotedmarket prices) except for the position in the State Treasurer’s Investment Pool (Pool). Inaccordance with state law, the Pool operates in conformity with all of the requirementsof the Securities and Exchange Commission’s (SEC) Rule 2a7 as promulgated under theInvestment Company Act of 1940, as amended. Accordingly, the Pool qualifies as a2a7-like pool and is reported at the net asset value per share (which approximates fairvalue) even though it is calculated using the amortized cost method. The Pool is subjectto 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 ofexpendable supplies and vehicle repair parts. The cost of such inventories is recorded asexpenditures/expenses when consumed rather than when purchased.

Certain payments to vendors reflect costs applicable to future accounting periods andare recorded as prepaid items in both the government-wide and fund financial state-ments. The cost of prepaid items is recorded as expenditures/expenses when consumedrather 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 governmen-tal or business-type activities column in the government-wide financial statements.Capital assets, except for infrastructure assets, are defined by the government as assetswith an initial, individual cost of more than $5,000 and an estimated useful life in excessof 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 re-ported by governmental activities), the government chose to include all such items re-gardless of their acquisition date or amount. The government was able to estimate thehistorical cost for the initial reporting of these assets through back trending (i.e., esti-mating the current replacement cost of the infrastructure to be capitalized and using anappropriate price-level index to deflate the cost to the acquisition year or estimated ac-quisition year). As the government constructs or acquires additional capital assets eachperiod, including infrastructure assets, they are capitalized and reported at historicalcost. The reported value excludes normal maintenance and repairs which are essentiallyamounts spent in relation to capital assets that do not increase the capacity or efficiencyof the item or increase its estimated useful life. Donated capital assets are recorded attheir estimated fair value at the date of donation.

Interest incurred during the construction phase of capital assets of enterprise funds isincluded as part of the capitalized value of the assets constructed. The amount of inter-est capitalized depends on the specific circumstances. This year tax-exempt bond antici-

48


pation notes (BANS) were issued to finance specific water plant improvements. Accord-ingly, the interest capitalized in the amount of $7,881 was calculated by netting actualinterest expense on the BANS ($30,000) with the actual investment earnings on the un-spent 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 thestraight line method over the following estimated useful lives:

5. Deferred outflows/inflows of resources

In addition to assets, the statement of financial position will sometimes report a separatesection for deferred outflows of resources. This separate financial statement element, de-ferred outflows of resources, represents a consumption of net position that applies to a fu-ture period(s) and so will not be recognized as an outflow of resources (expense/ expen-diture) until then. The government only has one item that qualifies for reporting in thiscategory. It is the deferred charge on refunding reported in the government-wide state-ment of net position. A deferred charge on refunding results from the difference in thecarrying value of refunded debt and its reacquisition price. This amount is deferred andamortized 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 sep-arate section for deferred inflows of resources. This separate financial statement ele-ment, deferred inflows of resources, represents an acquisition of net position that applies toa future period(s) and so will not be recognized as an inflow of resources (revenue) untilthat time. The government has only one type of item, which arises only under a modi-fied accrual basis of accounting, that qualifies for reporting in this category. Accord-ingly, the item, unavailable revenue, is reported only in the governmental funds balancesheet. The governmental funds report unavailable revenues from two sources: propertytaxes and special assessments. These amounts are deferred and recognized as an inflowof 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 re-stricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order tocalculate the amounts to report as restricted – net position and unrestricted – net posi-tion in the government-wide and proprietary fund financial statements, a flow assump-tion must be made about the order in which the resources are considered to be applied.

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Capital asset classes LivesBuildings 10-50Machinery and equipment 5-20Vehicles 5-10Improvements 10-20Infrastructure 75-100Water distribution system 75-100

It is the government’s policy to consider restricted – net position to have been depletedbefore unrestricted – net position is applied.

7. Fund balance flow assumptions

Sometimes the government will fund outlays for a particular purpose from both re-stricted and unrestricted resources (the total of committed, assigned, and unassignedfund balance). In order to calculate the amounts to report as restricted, committed, as-signed, and unassigned fund balance in the governmental fund financial statements aflow assumption must be made about the order in which the resources are considered tobe applied. It is the government’s policy to consider restricted fund balance to have beendepleted 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. Unas-signed fund balance is applied last.

8. Fund balance policies

Fund balance of governmental funds is reported in various categories based on the na-ture of any limitations requiring the use of resources for specific purposes. The govern-ment itself can establish limitations on the use of resources through either a commit-ment (committed fund balance) or an assignment (assigned fund balance).

The committed fund balance classification includes amounts that can be used only forthe specific purposes determined by a formal action of the government’s highest level ofdecision-making authority. The governing council is the highest level of decision-mak-ing authority for the government that can, by adoption of an ordinance prior to the endof the fiscal year, commit fund balance. Once adopted, the limitation imposed by the or-dinance remains in place until a similar action is taken (the adoption of another ordi-nance) to remove or revise the limitation.

Amounts in the assigned fund balance classification are intended to be used by the gov-ernment 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 toassign fund balance. The council may also assign fund balance as it does when appro-priating fund balance to cover a gap between estimated revenue and appropriations inthe subsequent year’s appropriated budget. Unlike commitments, assignments gener-ally only exist temporarily. In other words, an additional action does not normally haveto be taken for the removal of an assignment. Conversely, as discussed above, an addi-tional 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 applicantswho purchase, use, or directly benefit from goods, services, or privileges provided by agiven function or segment and 2) grants and contributions (including special assess-ments) that are restricted to meeting the operational or capital requirements of a partic-

50


ular function or segment. All taxes, including those dedicated for specific purposes, andother internally dedicated resources are reported as general revenues rather than asprogram 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 estimateof the current year’s levy based on the prior year’s taxes; the second billing (mailed onJanuary 1) reflects adjustments to the current year’s actual levy. The billings are consid-ered past due 30 days after the respective tax billing date, at which time the applicableproperty 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 va-cation benefits, which are eligible for payment upon separation from governmentservice. The liability for such leave is reported as incurred in the government-wideand proprietary fund financial statements. A liability for those amounts is re-corded in the governmental funds only if the liability has matured as a result of em-ployee resignations or retirements. The liability for compensated absencesincludes salary-related benefits, where applicable.

Sick Leave

Accumulated sick leave lapses when employees leave the employ of the govern-ment 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 produc-ing and delivering goods in connection with a proprietary fund’s principal ongoing op-erations. The principal operating revenues of the water fund, transit fund, and internalservice funds are charges to customers for sales and services. The water fund also recog-nizes as operating revenue the portion of tap fees intended to recover the cost of con-necting new customers to the system. Operating expenses for enterprise funds and in-ternal service funds include the cost of sales and services, administrative expenses, anddepreciation on capital assets. All revenues and expenses not meeting this definition arereported 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 andthe government-wide statement of net position

51


The governmental fund balance sheet includes a reconciliation between fund balance – totalgovernmental funds and net position – governmental activities as reported in the govern-ment-wide statement of net position. One element of that reconciliation explains that “capitalassets used in governmental activities are not financial resources and, therefore, are not re-ported in the funds.” The details of this $284,482,458 are as follows:

Land $ 50,067,172Construction in progress 9,870,118Buildings 215, 826,259

Less: Accumulated depreciation-buildings (83,185,398)Machinery, equipment, and vehicles 30,512,170

Less: Accumulated depreciation-machinery, equipment, and vehicles (20,222,067)Infrastructure 207,826,145

Less: Accumulated depreciation-infrastructure (126,211,941)

Net adjustment to increase fund balance – total governmental fundsto arrive at net position – governmental activities $284,482,458

Another element of that reconciliation explains that “internal service funds are used by man-agement 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 activitiesin the statement of net position.” The details of this $4,814,931 difference are as follows:

Net position of the internal service funds $5,112,449Less: Internal payable representing charges in excess of cost to

business-type activities – prior years (280,554)Less: Internal payable representing charges in excess of cost to

business-type activities – current year (16,964)

Net adjustment to increase fund balance – total governmental fundsto arrive at net position – governmental activities $4,814,931

The final element of that reconciliation explains that “long-term liabilities, including bondspayable, are not due and payable in the current period and therefore are not reported in thefunds.” The details of this $98,881,783 difference are as follows:

Bonds payable $77,552,863Less: Deferred charge on refunding (to be amortized as interest expense) (726,762)Less: Issuance discount (to be amortized as interest expense) (9,000)Add: Issuance premium (to be amortized over life of debt) 670,015

Pension-related debt 4,739,557Compensated absences 5,244,411Capital leases 146,042Accrued interest payable 716,657Other postemployment benefit obligations 10,548,000

Net adjustment to reduce fund balance – total governmental fundsto arrive at net position – governmental activities $98,881,783

B. Explanation of certain differences between the governmental fund statement of reve-nues, expenditures, and changes in fund balances and the government-wide statementof activities

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The governmental fund statement of revenues, expenditures, and changes in fund balancesincludes a reconciliation between net changes in fund balances – total governmental funds andchanges in net position of governmental activities as reported in the government-wide statementof activities. One element of that reconciliation explains that “governmental funds reportcapital outlays as expenditures. However, in the statement of activities, the cost of these as-sets is allocated over their estimated useful lives and reported as depreciation expense. Thisis 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 $15,123,189Depreciation expense (11,886,161)

Net adjustment to increase net changes in fund balances – total governmentalfunds 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 miscellaneoustransactions 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 assetsis reported. However, in the governmental funds, the proceeds fromthe sale increase financial resources. Thus, the change in net position differsfrom 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 financialresources. 128,000

Net adjustment to increase total governmental funds to arrive at changesin 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 repay-ment of the principal of long-term debt consumes the current financial resources of govern-mental funds. Neither transaction, however, has any effect on net position. Also, governmen-tal 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. Thisamount is the net effect of these differences in the treatment of long-term debt and relateditems.” The details of this $240,435 difference are as follows:

Debt issued or incurred:Capital lease financing $ 146,042General obligation bonds 5,810,000Plus premium 249,914Special assessment bonds 4,700,000

Less discount (10,000)Principal repayments:

General obligation debt (4,718,317)Payment to escrow agent for refunding (5,937,204)

Net adjustment to decrease changes in fund balances – total governmental fundsto arrive at changes in net position of governmental activities $ 240,435

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Another element of that reconciliation states that “some expenses reported in the statementof activities do not require the use of current financial resources and therefore are not re-ported as expenditures in governmental funds.” The details of this $10,249,187 difference areas follows:

Compensated absences $ 380,337Pension related debt (697,896)Accrued interest (13,816)

Net other postemployment benefits obligation 10,548,000Amortization of negative net pension obligation 22,818

Amortization of bond premiums (83,226)Amortization of bond discounts 1,000Amortization of deferred charge on refunding 91,970

Net adjustment to decrease net changes in fund balances – total governmentalfunds to arrive at changes in net position of governmental activities. $10,249,187

Another element of that reconciliation states that “internal service funds are used by man-agement 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 governmentalactivities.” The details of this $241,608 difference are as follows:

Change in net position of the internal service funds $224,644Plus: loss from charges to business-type activities 16,964

Net adjustment to decrease net changes in fund balances – total governmental fundsto arrive at changes in net position of governmental activities $241,608

C. Explanation of certain differences between the proprietary fund statement of net posi-tion 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 govern-ment-wide statement of net position. The description of the sole element of that reconcilia-tion is “adjustment to report the cumulative internal balance for the net effect of the activitybetween 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-typeactivities – prior years $280,554

Internal receivable representing charges in excess of cost to business-typeactivities – current year 16,964

Net adjustment to increase net position – total enterprise funds to arrive atnet position – business-type activities $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 violationthat occurred for the year ended June 30, 2022. It also explains the provision provided by lawthat was used to remedy the violation.

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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 pro-jects mainly by borrowings, to report a deficit. The reason for the deficit in this case is that thegovernment issued bond anticipation notes (BANS), which do not qualify for treatment as along-term liability. Accordingly, the BANS are reported as a fund liability in the capital pro-jects 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 re-ported and fund balance is reduced. Because the BANS are the main source of resources forthe fund, the result is an overall fund deficit. This deficit will be eliminated as resources areobtained (e.g., from revenues, long-term debt issuances, and transfers in) to make the sched-uled 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 bankfailure, the government’s deposits may not be returned to it. The government does not have adeposit policy for custodial credit risk. As of June 30, 2022, the government’s bank balancewas $24,750,625 and $1,985,682 of that amount was exposed to custodial credit risk because itwas uninsured and collateralized with securities held by the pledging or financial institu-tion’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 re-quires it to meet all of the requirements of Rule 2a-7 of the Securities and ExchangeCommission. See note I.G.2, Investments, for a discussion of how the shares in the Pool arevalued. The Pool has a credit rating of AAA from Standard & Poor’s Financial Services. Localgovernment investment pools in this rating category meet the highest standards for creditquality, conservative investment policies, and safety of principal. The Pool invests in a highquality portfolio of debt securities investments legally permissible for municipalities andschool districts in the state.

The government utilizes a pooled investment concept for all its funds to maximize its invest-ment program. Investment income from this internal pooling is allocated to the respectivefunds based upon the sources of funds invested.

State statutes authorize the government to invest in obligations of the U.S. Treasury, com-mercial paper, corporate bonds, repurchase agreements, and the State Treasurer’s Invest-ment Pool.

55


As of June 30, 2022, the government had the following investments:

Interest rate risk. In accordance with its investment policy, the government manages its expo-sure to declines in fair values by limiting the weighted average maturity of its investmentportfolio to less than ten months.

