FY10 Comprehensive Annual Financial Report - City of PrattvilleCITY OF PRATTVILLE,ALABAMA
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2010
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Prepared by:
Department ofFinance
John R.Morgan,III
Finance Director
INTRODUCTORY SECTION
CITY OF PRATTVILLE,ALABAMA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2010
TABLE OF CONTENTS
I.INTRODUCTORY SECTION
Table ofcontents
List ofprincipal officials
II.FINANCIAL SECTION
Independent auditors'report
Management's discussion and analysis
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement ofnet assets
Statement ofactivities
Fund Financial Statements
Balance sheet -governmental funds
Reconciliation ofbalance sheet ofgovernmental funds to statement ofnet assets
Statement ofrevenues,expenditures,and changes in fund balances -governmental funds
Reconciliation ofstatement ofrevenues,expenditures,and changes in fund balances
ofgovernmental funds to statement ofactivities
Notes to financial statements
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary comparison schedule -general fund
Notes to budgetary comparison schedules
Schedule offunding progress ofthe City's defined benefit pension plan
i -ii
iii
1- 2
3 -12
13
14
15
16
17
18
19 -44
45 -48
49
50
CITY OF PRATTVILLE,ALABAMA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2010
TABLE OF CONTENTS
SUPPLEMENTARY INFORMATION
Combining balance sheet -nonmajor governmental funds
Combining statement ofrevenues,expenditures,and changes in
fund balances -nonmajor governmental funds
Combining balance sheet -nonmajor special revenue funds
Combining statement ofrevenues,expenditures,and changes in
fund balances -nonmajor special revenue funds
Budgetary comparison schedule -state gasoline excise tax fund
Budgetary comparison schedule -state gasoline and lubricating
oil excise tax fund
ii
51
52
53
54
55
56
CITY OF PRATTVILLE,ALABAMA
LIST OF PRINCIPAL OFFICIALS
AS OF SEPTEMBER 30,2010
Mayor
CITY COUNCIL
Dean R.Argo,President
Willie Lee Wood,Jr.
Nathan Fank
Thomas Miller,President Pro Tempore
HEADS OF DEPARTMENTS
Municipal Court
City Attorney
City Prosecutor
City Clerk
Finance Director
Engineering
Streets
Sanitation
Police
Fire
Interim Vehicle Maintenance
Wastewater
Leisure Services
Human Resources
Planning
Information Technology
iii
Jim Byard,Jr.
Mike Renegar
Bill Gillespie,Jr.
Ray Boles
Judge Louis C.Colley
David McDowell
Robert E.Riddle
Gina P.Smith
John R.Morgan,III
Robby Anderson
George Williams
Edward Clinton
ChiefAlfred Wadsworth
ChiefStanley Gann
Kenny Rawlinson
Kenny DeRamus
Andrew Peterson
Lisa Thrash
Joel Duke
Brad Belden
FINANCIAL SECTION
MONTGOMERY,ALABAMA
Dothan
Prattville
Wetumpka
The Honorable Mayor and
Members ofthe City Council
City ofPrattville,Alabama
JACKSON THORNTON
A PROFESSIONAL CORPORATION www.jacksonthornton.com
INDEPENDENT AUDITORS'REPORT
.• ••••••• •••••••••••••••••••••••••••••••••••• •.
We have audited the accompanying financial statements ofthe governmental activities,the discretely
presented component units,each major fund,and the aggregate remaining fund information of the
City of Prattville,Alabama (the City),as of and for the year ended September 30,2010,which
collectively comprise the City's basic financial statements as listed in the table of contents.These
financial statements are the responsibility of the City of Prattville,Alabama's management.Our
responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards,issued by the Comptroller General of the United States.Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement.An audit includes examining,on a test basis,evidence supporting the
amounts and disclosures in the financial statements.An audit also includes assessing the accounting
principles used and significant estimates made by management,as well as evaluating the overall
financial statement presentation.We believe that our audit provides a reasonable basis for our
opinion.
In our opinion,the financial statements present fairly,in all material respects,the respective financial
position of the governmental activities,the discretely presented component units,each major fund,
and the aggregate remaining fund information ofthe City of Prattville,Alabama,as ofSeptember 30,
2010,and the respective changes in financial position,thereof for the year then ended in conformity
with accounting principles generally accepted in the United States ofAmerica.
In accordance with Governmental Auditing Standards,we have also issued our report dated
February 15,2011 on our consideration of the City of Prattville,Alabama's internal control over
financial reporting and on our tests of its compliance with certain provisions of laws,regulations,
contracts and grant agreements,and other matters.The purpose ofthat report is to describe the scope
ofour testing ofinternal control over financial reporting and compliance and the results ofthat testing
and not to provide an opinion on the internal control over financial reporting or on compliance.That
report is an integral part of an audit performed in accordance with Governmental Auditing Standards
and should be considered in assessing the results ofour audit.
A PROFESSIONAL CORPORATION CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
The management's discussion and analysis,budgetary comparison information,and trend data on
pension funding on pages 3 through 12 and pages 45 through 50 are not a required part of the basic
financial statements but are supplementary information required by Governmental Accounting
Standards Board.We have applied certain limited procedures,which consist principally of inquiries
of management regarding the methods of measurement and presentation of the required
supplementary information.However,we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the City of Prattville,Alabama's basic financial statement.The introductory
section,combining individual nonmajor fund financial statements and the nonmajor fund budgetary
comparison schedules are presented for the purposes of additional analysis and are not a required part
of the basic financial statements.The combining and individual nonmajor fund financial statements
and the nonmajor fund budgetary comparison schedules have been subjected to the auditing
procedures applied in the audit ofthe basic financial statement and,in our opinion,are fairly stated in
all material respects in relation to the basic financial statements taken as a whole.The introductory
section has not been subjected to the auditing procedures applied in the audit of the basic financial
statements and,accordingly,we express no opinion on it.
Prattville,Alabama
February 15,2011
2
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management ofthe City ofPrattville,Alabama,we offer readers of the City's financial statements
this narrative overview and analysis of the financial activities of the City for the fiscal year ended
September 30,2010.This discussion and analysis is designed to look at the City's financial
performance as a whole.We encourage readers to consider the information presented here in
conjunction with the City's financial statements.
Financial Highlights
•The City of Prattville,Alabama's liabilities exceeded its assets at September 30,
2010,by ($17,208,700)(net assets).Of the net asset balance amount,($46,256,970)
(unrestricted net assets)is the deficit balance of the City representing the
indebtedness incurred for incentive obligations including the purchase of
development property supporting the significant retail development activities within
the City.
•During the year,the City's total net assets decreased by $4,517,105,as expenses of
$37,634,635 exceeded revenues of $33,117,530.The increase in expenses over the
prior year is primarily due to the increased debt service payments and increased
personnel costs.
•In the.prior year the City implemented Government Accounting Standards Board
Statement Number 45,Accounting and Financial Reporting by Employees for Post
Retirement Benefits Other than Pensions (GASB 45).As a result,the City
recognized an expense of $548,822 in the current year to record unfunded OPEB
obligation.
•The City's personnel expenses increased by approximately 7.5%during the current
fiscal year.
•As of the close of the current fiscal year,the City's governmental funds reported
combined ending fund balances of($584,573).
•The City's total outstanding long-term debt,excluding capital leases and
compensated absences,increased during the current fiscal year.The City financed
capital outlay totaling approximately $2,670,000.
•The City refunded its 2001 and 2002 General Obligation Warrants into the 2009
General Obligation Refunding Warrant Series in the amount of $6,315,000.
Overview ofthe Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Prattville,
Alabama's basic financial statements.The City's basic financial statements comprise of three
components:(1)government-wide financial statements,(2)fund financial statements,and (3)notes to
the financial statements.In addition to the basic financial statements,this report contains other
supplementary information that will enhance the reader's understanding of the financial condition of
the City ofPrattville,Alabama.
3
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of
the City ofPrattville,Alabama's finances in a manner similar to a private-sector business.The basic
financial statements include two kinds of statements that present different views of the City,a
statement of net assets and a statement of activities.These statements included the City's three
component units,the Autauga-Prattville Public Library (the Library),the Prattville Airport Authority
(the Authority)and the Historic Prattville Redevelopment Authority (HPRA),which are separate
legal entities.Although legally separate,these "component units"are important because the City is
financially accountable for them.Complete financial statements of the Library and the Authority can
be obtained at their administrative offices located in Prattville,Alabama.
The statement of net assets presents information on all of the City's assets and liabilities,with the
difference between the two reported as net assets.Over time,increases or decreases in net assets may
serve as a useful indicator ofwhether the financial position of the City is improving or deteriorating.
The statement ofactivities presents information showing how the City's net assets changed during the
most recent fiscal year.All changes in net assets are reported as soon as the underlying event giving
rise to the change occurs,regardless of the timing of the related cash flows.Thus,revenues and
expenses are reported in this statement for some items that will only result in cash flows in future
fiscal periods.
Both statements distinguish functions of the City ofPrattville,Alabama that are principally supported
by sales taxes,property taxes,and gasoline taxes (governmental activities)from other functions that
are intended to recover all or a significant portion of their costs through user fees and charges
(business-type activities).The governmental activities reported in the statements include general
government,public safety,public works,and cultural/recreational.The City does not maintain any
business-type activities.
Fund Financial Statements
The fund financial statements provide more detailed information about the City's most significant
activities.A fund is a grouping ofrelated accounts that is used to maintain control over resources that
have been segregated for specific activities or objectives.Like other state and local governments,the
City ofPrattville,Alabama uses fund accounting to ensure and demonstrate compliance with finance-
related legal matters.All of the funds of the City of Prattville,Alabama are governmental funds
which account for the basic services of the government.Experienced readers of governmental
financial statements will find these financial statements most familiar.
Governmental funds -Governmental funds are used to account for those functions reported as
governmental activities in the government-wide financial statements.Most of the City's basic
services are accounted for in governmental funds.These funds focus on how assets can readily be
converted into cash flow in and out,and what monies are left at year-end that will be available for
spending in the next year.Governmental funds are reported using an accounting method called
modified accrual accounting,which provides a conservative short-term spending focus.As a result,
the governmental fund financial statements give the reader a detailed short-term view that helps in
determining ifthere are more or less financial resources available to finance the City's programs.The
relationship between governmental activities in the government-wide financial statements and the
governmental funds financial statements is described in a reconciliation that is a part of the fund
financial statements.
4
The City maintains four individual governmental funds.Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues,expenditures,
and changes in fund balance.Data for the other governmental funds is combined into a single,
aggregated presentation.Individual fund data for the other governmental funds is provided in the
form ofcombining statements elsewhere in this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding ofthe data provided
in the government-wide and fund financial statements.The notes to the basic financial statements
also include information regarding the City of Prattville,Alabama's progress in funding its obligation
to provide pension benefits to its employees.The notes are presented on pages 19 through 44 of this
report.
Other Information
In addition to the basic financial statements·and accompanying notes,this report also presents certain
required supplementary information concerning the City of Prattville,Alabama's budgetary
comparison schedules for the general fund.Required supplementary information can be found on
pages 45 through 50 ofthis report.
The combining statements referred to earlier in connection with the non-major governmental funds
are presented immediately following the required supplementary information and can be found
beginning on page 51.
Government-Wide Financial Analysis
The City's condensed statement ofnet assets as ofSeptember 30,2010 and 2009,derived from the
government-wide statement ofnet assets is presented below.
