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FY15 Comprehensive Annual Financial Report - City of PrattvilleCITY OF PRATTVILLE, ALABAMA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2OI5 COMPREHENSIVE ANNUAL FINANCIAL REPORT Prepared by: Department of Finance Douglas C. Mosel*y, CGMA, CITP, CISA, CPA Finance Director INTRODUCTORY SECTION CITY OF PRATTVILLE, ALABAMA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2OI5 TABLE OF CONTENTS I. INTRODUCTORY SECTION Table of contents Letter of transmittal Certificate of Achievement for Excellence in Financial Reporting List of principal officials Organizational chart Map of the City II. FINANCIAL SECTION Independent auditor's report Management's discussion and analysis BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of net position Statement of activities Fund Financial Statements Balance sheet - govemmental funds Reconciliation of balance sheet of governmental funds to statement of net position Statement of revenues, expenditures, and changes in fund balances - governmental funds Reconciliation of statement of revenues, expenditures, and changes in fund balances of govemmental funds to statement of activities Statement ofrevenues, expenditures, and changes in firnd balances - budget and actual general fund Statement ofrevenues, expenditures, and changes in fund balances - budget and actual gas tax special revenue fund PAGE i-iii iv - viii ix x xi xii 1-3 4-t4 20 2t -24 25 15 16 L7 18 1,9 CITY OF PRATTVILLE, ALABAMA COMPREHENSTVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 TABLE OF CONTENTS (Continued) II. FINAI\CIAL SECTION (Continued) Statement ofrevenues, expenditures, and changes in fund balances - budget and actual judicial special revenue fund Statement of net position - proprietary funds Statement of revenues, expenses, and changes in net position - proprietary funds Statement of cash flows - proprietary funds Notes to Financial Statements REQUIRED SUPPLEMENTARY INFORMATION Schedule of changes in the net pension liability Schedule of employer contributions Schedule of funding progress of the City's post-employment benefits other than pensions OTHER SUPPLEMENTARY INFORMATION Statement ofrevenues, expenditures, and changes in fund balances - budget and actual capital projects fund Statement ofrevenues, expenditures, and changes in fund balances - budget and actual debt service fund III. STATISTICAL SECTION Financial Trends Schedule I Net position by component Schedule 2 Changes in net position Schedule 3 Fund balances of governmental funds PAGE 26 27 28 29 30-69 73 74 75 76 - 77 78 70 7l 72 CITY OF PRATTVILLE, ALABAMA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2OI5 TABLE OF CONTENTS (Continued) III. STATISTICAL SECTION (Continued) Schedule 4 Changes in fund balances of govenrmental funds Revenue Capacity Schedule 5 Net taxable sales by category Schedule 6 Sales tax revenue payers by category Schedule 7 Direct and overlapping sales tax rates Debt Capacity Schedule 8 Ratios of outstanding debt by type Schedule 9 Ratios of net general bonded debt outstanding Schedule l0 Direct and overlapping governmental activities debt Schedule I I Legal debt margin information Demographic and Economic Information Schedule l2 Demographic and economic statistics Schedule 13 Principal employers Operating Information Schedule 14 Full-time equivalent city govenrment employees by function Schedule 15 operating indicators by function/program Schedule 16 Capital asset statistics by function/program PAGE 79 80 8l - 82 83 84 85 86 87 88 89 90 9t 92 lll iv March 28, 2016 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, 2015 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 No. 67, "Financial Reporting for Pension Plans; an amendment of GASB Statement No 25," which replaces the requirements of Statements No. 25 and No. 50 related to pension plans that are administered through trusts or equivalent arrangements, The requirements of this Statement are effective for financial statements for fiscal years beginning after June 15, 2013. GASB Statement No. 68, "Accounting and Financial Reporting for Pensions; an amendment of GASB Statement No. 27." This Statement replaces the requirements of Statements No. 27 and No. 50 related to the pension plans that are administered through trusts and equivalent arrangements. The requirements of Statements No. 27 and No. 50 remain applicable for pensions that are not administered as trusts or equivalent arrangements. The requirements of this Statement are effective for financial statements for fiscal years beginning after Jun e 15, 2OL4. GASB Statement No. 69, "Government Combinations and Disposals of Government Operations." The requirements of this Statement should be applied prospectively and are effective for government combinations and disposals of government operations occurring in financial reporting periods beginning after December 15, 2013. GASB Statement No. 70, "Accounting and Financial Reporting for Nonexchange Financial Guarantees" The requirements of this Statement are effective for financial statements for fiscal years beginning after June 15, 2013. GASB Statement No. 71, "Pension Transition for Contributions Made Subsequent to the Measurement Date, an amendment of GASB Statement No. 68." The provisions of this Statement are required to be applied simultaneously with the provisions of Statement No. 68. The requirements of this Statement are effective for financial statements for fiscal years beginning after June 15, 2014. City Profile The City of Prattville is the County seat of Autauga County, it was incorporated on August 8th 1865, and is located in south central Alabama. lt serves a population of approximately 35,229. The City of PratWille operates under a Mayor/Council form of government with a fiscal year from October 1st through September 30th. The Mayor and seven (7) Council members are each elected to four (4)year terms. City services include police and fire protection; sanitation services; sewer services; the construction and maintenance of highways, streets, and infrastructure; recreational activities; and cultural events. Formal budgetary integration is employed as a management control device. On a day to be set by the Council, the Mayor submits to the Council a balanced budget for the next fiscal year. The Council schedules public hearings for the purpose of discussing and adopting the budget and may add to or delete from the budget submitted by the Mayor as long as the budget remains in balance. The Council, by a majority vote, shall adopt the budget. Activities of the General Fund, Debt Service Fund, Capital Projects 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 budgetarycontrol. Appropriationslapseattheendofthefiscalyearunlessexpendedorencumbered. ln 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 Historic PratWille Redevelopment Authority were determined to be the only reportable component units and have been included in this report. Economic Condition and Outlook The proximity of the state capital and Maxwell Gunter Air Force Base make significant contributions to the localeconomy. The City of PratWille maintains a contract for service with The Prattville Area Chamber of Commerce to provide economic development services. The Pratwille 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 !nformation 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. o O o O O VI 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 within a department balance are released only after the approval of the finance director or mayor. Budget amendments are effected by resolutions enacted by the governing body when needed, Activities of the General Fund, Debt Service Fund, Capital Projects 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 "capital outlay." 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. Genera! 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 75Yo 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 Fiscalyear the city used the funds to construct a splash pad for all citizens to enjoy. During 2013 the Alabama Policy lnstitute 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. Pratwille was ranked #1 on community allure based on our cost of living, per capita violent crime rate, high schoolgraduation rate and 5AT averaged reading, and math scores. vil 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 600/o of public schools participating in the School Breakfast Program. The Government Finance Officers Association (GFOA) of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Prattville for its Comprehensive Annual Financial Report (CAFRlfor the fiscal year ended September 30, 20L4. ln order to be awarded a Certificate of Achievement, a governmental entity must publish an easily readable and efficiently organized CAFR. This report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. A Certificate of Achievement is valid for a period of only one year. We believe the City's 2015 CAFR continues to meet the Certificate of Achievement Program's reguirements, and it is being submitted to the GFOA to determine its eligibility for another certificate, Other lnforrnation 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 1.995, 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 auditor's report on the basic financial statements and the combining and individual fund statements and schedules is included in the financial section of this report. lnformation related to the Single Audit, including the schedule of federal financial assistance, findings and recommendations, and auditor'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. RespectfuIly submitted, vlll Douglas C, Moseley, Finance Director ix LIST OF PRTNCIPAL OFFICIALS AS OF SEPTEMBER 30, 2OL5 Mayor CITY COUNCIL Willie Lee Wood, Jr., President Jerry Starnes Albert Striplin, President Pro Tempore Gary Whiteside 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 Brad E, Ekdahl Cathy Dickerson Douglas C. Moseley Robby Anderson Dale Gandy Chief Mark Thompson Chief Terry Brown Kellie Cook Lisa Thrash Douglas C, Moseley Joel Duke 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 & Development 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 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the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management' s Responsibilitv for the Financial 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 error. Auditor's Responsibilitv 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 Historic 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. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the 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 intemal conhol. 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 ln 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, and each major fund of the City of Prattville, Alabama, as of September 30,2015, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund, Gas Ta< Special Revenue Fund, and the Judicial Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in ttre United States of America. Change in Accounting Principle As discussed in Note 17 to the financial statements, in 2015 the City adopted new accounting guidance, GASB Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 71, Pension Transitionfor Contributions Made Subsequent to the Measurenent Date. Our opinion is not modified with respect to that matter. Other Matters Re quire d Supp I ementary Informat i on Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, the schedule of changes in net pension liability, the schedule of employer contributions, and the schedule of funding progress of the City's post-employment benefits other that pensions on pages 4 through 14 and pages 70 through 72 be presented to supplement the basic financial statements. Such information, although not a required part of the basic financial statements, is required by the Governmental Accounting Standard Board, who considers it be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America" which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Pratwille, Alabama's basic financial statement. The introductory section, other supplementary information section, and statistical section are presented for the purposes of additional analysis and are not a required part of the basic financial statements. The other supplementary information section is the responsibility of management and was derived from and relates directly to the underlying accounting and ottrer records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in ttre audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the other supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole. 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 March 28, 2016 on our consideration of the City of Prattville, Alabama's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Governmental Auditing Standards in considering City of Prattville, Alabama's internal control over financial reporting and compliance. {rrl,'*M4Co Pc Montgomery, Alabama March 28,2016 MANAGEMENT' S DISCUSSION AND ANALYSIS As management of the City of Prattville, Alabama, we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2015. This discussion and analysis is designed to look at the City's financial performance as a whole. We encourage readers to consider the information presented here in conjunction with the City's financial statements. Financial Highlights o The City of Prattville, Alabama's assets exceeded its liabilities at September 30, 2015, by 519,360,427 (net position). Of the net position balance amount, ($28,060,530) (unrestricted net position) is the deficit balance of the City representing the indebtedness incurred for incentive obligations including the purchase of development property supporting the significant retail development activities within the City which originated in the fiscal years ended 2006 and 2008 as well as the unfunded pension liability for the City. o During the year, the City's total net position decreased by $1,781,570. Revenues of 546,957,719 exceeded expenses of $37,096,116. The increase in revenue is due to the increase in sales tax revenue and increase in charges for services. Expenses increased slightly due to employee raises and capital expenditures. The decrease in net position is due to the recording of the unfunded pension liability. o Under the Government Accounting Standads Board Statement Number 45, Accounting and Financial Reporting by Employees for Post-Retirement Benefits Other than Pensions (GASB 45), the City recognized an expense of $382,785 in the current 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 $16,776,584. There was an increase of $3,566,331 from the prior year. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Prattville, Alabama's basic financial statements. The City's basic financial statements are comprised of three components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to financial statements. tn addition to the basic financial statements, this report contains other supplementary information that will enhance the reader's understanding of the financial condition of the City of Prattville, Alabama. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City of Prattville, Alabama's finances in a manner similar to a private-sector business. The basic financial statements include two kinds of statements that present different views of the City, a statement of net position and a statement of activities. These statements include the City's three component units, the Autauga-Prattville Public Library (the Library), the Prattville Airport Authority (the Authority), and the Historic Prattville Redevelopment Authority (HPRA), which are separate legal entities. Although legally separate, these component units are important because the City is financially accountable for them. Complete financial statements of the Library, the Authority, and HPRA can be obtained at their administrative offices located in Prattville, Alabama. The statement of net position presents information on all of the City'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 City'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 are reported in this statement for some items that will only result in cash flows in future fiscal periods. Both statements distinguish fi.urctions of the City of Prattville, Alabama that are principally supported by sales taxes, property taxes, and gasoline taxes (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities reported in the statements include general government, public safety, public works, and cultural/recreational. The business-type activities of the City of Prattville, Alabama include the Sanitation and Wastewater departments. Fund f inancial Statements The fund financial statements provide more detailed information about the City's most significant activities. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Like other state and local governments, the City of Prattville, Alabama uses fund accounting to ensure and demonstrate compliance with finance- related legal matters. All of the funds of the City of Prattville, Alabama are governmental funds which account for the basic services of the government. Experienced readers of governmental financial statements will find these financial statements most familiar. Governmental funds - Governmental firnds 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 fi,rnds focus on how assets can readily be converted into cash flow in and out, and what monies are left at year-end that will be available for spending in the next year. Governmental funds are reported using an accounting method called modified accrual accounting, which provides a conservative short-term spending focus. As a result, the governmental fund financial statements give the reader a detailed short-term view that helps in determining if there are more or less financial resources available to finance the City's programs. The relationship between governmental activities in the government-wide financial statements and the governmental firnds financial statements is described in a reconciliation that is a part of the fund financial statements. The City maintains four individual governmental frrnds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance of the major funds. 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 t)rye of proprietary fund. Enterprise funds are used to report the same functions presented as business-type activities in the entity-wide financial statements. The City of Prattville, Alabama uses enterprise fi.rnds to account for its Sanitation and Wastewater departments. 