Credit risk. State law limits investments in commercial paper and corporate bonds to the toptwo ratings issued by nationally recognized statistical rating organizations (NRSROs). It isthe government’s policy to limit its investments in these investment types to the top rating is-sued by NRSROs. As of June 30, 2022, the government’s investment in the State Treasurer’sinvestment pool was rated AAA by Standard & Poor’s and Aaa by Moody’s Investors Ser-vice. 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 in-vestments in corporate bonds were rated AAA by Standard & Poor’s and Fitch Ratings, andAaa by Moody’s Investors Service.

Concentration of credit risk. The government’s investment policy does not allow for an invest-ment 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 fail-ure of the counterparty, the government will not be able to recover the value of its invest-ments or collateral securities that are in the possession of an outside party. Of the investmentin 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 govern-ment’s brokerage firm, which is also the counterparty for these particular securities. The gov-ernment’s investment policy limits the amount of securities that can be held by counter-parties to no more than $2 million.

C. Receivables

Amounts are aggregated into a single accounts receivable (net of allowance for uncollec-tibles) line for certain funds and aggregated columns. Below is the detail of receivables for thegeneral and debt service funds and the nonmajor governmental funds in the aggregate, in-cluding the applicable allowances for uncollectible accounts:

56


WeightedAverage

Investment Type Fair Value Maturity (Years)

U.S. Treasuries $25,877,998 0.35

Bond mutual funds 13,009,263 0.52

Repurchase agreements 4,211,570 0.02

State Treasurer’s investment pool 2,709,501 0.55

Corporate bonds 16,030,681 1.46

Total fair value $61,839,013

Portfolio weighted average maturity 0.41

Debt Service NonmajorReceivables General Fund Governmental Total

Accounts $ 676,752 $ - $ 38,979 $ 715,731Property taxes 3,347,785 79,618 - 3,427,403Property tax interest and penalties 165,884 - - 165,884Tax liens 258,767 - - 258,767

Sales taxes 1,829,576 - - 1,829,576

Special assessments - 4,230,000 - 4,230,000

Loans - - 2,462,962 2,462,962Interest 37,151 - 260 37,411

Gross receivables $6,315,915 $4,309,618 $2,502,201 $13,127,734Less: Allowance for uncollectibles (248,668) - - (248,668)Net receivables $6,067,247 $4,309,618 $2,502,201 $12,879,066

Based on the payment schedule for special assessment receivables, $3,760,000 of the amountreported in the debt service fund is not expected to be collected within the next year. Also, ap-proximately $2,000,000 of the outstanding balance of loans receivable are not anticipated tobe collected within the next year.

Revenues of the Water Authority, an enterprise fund, are reported net of uncollectibleamounts. 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:

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Depreciation expense was charged to the functions/programs of the governmental activitiesof the primary government as follows:

Governmental activities:

General government $ 192,046

Public safety 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 chargedto the various functions based on their usage of the assets 373,469

Total depreciation expense – governmental activities $12,259,630

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Governmental Activities: Balance

July 1, 2021 Increases Decreases Balance

June 30, 2022 Capital assets, not being depreciated: Land $ 50,067,172 $ - $ - $ 50,067,172 Construction-in-progress 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 Capital assets, being depreciated: Buildings 191,856,915 24,057,089 - 215,914,004 Machinery, equipment, and vehicles 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 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) Infrastructure (120,858,864) (5,353,077) - (126,211,941) Total accumulated depreciation

(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

E. Accrued liabilities

Accrued liabilities reported by governmental funds at June 30, 2022, were as follows:

Nonmajor Totalgovernmental governmental

General fund funds fundsSalary and employee benefits $ 2,188,382 245,910 2,434,242Other 315,728 186,047 501,775Total accrued liabilities $ 2,504,060 431,957 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-em-ployer defined benefit pension plan administered by the State Pension Board. SLGERS pro-vides retirement, disability, and death benefits to plan members and their beneficiaries. Statestatutes authorize the State to establish and amend all plan provisions. The State issues apublicly available financial report that includes the applicable financial statements and re-

59


Business-type activities

BalanceJuly 1, 2021

Increases

Decreases

Transfers/ Reclassifications

Balance June 30, 2022

Capital assets, not being depreciated:

Land $1,911,400 $ - $ - $ - $ 1,911,400

Construction-in-progress 6,726,334 795,579 -

(2,150,249) 5,371,664

Total capital assets, not being depreciated 8,637,734 795,579

-

(2,150,249)

7,283,064

Capital assets, being depreciated:

Buildings 10,763,192 -

-

2,150,249 12,913,441

Machinery, equipment, and vehicles 10,873,602 1,218,982

(762,877)

- 11,329,707

Water distribution system 35,422,287 - - - 35,422,287

Total capital assets, being depreciated 57,059,081 1,218,982 (762,877)

2,150,249

59,665,435

Less accumulated depreciation for:

Buildings (4,911,910) (467,517) - - (5,379,427)

Machinery, equipment, and vehicles (7,679,744) (512,708)

630,097

- (7,562,355)

Water distribution system (13,286,582) (733,977) - - (14,020,559)

Total accumulated depreciation (25,878,236) (1,714,202) 630,097 - (26,962,341)

Total capital assets being depreciated, net 31,180,845

(495,220)

(132,780)

2,150,249 32,703,094

Business-type activities capital assets, net $39,818,579 $ 300,359 $(132,780)

$ - $39,986,158

quired supplementary information for SLGERS. That report may be obtained by writing toSLGERS, 5822 Poppy Avenue, State Capital City.

Funding policy. Contribution requirements of employers and employees and the amendmentof those requirements are governed by State statutes. The SLGERS is non-contributory, ex-cept for employees who joined SLGERS after July 28, 2009. Those plan members contribute 3percent of their annual covered salary during their first ten years of service. Employer contri-bution 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 cov-ered payroll. The current employer contribution rate is 11 percent of covered payroll. Thegovernment’s contributions to SLGERS for the years ended June 30, 2022, 2021, and 2020were $3,031,143, $3,507,016, and $3,658,353, respectively, and were equal to 100 percent ofthe 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 benefitplan for police and fire employees. PSEPP provides retirement, disability, and death benefitsto plan members and their beneficiaries. The plan is governed by the Governing Councilwhich may amend benefits and other plan provisions, and which is responsible for the man-agement of plan assets. The plan issues a publicly available financial report that includes theapplicable financial statements and required supplementary information for the plan. Thatreport may be obtained at the government’s offices.

Summary of significant accounting policies - basis of accounting and valuation of investments. ThePSEPP’s financial statements are prepared on the accrual basis of accounting. Plan membercontributions are recognized in the period in which the contributions are due. The govern-ment’s contributions are recognized when due and a formal commitment to provide the con-tributions has been made. Benefits and refunds are recognized when due and payable in ac-cordance with the terms of the plan. All plan investments are reported at fair value. Securi-ties traded on a national exchange are valued at the last reported sales price on the govern-ment’s balance sheet date. Securities without an established market value are reported atestimated fair value.

Funding policy. The contribution requirements of plan members and the government are es-tablished and may be amended by the governing council. Plan members are required to con-tribute 5 percent of their annual covered salary. The government is required to contribute atan actuarially determined rate. The current employer contribution rate is 15.5 percent of an-nual covered payroll.

Annual pension cost (APC) and Net pension asset (NPA). The government’s APC and NPA forthe PSEPP are as follows:

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The government’s APC, percentage of APC contributed, and NPA for the plan for the currentyear and each of the two preceding years were as follows:

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:

The schedule of funding progress, presented as required supplementary information follow-ing the notes to the financial statements, presents multiyear trend information about whetherthe actuarial value of plan assets is increasing or decreasing relative to the actuarial accruedliability 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:

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Fiscal Year Annual Pension Percentage of Net PensionEnded June 30, Cost (APC) APC Contributed Asset

2022 $1,632,810 98.6% $(454,389)2021 1,080,590 97.9% (477,207)2020 1,066,867 98.4% (499,899)

Actuarial accrued liability (AAL) $ 42,267,100

Actuarial value of plan assets $ 37,516,400

Unfunded actuarial accrued liability (UAAL) $ 4,750,700

Funded ratio (actuarial value of plan assets/AAL) 88.76%

Covered payroll (annual payroll of activeemployees covered by the plan) $ 10,396,800

UAAL as a percentage of covered payroll 45.69%

Annual required contribution (ARC) $ 1,609,992

Interest on NPA (38,176)

Adjustment to the ARC 60,994

Annual pension cost (APC) $ 1,632,810

Contributions made 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)

Actuarial cost method entry ageAmortization method level dollar, closedRemaining amortization period 11 yearsInflation rate 3.00%Asset valuation method 5-year smoothed marketInvestment return 8.00%Projected salary increases 5.50%Cost of living adjustments 3.00%

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 andtheir beneficiaries through an agent multiple-employer defined benefit plan established July28, 2020. The Name of Government General Employees’ Other Postemployment BenefitsPlan (GEOPBP) plan is administered by the State Pension Board. State statutes assign the au-thority to establish and amend the benefit provisions of the agent multiple-employer healthcare plans administered by the State Pension Board to the respective employer entities. Thatauthority for the GEOPBP rests with the government. The State issues a publicly available fi-nancial report that includes the applicable financial statements and required supplementaryinformation for the plan. That report may be obtained by writing to GEOPBP, 5842 PoppyAvenue, State Capital City.

Funding policy. The government pays the cost of the postemployment health care benefits forretirees, their spouses, and their dependents during the life of the retiree. Surviving spousesof retirees may elect to continue health care benefits at their own expense. Substantially all ofthe government’s employees may become eligible for these benefits if they reach normal re-tirement age while working for the government.

The contribution requirements of the government are established and may be amended bythe governing council. Plan members are currently not required to contribute. The govern-ment is required to contribute at an actuarially determined rate. The current employer contri-bution 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 forthis OPEB plan. Accordingly, the annual OPEB cost is equal to the annual required contribu-tion of $18,721,000, as determined by an actuarial valuation performed at July 1, 2021. Theend of the year net OPEB obligation is determined as follows:

The government’s annual OPEB cost, percentage of OPEB cost contributed, and net post-employment 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:

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


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

Percentage of NetAnnual OPEB cost OPEB cost contributed OPEB obligation

$ 18,721,000 41.9% $ 10,868,000

Actuarial valuations for OPEB plans involve estimates of the value of reported amounts andassumptions about the probability of events far into the future. These actuarially determinedamounts are subject to continual revisions as actual results are compared to past expectationsand new estimates are made about the future. The schedule of funding progress presentedimmediately following the financial statements as required supplementary information,presents multi-year trend information about whether the actuarial value of plan assets is in-creasing or decreasing over time relative to the actuarial accrued liability for benefits.

Actuarial methods and assumptions. Projections of benefits for financial reporting purposes arebased on the substantive plan (the plan as understood by the employer and the plan mem-bers) and include the type of benefits provided at the time of each valuation and the historicalpattern of sharing benefit costs between the employer and plan members to that point. Theactuarial calculations of the OPEB plan reflect a long-term perspective. Consistent with thisperspective, actuarial valuations, after this initial year, will use actuarial methods and as-sumptions that include techniques that are designed to reduce the effects of short-term vola-tility 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 val-uation using the following methods and assumptions:

H. Construction and other significant commitments

Construction commitments. The government has active construction projects as of December31, 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. Atyear end the government’s commitments with contractors are as follows:

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Actuarial cost method projected unit creditAmortization method level percentage of payroll, openRemaining amortization period 30 yearsInflation rate 3.00%Asset valuation method 5-year smoothed marketInvestment return 8.00%Projected salary increases 5.50%Cost of living adjustments 3.00%Healthcare cost trend rate 10.00%

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 employeescovered by the plan) $ 69,485,795

UAAL as a percentage of covered payroll 374.48%

The remaining commitment amounts of $901,527 for the widening of streets and bridges pro-jects were encumbered at fiscal year end. As discussed earlier in note I.F.1, Budgetary infor-mation, Budgetary basis of accounting, the encumbrances and related appropriation lapse atthe end of the year, but are re-appropriated and become part of the subsequent year’s budgetbecause performance under the executory contract is expected in the next year.

Encumbrances. As discussed in note I.F.1, Budgetary information, Budgetary basis of account-ing, encumbrance accounting is utilized to the extent necessary to assure effective budgetarycontrol and accountability and to facilitate effective cash planning and control. At year endthe amount of encumbrances expected to be honored upon performance by the vendor in thenext year were as follows:

I. Risk management

The government is exposed to various risks of loss related to torts: theft of, damage to, anddestruction of assets; errors and omissions; and natural disasters. The government, includingits component units, uses the Risk Management Internal Service Fund to account for and fi-nance 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. In-surance policies are purchased for the following exposures with the deductible or theamount of risk retention indicated in parenthesis: public officials and employment practicesliability ($25,000/$100,000 deductible), boiler and machinery ($10,000/deductible), employeefaithful performance ($25,000 deductible), and an excess liability insurance policy (govern-ment retains risks up to $1,000,000). There were no settlements in excess of the insurance cov-erage in any of the three prior fiscal years.

The risk management internal service fund is funded by charges to the government’s otherfunds and component units, and is based primarily upon the contributing funds’ claimsexperience. Liabilities of the fund are reported when it is probable that a loss has occurredand the amount of the loss can be reasonably estimated. Liabilities include an amount forclaims that have been incurred but not reported (IBNRs). The result of the process to estimatethe claims liability is not an exact amount as it depends on many complex factors, such as, in-flation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluatedperiodically to consider the effects of inflation, recent claim settlement trends (including fre-quency and amount of pay-outs), and other economic and social factors. The estimate of the

64


RemainingProject Spent-to-Date commitment

Residential street construction – specialassessments $ 2,979,000 $2,095,000

Various widening of streets and bridges 7,280,315 901,527

Work plant facilities 762,714 739,286

General fund $3,018,564Capital projects fund 901,527Nonmajor governmental funds 663,820Total $4,583,911

KDommer

Typewritten Text

claims liability also includes amounts for incremental claim adjustment expenses related tospecific claims and other claim adjustment expense regardless of whether allocated to spe-cific claims. Estimated recoveries, for example from salvage or subrogation, are another com-ponent of the claims liability estimate.