GOVERNMENTAL
ACTIVITIES
Current and other assets
Capital assets,net ofdepreciation
Restricted assets
Total assets
Long-term liabilities outstanding
Other liabilities
Total liabilities
Net assets:
Invested in capital assets,net ofrelated debt
Restricted
Unrestricted
Total net assets
5
$4,755,426
46,198,870
233,307
51,187,603
62,113,513
6,282,790
68,396,303
28,197,019
851,251
(46,256,970)
$(17,208,700)
$5,732,858
44,017,250
2,779,320
52,529,428
60,356,777
4,864,246
65,221,023
27,913,767
3,761,598
(44,366,960)
$(12,691,595)
The largest component of the City's net assets as of September 30,2010 reflects its investment in
capital assets (Le.land,buildings,furniture and equipment,infrastructure,etc.);less any related
outstanding debt used to acquire those assets.The City uses these capital assets to provide services to
citizens;consequently,these assets are not available for future spending.Although the City's
investment in its capital assets is reported net of related debt,it should be noted that the resources
needed to repay this debt must be provided from other resources, since the capital assets themselves
cannot be used to liquidate these liabilities.The City's capital assets,net of accumulated
depreciation,at September 30,2010 increased by $2,181,620 from the prior year primarily due to
current year additions.
As noted earlier in this discussion,changes in net assets over time can be one of the best and most
useful indicators of the City's financial position.The City of Prattville,Alabama's total liabilities
exceeded assets by ($17,208,700).The decrease in net assets is attributed to the utilization of fund
reserves necessary to fund current expenditures.
A portion of net assets is restricted,or has restrictions on how they may be used.Governmental
activities restricted net assets totaled $851,251 at September 30,2010 and are restricted for use in
public capital projects and debt service.The remaining balance of unrestricted net assets generally
may be used to meet the City's ongoing obligations.The City,at September 30,2010,reported a
deficit balance in unrestricted net assets in governmental type activities of ($46,256,970),of which
$43,420,000 is due to outstanding general obligation warrants that were issued to finance economic
development incentive obligations for retail development within the City.It is anticipated the
governmental revenues generated from the retail growth will provide the primary source of revenue
for repayment ofthis debt.
6
The following presents the City's condensed statement of activities for the fiscal years ended
September 30,2010 and 2009 as derived from the government-wide statement of activities.Over
time,increases and decreases in net assets measure whether the City's financial position is improving
or deteriorating.During the fiscal year,the net assets of the governmental activities decreased by
$4,517,105,primarily due to the recognition of the post employment benefit obligation of $548,822,
depreciation expense of$2,338,270,and the deficit from current year operations.
CITY OF PRATTVILLE,ALABAMA
STATEMENT OF ACTIVITIES
GOVERNMENTAL
ACTIVITIES
Revenues:
Program revenues:
Charges for services
Operating grants,capital grants,and contributions
Total program revenues
General revenues:
Sales tax
Property tax
Motor fuel taxes
Intergovernmental revenues
Investment earnings and miscellaneous
Total general revenues
Total revenues
Expenses:
General government
Public works
Public safety
Culture and recreation
Debt service
Total expenses
Decrease in net assets
Net assets -beginning
Net assets -ending
7
$10,840,248
2,329,230
13,169,478
16,796,679
2,500,129
240,547
410,697
19,948,052
33,117,530
9,124,172
8,755,792
14,719,827
2,449,184
2,585,660
37,634,635
(4,517,105)
(12,691,595)
$(17,208,700)
$10,293,536
2,351,405
12,644,941
15,890,723
2,481,450
238,361
9,159
426,071
19,045,764
31,690,705
8,093,740
8,005,500
13,401,417
2,549,480
2,445,024
34,495,161
(2,804,456)
(9,887,139)
$(12,691,595)
8
Expenses and Program Revenues for Governmental Activities
Governmental activities decreased the City of Prattville, Alabama’s net assets by $4,517,105 for
fiscal year 2010. A key element of the decrease in net assets is the increase in expenses from the
prior year as follows:
• Revenues from recurring sources increased by approximately $600,000 due to the
increase in sanitation fees.
• Personnel expenditures increased over the prior year by approximately 7.5% which
increased all functional expense categories.
• The increase in public works expenses by $750,292, is due to the Cooters Pond project
and the Autauga Levee rehabilitation project, which were partially funded by a FEMA
grant. This increase is also due to some cost associated with road resurfacing.
• Public safety expenses increased over the prior year by $1,318,410, primarily due to the
increase in personnel expenses.
• General government expenses increased $1,030,432 due to the difference in reporting
sales tax incentives in the current year and prior year. In the current year, sales tax
incentives of $835,933 were reported as a general government expense. In the prior year,
sales tax incentives of $546,170 were included as a reduction in sales tax revenue.
-
2,000,000.00
4,000,000.00
6,000,000.00
8,000,000.00
10,000,000.00
12,000,000.00
14,000,000.00
16,000,000.00
General government Public safety Public works Culture and recreation Interest on long-term
debt
Expenses and Program Revenue - Governmental Activity
2010 Expenses
2010 Revenues
2009 Expenses
2009 Revenues
9
Program and General Revenues for Governmental Activities
33%
51%
7%
7%
1%0%
1%
0%
Revenues By Source - Governmental Activities - FYE 2010
Charges for services
Sales tax
Property taxes
Operating grants & contributions
Motor fuel taxes
Intergovernmental revenues
Miscellaneous
Investment earnings
33%
50%
8%
7%
1%
0%
1%
0%
Revenues By Source - Governmental Activities - FYE 2009
Charges for services
Sales tax
Property taxes
Operating grants & contributions
Motor fuel taxes
Intergovernmental revenues
Miscellaneous
Investment earnings
Financial Analysis of the City’s Funds
As noted earlier, the City of Prattville, Alabama uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements.
Governmental funds - The focus of the City’s governmental funds is to provide information on near-
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the City’s financing requirements. Specifically, unreserved fund balance can be a useful measure of a
government’s net resources available for spending at the end of the fiscal year. The general fund is
the chief operating fund of the City of Prattville, Alabama.
As of September 30,2010,governmental funds reported a combined ending fund balance of
($584,573),a decrease of $5,109,019 in comparison with prior year balance.Of this balance
$1,520,339 has been reserved to indicate that it is not available for new spending because it has
already been committed for capital projects,debt service,special revenues,and other restricted
purposes.
The fund balance of the general fund decreased $2,218,551 during the current fiscal year after other
financing sources including fund transfers.Total revenue increased $1,745,760 as compared to the
prior year.The most significant increase came from the increase in amount reported as sales tax
revenue of$905,956.The increase in the amount reported as sales tax revenue is due to how sales tax
incentives were reflected in the current and prior years.Sales tax incentives were included as a
general government expense in the current year and were included as a reduction in sales tax revenue
in the prior year.The increase in charges for fees and services in the amount of $658,911 was the
result of an increase in sanitation fees.There was also an increase in income from grants.Total
expenses increased $2,298,570 as compared to the prior year.General government expenses
increased $1,232,760,which can be contributed to the way that sales tax incentives were reported in
the current and prior years,as previously mentioned.There was also an increase in public safety
expenses of$I,033,400,which were primarily personnel costs.
Capital Assets and Long-term Debt Administration
Capital assets -The City of Prattville,Alabama's investment in capital assets for its governmental
activities as of September 30,2010 was $46,198,870 (net of accumulated depreciation).This
investment in capital assets includes land,infrastructure,buildings,improvements,construction in
progress,vehicles,and machinery and equipment.
Major capital asset additions during the year include:
•Investment in infrastructure of $1,385,000 resulting from donated infrastructure from
residential developments.
•Purchase of vehicles of $730,116 including the purchase of one pumper truck totaling
$449,190.
•Purchase of building improvements of $1,747,765 including $1,736,265 for an energy
efficiency project.
•Purchase ofoffice,non-office,and computer equipment of$525,770.
10
CITY OF PRATTVILLE,ALABAMA
CAPITAL ASSETS
GOVERNMENTAL
ACTIVITIES
Land
Construction in progress
Buildings and building improvements
Land improvements
Vehicles
Office,non-office,and computer equipment
Infrastructure
Total
$
$
2,661,060
547,182
10,713,673
9,134,531
7,484,599
6,210,484
31,042,242
67,793,771
Long-term debt -As of September 30,2010,the governmental activities had total debt outstanding of
$62,113,513.
Outstanding debt:
Warrants and other notes payable
Capital lease payable
Post retirement benefits other than pensions
Compensated absences
Total
$
$
58,503,021
1,239,844
1,081,342
1,289,306
62,113,513
The City of Prattville,Alabama's total debt outstanding increased by $1,756,736 during the current
fiscal year.This increase is net of debt reductions for payments made in accordance with regularly
scheduled maturity dates.Additional information on the City's debt can be found in Note 7 of the
financial statements.
Budgetary Highlights for the fiscal year ending September 30,2010
The actual operating revenues for the general fund were less than the budgeted amount by
$1,617,940,or 5%.This is primarily due to revenues from taxes which were $1,217,692 less than the
budgeted amount.Of this amount,general sales tax revenues were $1,189,071 less than the budgeted
amount,and lodging tax revenues were $86,933 less than budgeted.
The actual operating expenditures for the general fund were more than the budgeted amount by
$2,367,130 or 8%.The individual sources within the expenses fluctuated both positively and
negatively.
11
Economic Factors and Year 2011 Budget
Economic conditions for the City of Prattville,Alabama remain stable in the current environment.
•The City relies on taxes,fees,fines,and charges for services to fund their
governmental activities.The primary source of revenue is sales taxes,which
comprised approximately 54.29 %of general fund revenues in fiscal year 2010.In
the current economic climate,the City has maintained sales tax revenues comparable
to the prior year to fund current operations.
•The unemployment rate for Autauga County,where the City of Prattville,Alabama is
located,is currently 8.8%,which is a decrease over the prior year.The
unemployment rate compares favorably to the state's current unemployment rate of
9.1 %and is comparable to the national average rate of9%.
•Inflationary trends in the region compare favorably to national indices.
•The 2010 -2011 budget is currently being formulated to provide long term financial
stability for the City.
•The level oftaxes,fees,and charges for services have a direct bearing on the City's
ability to (a)annex additional land into its corporate limits and (b)encourage
development (office,retail,residential,and industrial)to choose to be located in the
jurisdiction.The City places emphasis on encouraging both annexation and
economic development.
Requests for Information
This financial report is designed to provide our citizens,taxpayers,customers and investors,and
creditors with a general overview ofthe City ofPrattville,Alabama's finances and to demonstrate the
City's accountability.Questions concerning any ofthe information provided in this report or requests
for additional financial information should be addressed to the City Clerk,101 West Main Street,
Prattville,Alabama 36067.
12
BASIC FINANCIAL STATEMENTS
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF PRATTVILLE,ALABAMA
STATEMENT OF NET ASSETS
SEPTEMBER 30,2010
PRIMARY
GOVERNMENT COMPONENT UNITS
HISTORICAL
AUTAUGA-PRATTVILLE PRATTVILLE PRATTVILLE
GOVERNMENTAL PUBLIC AIRPORT REDEVELOPMENT
ACTIVITIES LIBRARY AUTHORITY AUTHORITY
ASSETS:
Cash and cash equivalents $1,115,176 $297,911 $87,392 $75,223
Taxes receivable 1,444,469
Accounts receivable,net 888,865 42,104 23,183
Other current assets 101,946
Prepaid items 148,232
Deferred debt expense 1,158,684
Capital assets,not depreciated 3,208,242 2,593,729 183,500
Capital assets,net ofaccumulated depreciation 42,990,628 146,948 6,223,499 259,792
Restricted assets:
Cash and cash equivalents 233,307 20,485
Accounts receivable,net 105,000
Total assets 51,187,603 444,859 9,174,155 541,698
LIABILITIES:
Accounts payable 3,377,016 3,539 60,420
Accrued liabilities 534,670 23,958
Accrued interest 868,168 5,987
Deferred revenues 60,976
Other liabilities 502,936
Notes payable 1,000,000
Long-term liabilities:
Portion due or payable in one year,
General obligation warrants payable
capital leases,and other
long-term debt 3,554,647 92,202
Compensated absences 874,698
Portion due or payable after one year:
General obligation warrants payable,
capital leases,and other
long-term debt 57,269,560 661,864 204,884
Compensated absences 414,608
Total liabilities 68,396,303 88,473 728,271 297,086
NET ASSETS:
Invested in capital assets,net ofrelated debt 28,197,019 146,948 8,155,364
Restricted for:
Debt service 80,178
Capital projects 260,983 12,706
Special revenue 510,090
Cultural and recreational 337
Unrestricted (deficit)(46,256,970)209,101 277,814 244,612
Total net assets $(17,208,700)$356,386 $8,445,884 $244,612
The accompanying notes are an integral part ofthese financial statements.
