FY12 Comprehensive Annual Financial Report - City of PrattvilleCITY OT PRATTVILLEO ALABAMA
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2OI2
COMPREHENSIVE ANNTJAL
FINANCIAL REPORT
Prepared by:
Department of Finance
Douglas C. Moselty, CITP, CISA, CPA
Finance Director
INTRODUCTORY SECTION
CITY OF PRATTVILLE, ALABAMA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 3O,2OI2
TABLE OF CONTEI\TS
I. INTRODUCTORY SECTION
Table of contents
Letter of transmittal
List of principal officials
Organizational chart
Map of the City
II. FINANCIAL SECTION
Independent auditor's report
Management's discussion and analysis
PAGE
i-iii
iv - vii
viii
ix
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3-14
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22
23
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of net assets
Statement of activities
Fund Financial Statements
Balance sheet - governmental funds
Reconciliation of balance sheet of governmental funds to statement of net assets
Statement of revenues, expenditures, and changes in fund balances - govemmental funds
Reconciliation of statement of revenues, expenditures, and changes in fund balances
of governmental funds to statement of activities
Statement of net assets - proprietary funds
Statement of revenues, expenditures, and changes in net assets - proprietary funds
Statement of cash flows - proprietary funds
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CITY OF PRATTVILLE. ALABAMA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30" 2OI2
TABLE OF CONTENTS (Continued)
II. FINANCIAL SECTION (Continued)
pAcE
Statement ofrevenues, expenditures, and changes in fund balances - budget and actual
general fund 24 - 27
Notes to Financial Statements 28 - 62
Schedule of funding progress of the City's post-employment benefits other than pensions 64
REQUIRED SUPPLEMEI\TARY II{FORMATION
Schedule of funding progress of the City's defined benefit pension plan
SUPPLE MEI\TARY INFO RMATION
Combining balance sheet - nonmajor governmental funds
63
65
Combining statement of revenues, expenditures, and changes in
fund balances - nonmajor governmental funds 66
Combining balance sheet - nonmajor special revenue funds 67
Combining statement of revenues, expenditures, and changes in
fund balances - nonmajor special revenue funds 68
Budgetary comparison schedule - state gasoline excise tax fund 69
Budgetary comparison schedule - state gasoline and lubricating
oil excise tax fund 70
III. STATISTICAL SECTION
Financial Trends
Schedule I Net assets by component 7l
Schedule 2 Changes in net assets 72 -73
Schedule 3 Fund balances of sovernmental funds 74
CITY OF PRATTVILLE. ALABAMA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30. 2OI2
TABLE OF CONTENTS (Continued)
III. STATISTICAL SECTION (Continued)
Schedule 4 Changes in fund balances of governmental funds
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
Debt Capacity
Schedule 8 Ratios of outstanding debt by type
Schedule 9 Ratios of net general bonded debt outstanding
Schedule l0 Direct and overlapping governmental 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 l4 Full-time equivalent city government employees by function
Schedule l5 Operating indicators by function/program
Schedule l6 Capital asset statistics by function/program
PAGE
75
76
77 -78
79
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84
86
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82
83
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iv
March 25, 2013
To the Citizens of
The City of Prattville
Prattville, Alabama
The Comprehensive Annual Financial Report (CAFR) of The City of Prattville (the government) for the
fiscal year ended September 30, 2012 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 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 government and its component units. All disclosures necessary
to enable the reader to gain an understanding of the government’s financial activities have been
included.
The Report
The financial section of the CAFR 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.
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,
environmental services, culture and recreation, economic and community development, planning, and
general administrative services.
During fiscal 1993, the City of Prattville implemented the Governmental Accounting Standards Board’s
(GASB) statement on defining the reporting entity. As a result, the Autauga‐Prattville Public Library,
Prattville Airport Authority, and Historical Prattville Redevelopment Authority have been included as
separately presented component units on the City’s reporting entity in the CAFR.
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 No. 63, "Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of
Resources, and Net Position," provides financial reporting guidance by standardizing the presentation of
deferred outflows of resources and deferred inflows of resources and their effects on a government's
net position. The requirements of this statement are effective for financial statements for periods
beginning after December 31, 2011.
City Profile
The City of Prattville is the County seat of Autauga County, was incorporated on August 8th 1865, and is
located in south central Alabama. lt serves a population of approximately 33,960. The City of Prattville
operates under a Mayor/Council form of government with a fiscal year from October l't 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, Debt Service Fund, Special
Revenue Funds, and Enterprise Funds 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 localeconomy.
The City of Prattville 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 government is responsible for establishing and maintaining an internal control
structure designed to ensure that the assets of the government 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 generally accepted accounting principles. 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 government 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 generally accepted 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 government 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 finance director or mayor.
VI
Budget amendments are effected by ordinance enacted by the governing body when needed. Activities
of the General Fund, Debt Service Fund, Special Revenue Funds, and Enterprise Funds are included in
the budget. Encumbrances lapse at year-end; however, encumbrances remaining against a positive
department budget balance may be re-appropriated as a "prior year carryove/'.
The City's budget is prepared in accordance with generally accepted accounting principles (GAAP), with
the exception that capital outlays are budgeted within those departments. The financial statements
presented in the financial section of this report are presented in accordance with GAAP; that is all capital
outlays have been aggregated in a single line captioned "capitaloutlay."
Healthcare costs - With the healthcare costs continuing to increase, the City of Prattville 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 through council resolution established a goal of achieving a
net ending fund balance in the General Fund that is equal to or greater than LSYo of the total
expenditures and other financing uses.
Other Information
Independent Audit - The government 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. 4-133 (Audits of States, Local Governments, and
Non-Profit Organizations), the City's audit report must be signed by a certified public accountant. The
accounting firm of Jackson Thornton & Co. P.C. was selected through a competitive proposal process.
The audito/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 audito/s reports on the internal control 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 101 West Main Street, Prattville, Alabama.
Acknowledgements - The preparation of the comprehensive annual financial report could not be
accomplished without the dedicated services of all City departments but in particular an efficient
Finance Department staff. We express appreciation to each member of these departments for their
contributions made in the preparation of this report.
vii
Mayor
Willie Lee Wood, Jr.
Nathan Fank, President Pro Tempore
Thomas Miller
Municipal Court
City Attorney
City Prosecutor
City Clerk
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, 2OI2
CITY COI.INCIL
Mike Renegar, President
HEADS OF DEPARTMENTS
Bill Gillespie, Jr.
Denise Brown
Albert Striplin
Ray Boles
Judge Louis C. Colley
David McDowell
Robert E, Riddle
Cathy Dickerson
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-
Enterprise Fund
Urban
Management
City Clerk
Authorities,
Boards &
Commissions
Wastewater-
Enterprise Fund
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 2012
x
FINANCIAL SECTION
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A PROFESSIONAL CORPORATION rvww.jacksonthornton.colrl
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MONTGOMERY, AIABAMA
Dothan
Prattville
Wetumpka
TNDEPENDENT AUDITOR' S 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 business-
type 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 30,2012, 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.
ln our opinion, the financial statements present fairly, in all material respects, the respective financial
position of the governmental activities, the business-type 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, 2012, 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.
In accordance with Governmental Auditing Standards, we have also issued our report dated
March 25, 2013 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 ofour audit.
II
A PROFESSIONAL CORPORATION CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS MEMBER OF AMERICAN INSTTTUTE OF CERTIFIED PUBLIC ACCOUNTANTS
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis and the schedule of funding progress of the Employees'
Retirement System and the Employees' Health Insurance Plan on pages 3 through 14 and pages 63
and 64 be presented to supplement the basic financial statements. Such information, although not a
required part of the basic financial statements, is required by the Governmental Accounting Standard
Board, who considers it be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied certain
limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Prattville, Alabama's basic financial statement. The introductory
section, combining individual nonmajor fund financial statements, the nonmajor fund budgetary
comparison schedules, and statistical tables are presented for the purposes of additional analysis and
are not a required part of the basic financial statements. Such information has not been subjected to
the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do
not express an opinion or provide any assurance on it.
{ttl,tt"M4h, P&
Prattville, Alabama
March 25,2013
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, 2012. 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.
X'inancial Highlights
The City of Prattville, Alabama's assets exceeded its liabilities at
September 30,2012, by $2,166,933 (net assets). Of the net asset balance amount,
($33,787,690) (unrestricted net assets) is the deficit balance of the City representing
the indebtedness incurred for incentive obligations including the purchase of
development property supporting the significant retail development activities within
the City which originated in the fiscal years ended 2006 and 2008.
During the year, the City's total net assets increased by $10,651,643, as revenues of
$42,503,744 exceeded expenses of $31,852,101. The increase in revenue is due to
the increase in sales tax revenue, increase in charges for services, and the acceptance
of 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 government-wide
personnel expenses decreased by approximately 5.\oh 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 $276,383 in the
current year to record unfunded OPEB obligation.
As of the close of the current fiscal year, the
combined ending fund balances of $5,803 ,826.
from the prior year.
City's governmental funds reported
There was an increase of $ 1,548,451
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 (FPRA), 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 adminishative 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, Alabamathat ue 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 business-type activities of the
City of Prattville, Alabama include the Sanitation and Wastewater departments.
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
modified accrual accounting, which provides a conservative short-term spending focus. As a result,
the governmental fund financial statements give the reader a detailed short-term view that helps in
determining 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, expendifures,
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.
Proprietary funds - Services for which the City charges customers a fee are generally reported in
proprietary funds. The City of Prattville, Alabama maintains one type of proprietary fund.
Enterprise funds are used to report the same functions presented as business-type activities in the
entity-wide financial statements, The City of Prattville, Alabama uses enterprise funds to account for
its Sanitation and Wastewater departments. The City has no internal service funds. Proprietary funds
provide the same type of information as the government-wide financial statements, only in more
detail. The proprietary fund financial statements provide separate information for the Sanitation and
the Wastewater departments, which are considered to be major funds of the City of Prattville,
Alabama.
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 28 through 62 of this
report.
Other Information
The combining statements refened to earlier, which present more detailed views of non-major funds
used in governmental activities, can be found beginning on page 65 of this report.
Government-Wide Financial Analysis
The City's condensed statement of net assets as of September 30, 2012 and 201 l, derived from the
government-wide statement of net assets is presented below.
GOVERNMENTAL
ACTIVITIES
BUSINESS.TYPE
ACTIVITIES TOTALS
Current and other assets
Capital assets, net of depreciation
Restricted assets
Total assets
Long-term liabil ities outstanding
Other liabilities
Total liabilities
Net assets:
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total net assets
20t2
$ 8,505,992
45,2Q9,029
221,349
53 ,936,370
54,284,059
2,79?,564
,. 56,987;623
31,400,291
803,180
(35,254,724\
$ (3,0.:!,2s;\
20tL
$ 5,413,067
51,205,094
_ 182,831
56,807,992
60,478,319
4,,8 l4J 83
65,?92,702
33,144,191
653,47 8
(4?2282,?79\-
$ (8.:481,? lA
zQJ?
$ 1,785,058
6,479,196
@
2,886,978
Li9,089
3,0!6,067
3,751,152
l,y7 ,0,,3,L
$ 5,2 t 8,t qp
35,151,443
803, I 80
(33,7 87 ,690\
$ 2,166,933
201 I
$ 5,413,067
51,205,094
, 189,831
56,847,992 _
60,478,319
4,814,383
65,292,702
33,144,191
653,478
(4.2,282,3791
_$l!,484J19I
201 I 20t2
$ 10,291,050
5 1,688,225
-ffi 57,171,037
_ 2,962.653
j0,033,690_
The largest component of the City's net assets as of September 30, 2012 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 future spending. Although the City's
investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other resources, since the capital assets themselves
cannot be used to liquidate these liabilities. The City's capital assets, net of accumulated
depreciation, at September 30, 2012 increased by $483,131 from the prior year primarily due to the
amount of donated infrastructure and current year additions in excess of current year depreciation
expense of $2,419,219.
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 assets
exceeded liabilities by $2,166,933. The increase in net assets over the prior year is attributed
primarily to the acceptance of donated infrastructure of $2,266,800, the reduction in debt of
$3,307,282, the increase in sales tax revenues of $3,023,847, and reduction of current liabilities of
$1,951,730.
A portion of net assets is restricted, or has restrictions on how they may be used. Governmental
activities restricted net assets totaled $803,180 at September 30,2012 and are restricted for use in
public safety, capital projects, road 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, 2012, reported a deficit balance in unrestricted net assets in governmental type
activities of ($35,254,724). The large negative unrestricted net assets is the result of $41,010,000 in
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. Business-type activities reported unreshicted
net assets of $ 1,467,034 at September 30,2012.
The following presents the City's condensed statement of activities for the fiscal years ended
September 30,2012 and 201I 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 primary government increased by
$10,651,643. This increase includes the acceptance of donated infrastructure of $2,266,800 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 the
associated personnel costs; and a reduction in operating expenses.
CITY OF PRATTVILLE, ALABAMA
STATEMENT OF ACTIVITIES
GOVERNMENTAL
ACTIVITIES
BUSINESS-TYPE
ACTIVITIES TOTALS
Revenues:
Program revenues:
Charges for services
Operating grants, capital grants,
and contributions
Total program revenues
General revenues:
Sales tax
Property tax
Motor fuel taxes
Intergovernmental revenues
Investment earnings
and miscellaneous
Total general revenues
Total revenues
Expenses:
General government
Public safety
Public works
Culture and recreation
Debt service
Sanitation
Wastewater
Total expenses
Increase in net assets
before transfers
Transfers
Increase (decrease) in net assets
Net assets - beginning
Net assets - ending
?6,07 4p7?
6,868,707
12,918,70 |
3,5 | 8,01 5
1,766,958
2,195,048
_ 49853,?82 6,!28,765
6,994,319
13,369,083
7 ,235,404
2,080,642
2,460,545
27,267,429 32,129,992
2,069,31 8
.2,515,354 ,,
4,584,672
1,844,0938,807,550 8,723,990
(2,374,093) _ 3,3,7,4,093 _
5,433,457 8,723,990 5,218,186
zou 20r r
$ 7,369,546 $ 12,182,897
2,770,564 6,040,953
19,140,1 06 I 8,223,859
22,456,057 19,432,210
2,688,777 2,545,750
239,616
286,883 153,240
503,156 259?316
25,934,873 22,630,132
(8,484,710) (17;98,700)
_q- (3,9?t ,rs3) $
=
(8,184,n o)
20t2 201 I 20.t2. zQtl
$ 13,636,565 $ 12,182,897
_ 2,930,!94 6,04.0,953 ,t6,567,449 l8/,23J50
22,456,057 19,432,210
2,688,777 2,545,750
239,616
286,883 153,240
:gf,srg ., 2s,e,3r6
25,?36,295 22,639,132
42,5A3,744 40,853,982
6,868,707
12,918,701' 3,518,015
1,766,958
2,1q5,048
2,069,31 8
2,515,354
6,994,31 8
13,369,083
7 ,235,404
2,A8A,642
2,460,545
3I,Si2,lol _3?,129,99,2
10,651,643 8,723,990
10,65 | ,643 8,723,990
- (8,484,710) (17,208,700)
q ,,166gE, ,$ (8,484,11o)
$ 6,267,019
_ !60,324
6,427,343
I L)), t . --rc
--
-
-
$ 5,21 8,186
8
Expenses and Program Revenues for Governmental Activities
Governmental activities increased the City of Prattville, Alabama’s net assets by $5,433,457 for fiscal
year 2012. 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:
Revenues from charges for services decreased by $4,813,351 due to sanitation and
wastewater fees being recognized as revenues from business-type activities in the initial
year of proprietary fund reporting.
Sales tax revenue increased $3,023,847 which is the result of the full year impact of the
increase in the sales tax rate of 1 cent.
Donated infrastructure of $2,266,800 is included in total program revenues which
decreased from donated infrastructure in the prior year by $3,441,870.
Personnel expenditures decreased over the prior year by approximately 6.81% which
decreased all functional expense categories.
Public works expenses decreased by $3,717,389 due to the expenses totaling $4,584,672
of the Sanitation and Wastewater Enterprise funds of which are recognized as expenses
from business-type activities in the initial year of proprietary fund reporting.
Public safety expenses decreased over the prior year by $450,382, primarily due to the
decrease in personnel expenses and a decrease in operating expenses.
Culture and recreation expenses decreased $313,684 due to the beginning of a critical
review of programs offered to make sure they were financially sound and the decrease in
personnel expenditures.
