FY11 Comprehensive Annual Financial Report - City of PrattvilleCITY OF PRATTVILLE, ALABAMA
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2OII
COMPREFIENSIVE ANNTJAL
FINANCIAL REPORT
Prepared by:
Department of Finance
Douglas C. Moseley,CITP, CISA, CPA
Interim Finance Director
INTRODUCTORY SECTION
CITY OF PRATTVILLE, ALABAMA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2O1I
TABLE OF CONTENTS
I. INTRODUCTORY SECTIOI\
Table of contents
Letter of transmittal
List of principal officials
Organizational chart
Map of the Cify
II. FINANCIAL SECTION
Independent auditors' report
Management's discussion and analysis
i-iii
iv - vii
viii
ix
X
PAGE
r -2
3 - 13
19
20 -23
24-53
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of net assets
Statement of activities
Fund Financial Statements
Balance sheet - govemmental funds
Reconciliation of balance sheet of govemmental funds to statement of net assets
Statement of revenues, expenditures, and changes in fund balances - govenrmental funds
Reconciliation of statement of revenues, expenditures, and changes in fund balances
of govemmental funds to statement of activities
Statement ofrevenues, expenditures, and changes in fund balances - budget and actual
general fund
Notes to Financial Statements
T4
15
16
T7
18
CITY OF PRATTVILLE. ALABAMA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2O1I
TABLE OF CONTENTS (Continued)
II. FINANCIAL SECTION (Continued)
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of funding progress of the City's defined benefit pension plan
SUPPLEMEI\TARY II\FORMATION
Combining balance sheet - nonmajor governmental funds
Schedule of funding progress of the City's post-employment benefits other than pensions 55
PAGE
54
56
Combining statement of revenues, expenditures, and changes in
fund balances - nonmajor govemmental funds 57
Combining balance sheet - nonmajor special revenue funds 58
Combining statement of revenues, expenditures, and changes in
fund balances - nonmajor special revenue funds 59
Budgetary comparison schedule - state gasoline excise tax fund 60
Budgetary comparison schedule - state gasoline and lubricating
oil excise tax fund 6l
III. STATISTICAL SECTION
Financial Trends
Schedule I Net assets by component 62
Schedule 2 Changes in net assets 63
Schedule 3 Fund balances of govemmental funds 64
Schedule 4 Changes in fund balances of govemmental funds 65
Revenue Capacity
Schedule 5 Net taxable sales by category
Schedule 6 Sales tax revenue payers by category
Schedule 7 Direct and overlapping sales tax rates
66
67
68
CITY OF PRATTVILLE. ALABAMA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 20 I I
TABLE OF CONTENTS (Continued)
III. STATISTICAL SECTION (Continued)
Debt Capacity
Schedule 8 Ratios of outstanding debt by type
Schedule 9 Ratios ofnet general bonded debt outstanding
Schedule l0 Direct and overlapping govemmental activities debt
Schedule I I Legal debt margin information
Demographic and Economic Information
Schedule l2 Demographic and economic statistics
Schedule l3 Principal employers
Operating Information
Schedule 14 Full-time equivalent city govemment employees by function
Schedule l5 Operating indicators by function/progrcm
Schedule 16 Capitalasset statistics by function/progrcm
PAGE
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70
7l
72
73
74
75
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77
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March 26, 2012
The Citizens of
The City of Prattville
Prattville, Alabama
The Comprehensive Annual Financial Report (CAFR) of the City of Prattville, Alabama (the City) for
the fiscal year ended September 30, 2011 is hereby transmitted. Responsibility for both the accuracy
of the data and the completeness and fairness of the presentation, including all disclosures, rests with
the City of Prattville, Alabama’s management. To the best of our knowledge and belief, the enclosed
data is accurate in all material aspects and is reported in a manner designed to present fairly the
financial position and results of operations of the various funds of the City and its component units.
All disclosures necessary to enable the reader to gain an understanding of the City’s financial
activities have been included.
The Report
The CAFR is presented in three sections: introductory, financial, and statistical. The introductory
section includes this transmittal letter. The financial section includes the management’s discussion
and analysis (MD&A), the basic financial statements for the primary government and its separately
presented component units, and the primary government’s combining and individual financial
statements and schedules, as well as the independent auditor’s report on the financial statements and
schedules. The MD&A contains a narrative introduction, overview, and analysis of the City’s
financial statements. It should be read in conjunction with this letter of transmittal. The statistical
section includes selected financial and demographic information, generally presented on a multi-year
basis. In contrast to the financial section information, the statistical section information has not been
audited.
This report includes all funds of the primary government and its component units. The primary
government provides a full range of services. These services include public safety, public works,
culture and recreation, and general administrative services.
The component units included in the reporting entity include the Autauga-Prattville Public Library,
Prattville Airport Authority, and Historical Prattville Redevelopment Authority and have been
included as separately presented component units on the City’s reporting entity in the CAFR.
v
GASB Reporting Requirements
Each year, management evaluates new GASB reporting requirements to determine applicability to the
City. The requirements issued by GASB that became effective during this fiscal period and those that
will become effective in the next fiscal period are described in this document.
GASB Statement 54, “Fund Balance Reporting and Governmental Fund Type Definitions,”
establishes new categories for reporting fund balance and revises definitions for governmental fund
types. This statement became effective during the fiscal 2011 period.
GASB Statement No. 57, OPEB Measurement by Agent Employers and Agent Multi-Employer Plans.
This statement is intended to improve consistency in the measurement and financial reporting of other
post-employment benefits (OPEB) such as retiree health insurance. The requirements of this
statement are effective for financial statements for periods beginning after June 15, 2011.
City Profile
The City of Prattville, Alabama is the County seat of Autauga County, was incorporated on August 8,
1865, and is located in south central Alabama. It serves a population of approximately 33,960. The
City of Prattville, Alabama operates under a Mayor/Council form of government with a fiscal year
from October 1st through September 30th. The Mayor and seven (7) Council members are each
elected to four (4) year terms. City services include police and fire protection; sanitation services;
sewer services; the construction and maintenance of highways, streets, and infrastructure; recreational
activities and cultural events.
Formal budgetary integration is employed as a management control device. On a day to be set by the
Council, the Mayor submits to the Council a balanced budget for the next fiscal year. The Council
schedules public hearings for the purpose of discussing and adopting the budget and may add to or
delete from the budget submitted by the Mayor as long as the budget remains in balance. The
Council, by a majority vote, shall adopt the budget. Activities of the General Fund and the State
Gasoline Tax Fund are included in the annual appropriated budget. The City also maintains an
encumbrance accounting system as one technique of accomplishing budgetary control.
Appropriations lapse at the end of the fiscal year unless expended or encumbered.
In order to prepare a financial report, it is necessary to identify all components of the reporting entity.
Potential component units were evaluated to determine whether they should be reported in the City’s
financial report. A component unit was considered to be part of the City’s reporting entity if it was
concluded that the City was financially accountable for the entity or the nature and significance of the
relationship between the City and the entity was such that exclusion would cause the City’s financial
statements to be misleading or incomplete. The Autauga-Prattville Public Library, Prattville Airport
Authority, and Historical Prattville Redevelopment Authority were determined to be the only
reportable component units and have been included in this report.
Economic Condition and Outlook
The proximity of the state capital and Maxwell Gunter Air Force Base make significant contributions
to the local economy.
The newly completed 350,000 square foot Medline building opened during the fiscal year providing
50 new jobs to the area. It will serve hospitals, nursing homes, surgery centers, and home care
agencies throughout the State of Alabama and northwest Florida.
vi
The City of Prattville, Alabama maintains a contract for service with The Prattville Area Chamber of
Commerce to provide economic development services. The Prattville Area Chamber of Commerce is
a voluntary partnership of business and professional people working together to build a healthy
economy and to improve the community’s quality of life. The Prattville Area Chamber of Commerce
has the responsibility to promote the economic wellbeing and to advocate for a positive business
environment. Chamber members are businesses, organizations, and individuals concerned with the
socio-economic climate of the community.
The Chamber works to improve the community, observing these objectives:
• To help businesses grow and prosper.
• To increase job opportunities.
• To encourage orderly expansion/development of all segments.
• To contribute to the overall economic stability of the community.
• To encourage and promote the nation’s private enterprise system of competitive
marketing.
Financial Information
Management of the City is responsible for establishing and maintaining an internal control structure
designed to ensure that the assets of the City are protected from loss, theft, or misuse and to ensure
that adequate data is compiled to allow for the presentation of financial statements in conformance
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. The internal control structure is designed to provide reasonable, but not
absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes
that: 1) the cost of a control should not exceed the benefits likely to be derived; and 2) that valuation
of costs and benefits requires estimates and judgments by management.
Single Audit - As recipient of federal and state financial assistance, the City is also responsible for
ensuring that an adequate internal control structure is in place to ensure compliance with applicable
laws and regulations related to those programs. This internal control structure is subject to periodic
evaluation by management.
As part of the City’s audit in accordance with Government Auditing Standards, tests are made to
determine the adequacy of the internal control structure, including that portion related to federal
assistance programs, as well as to determine that the City has complied with applicable laws and
regulations.
Budgeting - Budgetary tracking is maintained at the line item level by the encumbrance of actual or
estimated purchase amounts prior to the release of purchase orders to vendors. Accountability for
budgetary compliance is held at the department level. The objective of these budgetary controls is to
ensure compliance with legal provisions embodied in the annual appropriated budget approved by the
City’s governing body. Purchase orders resulting in an overrun of a department balance are released
only after the approval of the Finance Director or Mayor.
Budget amendments are effected by resolution enacted by the governing body when needed.
Activities of the General Fund and the State Gasoline Tax Fund are included in the budget.
Encumbrances lapse at year-end; however, encumbrances remaining against a positive department
budget balance may be re-appropriated as “prior year carryover.”
The City's budget is prepared on a basis other than accounting principles generally accepted in the
United States of America (GAAP) insofar as encumbrances are included with expenditures.
Cash management and investments - It is the policy of the City to invest public funds not required for
immediate operations in a manner that will provide the highest investment retum. The priorities for
City investnents shall be legal compliance, liquidity, and safety of the investrnents. All financial
institutions holding City deposits are Qualified Public Depositories (QPD) authorized by the Security
for Alabama Funds Enhancement (SAFE) progftrm. The SAFE progrcm provides a collateral pool
administered by the Alabama State Treasurer.
During fiscal year 2011, idle cash was held in the demand deposit account which is cunently earning
0.70o/o.
Healthcare costs - With the healthcare costs continuing to increase the City of Prattville, Alabama
opened the primary healthcare clinic in 2011. This clinic provides City employees and their
dependents with those services that would be rendered by a family practice physician. The City hired
CareHere, LLC to manage all aspects of operations for these clinics.
General Fund reserves - Management has an informal goal of achieving a net ending fund balance in
the General Fund that is equal to or greater than l5Vo ofthe total expenditures and other financing
uses.
Other Information
Independent audit - The City is required by State law to undergo an annual audit by independent
public accountants; to meet federal requirements of the Single Audit Act Amendments of 1996, and
the resultant issuance of OMB Circular No. A-133 (Audits of States, Local Govemments, and Non-
hofit Organizations), the City's audit report must be signed by a certified public accountant. The
accounting firm of Jackson Thomton & Co., P.C. was selected through a competitive proposal
process. The independent auditor's report on the basic financial statements and the combining and
individual fund statements and schedules is included in the financial section of this report.
lnformation related to this Single Audit, including the schedule of federal financial assistance,
findings and recommendations, and independent auditor's reports on the intemal conhol structure and
compliance with applicable laws and regulations, are generally meaningful only to oversight agencies
and therefore, have not been included in this report. This information is contained in a separate
Single Audit report, which is available for review at the Finance Department in City Hall l0l West
Main Street, Prattville, Alabama 36067.
Acknowledsements - The preparation of the comprehensive annual financial report could not be
accomplished without the dedicated services of all City departments but in particular an effrcient
Finance Department staff. We express appreciation to each member of these departments for their
contributions made in the preparation of this report.
Respectfully submitted,gftry
Dotiglas C. Moseley
Interim Finance Director
vll
Mayor
Willie Lee Wood, Jr,
Nathan Fank, President Pro Tempore
Thomas Miller
Municipal Court
City Attorney
City Prosecutor
City Clerk
Interim Finance Director
Engineering
Sanitation
Police
Fire
Vehicle Maintenance
Wastewater
Leisure Services
Human Resources
Planning
CITY OF PRATTVILLE, ALABAMA
LIST OF PRINCIPAL OFFICIALS
AS OF SEPTEMBER 30" 2OI I
CITY COII}{CIL
Mike Renegar, President
HEADS OF DEPARTMENTS
Bill Gillespieo Jr,
Dean R. Argo
Albert Striplin
Ray Boles
Judge Louis C. Colley
David McDowell
Robert E. Riddle
Stephanie J, Southerland
Douglas C. Mosely
Robby Anderson
Edward Clinton
Chief Tim Huggins
Chief Terry Brown
Kenny Rawlinson
Rick Teague
Andrew Peterson
Lisa Thrash
Joel Duke
vlll
Citizens of Prattville
City Judge
Information
Technology
Finance
Human
Resources
Benefits
Management
Judicial
Public Safety
Leisure
Services
Sanitation
Urban
Management
City Clerk
Authorities,
Boards &
Commissions
Wastewater
Performing
Arts
Engineering
Planning
Vehicle
Maintenance
Animal Control
Public Works
Mayor
City
Council
Payroll
Risk
Management
Accounting
Accounts
Payable
Prosecuting
Attorney
Executive
Department
Computer
Forensics
Drug
Enforcement
Investigations
School
Relations
Sex Offender
Registry
Special
Operations
Traffic Patrol
Building
Maintenance
Codes &
Standards
EMS
Fire Marshal
Fire Suppression
Fire Training
Police
Fire
Recycling
Code
Enforcement
GIS
Policy or Judicial Authority
Department
Department Division
Legends:
City Attorney
Street
Business
Licenses
Revenue
General
Government
Arts &
Recreation
Adult Programs
& Sports
Custodial
Services
Park
Maintenanace
Senior Programs
Youth Programs
& Sports
Service Area
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CITY OF PRATTVILLE, AL 2011
Ryan Pecharka, GIS Coordinator
FINANCIAL SECTION
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MONTGOMERY, AIABAMA
Dothan
Prattville
Wetumpka
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and
Members of the City Council
City of Prattville, Alabama
We have audited the accompanying financial statements of the 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, 2011, 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. The financial statements of the Autauga Prattville Public Library and
the Historical Prattville Redevelopment Authority were not audited in accordance with Government
Auditing Standards. 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 of the City of Prattville, Alabama, as of
September 30,2011, and the respective changes in financial position, thereof for the year then ended
in conformity with accounting principles generally accepted in the United States of America.
ln accordance with Governmental Auditing Standards, we have also issued our report dated
March 26, 2012 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 of that report is to describe the scope
of our testing of internal control over financial reporting and compliance and the results of that testing
and not to provide an opinion on the internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Governmental Auditing Standards
and should be considered in assessing the results of our audit.
1
A PROFESSIONAL CORPORATION CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS MEMBER OF AMERTCAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNIANTS
The management's discussion and analysis and the schedule of funding progress of the Employees'
Retirement System and the Employees' Health lnsurance Plan are not a required part of the basic
financial statements but are supplementary information required by accounting principles generally
accepted in the United States of America. 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
opinions on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of PratWille, Alabama's basic financial statement. The introductory
section, combining individual nonmajor fund financial statements, the nonmajor fund budgetary
comparison schedules, and statistical tables are presented for the purposes ofadditional 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 of the 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 and statistical tables have not been subjected to the auditing procedures applied
in the audit of the basic financial statements and, accordingly, we express no opinion on them.
{t'r},r*M4h Pc
Prattville, Alabama
March 26,2012
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Prattville, 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 30,2011. 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,
2011, by ($8,484,710) (net assets). Of the net asset balance amount, ($42,282,379)
(unrestricted net assets) is the deficit balance of the City representing the
indebtedness incuned for incentive obligations including the purchase of
development property supporting the significant retail development activities within
the City which originated in the fiscal years ended 2006 and 2008.