13
CITY OF PRATTVILLE,ALABAMA
STATEMENTOF ACTIVITIES
FORTHE YEAR ENDED SEPTEMBER 30,2010
NET (EXPENSE)REVENUE AND CHANGES INNETASSETS
_____P_R_OG_RAM__RE_VE_NUE PRIMARY GOVERNMENT COMPONENTUNITS
EXPENSES
GOVERNMENTAL
ACTIVITIES
AUTAUGA-
PRATTVILLE
PUBLIC
LIBRARY
PRATTVILLE
AIRPORT
AUTHORITY
HISTORICAL
PRATTVILLE
REDEVELOPMENT
AUTHORITY
ACTIVITIES:
Primary government:
Governmental activities:
General government $9,124,172 $4,874,993 $161,534 $1,385,800 $(2,701,845)
Public safety 14,719,827 1,287,322 45,227 414,762 (12,972,516)
Public works 8,755,792 4,412,889 321,907 (4,020,996)
Cultural and recreational 2,449,184 265,044 (2,184,140)
Interest on long-term debt 2,585,660 (2,585,660)
Total primarygovernment $37,634,635 $10,840,248 $206,761 $2,122,469 (24,465,157)
Componentunits:,+::.Autauga -Prattville Public Library $578,371 $31,345 $77,864 $58,409 $(410,753)
City ofPrattville Airport Authority 677,789 339,126 $129,302 $(209,361)
Historical PrattvilleRedevelopment Authority 48,088 91,232 $
Total component units $1,304,248 $461,703 $77,864 $187,711 (410,753)(209,361)
General revenue:
Salestaxes 16,796,679
Real and personal propertytaxes 2,500,129
Motorfuel taxes 240,547
Intergovernmental revenues 450,000
Investmentearnings 42,318 4,369 207
Miscellaneous revenue 368,379
Total general revenues 19,948,052 454,369 207
CHANGE IN NET ASSETS (4,517,105)43,616 (209,154)
NETASSETS -BEGINNING (12,691,595)312,770 8,655,038
NETASSETS -ENDING $(17,208,700)$356,386 $8,445,884 $
The accompanying notes are an integral part ofthese financialstatements.
43,144
43,144
177
177
43,321
201,291
244,612
CITY OF PRATTVILLE,ALABAMA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30,2010
CAPITAL DEBT OTHER TOTAL
PROJECTS SERVICE GOVERNMENTA GOVERNMENTAL
GENERAL FUNDS FUNDS L FUNDS FUNDS
ASSETS:
Cash and cash equivalents $467,699 $137,387 $510,090 $1,115,176
Receivables:
Taxes receivable 1,444,469 ],444,469
Accounts receivable,net 624,082 208,616 56,167 888,865
Prepaid items 148,232 148,232
Restricted assets:
Cash and cash equivalents ]53,129 $80,178 233,307
Total assets $2,684,482 $499,132 $80,178 $566,257 $3,830,049
LIABILITIES AND FUND BALANCES:
Liabilities:
Accounts payable $3,138,867 $238,149 $3,377,016
Accrued liabilities 534,670 534,670
Other liabilities 502,936 502,936
Total liabilities 4,176,473 238,149 4,414,622
Fund balances:
Reserved for:
Capital projects 153,]29 ]53,129
Debt service funds $80,178 80,178
Self-insurance fund 230,292 230,292
Encumbrances 262,382 465,739 728,]21
Department specification 180,387 180,387
Prepaid items 148,232 148,232
Unreserved (2,313,284)(357,885)(2,671,169)
Unreserved,reported in:
Special revenue funds $566,257 566,257
Total fund balances (1,491,991 )260,983 80,]78 566,257 (584,573)
Total liabilities and fund balances $2,684,482 $499,]32 $80,178 $566,257 $3,830,049
The accompanying notes are an integral part ofthese financial statements.
15
CITY OF PRATTVILLE,ALABAMA
RECONCILIATION OF BALANCE SHEET OF
GOVERNMENTAL FUNDS TO STATEMENT OF NET ASSETS
SEPTEMBER 30,2010
Differences in amounts reported for governmental activities in the statement ofnet assets on page 13.
Total fund balances -governmental funds
Capital assets used in governmental activities are not financial resources and,
therefore,are not reported in the governmental funds.Those assets consist of:
Land
Construction in progress
Land improvements,net of$4,609,544 accumulated depreciation
Buildings and building improvements,net of$2,906,007 accumulated
depreciation
Office,non-office,and computer equipment,net of$3,808,042 accumulated
depreciation
Vehicles,net of$5,544,301 accumulated depreciation
Infrastructure,net of$4,727,007 accumulated depreciation
Total capital assets
Deferred debt expenses are allocated over the life ofthe debt and are shown
net ofamortization expense as an asset on the statement of net assets.
Long-term liabilities,including general obligation warrants payable and capital leases,are not due and
payable in the current period and,therefore,are not reported in the governmental funds.
Balances at September 30,20 I0 were:
Accrued interest on bonds
General obligation warrants and other notes payable
Unamortized net premium
Capitalized lease obligations
Compensated absences
Postemployment benefit plans other than pensions
Total long-term liabilities
Total net assets ofgovernmental activities
The accompanying notes are an integral part ofthese financial statements.
16
$2,661,060
547,182
4,524,987
7,807,666
2,402,442
1,940,298
26,315,235
868,168
59,068,424
434,597
1,239,844
1,289,306
1,081,342
$(584,573)
46,198,870
1,158,684
(63,981,681)
$(17,208,700)
CITY OF PRATTVILLE,ALABAMA
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,20]°
CAPITAL DEBT OTHER TOTAL
PROJECT SERVICE GOVERNMENTAL GOVERNMENTAL
GENERAL FUNDS FUNDS FUNDS FUNDS
REVENUES:
Sales taxes $]6,796,679 $16,796,679
Real and personal property taxes 2,500,]29 2,500,]29
Motor fuel taxes $240,547 240,547
Licenses and pennits 4,874,993 4,874,993
Intergovernmental revenues 217,701 2]7,701
Charges and fees for services 5,564,563 5,564,563
Fines and forfeitures 400,692 400,692
Interest 44,844 44,844
Miscellaneous revenues 755,910 $265,740 $78,264 1,099,914
Total revenues 30,937,810 265,740 78,264 458,248 3],740,062
EXPENDITURES:
Current:
General governmental 7,377,962 159,999 7,537,96]
Publicworks 7,213,]76 670,605 123,904 8,007,685
Public safety ]4,023,058 14,023,058
Cultural and recreational 2,371,770 2,371,770
Capital outlay 1,305,566 1,984,954 3,290,520
Debt service:
Principal payments 1,126,364 1,205,000 2,331,364
Interest and fiscal charges 179,741 2,285,386 2,465,127
Debt issuance costs 162,777 54,634 217,411
Total expenditures 33,760,414 2,870,192 3,490,386 123,904 40,244,896
Excess ofrevenue over(under)expenditures (2,822,604)(2,604,452)(3,412,122)334,344 (8,504,834)
OTHER FINANCING SOURCES (USES):
Warrant proceeds 850,000 1,820,000 2,670,000
Refunding warrants 6,315,000 6,315,000
Bond premium (discount)177,389 (3,648)173,741
Proceeds from notes payable 300,000 300,000
Proceeds from capital lease 260,000 260,000
Payment to refunded bond escrow agent (6,322,926)(6,322,926)
Transfers in ]29,68]535,323 2,464,345 19,879 3,]49,228
Transfers out (1,105,091)(1,882,603)(161,534)(3,149,228)
Total other financing sources (uses)604,053 469,072 2,464,345 (141,655)3,395,815
NET CHANGE IN FUND BALANCE (2,218,551)(2,135,380)(947,777)192,689 (5,109,019)
FUND BALANCE-BEGINNING 726,560 2,396,363 1,027,955 373,568 4,524,446
FUND BALANCE -ENDING $(1,491,991)$260,983 $80,178 $566,257 $(584,573)
The accompanying notes are an integral part ofthese financial statements.
17
CITY OF PRATTVILLE,ALABAMA
RECONCILIATION OF STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30,2010
Differences in amounts reported for governmental activities in the statement ofactivities on page 14.
Net change in fund balance -total governmental funds
Capital outlay,reported as expenditures in governmental funds,
is shown as capital assets in the statement ofnet assets.
Donations ofcapital assets increase net assets in the statement ofnet assets but do not
appear in the governmental funds because they are not financial resources.
Depreciation expense on governmental capital assets included
in the governmental activities in the statement ofactivities.
The net effect oftransactions involving the sale ofcapital assets is to
decrease net assets in the statement ofnet assets.
Loan proceeds provide current financial resources to the governmental
funds and thus contribute to the change in fund balance.However,issuing debt
increases long-term liabilities in the statement ofnet assets:
Capital lease payable
General obligation warrants and notes payable
Refunding warrants
Notes payable
Repayment oflong-term debt is reported as an
expenditure in governmental funds,but a reduction oflong-term
liabilities in the statement ofnet assets:
Capitalized lease obligations
General obligation warrants payable
Notes payable
Some expenses reported in the statement ofactivities
do not require the use ofcurrent financial resources and,therefore,
are not reported as expenditures in governmental funds:
Accrued interest payable
Compensated absences
Postemployment benefit plans other than pensions
Governmental funds report the effect ofissuance costs,premiums and
discounts,and similar items when debt is first issued,whereas these
amounts are deferred and amortized in the statement ofactivities:
Debt issuance cost
Bond premium
Amortization
Change in net assets ofgovernmental activities
The accompanying notes are an integral part ofthese financial statements.
18
$(260,000)
(2,670,000)
(6,315,000)
(300,000)
465,618
7,740,715
300,000
24,899
(35,382)
(548,822)
217,411
(173,741)
(35,404)
$(5,109,019)
3,207,290
1,385,800
(2,338,270)
(73,200)
(9,545,000)
8,506,333
(559,305)
8,266
$(4,517,105)
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Reporting entity -The City of Prattville,Alabama (the City)was incorporated under the laws ofthe
State of Alabama in 1839 and operates under a Mayor-Council form of government.The Mayor is
elected at large and all seven council members are elected by districts for concurrent terms of four
years.As required by accounting principles generally accepted in the United States of America,the
financial statements of the reporting entity include those of the City of Prattville,Alabama (the
primary government)and its component units.The component units discussed below are included in
the City's reporting entity because of the significance ofits operational or financial relationship with
the City.Each component unit is reported in a separate column in the government-wide financial
statements to emphasize that it is legally separate from the City.
The component unit's column in the combined financial statements includes the financial data ofthe
Autauga-Prattville Public Library (the Library),the Prattville Airport Authority (the Authority),and
the Historic Prattville Redevelopment Authority (HPRA),which are determined to be component
units ofthe City.
The Library operates for the benefit of the City and Autauga County residents.The City annually
provides significant operating subsidies to the Library and appoints its governing body.Based on
this criteria,the Library is included as a component unit ofthe City for the year ended September 30,
2010.The Library operates on a fiscal year ending September 30.Complete financial statements of
the Library can be obtained at its administrative office located in Prattville,Alabama.
The Prattville Airport Authority was established for the purpose of acquiring,operating,
constructing,and developing airport and industrial facilities.The City appoints the governing body
and became obligated under a federal grant initiated by the Authority in September 2000.Based on
this criteria,the Authority is included as a component unit of the City for the year ended
September 30,2010.The Authority also operates on a fiscal year ending September 30.Complete
financial statements ofthe Authority can be obtained at its administrative office located in Prattville,
Alabama.
