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FY14 Comprehensive Annual Financial Report - City of PrattvilleCITY OF PRATTVILLE, ALABAMA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2OI4 COMPREHENSIVE ANNIJAL FINANCIAL REPORT Prepared by: Department of Finance Douglas C. Mosel.y, CGMA, CITP, CISA, CPA Finance Director TNTRODUCTORY SECTION CITY OF PRATTVILLE, ALABAMA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 3O,2OI4 TABLE OF CONTENTS PAGE 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 I - 3 Management's discussion and analysis 4'l4 i-iii a aaalv - vlll lx X xi BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of net position Statement of activities Fund Financial Statements Balance sheet - governmental funds Reconciliation of balance sheet of governmental funds to statement of net position l5 l6 t7 l8 Statement of revenues, expenditures, and changes in fund balances - governmental funds 19 Reconciliation of statement of revenues, expenditures, and changes in fund balances of governmental funds to statement of activities 20 Statement of revenues, expenditures, and changes in fund balances - budget and actual general fund 2l '24 Statement ofrevenues, expenditures, and changes in fund balances - budget and actual capital projects fund 25 CITY OF PRATTVILLE, ALABAMA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 3O,2OI4 TABLE OF CONTENTS (Continued) II. FINANCIAL SECTION (Continued) PAGE Statement ofrevenues, expenditures, and changes in fund balances - budget and actual debt service fund Statement of revenues, expenditures, and changes in fund balances - budget and actual gas ta,\ special revenue fund REQUIRBD SUPPLEMENTARY INFORMATION Schedule of funding progress of the City's defined benefit pension plan Statement ofrevenues, expenditures, and changes in fund balances - budget and actual judicial special revenue fund 28 Statement of net position - proprietary funds 29 Statement of revenues, expenses, and changes in net position - proprietary funds 30 Statement of cash flows - proprietary funds 3l Notes to Financial Statements 32 - 67 26 27 68 Schedule of funding progress of the City's post-employment benefits other than pensions 69 III. STATISTICAL SECTION Financial Trends Schedule 1 Net position by component 70 Schedule 2 Changes in net position 7l -'12 Schedule 3 Fund balances of govemmental funds 73 CITY OF PRATTVILLE. ALABAMA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2014 TABLE OF CONTENTS (Continued) III. STATISTICAL SECTION (Continued) Schedule 4 Changes in fund balances of goverrrmental 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 12 Demographic and economic statistics Schedule 13 Principal employers Operating Information Schedule 14 Full-time equivalent city government employees by function Schedule l5 Operating indicators by function/program Schedule l6 Capital asset statistics by function/program PAGE 74 75 76 - 77 78 79 80 8l 82 83 84 85 86 87 llt   iv        February 23, 2015    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, 2014 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.    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 65, establishes accounting and financial reporting standards that reclassifo, as deferred outflows of resources or deferred inflows or resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities GASB Statement 70, requires a government that extends a nonexchange financial guarantee to recognize a liability when qualitative factors and historical data, if any, indicate that it is more likely than not that the government will be required to make a payment on the guarantee. City Profile The City of Pratwille 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 35,229. The City of Prattville operates under a Mayor/Council form of government with a fiscal year from October 1" 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 culturalevents. 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, and Special Revenue 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 local economy. 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. o O a O o Vi Budget amendments are effected by resolutions enacted by the governing body when needed. Activities of the General Fund, Debt Service Fund, and Special Revenue 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 carryover." 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 15% of the total expenditures and other financing uses. Awards and Acknowledgements During 2012 the City of Prattville won Coca-Cola's America's Favorite Park contest. The prize for the contest was a 5100,000 grant to be used for a project within the park. During the 2013 Fiscal year the city used the funds to construct a splash pad for all citizens to enjoy. During 2013 the Alabama Policy Institute ranked Prattville number 6 out of 50 cities in their Overall Business-Friendly Ranking. This was based on economic vitality, business tax burden, community allure, and transportation infrastructure. Prattville was ranked #1 on community allure based on our cost of living, per capita violent crime rate, high school graduation rate and SAT averaged reading and math scores. Two bronze medals were awarded to the City of Prattville for action taken to improve access to healthy affordable food and increased opportunities for physical activity. These medals were awarded because of Prattville's achievements in collaborating with other agencies on early care and education programs and for also having at least 60/o of public schools participating in the School Breakfast Program. vrl Other lnformation lndependent 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); and 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, Information 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. Respectfully submitted, Dougfas C. Moseley, Finance Director vf rl LIST OF PRTNCIPAL OFFICIALS AS OF SEPTEMBER 30, 2OI4 Mayor CITY COUNCIL Willie Lee Wood, Jr., President Albert Striplin, President Pro Tempore Jerry Starnes Clyde Chambliss HEADS OF DEPARTMENTS Municipal Court City Attorney City Prosecutor City Clerk Finance Director Engineering Public Works Police Fire Parks and Recreation Human Resources Information Technology Planning Bill Gillespie, Jr. Denise Brown Ray Boles Lora Lee Boone Judge Louis C. Colley David McDowell Robert E. Riddle Cathy Dickerson Douglas C. Moseley Robby Anderson Randall Lucas Chief Mark Thompson Chief Terry Brown Kellie Cook Lisa Thrash Douglas C. Moseley Joel Duke lx Citizens of Prattville City Judge Information Technology Finance Human Resources Benefits Management Judicial Public Safety Parks & Recreation Sanitation- Enterprise Fund Urban Management City Clerk Authorities, Boards & Commissions Wastewater- Enterprise Fund Performing Arts Engineering Planning & DevelRpment 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 Division Codes & Standards EMS Fire Marshal Fire Suppression Fire Training Police Fire Recycling Code Enforcement GIS Policy or Judicial Authority Department Department Division Legend: City Attorney Street Division Business Licenses Revenue General Government Performing Creative Arts & Recreation Adult Programs & Sports Park Maintenanace Senior Programs Youth Programs & 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BRECKINRIDGE LN MOSSY O AK RD G B R A N D Y LN COLE M A N W A Y JA M E S TO W N DR CAR GILLS T MILL E R T R C E I 65 N O N R A MP LIPSCOMB CT WIND MILL DR OLD MILL W Y LONG FIELD D R MIL L V ILL A G E LN LANCELOT CIR HE AR T HS TON E D R VIN TAGE W Y HILL ST HA MPS T EA D ST SEAMON ST MARSHALL DR RIDGE TER CHA L LE N G E AVE I 6 5 S O FF RA MP ISOM ST GATOR HILL DR GRE E N C R E S T ST DUNDEE DR M A LO NE CT CHERO K E E D R MAL W EST D R HARE CIR NOR RIS RD ESWICK DR HUGHES ST FIVE A S H OA KS CO TT AG E L N AUBURN RD SA R A LN BE L L E M AI SON FAULK AVE CO T TON EXCG IVEY CT PATTILP GAWAIN DR RUFUS RD VALLEYVIEW RD DANYA CT DUNN LN MEHARRY ST MET S CT TO BY LN BEVERLY AVE WEDG EW OO D C T NISBETT CT ROL L A N AV E CONE ST DOSS CT HWY 82 W £¤82 £¤82 OP14 OP14 OP14 IJ4 IJ29 IJ85 £¤31 §¨¦65 §¨¦65 IJ47 IJ59 IJ10 IJ80 IJ41 IJ27 OP14 STREETS CITY LIMIT μ 012340.5 Miles CITY OF PRATTVILLE, 2014 xi FINANCIAL SECTION JAC www.JAcKsoNTHoRNToN.coiA I n rnorEssroNAl coRpoRATroN KS,3 N THORNTON I crnmrED puBlrc AccouNTANT$ | coNsuLTANTs olaaaf o.alttarllffat.alflo..atlfa.of.olo. raaaao TNDEPENDENT AUDITOR'S REPORT The Honorable Mayor and Members ofthe City Council City of Prattville, Alabama Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business- type activities, the discretely presented component units, each major fund of the City of Prattville, Alabama (the City), as of and for the year ended September 30,2014, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table ofcontents. Management's Responsibiliqv for the Firiancial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement" whether due to fraud or enor. Auditor' s Responsibility 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 from 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 involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. ln making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component units, eaoh major fund of the City of Prattville, Alabama, as of September 30, 2014,and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund, Capital Projects Fund, Debt Service Fund, Gas Tax Special Revenue Fund, and the Judicial Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle As described in Note 17 to the financial statements in 2014 the City adopted new accounting guidance, GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. Our opinion is not modified with respect to that matter. Other Matters Required Supplementary Information 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 City's defined benefit pension plan and post-employment benefits other that pensions on pages 4 through 14 and pages 68 and 69 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 Accotmting 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 Americ4 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. Other Information 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 and statistical section are presented for the purposes of additional analysis and are not a required part of the basic financial statements. The inhoductory section and statistical schedules have 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 them. Other Reporting Required by Government Auditing Standards In accordance with Governmental Auditing Standards, we have also issued our report dated February 23,2015 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, confacts and grant agreementsn 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 perfiormed in accordance with Govemnental Auditing Standards in considering City of Prattville, Alabama's internal control over financial reporting and compliance. {rrl,r*M4Co, Pc Prattville, Alabama February 23,2015 MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the City of Prattville, Alabama, we offer readers of the City's financial statements this narative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2014. 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 CiW's financial statements. Financial Highlights o The City of Prattville, Alabama's assets exceeded its liabilities at September 30,20l4,by $21,141,997 (net position). Of the net position balance amount ($20,858,312) (unreshicted net position) is the deficit balance of the City representing the indebtedness incurred for incentive obligations including the purchase of development properly supporting the significant retail development activities within the City which originated in the fiscal years ended 2006 and 2008. o Durtng the year, the City's total net position increased by $7,752,134, asrevenues of $43,2L2,769 exceeded expenses of $35,460,635. The increase in revenue is due to the increase in sales tax revenue and increase in charges for services. Expenses increased slighfly due to employee raises and Capital Expenditures. o Under the Government Accounting Standards Board Statement Number 45, Accounting and Finmcial Reporting by Employeesfor Post-Retirement Benefits Aher thot Pensions (GASB 45), the City recognired an expense of $367,925 in the cunent year to record unfunded OPEB obligation. o As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $13,210,253. There was an increase of $4,986,350 from the prior year. Overyiew 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 fmancial condition of the City of Prattville, Alabama. Government-lVide X'inancial 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 position and a statement of activities. These statements included the City's three component units, the Autauga-Prattville Public Library (the Library), the Prattville Airport Authority (the Authority), and the Historic Prattville Redevelopment Authority (I{PRA), which are separate legal entities. Although legally separate, these component units are important because the City is financially accountable for them. Complete financial statements of the Library and the Authority can be obtained at their adminisfrative offices located in Prattville, Alabama. The statement of net position presents information on all of the CrU's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the Crty's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses ar€ reported in this statement for some items that will only result in cash flows in future fiscal periods. Both statements distinguish functions of the City of Prattville, Alabama that are principally supported by sales taxes, property taxes, and gasoline taxes (govemmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (bwiness-t1tpe 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. X'und 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 contol 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 demonshate compliance with finance- related legal matters. All of the funds of the City of Prattville, Alabama are govemmental 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 ou! 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 accotmting, 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. Information is presented separately in the govemmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance of the major funds. The City adopts an annual appropriated budget for its general fund, gas tax special revenue fund, capital projects fund debt service fund, and judicial special revenue fund. A budgetary comparison statement has been provided for these funds to demonstrate compliance with these budgets. 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 fwds 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 departrnents. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal funds to account for its employees' medical insurance. The internal service fund is presented, in total, in the fund financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Sanitation and the Wastewater departments, which are considered to be major funds of the City of Prattville, Alabama. Notes to the X'inancial Statemenb 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 32 through 67 of this report. Government-Wide Financial Analysis The City's condensed statement of net position as of September 30,2014 and20l3, derived from the government-wide statement of net position is presented below. GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES Current and other assets Capital assets, net of depreciation Restricted assets Total assets Deferred outflows Total assets and deferred outflows Long-term liabilities outstanding Other liabilities Total liabilities Net position: Net investment in capital assets Restricted Unrestricted (deficit) Total net position 36,578,653 36,021,544 4,402,643 I ,019,01 3 901 ,190 4,236,099 40,981 ,296 40,257,643 1,019,013 901,190 TOTALS 20t4 20t3 2014 2013 2014 20t3 $ 1s,071,256 $ 11,496,718 $ 3,690,576 $ 2,985,8% $ 1E,761,832 I 14,482,614 48,411,132 48,603,73s 7,097,763 7,322,3ffi 55,508,E95 55,926,095 1,329,510 476,003 1,329,510 476,003 64,811,898 60,576,456 10,788,339 10,308,256 75,600237 70,884,712 889,990 889,990 65,701,E88 60,576,4s6 10,7E8,339 10,3O8,2s6 76,490227 70,884,712 49372,412 s0,s72,0s7 2,880,037 3,294,831 s2,252A49 53,856,888 2,87t,964 2,332,645 223,817 2s8,2s0 3,09s,781 2,590,895 52,244,376 s2,904,702 3,103,854 3,553,081 ss,148230 56,4s7,783 (u,r40,rs4) (30,215,385) 3,28r,842 2,446,4rs Q0,8s8,312) Q7,768,970) $ 13,4s7,s12 S 6,707,349 $ 7,684,485 S 6,682,s14 $ 21,141,997 $ 13,389,863 The largest component of the Crty's net position as of September 30, 2014 reflects its invesffient in capital assets (i.e. land, buildings, furniture and equipment infrastucture, 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 invesfinent in its capital assets is reported net of related debl 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 30,2014 decreased by $192,603 from the prior year primarily due to the amount of current year depreciation being greater than the amount of current year additions. As noted earlier in this discussion, changes in net position over time can be one of the best and most useful indicators of the CrE's financial position. The City of Prattville, Alabama's total assets exceeded liabilities by $21,141,997 . The City's net position increased by $7,752,134 during the current fiscal year primarily due to increasing revenues and overall continued contol over expenses. The City saw an increase in sales tax revenues of$619,267 during the current fiscal year. A portion of net position is resfricted, or has restrictions on how they may be used. Governmental activities reshicted net position totaled $1,019,013 at September 30,2014 and is resticted for use in public safety, capital projects, road projects, and judicial. The remaining balance of unrestricted net position generally may be used to meet the City's ongoing obligations. The City, at September 30, 2014, reported a deficit balance in unresticted net position in governmental type activities of ($24,140,154). The large negative unresticted net position 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 unrestricted net assets of $3,281,842 at September 30, 2014. The following presents the City's condensed statement of activities for the fiscal years ended September 30,2014 and 2013 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 position of the primary government increased by $7,752,L34. This increase is primarily due to an increase in general sales tax, use tar<, restaurant targ lodging ta:q and rental tax; as well as continued conhol over expenses. CITY OF PRATTVILLE, ALABAMA STATEMENT OF ACTIVITIES GOVERNMENTAL ACTIVITIES BUSINESS.TYPE ACTIVITIES Revenues: Program revenues: Charges for services Operating grants, capital grants, and confributions Total program revenues General revenues: Sales and use ta:res Real and personal property ta:<es Iodgng ta:<es Local gasoline talres Alcoholic beverage taxes Rental ta:res Tobacco taxes Excise taxes Invesfinent earnings Miscellaneous revenue Gain (loss on disposal of assets) Total general revenues Total revenues Expenses: General government Public safety Public works Culture and recreation Debt service Sanitation Wastewater Total expenses Increase in net position before fransfers Transfers Increase in net position Net position - beginning Net position - ending 21,221,765 20,602,498 2,690,055 2,651,051 1,647,626 1,201,424 941,261 906,939 408,900 311,045 346,089 3l5,l9l 134,656 142,723 65,949 70,817 164,964 69,467 359,099 625,501 54,747 TOTALS 2014 20t3 20t4 20t3 20t4 20t3 $ 7,460,639 $ 7,396A27 $ 6,181,365 i 6299,512 | r3,642,W $ 13,6e5,939 1,48E,058 4,865,750 30,401 1y'8t,05E 4,896,151 8,948597 12262,177 6,181,365 6,329,913 15,130,62 18,592,090 5,055 42,541 21,221,765 20,602,498 2,690,055 2,651,051 1,647,626 1,201,424 941,261 906,939 408,900 311,045 346,089 315,191 134,656 142,723 65,949 70,817 164,964 69,46',1 3,449 364,154 628,949 91,288 28,035,1I I 26,896,656 47 ,596 3,448 28,082,707 26,900,104 36,983,80E 39,158,833 6228961 6,333,361 43,212,769 45,492,194 7,2s0279 6,649,800 7,250279 6,649,800 14,w4,661 l4,ll5,9ll 14,094,61 l4,ll59ll 5,180,698 3,703J6r 5,180,69E 3J03:t6l 1,980,775 1,830,376 1,9E0,775 1,830"376 r,727232 r97r901 r,727232 r97r9w 2,463,31s 2,230,497 2,63315 2230,4n 2,763,675 2,770,077 2,76357s 2,770p77 30,233,645 28,271,75s 5,2268n 5,000,5?4 3s,4fi,635 33272,129 6,750,163 10,887,078 1,001,971 1,332,787 7,752,134 12,219,865 (200,000) 200,000 - 6,750,163 10,687,078 1,001,971 1,532,787 7,752,134 12,219,865 6,707349 (3979,729) 6,682,sr4 s,r49,727 13,389,863 1,16e,998 ] r3,4s7,st2 ] 6,707,349 $ 7,684,485 $ 6,682,514 g 21,141,997 3 13389,863 9 Expenses and Program Revenues for Governmental Activities Governmental activities increased the City of Prattville, Alabama’s net position by $6,750,163 for fiscal year 2014. The key elements of the increase in net position are the increases in revenue and the decreases in expenses from the prior year as follows:  No donated infrastructure is included in total program revenues which decreased from donated infrastructure in the prior year by $3,396,290.  