During the year, the City's total net assets increased by $8,723,990, as revenues of
$40,853,982 exceeded expenses of $32,129,992. The increase in revenue is due to
the increase in sales tax revenue from the I cent increase in the sales tax rate, the
increase in charges for services and the increase in donated infrastructure.
The decrease in expenses over the prior year is primarily due to the decreased
personnel costs and decreased operational costs. The City's personnel expenses
decreased by approximately 9.9Yo during the current fiscal year.
Under the Government Accounting Standards Board Statement Number 45,
Accounting and Financial Reporting by Employees for Post-Retirement Benefits
Other than Pensions (GASB 45), the City recognized an expense of $271,840 in the
current year to record unfunded OPEB obligation.
As of the close of the current fiscal year, the City's governmental funds reported
combined ending fund balances of $ I ,548,451 .
Overview of the 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: (l) 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 of Prattville, Alabama.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of
the City of Prattville, 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 (I{PRA), 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
serye as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities 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 of Prattville, 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 culturaVrecreational. 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 of related 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 of Prattville, 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
modiJied 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 if there 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.
The City maintains four individual governmental funds. lnformation is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures,
and changes in fund balance of the major funds. Data from the one non-major fund is presented in
the other governmental fund column of the statements.
The City adopts an annual appropriated budget for its general fund. A budgetary comparison
statement has been provided for the general fund to demonstrate compliance with this budget.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided
in the government-wide and fund financial statements. The notes to 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 24 through 53 of this
report.
Other Information
The combining statements referred to earlier, which present more detailed views of non-major funds
used in governmental activities, can be found beginning on page 56 of this report.
Government-Wide Financial Analysis
The City's condensed statement of net assets as of September 30,2011 and 2010, derived from the
government-wide statement of net assets is presented below.
GOVERNMENTAL
ACTTVITIES
Current and other assets
Capital assets, net of depreciation
Restricted assets
Total assets
Long-term liabilities outstanding
Other liabilities
Total liabilities
Net assets:
Invested in capital assets, net of related debt
Restricted
Unrestricted
56,807,992 52,782,092
2Jl-l
$ 5,413,067
51,205,094
189,83 I
2010
$ 4,7 55,426
47 ,793,359
233,307
60,47 8,3 l9
4,814,3 83
63,708,002
6,282,790
65,292,702 69,990,792
33,144,191
653,478
(42,282,379)
28,197,019
85 I ,251
(46,256,970)
Total net assets $ (8,484,710)$ (17,208,700)
The largest component of the City's net assets as of September 30, 201 I reflects its investment in
capital assets (i.e. 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 fi..rture 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, 2011 increased by $3,411,735 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 ($8,484,710). The increase in net assets over the prior year is attributed primarily
to the acceptance of donated infrastructure of $5,3 59,200 and the reduction in debt of $3,229,683.
A portion of net assets is restricted, or has restrictions on how they may be used. Governmental
activities restricted net assets totaled $653,478 at September 30,201I and are restricted for use in
public safety, 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 30,2011,
reported a deficit balance in unrestricted net assets in governmental type activities of ($42,282,379\,
of which $42,240,000 is due to outstanding general obligation warrants that were issued in the fiscal
years ended September 30, 2006 and 2008 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 of this debt.
The following presents the City's condensed statement of activities for the fiscal years ended
September 30,2011 and 2010 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 increased by
$8,723,990. This increase includes the acceptance of donated infrastructure of $5,359,200 with the
remainder of the increase primarily due to an increase in the rate for general sales tax, use tax,
restaurant tax, and rental tax; increase in the wastewater fees; reduction in workforce; and a reduction
in operating expenses.
CITY OT PRATTVILLE, ALABAMA
STATEMENT OF ACTIVITIES
GOVERNMENTAL
ACTTVITIES
Revenues:
Program revenues:
Charges for services
Operating grants, capital grantso 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
Increase (decrease) in net assets
Net assets - beginning
Net assets - ending
19,223,850 l3,l 69,478
2011
$ 12,182,897
6,040,953
19,.432,210
2,545,7 50
239,616
153 ,240
259,316
6,984,3 18
7,235,404
13,369,083
2,080,642
2,460,545
8,723,990
( 17,?08,7.90)
$ . (8,4Y,Zrg)
2010
$ 10,840 ,248
2,329,230
16,796,679
2,500,129
240,547
l6l ,534
249,163
22,630,132 19,948,052
40,853,982 33,1 I 7,530
32,129,992 37,634,635
9,124,172
8,7 55,792
14,719,827
2,449,1 84
2,585,660
(4,517 ,105)
(y1,691,595)
$ ( I 7,?08,700)
Expenses and Program Revenues for Governmental Activities
Governmental activities increased the City of Prattville, Alabama's net assets by $8,723,990 for fiscal
year 2011. The key elements of the increase in net assets are the increases in revenue and the
decreases in expenses from the prior year as follows:
r Revenues from recurring sources increased by $723,619 due to the increase in sewer fees.
o Sales tax revenue increased 92,635,531 of which $1,819,061 is due to the increase in the
sales tax rate of I cent.
o Personnel expenditures decreased over the prior year by approximately 9.9% which
decreased all functional expense categories.
o The decrease in public works expenses by $1,520,388 is due to a decrease in personnel
expenses and a decrease in operating expenses.
o Public safety expenses decreased over the prior year by $1,350,744, primarily due to the
decrease in personnel expenses and a decrease in operating expenses.
o General government expenses decreased $2,139,854 due to a reduction in funding to
City/County Services and Community Initiatives as well as reductions in personnel and
operating costs.
o lncrease in donated infrastructure of $3,973,400.
9
-
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
2011 Expenses
2011 Revenues
2010 Expenses
2010 Revenues
10
Program and General Revenues for Governmental Activities
30%
48%
6%
15%
1%
0%
0%
0%
Revenues By Source - Governmental Activities - FYE 2011
Charges for services
Sales tax
Property taxes
Grants and contributions
Motor fuel taxes
Intergovernmental revenues
Miscellaneous
Investment earnings
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
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 expendable resources. Governmental fund types include
general, debt service, capital projects, and special revenue funds. Such information is useful in
assessing the City’s financing requirements. Specifically, unassigned 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, 201l, governmental funds reported a combined ending fund balance of
$1,548,451, an increase of $2,133,024 in comparison with prior year balance. Of this balance
$159,850 is not available for new spending because it is a prepaid item; $643,731 is reshicted public
safety and road projects, and capital improvements; $12,185 is committed to sewer improvements;
$100,01I is assigned to debt service; and$72,642 is assigned for other purposes.
The fund balance of the general fund increased $2,559,815 during the current fiscal year after other
financing sources including fund transfers. Total revenue increased 53,903,647 as compared to the
prior year. The most significant increase came from the increase in sales tax of $2,635,531 of which
$1,819,061 was the result of the I cent sales tax increase. Amount reported as charges for fees and
services increased $1,091,142 due to an increase in the sewer charges,
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, 20ll was $51,205,094 (net of accumulated depreciation). This
investment in capital assets includes land, infrastrucfure, buildings, improvements, construction in
progress, vehicles, and machinery and equipment.
Major capital asset additions during the year include:
Investment in infrastructure of $5,708,670 resulting from donated infrastructure from
residential developments, levee improvements, and Cooters Pond improvements,
Purchase of vehicles of $32,2 I 8.
Purchase of office, non-office, and computer equipment of $ 161,899.
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 72,972,347
Additional information on the City's capital assets can be found in Note 5 on page 32 of this report.
2,661,060
447,072
10,713,673
9,134,53 I
5,973,0 | 0
5,697 ,600
38,345,401
ll
Long-term debt - As of September 30,2011, the governmental activities had total debt outstanding of
$61,478,319.
Outstanding debt:
Warrants and other notes payable
Capital lease payable
Post-retirement benefits other than pensions
Compensated absences
Total 61,47 8,3 l9
The City of Prattuille, Alabama's total debt outstanding decreased by $3,229,683 during the cunent
fiscal year. This decrease of 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 30,2011
Budget to actual statements and schedules are provided in the financial statements for the general
fund and gasoline tax fund. Columns are provided for both the original adopted budget as well as the
final budget. These budgets are followed by columns for actual expenditures and for variances
between the final budget and actual expenditures.
As of September 30,2011, actual operating revenues for the general fund were more than the
budgeted amount by $1,723,807, or 5.2%. The primary reasons for the variance are as follows:
Tax revenues were more than budgeted revenue by $1,044,215, which is mainly the
increase in sales tax revenue of $723,397 over what was budgeted.
Licenses and permits were more than budgeted revenue by $244,494, which consists of
an increase in business license revenue of $200,733 over what was budgeted.
Charges for fees and services were more than budgeted revenue by $216,305, which is
a result in an increase in ambulance revenue and sanitation and sewer fees.
As of September 30,201l, actual expenditures were more than budgeted expenditures by $5,338,166
due to the following:
Debt service actual expenditures were more than budgeted expenditures by $5,675,506.
This is due to the fact that the payment of the bridge loans that the City obtained during
the year was not budgeted. Proceeds from these bridge loans were included in the
City's other financing sources.
General government actual expenditures were more than budgeted by $260,128.
Public works actual expenditures were less than budgeted expenditures by $369,213.
Cultural and recreational actual expenditures were less than budgeted expenditures by
$258,135.
58,105,381
7 48,347
1,353,182
1,27 1,409
t2
Economic Factors and Year 2012 Budget
Economic conditions for the City of Pratwille, Alabama remain stable in the current environment.
o 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 55.77% of general fund revenues in fiscal year 2011. In the current
economic climate, the City has instituted a temporary increase to the Crty's sales tax
rate to be used to service the City's debt.
The unemployment rate for Autauga County, where the City of Prattville, Alabama is
located, is cunently 6.8%, which is a decrease over the prior year. The unemployment
rate compares favorably to the state's current unemployment rate of 75% and is
favorable to the national average rate of 8.5%.
The level of taxes, 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 citizenso taxpayers, customers and investors, and
creditors with a general overview of the City of Prattville, Alabama's finances and to demonstrate the
City's accountability. Questions concerning any of the information provided in this report or requests
for additional financial information should be addressed to the City Clerk, l0l West Main Sheet,
Prattville. Alabama 36067 .
l3
BASIC FINANCIAL STATEMENTS
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF PRATTVILLE, ALABAMA
STATEMENT OF NET ASSETS
SEPTEMBER 30. 2OI I
PRIMARY
GOVERNMENT COMPONENT UNITS
HISTORICAL
AUTAUGA.PRATTVILLE PRATTVILLE PRATTVILLE
GOVERNMENTAL PUBLIC AIRPORT REDEVELOPMENT
ACTIVITIES LIBRARY AUTHORITY AUTHORITY
ASSETS:
Cash and sash equivalents
Taxes receivable
Accounts receivable, net
Inter-governmental receivable
Prepaid items
Defened debt expense
Capital assets, not depreciated
$ 1,297,518 $
1,970,774
g0g,gl4
159,850
1,076,1I I
3,1 08,1 32
189,831
30,077
44,583 106,779
2,626,512
133,481 6,436,303
227,ll0 $ 109,937 $ 43,995
36,366
183,500
250,967Capital assets, net of accumulated depreciation 48,096,962
Restricted assets:
Cash and cash equivalents
Accounts receivable. net
Total assets
LIABILITIES:
Accounts payable
Accrued liabilities
Accrued interest
Defened revenues
Other liabilities
Notes payable
Long-term liabilities :
Portion due or payable in one year:
General obligation warrants payable
capital leases, and other
long-term debt
Compensated absences
Post-empl oyment benefi ts
Portion due or payable after one year:
General obligation wanants payable,
capital leases, and other
long-term debt
Compensated absences
56,847,992
Post-employment benefits 1,281,552
Total liabilities
NET ASSETS:
Invested in capital assets, net of related debt
Restricted for:
Law enforcement
Road projects
Debt service
Capital projects
Cultural and recreational
Self insurance fund
Unrestricted (deficit)
65,292,702
9,554
139,398
405,174 9,458,560 514,828
2,619 74,102
22,734
32,168
24,491 45,850
603,398 200,777
57,521 701,991 246,627
133,481 8,434,926
94,405
251
213,921 227 ,238 268,201
1,967,859
492,053
836,047
518,424
1,000,000
3,455,134
779,233
71,630
54,398,594
492,176
33,144,191
162,145
256,012
5
225,574
8,776
966
!42,282,3,72
Total net assets $. .(8,484,719) $
The accompanying notes are an integral part of these financial statements.
347,653 $ 8,756,569 $ 268,201+-
-
l4
CITY OF PRATTVILLE, ALABAMA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2OII
PROGRAM REVENUE
NET (E)(PENSE) REVENUE AND CHANGES IN NET ASSETS
PRIMARY GOVERNMENT COMPONENT UNITS
E)(PENSES
FINES. FEES, OPERATING
A}.ID CHARGES GRANTS AND
FORSERVICES CONTRIBUTTONS
CAPITAL
GRANTS AND GOVERNMENTAL
CONTRIBUTIONS ACTIVITIES
AUTAUGA-
PRATTVILLE
PUBLIC
LTBRARY
HISTORICAL
PRATTVTLLE PRATTVTLLE
AIRPORT REDEVELOPMENT
AUTHORTTY AUTHORITY
ACTIVTTIES:
Primary government:
Govemmental activities:
General government
Public safety
Public works
Cultural and recreational
Interest on long-term debt
Total primary government
Component units:
Autauga-Pratwille Public Library
Prattvi I le Airport Authority
Historical Prattvil le Redeve lopment Authority
$ 6,984,318 $ 4,990,89413,369,083 1,553,044 $7,235,404 5,400,680
2,080,642 238,279
$ 543,257 $ 31,906 $486,606 206,588
193,703 $ 227,590
5,619,660
91,310 $34,808
590,334
(1,993,424)
(11,394,746)
3,784,936
(1,942,363)
2,460,545 (2,460,545)
s nln9n s nJu,89? $ 193,703 $ 5,84?,250 (13,906,142)
(Jl
(395,233)
310,316
18,473
(395,233) 310,316 18,473Total component units
42,076 60,549
$ 1,071,939 $ 299 $ 81,310 S 6X,tn
General revenue:
Sales taxes
Real and personal property taxes
lntergovernmental revenues
Investment earnings
Miscellaneous revenue
Total general revenues
CHANGE IN NET ASSETS
NET ASSETS - BEGINNING
NET ASSETS. ENDING
19,432,210
2,545,750
392,856
32,621
226,695
385"000
1,500 369
5,000
ll6
5,1 1622-630.132 386.500
9,723,990 (8,733 ) 3 10,685 23,589
(17,208,700) 356,386 8,445,884 244,612
$ (8,484,710) S 347,653 $ 8,756,569 $ 268,201
The accompanying notes are an integral part of these financial statements.
CITY OF PRATTVILLE, ALABAMA
BALANCE SHEET
GOVERNMENTAL FTJNDS
SEPTEMBER 30, 2OI I
CAPITAL
PROJECTS
GENERAL FLINDS
DEBT OTHER TOTAL
SERVICE GOVERNMENTAL GOVERNMENTALFIINDS FUNDS FUNDS
ASSETS:
Cash and cash equivalents
Receivables:
Taxes receivable
Accounts receivable, net
Prepaid items
Restricted assets:
Cash and cash equivalents
Total assets
LTABILTTIES AND FUND BALANCES:
Liabilities:
Accounts payable
Accrued liabilities
Other liabilities
Total liabilities
Fund balances:
Nonspendable:
Prepaid items
Restricted for:
Law enforcement
Road projects
Capital improvements
Cultural and recreational
Self-insurance fund
Debt service
Committed to:
Sewer improvements
Assigned to:
Debt service
Other purposes
Unassigned
Total fund balances
Total liabilities and fund balances
$ 4,046,t60 $ 224,610 $ 5 $ 256,012 $ 4,526,787-.'--
-
$ 9A5,646
1,970,774
820,064
159,850
189,826
$ 135,860
88,750
256,0t2 $1,297 ,518
1,970,774
908,814
159,850
189,831
$ 1,967 ,859
492,053
518;4?4
1,979,336
159,850
162,145
964 $ 224,610
9,776
966
1 2,1 85
100,01 I
72,642
550,285
I,967,859
492,053
518,424
2,978,336
256,012
159,850
162,145
256,012
225,57 4
8,776
966
5
12,185
I 00,01 I
72,642
550,285
1,067 ,824 224,610 256,012 1,548,451
,1r9,46,t69 _S 224,6!0__$_:_ $ , , 256,912 $ , =, !,526J8?