The Historic Prattville Redevelopment Authority (HPRA)was formed to promote trade and
commerce by inducing commercial enterprises to upgrade,improve,modernize,and expand existing
facilities and to locate new facilities to the central business district of Prattville.The City annually
provides operating subsidies to the HPRA and appoints its governing body.Based on this criteria,
the HPRA is included as a component unit ofthe City for the year ended September 30,2010.
The City's officials are also responsible for appointing the members of the boards of other
organizations,but the City's accountability for these organizations does not extend beyond making
the appointments.The City Council appoints board members to the Water Works Board of the City
of Prattville,two of the three members of the Cooperative District of the City of Prattville,the
Commercial Development Authority of the City of Prattville,the Industrial Development Board of
the City of Prattville,and three of the seven members of the Autauga County Emergency
Management District.These entities are not considered component units ofthe City;therefore,their
financial information is not reflected in the City's financial statements.
19
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:(continued)
Government-wide and fund financial statements -The basic financial statements consist of the
government-wide financial statements and fund financial statements.Government-wide financial
statements are comprised ofthe statement of net assets and the statement ofactivities.The City has
determined that there are no business-type activities.The effects of interfund activity have been
removed from these statements.Governmental activities generally are financed through taxes,
intergovernmental revenues,and other nonexchange transactions.
The statement of activities demonstrates the degree to which the direct expenses of the City's
governmental activities are offset by the City's program revenues.Direct expenses are those that are
clearly identifiable with a specific program or function.Program revenues are classified into three
categories:(1)fines,fees,and charges,(2)operating grants and contributions,and (3)capital grants
and contributions.Charges for services refer to direct recovery from customers for services
rendered.Grants and contributions refer to revenues restricted for specific programs whose use may
be restricted further to operational or capital items.The general revenues section displays revenue
collected that helps support all functions ofgovernment and contribute to the change in the net assets
for the fiscal year.
The fund financial statements follow and report additional and detailed information about operations
for major funds individually and nonmajor funds in the aggregate for governmental funds.A
reconciliation is provided that converts the results of governmental fund accounting to the
government-wide presentations.
The City reports the following major governmental funds:
General fund -This is the City's primary operating fund.It accounts for all financial
resources of the general government,except those required to be accounted for in
another fund.
Capital projects funds -Capital projects funds are used to account for financial
resources used for the acquisition or construction ofmajor capital facilities.
Debt service fund -The debt service fund is used to account for the resources
accumulated and payments made for principal and interest on general long-term debt.
Measurement focus,basis of accounting,and financial statement presentation -Government-wide
financial statements -The government-wide financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting.Revenues are recorded when
earned and expenses are recorded when a liability is incurred,regardless of when the related cash
flows take place.Nonexchange transactions,in which the City gives (or receives)value without
directly receiving (or giving)equal value in exchange,include property taxes,grants,entitlements,
and donations.On an accrual basis,revenue from property taxes is recognized in the fiscal year for
which the taxes are levied.Grants and similar items are recognized as revenue in the fiscal year in
which all eligibility requirements imposed by the provider have been met.
20
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:(continued)
Governmental fund financial statements -The governmental fund financial statements are reported
using the current financial resources measurement focus and the modified accrual basis of
accounting.Revenues are recognized as soon as they are both measurable and available.Revenues
are considered to be available when they are collectible within 90 days after year-end.Sales taxes,
gasoline taxes,grants,donations,and interest revenue are all considered to be susceptible to accrual.
Deferred revenue arises when assets are recognized before revenue recognition criteria have been
satisfied.All other revenue items are considered to be measurable and available only when cash is
received by the City.
Expenditures generally are recorded when a liability is incurred,as under accrual accounting.
However,debt service expenditures,as well as expenditures related to compensated absences and
claims and judgements,are recorded only when payment is due.Allocations of cost,such as
depreciation and amortization,are not recognized in governmental funds.General capital asset
acquisitions are reported as expenditures in governmental funds.Proceeds of general long-term debt
and acquisitions under capital leases are reported as other financing sources.
Under the terms of grant agreements,the City funds certain programs by a combination of specific
cost-reimbursement grants,categorical block grants,and general revenues.Thus,when program
expenses are incurred,there are both restricted and unrestricted net assets available to finance the
program.It is the City's policy to first apply cost-reimbursement grant resources to such programs,
followed by categorical block grants,and then by general revenues.
All governmental activities of the City follow FASB Statements and Interpretations issued on or
before November 30,1989,Accounting Principles Board Opinions,and Accounting Research
Bulletins,unless those pronouncements conflict with GASB pronouncements.
Cash and cash equivalents -Cash and cash equivalents are considered to be cash on hand,demand
deposits,and short-term investments with original maturities ofthree months or less from the date of
acquisition.
Property tax calendar -All ad valorem taxes levied by the state,county,and any municipality in
Autauga County are assessed by the Tax Assessor and collected by the Tax Collector of Autauga
County.The Autauga County property tax calendar requires the Tax Assessor to assess and attach
taxes as enforceable liens on property as of September 30 and are due October 1 through
December 31 of the following year.Property taxes that have not been paid by January 1 are
considered delinquent.Tax collections received by the County Tax Collector are remitted to the City
on a monthly basis.
21
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:(continued)
Receivables -Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either "due to/from other funds"(Le.,the
current portion of inter-fund loans)or "advances to/from other funds"(Le.,the non-current portion of
inter-fund loans).All other outstanding balances between funds are reported as "due to/from other
funds."
Prepaid items -Certain payments to vendors reflect costs applicable to future accounting periods and
are recorded as prepaid items in both government-wide and fund financial statements.
Restricted assets -Certain proceeds of the City's Series 2006,2006A,2006B,2007,and 2009A
warrants,as well as certain resources set aside for their repayment,are classified as restricted assets
on the balance sheet because they are maintained in separate bank accounts and their use is limited
by applicable bond covenants.Resources from Federal and state grants are also classified as
restricted assets on the balance sheet.
Certain resources from Federal and state grants set aside for airport improvements are classified as
restricted assets on the statement of net assets of the Prattville Airport Authority because their use is
limited by their funding agreement.
Capital assets -Capital assets,which include property,plant,equipment,and infrastructure assets
(e.g.roads,bridges,sidewalks,and similar items),are reported in the governmental-type activities
column in the government-wide financial statements.Such assets are recorded at historical cost or
estimated historical cost.Donated capital assets are recorded at their estimated fair value at the date
ofdonation.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets'lives are not capitalized.Capital assets of the primary government and the Autauga-
Prattville Public Library,a component unit,are depreciated using the straight-line method over the
following estimated useful lives:
ASSET CLASS
ESTIMATED
USEFUL LIVES
CAPITALIZATION
THRESHOLD
Land improvements
Buildings
Improvements other than buildings
Office,non-office,and computer equipment
Infrastructure
22
20 years $
40 years
20 years
5 -20 years
50 years
25,000
25,000
25,000
5,000
50,000
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAl.;STATEMENTS
SEPTEMBER 30,2010
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:(continued)
Capital assets of the Prattville Airport Authority,a component unit,are depreciated using the
straight-line method over the following estimated useful lives:
ASSET CLASS
ESTIMATED
USEFUL LIVES
CAPITALIZATION
THRESHOLD
Building and improvements
Furniture and equipment
Runways
3 -25 years
5 - 7 years
8 -25 years
$5,000
5,000
5,000
Capital assets of the Historic Prattville Redevelopment Authority,a component unit,are depreciated
using the straight-line method ofdepreciation over the following estimated useful lives:
ASSET CLASS
ESTIMATED
USEFUL LIVES
CAPITALIZATION
THRESHOLD
Machinery and equipment
Land improvements
Buildings
5 years
15 years
39 years
$5,000
25,000
25,000
The City has historical assets including statues and fountains that are not capitalized,in accordance
with established criteria.Specifically,the historical assets are held for reasons other than financial
gain.The assets are protected,kept unencumbered,cared for and preserved,and are subject to a city
policy requiring that sales proceeds from any historical assets be used to acquire similar assets.
Compensated absences -The City allows employees to accumulate vacation and sick leave up to
certain limits for use in subsequent periods.Upon termination ofemployment,an employee receives
payment ofaccumulated vacation hours up to a maximum of360 hours at current wage rates.Upon
retirement,an employee can receive payment of 500/0 of accumulated sick leave hours up to a
maximum of 360 hours at current wage rates.All vacation and sick pay is accrued when incurred in
the government-wide financial statements up to certain limits for use in subsequent periods.A
liability for these amounts is reported in governmental funds only ifthey have matured,for example,
as a result ofemployee resignations and retirements.
Long-term obligations -In the government-wide financial statements,long-term obligations are
reported as liabilities in the statement of net assets.Bond premiums and discounts,as well as
issuance costs,are deferred and amortized over the life of the bonds using the effective interest
method.Bonds payable are reported net ofthe applicable bond premium or discount.Bond issuance
costs are reported as deferred charges and amortized over the term ofthe related debt.
23
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
In the fund financial statements,governmental fund types recognize bond premiums and discounts,as
well as bond issuance costs,during the current period.The face amount ofdebt issued is reported as
other financing sources.Premiums received on debt issuances are reported as other financing
sources while discounts on debt issuances are reported as other financing uses.Issuance costs,
whether or not withheld from the actual debt proceeds received,are reported as debt service
expenditures.
Lease obligations -Capital lease obligations are stated at the original fair market value of leased
assets capitalized,less payments since the inception of the lease discounted at the implicit rate of
interest in the lease.Also,in the year an asset is acquired by capital lease,the expenditure for the
asset and the offsetting amount of the financing source are reflected in the fund financial statements
in the statement of revenues,expenditures,and changes in fund balances.Capital lease obligations
of governmental activities in the government-wide financial statements and the cost of assets so
acquired are reflected in the accounts ofthose funds and statements.
Fund equity -In the fund financial statements,governmental funds report reservations of fund
balance for amounts that are not available for appropriation or are legally restricted by outside parties
for use for a specific purpose.Designations of fund balance represent tentative management plans
that are subject to change.
Management estimates and assumptions -The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.Actual results could vary from
estimates used.
NOTE 2 -STEWARDSHIP,COMPLIANCE,AND ACCOUNTABILITY:
Budgets and budgetary accounting -The budget is adopted annually at the beginning of each fiscal
year for the general fund and the state gasoline tax fund.The Council must approve transfers of
appropriations or revisions between and among government function categories.Management can
approve transfers within government function categories only.Actual expenditures should not
exceed appropriations in governmental function categories.Appropriations lapse at the end of the
fiscal year.In addition to the legally adopted budget,formal budgetary integration is employed as a
management control device during the year for the general fund.
Budgets for the above-mentioned funds are adopted on a basis other than accounting principles
generally accepted in the United States of America (GAAP)insofar as encumbrances are included
with expenditures.Reconciliation of expenditures reported in accordance with GAAP and those
presented in accordance with the Non-GAAP budgetary basis is shown in the budgetary comparison
schedules.
24
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 3 -CASH,CASH EQUIVALENTS,AND INVESTMENTS:
Deposits -Custodial credit risk -The City's investment policy requires that bank deposits be fully
insured by the Federal Deposit Insurance Corporation or be covered under the Security for Alabama
Funds Enhancement (SAFE)Program.The SAFE program is a multiple financial collateral pool
administered by the State Treasurer according to State ofAlabama statute.
NOTE 4 -RECEIVABLES:
Accounts receivable are stated at the amount management expects to collect from balances
outstanding at year-end.Based on management's assessment,it has concluded that realization losses
on balances outstanding at year-end will be immaterial.Receivables as of year end are considered
fully collectible and are recorded at net realizable value.