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 PratMlle, Alabama. Notes to Financial Statements The notes provide additional information that is essential to a fulI understanding of the data provided in the government-wide and firnd financial statements. The notes to the basic financial statements also include information regarding the City of Prattville, Alabama's progress in firnding its obligation to provide pension benefits to its employees. The notes are presented on pages 30 through 69 of this report. Government-Wide Financial Analysis The City's condensed statement of net position as of September 30,2015 and2014, derived from the government-wide statement of net position is presented below. GOVERNMENTAL ACTIVITIES BUSTNESS-TYPE ACTIVITIES Current and other assets Capital assets, net of depreciation Restricted assets Total assets Deferred outflows Long-term liabilities outstanding Other liabilities Total liabilities Deferred inflows Net position: Net invesfinent in capital assets Resfficted Unrestricted (deficit) Total net position 39,1 I 6,199 36,578,653 6,384,146 I ,568,,412 I ,01 9,01 3 4,402,643 45,500 ,345 40,98 I ,296 I ,568,412 I ,0 19,01 3 TOTALS 2015 2014*2015 2014*20ts 2014 $ 17,154,711 $ 15,071,256 $ 2,906,008 $ 3,690,576 $ 20,060,719 $ 18,761,832 50,381,905 48,411,132 7,440,940 7,097,763 s7,822,845 5s,s08,895 l,%2,624 1,329,s10 1,902,624 1,329,s10 69,439,240 64,811,898 10,346,948 10,788,339 79,786,188 75,600,237 2,506,884 889,990 160,682 2,667,566 889,990 s6,341,069 49,372,412 2,736,118 2,880,037 s9,077,187 s2,2s2,449 2,s16,043 2,871,964 409,750 223,817 2,92s,793 3,095,781 58,8s7,112 s2,244,376 3,145,868 3,103,8s4 62,002,980 5s,348,230 951,156 l39,l9l 1,090,347 (28,546,7ss) (24,r40,rs4) 838,42s 3,28t,842 (27,708,330) (20,8s8,312) $ 12,137,856 $ 13,457,s12 g 7,222,s71 $ 7,684,485 $ 19,360,427 $ 21,141,97 * The 20 14 balances were not restated for the adoption ofGASB Stat€ment No. 68 because it was impractical to do so. The largest component of the City's net position as of September 30, 2015 reflects its investment in capital assets (i.e. land, buildings, furniture and equipment, infrastructure, etc.); less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other resources, since the capital assets themselves cannot be used to liquidate these liabilities. The City's capital assets, net of accumulated depreciation, at September 30, 2015 increased by $2,313,950 from the prior year primarily due to the amount of current year increases in construction in progress, vehicles, and infrastructure. As noted earlier in this discussion, changes in net position over time can be one of the best and most useful indicators of the City's financial position. The City of Prattville, Alabama's total assets exceeded liabilities by $19,360,427 . The City's net position decreased by $1,781,570 during the current fiscal year primarily due to the recording of the City's unfunded pension obligation per GASB 68. The City's net position was also affected by increasing revenues and overall continued control over expenses. The City saw an increase in sales tax revenues of$905,728 during the current fiscal year. A portion of net position is restricted, or has restrictions on how they may be used. Governmental activities restricted net position totaled S1,568,412 at September 30,2015 and is restricted 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, 2015, reported a deficit balance in unrestricted net position in governmental activities of ($28,898,955). The large negative unrestricted net position is the result of the adoption of GASB 68, which requires the unfunded portion of the City's pension obligation to be recorded as a liability, and $33,675,000 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-t1pe activities reported unrestricted net assets of $838,425 at September 30, 2015. There was a decrease in Business-t1rye activities unrestricted net assets due to the adoption of GASB 68. The following presents the City's condensed statement of activities for the fiscal years ended September 30,2015 and 2014 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 decreased by $1,781,570. This decrease is primarily due to the recording of the City's unfunded pension liability. The City also experienced an increase in general sales tax, use tax, restaurant tax, lodging tax, and rental tax; as well as continued control over expenses. GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES Revenues: Program revenues: Charges for services Operating grants, capital grants, and contributions Total program revenues General revenues: Sales and use taxes Real and personal property taxes Lodging taxes Local gasoline taxes Alcoholic beverage taxes Rental taxes Tobacco taxes Excise taxes Investnent earnings Miscellaneous revenue Garn on disposal of assets Total general revenues Total revenues Expenses: General government Public safety Public works Culttral and recreational Debt service Sanitation Wastewater Total expenses Increase in net position Net position - beginning Cumulative effect of change in accounting principle Net position - beginning, as restated Net position - ending TOTALS 2015 2014* 2015 20t4* 2015 2014 $ 7,642,598 $ 7,460,639 $ 6,369,291 $ 6,181,365 $ 14,011,889 $ 13,642,004 3,971,039 1,488,058 3,971939 1,488p58 11,613,637 8,948,697 6,369,291 6,181,365 17,982,928 15,130p62 22,112,831 21,221,765 2,614,090 2,690,055 I,804,447 1,,647,626 970,304 941,261 273,579 408,900 377,964 346,089 136,220 134,656 79,780 65,949 62,586 164,964 460,002 359,099 22,112,831 21,221,765 2,614,090 2,690,055 1,804,447 1,647,626 970,304 941,261 273,579 408,900 377,964 346,089 136,220 134,656 79,780 65,949 66,968 170,019 460,002 359,099 4,382 5,055 36,300 54,747 42,306 42,541 78,606 97,288 -;5ffi5--gptffi-ffi8ru@@ 40.s41,740 36.983.808 6A1s,979 6,228,961 46,957,71.9 43,212J69 7,619,638 15,125,945 6,019,336 2,021,877 917,762 7,250,279 14,094,661 5,180,698 1,980,775 1,727,232 7,619,638 15,125,945 6,019,336 2,021,877 917,762 2,539,325 2,463,315 2,539,325 7,250,279 14,094,661 5,180,698 1,980,77 5 1,727,232 2,463,315 3,r04r58@##ffi# 8,837,182 6,750,163 1,024,421 1,001,971 9,861,603 7,752,134 13,457,512 6,707,349 7,684,485 6,682,514 21,141,997 13,389,863 00,156,838) (1,486,335) _ (11,643,113) 3,300,674 6,707,349 6,198,150 6,682,514 9,498,824 13,389,863 $ 12,137,856 $ t3J.s7,st2 g 7,222,s71 $ 7,684,485 $ 19,360,427 $ 21,141,997 + The 2014 balances were not restated for the adoption ofGASB Statement No. 68 because it was impractical to do so. 9 Expenses and Program Revenues for Governmental Activities Governmental activities decreased the City of Prattville, Alabama’s net position by $1,319,656 for fiscal year 2015. The key elements of the decrease in net position are the recording of the City’s unfunded pension liability as well as the increases in revenue and the decreases in expenses from the prior year as follows:  Donated infrastructure in the amount of $1,751,000 is included in total program revenues which increased from donated infrastructure in the prior year by $1,751,000.  Sales tax revenue increased by $891,066 compared to the prior year amount of $21,221,765.  Public safety expenses increased by $1,031,284 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 Cultural and recreational Interest on long-term debt Expenses and Program Revenue - Governmental Activities 2015 Expenses 2015 Revenues 2014 Expenses 2014 Revenues 10 Program and General Revenues for Governmental Activities 19% 55% 6% 5% 2%1% 1%0%0% 10% 1% 0% 0% Revenues By Source - Governmental Activities - FYE 2015 Charges for services Sales taxes Real and personal property taxes Lodging taxes Local gasoline taxes Alcoholic beverage taxes Rental taxes Tobacco taxes Excise taxes Grants and contributions Miscellaneous Gain (loss) on disposal of assets Investment earnings 20% 57% 7% 5%3% 1%1% 0%0% 4% 1% 1% 0% Revenues By Source - Governmental Activities - FYE 2014 Charges for services Sales and use taxes Property taxes Lodging taxes Local gasoline taxes Alcoholic beverage taxes Rental taxes Tobacco taxes Excise taxes Grants and contributions Miscellaneous Investment earnings Gain on disposal of assets 11 Expenses and Program Revenues for Business-Type Activities Business-type activities decreased the City of Prattville, Alabama’s net position by $461,914. Key elements of this change in net position are as follows: • Net pension obligation for business-type activities were recorded this year and amounted to $1,506,145. • Wastewater revenue and expenses remained consistent with prior year. • Sanitation revenue and expenses remained consistent with prior year. - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 Sanitation Wastewater Expenses and Program Revenue - Business-Type Activities 2015 Expenses 2015 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, 2015, governmental funds reported a combined ending fund balance of $16,776,584, an increase of $3,566,331 in comparison with the prior year balance. Of this balance $136,943 is not available for new spending because it is a prepaid item; $1,568,419 is restricted for public safety, road projects, capital improvements, and judicial; $5,168,993 is committed to debt service and capital projects; and $3,346,779 is assigned for industrial park improvements, fire training, capital projects, and other purposes. The fund balance of the general fund increased $1,139,700 during the current fiscal year after other financing sources including fund transfers. Total revenue increased $4191600 as compared to the prior year primarily due to an increase in sales tax revenue. There was an increase in net transfers out of $2,833,487 primarily due to the transfer of funds to the capital projects fund. The fund balance of the capital projects fund increased$2,375,208 during the current fiscal year after other financing sources including fund transfers, primarily due to budgeted projects being held up and not completed. The fund balance of the debt service fund did not change during the current fiscal year. The fund balance of the gas tax special revenue fund increased $15,675 during the current fiscal year after other financing sources including transfers. This increase in the fund balance was the result of delayed paving projects that did not occur during the fiscal year. The fund balance of the judicial special revenue fund increased $35,748 during the cunent fiscal year after other financing sources including transfers. Revenues and expenses remained consistent. Proprietary firnds - 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 $838,425. The Sanitation fund had an overall decrease in net position of $76,339 and Wastewater fund had an overall increase in net position of $ 1, I 00,760. Internal service funds - Internal service funds are designed to recover the internal costs of government services provided to other funds groups. At September 30, 2015, the internal service fund reported a surplus of $79,437 for its net position balance. For 2015, the Enterprise frrnds funded the exact allocation of costs. Capital Assets and Long-Term Debt Administration Capital assets - The City of Prattville, Alabama's investment in capital assets for its governmental and business-type activities as of September 30, 2015 was $57,822,845 (net of accumulated depreciation). This investment in capital assets includes land, infrastructure, buildings, improvements, construction in progress, vehicles, and machinery and equipment. Major capital asset additions during the year include: Purchase of vehicles of $ 1 ,03 9,428. Increases in construction in progress of $ 1,804 ,282. [ncreases in infrastructure of $ 1,739,000. t2 CITY OF PRATTVILLE, ALABAMA CAPITAL ASSETS GOVERNMENTAL BUSINESS-TYPE ACTIVITIES ACTIVITIES TOTAL Land $ Construction in progress Buildings and building improvements Land improvements Vehicles Office, nonoffice, and computer equipment Infrastructure 2,649,938 $ 1,949,381 3,732,142 45,079 1,914,155 2,057,295 38,03 3,91,5 1,257,019 708,734 3,018,940 1,424,243 503 ,857 528,147 s 3,906,957 2,658,1 15 6,7 51,082 1,469,322 2,418,012 2,585,442 38,033 ,915 Total 50,3 8 I ,905 7,440,940 $ 57,822,845 Additional information on the City's capital assets can be found in Note 4 on page 40 of this report. Long-term debt - As of September 30, 2015, $40,676,702 and the business-tlpe activities Long-term debt General obligation warrants and other notes payable Limited obligation warrant Total the governmental activities had total debt outstanding of had a total debt outstanding of $1,056,794. 20r5 20t4 DECREASE $ 43 ,37 1,822 -- $ 46,772,217 $ + 1,825,564 1,546,258 $ 45,213,905 1,55 8,312 $ (3,3 88,34 1 ) (12,054) $ (3,400,395) The City of Prattville, Alabama's total debt outstanding decreased by $3,400,395 during the current fiscal year. This decrease was the result of payments made in accordance with regularly scheduled maturity dates and calling the remainder of the Series 2007 general obligation warrants. Additional information on the City's debt can be found in Note 6 of the financial statements. The City issued $12,280,000 of general obligation refunding bonds to advance refund the Series 2006a and 2006b general obligation warrants. 13 Budgetary Highlights for the Fiscal Year Ending September 30, 2015 Budget to actual statements and schedules are provided in the financial statements for the general fund and gas tax special revenue fund. Columns are provided for both the original adopted budget as well as the final budget. These budgets are followed by columns for actual expenditures and for variances between the final budget and actual expenditures. As of September 30, 2015, actual operating revenues for the general fund were more than the budgeted amount by 52,019,701, or 5.99%. The primary reasons for the variance are as follows: o Sales taxes were $1,139,380 more than budgeted due to increased sales primarily as a result of an overall improvement in economic conditions. As of September 30, 2015, actual operating expenditures for the general fund were less than the budgeted amount by $255,328, or l.}loh. Economic Factors and Year 2016 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 6l% of general fund revenues in fiscal year 2015. In the current economic climate, the City has instituted a temporary increase to the City's sales tax rate to be used to service the City's debt and to build reserves. The unemployment rate for Autauga County, where the City of Prattville, Alabama is primarily located, is currently 4.9%o, which is a slight decrease compared to the prior year. The unemployment rate for the City of Prattville, Alabama is 4.7o/o. The unemployment rate compares favorably to the state's current unemployment rate of 5.9o/o and is lower than the national average rate of S.lYo. 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 demonstrate the City's accountability. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City Clerk, 101 West Main Street, Prattville, Alabama 36067 . t4 BASIC FINANCIAL STATEMENTS THIS PAGE INTENTIONALLY LEFT BLANK CITY OF PRATryILLE, ALABAMA STATEMENT OF NET POSITION SEPTEMBER 30, 2OI5 PRIMARY GOVERNMENT COMPONENT UNITS AUTAUGA.HISTORIC GOVERNMENTAL BUSINESS-ryPE PRATTVILLE PRATTVILLE PRATTVILLE PUBLIC AIRPORT REDEVELOPMENTACTI]TINqL A9NYI.TTE! - TOT$IA . ..LIPRARY AUTTIORITY .4I{T{OF.I,TY $ 13,661,694 $ 2,683,517 $ 16,345,211 $ 268,928 $ 402,017 $ 148,172 282,307 (282,307) 2,233,746 2,233,746 ASSETS: Cash and cash equivalents Internal balances Taxes receivable Accounts receivable, net Prepaid items Restricted ilisets: Cash and cash equivalents Capital assets, not depreciated Total assets DEFERRED OUTFLOWS: Deferred loss on refunding LIABILITIES: Accounts payable Accrued liabilities Accrued interest Uneamed revenues Other liabilities Long-term liabilities: Portion due or payable in one year: General obligation warrants payable, capital leases, and other long-term debt Compensated absences Portion due or payable after one year: General obligation warrants payable, capital leases, and other long-term debt Compensated absences Post- employment benefi ts Net pension obligation NET POSITION: Net investment in capital assets Restricted for: Law enforcement Road pro.;ects Capital proJects Elmore County di strict improvements Cultural and recreational Judicial Unrestricted (deficit) 1,902,624 1,942,6244,599,319 1,965,753 6,565,072 Capital Bcrs, ne,t of ammulated deprci*ion 45,7E2,586 5,475,187 51,25'1,771 44,075 5,179,593 218,602 840,021 480,924 1,320,945136,943 23,974 160,817 1,278,661 409,750 1,688,41 I 2,278 18,715 32,227 15,986 82,864 2,684,43? 1,988,688 , .69,439,270 ,, 19,346,948 , 7eJq6rl9g. _ -.. ,,313,09: 8,981,113. ,,. ,, , ?il1,443 , 1,408,866 1,408,866Empfoyerpensioncontributions 1,098,018 160,682 1,258,700 5,756 _Total deferred outflows 2,506,884 160,682 2,667,566 5,756 2,425,000 545,716 2,970,716314,549 74,940 389,489 39,731,879 511,078 40,242,957836,294 99,239 934,533 2,741,135 495,746 314,729 426,907 94,860 240,232 766,408 370,495 15,829 80,589 495,746 14,280 314,729 48,300 426,907 48,938 27 ,561 19,431 486,810 1,876,086 72,092 - t0,29?,2t2_ 1,596,145, _ ll,7?8,3:7 , -* 3.4;621 Total liabilities 5E,857,1 12 3,145,868 62,002,980 99,479 533,689 1,944,455 2,741,135 94,860 240,232 766,408 370,495 15,828 90,589 DEFERRED INFLOWS: Exces mings of pension plu investments 95t,156 l39,l9l l,@0,347 20,047 _ 39,468,399 6,394,146 45,852,545 44,075 7,949,654 311,773 (28,898,955) 938,425 (28,060,530) I 55,158 425,698 ll5,220 Toral ner posirion $ t2,t32,t56 S 7,222,5it $ t9,360,42't $ 199,233 $ E,447,444 $ 426,993 The accompanying notes are an integral part of these financial statements. 15 CITY OF PRATTVILLE, AI-ABAMA STATEMENT OF ACTTVMIES FOR THE YEAR ENDED SEPTEMBER 30, 2OI5 REVENUE AND CHANGES IN NET ASSETS PROGRAM REVENUE PRIMARY GOVERNMENT COMPONENT UNITS F[NES, FEES, AND CHARGES E)(PENSES FOR SERVICES OPERATING GRANTS AND CONTzuBUTIONS CAPITAL GRANTS AND CONTRIBUTIONS C,OVERNMENTAL BUSTNESS.TYPE ACTTVTTTES ACTTVITIES AUTAUGA. PRATTVTLLE PUBLIC TOTAL LTBRARY HISTORIC PRATTVILLE PRATTVILLEAIRPORT REDEVELOPMENTAUTHORITY AUTHORITY ACTIVITIES: Primary govemnrent: Goverrunental activities : Gerpral gov€ntrnent Public safety Public woks Cultural and recreatiqul Interest ur long-tcnn debt Total governmantal activities Business-type rctivities : Sanitation Wasteu'ater Total business-type activities Total primary goverffrrcnt Corryoncnturic: Auta,rga-Pratwille Public Librry Prattvill e Airport Auttrority Histfricd Prattville Redevelopment Authority 17,820 $ 917,7623IJ04J5S ?,642,518 t?W 2,539,325 2,457,400 2,852,233 3,911,891 5,391,558 6,369291 -!_3?,09gLE_ _s_r4,0r r,889_ $ 17,820 $ 7,619,638 $ 15,125,945 5,019,336 2,021,877 $ s88j4e $ 499,570 5,973943 l,4l1,107 $ 257,548 30,557 $ I16,619 (1,645,695) (l1,946,018) (3,817,117) (1,764,329) $ (1,545,595) (l t,946,018) (3,8 l7,l l7) (1,764,329) 1,751,000 2,2022t9 3-953 l9 (9t7.762\ (917,762\ (2o,o9oB2l) (20,090,921) $ (81,925)(81,925) 3,953219 (20,090,921) 977,733 (19,113,188) 416,291 $ (483,716) $ 34,340 $ (287.153) (483,715) 34,340 Q87,153)4t6.291 o\74,276 323,153 36,000 s t,4to272 $ 183,176 $ 74,276Total cornponent mits General revenue: Sales and us€ taxes Real and persural prop€rlyta(es Lodging taxes Local gasoline taxes Alcolplic beverage taxes Reirtal taxes Tobacco taxes Excise taxes Investnrcnt earnings Miscellaneous rjwenue Unrestrictod appropriation &on City/County Gain on disposal of assets Total general rsvenues and transfers CHANGE TN NET POSITION NET POSITION - BEGINNING, AS ORIGTNALLY STATED CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRJNCIPLE NET POSITION. BEGINNING, AS RESTATED NET POSTTION - ENDING 22,112,831 2,614,090 1,80/.,447 970,3M 273579 377964 t36220 79,780 62586 460,002 22,112,831 2,614,OX) 1,804,447 970,304 273,579 377,964 136,220 79,7go 4382 66,968 292 460,O02 490,000 109 220,67836,300 42,306 78,606 28,928.103 46-688 28,974,791 490,292 220-787 9,837,182 I,O24A2I 9,861,503 6,576 34,340 (66,356) t3,457,5t2 7,684,485 21,141,997 241,772 t,4l3,lM 493,359 (10,156,838) - (1,486,335) (11,643,173) (49,115) 3.300,674 6,198.150 9,49t,824 192,657 8,413,104 493,359 $ 12,137,856 S 7,222,571 $ 19,360A27 $ 199,233 $ 8,447,4M S 426,993:::::: Ttr rcanpanying notes are an intcgral part of these financial stat€rnsds. CITY OF PRATTVILLE, ALABAMA BALANCE STMET GOVERNMENTAL FUNDS SEPTEMBER 30, 2OI5 CAPITAL PROJECTS GENERAL FUNDS GAS TAX JUDICI.ALDEBT SPECIAL SPECIAL TOTAL SERVICE REVENUE REVENUE GOVERNMENTAL FTINDS FUND FLIND FUNDS 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 LI.ABILITIES 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 prqects Capital equipment reserve Other purposes Unassigned Total fund balances Total liabilities and fund balances $ 10,273,173 $ 2,924,249 2,233,7 46 176,347 398, I 55 136,566 641,173 $ 19,792 $ $ 13,197,422 2,233,7 46 840,021 398,155 136,943 g93,gg7 495,7 46 426,907 94,860 244,232 766,408 370,495 15,828 7 g0,5gg 4,567 ,189 601,804 2,322,445 52,416 230,717 209,817 2,709 377 ,st7,62!