Sales tax revenue increased by $1,215,609 compared to the prior year amount of $23,550,637.  Public works expenses increased by $1,476,937 due to salary increases and capital expenditures. - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 General government Public safety Public works Culture and recreation Interest on long-term debt Expenses and Program Revenue - Governmental Activity 2014 Expenses 2014 Revenues 2013 Expenses 2013 Revenues 10 Program and General Revenues for Governmental Activities 20% 57% 7% 5%3% 1% 1% 0% 0% 4% 1% 1% 0% Revenues By Source - Governmental Activities - FYE 2014 Charges for servicesSales and use taxesProperty taxesLodging taxesLocal gasoline taxesAlcoholic beverage taxesRental taxesTobacco taxesExcise taxesGrants and contributionsMiscellaneousInvestment earningsGain on disposal of assets 19% 53% 7% 3% 2%1% 1% 0%0% 12%2% 0% Revenues By Source - Governmental Activities - FYE 2013 Charges for services Sales taxes Real and personal property taxes Lodging taxes Local gasoline taxes Alcoholic beverage taxes Rental taxes Tobacco taxes Excise taxes 11 Expenses and Program Revenues for Business-Type Activities Business-type activities increased the City of Prattville, Alabama’s net position by $1,001,971. Key elements of this change in net position are as follows: • Capital grants and donations for the Wastewater fund decreased by $30,401. • Wastewater expenses remained consistent with prior year. Wastewater revenue was slightly lower compared with prior year partially due to lower sewer impact fee revenue. • Sanitation expenses increased $232,818 due primarily to increases in cost of sales expenses and increased operating expenses. - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 Sanitation Wastewater Expenses and Program Revenue - Business-Type Activity 2014 Expenses 2014 Revenues Financial Analysis of the City’s Funds As noted earlier, the City of Prattville, Alabama uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds - The focus of the City’s governmental funds is to provide information on near- term inflows, outflows, and balances of expendable resources. Governmental fund types include general, debt service, capital projects, and special revenue funds. Such information is useful in assessing the City’s financing requirements. Specifically, unassigned fund balance can be a useful measure of a government’s net resources available for spending at the end of the fiscal year. The general fund is the chief operating fund of the City of Prattville, Alabama. As of September 30, 2014, governmental funds reported a combined ending fund balance of $13,210,253, an increase of $4,986,350 in comparison with the prior year balance. Of this balance $117,003 is not available for new spending because it is a prepaid item; $1,019,020 is restricted for public safety, road projects, capital improvements, and judicial; $5,160,875 is committed to debt service and capital projects; and $1,270,344 is assigned for industrial park improvements, fire training, debt service, and other purposes. The fund balance of the general fund increased $4,350,576 during the current fiscal year after other financing sources including fund nansfers. Total revenue increased $699,305 as compared to the prior year primarily due to an increase in sales tax revenue. There was a decrease in net fransfers out of $1,802,165 primarily due to catching up on Group Health Fund funding in prior year. The fund balance of the capital projects fund increased $1,039,460 during the current fiscal year after other financing sources including fund nansfers primarily due to budgeted projects being held up and not completed. The fund balance of the debt service fund decreased $203,620 during the current fiscal year after other financing sources including transfers. This decrease in fund balance is the result of an interest payment in the amount of $203,619 for the 20I3A GO Refunding Warrants that was tansferred to the debt service fund but was not paid until after the prior fiscal year end. The fund balance of the gas tax special revenue fund decreased $246,181 during the current fiscal year after other financing sources including tansfers. This decrease in fund balance was the result of paving projects that occurred during the fiscal year. The judicial special revenue fund was established this year and closed the year with a positive fund balance of $46,115 due to the new budgetary perspective and oversight over these transactions. Proprietary funds - The City of Prattville, Alabama's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position of the proprietary funds at the end of the year amounted to $3,281,842. Tllre Sanitation fund had an overall operating income of $247,050 and Wastewater fund had an overall operating income of $1,245,212. Internal service funds - Internal service funds are designed to recover the internal costs of government services provided to other funds groups. At September 30, 2014, the internal service fund reported a surplus of $907,687 for its net position balance. For 2014, the Enterprise funds funded the exact allocation of costs. Capital Assets and Long-Term Debt Administration Capital assets - The City of Prattville, Alabama's inveshnent in capital assets for its governmental and business-type activities as of September30,2014 was $55,508,895 (net of accumulated depreciation). This investnent in capital assets includes land, ffiastrrcfure, buildings, improvements, construction in progress, vehicles, and machinery and equipment. Major capital asset additions during the year include: Purchase of equipment of $71 1,5 13. Purchase of vehicles of $488,257. Purchase of land of $327,532. Purchase of land improvements of $240,956. T2 CITY OF PRATTVILLEO ALABAMA CAPITAL ASSETS GOVERNMENTAL BUSINESS-TYPE ACTIVITIES ACTIVITIES TOTAL Land $ Constnrction in progress Buildings and building improvements Land improvements Vehicles Office, nonoffice, and computer equipment Infrastructure 2,649,938 $ 779,845 5,164,67 | 5,189,208 4,866,188 5,521,925 45,125,739 1,257,A19 73,988 5,889,762 3,221,430 1,693,576 1,809,807 $ 3,906,957 853,833 I I,054 ,433 8,410,638 6,559,764 7,331,732 45,125,739 Total 69,297,514 $ 13,945,582 $83,243,096 Additional information on the CrE's capital assets can be found in Note 4 on page 43 of this report. Long-term debt - As of September 30,2014, the governmental activities had total debt outstanding of $49,372,412 and the business-type activities had a total debt outstanding of $2,880,037. Outstanding debt: Warrants and other notes payable Post-retirement benefits other than pensions Compensated absences Total $ 52,252,449 The City of Prattville, Alabama's total debt outstanding decreased by $1,614,439 during the current fiscal year. This decrease was the result of payments made in accordance with regularly scheduled maturity dates. Additional information on the City's debt can be found in Note 6 of the financial statements. The City issued $9,955,000 of general obligation refunding bonds to advance refund the Series 2007 general obligation warrants. Budgetary llighlights for the fiscal year ending September 3012014 Budget to actual statements and schedules are provided in the financial statements for the general fund and gas tax special revenue firnd. 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. $ 48,668,869 2,358,350 1,225,230 13 As of September 30, 2014, actual operating revenues for the general fund were more than the budgeted amount by $2,256,499, or 6.81%. The primary reasons forthe variance ane as follows: Grant income was $572,204 more than budgeted due to budgeting conshuction projects as net cos! therefore the grant reimbursement was not budgeted in revenue. Sales tanes were $758,652 more than budgeted due to increased sales primarily as a result of an overall improvement in economic conditions. As of September 30, 2014, actual operating expenditures for the general fund were less than the budgeted amount by $1,005,123, or 4.3I%. Economic Factors and Year 2015 Budget Economic conditions for the City of Prattville, 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 57Vo of general fund revenues in fiscal year 2014. In the current economic climate, the City has instituted a temporary increase to the Crty's sales tax rate to be used to service the City's debt and to build reserves. The unemployment rate for Autauga County, where the City of Prattville, Alabama is located, is currently 5.4Yo,which is a slight decrease compared to ttre prior year. The unemployment rate for the City of Prattville, Alabama is 4.7Yo. The unemployment rate compares favorably to the state's current unemployment rate of 6.6Yo and is higher than the national average rate of 5.9o/o. The level of taxes, fees, and charges for services have a direct bearing on the City's ability to (a) annex additional land into its corporate limits and (b) encourage development (office, retail, residential, and industrial) to choose to be located in the jurisdiction. The City places emphasis on encouraging both annexation and economic development. Requests for Information This financial report is designed to provide our citizens, taxpayers, customers and investors, and creditors with a general overview of the City of Prattville, Alabama's finances and to demonsfate the Crty's accountability. Questions concerning any of the information provided in this report or requests for additional financial inforrnation should be addressed to the CiE Clerlq 101 West Main Street, Prattville, Alabama 3 6067 . l4 BASIC FINANCIAL STATEMENTS THIS PAGE INTENTIONALLY LEFT BLANK CITY OF PRATTVILLE, ALABAMA STATEMENT OF NET POSITION SEPTEMBER 30, 2OI4 PRIMARY GOVERNMENT COMPONENT UMTS AUTAUGA-HISTORICAL GOVERNMENTAL BUSINESS.TYPE PRATTVILLE PRATTVILLE PRATTVILLE PUBLIC AIRPORT REDEVELOPMENT ACTIVITIES ACTIVITIES TOTAL LIBRARY AUTHORITY AUTHORITY ASSETS: Cash and cash equivalents Internal balances Toces receivable Accounts receivable, net Prepaid items Resticted assets: Cash and cash equivalents Capital assets, not depreciated Total assets DEFERRED OUTFLOWS: Deferred loss on refirnding LI.ABILITIES: Accounts payable Accrued liabilities Accrued interest Unearned revenues Other liabilities Long-term liabilities : Portion due or payable in one year: Creneral 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 DEFERRED INFLOWS: Nonexchange transactions NET POSITION: Net investment in capital assets Resfricted for: Law enforcement Road projects Capital projects Elmore Cotrnty district improvements Cultural and recreational Judicial Unrestricted (deficit) 466,716 589,139 487,440 4,420,000 1,627,993 6,047,993 197,030 88,608 285,638 41,553,749 1,067,127 42,620,876 843,283 96,309 939,592 61,498 211,394 452,304 237,931 12,340 43,546 466,716 14,816 589,138 48,300 487,440 1,329,510 L,329,510 3,429,783 1,331,007 4,760,790 Capitsl ssb, net of mmulated dcprcciation jr29l;]g_ 5,766,756 50,748,105 53,420 5,949,5U2 226,510 $ 1t,965,787 $ 3,529,868 $ 15,495,655 $ 264,217 $ 342,914 $ 72,574 432,808 (432,808) 2,234,629 2,234,629 321,029 572,618 893,647 2,778 31,535 165,002 117,003 20,898 137,901 55,812 2,686,646 183,500 64,811,898 10,788,339 75,600,237 320,415 _ 9,066,409 647,58,6 1,328,670 223,817 1,552,487 4,400 111,954 889,990 889,990 Total defmd oudlow 889,990 889,990 _ Total ssets md defered ou{low 65,?0I,EEE lO,?88,339 76A90,227 320,415 9,066,&9 e7,586 26,348 154,227 514,369 Post-€mploymmtbflefits 2,358,350 2,358,350 _ Total liabilitics 52,U4,376 3,103,854__!::33@ 6?,516 653,305 154,227 ll,l27 Total liabilitics rd defered inflow 52,244,376 3,103,854 55,34d.230 7E,e3 653,3os 154,227 36,578,653 4,402,643 40,981,296 53,420 8,002,239 255,783 61,498 211,394 452,304 237,931 12,340 43,546(24,140,154\ 3,281,842 (20,858,312) 188,352 410,865 237,576 Tot lnetDosition $ 13.457.512 S 7.684.485 S 21.141.997 S 241,772 S 8,413,104 $ 493,359 The accompanytng notes are an integral part of these financial statements. t5 CITY OF PRATTVILLE, ALABAMA STATEMENT OF ACTTVTIIES FOR TI{E YEAR ENDED SEPTEMBER 30, 2OI4 NET (EXPENSE) REVENLJE AIID CHANGES rN NET ASSETS PROGRAMREVENUE PRIMARY GOVERNMENT COMFONENT I.JNITSAUTAUGA. HISTORICAL FINES, FEES, OPERATING PRATTVILI,E PRATTVILLB PRATTVILLE ANDCHARGES EANTSAND CAPITALGRANTSAND @VERNMENTAL BUSINES9TYPE PTJBLIC ATR.FORT REDEVEIJOPMENT E'CENSES FORSERVICES CONTRIBLIIIONS CONTRIB(MONS ACTIVTIIES AqTIVITIES I1OTAL LIBRARY AUTflORITY AUruORITY ACTTVTIIES: Primary govemment: Govemmental activities : General govemment Public safety Public wonls Culturd and recreational Bus iness-type activities : Sanitation Wastewater $ 7,250,279 $ 5,499,15614,094,661 1,709,921 $ 71,025 $ 5,180,698 1,980,775 251,562 2,463,315 2,452,098 2,763,675 3,729,267 $ (1,751,123)60,000 (12,253,715)r,357,033 (3,823,665) (1,729,213) $ (1,751,123) (12,253,715) (3,823,665) (1,729,213\ Total busirrcss-b/pe activities 5,226,W 6,181,365 Total primary sovernm€nt _$_-llrjggg- _I_!,913J91_ $ ?1,025 j Compment units: fr Autauga-Pratwille Public Library $ 615,518 $ 34,484 $ 82,759O\ Prattville Airport Audrority 461,831 115,983 $ Historical Prattville Redevelopment Audrority 97,326 6t,734 Total component unie _$JJ-74f75_ _$___2t9291_ $ E2,759 _q (t,727,2321 (1,727,232\ r,4r7,033 (212U,9481 (21,284,948) _ $ (ll,2l7) (ll,2l7) 965,592 965,592954,375 954,375 l tT _ (21,284,948) 954,375 (20,330,573) $ (498,275) 452,788 $ 106,940 $ (28,592) 452,78E (498,275) 106,940 (28,592) Interest on long-term debt 1,727,232 Total govemmental activities 30,233,&5 7,460,639 71,025 Creneral revenue: Sales and use tal(6 Real and penural propertytaxes Iodging axes I-ocal gasoline taxes Alcoholic beverage taxes Rental tarces Tobacco hxes Excbe tores Investnrent eamings Miscellanous revenue Unrestictd appropricior from City/County Gain (lcs) on dispcal of asserc Total general re\€nues and tansfers CHANGE IN NET POSMON CI.JMI.JLATIVE EFFECT OF CHAI{GE IN AC COI.JNTING PRINCIPLE 21,221,765 2,6W,055 1,647,626 941,261 408,900 346,0E9 134,656 65,949 l6/.,9& 21,221,765 2,690,055 l,&'7,626 g4l,26l 40E,900 346,099 134,656 65,949t64,964 326 NET FGimON - BEGTNNNq AS ORGINALLY STATED 7,671,754 6,755,175 14,426,vt9 294,721 tJ06,164 397,651 359,099 5,055 3&,154 205 124,W5445,00054,747 42,541 97,28E 29,035,1I I 47,596 28,082,707 M5,326 124,300 6,750,163 1,001,971 7,752,134 (52,9491 106,940 95,708 (964,405) (72,66t\ (1"037.066) t{ET FOSrflON - BEGINNING, AS RESTATED 6,707,349 6,662,514 13,389,863 294,711 8,306.164 397.651 The accompanyng rmtes are an integral part of these finarrcial statements. NET POSMON - ENDING $ 13.457,5t2 $ 7,6U,485 $ 21,14t,997 $ 241,772 $ 8,413,104 $ 493,359::--:: CITY OF PRATTVILLE, ALABAMA BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30,2A|4 GAS TAX JUDICIAL CAPITAL DEBT SPECIAL SPECIAL PROJECTS SERVICE REVENUE REVENUE GENER+L FUNDS FL{NDS. - FUNq FqNP $ 9,685,440 $ 1,079,578 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 Due to other funds Total liabilities Fund balances. Nonspendable: Prepaid items Restricted for: Law enforcement Road projects Capital projects Elmore County district improvements Cultural and recreational Debt service Judicial Committed to: Debt service Capital projects Assigned to: Industrial Park Improvement fund Fire training Capital projects Capital equipment reserve Other purposes Unassigned Total fund balances Total liabilities and fund balances 2,234,629 216,471 542,521 114,704 24,581 $ 75,568 $ 4,409 2,299 TOTAL GOVERNMENTAL FUNDS $ | 0,765,01 8 2,234,629 321,029 542,521 l 17,003 I 17,003 61,498 211,394 452,304 237,931 12,340 7 43,546 4,855,104 305,771 694,291 26,387 93,782 140,595 315,289 348,192 415,881 $ !.5,71? 279,803 ,269r?17 1,3?9,510 .r3,!4r,es? _u2q,040__{_J-s,1r?__{J:13?.!