25
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 5 -CAPITAL ASSETS:
Capital asset activity for the year ended September 30,2010 was as follows:
BEGINNING ENDING
BALANCE INCREASE DECREASE BALANCE
Governmental activities:
Capital assets,not being
depreciated:
Construction in progress $363,015 $184,167 $547,182
Land 2,661,060 2,661,060
Total capital assets,not
being depreciated 3,024,075 184,167 3,208,242
Capital assets,being depreciated:
Buildings and building
improvements 9,008,658 1,747,765 $42,750 10,713,673
Land improvements 9,115,059 19,472 9,134,531
Vehicles 7,549,525 730,116 795,042 7,484,599
Office,non-office,and
computer equipment 6,392,654 525,770 707,940 6,210,484
Infrastructure 29,656,442 1,385,800 31,042,242
Total capital assets,
being depreciated 61,722,338 4,408,923 1,545,732 64,585,529
Less accumulated depreciation for:
Buildings and building
improvements 2,687,510 232,659 14,162 2,906,007
Land improvements 4,116,431 493,113 4,609,544
Vehicles 5,831,108 488,389 775,196 5,544,301
Office,non-office,and
computer equipment 3,968,983 522,233 683,174 3,808,042
Infrastructure 4,125,131 601,876 4,727,007
Total accumulated
depreciation 20,729,163 2,338,270 1,472,532 21,594,901
Total capital asset,
being depreciated,net 40,993,175 2,070,653 73,200 42,990,628
Governmental activity
capital assets,net $44,017,250 $2,254,820 $73,200 $46,198,870
26
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 5 -CAPITAL ASSETS:(continued)
Depreciation expense was charged to functions/programs ofthe primary government as follows:
Governmental activities:
General government
Public works
Public safety
Cultural and recreational
Total depreciation expense -governmental activities
$778,403
597,892
629,373
332,602
$2,338,270
Component units -Capital asset activity for the Prattville Airport Authority for the fiscal year ended
September 30,2010 is as follows:
BEGINNING ENDING
BALANCE INCREASE DECREASE BALANCE
Capital assets,not being depreciated:
Land $2,593,729 $2,593,729
Construction in progress 50,000 $50,000
Total capital assets,
not being depreciated 2,643,729 50,000 2,593,729
Capital assets,being depreciated:
Land improvements 1,442,418 1,442,418
Runways 5,925,109 $8,598 5,933,707
Building improvements 955,849 459,827 1,415,676
Furniture and equipment 126,570 126,570
Total capital assets,
being depreciated 8,449,946 468,425 8,918,371
Less:Accumulated depreciation 2,380,912 313,960 2,694,872
Total capital assets,
being depreciated net 6,069,034 154,465 6,223,499
Net total capital assets $8,712,763 $154,465 $50,000 $8,817,228
27
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 5 -CAPITAL ASSETS:(continued)
Capital asset activity for the Autauga-Prattville Public Library for the fiscal year ended
September 30,2010 is as follows:
BEGINNING
BALANCE INCREASE DECREASE
ENDING
BALANCE
Capital assets,being depreciated:
Equipment
Total capital assets,
being depreciated
$170,971 $51,724 $
170,971 51,724
15,709 $206,98~
15,709 206,986
Less:Accumulated depreciation 45,597 25,429 10,988 60,038
Total capital assets,
being depreciated,net $125,374 $26,295 $4,721 $146,948========
Capital asset activity for the Historic Prattville Redevelopment Authority for the fiscal year ended
September 30,2010 is as follows:
BEGINNING ENDING
BALANCE INCREASE DECREASE BALANCE
Capital assets,not being depreciated:
Land $183,500 $183,500
Total capital assets,
not being depreciated 183,500 183,500
Capital assets,being depreciated:
Land improvements 12,000 12,000
Building improvements 285,000 285,000
Machinery and equipment 23,000 23,000
Total capital assets,
being depreciated 320,000 320,000
Less:Accumulated depreciation 51,383 $8,825 60,208
Total capital assets,
being depreciated,net 268,617 (8,825)259,792
Total capital assets,net $452,117 $(8,825)$$443,292
28
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 6 -INTERFUND BALANCES:
Interfund transactions are generally used to meet cash demands necessary to pay operating
expenditures.These amounts should be repaid during the next fiscal year.Amounts reported in the
fund financial statements as interfund receivables and payables are eliminated in the entity-wide
governmental column of the statement of net assets.There are no interfund balances as of
September 30,2010.
Transfers were made primarily from the general fund and capital projects fund to nonmajor and
major governmental funds to pay the matching portion of operating grants received during the year,
to eliminate outstanding internal balances,and to fund capital improvements and debt service
payments.
Interfund transfers:
TRANSFER OUT TRANSFER IN
CAPITAL DEBT OTHER
GENERAL PROJECTS SERVICE GOVERNMENTAL
FUND FUND FUND FUNDS TOTAL
General fund $373,789 $711,423 $19,879 $1,105,091
Capital projects fund $129,681 1,752,922 1,882,603
Other governmental funds 161,534 161,534
Totals $129,681 $535,323 $2,464,345 $19,879 $3,149,228
NOTE 7 -LONG-TERM DEBT:
State statute limits the amount of long-term debt the City can incur.The amount of debt applicable
to this limit during a year can be no greater than 20%of the assessed value of taxable property as of
the beginning of the fiscal year.As of September 30,2010,the amount of outstanding debt
applicable to this limit was equal to 4.190/0 of property assessments as ofOctober 1,2009.
29
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 7 -LONG-TERM DEBT:(continued)
Long-term debt activity for the year ended September 30,2010,was as follows:
DUE
WITHIN
BEGINNING ENDING ONE
BALANCE ADDITION REDUCTION BALANCE YEAR
Governmental activities:
Warrant and other notes payable $56,824,139 $8,985,000 $7,740,715 $58,068,424 $2,923,822
Add deferred amounts:
Debt issuance premiums 300,732 173,741 39,876 434,597
Total warrants and
other notes payable 57,124,871 9,158,741 7,780,591 58,503,021 2,923,822
Capital lease payable 1,445,462 260,000 465,618 1,239,844 487,830
Compensated absences 1,253,924 763,203 727,821 1,289,306 874,698
Post employee benefits other
than pensions 532,520 661,215 112,393 1,081,342 142,995
Totals $60,356,777 $10,843,159 $9,086,423 $62,113,513 $4,429,345
Compensated absences typically have been liquidated in the general fund.
Long-term debt at September 30,2010 consists ofthe following:
General Obligation Sewer Warrant,Series 1996;due in
annual principal payments each August 15 and
semiannual interest payments due each February 15 and
August 15;interest rate of3.180/0;final maturity date is
August 15,2017.
General Obligation Sewer Warrant,Series 2004;due in
annual principal payments each February 15 and
semiannual interest payments due each February 15 and
August 15;interest rate of 3.050/0;final maturity date is
February 18,2025.
General Obligation Warrants,Series 2006;due in annual
principal payments beginning November 1,2009 and
semiannual interest payments due each November 1 and
May 1;interest at 3.625%to 3.70%;final maturity date
is November 1,2011.
30
$1,335,000
1,680,000
1,495,000
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 7 -LONG-TERM DEBT:(continued)
General Obligation Economic Development
Improvement Warrants,Series 2006A;due in annual
principal payments beginning November 1,2010 and
semiannual interest payments due each November 1 and
May 1;interest at 3.65%to 4.625%;final maturity date
is November 1,2026.
General Obligation Economic Development
Improvement Warrants,Series 2006B;due in annual
principal payments beginning November 1,2009 and
semiannual interest payments due each November 1 and
May 1;interest at 3.50%to 5.00%;final maturity date is
November 1,2025.
General Obligation Economic Development
Improvement Warrant,Series 2007;due in annual
principal payments beginning November 1,2010 and
semiannual interest payments due each November 1 and
May 1;interest at 3.50%to 4.375%;final maturity date
is November 1,2025.
General Obligation Warrant,Series 2008;due in
semiannual installments of principal and interest on
November 20 and May 20 of each year,beginning
November 20,2008;interest at 3.21 %;final maturity
date is May 20,2018.
General Obligation Revenue Warrant,Series 2008,due
in semiannual installments of principal and interest on
May 1 and November 1 of each year,beginning May 1,
2008;interest at 3.44%until September 30,2013 and
adjusted annually thereafter to the highest prime rate
published in the Money section of the Wall Street
Journal:final maturity date is September 30"2023.
General Obligation Warrant,Series 2009,scheduled
monthly payments of principal and interest;interest rate
3.690/0;unsecured;final payment on February 1,2014.
31
$19,875,000
8,625,000
14,920,000
312,500
442,600
779,368
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 7 -LONG-TERM DEBT:(continued)
Whitney Series 2009A,due in monthly principal and
interest payments of $2,387,beginning December 15,
2009;interest rate is 3.825%;final balloon payment due
on November 15,2014.
2009 General Obligation Refunding Warrants,due in
semiannual installments of principal and interest on
March 1 and September 1,beginning March 1,2010;
interest rate ranges from 20/0 to 4%;final payment is due
September 1,2022.
Whitney Series 2009B,due in monthly principal and
interest payments of $4,519 ,beginning December 15,
2009;interest rate is 3.825%;final balloon payment due
November 15,2014.
General Obligation Chevron Warrants Series 2009A,
due in semiannual installments of principal and interest
on June 1 and December 1,beginning June 1,2010;
interest rate ranges from 2.20/0 to 4.5%;final payment is
due December 1,2029.
Total
$388,717
5,980,000
415,239
1,820,000
$58,068,424
On December 1,2009,the City issued $6,315,000 in General Obligation Refunding Warrants with
interest rates ranging from 2.00/0 -4.0%to advance refund $1.675 million of outstanding Series
2001 Warrants and $4.5 million of Series 2002 Warrants with interest rates ranging from 4.0%-
5.0%.The net proceeds after payment of $169,462 in underwriting fees,insurance,and other
issuance costs were deposited with an escrow agent to provide for all future debt service payments
with full redemption on January 15,2010 and February 1,2010 for the Series 2001 Warrants and
Series 2002 Warrants,respectively.As a result,the Series 2001 and Series 2002 warrants are
considered to be defeased and the liability for those warrants has been removed from the City's long-
term liabilities on.the statement ofnet assets.The City completed the current refunding to reduce its
total debt service payments over the next 13 years by $3 1,975 and to obtain an economic gain
(difference between the present values of the old and new debt service payments)on the transaction
of$280,281.
32
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 7 -LONG-TERM DEBT:(continued)
Debt service requirements on long-term debt at September 30,2010 are as follows:
GOVERNMENTAL ACTIVITIES
PRINCIPAL INTEREST TOTAL
YEAR ENDING SEPTEMBER 30:
2011 $2,923,822 $2,391,047 $5,314,869
2012 3,065,228 2,286,375 5,351,603
2013 3,192,471 2,166,330 5,358,801
2014 3,183,430 2,030,490 5,213,920
2015 3,700,923 1,879,328 5,580,251
2016 -2020 17,156,614 7,320,614 24,477,228
2021 -2025 18,555,936 3,530,149 22,086,085
2026 -2030 6,290,000 301,033 6,591,033
Totals $58,068,424 $21,905,366 $79,973,790
The Historic Prattville Redevelopment Authority's notes payable at September 30,2010 are as
follows:
BankTrust secured by real estate;monthly interest payments
due the 15th of every month,for 12 months beginning
May 15,2006.After 12 months the obligation converts to 47
installments ofprincipal and interest in the amount of$2,714,
based on an 84 month amortization and a final balloon
installment of all principal and accrued interest due at
maturity;interest rate of5.36%;final maturity date is April 5,
2011.
BankTrust secured by real estate;monthly principal and
interest payments of $1,972 due on the 5th of every month;
interest rate of 6.15%;final maturity date is July 5,2014.
BankTrust unsecured; monthly principal and interest
payments of $393.02 due on the 15th ofevery month;interest
rate of6.15%;maturity date ofSeptember 15,2014.