The accompanying notes are an integral part of these financial statements.
l6
CTTY OF PRATTVILLE. ALABAMA
RECONCILIATION OF BALANCE SHEET OF
GOVERNMENTAL FI.JNDS TO STATEMENT OF NET ASSETS
SEPTEMBER 30.2OI I
Difrerences in amounts reporled for govemmental activities in the statement ofnet assets on page 14.
Total fund balances - govemmental funds
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the govemmental funds. Those assets consist of:
Land
Construction in progress
Land improvements, net of $5,087,250 accumulated depreciation
Buildings and building improvements, net of$3,181,100 accumulated
depreciation
Office, non-office, and computer equipment, net of $3,630,678 accumulated
depreciation
Vehicles, net of $4,484,137 accumulated depreciation
Infrastructure, net of $5,3 83,888 accumulated depreciation
Total capital assets
Defened debt expenses are allocated over the life of the debt and are shown
net of amortization 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, 201 I were:
Accrued interest on bonds
General obligation warrants and other notes payable
Unamortized net premium
Capitalized lease obl igations
Compensated absences
Post-employment benefit plans other than pensions
Total long-term liabilities
Total net assets of governmental activities
The accompanying notes are an integral part of these financial statements.
$ 2,661,060
447,072
4,047,281
7,532,573
2,066,922
1,488,673
32,961,513
836,047
57,718,523
386,858
748,347
| ,27 | ,409
1,353,182
$ 1,548,451
5l ,205,094
I ,076,1 I I
(62,314,366\,
$ (8,484,710)
t7
CITY OF PRATTVILLE, ALABAMA
STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30. 2OI I
GENERAL
CAPITAL
PROJECT
FUNDS
DEBT
SERVICE
FUNDS
OTHER TOTAL
GOVERNMENTAL GOVERNMENTAL
FUNDS FUNDS
REVENUES:
Sales taxes
Real and personal property taxes
Licenses and permits
Intergovernmental revenues
Charges and fees for services
Fines and forfeitures
Interest
Miscellaneous revenues
Total revenues
EXPENDITURES:
Current:
General governmental
Public works
Public safety
Cultural and recreational
Capital outlay
Debt service:
Principal payments
Interest and fiscal charges
Total expenditures
Excess ofrevenue over (under) expenditures
OTHER FINANCING SOURCES (USES):
Proceeds from notes payable
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE . BEGINNING
FUND BALANCE. ENDING
s 19,432,210
2,545,7 50
4,990,894
6,655,705
536,298
32,611
6!7,?8e
34,841,457
5,827,204
6,516,302
12,712,387
1,749,355
194.668
$ 260,469
260,460
146,667
3,1 55
283,468
6,463,190
182,8J233,645,939 433,29-0
1,195,519 _ (172,839)
5,637,303549,862 136,457
- (4,822,869)
1,364,296 136,457
2,559,815 (36,373)
(1,491,991) .260,983_
$ 1,067,824 $ 224,61A
l0
392,856
392,856
19,432,210
2,545,7 50
4,990,894
392,856
6,655,705
536,298
32,621
35,494,783l0
(80,173)
5,973,871
6,519,457
12,712,387
1,749,355
478,136
9.073,190
2,49?,666
38,999,062
2,610,000
2,309.,834
4,919334
(4,91P,824)_
4,839,65 |
80,178
392,856 . (3,594,279)
5,637,303
5,525,970
566.257 (584,573)w
@ffi#
(310,245) 2,133,024
The accompanying notes are an integral part of these financial statements.
CTTY 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, 2OI I
Differences in amounts reported for govemmental activities in the statement of activities on page I 5.
Net change in fund balance - total govemmental funds $ 2,133,A24
Capital outlay, reported as expenditures in govemmental funds, is shown as capital assets
in the statement ofnet assets. 443,47t
Donations ofcapital assets increase net assets in the statement ofnet assets but do not
appear in the govemmental funds because they are not financial resources. 5,359,200
Depreciation expense on govemmental capital assets included in the govemmental activities
in the statement ofactivities. (2,353,180)
The net effect oftransactions involving the sale ofcapital assets is to decrease net assets
in the statement of net assets. Q7,762)
Loan proceeds provide cunent financial resources to the govemmental funds and thus contribute
to the change in fund balance, However, issuing debt increases long-term
liabilities in the statement of net assets:
Notes payable
Repayment of long-term debt is reported as an expenditure in governmental funds,
but a reduction of long-term liabilities in the statement of net assets:
Capitalized I ease obl i gati ons
General obl igation warrants payable
Notes payable
Some expenses reported in the statement of activities do not require the use of current financial
resources and, therefore, are not reported as expenditures in governmental funds;
Accrued interest payable
Compensated absences
Post-employment benefit plans other than pensions
Govemmental funds report the effect of issuance costs, premiums and
discounts, and similar items when debt is first issued, whereas these
amounts are deferred and amoriized in the statement of activities:
Amortization
Change in net assets of governmental activities
(5,637,303)
9,073,I 90
(221,822\
(34,835)
The accompanying notes are an integral part of these financial statements,
.(5,617,303)
491,497
2,944,390
. s,637J03
32,121
17,897
.-, (?7l ,810)
,(34,835)
$-, 8,??3J90
l9
CITY OF PRATTVILLE. ALABAMA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30. 20I I
BUDGETED AMOUNTS
ACTUAL AMOUNTS
BUDGETARY
BASISORIGINAL FINAL
VARIANCE WITH
FINAL BUDGET .
POSITIVE (NEGATIVE)
REVENUES:
Taxes.
Ad valorem taxes
Sales taxes
Salestaxes-lcent
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
Zoningand plat fees
Total licenses and permits
Charges and fees for services,
Ambulance fees
Sewer charges
Sanitation fees
Sewer impact fees
Street cut/repairs
Recreation rentals
Total charges and fees for services
2l I.500 2l l,500
- !8,0q0 l8,00q
4 ,7 46,400 _!,7 46,40L
$ 2,484,600
13,927,145
2,000,000
845,000
150,000
44,000
215,000
15,000
42,000
19,000
975,000
2l7,000
20,933 ,7 45.
4,122,000
4,900
390,000
$ 2,484,600
13,927,145
2,000,000
845,000
l50,000
44,000
215,000
15,000
42.000
19,000
975,000
2l 7,000_
20,933 !U5 _
4,122,004
4,900
390,000
2,545,7 50
14,831 ,481
I ,8 | 9,061
886, I 35
| 55,641
53,504
223,157
| 5,254
40,473
16,647
I ,090,I 08
3A0,7 49
6l ,l 50
904,336
(180,939)
4l,l 35
5,641
9,504
8,1 57
2s4
(1,527)
(2,353)
I I 5,108
83,7 49
2l,977,960 044 "215
4,322,733
4,47 5
423,017
202,479
38, I 90
200,7 33
(425)
33,017
(9,021)
24,190
4,990,894 244,494
900,000
2,81 5,000
2,306,500
l47,000
4,400
266,500
6,439 ,400
900,000
2,8 | 5,000
2,306,500
| 47,000
4,400
?66,500_
6,439,400
1,016,746
2,900,51 8
2,418,504
80,754
804
238,279
| 16,7 46
95,6l g
l 12,004
(66,246)
(3,596)
]2822\L
6.6s5.705 216,305
(Continued)
The accompanying notes are an integral part of these financial statements.
20
CITY OF PRATTVILLE, ALABAMA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FLIND BALANCES
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2OI I
ORIGINAL FINAL
ACTUAL AMOUNTS VARTANCE WITH
BUDGETARY FINAL BUDGET -
BASIS POSITryE NEGAIryEL
BUDGETED AMOUNTS
REVENUES: (continued)
Fines and forfeitures:
Court fines
Conection fund
Drug proceeds
Court costs
Total fines and forfeitures
Miscellaneous revenues :
Donations
County commission - RTJ
Interest income
Accident reports
Friday night live club
Miscellaneous income
Parades
Performing and creative arts
Penalties
Sale of surplus equipment
Stanley stadium
Swimming pool concessions
Lambert property tower
Grant income
Insurance proceeds
Bullet proof vest grant
Law enforcement BG funds
Total miscellaneous revenues
57,500 ,52,q00y9,700 :149,700
336,700
55,500
75,000
50,000
45,000
10,700
1,000
52,978
7,800
25,500
17,000
6,000
5,500
7,200
179 ,7 49
10,000
5,700
336,700
55,500
429,073
22,630
16,410
68. I 85
92,373
22,630
(39,090)
10,685
s36"298 86.598
75,000
50,000
45,000
10,700
1,000
52,978
7,800
25,500
17,000
6,000
5,500
7,200
221,727
10,000
5,700
85,000
32,611
8,417
40,494
5,245
44,146
47,836
15,566
2,950
1,518
14,460
328,745
46,164
310
7,238
10,000
(50,000)
(12,389)
(2,283)
( I,000)
(t2,484)
(2,555)
18,646
30,836
9,566
(2,650)
1,518
7,260
107,01 8
36,164
(5,390)
(62)
Total revenues
7,300 7,300
, 59.6,4?7 548,405
$ 33,075,672 $ 33,117,65A
690.600 1 32.1 95
34,84r,457 1,723,807
(Continued)
The accompanying notes are an integral part of these financial statements.
CITY OF PRATTVILLE" ALABAMA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FLTND BALANCES
BUDGET AND ACTUAL
GENERAL FLIND
FOR THE YEAR ENDED SEPTEMBER 30" 2OI I
ACTUAL AMOTINTS
BUDGETARY
BASIS
BUDGETED AMOUNTS
VARIANCE WITH
FINAL BUDGET -
POSTTTVE OIEGATTVE)oRrqrNAL
$ 208,261
197,221
270,694
605,657
257, I 58
334,146
991,928
891,694
85 5,000
145,000
5qq,3-6 |
5,257 ,l?0
1,136,439
| ,725,955
1,159,794
2,336,999
FINAL
EXPENDITURES:
General government:
Executive
Legislative
Judicial
Administrative finance
Administrative city clerk
Human resources
Information technology
Vehicle maintenance
Sales tax incentives
Cify/County services
' o'ffi:i ,J#l';'
L"Jj, -,,, ",
Public works:
Street
Sanitation
Planning and development
Wastewater
Urban management
un*t"TrT"bric
works
Public safety:
Police
Fire
Total public safety
Cultr"rral and recreation :
Leisure services
Performing and creative art
Total cultural and recreation
Debt service:
Principal
Interest
Total debt service
$ 212,842
197,280
278,244
605,657
258,286
334,283
991,928
892,194
85 5,000
145,000
500,36 !
5,?7-l-;075.
1,202,001
| ,729,213
| ,l59 ,794
2,336,999
$ 265,419
l7l,l38
399,677
688,708
339,177
515 ,47 4
1,097 ,594
852,067
889,732
145,000
| 67 ,217
(52,577)
26,142
(tzt,433)
(83,051)
(80,891)
(l8l,l9l)
( I 05,666)
40,127
(34,732)
333,144
5,53 1,203 (260,128)
686,553
1,701,084
1,086,954
2,098,085
358, I 25
670.8 I 3
515,448
28,129
72,840
238,914
(358,125)
(127,991)542,820 542,824
6,2,02,00q - p,9.70,827 -
6,223,059 6,223,0596,4sq,?ll 6,495,?58
I 2,6q0,91 7 t2,7 L?,017
1,800,048 1,800,326
. 207 ,164 .?W ,1642,0a7,212 2,007,4?A
821,042 821,042
t 4,9 ,47 ! 149 ,+7 4
97 0,516 97 0,516
6,601 ,614 369,213
6,228,005
6,529,07 5
(4,946)
(33,1 l7)
12,7 5l ,084 (38,063)
I ,591 ,184
l58,l7l
209,142
48,993
| ,7 49,355 258, I 35
6,463,190
t82.832
(5,642,,1 48)
(33,358)
6,646,022 (5,675,5 06)
(Continued)
The accompanying notes are an integral part of these financial statements.
22
CITY OF PRATTVILLE, ALABAMA
STATEIVIENT OF REVENUES, EXPENDITURES, AND CHANGES TN FUND BALANCES
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2OI I
EXPENDITURES : (continued )
Transfers:
Transfers to component units
Total transfers
Total expenditures
ACTUAL AMOTJNTS VARIANCE WITH
BUDGETED AMOUNTS BUDGETARY FINAL BUDGET.
ORIGINAL FINAL BASIS POSITTVE (NEGATIVE)
$ 277 ,73a $ 277 ,732 S 26.2,54? $ 8,1 83
277,732 277 ,732 269,549
(4,919,903) (4,919,903) (4,686,412)
(136,457)
549,862
Transfers to debt service fund
Transfers to capital improvement fund
Transfer from special revenue fund
Proceeds from notes payable
Total other financing sources (uses)
Deduct other reconciling items to adjust from
budgetary basis to modified accrual basis:
Change in encumbrances
NET CHANGE IN FUND BALANCE, MODIFIED ACCRUAL BASIS
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
The accompanying notes are an integral part of these financial statements.
8,1 83
282024,603 28;216,657 33,554,9,23, (5,338,1 66)
Excess ofrevenues over (under) expenditures 4,981,069 4,90!p93 1,286,634 (3,614,359)
Other financing sources (uses):
233,491
(t36,457)
549,862
Net change in tund balance, budgetary basis _$ 266)66_ _$_0_U19I 2,650,930 -{-?,669,!19
205,000
G,714.903) @.919.903) 1,364,296 6,284,199
. (el,lls)
- (?l'l lJ)
2,559,81 5
( I ,491 ,991 )
$ = 1,067,,824
23
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2OI I
NOTE I - SUMMARY OF SIGNIFICANT ACCOI.JNTING POLICIES:
Reporting entity - The City of Prattville, Alabama (the City) was incorporated under the laws of the
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 of its operational or financial relationship with
the City. Each discretely presented component unit is reported in a separate column in the
government-wide financial statements to emphasize that it is legally separate from the City.
The component unit's column in the combined financial statements includes the financial data of the
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 of the 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 of the City for the year ended September 30,
2011. 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, 201 L The Authority also operates on a fiscal year ending September 30. Complete
financial statements of the 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 FIPRA and appoints its governing body. Based on this criteria,
the HPRA is included as a component unit of the City for the year ended September 30, 201L
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 appointrnents. The City Council appoints board members to the Water Works Board of the City
of Prattville, the Capital Improvement 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 of the City; therefore, their financial information
is not reflected in the Citv's financial statements.
24
CIry OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2OI I
NOTE I - SUMMARY OF SIGNIFICANT ACCOTINTING 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 of the statement of net assets and the statement of activities. 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: (l) fines, fees, and charges, (2) operating grants and contributions, and (3) capital grants
and conhibutions. 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 of government 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 aggegate 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 fimd - 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 of major 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 pres.entation - 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.
25
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCI,AL STATEMENTS
SEPTEMBER 30. 2OI I
NOTE I - SUMMARY OF SIGNIFICANT ACCOLJNTING 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 recogtrized 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 eouivalents - Cash and cash equivalents are considered to be cash on hand, demand
deposits, and short-term investments with original maturities of three months or less from the date of
acquisition.
Properly 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 I through
December 3l of the following year. Property taxes that have not been paid by January I are
considered delinquent. Tax collections received by the County Tax Collector are remitted to the City
on a monthly basis.
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" (i.e., the
current portion of inter-fund loans) or 'oadvances tolfrom other funds" (i.e., the non-current portion of
inter-fund loans). All other outstanding balances between funds are reported as "due to/from other
funds."
26
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 2OI I
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
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 finanoial statements.