-
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
2012 Expenses
2012 Revenues
2011 Expenses
2011 Revenues
9
Program and General Revenues for Governmental Activities
20%
62%
8%
8%
1%
1%
0%
Revenues By Source - Governmental Activities - FYE 2012
Charges for services
Sales tax
Property taxes
Grants and contributions
Intergovernmental revenues
Miscellaneous
Investment earnings
30%
48%
6%
15%
1%0%0%0%
Revenues By Source - Governmental Activities - FYE 2011
Charges for services
Sales tax
Property taxes
Operating grants & contributions
Motor fuel taxes
Intergovernmental revenues
Miscellaneous
Investment earnings
10
Expenses and Program Revenues for Business-Type Activities
Business-type activities increased the City of Prattville, Alabama’s net assets by $5,218,186. Key
elements of this change in net assets are as follows:
• At the beginning of the 2012 fiscal year, the Sanitation and Wastewater Enterprise funds were
created to help ensure longevity of those city functions which are paid for directly by the
users of those functions. In creating these funds, the city transferred governmental net assets
of $3,464,481 into these proprietary funds. These transfers included cash in dedicated
accounts as well as property and equipment and the underlying debt obligations.
• Personnel expenditures from these proprietary fund operations increased over the prior year
by approximately $22,345 or .93%.
• Sanitation receipts totaling $2,392,771 were fractionally less than the prior year revenues by
approximately $25,733 or 1%.
• Sewer charges included in the Wastewater enterprise fund increased by $670,315.
-
500,000.00
1,000,000.00
1,500,000.00
2,000,000.00
2,500,000.00
3,000,000.00
3,500,000.00
4,000,000.00
4,500,000.00
Sanitation Wastewater
Expenses and Program Revenue - Business-Type Activity
2012 Expenses
2012 Revenues
Financial Analysis of the City's Funds
As noted earlier, the Cify 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, 2012, governmental funds reported a combined ending fund balance of
$5,803,826, an increase of $4,255,375 in comparison with the prior year balance. Of this balance
$98,908 is not available for new spending because it is a prepaid item; $803,180 is restricted for
pubfic safety, road projects, and capital improvements; $2,567,?60 is committed to debt service;
$1,137,556 is assigned to the City's self-insurance fund; and$r97,754 is assigned for other purposes.
The fund balance ofthe general fund increased $4,137,516 during the current fiscal year after other
financing sources including fund transfers. Total revenue decreased $1,545,046 as compared to the
prior year primarily due to the change in the reporting format from the prior year. Fees and charges
for services of $5,399,875, which were included in general fund revenues in the prior year are
included in the proprietary funds in the current year. Sales tax revenue increased by $3,023,847;
however $3,838,096 of the increase was the result of the full year's impact of the I cent sales tax
increase. This sales tax increase contributed to the City's ability to reduce short-term obligations.
Total expenditures decreased $8,739,398 as compared to the prior year. A significant amount of this
decrease is due to the change in reporting format of the Sanitation and Wastewater Enterprise funds
which resulted in the reduction of general fund expenses by $4,762,555. There was a decrease of
$4,919,421in debt service expenditures due partially to reduced utilization of bridge loans during the
fiscal year. There was a decrease of 51,114,202 in personnel costs due to the continuation of a hiring
freeze established by the city council.
The fund balance of the capital projects fund decreased $108,093 during the current fiscal year after
other financing sources including fund transfers. Total revenue decreased $209,249 as compared to
the prior year. The primary revenue source of the capital projects fund is grant reimbursement. The
decrease in this account is due to a reduction in number of grant projects during the year. Total
expenditures decreased $362,903 as compared to the prior year, which is also due to the reduction in
the number of grant projects during the year.
Proprietar.v funds - The City of Prattville, Alabama's proprietary funds, which are initiated in the
current fiscal year, provide the same type of information found in the government-wide financial
statements, but in more detail. Unrestricted net assets of the proprietary funds at the end of the year
amounted to $1,467,034. The Sanitation fund had an overall operating income of $235,304 and
Wastewater fund had an overall operating income of $ I ,529,2 I 8.
The amount reported as charges for goods and services in the Wastewater Enterprise fund increased
$892,876. Of the total increase, $670,315 is due to an increase in the sewer charges and $222,581 is
due to an increase in sewer impact fees paid.
il
Capital Assets and Long-term Debt Administration
Capital assets - The City of Prattville, Alabama's investment in capitalassets for its governmental and
business-type activities as of September 30, 2012was $51,688,225 (net of accumulated depreciation).
This investment in capital assets includes land, infrastructure, buildings, improvements, construction
in progress, vehicles, and machinery and equipment.
Major capital asset additions during the year include:
Investment in infrastructure of $2,266,800 resulting from donated infrastructure from
residential developments.
Purchase of vehicles of $305.350.
Increase in construction in progress of $184,169.
CITY OF PRATTVILLE, ALABAMA
CAPITAL ASSETS
GOVERNMENTAL
ACTIVITIES
BUSINESS-TYPE
ACTIVITIES TOTAL
Land
Construction in progress
Buildings and building improvements
Land improvements
Vehicles
Office, nonoffice, and computer equipment
Infrastructure
Total
2,322,406
47 6,406
5, 109,00 I
6,361,342
4,417,469
4,248,543
40,134,960
33 8,654
203,719
5,649,768
3,221 ,430
1,556,713
1,478,645
$ 2,661,060
680,125
10,75 8,769
9,582,772
5,97 4,182
5,727 ,l 88
40,13!,99L
63,070,127 12,448,929 $ 7 5,519,056
Additional information on the City's capital assets can be found in Note 5 on page 37 of this report.
Long-term debt - As of September 30,2012, the governmental activities had total debt outstanding of
$54,284,060 and the business-type activities had a total debt outstanding of $2,886,978.
Outstanding debt:
Warrants and other notes payable
Capital lease payable
Post-retirement benefits other than pensions
Compensated absences
Total 57 ,l7l ,03 8
The City of Prattville, Alabama's total debt outstanding decreased by $4,307,281 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.
53,983,93 0
326,636
1,629,565
1,230,907
t2
Budgetary Highlights for the fiscal year ending September 30,2012
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, 2012, actual operating revenues for the general fund were more than the
budgeted amount by $ 1,159,945, or 3.6%. The primary reasons for the variance are as follows:
Licenses and permits were more than budgeted revenue by $479,240, which consists of
an increase in business license revenue of $279,951 over what was budgeted as well as
an increase in franchise fees revenue of 99,843 over what was budgeted.
Miscellaneous revenues were more than budgeted revenue by $605,962, which consists
of an increase in grant income of $321,327 over what was budgeted as well as an
amount for overhead reimbursement of $179,305 which was not budgeted.
As of September 30,2012, actual expenditures were less than budgeted expenditures by $2,547,504,
or 9.27o/o. The primary reasons for the variance are as follows:
Debt service actual expenditures were less than budgeted expenditures by $1,002,097.
General government actual expenditures were more than budgeted by $248,814 due
primarily to the cost of the Carehere clinic being assigned to the Human Resources
department since the costs are not broken down by department like all other healthcare
costs.
Public safety actual expenditures were less than budgeted expenditures by $912,083
due to reduced personnel as well as budgeted purchases that were not required during
the year.
Public works actual expenditures were less than budgeted expenditures by $644,768.
This is due to budgeted projects that were not completed during the year as well as
budgeted purchases that were not made during the year.
Cultural and recreational actual expenditures were less than budgeted expenditures by
$238,459 due primarily to reduced personnel costs.
l3
Economic Factors and Year 2013 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 62% of general fund revenues in fiscal year 2012. In the current
economic climate, the City has instituted a temporary increase to the City'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 currently 5.8%, which is a decrease over the prior year, The unemployment
rate compares favorably to the state's current unemployment rate of 7.l% and is
favorable to the national average rute of 7 .7o/0.
The level of tar<es, fees, and charges for services have a direct bearing on the City's
ability to (a) annex additional land into its corporate limits and (b) encourage
development (office, retail, residential, and industrial) to choose to be located in the
jurisdiction. The City places emphasis on encouraging both annexation and economic
development.
Requests for Information
This financial report is designed to provide our citizens, taxpayers, customers and investors, and
creditors with a general overview 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, 101 West Main Sheet,
Prattville. Alabama 36067 .
l4
BASIC FINANCIAL STATEMENTS
THIS PAGE INTENTIONALLY LEFT BLANK
ASSETS:
Cash and cash equivalents
Internal balances
Taxes receivable
Accounts receivable, net
Prepaid items
Defened debt expense
CITY OF PRATTVILLE. ALABAMA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2OI2
PRIMARY GOVERNMENT COMPONENT LTNITS
AUTAUGA.HISTORICAL
GOVERNMENTAL BUSINESS.TYPE
PRATTVILLE PRATTVILLE PRATTVILLE
PUBLIC AIRPORT REDEVELOPMENT
ACTIVITIES ACTIVITIES TOTAL LIBRARY AUTHORITY AUTHORITY
$ 4,739,510 $ 1,345,160 $ 6,084,670 $ 270,971 $ 343,191 $ 72,477
90,309 (90,309)
1,985,160 1,985,160
663,629 442,951 1,106,580
98,908 lg,7g7 117,705
928,476 69,459 996,935
19,069 8,183
Capital assets, not depreciated 2,798,812 542,373 3,341,1E5 2,627,466 183,500
Capitrl assets, net ofaccmulated depreciation 42,410,217 5,936,823 48347,U0 105,559 6,173.63E 242,142
Restricted assets:
Cash and cash equivalents
Total assets
LIABILITIES:
Accounts payable
Accrued liabilities
Accrued interest
Deferred revenues
Other liabilities
Long-term liabilities:
Portion due or payable in one year:
General obligation warrants payable
capital leases, and other
long-term debt
Compensated absences
Portion due or payable after one year:
General obligation warrants payable,
capital leases, and other
long-term debt
Compensated absences
Post-employment benefi ts
Total liabilities
22t,349 J221,3,49 ?8,845
,53,936,370 8]64,254 . 62,200,,624 376,t30.. .9,192,209 596,302
794,209 l5g,0g9 953,298 3,Q24 42,800
5,030
2,960,122 422,037 3,382,159
264,495 53,549 3 18,033
48,622,369 2,306,037 50,928,406
807,518 105,356 912,874
459,887 24,402
800,099
34, I l8
649,369
154,604
481,959
l0
152,877
13,730
33,746 33,510
459,887
800,099
649,369
154,604
481,959
l0
152,877
13,730
563,441 | 61,021
, _ 1,629,565 -1,629,59556,987,623 3 ,046,A67 60,033,690 61,'!4 645,017 194,537
NET ASSETS:
Investedincapitalassets,ncrofrelateddcbr 31,400,291 3,751,152 35,151,443 105,559 8,203,917 23t,105
Restricted for:
Law enforcement
Road projects
Debt service
Capital projects
Cultural and recreational
Unrestricted (deficit)(35,254,72+\ t,467,034, (13?78J,69i) _ 209,4?7_ 343,275 _- -80,660
Totslnerssers $ (3.051.253) $ 5.2lE.lE6 $2.166.933 $ 314.986 $ 8,547,192 $ 311,765
The accompanying notes ile an integral part of these financial statements.
CITY OF PRATTVILLE. ALABAMA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30. 2OI2
NET (EXPENSE) REVENUE AND CHANGES IN NET ASSETS
PROGRAM REVENUE PzuMARY GOVERNMENT COMPONENT UNITS
ALTTAUGA.HISTORICAL
FINES, FEES, OPERATING CAPITAL BUSTNESS -PRATTVILLE PRATTVILLE PRATTVILLE
PUBLIC AIRPORT REDEVELOPMENTAND CHARGES GRANTS AND GRANTS AND GOVERNMENTAL TYPE
EXPENSES FORSERVICES CONTRIBIJTIONS CONTRIBUTIONS ACTIVTTIES ACTIVMES TOTAL LIBRARY AUTHORITY AUTHORITY
$ 6,868,707 $ 5,351,940 $ (t,516,767)
ACTIVITIES:
Pnmary government:
Governmental activities :
General govemment
Public safety
Public works
Cultural and recreational
lnterest on long-term debt
12,918,701 | ,517 ,963 $ | l2,Ol2 $ 73,507 (l l,2l5,219\
$ (t,516,767)
(l1,215,219)
(668,230)
(1,532,059)
22,456,O57
2,688,777
26,685
286,883
3,518,015 264,7M
1,766,958 234,899
General revenue;
Sales taxes
Real and personal property taces
lnvestment earnings
Intergovemmental revenues
Miscellaneous revenue
Transfers
2585,M1 (668,230)
(1,532,059)
22,456,O57
2,688,777
26,685
286,883
2,1e5,048 _ (2,195,048) (2,195,048)
Total govmmotat activitie 27,267,429 7,369,546 ll2,Ol2 2,658,548 (17,127,323) (17 ,127,323)
Bsin€s$type ativiti6:
Saitation 2,069,318 2,392,771 $ 323,453 323,453
Wastewb 2,515,354 3,874,248 160J24 1,519,218 1,519,218
Toralbusines*typcrctivities 4,58/,672 6267,019 160,324 1,842,671 1,842,671
Total primary govmmot $ 31,852,101 $ 13;636,565 $ 114012 $ 2,818,872 (l'1,127,323) 1,U2,671 (15,2U,652)
Component uits:
Autauga-Prattville Public Libray S 558,010 $ 27,235 S 87,223
Prattville Airport Authoriry 450,140 122,500 $ l 17.65r
Histoncal Pratwille Redevelopment Authority 30,320 68,733
Totalcomponent units $ 1,038,470 $ 218,468 $ 87,223 $ 117,65l
$ (443,552)
$ (209,989)
(443,552) (209,989) 38,413
885 612 l5l
476,471 1,422 477,893 410,000 5.000
(3,374,093) 3,374,093
Totalgoaalrwmuaadtrasfc 22,5@,7AO 3,375,515 25,936,295 410,885 612 5,151
CHANGE IN NET ASSETS 5,433,457 5,218,186 10,651,643 (32,667) (209,377) 43,5&
CITY OF PRATTVILLE. ALABAMA
BALANCE SHEET
GOVERNMENTAL FLINDS
SEPTEMBER 30. 2OI2
CAPITAL DEBT OTHER TOTAL
PROJECTS SERVICE GOVERNMENTAL GOVERNMENTAL
GENERAL FLINDS FTINDS FLTNDS FUNDS
481,959 $
ASSETS:
Cash and cash equivalents
Receivables:
Taxes receivable
Accounts receivable, net
Due from other funds
Prepaid items
Restricted assets:
Cash and cash equivalents
Total assets
LIABILITIES 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
Debt service
Committed to:
Debt service
Assigned to:
Self-insurance fund
Other purposes
Unassigned
Total fund balances
Total liabilities and fund balances
$ 4, I 63,986 $ 93,565
1,985,160
640,677 22,952
90,309
gg,g0g
221,339 $l0
4,739,510
1,985,160
663,629
90,309
98,908
221,349
$7 ,200,379 $ I 16,5 17 $ l0
@
$ 794,209
459,887
740,9,!3
1,995,039
98,908
154,604
36,360 $ 116,517
13,730
2,567,260
1,137 ,556
97 ,7 54
1,099,168
5,205,340_ I16,517- l0
_s w 3D_JJJ-6, s L1_ l_1!_
481,959 $7,798,865
794,209
459,887
7 40,943
1,995,039
l0
481,959
98,908
154,604
481,959
152,877
13,730
l0
2,567,260
1,137 ,556
97 ,7 54
1,099,168
481,959 5.803.826
481,959 $7,798,865
The accompanying notes are an integralpartof these financial statements.
t7
CITY OF PMTTVILLE. ALABAMA
RECONCILIATION OF BALANCE SHEET OF
GOVERNMENTAL FIJNDS TO STATEMENT OF NET ASSETS
SEPTEMBER 30.2OI2
Differences in amounts reported for govemmental activities in the statement ofnet assets on page 15.
Total fund balances' govemmental funds
Capital assets used in govemmental activities are not financial resowces and,
therefore, are not reported in the govemmental funds. Those assets consist of:
Land
Construction in progress
Land improvements, net of $4,259,669 accumulated depreciation
Buildings and building improvements, net of $1,028,755 accumulated
depreciation
Office, nonoftice, and computer equipment, net of $3,085,753 accumulated
depreciation
Vehicles, net of $3,349,323 accumulated depreciation
Infrastructure, net of $6,137,598 accumulated depreciation
Total capital assets
Deferred 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 receivables are not available to pay for current period expenditures and, therefore,
are defened in the govemmental funds.
Long-term liabilities, including general obligation warrants payable and capital leases, are not due and
payable in the cunent period and, therefore, are not reported in the governmental funds.
Balances at September 30, 2012 were:
Accrued interest on bonds
General obligation warrants and other notes payable
Unamortized net premium
Capitalized lease obligations
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.