- ,.72?.,e97* $- 4,2e.9 38II3? 261?in -. _,t,e02,67!_ $ t3,735,611 $ 4,295,389 $ 4,290 $ 405,324 $ 268,297 $ 18,708,91 I - $ 393,682 $ 388,450 $ 4,283 $ 7l,3ll $ 36,161 $487,887 7 ,859284,493 142,414 t,*6,*2ffi 42n# r86j34 4 136,566 94,860 36,441 729,967 370,495 15,828 4,567 ,189 601,804 2,322,445 52,416 230,717 209,917 530,487 377 136,943 240,232 80,589 897 531,384 6,555,450 - 6,555,450- 7-u@ 8t$63re $ r1,?1s,6r r _$_1te1,3fl?__{_u?0-_qigll24_ -s ,26w_ $ = , =J,8,7ql,e1r= The accompanying notes are an integral part of these financial statements. t7 CITY OF PRATTVILLE, ALABAMA RECONCILIATION OF BALANCE SHEET OF GOVERNMENTAL FI.]NDS TO STATEMENT OF NET POSMON SEPTEMBER 30,2OI5 Differences in amounts reported for govemmental activities in the statement ofnet position on page 15. Total fund balances - govemmental firnds Capital assets used in govemmental activities are not financial resources and, therefore, are not reported in the govemmental funds. Those assets consist of Land Construction in progress Land improvements, net of $5,1 83,844 accumulated depreciation Buildings and building improvements, net of $1,432,529 accumulated depreciation Office, nonoffice, and computer equipment, net of$3,534,819 accumulated depreciation Vehicles, net of $3,724,607 accumulated depreciation Infrastructure, net of $8,830,824 accumulated depreciation Total capital assets Intemal service funds are used by management to charge the costs of employee medical insurance to individual funds. The assets and liabilities of ttre intemal service fund are included in govemmental activities in the statement ofnet position. Defened outflows and inflows of resources are applicable to future periods and, therefore are not reported in the governmental funds Deferred loss on advance refunding Employer pension contribution Excess earnings of pension plan investments Total defened outflows and inflows of resources Long-term liabilities, including general obligation warrants payable and capital leases, are not due and payable in the cunent period and, therefore, are not reported in the govemmental funds. Balances at September 30,2015 were: Accrued interest on bonds General obligation warrants and other notes payable Unamortized debt issuance discounts Unamortized debt issuance premiums Compensated absences Post-employment benefit plans other than pensions Net pension obligation Total long-term I iabilities Total net position ofgovemmental activities The accompanying notes are an integral part of these financial statements. $ 2,649,938 1,949,381 45,079 3,732,142 2,057,295 1,914,155 38,033915 1,408,866 1,098,01 8 (esJ, l 16\ 314,729 40,676,702 (73,289) I ,553,466 1,150,843 2,741 ,l 35 10,2y2,212, $ 16,776,584 50,381,905 79,437 1,555,728 (s6,psI,7?8). $ 12,137,856 l8 CITY OF PRATTVILLE, ALABAMA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FLIND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2OI5 GAS TAX ruDICIALCAPITAL DEBT SPECIAL SPECIAL TOTAL PROJECT SERVICE REVENUE REVENUE GOVERNMENTALGENERAL FUNDS FLINDS FLIND FUND FUNDS REVENUES: Taxes Licenses and permits Intergovernmental revenues Charges and fees for services Fines and forfeitures Interest Miscellaneous revenues Total revenues E)GENDITURES: Current: General government Public works Public safety Culnral and recreational Capital outlay Debt service: Principal payments lnterest and fiscal charges Bond issue costs Total expenditures Excess of revenue over (under) expendifures OTHER FINANCING SOURCES (USES): Insurance proceeds Sale of general capital assets 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 FTIND BALANCE . BEGINNING FLTND BALANCE. ENDING $ 28,061,591 $ 307,624 5,973,94340,698 1,659,978 1,077,656 1 30,1 54 5,492,0593,883,434 1,690,860 12,413,193 1,627,648 1,267,129 168,721 18,220 37,685 46,779 (9,837,891) s 5 19,363 57,174 4,736 $ 104 148 $ 28,369,215 5,973,943 2,220,039 1,077,656$ 460,845 590,999 62,162 383,1I I 5,875,170503,836 6,068,130 12,413,193 1,627,648 1,267,128 4,548,721 l,l92,l7l - 422,3t4 -.- !2?,3)!. - 35J63J30 t972338 " "j- j tqll 4,90S,4: _. 38Jt6Jr8 T,ngto3 - 1,68-0J60 ffi.,.501s36. l,g3rlll-ffi 10,893,127 2gl,47g (5,693,063)15.675 77.734 5.584.9s 1 4,380,000 1,173,951 2,083,730 5,553,847 12,280,000 (13,445,879) 5,1 14 (47,100) 37,685 46,779 7,642,691 (9,884,991) 12,280,000 (13,445,879) @ ao83r3offi - lll,?lg)ffi 1,139,700 2,375,209 15,675 35,748 3,566,331 1t,47,9,812, t,509,725 - ,- -? , 22L5!7 . 46,115 ,, ll?loJj|sl $12,569,549 $ 3,994,933 $ 7 $EEreE @I=:E !'E ETEEETE EE 240.232 $ 81,863 $ 16,776,584rc The accompanying notes are an integral part of these furancial stateme,lrts. t9 CITY OF PRAT'TVILLE ALABAMA RECONCILI,ATION OF STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FIJND BALANCES OF GOVERNMENTAL FI,JNDS TO STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30,2OI5 Differences in amounts reported for govemmental activities in the statement of activities on page 16. Net change in firnd balance - total govemmental funds $ 3,566,331 Capital outlay, reporhd as expenditures in govemmental funds, is shown as capitral assets in the statement of net position. 2,436,664 Donations ofcapital assets increase net position in the statement ofnet position but do not appear in the governmental funds because they are not financial resources. 1,75 I ,000 Depreciation expense on govemmental capital assets included in the govemmental activities in the statement of activities. (2,206A12) The net effect of transactions involving the sale of capital assets is to decrease net assets in the statement of net position. Loan proceeds provide current financial resources to the governmental funds and thus confibute to the change in fund balance. However, issuing debt increases long-term liabilities in the statement of net position: Refunding bond proceeds Payment to escrow agent for refunding The repayment of the principal of long-term debt consumes the current financial resources of governmental funds, but has no effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. General obligation warrants payable Bond issue premium Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, Na not reported as expenditures in governmental funds: Accrued interest payable Compensated absences Post-employment benefit plans other than pensions Pension contributions cost of benefits earned net of employee contributions Governmental funds report the effect of premiums, discounts, and deferred loss on refunding, whereas these amounts are deferred and amortized in the statement of activities : Amortization Internal service funds are used by management to charge the costs of employee medical insurance to individual funds. The net income (expense) of certain activities of internal service funds is reported with governmental activities. Change in net position of governmental activities The accompanying notes are an integral part of these financial statements. ( 10,479) $ (12,280,000) 13,445,879 4,549,721 , ( L3os?oes.) 274,410 ( I 10,530) (382,785) 1,098,018 J 1,099,530\. (73,760\ 1,165,879 3,243,626 (207,4t7) (73,7 60) . , (82.9,25q) $ 8,837,182 20 CITY OF PRATTVILLE, ALABAMA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2OI5 ORIGINAL FINAL ACTUAL AMOT]NTS VARIANCE WITH BUDGETARY FINAL BUDGET. BASIS POSITTVE NEGATIVE) BUDGETED AMOUNTS REVENUES: Ta:res: Sales ta<es Real and personal property taxes Lodging ta<es Local gasoline taxes Tobacco taxes Whiskey taxes Beer taxes Wine taxes ABC sales taxes Rental taxes Excise ta:<es Total taxes Licenses and permits: Business licenses Franchise fees Building permits and inspection fees Yard sale and special event permits Zoningand plat fees Total licenses and permits Charges and fees for services: Ambulance fees Recreation rentals Total charges and fees for services 20,939,000 $ 20,939,000 2,662,500 1,289,600 907,000 145,000 53,000 240,000 15,000 40,000 329,850 231,500 4,350 . 7q,0,90 2,662,500 1,289,600 907,000 145,000 53,000 240,000 15,000 40,000 329,850 22,078,380 2,614,A94 1,496,823 970,304 136,220 7 5,497 182,361 l6,l2l 34,451 377,964 79,780 1,139,380 (48,410) 207,223 63,304 (8,780) 22,097 (57,639) l,l2l (5,549) 48, I l4 49,780, 30,000 _ 30,000 _ 26?65.0-,9,50 , 26,6502?5,0 4,822,500 4,822,500515,000 515,000 28_061 .s9l l .410.641 231,500 4,350 70,000 4,891,943 737,856 330,941 9,233 69,443 222,856 99,441 4,993 (66,030)3.970 5,973,943 330.s93 795,000 795,000 820, I 08 25, I 08 240.370 240.370 257,548 t7.178 1,035,370 The accompanying notes are an integral part of these financial statements. 1.077 .656 42,286 (Continued) 2t CITY OF PRATTVILLE, ALABAMA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2OI5 BUDGETED AMOUNTS ACTUAL AMOUNTS BUDGETARY BASISORIGINALFINAL VARI.ANCE WITH FINAL BUDGET. POSITTVE NEGATIVE) REVENUES: (continued) Fines and forfeitures: Drug confiscation proceeds Penalties Total fines and forfeitures Intergovernmental reven ue : Grant income Investment income: Interest Miscellaneous revenues : Accident reports Concessions County commission - RTJ Donations Lambert property tower Miscellaneous income Parades Performing and creative arts Sex offender registration fee Total miscellaneous revenues 35,000 .. 65,000 . - 75,000 9,000 9,200 50,000 75,000 18,060 67,899 3,500 14,900 600 24g,l59 3 5,000 $108,573 30,000 21,581 - 73,573 (8,419) 65,000 1 30.1 54 65.154 75,000 40.698 (34,302) . 75,009 - 75,,q90 . - 26,000 26,000, 40,698 (34,302) 57,174 31,174 57,174 31,174 9,000 9,200 50,000 75,000 I 8,060 67,899 3,500 14,900 600 g,gg4 9,555 50,000 138,231 19,638 160,440 4,279 29,425 7s3 994 3s5 63,231 1,578 92,541 778 14,525 ls3 -, , 24,1,t59 33,743,829 422,314 t74 155 Total revenues 33,7 43,829 The accompanying notes are an integral part of these financial statements. 35.763.530 2.0t9.70t (Continued) 22 CITY OF PRATTVILLE, ALABAMA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2OI5 BUDGETED AMOUNTS ACTUAL AMOUNTS VARIANCE WITHBUDGETARY FINAL BUDGET. ORIGINAL FINAL BASIS P_o$rryE NEplr.r-vP) $ (10,154) 14,971 (3,512) 28, I 56 66,847 (167,846) 7 6,361 7,207 16,346 13,333 (85,921) (59,618) 71,690 109,521 239,093 EXPENDITURES: General government: Executive Legislative Administrative finance Administrative city clerk Human resources Information technology Vehicle maintenance Sales tax incentives Building City/County services Community initiatives Appropriations Total general government Public works: General 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 revenues over expenditures 98,935 l,l3l ,573 l,l3l ,5731,454,599 1,454,599 I ,l 68,983 I ,l6g,gg3 $ 250,047 159,903 560,71 I 200,601 310,241 l,l 13,012 341,136 960,000 7 5,821 260,000 350,990 622,400 .5,203,75L gg,g35 $ 250,047 158,803 560,71 I 200,601 310,241 I ,'l I 3,012 341,136 960,000 7 5,821 27 5,000 673,380 622,400 260,201 143,832 564,223 172,445 243,394 1,280,859 264,77 5 952,793 59,47 5 261,667 759,301 682.482 5.s4 t.t52 s.64s.446 158,553 1,059,883 1,345,078 929,890 335,402 33s.402 329.4t4 s.988 , Ltle,+ez .. 4:tp,e,+?2 , .-- , .3#32?ql8 - 6,579,590 6,519,903 6,337,8536,167,llg 6,137,ggg 6.150.491 12,746,699 12,657,792 12,488,344 1,613,034 1,602,850 I ,523,065 366,67 4 181,950. (l?.so3t t69.448 t90^928 190.928 168.048 79,785 22,880 1.803.962 t.793.778 l.69l.l I 3 t02.665 824#84 , l,ll0,g.1p 53,500 53,500 5,746 ,, 5,74L 19?246 _ 5?,246 _24,827,635 25,352,403 8,,916,194 9,3?1,+21 (t t5,22t) 255,328 1,262,418 (151,470) 168,721 18,220 I 86.941 25,097,080 10,666,449 2.27 5.028 The accompanying notes are an integral part of these financial statements. 23 (Continued) CITY OF PRATTVILLE, ALABAMA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2OI5 ACTUAL AMOUNTS VARIANCE WITH BUDGETED AMOUNTS BUDGETARY FINAL BUDGET. ORIGINAL FINAL BASrs . -lo$lTIyP qrPs{ryP)_ $ I 0,000 $ 10,000 $ 37,685 $ OTHER FINANCING SOURCES (USES): Insurance proceeds Sale of surplus equipment 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 27,944 46,779 (5,553,846) (2,195,200) (2,t95,200) (2,195,200) (2,083,731) 226.678 226,678 1,139,700 I1,429,849 $ 12,569,549 27,685 l g,g35 (5,553,846) (2,083,731) (5,1 l4)(5,1l4\ , ..(2,185,200\ _ (2,J57,25p\ -_ (9,7fi,q)- _.,._,-_ .(7,I?6,1-71) $ 6,730,994 $ 6,234,165 qt} 022 $ rs i2t t43) 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. 24 CIry OF PRATTVILLE, ALABAMA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FTIND BALANCES BTIDGET AND ACTUAL GAS TAX SPECI.AL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2OI5 BUDGETED AMOUNTS ORIGINAL FINAL ACTUAL AMOUNTS VARIANCEBUDGETARY WITH BASIS BUDGET REVENUES: State gasoline and lubricating oil excise tax Grant income Interest income Total revenues EXPENDITURES: Current operations: Public works Total expenditures EXCESS OF REVENUES OVER (UNDER) EXPENDITURES Deduct other reconciling items to adjust from budgetary basis to modified accrual basis: Change in encumbrances $ 249,500 $ 249,500 $267,308 252,055 148 $ 17,808 252,055 148 249,500 199,000 , 4oo,o00 400,000 . . 490,000 $ (lso,s,qo) $ (1s0,500)ts,67s $ .rg6+7J 519,511 27q,9\l ,. (J 03,819) ( I 03,83 6) s03.836 s03.836 NET CHANGES IN FLTND BALANCE, MODIFIED ACCRUAL BASIS FUND BALANCE AT BEGINNING OF YEAR FLIND BALANCE AT END OF YEAR The accompanying notes are an integral part of these financial statements. 15,67 5 224,557 240,232 25 CITY OF PRATTVILLE, ALABAMA STATEMENTOF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGETAND ACTUAL JUDICTAL SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2OI5 ACTUAL AMOUNTS VARIANCE BUDGETED AMOLINTS BUDGETARY WITH ORIGINAL FINAL BASIS BUDGET REVENUES: Fines and forfeitures Total revenues EXPENDITURES: Current operations: Public works Total expenditures EXCESS OF REVENUES OVER EXPENDITURES OTHER FINANICING SOURCES (USES): Transfers in Transfers out Total other flrnancing 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 $ .514,7q9 $ 544,79.0.- , 1!4,70-9. s!/+?70-0-, 497,308 !97,308 _497,30,F +97 ,308 . 47,392 47,392 460,845 3 83,738 3 83,73 8 7 7 ,107 29 ,7 15 5,1 14 5,1 14 ({.?,100)-_(17,109 _,...(17,100)re _ (47,100\ . (4-7J09 , ,., . ,- _, J4lreg9 __, _s,llt. 292 $ 292 35,121 $ 34,829 - ffi 627 627 35,7 48 46,1 l 5 81,863 460,845 $__ (83,8,55) -. (83,8.S) 1.1,3,s1?,. - I13,570 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 partof these financial statements. 26 CNY OF PRATTVII-,LE, ALABAMA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2OI5 BUS INESS.TYPE ACTTVITIES . ENTERPRISE FUNDS SANITATION WASTEWATER TOTAL GOVERNMENTAL ACTTVITIES - INTERNAL SERVICE FUNDS ASSETS: Current assets: Cash and cash equivalents Accounts receivables, net Prepaid items Total current assets Noncurrent assets: Capital assets, not being depreciated Capital assets, net of accumulated depreciation Total noncurrent assets Total assets DEFERRED OUTFLOWS: Employer pension contributions Total deferred outflows LIABILITIES: Current liabilities: Accounts payable and accrued liabilities Due to other funds Current portion of long-term debt Compensated absences Total current liabilities Noncurrent liabil ities : Long-term debt Compensated absences Net pension obligation Total noncurrent liabilities Total liabilities DEFERRED INFLOWS: Excess earnings of pension plan investments Total deferred inflows NET POSITION Net investment in capital assets Unrestricted (deficit) 5,309 23,87 4 731,601 2,456,714 3, 188,3 15 464,272 338,654 I ,627 ,099 1,965,7 53 510,731 4,964,456 5,47 5,187 849,385 . 6,591,555 7,440,940 l,5g0,gg6 9,048,269 10,629,255 464,272 76,696 83,986 160,682 76,696 83,986 160,682 $ 521,896 $ I g l,l40 18,565 2,161,621 $ 289,784 2,683,517 $ 480,924 464,272 105,616 262,831 2,670 304,134 19,476 545,7 16 72,270 409,7 50 282,307 545,716 74,940 384,774 6t 37l,ll7 35,079 718,903 753,982 941,596 ._ 1,,312,,71,3 384.835 5l1,078 63, I 60 78.7,242 1,361,480 5 I 1,078 98,239 I ,506, 145 2"115,462 l,l25,0gg 2"303,07 6 3,428,17 5 384.835 66,438 7,2,753 -. 139,1.91 72,7 53 l39,l9l66,438 849,385 5,534,7 6l (3p3,219) ., tJi2t-,66s- $ 466,145 $ 6,756,426 6,384,146 838,425 79,437 Total net position Net position of business-type activities The accompanying notes are an integral part of these financial statements. 7,222,571 27 7 ,222,57 | 79,437 CITY OF PRATTVILLE, ALABAMA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2OI5 BUSINESS.TYPE ACTIVITIES . ENTERPRISE FLINDS 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 IN NET POSITION TOTAL NET POSITION. BEGINNING AS ORGINALLY STATED CUMULATIVE EFFECT OF CHANGE IN ACCOLINTING PRINCIPLE TOTAL NET POSITION . BEGINNING, AS RESTATED TOTAL NET POSITION. ENDING GOVERNMENTAL ACTIVITIES - INTERNAL SAMTATION WASTEWATER TOTAL SERVICE FUNDS 2,457,,400, , t 3,91L891 6,369,291 635,315 _ 2,\5!,490 , 3,21l,p9l 6,369,291 635,315 653,716 1,234,261 170,140 4,019 56,209 22,598 123,632 253,386 1,242,262 ll7,016 446,806 55,737 37,601 464,462 907,102 2,476,523 287,156 450,825 lll,946 60, I 99 588,094 478,905 3,698,384 2,264,57 5 2,617,270 _.f ,8"8119.45 1,497,446 4,177,289 (3,541,97 4)192,825 1,294,621 I 98,41 I 1,297 ,010 1,495,421 - (27!Jso) (1e6,?50) - -. 1471..1009\ ,. (76,339\ l, 190,?60 1,251,93 I 6,432,554 (7 09,447\ (776,888\ 542,484 5,65 5,666 $ 466,145 - Change in net position of business-type activities The accompanying notes are an integral part of these financial statements. $ 1,024,421 5,275 37,031 3l I 4,071 5,586 (38,713) . , (38Jl3I 2,389 7,975 42,306 4,392 424 424 (3,541,550) 2,713,300 1,424,421 -. . (8?81250) 907,687 907,687 28 6,7 56,426 79,437 CITY OF PRATTVILLE, ALABAMA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30. 2OI5 BUSINESS-TYPE ACTIVITIES . ENTERPRISE FUNDS GOVERNMENTAL ACTIVITIES. INTERNAL SANITATION WASTEWATER TOTAL SERVICE FUNDS CASH FLOWS FROM (USED FOR) OPERATING ACTIVITIES: 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 FOR) NONCAPITAL FINANCING ACTIVTIIES : Transfers to other funds Transfers from other funds Net cash payments from (to) other funds CASH FLOWS FROM (USED rOR) CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets Proceeds from sale of capital assets Principal paid on long-term debt Interest paid on long-term debt CASH FLOWS FROM INVESTING ACTIVITIES: Interest received Net cash from investing activities NET DECREASE IN CASH AND CASH EQI.JIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR CASH AND CASH EQUIVALENTS, 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 (Increase) decrease in assets and deferred outflows: Accounts receivable Prepaid items Defened outflows Increase (decrease) in liabilities and defened inflows: Accounts payable and accrued liabilities Defened inflows Net cash from (used for) operating activities The accompanying notes are an integral part of these financial statements. $ 2,492,817 $ 3,968,168 $ 6,460,985 $ 635,315 (922,489) (721,252) (1,649,741) (4,085,597) , (t,?46,e7!