FY17 Comprehensive Annual Financial Report - City of PrattvilleCity of Prattville, Alabama
Prepared by:
Department of Finance
Daniel F. Oakley, CPA
Finance Director
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
INTRODUCTORY SECTION
PAGE
I. INTRODUCTORY SECTION
Table of contents i - iii
Letter of transmittal iv - viii
Certificate of Achievement for Excellence in Financial Reporting ix
List of principal officials x
Organizational chart xi
Map of the City xii
II. FINANCIAL SECTION
Independent auditor's report 1 - 3
Management's discussion and analysis 4 - 14
Government-Wide Financial Statements
Statement of net position 15
Statement of activities 16
Fund Financial Statements
Balance sheet - governmental funds 17
Reconciliation of balance sheet of governmental funds to statement of net position 18
Statement of revenues, expenditures, and changes in fund balances - governmental funds 19
Reconciliation of statement of revenues, expenditures, and changes in fund balances
of governmental funds to statement of activities 20
Statement of revenues, expenditures, and changes in fund balances - budget and actual
general fund 21 - 24
Statement of revenues, expenditures, and changes in fund balances - budget and actual
gas tax special revenue fund 25
BASIC FINANCIAL STATEMENTS
TABLE OF CONTENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
COMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OF PRATTVILLE, ALABAMA
i
CITY OF PRATTVILLE, ALABAMA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
II. FINANCIAL SECTION (Continued)
PAGE
Statement of revenues, expenditures, and changes in fund balances - budget and actual
judicial special revenue fund 26
Statement of net position - proprietary funds 27
Statement of revenues, expenses, and changes in net position - proprietary funds 28
Statement of cash flows - proprietary funds 29
Notes to financial statements 30 - 72
Schedule of changes in the City's net pension liability and related ratios 73
Schedule of employer contributions to the pension plan 74
Schedule of funding progress of the City's post-employment benefits other than pensions 75
Schedule of revenues, expenditures, and changes in fund balances - budget and actual
capital projects fund 76
Schedule of revenues, expenditures, and changes in fund balances - budget and actual
debt service fund 77
Financial Trends
Schedule 1 Net position by component 78
Schedule 2 Changes in net position 79 - 80
Schedule 3 Fund balances of governmental funds 81
TABLE OF CONTENTS (Continued)
III. STATISTICAL SECTION
REQUIRED SUPPLEMENTARY INFORMATION
OTHER SUPPLEMENTARY INFORMATION
ii
CITY OF PRATTVILLE, ALABAMA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
PAGE
Schedule 4 Changes in fund balances of governmental funds 82
Revenue Capacity
Schedule 5 Net taxable sales by category 83
Schedule 6 Sales tax revenue payers by category 84 - 85
Schedule 7 Direct and overlapping sales tax rates 86
Debt Capacity
Schedule 8 Ratios of outstanding debt by type 87
Schedule 9 Ratios of net general bonded debt outstanding 88
Schedule 10 Direct and overlapping governmental activities debt 89
Schedule 11 Legal debt margin information 90
Demographic and Economic Information
Schedule 12 Demographic and economic statistics 91
Schedule 13 Principal employers 92
Operating Information
Schedule 14 Full-time equivalent city government employees by function 93
Schedule 15 Operating indicators by function/program 94
Schedule 16 Capital asset statistics by function/program 95
TABLE OF CONTENTS (Continued)
III. STATISTICAL SECTION (Continued)
iii
ix
LIST OF PRINCIPAL OFFICIALS
AS OF SEPTEMBER 30, 2017
Mayor Bill Gillespie, Jr.