$ 2,322,406
476,406
2,101,673
4,080,246
1,162,790
I ,068,146
31,997,362
800,099
5 l,l 55,3 l4
338,615
88,562
1,072,003
| ,629,565
$ 5,803,826
45,209,029
928,476
91,574
. (55,084,158)
$ (3,051,253)
l8
CITY OF PRATTVILLE, ALABAMA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FLTND BALANCES
GOVERNMENTAL FTJNDS
FOR THE YEAR ENDED SEPTEMBER 30. 2OI2
GENERAL
CAPITAL
PROJECT
FUNDS
DEBT OTHER TOTAL
SERVICE GOVERNMENTAL GOVERNMENTAL
FUNDS FUNDS FUNDS
REVENUES:
Sales taxes
Real and personal property taxes
Licenses and permits
Intergovernmental revenues
Charges and fees for services
Fines and forfeitures
lnterest
Miscellaneous revenues
Total revenues
EXPENDITURES:
Current:
General governmental
Public works
Public safety
Cultural and recreational
Capital outlay
Debt service:
Principal payments
lnterest and fiscal charges
Total expenditures
Excess of revenue over (under) expendifures
OTHER FTNANCTNG SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE . BEGINNING
FUND BALANCE - ENDING
$ 22,456,057
2,699,777
5,351,940
1,223,888
532,321
26,677
.1,0!6J51 $ 51,21I
33,296,411 5l,2ll
$ 548,280
$ 22,456,057
2,688,777
5,351,940
548,280
1,223,888
532,321
26,685
l |067,96?
33,895,910
5,7 57 ,564
3,3 I 5,1 54
12,346,346
1,434,309
326,566
1,630,296
17,053
53,334
5,757,564
3,332,247
12,346,346
1,434,309
379,900
4,470,296
_ 2,230,996
29,551 ,618
4,344,292
4,610,138
1,548,451
2,440,000
, 96,305 2,134,6?J-
24,906,540 70,387 4,574,691
8,389,871 (19,t76) __ ({,574,99;) . . 548,280_
35,450
(4,287,805) (88,9_17)
,(4,252,355\ (88,917)_
4,137,516 (108,093)
$ 5,205,340 $ 116,517 $ l0
-
4,574,688
4,574,655##
5 225,947 4,255,375
224,610 5 256,012
$ 481,959 $ 5,803,826
The accompanying notes are an integral part of these financial statements.
CITY OF PRAT'TVILLE. ALABAMA
RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FLTND BALANCES OF GOVERNMENTAL FLTNDS
TO STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30. 2OI2
Differences in amounts reported for governmental activities in the statement ofactivities on page 16.
Net change in fund balance - total govsmmental funds $ 4,255,37 5
Capital outlay, reported as expmdihres in govemmental funds, is shown as capital assets
in the statement ofnet assets. 389,541
Donations of capital assets increase net assets in the statement of net assets but do not
appear in the govemmental funds because they are not financial resources. 2,266,800
Depreciation expense on govemmurtal capital assets included in the govemmental activities
in the statement of activities. 0,925'789)
The net effect of transactions involving the sale of capital assets is to deorease net assets
in the statement of net assets.
Transfer of capital assets to the proprietary funds
Revenues are reported in the funds when there is an established claim to the resources and the
rosources are available to finance cunent expenditures. Revenues are reported in the
statement of activities when there is an established claim with no availabiliW criterion.
Repayment of long-term debt is reported as an sxpenditure in governmental funds,
but a reduction of long-term liabilities in the statement of net assets:
C apitalized lease obl igati on s
Transfer of capitalized lease obligations to the proprietary funds
General obligation warrants payable
Transfer of general obligation warrants payable to proprietary funds
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
Transfer of compensated absences liabilities to the proprietary funds
Post-employment benefit plans other than pensions
Governmental funds report the effect of issuance costs, premiums and
discounts, and similar items when debt is first issued, whereas these
amounts are deferred and amortized in the statement of activities:
Amortization
Change in net assets of governmental activities
The accompanying notes are an integral part of these financial statements,
(8,338)
(6,718,278)
237,596
422,219
2,808,181
2,7 55,000
1,000,000
35,948
48,886
150,522
. . (276;83)
(99,397)-
(6,726,616)
91,57 4
7,222,996
(4t,027)
(99,397,)
q 51431'45?
20
CITY OF PRATTVILLE, ALABAMA
STATEMENT OF NET ASSETS
PROPRIETARY FLTNDS
SEPTEMBER 3O,2OI2
BUSINE S S.TYPE ACTIVITTES
SANITATION WASTEWATER TOTAL
ASSETS:
Current assets:
Cash and cash equivalents
Accounts receivables, net
Due from other funds
Prepaid items
Total current assets
Noncurrent assets:
Deferred debt expense
Capital assets, not being depreciated
Capital assets,
net of accumulated depreciation
Total noncurrent assets
Total assets
LIABILITIES:
Current liabilities:
Accounts payable and accrued liabilities
Due to other funds
Current portion of long-term debt
Compensated absences
Total current liabilities
Noncurrent liabilities :
Long-terrn debt
Compensated absences
Total noncurrent liabilities
Total liabilities
NET ASSETS:
Investment in capital assets, net of related debt
Unrestricted
225,885
17 4,184
10,3 l5
l,l19,275
268,767
4,761
9,492
1,345,160
442,951
4,761
18,797
410,3 84 1,401,285 l,8l 1,669
338,654
400,025
68,459
203,719
5,536,798
68,459
542,373
5,936,823
738,679 5,808,976 6,547,655
1,149,063 7,210,261 8,359,324
73,641
95,070
65,121
22,981
85,448
356,916
34,567
159,089
95,070
422,037
5 3,548
256,813 472,931 729,7 44
39,633
22,257
2,266,404
83,099
2,306,037
I 05,356
6l,890 2,349,503 2,411,393
3 18,703 2,822,434 3,141,137
633,924
196,436
3,1 l7 ,228
1,270,598
3,7 51,152
1,467 ,034
Total net assets 830,360
The accompanying notes are an integral part of these financial statements.
2l
4,387,826 5,218,I 86
CITY OF PRATTVILLE, ALABAMA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS
PROPRIETARY FL|NDS
FOR THE YEAR ENDED SEPTEMBER 3O,2OI2
BUSINES S.TYPE ACTIVITIES
SANITATION WASTEWATER TOTAL
OPERATNG REVENUES:
Charges for goods and services
Capital grants and contributions
Total operating revenues
OPERATING EXPENSES:
Cost of sales and services
Salaries and benefits
Repairs and maintenance
urilities
Insurance
Other
Depreciation
Total operating expenses
OPERATING INCOME
NONOPERATING REVENUES (EXPENSES) :
Interest income
Interest expense
Total nonoperating expenses
Net income before transfers
and capital contributions
CAPITAL CONTRIBUTIONS
TRANSFERS IN
CHANGE IN NET ASSETS
TOTAL NET ASSETS - BEGINNING
TOTAL NET ASSETS - ENDING
2,392,77 |3,874,248
160,324
6,267,019
160,324
2,392,77 |4,034,572 6,427,343
677,083
I ,161,600
153 ,202
3,639
49,7 56
ll2,l 87
294,612
1,300,933
69,995
386,215
37,547
34,809
381,243
971,695
2,462,533
223,197
3 89,854
87,303
34,809
493,430
2,157,467 2,545 354 4,662,821
235,304 1,529,218 1,764,522
183
(s,01z)
(4,834)
1,239
(96,139)
-- (91,e00)
1,422
- _ (lql,l 56)
(99,734)
230,470
599,890
1,434,318
2,864,591
88,917
1,664,788
3,464,481
88,917
930,360
830,360
The accompanying notes are an integral part of these financial statements.
4,387,826 5,218,I 86
22
4,387,826 5,218,I 86
CITY OF PRATTVILLE. ALABAMA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 3O,2OI2
CASH FLOWS FROM (USED FOR) OPERATING ACTIVITIES:
Receipts from customers
Payments to suppliers
Payments to employees
Net cash from operating activities
CASH FLOWS FROM (USED FOR) NONCAPITAL FTNANCING ACTIVITIES:
Transfers from other funds
Net cash payments from (to) other funds
Net cash from noncapital financing activities
CASH FLOWS USED FOR CAPITAL AND RELATED FTNANCING
ACTIVITIES:
Acquisition and construction of capital assets
Principal paid on long-term debt
Interest paid on long-term debt
Net cash used for capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received
Net cash from investing activities
NET INCREASE IN CASH AND CASH EQUTVALENTS
CASH AND CASH EQUIVALENTS, BEGTNNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
RECONCILTATTON OF OPERATING TNCOME (LOSS) TO NET
CASH FROM (USED FOR) OPERATING ACTIVITIES:
Operating income
Adjustments to reconcile operating income to net cash provided by operations:
Depreciation expense
(Increase) decrease in assets,
Accounts receivable
Prepaid expenses
Increase in liabilities:
Accounts payable and accrued liabilities
Net cash from operating activities
SUPPLEMENTAL CASH FLOWS INFORMATION
Noncash investing, capital and financing activities:
Transfer of capital assets to the proprietary funds
Transfer of capital lease obligations to the proprietary funds
Transfer of debt to the proprietary funds
Transfer of defened issuance cost to the proprietary funds
Transfer of compensated absences to the proprietary funds
Total capital contributions
The accompanying notes are an integral part of these financial statements.
BUS INES S.TYPE ACTTVITIES
SANITATION WASTEWATER TOTAL
$ 2,366,215 $ 4,005,542 $ 6,371,757(971,687) (976,358) (1,948,045)
_ (1,153,659I _(1,294,408) (2,448,067\
249?8p? _ 1,734,776 ,1,975,64.5
_ 95"07q
95,070
88,917 88,91 7
. .(4,20t1 9-0,309
84,1 56 179,226
(105,220)
(5?017)
- (l J0,237\.
(254,347)
(350,410)
_-(76,139).__ (700,896)
- , ,1,239
1,239
(254,347)
(455,630)
, (101,156\
(8 1 1,1 33\
1,42,2 .
L422
183
r83
225,885 1,119,275 1,345,160
w
$ 235,304
l12,l87
(26,556)
1,620
_ (81,68,6)
q,, ll9,t6e-
$ 850,866
QAg,974)
_ (41 ,002)
$_ = s99,83p
$ = L,rr?,22:,
$ 1,529,218
381,243
(29,030)
3,453
- - .( l sOr 108)
$ JU4g6_
$ 5,867,412
(2t2,245)
(2,755,000)
73,944
- (109,520)
$ 2,864,591
_$-1,34U69-
1,764,522
493,434
(55,586)
5,073
(231,794\
lw-
$ 6,718,278
(422,2t9)
(2,755,000)
73,944
(ts9,szu
$ 3,464,481
-
23
CITY OF PRATTVILLE, ALABAMA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30.2OIZ
BUDGETED AMOUNTS
ACTUAL AMOUNTS VARIANCE WITH
BUDGETARY FINAL BUDGET -
BASIS POSTTTVE (NEGATTVE)ORIGINAL FINAL
REVENUES:
Taxes,
Ad valorem taxes
Sales taxes
Salestaxes- I cent
Local gasoline tax
Cigarette tax
Whiskey tax
Beer tax
Wine tax
ABC sales tax
Excise tax
Lodging tax
Rental tax
Total taxes
Licenses and permits:
Business licenses
Yard sale permits
Franchise fees
Building permits and
inspection fees
Zoning and plat fees
Total licenses and permits
Charges and fees for services:
Ambulance fees
Sewer charges
Sewer impact fees
Street cut/repairs
Recreation rentals
Total charges and fees for services
$ 2,535,000
14,125,907
5,740,193
885,000
160,000
50,000
220,004
15,000
44,000
16,000
1,090,000
351,000 _
25,?3.2,1,0,0
4,222,500
4,400
420,000
200,800
25,000
4.872.700
950,000
I,184,500 I ,184,500
$ 2,535,000
14,125,907
5,740,193
995,000
160,000
50,000
220,000
15,000
44,000
16,000
1,090,000
351,000
25,232,100
4,222,500
4,400
420,000
200,900
- 25,000
4,872,709 -.
950,000
800
233,700
2,688,777
14,036,668
5,657,157
ggg,009
155,396
52,936
228,415
14,182
42,597
18,749
| ,025,328
326,620
153,777
(89,239)
(83,036)
13,009
(4,604)
2,936
8,41 5
(818)
(l,403)
2,7 49
(64,672)
(24,380)
25,144,834 (87,266)
4,502,451
4,300
519,843
250,366
279,951
(l0o)
gg,g43
49,566
49,9807 4.980
5.3s 1 .940 479,240
800
985,642
2,331
88s
l3l
35,642
2,331
88s
(66e)
1,199233.700 234 899
223 888 39,388
(Continued)
The accompanying notes are an integral part of these financial statements.
CITY OF PRATTVILLE. ALABAMA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30" 2AI2
BUDGETED AMOUNTS
ACTUAL AMOUNTS
BUDGETARY
BASISORIGINALFINAL
VARIANCE WITH
FINAL BUDGET -
POSITIVE (NEGATIYEL
REVENUES: (continued)
Fines and forfeitures:
Court fines
Correction fund
Drug proceeds
Court costs
Total fines and forfeitures
Miscellaneous revenues :
Donations
County commission - RTJ
County commission - Ambulance
Interest income
Accident reports
Miscellaneous income
Parades
Performing and creative arts
Penalties
Sale of surplus equipment
Stanley stadium
Swimming pool concessions
Lambert property tower
Grant income
lnsurance proceeds
Bullet proof vest grant
Law enforcement BG funds
Overhead reimbursement
Total miscellaneous revenues
Total revenues $ 31,?69,595 $ 32,t36,166
$ 27 4,500
60,000
16,500
. 58,700
409,700
27 4,500
60,000
16,500
58,700
409,700
377,001
81,895
24,202
49,223
102,501
21,895
7,702
(9,477)
532,321 122,621
75,000
30,600
8,400
39,349
5,000
28,87 6
30,000
6,000
2,800
1,500
18,060
15,000
10,000
274,595
75,000
137,361
30,600
9,400
39,349
5,000
28,87 6
30,000
6,000
2,800
1,500
18,060
15,000
39,524
83,052
100,000
45,787
26,677
10,997
78,390
6,210
14,146
15,900
15,324
7,472
I 8,21 I
336,327
72,859
7,529
25,643
179,305
8,052
100,000
(91 ,574)
(3,923)
2,597
39,041
1,210
Q4,734)
(l 4, I o0)
9,324
(2,800)
5,572
l5l
321,327
33,339
7 ,528
25,643
179,305
437,466 043.428 605,962
33,296,411 1,159,945
(Continued)
The accompanying notes are an integral part of these financial statements.
CITY OF PRATTVILLE. ALABAMA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 3O,2OI2
BUDGETED AMOUNTS
ORIGINAL FINAL
ACTUAL AMOUNTS VARIANCE WITH
BUDGETARY FINAL BUDGET -
BASIS POSITIVE (NEGATIVE)
EXPENDITURES:
General government:
Executive
Legislative
Judicial
Administrative finance
Administrative city clerk
Human resources
lnformati on technology
Vehicle maintenance
Sales tax incentives
City/County services
Community initiatives
Total general government
Public works:
Street
Planning and development
Urban management
Engineering
Total public works
Public safefy:
Police
Fire
Total public safety
Cultural and recreation:
Leisure services
Performing and creative art
Total cultural and recreation
Debt service:
Principal
Interest
Total debt service
$ 266,702
219,947
438,857
555,779
243,667
346,332
949,364
436,97 6
955,000
330,000
503. I 65
5,244,79,9
263,7 50
1,546,670
1,216,892
_ g l g.,l39
3,946,451
$ 267 ,7A2
219,947
438,857
561,779
247,l17
349,7 82
948,364
436,97 6
955,000
330,000
503,16.5
_ 5,258,68_9
263,7 50
1,546,670
1,267,126
g19,l3g
213,745
1 64,1 36
466,218
532,661
238,204
586,458
971,081
500,688
967,795
343,333
523,184
53,957
55,8l I
(27,361)
29,1 1 8
g,gl3
(236,676)
(22,7l7)
(63,712)
(12,795)
(13,333)
(20,019)
5,507,503 (248,814)
125,673
1,310,375
1,041,831
138,477
236,295
225,295
45,1 0 1874.03 8
3,996,6!5 - 3,3.51,917
5,901,2166,659,07 | 6,659,071
6,665,836 9,876,,242 ,
, 13,324,907_ 11,53:,313 .
1,520,318 I ,520,318
-t 2?,!y_ | 22,450
. , 1,67_2,,768 1,67?,7q1 .
2,624,956 2,624,956
la3 ?7 42 _ 103,7 42 ,2,728,698 2,728,698
644,7 68
7 57 ,855
6,722,014 | 54.228
t2,623.n4 912"083
1,315,417
I 18,892
204,901
33,558
1,434,309 238,459
| ,630,296 994,660
7,43796.30s
1,726,601 002.097
(Continued)
The ascompanying notes are an integral part of these financial statements.