\- -(1,?21:.llq.L . (2:468108e\ ffi323,357 2,019,798 2,343,15-5 (J,450,2.p2) ffi r{, --trv)v Y -).v.rvI. v -rvvrrr -.ffi (274,750) ( 196,250) (471,000) (58,048).. (?2,1J1) ,(150,501). 2,713,300 6l Net oash from (used for) noncapital financing activitier _G!42!L (288,703) (621,501) 2,713,361 Net cash used for capital and related financing activities (199,558) Q,372,829) (2,572,387) (204,833) (749,219) (954,052) 5,275 59,813 65,088 ( 1,638,326) ( 1,638,326) _ (45,q.e7) _(f,0e7) 3l I 4,071 4,3823rrru #n 424 424 (208,688) (637,663) (846,351) (736,497) ._ . 73-0,584 - ._2,79,??y_ . _3,5.2,9.,q6q, __ -. 1,200,?.99- $ 521,896 $ 2,161,621 $ 2,683,517 $ 464,272 $ lg2,g25 $ 1,294,621 $ 1,487,446 $ (3,541,974) 123,632 464,462 588,094 35,417 56,277 91,694 (6,613) 3,637 (2,976) (6,170) (6,756) (12,926) (82,172) 134,804 52,63266,438 72,753 l39,l9l 91,692 $ 323,357 $ 2,019,798 $ 2,343,155 $ (3,450,282) 29 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2015 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING 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 districts for concurrent terms of four years. As required by accounting principles generally accepted in the United States of America, the financial statements of the reporting entity include those of the City of PratMlle, Alabama (the primary government) and its component units. The component units discussed below are included in the City's reporting entity because of the significance of its operational or financial relationship with the City. Each discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the City. The component unit's column in the combined financial statements includes the financial data of the Autauga-Prattville Public Library (the Library), the Prattville Airport Authority (the Authority), and the Historic Prattville Redevelopment Authority (HPRA), which are determined to be component units of the City. The Library operates for the benefit of the City and Autauga County residents. The City annually provides significant operating subsidies to the Library and appoints its governing body. Based on these criteria, the Library is included as a component unit of the City for the year ended September 30, 2015. The Library operates on a fiscal year ending September 30. Financial statements of the Library can be obtained at its administrative office located in Prattville, Alabama. The Prattville Airport Authority was established for the purpose of acquiring, operating, constructing, and developing airport and industrial facilities. The City appoints the governing body and became obligated under a federal grant initiated by the Authority in September 2000. Based on this criteria, the Authority is included as a component unit of the City for the year ended September 30,2015. The Authority also operates on a fiscal year ending September 30. Financial statements of the Authority can be obtained at its administrative office located in Prattville, Alabama. The Historic Prattville Redevelopment Authority (HPRA) was formed to promote trade and corlmerce by inducing commercial enterprises to upgrade, improve, modernize, and expand existing facilities and to locate new facilities to the central business district of Prattville. The City annually provides operating subsidies to the HPRA and appoints its governing body. Based on this criteria, the HPRA is included as a component unit of the City for the year ended September 30, 2015. The Authority operates on a fiscal year ending September 30. Financial statements of HPRA can be obtained from the City's finance department in PratMlle, 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. 30 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2OI5 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued) Government-wide and fund financial statements - The basic financial statements consist of the government-wide financial statements and fund financial statements. 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 City's governmental activities are offset by the City's program revenues. Direct expenses are those that are clearly identifiable with a specific program or function. Program revenues are classified into three categories: (l) fines, fees, and charges, (2) operating grants and contributions, and (3) capital grants and 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 govemment-wide presentations. The City reports the following major governmental funds: General fund - This is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Capital projects funds - Capital projects funds are used to account for financial resources used for the acquisition or construction 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 tax special revenue fund - 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 revenuefund -The judicial special revenue frrnd 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. 3l CTTY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2015 NOTE 1 - 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. Vllastewater - The fi.rnd accounts for the revenues and costs related to the provision of sanitary sewer and wastewater treatrnent 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 property taxes associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Grants and similar items are recognized as revenue in the fiscal year in which all eligibility requirements imposed by the provider have been met. Governmental fund Jinancial statements - The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within 90 days after year-end. Sales taxes, gasoline taxes, grants, donations, and interest revenue are all considered to be susceptible to accrual. 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. 32 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2015 NOTE 1 - SUMMARY 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 program expenses are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the City's policy to first apply cost-reimbursement grant resources to such prograrns, followed by categorical block grants, and then by general revenues. Proprietary fund Jinancial statemenls - Proprietary funds are used to account for operations that are (a) financed and operated in a manner similar to private business enterprises - where the intent of the goveming body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. 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 property 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 1 through December 31 of the following year. Property taxes that have not been paid by January 1 are considered delinquent. Tax collections received by the County Tax Collector are remitted to the City on a monthly basis. 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 firnds" (i.e., the current portion of inter-fund loans) or "advances to/from 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 year end are considered fully collectible and are recorded at net realizable value. 33 CITY OF PRATTVTLLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2015 NOTE I - SUMMARY OF SIGNIFICANT ACCOLTNTING 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 management's assessment of the credit history with customers having outstanding balances and current relationships with thenr, 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, 2015; 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 restricted assets on the statement of net position is limited by their funding agreement. set aside for airport improvements are classified as of the Prattville Airport Authority because their use Capital assets - Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Such assets are recorded at historical cost or estimated historical cost. Donated capital assets are recorded at their estimated fair value at the date of donation. 34 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2OI5 NOTE 1 - 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 ASSET CLASS Land improvements Building and improvements Furniture and equipment Runways ASSET CLASS Machinery and equipment Land improvements Buildings ESTIMATED USEFUL LTVES CAPITALIZATION THRESHOLD CAPITALVATION THRESHOLD 5,000 5,000 5,000 5,000 CAPITALTZATION THRESHOLD 5,000 25,000 25,000 40 years 20 years 5 - 15 years 5 - 20 years 50 years 25,000 25,000 5,000 5,000 50,000 unit, are depreciated using theCapital assets of the Prattville Airport Authority, a component straight-line method over the followirrg estimated useful lives: ESTIMATED USEFUL LTVES 20 years 3 - 40 years 5 - 20 years 8 - 25 years Capital assets of the Historic Prattville Redevelopment Authority, a component unit, are depreciated using the straightJine method of depreciation over the following estimated useful lives: ESTIMATED USEFUL LIVES 5 l0 years 20 years 40 years 35 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCTAL STATEMENTS SEPTEMBER 30,2015 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 two items that qualifies for reporting in this category. The deferred loss on refunding is reported in the government-wide statement of net position. A deferred 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. In addition, the City and Library each have one deferred outflow related to the City's pension plan. See Note 8. 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 City and Library each have only one item that qualifies for reporting in this category. These amounts represent the difference between projected and actual earnings on pension plan investments. These amounts are deferred and recognized as an outflow of resources in the period that the amounts become due. See Note 8. Compensated absences - The City allows employees to accumulate vacation and sick leave up to certain limits for use in subsequent periods. Upon termination of employment, an employee receives payment of accumulated vacation hours up to a maximum of 360 hours at current wage rates. Upon retirement, an employee can receive payment of 50% of accumulated sick leave hours up to a maximum of 360 hours at current wage rates. All vacation and sick pay is accrued when incurred in the government-wide financial statements up to certain limits for use in subsequent periods. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Long-term obligations - In the government-wide financial statements 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. 36 CTTY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2015 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued) In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Lease oblisations - Capital lease obligations are stated at the original fair market value of leased assets capitalized,,less payments since the inception of the lease discounted at the implicit rate of interest in the lease. Also, in the year an asset is acquired by capital lease, the expenditure for the asset and the offsetting amount of the financing soluce are reflected in the fund financial statements in the statement of revenues, expenditures, and changes in fund balances. Capital lease obligations of govemmental 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 - ln accordance with Governmental Accounting Standards Board Statement 54, Fund Balance Reporting and Governmental Fund Type Definitions, the City classifies government fund balance as follows: Nonspendable - includes fi,rnd 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 puposes which are extemally 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 changed by the government taking the same action that imposed the constraint initially. Contractual obligations are included to the extent that existing resources in the frrnd have been specifically committed for use in satisffing those contractual obligations. Fund balance is committed by the City Council by ordinance. Assigned - includes spendable fund balance amounts that are intended to be used for specific purposes that are neither considered restricted or committed. This indicates that resources in these funds are, at a minimum, intended to be used for the purpose of that fund. 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. 37 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2OI5 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)o 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. 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. Pensions - The Employees' Retirement System of Alabama (the Plan) financial statements are prepared using the economic resources measurement focus and accrual basis of accounting. Contributions are recognized as revenues when earned, pursuant to the plan requirements. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Expenses are recognized when the corresponding liability is incurred, regardless of when the payment is made. Investments are reported at fair value. Financial statements ile prepared in accordance with requirements of the Govemmental Accounting Standards Board (GASB). Under these requirements, the Plan is considered a component unit of the State of Alabama and is included in the State's Comprehensive Annual Financial Report. Management estimates and assumptions - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could vary from estimates used. NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOI.'NTABILITY: Budgets and budeetary accounting - The budget is adopted annually at the beginning ofeach fiscal year for the general fund, gas tax special revenue fi,rnd, capital projects fund, debt service fund, and judicial special revenue fund. The Council must approve transfers of appropriations or revisions between and among departments. Management can approve transfers within an individual department only. Actual expenditures should not exceed appropriations in departments. Appropriations lapse at the end of the fiscal year unless expended or encumbered. Encumbered appropriations are carried forward. Encumbrances (e.g., purchase orders, contracts) 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. 38 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2015 NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY: (continued) GENERAL FUND Excess of revenues and other financing sources over expenditures and other uses (GAAP basis) Encumbrances at beginnirg 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 revenues and other financing sources over expenditures and other uses (GAAP basis) Encumbrances at beginning of the year Encumbrances at end of the year Excess of revenues and other financing sources over expenditures and other uses - actual (non GAAP budgetary basis) 1,139,700 27 4,063 (500,7 4l) 913,022 JUDICIAL SPECIAL REVENUE FUND $ 35,7 48 270 (8e7) 35,121 Deficit net position - The City had a deficit unrestricted net position at September 30, 2015 of $28,898,955. 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. In 2015 the deficit increased because of the net pension liability. See Note 8. NOTE 3 - CASH, CASH EQUTVALENTS, AND INVESTMENTS: Deposits - Custodial credit risk - The City's investment policy requires that bank deposits be fully insured by the Federal Deposit Insurance Corporation or be covered under the Security for Alabama Funds Enhancement (SAFE) Program. The SAFE program is a multiple financial collateral pool administered by the State Treasurer according to State of Alabama statute. 39 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2OI5 NOTE4-CAPITALASSETS: Capital asset activity for the City's governmental activities for the year ended September 30,2015 was as follows: BEGINNING ENDING BALANCE INCREASE DECREASE BALANCE Governmental activities : Capital assets, not being depreciated: Construction in progress S 779,845 $ 1,169,536 $ 1,949,381 Land 2,649,938 2.649.938 Total capital assets, not being depreciated 3,429,783 1,169,536 4.s99.319 Capital assets, being depreciated: Buildings and building improvements Land improvements Vehicles Office, nonoffice, and computer equipment Infrastructure Total capital assets, Less accumulated depreciation for: Buildings and building improvements Land improvements Vehicles Office, nonoffice, and computer equipment lnfrastructure Total accumulated 5,164,671 5,164,67 | 5, I 89,208 39,7 15 5,228,923 4,866,1 88 1,039,428 $ 266,854 5,638,762 5 ,521 ,925 I 99 ,9 8 5 129 ,7 96 5 ,592,1 I 4 45,125,739 1,739,000 _ 46,864,739 being depreciated 65,867.731 3.018.128 396.650 68.489.209 r,297,618 l34,9ll 1,432,529 4,865,280 318,564 5, 183,844 3,5 13,836 467,146 256,375 3,724,607 3,301,360 363,255 129,796 3,534,819 7,908,288 922,536 _ 8,830,824 depreciation 20,886.382 2.206,412 386.171 22.706.623 Total capital assets, being depreciated, net 44,981,349 811,716 10,479 45-782,586 Governmental activities capital assets, net $ 48,411,132 S 1,981,252 S 10,+.79 _q-50,381,905 40 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2015 NOTE 4 - CAPITAL ASSETS: (continued) Capital asset activity for the City's business-type activities for the year ended September 30,2015 was as follows: BEGINNTNG ENDTNG BALANCE INCREASE DECREASE BALANCE Business-type activities : Capital assets, not being depreciated: Construction in progress $ 73,988 $ 634,746 $ 708,734 1,257 ,019 1.257.019 Total capital assets, not being depreciated 1,331,007 634,7 46 1.965.7 53 Capital assets, being depreciated: Buildings and building improvements Land improvements Vehicles Less accumulated depreciation for: Buildings and building improvements Land improvements Vehicles 5,889,7 62 3,221,,430 2,721,322 149,500 1,636,519 160,668 5,889,762 3,221,430 1,693,576 263,208 $ 44,100 1,912,684 Office, nonoffrce, and computer equipment 1,809,807 56,098 Total capital assets, r.86s.90s being depreciated 12,614,575 319,306 44,100 12.889.781 2,870,822 1,797 ,187 1,295,7 16 134,430 2l ,319 1,408,827 Office, nonoffrce, and computer equipment 1.194.262 143.496 Total accumulated 1.33 7 .7 58 depreciation 6,847,819 588,094 21,319 7,414,594 Total capital assets, being depreciated, net 5,766,756 (268,788) 22,781 5-475,187 Business-type activities capital assets, net $ 7,097,763 $ 365,958 $ .,??,781 _8 7 A40940. 4t CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2015 NOTE 4 - CAPITAL ASSETS: (continued) Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities : General government Public works Public safety Cultural and recreational Total depreciation expense - governmental activities Business-type activities : Sanitation Wastewater $ 987,230 307,236 57 6,810 335,136 8 22o6AD $ 123,632 464,462 Total depreciation expense - business-type activities _$ 588,091_ Component units - Capital asset activity for the Autauga-Prattville Public Llbrary for the fiscal year ended September 30, 2015 is as follows: BEGINNING ENDING BALANCE TNCREASE DECREASE BALANCE Capital assets, being depreciated: Equipment Total capital assets, being depreciated $ 160,47 5 $ 160,47 5 160,47 5 160,47 5 Less: Accumulated depreciation 107,055 S %345 1 16,400 Total capital assets, being depreciated, net $ 53,420 $ (9,345) | - _$ 44,0?5_ 42 CITY OF PRATTVTLLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2015 NOTE 4 - CAPITAL ASSETS: (continued) Capital asset activity for the Prattville Airport Authority for the fiscal year ended Septernber 30,2015 is as follows: BEGINNING BALANCE TNCREASE 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 $ 2,665,160 21,486 19,272 21,486 $ 2,665,160 19,272 2,686,646 19,272 21,486 2,684,432 1,495,301 6,530,7 45 1,402,007 491,099 177,954 9,002 5,250 1,928 1,495,301 6,708,699 \,411,009 494,421 9,919,152 192,206 10, 1 09,430 635,142 2,801 ,548 467,089 65,87 | 7 4,7 65 229,154 31,389 26,807 1,928 709,907 3,03 0,702 498,478 90,7 50 3,969,650 362,1 15 4,329,837 5,949,502 169,909)5,779,593 $ 8,63 6,148 $ 8,464,025 43 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2OI5 Capital asset activity for the Historic September 30,2015 is as follows: Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Land improvements Building improvements Machinery and equipment Total capital assets, being depreciated Less: Accumulated depreciation Total capital assets, being depreciated, net Total capital assets, net Prattville Redevelopment Authority for the fiscal year ended BEGINNING BALANCE INCREASE ENDING DECREASE BALANCE 183,500 $ l,ooo 1,804, I 88 $ 184,500 1,804,188 183,500 1,805,1 88 1,988,688 12,000 285,000 23,000 12,000 285,000 23,000 320,000 93,490 7,908 320,000 101,398 226,510 7,908)218,602 410,010 $ 1,797 ,280 $ -- $ 2,207,290 NOTE 5 - INTERFUND BALANCES: lnterfund 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. 