Inveqtory Governmental fund inventories are reported
than capitalized as an asset. The City has no significant
therefore none are reported on the statement of net assets.
ASSET CLASS
as an expenditure when purchased rather
inventories as of September 30, 20ll and
Restricted assets - Resources from federal and state gtants are 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
of donation.
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:
ESTIMATED
USEFUL LTVES
CAPITALVATION
THRESHOLD
Buildings and building improvements
Land improvements
Vehicles
Office, non-office, and computer equipment
Infrastructure
40 years
20 years
5 - 15 years
3 - 20 years
50 years
25,000
25,000
5,000
5,000
50,000
27
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCI.AL STATEMENTS
SEPTEMBER 30.2O1I
NOTE I - SUMMARY OF SIGNIFICANT ACCOLINTING 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
Land improvements
Building and improvements
Furniture and equipment
Runways
ASSET CLASS
Machinery and equipment
Land improvements
Buildings
ESTIMATED
USEFUL LTVES
CAPITALTZATION
THRESHOLD
5,000
5,000
5,000
5,000
CAPITALIZATION
THRESHOLD
5,000
25,000
25,000
20 years
3 - 25 years
5 - 7 years
8 - 25 years
Capital assets of the Historic Prattville Redevelopment Authority, a component unit, are depreciated
using the straight-line method of depreciation over the following estimated useful lives:
ESTIMATED
USEFUL LTVES
l0 years
20 years
40 years
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 of employment, an employee receives
payment of accumulated vacation hours up to a maximum of 360 hours at current wage rates. Upon
retirement, an employee can receive payment of 50% 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 if they have matured, for example,
as a result of employee 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 of the applicable bond premium or discount, Bond issuance
costs are reported as deferred charges and amortized over the term ofthe related debt.
28
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 2OI I
NOTE I - SUMMARY OF SIGNIFICANT ACCOTINTING POLICIES: (continued)
In the fund financial statements, governmental fund fypes recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt 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 of those funds and statements.
Fund balance - In accordance with Governmental Accounting Standards Board Statement 54, Fund
Balance Reporting and Governmental Fund Type Definitions, the City classifies government fund
balance as follows:
Nonspendable - includes fund balance amounts that cannot be spent either because it is
not in spendable form, or for legal or contractual requirements. This would include
inventories, deposits, and prepaid items.
Restricted - includes fund balance amounts that are constrained for specific purposes
which are externally imposed by providers, such as creditors or amounts constrained
due to constitutional provisions or enabling legislation.
Committed - includes fund balance amounts that can be used only for the specific
purposes that are internally imposed by formal action of the government's highest level
of decision making authority. Commitments may be charged by the government taking
the same action that imposed the constraint initially. Contractual obligations are
included to the extent that existing resources in the fund have been specifically
committed for use in satisffing those contractual obligations. Fund balance is
committed by the City Council by ordinance.
Assigned - includes spendable fund balance amounts that are intended to be used for
specific purposes that are neither considered restricted or committed. This indicates
that resources in these funds are, at a minimum, intended to be used for the purpose of
that fund. Fund balance may be assigned by the City Council or the Mayor.
Unassigned - includes residual positive fund balance within the general fund which has
not been classified within the other above mentioned categories. Unassigned fund
balance may also include negative balances for any governmental fund if expenditures
exceeds amounts restricted, committed, or assigned for those specific purposes.
29
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 2OI I
The City considers restricted amounts to have been spent when an expenditure is incurred for
purposes for which both restricted and unrestricted fund balance is available. The City considers
committed, then assigned amounts to have been spent when an expenditure is incurred for purposes
for which amounts of unrestricted fund balance is available.
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 ACCOI"INTABILITY:
Budgets and budgetary accounting - The budget is adopted annually at the beginning ofeach 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 are noted below.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orderso
contracts) outstanding at year-end are reported as restricted or assigned fund balance and do not
constitute expenditures or liabilities of the fund. The only exoeption to this rule is the Statement of
Revenues, Expenditures, and Changes in Fund Balance - Budget to Actual - General Fund. Actual
expenditures in this statement include outstanding encumbrances at September 30, 201I of $55,667.
Encumbrances are included in the actual expenditure figures on this statement so that a meaningful
comparison can be made with the adopted budget.
30
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2OII
A reconciliation of the two statements is as follows:
Excess of revenues and other financing sources over expenditures and
other uses (GAAP basis)
Encumbrances at beginning of the year
Encumbrances at end of the year
Excess of revenues and other financing sources over
expenditures and other uses - actual (non-GAAP budgetary basis)
GENERAL
FUND
$ 2,559,815
t46,782
(55 ,667)
2,650,930
As of September 30, 2011, the City included the encumbrances as part of the major governmental
funds.
Excess of expenditures over appropriations - The City exceeded budgeted appropriations by
$5,338,166 primarily due to the repayment of two short-term loans which were executed and repaid
during the fiscal year. These transactions were not included in the budget. The repayment of these
loans resulted in excess debt service expenditures in the amount of $5,675,506 as compared to
budget. The proceeds of the short-term loans are included in the City's other financing sources which
also exceeded budgeted amounts by $5,637,303.
NOTE 3 - CASH, CASH EQUIVALENTS, AND INVESTMENTS:
Deposits - Custodial credit risf - 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 of Alabama 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 atnetrealizable value.
31
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 2OI I
NOTE5.CAPITALASSETS:
Capital asset activity for the year ended September 30,2011 was as follows:
BEGINNING ENDING
BALANCE INCREASE DECREASE BALANCE
Governmental activities :
Capital assets, not being
depreciated:
Construction in progress $ 547,182 $ 249,360 $ 349,470 I 447,072
Land 2,661,060
Total capital assets, not
-
2,661 ,060
--
being depreciated 3.208,242 249,360 349,470 3,108,132
Capital assets, being depreciated:
Buildings and building
lmprovements
Land improvements
Vehicles
Office, non-office, and
lmprovements
Land improvements
Vehicles
Office, non-office, and
computer equipment
Infrastructure
Total accumulated
2,906,007 27 5,0934,609,544 477,706
10,713,673
9,134,531
10,713,673
9,134,531
3,1 8 1,100
5,087,25 0
7,484,599 32,218 1,543,807 5,973,010
computer equipment 6,210,484 161,899 674,783 5,697,600
Infrastructure
Total capital assets,
32,636,731 5f,9351!_ 38,345,401
being depreciated 66,180,018 5.902,787 2,218,590 69,864,215
Less accumulated depreciation for:
Buildings and building
5,544,301 446,081 1,506,045 4,484,337
3,808,042 497 ,419 67 4,783 3,63A,678
4,727,007 65ff!l_ 5,383,888
depreciation 21,594,901 2.353,180 2,180,828 21.767.253
Total capital asset,
being depreciated, net 44,585,117 3,549,607 37.762 48,096,962
Governmental activity
capitalassets, net $ 47,793,359 S 3,798,967 $ 3Y,232 _$-51,201921-
32
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2OI I
NOTE 5 - CAPITAL ASSETS: (continued)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government
Public works
Public safety
Cultural and recreational
$ 721 ,667
681 ,841
618,384
33 1,288
Total depreciation expense - governmental activities _[_2,353,]!9_
Component units - Capital asset activity for the Autauga-Prattville Public Library for the fiscal year
ended September 30, 2011 is as follows:
BEGINNING ENDING
BALANCE TNCREASE DECREASE BALANCE
Capital assets, being depreciated:
Equipment
Total capital assets,
being depreciated
Less: Accumulated depreciation
s 206,986 s 16,484 $ 223,470
2A6,986 16,484 223,470
60,038 29,951 89,989
Total capital assets,
being depreciated, net -$_Jqel!- _q_(13,46i) _q -_
-q_133,191_
33
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCI.AL STATEMENTS
SEPTEMBER 30.2OI I
NOTE 5 - CAPITAL ASSETS: (continued)
Capital asset activity for the Prattville Airport Authority for the fiscal year ended September 30,2011
is as follows:
BEGINNING
BALANCE INCREASE
ENDING
DECREASE BALANCE
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Land improvements
Runways
Building improvements
Furniture and equipment
Total capital assets,
being depreciated
Less : Accumulated depreciation
Land improvements
Runways
Building improvements
Furniture and equipment
Total accumulated depreciation
Total capital assets,
being depreciated, net
Net total capital assets
2,593,729 32,783
s 2,593,729
32,783
$ 2,593,729
32,783
2,626,512
$ 51,508
8,91 8,371 543,860 51,508
1,442,418
5,933,707
1,415,67 6
126,570
528,447
15,413
1,442,418
6,462,154
| ,415,67 6
90,47 5
9,110,723
414,152
2,129,132
386,669
44,467 .
2,97 4,420
342,031
l,9l 7 ,372
355,246
80,223
72,121
211,7 60
31,423
7,848 43,604
2,694,872 323,152 43,604
6,223,499 220,708 7,904 6,436,303
$ 8,817 ,228 s 253,491
--
s 9,062,815
--
7,904
34
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCTAL STATEMENTS
SEPTEMBER 30, 2OII
Capital asset activity for the Historic
September 30, 201I is as follows:
Capital assetso not being depreciated:
Land
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Land improvements
Building improvements
Machinery and equipment
Total capital assets,
being depreciated
Less: Accumulated depreciation
Total capital assets,
being depreciated, net
Total capital assets, net
Prattville Redevelopment Authority for the fiscal year ended
BEGINNING
BALANCE INCREASE
ENDING
DECREASE BALANCE
183,500 $ l83,5po
183,500183,500
12,000
285,000
23,000
12,000
285,000
21,000
320,000320,000
60,208 $ 8,825 69,033
259,792 (8,[2s)250,967
$ 443,292
--
(8,825)$ $ 434,467::
NOTE 6 - INTERFUND BALANCBS:
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, 201L
Transfers were made primarily from the general fund and nonmajor funds to major governmental
funds for capital improvements, debt service payments, and to pay salaries for those employees who
maintain the City's streets.
35
Interfund transfers:
TRANSFER OUT
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2OII
TRANSFER IN
GENERAL
FUND
CAPITAL
PROJECTS
FLTND
DEBT
SERVICE
FLIND TOTAL
General fund
Other governmental funds
Totals
136,457 $ 4,686,412
153 ,239
$ 4,822,869
703,1 0 1549,862
$ 549,862 $ 136,457 $ 4,839,651 $5,525,970
------
NOTET-LONG-TERMDEBT:
State statute limits the amount of long-term debt the City can incur. The amount of debt applicable
to this limit during ayear can be no greater than20Yo of the assessed value of taxable property as of
the beginning of the fiscal year. As of September 30, 2011, the amount of outstanding debt
applicable to this limit was equal to 4.57% of property assessments as of October l, 2010.
Long-term debt activity for the year ended September 30,2011, was as follows:
DUE
WITHIN
BEGINNING ENDTNG ONE
BALANCE ADDITIONS REDUCTIONS BALANCE YEAR
Governmental activities :
Warrant and other notes payable
Limited obligation warrant
Add defened amounts:
Debt issuance premiums
Total warrants and
other notes payable
Capital leases
Compensated absences
Post-employment benefits other
than pensions
Total long-term debt
Compensated absences, benefits,
liquidated by the general fund.
s 58,068,424
1,594,489
63 3,505
, 1,081,342 271,840
$ 2,944,390 $55,124,034 $3,033,135
1,594,489
434,597 47,7]9 386,858
60,a97 ,510
1,239,844
1,289,306 $
2,992,129 57,105,381 3,033,135
491,497
651,402
7 48,347 421,999
1,271,409 779,233
I ,3 53,, I 82, _ 7 1,,630
$63,708,002 $ 905,345 _$ 4,135,02fi_ q60,+?8,319 $4,305,99?
and other governmental activity obligations are generally been
36
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCTAL STATEMENTS
SEPTEMBER 30, 2OII
NOTE 7 -LONG-TERM DEBT:
Long-term debt at September 30
(continued)
20ll consists of the following:
General Obligation Sewer Warrant, Series 1996; principal
amount $3,025,000; graduated principal payments are due
annually on August 15 and semiannual interest payments due
each February 15 and August 15; interest rate of 3.18o/o; final
maturity date is August 15, 2017 . Proceeds used for sludge
digesters and wastewater treatment plant upgrade.
General Obligation Sewer Warrant, Series 2004; principal
amount $2,085,000; graduated principal payments are due
annually on February 15 and semiannual interest payments due
each February 15 and August 15; interest rate of 3.05Yo; final
maturity date is February 18,2025. Proceeds used to pay costs
of constructing wastewater treatment and related facilities in
connection with the sanitary sewer system.
General Obligation Warrants, Series 2006; principal amount
$ 1,595,000; graduated principal payments are due annually
beginning November 1, 2009 and semiannual interest payments
due each November I and May l; interest at 3.6250/o to 3.70Yo;
curent rate on bonds 3 .7oA; final maturity date is November 1,
2011. Proceeds used for capital improvements.
General Obligation Economic Development Improvement
Warrants, Series 20064; principal amount $ 19,875,000;
graduated principal payments are due annually beginning
November l, 2010 and semiannual interest payments due each
November I and May I ; interest at 3 .65oh to 5.00%; current
rate on bonds 5%; final maturity date is November I , 2026.
Proceeds used for economic development.
TOTAL
$ 1,165,000
1,590,000
760,000
19,7 65,000
37
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCTAL STATEMENTS
SEPTEMBER 30, 2OII
NOTE 7 -LONG-TERM DEBT: (continued)
General Obligation Economic Development
Improvement Warrants, Series 20068; principal amount
$9,000,000; graduated principal payments due annually
beginning November l, 2009 and semiannual interest
payments due each November I and May l; interest at
3 .50o to 5 ,00oA; rate on current bonds 4.5o/o; final
maturity date is November l, 2025, Proceeds used for
economic development.
General Obligation Economic Development
Improvement Warrant, Series 2007; principal amount
$14,920,000; graduated principal payments due annually
beginning November l, 2010 and semiannual interest
payments due each November I and May l; interest at
3 .50o to 4.37 5o/o; rate on current bonds 4%; final
maturity date is November l, 2025, Proceeds used for
economic development.
General Obligation Warrant, Series 2008; principal
amount $3 80,000; 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. Proceeds
used to purchase a fire truck.
General Obligation Revenue Warrant, Series 2008,
principal amount $486,926 due in semiannual
installments of principal and interest on May I and
November I of each year, beginning May l, 2008;
interest at 3.44Yo 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. Proceeds used for
a new roof at City Hall.
TOTAL
$ 8,240,000
14,235,000
27 6,667
38
415,841
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCTAL STATEMENTS
SEPTEMBER 30. 20 I I
NOTE 7 -LONG-TERM DEBT: (continued)
General Obligation Warrant, Series 2009; principal
amount $ l,134,447; scheduled monthly payments of
principal and interest; interest rate 3.690 ; unsecured;
final payment on February l, 2014, Proceeds used to
pay the amount due to Elmore County for overpayment
of taxes.
Whitney Series 2009A; principal amount $400,000 due
in monthly principal and interest payments of $2,3 87 ,
beginning December 15, 2009; interest rate is 3.825%;
final balloon payment due on November 15, 2014.
Proceeds used to build a fire training tower.
2009 General Obligation Refunding Warrants; principal
amount $6,3 15,000; graduated principal payments are
due annually on September l, 2010 and semiannual
interest payments due each March I and September l,
beginning March l, 2010; interest rate ranges from 2%
to 4%; rate on current bonds 3%; final payment is due
September I , 2022. Proceeds used to refund the 2001
and 2002 Warrants.
Whitney Series 20098; principal amount $450,000; due
in monthly principal and interest payments of $4,5 l9 ,
beginning December 15, 2009; interest rate is 3.825%;
final balloon payment due November 15, 2014.
Proceeds used to purchase a fire truck.
General Obligation Chevron Warrants Series 2009A;
principal amount $ 1,820,000; graduated principal
payments are due annually on December l, 2010 and
semiannual interest payments due each June I and
December l, beginning June 1,201 0; interest rate ranges
from 2.2o to 4.5o ; rate on current bonds 2,2yo; final
payment is due December l, 2029. Proceeds used for
the acquisition, construction, installation, and equipping
of certain energy efficient improvements.