26
CITY OF PRATTVILLE, ALABAMA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30,2OI2
EXPENDITURES : (continued)
Transfers:
Transfers to component units
Total transfers
Total expenditures
Excess of revenues over expenditures
Other financing sources (uses):
Transfers to debt service fund
Transfer from special revenue fund
Proceeds from notes payable
Total other financing uses
Net change in fund balance, budgetary basis
Deduct other reconciling items to adjust from
budgetary basis to modified accrual basis:
Change in encumbrances
BUDGETED AMOLTNTS
ORIGINAL FINAL
$ 280,000 $ 280,000
280,000 280,000
27,197,613 27,472,153
(4,57 4 "691) (4,57 4,691)
2,000,000 ?,000,000
ACTUAL AMOLTNTS VARIANCE WITH
BUDGETARY FINAL BUDGET.
BASIS POSITIVE (NEGATIVE)
$ (1,089)$ 281,089
281,089
24,924,649
(1,089)
2^547.504
4,664,3,)3 8,371,762 3.707 .449
286,886
35,450
_(2,000j900)
(4,287,805)
35,450
(2,574,691) (2,574,691) _ (4,252,355,) ._ (l$77,664)
$ 2,197 ,281 $ 2,089,622 4,119,407 $2,029,785
1 8,1 09
1 8,1 09
NET CHANGE IN FUND BALANCE. MODIFIED ACCRUAL BASIS
FUND BALANCE . BEGINNING
FUND BALANCE. ENDING
4,137,516
1,067,824
$ 5,205,340
The accompanying notes are an integralpart of these financial statements.
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 2012
NOTE I . SUMMARY OF SIGNIFICANT ACCOI.JNTING POLICIES:
Reporting entitv - The City of Prattville, Alabama (the City) was incorporated under the laws of the
State of Alabama in 1865 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 (tfRA), 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
these criteria, the Library is included as a component unit of the City for the year ended
September 30,2012. 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 30,2012. 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 HPRA 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 30,2012.
The City's officials are also responsible for appointing the members of the boards of other
organizations, but the City's accountability for these organizations does not extend beyond making
the appointments. These organizations would not be considered component units of the City;
therefore, their financial information is not reflected in the City's financial statements.
28
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2OI2
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. Both sets of statements
distinguish between governmental and business-type activities. Government-wide financial
statements are comprised of the statement of net assets and the statement of activities. The effects of
interfund activity have been removed from these statements. Governmental activities, which
normally are supported by taxes, intergovernmental revenues, and other nonexchange hansactions,
are reported separately from business-type activities, which rely to a significant extent on fees and
charges for support,
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 progam or function. Program revenues are classified into three
categories: (l) fines, fees, and charges, (2) operating grants and contributions, and (3) capital grants
and contributions. Charges for services refer to direct recovery from customers for services
rendered. Grants and contributions refer to revenues restricted for specific programs whose use may
be restricted further to operational or capital items. The general revenues section displays revenue
collected that helps support all functions 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 aggregate for governmental funds. A
reconciliation is provided that converts the results of governmental fund accounting to the
government-wide presentations.
Management has determined that the operations of the sanitation and wastewater departments should
be reported in proprietary funds as business-type activities. Therefore, the assets and liabilities have
been reflected as net capital contributions to these funds. The transfer ofthese assets and liabilities
was effective October l,Z0ll at the time the funds were created.
The City reports the following major governmental funds:
General fund - This is the City's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in
another fund.
Capital projects funds - Capital Projects funds are used to account for financial
resources used for the acquisition or construction 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.
29
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 2OI2
NOTE I - SUMMARY OF SIGNIFICANT ACCOLINTING POLICIES: (continued)
The City reports the following major proprietary funds:
Sarritation - The fund accounts for the revenues and costs related to the provision of
sanitation services in the Citv.
Wastewater - The fund accounts for the revenues and costs related to the provision of
sanitary sewer and wastewater treatment services in the City.
Measurement focus" basis of accounting. and financial statement presentation - Government-wide
/inancial 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 properly 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.
Governmental fund financial statemenls - 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.
Defened revenue arises when assets are recognized before revenue recognition criteria have been
satisfied. All other revenue items are considered to be measurable and available only when cash is
received by the City.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences and
claims and judgements, are recorded only when payment is due. Allocations of cost, such as
depreciation and amortization, are not recognized in governmental funds. General capital asset
acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt
and acquisitions under capital leases are reported as other financing sources.
Under the terms of grant agreements, the City funds certain programs by a combination of specific
cost-reimbursement grants, categorical block grants, and general revenues. Thus, when program
expenses are incurred, there are both restricted and unrestricted net assets available to finance the
program. It is the City's policy to first apply cost-reimbursement grant resources to such programs,
followed by categorical block grants, and then by general revenues.
30
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 20I2
NOTE I - SUMMARY OF SIGNIFICANT ACCOLJNTING POLICIES: (continued)
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,
Proprietary fund Jinancial statemenls - Proprietary funds are used to account for operations that are
(a) financed and operated in a manner similar to private business enterprises - where the intent of the
governing body is that the costs (expenses, including depreciation) ofproviding goods or services to
the general public on a continuing basis be financed or recovered primarily through user charges; or
(b) where the governing body has decided that periodic determination of revenues earned, expenses
incurred and/or net income is appropriate for capital maintenance, public policy, management
control, accountability, or other purposes.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
in connection with a proprietary fund's principal ongoing operations. All revenues and expenses not
meeting this definition are reported as non-operating revenues and expenses.
Private-sector standards of accounting and financial reporting issued prior to December l, 1989,
generally are followed in both the government-wide and proprietary fund financial statements to the
extent that those standards do not conflict with or contradict guidance of the Governmental
Accounting Standards Board. Governments also have the option of following subsequent private-
sector guidance for their business-type activities and enterprise funds, subject to this same limitation.
The City has elected not to follow subsequent private-sector guidance.
Cash and cash equivalents - 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.
Properf 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. Properly 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/bonowing arrangements
outstanding at the end ofthe fiscal year are referred to as either "due to/from other funds" (i.e., the
current portion of inter-fund loans) or "advances tolfrom other funds" (i.e., the noncurrent portion of
interfund loans). All other outstanding balances between funds are reported as "due to/from other
funds."
3l
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2OI2
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
All trade and tax receivables are shown net of any applicable allowance for uncollectibles. Accounts
receivable in governmental funds consist of fees for public services rendered, reimbursable payments
paid for the benefit of other governmental entities that are collected on a periodic basis, and grants
receivable from other governments.
Accounts receivable in the proprietary funds consist of monthly billings to customers for services
provided. The City extends credit to its customers, who are located primarily in Prattville, Alabama.
Trade accounts receivable are stated at the amount management expects to collect from balances
outstanding at year-end. Based on management's assessment of the credit history with customers
having outstanding balances and current relationships with them, it has concluded that realization
losses on balances outstanding at year-end will be immaterial; therefore, no allowance for doubtful
accounts has been provided.
Prepaid items - Certain payments to vendors reflect costs applicable to future accounting periods and
are recorded as prepaid items in both government-wide and fund financial statements.
Inventory 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.
Restricted assets
restricted assets on
as an expenditure when purchased rather
inventories as of September 30, 2012 and
Resources from federal and state grants and drug proceeds are classified
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 applicable governmental or
business-type activities columns 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:
32
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 20I2
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
ASSET CLASS
Buildings and building
improvements
Land improvements
Vehicles
Office, nonoffice, and
computer equipment
Infrastructure
ASSET CLASS
Land improvements
Building and improvements
Furniture and equipment
Runways
ASSET CLASS
Machinery and equipment
Land improvements
Buildings
ESTIMATED
USEFUL LIVES
CAPITALIZATION
THRESHOLD
CAPITALTZATION
THRESHOLD
5,000
5,000
5,000
5,000
CAPITALTZATION
THRESHOLD
5,000
25,000
25,000
40 years
20 years
5 - 15 years
5 - 20 years
5 0 years
25,000
25,000
5,000
5,000
50,000
unit, are depreciated using theCapital assets of the Pratfville Airport Authority, a component
straight-line method over the following estimated useful lives:
ESTIMATED
USEFUL LTVES
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 LryES
5 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.
33
CITY OF PRATTVILLE. ALABAMA
NOTES TO FTNANCIAL STATEMENTS
SEPTEMBER 30.2012
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
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%o 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 and proprietary fund types in
the fund financial statements, long-term obligations are reported as liabilities in the applicable
governmental activities, business-type activities, or proprietary fund type statement of net assets.
Bond premiums and discounts, as well as issuance costs, are defened 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.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the cunent 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. Capital lease obligations of
business-type activities in the government-wide financial statements and proprietary fund type
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.
34
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 2OI2
Restricted - includes fund balance amounts that are constrained for specific purposes
which are externally imposed by providers, sugh 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 satisfuing 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 reshicted, committed, or assigned for those specific purposes.
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 ACCOIINTABILITY:
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.
35
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 2OI2
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 exception to this rule is the Statement of
Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund. Actual
expenditures in this statement include outstanding encumbrances at September 30, 2012 of $73,776.
Encumbrances are included in the actual expenditure figures on this statement so that a meaningful
comparison can be made with the adopted budget.
A reconciliation of the two statements is as follows:
GENERAL
FUND
sources over expenditures and
4,137,516
55,667
(73,77 6)
Excess of revenues and other financing
other uses (GAAP basis)
Encumbrances at beginning of the year
Encumbrances at end of the year
Excess of revenues and other financing
expenditures and other uses - actual
sources over
(non GAAP budgetary basis)4,119,407
As of September 30, 2012, the City included the encumbrances as part of the major governmental
funds.
NOTE 3 - CASH, CASH EQUTVALENTS, AND INVESTMENTS:
Deposits - Custodial credit risk - The City's investment policy requires that bank deposits be fully
insured by the Federal Deposit Insurance Corporation or be covered under the Security for Alabama
Funds Enhancement (SAFE) Program. The SAFE program is a multiple financial collateral pool
administered by the State Treasurer according to State of Alabama statute.
NOTE 4. RECETVABLES:
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.
36
CITY OF PRATTVU,LE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2OI2
NOTE5-CAPITALASSETS:
Capital asset activity for the year ended September 30,2012 was as follows:
BEGINNING ENDING
BALANCE INCREASE DECREASE BALANCE
Governmental activities :
Capital assets, not being
depreciated:
Construction in progress $ 447,072 $ 48,884 $ 19,550 I 476,406
Land 2,661,060 338,654 2,322,406
Total capital assets, not
being depreciated 3,108,132 48,884 358,204 2,798,812
Capital assets, being depreciated :
Buildings and building
improvements
Land improvements
Vehicles
Office, nonoffice, and
computer equipment
Infrastructure
Total capital assets,
Less accumulated depreciation for:
Buildings and building
improvements
Land improvements
Vehicles
Office, nonoffice, and
computer equipment
Infrastructure
Total accumulated
depreciation
Total capital assets,
10,713,673
9,134,531
5,604,672 5,109,001
2,773,189 6,361,342
5,973,010 305,350 1,860,891 4,417 ,469
5,697,600 35,306 1,484,363 4,248,543
3 8,345 ,401 2,266,800 477 ,241 40,134,960
being depreciated 69,864,215 2,607,456 12,200,356 60?7]38
3,181,100 133,5 19 2,285,864 1,028,755
5,087,250 347 ,597 l,l7 5,178 4,259,669
4,484,337 324,080 1,459,094 3,349,323
3,630,678 366,883 9l I ,808 3,085 ,7 53
5,3 83,888 7 53,7 l0 6, l3 7 ,598
21,7 67 ,253 1,925,789 5,83 1,944 17 ,861,098
being depreciated, net 48,096,962 681,667 6,368,412 42,410,217
Governmental activities
capital assets, net $ 51,205,094 $ 730,551 $ 6,726,616 $ 45,209,029
37
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCI.AL STATEMENTS
SEPTEMBER 30. 20I2
NOTE 5 - CAPITAL ASSETS: (continued)
Capital asset activity for the City's business-type activities for the year ended September 30,2012
was as follows:
BEGINNING
BALANCE INCREASE
ENDTNG
DECREASE BALANCE
Business-type activities :
Capital assets, not being
depreciated:
Construction in progress
Land
Total capital assets, not
being depreciated
Capital assets, being depreciated:
Buildings and building
lmprovements
Land improvements
Vehicles
Office, nonoffice, and
computer equipment
Total capital assets,
being depreciated
Less accumulated depreciation for:
Buildings and building
lmprovements
Land improvements
Vehicles
Office, nonoffice, and
computer equipment
Total accumulated
depreciation
Total capital assets,
being depreciated, net
Business-type activities
capital assets, net
203,719
338,654
203,719
3 3 8,654
542,373 542,373
5,649,7 68
3,221,430
1,556,713
| ,47 8,645
5,649,7 68
3,221,430
1,556,713
1,478,645
I 1,906,556 I 1,906,556
2,427 ,719
1,3 15,183
1,239,91 8
986,913
2,427 ,719
1,3 15,183
1,239,918
986,913
5,969,733 5,969,733
5,936,823 5,936,823
6,479,196
At October l,20ll, the City transferred fixed assets, net of accumulated depreciation of $6,718,278,
from governmental activities to business-type activities.
38
CIry OF PRATTVTLLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2OI2
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
Business-type activities :
Sanitation
Wastewater
$ 833 ,67 4
lgl,35g
578,108
332,649
Total depreciation expense - governmental activities $ 1,925,789
$ ll2,l87
. , 331,24L
Total depreciation expense - business-Epe activities _q__gt€!-
Component units - Capital asset activity for the Autauga-Prattville Public Library for the fiscal year
ended September 30,2012 is as follows:
BEGINNTNG ENDING
BALANCE INCREASE DECREASE BALANCE
Capital assets, being depreciated:
Equipment
Total capital assets,
being depreciated
$ 223,470 $ 3,816 $ 219,654
223,470 3,816 219,654
Less: Accumulated depreciation 89,989 $ 27,887 3,781 114,095
Total capital assets,
beingdepreciated,net $ 133,481 S (27,887)$ 35 $ 105,559
---re
39
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 2OI2
NOTE 5 - CAPITAL ASSETS: (continued)
Capital asset activity for the Prattville Airport Authority for the fiscal year ended September 30,2012
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
Total capital assets, net
$ 2,593,729
32,783 33,737 32,783
$ 2,593,729
33,737
2,626,512 33,737 32,783 2,627,466
1,442,418
6,462,154
1,415,67 6
90,47 5
68,591
13,669
1,442,418
6,53 0,7 45
1,402,007
90,47 5
9,410,723 68,591 13,669 9,465,645
414,152
2,129,132
386,669
44,467
72,121
220,040
31,422
7,673
486,273
2,349,172
13,669 404,422
52,140
2,97 4,420 331 ,256 13,669
6,436,303 (262,.695)
$ 9,062,8 15
3,,z?ry07
6,173,63 8
$ (228,928)32,783 $ 8,801,104
40
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2OI2
Capital asset activity for the Historic
September 30, 2012 is as follows:
Prattville Redevelopment Authorify for the fiscal year ended
BEGINNING
BALANCE INCREASE
ENDING
DECREASE BALANCE
Capital assets, 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 depresiation
Total capital assets,
being depreciated, net
Total capital assets, net
69,033 $ 8,825
183,500 183,500
183,500 193,500
12,000
285,000
23,000
12,000
285,000
23,000
320,000 320,000
77,858
250,967 (8,825)-242,142
$ 434,467
--
(8,825)
NOTE 6 - INTERFUND BALANCES:
Interfund transactions are generally used to meet cash demands necessary to pay operating
expenditures. These amounts should be repaid during the next fiscal year. Amounts reported in the
fund financial statements as interfund reciivables and payables are eliminated in the entity-wide
governmental column of the statement of net assets, except for the net residual amounts due between
governmental and business-type activities, which are presented as internal balances.
41
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 2012
NOTE 6 - INTERFUND BALANCES: (continued)
The composition of interfund receivables and payables as of September 30, 2012 consists of the
following:
RECEIVABLE FLTND PAYABLE FI.IND AMOI.JNT
General
Wastewater
Total
Sanitation
General
95,070
4,7 6l
99,83 I
Transfers were made primarily from the general fund and nonmajor funds to major governmental
funds for debt service payments.