44 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2OI5 The composition of interfund receivables following: and payables as of September 30, 2015 consists of the RECEryABLE FUND PAYABLE FLIND AMOUNT General General General General General Wastewater Total General fund Judicial special revenue fund Wastewater fund Sanitation fund Totals Sanitation Gas tax special revenue fund Capital projects fund Internal service fund Wastewater Sanitation 250,331 93,781 22,006 6l 31,97 6 12,500 4 10,65 5 The following is a schedule of interfund transfers for the year ended September 30, 201 5: TRANSFER OUT TRANSFER IN DEBT SERVICE FUND CAPITAL PROJECTS FUND INTERNAL JUDICIAL SERVICE FUND FUND TOTAL $ 5,5 5 3, 847 $ 2,083 ,730 5,1 l4 $ 2,195,200 47,100 196,250 214,7 50 9,83 7 ,891 47,100 196,250 27 4,7 50 $ 5,553,847 $ 2,093,730 $$ 2,713,300 10,3 55,99 I5,1 l4 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 20Yo of the assessed value of taxable property as of the beginning of the fiscal year. As of September 30, 2015, the amount of outstanding debt applicable to this limit was equal to 1034% of property assessments as of October 1,2014. 45 CITY OF PRATTVTLLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2015 NOTE 6 - LONG-TERM DEBT: (continued) Long-term liability activity for the year ended September 30, 2015, was as follows: DUE WITHIN BEGTNNING ENDING ONE BALANCE ADDITIONS REDUCTIONS BALANCE YEAR Govemmental activities: Warrantandothernotespayable $44,157,111 $12,280,000 $17,306,667 $39,130,444 S2,425,000 Limited obligation warrant 1,558,312 12,054 1,546,258 Less deferred amounts: Debt issuance discounts (81,449) (8,160) (73,289) Add defened amounts: Debt issuance premiums 339,775 1,305,095 91,404 1,553,466 Total warrants and other notes payable 45,973,749 13,585,095 17,401,965 42,156,879 2,425,000 Compensated absences Post-employment benefits other than pensions Net pension obligation 11,166,526 Governmental activities long-terrn liabilities Business-type activities: General obligation warrants 2,695,120 1,040,3 13 687,278 576,748 1,150,843 314,549 2,358,350 405,227 22,442 2,741,135 87 4,314 10,292,212 60,538,938 14,677,600 18,875,469 56,341,069 2,739,549 1,638,326 1,056,794 545,716 184,917 66,707 78,445 173,179 74,940Compensated absences Net pension obligation Business-type activities 1,634,091 127 ,946 1,506, I 45 long-term liabilities 4,514,128 66,707 1,844,717 2,736,118 620,656 Totallong-termdebt $ 65,053,066 $ 14,744,307 $ 20,720,186 -g 59,W?JU-j_i,360,205- 46 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2OI5 NOTE 6 - LONG-TERM DEBT: (continued) Long-term debt at September 30, 2015 consists of the following: Governmental activities : General Obligation Economic Development Improvement Warrants, Series 2006A; principal amount $19,875,000; graduated principal payments are due annually beginning November 1,2010 and semiannual interest payments due each November 1 and May 1; interest at 3.65Yo to 5.00o/o; current rate on bonds 5Yo; final maturity date is November l, 2026. Proceeds used for economic development. General Obligation Economic Development lmprovement Warrants, Series 20068; principal amount $9,000,000; graduated principal payments are due annually beginning November 1,2009 and semiannual interest payments due each November 1 and May l; interest at 3.50Yo to 5.00%; rate on current bonds 4.5%; final maturity date is November l, 2025. Proceeds used for economic development. 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 1, beginning March I , 2010; interest rate ranges from 2Yo to 4Yo; rate on current bonds 3Yo; final payment is due September 1,2022. Proceeds used to refund the 2001 and2002 Warrants. General Obligation Chevron Warrants Series 2009A; principal amount $1,820,000; graduated principal payments are due annually beginning on December l, 2010 and semiannual interest payments due each June 1 and December l, beginning June 1, 2010; interest rate ranges from2.Z%oto 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 energy efficient improvements. TOTAL 1,065,000 970,000 3,800,000 1,655,444 47 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2OI5 NOTE 6 - LONG-TERM DEBT: (continued) 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 2.0o/o; frnal 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 I and March 1, beginning March 1,2015; interest rate ranges from 1.55% to 4.0Yo; rate on current bonds 2.0%o; final payment is due March 1,2026. Proceeds used for the partial refunding of the Series 2007 General Obligation Economic Development lmprovement Warrants. General Obligation Refunding Warrants Series 2015, principal amount $12,280,000; graduated principal payments are due annually beginning November I,2015 and semiannual interest payments due each November 1 and May 1, beginning November 1,2015; interest rate ranges from 1.5% to 5.0Yo; rate on current bonds 2.0%; final payment is due November 1,2025. Proceeds used for the partial refunding of the Series 2006A General Obligation Economic Development lmprovement Warrants and partial refunding of the Series 20068 General Obligation Economic Development lmprovement Warrants. Total governmental activities TOTAL 9,505,000 9,855,000 12,280,000 39,130,444 48 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2015 NOTE 6 - LONG-TERM DEBT: (continued) Business-type activities: General Obligation Sewer Warrant, Series 1996; principal amount $3,025,000; graduated principal payments are due annually on August 15 and semiannual interest payments due each February 15 and August 15; interest rate of 3.18%; final maturity date is August 15,2017. Proceeds used for sludge digesters and wastewater treatment plant upgrade. General Obligation Sewer Warrant, Series 2013; principal amount $900,000; monthly principal and interest payments of $11,570 due monthly beginning on September 15, 2013; interest rate of 2.190%o; final maturity date is August 15,2020. Proceeds used to pay for purchase of property to be used as a waste water byproduct application site. TOTAL 420,000 636,794 Total business-type activities Total general obligation warrants 1,05 6,794 40,187,238 Limited Obligation Warrant - The City issued Limited Obligation Warrant, Series 20068 in the amount of $1,594,489 for the construction of infrastructure. The warrant bears a -0-7o 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 75Yo of the sales tax revenue remitted by retail establishments located on the specified property. As of September 30,2015, the City had redeemed $48,231 of the outstanding warrants. The balance on the warrant at September 30,2015 is $1,546,258. The Limited Obligation Warrant does not constitute a direct obligation and pledge of the full faith and credit of the City. 49 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2OI5 NOTE 6 - LONG-TERM DEBT: (continued) Debt service requirements on long-term debt at September 30,2015 are as follows: TOTAL ANNUAL REQUIREMENTS GOVERNMENTAL ACTIVITIE S BUSINES S.TYPE ACTIVITIES PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL PRINCIPAL TNTEREST TOTAL YEARENDING SEPTEMBER 3O: 2016$2,970,',tr6$1,240,819$4,211,535$2,425,000$1,214,334$3,639,334$545,716$26,485$572,201 2017 2,921,572 t,tt2,ss2 4,036,124 2,195,000 t,1D2,2',19 3,897,279 128,572 10,273 138,845 2018 3,461,456 1,012,498 4,473,954 3,330,000 1,005,il0 4,335,1 t0 131,456 7,388 138,844 2019 3,574,405 903,025 4,477,430 3,440,000 898,585 4,338,585 134,405 4,440 138,84s 2020 3,674,6aO 79t,t|7 4,465,1A7 3,558,035 789,680 4,341,7t5 116,645 1,427 118,072 2021 -2025 17,600,000 2,0'14,584 t9,674,584 17,600,000 2,074,584 19,674,584 2026 - 2030 5,985,000 218,879 6,203,879 5,985,000 218,879 6,203,879 2031 - 2035 2036 -]ry---j__jj;g--.-J--Totals$41,733,496$7,353,464$49,086,960$40,6i6,i02$7,303,4s1$47,980,153$1,056,794$50,013$1,106,807 Advance refrmding - The City issued $12,280,000 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 $12,770,000 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 $624,635. 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 $1,182,155. The result of this refunding was an economic gain of $1,105,702. Component units - The Prattville Airport Authority's capital debt at September 30, 2015 is as follows: Revenue and Grant Anticipation Bond Series 2014 - River Bank & Trust; $551,266; ; interest rate of 4.69% until April 1,2029; principal and interest due monthly beginning May 22,2014; secured by pledge of all revenues, rents, receipts, income, and funds derived by the Airport Authority.$ 514,37 | $ 514,37 | - Total long-tenn capital debt s0 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2OI5 NOTE 6 - LONG-TERM DEBT: (continued) Maturities on capital debt are as follows: CITY OF PRATTVILLE AIRPORT AUTHORITY PRINCIPAL INTEREST TOTAL YEAR ENDTNG SEPTEMBER 30: 2016 2017 201 8 2019 2020 2021 - 2025 2026 - 2029 Totals 699,354 27,561 28,968 30,37 5 31,852 33,349 192,938 169,328 23,926 22,519 2l,l12 19,635 18, 138 64,496 15,157 51,487 51,487 51,487 51,487 51,487 257,434 184,485 514,371 s 184,983 - Total interest cost on capital debt in 2015 was $25,110. Capital debt activity for the year ended September 30, 2015 was as follows: BEGINNING BALANCE ADDITIONS REDUCTIONS Revenue and grant anticipation Bond - River Bank & Trust $ 540,717 $ 540,7 17 - $ 26,346 Totals ENDING DUE WITHIN BALANCE ONEYEAR 27,561 $ $ 26,346 $ 514,371 ------ 27,561 $ 514,371 5l CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2OI5 The Historic Prattville Redevelopment Authority's notes payable at September 30, 2015 are as follows: Trustnark National Bank secured by real estate; monthly principal and interest payments of $l,8ll; interest rate of 4.34%; final maturity date is December 5,2019. Proceeds used to purchase real estate.$ 126,77 5 Trustrnark National Bank unsecured; monthly principal and interest payments of $291; interest rate of 4.34%; maturity date of December 15,2019.13,492 Southeastern Commercial Finance term loan secured by real estate; monthly interest payments at a rate of 8.00%. Proceeds used to purchase real estate. Loan was refinanced in March 2016 (see Note 12).1,7 55,250 Total Notes payable maturities at September 30, 2015 are as follows: $ 1,895 ,517 --HISTORIC PRATTVILLE REDEVELOPMENT A UTHORITY PRINCIPAL INTEREST TOTAL YEAR ENDING SEPTEMBER 30: 2016 2017 201 8 2019 2020 Totals 21,233 3,996 $ 19,431 $ 20,320 22,1 86 57,097 5,798 4,909 3,044 606 25,229 25,229 25,229 25,230 57,703 $ rua,267 $ 18,353 $ 158,620 --re--- 52 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2OT5 Long-term debt activity for the Historic Prattville Redevelopment Authority for the year ended September 30,2015, was as follows: BEGTNNING ENDING DIJE WITHIN BALANCE ADDITIONS REDUCTIONS BALANCE ONE YEAR Notes payable to bank 154,227 $ 1,755,250 13,960 $ 1,895,517 19,431 s 1,755,250 s 1,895, 517 NOTET-NOTESPAYABLE: The City issued variable rate General Obligation Note, Series 2011A dated May l,20ll in the amount of $ I ,000,000. The proceeds of the note were used as a line of credit for payrng operation expenditures as needed for the City. The line of credit was most recently renewed on May 30, 2015 with a maturity date of May 30,2016. At September 30,2015, the balance of the loan had been paid in tull. NOTE8-PENSIONPLAN: Plan description - The Employees' Retirement System of Alabama (ERS), an agency multiple- employer plan, was established October l, t945 under the provisions of Act 515 of the Legislature of 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 the general administration and operation of ERS is vested in its Board of Control. The ERS Board of Control consists of 13 trustees. The Plan is administered by the Retirement Systems of Alabama (RSA). Title 36-Chapter 27 of the Code of Alabama grants the Board to establish and amend the benefit terms to the ERS Board of Control. The Plan issues a publicly available financial report that can be obtained at www.rsa-al.gov. The ERS Board of Control consists of 13 trustees as follows: The Governor, ex officio. The State Treasurer, ex officio. 3) The State Personnel Director, ex officio. 4\ The State Director of Finance, ex officio. 5) Three vested members of ERS appointed by the Governor for a term of four years, no two of whom are from the same department of state government nor from any department of which an ex officio trustee is the head. Totals $ 154,227 -- $ 13,960 -- $ 19,431 - r) 2) s3 CITY OF PRATTVTLLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2015 NOTE 8 - PENSION PLAN: (continued) 6) Six members of ERS who are elected by members from the same category of ERS for a term of four years as follows: Two retired members with one from the ranks of retired state employees and one from the ranks of retired employees of a city, county, or a public agency each of whom is an active beneficiary of ERS. Two vested active state employees. c. Two vested active employees of an employer participating in ERS pursuant to $ 36-27-6. Benefits provided - State law establishes retirement benefits as well as death and disability benefits and any ad hoc increase in postretirement benefits for the ERS. Benefits for ERS members vest after ten yearc of creditable service. State employees who retire after age 60 (52 for State Police) with ten years or more of creditable service or with 25 years of service (regardless of age) are entitled to an annual retirement benefit, payable monthly for life. Local employees who retire after age 60 with ten years or more of creditable service or with 25 or 30 years of service (regardless of age), depending on the particular entity's election, are entitled to an annual retirement benefit, payable monthly for life. Service and disability retirement benefits are based on a guaranteed minimum or a formula method, with the member receiving payment under the method that yields the highest monthly benefit. Under the formula method, members of the ERS (except State Police) are allowed 2.0125% of their average final compensation (highest three of the last ten years) for each year of service. State Police are allowed 2.8750% for each year of State Police service in computing the formula method. Act 377 of the Legislature of 2012 established a new tier of benefits (Tier 2) for members hired on or after January l, 2013. Tier 2 ERS members are eligible for retirement after age 62 (56 for State Police) with ten years or more of creditable service and are entitled to an annual retirement benefit, payable monthly for life. Service and disability retirement benefits are based on a guaranteed minimum or a formula method, with the member receiving payment under the method that yields the highest monthly benefit. Under the formula method, Tier 2 members of the ERS (except State Police) are allowed 1.6500% of their average final compensation (highest five of the last ten years) for each year of service. State Police are allowed 2.3750% for each year of state police service in computing the formula method. Members are eligible for disability retirement if they have ten years of credible service, are currently in-service, and determined by the RSA Medical Board to be permanently incapacitated from further performance of duty. Preretirement death benefits are calculated and paid to the beneficiary on the member's age, service credit, employment status, and eligibility for retirement. a. b. 54 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2OI5 NOTE 8 - PENSION PLAN: (continued) The ERS serves approximately 846local participating employers. These participating employers include 287 cities, 65 counties, and 494 other public entities. The ERS membership includes approximately 83,874 participants. As of September 30,2014, membership consisted of: ERS CITY Retirement and beneficiaries cuffently receiving benefits Terminated employees entitled to but not yet receiving benefits Terminated employees not entitled to a benefit Active members Total 21,691 1,252 5,048 5 5,883 90 23 33r 44483,87 4 Contributions - Covered members of the ERS contributed 5.00% of earnable compensation to the ERS as required by statute until September 30, 2011. From October l,20IL, to September 30,2012, covered members of the ERS were required by statute to conffibute 7 .25Yo of earnable compensation. Effective October 1,20L2, covered members of the ERS are required by statute to contribute 7.50% of earnable compensation. Certified law enforcement, correctional officers, and firefighters of the ERS contributed 6.00% of earnable compensation as required by statute until September 30, 2011. From October l,20ll, to September 30, 2012,certifred law enforcement, correctional officers, and firefighters of the ERS were required by statute to contribute 8.25Yo of earnable compensation. Effective October l, 2012, certified law enforcement, correctional officers, and firefighters of the ERS are required by statute to contribute 8.50% of eamable compensation. State Police of the ERS contribute 10.00% of earnable compensation. ERS local participating employers are not required by statute to increase contribution rates for their members. Tier 2 covered members of the ERS contribute 6.00% of earnable compensation to the ERS as required by statute. Tiet 2 certified law enforcement, correctional officers, and firefighters of the ERS are required by statute to contribute 7.00% of earnable compensation. Tier 2 State Police members of the ERS contribute 10.00% of eamable compensation. These contributions rates are the same for Tier 2 covered members of ERS local participating employers. The ERS establishes rates based upon an actuarially determined rate recommended by an independent actuary. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits eamed by employees during the year, with additional amounts to finance any unfunded accrued liability, the pre-retirement death benefit, and adminisffative expenses of the Plan. For the year ended September 30,2015, the City's active employee contribution rate was 5.70Yo of covered employee payroll, and the City's average contribution rate to fund the normal and accrued liability costs was 8.91% of covered employee payroll. The City's contractually required contribution rate for the year ended September 30, 2015 was 9.18% of pensionable pay for Tier 1 employees, and 6.88% of pensionable pay for Tier 2 employees. These required contribution rates are based upon the actuarial valuation dated September 30, 2013, a percent of annual pensionable payroll, and actuarially determined as an amount that, when combined 55 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 8 - PENSION PLAN: (continued) with member contributions, is expected to finance the costs of benefits earned by members during the year, with an additional amount to finance any unfunded accrued liability. Total employer contributions to the pension plan from the City were $1,258,700 for the year ended September 30, 2015. The City's net pension liability was measured as of September 30, 2014, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as September 30,2013 rolled forward to September 30,2014 using standard roll-forward techniques as shown in the following table: Total pension liability as of September 30, 2013 (a) Entry age norrnal cost for October I ,2013 - September 30, 2014 (b) Actual benefit payments and refunds for October I ,2013 - September 30, 20la (c) Total pension liability as of September 30, 2014: [(a) x (1.08)] + (b) - [(c) x (1,04)] Actuarial assumptions - The total pension liability in the September 30, determined using the following actuarial assumptions, applied to measurement: Inflation Salary increases Investment rate of retum t * Net of pension plan investment expense $ 47 ,093, 106 l,l7 1,241 (2,178,239) 49,7 66,427 2013 actuarial valuation was all periods included in the 3.000 3 .7 5% - 7 .250h 8.00% Mortality rates for ERS were based on the RP-2000 Combined Mortality Table Projected with Scale AA to 2015 set forward three years for males and two years for females. The rates of mortality for the period after disability retirement axe according to the sex distinct RP-2000 Disability Mortality Table. The actuarial assumptions used in the September 30, 2013 valuation were based on the results of an investigation of the economic and demographic experience for the ERS based upon participant data as of September 30, 2010. The Board of Control accepted and approved these changes on January 27,2012, which became effective at the beginning of fiscal year 2012. 56 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCTAL STATEMENTS SEPTEMBER 30, 2OI5 NOTE 8 - PENSION PLAN: (continued) The long-term expected rate of refurn on pension plan investnents was determined using a log- normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of refurn by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of geometric real rates of return for each major asset class are as follows: TARGET ALLOCATION LONG-TERM EXPECTED RATE OF RETURN Fixed income U. S. large stocks U. S. mid stocks U. S. small stocks International developed market stocks International emerging stocks Real estate Cash Total 25.00% 34,00% 8.00% 3.000 15.00% 3.00Yo 10.00% 2.00% 5.000h 9.000 12.000 15.00Yo I L00% 16.000 7.500h 1.500 100 .000 Discount rate - The discount rate used to measure the total pension liability was the long-term rate of return, 8.00%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that the employer contributions will be made in accordance with the funding policy adopted by the ERS Board of Control. Based on those assumptions, components of the pension plan's fiduciary net position were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 57 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2OI5 NOTE 8 - PENSION PLAN: (continued) Changes in Net Pension Liability: INCREASE (DECREASE) TOTAL PENSION LIABILITY (a) PLAN FIDUCIARY NET POSITION (b) NET PENSION LTABILITY (a)-(b) Balance at September 30, 2013 Changes for the year: Service cost lnterest Contributions - employer Contributions - employee Net investment income Benefit payments, including refunds of employee contributions Transfer amount employers Net changes Balance at September 30, 2014 47 ,093,106 l,l71,241 3,680,319 34,292,489 [,15 7 ,444 7 55,114 4,099 "7 66 (2,178,239) 12,900,617 l,l7l,24l 3,680,3 19 ( 1,1 57 ,444) (7 55,1 14) (4,089,7 66) 148,504 0,0a2,260) (2,r78,239) 2,673,321 49,7 66,427 37,,968,070 r1,798,357 Sensitivity of the net pension liability to changes in the discount rate - The following table presents the City's net pension liability calculated using the discount rate of 8.00yo, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is l-percentage point lower (7.00%) or l-percentage point higher (9.00%) than the current rate: r.00% DECREASE (7.00%) $ 18,425,681 CURRENT RATE (8.00%) s 1r,798,357 1.000 INCREASE (e.oo%) City's net pension liability (asset)6,244,537 Pension plan fiduciary net position - Detailed information about the pension plan's fiduciary net position is available in the separately issued RSA Comprehensive Annual Report for the fiscal year ended September 30,2014. The supporting actuarial information is included in the GASB Statement No. 68 Report for the ERS prepared as of September 30,2014. The auditor's report dated June 3, 2015 on the Schedule of Changes in Fiduciary Net Position by Employer and accompanying notes is also available. The additional financial and actuarial information is available at www.rsa-al.gov. s8 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2015 NOTE 8 - PENSION PLAN: (continued) For the year ended September 30,2015, the City recognized pension expense of $1,245,531. At September 30, 2015, the City reported deferred outflows of resources and deferred inflows of resources related to pensions ofthe follouring sources: Net differences between projected and actual earnings on pension plan investments Employer contributions subsequent to the measurement date 1,090,347 1,258,700 Totals 1,258,700 1,090,347 Amounts reported as deferred outflows for employer contributions subsquent to the measurement date will be recognized as a reduction of the net pension liability in the year ending September 30, 2016. Amounts reported as deferred inflows of resources to pensions will be recognized in pension expense as follows: YEAR ENDED SEPTEMBER 30: DEFERRED OUTFLOWS OF RESOURCES 272,587 272,587 272,587 272,586 DEFERRED INFLOWS OF RESOURCES 2016 2017 2018 2019 1,090,347 NOTE 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS: The City of Prattville administers a single-employer defined benefit (OPEB) plan for the employees of the City. From an accrual accounting perspective, the cost of post-employment healthcare benefits, like the cost of pension benefits, should be associated with the periods in which the cost occurs, rather than in the future 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 acfual retirement. s9 CTTY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2015 NOTE 9 - POST-EMPLOYMENT BENEFITS OTHERTHAN PENSIONS: (continued) The employees are covered by the Retirement System of Alabama and must meet the eligibility provisions adopted by resolution to receive retiree medical benefits. The earliest retirement eligibility provisions are as follows: 25 years of service at arly age; or, age 60 and 10 years of service (called "Tier I members). Employees hired on and after January 1,2013 (called "Tier II" members) are eligible to retire only after attainment of age 62 or later completion of 10 years of service. Benefit provisions and contribution requirements of the plan may be established or amended by the Council. 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. The number of participants as of October l, 2014, the effective date of the biannual actuarial valuation, are as follows: NUMBEROF ENROLLEES Active employees Retired employees Total 310 8 318 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 30,20L5, the City of Prattville, Alabama's portion of health care funding cost for retired employees totaled 522,442. 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 45) has been used for the post-employment benefits. The total ARC for the fiscal year beginning October l, 2014 is $447 ,277, as set forth below: 60 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2015 NOTE 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS: (continued) MEDICAL 447,277 Net post-employment benefit obligation (asset) - The following table shows the components of the annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation: MEDICAL Normal cost 30 year unfunded AAL amortizatron amount Annual required contribution (ARC) Annual required contribution Interest on net OPEB obligation Adjustment to annual required contribution Annual OPEB cost Contributions made Current year retiree premium Increase in net OPEB obligation Net OPEB obligation - beginning of year Net OPEB obligation - end of year 226,484 220,793 $ 447,277 94,334 ( 13 6,384) 405,227 -0- (22,442) 382,785 2,358,3 50 2,741,135 The City's annual OPEB cost, percentage of the cost contributed, and the net OPEB obligation for fiscal year 2015 and the previous two years is as follows: POST- EMPLOYMENT BENEFIT Medical Medical Medical FTSCAL YEAR ENDED ANNUAL OPEB COST PERCENTAGE OF ANNUAL COST NET OPEB CONTRIBUTED OBLIGATION September 30, 2013 September 30, 2014 September 30, 2015 413,354 424,616 405,227 12.700h 13.3 5% 5.54Yo 1,990,427 2,358,3 50 2,7 41,136 6l CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2OI5 NOTE 9 - POST-EMPLOYMENT BENEFITS OTHERTHAN PENSIONS: (continued) Funded status and fundine proqress - As of September 20, 2015, the actuarial accrued liability for benefits was $3,970,787 all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was $14,118,970 and the ratio of the unfunded actuarial liability to the covered payroll was28.l2o/o as presented in the following table: 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 3,970,787 -0- 3,970,787 -0-% 14,118,970 28.12% 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 regardmg (1) turnover rate; (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 retum assumption (discount rate), mortality, and turnover. 62 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2OI5 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 l0%o of retirees decline coverage because of the substantial retiree contribution required. Post-employment benefit plan eligibilitv 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'. ln addition, "Tier II" 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 acfual retirement. Investment retum assumption (discount rate) - GASB Statement 45 states that the investment return assumption should be the 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 4o/o anrr.;oll investment return has been used in this valuation. Health care cost trend rate schedule beginning with 8% later. The expected rate of increase in medical cost is based on a graded annually, down to an ultimate annual rate of 5 .|oh for ten years out and Mortality rate - The 1994 Group Annuity Reserving (94GAF) table, projected to 2002, based on a fixed blend of 50oh 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% of the cost of the 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 at age 65. 63 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2OI5 lnflation rate - lncluded in both the Investment Return Assumption and the Healthcare Cost Trend rates above is an implicit inflation assumption of 2.50o/o annually. Proiected salarv increases - This assumption is not applicable since neither the benefit structure nor the valuation methodology 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 10 - 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 City's counsel, the resolution of these matters will not have a material adverse effect on the financial condition of the City. NOTE IT - 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, 2015, will not materially affect the financial condition of the City. Settlement amounts have not exceeded insurance coverage for the current year or the three previous years. Employees' medical insurance fund - The City maintains the employees' medical insurance fund (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 incurred but not reported (IBNRs), The result of the process to estimate the claims liability is not an exact amount, as it depends on many complex factors. 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: 64 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2OI5 EMPLOYEES' MEDICAL INSURANCE FUND Unpaid claims, beginning of fiscal year Incurred claims (including IBNRs) Claim payments Unpaid claims, end of fiscal year 20r1 $ 184,000 3,698,3 84 (3,650r684) $ 231,700 -- zQr4 $ 17 1,000 3,349,042 (3,336,0q 184,000 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 services. The City recognizes revenue for services when billed by the Water Works Board of the City of Prattville. The receivable from the Water Works Board of the City of Prattville for sewer and sanitation collection fees at September 30,2015 was $515,953. The City imposes a 3% license fee on gross water receipts. The 3% fees are collected by the Water Works Board of the City of Prattville from charges to water customers on their monthly water bill and remitted to the City annually on January l. The receivable from the Water Works Board of the City of Prattville for license fees at September 30, 2015 was $138,523. Total collection fees retained by the Water Works Board of the City of Prattville for the services described above were $319,518 for the year ended September 30,2015. On May l, 2006, the City of Prattville, Alabama entered into a lease agreement with the Historic Prattville Redevelopment Authority (HPRA), a component unit, to lease a building on West 4th Street. The term of the lease is five years with quarterly rent payments of $8, I 83. For the fiscal year ended September 30, 2015, the City appropriated $220,678 to the HPRA which includes City's obligation on the quarterly rent payments plus an operating subsidy. As of September 30, 2015, the City owed 515,986 to the HPRA. Subsequent to year end, the City entered into a lease agreement with the HPRA for a building to be used by the police, fire, and information technology divisions, and the Autauga County EMA. The lease agreement is for 30 years with annual payments of $249,000. The City intends to fund the payment through lodging taxes. In March 2016, HPRA issued Series 2016 Bonds in the amount of $4,780,000, secured by the lease from the City, to complete the necessary renovations to the building. As part of the bond issue, a portion of the proceeds were used to redeem the outstanding loan of $ 1,75 5,2 5 0 to Southeastern Commercial Finance. The City appropriated $300,000 to the Library and $161,802 to the Airport Authority, component units, during the fiscal year ended September 30, 2075. As of September 30, 2015, the City owed $14,762 to the Airport Authority. These appropriations made were, or will be used, as operating and capital subsidies. 65 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,2015 NOTE 13 . FLTNDING AGREEMENTS: On September 1, 2006, the City of Prattville, Alabama entered into a funding agreement with the Cooperative District of the City of Prattville (the District), a public corporation, simultaneously with the District's issuance of Limited Obligation Taxable Economic Development Bonds (Bass Pro Project), Series 2006 which were used to finance the acquisition, construction, and installation of a retail shopping center and related improvements in the City of Prattville, Alabama. The funding agreement provides that the City agrees to collect certain taxes on persons, firms, and corporations which sell at retail certain tangible personal property (excluding automotive vehicles) in the area owned by the District. Pursuant to the funding agreement, the City will collect and remit to First Commercial Bank, the trustee of the District's bond indenture, an amount equal to 2.5Yo 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 corurection 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 50Yo of the City's actual receipts from the businesses located within the Project to fund the indebtedness of The Exchange Cooperative District. Payments under the agreement shall be made directly to the Trustee for the account of the District, if requested by the District; otherwise, all payments shall be made to the District or to the District Director. The maximum amount shall be the aggregate amount necessary to amortize $9,000,000 over thirty (30) years at an average yield. The average yield is the annual cost of any credit enhancement or remarketing fees expressed as a percentage, plus the average yield of the District's tax-exempt indebtedness, if any, or if no tax-exempt indebtedness is outstanding, the average yield of all 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 $298,695 during the fiscal year ended September 30, 201 5. The City entered an agreement to support the indebtedness incurred to finance property of the Historic Prattville Redevelopment Authority with an annual allocation in the event that the lease arrangements on the financed property prove not to be financially viable. The initial loan balance on thepropertytotaled5252,200. Theloanbalanceasof September30,2015was$126,775. 66 As of September 30, Commitments Spent-to-date CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2OI5 2015, commitments to contractors on capital projects are as follows: $ 3,366,850 (1,782,324) Remaining commitments $ 1,584,526 -- NOTE 15 - EFFECT OF NEW PRONOUNCEMENTS: Management has not currently determined what, if any, impact implementation of the following statements may have on the financial statements of the City. GASB Statement No. 72, Fair Value Measurement and Application The objective of this Statement is to define fair value, describe how fair value should be measured, what assets and liabilities should be measured at fair value, and describe what information about fair value should be disclosed in the notes to the financial statements. Requirements of this Statement are effective for financial statements whose fiscal year begins after June 15,2015. GASB Statement No. 73, Accounting and Financial Reportingfor Pensions and Related Assets That Are Not Within the Scope of GASB Statements 68, and Amendrnents to Certain Provisions of GASB Statements 67 and 68. The objective of this Statement is to establish requirements for those pensions and pension plans that are not administered through a trust meeting specified criteria. Requirements of the Statement are effective for financial statements whose fiscal year begins after June 15,2015. GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. This Statement replaced GASB Statement No. 43, Financial Reportingfor Postemployment Benefit Plans Other Than Pension Plans. This Statement addresses the financial reports of defined benefit OPEB plans that are administered through trusts that meet specified criteria, as well as requiring more extensive note disclosure and RSI related to the measurement of the OPEB liabilities for which assets have been accumulated. Requirements of this Statement are effective for financial statements whose fiscal year begins after June 15,2016. 