Total
TOTAL
555,817
380,362
5,5 70,000
37 5,347
1,795,000
$ 55,1 24,034
--
39
CITY OF PRATTVILLE. ALABAMA
NOTES TO FTNANCTAL STATEMENTS
SEPTEMBER 30.2OI I
NOTE 7 - LONG-TERM DEBT: (continued)
Limited Obligation Wanant - The City issued Limited Obligation Warrant, Series 20068 in the
amount of $1,594,489 for the construction of infrastructure. The warrant bears a -0-0lo interest rate
and matures on August 1,2036. The warrant was issued pursuant to an agreement with a private
entity for the construction of infrastructure. Repayment of the warrant is secured by a pledge of 75%
of the sales tax revenue remitted by retail establishments located on the specified property. As of
September 30,2011, the collection of sales tax revenue was pending and the City had not redeemed
any portion of the outstanding warrants.
The Limited Obligation Warrant does not constitute a direct obligation and pledge of the full faith
and credit of the City.
Debt service requirements on long-term debt at September 30,201I are as follows:
GOVERNMENTAL AC TTVITIE S
PRINCIPAL TNTEREST TOTAL
YEAR ENDTNG SEPTEMBER 30:
20t2
20t3
20t4
20ts
20r6
2017 - 2021
2022 - 2026
2027 - 203r
Totals
3,033, 1 3 5
3,192,47 |
3, I 83 ,430
3,7 11,741
3,296,989
17,622,634
I 8,613,634
2,470,000
$ 2,286,3 75
2,166,3 3 0
2,030,490
1,879,328
1,7 4l ,805
6,612,7 13
2,694,455
102,822
$ 5,3 19,5 l0
5,3 5 8,801
5,213,920
5,591,069
5,03 8,794
24,235,347
21,308,089
2,572,822
55,124,034 $ 19,5 14,3 I 8
--
s7 4,638,352
40
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 2O1I
NOTE 7 - LONG-TERM DEBT: (continued)
Component units - The Prattville Airport Authority's capital debt at September 30,2011 is as
follows:
Revenue and Grant Anticipation Bond Series 2008
BankTrust; $ 1,000,000; amount drawn to date $677 ,l 50;
interest rate of 3.58o until July 1,2013, variable rate equal to
65% of BankTrust base rate thereafter; interest due quarterly
beginning October 1, 2008; principal payments due quarterly
beginning October I , 201 1; remaining balance due on July l,
2016; secured by pledge of all revenues, rents, receipts,
income, and funds derived by the Airport Authority.
Proceeds used for capital improvements.$ 627,889
Total long-terrn capital debt
Maturities on capital debt are as follows:
YEAR ENDING SEPTEMBER 30:
2012
2013
20t4
2015
20r6
PRINCIPAL INTEREST TOTAL
24,491
33,7 46
55,129
57,129
457,394
16,681
20,854
19,169
17,l5l
11,546
$ 627,889
--
$ 41,172
54,600
7 4,298
7 4,280
468,940
Totals
Total interest cost on capital debt in 201I was $29,219.
Capital debt activity for the year ended September 30,2011 was as follows:
627,889 $ 85,401 $ 713,290
--
ENDING DUE WITHIN
REDUCTIONS BALANCE ONE YEAR
BEGINNING
BALANCE ADDITIONS
Revenue and grant anticipation
Bond-BankTrust $ 661,864
$ 661,864 $
---
$ 33,97 5 $ 622,88j)$ 24,491
$ 24,491
-
Totals
4l
$ 33,97 5 $ 627 ,889
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 2OI I
NOTE 7 - LONG-TERM DEBT: (continued)
The Historic Prattville Redevelopment Authority's notes payable at September 30, 201I are as
follows:
BankTrust secured by real estate; monthly principal and
interest payments of $2,67 5 due on the l5th of every
month; interest rate of 5.85o/o; final maturity date is
May 15,2013. Proceeds used to purchase real estate.
BankTrust secured by real estate; monthly principal and
interest payments of $1,972 due on the 5th of every
month; interest rate of 6.1506; final maturity date is
July 5,2014. Proceeds used to purchase real estate.
BankTrust unsecured; monthly principal and interest
payments of $3 93.02 due on the l5th of every month;
interest rate of 6 .l5o/o; maturity date of September 15,
2014. Proceeds used to pay unsecured loan.
47,463
172,247
26,917
Total
Notes payable maturities at September 30, 20ll are as follows:
$ 246,627
-
HISTORIC PRATTVILLE
REDEVELOPMENT A UTHORITY
PRINCIPAL INTEREST TOTAL
YEAR ENDING SEPTEMBER 30:
20t2
2013
2014
Totals
45,850
34,557
166,220
14,634
11,872
8,896
60,484
46,429
175,1 l6
$ 246,627 $ 35,402 $ 282,029
---
€--
42
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 2OI I
Long-term debt activity for the Historic Prattville Redevelopment Authority for the year ended
September 30, 201l, was as follows:
BEGINNING ENDING DUE WITHIN
BALANCE ADDITIONS REDUCTIONS BALANCE ONE YEAR
45,850$ 60,142 $ I 10,601 $246,627Notes payable to bank
Totals
$ 297,086
45,850
NOTE8-NOTESPAYABLE:
The City issued General Obligation Note, Series 2011 dated October 29,2010 in the amount of
$3,100,000. The proceeds of the note were used to pay the principal and interest payments on certain
General Obligation Warrant payments due November l, 2010. The interest rate on the loan was
1.23%. As of September 30, 201l, the balance of the loan had been paid in full.
The City issued General Obligation Note, Series 20ll dated April 29,2011 in the amount of
$1,000,000. The proceeds of the note were used to pay the principal and interest payments on certain
General Obligation Warrant payments due May l,20ll. The interest rate on the loan was 2.9%. As
of September 30,2011, the balance of the loan had been paid in full.
The City issued General Obligation Note, Series 20llA dated May l,20ll 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, 2011, the outstanding balance
totaled $1,000,000 with a maturity date of November 30, 201L
Short-term debt activity for the year ended September 30,2011, was as follows:
$ 297 ,086 $ 60,142 $ 1 10,601 $ 246,627
---+---
BEGINNING
BALANCE ADDITION REDUCTION
ENDING
BALANCE
Notes payable to bank
Totals
1,000,000 5,637 303 5,637 ,303 $ 1,000,000
1,000,000 5,637 ,303 5,637 ,303
NOTE 9. CAPITAL LEASES:
The City has entered into lease agreements as lessee for financing the acquisition of property and
equipment. These lease agreements qualifr as capital leases for accounting purposes and, therefore,
have been recorded at the present value of their future minimum lease payments as of the inception
date.
$ 1,000,000
43
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2OII
The assets acquired through capital leases are as follows:
ASSET
Machinery and equipment
Vehicles
Less: Accumulated depreciation
Total
20t2
20t3
20t4
Total minimum lease payments
Less: Deferred interest
Present value of minimum lease payments
2,810,7 19
(l ,7 59,256)
$ 1,05 1,463
442,1 06
230,543
105,513
778,162
29,8 l5
GOVERNMENTAL
ACTTVITIES
$ 83 5 ,298
1,97 5,421
The future minimum lease obligations and the net present value of these minimum lease payments as
of September 30, 201 ln were as follows:
YEAR ENDING SEPTEMBER 30: AMOTINT
7 48,347
NOTE IO - 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 of the 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.
44
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2OI1
NOTE l0 - PENSION COSTS: (continued)
Fundin&policy - Plan members are required by statute to contribute 5% of their annual salary, except
for full-time, certified firefighters and law enforcement officers, who contribute 6Yo 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, 2008. 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.
Annual pensiolr_ cost For the year ended
$1,193,485 was equal to the City's required
Trend information for the City of Prattville,
September 30, 2011, the City's annual pension cost of
and actual contributions.
Alabama is as follows:
PERCENTAGE OF APC NET PENSION
CONTRIBUTED OBLIGATION
FISCAL YEAR
ENDED
ANNUAL PENSION
cosr (APC)
September 30, 2009 $
September 30, 2010
September 30, 20ll
1,160,890
1,234,847
1,193,485
r00%
r00%
t00%
-0-
-0-
-0-
The required conhibution was determined as part of the September 30, 2008 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 7.75% per year,
including inflation of 4.50%. The actuarial value of assets was determined using techniques that
smooth the effects of short-term volatility in the market value of investments 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, 2008 was 20 years.
Funding status and proeress - As of September 30, 2010, the most recent actuarial valuation date, the
plan was 67.8% funded. The actuarial accrued liability for benefits was $43,165,309, and the
actuarial value of assets was $29,286,356 resulting in funding deficit of $13,878,953. The covered
payroll (annual payroll of active employees covered by the plan) was 514,949,370, and the ratio of
the funding deficit to the covered payroll was92.8%u
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 liabilitv for benefits.
45
CITY OF PRATryILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 20I I
NOTE I I - POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS:
The City of Prattville administers a single-employer defined benefit (OPEB) plan for the employees
of the City. From an accrual accounting perspective, the cost of post-employment 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. The City recognizes the cost of post-
employment 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. The recognition of the liability accumulated from prior years will be phased
in over 30 years, commencing with the 2009 liability.
Plan description - The City of Prattville, Alabama's medical benefits are provided through a
comprehensive medical plan and are made available to employees upon actual retirement.
The employees are covered by the Retirement System of Alabama and must meet the eligibility
provisions adopted by resolution to receive retiree medical benefits. Those eligibilify provisions are
as follows: l0 years of consecutive service and attainment of age 60; or,25 years of service atany
age. Complete plan provisions are included in the official plan documents,
Glntribution rates - Employees do not contribute to
become retirees and begin receiving those benefits.
contained in the official plan documents.
their post employment benefits costs until they
The plan provisions and contribution rates are
The number of participants as of September 30, 2010, the effective date of the biannual actuarial
valuation, are as follows:
NUMBEROF
ENROLLEES
Active employees
Retired employees
Total
293
2l
3t4
Funding policy - Until fiscal year ending September 30, 2008, the City of Prattville, Alabama
recognized the cost of providing post-employment medical benefits (the City of Pratfville's portion
of the retiree medical benefit premiums) as an expense when the benefit premiums were due and thus
financed the cost of the post-employment benefits on a pay-as-you-go basis, The City's funding
policy is not to fund the Annual Required Contribution (ARC) of the employer except to the extent
ofthe current year's retiree funding costs.
In fiscal year ending September 30,2011, the City of Prattville, Alabama's portion of health care
funding cost for retired employees totaled $56,420. These amounts were applied toward the net
OPEB obligation as shown in the table on the following page.
46
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.20I I
NOTE I I - POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS: (continued)
Annual required contribution - The City of Prattville's Annual Required Contribution (ARC) is an
amount actuarially determined. The Annual Required Contribution (ARC) is the sum of the Normal
Cost plus the contribution to amortize the Actuarial Accrued Liability (AAL). A level dollar, open
amortization period of 30 years, (the maximum amortization period allowed by GASB 43145) has
been used for the post-employment benefits. The total ARC for the fiscal year beginning October l,
2010 is $347,541, as set forth below:
MEDICAL
347,541
Net post-employment benefit obligation (asset) - The following table shows the components of the
annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City's
net OPEB obligation:
MEDICAL
Normal cost
30 year unfunded AAL amortization amount
Annual required contribution (ARC)
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost
Contributions made
Current year retiree premium
Increase in net OPEB obligation
Net OPEB obligation - beginning of year
Net OPEB obligation - end of year
The City's annual OPEB cost, percentage
fiscal year 20ll and the previous two years
POST-
EMPLOYMENT FISCAL YEAR
BENEFIT ENDED
182,445
165 ,096
$ 347,541
43,253
- , . (62,534)
328,260
-0-
, ,, , ,_ (5,61424,)
27 1,840
1,081,342
I ,3 5 3,182
of the cost contributed, and the net OPEB obligation for
is as follows:
PERCENTAGE
OF ANNTJAL
ANNUAL COST NET OPEB
OPEB COST CONTRIBUTED OBLIGATION
Medical
Medical
Medical
September 30, 2009
September 3 0, 20 1 0
September 3 0, 201l
644,913
661 ,215
328.260
17 ,4304
17 ,000
17.19%
532,520
1,08 1,342
I ,3 5 3,182
47
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 2OI I
NOTE I I - POST.EMPLOYMENT BENEFITS OTHER THAN PENSIONS: (continued)
Funded status and funding progress - As of September 20,201l, the actuarial accrued liability for
benefits was $2,854,883 all of which was unfunded. The covered payroll (annual payroll of active
employees covered by the plan) was $14,207,131, and the ratio of the unfunded actuarial liability to
the covered payroll was20Yo as presented in the following table:
MEDICAL
Actuarial accrued liability (AAL)
Actuarial value of plan assets
Unfunded actuarial accrued liability (UAAL)
Funded ratio (Actuarial value assets/AAl)
Covered payroll (active plan members)
UAAL as a percentage of covered payroll
2,854,883
-0-
2,854,883
-0-%
14,207, l3 I
20%
Actuarial methods and assumptions - Actuarial valuations involve estimates of the value of reported
amounts and assumptions about the probability of events far into the future. The actuarial valuation
for post-employment benefits includes estimates and assumptions regarding (l) turnover nte; (2)
retirement rate; (3) health care cost trend rate; (4) mortality rate; (5) discount rate (investment return
assumption); and (6) the period to which the costs apply (past, current, or future years of service by
employees). Actuarially determined amounts are subject to continual revision as actual results are
compared to past expectations and new estimates are made about the future.
The actuarial calculations are based on the types of benefits provided under the terms of the
substantive plan (the plan as understood by the City and its employee plan members) at the time of
the valuation and on the pattern of sharing costs between the City of Prattville, Alabama and its plan
members to that point. The projection of benefits for financial reporting purposes does not explicitly
incorporate the potential effects of legal or contractual funding limitations on the pattern of cost
sharing between the City and plan members in the future. Consistent with the long-term perspective
of actuarial calculations, the actuarial methods and assumptions used include techniques that are
designed to reduce short-term volatility in actuarial liabilities and the actuarial value of assets.
The following significant assumptions were made:
Actuarial cost _method - The ARC is determined using the projected unit credit actuarial cost
method. The employer portion of the cost for retiree medical care in each future year is determined
by projecting the current cost levels using the healthcare cost trend rate and discounting this
projected amount to the valuation date using the other described pertinent actuarial assumptions,
including the investment return assumption (discount rate), mortality, and turnover.
48
CITY OF PRATTVILLE" ALABAMA
NOTES TO FTNANCIAL STATEMENTS
SEPTEMBER 30, 2OII
Actuarial value of plan assets - Since the OPEB obligation has not as yet been funded, there are not
anY assets.
Turnover rate - An age-related turnover scale based on actual experience as described by
administrative staff has been used. The rates, when applied to the active employee census, produce
an annual turnover of approximately 9o/o. It has further been assumed that l0o/o of retirees decline
coverage because ofthe substantial retiree contribution required.
Post employment benefit plan eligibility requirements - Based on past experience, it has been
assumed that entitlement to benefits will commence immediately upon retiree coverage eligibility.
Medicalbenefits are provided to employees upon actual retirement as previously described.
Investment return assumption (discount rate) - Since the ARC is not currently being funded and is
not expected to be funded in the near future, the valuation includes a 4%o annual investment return
assumption.
Health care cost trend rate - 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 as
published in National Health Care Expenditures Projections: 2003 to 2013, Table 3: National Health
Expenditures, Aggregate and per Capita Amounts, Percent Distribution and Average Annual Percent
Change by Source of Funds: Selected Calendar Years 1990 -2013, released in January,2004 by the
Health Care Financing Administration (www.cms.hhs.gov). "State and Local" rates for 2008 through
2013 from this report were used, with rates beyond 2013 graduated down to an ultimate annual rate
of 5.0% for 2016 and later. The trend rate includes an inflation factor of 2.50% annually.
Mortali8 rate - Life expectancies were based on the 1994 Group Annuity Reserving (94GAR)
sex-distinct table.