The following is a schedule of interfund transfers for the year ended Sepetember 30,2012:
TRANSFER OUT TRANSFER TN
DEBT
GENERAL SERVICE
FLIND FLIND TOTAL
General fund $ 4,287,805 $ 4,287,805
Other governmental funds $ 35,450 286,883 322,333
Totals
TRANSFER OUT
$ 3 5,450 $ 4,57 4,688 $4,610, l3I
TRANSFER IN
WASTEWATER
FUND TOTAL
Capital projects fund $ 88,917 $ 88,917
Totals $ 88,917 $ 88,917
42
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 2OI2
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 a year can be no greater than 20Yo of the assessed value of taxable property as of
the beginning of the fiscal year. As of September 30, 2012, the amount of outstanding debt
applicable to this limit was equal to 2.66% of property assessments as of October l, 201 l.
Long-term debt activity for the year ended September 30,2012, was as follows:
REDUCTIONS
DUE
WITHIN
ENDING ONE
BALANCE YEAR
BEGINNING
BALANCE ADDITIONS
Governmental activities :
Wanant and other notes payable
Limited obligation warrant
Add deferred amounts:
Debt issuance premiums
Total warrants and
other notes payable
Capital leases
Compensated absences
Post-employment benefits other
than pensions
Governmental activities long-terrn
liabilities
Business-type activities :
General obligation warrants
Capital leases
Compensated absences
Business-type activities
long-term liabilities
Total long-term debt
55,1 24,034
1,594,489
3 86,858
57 ,105,3 8 I
7 48,347
| ,271,409
I ,3 53 ,182
5,549,57 0
I 3,63 8
48,243
$ 49,574,464 $ 2,884,633
1,580,851
338,615
659,276
337,317
5,61 1,451
659,785
858,682
60,934
5l ,493,930 2,884,633
88,562 7 5,489
1,072,0a3 264,485
1,629,565
60,478,3 l9 996.593 7,190,852 54,284,060 3,224,607
2,7 55,000
422,219
296,680
265,000 2,490,000
I 84, 145 238,07 4
137,776 l58,904
275,000
v7,437
53,548
$ 60,478,3 19 $ 4,470,492
----
3,473,899 586,921 _2,886,978 17j1585
$ 57,171,038 $ 3,700,192
----
7,777 ,773
At October l,20ll, the City transferred $2,755,000 of general obligation warrants, $73,944 of debt
issuance cost,$422,219 of capital lease obligations and $150,522 of compensated absences liabilities
from governmental activities to business-type activities, Compensated absences, benefits, and other
governmental activity obligations have generally been liquidated by the general fund.
43
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCTAL STATEMENTS
SEPTEMBER 30, 2OI2
NOTE 7 -LONG.TERM DEBT:
Long-term debt at September 30,
Governmental activities:
(continued)
2012 consists of the following:
General Obligation Economic Development Improvement
Warrants, Series 20064; principal amount $ 19,87 5,000;
graduated principal payments are due annually beginning
November l, 2010 and semiannual interest payments due each
November I and May l; interest at 3.65Yo to 5,00oA; current
rate on bonds 5%; final maturity date is November I , 2026.
Proceeds used for economic development.
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 I ; interest at 3.50yo to 5.000 ; rate on
current bonds 4.5o ; final maturity date is November 1, 2025 .
Proceeds used for economic development.
General Obligation Economic Development Improvement
Warrant, Series 2007; principal amount $l 4,920,000; graduated
principal payments due annually beginning November I , 201 0
and semiannual interest payments due each November I and
May l; interest at 3.50oh to 4.375o/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.
TOTAL
$ 19,645,000
7,840,000
13,525,000
44
236,641
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2OI2
NOTE 7 -LONG-TERM DEBT: (continued)
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 3.440 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.
General Obligation Warrant, Series 200;9; 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 20094; principal amount $400,000 due in
monthly principal and interest payments of $2,387, beginning
December 15, 2009; interest rate is 3.825%; final balloon
payment due on November 15,2014, 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 beginning on September 1, 2010 and semiannual
interest payments due each March I and September l,
beginning March l, 2010; interest rate ranges from 2% to 4o/o;
rcte on current bonds 3%; final payment is due September l,
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.
TOTAL
3 88,172
323,616
365,983
5,150,000
45
335,052
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCTAL STATEMENTS
SEPTEMBER 30, 2OI2
NOTE 7 -LONG-TERM DEBT: (continued)
General Obligation Chevron Warrants Series 2009A; principal
amount $ 1,820,000; graduated principal payments are due
annually beginning on December l, 2010 and semiannual
interest payments due each June I and December l, beginning
June l, 2010; interest rate ranges from 2,2o to 4.5o/o; rate on
current bonds 2.2o/o; final payment is due December l, 2029,
Proceeds used for the acquisition, construction, installation, and
equipping of certain energy efficient improvements.
Total governmental activities
Business-type activities :
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 Febru ary I 5 and August I 5; interest rate of 3 .l9oh; 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 l5 and semiannual interest payments due
each February I 5 and August I 5; interest rate of 3 .05Ya; 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.
Total business-type activities
Total general obligation warrants
TOTAL
$ 1,7 65,000
49,57 4,464
990,000
1,500,000
2,490,000
$ 52,064,464
--
46
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCI.AL STATEMENTS
SEPTEMBER 30. 2OI2
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 infrastrucfure. The warrant bears a -0-% 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 30,2012, the City had redeemed $13,638 of the outstanding warrants. The balance on the
warrant at September30,2012 is $1,580,851.
The Limited Obligation Warrant does not constitute a direct obligation and pledge of the full faith
and credit of the Citv.
Debt service requirements on long-term debt at September 30,2012 are as follows:
TOTAL ANNUAL REQUIREMENTS GOVERNMENTAL ACTIVI TIES BUSINESS.TYPE ACTIVITIES
PRINCIPAL INTEREST PRINCTPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL
YEAR ENDING
SEPTEMBER 30:
2013 $ 3,159,633 $
2014 3,193,406
20f5 3,717,966
2016 3,296,9g9
2017 3,443,133
20t8 - 2022
2023 - 2027
2,t66,330 $ 5,325,963 $ 2,884,633 $ 2,090,547 $ 4,975,180 $ 275,000 $ 75,783 0 350,783
2,030,49t 5,2t3,897 2,893,406 1,963,405 4,856,81 I 290,000 67,0E6 357,086
1,879,329 5,597,295 3,4t7,966 1,821,335 5,239,301 300,000 57,994 357,994
t,74t,804 5,038,793 2,986,989 t,693,297 4,680,286 310,000 48,507 358,507
1,602,146 5,M5,879 3,1 18,t33 t,564,036 4,682,169 325,000 38,710 163,710
f8,l 13,837 5,885,273 23,999,1 t0 17,523,817 5,7"18,2t8 2t3A2,055 590,000 107,055 697,055
16,6!4,500 1,886,298 18,500,798 16,214,500 1,867,845 18,082,345 400,000 18,453 418,453
2028 -2032 535,000 35,674 570,674 535,000 35,674 570,674
Totals$52,064,464sti,227,s45s69,292,409$4s,si4,464$16,814,357$66,388,821s2,490,0009413,5E8$2,903,588
47
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2OI2
NOTE 7 - LONG-TERM DEBT: (continued)
Component units - The Prattville Airport Authority's capital debt at September 30, 2012 is as
follows:
Revenue and Grant Anticipation Bond Series 2008
BankTrust; $ 1,000,000; amount drawn to date 8677 ,l 50;
interest rate of 358oh until July 1,201 3, variable rate equal to
65% of BankTrust base rate thereafter; interest due quarterly
beginning October l, 2008; principal payments due quarterly
beginning October l, 201 I ; 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.$ 597,187
Total long-terrn capital debt
Maturities on capital debt are as follows:
YEAR ENDING SEPTEMBER 30:
2013
20t4
20t5
20r6
Totals
Total interest cost on capital debt in 2012 was $2 | ,826.
$ 597 ,l 87
--PRINCIPAL INTEREST TOTAL
$ 33,7 46 $ 20,631 $ 54,377
55,129 18,946 7 4,07 5
57,129 16,929 74,058
451, 183 11,379 462,562
$ 597 ,l 87 $ 67 ,885 $ 665,072
48
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCTAL STATEMENTS
SEPTEMBER 30. 2OI2
NOTE 7 - LONG-TERM DEBT: (continued)
Capital debt activity for the year ended September 30,2012 was as follows:
BEGINNING
BALANCE ADDITIONS REDUCTIONS
ENDING DUE WITHIN
BALANCE ONE YEAR
Revenue and grant anticipation
Bond-BankTrust $ 627,889 30,702 $ 597,1 87 $33,746
Totals 30,702 $ 597 ,l 87 $ 33,7 46
----
The Historic Prattville Redevelopment Authority's notes payable at September 30,2012 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 6.150; 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 6.150/o; maturity date of
September 15, 2014. Proceeds used to pay unsecured
loan.
16,53 I
155 ,425
22,581
Total 194,537
49
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2OI2
Notes payable maturities at September 30, 2012 are as follows:
HISTORIC PRATTVILLE
REDEVELOPMENT AUTHORITY
PRINCIPAL INTEREST TOTAL
YEAR ENDING SEPTEMBER 30:
20t3
2014
Totals
Long-term debt activity for the Historic
September 30, 2012, was as follows:
194,537 $ 20,7 68
--
215,305
Pratfville Redevelopment Authority for the year ended
33,5 I I
l6l ,026
11,872
8,896
45,3 83
169,922
BEGINNING
BALANCE ADDITIONS
ENDING DUE WITHIN
REDUCTIONS BALANCE ONE YEAR
52,090
52,090 $ 194,537 $ 33,5 I I
---
NOTES-NOTESPAYABLE:
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, 2012,the balance of the loan
had been paid in full.
The City issued General Obligation Note, Series 2012 dated October 31, 20ll in the amount of
$2,000,000. The proceeds of the note were used as a line of credit for paying operation expenditures
as needed for the City. The note currently bears an interest rate of |.68%, At September 30, 2012,
the balance of the loan had been paid in full.
Notes payable to bank
Totals
g 246,6?7
.
$ 246,627
--
q.l94f 37__$ 33,5 I I
50
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 2OI2
Notes payable activity for the year ended September 30,2012, was as follows:
BEGTNNTNG
BALANCE
ENDING
ADDITION REDUCTION BALANCE
Notes payable to bank
Totals
$ 1,000,000 $ 2,000,000 $ 3,000,000
$ 1,000,000 $ 2,000,000 $ 3,000,000
------
NOTE9-CAPITALLEASES:
The City has entered into lease agreements as lessee for financing the acquisition of property and
equipment. These lease agreements quali$ 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.
The assets acquired through capital leases are as follows:
ASSET
GOVERNMENTAL
ACTWITIES
Machinery and equipment
Vehicles
Less : Accumulated depreciation
Total
ASSET
Machinery and equipment
Vehicles
Less : Accumulated depreciation
Total
BUSTNESS.TYPE
ACTTVITIES
446,579
1,023,283
1,469,862
1,168,272
301,590
388,7 19
952,13 8
1,340,857
83 5 ,441
5l
505 ,416
CITY OF PRATTVILLE" ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2012
The future minimum lease obligations and the net present value of these minimum lease payments as
of September 30,2012, were as follows:
YEAR ENDINO 'U'
2013
2014
Total minimum lease payments
Less: Deferred interest
Present value of minimum lease payments
BU SINES S-TYPE ACTTVITIES
YEAR ENDING SEPTEMBER 30:
20t3
20r4
Total minimum lease payments
Less: Deferred interest
Present value of minimum lease payments
AMOLTNT
77,854
13,259
9l,l 13
2,551
88,5 62
AMOUNT
152,948
92,254
245,202
7,128
238,47 4
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 retiremento
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, townso 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.
52
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2OI2
NOTE l0 - PENSION COSTS: (continued)
ERS PERS issues a publicly available financial report that includes financial statements and required
supplemental information for the Employees' Retirement System of Alabama. That report may be
obtained by writing to: The Retirement Systems of Alabama, P.O. Box 302150, Montgomery,
Alabama 36130-2150 or by calling (334) 832-4140.
Funding policy - Plan members are required by statute to contribute 5o/o of their annual salary, except
for full-time, certified firefighters and law enforcement officers, who contribute 60/o of their annual
covered salary. The City is required to contribute at an actuarially determined rate; the City's current
contribution rate is 8.53% of covered payroll based on the actuarial valuation report of
September 30, 2009. The contribution requirements of plan members are set by the State
Legislature. The contribution requirements of the City are established and may be amended by the
ERS based on actuarial valuations.
Annual pension cost - For the year ended September 30, 2012, the City's annual pension cost of
$1,091,702 was equal to the City's required and actual contributions.
Trend information for the City of Prattville, Alabama is as follows:
FISCAL YEAR
ENDED
September 30, 2010
September 3 0, 2011r
September 30, 2012
ANNUAL PENSION. cosT (4PC)
,
1,234,847
I , I 93,485
1,09 1,702
PERCENTAGE OF APC NET PENSION
CONTRIBUTED OBLIGATION
t00%
100%
r00%
-0-
-0*
-0-
The required contribution was determined as part of the September 30, 2009 actuaial valuation using
the entry age actuarial cost method. Significant actuarial assumptions used in the valuation 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 anortized as a level
percentage of projected payroll on an open basis. The remaining arnortization period as of
September 30,2009 was 30 years.
Funding status and progress - As of September 30,2011, the most recent actuarial valuation date, the
plan was 69.7% funded. The actuarial accrued liability for benefits was $42,166,299, and the
actuarial value of assets was $29,406,664 resulting in funding deficit of 512,759,635. The covered
payroll (annual payroll of active employees covered by the plan) was $13,066,762, and the ratio of
the funding deficit to the covered payroll was 97 .6Yo.
53
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2OI2
The schedule of funding progress for the City of Prattville, Alabama, presented as required
supplementary information following the notes to the financial statements, presents multiyear trend
information about whether the actuarial value of plan assets is increasing or decreasing over time
relative to the actuarial accrued liability for benefits.
NOTE I I - POST-EMPLOYMENT BENEFITS OTI{ER 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 receivedn 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 Pratfville, 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 eligibility 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.
Contribution 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 arc
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
314
54
CIry OF PRATTVILLE. ALABAMA
NOTES TO FINANCTAL STATEMENTS
SEPTEMBER 30" 2OI2
NOTE I I - POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS: (continued)
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 Prattville'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
of the current year's retiree funding costs.
In fiscal year ending September 30, 2012, the City of Prattville, Alabama's portion of health care
funding cost for retired employees totaled $60,934. These amounts were applied toward the net
OPEB obligation as shown in the table below.
Annual required contribution - The City of Prattville's Annual Required Conhibution (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,20ll is $361,443, as set forth below:
MEDICAL
Normal cost
30 year unfunded AAL amortization amount
Annual required contribution (ARC)
189,7 43
171,700
361,443
55
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2OI2
NOTE I I - POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS: (continued)
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
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, peraentage
fiscal year 2012 and the previous fwo years
361,443
54,128
(7 8,255)
337,316
-0-
(60,934)
27 6,382
1,353,183
1,629,565
of the cost contributed, and the net OPEB obligation for
is as follows:
PERCENTAGE
OF ANNUAL
ANNUAL COST NET OPEB
OPEB COST CONTRIBUTED OBLIGATION
POST
EMPLOYMENT
BENEFIT
FISCAL YEAR
ENDED
Medical
Medical
Medical
September 30, 2010 $
September 30, 20ll
September 30, 2012
661,215
328,260
337,315
17.000h
17.19%
18.060h
1,081,342
1,353,182
1,629,565
Funded status and funding progress - As of September 20, 2012, the actuarial accrued liability for
benefits was $2,969,078 all of which was unfunded. The covered payroll (annual payroll of active
employees covered by the plan) was $13,110,114 and the ratio of the unfunded actuarial liability to
the covered payroll was23Yo as presented in the following table:
56
CIry OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 2OI2
NOTE l1 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS: (continued)
MEDICAL
Actuarial accrued liabilify (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
2,969,078
-0-
2,969,078
-0-%
l3,l l0,l l4
23%
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 rate: (2')
retirement rate; (3) health care cost trend rate; (4) mortalify 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 ofassets.
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 furnover.
Actuarial value of plan assets - Since the OPEB obligation has not as yet been funded, there are not
any assets.
57
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCI,AL STATEMENTS
SEPTEMBER 30.2OI2
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 approxim ately 9Yo. It has further been assumed that l0%o of retirees decline
coverage because ofthe substantial retiree contribution required.
Post-employment benefit plan eligibili8 requirements - Based on past experience, it has been
assumed that entitlement to benefits will commence immediately upon retiree coverage eligibility.
Medical benefits 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 4Vo 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, 2004by 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.IYo for 2016 and later, The hend rate includes an inflation factor of 2.50% annually.
Mortality 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 atage 65.
NOTE 12 - CONTINGENT LIABILITIES:
The City has received federal and state grants for specific purposes which are subject to review and
audit by the grantor agencies. Such audits could produce requests for reimbursements to the grantor
agencies due to the disallowance 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.