CITY COUNCIL
Albert Striplin, President
Marcus Jackson Richard Cables
Denise Brown, President Pro Tempore Robert Strichik
Jerry Starnes Lora Lee Boone
HEADS OF DEPARTMENTS
Municipal Court Judge Louis C. Colley
City Attorney David McDowell
City Prosecutor Brad E. Ekdahl
City Clerk Cathy Dickerson
Finance Director Daniel Oakley
Engineering Robby Anderson
Public Works Dale Gandy
Police Chief Mark Thompson
Fire Chief Terry Brown
Parks and Recreation Kellie Cook
Human Resources Lisa Thrash
Information Technology Jose Figueroa
Planning & Development Joel Duke
x
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
ArtsEngineering
Planning &
Develpment
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 DivisionLegend:
City Attorney
Street Division
Business
Licenses
Revenue
General
Government
Performing
Creative
Arts &
Recreation
Adult Programs
& Sports
Park
Maintenanace
Senior Programs
Youth Programs
& Sports
Service Area
Engineering
Services
Facilities
Maintenance
Vehicle
Maintenance
Storm Water
Management
xi
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CITY OF PRATTVILLE, 2017
xi
i
FINANCIAL SECTION
1
INDEPENDENT AUDITOR’S REPORT
The Honorable Mayor and
Members of the City Council
City of Prattville, Alabama
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, the discretely presented component units, and each major fund of the City of Prattville,
Alabama (the City), as of and for the year ended September 30, 2017, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as listed in the
table of contents.
Management’s Responsibility 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 Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free from material misstatement. The financial statements of the Autauga Prattville Public Library
and the 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 internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
2
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the discretely
presented component units, and each major fund of the City of Prattville, Alabama, as of
September 30, 2017, and the respective changes in financial position and, where applicable, cash
flows thereof and the respective budgetary comparison for the general fund, gas tax special revenue
fund, and the judicial special revenue fund for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, the schedule of changes in the City’s net pension liability and
related ratios, the schedule of employer contributions to the pension plan, and the schedule of funding
progress of the City’s post-employment benefits other than pensions on pages 4 through 14 and pages
73 through 75 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
Standards Board, who considers it to 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 Prattville, 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 other records used to prepare the basic
financial statements. Such information has been subjected to the auditing procedures applied in the
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 introductory 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.
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
March 23, 2018 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 solely 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 effectiveness of internal control over financial reporting
or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering City of Prattville, Alabama’s internal control over
financial reporting and compliance.
Montgomery, Alabama
March 23, 2018
4
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, 2017. This discussion and analysis is designed to look at the City’s financial
performance as a whole. We encourage readers to consider the information presented here in
conjunction with the City’s financial statements.
Financial Highlights
The City of Prattville, Alabama’s assets and deferred outflows exceeded its liabilities and
deferred inflows at September 30, 2017, by $39,423,533 (net position). Of the net position
balance amount, ($22,654,697) (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 and OPEB liability for the City.
During the year, the City’s total net position increased by $10,893,534. Revenues of
$50,372,725 exceeded expenses of $39,479,191. The increase in revenue over the prior
year is due in part to the increase in fees for services received in the Wastewater Enterprise
Fund. This increase was expected as a result of the rate increase implemented to assist in
funding the debt service for a major plant expansion project for which construction began
during the year. Expenses decreased slightly due to close monitoring of expenses
throughout the year by management and department heads. The significant areas of
decreased spending were in the public works and cultural and recreational governmental
activities.
Under the Government Accounting Standards Board Statement Number 45, Accounting
and Financial Reporting by Employees for Post-Retirement Benefits Other than Pensions
(GASB 45), the City recognized an expense of $452,736 in the current year to record
unfunded OPEB obligation.
As of the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $20,358,189. There was an increase of $45,884 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. In addition to the basic financial statements, this report contains other supplementary
information that will enhance the reader’s understanding of the financial condition of the City of
Prattville, Alabama.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of
the City of Prattville, Alabama’s finances in a manner similar to a private-sector business. The basic
financial statements include two kinds of statements that present different views of the City, a statement
of net position and a statement of activities. These statements include the City’s three component units,
5
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 functions of the City of Prattville, Alabama that are principally supported
by sales taxes, property taxes, and lodging 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 Financial Statements
The fund financial statements provide more detailed information about the City’s most significant
activities. A fund is a grouping of related accounts that is used to maintain control over resources that
have been segregated for specific activities or objectives. Like other state and local governments, the
City of Prattville, Alabama uses fund accounting to ensure and demonstrate compliance with finance-
related legal matters. All of the funds of the City of Prattville, Alabama are governmental funds which
account for the basic services of the government. Experienced readers of governmental financial
statements will find these financial statements most familiar.