Total
33
$
$
77,183
188,007
31,896
297,086
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 7 -LONG-TERM DEBT:(continued)
Notes payable maturities at September 30,2010 are as follows:
HISTORIC PRATTVILLE
REDEVELOPMENT AUTHORITY
PRINCIPAL INTEREST TOTAL
YEAR ENDING SEPTEMBER 30:
2011
2012
2013
2014
Totals
$92,202
15,964
16,980
171,940
$297,086
$
$
18,258 $110,460
12,420 28,384
11,405 28,385
8,896 180,836
50,979 $348,065
Long-term debt activity for the Historic Prattville Redevelopment Authority for the year ended
September 30,2010,was as follows:
BEGINNING ENDING DUE WITHIN
BALANCE ADDITION REDUCTION BALANCE ONE YEAR
BankTrust;secured loan $105,159 $27,976 $77,183 $77,183
BankTrust;secured loan 202,823 14,816 188,007 12,216
BankTrust;unsecured loan 35,000 3,104 31,896 2,803
Totals $342,982 $$45,896 $297,086 $92,202
34
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 7 -LONG-TERM DEBT:(continued)
The City of Prattville Airport Authority capital debt at September 30,2010 is as follows:
Revenue and Grant Anticipation Bond Series
2008 -BankTrust;$1,000,000;amount drawn to
date $661,864;interest rate of 3.58%until July 1,
2013,variable rate equal to 65%of BankTrust
base rate thereafter;interest due quarterly
beginning October 1,2008;principal payments
due quarterly beginning October 1,2011;
remaining balance due on July 1,2016.$661,864
Total long-term capital debt $661,864
Maturities on capital debt are as follows:
PRINCIPAL INTEREST TOTAL
$22,786 $22,786
51,336 22,616 73,952
53,199 20,675 73,874
55,129 18,728 73,857
57,129 16,710 73,839
445,071 11,214 456,285
661,864 $112,729 $774,593Totals$=====
YEAR ENDING SEPTEMBER 30:
2011
2012 $
2013
2014
2015
2016
Total interest cost on capital debt in 2010 was $13,979.
35
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
Capital debt activity for the year ended September 30,2010 was as follows:
BEGINNING ENDING DUE WITHIN
BALANCE INCREASE DECREASE BALANCE ONE YEAR
GMAC Financing Company $5,790 $5,790
Revenue and grant anticipation
bond -BankTrust 339,385 $327,000 4,521 $661,864
Totals $345,175 $327,000 $10,311 $661,864
NOTE 8 -NOTES PAYABLE:
The City issued General Obligation Note,Series 2009A dated July 16,2009 in the amount of
$1,000,000.The proceeds of the note were used as a line of credit for paying operation expenditures
as needed for the City.The line of credit has been renewed several times since originated.The line
of credit currently bears an interest rate of 3.15%.At September 30,2010,the outstanding balance
totaled $1,000,000 with a maturity date of March 31,2011.
Short-term debt activity for the year ended September 30,2010,was as follows:
BEGINNING
BALANCE
ENDING
ADDITION REDUCTION BALANCE
Notes payable $1,000,000 $300,000 $300,000 $1,000,000
NOTE 9 -CAPITAL LEASES:
The City leases assets with a historical cost and accumulated depreciation of $2,875,373 and
$1,547,621 respectively,under capital lease arrangements.Future minimum lease payments at
September 30,2010 were as follows:
36
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
FISCAL YEAR ENDING SEPTEMBER 30:
2011
2012
2013
2014
Total minimum lease payments
Less:Deferred interest
Present value minimum lease payments
AMOUNT
$526,176
450,761
225,555
105,513
1,308,005
68,161
$1,239,844
NOTE 10 -PENSION COSTS:
Plan description -The City of Prattville,Alabama participates in the Employees'Retirement System
of Alabama (ERS),an agent multiple-employer public employee retirement system (PERS)that acts
as a common investment and administrative agent for qualified persons employed by local
government entities in Alabama.ERS PERS is a defined benefit plan that provides retirement,
disability,and death benefits to plan members and beneficiaries.
The ERS was established October 1945 under the provisions of Act 515,Acts of Alabama 1945,for
the purpose of providing retirement allowances and other specified benefits for State employees,
State police,and on an elective basis to all cities,counties,towns,and quasi-public organizations.
The responsibility for general administration and operation of the ERS is vested in the Board of
Control.Benefit provisions are established by the Code of Alabama 1975.Authority to amend the
benefit provisions ofthe plan rests with the State Legislature.
ERS PERS issues a publicly available financial report that includes financial statements and required
supplemental information for the Employees'Retirement System of Alabama.That report may be
obtained by writing to:The Retirement Systems of Alabama,P.O.Box 302150,Montgomery,
Alabama 36130-2150 or by calling (334)832-4140.
Funding policy -Plan members are required by statute to contribute 50/0 oftheir annual salary,except
for full-time,certified firefighters and law enforcement officers,who contribute 6%of their annual
covered salary.The City is required to contribute at an actuarially determined rate;the current rate is
8.53%of covered payroll based on the actuarial valuation report of September 30,2009.The
contribution requirements of plan members are set by the State Legislature.The contribution
requirements of the City are established and may be amended by the ERS based on actuarial
valuations.
37
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
Annual pension cost -For the year ended September 30,2010,the City's annual pension cost of
$1,258,574 was equal to the City's required and actual contributions.
Trend information for the City of Prattville,Alabama is as follows:
FISCAL YEAR
ENDED
ANNUAL PENSION
COST (APC)
PERCENTAGE OF APC
CONTRIBUTED
NET PENSION
OBLIGATION
September 30,2008 $
September 30,2009
September 30,2010
1,052,937
1,160,890
1,258,574
1000/0
1000/0
100%
-0-
-0-
-0-
The required contribution was determined as part ofthe September 30,2007 actuarial valuation using
the entry age actuarial cost method.The actuarial assumptions included (a)an investment rate of
return on assets of 8.00%per year,and (b)projected salary increases of 4.61%to 7.750/0 per year,
including inflation of 4.500/0.The actuarial value of assets was determined using techniques that
smooth the effects of short-term volatility in the market value ofinvestments over a five-year period.
The unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll
on an open basis.The remaining amortization period as of September 30,2007 was 19 years.
Funding status and progress -As of September 30,2009,the most recent actuarial valuation date,the
plan was 72.5%funded.The actuarial accrued liability for benefits was $39,315,613,and the
actuarial value of assets was $28,514,587 resulting in funding deficit of $10,801,026.The covered
payroll (annual payroll of active employees covered by the plan)was $14,254,467,and the ratio of
the funding deficit to the covered payroll was 75.80%.
The schedule of funding progress for the City of Prattville,Alabama,presented as required
supplementary information following the notes to the financial statements,presents multiyear trend
information about whether the actuarial value of plan assets is increasing or decreasing over time
relative to the actuarial accrued liability for benefits.
NOTE 11 -POST EMPLOYMENT BENEFITS:
The City ofPrattville's OPEB Plan is a single-employer,defined benefit OPEB plan.From an accrual
accounting perspective, the cost of postemployment healthcare benefits,like the cost of pension
benefits,should be associated with the periods in which the cost occurs,rather than in the future
year when it will be paid.Under the requirements of GASB Statement No.45,the City recognizes
the cost ofpostemployment healthcare in the year when employee services are received,reports the
accumulated liability from prior years,and provides information useful in assessing potential
demands on the City's future cash flows.Under GASB Statement No.45,recognition ofthe liability
accumulated from prior years will be phased in over 30 years,commencing with the 2009 liability.
38
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 11 -POST EMPLOYMENT BENEFITS:(continued)
Plan description -The City provides medical benefits to employees upon retirement according to the
retirement eligibility provisions as follows:25 years ofservice at any age;or,age 60 and 10 years of
service.The retirees pay a portion ofthe premium costs.The City pays for all costs in excess ofthe
required premiums.Benefits and contribution requirements (both employee and employer)for the
OPEB Plan are contained in the official plan documents.No separate financial statements are
issued.
The number of participants as of September 30,2008,the effective date of the biannual OPEB
valuation,follows:
NUMBER OF
ENROLLEES
Active employees
Retired employees
Total
355
14
369
Funding policy -The City currently pays for postemployment health care benefits on a pay-as-you-go
basis.Although the City could establish a trust to accumulate and invest assets necessary to pay for
the accumulated liability,these financial statements assume that pay-as-you-go funding will
continue.
Annual other postemployment benefit cost and obligation -For the fiscal year ended September 30,
2010,the City's annual OPEB expense of$548,822 is not equal to the annual required contribution,
as adjusted,which is estimated at $661,215.Considering the City's annual OPEB cost as well the
payment of current estimated health insurance premiums,which totaled $112,393 for retirees,the
result was an increase in the net OPEB obligation of $548,822 for the year ended September 30,
2010.
The table below shows the City's net other post-employment benefit obligation for the fiscal year
ending September 30,2010:
39
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 11 -POST EMPLOYMENT BENEFITS:(continued)
MEDICAL
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense)
Contributions made
Current year retiree premium
Increase in net OPEB obligation
Net OPEB obligation -beginning ofyear
Net OPEB obligation -end ofyear
$670,710
21,301
(30,796)
661,215
-0-
(112,393)
548,822
532,520
$1,081,342
The following table shows the City of Prattville's annual post employment benefits (PEB)cost,
percentage of the cost contributed,and the net unfunded post employment benefits (PEB)liability
(asset):
POST
EMPLOYMENT
BENEFIT
Medical
Medical
FISCAL YEAR ANNUAL
ENDED OPEB COST
September 30,2009 $644,913
September 30,2010 661,215
PERCENTAGE
OF ANNUAL
COST
CONTRIBUTED
17.430/0
17.000/0
NETOPEB
OBLIGATION
$532,520
1,081,342
Actuarial methods and assumptions -The "value of benefits"has been assumed to be the portion of
the premium after retirement date expected to be paid by the employer for each retiree and has been
used as the basis for calculating the actuarial present value of OPEB benefits to be paid.The
employer portion has been estimated as the difference between the unblended rate,estimated to be
130%of the blended rate (combined rate paid by active employees and retirees),and the portion paid
by the retiree.
The unfunded actuarial accrued liability is being amortized over 30 years on a level dollar basis.It is
assumed that entitlement to benefits will commence immediately upon coverage eligibility and end at
age 65.An age-related turnover scale based on actual experience has been used.The rates,when
applied to the active employee census,produce an annual turnover of approximately 9%.It is also
assumed that 10%of retirees elect not to have retiree medical coverage because of the substantial
retiree contribution required.
40
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
The projection of future benefits for an ongoing plan involves estimates of the value of reported
amounts and assumptions about the probability of occurrence of future events far into the future.
Actuarially determined amounts are subject to continual revision as actual results are compared with
past expectations and new estimates are made about the future.The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short-term volatility in
actuarial accrued liabilities and the actuarial value of assets,consistent with the long-term
perspective ofthe calculations.
In the September 30,2008,actuarial valuation,the liabilities were computed using the projected unit
credit cost method and level dollar amortization.The actuarial assumptions utilized a 4%discount
rate.This discount rate is a conservative estimate ofthe expected long term return of a balanced and
conservative investment portfolio under professional management.The expected rate of increase in
medical cost is based on projections performed by the Office of the Actuary at the Centers for
Medicare and Medicaid Services.The valuation assumes an 80/0 healthcare cost trend increase for
fiscal year 2008,graded down to an ultimate annual rate of 5%for 2016 and later.