_ _$ n9,eL $ =, lJf0e,ll? $ 927,341 $ 10,315 $ 15,710 $ 37,033 $ 45,189 $ 1,035,588 458,464 8,252 466,716 326,303 | 6l ,l 37 487 ,440 rorr r5rro## 114,704 61,498 36,423 41 5,88 I 237,931 12,340 4,855,104 305,771 694,291 26,387 93,782 140,595 301,856 2,299 2l | ,394 43,546 13,f63 270 5,643,01J --€- 5,613'0lln,4nw I@ , J n4,ss:-. Jg,tts Pato,213 $ rl,l4.l,e%_$.-u20,919_ $. ls,?r?__uq:g!_ _s ?9,f21 ;$=. ,, ll,3ge,?19, The accompanying notes are an integral part of these frnancial statements. l7 CITY OF PRATTVILLE. ALABAMA RECONCILIATION OF BALANCE SHEET OF GOVERNMENTAL FTJNDS TO STATEMENT OF NET POSITION SEPTEMBER 30,2OI4 Difrcrcnces in arnounts reported for govcmmcntal activities in the statem€nt ofnet position on page 15. Total fund balances - govemmental funds Capital assets used in govemmental activities arc not financial resourocs and, thereforc, are not reported in the govemmcntal funds. Those assets consist of: Land Constuction in progrcss Land improvements, net of $4,865,280 accumulated depreciation Buildings and building improvements, nct of $1,297,618 accumulated depreciation Offtce, nonoffice, and computer equipment net of$3,301,350 accumulated depreciation Vehicles, net of $3,513,836 accumulated depreciation Infrastucture,netof$7,908,288accumulateddepreciation i $ 2,649,938 779,845 323,928 3,867,053 2,224,565 1,352,352 37,217,451 $ 13,210,253 48,41 I ,132 947,687 (49,pZl,s69) $ 13,457 ,512 Total capital assets Intemal scrvicc funds are used by management to charge the costs of employce medical insurance to individual funds. The assets and liabilities of the intemal service fund are included in govemmcntal activities in the statement of net position. Long-tcrm liabilitics, including general obligation warrants payable and capital leases, arc not due and payable in the cuncnt period and, therefore, are not reported in the govemmental funds. Balanccs at September 30, 2014 were: Accrued int€rest on bonds 589,138 General obligation wanants and other notes payable 45,715,423 Defened loss on advance refunding (889,990) Unamortized debt issuance discounts (81,449) Unamortized debt issuancc prcmiums 339,775 Compcnsated absences 1,040,313 Post-employment benefit plans other than pen5ions 2,358,350 Total long-term liabilities Total net position of govemmental activities The accompanying notes are an integral part of these financial statements. l8 CITY OF PRATTVILLE, ALABAMA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2OI4 GAS TAX JUDICIAL CAPITAL DEBT SPECIAL SPECIAL PROJECT SERVICE REVENUE REVENUE GENERAL FUNDS FUNDS FUND FUND TOTAL GOVERNMENTAL FUNDS REVENUES: Taxes Licenses and permits Intergovernmental revenues Charges and fees for services Fines and forfeitures Interest Miscellaneous revenues Total revenues EXPENDITURES: Current: General government Public works Public safety Cultural and recreational Capital outlay Debt service: Principal payments Interest and fiscal charges Bond issue costs Total expenditures OTHER FINANCING SOURCES (USES): Insurance proceeds Transfers in Transfers out Issuance of refunding warrants Payment to refunded bonds escrow agent Bond premium Total other financing sources (uses) NET CHANGE IN FUND BALANCE FLIND BALANCE . BEGINNING FUND BALANCE. ENDING s 27,171,103 $ 285,198 5,499,156677,104 290,068 1,392,556 84,262 5,493,993 3,406,573 11,731,292 1,565,707 1,709,945 131,830 7,944 162,770 1,284 $ 3 193 164,250 316,979 5 356,984 35,343,930 576,555 3 491p,9 530,452 36,912,019 58,334 497,568 4,348,932 49,587 (7,004,404) (l) (13,559) 9,955,000 (10,067,843) $ 27,456,301 5,499,156 $ 460,886 1,428,058 1,392,556 $ 530,452 614,714 2,941,830 1,750,499 58,334 4,896,087 (46,500) (7,064,464) 9,955,000 (10,067,843) 206,625 437,837 5,931,830 34,662 7 43,288 4,184,523 11,731,292 1,565,707 1,709,945 2,810,000 1,742,555 24s47284 34soffiW Nw# Excess of revenue over (under) expenditures 11.,296,646 541 ,893 -(4,64q,334)(282,209)92,615 7,002,611 206,625 - (6,946,070) 497,567 __4?442,714 36,028 (46,500) (2,016,261) 4,350,576 1,039,460 (203,620) (246,181) 46,1l5 4,986,350 7,079,273 470,265 203,627 470,738 8,223,903 _$J,4 2:,,849_ _[-1, 5 09,? 2 5_$ 7 $ 224,557 $ 46,115 $ 13,210,253 The accompanying notes are an integral part of these financial statements. t9 CITY OF PRATTVILLE. ALABAMA RECONCILIATION OF STATEMENT OF REVENUES. E)GENDITURES, AND CHANGES INFI.JND BALANCES OF GOVERNMENTAL FUNDS TO STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2OI4 Differences in amounts reported for governmental activities in the statement of activities on page 16. Net change in fund balance - total governmental funds $ 4,986,350 Capital outlay, reported as expenditures in govemmental funds, is shown as capital assets in the statement of net position. 1,819,192 Donations ofcapital assets increasc net position in the statement ofnet position but do not appear in the governmental funds because they arc not furancial resourges. 60'000 Depreciation expense on govemmental capital assets included in the govemmental activities in the statement of activities. Q,070,323) The net effect offansactions involving the sale ofcapital assets is to decrease net assets in the statement of net position. Q,472) Revenues are reported in the funds when there is an established claim to the resources and the resources are available to finance cunent cxpendifures. Revenues are reported in the statemcnt of activities when there is an established claim with no availability criterion. (45,787) Loan proceeds provide current furancial resources to the governmental funds and thus conbibute to the change in fund balance. However, issuing debt increases long-term liabilities in the statement of net position: Retundingbondproceeds $ (9,955,000) Payment to escrow agent for refunding 10,067,843 112,843 The rbpaymcnt ofthe principal oflong-term debt consumes the cunent financial resources of governmentat funds, but has no effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar iterns when debt is first issue4 whereas these amounts are defened and amortized in the statement of activities. 2,941,830 (206,625\ 23,268 31,881 (367,925\ (3t2,77 6) (53,683) (s3,683) Intemal service funds are used by management to charge the costs of employce medical insurance to individual funds. The net income (expense) of certain activities of internal service funds is reported with governmental activities. (479'386) Change in net position of governmental activities -$-9J50're1- The accompanying notes are an integral part ofthese financial statements. General obligation warrants payable Bond issue premium Some expenses reported in the statement of activities do not require the use of cunent financial resources and, therefore, are not reported as expenditures in governmental funds: Accrued interest payable Compensated absences Post-employment benefit plans other than pensions Governmental funds report the effect of premiums, discounts and defened loss on refunding, whereas these amounts are deferred and amortized in the statement of activities: Amortization 2,735,205 20 CITY OF PRATTVILLE, ALABAMA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 3O,2OI4 BUDGETED AMOUNTS ORIGINAL FINAL $ 20,414,000 $ 20,414,000 ACTUAL AMOUNTS VARIANCE WITH BUDGETARY FINAL BUDGET. BASIS _POSITIVE Nqq4ilvE) REVENUES: Taxes: Sales taxes Real and personal property taxes Lodging taxes Local gasoline taxes Tobacco taxes Whiskey taxes Beer taxes Wine taxes ABC sales taxes Rental taxes Excise taxes Total taxes Licenses and permits: Business licenses Franchise fees Building permits and inspection fees Yard sale and special event permits Zoning and plat fees Total licenses and permits Charges and fees for services: Ambulance fees 30,090 303000 .2I,870,500 25,870,500 4,572,500 4,572,5A0 515,000 515,000 231,500 231,500 4,350 4,350 2,552,000 I ,l 85,000 890,000 145,000 53,000 225,000 l5,000 42,500 319,000 70,000- 2,552,000 I ,l 85,000 990,000 145,000 53,000 225,000 15,000 42,500 319,000 21,172,652 2,690,055 1,362,428 941,261 134,656 49,798 349,419 9,683 49,1l3 346,089 65,949 758,652 138,055 177,428 5 I ,261 ( t 0,344) (3,202) 124,419 (5,317) 6,61 3 27,089 35,949 27 ,l7l , 103 1.300.603 70.000 4,701,075 518,268 2l1,513 7,420 128,57 5 3,268 ( 19,887) 3,070 (9,220)60.780 5,393,350. 5,393,350 1,080,000 1,080,000 5,499,1 56 10s.806 1,140,994 251,562 60,994 14,907Recreation rentals 236,655 236,655 Total charges and fees for servir.r G f-ll{;ig! The accompanying notes are an integral part of these financial statements. 1,392,556 75"901 (Continued) 2l CITY OF PRATTVILLE, ALABAMA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 3O.2OI4 BUDGETED AMOUNTS ACTUAL AMOUNTS BUDGETARY BASISORIGINAL FINAL VARI,ANCE WITH FINAL BUDGET - POS REVENUES: (continued) Fines and forfeitures: Drug confiscation proceeds Penalties Total fines and forfeitures Intergovernmental revenue : Grant income Investment income: Interest Miscellaneous revenues : Accident reports County commission - RTJ Donations L"ambert properly tower Miscellaneous income Parades Performing and creative arts Sale of surplus equipment Sex offender registation fee Swimming pool concessions Total miscellaneous revenues Total revenues 55,621 $ 15,000 $ 15,000 28.64r 15,000 15,000 84,262 50,000 50,000 r04.900 677 104 104.900 677 104 t62-770 162.770 55,621 13.641 6e262 572,204 572,204 t4l 770 t4l 770 9,000 50,000 75,000 18,060 47,899 3,500 18,700 48,000 600 9,000 50,000 75,000 18,060 136,97 | 3,500 18,700 48,000 600 9,132 50,000 76,205 19,410 107,650 3,735 26,223 56,220 832 356,979 132 1,205 1,350 (29,321) 235 7,523 8,22A 232 1,3726,200 6,200 7,572 276,959 366,031 32,943,4& 33,087,436 (9,052) 35.343.930 2,256,494 (Continued) The accompanying notes are an integral part of these financial statements. 22 CITY OF PRATTVILLE, ALABAMA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FI,JND BALANCES BUDGET AND ACTUAL GENERAL FI.JND FOR THE YEAR ENDED SEPTEMBER 30, 2OI4 BUDGETED AMOI.JNTS ACTUAL AMOTJNTS VARIANCE WITH BUDGETARY FINAL BUDGET. ORIGINAL FINAL BASIS POSTTIVE (NEGATIVE) EXPENDITURES: General government: Executive Legislative Administrative finance Administrative city clerk Human resources Information technol ogy Vehicle maintenance Sales ta:r incentives Building City/County services Community initiatives Appropriations Total general government Public works: Planning and development Urban management Engineering Facility maintenance Total public works Public safety: Police Fire Total public safety Cultural and recreation : Parks and recreation Performing and creative art Total cultural and recreation Capital outlay Debt service: Principal Interest Total debt service Total expenditures Excess of revenuss over expenditures 1,022,664 1,022,664 246,500 165,247 541,322 186,948 269,799 382,065 970,000 68,507 360,000 726,334 $ 246,500 165,247 558,699 186,948 269,799 382,065 970,000 68,507 423,510 728,834 247,601 134,549 634,162 174,396 235,279 1,047 ,824 345,901 946,737 40,797 436,843 738,370 ( l,l0l ) 30,698 (75,463) 12,552 34,520 (25,160) 36,164 23,263 27 ,7l0 (13,333) (9,536) s40.000 s40.000 s40.000 5,479,386 5,562,773 5,522,459 . . 40,311 1,127 ,575 I ,354,71 5 1,201,427 243,700 3,927,417 1,152,575 1,354,715 1,260,127 1,254,468 1,215,464 974,234 ( l0l ,893) 139,251 285,893 2!3,700 _ 149,5154,0,11,117, 3,5.?3,681 94. I 85 4t7.436 1,7 57 ,976 1,757 ,976 I ,557,303 6,233,282 6,207,264 _ 5,794,061 5,794?A6l 1,2,027 J43 12,001,325 , 1,600,625 1,600,625157,351 I 57,351 972,768 1,428,960 156,805 156,805 __9,257 -,p,25'l_165.L062 ,161'962 _ 24,329,??2 24,?27,213, 8,61 3,5 12 8,160,223 5,944,146 5J96255- ,-, ,. (2,194\ r I .740.401 260.924 1,433,357 167,268 123.946 33.405 2A4,673 640-424 (?t.t\494) l3l,830 24,975 3137,944 139.774 25,28p t94.M2 733 ll 149.888 2.989.665 (Continued) 263,1 l 8 t7r The accompanying notes are an integral part of these financial statements. 23 CITY OF PRATTVILLE, ALABAMA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 3O,2OI4 BUDGETED AMOUNTS ACTUAL AMOUNTS BUDGETARY BASISORIGINAL FINAL VARIANCE WITH FINAL BUDGET. POSITIVE (NEGATTVE\ OTHER FINANCING SOURCES (USES): Insurance proceeds Transfers to debt service fund Transfers to internal service fund Transfers to capital improvement fund Transfers to gas tax fund Total other financing uses Net change in fund balance, budgetary basis $ (2,106,350) $ (2,1 I 2,014) 58,334 (4,348,930) (2,121,877) (484,01 0)(4,000) (4,000\ (49,581) (2,1 I 0,350) (2,1 16,014) (6,946,070\ 58,334 (4,348,930) (9,963) (484,010) 4,203,918 $ =(1,840,39D 146,7 58 t46.7 58 s 6,503,162 $ 6,044,209 Adjustment for reconciling items to adjust from budgetary basis to modified accrual basis: Change in encumbrances NET CHANGE IN FUND BALANCE, MODIFIED ACCRUAL BASIS FUND BALANCE - BEGINNING FUND BALANCE. ENDING The accompanying notes are an integral part of these financial statements. 4,350,576 7 ,079,273 I I ,429,849 (4,830,058) 24 CITY OF PRATTVILLE, ALABAMA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FTJND BALANCES BUDGETANDACTUAL CAPITAL PROJECTS FUND FUND FOR THE YEAR ENDED SEPTEMBER 30, 2OI4 ACTUAL AMOUNTS VARIANCE BUDGETED AMOUNTS BUDGETARY WITH ORIGINAL FINAL BASIS BUDGET REVENUES: Lodging taxes Intergovernm ental revenues Interest income Miscellaneous income Total revenues EXPENDITURES: Current operations: Public works Total expenditures EXCESS OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Transfers out Total other financing sources EXCESS OF REVENUES AND OTHER FINANCING USES OVER EXPENDITURES FUND BALANCE AT BEGTNNING OF YEAR FUND BALANCE AT END OF YEAR 400,000 .400,q00 300,9_00 J00,,900300,000 300,000 100,000 l00,000 576.555 176,255,. _ 2q5,338 -265,338 34.662 34,662 54 I ,893 441,893 497,568 497 ,568_ Q -_ (r) $ 250,000 150,000 $ 250,000 150,000 285, I 98 290,068 1,284 5 $ 35,1 98 140,068 1,284 5 $ 939,460 -- 497,567 497,567 $ 100,000 $ 100,000 - 1,039,460 .479,?6s $ 1,5a9,725 The accompanying notes are an integral part of these financial statements. 25 CITY OF PRATTVILLE, ALABAMA STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FI.]ND BALANCES BUDGETANDACTUAL DEBT SERVICE RIND FOR TIIE YEAR ENDED SEPTEMBER 3O,2OI4 BUDGETED AMOI.JNTS ACTUAL AMOI"INTS VARIANCE BUDGETARY WITH BASIS BUDGETORIGINAL FINAL REVENUES: Interest income Total revenues EXPENDITURES: Debt service: Principal payments Interest payments Bond issue costs Total expenditures EXCESS OF EXPENDITURES OVER REVENUES OTHER FINANCING SOURCES (USES): Transfers in Issuance of refunding warrants Payment to refunded bonds escrow agent Bond premium Total other financing sources EXCESS OF EXPENDITURES AND OTHER FINANCING USES OVER REVENUES FI.JND BALANCE AT BEGINNING OF YEAR FI.JND BALANCE AT END OF YEAR $ 2,815,000 $ 2,815,000 1,7 4t,730 1,7 41,730 3$ 2,810,000 1,7 42,555 93,782 5,000 (825) __ _ (93,782) (89,607)4,646,3374,556,730 4,556,739 (4,556,730) (4,556,730)(4,646,334) (89,604) 4,348,932 4,348,932 9,955,000 9,955,000 (t0,067,843) (10,067,843) 206,625 206,625 $ (4?556,710) $ (4,556,730) 4,44?,714 4,44L714 Qa3,6?a), s 1;li,l l0 203.627 The accompanying notes are an integral part of these financial statements. 26 CITY OF PRATTVILLE, ALABAMA STATEMENT OF REVENUES. EXPENDITI.JRES. AND CHANGES IN FUND BALANCES BUDGETANDACTUAL GAS TAX SPECIAL REVENUE FIJND FOR THE YEAR ENDED SEPTEMBER 30, 2OI4 ACTUAL AMOUNTS VARIANCE BUDGETED AMOUNTS BUDGETARY WITH ORIGINAL FINAL BASIS BUDGET REVENUES: State gasoline and lubricating oil excise tarc Grant income Interest income Total revenues EXPENDITURES: Current operations: Public works Total expenditures EXCESS OF EXPENDITURES OVER REVENUES OTHER FINANCING SOURCES (USES): Transfers in Transfers out Total other financing sources EXCESS OF EXPENDITURES AND OTHER FINANCING USES OVER R€VENUES. BUDGETARY BASIS Deduct other reconciling items to adjust from budgetary basis to modified accrual basis: Change in encumbrances $ 249,500 $ 249,500 $ 249,J00 249,500 664,157_ 714,157 664j1,57 7 !4'l5l (414,657) (464,657) 461,079 259,850 201,036 193 $ 10,350 201 ,036 r93 _- 211,17? (42,294) ytz?294) 7 56,451 7 56,451 (295,372) 169,285 49,587 49,587 (11,559) , (13,559) 36,028 36,028 $ (414,657) s (464,657)(259,344) $ 205,3,13 1 3.1 63 1 3.1 63 (246,1 I I ) 470.738 224,557 NET CHANGE TN FUND BALANCE. MODIFIED ACCRUAL BASIS FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR The accompanying notes are an integral part of these financial statements. 27 CITY OF PRATTVILLE, ALABAMA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FI.JND BALANCES BUDGETANDACTUAL ruDICIAL SPECIAL REVENUE FIJND FOR THE YEAR ENDED SEPTEMBER 3O,2OI4 REVENUES: Fines and forfeitures Total revenues EXPENDITURES: Current operations: Public works Total expenditures ACTUAL AMOUNTS VARIANCE BUDGETED AMOUNTS BUDGETARY WITH ORIGINAL FINAL BASIS BUDGET $ 544,700 $ 544,700 $ 530,452 $ (14:24,8) 544,700 544,700 53A,452 . (1.!J,48) 501,3 13 501,3 13 43!J !L 63,206 501,3 13 501,3 13 438,107 63,206 92,345 48,958EXCESS OF REVENUES OVER EXPENDITURES 43,387 43,387 OTHER FINANCING SOURCES (USES): Transfers in Transfers out Total other financing uses EXCESS OF REVENUES AND OTHER FINANCING USES OVER EXPENDITURES BUDGETARY BASIS Deduct other reconciling items to adjust from budgetary basis to modified accrual basis: Change in encumbrances 4,000 4,000 (4,000) 146,500) (46,:00) -- (46,5q0) (42,100) (42,500) _ . -. (46?500\ (4,000) $ 887 $ 887 -- 45,845 $ 44,958 270 270 46,115 $ 46,115 NET CHANGE IN FUND BALANCE. MODIFIED ACCRUAL BASIS FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR The accompanying notes are an integral part of these financial statements. 28 CITY OF PRATTVILLE, ALABAMA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 3O,2OI4 BUSINESS-TYPE ACTIVITIES . ENTERPRISE FUNDS GOVERNMENTAL ACTIVITIES. INTERNAL SANITATION WASTEWATER TOTAL SERVICE FTJNDS ASSETS: Current assets: Cash and cash equivalents $ 730,584 $ 2,799,284 $ 3,529,868 S 1,200,769 226,557 346,061 572,618 11,952 8,946 20,898 969,093 3,154,291 4,123,384 l,2AA,7 69 Noncunent assets: Capital assets, not being deprecialad 338,654 992,353 1,331,007 Capital assets, net of accumulated depreciation 429,530 5,337,226 5,766,756 Total noncurrent assets . 7,63,18{ 6,??9,579 , 7,0?71763 Accounts receivables, net Prepaid items Total current assets Total assets LIABILITIES: Current liabilities: 1,737,277 9,483,870 llplln_ 1,2aa,769 320,879 lll,929 432,808 1,627,993 1,627,993 1,a67,127 1,067,12728,267 68,042 98,109 485,346 3,051,3 16 3,536,662 2%,q82 768,184 3,634,459 4,402,643 483,747 2,798,095 3,281,842 907,687 Accounts payable and apcrued liabilities 108,344 115,473 223,817 293,0E2 Due to other funds Cunent portion of long-term alebt Compensated absences 27 ,856 60,7 52 88,608 Total current liabilities 457,079 1,916,147 2,373,226 293,0E2 Noncurrent liabilities : Long-term debt Compensated absences Total liabilities NET POSITION: Net investment in capital assets Unrestricted Total noncurent liabilities 28,267 1,135,169 I,163,436 Totalnetposition _$_1,25.t21!