67 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2OI5 NOTE 15 - EFFECT OF NEW PRONOUNCEMENTS: (continued) GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. This Statement replaces the current GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment BeneJits Other Than Pensions. This statement requires governments to report a liability on the face of the financial statements for the OPEB that they provide and requires governments in all types of OPEB plans to present more extensive note disclosures and required supplementary information about their OPEB liabilities. Requirements for this Statement are effective for financial statements whose fiscal year begins after June 15, 20t7. GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governmenrs. This Statement reduces the GAAP hierarchy to two categories of authoritative GAAP. Requirements for this Statement are effective for financial statements whose fiscal year begins after June 15, 2015. GASB Statement No. 77, Tax Abatement Disclosures. This statement requires state and local governments, for the first time, to disclose information about tax abatement agreements. It requires governments to disclose information about their own tax abatements separately from information about tax abatements that are entered into by other governments and reduce the reporting govemment's tax revenues. Requirements for this Statement are effective for financial statements whose fiscal year begins after December 15,2015. GASB Statement No. 78, Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans. This Statement amends the scope and applicability of GASB 68 to exclude pensions provided to employees of state or local governmental employers through a cost-sharing multiple-employer defined benefit pension plan that: (l) is not a state or local governmental pension plan; (2) is used to provide defined benefit pensions both to employees of state or local governmental employers and to employees of employers that are not state or local governmental employers; and (3) has no predominant state or local govemmental employer (either individually or collectively with other state or local govemmental employers that provide pensions through the pension plan). This Statement establishes requirements for recognition and measurement of pension expense, expenditures, and liabilities; note disclosures; and required supplementary information for pensions that have the characteristics described above. Requirements for this Statement are effective for financial statements whose fiscal year begins after December 15, 2015. GASB Statement No. 79, Certain External Investment Pools and Pool Participants. This Statement permits qualiffing external investment pools to measure pool investments at amortized cost for financial reporting purposes and provides guidance that will allow many pools to continue to qualiff for amortized cost accounting. Requirements for this Statement are effective for financial statements whose fiscal year begins after June 15, 20t5. 68 CITY OF PRATTVILLE, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 16 - SUBSEQLTENT EVENTS: The City has evaluated subsequent events through March 28,2016 which is the date these financial statements were available to be issued. All subsequent events requiring recognition as of September 30, 2015 have been incorporated into these financial statements. NOTE 17 - CTIANGE IN ACCOI.'NTING PRINCIPLE: In fiscal year 2015, the City adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 71, Pension Transitionfor Contributions Made Subsequent to the Meqsurement Date which improves accounting and financial reporting by state and local governments for pensions. The implementation of Statement No. 68 resulted in the restatement of the beginning net position of the governmental and business-type activities in the government-wide financial statements: GOVERNMENTAL ACTTVITIES BUSINESS - TYPE ACTryITIES Net position at September 30, 2014 Change in reporting for pension benefits Net position at September 30, 2014, restated $ 13,457 ,512 ( I 0, I 56,83 8) $ 7,684,485 ( 1,496,335) 3,300,674 6,1 98,1 50 69 REQUIRED SUPPLEMENTARY INFORMATION CITY OF PRATTVILLE, ALABAMA REQUIRED SUPPLEMENTARY INFORMATION SCTMDULE OF CHANGES IN THE CITY'S NET PENSION LI.ABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS ENDING SEPTEMBER 30 TOTAL PENSION LIABILITY: Service cost Interest Benefit payments, including refunds of employee contributions Net change in total pension liability Total pension liability - beginning Total pension liability - end (a) PLAN FIDUCIARY NET POSITION: Contributions - employer Contributions - member Net investment income Benefit payments, including refunds of employee contributions Transfers among employers Net change in plan fiduciary net position Plan net position - beginning Plan net position - end (b) Net pension liability - ending (a) - (b) Plan fiduciary net position as a percentage of the total pension liability Covered employee payroll Net pension liability as a percentage of covered employee payroll ?0r4 $ l,l7l,24r 3,680,3 l9 . (2,-l7p?39) 2,673,321 47 ,093,106 $ 49,7 66,427 $ 1,15 7 ,444 7 55,114 4,089,7 66 (2,178,239) ( I t!,:04) 3,675,581 34,292,489 $ 37,968,070 $ 11,798,357 7 6.29Yo $ 13,328,666 88.520 Notes to Schedule: l. This schedule is to be built prospectively until it contains ten years of data. 2.The measurement date for the City's net pension liability is September 30, one year prior to the City's fiscal year. 3. Covered employee payroll is the total payroll paid to covered employees during the measurement period. 70 CITY OF PRATTVILLE, ALABAMA REQUIRED SI.JPPLEMENTARY INFORMATION SC}IEDULE OF EMPLOYER CONTRIBUTIONS TO THE PENSION PLAN LAST TEN FISCAL YEARS 20rs. $ 1,179,616 1,258,700 Actuarially determined contribution Contributions in relation to the actuarially determined contribution Contribution excess Covered employee payroll Contributions as a percentage of covered employee payroll $ (79,084) $ l4,l18,970 8.91% Notes to Schedule: L This schedule is to be built prospectively until it contains ten years of data. 2. Actuarially determined contribution rates are calculated as of September 30, two years prior to the end of the fiscal year in which contributions are reported. 3. Contributions for fiscal year 2015 were based on the September 30, 2012 acfiarial valuation. 4. Methods and assumptions used to determine the contribution rates: Actuarial cost method Entry age Amortization method Level percent closed Remaining amortization method 26yeus Asset valuation method Five year smoothed market Inflation 3.00% Salary increases 3.75 - 7.25%" including inflation Investment rate of return 8.00oh, net of pension plan investment expense, 5. Covered employee payroll represents total payroll paid to covered employees for the City's fiscal year ended September 30. 7l CITY OF PRATTVILLE, ALABAMA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS OF THE CITY'S POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS LAST THREE FISCAL YEARS ACTUARIAL ACCRUED ACTUARIAL LIABILITY UNFUNDED ACTUARTAL VALUATION DATE September 3 0,2012 September 3 0,2013 September 3 0,2014 VALUE OF (AAL)A,AT FUNDED COVERED COVERED ASSETS I.JNITCREDIT (UAAL) RATIO PAYROLL PAYROLL (a) (b) (b-a) (a/b) (c) ((b-a)/c) 0,0% $13,570,036 0,0% 13,721,319 0,lYo 14,118,970 UMI ASA PERCENTAGE OF 28.360/o 29.17% 28.t2% 3,848,992 $ 3,848,992 4,002,952 4,002,952 3,97 0,787 3,97 0,787 72 OTHER SUPPLEMENTARY INFORMATION CITY OF PRATTVILLE, ALABAMA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FLIND BALANCES BUDGET AND ACTUAL CAPITAL PROJECTS FLTND FOR THE YEAR ENDED SEPTEMBER 30, 2AI5 ACTUAL AMOLINTS VARIANCE BUDGETED AMOLINTS BUDGETARY WITH ORIGINAL FINAL BASIS BUDGET REVENUES: Lodging taxes Intergovernmental revenues Interest income Total revenues E)GENDITURES: Current operations: Public works Total expenditures EXCESS (DEFICIT) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Total other financing sources EXCESS (DEFICIT) OF REVENUES AND OTHER FINANCING USES OVER E)GENDITURES FUND BALANCE AT BEGINNING OF YEAR FLIND BALANCE AT END OF YEAR $ 272,500 $ 272,500 2,090,000 2,090,000 ?3-,q2,,59.0, 2,?62;9-0 ., ?,84.1,.ff)5 2,844,695 -2,844,695 2,844,695 (482,195) (482,195)291,478 773,673 1,972,338 307,624 1,659,978 4,736 35,124 ($a,022) (39_0.:162\ , . __l,l 63,9J5, . I , 163,83 5 1,680,860 1,680,860 2,083,730 2,083,730 $ 38211?5\ $ (1p_z'l2s).2,37 5,208 I ,509,725 3,884,933 , .. 23093'71q_ ,2,9p1,730 - $ 2,857,403 - 73 CIry OF PRATTVILLE, ALABAMA STATEMENT OF REVENUES, EXPENDITI.]RES, AND CHANGES IN FI.]ND BALANCES BUDGETAND ACTUAL DEBT SERVICE FI]ND FOR THE YEAR ENDED SEPTEMBER 30, 2OI5 BUDGETED AMOLINTS ACTUAL AMOLTNTS VARIANCE BUDGETARY WITH BASIS BUDGETORIGINAL FINAL REVENUES: Interest income Total revenues EXPENDITURES: Debt service: Principal payments Interest payments Bond issue costs Total expenditures EXCESS (DEFICIT) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Issuance of refunding warrants Payment to refunded bonds escrow agent Bond premium Total other financing sources EXCESS (DEFICIT) OF REVENUES AND OTHER FINANCING USES OVER EXPENDITURES FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR Q39,2:2 6,239,522_ (6,239,522) (6,239,522) 104 $104 104 104 $ 4,380,000 1,859,522 $ 4,380,000 1,859,522 4,3 80,000 1,173,951 139,216 685,571 (lJer2ut). 546,3J5 546,459 5,553,847 12,280,000 (13,445,879) -., ,1,10I,.095 5,693,063 5,693,167 (5,693,063) 5,553,847 12,280,000 (13,445,879) 1,305,095 5.693.063 $ (6,239,522\ $ (6,239,522\_8 6,2,32,522 74 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 finangial statements, note disclosures, and required supplementary information says about the City's overall financial health. CONTENTS PAGE Financial trends These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue capacity These schedules contain information to help the reader assess the factors affecting the City's ability to generate its sales taxes. Debt capacity These schedules present information to help the reader assess the affordability 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. 75 80 84 88 9t Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports. THIS PAGE INTENTIONALLY LEFT BLANK GOVERNMENTAL ACTI VITIES : Net investment in capital assets Restricted Unrestricted BUS INES S-TYPE ACTIVTTIES : Net investment in capital assets Unrestricted PRIMARY GOVERNMENT: Net investment in capital assets Restricted d Unrestricted rohrs(Er@rtrdiviri6dpdrtu l05,7ll,2i7) t 2,06.rt9 i (rlt7,l3, i02,691,r9, ! 07:0!,700) t (!,,llaJlo) I (39rt25!), 6,101349 t13J13,966 1l2,,37tt6 CITY OF PRATTVILLE, ALABAMA SCHEDI.'LE I NET POSMON BY COMPONENT (accrual basis of accounting) 20M 20(J7 2008 2009 2010 20tt 2012 2013 2014 2015 $ 1,747,516 523,286,126 526,2s2,s99 5279t3,767 $28,197,019 $33,144,191 $31,400291 i36,02r,544 $36,578,653 $39,468,399t2,0s3,s11 6911,387 6238,962 3,76t,s98 8s1,251 653A78 803,180 901,190 975A67 t,s68,412 (29,514,316\ (28,162924) (42378,700) (44,366,960\ (46,2s6,970\ (42282)79) (35,254,724) (30,21s,385) (24,r40,t54) (28,898,955) s t,747,516 $23,286,126 $26,252,599 $27913,767 $28,197,019 $33,144,191 $35,151,443 $40,257,643 $40,9812% $45,852,545 12,0s3,s13 6,911)87 6238962 3,761,598 851251 653,478 803,180 901,190 975,467 t,s684t2 (29,514,316\ (28,162924\ (42,378,700) (44,366,960) (46,2s6,970') (42282,379\ (33,787,690\ (27,768,970\ (20,858312) (28,060,530) $ 3,751,152 $ 4,236,099 $ 4,402,643 $ 6,384,1461,467,034 2,446,415 3,281,842 838,425 Td' haidsry!.riun4 d Do.irir a - t - I . I - t - , - I 5rll'136 a 6na5r4 ! 1tu.aas a 72r257t To.J0rimeyFlq,l6diviti..traqxiIi@ t(lJjl32!n I 2.03a539 i r9lrr.l39) ioz-69r.s0s) i fi?:oa.7mt i t&alljto a al669r3 a trj!p.t63 t2t-093Jfl tl9j60.a?7 N,,t, p.loo"Fi.romrr u*-r haEtsriElyrciirld 6rln irp.c ofstltdqrN.. 65 oftbcm6bl aoldirg stud&tlB6d:nN P@tato R.pottd u ltu @ttl bobXtiq. Ncj Pqiod! priqt' 20lt lrE mrha EtldiEryi.tt&d 6rdE imF.rof Sri.d.rnlro 68 of li. Goc@.dlAtudng St6ilrikB(zd: A@sttqad Fbwtzt Prpdnqft* PN*,$ 6 tu d. iE{l6/t of Sin@.dNo. 7r of6. Gw.lleftr Asudils shdu& Bcd: Pmrd, ?Mdlir tn catihriN Lhn &nt 4@bth. i,tuwt tun. \to\ GOVERNMENTAL ACTIVITIES E)(PENSES. Governmental activities : General government Public safety Public works Cultural and recreational Interest on long-term debt Total governmental activities expens€s PROGRAM REVENUES: Governmental activities : Charges for services: General government Public safety Public works Cultural and recreational Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Total primary government net expense GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental activities : Taxes: Sales taxes Real and personal prop€rty taxes Motor fuel taxes I"odging taxes Local gasoline taxes Alcoholic beverage taxes Rental taxes Tobacco taxes Excise taxes lntergovernmortal Investment earnings Miscellaneous r€venue Gain (loss) on sale of capital assets Transfers Total governmental activities general revenues and other changes in net position Total governmental activities change in net position 1r,876,995 12,553,@9 13,188,413 1322.t,492 14,139,501 16,69r,014 19,736,422 m,6O2498t,7 ,544 2,065,975 2,273,7A2 2,41,450 2,500,129 2,545,75t 2,688,1n 2,651,051242,416 243,557 239,897 238,361 240,547 239,6t61,075,989 I,184,254 t,t85,871 t,0l2,l04 1,063,067 1,090,108 1,025,328 r,201,424912030 822,558 874,676 913,279 89,562 886,135 898,009 906,939 303,214 277,2@ 279A93 2a\722 2a6,491 291,914 295,533 311,045 277,380 293,337 22A,741 241,515 239,858 300,7s0 326,620 3t5,l9r737,247 137,009 135,752 147,4N 149,222 155,641 155,396 142,723146,969 97,585 72,8t 67,O6t t8,vt2 16,647 18,749 70,E1720,228 t7,753 9,@2 9,159 161,534 153,2,10 286,883 182,995 644,767 232,387 39,410 42,318 32,62t 26,685 69,46i1742,OM 530,5i14 E7ZE96 386 661 206,E45 226,695 476A71 625,501 CITY OF PRATTVILLE, ALABAMA SCHEDULE 2 CHANGES TN NET POSITION (accrual basis of accounting) 2A06 2007 2008 2@9 2010 201 I 20t2 20t3 2014 $ 4,A61,U4 t5,350,008 $ 6,76s,36t $8,093,740 59,124,172 $6,984,318 S6,868,707 $6,649,800 57,250,279 S7,6t9,63811,il2,133 11,610,724 13,028,713 l3,il0l,4l7 14,7D,a27 13,369,083 12,91t,701 l4,ll5,9ll 14,0E1,661 15,125,945 25,283,479 6,548,115 20,541,104 8,005,500 8,755,W2 7,235,4U 3,518,015 3,703,76t 5,180,698 6,019,335 2,098,474 2,381,700 2,502,375 2,549180 2,449,t84 2,080,642 1,76,958 1,830,376 \940,775 2,021,877 1,188,315 2,047.213 2,327,227 2,445,024 2,585,660 2,i160,545 2,195,048 1,971,907 t,727,2s2 9t7,762 45,073,95 27,937,7@ 45,t64,7A0 34,495,t61 37,634,635 32,t29,992 27,267,429 28,n\755 30,233,645 31,7U558 3,939,tt7 4654,085 5,183,865 4901,8t9 4,874,993 4,990,894 5,35t,94O 5,525,U7 5,499,156 5,973,9431,417,9@ 1,464,651 1,781,289 1,201,853 t,287,322 1,553,044 t,5t7,963 1,66r,549 t,7@,921 l,4ll,l0? 3,2t9,938 3, 9,798 3,930,26 3,924,$5 4,4D,AA9 5,400,680 26/,744226,@ 303,580 318,697 261,429 265,044 238,279 234,899 209,031 25t,562 257,5481,015,035 385,083 460,308 3t3,@2 26,761 193,703 tl2,Ol2 224,W 71,025 t7,am _ 1,245,578 1,975,504 2,037,803 2,122.469 5,U7,250 2,658,548 4,641,690 1,417,033 3,953,219 9,8t8,819 12,022,775 t3,6/i9,869 12,U4,941 13,169,478 18,223,850 l0,t4,l06 t2,26Lrn E,948,697 11,613,637 (35,254,826) (15,914,985) (31,514,911) (21,850.220) (24,465,157) (13,906.142) (17,t27,323) (16,009.578) (2t,2U,948\ (2O,O9O,92I\ 21,221,765 22,112,8312,690,055 2,614,090 1,u7,626 1,804,447 941,261 970,304408,900 273,579346,089 377,9&134,656 136,220 65,949 79,780 164,964 359,099 54,747 62,586 460,W2 36,300 (3,374,093) (2oo,ooo) 17,716,013 18,868,208 19,593,183 t9,045,764 t9,948,052 22"63qt32 25,9ts4,a8 2i,696-656 28,035,111 28,928,103 _!__i7.s3qq1_uesg?zt_ _!_l]l,2?t1?9l -!l?.!913:gl l_(l!.!Lt9!I l_!J4pa_ l_!,99789_ _!g6E?.04_ _!.__9tr9J!1_ -!_-!.q]Je- CITY OF PRATTVTLLE, ALABAMA SCHEDULE 2 CHANGES IN NET POSITION (accrual basis of accounting) 2013 20t5 $ 2,069,3lg $ 2,230,497 $ 2,463,315 $ 2,539,325 2,515,354 2,770,077 2,763,675 2,852,233 4,5l/,672 5,W,574 5,226,990 5,391,558 BUSINES S.TYPE ACTIVITIES : E)GENSES: Sanitation Wastewater Total business-type activities expenses REVENUES. Charges for services: Sanitation Wastewater Capital grants and contributions: Wastewater Total business-type activities revenues Total business-t1?e activities net program revenue OTHER CHANGES IN NET ASSETS: Miscellaneous revenue Gain (loss) on sale of capital assets Transfers Total business-type activities change in net position Total primary government change in net position Note: Busirc$-typc aciivitics priffto 2012 w@ a@ulrtrd for s gorcmmatd aclivitiG. Note: Pqiodspriorto2Ol3harerctbmretroactivelyrErdadforlhcitrlpacrofstatmfltNo.65ofthcGovmotalA@utingStandedsB@d: I&ms Ppiously Reported I Assts ed Liabiliti6. Not!: Pqiodsprioto2015havcnotbenrctroartivclyrcstat€dfortheimpactofstatmtNo.6toftbcGovmcntalAruming Stududs B@d:lcca@riaf @td Fiwial Regfling{q Pewiffi c forthe impacr of Stat€mnt No- ?l of dp Govmantal Amunting St rdards Boad: Peroid Tt@itiNl@ CmiibutiN M& S{bequed ro ilp tleMwnl Me . 2,392,771 2,44'1,844 3,874,24E 3,851,668 2,452,098 2,457,4003,729,267 3,911,891 160,324 30,401 _ 6.129,913 6,181,365 6,369,291 _ 1,329,339 954.375 977,733 .-.I{ 1,422 3,M8 5,055 4,382 42.306 $ - $ - $ - $ - $ - $ - $ - $1,53e787 t 959,430 $1,024,421 s (17,538,813) $ 2,953,223 $ (11,921,728) $(2,8s,456) $(4,517,105) $ 8,723,9{ $ 8,807,550 t12,219,865 S 7,709,593 S q861,603 CITY OF PRATTVII.I P, ALABAIVIA SCHEDULE 3 FUND BALANCES OF GOVERNMENTAL FUNDS (modified accrual basis of accounting) 2006 $ 2,031,204 (1,370,935) 2007 $ 944,030 (545,U2) $ 1,181,267 (744,577) $ 1,043,077 (316,517\ 2010 $ 821,293 (2,313,284) 20tl $ 159,850 653,47 8 12,185 172,653 550,285 $ 1,548,451 2012 $ 98,908 204,694 2,567,260 1,235,310 1,099,168 _t_s,20s319_ 2013 $ 102,322 280,424 3,381,590 261,383 3,053,554 _$ ?,0?9273_ 20t4 $ 114,704 348,192 4,555,104 468,838 5,643,011 $ t t,t?9,849 20ts $ 136,566 517,624 4,567,t99 792,720 6,555,450 $ 12,569,549 2008 2009 \roo GENERAL FUND: Reserved Unreserved Nonspendable Restricted Committed Assigned Unassigned Total general fund ALL OTIfiR GOVERNMENTAL FUNDS: Reserved, reported in: Capital projects fund Reserved, reported in: Debt service fund Unreserved, reported in: Special revenue funds Unreserved, reported in: Debt service fund Unreserved, reported in: Capital projects fund Nonspendable Restricted Committed Assigned Unassigned s 660269 $ 6,176,905 2,654,17 5 326,192 258,009 2,964,424 $ 398,588 $ 2,607,652 1,060,466 511,735 255,061 2,445,873 _$__136,6e0_ $ 2,510,352 1,192,527 63,082 (61,295) 2,471,886 _$ ?26560 $ 2,371,105 858,397 373,568 169,558 25,258 _q_( 1,491,99!- $ 618,868 80,178 566,257 (357,885) $ 480,627 $ 598,486 $ 620,766 20,573 5032e0 I $ 2,299 670,828 305,771 801,506 $ 377 1,050,795 601,804 2,554,059 T.EI.U oesG'tllldl nrrd. a 12J79,705 i 6Ia0.737 t 6.176J, 13.797135 I t07..tl3 t a&.