Changes in the balance of claims liabilities during the past two years are as follows:

J. Lease obligations

1. Capital lease

This year, the government entered into a lease agreement as lessee for financing the ac-quisition of playground equipment valued at $146,042. The equipment has a ten-yearestimated useful life. This year, $14,640 was included in depreciation expense. Thislease agreement qualifies as a capital lease for accounting purposes and, therefore, hasbeen recorded at the present value of future minimum lease payments as of the incep-tion date.

The future minimum lease obligations and the net present value of these minimumlease payments as of June 30, 2022, were as follows:

65


Workers' General and

Compensation Property Damage

Liability - June 30, 2020 $ 1,674,545 $ 2,307,682

Claims incurred 474,111 101,774

Claims payments (1,067,380) (785,884)

Changes to prior year estimates 416,758 748,223

Liability - June 30, 2021 1,498,034 2,371,795

Claims incurred 291,336 218,036

Claims payments (1,263,384) (807,336)

Changes to prior year estimates 570,346 681,962

Liability - June 30, 2022 1,096,332 2,464,457

Year ending June 30 Governmental Activities2023 $ 50,0002024 50,0002025 50,000Total minimum lease payments 150,000Less: amount representing interest (3,958)Present value of minimum lease payments $ 146,042

2. Operating lease

The government leases buildings to provide a facility for the Senior Center and to pro-vide handicapped-accessible office space for its Building Department and Parking De-partment. Total costs for the leases were $555,947 for the year ended June 30, 2022. Thefuture minimum lease payments for these leases are as follows:

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Year Ending Senior Building ParkingJune 30 Center Department 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

K. Short-term debt

The schedule below details the changes in short-term capital borrowings during the yearended June 30,2022 for both governmental and business-type activities:

The purpose of all of the short-time borrowings was to provide resources for various capitalconstruction or improvement projects. The form of financing used in all cases was bond an-ticipation notes. The amounts issued for governmental activities are accounted for in the cap-ital projects fund. The amounts issued for business-type activities relate to a single fund andare therefore reported in that single fund, the water enterprise fund.

State law requires that bond anticipation notes issued for capital purposes be converted tolong-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 re-newed for periods equivalent to the maximum life of the permanent financing, provided thatstipulated annual reductions of principal are made.

67


Originalissue

Interestrate

BalanceJuly 1, 2021 Issues Redemptions

BalanceJune 30, 2022

Governmental activities:

-$000,052$-$000,052$%06102retaehTytinummoC

Rolling Stock Acquisition 2018 3% 603,250 - 301,625 301,625

Single Space Electronic Parking Meters 2018 3% 140,000 - 70,000 70,000

Skatium lce Rink Floor Renovation 2021 3% 125,000 - - 125,000

Library Roof Replacement 2021 3% 50,000 - - 50,000

Sanitary Sewer Reconstruction 2022 2% - 135,775 - 135,775

000,052-000,052-%22202sniarDretaWmrotS

Municipal Parking Structure Rehab 2022 2% - 350,000 - 350,000

Renovations to Fire Facilities 2022 2% - 350,000 - 350,000

008,757,1-008,757,1-%22202noitcurtsnoceRteertS

Parking Lot Renovation 2022 2% - 100,000 - 100,000

000,521-000,521-%22202dnuorgyalPrelwaL

Municipal Parking Structure Rehab 2022 2% - 300,000 - 300,000

Rolling Stock-Heavy Duty Vehicles 2022 2% - 1,547,000 - 1,547,000

Public Safety Radio System Phase 2022 2% - 525,000 - 525,000

052,680,2$ $ 5,440,575 $ 621,625 $ 6,905,200

Business-type activities:

Howard Street Pump Station Upgrades 2019 3% 187,500 - 62,500 125,000

Water Transmission Facilities 2022 2% $ - $ 1,500,000 $ - 1,500,000

005,781$ $ 1,500,000 $ 62,500 $ 1,625,000

Total short-term capital borrowings $ 2,273,750 $ 6,940,575 $ 684,125 $ 8,530,200

L. Long-Term Liabilities

General Obligation Bonds

The government issues general obligation bonds to provide funds for the acquisitionand construction of major capital facilities. General obligation bonds have been issuedfor both governmental and business-type activities. General obligation bonds are directobligations and pledge the full faith and credit of the government. These bonds gener-ally are issued as serial bonds with equal amounts of principal maturing each year withmaturities that range from 5 to 20 years. General obligation bonds outstanding at June30, 2022 are as follows:

68


Governmental Activities: Interest Sale Original Rates to Final Outstanding General Obligation Bonds Date Borrowing Maturity Maturity 30-Jun-09Public Improvements 2011 $3,035,000 4.60-4.70% 2010 $ 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 (Library) 2017 1,075,000 4.00-4.50 2024 879,000


Public Improvements (Library) 2018 2,700,000 3.50-4.25 2025 2,324,568


Public Improvements (Refunding) 2020 12,470,000 4.00-5.00 2022 12,280,000


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 BondsSaleDate

Original Borrowing

Interest Rates to Maturity

Final Maturity

Outstanding June 30, 2022

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

4.503.50-3.60 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

$ 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

Special Assessment Bonds

The government also issued special assessment debt in 2022 to provide funds for theconstruction of streets in new residential developments. These bonds will be repaidfrom amounts levied against the property owners benefited by this construction. Thoseamounts, including interest, are 100 percent pledged to pay the scheduled principal andinterest payments on the special assessment bonds. In the event that a deficiency existsbecause of unpaid or delinquent special assessments at the time a debt service paymentis due, the government must provide resources to cover the deficiency until other re-sources, for example, foreclosure proceeds, are received. The bonds have a stated rate ofinterest of 6.5 percent and are payable in equal installments of principal over the next 10years.

Pension Related Debt

The Statewide Local Government Employees’ Retirement System (SLGERS) charges toparticipating governments increased significantly in 2016. Consequently, the State Leg-islature enacted new statutes which enabled employers to amortize a portion of theirnext three years’ bills. For fiscal year 2018, contributions in excess of seven percent ofcovered payroll were eligible for amortization. For fiscal years 2019 and 2020, contribu-tions in excess of 9.5% and 10.5% of covered payroll, respectively, were eligible foramortization. The government can elect to accelerate its amortization payments to thestate. Below are the original amounts, activity during the year, and June 30, 2022 bal-ances for the SLGERS contributions the government has chosen to amortize:

During the fiscal year ended June 30, 2022, the amortization payments were charged toexpenditures in the general fund and to the government-wide financial statements forgovernmental activities.

69


Fiscal Contribution

Amount Amortized

Balance07/01/21 Payments

Balance06/30/22

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

Governmental Activities:

InterestSale Original Rates to Final OutstandingDate Borrowing Maturity Maturity 30-Jun-09

Special assessmentbonds 2022 $4,700,000 6.5 2032 $4,700,000

Advance Refunding

The government issued $5,810,000 in public improvement bonds with interest ratesranging from 2.0% to 4.0%. The proceeds were used to advance refund $5,730,000 of out-standing 2011, 2012 Series B, 2013 Series A, and 2013 Series B public improvement bondswhich 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 andother issuance costs) were deposited in an irrevocable trust with an escrow agent to pro-vide funds for the future debt service payment on the refunded bonds. As a result, the2011, 2012 Series B, 2013 Series A, and 2013 Series B public improvement bonds are con-sidered defeased and the liability for those bonds has been removed from the statementof 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 theremaining 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 reduceits total debt service payments over 6 years by $327,142 and to obtain an economicgain (difference between the present values of the debt service payments on the oldand new debt) of $276,773.

Prior year defeasance of debt. In prior years, the government defeased general obliga-tion public improvement bonds by placing the proceeds of the new bonds in an irrevo-cable trust account to provide for all future debt service payments on the old bonds. Ac-cordingly, the trust account assets and the liability for the defeased bonds are not in-cluded in the government’s financial statements. At June 30, 2022, $12,230,000 of de-feased bonds remain outstanding.

Legal debt margin

The government is subject to a debt limit that is 7 percent of the five-year average of thefull 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 91,425,200which 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 asfollows:

70


The liability for pension-related debt is fully liquidated by the general fund. For com-pensated absences, the general fund normally liquidates 60 percent, and the Library,Housing Grants, and Garage funds normally liquidate 15 percent, 10 percent, and 10percent, respectively. The remaining 5 percent is liquidated by other governmentalfunds and the internal service fund. This is the first fiscal year that the government hasreported a net other postemployment benefit obligation. In the coming years, this liabil-ity is expected to be liquidated by the General Fund, Library Fund, Housing GrantsFund, and Garage Fund. The entire claims liability is reported in the risk managementinternal service fund and will be liquidated by that fund.

The debt service requirements for the government’s bonds, loans, and notes are as fol-lows:

71


Balance

July 1, 2021 Additions Reductions

Balance

June 30, 2022

Due Within

One Year


Bonds payable

General obligation bonds $77,491,180 $5,810,000 ($10,448,317) $72,852,863 $4,386,166

Special assessment bonds - 4,700,000 - 4,700,000 470,000

Premium 503,327 249,914 (83,226) 670,015 -

Discount - (10,000) 1,000 (9,000) -

Total bonds payable 77,994,507 10,749,914 (10,530,543) 78,213,878 4,856,166

Pension related debt 5,437,453 - (697,896) 4,739,557 693,113

Capital leases - 146,042 - 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

Net other postemployment benefit obligation - 10,609,000 - 10,609,000 -

Governmental activities long-term liabilities 92,165,863 24,664,851 (14,272,769) 102,557,945 10,403,155

Balance

July 1, 2021

Additions Reductions

Balance

June 30, 2022

Due Within

One Year

Business-type Activity:

General obligation bonds $11,069,820 $ - ($1,027,683) $10,042,137 $938,967

Compensated absences 68,386 5,188 (13,677) 59,897 5,990

Net other postemployment benefit obligation - 259,000 - 259,000 -

Business-type activities long-term liabilities $11,138,206 $264,188 ($1,041,360) $10,361,034 $944,957

72



Year ending Bonds

Pension Related

Debt

June 30, Principal Interest Principal

2023 $ 4,386,166 $ 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 - -

Total $ 72,852,863 $ 29,687,872 $ 4,739,557 $1,000,000

Year ending Special Assessment Bonds Total Governmental Activities

June 30, Principal Interest Principal Interest

2023 $ 470,000 $ 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

Total $ 4,700,000 $ 1,680,000 $ 82,292,420 $ 31,367,872

Business-Type Activities

Year ending Bonds Total Primary Government Debt

June 30, Principal Interest Principal Interest

2023 $938,967 $403,143 $ 6,488,246 $ 3,789,866

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 - - 4,544,133 505,393

Total $10,042,137 $3,250,968 $92,334,557 $ 34,618,840

M. Fund balance

Minimum fund balance policy. The governing council has adopted a financial policy to main-tain a minimum level of unrestricted fund balance (the total of the committed, assigned, andunassigned components of fund balance) in the general fund. The target level is set at twomonths of general fund annual revenues (approximately 16.7%). This amount is intended toprovide fiscal stability when economic downturns and other unexpected events occur. Iffund 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 re-plenish the amount to the minimum target level. Generally, replenishment is to occur withina three-year period.

Stabilization arrangement. On June 18, 2021, during the prior fiscal year the governing coun-cil adopted a resolution to establish and maintain a revenue stabilization reserve (“rainy dayfund”) in the general fund. The principal resource for this reserve is a one-quarter of one per-cent tax on gross taxable retail sales (.25% sale tax). Other resources may be directed for inclu-sion in the reserve through the adoption of a resolution or ordinance by the governingcouncil.

Expenditure of the amounts in the revenue stabilization reserve may occur only when spe-cific circumstances exist. The adopted resolution directs that these resources may be used tomitigate actual revenue shortfalls (when compared to estimated revenues) of greater thanten percent but only if the projected ending unrestricted fund balance in the general fund isless 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 themayor and then approved by a two-thirds vote of the governing council. If the use of re-sources is, in fact, allowed the maximum that can be used is limited to the amount that wouldbring the ending unrestricted fund balance to one month of the current year’s budgeted ex-penditures (approximately 8.3%).

N. Interfund receivables and payables

The composition of interfund balances as of June 30, 2022 is as follows:

The outstanding balances between funds result mainly from the time lag between the datesthat (1) interfund goods and services are provided or reimbursable expenditures occur, (2)transactions are recorded in the accounting system, and (3) payments between funds aremade. These amounts also include balances of working capital loans made to several

73


Due to/from other funds:

Receivable Fund Payable Fund AmountGeneral Total nonmajor governmental funds $ 145,000Capital projects General 335,000Transit Nonmajor governmental fund –

Youth development and recreation 12,000Total $ 492,000

nonmajor governmental funds which the general fund expects to collect in the subsequentyear.

The amounts payable to the general fund relate to working capital loans made to severalnonmajor governmental funds. None of the balance is scheduled to be collected in the subse-quent year.

O. Interfund transfers

The composition of interfund transfers for the year ended June 30, 2020 is as follows:

During the year, transfers are used to 1) move revenues from the fund with collection autho-rization to the debt service fund as debt service principal and interest payments become dueand 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-timetransfers:

1) A transfer of $1,200,000 from the general fund to the capital projects fund to fulfill thegeneral fund’s commitment to participate in a special assessment project to constructstreets in the government’s new housing development.