_ _!_9An,554_. 7,684,485 _{_29?,68? Net position of business-type activities The accompanying notes are an integral part of these financial statements. 29 $ 7,684,485 CITY OF PRATTVILLE, ALABAMA STATEMENT OF REVENUES. EXPENSES. AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 3O,2OI4 BUSINESS.TYPE ACTIVITIES - ENTERPRISE FUNDS GOVERNMENTAL ACTIVITIES - TNTERNAL SANITATION WASTEWATER TOTAL SERVICE FUNDS OPERATING REVENUES: Charges for goods and services Total operating revenues OPERATING EXPENSES: Cost of sales and services Salaries and benefits Repairs and maintenance utilities Insurance Other Depreciation Benefits paid Total operating expenses OPERATTNG TNCOME (LOSS) NONOPERATING REVENUES (EXPENSES) : Gain on sale of capital assets Interest income Interest expense Total nonoperating revenues (expenses) Net income before transfers TRANSFERS IN TRANSFERS OUT CHANGE TN NET POSITION TOTAL NET POSITION . BEGINNING, AS ORGINALLY STATED CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE TOTAL NET POSITION . BEGINNING. AS RESTATED TOTAL NET POSITION . ENDING $ 2,452,098 $3,729,267 63 I,352 2,452,098 3,729,267 631,352 384,936 3,349,042 2,205,048 2,484,055 4,689,103 3,733,978 247,050 - 1,245,2!2 1,49%262 (32102,62p\ 642,163 1,138,7 49 190,028 4,285 62,022 32,165 145,636 312,643 1,202,622 84,582 380,4 l9 53,425 l4,l2l 436,243 $ 6,l8,l,365 _. 6,181,?65_ 954,806 2,341,37 | 264,610 384,744 115,447 46,286 - 581,879 14,625 305 3,713 1,248,218 27,916 4,7 50 42,541 5,055 _ . (te}) _ (83,s4s) .. . (8;,73J)14,738 (:0,819) (16114l ) 261,788 1,194,333 1,456,121 (25.8,075) _ (l e6p7s) (4sJ,l:0) 713 (3, l0 I ,91 3) 2,622,527 998,258 1,001 ,97 I (479,386) 1,387,073 1,387,073 7t3 5,506,957 (72,661\ 1,248,218 5,434,296 $ 1,251,931 $ 6,432,554 - @ Change in net position of business-type activities The accompanying notes are an integral part of these financial statements. 30 $ 1,001,97 | -- 907.687 CITY OF PRATTVILLE, ALABAMA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2OI4 CASH FLOWS FROM (USED FOR) OPERATTNG ACTTVITTES: Receipts from customers Receipts from interfund services provided Payments to suppliers Payments to employees Net cash from (used for) operating activities CASH FLOWS FROM (USED rOR) NONCAPITAL FINANCING ACTIVITIES : Transfers to other funds Transfers from other funds CASH FLOWS FROM (USED FOR) CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets Sale of capital assets Principal paid on long-term debt CASH AND CASH EQI.NVALENTS, END OF YEAR RECONCTLTATTON OF OPERATTNG TNCOME (LOSS) TO NET CASH FROM (USED FOR) OPERATING ACTIVITIES: Operating income (loss) Adjustments to reconcile operating income to net cash provided by operations: Depreciation expense Decrease in assets: Accounts receivable Prepaid expenses Increase (decrease) in liabilities: Accounts payable and accrued liabilities Net cash from (used for) operating activities The accompanying notes are an integral part of these financial statements. BUSINESS-TYPE ACTIVITIES . ENTERPRISE FIJNDS GOVERNMENTAL ACTIVITIES. TNTERNAL SANITATION WASTEWATER TOTAL SERVICE FUNDS $ 2,428,191 $ 3,677 3A7 $ 6,105,498 $ 631,352 (910,184) (897,896) (1,808,080) (3,776,577) (1,133,452) (1,208,069I (2,341,54\ 384,55J 1,571,342 1,955,897 (3,135,?25) (258,075) (196,075) (454,150) 2,622,527 (87,743\ (269,539) (357,282) 14,625 27,916 42,541 (409,98 t ) (409,981) q. ,. ?30,1s1 $ , 2#%281= _q_-1,52e,899_ .$, = 1,?00,?6? $ 247,050 $ t,245,212 $ 1,492,262 $ (3J42,676) 145,636 436,243 581,879 (23,906) (51,960) (75,866) (2,365) (1,198) (3,563) l8,l4o (16,955) _ (38,81l) (42,59e) $ 384,555 $ 1,571,342 $ 1,955,897 $ (3,145,?25) Net oash payments ftom (to) other tunds 78,745 I 16,609 195,354 (15397) Net oash fiom (used for) noncapital fnancing activities (l?9,330) (79,466\ (258,796\ 2,607,030 Interest paid on long-term debt (192) (83,973) (84,165) Net oash used for capial and related finanoing activities (?3,3 l0) (735,577) (E08,887) CASH FLOWS FROM INVESTING ACTIVITIES: Interest rcceived 305 4,750 5,055 Net cash from investing activities 301 _ 4,759 51055 NET TNCREASE (DECREASE) IN CASH AND CASH EQLMLENTS 132,220 761,049 893,269 (s37,482) cAsH AND CASH EQT,IVALENTS, BECINNING OF YEAR 59E,364 2,038,235 2,636,599 1,73E,251 7t3 713 3l CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30.2OI4 NOTE I . SUMMARY OF SIGNIFICANT ACCOI.]NTING POLICIES: Reporting entity - 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 dishicts 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 Authorrty), and the Historic Prattville Redevelopment Authority (I{PRA), 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 goveming body. Based on these criteriq the Library is included as a component unit of the City for the year ended September 30, 2014. The Library operates on a fiscal year ending September 30. Financial statements of the Library can be obtained at its administrative ofTice 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 30,2014. The Authority also operates on a fiscal year ending September 30. Financial statements of the Authorrty 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 IIPRA 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, 2014. Financial statements of HPRA can be obtained from the City's finance department in Prattville, Alabama. 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. 32 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCI,AL STATEMENTS SEPTEMBER 30. 2014 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued) Government-wide and fund financial statements - The basic financial statements consist of the government-wide financial statements and fund financial statements. Both sets of statements distinguish between governmental and business-type activities. Government-wide financial statements are comprised of the statement of net position 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 transactions, 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 Crty's governmental activities are offset by the City's program revenues. Direct expenses are those that are clearly identifiable with a specific program or function. Program revenues are classified into three categories: (1) fines, fees, and charges, (2) operating grants and contributions, and (3) capital grants and contributions. Charges for services refer to direct recovery from customers for services rendered. Grants and contributions refer to revenues restricted for specific programs whose use may be restricted further to operational or capital items. The general revenues section displays revenue collected that helps support all functions of government and contribute to the change in the net position for the fiscal year. The fund financial statements follow and report additional and detailed information about operations for major funds individually and nonmajor funds in the aggregate for governmental funds. A reconciliation is provided that converts the results of governmental fund accounting to the government-wide presentations. The City reports the following major governmental funds: Generol 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. Gas tm special revenue fmd - The gas tax special revenue fund is used to account for proceeds from a state gasoline tax. The use of these funds is restricted to expenditures related to construction, improvements, resurfacing, restoration, and rehabilitation of highways, roads, bridges, and streets. Judicial special revenue fund - T\ejudicial special revenue fund is used to account for all fines and forfeitures as a result of municipal court operations. The use of these funds is restricted and used for the operation of the municipal court and jail. 33 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30.2OI4 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued) The City reports the following major proprietary funds: Sanitation -. The fund accounts for the revenues and costs related to the provision of sanitation services in the City. Wastewater - The fund accounts for the revenues and costs related to the provision of sanitary sewer and wastewater treatment services in the City. Additionally, the City reports the following fund type: Internal service fund - The fund accounts for the operations of the self-insured medical insurance plan provided to funds of the City on a cost reimbursement basis. Measurement focus. basis of accounting. and financial statement presentation - Government-wide financial statements - The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis, revenue from properly 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 find financial statements - The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within 90 days after year-end. Sales ta)tes, gasoline taxes, grants, donations, and interest revenue are all considered to be susceptible to accrual. Unearned 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. 34 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30. 2014 NOTE 1 - SLJMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued) 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 progam 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 prcgrams, followed by categorical block grants, and then by general revenues. Proprietary ftmd financial 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 eamed, 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. 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. Property tax calendar - All ad valorem taxes levied by the state, county, and any municipality in Autauga County are assessed by the Tax Assessor and collected by the Tax Collector of Autauga County. The Autauga County properly tax calendar requires the Tax Assessor to assess and attach taxes as enforceable liens on property as of September 30 and taxes are due October I through December 31 of the following year. Property taxes that have not been paid by January 1 are considered delinquent. Tax collections received by the County Tax Collector are remitted to the City on a monthly basis. Receivables - Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of inter-fund loans) or "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." 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 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 vear end are considered fullv collectible and are recorded at net realizable value. 35 CITY OF PRATWILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30.2014 NOTE I - SLJMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued) 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 managemenfs 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 as an expenditure when purchased rather than capitalized as an asset. The City has no significant inventories as of September 30,2014; therefore, none are reported on the statement of net position. Restricted assets - Resources from federal and state grants, appropriations and shared taxes, and drug confiscation proceeds are classified as restricted assets on the balance sheet. Certain resources from federal and state grants set aside for airport improvements are classified as restricted assets on the statement of net position 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 govemmental 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. 36 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30. 2014 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued) The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Capital assets of the primary government and the Autauga- Prattville Public Library, a component unit, are depreciated using the straight-line method over the following estimated useful lives: ASSET CLASS Buildings and building improvements Land improvements Vehicles Office, nonoffice, and computer equipment Infrastructure Land improvements Building and improvements Furniture and equipment Runways Machinery and equipment Land improvements Buildings ESTIMATED USEFUL LIVES CAPITALVATION THRESHOLD 25,000 25,000 5,000 5,000 50,000 40 years 20 years 5 - 15 years 5 - 20 years 50 years Capital assets of the Prattville Airport Authofity, a straight-line method over the following estimated useful ASSET CLASS ESTIMATED USEFUL LTVES component unit, are depreciated using lives: CAPITALIZATION THRESHOLD the 20 years 3 - 25 years 5 - 7 years 8 - 25 years 5,000 5,000 5,000 5,000 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: ASSET CLASS ESTIMATED CAPITALVATION USEFUL LTVES THRESHOLD 5 10 years 20 years 40 years 5,000 25,000 25,000 37 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30. 2014 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued) 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. Deferred outflows of resources - Decreases in net assets that relate to future periods are reported as deferred outflows of resources in a separate section of the government-wide statement of net position and or governmental funds' balance sheet. The City has only one item that qualifies for reporting in this category. It is the deferred loss on refunding reported in the government-wide statement of net position. A defened loss on refunded debt results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Deferred inflows of resources - Increases in net assets that apply to a future period(s) are reported as deferred inflows of resources in a separate section of the government-wide statement of net position and or governmental funds' balance sheet. The Library has only one item that qualifies for reporting in this category. Accordingly, the item, nonexchange transactions, is reported government-wide statement of net position. The amounts are deferred and recognized as revenue in the period that the amounts become available. 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 manimum of 360 hours at current wage rates. Upon retirement, an employee can receive payment of 50Yo of accumulated sick leave hours up to a maximum of 360 hours at cunent wage rates. All vacation and sick pay is accrued when incurred in the governrnent-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 are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs other than prepaid insurance are expensed when incurred. In the fund financial statementso governmental fund types recognize bond premiums and discounts, as well as bond issuance costso during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 38 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30.2OI4 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued) 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 arnount 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 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 Fmd Type Definitions, the City classifies government fund balance as follows: Nonspendable - includes fund balance amounts that cannot be spent either because it is not in spendable form, or for legal or contractual requirements. This would include inventories, deposits, and prepaid items. Restricted - includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors, or amounts constrained due to constitutional provisions or enabling legislation. Committed - includes fund balance amounts that can be used only for the specific purposes that are internally imposed by formal action of the government's highest level of decision making authority. Commitments may be charged by the government taking the same action that imposed the constraint initially. Contractual obligations are included to the extent that existing resources in the fund have been specifically committed for use in satis$ing 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 nesources in these funds are, at a minimum, intended to be used for the purpose of that fund. The City Council, Mayor, Finance Director, or the City Clerk is authorized to assign amounts to a specific purpose. The authorization, which is established by the City Council, is pursuant to the policy of the City Council to delegate such authority. 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 exceed amounts restricted, committed, or assigned for those specific purposes. 39 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2OI4 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 ACCOUNTABILITY: Budgets and budgetary accounting - The budget is adopted annually at the beginning of each fiscal year for the general fund, gas tax special revenue fund, capital projects fund, debt service fund, and judicial special revenue fund. The Council must approve transfers of appropriations or revisions between and among government function categories. Management can approve hansfers within government function categories only. Actual expenditures should not exceed appropriations in governmental function categories. Appropriations lapse at the end of the fiscal year unless expended or encumbered. Encumbered appropriations are carried forward. Encumbrances (e.g., purchase orders, confracts) outstanding at year-end are reported as assigned fund balance and do not constitute expenditures or liabilities of the fund. Budgets for the above-mentioned funds are adopted on a basis other than accounting principles generally accepted in the United States of America (GAAP) insofar as encumbrances are included with expenditures. Reconciliation of expenditures reported in accordance with GAAP and those presented in accordance with the non GAAP budgetary basis are noted below. 40 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30.2OI4 NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOLJNTABILITY: (continued) GENERAL FI.JND Excess of revenues and other financing sources over expenditures and other uses (GAAP basis) Encumbmnces at beginning of the year Encumbrances at end of the year Excess of revenues and other financing sources over expenditures and other uses - actual (non GAAP budgetary basis) Excess of expenditures and other financing uses over revenues and other sources (GAAP basis) Encumbrances at end of the year Excess of expenditures and other financing uses over revenues and other sources - actual (non GAAP budgetary basis) Excess of revenues and other financing sources over expenditures and other uses (GAAP basis) Encumbrances at end of the year Excess of revenues and other financing sources over expenditures and other uses - actual (non GAAP budgetary basis) 4,350,576 213,081 (359,839) 4,203,818 GAS TAX SPECIAL REVENUEFUND (246,1 8l ) (13,r63) (259,344) JUDICIAL SPECIAL REVENUEFUND $ 46,1 15 (270) $ 45,845 Excess of expenditures over.approoriations - For the year ended September 30,2014, one general fund functional expenditure category (the legal level of budgetary confol) exceeded appropriations. The City exceeded its budgeted appropriations in capital outlay due to additional capital projects These expenditures were funded from tax revenues. 