58
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2OI2
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; errors and omissions; natural disasters; injuries to employees; and self-insured employee
health. The City purchases commercial insurance for properly, 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, 2012, 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
FLIND
Unpaid claims, beginning of fisc al year
Incurred claims (including IBNRs)
Claim payments
Unpaid claims, end of fisc al year
$ 173,600 $ 176,300
2,561,453 2,682,997
(2,606,7 53) (2,9!!,691)
$ 128,300
--
2012 20tl
59
173,600
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2OI2
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 30,2012 was $436,870.
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
Cify of Prattville for license fees at September 30,2012 was $119,596.
On May 1,2006, the City of Prattville, Alabama entered into a lease agreement with the Historic
Prattville Redevelopment Authority to lease a building on West 4ft Street. The term of the lease is
five years with quarterly rent payments of $8,183. The City of Prattville, Alabama paid$32,732in
rent payments to Historic Prattville Redevelopment Authority during fiscal year ended
September 30,2012.
NOTE 15 - FLNDTNG 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 District's issuance of Limited Obligation Taxable Economic Development Bonds (Bass Pro
Project), Series 2006 which were used to finance the acquisition, construction, and installation of a
retail shopping center and related improvements in the City of Prattville, Alabama. The funding
agreement provides that the City agrees to collect certain taxes on persons, firms, and corporations
which sell at retail certain tangible personal property (excluding automotive vehicles) in the area
owned by the District. Pursuant to the funding agreement, the City will collect and remit to First
Commercial Bank, the trustee of the District's bond indenture, an amount equal to2J% of the gross
proceeds of such sales through the earlier date of September 2026 or firll 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.
60
CITY OF PRATryILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2OI2
In December 2008, the City of Prattville, Alabama entered into a funding agreement with The
Exchange Cooperative District (the Dishict), 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% 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, otherwise, all payments shall be made to the Dishict or to the District Director. The
maximum amount shall be the aggregate amount necessary to amortize $9,000,000 over thirty (30)
years at an average yield. The average yield is the annual cost of any credit enhancement or
remarketing fees expressed as a percentage, plus the average yield of the District's tax-exempt
indebtedness, if any, or if no tax-exempt indebtedness is outstanding, the average yield of all 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.
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 annualpayments 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, 2012was $155,425.
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, 2012, commitments to contractors on capital projects are as follows:
Commitments $ 852,869
Spent-to-date (680,126)
6l
Remaining commitments 172,7 43
CITY OF PRATTVILLE. ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30.2OI2
NOTE 17 - EFFECT OF NEW PRONOUNCEMENTS:
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. 63, Financial Reporting of Defewed Outflows of Resources, Deferred
Inflows of Resources, and Net Position. This statement provides financial reporting guidance
by standardizing the presentation of defened outflows of resources and deferred inflows of
resources and their effects on a government's net position. The requirements of this
statement are effective for financial statements for periods beginning after
December 31,2011,
NOTE 18 - SUBSEQUENT EVENTS:
Subsequent to September 30,2012, the City Council approved purchases of vehicles and equipment
totaling approximately $603,099 and construction commitments totaling approximately $152,000.
62
CITY OF PRATTVILLE, ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FLTNDING PROGRESS OF THE CITY'S DEFINED BENEFIT
PENSION PLAN
LAST THREE FISCAL YEARS
ACTUARIAL
VALUATION
DATE
ACTUARIAL
VALUE OF
ASSETS
(a)
ACTUARIAL
ACCRUED
LIABILITY
(AAL)
ENTRY AGE
(b)
$ 39,3 I 5,61 3
43,165,309
42,166,299
UNFTINDEDAAL FLINDED(UAAL) RATIO(b-a)- ({ul _
COVERED
PAYROLL
(c)
UAAL AS A
PERCENTAGE
OF
COVERED
PAYROLL
((b-a){c)
75.8%
92.8%
97,60h
September 30, 2009 $ 28,5 14,588
September 30, 2010 29,286,356
September 30, 20ll 29,406,664
$ 10,801,a25
13,878,953
12,7 59,63 5
72.5% 514,254,467
67.8% 14,949,370
69,7Vo I 3,066,7 62
63
CITY OF PRATTVILLE, ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS OF THE CIryS
POST.EMPLOYMENT BENEFITS OTHER THAN PENSIONS
LAST THREE FISCAL YEARS
ACTUARIAL
ACCRUED
ACTUARIAL LIABILITY UNFUNDED
VALUE OF (AAL)AAL FLTNDED COVERED
PAYROLL
(c)
UAAL AS A
PERCENTAGE
OF
COVERED
PAYROLL
((b-a)/c)
ACTUARIAL
VALUATION
DATE
September 30, 2009
September 30, 2010
September 30, 201 I
ASSETS UNIT CREDIT (UAAL) RATIO(a) (b) (b-a) (a/b)
-0- $
-0-
-0-
5,3 10,730 $ 5,3 10,730
2,854,883 2,854,883
2,969,079 2,969,078
0.00A $ 14,483,029
0.00h 14,207,13 I
0.0% l3,l10,114
37%
20%
23%
64
NONMAJOR GOVERNMENTAL FLINDS
SPECIAL REVENUE FI.INDS
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.
State gasoline excise tax fund - accounts for proceeds from a state gasoline tax. The use ofthese
funds is restricted to expenditures related to construction, improvementso 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.
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF PRATTVILLE, ALABAMA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2OI2
ASSETS:
Cash
Total assets
FUND BALANCE:
Restricted for road projects
Total fund balance
TOTAL
NONMAJOR SPECIAL
GOVERNMENTAL REVENUE
FLINDS FTINDS
$ 481 ,959 $ 481 ,959
$ 481 ,959 $ 481 ,959
$ 481 ,959 $ 481 ,959
$ 481 ,959 $ 481 ,959
65
CITY OF PRATTVILLE, ALABAMA
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FLTNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2OI2
REVENUES:
Intergovernmental revenue
Total revenues
OTHER FINANCING USES:
Transfers out
Total other financing uses
EXCESS OF REVENUES AND OTHER
FINANCING USES OVER EXPENDITURES
FTJND BALANCES AT BEGINNING OF YEAR
TOTALNONMAJOR SPECIAL
GOVERNMENTAL REVENUE
FUNDS FLTNDS
$ 548,280 $ 548,280
548,280 548,280
(322,333) \322,333)(322,333) (322,333)
225,947
256,012
225,947
256,012
FUND BALANCES AT END OF YEAR $ +8I,959 $ 48I,959
66
CITY OF PRATTVILLE, ALABAIW{
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
SEPTEMBER 30,2OT2
STATE STATE
GASOLTNE GASOLINE AND ALABAMA
TOTAL
EXCISE LUBRICATING
TAX FUND OIL TAX FUND
ASSETS:
Cash$481,959$254,253$227,706
Accounts receivable
TRUST
FUND
Total assets
o\{ FUND BALANCE:
Restricted for road projects
$ 481,959 $ 254,253 $ 227,706 $
$ 481 ,959 $ 254,253 $ 227 ,706
Total tund balances $ 481.959 $ 254.253 $ 227-706 S
CITY OF PRATTVILLE, ALABAMA
COMBINTNG STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED SEPTEMBER 3O,2OI2
STATE
STATE GASOLINE AND
GASOLINE LUBRICATING ALABAMA
TOTAL EXCISE TAX FUND OIL TAX FUND TRUST FUND
$ 548,280 $ 146,893 $ 1t4,504 $ 286,883
REVENUES:
Intergovernmental revenue s
Total revenues
o\oo OTHER FINANCTNG USES:
Transfers out
548,280 146,893 114,504 286,883
(322,333)(35,450)(286,883)
(286,883)Total other financing uses
Excess of revenues and other
financing uses over expenditures
FUND BALANCES AT BEGINNING OF YEAR
FUND BALANCES AT END OF YEAR $ 481 ,959 $ 254,253 $ 227,706 $
(322,333)(35,450)
225,947
256,012
111 ,443
142,81,4
114,504
113,202
CITY OF PRATTVILLE, ALABAMA
BUDGETARY COMPARISON SCHEDULE
STATE GASOLINE EXCISE TAX FLIND
FOR THE YEAR ENDED SEPTEMBER 3O,2OT2
VARIANCE
WITH
BUDGET ACTUAL BUDGET
REVENUES:
State gasoline excise tax
Total revenues
OTHER FINANCING USES:
Transfers out
Total other financing uses
EXCESS OF REVENUES AND OTHER
$ 137,000 $ 146,893 $ 9,893
FINANCING USES OVER EXPENDITURES $ 137,000 ltl,443 $ (25,557)
FUND BALANCE AT BEGINNING OF YEAR
FUND BALANCE AT END OF YEAR
142,810
$ 254,253
137,000 146,893 9,893
__ ..ff,15,9) (35:450)
(3 s,4s g) (J s,4s o)
69
CITY OF PRATTVILLE, ALABAMA
BUDGETARY COMPARISON SCHEDULE
STATE GASOLINE AND LUBRICATING OIL EXCISE TAX FI.II{D
FOR THE YEAR ENDED SEPTEMBER 3O,2OI2
VARIANCE
WITH
BUDGET ACTUAL BUDGET
$ 106,000 $ 114,504 $ 8,504
REVENUES:
State gasoline and lubricating oil excise tax
Total revenues
EXCESS OF REVENUES AND OTHER
FINANCING USES OVER EXPENDITURES
FLND BALANCE AT BEGINNING OF YEAR
FLTND BALANCE AT END OF YEAR
--
106,000 114,504 8,504
$ 106,000 114,504 $ 8,504:--
-.1i1?,20,?
$ 227,706
--
70
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 frnancial statements, note disclosures, and required supplementary information
says about the City's overall financial health.
CONTENTS PAGE
Financial trends
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
These schedules contain information to help the reader assess the factors affecting the City's
ability to generate its sales taxes.
Debt capacity
These schedules present information to help the reader assess the affordability ofthe City's current
levels of outstanding debt and the City's abilify to issue additional debt in the future.
Demographic and economic information
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
These schedules contain information about the City's operations and resources to help the reader
understand how the City's financial information relates to the services the City provides and the
activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial
reports.
7r
76
80
84
86
THIS PAGE INTENTIONALLY LEFT BLANK
GOVERNMENTAL ACTIVTT TES :
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
BUS INES S.TYPE ACTIVITIES :
Invested in capital assets, net of related debt
Unrestricted
Total business-type activities net assets
PRIMARY GOVERNMENT:
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total primary government activities net assets
2003 2004
$ 262,094 $ (835,480)
623,621 2,740,330|,799,375 838,970
CITY OF PRATTVILLE. ALABAMA
SCFIEDULE 1
NET ASSETS BY COMPONENT
(accrual basis of accounting)
2005 2006 2007
$ 200,301 $ 1,747,516 $23,286,1262,670,892 12,053,513 6,911,387
(477,821) (29,514,316) (28,t62,924)
$ 2,685,090 $2,743,82A $2,393,372 $ (15,713,287) $ 2,034,589
2008 2009 2010 20tl 2012
s26,252,599 $ 27,913,767 $ 28,197,019 $33,144,191 $31,400,291
6,238,962 3,761,598 851,251 653,478 803,180
(42,378,700) (44,366,960) (46,256,970) (42,282,379) (35,254,724)
_$_(e,88?,13el $ (r2,6et,5e5) $ (t?,208,?00) gglgJrq _$E051,251I
$ 3,751,152
|,467 ,034
$ - $ 5,218,186
_.1 $ 262,094 $ (835,480)
623,621 2,740,330
1,799,375 838,970
$ 200,301 $ 1,747,516 523,286,126
2,670,892 12,053,513 6,91L,387
(477,821) (29,514,316) (28,162,924)
$ 2,034,589
$ 26,252,599 $ 27 ,913,7676,238,962 3,761,598
(42,378,700) (44,366,960)
$ (9,887,139) $ (12,691,595)
$ 28,197,019 $33,144,191 $35,151,443
851,251 653,478 803-180
(46,256,970) (42,282,379) (33,797,690)
$ (17,208,700) $ (8,484,710) $ 2,166,933$ 2,685,090 $2,743,820 s2,393,372 $ (15,713,287)
GOVERNMENTAL ACTIVITIES
E)(PENSES.
Governmental activities :
General government
Public safety
Public works
Cultural and recreational
lnterest on long-term debt
Total governmental activities expenses
PROGRAT,T 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 revenues
Total primary governmert net expense
GENERAL REVEN{.IES AND OTI{ER CHANGES TN NET ASSETS.
Governmental activities :
Taxes-
Sales taxes
Real and personal property taxes
Motor fuel taxes
Intergovernmental
lnvestment earnings
Miscellaneous revenue
Gain (loss) on sale of capital assets
Transfers
Total governmental activities general revenues
and other changes in net assets
Total governmental activities change in net assets
CITY OF PRATTVILLE, ALABAMA
SCHEDULE 2
CHANGES IN NET ASSETS
(accrual basis of accounting)
2007 201 I
$3,694,611 $3,536,671 $4,238,631 54,A6r,244 $5,350,008 $6,765,36r $8,093,740 59,r24,r72 $6,984,3IE $6,868,707
10,601,648 tt,52t,996 t2,485,t23 |,642,133 rL,6tO,7U 13,028,713 13,401,4t7 t4,7r9,427 13,36q0$ 12,91r,701
5,964,375 6,184,100 6,033,293 25,283,479 6,548,n5 20,541,104 8,005,500 8,755,792 7,23s,4M 3,518,015
r,85r,287 2,236,072 2,162,29',1 2,@8,474 2'381,7@ 2,502,375 \549,440 2,449,t84 2,080,642 1,766,958
794,955 678,652 606,591 1,t88,315 2,U7,2t3 2,327,227 2,445,0U 2,54s,ffi 2,460,s45 Zt95,O4a
22,9M,876 24,t57,491 25,725,935 45,073,645 27,937,7ffi 45,164,740 34,495,t61 37,614,635 32,129,992 27,261,429
{N)
3,101,357 3,231,340
1,105,768 1,292,271
3,2L5,659 3,040,210
225,033 213,697
t29.790 304,866
L1,731,268 13,360,231
1,308,033 1,543,217
234,541 241,512
3,5E0,313 3,919,277 4,654,085 5,183,865 4,90r,819 4,474,93 4,990,894 5,351,940
1,310,831 t,411,9@ t,4u,65t 1,781,289 1,201,853 1,287,322 t,553,044 1,517,963
2,993,596 3,219,938 3,969,798 3,930,26 3,928,435 4,412,889 5,400,680 264,744
209,831 226,6& 303,580 3t8,697 26t,429 265,M4 238,279 234,899
265,252 1,015,035 385,083 460,308 3t3,6U2 206,761 t9),703 tt2,Ot2
14,199,349 14,729,824 15,365,612 15,965,129 t5,890,723 t6,7 ,679 19,412,210 22,456,057
1,638,862 l,?9r,544 2,065,9',15 2,273,782 2,481,450 2,500,129 2,545,750 2,688,777
242,684 242,416 243,557 239,897 238,36t 240,547 239,616
t5,357 20,22A fi,753 9,092 9,159 161,534 153,2& 286,883
165,783 t82,995 644,767 2323a7 39,410 423ft 32,621 26,685
772,830 742,006 570,544 872,896 386,661 206,845 226,695 476,471
(re,20r)
7377,@7 t,OSr,'U Sj5",Sr3 ',1S,8'rffiffiffiffi rffi#
(rs,129,269) (r6,075,r0?) (r7,366,rt2l (3s,2s4,826) (15,er4,e85) (3l,5l4,ell) (2r,8s0,22o' (24,465,t57) (r3,e6,r42) (17,r27,321)
179,Q52
193,336
384,042
383,017
16,458
160,646
740,819
?0,955
(3,374,0,3)
l4 32S9 lSl]3"838 Upl5-664 l?Jt6r0l3 lqS682O8 lrJr3,tS3 trWJ64 lr948lf2 n,61o,B' n,5@J8O
_!__lz::f!E _!___i!41_ _r _l::9,449_ _Il],5:$12 _!__22s1223_ _s (t1.e2t328)_ _l_(2,804.459_ _l_C.s r?..91 _l_glZ12e0_ _!_:.433,4s1_
2003
CITY OF PRATTVILLE, ALABAMA
SCHEDULE 2
CHANGES IN NET ASSETS
(accrual basis of accounting)
2005 zooT 2008
{(,
BUSINESS-TYPE ACTIVITIES
E)GENSES.