@7 I J9&a35 I r.114610 t 1.730.404 t 4rOTIrt lfta: Pdi.dr Fi& ro 201r te !d ha EMird, Bri.d 61 6. i4-r.fsrtud Ld I'l ofrb Geamad A@ldi4 shddL add: F'ttd Bdam Rcaoainsdrfu CMI F.i.l rtD. DafrruN - CTTY OF PRATTVILLE, AI ARAIVI{ SCTIEDULE 4 CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (modified accrual basis of accounting) 2007 2008 2009 2010 20tt 20t2 20t3 2014 2015 $16,770,7U 9t7,675,tM $18,478,809 $18,610,534 $19,537,355 $22217,576 $25,144,834 $26201,688 527,456,30t $28,369,2153,939,277 4,654,085 5,183,865 4,901,819 4,874,993 4,990,894 5,351,940 5,52s,U7 5,499,t56 s,973943780,502 222,043 302,n8 343,156 2t7,70t 153,240 548280 I,103,096 1,428,058 2220,039 4,5ll,611 5,319,420 s,493,106 4,905,6s2 5,564,563 6,655,705 1223,888 t,284,750 1,392,556 t977,656352,896 418,609 537,086 486,065 4N,692 536,298 532,321 630,728 614,7t4 590,999 644,772 232,387 39,410 44,844 32,621 26,685 67,371 164,250 62,162t,t70,94o 849,160 1,197,161 1,109,616 t,099,914 908,449 1967962 t,O3O,3s5 356,9U 422,314 27,526,010 29,783,233 31,424,532 30,396,252 31,740,062 35,494,783 33,895,910 35,843,835 36,912,019 38,716,328 2006. {\o REVENUES: Ta:res Licenses and permits Intergove rnmental revenue s Charges and fees for services Fines and forfeitures Interest Miscellaneous Total revenues E)(PENDITURES: Unreserved, reported in: Current: General governmental Public safety Public works Cultural and recreation Capital outlay Debt service: Principal payments lnterest and fscal charges Bond issuance costs Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Insurance proceeds Transfers in Transfers out Issuance of bonds Issuance of refunding bonds lssuance of notes payable Proceeds from capital lease Payment to refunded bonds escrow agent Sale of capital assets Bond premium (discount) Total other financing sources (uses) Net change in fund balance 4,825,371 5 ,261,945 6,290,215 6,319,533 11,141,574 11,153,949 12,746,727 12,9g9,65g24,664,571 5,588,300 18,984,015 7,182,3001,796,512 2,005,573 2,152,013 2,488,3322493,938 8,505,999 3,756,955 2,811,090 7,537,961 5,973,871 5,757,564 5,039,571 5,931,830 5,875,1',70 14,023,058 12,712,387 12,346,346 11,852,136 11,731,292 12,413,1938,007,685 6,519,457 3,332.,207 3,210,261 4,184,523 6,068,1302,371,770 1,749,355 1A34,3O9 1,436,057 1,565,707 t,627,6483,290,520 478,136 379,900 1,769,U5 1,709,945 1,267,128 tA4s,9t2 1,816,556 2,331,364 9,073,190 4970296 4,Ott,tzt 2,94t,830 4,548J21 2,158,816 2430,712 2,465,127 2,492,66 2,230996 2,16s,133 1,750,499 t,t92,t7t 2,599,M5 650,342 1,418,665 1,917,209 741,010 _ 366450 _ 2t1ltt __ 83464 93,782 139,216 48,912,363 35,85r,640 47,891,103 36,037,181 402U,896 38,999,062 29,551,618 29,567,388 29,909,408 33,131,377 (21,386,353) (6,068,407) (16$66,57r'l (5,640,929) (8,504,834) (3,504,279) 4,344,292 6276,447 1,OO2,6tt s,584,95t 322s4,t24 4,979,825 16,586,498 7276,949 3,t49,228 5,525,970 4,610,138 s215,833(322s4,1z.) (4,979,82s) (16,s86,498) (7,276,949) (3,t49,228) (s,s2s,970) (4,699,055) (9,361,585) 30y'70,000 15300,000 1,621,373 2,61o,0ffi 6,315,000 9,815,000 625p00 136,099 1,000,000 300,000 5,637,303 307,808 451,767 930,760 260,000(6322,e26) (e,434,61e) 37,6854,896,087 7,642,691 (7 ,064,4@) (9,884,991) 9,955,000 12,280,000 (10,067,843) (13,445,879) 46,779 480:746 _ (87128) _ 173341 __ (90,999) 2O6,62s rS0sggs31,57s,746 307,808 15,80q438 3,552,133 3J95,815 5,637,303 (88,917) (3,856,370) (2,074,595) (2918,620\ $ 1.0,189,393 $ (5,?60,59' $ (666,133) $ (2,088,190 $ (5,t09,0t9)$ 2,133,024 $ 4255,375 $ 2A20977 $ 4,928,016 $ 3,566,331 Debt service as a percentage of noncapital expenditun 8.6OYo 12.zOYo 9.OOo/"12.7$Yo 13.57Yo 30.02o/o 2l.6OYo 22.52o/o 16.97Yo 18.45Yo $ 44,070,516 $ 44,057,97379,119,351 75,930,66278,357,966 74,734,129 63,443,394 62,944,0975,138,448 6,693,24644,491,167 36,036,047 9,765,852 10,794,193 CITY OF PRATTVILLE, AT ARAIVL{ SCHEDULE 5 NET TN'i{BLE SALES BY CATEGORY 49,891,510$61,766,373$72,439,792$91,049,63970,156,573 73,331,244 71,839,635 77,704,21165,384,586 46,030,674 58,984,572 63,159,679 1,225,203 1,813,517 1,512,332 1,512,272 69,407,86051,658,420 53,838,468 62,999,974 13,638,375 21,877,677 20,566,253 17,969,45948,684,662 39,460,896 39,128,465 41,692,20221,761,093 22,983,A26 22,447,212 21,425,351 20t2 $ 78,698,228 76,109,625 62,669,770 1,855,136 72,159,819 17,145,730 40,414,350 15,120,821 253,682,787 2015 $ 78,722A49 $ 78,062A72 $ 81,324,939 77,168,242 80,331,913 83,355,426 68,449,774 72,277,636 97,027,8862,025,097 16,665,875 6A77,69383,073,365 99,976,397 104,080,55816,256,815 15,752,779 16,854,83042,467,529 42,313,771 45,417,30519,967,285 17,757,144 17,840,129 259,689,798 256,77 5,123 266,688,466 Apparel stores Food stores Automotive Manufacturing machine Restaurants Home furnishings and appliances Building materials Service stations Other retail stores Totals City direct sales ta:< rate Source: Crty's Finance Department. 118,363,518 t49,5U,076 256,892,888 244,770,686 262,697,325 266,079,295 $ u2,7s0,2r2 $ 460,s24A22 S 579,293,310 S s65,872,56t $ 612,503J50 $ 639,889,966 $ 617,855,266 i 647,820,354 $ 679,913,110 $ 719967,232 --- - 2.50% 2.50%2.50o/"2.s0%250Yo 3.50%3.50%3.50o/o 3.s0%3.50% ooo 20r3 CITY OF PRATTVILLE, ALABAMA SCHEDULE 6 SALES TAX REVENUE PAYERS BY CATEGORY FISCAL YEARS 2006 THROUGH 2OI5 2014 2015 NUMBER OF FILERS PERCENTAGE OFTAX TOTALTAXLIABILITY LIABILITY PERCENT OF TAX REMITTED NUMBER BYTOP TEN OF TA)(PAYERS FILERS PERCENTAGE OFTAX TOTALTAXLIABILITY LIABILITY PERCENT OF TAX REMITTED NUMBER BYTOP TEN OF TA)(PAYERS FILERS PERCENTAGE PERCENT OFOF TAX REMITTEDTAX TOTALTAX BY TOP TENLIABILITY LIABILITY TNGAYERS Apparel stores Food stores Automotive Machine Restaurants Home furnishings and appliances Building materials Service stations Other retail stores Totals 22 $ 2,755,2868 2,700,88823 342,24922 15,18885 2,907,56912 56g,9898 1,486,364 22 $ 2,846,3738 2,917,440 t2.89% 7.70yot3.21% tt.70% 2.20% 0.22o/o 16.50o/o2.67% t.80%7.20% 6.40% 2.83%42.28% 8.25o/o44.03% l-136 $ 20.564.530 96.000/o 2010 l,l8l 8,987,129 40.71% _JN__$21J1,11!_ gs.se% 485,13922 48,583104 3,642,82012 589,9198 1,589,60625 624,405L0.50o/o 1,261 9,334,096 ____Il!g_ _s2zgjJgl_ 100.00% 20t2 25 698,855 t2.48% 12.23% l.ss% 0.07% 13.t7% 2580h 6.73% 3.l7Yo 8.90% rt.s0% 2.00% 6.30% 9.t0% 12.37% 12.73o/o l.64Yo 0.s7% ts.8s% 2.s0% 6.?t% 2.81o/o 5.49/o tr.62% t.8lo/o 6.06% 22 s 2,732,1878 2,811,61722 361,38823 124,994107 3,499,174 ll 551,3478 1,480,98225 621,500 20tt @ NUMBER OF FILERS PERCENTAGE OFTAX TOTALTAXLIABILITY LIABILITY PERCENT OF TAX REMITTED NUMBER BYTOP TEN OF TA)(PAYERS FILERS PERCENTAGE OFTAX TOTALTAXLIABILITY LIABILITY PERCENT OF TAX REMITTED NUMBER BYTOP TEN OF TA)GAYERS FILERS PERCENTAGE PERCENT OFOF TAX REMITTEDTAX TOTALTAX BYTOPTENLIABILITY LTABILITY TA>PAYERS Apparel stores Food stores Automotive Machine Restaurants Home furnishings and appliances Building materials Service stations Other retail stores Totals 17 s 1,810,9708 1,795,99127 294,923 25 11,342 964 6,565,423 46.55% _],M_ _$llJgltr_ 100.00% 9 .55% 918 7 ,550,736 45 .35yo 1.138 $ 16.650.542 100.00% 13,91381 2,525,59412 600,1018 1,414,50225 529,229 931 8,878,898 45.08/0 t.r29 $ 19-693.826 100.00% 12.84Yo t2.73% 2.09% 0.08% It.t5% 3.65% 694% 398% 8.05% ll.83yo 2.44o/o 6.22% t3.8r% 13.24o/o t.90% 0.O1Yo I 1.83% 3.0s% 7.100h 3.650/0 7.69Yo ll.97Yo 2.18o/o 6.20% 9.22o/o 17 $ 2,300,0088 22O5,O7227 315,798 25 11,34295 1,969,@012 507,0958 1,182,84828 608,003 2l 20 $ 2,754,4388 2,663,80223 313,349 13.99/o 10.30%13.53% l2.l4o/o t.59% 0.07Y" 12.82%3.05y" 2.23%7.1806 6.4l%0 2.690/0 6.t5% 90 1,572,22212 514,1568 978,21229 561,180 2007 CITY OF PRATTVILLE, ALABAIW{ SCHEDULE 6 SALES TAX REVENUE PAYERS BY CATEGORY FISCAL YEARS 2006 THROUGH 2OI5 2008 PERCENTAGE PERCENT OFOF TAX REMITTED NUMBER PERCENTAGE PERCENT OF OF TAX REMITTED NUMBER PERCENTAGE PERCENT OFOF TAX REMITTED @N) NUMBEROF TAX TOTALTAX BYTOPTEN OF TAX TOTALTAX BYTOPTEN OF TAX TOTALTAX BYTOPTENFILERS LIABILITY LIABILITY TA)GAYERS FILERS LI.ABILITY LIABILITY TA)(PAYERS FILERS LIABILITY LTABILITY TA)(PAYERS r$&didr r, a l.l0l,{49 to9ra !.lota ta t t41.aa 9ta% 6@x la t 1J44,19 tt.1nx at'%Fo.d@ 1 l$95,151 l*92?{ r1.71ra 7 1:r5t,9ta t 3r% t1X% ! rr332!t l3try 1223*A!MiE X 3f157t 3.13% 1.63* 25 176913 2.a9'i |l5'4 U 2-3ol ljllrlL.tiE l7 I,109 22 t3Iot O.l0t6R.orrrr 15 tt7t,l(a t5.63% 3a r,29l,a5r 9.n* a, 1,3,t5,s, toNr.Hcididiqg.lndiB l0 16?131 167 12 :1110,59 2.5rX l.35ta 12 ,$t12 a.l'!i 23a%A{iXiiAErE ! 3 900,901 299y. 1)tl% I l2l7,tl7 925}a 7.90X A 9U5D TtaX 671%s.uE did a @fi' 2t9x u 54w a.ta.a ,o 571t15 lit%oirEtlrd'i[- -J!4___]14@________!.4 ro.e3% ___lJ:9____.9J2EE_____-.j!!q! D.$x ____2____S!2p____!&- 10.70* T.th lr23 I l0.0ll.a2l 100.00t( IJ45 I r3.r5:tro0 roor{ta t.tt7 a tt.l9t.,t6t tm.oota PERCENTAGE PERCENTOFNUMBER OF TAX REMITTEDOF TAX TOTALTAX BYTOP TENFILERS LIABILITY LIABILITY TA)PAYERS Apparel stores 9 $ 1,101,763 ll.6o0/o lo.3lo/o Food stores 6 1,977,984 20.82% 20.55o/oAutomotiv€ 30 391,790 4.l2yo l.sly" lv{achineRcstau:atrts 69 1,586,085 16.690/o Home frunishings md appliances l0 128,461 l35yo Building matoials 6 1,112,279 ll.7lo/o l0.7lo/o Service stations 30 244,146 2.57o/o Othtrrctail stores 955 2959,088 3l.l4o/o 11.80% rotals ___t!1!_ _!__2J9lg_ _100.00%_ Not€: Due to coBfidmtiality issues, the nanes of the tm lnge$ rcvenue pay€rs are not available- The etegoric prcsmted are inlended to provide alternative information regarding the sources ofthe Ciys revenue. 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 2006 2007 2008 2009 2010 20tt 2012 2013 2014 2015 FISCAL YEAR 2.sYo 2.50 2.50h 2.50 2.50 3.50 3.5Yo 3.50 3.5Yo 3.50 CITY DIRECT RATE 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% ELMORE COLTNTY DISTRICT TAX 4.000 4.000 4.000 4.00Yo 4.00Yo 4,00Yo 4.000 4.00Yo 4.000 4.00Yo STATE OF ALABAMA 8.5Y0 8.50h 8.50h 8.s%o 9,50h 9.50 9.504 9.5Yo 9.sYo 9.50 TOTAL SALES TAX 2006 2007 2008 2009 2010 20tt 20t2 2013 20t4 20t5 2.SYo 2.50 2.50 2.50 3.50 3,sYo 3.5Yo 3.50 3,50 3.5Yo 4.00Yo 4.000h 4.000h 4.00Yo 4,000h 4.000 4.000h 4.000 4.000h 4.00Yo 8.5Y0 8.5Yo 8.5yo 8.sYo 9.50 g.sYo 9.50 9.50h 9.5Y0 9.sYo t% t% t% t% t% t% t% t% IY t% r% t% t% t% t% t% t% t% t% t% Sources: City Finance Department, Autauga County Revenue County Department of Finance. Commissioner's Office, and Elmore 83 CITY OF PRATTVILLE, ALABAMA SCHEDULE 8 RATIOS OF OUTSTANDING DEBT BY TYPE GOVERNMENTAL ACT IVIT IES FISCAL YEAR GENERAL OBLIGATION BONDS TERM LOANI LIMITED OBLIGATION WARRANT $ 1,594,489 1,594,489 1,594,489 1,594,489 1,594,489 1,580,85 [ 1,567,775 1,558,312 1,546,258 BUS INESS-TYPE ACTI VIT IES CAPITAL LEASE TOTAL OUTSTANDING DEBT PERCENTAGE OF TAXABLE SALES O) 10.08% 9.80Yo 10.26% 10.81% 10.18% 9.20yo 8.35o/o 7.s0yo 6.760h 5.86yo PERCENTAGE OF TAXABLE SALES O) 0.44o/o 0.48o/" 0.40% 0.15o/o PERCENTAGE OF TAXABLE SALES (b) 10.08% 9.80% t0.26% 10.81% 10. l8% 9.20o/o 8.79o/o 7.98yo 7.16%0 6.01o/o PERCENTAGE PER OF PERSONAL CAPITA INCoME (a) 2006 2007 2008 2009 2010 201 I 20t2 20t3 2A,4 20t5 FISCAL YEAR 44,352,609 43,102,043 56,994,583 57,099,163 57,699,065 54,755,183 49,212,046 47,027,064 44,415,437 40,610,621 99,344 1,025,708 1,803,956 1,755,709 701,035 294,946 437,071 761,348 1,445,462 1,239,844 748,347 88,562 44,647,555 45,133,603 59,449,764 61,164,822 62,337,354 58,853,728 51,582,494 48,594,839 45,973,749 42,156,879 3.04o/" 2.90o/o 3.62% 3.68Yo 3.71o/o 3.26Yo 2.73o/o 2.57o/o 2.43o/o rt 909.23 906 l,l8l 1,205 1,142 1,065 929 880 832 * GENERAL OBLIGATION BONDS TERM LOA}I CAPITAL LEASE TOTAL OUTSTA}.IDING DEBT PERCENTAGE PER OF PERSONAL CAPITA INCOME (a) (a) ooS LIMITED OBLIGATION WARRANT PRIMARY GOVERNMENT 2012 2013 20t4 20ts FISCAL YEAR 2,490,000 3,095,767 2,695,120 1,056,794 238,074 9,334 2,728,074 3,105,101 2,695,120 1,056,794 0.l4Yo O.160/" O.l4o/o :t 49 56 49 :t GENERAL OBLIGATION BONDS TERM LOAI\T LIMITED OBLIGATION WAIUL{NT CAPITAL LEA.SE TOTAL OUTSTAI{DING DEBT PERCENTAGE PER OF PERSONAL CAPITA INCOME (a) (a) 2006 2007 2008 2009 2010 20tl 2012 2013 2At4 2015 44,352,609 43,102,043 56,994,583 57,099,163 57,699,065 54,755,183 51,702,046 50,L22,831 47,110,557 4L,667,415 99,344 1,025,708 1,803,956 1,755,709 701,035 1,594,489 1,594,489 1,594,489 1,594,489 1,594,489 1,580,851 1,,567,775 1,558,312 1,546,258 294,946 437,071 761,348 1,445,462 1,239,844 748,347 326,636 9,334 3.O4Yo 2.90o/o 3.620/o 3.68Yo 3.7lYo 3.260/0 2.87% 2.74o/o 2.58o/o* 909 906 1,181 L,205 L,142 1,065 978 931 877 * 44,647,555 45,133,603 59,449,764 61,164,822 62,337,354 58,853,728 54,310,568 51,699,940 48,668,869 43,213,673 Notes: Details regarding tre City's outstanding debt can be found in the notes to the financial stateNnents. (a) See the Schedule of Demographics and Economic Statistics on page 88 for p€Bonal income and population data- (b) See page 80 for net tarable sales. + Information not available. GENERAL FISCAL OBLIGATION YEAR BONDS CITY OF PRATTVILLE, ALABAMA SCHEDULE 9 RATIOS OFNET GENERAL BONDED DEBT OUTSTANDING LESS: AMOUNTS AVAILABLE DEBT SERVICE FUND PERCENTAGE OF PER NET TAXABLE CAPITA SALP,S (a) .--E) , TOTAL 2006 2007 2008 2009 2010 20tt 2012 20t3 2014 20ts $ 44,352,609 43,102,043 56,994,5 g3 57,099,163 57,699,065 54,7 55,1 g3 51,702,046 50, 122,93 I 47 ,l 10,557 41,667 ,415 2,912,184 1,3 1 5,527 1,13 1,232 1,027,955 90,1 7g 5 t0 203,627 7 7 $ + 1,440,425 41,786,516 55,863,351 56,071,208 57 ,61 8,887 54,7 55,178 51,702,036 49,919,204 47 ,l 10,550 41,667,408 9.360 $ 9.070 9.6404 991% 9.41% 8.560h 8,37Yo 7.',|1% 6.93Yo 5,790 844 839 1,109 1,105 1,056 991 931 904 8s0 t Notes: Details regarding the City's outstanding debt can be found in the notes to the financial stateme (a) See page 80 for net taxable sales. (b) See the Schedule of Demographics and Economic Statistics on page 88 for population data. * lnformation not available. 85 CITY OF PRATTVILLE, ALABAMA SCHEDULE IO DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF SEPTEMBER 30, 2OI5 GOVERNMENTAL UNIT DEBT OUTSTANDING ESTIMATED PERCENTAGE APPLICABLE (a) ESTIMATED SHARE OF DIRECT AND OVERLAPPING 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 $ 14,917,503 32,543,626 6,691,843 54,622,000 77,00o/o $ 11,486,477 77 ,oooh 25,058,592 7.00o/o 468,429 7 ,00o/o 3,823,540 40,837,03 8 42,156,879 82,993,917 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 governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping govemments that is borne by the residents and businesses of the City of Prattuille, Alabama. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden bome by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping govemment. (a) The percentage 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. 86 oo{ CIIY OF PRArIVILIX. AI-ABAMA SCHEDULE lt LBGAL DEBI MARGN II{I@-TION M N. @l 2@ 2010 20ll ulz 20.u 20u NE x.ts6.drdDofiirrt'LF.laq J2q1ll29 J 2929o,$OO N $a28.42 ar4a3996?0 t 353,5r.120 t353.46r2@ t356,934J,O 1352,Ol0,n0 , !4&362,a80 !353,317,560 D.trhn sz9az25r s3,531,5, 6t,654,M @:t19 11f25,161 7059224, 71JE5,353 70,a06,lrta 69,tt2,196 71J61,512 rordladA(@ri.H.r.,i[n 9,1s3937 9,a$,1a 9,6.9,30a I,690:01 11,415,@4 12,46!A' ____1,!l!Ea____!!glgl X,fir315 t,09s,137 L.s.l.LtrD,si, t,l!.78&31,1 t,13.724,165 s sl.msJ3o 153.039,713 t trog,am I $:55,758 t 6158,011 S tl,?ll,ll8 t 43,1m,621 134,663,@5 Tot l er &tn.!Dlic$L b r[. fiEnrlFEn!..f&titon n29a $.aua !26v, 16.75* b.10'r 1759/. L,159. 2656v, 38.04% 51.69t6 LerlD.t M-Ei! OLulrid 6r Fisl Yd 2015 Argqd v,rE _!l!&!11& D4rurne0%ofior.l.ls-dtdE) t7tJ61,sr2 D.hr @li..tL ro uDitC@adotlig{i@to6rt ,1595,441t6:Aio.ali&fo.EFrDaaofraa.l.Uisdd.l6( 7 Tool !a d.tt qgli{bic b tiait l?.m5.4, rt6r d.ri ltrmin ry h9 .Nd lr aiL tu cD.yiis Eearl oblLdid hnd4 CITY OF PRATTVILLE, ALABAMA SCTIEDULE 12 DEMOGRAPHIC AND ECONOMIC STATISTICS CALENDAR YEAR POPULATION PERSONAL TNCOME (THOUSANDS oF DOLLARS) PERCAPITA PERSONAL INCOME MEDTAN SCHOOL AGE ENROLLMENT AUTAUGACOUNTY UNEMPLOYMENT RATE oo6 2006 2007 2008 2009 2010 20tt 2012 2013 2014 2015 49,105 49,834 50,354 50,7 56 54,57 L 55,267 55,514 55,246 55,395 L,467,514 1,55 5,999 1,640,204 1,660,766 1,679,535 1,804,87 I 1,889,867 1,95 1,123 2,017,431 29,885 31,224 32,573 32,721 30,777 32,657 34,043 35,317 36,419 36.10 36.46 36.26 36.16 36.37 36.69 37.00 36.00 3s.10 36.20 9,379 (05-06) 9,649 (06-07) 9,8 t9 (07-08) 9,854 (08-09) t0,07 6 (09- l0) 9,877 (10-l l) 9,825 (l I -12) 9,642 (12-13) 9,737 (t3-14',) 9,665 (14-15) 2.90% 2.90% 4.50% 8.60Yo 8.0006 6.80% 6.80% 5.90Yo 5.40% 4.90% 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 CITY OF PRATTVILLE, ALABAMA SCHEDULE I3 PRINCIPAL EMPLOYERS 20tt 2015 PERCENTAGE OF TOTAL CITY EMPLOYEES EMPLOYMENT PERCENTAGE OF TOTAL CITY EMPLOYEES EMPLOYMENTEMPLOYER Autauga County Board of Education International Paper City of Prattville, Alabama Prattville Baptist Hospital Walmart Autauga County Prattville Health and Rehabilitation Fras-Le M-Tek LoneStar Plastics Kinedyne Totals 1,000 600 385 23s 480 165 t54 * 100 t25 130 3,37 4 638% 3.83% 2.46% l50Yo 3.06% t.05% 0,98yo * 0.83% 0.80% 0.64% 1,091 550 372 3s0 330 202 187 147 138 9t 74 6,95yo 355% 2.37% 2.23% 2,100/0 l,29yo t.t9% 0,94% 0.88% 058% 0,470/o 2t53%3,532 22.55% Source: PratWille Area Chamber of Commerce. Note: Information does not include city govemment ernploymurt. Note: This schedule presents 20ll compared to 2015. Information for 2006 (nine years ago) is not presented because it is not readily available. Average number employed in City for 2015 was 15,706 per www2.labor.alabama.gov/LAUS/LAUScities.pdf. http://www2. labor. alabama- gov/LAus/ClF/citybyyear.aspx?area:00 00 I 9 * Unavailable 89 CITY OF PRATTVILLE, ALABAIVIA SCHEDULE 14 FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION 2006 2007 2008 20tpe NrQ 20JI zQr?2013 2014 2015 Function/Program General government: Executive Legislative Finance City Clerk Human resources Judicial Information techno logy Vehicle maintenance Public safety: Police: Officers Civilians Fire: Officers Civilians Building division Public works: Public works Engineering Facilities maintenance Planning and development Street Sanitation Wastewater Urban management Culture and recreation : Leisure services Performing and creative arts Totals Source: Human Resources. 5 7 6 4 2 4 3 9 87 5 75 5 4 9 t4 26 26 22 5 7 7 4 4 4 aJ 9 85 7 85 4 4 l3 r8 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 t2 90 ll 89 4 4 t6 22 30 29 24 2 3 7 7 5 4 6 3 l0 92 I 88 4 4 t4 2l 29 28 24 2 3 7 6 2 4 5 I 6 85 7 84 8 7 28 25 2l l5 2 8l 8 8l 7 8l I 79 7 2333 7777 6567 3333 4434 6666 ll23 6656 4 9 8 5 9 4 4 t0 82 829 l0 83 832246 34 3625 2s30 30 t4 t4 ll 7 28 23 t9 t2 I 4 32 23 23 l2 3 13 335 3s2 369 360 32s 3 l l 3 I s 336 354 - - ----------ffim- 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. 90 Function/Prograrn 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 Inspections Public works: Potholes repaired Street resurfacing (mi les) Wastewater: Average daily sewage treahent (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 CITY OF PRATTVILLE, ALABAMA SCHEDULE 15 OPERATING TNDICATORS BY FLINCTION/PROGRAM 2006 2007 2008 2009 2010 20tt 3sl 2012 20t3 20t4 20t5 t7 8,727 3,302 89 3,942 6,449 143 2,395 2,000 7 2.06 1.77 260 26 7,493 317 3,252 77 6,398 7,026 t42 2,522 3,000 l6 7,455 32s 3,288 253 6,236 6,1 84 I l5 2,766 2,000 8 1.90 r.88 t7 6,472 t77 2,651 143 7,914 4,999 t32 3,772 3,000 128 392 8 43 3,512 2t2 2,208 259 4,460 5,673 75 2,846 1,500 t.72 1.90 t20 327 8 49 4,506 l8l 2,128 t22 4,782 5,786 l0l 2,846 1,7 50 2 t.92 2.Ol t73 106 135 106 l3l 16l 343 333 t2 t7 56 74 5,688 4,148 441 659 2,757 2,342 86 98 4,897 4,418 5,893 5,1 1 8113 105 2,77 5 2,791 2,000 2,500 75 t.62 1.88 1.47 1.81 38.5 36.33r89 260 ll lll0 \o 3,658 3,142 t49 t47 3,035 3,208 348 373 6,299 6,450 5,199 5,221 r 15 113 2,996 2,725 2,000 2,000 3 2.t8 1.601.87 1.90 1.75 1.70 2.35 1.99 CITY OF PRATTVILLE, ALABAMA SCHEDULE 16 CAPITAL ASSET STATISTICS BY FTINCTION/PROGRAM 2006 2007 2008 2009 2010 20tt 2012 2013 20t4 201 5 Function/Program Public safety: Police: Stations Patrol cars Motorcycles Fire: Stations 3 3 Fire engines 6 6Ambulances 6 6 Refuse collection: Trash trucks 5 6 Garbage trucks 7 8 Parkan Truck Public works: Streets (miles) Highways (miles) Streetlights Traffic signal heads Cultural and recreation: Acreage 330 330Playgrounds 9 9 Baseball/softball diamonds 16 16 Soccer fields 9 9 Community centers 2 2 Senior citizens center I I Sources: Various City departments. ll 66 66 l0 ll ll 71 8lllu 336677 6699 330 354 910 t6 16 99 22 ll I 82 ll 3 7 7 6 9 I 8l 9 3 7 7 6 9 209 23 2,450 270 354 35410 10t6 169922 ll llll 84 84 8l 84 991010 3333 7888 7777 6666 9888 I 209 2t2 212 217 23 23 23 23 2,450 2,450 2,450 2,47 5 27A 270 270 270 354 354 354 354 10 l0 10 l0 16 16 16 16 9999 2222 llll Note: No capital asset indicators are available for the general government. 92