Method of determining value of benefits. 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 retiree
pays for 100% of the cost of the medical insurance forthe retiree and dependents, but it is based on
the active/retiree blended rate. There is an implicit employer subsidy since a portion of the
active/retired blended rate is attributable to the retiree coverage. Since use of unblended rates is
required by GASB 45 for valuation purposes, we have estimated the unblended retiree total rate
before age 65 to be 130% of the blended rate. The employer cost is then the difference between this
total unblended rate and the portion paid by the retiree, ifany. Retiree coverage ceases at age 65.
NOTE 12 - CONTINGENT LI.ABILITIES:
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 of expenditures pursuant to the terms of the grant. It is the opinion
of the City that such disallowances, if any, would not be material.
49
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2OI1
The City is a defendant in various lawsuits. Although the outcome of these 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 of the Citv.
NOTE 13 . RISK MANAGEMENT:
The City is exposed to various risks of losses related to tort; theft of, damage to, and destruction of
assets; erors 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 and has effectively managed risk through various employee education and prevention
programs. All risk management activities are accounted for in the general fund.
The City has estimated that the amount of actual or potential claims against the City as of
September 30, 2011, will not materially affect the financial condition of the City. Settlement
amounts have not exceeded insurance coverage for the current year or the three previous years.
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 of the loss can be reasonably estimated. Liabilities
include an amount for claims that have been incurred but not reported (IBNRs). The result of the
process to estimate the claims liability is not an exact amount, as it depends on many complex
factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are
reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including
frequency and amount of payouts), 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 of the 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 of claims liabilities during the year are as follows:
EMPLOYEES' MEDICAL INSURANCE
FUND
Unpaid claims, beginning of fiscal year
Incurred claims (including IBNRs)
Claim payments
Unpaid claims, end of fiscal year
20lr
17 6,300
2,682,997
$ 173,600
--
(2,685,697)
2010
$ 208,300
3,3 5 5,r82
(3,3 87 ,l 82)
17 6,300
NOTE 14 - RELATED PARTY TRANSACTIONS:
The City chose the Water Works Board of the 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, 201 I was $498,636.
50
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2OI I
The City imposes a 3% license fee on gross water receipts. The 3% 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 L The receivable from the Water Works Board of the
City of Prattville for license fees at September 30,2011 was $124,928.
On May 1,2006, the City of Prattville, Alabama entered into a lease agreementwiththe Historic
Prattville Redevelopment Authority to lease a building on West 4* Street. The term of the lease is
five years with quarterly rent payments of $8,183. The City of Prattville, Alabama paid $24,549 in
rent payments to Historic Prattville Redevelopment Authority during fiscal year ended September 30,
201 l.
NOTE 15 - FUNDING AGREEMENT:
On September l, 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 Dishict's issuance of Limited Obligation Taxable Economic Development Bonds (Bass Pro
Project), Series 2006 which were used to finance the acquisitiono 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 of the 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 of the City of Prattville, Alabama.
ln December 2008, the City of Prattville, Alabama entered into a funding agreement with The
Exchange Cooperative Dishict (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%o of the City's actual receipts from the businesses
located within the Project to fund the indebtedness of The 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, othenwise, all payments shall be made to the District or to the Dishict Director. The
maximum amount shall be the aggregate amount necessary to amortize $9,000,000 over thirly (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 of the
indebtedness of the 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.
5l
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCI.AL STATEMENTS
SEPTEMBER 30. 2OI I
NOTE 16 - COMMITMENTS:
The City has a contractual commitment with the Autauga County Commission for the funding of the
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, 201I was $172,248.
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 at80%o up to $520,000, and the remainder is to be paid from the City's funds.
As of September 30,
Commitments
Spent-to-date
2011o commitments to contractors on capital projects are as follows:
852,869
447,073)
Remaining commitments $ 405 ,796
-
NOTE 17 . PRIOR PERIOD ADJUSTMENT:
A prior period adjustment has been made to include Limited Obligation Warrant, Series 20068,
dated October 3,2006, pursuant to an infrastructure agreement with a real estate developer to provide
for the construction and installation of infrastructure, that had previously been omitted from the
City's financial statements. The adjustment resulted in an increase of $1,594,489 in capital assets
and an increase of $1,594,489 in long-term liabilities, resulting in no change in total net assets on the
Statement of Net Assets.
NOTE 18 - EFFECT OF NEW PRONOUNCEMENTS:
In 201I, the City implemented the following statement:
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type
Definitions, This statement establishes fund balance classifications that comprise a
hierarchy based primarily on the extent to which a government is bound to observe
constraints imposed upon the use of the resources reported in governmental funds. This
statement also redefines the definitions of governmental funds.
52
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2OI I
Management has not currently determined what, if any, impact implementation of the following
statements may have on the financial statements of the City.
GASB Statement No. 57, OPEB Measurement by Agent Employers and Agent Multi-
Employer Plans. This statement is intended to improve consistency in the measurement and
financial reporting of other post-employment benefits (OPEB) such as retiree health
insurance. The requirements of this statement are effective for financial statements for
periods beginning after June I 5, 201 I .
NOTE 19 - SUBSEQUENT EVENTS:
On November l, 2011, the City issued General Obligation Note, Series 2012 in the amount of
S2,000,000 to refund that portion of principal and interest on a series of General Obligation Warrants
which were due and payable on Novemb er | , 201L The General Obligation note bears interest at a
rate of 1.68% with a maturity date of March l, 2012. This obligation was paid in full prior to
maturity.
53
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF PRATTVILLE. ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS OF THE CITY'S DEFINED BENEFIT
PENSION PLAN
LAST THREE FISCAL YEARS
ACTUARIAL
ACCRUED
ACTUARIAL LIABILITY UNFLINDED
UAET.
ASA
PERCENTAGE
OF
ACTUARIAL VALUEOF (AAL) AAL FLINDED COVERED COVERED
VALUATION ASSETS ENTRYAGE (UAAL) RATIO PAYROLL PAYROLL
DATE (a) (b) (b-a) (a/b) (c) (b-a)/c)
September 30,2008 $ 27,900,405 $ 36,003,149 $ 8,102,744 77.5o/o $13,452,621 60.2%
September 30, 2009 28,514,588 39,315,613 10,801,025 72.5o/o 14,254,467 75.8o/o
September 30, 2010 29,286,356 43,165,309 13,878,953 67.8% 14,949,370 92.8o/o
54
CITY OF PRATTVILLE, ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS OF THE CITY'S
POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS
LAST THREE FISCAL YEARS
ACTUARIAL
ACCRUED
ACTUARIAL LIABILITY UNFUNDED
UA\AL
ASA
PERCENTAGE
OFACTUARIAL VALI.JE OF (AAL) AAL FUNDED COVERED COVEREDVALUATION ASSETS ENTRYAGE (UAAL) RATIO PAYROLL PAYROLL
September30,2008 $ -0- $ 5,106,471 $(5,106,471) 0.0% $ 15,252,823 33o/o
September 30,2009 -0- 5,310,730 (5,310,730) 0.0% 14,483,029 37o/o
September 30, 2010 -0- 2,854,883 (2,854,883) 0.0o/o 14,207,131 20o/o
55
SUPPLEMENTARY INF ORMATION
NONMAJOR GOVERNMENTAL FLINDS
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 of the City Council.
Statq gasoline excise tax fund accounts for proceeds from a state gasoline tax. The use of these
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
of these 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 of capital improvements determined by the municipal
governing body.
Miscellaneous grant fund accounts for funding arising from miscellaneous federal and state
government grants.
ASSETS:
Cash
Total assets
FUND BALANCE:
Restricted for road projects
Total fund balance
CITY OF PRATTVILLE, ALABAMA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FLINDS
SEPTEMBER 30, 2OII
TOTAL
NONMAJOR SPECIAL
GOVERNMENTAL REVENUE
FUNDS FUNDS
$ 256,012 $ 256,012
$ 256,012 $ 256,012
$ 256,012 $ 256,012
$ 256,012 $ 256,012
56
CITY OF PRATTVILLE, ALABAMA
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FLINDS
FOR THE YEAR ENDED SEPTEMBER 30, 2OII
REVENUES:
Intergovernmental revenue
Total revenues
OTHER FINANCING USES:
Transfers out
Total other financing uses
DEFICIENCY OF REVENUES AND OTHER
FINANCING USES OVER EXPENDITURES
FLI'ND BALANCES AT BEGINNING OF YEAR
FUND BALANCES AT END OF YEAR
TOTALNONMAJOR SPECIAL
GOVERNMENTAL REVENUEFLINDS FLTNDS
$ 392,856 $ 392,856
392,856 392,856
(703,101) (703,101)(703,101) (703,l0l )
(3 10,245) (3 I 0,245)
566,257 566,257
$ 256,012 $ 256,012
57
CITY OF PRATTVILLE. ALABAMA
COMBINING BALANCE SHEET
NONMAIOR SPECIAL REVENUE FUNDS
SEPTEMBER 30, 2OI1
STATE STATE
GASOLINE GASOLINEAND ALABAMA MISCELLANEOUS
EXCISE LUBRICATING TRUST GRANT
TOTAL TAXFUND OIL TAX FUND FLIND FUND
(j
@
ASSETS:
Cash S 256,012 $ 142,810 $ 113,202
Accounts receivable
Total assets
FUND BALANCE:
s 256,012 $ 142,810 $ 1t3,202 $ - $
Restricted for road projects S 256,012 $ 142:ql0 $ 113,202
Total fund balances $ 256,012 $ 142,810 $ 113,202 $ - $
CITY OF PRATTVILLE, ALABAMA
COMBINTNG STATEMENT OF REVENUES, EXPENDTTURES,
AND CHANGES IN FUND BALANCES
NONMAJOR SPECTAL REVENUE FUNDS
FOR THE YEAR ENDED SEPTEMBER 3O,2OII
STATE STATE
GASOLINE GASOLINE AND ALABAMA MISCELLANEOUS
EXCISE LUBRTCATING TRUST GRANT
TOTAL TAX FUND OIL TAX FUND FUND FUND
$ 392,856 $ 134,558 $ 105,058 $ 153,240
REVENUES:
Intergoverrrmental revenues
Total revenues
g oTHER FTNANCING USES:
Transfers out
Total other financing uses
Deficiency of revenues and other
financing uses over expenditures Q10,245) (139,317) (114,761)
FUND BALANCES AT BEGINNING OF YEAR 566.257 282,127 227,963
FLINDBALANCESATENDOFYEARS256,012SI42,SIO$11,3,202$-$
392,856 134,558 105,058 153,240
(703,101) Q73,87s) Ql9,8l9) (rs3,240) $ (56,167)
(703,l0 1)(273,875) (219,819) ( 153 ,240)(56,167)
(56,167)
56,167
CITY OF PRATTVILLE, ALABAMA
BUDGETARY COMPARISON SCHEDULE
STATE GASOLINE EXCISE TAX FLIND
FOR THE YEAR ENDED SEPTEMBER 30,2OI I
LINDER
BUDGET ACTUAL BUDGET
REVENUES:
State gasoline excise tax
Total revenues
OTHER FINANCING USES:
Transfers out
Total other financing uses
DEFICIENCY OF REVENUES AND OTHER
$ 137,ooo $ 134,558 $ (2,442)
137,000 134,558 (2,442)
FINANCING USES OVER EXPENDITURES $ 137,000 (139,317) S (276,317)
282,127FUND BALANCE AT BEGINNING OF YEAR
FUND BALANCE AT END OF YEAR
- (2U,875) - (?73,872)
-. (273i28U) Q!?'?Js)
$ r42,8r0
--
60
CITY OF PRATTVILLE, ALABAMA
BUDGETARY COMPARISON SCHEDULE
STATE GASOLINE AND LUBRICATING OIL EXCISE TAX FTJND
FOR THE YEAR ENDED SEPTEMBER 30, 2OI I
REVENUES:
State gasoline and lubricating oil excise tax
Total revenues
OTHER FINANCING USES:
Transfers out
Total other financing uses
DEFICIENCY OF REVENUES AND OTHER
FINANCING USES OVER EXPENDITURES
FUND BALANCE AT BEGINNING OF YEAR
FLIND BALANCE AT END OF YEAR
LINDER
BUDGET ACTUAL BUDGET
$ lo6,qoo $ lo5,os8 $ _ (gt?)
106,000 105,058 (942)
(21.9,819) (219,819)(2r9,9r9) (21?,8,!9)
$ l06,000 (114,7 6l ):-$ (220,7 61)
227 263
$ 1 13 ,202
--
6T
STATISTICAL SECTION
This part of the City of Pratwille, Alabama's comprehensive annual financial report presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, and required supplementary information
says about the City's overall financial health.
CONTENTS PAGE
Financial trends 62
These schedules contain trend information to help the reader understand how the City's financial
performance and well-being have changed over time.
Revenue capacity 66
These schedules contain information to help the reader assess the factors aJfecting the City's
ability to generate its sales taxes.
Debt capacity 69
These schedules present information to help the reader assess the affordability ofthe City's cunent
levels of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and economic information 73
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City's financial activities take place and to help make comparisons
over time and with other govemments.
Operating information 75
These schedules contain information about the Cify's operations and resources to help the reader
understand how the City's financial information relates to the services the Cify provides and the
activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports
for the cunent year.
Note: Information in the statistical section is provided for the last nine years since implementation of Govemmental Accounting
Standards Board (GASB) Statement No, 34, Basic Financial Statement, and Management's Discussion and Analysis for State
and Local Govemments (MD&A).