2) $846,000 of special assessment bond proceeds from the capital projects fund to the debtservice fund to establish a mandatory reserve.

3) $251,080 returned by the capital projects fund because of a significant delay in a construc-tion project of a nonmajor governmental fund.

74


Advances from/to other funds

Receivable Fund Payable Fund AmountGeneral Nonmajor governmental funds 290,148

Interfund transfers:

Transfer in:

Enterprise

fund

Generalfund

Capital projects fund

Debtservice fund

Nonmajorgovernmental

funds Transit fund Total

Transfer out:

General fund - 1,210,000 - 1,615 3,728,209 4,939,824

Capital projects fund

20,944 - 942,109 251,080 - 1,214,133

Debt service fund - 621,625 - - - 621,625

Nonmajor governmental funds - - 284,231 - - 284,231

Total

20,944 1,831,625 1,226,340 252,695 3,728,209 7,059,813

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:

The schedule below details the changes in the Agency's short-term non-capital borrow-ings during the year ended June 30, 2022:

The taxable revenue anticipation note was issued on May 27, 2022, and matures on De-cember 29, 2022. Interest expense of $136,000 for the year was recorded by the Agency.

2. Cable TV Commission

Capital assets activity for the Cable TV Commission for the year ended June 30, 2022,was as follows:

75


Balance

July 1, 2021

Increases

Decreases Balance

June 30, 2022Capital assets, being depreciated: Buildings and facilities $345,616 $ - $ - $345,616 Machinery and equipment 320,730 - - 320,730 Rolling stock 32,513 - - 32,513

Total capital assets being depreciated 698,859 - - 698,859

Less accumulated depreciation for: Buildings and facilities 214,284 13,825 - 228,109 Machinery and equipment 213,172 25,518 - 236,690 Rolling stock 24,383 3,251 - 27,634

Total accumulated depreciation 451,839 40,594 -

492,433

Cable TV Commission capital assets, net $247,020 $40,594 $ - $206,426

Year of Original Issue

Interest Rate

Balance 07/01/21 Issues Redemptions

Balance 06/30/22

Revenue Anticipation Note 2020 2.00% $4,000,000 $4,000,000 $4,000,000 $4,000,000

Balance July 1, 2021 Increases Decreases

Balance June 30, 2022

Capital Assets-Land $ 6,601,630 $ - $ - $ 6,601,630

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 endedJune 30, 2022 is as follows:

Q. Contingencies

The government participates in various federal grant programs, the principal of which aresubject to program compliance audits pursuant to the Single Audit Act as amended. Accord-ingly, the government’s compliance with applicable grant requirements will be establishedat a future date. The amount of expenditures which may be disallowed by the granting agen-cies cannot be determined at this time, although the government anticipates such amounts, ifany, will be immaterial.

The government is a defendant in various lawsuits. Although the outcome of these lawsuitsis not presently determinable, in the opinion of the government's legal counsel, the resolu-tion of these matters will not have a material adverse effect on the financial condition of thegovernment.

R. Subsequent events

On September 17, 2022, the government issued $3,250,000 bond anticipation notes to fundvarious capital projects. The interest rate on the notes is 1.5 percent and the maturity date isSeptember 17, 2023.

76


Balance

July 1, 2021 Additions

Reductions

Balance

June 30, 2022

Due Within

One Year

Compensated absences $21,246 $4,527 ($23,507) $2,266 $1,050

Other post employment benefit

obligations

- 42,000 - 42,000 -

Total long-term liabilities $21,246 $46,527 ($23,507) $44,266 $1,050

77


Required Supplementary Information

Name of Government Public Safety Employees’ Pension Plan

Schedule of Funding Progress

Name of GovernmentGeneral Employees’ Other Postemployment Benefits Plan1

Schedule of Funding Progress

1 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.

Actuarial Valuation

Date

Actuarial Value of Assets

(a)

ActuarialAccrued

Liability (AAL) - Entry Age

(b)

Unfunded AAL (UAAL) (b-a)

Funded Ratio (a / b)

Covered Payroll (c)

UAAL as a Percentage of

CoveredPayroll

[(b-a) / c] 7/1/2021 $37,516,400 $ 42,267,100 $ 4,750,700 88.76% $10,396,800 45.69% 7/1/2020 $32,992,700 $ 42,267,100 $ 9,274,400 78.06% $10,396,800 89.20% 7/1/2019 $32,992,700 $ 38,731,600 $ 5,738,900 85.18% $ 9,896,500 57.99%

Actuarial Valuation

Date

Actuarial Value of Assets

(a)

ActuarialAccrued

Liability (AAL) - ProjectedUnit Credit

(b)

Unfunded AAL (UAAL) (b-a)

Funded Ratio (a / b)

Covered Payroll (c)

UAAL as a Percentage of

CoveredPayroll

[(b-a) / c] 7/1/2021 $ - $ 260,210,000 $ 260,210,000 $ - $ 69,485,795 374.48%

78


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 onlyearnings, 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 toexpenditures for urban concerns.

79


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81


Name of GovernmentLibrary Fund

Schedule of Revenues, Expenditures and Changes inFund Balance - Budget and ActualFor the Year Ended June 30, 2022

Final Budgeted Actual

REVENUES Property taxes $ 5,857,718 $ 5,539,162 $ (318,556) Intergovernmental 28,943 28,115 (828) Investment earnings 250 170 (80) Fees 137,500 125,330 (12,170) Miscellaneous 55,185 40,250 (14,935) Total revenues 6,079,596 5,733,027 (346,569)

EXPENDITURES Current: Culture and recreation: Personnel services 4,113,688 4,046,808 66,880 Materials and supplies 1,054,785 1,044,279 10,506 Contractual services 639,118 358,842 280,276 Total expenditures 5,807,591 5,449,929 357,662

Excess of revenues over expenditures 272,005 283,098 11,093

OTHER FINANCING SOURCES (USES) Transfers out (296,591) (284,231) 12,360 Total other financing sources (296,591) (284,231) 12,360

Net change in fund balances* $ (24,586) (1,133) $ 23,453

Fund balance-beginning 53,916 53,916 -

Fund balance-ending $ 29,330 $ 52,783 23,453

* The net change in fund balances was included in the budget as an appropriation (i.e., spenddown) of fund balance.


Variance withFinal Budget Amounts Amounts

Name of GovernmentLibrary Fund


82


Name of GovernmentDebt Service Fund


Final Budgeted Actual

REVENUES Property taxes $ 7,732,456 $ 7,935,396 $ 202,940 Investment earnings - 241,967 241,967 Special assessments 470,000 470,000 - Total revenues 8,202,456 8,647,363 444,907

EXPENDITURES Debt service: Principal 5,492,653 4,718,317 774,336 Interest 3,314,518 3,236,206 78,312 Refunding bond issuance costs 122,710 122,710 - Total expenditures 8,929,881 8,077,233 852,648

Excess (deficiency) of revenues over (under) expenditures (727,425) 570,130 1,297,555

OTHER FINANCING SOURCES (USES) Transfers in 1,226,340 1,226,340 - Transfers out (621,625) (621,625) - Refunding bonds issued 5,810,000 5,810,000 - Premium on refunding bonds issued 249,914 249,914 - Payment to refunded bond escrow agent (5,937,204) (5,937,204) - Total other financing sources and uses 727,425 727,425 -

Net change in fund balance $ - 1,297,555 $ 1,297,555

Fund balance-beginning 1,118,005 1,118,005 -

Fund balance-ending $ 1,118,005 $ 2,415,560 $ 1,297,555


Variance withFinal BudgetAmountsAmounts

Name of GovernmentDebt Service Fund


83


Name of Government

Prior Years Current Year Total Actual ProjectActual Actual to Date Authorization

REVENUESIntergovernmental-state $ 2,916,996 $ 874,480 $ 3,791,476 $ 4,850,000 Investment earnings 1,809,970 201,620 2,011,590 2,881,325 Total revenues 4,726,966 1,076,100 5,803,066 7,731,325

EXPENDITURESCapital outlay: General government 104,314 462,180 566,494 1,164,250 Public safety 1,016,896 1,465,901 2,482,797 4,378,700 Highways and streets 15,157,528 9,574,399 24,731,927 30,283,000 Sanitation 1,457,573 1,696,099 3,153,672 5,347,300 Culture and recreation 573,659 1,443,330 2,016,989 3,883,700 Total Expenditures 18,309,970 14,641,909 32,951,879 45,056,950

Deficiency of revenues (under) expenditures (13,583,004) (13,565,809) (27,148,813) (37,325,625)

OTHER FINANCING SOURCES (USES)Transfers in - 1,831,625 1,831,625 1,821,625 Ttransfers out - (1,214,133) (1,214,133) (2,846,000) General obligation bonds issued 19,650,000 - 19,650,000 33,650,000 Special assessment bonds issued - 4,700,000 4,700,000 4,700,000 Discount on special assessment debt - (10,000) (10,000) -Total other financing sources (uses) 19,650,000 5,307,492 24,957,492 37,325,625

Net change in fund balances $ 6,066,996 (8,258,317) (2,191,321) $ -

Fund balances - beginning 6,066,996 Fund balances - ending $ (2,191,321)


Capital Projects FundSchedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual

From Inception and For the Year Ended June 30, 2022

84


Internal Service Funds

Internal service funds are used to account for services provided to other departments or agenciesof the government, or to other governments on a cost-reimbursement basis.

Fleet Management Fund – to account for the government’s transportation fleet including fleet ac-quisition and disposal, preventative maintenance, repairs, and the rental of motor vehicles toother departments and related costs.

Risk Management Fund – to account for the central management and billing of workers’ compen-sation, general liability, and property damage.

85


Name of GovernmentInternal Service Funds

Combining Statement of Net PositionJune 30, 2022

TotalInternal Service

FundsASSETSCurrent assets: Cash and cash equivalents $ 93,865 $ 5,789,855 $ 5,883,720 Investments 49,747 561,539 611,286 Interest receivable 3,398 3,681 7,079 Intergovernmental receivable 129,192 - 129,192 Inventories 22,671 - 22,671 Prepaid items 37,823 - 37,823 Total current assets 336,696 6,355,075 6,691,771

Noncurrent assets: Capital assets: Buildings 87,745 - 87,745 Machinery, equipement, and vehicles 5,283,268 - 5,283,268 Less accumulated depreciation (2,466,987) - (2,466,987) Total noncurrent assets 2,904,026 - 2,904,026 Total assets 3,240,722 6,355,075 9,595,797

LIABILITIESCurrent liabilities: Accounts payable 361,794 452,229 814,023 Compensated absences 9,265 7,414 16,679 Claims and judgments - 2,174,256 2,174,256 Due to retirement system - 3,268 3,268 Total current liabilities 371,059 2,637,167 3,008,226

Noncurrent liabilities: Compensated absences 19,315 8,274 27,589 Claims and judgments - 1,386,533 1,386,533 Other post employment benefit obligations payable 25,000 36,000 61,000 Total noncurrent liabilities 44,315 1,430,807 1,475,122 Total liabilities 415,374 4,067,974 4,483,348

NET POSITIONNet investment in capital assets 2,904,026 - 2,904,026Unrestricted (78,678) 2,287,101 2,208,423

Total net position $ 2,825,348 $ 2,287,101 $ 5,112,449


Fleet Management Risk Management

86



Combining Statement of Revenues, Expenses, and Changes in Net PositionFor the Year Ended June 30, 2022


FundsOperating revenues: Charges for services: Risk management $ - $ 2,632,108 $ 2,632,108 Fleet management 1,902,063 - 1,902,063 Total operating revenues 1,902,063 2,632,108 4,534,171

Operating expenses: Personnel services 295,983 271,484 567,467 Materials and supplies 518,060 426,169 944,229 Contractual services 633,185 618,315 1,251,500 Claims - 1,761,680 1,761,680 Depreciation 373,469 - 373,469 Total operating expenses 1,820,697 3,077,648 4,898,345 Operating income (loss) 81,366 (445,540) (364,174)

Nonoperating revenues: Investment earnings 8,348 131,182 139,530

Change in net position 89,714 (314,358) (224,644)

Net position-beginning 2,735,634 2,601,459 5,337,093 Net position-ending $ 2,825,348 $ 2,287,101 $ 5,112,449


Fleet Management Risk Management

87



Combining Statement of Cash FlowsFor the Year Ended June 30, 2022


Risk Management FundsCASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 110,253 $ 1,059 $ 111,312 Receipts from interfund charges for fleet management services 1,774,063 - 1,774,063 Receipts from interfund charges for risk management services - 2,631,049 2,631,049 Payments to suppliers and providers (1,055,552) (3,171,822) (4,227,374) Payments to employees for salaries and benefits (116,315) (4,528) (120,843) Net cash provided by (used for) operating activities 712,449 (544,242) 168,207

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (639,405) - (639,405) Net cash (used for) capital and related financing activities (639,405) - (639,405)

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments (81,268) (2,357,174) (2,438,442) Proceeds from sale of investments 30,638 2,377,000 2,407,638 Interest on investments 6,125 131,230 137,355 Net cash provided by (used for) investing activities (44,505) 151,056 106,551

Net increase (decrease) in cash and cash equivalents 28,539 (393,186) (364,647)

Cash and cash equivalents, July 1 65,326 6,183,041 6,248,367 -

Cash and cash equivalents, June 30 $ 93,865 $ 5,789,855 $ 5,883,720

Reconciliation of operating Income (loss) to net Cash provided by(used for) operating activities:

Operating income (loss) $ 81,366 $ (445,540) $ (364,174)

Adjustments to reconcile operating income (loss) tonet cash provided by (used for) operating activities:

Depreciation expense 373,469 - 373,469 (Increase) in intergovernmental receivables (17,747) - (17,747) (Increase) in inventories (22,671) - (22,671) (Increase) in prepaid items (37,823) - (37,823) Increase in accounts payable 300,540 166,110 466,650 Increase in compensated absences 10,315 7,414 17,729 Increase in due to retirement system - 814 814 (Decrease) in claims and judgments payable - (309,040) (309,040) Increase in other post employment benefit obligations payable 25,000 36,000 61,000 Total adjustments 631,083 (98,702) 532,381

Net cash provided by (used for) operating activities $ 712,449 $ (544,242) $ 168,207


Fleet Management

Fiduciary Funds

Agency Fund

Agency funds are used to account for short-term custodial collections on resources on behalf ofanother individual, entity, or government.