Sanitation
Wastewater
Total business-type activities expenses
REVENUES:
Charges for services
Sanitation
Wastewater
Capital grants and contributions
Wastewater
Total business-t)?e activities revenues
Total business-typ€ activities net program revenue
OTHER CHANGES IN NET ASSETS
Miscellaneous revenue
Transfers
Total business-typ€ activities change in net assets
Total primary goverrrment change in net assets
$ 2,ft9,31t
? {15 ?54
4,544,672
3,874,U4
t60ju
6,427,343
1,W2,671
t,422
3-374.83
3,375,515
s 5,218,186
3 (71s,e80) $ 58,73r $ (350,448) $(17,s38,813) $ 2,es3,223 $(1r,e21,728) $(2,804,4s6) $(4,s17,105) $ 8,723,ee0 $10,651,643
GENERAL FUND:
Reserved
Unreserved
Nonspendable
Restricted
Commiued
Assigned
Unassigned
Total general fund
ALL OTHER GOVERNMENTAL FUNDS:
Reserved, reported in:
Capital projects fund
Reserved, reported in:
d Debt service fund
Unreserved reported in:
Special revenue funds
Unreserved, reported in:
Debt service fund
Unreserved reported in:
Capital projects fund
Resficted
CITY OF PRATTVILLE. ALABAMA
SCHEDULE 3
FUND BALANCES OF GOVERNMENTAL FUNDS
(modified accrual basis of accounting)
2003 2004 2005 2006 2007 2008 2009 2010 20ll 20t2
s 17t,457 $2,063,054 $1,777,1t4 $ 2,03t.204 $ 944,030 $ 1,181,267 $ 1,043,077 $ 821,293(64r,630) (520,470) (r.429,357) (1,370,e3s) (54s,M2) (744.s77) (316,517) Q,3r3,284)$ 159,850 $ 98,908
653,478 204,694
12, 185 2,567 ,260172,653 1,235,3L0
5 50,28 5 I ,099, 168
-$._EZg _ _{_1,s42{1_ _$ 347Js1_ _{_66926e_ _!__!:!l!!_ _!._lig6e9_ _!__126560_ _{_q,4er.ee!_ _{_1,548,45_1_ _{_5,205.119
s 492,482 S 664,s92 $ 6,176,905 52,607,6s2 $ 2,510,352 $ 2,371,105 $ 618,868
2,6s4,t75 1,060,466 t,192,527 858,397 80,178
s 286,373 350,577 88,158 326,192 511,735 63,082 373,568 566,257
153,567 270,24t 264,820 258,009 255,061 (6r,29s\ 169,558
3,156,586 2,42s,627 2,0s3,100 2,964,424 2,445,873 2,47t,886 25,258 (357,885)
s 480,627 $ 598,486
Tot l ![ orhd sotqdcfld tdb S 3J96J26 t 3,53E,92? t 3,0?0,570 $ l2J?9,705 3 6,EE0,?E Jq176552 i 3,797.EE{ I 907,41E $ aEO,627 3 59E,a36
Nolc lbio& p.io. to201l tfr.aot bc6 idor.aitrly Ened fo( tu iEFcr of Stltdat No. 54 of6.Gois@rdl Accoirdilg St dlirls Bodd:
Fud Bddc R.?ortirg dd ih. GoE@.dd Ftnd Tylc Dcfi'itio$"
CITY OF PRATTVILLE. ALABAMA
SCIfiDULE 4
CF{ANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
(modified accrual basis of accounting)
20072006 2008 2009 2010 201l 20t2
\t\rl
REVENUES.
Sales taxes
Real and personal property taxes
Motor fuel taxes
Licenses and permits
Intergovernmental revenues
Charges and fees for services
Fines and forfeitures
Interest
Miscellaneous
Total revenues
DGENDITURES:
Unreserved, reported in:
Current:
General governmental
Public safety
Public works
Cultural and recreation
Capital outlay
Debt service:
Principal payments
Interest and fiscal charges
Bond issuance costs
Total expenditures
Excess of revenues over (under) expenditures
OTFIER FINANCING SOURCES (USES):
Transfers in
Transfers out
Transfers to component units
Issuance ofbonds
Issuance of refunding bonds
Issuance of notes payable
Proceeds from capital lease
Payment to refunded bonds escrow agent
Sale of capital assets
Bond premium (discount)
Total other financing sources (uses)
Net change in fund balance
Debt sewice as a percentage of noncapital expenditures
2003 2004 2005
$ 13,273,842 $ 15,144,960 $ 14,199,349 $ 14,729,9241,638,862 r,798,544242,684 242,4163,101,357 3,231,340 3,580,313 3,939,277308,842 321,324 280,609 780,5024,285,668 4,133,786 4,177,380 4,51 1,611260,792 412,392 336,979 352,996
577,379 901,465 93g,613 1,170,940
2l,807 "879 24,145,267 25,394,699 27 ,526,010
$ 15,365,612 $ 15,965,129 $ 15,890,723 $ 16,796,679 $ 19,432,210 $ 22,456,0572,065,975 2,273,782 2,481,450 2,500,129 2,545,750 2,688,777
243.557 239,898 238,361 240,547 239.6t64,654,085 5,183,865 4,901,819 4,874,993 4,990,894 5,351,940
222,043 302,1 18 343,156 217,701 153,240 548,280
5,319,420 5,493,106 4,905,652 5,564,563 6,655,705 1,223,888418,609 537,086 486,065 400,692 536,299 532,321
644,772 232,387 39,410 44,844 32,621 26,695
849,160 l,l97,L6l 1,109,616 L,099,914 908,449 1,067,962
29,783,233 31,424,532 30,396,252 31,740,062 35,494,783 33,895,910
(835,507) {574,187) (2,146,t12) (21,386,353)
5 ,261 ,945 6,280,215 6,3 I 8,533 7 ,537 ,961 5 ,973 ,87 | 5 ,7 57 ,56411,153,949 12,746,727 12,989,658 14"023,058 12,712,387 12,346,346
5,588,300 18,984,015 7,182,300 8,007,685 6,519,457 3,332,207
2,005 ,573 2,152,013 2,488,332 2,37 | ,770 | ,7 49 ,355 l, ,434,3098,505,999 3,756,955 2,8[ 1,090 3,290,520 478,136 379,900
1,418,665 1,445,912 1,816,556 2,33I"364 9,073,190 4,070,296
1,917,209 2,158,816 2,430,712 2,465,127 2,492,666 2,230,996
35.851S40
(6,068,447) (16,466,571) {5,640,929) (8,504,834) (3,5A4,279) 4,344,292
4,979,825 16,586,498 7,276,949 3,149,228 5,525,970 4,610,138
(4,979,825) (16,586,498) (7,276,949) (3,149,228) (5,525,970) (4,699,055)
3,596,816 3,488,777
9,404,225 10,733,0014,914,907 5,017 ,663|,330,782 |,761,7001,176,805 1,391,229
4,161,340 4,825,37 |
I1,665,559 I1,141,574
5,613,345 24,664,57LL,784,6I2 1,796,512
2,193,165 2,493,938
4,461,246 32,254,124
(4,461,246) (32,254,124)
(302,350)
30,470,000
625,000 625,000
157,792
2,586
480,746
31,575,746
1,506,896
712,955
n"643386
1,567,485 1,476,500 2,599,045674,599 650,279 650,342
85,000 741,010
24,719,454 27,540,800 48,912,363
4 ,699 ,240 3,209,93 I
(4,699,244) (3,209,931)
(444.647 ) (20t,750)
2,085,000
383-017
373,259
272,836
(61,630) 2,57,9,345 493,028
15,300,000
136,099
307,808 451,767
307,808
1,,62I,373 2,670,000
6,315,000
1,000,000 300,000 5,637,303
930,760 260,000
(6,322,926)
(87,428) t73,741,15,800,438 3,552,133 3,395,815 5,637,303 (88,917)
-$.__G2?.t34 _!__l$!Jl!_ _!_l!664!1) _!_!9J_q2J9i_ _!_-A&qJ22I _$ (666,.!!1_!_lag$J2ql _$__(!,r0x912l _$ 2,8.u4_ _$ 425s.37s_
t0.24%g.7ga 8.49o/o 8.600/o L2.2lo/o 8.8s%12.74%t3.54%30.00%21.61%
CTTY OF PRATTVILLE. ALABAMA
SCHEDULE 5
NET TAXABLE SALES BY CATEGORY
2003 2004 200s 2006 2007 2008 2010 201 I 2012
$37,317,474 $40,062A14 $45,541,937 $,14,070,516 $44,057,973 $49,891,510 561,766,373 $72,438,'182 $81,049,639 $78,698,22874,336,M9 75,475,573 78,477260 79,tt9,351 75,830,662 70,L56,573 73,331,244 7t,839,635 77,704,211 76,108,625
93,894,984 96,34t,702 90,016,728 78,357,966 74,734,128 65,384,586 46,030,674 58,984,572 61,159,678 62,669,770L,225,203 1,8 13,5 17 l,,512,332 I,512,272 I,855,136
50,107,828 57,047,006 59,626,869 63,443,394 62,844,097 s1,658,420 53,838,468 62,888,874 69,407,860 72,159,819
4,494,332 5,157,160 4,599,982 5,138,448 6,693,246 13,638,375 21,877,67'1 20,566,253 17,869458 17,145,730
31,644,832 37,'1s3,391 44,t64,704 44A91,167 36,036,047 48,684,662 39,460,896 39,128,465 4t,682202 40,414,350
5,838,760 6,428,097 8,639,890 9,765,852 1O,784,t93 21,761,093 22,983,026 22,447212 21,425,351 15,120,821
79,051,188 104,053,618 I I1,509,853 I18,363,518 149,544,076 256,892,888 244,770,686 262,697,325 266,079,295 253,682,787
$376,68s,467 $422,3t8,961 5442,5'77,223 $442,750,212 $460,524A22 $579,293,310 $565,872,561 $612,503,450 $ 639,889,966 $617,855266
2.s0%2.50%2.50%2.s0%2.s0%2.50%3.50%3 s0%
2009
\.to\
Apparel stores
Food stores
Automotive
Manufacturing machine
Restaurants
Home fumishings and appliances
Building matenals
Service stations
Other retail stores
Totals
City direct sales tax rate
Source: City's Finance Department.
2010
CITY OF PRATTVILLE. ALABAMA
SCHEDULE 6
SALES TAX REVENUE PAYERS BY CATEGORY
FISCAL YEARS 2OO3 THROUGHaOI?
20tl 20t2
NUMBER
OF TAX
PERCENTAGE PERCENTOF
OF TAX REMITTED NUMBER
TOTAL TAX BY TOP TEN OF
PERCENTAGE PERCENTOF
OF TAX REMITTED NUMBER
TOTAL TAX BY TOP TEN OF
PERCENTAGE PERCENT OF
OF TAX REMITTED
TOTALTAX BY TOP TENTAXTAX
FILERS LIABILITY LIABILITY TAXPAYERS FILERS LIABILITY LI.ABILITY T{CAYERS FILERS LIABILITY LIABILITY TNGAYERS
Apparel stores
Food stores
Automotive
Machine
Restaurants
Home furnishings and appliances
Building materials
Service stations
Other raail stores
Totals
17 $ [,810,970
8 1,795,991
27 294,923
25 11,342
90 1,572,222
L2 514,156
8 978,212
29 561,180
20 s 2.754.438
8 2,663,802
23 313,349
21 13,913
81 2,525,594
12 600.101
8 1,414,502
25 529,229
931 8,878,898
13.99o/o l0-30o/o
13.53% l2.l4o/o
1,.59o/o
0.07o/o
12.82o/o
3.O5o/o 2.23o/o
7.18o/o 6.410/o
2.690/o
45.O8o/o 6.15%0
12.84o/o
12.73Vo
2.09o/o
0.08o/o
ll.l,5o/o
3.650/o
6.94o/o
3.98o/o
46.54o/o
8.05o/o
11.83%
2.44o/o
6.22o/o
9.55o/o
17 $ 2.300.008
8 2,205.072
27 3 t5-798
2s 11.342
95 r,969,640
L2 507,095
8 1, [82,848
28 608,003
918 7,550,736
13.8Lo/o
13.24o/o
1.90o/o
0.07o/o
11.83o/o
3.05o/o
7.10o/o
3.650/o
45.35o/o
7.690/o
ll.97o/o
2.18%
6.20o/o
9.22o/o
1,180 $ 14,L04,419 100.000/o
2007
I,138 $ 16,650,542 100.00%1,1.29 $ 19,693,825 100.00%
{{
NUMBER
OF
PERCENTAGE PERCENTOF
OF TAX REMITTED NUMBER
TOTAL TAX BY TOP TEN OF TAX
PERCENTAGE PERCENTOF
OF TAX REMITTED NUMBER
TOTAL TAX BY TOP TEN OF
PERCENTAGE PERCENT OF
OF TAX REMITTED
TOTAL TAX BY TOP TENTAX
FILERS LIABILITY LIABILITY T$GAYERS RLERS LIABILITY LIABIUTY TA)GAYERS FILERS LIABILITY LIABILITY TA)GAYERS
TAX
13 $ l,101,449
7 L,895,767
26 373,671
10 161,331
8 900.901
28 269,605
Apparel stores
Food stores
Automotive
Machine
Restaurants
Home furnishings and appliances
Building materials
Service stations
Other retail stores
Totals
75 1,571,102 15.680/o
9, [89
84 1,29I,461
t2 340,959
8 1.217.tl7
28 544.027
10.98% 1, [50 6,422,322
lO.99Vo
18.92o/o
3.73o/o
1.6',/o/o
8.99o/o
2.690/o
8.10olo
17.7lo/o
I.680/o
7.82o/o
ll.70o/o
13.89o/o
L.74o/o
4.L1o/o
7.48o/o
4.35o/o
46.39o/o
8.49o/o
12.25o/o
2.54o/o
6.74Vo
10.70o/o
l7
14 $ 1,247,288
7 1,753,914
25 326,923
9.48o/o
13.33Vo
2.49o/o
O.O7o/o
9.82o/o
2.59o/o
9.25o/o
4.14o/o
48.83o/o 12.48o/o
14 $ 1,544,159
8 1,833,281
24 230.153
6.OOo/o
12.56o/o
1.35o/o
1.35o/o
7.90o/o
22 13.601 0 .los/o
89 L-345-962 10.20o/o
L2 s46.942
8 986.522
30 574,576
980 6,119,2671,056 3,738,602 37.330/o
r,223 $ 10,018,428 100.00o/o 1,345 $ 13,153,200 100.00%1,187 $ 13,194,463 100.00%
2004
CITY OF PRATTVILLE. ALABAMA
SCHEDULE 6
SALES TAX REVENUE PAYERS BY CATEGORY
FISCAL YEARS 2OO3 THROUGH?OIZ
200s
PERCENTAGE PERCENT OF
OF TAX REMITTED NUMBER
PERCENTAGE PERCENT OF
OF TAX REMTTTED NUMBER
PERCENTAGE PERCENT OF
OF TAX REMITTED
Apparel stores
Food stores
Automotive
Machine
Restaurants
NUMBER
OF TAX TOTALTAX BYTOPTEN OF TAX TOTALTAX BYTOPTEN OF TAX TOTALTAX BYTOPTEN
FILERS LIABILITY LIABILITY TNGAYERS FILERS LIABILITY LIABILITY TAXPAYERS FILERS LIABILITY LIABILITY TA)EAYERS
9 $ 1.001,560 ll.6lo/o l0.45o/o 9 $ I,138,548 12.2*/0 ll.lsvo 9 $ I,101,763 ll.60Vo l0.3lVo
6 1.886.889 2t.a6yo 2t.780/o 6 t,96t,932 2t.r80/o zt.ltoA 6 t,977,984 20.AZo/o 20.550/0
30 4t1,709 5.58o/o 2.43o/o 31 450,084 4.860/6 2.82o/o 30 391,790 4-L2o/o l.sloh
{a
65 r.426.t7s r6.s2%70 L,490,672 16.090/o 69 1,586,085 16.690/00Irctuddi{r-d4!fiEB 7 r4rr9 l0 llt00 r.Zax l0 l2t,a6lBlinirr@irrr 6 tc.335 6 r,l04.lll 6 \llt2nt tt.tl* 10.7t*
Service stations
Other retail stores
Totals
28 160-702 1.860/o 30 215,997 2.330/o 30 244-146 2.57o/o
882 2,60I,340 ?O.l4oh 12.00o/o 943 2,787,746 30.Oy/o ll.93o/o 955 2,959,088 3l.l4o/o 11.8070
1,033 $ 8,631,139 100.000/o
2003
1,105 s 9,264,097 100.00%I,I 15 $ 9,501,596 100.00%
PERCENTAGE PERCENTOF
NUMBER OF TAX REMTTTED
OF TAX TOTAL TAX BY TOP TEN
FILERS LIABILITY LIABILITY TAXPAYERS
Apparel stores 8 $ 932,937 l2.37o/o ll.32o/o
Food stores 6 1,858,402 24.650/o 24.2to/o
Automotive 23 469,475 6.23o/s 2.9Lo/o
Machine
Restaurants 60 1,,252,696 16.620/o
Home furnishings and appliances 7 112,358 I.49%
Building materials 5 79l,l2l 10.49o/o 9.93%
Service stations 28 145-969 1.94o/o
Other retail stores 898 L,976,280 26"210/o l3.03o/o
Totals 1,035 $ '7,539,238 100%
Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented
are intended to provide alternative information regarding the sources of the City's revenue.