Governmental funds - Governmental funds are used to account for those functions reported as
governmental activities in the government-wide financial statements. Most of the City’s basic services
are accounted for in governmental funds. These funds focus on how assets can readily be converted
into cash flow in and out, and what monies are left at year-end that will be available for spending in the
next year. Governmental funds are reported using an accounting method called modified accrual
accounting, which provides a conservative short-term spending focus. As a result, the governmental
fund financial statements give the reader a detailed short-term view that helps in determining if there
are more or less financial resources available to finance the City’s programs. The relationship between
governmental activities in the government-wide financial statements and the governmental funds
financial statements is described in a reconciliation that is a part of the fund financial statements.
The City maintains five individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures,
and changes in fund balance 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.
6
Proprietary funds - Services for which the City charges customers a fee are generally reported in
proprietary funds. The City of Prattville, Alabama maintains one type of proprietary fund. Enterprise
funds are used to report the same functions presented as business-type activities in the entity-wide
financial statements. The City of Prattville, Alabama uses enterprise funds to account for its Sanitation
and Wastewater departments. Internal service funds are an accounting device used to accumulate and
allocate costs internally among the City’s various functions. The City uses internal funds to account
for its employees’ medical insurance. The internal service fund is presented, in total, in the fund
financial statements. Proprietary funds provide the same type of information as the government-wide
financial statements, only in more detail. The proprietary fund financial statements provide separate
information for the Sanitation and the Wastewater departments, which are considered to be major funds
of the City of Prattville, Alabama.
Notes to Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided
in the government-wide and fund financial statements. The notes to the basic financial statements also
include information regarding the City of Prattville, Alabama’s progress in funding its obligation to
provide pension benefits to its employees. The notes are presented on pages 30 through 72 of this
report.
Government-Wide Financial Analysis
The City’s condensed statement of net position as of September 30, 2017 and 2016, derived from the
government-wide statement of net position is presented below.
2017 2016 2017 2016 2017 2016
Current and other assets 20,892,072$ 20,058,713$ 3,511,894$ 2,660,658$ 24,403,966$ 22,719,371$
Capital assets, net of depreciation 59,610,770 53,959,885 10,944,819 9,151,317 70,555,589 63,111,202
Restricted assets 2,276,732 2,018,432 2,276,732 2,018,432
Total assets 82,779,574 76,037,030 14,456,713 11,811,975 97,236,287 87,849,005
Deferred outflows 4,940,311 3,536,931 527,845 328,409 5,468,156 3,865,340
Long-term liabilities outstanding 54,729,880 56,531,927 3,686,989 3,717,977 58,416,869 60,249,904
Other liabilities 3,112,647 2,111,269 1,751,394 321,180 4,864,041 2,432,449
Total liabilities 57,842,527 58,643,196 5,438,383 4,039,157 63,280,910 62,682,353
Deferred inflows 435,015 66,978 501,993
Net position:
Net investment in capital assets 50,777,504 43,629,725 9,544,408 7,367,599 60,321,912 50,997,324
Restricted 1,756,318 1,800,916 1,756,318 1,800,916
Unrestricted (deficit) (22,656,464) (24,934,891) 1,767 666,650 (22,654,697) (24,268,241)
Total net position 29,877,358$ 20,495,750$ 9,546,175$ 8,034,249$ 39,423,533$ 28,529,999$
GOVERNMENTAL
ACTIVITIES
BUSINESS-TYPE
ACTIVITIES TOTALS
7
The largest component of the City’s net position as of September 30, 2017 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, 2017 increased by $7,444,387 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 $39,423,533.
The City’s net position increased by $10,893,534 during the current fiscal year and was affected by
increasing wastewater fees for services revenue, stable General Fund revenues and overall continued
control over expenses. The City saw an increase in wastewater fees for services revenue of $511,486
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 $1,756,318 at September 30, 2017 and is restricted for use in
public safety, capital projects, and road projects. The remaining balance of unrestricted net position
generally may be used to meet the City’s ongoing obligations. The City, at September 30, 2017,
reported a deficit balance in unrestricted net position in governmental activities of ($22,656,464). The
large negative unrestricted net position is the result of the adoption of GASB 68 during fiscal year 2015,
which required 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-type activities
reported unrestricted net position of $1,767 at September 30, 2017.