NOTE 12 -RESERVES OF FUND BALANCES:
Reserves indicate that portions of fund balances are not available for appropriation or are legally
segregated.A detail ofthe reserves ofeach fund is as follows:
GENERAL
FUND
CAPITAL
FUND
DEBT SERVICE
FUND
Reserved for:
Capital projects $153,129
Self-insurance fund $230,292
Encumbrances 262,382 465,739
Department specification 180,387
Prepaid items 148,232
Debt service $80,178
Total reserved fund balances $821,293 $618,868 $80,178
NOTE 13 -CONTINGENT LIABILITIES:
The City has received federal and state grants for specific purposes which are subject to review and
audit by the grantor agencies.Such audits could produce requests for reimbursements to the grantor
agencies due to the disallowance ofexpenditures pursuant to the terms of the grant.It is the opinion
ofthe City that such disallowances,ifany,would not be material.
The City is a defendant in various lawsuits.Although the outcome ofthese lawsuits is not presently
determinable,in the opinion of the City's counsel,the resolution of these matters will not have a
material adverse effect on the financial condition ofthe City.
41
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 14 -RISK MANAGEMENT:
The City is exposed to various risks of losses related to tort;theft of,damage to,and destruction of
assets;errors and omissions;natural disasters;injuries to employees;and self-insured employee
health.The City purchases commercial insurance for property,general liability claims,and title
insurance.Settlement amounts have not exceeded insurance coverage for the current year or the
three prior years.All risk management activities are accounted for in the General Fund.
Employees'medical insurance fund -The City maintains the employees'medical insurance fund to
account for and finance its uninsured risks of loss.Liabilities of the fund are reported when it is
probable that a loss has occurred and the amount ofthe loss can be reasonably estimated.Liabilities
include an amount for claims that have been incurred but not reported (IBNRs).The result of the
process to estimate the claims liability is not an exact amount,as it depends on many complex
factors,such as inflation,changes in legal doctrines,and damage awards.Accordingly,claims are
reevaluated periodically to consider the effects of inflation,recent claim settlement trends (including
frequency and amount ofpayouts),and other economic and social factors.The estimate of the claims
liability also includes amounts for incremental claim adjustments related to specific claims and other
claim adjustments regardless of whether they are allocated to specific claims.Estimated recoveries
are another component ofthe claims liability estimate.An excess coverage insurance policy covers
individual claims in excess of $100,000.Settlements have not exceeded coverage.Changes in the
balances ofclaims liabilities during the year are as follows:
Unpaid claims,beginning offiscal year
Incurred claims (including IBNRs)
Claim payments
Unpaid claims,end offiscal year
$208,300
3,355,182
(3,387,182)
$176,300
NOTE 15 -RELATED PARTY TRANSACTIONS:
The City chose the Water Works Board ofthe City of Prattville as the collection agent for the sewer
and sanitation collection fees.The City receives the receipts for services when collected by the
Water Works Board of the City of Prattville.The amount receivable to the City for sewer and
sanitation collection fees not yet received at September 30,2010 was $370,754.
The City imposes a 3%license fee on gross water receipts.The 30/0 fees are collected by the Water
Works Board of the City of Prattville from charges to water customers on their monthly water bill
and remitted to the City annually on January 1.The receivable from the Water Works Board of the
City of Prattville for license fees at September 30,2010 was $126,512.
On May 1,2006,the City of Prattville,Alabama entered into a lease agreement with the Historic
Prattville Redevelopment Authority to lease a building on West 4th Street.The term of the lease is
five years with quarterly rent payments of $8,183.The City of Prattville,Alabama paid $32,732 in
rent payments to Historic Prattville Redevelopment Authority during fiscal year ended September 30,
2010.
42
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 16 -FUNDING AGREEMENT:
On April 12,2006,the City of Prattville,Alabama entered into a funding agreement with Sunbelt-
CPA,LLC,a limited liability company,to facilitate additional commercial development within the
City by locating a national lodging franchise within the City.The funding agreement provides that
the City agrees to pay Sunbelt-CPA,LLC an amount not more than $175,000 in the form of a
monthly rebate of 33%of lodging taxes derived from the property,less any amounts required to be
paid by the City to Elmore County or the State of Alabama.This incentive is contingent upon an
$85.00 per night average daily rate.
On September 1,2006,the City of Prattville,Alabama entered into a funding agreement with the
Cooperative District of the City of Prattville (the District),a public corporation,simultaneously with
the District's issuance of Limited Obligation Taxable Economic Development Bonds (Bass Pro
Project),Series 2006 which were used to finance the acquisition,construction,and installation of a
retail shopping center and related improvements in the City of Prattville,Alabama.The funding
agreement provides that the City agrees to collect certain taxes on persons,firms,and corporations
which sell at retail certain tangible personal property (excluding automotive vehicles)in the area
owned by the District.Pursuant to the funding agreement,the City will collect and remit to First
Commercial Bank,the trustee ofthe District's bond indenture,an amount equal to 2.5%of the gross
proceeds of such sales through the earlier date of September 2026 or full payment of bonds.The
Limited Obligation Taxable Economic Development Bonds (Bass Pro Project),Series 2006 do not
constitute an obligation ofthe City of Prattville,Alabama.
In December 2008,the City of Prattville,Alabama entered into a funding agreement with The
Exchange Cooperative District (the "District"),a public corporation to provide assistance in
connection with proposed financing,construction,and installation of a retail shopping facility and
related improvements in the City (the Project).The funding agreement provides that the City agrees
to collect Project sales tax revenues and remit 50%ofthe City's actual receipts from the businesses
located within the Project to fund the indebtedness ofThe Exchange Cooperative District.Payments
under the agreement shall be made directly to the Trustee for the account of the District,if requested
by the District,otherwise,all payments shall be made to the District or to the District Director.The
maximum amount shall be the aggregate amount necessary to amortize $9,000,000 over thirty (30)
years at an average yield.The average yield is the annual cost of any credit enhancement or
remarketing fees expressed as a percentage,plus the average yield of the District's tax-exempt
indebtedness,if any,or if no tax-exempt indebtedness is outstanding,the average yield of all ofthe
indebtedness ofthe District,in the event the indebtedness is refinanced or fully satisfied.The City
shall have no obligation to make any payment from any other sources.Any indebtedness issued by
the Exchange Cooperative District does not constitute an obligation of the City of Prattville,
Alabama.
43
CITY OF PRATTVILLE,ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2010
NOTE 17 -COMMITMENTS:
The City has a contractual commitment with the Autauga County Commission for the funding ofthe
metro jail facility.The contract provides for annual payments not to exceed $325,000 for a period of
20 years.Monthly payments on the commitment commenced when the facility became operational in
July 2004.These annual payments include facility rental payments of $160,000 and operating cost of
$165,000.
The City entered an agreement to support the indebtedness incurred to finance property of the
Historic Prattville Redevelopment Authority with an annual allocation in the event that the lease
arrangements on the financed property prove not to be financially viable.The initial loan balance on
the property totaled $252,200.The loan balance as of September 30,2010 was $188,007.
On March 30,2009,the City entered into a contract with an engineering company to provide
engineering services related to the widening and resurfacing of McQueen Smith Road from South
Memorial Drive to Cobbs Ford Road.The contract amount is $642,704.This cost of the contract is
federally funded at 80%up to $520,000,and the remainder is to be paid from the City's funds.
As ofSeptember 30,2010,commitments to contractors on capital projects are as follows:
Commitments
Spent-to-date
Remaining commitments
$2,952,130
(2,486,391 )
$465,739
The remaining commitments are included in fund balance reserved for encumbrances.
NOTE 18 -SUBSEQUENT EVENTS:
On October 29,2010,the City issued General Obligation Note,Series 2011 in the amount of
$3,100,000 to refund that portion of the principal and interest on a series of General Obligation
Warrants which were due and payable on November 1,2010.The General Obligation note bears
interest at a rate of 1.23%with a maturity date of May 2,2011.
On January 4,2011,the City passed a resolution to authorize the Mayor to enter into a contract for
the purchase and implementation of a Public Safety Traffic Signal Pre-emption Program at a cost not
to exceed $150,075 for equipment and $2,000 for training.Funding for this program will be from the
2010 Congressional Appropriations Act.
44
REQUIRED SUPPLEMENTARY INFORMATION
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF PRATTVILLE,ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARYCOMPARISON SCHEDULE
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30,2010
BUDGETED AMOUNTS
ORIGINAL FINAL
ACTUAL AMOUNTS
BUDGETARY
BASIS
VARIANCE WITH
FINAL BUDGET -
POSITIVE (NEGATIVE)
REVENUES:
Taxes:
Ad valorem taxes
Sales taxes
Local gasoline tax
Cigarette tax
Whiskey tax
Beer tax
Wine tax
ABC sales tax
Excise tax
Lodging tax
Rental tax
Total taxes
Licenses and permits:
Business licenses
Yard sale permits
Franchise fees
Building permits and
inspection fees
Zoning and plat fees
Total licenses and permits
Intergovernmental revenue:
Shared state revenue:
ABC profits
Total intergovernmental revenues
Charges and fees for services:
Ambulance fees
Ambulance fees,county
Sewercharges
Sanitation fees
Sewer impact fees
Street cut/repairs
Recreation rentals
Total charges and fees for services
$2,468,000 $2,468,000 $2,500,129 $
15,295,500 15,295,500 14,106,429
895,000 895,000 899,562
145,000 145,000 149,222
45,000 45,000 47,036
230,000 230,000 225,141
13,000 13,000 14,320
30,000 30,000 33,072
18,972
1,150,000 1,150,000 1,063,067
243,000 243,000 239,858
20,514,500 20,514,500 19,296,808
4,120,000 4,120,000 4,218,715
4,000 4,000 4,840
500,000 500,000 425,634
451,000 451,000 208,144
17,660
5,075,000 5,075,000 4,874,993
8,000 8,000
8,000 8,000
730,000 730,000 637,244
290,000 290,000 249,386
2,290,000 2,290,000 2,176,999
2,051,000 2,051,000 2,084,834
146,707
2,500 2,500 4,349
213,500 213,500 265,044
5,577,000 5,577,000 5,564,563
45
32,129
(1,189,071)
4,562
4,222
2,036
(4,859)
1,320
3,072
18,972
(86,933)
(3,142)
(1,217,692)
98,715
840
(74,366)
(242,856)
17,660
(200,007)