CITY OF PRATTVILLE. ALABAMA
SCHEDI.JLE 7
DIRECT AND OVERLAPPING SALES TAX RATES
FISCAL
YEAR
CITY
DIRECT
RATE
AUTAUGA
COTINTY
DISTRICT
TAX
STATE OF
ALABAMA
TOTAL
SALES
TAX
2003
2004
2005
2006
2007
2008
2009
2010
20tr
2012
FISCAL
YEAR
2,5yo
2.50h
2.50h
2.5%
2,50/o
2.5%
2,50/o
2s%
35%
3,50/o
CITY
DIRECT
RATE
ELMORE
COLTNTY
DISTRICT
TAX
4,000/o
4.000/0
4.000
4,000/0
4.000/0
4,jayo
4.00%
4.000/0
4,000
4,00%
STATE OF
ALABAMA
8,50h
8,50/o
8.5%o
8.50h
8,50h
8.50/o
8.50/o
8.5%
9.5%
9.50h
TOTAL
SALES
TAX
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2003
2004
200s
2006
2007
2008
2009
2010
20tl
20t2
2,50
2,50/o
25%
25%
25%
2,50/o
2.50/o
2,50h
3,50/a
3.50/o
r%
t%
t%
r%
t%
lo/o
r%
t%
t%
t%
t%
lo/o
t%
t%
t%
t%
t%
t%
t%
t%
4.00%
4,000
4.00%
4.00%
4.00vo
4,000h
4,000/0
4,00To
4.00%
4.00Vo
8.5%
8.s%o
8.syo
8,50/o
8.5%
8,50
8.5%
8,svo
9,sYo
95%
Sources: City Finance Department, Autauga County Revenue Commissioner's Office,
and Elmore County Department of Finance.
79
CITY OF PRATTVILLE. ALABAMA
SCT{EDULE 8
RATIOS OF OUTSTANDTNG DEBT BY TYPE
GO VERNMENTAL ACT IVITIES
FISCAL
YEAR
GENERAL
OBLIGATION
BONDS
TERM
LOAN
LIMITED
OBLIGATTON
WARRANT
|,594,489
1,594,489
L,594,489
1,594,489
1,594,489
1,580,851
BUS TNES S-TYPE ACTIVITIES
CAPITAL
LEASE
TOTAL
OTITSTANDTNG
DEBT
PERCENTAGE
OF TAXABLE
SALES (b)
4.r2%
3.88%
3.4lYo
10.08%
9.80%
t0.26%
10.81%
10.18%
8.40%
8.6|0/o
PERCENTAGE
OF TAXABLE
SALES (b)
0.46%
PERCENTAGE
OF TAXABLE
SALES (b)
4.r2%
3.88%
3.4t%
10.08%
9.80%
10.260/o
10.81%
10. l8%
8.40%
9.060/o
PERCENTAGE PER
OF PERSONAL CAPITA
INCOME (a) (a)
2003
2004
2005
2006
2007
2008
2009
2010
20tl
2012
FISCAL
YEAR
14,920,985
15,811,724
14,595,000
44,352,609
43,102,043
56,994,583
57,099,163
57 ,699,065
54,755,183
49,212,046
99,344
L ,025,708
[,803,956
1,755,709
701,035
588,921
588,956
486,973
294,946
437,O7l
761,348
1,445,462
1,239,844
748,347
88,562
15,509,906
16,400,680
15,08r,973
44,647,555
45,133,603
59,449,764
61,164,822
62,337,354
58,853,728
51,582,494
GENERAL
OBLIGATION
BONDS
TERM
LOAN
CAPTTAL
LEASE
TOTAL
OUTSTANDING
DEBT
2,728,474
r.29%
r.29%
l.l0o/o
3.04%
2.90o/o
3.62%
3.680/o
*
*
*
339
349
315
909
906
I,l8l
|,205
1,142
*
:t
339
349
315
909
906
1,18 I
1,205
|,142
*
*
2,490,000
LIMITED
OBLTGATION
WARRANT
PRIMARY GOVERNMENT
238,074
PERCENTAGE PER
OF PERSONAL CAPITA
INCOME (a) (a)
**
PERCENTAGE PER
OF PERSONAL CAPITA
INCOME (a) (a)
2012
FISCAL
YEAR
GENERAL
OBLIGATION
BONDS
TERM
LOAN
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
14.920,985
15,81 |,724
14,595,000
44,352.609
43,102.443
56,994,583
57 ,099,163
57,699,065
54,755,183
51,702,046
99,344
1,025,708
1,803,956
1,755,709
701,035
1,594,489
1,594,489
1,594,489
1,594,489
L,594,489
1,580,851
588,921
588,956
486,973
294,946
437,071
761,348
1,445,462
|,239,844
748,347
326,636
LIMITED
OBLIGATION
WARRANT
CAPTTAL
LEASE
TOTAL
OUTSTANDING
DEBT
15,509,906
16,400,680
15,081,973
44,647,555
45,133,603
59,449,764
6L,154,822
62,337,354
58,853,728
54,310,568
t.29%
1.29%
r.t0%
3.04o/o
2.90%
3.620/o
3.680/o*
*
*
Notes: Details regarding the City's outstanding debt can be found in the notcs to the financial statements.
(a) See the Schedule ofDemographics and Economic Statistics on page 84 for personal income and population data.
(b) See page 76 for net taxable sales.
I Information not available.
FISCAL
YEAR
CITY OF PRATTVILLE. ALABAMA
SCHEDULE 9
RATIOS OF NET GENERAL BONDED DEBT OUTSTANDING
LESS: AMOUNTS
AVAILABLE
DEBT SERVICE
FUND TOTAL
2003
2004
2005
2006
2007
2008
2009
2010
20tl
20t2
GENERAL
OBLIGATION
BONDS
PERCENTAGE OF
NET TAXABLE
S$LES (a) -
392Vo
3.68%
3,24Vo
9,360/0
9.070h
9.640/o
9.91o/o
9.41o/o
7 .820/o
8.630/0
PER
CAPITA
(b)
$ 323
331
299
844
839
I,109
1,105
I,056
,li
:lc
$ 14,920,985
I 5,8 11,724
14,595,000
44,352,609
43,102,043
56,994,5 83
57 ,099,163
57 ,699,065
54,7 55,183
51,702,046
$ 153,567
270,241
264,820
2,g12,lg4
1,3 I 5,527
l,l3 1,232
1,027 ,955
80, I 78
5
5
14,7 67 ,4 I 8
15,541,483
14,330,180
41,440,425
41,786,516
55,863,351
56,071,208
57 ,618,887
54,7 55,178
51,702,041
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(a) See page76 for net taxable sales.
(b) See the Schedule of Demographics and Economic Statistics on page 84 for population data,
* Information not available.
8l
CITY OF PRATTVILLE. ALABAMA
SCHEDULE IO
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 3O,2OI2
DEBT
OUTSTANDING
ESTIMATED
PERCENTAGE
ALPLICABLL(?)
ESTIMATED
SHARE OF
DIRECT AND
OVERLAPPING
DEBTGOVERNMENTAL LINIT
Debt repaid with properfy taxes: Autauga County
Subtotal, overlapping debt
City of Prattville, Alabama direct ieUt
$ 12,441,77 4
Total direct and overlapping debt
Sources: Assessed value data used to estimate applicable percentages provided by
Commissioner. Debt outstanding data provided by the Counfy.
47.23% $ 5,876,001
5 8,853,728
$ 64,729,729
-
the Autauga County Revenue
Notes: Overlapping govemments 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 borne by the residents and
businesses of the City of Prattville, 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
govemment.
(a) The percentage ofoverlapping debt applicable is estimated using taxable assessed property values. Applicable percentages
were estimated by determining the portion of the City's taxable assessed value that is within the Counfy's boundaries and
dividing it by the County's total taxable assessed value.
82
CMY OF PRATTVILLE. ALABAMA
SCHEDULE 1I
LEGAL DEBT MARGTN TNFORMATION
Debt limit
Total net debt applicable to limit
I-egal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
2003 2004
$ 40,847 ,972 S 42,639,348
13,006,339 | l ,845,439
s 27 ,841,633 $ 30,793 ,909
3t.84%27.78%
2006
$ 52,942,251
g.,153,937
$ 43,?88,314
17 .290
2007 2008
$ 58,58 |,532 S 67 ,654,684
9,853,367 9,649,304
s 48J28,165 $ 58,005,380
2009 2010
$ 69,779,924 S 7 |,725,164
11,690,201 14,415,694
$ 58,089,723 $ 57,309 ,470
2012
$ 71,386,868
9,818,857
$ 61,568,01t
t3.7 s%
2005
$ 45,1 88,970
10,899,363
$34,289,6W
24.12o/o t6.82%14.26%16.7s%20 r0%
201 I
$70,692,240
12,436,482
$ 58,255,?58
17 .590h
ooUJ
Legal Debt Margin Calculation for Fiscal Year 2012
Assessed value
Debt limit (20% of total assessed value)
Debt applicable to limit:
General obligation bonds
Notes payable
Lease payable
Less: Amount set aside for repayment
of general obligation debt
Total net debt applicable to limit
Legal debt margin
$ 356,934,340
$ 71,386,868
8,540,661
856,460
421 ,7 4l
#
$ 61,568,011
Notc Undd !r.i. bw, dc Ciry ofhFinc Abbdnl da$odirr g6qrl obligdio d.bt 3hdld mt dc..d 2C,a ofbnl.!s!d Flpary vd@ By L,, dE gaq.l dliliind.tt
bc o6.t bylfunt' *t aid.6( Fprying esE l ot'lieaim bod!.
CTTY OF PRATTVILLE. ALABAMA
SCHEDULE 12
DEMOGRAPHTC AND ECONOMTC STATTSTICS
CALENDAR
YEAR POPULATION
PERSONAL INCOME
(THOUSANDS
oF pOLLARS)
r,201,705
1,273,284
L,371,084
1,467,514
L,555,999
L,640,204
1,660,766
1,679,535
1,804,871
:N<
PER CAPTTA
PERSONAL
TNCOME
26,260
27,130
28,642
29,895
31,224
32,573
32,,72L
30,740
32,657
*
SCHOOL
ENROLLMENT
8,960 (02-03)
9,083 (03-04)
9,282 (04-05)
9,379 (05-06)
9,649 (06-07)
9,819 (07-08)
9,854 (08-09)
1,0,076 (09- l0)
9,877 (10-11)
9,825 (11-12)
AUTAUGA COUNTY
UNEMPLOYMENT
RATE
4.60%
4.30%
3.20o/o
2.900
2.90%
4.50Yo
8.600/o
8.00%
6.80%
6.80%
MEDTAN
AGE
oo5
2403
2004
2005
2006
2007
2008
2009
2010
zOtl
2012
45,762
46,933
47,870
49,105
49,834
50,354
50,756
54,57 L
55,267
*
36.10
36.46
36.26
36.16
36.37
36.69
:F
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 quart€r 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
ofthe school year.
* Unavailable
CITY OF PRATTVILLE, ALABAMA
SCHEDULE I3
PRTNCIPAL EMPLOYERS
EMPLOYEES
1,120
550
480
38s
250
200
l5l
95
87
80
3,3 98
20t2
EMPLOYER
PERCENTAGE
OF TOTAL CITY
EMPLOYMENT
7.3004
3.590
3.l3%o
2.5lYo
l,63Yo
1.300
0.ggoh
0.620h
0.5704
0.5204
22.15%
Autauga County Board of Education
International Paper
Wal-Mart
City of Prattville, Alabama
Pratfvi lle Baptist Hospital
Autauga County
Prattville Health and Rehabilitation
Kinedyne
LoneStar Plastics
M-Tek
Totals
Source: Prattville Area Chamber of Commeree.
Note: Information does not include government employment.
*Ninth previous year information not available.
Number employed in City at December 2012 was 15,340
per www2. labor.alabam a.gov ILAUS/LAUScities.pdf.
85
CITY OF PRATTVILLE. ALABAMA
SCHEDULE 14
FULL-TIME EQUTVALENT CITY
GOVERNMENT EMPLOYEES BY FTJNCTION
2003
3
7
7
6
I
6
2
l0
86
5
76
2
7
5
r8
29
26
2l
2004 2005 2006 2008 2009 2010 20tl 20t2?0Q7
5
7
7
4
4
4
aJ
9
85
7
85
4
4
l3
r8
28
25
23
5
7
8
4
4
4
aJ
l0
87
9
89
4
5
l3
22
28
26
24
FunctionlProgram
General government:
Executive
Legislative
Finance
Cify Clerk
Human resources
Judicial
Information techno I ogy
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
Source: Human Resources.
3
7
7
4
2
4
3
l0
88
5
8l
4
4
9
l8
27
23
22
4
7
7
4
2
4
aJ
l0
86
5
82
4
4
l0
t6
27
26
22
5
7
6
4
2,
4
3
9
87
5
75
5
4
9
l4
26
26
22
3
7
7
5
4
6
4
t2
90ll
89
4
4
t6
22
30
29
24
2
3
7
7
5
4
6
3
l0
92
9
88
4
4
l4
2l
29
28
24
2
3
7
6
2
4
5
I
6
85
7
84
8
9
7
28
25
2l
l5
2
2
7
6
3
4
6
I
6
8l
8
8l
7
9
7
28
23
l9
t2
I
317 321 323 313 335 352 369 360 325 3l I
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 officials as ofSeptember 30 each year.
86
CITY OF PRATTVILLE. ALABAMA
SCHEDULE 15
OPERATTNG TNDICATORS BY FLINCTTON/PROGRAM
@{
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 (miles)
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
2003 2404 2005 2006
313
18
6,537
3,283
105
3,531
6,199
96
2,291
3,000
2.54
t.67
38
18,500
2007
351 260
t7 26
8,727 7,493
317
3,302 3,252
89 77
3,942 6,398
6,449 7,026
143 r42
2,395 2,522
2,000 3,000
7
2.06
t.77
t.7 5
t.70
2010 20rl 2012
106 t28n8
3,142 3,51,2
147 212
3,208 2,208
373 259
6,450 4,460
5,221 5,673
113 75
2,725 2,846
2,000 1,500
282
26
2,988
320
4,425
5,191
t07
1,998
3,000
1.69
1.65
35
16,000
367
27
2,955
274
4,454
5,547
135
2,229
2,000
9
1.82
1.49
37
17,500
1.60
1.90
r.72
1.90
39 4I
20,000 25,000
106 13 5
17 10
6,472 3,658
t77 149
2,651 3,035
t43 348
7,914 6,299
4,989 5,199
132 I 15
3,772 2,996
3,000 2,000
3
2.35 2.18
r.99 1.87
44 45
28,000 29,000
46 49
30,000 32,000
2008
173
1,6
7,455
325
3,289
253
6,236
6,1 84
115
2,766
2,000
8
1,90
1.88
42
27,004
2009
CITY OF PRATTVILLE, ALABAMA
SCHEDULE 16
CAPITAL ASSET STATISTICS BY FLINCTION/PROGRAM
2003 2004 2005 2006 2007 ?008 209e 2010 20tl 20t2
Function/Program
Public safety:
Police:
Stations
Patrol cars
Motorcycles
Fire
Stations
Fire Engines
Ambulances
Refuse collection
Collection trucks
Public works:
Streets (miles)
Highways (miles)
Streetlights
Traffic signal heads
Cultural and recreation:
Acreage
Playgrounds
Basebal l/softball diamonds
Soccer fields
Community centers
Senior citizens center
Sources: Various City departments.
I
65
ll
3
5
6
t2
330
9
l6
9
2
I
I
65
1l
3
6
6
t2
330
9
l6
9
2
I
I
70
ll
3
6
6
ll
330
9
l6
9
2
I
I
66
l0
3
6
6
t2
330
9
l6
9
)
I
I
66
ll
3
6
6
l4
330
I
l6
9
2
1
I
7l
ll
3
6
7
l5
330
9
t6
9
2
I
I
8l
l1
3
6
7
l5
354
l0
l6
I
2
I
I
82
ll
3
7
7
l5
354
l0
t6
9
2
I
ll
8l 84
99
33
77
77
15 15
249 209
23 23
2,450 2,450
270 270
3s4
l0
t6
9
2
I
354
l0
l6
9
2
I
Notes: No capital asset indicators are available for the general government.
88