4l CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30.2OI4 For the year ended September 30, 2014, one debt service fund functional expenditure category (the legal level of budgetary control) exceeded appropriations. The City exceeded its budgeted appropriations in debt service due to the issuance of refunding bonds in 2014. These expenditures were funded from the refunding bond proceeds. For the year ended September 30, 2014, one gas tax special revenue fund functional expenditure category (the legal level ofbudgetary control) exceeded appropriations. The City began several street paving projects during the fiscal year. The expenditures related to these paving projects are budgeted net of any grant reimbursements. Since the City budgets on a net basis, the grant reimbursements are not factored into the budget. Any expenditures that exceeded appropriations not due to the aforementioned grant reimbursements were funded from gas tax special revenue fund reserves. Deficit net position - The City had a deficit unrestricted net position at September 30, 2014 of $20,871,745. This deficit represents 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. 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 progfttm is a multiple financial collateral pool administered by the State Treasurer according to State of Alabama statute. 42 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30. 2OI4 NOTE4-CAPITALASSETS: Capital asset activity for the Crty's governmental activities for the year ended September 30,2014 was as follows: BEGINNING ENDING BALANCE INCREASE DECREASE BALANCE Governmental activities : Capital assets, not being depreciated: Consffuction in progress Land Total capital assets, not being depreciated Capital assets, being depreciated: Buildings and building rmprovements Land improvements Vehicles Office, nonoffice, and computer equipment Infrastructure Total capital assets, being depreciated Less accumulated depreciation for: Buildings and building rmprovements Land improvements Vehicles Office, nonoffice, and computer equipment Infrastructure Total accumulated depreciation Total capital assets, being depreciated, net Governmental activitie s capital assets, net $ 679,097 $ 100,748 $ 779,845 2,322,406 327,532 _ 2.649.938 3,001,503 428,280 _ 3,429,783 5,154,485 10,186 5 ,164,67 | 4,948,252 240,956 5,189,208 4,829,852 488,257 $ 451,921 4,866,188 5,098,270 7ll,5l3 287 ,858 5,521,925 45,125,739 - - 45,125'739 65,156,598 1,450,912 739.779 65.867 .731 1,162,748 134,874 4,543,734 321,546 3,592,854 372,903 1,297,618 4,865,280 451,921 3,513,836 3,237,396 350,350 286,386 3,301,360 7,017,634 890,654 _ 7,908.288 19,554,366 2,070,323 738,307 20.886,382 45,602,232 (619,41l) 1,472 44.981,349 $48,603,735 $ (191,131) $ _,.1,47?,_ $48,411,132 43 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30. 2OI4 NOTE 4 - CAPITAL ASSETS: (continued) Capital asset activity for the Crty's business-type activities for the year ended September 30,2014 was as follows: BEGINNING ENDING BALANCE INCREASE 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 rmprovements Land improvements Vehicles Office, nonoffice, and computer equipment Total capital assets, being depreciated Less accumulated depreciation for: Buildings and building rmprovements Land improvements Vehicles Office, nonoffice, and computer equipment Total accumulated depreciation Total capital assets, being depreciated, net Business-type activities capital assets, net 5,889,762 3,221,4301,761,525 35,650 $ 73,988 5,889,762 3,221,430 $ 103 ,599 1,693,576 2,72r,322 1,636,519 103 ,599 1,295,716 $ 73,988 $ 1,257"019 1,257,019 73,988 _ 1,331.007 1,576,043 247,644 13,880 1,809.807 12,448,760 283,294 117,479 12.614,575 2,571,822 1,47 5,851 149,500 160,668 1,249,440 149,87 5 1,086,306 121,836 13,880 1,194,262 6,383,419 581,879 ll7 ,479 6,847 "819 6,065,341 (298,585\ _ 5.766.756 s ?322360 J @45n s - 8 7,oe?363 44 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30. 2OI4 NOTE 4 - CAPITAL ASSETS: (continued) Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $ 936,439 Public works 264,676 Public safety 532,470 Cultural and recreational 336,738 Total depreciation expense - governmental activities S 2,070,323: Business-type activities : Sanitation $ 145,636 Wastewater 436.243 Total depreciation expense - business-type activities _q_:!1,8?9_ Component units - Capital asset activity for the Autauga-Prattville Public Library for the fiscal year ended September 30,2014 is as follows: BEGINNING ENDING BALANCE INCREASE DECREASE BALANCE Capital assets, being depreciated: Equipment Total capital assets, being depreciated $ 208,732 $ 48,257 $ 160,47 5 208,732 48,257 160,47 5 Less: Accumulated depreciation 134,296 $ 16,995 44,236 107,055 Total capital assets, being depreciated, net $ 74,436 $ (16,995) $ 4,021 $ 53,420 --::: 45 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30. 2OI4 NOTE 4 - CAPITAL ASSETS: (continued) Capital asset activity for the Prattville Airport Authority for the fiscal year ended September 30,2014 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 2,621,549 92,917 27,820 2,686,646 $ 2,593,729 27,820 71,431 21,486 27,820 $ 2,665,160 21,496 1,495,301 6,530,7 45 1,402,007 90,47 5 400,624 1,495,301 6,530,7 45 1,402,007 491,099 9,5 18,528 40a,624 9,919,152 560,377 2,57 5,360 435,77 5 59,199 7 4,7 65 226,1 88 31,314 6,672 635,142 2,801,548 467,089 65,87 | 3,630,711 339,939 3,969,650 5,887,817 61,685 5,949,502 $ 8,509,366 $ 154,602 $ 27,820 $ 8,63 6,148 -------- 46 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30.2OI4 Capital asset activity for the Historic Prattville Redevelopment Authority for the fiscal year ended September 30,2014 is as follows: BEGINNING ENDING BALANCE INCREASE DECREASE BALANCE Capital assets, not being depreciated: Land Total capital assets, $ 183,500 $ 183,500 not being depreciated 183,500 183,500 Capital assets, being depreciated: Land improvements Building improvements Machinery and equipment Total capital assets, being depreciated 12,000 285,000 23,000 12,000 285,000 23,000 320,000 Less: Accumulated depreciation 85,583 $ lr 07 Total capital assets, being depreciated, net 234,417 (7,907) 320,000 93,490 226,5r0 Total capital assets, net $ 417,917 $ (7,9QD $ - $ 410,010 NOTE 5 - INTERFUND BALANCES: Interfund transactions are generally used to meet cash demands necessary to pay operating expenditures. These amounts should be repaid during the next fiscal year. Amounts reported in the fund financial statements as interfund receivables and payables are eliminated in the entity-wide governmental column of the statement of net assets, except for the net residual amounts due between governmental and business-type activities, which are presented as internal balances. 47 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2OI4 The composition of interfund receivables and payables as of September 30,2014 consists of the following: RECEIVABLE FUND PAYABLE FUND AMOUNT General General General General Total Sanitation Gas tax special revenue fund Judicial special revenue fund Wastewater 320,879 93,781 15,932 111 ,929 542,521 The following is a schedule of interfund transfers for the year ended September 30,2014: TRANISFER OUT TRANSFER IN DEBT SERVICE FUND CAPITAL GAS PROJECTS TAX FUND FUND INTERNAL SERVICE FUND TOTAL 49^587 $ 4,349,932 $ 497,568 $ 49,587 $ 2,622,527 $ 7,518,614 --- Transfers are used to move revenues from the fund with collection authorization to the debt service fund as debt service principal and interest payments become due, and to move unrestricted general fund revenues to finance various programs that the government must account for in other funds in accordance with budgetary authorizations, including amounts provided as subsidies or matching funds for various grant programs. NOTE6-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}DVo of the assessed value of taxable property as of the beginning of the fiscal year. As of September 30, 2014, the amount of outstanding debt applicable to this limit was equal to 7.48% of property assessments as of October 1,2013. General fund Capital projects fund Gas tan special revenue fund Judicial special revenue fund Wastewater fund Sanitation fund Totals $ 4,348,931 I $ 484,009 $ 13,559 $ 2,121,877 46,500 196,075 258,075 $ 7,004,404 I 13,559 46,500 196,475 258,075 48 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30.2OI4 NOTE 6 - LONG-TERM DEBT: (continued) Long-term debt activity for the year ended September 30,2014, was as follows: DUE WITHIN BEGINNING ENDING ONE BALANCE ADDITIONS REDUCTIONS BALANCE YEAR Governmental activities: Warrant and other notes payable $ 47,005,009 $ 9,955,000 $ 12,802,898 $ 44,157,11I $ 4,420,000 Limited obligation warrant 1,567,775 Less defened amounts: Debt issuance discounts (137,952) Add defened amounts: Debt issuance premiums 160,007 206,625 26,857 339,775 Total wanants and other notes payable 48,594,839 10,161,625 12,782,715 45,973,749 4,420,000 Compensated absences 1,072,194 543,928 575,809 1,040,313 197,030 Post-employment benefi ts other than pensions 1,990,427 424,616 56,693 2,358,350 Govemmental activities long-term 5l ,657 ,460 I I , I 3 0, I 69 13,415,217 49,372,412 4,617 ,030 9,463 1,558,312 (56,503) (81,449) 4A0,647 2,695,120 1,627,993 9,334 liabilities Business-type activities : General obligation warrants 3,095,767 Capital leases Compensated absences Business-type activities 9,334 189,730 94,323 99,136 184,917 88,608 long-term liabilities 3,294,831 94,323 509,117 2,880,037 1,716,601 Total long-term debt _8 549n291 -S ll,n4,4n_ -$ 13,94334_ -S 522n,449__$_6,333,911- 49 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCTAL STATEMENTS SEPTEMBER 30. 2014 NOTE 6 - LONG-TERM DEBT: (continued) Long-term debt at September 30,2014 consists ofthe following: Governmental activities : General Obligation Economic Development Improvement Warrants, Series 2006A; principal amount $19,875,000; graduated principal payments are due annually beginning November l, 2010 and semiannual interest payments due each November 1 and May l; interest at 3.65Yo to 5.00%; current rate on bonds SYo; frrlal maturity date is November l, 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 I,2009 and semiannual interest payments due each November 1 and May l; interest at 3.50o/o to 5.00Vo; rate on current bonds 4.5o/o; final maturity date is November l, 2025. Proceeds used for economic development. General Obligation Economic Development Improvement Warrant, Series 2007; principal amount $14,920,000; graduated principal payments due annually beginning November 1, 2010 and semiannual interest payments due each November I and May l; interest at 3.50o/o to 4.375Yo; rate on current bonds 4Yo; frnal maturity date is November l, 2025. Proceeds used for economic development. General Obligation Warrant, Series 2008; principal amount $380,000; due in semiannual installments of principal and interest on November 20 and May 20 of each year, beginning November 20,2008; interest at 3.2lVo; frnal maturity date is May 20,2018. Proceeds used to purchase a fire truck. 2009 General Obligation Refunding Warrants; principal amount $6,315,000; graduated principal payments are due annually beginning on September 1, 2010 and semiannual interest payments due each March I and September l, beginning March 1,2010; interest rate ranges fromZYoto 4Vo; rate on current bonds 3Yo; fiml payment is due September 1,2022. Proceeds used to refund the 2001 and2002 Warrants. TOTAL $ 9,285,000 6,990,000 2,150,000 r57,1 I I 50 4,265,000 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30. 2014 NOTE 6 - LONG-TERM DEBT: (continued) General Obligation Chewon 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 1 and December 1, beginning June 1, 2010; interest rate ranges from2.2Yo to 4.5Yo; rate on current bonds 2.2%; final payment is due December l, 2029. Proceeds used for the acquisition, construction, installation, and equipping of certain enerry effrcient improvements. General Obligation Refunding Warrants Series 2013A; principal amount $9,815,000; graduated principal payments are due annually beginning on March 1,2014 and semiannual interest payments due each September I and March l, beginning September 30,2013; interest rate ranges from .80% to 2.75%; rate on current bonds 2.0%; final payment is due March 1,2027. Proceeds used for the partial refunding of the Series 2006A General Obligation Economic Development lmprovement Warrants. General Obligation Refunding Warrants Series 2014A; principal amount $9,955,000; graduated principal payments are due annually beginning on March 1,2015 and semiannual interest payments due each September 1 and March 1, beginning March 1,2015; interest rate ranges from 1.55% to 4.0Yo; rate on current bonds 2.0%; final payment is due March l, 2026. Proceeds used for the partial refunding of the Series 2007 General Obligation Economic Development Improvement Warrants. Total governmental activities TOTAL $ 1,695,000 9,660,000 9,955,000 44,1,57,1 I I 5l CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30.2014 NOTE 6 - LONG-TEnN{ OEgf' (continued) Business-type activities: General Obligation Sewer Warrant, Series 19961' principal amount $3,025,000; graduated principal payments are due annually on August 15 and semiannual interest payments due each February 15 and August 15; interest rate of 3.18%; final maturrty date is August 15,2017. Proceeds used for sludge digesters and wastewater heatment plant upgrade. General Obligation Sewer Warrant, Series 2004; principal amount $2,085,000; graduated principal payments are due annually on February 15 and semiannual interest payments due each February 15 and August 15; interest rate of 3.05%; final maturity date is February 18, 2025. Proceeds used to pay costs of constructing wastewater treatment and related facilities in connection with the sanitary sewer system. General Obligation Sewer Warrant, Series 2013; principal amount $900,000; monthly principal and interest payments of $l1,570 due monthly beginning on September 15, 2013; interest rate of 2.190%; final maturity date is August 15,2020. Proceeds used to pay for purchase ofproperty to be used as a waste water byproduct application site. Total business-type activities Total general obligation warrants TOTAL 620,000 1,305,000 770,120 2,695,120 $ 46,8 52,231 -- Limited Obligation Warrant - The City issued Limited Obligation Warant, Series 20068 in the amount of $1,594,489 for the construction of infrastructure. The warrant bears a -0-olo 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 7 SYo of the sales tax revenue remitted by retail establishments located on the specified property. As of September 30,2014, the City had redeemed $36,177 of the outstanding wamants. The balance on the warrant at September30,2014 is $1,558,312. The Limited Obligation Warrant does not constitute a direct obligation and pledge of the full faith and credit of the City. 52 CIry OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30.2OI4 NOTE 6 - LONG-TERM DEBT: (continued) Debt service requirements on long-term debt at September 30,2014 are as follows: TOTAL ANINUAL REQTJIREMENTS CIO VERNMENTAL AC TI VITIE S BUSINE S S. TYPE ACTIVITIES PRINCTPAL rNrEREsr .-....jry-.gg4!_.'.ry.-....]5L PRINCIPAL INTEREST _,,.PI4!_ YEARENDTNG SEPTEMBER30: 2015$6,047,993Nr,sn,462$7,s?1,455$4,42qOOO$r,479,597$5,899,s971r,627,993S43,66s$1,671,858 ml6 2,720,715 1,347,839 4,068,554 e390,m0 1,321,354 3,711,354 330,715 26,4t5 357,2OO ml7 3,158,5?2 1,229,118 4,3t1,69O 2815,000 l,2r2,Na 4,O27,0O8 343,572 l7,ll0 360,682 2018 3,551,456 1,0v2,939 4,il4,395 3,420,000 t,085,551 4,505,5s1 131,456 2388 138,8'14 mlg 3,644,405 959,373 4,@3,nt 3,510,000 954,933 4,4f/,933 134,405 4,440 13t 845 ?g20 -20U 1t,181,979 3,189,418 21,371,397 18,055,000 3,lE?,991 21,242,991 126,979 1,427 128,406 2025 -2029 9,365,000 467,3t3 qt32,313 9,365,000 467,3t3 9,832,313 2O3O -2034 195,000 4,193 186,304 182"il I 4t93 186,304 203s-2036 r,5s8,3r2 __!1111,13-__14-__l4tjl3- Totals$4t,423,432$9,813,655$58,22,19t$45,115,423$9,712,940Ss5,428,363$2,695,120$100,715$2,795,835:::::===- =!-:::=-=: Advance refunding - The City issued $9,955,000 of general obligation refunding bonds to provide resources to purchase U.S. Government State and Local Government Series securities that were placed in an irrevocable trust for the purpose of generating resources for all future debt service payments of $9,865,000 general obligation bonds. As a result, the refunded bonds are considered to be defeased and the liability has been removed from the governmental activities column of the statement of net position. The reacquisition price exceeded the net carrying amount of the old debt by $250,442. This amount is classified as a deferred loss on refunding (a defened outflow) and amortized over the remaining life of the old debt. Over the life of the bonds, the City decreased its total debt service requirements by $1,161,113. The result of this refunding was an economic gain of $1,084,369. Component units - The Prattville Airport Authority's capital debt at September 30, 2014 is as follows: Revenue and Grant Anticipation Bond Series 2014 - River Bank & Trust; $551,266; ; interest rate of 4.69% until April I,2029; principal and interest due monthly beginning May 22,2014; secured by pledge of all revenues, rents, receipts, income, and funds derived by the Airport Authority.