8
The following presents the City’s condensed statement of activities for the fiscal years ended
September 30, 2017 and 2016 as derived from the government-wide statement of activities. Over time,
increases and decreases in net position measure whether the City’s financial position is improving or
deteriorating. During the fiscal year, the net position of the primary government increased by
$10,893,534. This increase is primarily due to increases in wastewater fees for services, lodging tax,
and restaurant sales tax, as well as continued control over expenses.
2017 2016 2017 2016 2017 2016
Revenues:
Program revenues:
Charges for services 7,515,548$ 7,365,209$ 7,107,353$ 6,545,121$ 14,622,901$ 13,910,330$
Operating grants and contributions 31,943 135,291 31,943 135,291
Capital grants and contributions 4,581,613 4,596,515 4,581,613 4,596,515
Total program revenues 12,129,104 12,097,015 7,107,353 6,545,121 19,236,457 18,642,136
General revenues:
Sales and use taxes 23,336,649 23,261,064 23,336,649 23,261,064
Real and personal property taxes 2,796,943 2,812,535 2,796,943 2,812,535
Lodging taxes 2,028,437 1,898,959 2,028,437 1,898,959
Local gasoline taxes 1,034,599 1,015,531 1,034,599 1,015,531
Alcoholic beverage taxes 378,800 356,953 378,800 356,953
Rental taxes 378,341 388,975 378,341 388,975
Tobacco taxes 117,974 121,636 117,974 121,636
Excise taxes 175,042 77,436 175,042 77,436
Investment earnings 94,168 93,022 7,760 4,852 101,928 97,874
Miscellaneous revenue 491,229 500,249 491,229 500,249
Gain on disposal of assets 3,320 293,006 18,247 296,326 18,247
Total general revenues 30,835,502 30,526,360 300,766 23,099 31,136,268 30,549,459
Total revenues 42,964,606 42,623,375 7,408,119 6,568,220 50,372,725 49,191,595
Expenses:
General government 8,592,901 8,280,428 8,592,901 8,280,428
Public safety 16,801,682 16,385,499 16,801,682 16,385,499
Public works 5,288,183 6,451,296 5,288,183 6,451,296
Cultural and recreational 2,096,394 2,204,798 2,096,394 2,204,798
Debt service 853,853 943,460 853,853 943,460
Sanitation 3,019,998 2,886,650 3,019,998 2,886,650
Wastewater 2,826,180 2,869,892 2,826,180 2,869,892
Total expenses 33,633,013 34,265,481 5,846,178 5,756,542 39,479,191 40,022,023
Increase in net position before transfers 9,331,593 8,357,894 1,561,941 811,678 10,893,534 9,169,572
Transfers 50,015 (50,015)
Increase in net position 9,381,608 8,357,894 1,511,926 811,678 10,893,534 9,169,572
Net position - beginning 20,495,750 12,137,856 8,034,249 7,222,571 28,529,999 19,360,427
Net position - ending 29,877,358$ 20,495,750$ 9,546,175$ 8,034,249$ 39,423,533$ 28,529,999$
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTALS
9
Expenses and Program Revenues for Governmental Activities
Governmental activities increased the City of Prattville, Alabama’s net position by $9,381,608 for fiscal
year 2017. The key elements of the increase in net position are the increases in revenue from the prior
year as follows:
Overall increase in general revenues and transfers of $359,157.
Continued control over expenses, including a decrease in governmental activities expenses
of $632,468.