CITY OF PRATTVILLE. ALABAMA
SCHED{,JLE I
NET ASSETS BY COMPONENT
(accrual basis of accounting)
2003 2M 2005 2006 2007 2008 2009 2010 20ll
C'OVERNMENTAL ACTTVITIES :
hvestedincapitalass€ts,netofrelareddebt $ 262,094 $(835,480) $ 200,301 $ 1,747,516 523286,126 $26,252,599 s 27,913,767 $ 28,192019 $33,1,f4,191
623,621 2,740,330 2,670,892 12,053,513 6,9rr,387 6,238,962 3,76r,598 851251 6s3A78
r,799,37s 838,970 (477,82r) (29,sr4,316) (28,162,9241 (42,378,7001 (44,366,960\ (46,256,9701 (42,282,3791
Totalsovemmentalactivitiesnetassets _$2,685,099_ _S2J$,8?o_ _$4Wn_j_9s,713,282 _{_2,03442_ _$ (9,88?,t39I -$ (12,69t,s9s} j-C-7208J99I -$-(!,48449I
Restricted
Unrestricted
o\t\)
CITY OF PRATTVILLE. ALABAMA
SCHEDULE2
CHANGES IN NET ASSETS
(accrual basis of accounting)
2004 2005 2006 2007
o\(,
EXPENSES:
Governmental activities :
General government
Public safety
Public works
Cultural and recreational
Interest on long-term debt
Total govemmental activities expenses
PROGRAM REVENUES:
Governmental activities :
Charges for services:
General government
Public safety
Public works
Cultural and recreational
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenu€s
Total primary government net expense
GENERAL REVENUES AND OTHER CHANGES IN NET ASSETS:
Governmental activities :
Taxes:
Sales taxes
Real and personal propefty taxes
Motor fuel taxes
Intergovemmental
lnvestment earnings
Miscellaneous revenue
Gain (loss) on sale of capital assets
Total governmental activities general revenues
Change in net assets
2003
$ 3,694,611 $ 3,536,671
10,601,648 1,1,521,996
5,964,375 6,184,1001,851,287 2,236,072794,955 678,652
22,906,876 24,t57,491
3,101,357 3,231,3401,105,768 t,292,271
3,215,659 3,040,210225,033 213,697129,790 304,866
$ 4,238,631 $ 4,861,244
12,485,123 11,642,133
6,033,293 25,283,4792,362,297 2,098,474606,591 1,188,315
25,725,935 45"073,645
3,580,313 3,939,2771,310,831 I ,417,9092,993,596 3,219,938209,831 226,660265,252 1,015,035
$ 5,350,008
11,610,724
6,548,115
2,381,700
2,047,213
27,937,760
4,654,085
1,454,651
3,969,798
303,580
385,083
1,245,578
12,022,775
(15,914,?85)
2008
$ 6,765,361
13,028,713
20,541,104
2,502,375
2,327,227
45,164,780
5,183,865
1,781,289
3,930,206
318,697
460,308
1,975,504
13,649,869
(31,514,911)
2009
$ 8,093,740
13,401,417
8,005,500
2,549,480
2,445,024
34,495,L61
4,901,819
1,201,853
3,928,435
261,429
313,602
2,037,803
12,644,941
{21,850,220)
2010
$ 9,124,172
14,719,827
8,755,792
2,449,184
2,585,660
37,634,635
4,874,993
1,287,322
4,412,889
265,044
206,761
2,122,469
13,169,478
(24,465,L57)
201I
$ 6,984,318
13,369,083
7,235,404
2,080,642
2,460,545
32,r29,992
4,99A,894
1,553,044
5,400,580
238,279
L93,703
5,847,250
18,223,850
(13,906,142)
7,777,607 8,082,384
(15,129,269) (16,075,107)
9359$23 9,818,p19
(17,366,112) (35,254,826)
tt,731,268 13,360,231 14,t99349 14,729,824 t5,765,6t2 15,96s,129 15,890,723 16,7%,679 19,432,210
1,308,033 t,543,2t7 1,638,862 t,798,544 2,06s,975 2273,782 2,4E1,45O 2,500,129 2,545,750
234.54t 24t,st2 242,684 242,416 243,557 239,897 238,361 240,547 239,616
179,052 16,458 15,357 20,228 17,7s3 9,092 9,159 161,534 153,240
193,336 160,646 165,783 182995 644,767 232,3E7 39,410 42,318 32,621
384,042 740,819 772,830 742,006 530,544 E72,896 386,661 m6,84s 226,69s
363,017 70955 (19,201)
t4,4t3289 16,133,838 t7,Ot5,664 17,716,013 18,868208 19,593,183 19,0/s,764 19,948,Os2 22,630,132
$ (?r5,9E0) $ 58,731 $ (350,448) $(r7,538,8r3) 52,953,223 $ (11,92r,728) $ (2,804T56) $ (4,517,r0s) $ 8,723,990
GENERAL FUND:
Reserved
Unreserved
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
ALL OTHER GOVERNMENTAL FUNDS:
Reserved reported in:
Capital projec6 fund
Reserved" reported in:
R Debt service fund
Unreserved, reported in:
Special revenue funds
Unreserved, reported in:
Debt senrice fund
Unreserved, reported in:
Capital projects fund
Restricted
CITY OF PRATTVILLE. ALABAMA
SCHEDULE 3
FLTND BALANCES OF GOVERNMENTAL FUNDS
(modified accrual basis of accounting)
2003 2004 2005 2006 2007 2008 2009 2010 20ll
$ 171.4s7 $2,063,054 $r,777,rr4 $ 2,03r,204 $ 944,030 $r.181,267 $1,043,077 s 821,293
(641,630) (520,470) (r,42e,3s7) (1,370,e35) (s4s,442) (744,s77) (316.s17) (2,313,284)
$ 159.850
653,478
12.185
r72,6s3
550,285
$ (470.173) $1,542,584 s 347,7s7 $ 660,269 $ 398,588 $ 436,690 S 726,s60 $(1,491,991) $1,s48.4s1
s 492.482 $ 664,592 $ 6,176,905 $2,607,652 $ 2,510,352 $ 2,371,105 $ 618,868
2.6s4.t75 1,060,466 r,192,527 858,397 80,178
s 286,373 3sO,577 88,158 326,192 511,735 63,082 373,568 566,257
153,567 270,241 264,820 258,009 255,061 (6r,295) 169,558
3,156,586 2,425,627 2,053,100 2,964,424 2,445,873 2,471,886 25,258 (357,8E5)
$ 480.627
ToEl.I oihs sE@ald fird! 13.596.526 t 3.51&92? J 3.070.570 I12.3?9.705 16,6E0,7E7 S 6l?5,552 I1,797,E86 S 907,rlE t 4E0,527
Nor.: P6i.d. Fidb2011 h.E lotba taoldildy E*d.d fcr! ib@oflt t@dtNo 54 of lh! C@trl AeorEtilg Sltndn h B@.t
Fud B.L!c. R.lo.riig dd $c Gorqm(dl Flnd TyF Definnic
CITY OF PRATTVILLE. AT AR4IYlq
SCFIEDULE 4
CHANGES IN FUND BALANCES OF GOVERNMENTAL FLJNDS
(modified accrual basis of accounting)
2003
$13,273,842
3,101,357
308,842
4,285,668
260,792
577,378
21,807 ,879
$ 15,144,960
3,231,340
321,324
4,133,786
412,392
901"465
24,145,267
$ 14,199,349
1,638,862
242,684
3,580,313
280,609
4,177,380
336,878
939,613
25,394,688
s14,729,824
1,798,544
242,416
3,939,277
790,502
4,511,61I
352,896
1,170,940
27,526,010
2007
$ 15,365,612
2,065,975
243,557
4,654,085
222,043
5,319,420
418,609
644,772
849,160
29,783,233
2008
$ 15,965,129
2,273,782
239,898
5,183,865
302,118
5,493,106
537,096
232,387
1,197,16l
3l,424,532
2009
$ 15,890,723
2,481,450
238,361
4,901,819
343,156
4,905,652
496,065
39,410
1,109,616
30,396,252
2010
s16,796,679
2,500,129
240,547
4,874,993
217,701
5,564,563
400,692
44,844
1,099,914
31,744,062
201 I
s19,432,210
2,545,750
239,616
4,990,994
153,240
6,655,705
536,298
32,621
908,449
35,494,783
2006200s2004
o\(.rl
REVENUES
Sales taxes
Real and personal property taxes
Motor fuel taxes
Licenses and permits
lntergovernmental revenues
Charges and fees for services
Fines and forfeitures
Interest
Miscellaneous
Total revenues
EXPENDITURES.
Unreserved, reported in:
Current.
General govemmental
Public safety
Public works
Cultural and recreation
Capital outlay
Debt service.
Principal payments
Interest and fiscal charges
Bond issuance costs
Total expenditures
Excess of revenue over (under) expenditures
OTHER FTNANCTNG SOT.JRCES (USES):
Transfers in
Transfers out
Transfers to component units
Issuance ofbonds
Issuance of refunding bonds
lssuance of notes payable
Proceeds from capital lease
Payment to refunded bonds escrow agent
Sale of capital assets
Bond premium (discount)
Total other financing sources
Net change in fund balance
Debt service as a percentage of noncapital expenditures
307,808
383-017
(61,630) 2,529,345 483,028 31,575,746 307,808 15,800,438
$ (897,137)
3,596,816
g,404,225
4"914,907
|,330,782
I,176,805
1,506,896
7L2,955
n,643386
(835,507).
4,699,240
{4,699,240)
(444.647)
3,488,777
10,733,001
5,017,663
1,761,700
1,391,229
1,567,485
674,599
85,000
24,719,454
{s74,187)
3,209,831
(3,209,83 I )
(201,750)
2,085,000
373,259
272,836
l-_1,955,15!_
9.78o/o
4,161,340
[ 1,665,559
5,613,345
1,780,612
2,193,L65
L,476,500
650,279
27 "540,800
(2,146,112)
4,461,246
{4,461.246)
(302,350)
625,000
157,792
2,586
4,825,371
I1"141,574
24,664,571
1,796,512
2,493,938
2,599,045
650,342
74.1,010
48,912,363
(21,386,353)
32,254,124
{32,254,124)
30,470,000
625,000
480,746
5,261,945
11,153,949
5,588,300
2,005,573
8,505,999
1,418,665
|,917 ,209
35S51540
(6,068,407)
4,979,825
(4,979,825)
6,280,215
12,746,727
18,984,015
2,152,013
3,756,955
1,445,9L2
2,158,816
366,450
47,891,103
(16,466,571)
16,596,498
(16,586,498)
15,300,000
136,099
451,767
(87,428)
_L_@11:r
8.85o/o
6,318,533
12,989,658
7,192"300
2,488,332
2,811,090
I,816,556
2,430,712
36,03?,181
(5,640,929)
7,276,949
(7,276,949)
1,621,373
1,000,000
930,760
7,537,96L
14,023,058
8,007,685
2,371,770
3,290,520
2,331,364
2,465,127
2l7,4ll
40,244,896
(8,504,834)
3,149,228
(3,149,228)
2,670,004
6,315,000
300,000
260,000
(6,322,926)
5,973,871
12"712,387
6,519,457
1,749,355
478,136
9,073,[90
2,492,666
jg,rrr,oCI
(3,504,279)
5,525,970
(5,525,970)
5,637,303
$ (1,663,084) $10,189,393 $ (5,760,599)
3,ssz:rn =ffi s.63,..303
$ (2,088,796)$ (5,109,019) $ 2,133,024
10.240h 8.49Vo 8.60%L2.2lo/o 12.74o/o 13.54o/o 30.00%
Apparel stores
Food stores
Automotive
Manufacfuring machine
Restaurants
Home furnishings and appliances
Building materials
Service stations
Other retail stores
Totals
City direct sales tan rate
Source: City's Finance Departrnent.
CTTY OF PRATTVILLE, ALABAIW{
SCHEDULE 5
NET TN&{BLE SALES BY CATEGORY
2003 2004 2005 20a6 2007 2008 2A09 2010 20rr
$37,317,474 $40,062,414 $4s,541,937 $,t4,070,516 544,057,973 $49,891,510 $6r,766,373 $72,438,7E2 $89,597,7E1
74,336,069 75,475,573 78,477,260 79,tt9,35t 75,830,662 70,156,573 73,331,2U 71,839,635 85,899,518
93,894,984 96,341,702 90,016,728 78,357,966 74,734,t28 65,3E4,586 46,030,674 58,984,572 63,159,678
r,,225,203 1,8 13,5 I 7 1,,512,332 1,,512,272
50,107,828 57,047,006 59,626,869 63,443,394 62,844,097 51,658,420 53,838,46E 62,888,874 76,728,168
4,494,332 s,157,160 4,s99,982 s,r38,44E 6,693,246 r3,63E,37s 2r,877,677 20,s66253 19,7s4,rr4
3r,&4,832 37,753,391 44,r64,7M 44,49r,167 36,036,047 48,684,662 39,460,E96 39,128,465 46,078,340
5,838,760 6,428,097 8,639,890 9,765,852 10,784,193 2r,76r,W3 22,983,026 22,447,212 23,685,040
79,051,1E8 104,053,618 111,509,853 118,363,518 149,5M,076 256,892,888 244,770,686 262,697,325 294,142,143
s376,685,467 $422,318,961 5U2,s77,223 5442,750212 5460,s24,422 $579-293,310 $565,872,561 $612,503,4s0 $ 700,557,054
2.sa%250%2.50Yo 2.500iT.2.500 2.s0% 2.50%2.50% 3.50%
o\o\
CITY OF PRATTVILLE. ALABAMA
SCTIEDULE 6
SALES TAX REVENUE PAYERS BY CATEGORY
FISCAL YEARS 2OO3 THROUGH 2011
2010 201 I
N{.JMBER
OF
FILERS
PERCENTAGE
OFTAX TOTALTAXLIABILITY LIABILTTY
PERCENT OF
TAX REMITTED
BY TOP TEN
TAXPAYERS
NUMBER
OF
FILERS
NUMBER
OF
FILERS
PERCENTAGE
OFTAX TOTALTAXLIABILITY LIABILMY
PERCENT OF
TAX REMTTED
BY TOP TEN
TAXPAYERS
PERCENTAGE PERCENT OFOF TAX REMTTEDTAX TOTALTAX BYTOPTENLIABILITY LIABILITY TAXPAYERS
Apparel stores
Food stores
Automotive
Machine
Restaurants
Home fumishings and appliances
Buildrng matenals
Service stations
Odrer retail stores
Totals
11.7tr/o
13.89/o
l.74Vo
O.lW/o
lO.2V/o
4.l5Yo
7.48Yo
4.35Yo
46.3f/o
_100-00o/"-
2006
8.050 17
ll.\3Yo 8
27
25
95
2.44Vo 12
6.22Yo 8
28
9.55Vo 918
$ 2,300,008
2,205,072
315,798
t1,,342
1,969,640
507,095
I,182,848
608,004
7,550,?36
13.81% 7.69/o
l3.24Yo ll.97o
1.9@/o
0.07o/o
tt.830h3.05Vo 2.l8%o
1.le/o 6.2ff/o
3.65Yo
45.350h 9.2204
l7
8
27
25
90
t2
8
29
964
l4
8
24
22
89
t2
8
30
980
$ 1,544,159
1,833,281
230,153
13,601
1,345,962
546,942
996,522
574,576
6,1L9,267
$ 1,810,970
1,795,991
294,923
11,342
1,572,222
514,156
978,2r2
561,180
6,565,423
8A9/o
12.250A
2.540A
6.74o/o
10.1tr/o
12.E4o/o
t2.7304
2.0f/o
0 08%
Il.l5o/o
3.65Yo
6.94Yo
3.98Yo
46.540/t,
I,187 $ 13,194,463::I,180 $ 14,t04,419 100.00Plo I,138 $ 16,650,543 100.00olo
NIJMBER
OF
FILERS
PERCENTAGE PERCENTOFOF TAX REMTTED NUMBERTAX TOTALTAX BYTOPTEN OFLTABILMY LhBILITY TAXPAYERS FILERS
PERCENTAGE
OF
TAX TOTALTAX
LIABILITY LIABILITY
PERCENT OF
TAX REMITTED NUMBER
BY TOP TEN OF TAX
TAXPAYERS FILERS LIABILITY
PERCENTAGE PERCENT OF
OF TAX REMTTED
TOTALTAX BY TOP TEN
LIABILITY TAXPAYERS
Apparel stores
Food stores
Automotrve
Machine
Restaurans
Home fumrshrngs and appliances
Buildrng materials
Service stations
Other retail stores
Totals
Ll.6V/o
20.82Yo
4.lZ%o
16.6f/o
l.35Yo
ll.TlYo
2.57'A
3t t40A
_-__100.00%-
2005
75
l0ro.Tto6 8
28
I 1.80o/o 1,056
_r223
$ I,101,449
1,895,767
373,67r
1,571,102
167,331
900,901
269.605
3,738,602
_t__10,0t8,42!_
lO.9f/o
18.92o/o
3.73Vo
1s.68%
1.670/o
8.99/o
2.6f/o
37.33o/o
100.00P/o
9 $ I,101,763
6 1,977,984
30 391.790
69 1,586,085
l0 t28,461
6 r,Ll2,2'79
30 244,146
955 2,959,088
l,l l5 $ 9,501,596
l0.3lYo
2O.55o/o
l.sloh
l3
7
26
8.Wo 14 $ 1,247,288 9.48Yo
l7 .7 lo/o 7 1,7 53,914 13 .33o
1680 25 326.923 2.4V/o
L7 9.189 0.070
84 1,291,461 9.820/o
12 340,959 2.5V/o
7 .920A 8 I ,217,ll7 9.250
28 5M,O27 4140
10.98o/o 1,150 6,422,322 48.83%
1,345 $ 13,153,200 100.00%::-::::
6.OOoh
12.560/0
r.3504
1.350
7 900h
12.48o/o
o\{
NUMBER
OF
FILERS
8
6
23
60
7
5
28
898
NUMBER
OF
FILERS
PERCENTAGE
OF
TAX TOTALTAX
LIABILITY LIABILITY
PERCENT OF
TAX REMTTED NUMBER
BY TOP TEN OFTAXPAYERS FILERS
PERCENTAGE
OF
TAX TOTALTAX
LIABILITY LIABILITY
PERCENT OF
TAX REMITTED
BY TOP TEN
TAXPAYERS
PERCENTAGE PERCENTOFOF TAX REMTTEDTAX TOTALTAX BYTOPTENLIABILITY LIABILITY TNGAYERS
Apparel stores
Food stores
Automotive
Machine
Restaurants
Home furnishings and appliances
Burlding marerials
Service stations
Other retail stores
Totals
Source:
9
6
3l
70
l0
6
30
943
I,139,548
t,961,932
450,084
12.2T/o
2l.l$Vo
4.86Yo
l r. l5%
2L.LIo/o
2.82o/o
1,001,560
1,886,889
481,709
ll.6V/o
2t.860/0
5.580h
16jzYo
1.49/o
l0.94Yo
1.8604
30.l4Yo
l0.45Vo
2t.78010
2.43o/o
l0.l8olo
12.OV/o
932,937
1,858,402
469,475
12.37o/o
24.65Vo
6.230/"
1t.32'A
24.2ro
2.g|o/o
9.93Yo
13.030
9
6
30
1,490,672 1,6.0f/o
I 15.000 1.240h
I,l04,t l8 Ll.gzYo
215,997 233Vo
2,787,746 30.09/o
65 1,426,175
7 t28,929
t0.920A 6 943.835
28 160,7CI2
ll.93o/o 882 2,601,340
1,033 _L_gJ:U3e_
1,252,696 16.6204
112,358 lAf/o
79l,l2l ro.4f/o
145,969 1.940
t,976,280 26.21:/0
1,035 $ 7,539,238 lWYo:-::=:-;:EI,105 s 9,264,A97 100.00p/o:::100.00o/o
Notc: Due ro qidqfisliry issu, tlrc mc of lhe h ldg6t r€vare psyss re rrel avaihble. Thc st€gori6 prMt€d 8e intmded b povide altemxirc informatim reguding drc rr of dE CiVs @aue.