$ 540,717 $ 540,717 -- Total long-terrn capital debt 53 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2OI4 NOTE 6 - LONG-TERM DEBT: (continued) Maturities on capital debt are as follows: CITY OF PRATTVILLE AIRPORT AUTHORITY PRINCIPAL INTEREST TOTAL YEAR ENDING SEPTEMBER 30: 20r5 20r6 20r7 2018 2019 2020 - 2024 2025 - 2029 26,348 27,561 28,968 30,37 5 31,852 183 ,947 211,666 25,139 23,926 22,519 2l,ll2 19,635 73,488 24,303 51,487 51,487 51,487 51,497 51,487 257,435 235,969 Totals $ 540,717 -- Total interest cost on capital debt in 2014 was $20,613. Capital debt activity for the year ended September 30,2014 was as follows: 210,122 $ 750,839 -- ENDING DUE WITHIN BALANCE O}.IE YEAR BEGINNING BALANCE ADDITIONS REDUCTIONS Revenue and grant anticipation Bond-Trustmark $ 563,461 Bond - River Bank & Trust Totals $ 551 ,266 $ 563,461 10,549 $ 540,717 $ 26,348 $ 563,461 $ 551,266 $ 574,010 s 540,717 $ 26,348 54 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCTAL STATEMENTS SEPTEMBER 30. 2OI4 The Historic Prattville Redevelopment Authority's notes payable at September 30, 2014 arc follows: BankTrust secured by real estate; monthly principal and interest payments of $I,972 due on the 5th of every month; interest rate of 6.15%; final maturity dateis July5,2015. Proceedsusedtopurchaserealestate. $ 138,626 BankTrust unsecured; monthly principal and interest payments of $393 due on the I 5th of every month; interest rate of 6.1 5Yo: mat.xity date of September I 5, 2015. Proceeds used to pay unsecured loan. Total Notes payable maturities at September 30,2014 are as follows: 15,601 $ 154,227 -- YEAR ENDING SEPTEMBER 30: 2015 Totals Long-term debt activity for the Historic September 30, 2014, was as follows: HISTORIC PRATTVILLE REDEVELOPMENT AUTHORITY PRINCIPAL INTEREST TOTAL $ 154,227 $ 7,913 $ 162,140 $ t54,227 $ 7,913 $ 162,140 --- Prattville Redevelopment Authority for the year ended BEGINNTNG ENDING DUE WITHIN BALANCE ADDITIONS REDUCTIONS BALANCE ONE YEAR Notes payable to bank $ 160,761 6,534$154,227$154,227 Totals 160,761 6,534$154,227$154,227 NOTET-NOTESPAYABLE: The City issued variable rate General Obligation Note, Series 20114 dated May l, 20ll in the amount of $1,000,000. The proceeds of the note were used as a line of credit forpaying operation expenditures as needed for the City. The line of credit was most recently renewed on May 30,2014 with a maturity date of May 30,2015. At September 30,2014, the balance of the loan had been paid in tull. 55 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30.2014 NOTE 8. 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 is a defined benefit plan that provides retiremenL disability, and death benefits to plan members and beneficiaries. The ERS was established October 1945 under the provisions of Act 515, Acts of Alabama 1945, for the purpose of providing retirement allowances and other specified benefits for State employees, State police, and on an elective basis to all cities, counties, towns, and quasi-public organizations. The responsibility for general administration and operation of the ERS is vested in the Board of Control. Benefit provisions are established by the Code of Alabama 1975. Authority to amend the benefit provisions of the plan rests with the State Legislature. ERS 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 5% of their annual salary, except for full-time, certified firefighters and law enforcement officers, who contribute 6Yo of their annual covered salary. The City is required to contribute at an actuarially determined rate; the Crty's cument contribution rate is 9.18% of covered payroll based on the actuarial valuation report of September 30, 2011. The contribution requirements of plan members are set by the State Legislature. The conhibution requirements of the City are established and may be amended by the ERS based on actuarial valuations. ANNUALPENSION cosr (APC) $ 1,092,669 1,095 ,322 1,203,721 PERCENTAGE OF APC CONTRIBUTED NET PENSION OBLIGATION r00% r00% t00% -0- -0- -0- Annual pension cost - For the year ended September 30, 2014, the City's annual pension cost of $1,203,721 was equal to the City's required and actual contributions. Trend information for the City of Prattville, Alabama is as follows: TREND INFORMATION FISCAL YEAR ENDED September 30, 2012 September 30, 2013 September 30, 2014 56 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCTAL STATEMENTS SEPTEMBER 30. 2OI4 The required contribution was determined as part of the September 30,2011 actuarial 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 3 .7 5% to 7 .25Yo per year, including inflation of 3 .00%. The actuarial value of assets was determined using techniques that smooth the effects of short-term volatility in the market value of investrnents over a five-year period. The unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period as of September 30,2011 was 30 years. Funding status and progress - As of September 30,2013, the most recent actuarial valuation date, the plan was 72.4% funded. The actuarial accrued liability for benefits was $45,194,572, and the actuarial value of assets was $32,730,300 resulting in funding deficit of $12,464,272. The covered payroll (annual payroll of active employees covered by the plan) was $12,849,845, and the ratio of the funding deficit to the covered payroll was 97.0o/o. 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 acfuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. NOTE 9 - POST-EMPLOYMENT BENEFITS OTIMR 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 years when it will be paid. The City recognizes the cost of post- employment healthcare in the year when employee services are received, reports the accumulated liability from prior years, and provides information useful in assessing potential demands on the City's future cash flows. The recognition of the liability accumulated from prior years will be phased in over 30 years, commencing with the 2009 liability. Plan description - The City of Prattville, Alabama's medical benefits are provided through a comprehensive medical plan and are made available to employees upon actual retirement. The employees are covered by the Retirement System of Alabama and must meet the eligibility provisions adopted by resolution to receive retiree medical benefits. Those eligibility provisions are asfollows: l0yearsof consecutiveserviceandattainmentofage60; or,25 yearsof serviceatany age. Complete plan provisions are included in the official plan documents. Contribution rates - Employees do not contribute to their post employment benefits costs until they become retirees and begin receiving those benefits. The plan provisions and contribution rates are contained in the official plan documents. 57 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30.2OI4 NOTE 9 - POST-EMPLOYMENT BENEFITS OTHERTHAN PENSIONS: (continued) The number of participants as of September 30, 2012, the effective date of the biannual actuarial valuation, are as follows: NUMBEROF ENROLLEES Active employees Retired employees Total Normal cost 30 year unfunded AAL amortization amount Annual required contribution (ARC) 29r ll 302 Funding policy - Until fiscal year ended 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 ended September 30, 2014, the City of Prattville, Alabama's portion of health care funding cost for retired employees totaled $56,693. 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 Contribution (ARC) is an amount actuarially determined in accordance with GASB 45. The ARC is the sum of the Normal Cost plus the contribution to amortize the Unfunded Actuarial Accrued Liability (UAAL). 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 1,2013 is $460,105, as set forth below: MEDICAL 237,520 222,585 460,105 58 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30. 2014 NOTE 9 - POST-EMPLOYMENT BENEFITS OTI{ER 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 lnterest 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 $ 460,105 79,617 (115,106) 424,616 -0- (56,693) 367,923 1,990,427 $ 2,358,350 The City's annual OPEB cost, percentage of the cost contributed, and the net OPEB obligation for fiscal year 2014 andthe previous two years is as follows: POST- EMPLOYMENT BENEFIT Medical Medical Medical September 30, 2012 $ September 30, 2013 September 30, 2014 PERCENTAGE OF ANNUAL FISCAL YEAR ANNUAL COST NET OPEB ENDED OPEB COST CONTRIBUTED OBLIGATION 337,315 413,354 424,616 r7.lg% $ 12.7UYo 13.3 5% 1,629,565 1,990,427 2,358,350 59 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCTAL STATEMENTS SEPTEMBER 30. 2OI4 NOTE 9 - POST-EMPLOYMENT BENEFITS OTIIER THAN PENSIONS: (continued) Funded status and funding progress - As of September 20,2014, the actuarial accrued liability for benefits was $4,002 ,952 all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was $13,721,319 and the ratio of the unfunded actuarial liability to the covered payroll was29.l7Yo as presented in the following table: MEDICAL Actuarial accrued liability (AAL) Actuarial value of plan assets Unfunded actuarial accrued liability (UAAL) Funded ratio (Actuarial value assets/AAl) Covered payroll (active plan members) UAAL as a percentage of covered payroll 4,0a2,952 -0- 4,002,952 -0-% 13,721,319 29.17% 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 (1) turnover nte; (2) retirement rate; (3) health care cost trend rate; (4) mortality rate; (5) discount rate (investment return assumption); and (6) the period to which the costs apply (past, current, or future years of service by employees). Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The actuarial calculations are based on the types of benefits provided under the terms of the substantive plan (the plan as understood by the City and its employee plan members) at the time of the valuation and on the pattern of sharing costs between the City of Prattville, Alabama and its plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the City and plan members in the future. Consistent with the long-term perspective of actuarial calculations, the actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial liabilities and the actuarial value 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 turnover. 60 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30.2014 NOTE 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS: (continued) Actuarial value of plan assets - There are not any plan assets. It is anticipated that in future valuations, should funding take place, a smoothed market value consistent with Actuarial Standards Board ASOP 6, as provided in paragraph number 125 of GASB Statement 45 would be used. Turnover rate - An age-related turnover scale based on actual experience has been used. The rates, when applied to the active employee census, produce a composite average annual tumover of approximately 9%. It has further been assumed that I0%o of retirees decline coverage because of the substantial retiree contribution required. Post-employment benefit plan eligibility requirements - Based on past experience, it has been assumed that entitlement to benefits will commence immediately upon retiree coverage eligibility, as described under "Plan Description". In addition, 'oTier [I" retirement plan members (those hired on and after January l, 2013) would not be eligible to retire before age 62. Medical benefits are provided to employees upon actual retirement. Investment return assumption (discount rate) - GASB Statement 45 states that the investment retum assumption should be estimated long-term investment yield on the investments that are expected to be used to finance the payment of benefits (that is, for a plan which is funded). Based on the assumption that the ARC will not be funded, a 4Yo awrual investment return has been used in this valuation. Health care cost trend rate - The expected rate of increase in medical cost is based on a graded schedule beginning with 8% annually, down to an ultimate annual rate of 5.0% for ten years out and later. Mortality rate - The 1994 Group Annuity Reserving (94GAF) table, projected to 2002, based on a fixed blend of 50Vo of the unloaded male mortality rates and 50% of the unloaded female mortality rates, is used. This is a recently published mortality table which has been used in determing the value of accrued benefits in defined benefit pension plans. Projected future mortality improvement has not been used since it is our opinion that this table contains sufficiently conservative margin for the population involved in this valuation. 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% ofthe cost ofthe medical insurance for the retiree and dependents (except for the incentive retirees), but it is based on the active/retiree blended rate. Therefore, 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 atage65. 6r CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30. 2OI4 Inflation rate - Included in both the Investnent Return Assumption and the Healthcare Cost Trend rates above is an implicit inflation assumption of 2.50% annually. Projected salary increases - This assumption is not applicable since neither the benefit structure nor the valuation methodolory involves salary. Post-retirement benefit increases - The plan benefit provisions in effect for retireees as of the valuation date have been used and it has been assumed for valuation purposes that there will not be any changes in the future. NOTE IO - 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. The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the Crty's counsel, the resolution of these matters will not have a material adverse effect on the financial condition of the City. NOTE I I . RISK MANAGEMENT: The City is exposed to various risks of losses related to tort; theft of, damage to, and destruction of assets; erors and omissions; natural disasters; injuries to employees; and self-insured employee health. The City purchases commercial insurance for property, general liability claims, and title insurance and has effectively managed risk through various employee education and prevention programs. All risk management activities are accounted for in the general fund. The City has estimated that the amount of actual or potential claims against the City as of September 30, 2014, 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. 62 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30. 2OI4 Employees' medical insurance fund - The City maintains the employees' medical insurance fund (an internal service 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 incured 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. The estimate of the claims liability 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. Changes in the balances of claims liabilities during the year are as follows: EMPLOYEES' MEDICAL INSTJRANCE FUND 20r4 Unpaid claims, beginning of fiscal year Incurred claims (including IBNRs) Claim payments Unpaid claims, end of fisc al year 2013 $ 171,000 $ 128,300 3,349,A42 2,931 ,01 I (3,336,042) (2,888,3 l8) 171,000184,000 NOTE 12 - RELATED PARTY TRANSACTIONS: The City Council appoints members of the Water Works Board of the City of Prattville. The City utilizes the Water Works Board of the City of Prattville as the collection agent for the sewer and sanitation collection fees. The City recognizes revenue for services when billed by the Water Works Board of the City of Prattville. The amount receivable to the City for sewer and sanitation collection fees at September 30,2014 was $559,252. 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 1. The receivable from the Water Works Board of the City of Prattville for license fees at September 30, 2014 was $ 13 1 ,7 I 1 . On May l, 2006, the City of Prattville, Alabama entered into a lease agreement with the Historic Prattville Redevelopment Authority, a component unit, to lease a building on West 4fr Street. The term of the lease is five years with quarterly rent payments of 58,183. For the fiscal year ended September 30, 2014, the City appropriated $165,000 to the Historic Prattville Redevelopment Authority which includes Crty's obligation on the quarterly rent payments plus an operating subsidy. As of September 30, 2014, the City owed $165,000 to the Historic Prattville Redevelopment Authority. The City appropriated $265,000 to the Library and $110,000 to the Airport Authority, component units, during the fiscal year ended September 30,2014. As of September 30,2014, the City owed $13,897 to the Airport Authority. These appropriations made were, or will be used, as operating subsidies. 63 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30.2014 NOTE 13 . FUNDING AGREEMENT: On September l, 2006, the City of Prattville, Alabama entered into a funding agreement with the Cooperative District of the City of Prattville (the District), a public corporation, simultaneously with the 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 Banlq the trustee of the District's bond indenture, an amount equal to2.5Yo of the gross proceeds of such sales through the earlier date of September 2026 or full payment of bonds. The Limited Obligation Taxable Economic Development Bonds (Bass Pro Project), Series 2006 do not constitute an obligation of the City of Prattville, Alabama. ln December 2008, the City of Prattville, Alabama entered into a funding agreement with The Exchange Cooperative District (the District), a public corporation to provide assistance in connection with proposed financing, construction, and installation of a retail shopping facility and related improvements in the City (the Project). The funding agreement provides that the City agrees to collect Project sales tax revenues and remit 50% of the City's actual receipts from the businesses located within the Project to fund the indebtedness of The Exchange Cooperative Disfrict. Payments under the agreement shall be made directly to the Trustee for the account of the District, if requested by the District; otherwise, all payments shall be made to the District or to the District Director. The maximum amount shall be the aggregate amount necessary to amortize $9,000,000 over thirty (30) years at an average yield. The average yield is the annual cost of any credit enhancement or remarketing fees expressed as a percentage, plus the average yield of the District's ta:r-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 14 - 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 of no less than $325,000 for a period of 20 years. Monthly payments on the commitment commenced when the facility became operational in July 2004. These annual payments include facility rental payments of $160,000 and operating cost of a minimum of $165,000. The City paid a total of $376,435 during the fiscal year ended September 30, 2014. 