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
General government Public safety Public works Cultural andrecreational Interest on long-termdebt
Expenses and Program Revenue - Governmental Activities
2017 Expenses
2017 Revenues
2016 Expenses
2016 Revenues
10
Program and General Revenues for Governmental Activities
18%
54%
7%
5%
2%1%1%
0%
0%0%
11%1%
0%0%
Revenues By Source - Governmental Activities - FYE 2017
Charges for services
Sales and use taxes
Real and personal property taxes
Lodging taxes
Local gasoline taxes
Alcoholic beverage taxes
Rental taxes
Tobacco taxes
Excise taxes
Operating grants and contributions
Capital grants and contributions
Miscellaneous
Gain on disposal of assets
Investment earnings
17%
55%
7%
5%
2%1%
1%
0%
0%
0%
11%1%
0%
Revenues By Source - Governmental Activities - FYE 2016
Charges for services
Sales and use taxes
Real and personal property taxes
Lodging taxes
Local gasoline taxes
Alcoholic beverage taxes
Rental taxes
Tobacco taxes
Excise taxes
Operating grants and contributions
Capital grants and contributions
Miscellaneous
Investment earnings
11
Expenses and Program Revenues for Business-Type Activities
Business-type activities increased the City of Prattville, Alabama’s net position by $1,511,926. Key
elements of this change in net position are as follows:
Wastewater expenses remained consistent with prior year, while the wastewater
revenue increased by $511,486 due in large part to the rate increase implemented to
assist in funding the debt service for a major plant expansion project for which
construction began during the year.
Sanitation revenue remained consistent with prior year, while an increase in the
operating expenses due to the purchase of one side arm truck and sanitation cans
throughout the year resulted in a negative change in net position of $156,715.
-
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
5,000,000
Sanitation Wastewater
Expenses and Program Revenue - Business-Type Activities
2017 Expenses
2017 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.
12
As of September 30, 2017, governmental funds reported a combined ending fund balance of
$20,358,189, an increase of $45,884 in comparison with the prior year balance. Of this balance
$147,083 is not available for new spending because it is a prepaid item; $1,535,197 is restricted for
public safety, road projects, and capital improvements; $6,454,518 is committed to debt service and
capital projects; and $4,551,732 is assigned for industrial park improvements, capital projects, capital
equipment, and other purposes.
The fund balance of the general fund increased $1,323,468 during the current fiscal year after other
financing sources including fund transfers. Total revenue increased $344,903 as compared to the prior
year primarily due to an increase in sales tax revenue and continued control over expenses.
The fund balance of the capital projects fund decreased $1,524,680 during the current fiscal year after
other financing sources including fund transfers, primarily due to various projects including the
construction of a new building for the City’s public works departments, the Silver Hills drainage
project, and the Woodvale drainage project.
The fund balance of the debt service fund increased by $1,829 during the current fiscal year.
The fund balance of the gas tax special revenue fund increased $275,158 during the current fiscal year
after other financing sources including transfers. This increase in the fund balance was the result of
fewer paving projects executed during the fiscal year compared to the prior year.
The fund balance of the judicial special revenue fund decreased $29,891 during the current fiscal year
after other financing sources including transfers. The decrease in the fund balance was primarily the
result of increased transfers to other funds.
Proprietary funds - The City of Prattville, Alabama’s proprietary funds provide the same type of
information found in the government-wide financial statements, but in more detail. Unrestricted net
position of the proprietary funds at the end of the year amounted to $1,767. The Sanitation fund had
an overall decrease in net position of $156,715 and Wastewater fund had an overall increase in net
position of $1,668,641.
Internal service funds - Internal service funds are designed to recover the internal costs of government
services provided to other funds groups. At September 30, 2017, the internal service fund reported a
deficit of $257,237 for its net position balance. Contributions were increased for all participating funds
for the year ended September 30, 2017. For 2017, the Enterprise funds 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, 2017 was $70,555,589 (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 $1,821,808.
Increases in infrastructure of $3,435,159.
13
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
Land 2,719,938$ 1,257,019$ 3,976,957$
Construction in progress 3,289,976 2,863,235 6,153,211
Buildings and building improvements 3,533,741 3,608,049 7,141,790
Land improvements 642,068 1,176,493 1,818,561
Vehicles 2,853,300 1,673,919 4,527,219
Office, nonoffice, and computer equipment 2,277,568 366,104 2,643,672
Infrastructure 44,294,179 44,294,179
Totals 59,610,770$ 10,944,819$ 70,555,589$
CITY OF PRATTVILLE, ALABAMA
CAPITAL ASSETS
Additional information on the City’s capital assets can be found in Note 4 of the financial statements.
Long-term debt - As of September 30, 2017, the governmental activities had total debt outstanding of
$34,145,337 and the business-type activities had a total debt outstanding of $1,400,411.