Agency fund – to account for employee payroll tax withholdings, towing and storing charges forimpounded vehicles collected on behalf of private vendors (i.e., towing companies), good faithdeposits for the use of the government’s entertainment facilities, and utility charges collected bythe government on behalf of other governments.

88


89


Name of GovernmentAgency Fund

Statement of Changes in Assets and LiabilitiesFor the Year Ended June 30, 2022

ASSETS Cash and cash equivalents $ 1,252,632 $ 57,437,061 56,859,809 $ 1,829,884 Investments 3,963 24 - 3,987 Receivables 51,624 - 734 50,890

Total assets $ 1,308,219 $ 57,437,085 $ 56,860,543 $ 1,884,761

LIABILITIES Payroll witholdings and

employer contributions 126,252 18,344,591 18,329,008 141,835 Accounts payable $ 179,951 $ 2,315,583 $ 1,890,984 $ 604,550 Deposits 992,795 2,415,841 2,280,042 1,128,594 Due to other governments 9,221 34,360,312 34,359,751 9,782

Total liabilities $ 1,308,219 $ 57,436,327 $ 56,859,785 $ 1,884,761


BalanceBalanceJune 30, 2022DeductionsAdditionsJuly 1, 2021

90


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 state-ments, note disclosures, and required supplementary information says about the gove-rnment's overall financial health.

Contents Page

Financial Trends 91-96

These schedules contain trend information to help the reader understandhow the government's financial performance and well-being have changedover 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.

91


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Expe

nses

Gov

ernm

enta

l Act

iviti

es:

Gen

eral

gov

ernm

ent

$31

,887

,579

$

28,3

17,5

71

$24

,734

,046

$

23,8

25,8

28

$22

,360

,541

$

19,9

56,4

58

$

18,4

33,4

68

$18

,430

,999

$18

,406

,311

$18

,381

,622

Publ

ic s

afet

y63

,309

,737

59

,427

,149

55

,970

,449

55

,015

,513

52

,051

,097

43

,265

,059

36,6

08,9

92

36,4

07,6

85

35

,994

,618

35,6

81,5

50H

ighw

ays

and

stre

ets

37,1

09,0

26

29,5

29,0

59

27,7

42,7

06

24,5

44,7

83

23,3

99,9

35

20,2

88,0

61

18

,859

,178

18

,758

,505

18,4

51,7

73

18

,145

,041

Sani

tatio

n10

,571

,560

9,

914,

570

10

,606

,726

10

,102

,997

9,

451,

147

9,

281,

934

8,55

2,54

6

8,50

2,18

0

8,34

8,51

3

8,24

4,84

6C

ultu

re a

nd re

crea

tion

24,7

11,5

98

27,0

23,2

65

26,6

60,6

21

25,4

04,0

83

24,4

08,6

33

22,1

33,6

56

20

,536

,559

20

,435

,264

19,8

22,3

09

19

,509

,354

Inte

rest

3,23

2,13

4

2,

838,

043

2,

550,

891

2,39

4,39

1

2,

589,

890

2,

440,

058

2,53

3,42

8

2,53

2,20

6

2,51

9,98

3

2,50

7,76

2To

tal G

over

nmen

tal A

ctiv

ities

170,

821,

634

15

7,04

9,65

8

14

8,26

5,43

8

14

1,28

7,59

5

13

4,26

1,24

3

11

7,36

5,22

6

105,

524,

171

105,

066,

839

103,

543,

507

102,

470,

175

Busi

ness

-type

Act

ivity

- W

ater

8,44

7,42

8

8,

356,

237

7,

625,

604

7,03

8,28

1

7,

060,

813

6,

174,

790

5,87

8,36

2

5,87

7,14

0

5,86

4,91

8

5,85

2,69

6Tr

ansi

t5,

974,

954

5,76

2,33

4

5,60

4,86

7

5,

382,

817

5,50

5,03

9

5,41

7,62

7

5,

195,

405

5,

173,

183

4,

950,

961

4,

693,

549

Tota

l Bus

ines

s-ty

pe A

ctiv

ities

14,4

22,3

82

14,1

18,5

71

13,2

30,4

71

12,4

21,0

98

12,5

65,8

52

11,5

92,4

17

11

,073

,767

11

,050

,323

10,8

15,8

79

10

,546

,245

Tota

l Exp

ense

s$

185,

244,

016

$

171,

168,

229

$16

1,49

5,90

9

$

153,

708,

693

$14

6,82

7,09

5

$

128,

957,

643

$

116,

597,

938

$11

6,11

7,16

2

$

114,

359,

386

$11

3,01

6,42

0

Prog

ram

Rev

enue

sG

over

nmen

tal A

ctiv

ities

:C

harg

es fo

r ser

vice

s35

,641

,828

31

,083

,487

30

,998

,539

26

,274

,895

12

,520

,972

11,2

30,3

88

11,2

25,5

00

11

,176

,612

11,1

27,7

24

Gen

eral

gov

ernm

ent

$7,

677,

948

$7,

841,

202

$

6,83

8,36

7

$

6,81

9,67

9

$

6,38

0,47

7

$6,

054,

614

$5,

770,

685

$

4,46

9,61

0

$3,

958,

855

$

3,24

8,09

9

Publ

ic s

afet

y12

,377

,439

11

,548

,967

10

,635

,881

10

,109

,547

9,

645,

217

7,

881,

501

6,48

1,42

0

5,37

9,90

5

4,36

4,75

0

3,84

9,59

4

Hig

hway

s an

d st

reet

s9,

301,

285

8,97

4,64

0

8,87

9,22

0

8,

849,

489

8,49

6,21

3

7,88

2,34

0

5,

930,

636

5,

128,

925

4,

311,

814

3,

894,

703

Sa

nita

tion

2,68

2,21

9

2,

212,

837

2,

121,

670

1,91

9,97

1

1,

725,

498

1,

450,

419

1,32

4,60

8

1,22

4,51

0

1,17

3,53

2

1,02

2,55

4

Cul

ture

and

recr

eatio

n3,

824,

583

3,56

4,18

3

3,10

8,34

9

3,

099,

854

2,62

7,49

0

2,25

2,09

7

1,

123,

039

1,

122,

550

1,

117,

661

1,

112,

772

Ope

ratin

g gr

ants

and

con

trib

utio

ns14

,019

,870

12

,827

,195

8,

982,

551

8,22

2,19

9

8,

085,

497

7,

630,

697

7,27

7,20

8

7,27

5,98

6

7,26

3,76

4

7,25

1,54

4C

apita

l gra

nts

and

cont

ribu

tions

7,80

2,83

3

5,

876,

009

3,

602,

599

3,33

4,48

4

2,

923,

455

8,

208,

645

8,25

6,42

2

8,25

5,20

0

8,24

2,97

8

8,23

0,75

6To

tal G

over

nmen

tal A

ctiv

ities

57,6

86,1

77

52,8

45,0

33

44,1

68,6

37

42,3

55,2

22

39,8

83,8

47

41,3

60,3

13

36

,164

,018

32

,856

,686

30,4

33,3

54

28

,610

,022

Busi

ness

-type

Act

ivity

-C

harg

es fo

r ser

vice

s

Wat

er9,

457,

623

8,53

5,44

4

7,83

6,34

4

6,

560,

748

5,94

6,11

1

4,98

4,37

0

4,

585,

558

4,

584,

336

4,

572,

114

4,

559,

892

T

rans

it93

0,13

1

890,

818

87

6,15

0

863,

805

84

2,35

4

820,

132

77

8,80

8

80

4,22

0

79

1,80

8

77

9,66

7O

pera

ting

gran

ts a

nd c

ontr

ibut

ions

401,

441

27

0,20

2

54,1

23

-20

3,32

4

63,4

25

40

,629

39

,407

27

,185

23

,937

Cap

ital g

rant

s an

d co

ntri

butio

ns1,

174,

511

1,25

1,68

9

515,

564

64

4,22

0

549,

912

54

,479

955,

430

683,

098

1,25

1,83

4

1,05

4,72

9To

tal B

usin

ess-

type

Act

ivity

11,9

63,7

06

10,9

48,1

53

9,28

2,18

1

8,

068,

773

7,54

1,70

1

5,92

2,40

6

6,

360,

425

6,

111,

061

6,

642,

941

6,

418,

225

Tota

l Pro

gram

Rev

enue

s$

69,6

49,8

83

$63

,793

,186

$

53,4

50,8

18

$50

,423

,995

$

47,4

25,5

48

$47

,282

,719

$42

,524

,443

$

38,9

67,7

47

$

37,0

76,2

95

$

35,0

28,2

47

Net

(Exp

ense

)/Rev

enue

Gov

ernm

enta

l Act

iviti

es$

(113

,135

,457

)

$

(104

,204

,625

)

$

(104

,096

,801

)

$

(98,

932,

373)

$(9

4,37

7,39

6)

$

(76,

004,

913)

$

(69,

360,

153)

$(7

2,21

0,15

3)

$

(73,

110,

153)

$(7

3,86

0,15

3)Bu

sine

ss-ty

pe A

ctiv

ity(2

,458

,676

)

(3

,170

,418

)

(3,9

48,2

90)

(4

,352

,325

)

(5,0

24,1

51)

(5

,670

,011

)

(4

,713

,342

)

(4,9

39,2

62)

(4

,172

,938

)

(4,1

28,0

20)

Tota

l Net

Exp

ense

$(1

15,5

94,1

33)

$(1

07,3

75,0

43)

$(1

08,0

45,0

91)

$(1

03,2

84,6

98)

$(9

9,40

1,54

7)

$

(81,

674,

924)

$

(74,

073,

495)

$(7

7,14

9,41

5)

$

(77,

283,

091)

$(7

7,98

8,17

3)

93


Nam

e of

Gov

ernm

ent

Cha

nges

in N

et P

ositi

on (c

ontin

ued )

Last

Ten

Fis

cal Y

ears

(acc

rual

bas

is o

f acc

ount

ing)

Fis

cal Y

ear

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

Gen

eral

Rev

enue

sG

over

nmen

tal A

ctiv

ities

:Pr

oper

ty T

axes

45,0

60,1

05

43,7

05,3

94

41,5

62,0

32

$40

,677

,976

$

39,5

60,9

91

$36

,187

,978

$32

,443

,742

32

,442

,520

32,4

30,2

98

32

,418

,076

Sale

s Ta

x44

,368

,865

45

,962

,388

44

,853

,309

42

,886

,257

41

,429

,781

37

,698

,714

34,4

13,4

40

34,4

12,2

18

34

,399

,996

34,3

87,7

74Fr

anch

ise

taxe

s1,

537,

833

1,52

4,32

2

1,39

3,94

5

1,

490,

316

1,37

3,28

6

1,36

5,27

1

1,

151,

473

1,

150,

251

1,

138,

029

1,

125,

807

Inte

rgov

ernm

enta

l-unr

estr

icte

d1,

753,

982

1,69

2,60

0

11,1

29,9

81

10,4

48,6

92

9,39

8,19

5

7,11

2,14

3

7,

136,

794

7,

135,

572

7,

123,

350

7,

111,

128

Unr

estr

icte

d in

vest

men

t ear

ning

s3,

440,

745

3,40

2,93

3

2,60

3,89

0

2,

128,

736

1,98

3,33

1

671,

908

1,

845,

553

1,

843,

109

1,

818,

665

1,

794,

221

Gai

n (lo

ss) o

n sa

le o

f cap

ital a

sset

s22

,276

-

-

-

-

-

-

-

-

-

Mis

cella

neou

s2,

322,

567

3,79

9,42

2

9,08

8,61

0

5,

373,

620

3,05

6,18

7

1,61

6,92

1

88

2,13

9

88

0,91

7

86

8,69

5

85

6,47

3Tr

ansf

ers

in/o

ut(3

,728

,209

)

(3

,604

,638

)

(4,2

83,0

68)

(3

,922

,228

)

(4,3

24,1

24)

(4

,415

,778

)

(3

,514

,234

)

(3,6

45,7

89)

(2

,917

,587

)

(2,6

41,7

85)

Spec

ial I

tem

-

-

-

-

-

3,30

4,86

1

-

-

-

-T o

tal g

ener

al re

venu

es, t

rans

fers

, and

spe

cial

item

94,7

78,1

64

96,4

82,4

21

106,

348,

699

99,0

83,3

69

92,4

77,6

47

83,5

42,0

18

74

,358

,907

74

,218

,798

74,8

61,4

46

75

,051

,694

Busi

ness

-type

Act

ivity

-U

nres

tric

ted

inve

stm

ent e

arni

ngs

264,

891

15

6,92

8

172,

708

16

3,29

8

156,

366

12

0,83

5

167,

795

166,

573

154,

351

142,

129

Gai

n (lo

ss) o

n sa

le o

f cap

ital a

sset

s-

-

-

-

-

-

-

-

-

-M

isce

llane

ous

-

261,

749

11

2,03

3

201,

767

22

7,22

7

25,1

19

25

,413

24

,191

11

,969

(2

53)