CITY OF PRATTVILLE, ALABAMA
SCHEDULE 7
DIRECT AND OVERLAPPING SALES TAX RATES
FISCAL
YEAR
CITY
DIRECT
RATE
AUTAUGA
COTJNTY
STATE OF
ALABAMA
TOTAL
SALES
TAX
2003
2004
200s
2006
2007
2008
2009
2010
20lr
FISCAL
YEAR
2.50
2.50
2,50h
2.50
2.50k
2.50h
2.50
2,SYo
3.50
CITY
DIRECT
RATE
ELMORE
COUNTY
4,00Y0
4.000
4.000
4.0004
4.A00h
4.0004
4.0004
4.000
4.0004
STATE OF
ALABAMA
8.50
8.50
8.50
8.50h
8.504
8.50h
8.SYo
8.50
9.50
TOTAL
SALES
TAX
2%
2%
2%
2%
2%
2%
2%
2%
2%
2003
2004
2005
2006
2007
2008
2009
2010
20lr
2.50h
2.sYo
2.sYo
2.50
2.50
2.sYo
2,50h
2.50
3.50
t%
I%
t%
t%
1%
t%
r%
t%
t%
4.000
4.0004
4.000h
4.000
4.00Yo
4.0004
4,000
4.0004
4.0004
7 .50
7.50h
7 .50
7 .50
7 .50
7.s%o
7 .50
7 .50
8,504
Sources: City Finance Department, Autauga County Revenue Commissioner's Office,
and Elmore County Department of Finance.
68
CITY OF PRATTVILLE. ALABAMA
SCHEDULE 8
RATTOS OF OUTSTANDTNG DEBT BY TYPE
FTSCAL
YEAR
GENERAL
OBLIGATION
BONDS
TERM
LOAN
LTMITED
OBLTGATION
WARRANT
L,594,489
1,594,489
1,594,489
L,594,489
1,594,489
CAPTTAL
LEASE
TOTAL
PRIMARY
GOVERNMENT
15,509,906
16,400,680
15,081,973
44,647,555
45,133,603
59,449,764
61,1 64,822
62,337,354
58.853.728
PERCENTAGE
OF TAXABLE
SALES (b)
4.12%
3.88%
3.41o/o
10.08%
9.80%
t0.26%
10.81%
r0.18%
8.40o/o
PERCENTAGE
OF PERSONAL
INCOME (a)
PER
CAPITA
(a)
339
349
315
909
906
l,l8 I
1,205
1,142
*
2003
2004
2005
2006
2007
2008
2009
2010
20tl
14,920,985
15,8 r1,724
14,595,000
44,352,609
43,102,043
56,994,583
57,099,163
57,699,065
54.755.183
$ 99,344
1,025,708
1,803,956
L.755.709
588,921
588,956
486,973
294,946
437 ,07 |
76t,348
1,445,462
1,239,844
748.347
L.29Yo
1.29%
l.l,0o/o
3.04%
2.900
3.620A
3.680/o
*
t<
o\\o Notes: Details regarding the City's outstanding debt can be found in the notes to the hnancial statements.
(a) See the Schedule of Demographics and Economic Statistics on page 73 for personal income and population data.
(b) See page 66 for net taxable sales.
* Information not available.
FISCAL
YEAR
GENERAL
OBLIGATION
BONDS
CITY OF PRATTVILLE. ALABAMA
SCHEDULE 9
RATIOS OF NET GENERAL BONDED DEBT OI.JTSTANDING
LESS: AMOLINTS
AVAILABLE
DEBT SERVICE
FLIND
PERCENTAGE OF PER
NET TAXABLE CAPITA
. S .{,ES (a) - (!)TOTAL
2003
2004
2005
2006
2007
2008
2009
2010
20t I
14,920,995
15,8 11,724
14,595,000
44,352,609
43,102,043
56,994,583
57,099,163
57 ,699,065
54,7 55,183
153,567
270,241
264,820
2,g12,lg4
I ,3 I 5,527
I,l3 1,232
1,427 ,955
80, I 78
5
14,7 67 ,41 8
15,541,483
14,330,180
41,440,425
4l ,7 86,5 I 6
55,863,351
56,071,208
57 ,618,887
54,7 55,178
3.920/o
3.68s
3,24Y0
9,360/o
9.07o/o
9.64%
g,9lo10
9.41%
7.82%
$ 323
331
299
844
839
l,l0g
I,105
1,056
*{
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(a) See page 66 for net taxable sales.
(b) See the Schedule of Demographics and Economic Statistics on page 73 for population data.
* Information not available.
70
CITY OF PRATTVILLE, ALABAMA
SCHEDULE IO
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30. 2OI I
DEBT
OUTSTANDING
ESTIMATED
PERCENTAGE
4PPLICABLE (q)
ESTIMATED
SHARE OF
DIRECT AND
OVERLAPPING
DEBTGOVERNMENTAL UNIT
Debt repaid with property to<es: Autauga County
Subtotal, overlapping debt $ 12,916,258
City of Pratfville, Alabama direct debt
Total direct and overlapping debt
46,480 $ 6,003,348
58,853,728
$ 64,857,076
-
Sources: Assessed value data used to estimate applicable percentages provided by the Autauga County Revenue
Commissioner. Debt outstanding data provided by the County.
Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping govemments that is bome by the residents and
businesses of the City of Pratwille, Alabama. This process recognizes that, when considering the City's ability to issue and
repay long-term debt, the entire debt burden bome by the residents and businesses should be taken into account. However,
this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping
government.
(a) The percentage ofoverlapping debt applicable is estimated using ta:<able assessed property values. Applicable percentages
were estimated by determining the portion of the City's taxable assessed value that is within the County's boundaries and
dividing it by the County's total taxable assessed value.
7l
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to ttre limit
as a percentage of debt limit 3l.84Vo 2738Yo 24.12o/o 17.29/o 16.820
CITY OF PRATTVILLE. ALABAMA
SCHEDULE 1 I
LEGAL DEBT MARGIN TNFORMATION
2003 2004 2005 2W6 20{J.7 2008 2009 2010 2011
f4o,t47,972 $42.639,343 $45,188,970 952,942,25r S58,581,532 $67,654,684 $69,779,924 571,725,19 570,69L240
13,006,339 | 1,845,439 10,899,363 9,153,937 9,853,367 9,@9,304 I 1,690,201 14,415,694 12,436,482
$27,E41,633 $30,793,909 $34,289,607 $43,788,314 $48,728,165 $5E,005,380 $5t,0t9,723 S57,309,470 $ 5t,255,75E
L4.26o/o 16.750/o 2O.lV/o L7.5f/o
Legal Debt Margin Calculation for Fiscal Year 2011
Assessed value
Debt limit (2V/o of total assessed value)
Debt applicable to limit:
General obligation bonds
Notes payable
Lease payable
Less: Amount set aside for repaym,ent
of general obligation debt
Total net debt applicable to limit
Legd debt margin
_l_:53,461299_
$ 70,692,240
9,760,183
1.,927,957
748,347
5
12,436,482
$ 58,255,758
Note: Under state law' the City of Prattville, Alabama's outstanding gaersl obliga:ion debt should not exceed 20plo oftotal assessd prop€rty value.
repaying goeml obligation bonds.
By law, the general obligation debt subject to the limitation may be offset by amounts set aside for
CITY OF PRATTVILLE, ALABAMA
SCHEDULE 12
DEMOGRAPHIC AND ECONOMIC STATISTICS
CALENDAR
YEAR
2003
2004
2005
2006
2007
2008
2009
2010
20tr
POPULATION
PERSONAL
TNCOME
(THOUSANDS
oF pOLLARS)
r,2a1,705
1,,273,284
1,371,084
1,467,514
I,555,999
1,640,204
r,66A,766*
PER
CAPITA
PERSONAL
INCOME
SCHOOL
ENROLLMENT
8,960 (02-03)
9,083 (03-04)
9,282 (04-05)
9,379 (05-06)
9,649 (06-07)
9,8 l9 (07-08)
9,854 (08-09)
t0,076 (09-10)
9,877 (10-11)
AUTAUGA
COUNTY
UNEMPLOYMENT
RATE
4.60%
43AYo
3.20%
2.90o.h
2.90%
4.50%
8.60%
8.00%
6.80%
MEDIAN
AGE
{(,
45,762
46,933
47,870
49,105
49,834
50,354
50,7 56
54,,57 |
26,260
27 ,130
28,642
29,885
31,224
32,573
tr,rr:
36. 10
36.46
36.26
36.16
36.37
{<
Sources: Population, personal income, and median age information provided by the Bureau of Economic Analysis and the Central Alabama
Regional Planning and Development Commission. Unemployment data provided by the Alabama Department of Industrial Relations and the
United States Department of Labor Bureau of Labor Statistics. School enrollment data provided by the Autauga County Board of Education.
Note: Population and median age information are based on surveys conducted during the last quarter of the calendar year. Personal income
information is a total for the year. Unemployment rate information is an adjusted yearly average. School enrollment is based on the census at
the start of the school year.
* Unavailable
CITY OF PRATTVILLE, ALABAMA
SCHEDULE I3
PRINCIPAL EMPLOYERS
EMPLOYEES
1,000
600
480
385
235
165
r54
130
r25
100
3,37 4
20tr
EMPLOYER
PERCENTAGE
OF TOTAL CITY
EMPLOYMENT
6,38Yo
3.83Yo
3.06Vo
2.4604
1.500h
1.050
0.98yo
0.830
0,80%
0.640
21 s3%
Autauga County Board of Education
International Paper
Wal-Mart
Cify of Prattville, Alabama
Prattville Baptist Hospital
Autauga County
Prattville Health and Rehabilitation
Kinedyne
LoneStar Plastics
M-Tek
Totals
Source: Prattville Area Chamber of Commerce.
Note: Information does not include government employment
*Ninth previous year information not available
74
CITY OF PRATTVILLE, ALABAMA
SCHEDULE I4
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FLINCTION
2003 2004 2005 2006
87
5
75
5
4
9
t4
26
26
22
2007
85
7
85
4
4
l3
l8
28
25
23
2008
5
7
8
4
4
4
3
l0
87
9
89
4
5
l3
22
28
26
24
2009
3
7
7
5
4
6
4
t2
90ll
89
4
4
t6
22
30
29
24
2
2010
3
7
7
5
4
6
3
l0
92
9
88
4
4
l4
2l
29
28
24
2
z0rr
85
7
84
8
9
7
28
25
2l
l5
2
Function/Program
General government:
Executive
Legislative
Finance
City Clerk
Human resources
Judicial
Information technology
Vehicle maintenance
Public safety:
Police:
Officers
Civilians
Fire:
Officers
Civilians
Public works:
Engineering
Planning and development
Street
Sanitation
Wastewater
Urban management
Culture and recreation:
Leisure services
Performing and creative arts
Totals 3r7 32t 323
----
313 335 352
- ----
369 360 325
--- --
3
7
7
6
I
6
2
l0
86
5
76
2
7
5
l8
29
26
2l
3
7
7
4
2
4
3
l0
88
5
8r
4
4
9
l8
27
23
22
4
7
7
4
2
4
J
l0
86
5
82
4
4
l0
t6
27
26
22
3
7
6
2
4
5
I
6
5
7
7
4
4
4
3
9
5
7
6
4
2
4
.tJ
9
Source: Human Resources.
Notes: This report includes regular full time employees, regular part time employees (based on full time equivalent
employment calculated by dividing labor hours by 2,080 hours), elected and appointed offrcials as of September 30
each vear,
75
CITY OF PRATTVILLE" ALABAMA
SCHEDULE 15
OPERATTNG TNDTCATORS BY FUNCTTON/PROGRAM
2003 2004 2005
313
18
6,537
3,283
105
3,531
6,199
96
2,291,
3,000
2.54
r.67
38
18,500
2006 2007 2008 2009 2010 20tr
106 135 106
L7 l0 ll
6,472 3,658 3,142
177 149 r47
\to\
Function/Program
General government:
Building permits issued:
Residential
Commercial
Building inspections conducted
Building plan reviews
Public safety:
Police:
Physical arrests
Parking violations
Traffic violations
Fire:
Emergency responses
Fires extinguished
Inspections
Public works:
Potholes repaired
Street resurfacing (mi les)
Wastewater:
Average daily sewage treatment (millions of gallons):
Autauga Creek
Pine Creek
Refuse collection:
Refuse collected (tons per day)
Recyclables collected (tons per day)
Sources: Various City departments
282
26
2,988
324
4,425
5,191
r07
1,998
3,000
r.69
1.65
35
16,000
367
27
2,955
274
4,454
5,547
135
2,229
2,000
9
1.82
r.49
37
17,500
351
l7
8,727
3,302
89
3,942
6,449
t43
2,395
2,000
7
2.06
1.77
39
20,000
260
26
7,493
317
3,252
77
6,398
7,026
142
2,522
3,000
r.7 5
r.70
4l
25,000
173
t6
7,455
32s
3,288
2s3
6,236
6,1 84
1r5
2,766
2,000
8
1.90
1.88
42
27,000
2,651
143
7,914
4,989
132
3,772
3,000
44
28,000
2.35 2.r8 1.601.99 1.87 1.90
3,035 3,208
348 373
6,299 6,450
5,199 5,221
115 113
2,996 2,725
2,000 2,000
3
45 46
29,00a 30,000
CITY OF PRATTVILLE. ALABAMA
SCHEDULE 16
CAPITAL ASSET STATISTICS BY FLINCTIONNROGRAM
2003 2004 2005 2006 2007 2008 2009 2010 201 l
Function/Program
Public safety:
Police:
Stations
Patrol cars
Motorcycles
Fire stations
Refuse collection
Collection trucks
Public works:
Streets (miles)
Highways (miles)
Streetlights
Traffic signal heads
Cultural and recreation :
Acreage
Playgrounds
Baseball/softball diamonds
Soccer fields
Community centers
Senior citizens center
Sources: Various City departments.
I
65
ll
3
t2
330
9
l6
9
2
I
I
65
ll
3
l2
330
9
l6
9
2
I
I
70
ll
3
ll
330
9
l6
9
2
I
I
66
l0
3
t2
330
9
l6
9
2
I
I
66
ll
3
l4
330I
t6I
2
I
I
7l
ll
3
l5
330
9
t6
9
2
I
I
8l
ll
3
l5
354
l0
l6
9
2
I
I
82
ll
3
l5
I
8l
9
3
l5
209
23
2,450
270
3s4 354l0 l0
16 16
9922
ll
Notes: No capital asset indicators are available for the general government.
77