(8,000)
(8,000)
(92,756)
(40,614)
(113,001)
33,834
146,707
1,849
51,544
(12,437)
CITY OF PRATTVILLE,ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FORTHE YEAR ENDED SEPTEMBER 30,2010
ACTUAL AMOUNTS VARIANCE WITH
BUDGETED AMOUNTS BUDGETARY FINAL BUDGET -
ORIGINAL FINAL BASIS POSITIVE (NEGATIVE)
REVENUES:(continued)
Fines and forfeitures:
Court fines $352,000 $352,000 $288,584 $(63,416)
Drug proceeds 160,000 160,000 55,191 (104,809)
Court costs 51,000 51,000 56,917 5,917
Total fines and forfeitures 563,000 563,000 400,692 (162,308)
Miscellaneous revenues:
Donations 75,000 75,000 75,535 535
County commission -RTJ 50,000 50,000 50,000
Interest income 5,000 5,000 44,844 39,844
Accident reports 1,000 1,000 10,675 9,675
Friday night live club 1,000 1,000 721 (279)
Cemetery lots 1,000 1,000 (1,000)
Miscellaneous income 311,250 311,250 33,338 (277,912)
Parades 3,000 3,000 3,880 880
Performing and creative arts 15,500 15,500 29,373 13,873
Penalties 9,000 9,000 17,572 8,572
Sale ofsurplus equipment 25,000 25,000 5,805 (19,195)
Stanley stadium 4,000 4,000 5,500 1,500
Swimming pool concessions 8,000 8,000 10,578 2,578
Lambert property tower 5,500 5,500 7,260 1,760
Grant income 300,000 300,000 85,196 (214,804)
Bullet proofvest grant 4,000 4,000 5,714 1,714
Law enforcement BG funds 414,763 414,763
Total miscellaneous revenues 818,250 818,250 800,754 (17,496)
Total revenues $32,555,750 $32,555,750 $30,937,810 $(1,617,940)
46
CITY OF PRATTVILLE,ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30,2010
BUDGETED AMOUNTS
ORIGINAL FINAL
ACTUAL AMOUNTS
BUDGETARY
BASIS
VARIANCE WITH
FINAL BUDGET -
POSITIVE (NEGATIVE)
$1,208,635 $1,208,635 $
193,555 193,555
420,415 420,415
704,442 704,442
333,956 333,956
439,844 439,844
970,305 970,305
1,165,222 1,165,222
703,935 703,935
6,140,309 6,140,309
1,396,642 1,396,642
1,834,729 1,834,729
1,312,269 1,312,269
2,383,339 2,383,339
430,496 430,496
7,357,475 7,357,475
6,332,521 6,332,521
7,251,620 7,251,620
13,584,141 13,584,141
2,272,162 2,272,162
287,643 287,643
2,559,805 2,559,805
EXPENDITURES:
General government:
Executive
Legislative
Judicial
Administrative finance
Administrative city clerk
Human resources
Information technology
Vehicle maintenance
Sales tax incentives
Total general government
Public works:
Street
Sanitation
Planning and development
Wastewater
Engineering
Total public works
Public safety:
Police
Fire
Total public safety
Cultural and recreation:
Leisure services
Performing and creative art
Total cultural and recreation
Debt service:
Debt issuance cost
Principal
Interest
Total debt service
1,363,940
1,363,940
47
1,363,940
1,363,940
1,387,106 $(178,471)
209,087 (15,532)
434,238 (13,823)
744,337 (39,895)
293,447 40,509
616,625 (176,781)
1,134,797 (164,492)
1,305,576 (140,354)
835,933 (131,998)
6,961,146 (820,837)
1,463,668 (67,026)
1,925,820 (91,091)
1,186,412 125,857
2,699,232 (315,893)
469,913 (39,417)
7,745,045 (387,570)
7,428,968 (1,096,447)
7,476,331 (224,711)
14,905,299 (1,321,158)
2,142,182 129,980
255,188 32,455
2,397,370 162,435
162,777 (162,777)
1,126,364 237,576
179,741 (179,741)
1,468,882 (104,942)
CITY OF PRATTVILLE,ALABAMA
REQUIREDSUPPLEMENTARY INFORMATION
BUDGETARY COMPARISONSCHEDULE
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30,2010
BUDGETED AMOUNTS
ORIGINAL FINAL
ACTUAL AMOUNTS
BUDGETARY
BASIS
VARIANCE WITH
FINAL BUDGET -
POSITIVE (NEGATIVE)
$(159,028)$(159,028)
$417,732 $417,732 $
417,732 417,732
31,423,402 31,423,402
1,132,348 1,132,348
(2,964,007)(2,964,007)
417,732
417,732
33,895,474 $(2,472,072)
(2,957,664)(4,090,012)
(711,423)2,252,584
(373,789)(373,789)
129,681 129,681
(19,879)(19,879)
850,000 (822,631)
6,315,000 6,315,000
300,000 300,000
260,000 260,000
177,389 177,389
(6,322,926)(6,322,926)
604,053 1,895,429
(2,353,611)$(2,194,583)
1,672,631
(1,291,376)~_
1,672,631
(1,291,376)
Net change in fund balance,budgetary basis
Excess ofrevenues over expenditures
Total expenditures
Other financing sources (uses):
Transfers to debt service fund
Transfers to capital improvement fund
Transfer from capital improvement fund
Transfer to special revenue fund
Warrant proceeds
Refunding warrants
Proceeds from notes payable
Proceeds from capital leases
Bond premium
Payment to refunded bond escrow agent
Total other financing sources (uses)
EXPENDITURES:(continued)
Transfers:
Transfers to component units
Total transfers
Deduct other reconciling items to adjust from
budgetary basis to modified accrual basis:
Change in encumbrances 135,060
135,060
NET CHANGE IN FUND BALANCE,MODIFIED ACCRUAL BASIS (2,218,551)
FUND BALANCE -BEGINNING 726,560
FUND BALANCE -ENDING $(l,491 ,991)
See accompanying notes to budgetary comparison schedules.
48
CITY OF PRATTVILLE,ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO BUDGETARY COMPARISON SCHEDULES
NOTE A -EXPLANATION OF DIFFERENCES BETWEEN GAAP REVENUES AND
EXPENDITURES AND BUDGETARY INFLOW AND OUTFLOWS:
The City uses encumbrance accounting for budgetary control purposes.Outstanding encumbrances,
which are outstanding purchase orders,contracts,and other commitments,are not treated as
expenditures in the operating statements,but instead are reflected as a reservation offund balance for
expenditure or liquidation in the subsequent fiscal year.The only exception to this rule is in the
Budgetary Comparison Schedule -General Fund.Encumbrances are included in the actual
expenditure figures on this statement so that a meaningful comparison can be made with the adopted
budget ofthe City.
A reconciliation ofthe two statements is as follows:
GENERAL
FUND
Excess ofrevenues and other financing sources over expenditures and
other uses (GAAP basis)
Encumbrances at beginning ofthe year
Encumbrances at end ofthe year
Excess of revenues and other financing sources over (under)
expenditures and other uses -actual (non-GAAP budgetary basis)
$
$
(2,218,551 )
127,322
(262,382)
(2,353,611 )
NOTE B -EXCESS OF EXPENDITURES OVER APPROPRIATIONS:
The General Fund expenditures exceeded appropriations by $2,472,072 primarily due to the excess
operating expenditures of $1,321,158 incurred in public safety,of which $400,000 was for capital
outlay that was funded by a capital grant.There were also excess operating expenditures of
$820,837 incurred in general government.These excess expenditures were funded by current
revenues and other financing sources.
49
CITY OF PRATTVILLE,ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS OF THE CITY'S DEFINED BENEFIT
PENSION PLAN
LAST THREE FISCAL YEARS
EXCESS
ACTUARIAL ASA
ACCRUED PERCENTAGE
ACTUARIAL LIABILITY UNFUNDED OF
ACTUARIAL VALUE OF (AAL)OF ASSETS FUNDED COVERED COVERED
VALUATION ASSETS ENTRY AGE OVERAAL RATIO PAYROLL PAYROLL
DATE (a)(b)(a-b)(alb)(c)((a-b)/c)
September 30,2007 $26,441,912 $33,056,377 $(6,614,465)80.00/0 $12,483,719 53.0%
September 30,2008 27,900,405 36,003,149 (8,102,744)77.5%13,452,621 60.2°Al
September 30,2009 28,514,587 39,315,613 (10,801,026)72.5%14,254,467 75.8%
50
SUPPLEMENTARY INFORMATION
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
These include operating funds which are restricted as to use by the federal or state government and
special purpose funds established by authority ofthe City Council.
State gasoline excise tax fund accounts for proceeds from a state gasoline tax.The use ofthese
funds is restricted to expenditures related to construction,improvements,and maintenance of
highways,bridges,and streets.
State gasoline and lubricating oil tax fund accounts for proceeds from a state gasoline tax.The use
ofthese funds is restricted to expenditures related to resurfacing,restoration,and rehabilitation of
roads,bridges,and streets.
Alabama trust fund accounts for funds received from the Alabama Trust Fund to be used solely for
capital improvements and the renovation ofcapital improvements determined by the municipal
governing body.
Miscellaneous grant fund accounts for funding arising from miscellaneous federal and state
government grants.
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF PRATTVILLE,ALABAMA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30,2010
TOTAL
NONMAJOR SPECIAL
GOVERNMENTAL REVENUE
FUNDS FUNDS
ASSETS:
Cash $510,090 $510,090
Accounts receivable 56,167 56,167
Total assets $566,257 $566,257
FUND BALANCE:
Unreserved:
Undesignated $566,257 $566,257
Total fund balance $566,257 $566,257
51
CITY OF PRATTVILLE,ALABAMA
COMBINING STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2010
TOTAL
NONMAJOR
GOVERNMENTAL
FUNDS
SPECIAL
REVENUE
FUNDS
REVENUES:
Taxes and fees
Intergovernmental revenue
Total revenues
$240,547 $
217,701
458,248
240,547
217,701
458,248
EXPENDITURES:
Current operations:
Public works
Total expenditures
EXCESS OF REVENUES OVER EXPENDITURES
OTHER FINANCING (SOURCES)USES:
Transfers in
Transfers out
Total other financing (sources)uses
EXCESS OF REVENUES AND OTHER FINANCING
USES OVER EXPENDITURES
FUND BALANCES AT BEGINNING OF YEAR
FUND BALANCES AT END OF YEAR
52
$
123,904 123,904
123,904 123,904
334,344 334,344
19,879 19,879
(161,534)(161,534)
(141,655)(141,655)
192,689 192,689
373,568 373,568
566,257 $566,257
CITY OF PRATTVILLE,ALABAMA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
SEPTEMBER 30,2010
STATE STATE
GASOLINE GASOLINE AND MISCELLANEOUS
EXCISE LUBRICATING GRANT
TOTAL TAX FUND OIL TAX FUND FUND
ASSETS:
Cash $510,090 $282,127 $227,963
Accounts receivable 56,167 $56,167
Vl Total assets $566,257 $282,127 $227,963 $56,167w
FUND BALANCE:
Fund balances:
Unreserved:
Undesignated $566,257 $282,127 $227,963 $56,167
Total fund balances $566,257 $282,127 $227,963 $56,167
CITY OF PRATTVILLE,ALABAMA
COMBINING STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED SEPTEMBER30,2010
STATE STATE
GASOLINE GASOLINE AND ALABAMA MISCELLANEOUS
EXCISE LUBRICATING TRUST GRANT
TOTAL TAX FUND OIL TAX FUND FUND FUND
REVENUES:
Taxes and fees $240,547 $135,208 $105,339
Intergovernmental revenues 217,701 $161,534 $56,167
Total revenues 458,248 135,208 105,339 161,534 56,167
Vl~EXPENDITURES:
Current operations:
Public works 123,904 35,661 32,076 56,167
Total expenditures 123,904 35,661 32,076 56,167
OTHER FINANCING SOURCES (USES):
Transfers in 19,879 19,879
Transfers out (161,534)(161,534)
Total other fmancing sources (uses)(141,655)(161,534)19,879
Excess ofrevenues over expenditures 192,689 99,547 73,263 19,879
FUND BALANCES AT BEGINNING OF YEAR 373,568 182,580 154,700 36,288
FUND BALANCES AT END OF YEAR $566,257 $282,127 $227,963 $$56,167
CITY OF PRATTVILLE,ALABAMA
BUDGETARY COMPARISON SCHEDULE
STATE GASOLINE EXCISE TAX FUND
FOR THE YEAR ENDED SEPTEMBER 30,2010
BUDGET ACTUAL
OVER
BUDGET
REVENUES:
State gasoline excise tax
Total revenues
$130,500
130,500
$135,208
135,208
$4,708
4,708
EXPENDITURES:
Current operations:
Public works
Total expenditures
Net change in fund balance,budgetary basis
FUND BALANCE AT BEGINNING OF YEAR
FUND BALANCE AT END OF YEAR
55
35,661 (35,661)
35,661 (35,661)
$130,500 99,547 $(30,953)
182,580
$282,127
CITY OF PRATTVILLE,ALABAMA
BUDGETARY COMPARISON SCHEDULE
STATE GASOLINE AND LUBRICATING OIL EXCISE TAX FUND
FOR THE YEAR ENDED SEPTEMBER 30,2010
BUDGET ACTUAL
OVER
BUDGET
REVENUES:
State gasoline and lubricating oil excise tax
Total revenues
$100,000
100,000
$105,339
105,339
$5,339
5,339
EXPENDITURES:
Current operations:
Public works
Total expenditures
Net change in fund balance,budgetary basis
FUND BALANCE AT BEGINNING OF YEAR
FUND BALANCE AT END OF YEAR
56
32,076 (32,076)
32,076 (32,076)
$100,000 73,263 $(26,737)
154,700
$227,963