Tran

sfer

s in

/out

3,72

8,20

9

3,

604,

638

4,

283,

068

3,92

2,22

8

4,

324,

124

4,

415,

778

3,51

4,23

4

3,64

5,78

9

2,91

7,58

7

2,64

1,78

5To

tal B

usin

ess-

type

act

iviti

es3,

993,

100

4,02

3,31

5

4,56

7,80

9

4,

287,

293

4,70

7,71

7

4,56

1,73

2

3,

707,

442

3,

836,

553

3,

083,

907

2,

783,

661

Tota

l pri

mar

y go

vern

men

t$

98,7

71,2

64

$10

0,50

5,73

6

$

110,

916,

508

$10

3,37

0,66

2

$

97,1

85,3

64

$88

,103

,750

$78

,066

,349

$

78,0

55,3

51

$

77,9

45,3

53

$

77,8

35,3

55

Cha

nge

in N

et A

sset

sG

over

nmen

tal A

ctiv

ities

$(1

8,35

7,29

3)

$(7

,722

,204

)

$2,

251,

898

$15

0,99

6

$(1

,899

,749

)

$7,

537,

105

$4,

998,

754

$

2,00

8,64

5

$1,

751,

293

$

1,19

1,54

1Bu

sine

ss-ty

pe A

ctiv

ity1,

534,

424

852,

897

61

9,51

9

(65,

032)

(3

16,4

34)

(1,1

08,2

79)

(1,0

05,9

00)

(1

,102

,709

)

(1,0

89,0

31)

(1

,344

,359

)To

tal C

hang

e in

Net

Ass

ets

$(1

6,82

2,86

9)

$(6

,869

,307

)

$2,

871,

417

$85

,964

$

(2,2

16,1

83)

$

6,42

8,82

6

$

3,99

2,85

4

$90

5,93

6

$

662,

262

$(1

52,8

18)

94


Nam

e of

Gov

ernm

ent

Fund

Bal

ance

s of

Gov

ernm

enta

l Fun

dsLa

st T

en F

isca

l Yea

rs(m

odif

ied

accr

ual b

asis

of a

ccou

ntin

g)

Fi

scal

Yea

r20

2220

2120

2020

1920

1820

1720

1620

1520

1420

13

Gen

eral

Fun

dN

onsp

enda

ble

$1,

144,

885

1,11

2,36

7

1,15

8,20

8

1,

116,

199

1,16

5,58

7

1,19

2,63

7

1,17

4,23

2

1,14

9,20

2

1,

181,

721

1,17

5,13

0C

omm

itted

407,

377

-

-

-

-

-

-

-

-

-

Ass

igne

d2,

808,

387

6,13

4,93

8

1,71

4,64

9

51

0,46

9

1,18

9,41

2

1,14

3,72

5

522,

315

498,

256

97

9,81

2

835,

217

Una

ssig

ned

15,4

42,0

19

21

,125

,121

27,1

20,7

81

24,4

70,4

40

28,0

52,0

72

25,7

28,9

70

18,5

02,7

40

25

,907

,004

24

,151

,591

13,3

42,1

27To

tal g

ener

al fu

nd$

19,8

02,6

68

$

28,3

72,4

26

$

29,9

93,6

38

$26

,097

,108

$

30,4

07,0

71

$28

,065

,332

$

20,1

99,2

87

$

27,5

54,4

62

$26

,313

,124

$15

,352

,474

All

othe

r gov

ernm

enta

l fun

d sN

onsp

enda

ble

$10

,614

$10

,000

$10

,527

$25

0

$-

$

-

$94

8

$

$21

5

$

-Re

stri

cted

9,19

9,45

9

12

,982

,560

12,5

08,0

40

9,52

3,09

4

10

,801

,837

9,

868,

768

13

,478

,541

15,8

84,5

73

9,96

3,08

3

9,

012,

351

Com

mitt

ed:

1,57

2,77

6

37

2,27

6

29

8,46

8

298,

468

14

7,68

5

14

7,68

5

-

-

-

-A

ssig

ned

-

-

-

-

-

3,62

4,64

5

4,90

9,99

0

-U

nass

igne

d(4

,266

,321

)

-

(2,2

14,0

30)

(2

22,3

15)

(3,3

15,2

20)

-

-

(2,5

93,1

89)

(9

88,7

76)

-

Tota

l all

othe

r gov

ernm

enta

l fun

ds$

6,51

6,52

8

$

13,3

64,8

36

$

10,6

03,0

05

$9,

599,

497

$7,

634,

302

$

13,6

41,0

98

$18

,389

,479

$13

,291

,384

$

8,97

4,52

2

$

9,01

2,35

1

95


Nam

e of

Gov

ernm

ent

Cha

nges

in F

und

Bala

nces

of G

over

nmen

tal F

unds

Last

Ten

Fis

cal Y

ears

(mod

ifie

d ac

crua

l bas

is o

f acc

ount

ing)

Fis

cal Y

ear

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

REV

ENU

ES

Prop

erty

taxe

s$

44,8

05,6

41

$44

,878

,064

$43

,646

,644

$41

,275

,590

$39

,970

,123

$36

,433

,998

$

34,1

37,9

25

$

30,9

42,6

76

$

29,2

96,2

39

$

28,4

98,6

15

Sale

s ta

xes

44,3

68,8

65

44,4

40,5

82

43

,221

,166

40,8

78,1

00

39

,585

,359

36,1

85,6

55

34,3

14,8

88

30

,641

,039

29,0

10,6

52

28

,223

,727

Fr

anch

ise

taxe

s1,

537,

833

1,

540,

319

1,

498,

054

1,

399,

512

1,

354,

705

1,

226,

473

1,

137,

370

1,

062,

024

1,

005,

515

96

7,84

2

Lice

nses

and

per

mits

2,64

9,88

9

4,25

3,70

7

4,71

4,64

8

4,94

7,32

1

3,46

1,69

2

2,31

9,93

7

2,74

9,72

1

3,19

3,94

3

2,19

5,94

3

2,17

3,72

1

Inte

rgov

ernm

enta

l17

,766

,027

18

,228

,591

19,4

02,0

38

18

,610

,505

18,1

46,0

71

16

,418

,321

16

,444

,995

15,6

94,9

95

14

,806

,995

13,8

06,9

96

Cha

rges

for s

ervi

ces

19,0

91,8

93

17,9

76,9

03

14

,355

,680

14,0

31,2

30

13

,346

,928

11,1

12,0

23

9,58

7,68

3

9,10

7,68

3

8,45

7,68

3

7,08

2,68

3

Fine

s an

d fo

rfei

ture

s6,

670,

562

7,

537,

158

7,

511,

149

7,

623,

848

6,

980,

147

4,

900,

776

4,

599,

093

4,

539,

093

4,

761,

315

4,

305,

760

In

vest

men

t ear

ning

s3,

831,

798

2,

131,

464

2,

436,

139

2,

018,

885

1,

085,

579

52

9,05

7

95

9,83

1

93

7,60

9

90

4,27

6

84

8,72

1

Fees

4,97

6,52

6

5,32

7,04

0

4,02

6,57

9

3,90

5,89

1

3,11

8,15

6

5,14

8,01

6

5,68

6,18

9

4,90

8,41

2

4,35

2,85

7

3,44

1,74

6

Spec

ial a

sses

smen

ts47

0,00

0

-

-

-

-

-

-

-

-

-

M

isce

llane

ous

4,97

4,42

0

6,71

1,38

3

9,95

0,67

4

6,44

4,13

3

4,42

5,30

9

6,45

1,42

3

7,54

7,76

0

4,41

4,19

8

7,52

5,53

8

5,66

2,53

5

T

otal

Rev

enue

s15

1,14

3,45

4

15

3,02

5,21

1

150,

762,

771

14

1,13

5,01

5

131,

474,

069

120,

725,

679

117,

165,

455

10

5,44

1,67

2

102,

317,

013

95

,012

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EXPE

ND

ITU

RES

Cur

rent

:

Gen

eral

gov

ernm

ent

29,7

78,6

62

27,6

97,9

82

25

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24,3

51,9

96

21

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19,8

34,1

38

18,0

01,5

73

17

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16,4

81,0

19

13

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P

ublic

saf

ety

56,7

26,6

78

55,4

82,6

93

53

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51,5

55,4

64

45

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42,0

67,7

10

37,1

57,8

71

32

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30,8

33,6

35

23

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H

ighw

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and

stre

ets

27,4

72,0

13

23,7

03,0

93

22

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19,3

60,5

50

18

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13,8

33,6

59

13,0

39,4

49

12

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11,4

78,8

94

10

,661

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S

anita

tion

8,14

0,18

7

7,98

8,69

8

7,69

8,69

8

7,13

5,92

6

7,11

3,20

6

6,81

4,19

9

6,42

9,98

5

6,06

3,31

9

6,22

1,65

2

5,32

9,98

5

Cul

ture

and

recr

eatio

n23

,030

,913

22

,490

,895

24,8

65,3

20

23

,802

,768

22,5

05,6

34

20

,330

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18

,723

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17,0

94,6

99

15

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,810

13,8

36,9

22 D

ebt S

ervi

ce:

P

rinc

ipal

4,71

8,31

7

6,32

4,08

8

6,57

7,40

7

6,29

9,24

5

6,06

0,99

5

6,85

2,56

9

6,98

5,21

7

6,63

0,34

7

5,54

9,24

5

6,27

7,02

3

Inte

rest

and

fisc

al c

harg

es3,

236,

206

2,

783,

145

2,

525,

172

2,

762,

142

2,

489,

014

2,

328,

124

2,

627,

514

2,

477,

514

2,

350,

346

2,

095,

476

R

efun

ding

bon

d is

suan

ce c

osts

272,

710

-

13

8,10

9

-

-

10

8,27

1

-

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-

- C

apita

l Out

lay

14,6

41,9

09

24,6

44,3

60

7,

567,

246

7,

863,

464

12

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16,9

34,3

01

20,5

69,8

23

7,

419,

020

9,

478,

224

18

,422

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Tot

al E

xpen

ditu

res

168,

017,

595

171,

114,

954

15

0,53

8,49

6

143,

131,

555

13

7,43

9,93

5

12

9,10

3,85

6

12

3,53

5,02

0

101,

912,

683

97

,858

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93,4

97,1

07

Exce

ss (D

efic

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y) o

f Rev

enue

s

over

Exp

endi

ture

s(1

6,87

4,14

1)

(1

8,08

9,74

3)

224,

275

(1,9

96,5

40)

(5,9

65,8

66)

(8

,378

,177

)

(6,3

69,5

65)

3,52

8,98

9

4,45

8,18

8

1,51

5,23

9

96


Nam

e of

Gov

ernm

ent

Cha

nges

in F

und

Bala

nces

of G

over

nmen

tal F

unds

(co

ntin

ued)

Last

Ten

Fis

cal Y

ears

(mod

ifie

d ac

crua

l bas

is o

f acc

ount

ing)

Fis

cal Y

ear

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

OTH

ER F

INA

NC

ING

SO

UR

CES

(USE

S)Tr

ansf

ers

i n3,

331,

604

17

,494

,976

17,5

98,1

66

16

,551

,216

12,7

50,2

96

7,

709,

375

11

,125

,659

16,3

28,9

94

6,

931,

598

7,

931,

597

Tran

sfer

s ou

t(7

,059

,813

)

(1)

(21,

099,

614)

(2

1,88

1,23

4)

(2

0,47

3,44

4)

(1

7,07

4,42

0)

(1

2,12

5,15

3)

(1

4,63

9,89

3)

(19,

974,

783)

(9

,849

,185

)

(1

0,57

3,38

2)G

ener

al o

blig

atio

n bo

nds

issu

ed-

22,8

35,0

00

8,

644,

500

3,

574,

000

6,

275,

000

9,

547,

000

7,

525,

000

5,

675,

000

8,

678,

000

2,

888,

000

Prem

ium

on

gene

ral o

blig

atio

n bo

nds

176,

222

127,

618

101,

719

Refu

ndin

g bo

nds

issu

e d5,

810,

000

-

12,4

70,0

00

-

-

8,

180,

946

-

-

18

,275

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-Pr

emiu

m o

n re

fund

ing

bond

s is

sued

249,

914

-

50

9,52

1

-

-

20

9,94

2

-

-

78

8,46

8

-

Spec

ial a

sses

smen

t bon

ds is

sued

4,70

0,00

0

-

-

-

-

-

-

-

-

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isco

unt o

n sp

ecia

l ass

essm

ent b

onds

(10,

000)

-

-

-

-

-

-

-

-

-Pa

ymen

t to

refu

nded

bon

d es

crow

age

nt(5

,937

,204

)

-

(1

2,84

1,41

2)

-

-

(8

,282

,617

)

-

-

(18,

359,

248)

-

Cap

ital l

ease

146,

042

-

-

-

-

-

-

-

-

-Sa

les

of g

ener

al c

apita

l ass

ets

31,4

50

-

-

-

22

2,31

5

-

-

-

-

-

Insu

ranc

e re

cove

ries

194,

082

-

-

-

-

-

-

-

-

-

T

otal

Oth

er F

inan

cing

Sou

rces

(Use

s)1,

456,

075

19

,230

,362

4,67

5,76

3

(348

,228

)

2,30

0,80

9

5,23

9,49

3

4,11

2,48

5

2,02

9,21

1

6,46

4,63

3

246,

215

Net

cha

nge

in fu

nd b

alan

ces

b

efor

e sp

ecia

l ite

m(1

5,41

8,06

6)

1,

140,

619

4,

900,

038

(2

,344

,768

)

(3

,665

,057

)

(3,1

38,6

84)

(2

,257

,080

)

5,

558,

200

10

,922

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1,76

1,45

4

Spec

ial i

tem

-

-

-

-

-

6,

256,

348

(2

)-

-

-

-

Net

cha

nge

in fu

nd b

alan

ces

$(1

5,41

8,06

6)

$

1,14

0,61

9

$4,

900,

038

$

(2,3

44,7

68)

$(3

,665

,057

)

$3,

117,

664

$

(2,2

57,0

80)

$5,

558,

200

$

10,9

22,8

21

$

1,76

1,45

4

Deb

t ser

vice

as

a pe

rcen

tage

of n

onca

pita

l exp

endi

ture

s5.