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 properly prove not to be financially viable. The initial loan balance on the propertytotaled $252,200. The loan balance as of September30,2014 was $138,626. 64 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCTAL STATEMENTS SEPTEMBER 30. 2014 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 contact is federally funded at80% up to $520,000, and the remainder is to be paid from the Crty's funds. As of September 30, 2014, commitnents to contractors on capital projects are as follows: Commitments Spent-to-date Remaining commitments $ 723,726 (560,085) $ 163,641 - NOTE 15 - EFFECT OF NEW PRONOIJNCEMENTS: Management has not currently determined what, if any, impact implementation of the following statement may have on the financial statements of the City. The GASB issued Statement No. 68, Accounting and Financial Reporting for Pensions. This Statement seeks to improve accounting and financial reporting by state and local governments for pensions. It also improves information provided by state and local governmental employers about financial support for pensions that is provided by other entities. This Statement requires the liability of employers and nonemployer confributing entities to employees for defined benefit pensions (net pension liability) to be measured as the portion of the present value of projected benefit payments to be provided through the pension plan to current active and inactive employees that is attributed to those employees' past periods of service (total pension liability), less the amount of the pension plan's fiduciary net position. The requirements of this statement are effective for the periods beginning after June 15, 2014. This Statement will be adopted during the year ended September 30, 2015. The impact of the new standard has not been determined; however, it is anticipated that it could result in the accrual of a significant liability in the financial statements. The GASB issued Statement No. 69, Government Combinations and Disposals of Government Operations. This Statement will improve accounting for mergers and acquisitions among state and local governments by providing guidance specific to the situations and circumstances encountered withing the governmental environment. Requirements of this Statement are effective for financial statements whose fiscal year begins after December 15, 2013. This standard will be adopted during the year ended September 30, 2015. This Statement is not anticipated to have any significant impact on the City. 65 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30.2OI4 The GASB issued Statement No. 71, Pension Transition of Contributions Made Subsequent to Measurement Date. The objective of this Statement is to address an issue regarding application of transition provisions of Statement No. 68, Accounting and Financial Reporting for Pensions. The issue relates to amounts associated with contributions, if any, made by a state or local govemment employer or non-employer contributing entity to a defined benefit pension plan after the measurement date of the government's beginning net pension liability. Requirements of this Statement are effective for financial statements whose fiscal year begins after June 15,2014. This standard will be adotped during the year ended September 30,2016. The impact of the new standard has not been determined. NOTE 16 - STJBSEQUENT EVENTS: On December 29,2014, the Historic Prattville Redevelopment Authority, a component unit of the City, purchased the Continental Eagle cotton gin factory in Prattville, Alabama for approximately $1,700,000. Debt service payments on the purchase will be made through annual appropriations from the City. NOTE 17. CHANGE TN ACCOUNTING PRINCIPLE: In fiscal year 2014, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported as Assets and Liabilities, which establishes accounting and financial reporting standards that reclassifu, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities. 66 CITY OF PRATTVILLE. ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30.2OI4 NOTE 17 - CHANGE IN ACCOIJNTING PRINCIPLE: (continued) One of the requirements of Statement No. 65 was that debt issuance costs must be recognized as expense in the period incurred. The implementation of Statement No. 65 resulted in the restatement of the beginning net position of the governmental activities in the government-wide financial statements. The deferred charges for issuance costs were restated as an expense of prior periods and resulted in the adjustment below: GOVERNMENT.WIDE FINANICIAL STATEMENTS NET POSITION AS ORIGINALLY NET POSITION STATED ADJUSTMENTS AS RESTATED Governmental activities : Unrestricted Change in reporting for deferred charges for debt issuance costs Total governmental activities Business-type activities : Unrestricted Change in reporting for deferred charges for debt issuance costs Total business-type activities STATEMENT OF NET POSITION PROPRIETARY FUNDS $ 7 ,67 1,7 54 $ 7 ,671,7 54 $ (964,405) (964,405) 7,671,754 $ (964,405)6,707,349 6,7 55,17 5 $ 6,755,175 $ (22,66tr (72,661\ $ (72,661\ L 6,682,5146.7 55.17 5 NET POSITION AS ORIGINALLY NET POSITION STATED ADJUSTMENTS AS RESTATED Wastewater: Unrestricted Change in reporting for deferred charges for debt issuance costs Total wastewater $ 5,506,957 $ 5,5A6,957 $ 5,506,957 $ (72,661\ (72,661\ The September 30, 2013 change in net position of the governmental activities and business-type activities was decreased by $35,929 and$4,202, respectively, due to the application of this standard. Accordingly, the balances of $928,476 and $68,459 reduced net position of governmental activities and business-type activities, respectively. 67 REQUIRED SUPPLEMENTARY INFORMATION CITY OF PRATTVILLE, ALABAMA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS OF THE CITY'S DEFINED BENEFIT PENSION PLAN LAST THREE FISCAL YEARS ACTUARIAL ACCRUED ACTUARIAL LIABILITY UNFUNDED UAAL AS A PERCENTAGE OF ACTUARIAL VALUATION DATE September 30, 20ll September 30, 2012 September 30, 2013 $ 29,406,664 $ 42,166,299 29,7 52,154 40,7 60,572 32,730,300 45,194,572 VALUE OF (AAL)AAL FUNDED COVERED COVERED ASSETS ENTRYACE (UAAL) RATIO PAYROLL PAYROLL (a) (b) (b-a) (db) (c) (b'a)/c) $ 12,7 59,635 I 1,008,4l 8 12,464,272 69.7% $ 13,A66,762 73.UYo 12,341,426 72.4% 12,849,845 97.60/o 89.20/o 97.0% 68 CITY OF PRATTVILLE, ALABAMA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS OF THE CITY'S POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS LAST THREE FISCAL YEARS ACTUARIAL ACCRUED ACTUARIAL LIABILITY LTNFUNDED UAAL AS A PERCENTAGE OF ACTUARIAL VALUATION DATE September 30, 20ll September 30, 2012 September 30, 2013 VALUE OF (AAL)AAL FLTNDED COVERED COVERED ASSETS UNIT CREDIT (UAAL) RATIO PAYROLL PAYROLL (a) (b) (b-a) (/b) (c) (b'a/c) -0- $ -0- -0- 2,969,079 $ 2,969,078 3,848,992 3,848,992 4,002,952 4,002,952 0.0% $ l3,l l0,l 14 0.0% 13,570,036 0,00 13,721 ,3 I 9 22.65% 2836% 29j7% 69 SUPPLEMENTARY TNFORMATION STATISTICAL SECTION This part of the City of Prattville, Alabama's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary infonnation says about the City's overall financial health. CONTENTS 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 of the City's current levels of outstanding debt and the City's ability 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 governments. 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. PAGE 70 79 75 83 85 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports. CITY OF PRATTVTLLE, ALABAT{A SCHEDULE I NET POSITION BY COMPONENT (accnral basis of accounting) 2W7 2008 2009 2010 20tl $ 200J01 $ r,747,516 S 232U,r26 5262s2,s9 S 27913,767 $ 2t,l97pl9 $ 33,1,14,191 2,670,892 12,053,513 6,9tt,387 6,238,962 3,761,59E 85 r251 653,478 (477,s2r) (29,514,316) (28,162,v24) (42,37E,7ffi\ {44,366',9&l (6,256,970\ (4228,,3791 s2.3s3.372 $ (t5.7132E7) $ 2,034,5E9 $ (9,tt7,139) $ (t2,691,595) $(17203,700) s GJAl,ztOi 2005 2M 2012 2013 2014 $ 31,4W291 s 36,021,544 $ 36,57E,653803,180 901,190 975467 (35,254,724\ (30215,3E5) (24,140,154) $ (3,051253) $ 6,707,349 $ 13,413,966 GOVERNMENTAL ACTIVITIES: Net investnent in capital assets Restricted Unrestricted Total govemmental activities net position BUSINES S-TWE ACTIVTTIES : Net investrnent in capital assets Unrcstricted Total business-type activities net position PRIT,IARY GOVERNMENT: Net investnent in capital asse8 Restricted Unrestricted Total primary government activities net position $ 3,751,152 $ 4236,099 $ 4,402,&3 1,467,A34 2146,415 3,2t1,U2 $ -$ -$ -$ -J -$ -$ -:: - t 200,301 $ 1,747,516 S 232K,126 t26252,59 S 27913,767 $ 2E,197,019 $ 33,1'l4,l9l 2,670,892 12,053,513 6,911,387 6,238,962 3,761,598 (477,t2r) (29,st4,316\ QE,r62924) (42,37t,7w\ (,14,366,960) (&2s6970t (422t2,37e1 s2,393372 $ (r5,7132r?) $ 2,034,st9 $ (e,887,t39) t (12,691,595) $(1720t,700) $ (t3t4,710) $ 5,218,186 $ 6,682,514 $ 7,684,485 $ 35,151,M3 $ 40,257,93 $ 40,981,296 E5l,25l 653,478 803,180 901,190 975,467 (33,787,6W\ (27,76E,970) (20,85E,312) $ 2,166,933 $ 13,389,863 $ 21,098,451 {o Notc: Periods pior to 2013 have not becn retroactively resBt€d for th€ impoct of Stat€mcnt No. 65 of thc Govemmental Accounting Sandards Board: Ircns Previouly Reported as Assets @td Liobilities. { GOIY-ERNMENTAL ACTTVTTIES E)OENSES: Governmenal activities : Crqteal government Public safety Public worla Cultural and recreational Interest on long-term debt Toal governmental activities ereens€s PROGRAf,{ REVENUES: Governmental activities: Charges fq scrviccs: Creoeral govsrnm€nt hrblic saf*y Public works Cultuml and recreatisrd Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Total primary govemment net expensc GENERAL REVEN{,JES AND OTHER CHANC'ES IN NET POSITION: Governmental activities: Tanes: Sdes taxes Real and posonal prop€rty taxes Mou fuel toces Lodging to<es Local gasoline tores Alcoholic beverage tarces Rental taxc Tobacco tar(er Excise ta:res Intergovernmental Invctrnent earnings Mscellaneour r€rrenue Gain (oss) qr sale of capiut assets Transfers Total governmental activities gencral revenues and othcr changes in nct pooition Totd governmental activities change in net pmition CITY OF PRATTVILLE, ALABAT,IA SCHEDIJLE 2 CHANGES IN NET POSMON (accrual basis of accounting) 2005 2W 2W7 2008 2009 201I 20t2 20t3 20t4 t4:3t,631 34,861,2,14 3s,35qm8 t6,?6s,361 $E,ocl,?,to tg,rU,rlz t6,9E4,318 16,t6t,707 $6,649,tm t7,250,2?|, 12,4t5,123 tl,a\83 ll,6to,7u t3,c2E,7t3 13,/ol,4t7 r4,719,t27 13,369,083 ta9lt,7ol 14,! l5Bl | 14,094,661 6,033,291 25,At,48 6,5rlt,ll5 20,541,t04 8,m5,500 a,755,792. 7,235,& 3,518,015 3,7t3,761 5,1tO,698 4362,297 1@tt474 a381,700 \sc\31s 2,s49AEo 44e,ru 2,&o,&2 r,76,95t I,t30,3?6 1,980,775 66,591 1,188,3t5 ZU7.2t3 2,327,227 2,445,tU 2,585,ffi 2,&,545 2t91W I,v^,9O7 1,727,232 25,72s,93s 45,Vr3,A5 27,937,?& 4s,r6/.,780 34,495,161 37,634,6t5 32,t29,W2 &!g 2t,27r,755 tO,233,&5 3,5EOJI3 3,g3g,m 4,554,Ot5 5,1&t,t65 4,901,819 4,574,9v3 4,990,89,1 5,351,940 5,525,W 5,499,156 l,3l0,t3l 1,417,90 1,,164,651 t,781289 I,ml,E53 r2A73A 1,553,044 l,5l?,963 1,66t,549 r,7o9,921 2,993,596 3,219,936 3,969,?9t 3,9902(b 3,9t,435 4,412,6E9 5,40O,6tO 2&,74 209,831 2?6.iffi 303,580 3l8,gl 26t,429 261W 238219 2t4,t99 209,CI 251,562 5,252 l,0t5,Ci5 3t5,Ot3 46OJ08 313,&), 206,:16l l9t,703 ll\Ol2 2A,ffi 71,025 1245,57a \ s,tu 2,gJ7,W 2,t22,69 5,t47,250 a65t,54t 4,641,690 1,417,033 8,359,823 9.818,819 12,022775 t3,il9,959 1\&4,941 t1,t69'37t 18.223,t50 10,l/(),106 JW E.948,697 (17,366,1 12) (35,254,8:15) (15,9r4,9t5) (31,5r49r r) (2r,t50,2il1 (24,46,s,r57\ (13,906,142) (17,127,33) (16,009.578) (21,284,948) I 1,580,120 1,638,862 242,684 1,039,030 849,691 298,4U 243,419 134,507 54,098 15,357 165,793 772,83A (lqzol) 13,18t,413 2,213,782 239,89|1 1,185,871 E74,676 279,493 228,743 135,752 72,lEl 9,O92 232,387 872,896 21,n1,765 2,690,055 l,&7,626 941,261 40E,gfl) 346,089 134,656 65,949 l&,9& 359,099 54,747 I1,876,995 12,553,ffi 1,798,544 2,65,975 242,416 243,557 1,075,989 1,18y'.,254 912,030 822,55E303,214 217,260 277,380 293,337 137,247 137,009 14f,969 97,585 24,228 17,753 182,995 ffi,767 742,W 530,544 13,221,492 14,139,501 16,691,014 19,736,422 20,602,498 2,481,450 2,500,129 2,545,751 2,68t,777 2,651,051 238,361 240,547 239,616 1,012,104 1,063,67 1,090,108 1,025,328 l,2A\424 913,279 899,562 8E6,135 898,009 906,939281,722 286,497 291,914 295,533 311,045 247,575 239,858 300,750 326,620 3l5,l9l 147,4n '49J,22 155,641 155,396 14\723 67,061 18,972 16,&7 1t,749 70,81? 9,159 161,534 153,240 286,883 39,410 42,318 32,621 26,685 69,67 3E6,661 206,845 226,695 476,471 625,501 (3,374,093) (2o0,ooo) 17,015,664 17,716,013 18,t682$ lqs93,l83 19,(X5,764 _J:e$rq 22,630,132 Z2,s@,7sO 26,696,656 2t,035,U1 s also..8) f/t?518rt1r 3 ,r{12r? _!4Il?1 7r3} 3 arro1456r s /15r?rosr 3 r78rqo 3 5.133.15? S 10.5t?.0?t S 6.750.153 {t\) BUSINES S-TY?E ACTIVTTIE S E)PENSES: Sanitation Wast€wat€r Tcd business-typ€ aaivities er(penses REVENUES: Charges for services. Saniation Wastewater Cepitel grants and conributions: WasteqNatcr Total business.typc ac-tivities revcnucs Total business-typc aaivitia nct prqgram rev€nue OTHER CI{ANCIES IN NET ASSETS Mscellaneqrs rwenue Transfers Total business-type activities change in net position Toul primary government change in net position Notc: BsirctyF &riviti6 Fi6 to 2012 w Mtrd f6 u gdcmcntel rcrivitiq. Ncic: P6iodspriqto20t3harcaotbenrcauaivdyromcdfcttrcinpaaofstrlqrotNo.6sdthccffin@tslAmndngStrndardsBud: ItGtr PsiulyRrporod c Ar*a udUabilitie. CITY OF PRATTVILLE, ALABAT{A SCHEDI,JLE 2 CI{ANGES IN NET FOSITION (accrual basis of acco,rnting) 2005 2006 2008 2W9 2010 201 I 2013 2014 $ 2,069,31t $ 2,230,497 $ 2,463,315 2,515,354 2,170,077 2,163,675 4,5U,672 5,000,574 5,226,99t) 2,392,771 2,447,844 2,452,49E 3,874,248 3,851,668 3,7?9,267 160,324 30,401 6,427,343 6,329,913 6,181,365 1,w2,67t _ 1,329,339 954,375 rA22 3,44E 5,055 3,314,093 _ 200,m 3,375,515 _ 203,448 5,055 t - t - $ - s - s - $ - $ - l5'21t,186 $!l!2\4$ 959,430 -- _:_ rlM r/t"{rrrr?r r ,g::12? srrr rrf ?rsl s {rso445d s (4.!.!Z!9:!__!_9.78.em__!_10.65t.643__@99:__!_2J91!!i_ GENERAL FUND: Reserved Unreserved Nonspendable Restricted Committed Assign€d Unassigned Total general fund ALL OTHER GOVERNMENTAL FUNDS: Reserve4 reported in: Capial projects fund Reserve4 reported in: il Debt service fund Unresend reported in: Special revenue funds Unreseroe4 reported in: Debt service fund Unreservd rcported in: Capitat projects fund Nonspendable Resticted Committed Assigld Unassigned CITY OF PRATTVILLE, ALABAI\{,A SCHEDULE3 FI,JND BALANCES OF GOVERNMENTAL FI'NDS (modified accnul basis of accounting) 2oo5 2W 2@7 200E 2W 20lo 20ll 2ol2 2013 ml4 I tJ77,rr4 $ 2,03t204 $ 944,030 $ I,lEl267 I I,(X3,077 s t2r,293(r,42e)s7\ (1,370,935) (s4s,4Q) Q44,s77) (316517) (23r3,2u) $ 159,850 $ 98,908 $ 102,322 $ 114,704 653,47t 2A4,694 280A24 348,192 12,185 2,567,260 3,381,590 4,E55,104 172,653 1235,310 261,383 46E,E3E 550,285 1,099,168 3,053J54 _lj1191l ] 347js7 s 6f,o,26s $ 3e8,588 t 11!,690 S 726,5& $(l,49lB9r) S 1,s48I51 $ s205340 i79'n273 $11,429,t49 $ ffi.592 $ 6,176,905 j 2,@7,652 s 2,sr0352 $ 2J71,105 s 6lE,86t 2554,175 1,060,466 1,192,527 858J97 t0,l7E tt,l5t 326,192 311,735 63,082 373,558 566.257 2fr,tm 258,m9 255,061 (61,295) 169,55t 2,053,r0o 2,%4,424 2A4s,873 2171,8E6 2s25t (357t85)s 229e $ 480,627 S 598186 $ 620,76 67o,E2E20,573 305,771503290 t01,56 I - 1od.r.'hrdq!6rnla :19!4_ _r_gi2sg- llg4 ljlg- _!l,7'1E lg4!- _!___@ _!___!ars- LlJ!!4- -!-l@ liLr P..ton Fi.r. ,r I hv. dDa nft-dldy nd.d 6.lb iold of &6.d Na 5,r.fib. G@ualr A@!d!s sd ldn Ibd Be 14..n!t ad t C@dllddIyFD.dtilb. CITY OF PRATTVILLE, ALABAI\,TA SCHEDTJLE 4 CHANGES IN FUND BALANCES OF GOVERNMENTAL FT.JNDS (modified accrual basis of accounting) 2005 2006 2007 2008 2W9 2010 201I 2012 2013 2014 $16pE0,s95 $r6,770,7U jr7$7s,r44 $13,478,809 S18,610,534 $19,537,355 522,217,576 $25,t44,E34 S26,201,688 S 27A56,301 3,580J13 3939,277 4,654,085 5,183,865 4,901,819 4,874,993 4,990,E94 5,351,940 5,525,U7 s,499,1s6 2$,6A9 78A,sO2 222,043 302,118 343,156 2t7,7}r ls3240 54t280 I,103,096 1,428,058 4,177,380 4,5ll,611 53t9AZ0 5,493,106 4905,6s2 5,564,563 6,655,70s 1,223,88E r,2U,7sO t,392,ss6336,E7E 352,896 418,609 s37,086 4t6,065 4N,692 536298 s32,321 630,728 614,714 644,772 232,387 39,410 u,844 32,621 26,685 67,371 164,250 938,6t3 t,t70,940 849,160 t,l97,t6l 1,109,616 1,099,914 908,449 1,067,962 1,030,355 95,{,?E42s,394,688 27,s26,0r0 29,783,233 31,424,s32 30,396,252 31,740,062 35,494,7t3 33,895,910 35,843,835 36812,019 {5 REVENUES: Taxes Licenses and permits Intergovernmental revenues Charges and fees for services Fines and forfeitures Interest Miscellaneous Total revenues E}GENDITURES: 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 oTrmR FTNANCTNG SOURCES (USES): Transfers in Transfers out Transfers to component units lssuance of bonds lssuance 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 service as a percentage of noncapital expenditures 4,161,340 I1,665,559 5,613,345 1,780,612 2,193,165 4,825,371 5,261,945 6,280,215 6,318,533 11,141,574 I1,153,949 12,746,727 12,989,658 24,664,571 5,588,300 18,984,015 7,182,300 |,796,512 2,005,573 2,152,013 2,488,332 2,493,938 8,505,999 3,756,955 2,811,090 7,537,961 5,973,871 5,757,564 14,023,058 12,712,387 12,346,346 8,007,685 6,519,457 3,332,2072,371,770 1,749,355 1,434,3093,290,520 478,136 379,900 5,039,571 5,931,830I1,852,136 11,731,292 3,210,261 4,18y'.,523 1,436,057 1,565,747 1,769,645 1,709,945 1,476,500 2,599,045 1,418,665650,279 650,342 1,917,209 4,461,246 32,254,124 (4,461,246\ (32,254,124) (302,350) 30,470,000 625,000 625,000 157,792 4,979,825 16,586,498 7,276,949 3,149,228 (4,979,825) (16,586,498) (7,276,949) (3,149,228) 15,300,000 1,621,373 2,670,000 6,315,000 136,099 1,000,000 300,000 5,637,303 307,808 451,767 930,760 260,000 (6,322,926) 2,941,830 1,750,499 5,525,97A 4,610,138 5,215,833 4,896,087 (5,525,970) (4,699,055) (9,361,585) (7,M4,464) 9,815,000 9,955,000 (9,434,619) (10,067,843) 1,445,912 1,816,556 2,331,364 9,073,190 4,070,296 4,011,121 2,158,816 2,430,712 2,465,127 2,492,666 2,230,996 2,165,133 _ 741,010 _ 366,450 _ ztl,4tt E3,464 93,7E2 2?,540,800 48,912,363 _ 35,851,640 47,891,103 36,037,181 40244,896 38,999,062 29,551,618 29,567,388 2990940E (2,r46,tr21 (21,356,353\ (6p68,407) (16J66,s7r) (5,640,929) (E,504,834) (3,sO4,2791 4,344,292 6,276,447 7,402,611 2,586_ 480,?46 _ (87,428) _na!J_ (m,Yn\ 2ms2s 4E3,02E 3t,575,746 307,808 15,800338 3,552,133 3,395,815 5,637,303 (88,917) (3,E56370) (2,074,595) sfl-663-084) $10-189.393 $(5.750.59e) $ (666.133) $(2.088.796) $(5.109.019) $ 2.133.024 $ 4,25s,375 j 2,420,077 $ 4,928,016 8.39o/o 8.600/o 12.20%9.00o/o 12.78o/o 13.574/o 30.02%21.60%22.52o/o 16.97Yo CITY OF PRATTVILLE, ALABAIVI{ SC}IEDI.'LE 5 NET TAXABLE SALES BY CATEGORY 2005 $ 45,541,,937 78,477,260 90,016,728 59,626,869 4,599,982 44,164,704 8,639,890 ?aM $ 44,070,516 $ 79,119,351 78,357,966 63,443,394 5,138,448 2007 44,057,973 $ 75,830,662 74,734,128 62,844,097 2008 2009 49,891,510 $ 61,766,37370,156,573 73,331,24465,384,586 46,030,674 2010 $ 72,438,782 58,984,572 1,512,332 62,888,874 20,566,253 39,128,465 22,447,212 71,839,635 77 ,7w,2ll 201I 20t2 201,3 20t4 $ 91,049,639 $ 78,698,228 $ 78,722,M9 $ 78,062,472Apparel stores Food stores Automotive Manufacturing machine Restaurants Home furnishings and appliances Building materials Service stations Other retail stores Totals City direct sales tax rate Source: City's Finance Departrnent. 