20%

6.26

%6.

41%

6.75

%6.

90%

8.22

%9.

42%

9.78

%9.

04%

11.4

6%

(1)

The

gove

rnm

ent b

egan

reco

rdin

g pr

oper

ty ta

x re

venu

es d

irec

tly in

the

fund

that

ben

efits

from

them

, rat

her t

han

tran

sfer

ring

the

reve

nues

out

of t

he G

ener

al F

und

(2)

On

Mar

ch 1

5, 2

017,

the

gove

rnm

ent s

old

park

land

for $

6,25

6,34

8.

97


Nam

e of

Gov

ernm

ent

Ass

esse

d V

alue

and

Est

imat

ed A

ctua

l Val

ue o

f Tax

able

Pro

pert

yLa

st T

en F

isca

l Yea

rsTa

xabl

eTo

tal

Ass

esse

d V

alue

Fisc

al Y

ear

One

-Thr

eeC

ondo

,Le

ssTa

xabl

eas

a P

erce

ntag

e of

Estim

ated

To

tal

Ende

dFa

mily

Co-

ops,

Tax-

Exem

ptA

sses

sed

Estim

ated

A

ctua

lD

irec

tJu

ne 3

0R

esid

ence

sA

part

men

tsC

omm

erci

alPr

oper

tyV

alue

Act

ual V

alue

Taxa

ble

Val

ueR

ate

2022

$12

1,00

5,71

9$

72,7

39,7

46$

248,

431,

682

$15

1,98

7,77

0$

290,

189,

377

2.75

%$

10,5

52,3

40,9

8214

7.48

2021

120,

796,

989

72,1

15,0

8325

3,64

8,54

115

6,65

8,20

228

9,90

2,41

12.

75%

10,5

41,9

05,8

5514

1.93

2020

120,

349,

269

72,3

09,6

9825

8,47

0,80

015

4,97

5,20

329

6,15

4,56

43.

24%

9,14

0,57

2,96

313

2.64

2019

119,

440,

434

66,3

88,3

3326

8,33

1,52

015

1,90

4,08

830

2,25

6,19

93.

54%

8,53

8,31

0,70

612

3.05

2018

118,

563,

640

64,6

79,0

8327

5,36

9,36

215

3,93

1,77

630

4,68

0,30

93.

82%

7,97

5,92

4,31

911

7.61

2017

117,

932,

903

64,1

89,8

6428

2,25

7,58

114

7,27

5,81

431

7,10

4,53

44.

45%

7,12

5,94

4,58

410

4.31

2016

117,

927,

223

63,7

24,1

0428

3,22

4,51

814

5,44

1,66

531

9,43

4,18

04.

71%

6,78

2,04

2,03

897

.00

2015

116,

736,

008

63,6

51,4

2928

3,44

7,39

314

5,41

0,17

431

8,42

4,65

66.

35%

5,01

4,56

1,51

291

.48

2014

115,

635,

003

63,8

25,3

0928

2,72

5,64

814

5,14

1,31

031

7,04

4,65

07.

09%

4,47

1,71

5,79

791

.48

2013

110,

803,

152

53,1

30,1

4415

2,44

0,74

0 N

/A (1

)31

6,07

4,03

67.

45%

4,24

2,60

4,51

089

.15

So

urce

: C

ount

y A

sses

sor's

Offi

ceN

ote:

Pro

pert

y in

the

coun

ty is

reas

sess

ed a

nnua

lly.

Tax

rate

s ar

e pe

r $1,

000

of a

sses

sed

valu

e.

(1)

Exem

ptio

ns re

flect

ed in

the

asse

ssed

val

uatio

n nu

mbe

rs

98


Nam

e of

Gov

ernm

ent

Prop

erty

Tax

Rat

esD

irec

t and

Ove

rlap

ping

Gov

ernm

ents

Last

Ten

Fis

cal Y

ears

O

verl

appi

ng R

ates

Nam

e of

Gov

ernm

ent (

1)

Cou

nty

Deb

tTo

tal

Ref

use

Tota

lFi

scal

O

pera

ting

Libr

ary

Serv

ice

Dir

ect

Scho

olSe

wer

D

ispo

sal

Tota

l D

irec

t and

Year

Mill

age

Mill

age

Mill

age

Rat

eD

istr

ict

Cou

nty

Dis

tric

tsD

istr

ict

Cou

nty

Ove

rlap

ping

2022

$10

3.19

$17

.70

$26

.59

147.

48$

503.

01$

102.

80$

14.

51(2

)$

9.82

$12

7.13

(2)

$77

7.61

(2)

17.

53(3

)13

0.15

(3)

780.

63(3

)

2021

141.

93-

-14

1.93

474.

6293

.22

12.9

6(2)

10.1

511

6.33

(2)

732.

88(2

)15

.75(

3)11

9.12

(3)

735.

67(3

)

2020

132.

64-

-13

2.64

443.

7788

.89

10.

32(2

)10

.24

109.

45(2

)68

5.86

(2)

13.2

9(3)

112.

42(3

)68

8.83

(3)

2019

123.

05-

-12

3.05

410.

4586

.10

9.8

2(2)

10.2

810

6.20

(2)

639.

70(2

) 1

2.43

(3)

108.

81(3

)64

2.31

(3)

2018

117.

61-

-11

7.61

375.

3082

.26

8.7

3(2)

9.75

100.

74(2

)59

3.65

(2)

10.7

5(3)

102.

76(3

)59

5.67

(3)

2017

104.

31-

-10

4.31

349.

0362

.88

7.8

0(2)

8.60

79.2

8(2)

532.

62(2

)9.

39(3

)80

.87(

3)53

4.21

(3)

2016

97.0

0-

-97

.00

326.

5354

.36

7.0

4(2)

7.86

69.2

6(2)

492.

79(2

) 9

.38(

3)71

.60(

3)49

5.13

(3)

2015

91.4

8-

-91

.48

300.

7154

.99

7.36

(2)

8.16

70.5

1(2)

462.

70(2

) 9

.82(

3)72

.97(

3)46

5.16

(3)

2014

91.4

8-

-91

.48

278.

5959

.68

7.29

(2)

8.30

75.2

7(2)

445.

34(2

)11

.14(

3)79

.12(

3)44

9.19

(3)

2013

89

.15

-

-

89.1

5

258.

81

61.4

8

7.5

7(2)

8.

34

77.3

9(2)

42

5.35

(2)

11.

34(3

)81

.16(

3)42

9.12

(3)

(1)

Dur

ing

the

curr

ent f

isca

l yea

r, th

e le

vy ra

tes

wer

e se

para

ted

for t

he li

brar

y an

d fo

r deb

t ser

vice

.(2

) Su

mm

er V

alle

y D

istr

ict

(3)

Rive

r Val

ley

Dis

tric

t

99


Name of GovernmentPrincipal Property Taxpayers

Current Year and Nine Years Ago

2022 2013Percentage Percentage

Taxable of Total Taxable of TotalAssessed Assessed Assessed Assessed

Rank Taxpayer Value Rank Value Value Rank Value

1 Mall Management Company, LP $11,079,450 1 3.82% $13,253,400 2 4.19%2 Electric Power Company 10,563,972 2 3.64 13,326,544 1 4.223 Riverrun Galleria 8,100,000 3 2.794 4532 Kostner Property LLC 4,270,000 4 1.475 RKD Realty Associates, LP 4,010,000 5 1.38 4,839,200 9 1.536 Willowbrook Plaza 3,394,800 6 1.177 Weston Group, Inc 3,275,000 7 1.138 American Telephone & Telegraph 3,125,000 8 1.08 7,939,492 6 2.519 Initech, LLC 2,200,000 9 0.7610 Verizon, Inc. 2,084,689 10 0.72

BLK Life Ins. Co. 10,350,000 3 3.27Cadillac Mall 8,610,000 4 2.72IBM 7,995,500 5 2.53Northern Properties 6,522,000 7 2.06Westhaven One 6,370,000 8 2.02State Telephone Company 3,989,894 10 1.26

$ 52,102,911 23.51% $ 83,196,030 32.75%

Source: Assessor's Office.Source: Assessor's Office.

100


Nam

e of

Gov

ernm

ent

Prop

erty

Tax

Lev

ies

and

Col

lect

ions

Last

Ten

Fis

cal Y

ears

Col

lect

ed w

ithin

the

Fisc

alTo

tal T

ax

Fis

cal Y

ear o

f the

Lev

y

Tot

al C

olle

ctio

ns to

Dat

eYe

ar E

nded

Le

vy fo

rA

mou

nt

Perc

enta

geC

olle

ctio

ns in

Am

ount

Pe

rcen

tage

Ju

ne 3

0

Fisc

al Y

ear

Col

lect

edof

Lev

ySu

bseq

uent

Yea

rsC

olle

cted

of L

evy

2022

$44,

294,

228

$43,

909,

528

99.1

3%$0

$43

,909

,528

99.1

3%20

2143

,889

,768

43,5

31,7

2299

.18%

179,

463

43,7

11,1

8599

.59%

2020

42,5

17,2

8842

,337

,304

99.5

8%13

1,82

442

,469

,128

99.8

9%20

1940

,886

,754

40,0

37,3

2297

.92%

840,

693

40,8

78,0

1599

.98%

2018

39,4

76,3

9238

,771

,019

98.2

1%69

7,10

639

,468

,125

99.9

8%20

1735

,747

,472

35,3

40,9

7898

.86%

402,

536

35,7

43,5

1499

.99%

2016

33,3

74,1

7133

,113

,787

99.2

2%25

6,64

133

,370

,428

99.9

9%20

1530

,137

,040

30,0

14,3

9699

.59%

122,

644

30,1

37,0

4010

0.00

%20

1428

,461

,997

28,4

17,3

5299

.84%

44,6

4528

,461

,997

100.

00%

2013

27,7

06,2

7227

,643

,657

99.7

7%62

,615

27,7

06,2

7210

0.00

%

Sour

ce:

Nam

e of

Gov

ernm

ent F

inan

ce D

epar

tmen

t

101


Nam

e of

Gov

ernm

ent

Rat

ios

of O

utst

andi

ng D

ebt b

y Ty

peLa

st T

en F

isca

l Yea

rs

Gen

eral

Sp

ecia

l G

ener

al

Tota

lD

ebt

Fisc

alO

blig

atio

nC

apita

l A

sses

smen

tO

blig

atio

nO

utst

andi

ngPe

rcen

tage

of

per

Year

Bond

s (1

)Le

ases

Bond

s (1

)Bo

nds

Deb

tPe

rson

al In

com

e (2

)Po

pula

tion

(3)

Cap

itaBu

sine

ss-ty

pe

G

over

nmen

tal A

ctiv

ities

:

A

ctiv

ities

2022

$73

,522

,878

$

146,

042

$

4,69

1,00

0

$

10,0

42,1

37

$

88,4

02,0

57

4.92

%57

,468

1,53

820

2177

,491

,180

-

-

11,0

69,8

20

77

,491

,180

4.

32%

57,1

001,

357

2020

60,5

29,5

69

-

-

11

,021

,931

60,5

29,5

69

3.34

%57

,079

1,06

020

1957

,905

,557

-

-

9,15

4,14

3

57,9

05,5

57

3.36

%56

,972

1,01

620

1860

,593

,966

-

-

7,18

9,73

4

60,5

93,9

66

3.61

%57

,250

1,05

820

1760

,379

,961

-

-

5,91

9,73

9

60,3

79,9

61

3.79

%56

,825

1,06

320

1657

,501

,584

-

-

5,13

6,11

6

57,5

01,5

84

3.77

%56

,216

1,02

320

1555

,279

,362

-

-

4,45

8,14

9

55,2

79,3

62

3.85

%55

,664

993

2014

54,0

67,2

51

-

-

3,

669,

056

54

,067

,251

3.

93%

54,2

9799

620

1360

,371

,744

-

-

2,88

0,20

9

60,3

71,7

44

4.68

%53

,307

1,13

3

(1)

Pres

ente

d ne

t of o

rigi

nal i

ssua

nce

disc

ount

s an

d pr

emiu

ms

(2)

Pers

onal

inco

me

is d

iscl

osed

on

page

106

(3)

Uni

ted

Stat

es C

ensu

s Bu

reau

102


Nam

e of

Gov

ernm

ent

Rat

ios

of G

ener

al B

onde

d D

ebt O

utst

andi

ngLa

st T

en F

isca

l Yea

rs

Perc

enta

ge o

f Es

timat

edFi

scal

Gen

eral

Le

ss: A

mou

nts

Act

ual T

axab

leYe

ar E

nded

Obl

igat

ion

Ava

ilabl

e in

Deb

tV

alue

of

Per

June

30

Bond

s (1

)Se

rvic

e Fu

nd (2

)To

tal

Prop

erty

(3)

Cap

ita (4

)20

22$8

3,56

5,01

5$5

25,0

00$8

3,04

0,01

50.

79%

$1,4

4520

2188

,561

,000

800,

000

87,7

61,0

000.

83%

1,53

720

2072

,583

,941

650,

000

71,9

33,9

410.

79%

1,26

020

1971

,383

,802

580,

000

70,8

03,8

020.

83%

1,24

320

1870

,048

,308

620,

000

69,4

28,3

080.

87%

1,21

320

1768

,837

,303

600,

000

68,2

37,3

030.

96%

1,20

120

1658

,716

,162

425,

000

58,2

91,1

620.

86%

1,03

720

1556

,493

,940

415,

000

56,0

78,9

401.

12%

1,00

720

1455

,281

,829

325,

000

54,9

56,8

291.

23%

1,01

220

1369

,826

,086

650,

000

69,1

76,0

861.

63%

1,29

8

Not

e: D

etai

ls re

gard

ing

the

city

's ou

stan

ding

deb

t can

be

foun

d in

the

note

s to

the

finan

cial

sta

tem

ents

(1)

This

is th

e ge

nera

l bon

ded

debt

of b

oth

gove

rnm

enta

l and

bus

ines

s-ty

pe a

ctiv

ities

, net

of o

rigi

nal i

ssua

nce

disc

ount

s an

d pr

emiu

ms

(2)

This

is th

e am

ount

rest

rict

ed fo

r deb

t ser

vice

pri

ncip

al p

aym

ents

(3)

See

the

Sche

dule

of A

sses

sed

Val

ue a

nd th

e Es

timat

ed A

ctua

l Val

ue o

f Tax

able

Pro

pert

y on

pag

e 97

for p

rope

rty

valu

e da

ta.

(4)

Popu

latio

n da

ta c

an b

e fo

und

in th

e Sc

hedu

le o

f Dem

ogra

phic

and

Eco

nom

ic S

tatis

tics

on p

age

106

103


Name of GovernmentDirect and Overlapping Governmental Activities Debt

As of June 30, 2022

Estimated Amount Debt Percentage Applicable to

Government Unit: Outstanding Applicable Primary Government School District $ 100,170,000 100.00% $100,170,000 County 708,325,064 5.19% 36,796,153

Subtotal, overlapping debt 136,966,153Name of Government direct debt 73,522,878Total direct and overlapping debt $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 geographicboundaries of the city. This schedule estimates the portion of the outstanding debt of thoseoverlapping 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-termdebt, 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.

104


Name of GovernmentLegal Debt Margin Information

June 30, 2022

Taxable Assessed EstimatedFiscal Total Taxable Value as a Percentage of ActualYear Assessed Value Estimated Actual Value Taxable Value2022 $ 290,189,377 2.75% $10,552,340,9822021 289,902,411 2.75% 10,541,905,8552020 296,154,564 3.24% 9,140,572,9632019 302,256,199 3.54% 8,538,310,7062018 304,680,309 3.82% 7,975,924,319

Total Five Year Valuation $46,749,054,825

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 72,852,863 Business-type Activities - General Obligation Debt 10,042,137 Governmental Activities - Short-term Debt - Bond Anticipation Notes 6,905,200 Business-type Activities - Short-term Debt - Bond Anticipation Notes 1,625,000Net Indebtness subject to debt limit 91,425,200

Net debt contracting margin $563,061,768

Percentage of net debt contracting margin available 86.03%

Percentage of net debt contracting power exhausted 13.97%

Last Ten Fiscal YearsPercentage of

Net DebtOutstanding Contracting

Constitutional Indebtness Margin Year Debt Limit June 30 Available2022 $ 654,486,768 $ 91,425,200 86.03%2021 606,517,218 90,834,750 85.02%2020 553,691,863 73,600,875 86.71%2019 495,927,703 71,487,700 85.59%2018 438,995,374 72,519,200 83.48%2017 386,728,897 66,299,700 82.86%2016 342,919,806 64,365,700 81.23%2015 305,609,037 64,373,139 78.94%2014 288,699,535 60,396,307 79.08%2013 278,230,257 67,976,953 75.57%

105


Name of GovernmentPledged-Revenue Coverage

June 30, 2022

Special Assessment BondsSpecial

Fiscal Assessment Debt Service Year Collections Principal Interest Coverage2022 $ 658,000 $ - (1) $ 188,000 3.5

(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.

106


Nam

e of

Gov

ernm

ent

Dem

ogra

phic

and

Eco

nom

ic S

tatis

tics

Last

Ten

Fis

cal Y

ears

Educ

atio

nLe

vel i

nYe

ars

of

Publ

icFi

scal

Med

ian

Per C

apita

Pers

onal

Form

alSc

hool

Une

mpl

oym

ent

Year

Popu

latio

n(1)

Age

(1)

Inco

me

(1)

Inco

me

Scho

olin

g (2

)En

rollm

ent (

2)R

ate(

3)20

2257

,468

37.8

$31,

241

$1,7

95,3

57,7

8814

.97,

067

7.1%

2021

57,1

0037

.931

,442

1,79

5,33

8,20

014

.97,

167

4.6

2020

57,0

7937

.631

,728

1,81

1,00

2,51

215

.06,

820

3.5

2019

56,9

7237

.830

,222

1,72

1,80

7,78

415

.16,

940

3.7

2018

57,2

5037

.929

,315

1,67

8,28

3,75

015

.36,

727

3.6

2017

56,8

2537

.828

,007

1,59

1,49

7,77

515

.46,

972

4.2

2016

56,2

1638

27,1

561,

526,

601,

696

15.5

6,86

84.

320

1555

,664

38.2

25,8

231,

437,

411,

472

15.7

6,54

64.

320

1454

,297

38.3

25,3

251,

375,

071,

525

15.8

6,54

63.

320

1353

,307

38.1

24,2

251,

291,

362,

075

15.9

6,62

23.

1

Sour

ces:

(1) U

.S. C

ensu

s Bu

reau

.

(2) A

nnua

l Sch

ool C

ensu

s of

the

Boar

d of

Edu

catio

n.

(3) S

tate

Dep

artm

ent o

f Lab

or u

nem

ploy

men

t rat

e fo

r the

Cou

nty

(not

sea

sona

lly a

djus

ted)

.

107


Name of GovernmentPrincipal Employers

Current Year and Nine Years Ago

2022 2013Percentage Percentage

of Total City of Total CityEmployer Employees Rank Employment Employees Rank EmploymentHospital Center 1,300 1 3.26% #### 1,125 1 3.38%School District 1,155 2 2.90% #### 995 2 3.22%Name of Government 1,151 3 2.89% #### 822 3 1.62%IBM 700 4 1.76% #### 352 9 0.58%Fortuno 650 5 1.63% #### -Rehabilitation Hospital 550 6 1.38% #### 498 4 1.25%Bloomingdale's 500 7 1.25% #### 462 5 1.22%Nordstrom 440 8 1.10% #### 402 8 1.16%National Economic Research 430 9 1.08% #### -Alliance Capital Management Corp. 430 10 1.08% #### -XYZ Corporation 410 7 1.19%State Mental Health Facility 422 6 1.21%Spark Electric 298 10 0.52%

7,306 18.32% 5,786 15.35%

Source: State Department of Commerce and County Planning Department

108


Nam

e of

Gov

ernm

ent

Full-

time

Equi

vale

nt E

mpl

oyee

s by

Fun

ctio

nLa

st T

en F

isca

l Yea

rs

Full-

time

Equi

vale

nt E

mpl

oyee

s as

of J

une

3020

2220

2120

2020

1920

1820

1720

1620

1520

1420

13Fu

nctio

nG

ener

al g

over

nmen

t30

130

930

931

131

131

329

630

630

231

0Pu

blic

saf

ety

P

olic

e

Offi

cers

177

176

175

187

183

185

180

177

182

176

C

ivili

ans

7674

7580

7979

7776

7875

F

ire

Fi

refig

hter

s an

d of

ficer

s12

712

512

513

413

113

212

812

613

012

5

Civ

ilian

s42

4342

4443

4443

4244

42H

ighw

ays

and

stre

ets

E

ngin

eeri

ng67

6767

4343

4141

4039

39

Mai

nten

ance

4545

4529

2828

2827

2626

Sani

tatio

n58

5859

5857

5352

5253

52C

ultu

re a

nd re

crea

tion

7675

7877

7676

8987

8684

Wat

er10

711

010

910

910

610

510

210

611

010

7Tr

ansi

t75

7472

7674

7371

7874

71To

tal

1151

1156

1156

1148

1131

1129

1107

1117

1124

1107

Sour

ces:

Var

ious

city

dep

artm

ents

109


Name of GovernmentOperating Indicators by Function

Last Ten Years

Fiscal Year2022 2021 2020 2019 2018 2017 2016 2015 2014 2013

General Government:Building permits issued 1,224 1,751 1,630 1,440 1,622 1,752 1,576 1,494 1,699 1,877

Public Safety:Number of police personnel and officers 249 245 245 245 243 242 229 229 230 219Number of arrests 4,797 4,574 4,227 4,736 4,325 3,545 2,802 2,967 2,813 3,142Number of traffic violations 23,740 25,252 23,138 26,311 20,913 16,693 14,490 17,891 10,024 9,459Number of parking violations 228,113 233,697 244,882 248,030 265,569 235,406 219,953 241,392 205,220 214,963Number of paid firefighters 165 165 165 161 158 162 162 159 167 163Number of fire emergency responses 3,825 4,197 4,372 4,163 4,106 3,829 3,346 3,351 3,339 3,441Number of fires extinguished 76 91 85 87 140 112 75 70 71 70Number of fire inspections 1,928 1,851 1,822 1,530 1,891 1,686 1,432 1,528 1,717 1,704Number of school crossing guards 24 23 23 24 24 23 23 20 22 22

Public Works:Tons collected and disposed: Solid waste 34,222 38,466 41,731 41,094 42,271 42,911 41,387 41,085 41,399 40,954 Metal 393 110 350 385 385 243 283 283 248 223 Papers 3,835 3,578 3,402 3,381 3,358 3,557 3,744 3,861 3,855 4,012 Recyclable containers 1,752 1,292 1,025 1,009 1,032 1,012 1,134 1,154 1,193 1,207 Leaves (cubic yards) 47,672 38,564 46,654 56,775 36,175 34,071 30,421 29,855 29,200 28,600Number of shade trees: Planted 130 158 175 158 59 141 159 189 162 253 Removed 217 293 712 293 272 272 297 376 349 469 Trimmed 284 374 237 374 326 326 354 381 386 516 Stumps removed 280 204 253 204 168 189 197 289 170 241Wastewater Catch basins cleaned 110 1,300 1,250 1,200 800 800 915 430 355 825 Emergency calls 200 275 253 200 250 125 100 100 100 100

Recreation and Parks 1Field permits issued 236 185 230 200 188 192 190 175 181 180Recreation permits issued 2,314 2,395 2,200 2,500 2,487 4,311 4,240 4,171 4,171 4,165Number of youth programs 298 238 226 183 211 127 94 118 115 103Number of adult programs 165 216 173 259 193 108 64 61 67 61Number for senior citizen programs 285 301 410 410 400 400 359 291 107 101

LibraryVolumes in collection 329,563 328,364 325,813 340,612 331,338 333,535 347,506 348,164 335,134 555,124

WaterAverage daily consumption (gallons) 8,270,000 8,540,000 8,525,000 8,440,000 8,530,000 8,630,000 8,626,580 8,804,290 8,975,330 9,055,800Number of metered accounts 9,541 9,546 9,528 9,527 9,492 9,455 9,440 9,418 94,040 9,373Number of fire lines 681 673 673 672 672 677 669 679 677 672

Sources: Various city departments

110


Nam

e of

Gov

ernm

ent

Cap

ital A

sset

Sta

tistic

s by

Fun

ctio

nLa

st T

en F

isca

l Yea

rs Fisc

al Y

ear

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

Gen

eral

Gov

ernm

ent:

Num

ber o

f gen

eral

gov

ernm

ent b

uild

ings

22

22

22

22

22

Publ

ic S

afet

y:N

umbe

r of p

olic

e st

atio

ns1

11

11

11

11

1N

umbe

r of f

ire

stat

ions

77

77

77

77

77

Park

ing

Dep

artm

ent:

Num

ber o

f par

king

gar

ages

76

66

66

66

66

Publ

ic W

orks

:N

umbe

r of p

ublic

wor

ks b

uild

ings

65

55

55

55

55

Mile

s of

str

eets

142.

214

214

214

014

013

513

513

513

513

5N

umbe

r of s

tree

t lig

hts

5,70

05,

700

5,70

07,

500

6,00

06,

000

6,00

06,

000

6,00

05,

600

Mile

s of

san

itary

sew

ers

127.

112

7.1

127

124.

812

4.8

124.

812

4.8

124.

812

4.8

124.

4M

iles

of s

torm

wat

er d

rain

s82

.482

.282

81.5

81.5

81.5

81.5

81.5

81.5

81.5

Recr

eatio

n an

d Pa

rks

Num

ber o

f par

ks a

nd re

crea

tion

faci

litie

s23

2323

2323

2220

1919

19A

cres

of p

arks

230.

723

0.7

230.

723

0.7

230.

722

5.7

225.

721

7.1

217.

121

7.1

Wat

erM

iles

of w

ater

mai

ns15

8.4

158.

215

8.1

158.

115

8.1

157.

415

7.8

157.

815

7.8

155.

5N

umbe

r of f

ire

hydr

ants

1,77

21,

770

1,76

91,

767

1,76

71,

762

1,76

21,

762

1,76

21,

759

Sour

ces:

Var

ious

city

dep

artm

ents

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