1,225,203 51,658,420 48,684,662 2l,761,093 1,813,517 53,838,468 21,877,677 39,460,896 22,983,026 63,159,678 |,512,272 17,869,458 41,682,202 21,425,351 76,108,625 62,669,770 1,855,136 17,145,73Q 40,414,350 15,120,821 77,168,242 68,449,774 2,025,097 83,073,365 16,256,815 42,467,529 19,967,285 80,331,913 72,277,636 16,665,87 5 99,976,397 15,752,779 42,313,77L 17,757,144 69,407,860 72,159,819 6,693,246 13,638,375 44,491,167 36,036,047 9,765,852 [0,784,193 111,509,853 118,363,518 t49,544,076 256,892,888 2U,770,66 262,697,325 2ffi,079295 253,682,787 259,689,798 256,775,123 g u2,577,223 g u2,7so2t2 $ 460,s24A22 $ 579,293,310 3 56!,q72,561 $ 612,503,,150 3 639,8E9,966 $ 617,855,265 S &7,820,3s4 $ 579913,109 2.50o/o 2.5OYo 2.50%2.50Yo 250%2.50% 3.50Yo 3.54%3.50% 3.50o/o {(.rl CITY OF PRATTVILLE, ALABAMA SCHEDULE 6 SALES TAX REVENUE PAYERS BY CATECORY FISCAL YEARS 2OO4 THROUGHaOI4 2012 2A13 20t4 NUMBER PERCENTAGE PERCENTOF OF TAX REMITTED NUMBEROF TAX TOTAL TAX BY TOP TEN OF FILERS LIABILITY LIABILITY TA)(PAYERS FILERS LTABILITY LIABILITY TA)(PAYERS FILERS LIABIL]ry LhBILITY I4OA,YERS PERCENTAGE PERCENT OFOF TAX REMITTED NUMBERTAX TOTAL TAX BY TOPTEN OF PERCENTAGE PERCENTOFOF TAX REMTTTEDTAX TOTAL TAX BY TOP TEN Apparel stores Food stores Automotive Machine Restaurants Home furnishings and appliances Building materials Service stations Other retail stores Totals 20 $ 2,754,4388 2,663,802 313,349 13,91381 2,525,59412 600,101g 1,414,502 25 529,229 2.500/o 13.0 t% 10.30%l2.58%o l2.l4o/o 1.48o/o A.07Yo 11.930 2.83% 2.23% 6.68% 6.410/o 22 $ 2,755,2868 2,700,888 13.01% 8.90o/o 12.760/o ll.50o/o 1.620/o 0.070/0 t3.73% 2.69% 2.0ff/o7.02o/o 6.300/o 3.30o/o 22 $ 2,732,1878 2,811,61722 361,38823 124,994107 3,499,174 l2.9lo/o 5.49o/o 13.28o/o ll.62oh l.7lYo 0.59o/o t6.s3% 2.600/o l..8lo/o 7.00o/o 6.06% 2.94Vo 23 2l 23 22 342,249 15,188 931 8,878,898 41.94y. 6.1501o 931 --19!9J1:- 42-936/o 9-l0o/o l,l8l 8,987,129 42.45o 10.507o _lJ2__Ugg21g_ g?.0% 2009 g5 2,907,568 t2 568,989 I 1,486,364 25 698,855 1,136 $ 20-564,530 97.l4yo 2010 lt 551,3478 1,480,98225 621,500 _Jg__$_2.Ul9J!__ too.oo% 201I {o\ NUMBER OF l4 8 24 22 89 t2 8 30 980 $ 1,544,L59 1,833,281 230,153 13,601 1,345,962 546,942 996,522 574,576 6,L19,267 17 $ 1,810,970 8 1,795,99127 294,92325 11,342 17 $ 2,300,0088 2,2CI5,07227 315,798 25 LL,342 PERCENTAGE PERCENTOFOF TAX REMITTED NUMBERTAX TOTAL TAX BY TOPTEN OF PERCENTAGE PERCENT OFOF TAX REMITTED NUMBER TOTAL TAX BYTOPTEN OF PERCENTAGE PERCENTOFOF TAX REMITTEDTAX TOTAL TAX BY TOPTENTAX FILERS LIABILITY LIABILITY TAXPAYERS FILERS LI.ABILITY LIABILITY TA)$AYERS -FILERS LIABILITY LIABILITY TA)(PAYEts$ Apparel stores Food stores Automotive Machine Restaurants Home furnishings and appliances Building materials Service stations Other retail stores Totals ___1,!!L lJJJ9llg3_ 100.00% 3.6s%8 978,212 6.94%29 561,180 3.980i.ol0.7Uo/o ?f!_ 6,565,423 46.54Yo l,l8o $ 14,104,419 lo9.oo% ll.Taoh 13.89o/o 1.74o/o 0.10% r0.20% 4.ls%o 7.48o/o 4.35o/o 46.39Vo 8.49o/o 12.25o/o 2.54Vo 6.74o/o 90 1,572,222 I l.l5%12 514,156 95 1,969,644 12 507,095 8 1,182,E48 28 608,003 13.81% 7.690/o 13.24o/o ll.97o/o l.No/o 0.07o/o I1.83% 3.05o/o 2.18o/o 7.10o/o 6.200/o 3.65% 12.84% t2.73% 2.09o/o 0.08% 8.05% I 1.83% 2.44% 6.22o/o 9.55o/o 918 7.550,736 - 45.35% 9.22yo ____LEg._ _SlEg:g#_ too.oo"/"- CITY OF PRATWILLE, ALABAI\,IA SCHEDI.JLE 6 SALRS TAX REVENT.JE PAYERS BY CATECORY FISCAL YEAR.S 2W THROUGH 2OI4 NUMBER OF PERCENTAGE PERCENTOFOF TAX REMITTED NUMBERTAX TOTALTAX BYTOPTEN OF PERCENTAGE PERCENTOFOF TAX REMITTED NI.JMBERTA)( TOTAL TAX BY TOP TEN OF PERCENTAGE PERCENTOFOF TAX REMITTEDTAX TOTAL TAX BY TOPTEN FILERS LIABILITY LIABILITY TA)(PAYERS FILERS LIABILITY LIABILITY TNEAYERS FILERS LIABILITY LIABILEY TA)(PAYERS Apparel stores Food stores Automotive Machine Restaurants Home firnishhgs and applianccs Buildiqg marerials Service stations Othcr retail storcs Totals Apparel stores Food stores Automotive Machinc Rcstaurants Home furnishings and appliances Building materials Service stations Oth€r raail storcs Totals e$ 6 30 1,101,763 1,977,984 391,790 1,586,085 lzt,46l 1,112,279 2U,146 13.33o/s 2.4T/o 4.07o/o 6.40o/o 12.560/o 1.35o/o 1.354/o 7.XJVI 12.48o/a ll.600/o 20.82o/o 4.12o/o 16.6f/o 1.35o/oll.7lo/o l0.7lo/o 2.57o/o I l.E07o 13 $ 1,101,449 10.9*/o7 1,895,767 18.92o/o26 373,671 3.73o/s l0.3lo/o 20.55o/o l.5lo/o 8.10o/o 17.7lo/o l.6Ea/o 7.E2% 326,923 9,189 14 $ 1247,288 9.48o/o7 t,753,914 25 t7 69 l0 5 30 955 75 1,571,102l0 167,331I 900,qll28 269,ffi51,055 3.73t,602 15.680/o 1.610/o 8Sf/o 2.69/o 37.33o/o g4 1,291,461 9.E20/o t2 340,959 2.5f/o 9.25o/o 2,959,088 31.140/o _JJl:_ _I rygl2!2g_ 100.00"/" 2005 l-223 $10.01E"42E , ,lW'ro.!o/u t l2l7,tl72t 544.927 4.14o/o l0.98o/o I,150 6,422,322 48.83o/o 1.345 $ 13.153.2m 14,9.0,,""4. {{NUMBER OF 7A l0 6 30 9 $ I,l3E,54E6 1,961,93231 450,084 PERCENTAGE PERCENT OFOF TAX REMITTEDTAX TOTAL TAX BY TOP TEN FILERS LIABILITY LIABILITY TA)(PAYERS 12.29/o Ll.l1o/o 2l.l8o/o 2l.llo/o 4.860/o 2.t2o/o 16.Wo l.24Yo 1,490,672 I15,000 I,l04,l l8 215,997 ll.92o/s 2.33o/o 10.92o/o ll-93o/o9/l3 2.7t7.76 30.Wo...--*- ___1J9L _9:,264,M_ tm.00% Notc: Dr o confi&miality irsm, rhc oamcc ofthc rco lagcst rcvm paycrs uc nc aveilablc. Thc caagcicc paccalEd ac incndcd to providc altmlive informatio rcgrding ttc lourcca of thc City's rwcnuc. CITY OF PRATTVILLE, ALABAMA SCHEDULE 7 DIRECT AND OVERLAPPING SALES TAX RATES FISCAL YEAR CITY DIRECT RATE AUTAUGA COUNTY DISTRICT TAX STATE OF ALABAMA TOTAL SALES TAX 2005 2006 2007 2008 2009 2010 20tr 20t2 2013 20t4 FISCAL YEAR 2.syo 2.50 2.50 2.50 2.50 2.syo 3.504 3.50 3.50h 3.s%o CITY DIRECT RATE 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% ELMORE COUNTY DISTRICT TAX 4.000 4.A00h 4.000 4.A00h 4.00Yo 4.A00h 4.00Yo 4.000 4.000h 4,00vo STATE OF ALABAMA 8.sYa 8.50 8.50 8.50h 8.sYo 8.sYo 9.syo 9.s%o 9.sYo 9.50 TOTAL SALES TAX 2005 2006 2007 2008 2009 2010 20tl 20t2 20t3 20t4 2.504 2.50 2.50 2.50 2.sYo 3.50 3.s%o 3.50 3.50 3.sYo 4.000h 4.000h 4.000h 4.0aoh 4.Oaoh 4.000 4.00Yo 4.}ao 4.$aoh 4.004h 8.50 8.50h 8.544 8.50h 8,sYo 9.54 9.504 9.54 9.sYo 9.s%a r% t% r% r% r% t% r% t% r% t% r% t% t% t% t% t% t% r% t% t% Sources: City Finance Department, Autauga County Revenue Commissioney's Office, and Elmore County Department of Finance. 78 CITY OF PRATTVILLE, ALABAN{A SCHEDULE 8 RATIOS OF OLTTSTANDING DEBT BY TWE C'O VERNMENTAL ACTI VTTIES FISCAL YEAR GENERAL OBLIGATION BONDS TERM LOAN LIMITED OBLIGATION WARRANT $ 1,594,489 1,594,489 |,594,489 1,594,489 1,594,489 1,580,851 1,567,775 1,558,312 BUSINESS.TYPE ACTIVITIES CAPITAL LEASE TOTAL OUTSTANDING DEBT PERCENTAGE OF TAXABLE SALES (b) 3.4lYo 10.08% 9.80Yo 10.260/o 10.81% 10.18% 9.20o/o 8.35Yo 7.50Vo 6.760/o PERCENTAGE OF TAXABLE SALES (b) 0.44o/o 0.48% 4.40o/o PERCENTAGE OF TAXABLE SALES O) , PERCENTAGE PER OF PERSONAL CAPITA INCOME (a) (a) 2005 2006 2AO7 2008 2409 2010 201 I 2012 2013 2014 FISCAL YEAR GENERAL OBLIGATION BONDS 14,595,000 M,352,609 43,102,043 56,994,583 57,099,163 57,699,465 54,755,183 49,212,046 47 "027,06444,415,437 99,344 1,025,708 1,803,956 1,755,749 701,035 486,973 294,946 437,071 761,348 1,445,462 1,239,844 748,347 88,562 15,081,973 44,647,555 45,133,603 59,449,764 6l,164,822 62,337,354 58,853,728 51,582,494 48,594,839 45,973,749 r.t0% 3.04o/o 2.90o/o 3.620/o 3.680/o 3.7r% 3.26% 2.73% I * 0.14o/o * * t.t0% 3.Mo/o 2.90% 3.62% 3.68% 3.7|o/s 3.260/o 2.87o/o I :$ 315 909 906 I,l8l 1,205 1,142 1,065 929 880 :t TERM LOAN CAPITAL LEASE TOTAL O[.NSTANDTNG DEBT PERCENTAGE PER OF PERSONAL CAPITA INCOME (a) (a){\o LIMITED OBLIGATION WARRANT PRIMARY GOVERNMENT 20t2 20t3 20t4 FISCAL YEAR 2,490,000 3,095,767 2,695,120 14,595,000 44,352,649 43,142,043 56,994,583 57,099,163 57,699,065 54,755,183 51,742,046 50,122,831 47,110,557 99,344 1,025,708 1,803,956 1,755,709 701,035 1,594,489 |,594,489 1,594,489 1,594,489 1,594,489 1,580,851 1,567,775 1,558,312 486,973 294,946 437,071 761,348 1,445,462 1,239,844 748,347 326,636 9,334 15,081,973 44,647,555 45,133,603 59,449,764 6l,l&,822 62,337,354 58,853,728 54,310,568 51,699,940 48,668,869 3.4t% 10.08% 9,80% 10.260/o 10.81% 10.18% 9.20o/a 8.790h 7.98o/o 7.160/o 49 56* 315 909 906 l,l8l 1,205 1,142 1,065 918 936 * 238,074 9,334 2,728,074 3,105,101 2,695,120 GENERAL OBLIGATION BONDS TERM LOAN LIMITED OBLIGATION WARRANT CAPITAL LEASE TOTAL OUTSTANDING DEBT PERCENTAGE PER OF PERSONAL CAPITA INCOME (a) (a) 2005 2006 2007 2008 2009 2010 201I 2012 2013 2A14 Notes: Details regerding thc City's ousanding debt can be found in the notes to the financial statements. (a) See the Schcdule ofDernographics and Economic Statistics on page 83 for personal income and population data. @) See page 75 for nct taxable sales. ' lnfonnation not availablc. CITY OF PRATTVILLE, ALABAMA SCHEDULE 9 RATIOS OF NET GENERAL BONDED DEBT OUTSTANDING GENERAL FISCAL OBLIGATION YEAR BONDS LESS: AMOUNTS AVAILABLE DEBT SERVICE FUND PERCENTAGE OF NET TAXABLE PER CAPITA 3,240h $ 299 9.360h 844 9.070A 839 9.64sh 1,109 9.9loh 1,105 9,4l%o I,056 856Yo 991 837Vo 93 I 7 3106 9A4 693Yo * TOTAL , s_$LEs (a) - -. ,. ,. (bL 200s 2006 2007 2008 2009 2010 20tl 20t2 2013 20t4 $ 14,595,000 44,352,609 43,102,043 56,994,583 57,099,163 57,699,065 54,7 55,183 51,702,046 50,122,931 47 ,l10,557 $ 264,820 2,912,184 I ,3 I 5,527 l,l3 1,232 1,027 ,955 80, I 78 5 l0 243,627 7 s 14,330,180 41,440,425 41,786,5 l6 55,863,351 56,071,208 57,618,887 54,7 55,178 51,702,036 49,919,204 47 ,l10,550 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (a) See page75 fornettaxable sales. O) See the Schedule of Demographics and Economic Statistics on page 83 for population data. * Information not available. 80 CIry OF PRATTVILLE, ALABAMA SCHEDULE IO DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF SEPTEMBER 3O,2OI4 GOVERNMENTAL UNIT DEBT OUTSTANDING ESTIMATED PERCENTAGE _APPLICAB-I'E (a) ESTIMATED SHARE OF DIRECTAND OVERLAPPTNG DEBT Debt repaid with property taxes: Autauga County Debt repaid with property taxes: Autauga County Board of Education Debt repaid with property taxes: Elmore County Debt repaid with property taxes: Elmore County Board of Education Subtotal, overlapping debt City of Prattville, Alabama direct debt Total direct and overlapping debt $ 13,47 5,291 35,7 43,738 I ,61 8,854 54,987,000 6750Vo $ 9,095 ,821 67s00h 24,127,023 6.400.h 103 ,607 6.4voh 3,519,168 36,845 ,619 45 ,973,7 49 92,919,368 Sources: Assessed value data used to estimate applicable percentages provided by the Autauga County Revenue Commissioner and Elmore County Revenue Commissioner. Debt outstanding data provided by the County. 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, ofeach overlapping government. (a) The percentage of overlapping 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 County's boundaries and dividing it by the County's total taxable assessed value. 8l oot'J CITI OF IRATTVILLq AI,ADAMA SCIIEDULE II LE(IAL DBI MARCIN |rlltffM.-TION 2@ 2!!6 Ut 2@ W 20.1! 20ll &]2 20ll 20!! N..l|lg6dhfEofd,.hi.FlFty t2!.911l, a u1:rrr251 t w4stljlo a13a211ln t 3.r.tt9,62o tr5q6zt,tno tr!3,,16t,4,0 t 355,9:x,l,o t,olj66j6(, t3m,&r,l2o D.!.liEir a5,r!t9rl, t29122t1 5!Jll532 67,6t45r4 @:ng 7r:I2s,rg 7UO2N 7r3',,ua e5t2n 4'111224 rdrd.t tr&fi..ucrofton lotpej6s ----:L!€pI- e,.53,r7 ----2g4j4!- tl,6to:0, 14.15,6e. ---.]3!!!!E- ell!157 ia-(,7.oa ---34jrq:- L{r.thi''ein a 312r9,&t ,4l,78t,tla a 4q723,165 l5!,(D5Jto l rr.O,9.ru I J7:09JI t 5325tJtl l6lJ!q0ll | 615!6246 t 17t?;t19 T.{.1 etd.5t.lpliobi.ro it fiDn!.F!.d.S.of.brlinit X.ll* 17.8* l6''a. l+rba 16'1'/r r759q 117't 2tx* 33ftN L.ad Dd. M.t!i! OLrhid 6i litcrl Y{2014 tuEd"'a ry Ht liEir(2ott of,lor.l e.'cdv.lE) J_J!E!z_ D.6lqliElbt EEnG6.lotl4|t@bod 23575@NeFyrtL tNlA L< Adlnet.sib6.rqtHlol!@l ot'lis.tiE.Ltl Tdl lad.st {PlictL to [Dn ----4AJP- r.ol.hh*i! ry N.n: Uds da. ts, ttr Cirr of ldriL, Arrb6.'r drEdr8 !G.l dli6ri! d.5t.hrld dtq...d mta ofi.rd.s6..rl Flo.dy vrtE By ls,llE !8d.blird@ d.at &U by .mrd r! dd.6. EFynq r@d dli8|dd td& CITY OF PRATTVILLE. ALABAMA SCHEDULE 12 DEMOGRAPHIC AND ECONOMIC STATISTTCS CALENDAR YEAR POPULATION PERSONAL INCOME (THOUSANDS oF DOLLARS) PER CAPITA PERSONAL TNCOME MEDIAN SCHOOL AGE ENROLLMENT AUTAUGACOUNTY UNEMPLOYMENT RATE oo(, 2005 2006 2007 2008 2009 2010 20rr 2An 2013 2014 47,870 $ 49,105 49,834 50,354 50,756 54,57 L 55,267 55,5 14 55,246 r,371,084 $ 1,467,514 1,55 5,999 r,640,204 1,664,766 1,679,53 5 1,804,87 r 1,889,867 28,642 29,885 3r,224 32,573 32,721 30,740 32,657 to,rot: 36.10 36.46 36.26 36.16 36.37 36.69 3 7.00 36.00 35.10 9,282 (04-05) 9,379 (05-06) 9,649 (06-07) 9,819 (07-oS) 9,854 (08-09) 10,076 (09- 1o) 9,877 (10-11) 9,825 (11-12) 9,642 (12-13) 9,737 (13- 14) 3.zAaA 2.90Yo 2.gAYo 4.50Yo 8.64% 8.0096 6.80Yo 6.80Yo 5.90Yo 5.44o Note: Population and median age information are based on surveys conducted during the last quarter of the calendar year. Personal income information is a total for the year. Unemployment rate information is an adjusted yearly average. School enrollment obtained from the local board ofeducation is based on the census at the start ofthe school year. * Unavailable CIry OF PRATTVILLE, ALABAMA SCT{EDULE I3 PRINCIPAL EMPLOYERS 20ll 2014 PERCENTAGE PERCENTAGE OF TOTAL CITY OF TOTAL CITY EMPLOYEES EMPLOYMENT EMPLOYEES EMPLOYMENTEMPLOYER Autauga County Board of Education International Paper City of Prattville, Alabama Prattvi lle Baptist Hospital Wal-Mart Autauga County Prattville Health and Rehabilitation Fras-Le M-Tek LoneStar Plastics Kinedyne Totals I,000 600 38s 235 480 165 154 * 100 r25 r30 6.380/0 3.83Yo 2.460 1s00h 3.06Vo 1.050 0.980 * a.83Vo 0.80% 0.64yo I,091 550 372 350 330 202 200 156 138 9l * 7,05Vo 35504 2.40oh 2.260/o 2,1304 l,3lo/a 1,290/0 l.}lvo 0,890 a.590/0 * 3,374 Source: Prattville fuea Chamber of Commerce. Note: Information does not include city govemment employment. Note: This schedule presents 20ll compared to 2014. Information for 2005 (nine years ago) is not presented because it is not readily available. Average number employed in City for 2013 was 15,477 per www2.labor.alabama.gov/LAus/LAuScities.pdf. http ://www2. labor.alabama. gov/LAUS/ClF/citybyyear.aspx?area:0000 I 9 * Unavailable 2l.53yo 3,480 22.480/a 84 CITY OF PRATTVILLE, ALABAMA SCHEDULE 14 FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION 2005 2006 200_7 2008 20_09 2010 za-rl 2012 2A13 Nt4 Function/Program General government: Executive Legislative Finance City Clerk Human resources Judicial Information technol ogy Vehicle maintenance Public safety: Police: Officers Civilians Fire: Officers Civilians Building division Public works: Engineering Facilities maintenance Planning and development Street Sanitation Wastewater Urban management Culture and recreation: Leisure services Performing and creative arts 4 7 7 4 2 4 3 l0 86 5 82 4 4 l0 l6 27 26 22 5 7 6 4 2 4 3 9 87 5 75 5 4 9 l4 26 26 22 5 7 7 4 4 4 3 9 85 7 85 4 4 l3 l8 28 25 23 5 7 8 4 4 4 3 l0 87 9 89 4 5 l3 22 28 26 24 3 7 7 5 4 6 4 l2 90 ll 89 4 4 l6 22 30 29 24 2 aJ 7 7 5 4 6 3 l0 92 9 88 4 4 l4 2l 29 28 24 2 l5 2 3233 7777 66s6 2333 4443 5666 tl12 6665 85 8l 78 84 8l 87 28 2825 23 2t 19 8l 82 99 79 83 72 4 32 3423 2s 23 30 9 4 4 l0 t2 t4 I t2 Totals 323 313 335 3s2 369 360 325 3ll 315 336 -------F Source: Human Resources. Note: 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 of September 30 each year. 85 FunctionlPrograrn General government: Building permits issued: Residential Residential remodel Commercial Commercial buildout, remodel, addition Building inspections conducted Building plan reviews Public safety: Police: Physical arrests Parking violations Traffic violations Fire: Emergency responses Fires extinguished lnspections Public works: Potholes repaired Street resurfacing (m iles) Wastewater: Average daily sewage treatment (millions of gallons): Autauga Creek Pine Creek Refuse collection: Garbage (tons per day) Trash (yards per day) Recyclables (tons per day) Sources: Various City departments CTTY OF PRATTVTLLE, ALABAMA SCHEDULE I5 OPERATTNG TNDICATORS BY FUNCTIONIPROGRAM 200s 2006 2007 2008 2009 313 351 t73 106 26 7,493 317 3,252 77 6,398 7,026 142 2,522 3,000 2010 l0 3,658 t49 3,035 348 6,299 5,199 I l5 2,996 2,000 3 2.18 1.87 1l 3,142 t47 3,208 373 6,454 5,221 I l3 2,725 2,000 r28 392 I 43 3,512 2r2 2,208 2s9 4,460 5,673 75 2,846 1,500 20rl 135 r06 201,2 2013 2014 l7l6t7l8 t20 131 327 343 812 49 56 4,506 5,688 l8l 441 2,128 2,757 r22 86 4,782 4,897 5,786 5,893 l0l 113 2,846 2,775 1,750 2,000 27 r.92 r.622.01 r.88 ooo\ 6,537 8,727 3,283 3,302105 89 3,531 3 ,942 6,199 6,44996 r43 2,291 2,395 3,000 2,000 7 2.54 2.061.67 1.77 7,455 6,472 325 177 3,288 2,651 253 r43 6,236 7,914 6,184 4,989 r 15 132 2,766 3,772 2,000 3,000 I r.90 2.3s1.88 r.99 r.75 r.70 1.60 1.90 1.72 1.90 38.s 189 1 CITY OF PRATTVILLE, ALABAMA SCHEDULE 16 CAPITAL ASSET STATISTICS BY FLINCTION/PROGRAM 2005 2006 2p07 2008 2009 2pl0 2,0rr 20r? 2013 ?w4 Function/Program Public safety: Police: Stations Patrol cars Motorcycles I 70 lt Fire: Stations 3 Fire engines 6 Ambulances 6 Refuse collection: Trash trucks 5 Garbage trucks 6 Public works: Streets (miles) Highways (miles) Streetlights Traffic signal heads Cultural and recreation: Acreage 330 Playgrounds 9 Baseball/softball diamonds 16 Soccer fields 9 Community centers 2 Senior citizens center I Sources: Various City departments. ll66 66l0 ll 3366 66 5678 330 330 99 16 169922ll ll 71 8l ll ll 33 66 77 66 99 330 3s4910 16 16 9922ll ll 82 8l ll 9 33 7777 66 99 209 23 2,450 270 354 354 l0 l0 16 16 99 22 ll lll84 84 8l9910 333788777 666988 2A9 2r2 2r2 23 23 23 2,45A 2,450 2,45A 270 270 270 354 10 l6 9 2 I 354 354l0 l0t6 16 9922ll Note: No capital asset indicators are available for the general government. 87