Long-term debt 2017 2016 CHANGE
General obligation warrants and
other notes payable 33,150,411$ 38,818,718$ (5,668,307)$
Limited obligation warrant 1,513,174 1,529,406 (16,232)
Capital lease 882,163 206,620 675,543
Totals 35,545,748$ 40,554,744$ (5,008,996)$
The City of Prattville, Alabama’s total debt outstanding decreased by $5,008,996 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 2009 general obligation refunding warrants.
Additional information on the City’s debt can be found in Note 6 of the financial statements.
During 2017, the City issued General Obligation Warrants Series 2017-CWSRF-DL Special Authority
Loan with Alabama Water Pollution Control Authority and Alabama Department of Environmental
Management in the amount of $240,000. The City also entered into a capital lease of $726,905 for the
purchase of a fire truck.
14
Budgetary Highlights for the Fiscal Year Ending September 30, 2017
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, 2017, actual operating revenues for the general fund were more than the budgeted
amount by $769,892, or 2.10%. The primary reasons for the variance are as follows:
Sales and use taxes were $179,049 more than budgeted due to increased sales primarily as
a result of an overall improvement in economic conditions, as well as increased
participation in the State of Alabama’s simplified sellers use tax program.
As of September 30, 2017, actual operating expenditures for the general fund were less than the
budgeted amount by $1,231,328, or 4.23%.
Economic Factors and Year 2017 Budget
Economic conditions for the City of Prattville, Alabama remain stable in the current environment.
The City relies on taxes, fees, fines, and charges for services to fund their governmental
activities. The primary source of revenue is sales taxes, which comprised approximately
62% of general fund revenues in fiscal year 2017. 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 4.0%, which is a significant decrease compared to the prior
year. The unemployment rate for the City of Prattville, Alabama is 3.8%. The
unemployment rate is comparable to the state’s current unemployment rate of 3.7% and
compares favorably to the national average rate of 4.1%.
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.
BASIC FINANCIAL STATEMENTS
THIS PAGE INTENTIONALLY LEFT BLANK
AUTAUGA- HISTORIC
PRATTVILLE PRATTVILLE PRATTVILLE
GOVERNMENTAL BUSINESS-TYPE PUBLIC AIRPORT REDEVELOPMENT
ACTIVITIES ACTIVITIES TOTAL LIBRARY AUTHORITY AUTHORITY
ASSETS:
Cash and cash equivalents 17,365,854$ 3,565,888$ 20,931,742$ 351,049$ 510,742$ 210,260$
Internal balances 587,437 (587,437)
Taxes receivable 2,377,888 2,377,888
Accounts receivable, net 413,810 506,853 920,663 18,249 120,435
Prepaid items 147,083 26,590 173,673 2,503 3,753
Restricted assets:
Cash and cash equivalents 1,616,167 1,616,167 194,080
Other 660,565 660,565 10,683
Capital assets, not depreciated 6,009,914 4,120,254 10,130,168 3,079,667 2,030,359
Capital assets, net of accumulated depreciation 53,600,856 6,824,565 60,425,421 29,394 5,047,932 2,668,284
Total assets 82,779,574 14,456,713 97,236,287 382,946 8,667,273 5,227,171
DEFERRED OUTFLOWS:
Deferred loss on refunding 989,168 989,168
Pension related items 3,951,143 527,845 4,478,988 129,985
Total deferred outflows 4,940,311 527,845 5,468,156 129,985
LIABILITIES:
Accounts payable 2,055,079 1,751,394 3,806,473 385 8,746 24,000
Accrued liabilities 209,785 209,785 14,398
Accrued interest 267,795 267,795 477 11,410
Unearned revenues 48,300
Other liabilities 579,988 579,988
Long-term liabilities:
Portion due or payable in one year:
General obligation warrants payable,
capital leases, and other
long-term debt 2,937,202 400,792 3,337,994 30,375 136,232
Compensated absences 208,762 79,104 287,866
Portion due or payable after one year:
General obligation warrants payable,
capital leases, and other
long-term debt 32,224,380 999,619 33,223,999 427,467 4,577,380
Compensated absences 925,638 88,121 1,013,759
Post-employment benefits
other than pensions 3,585,928 3,585,928
Net pension liability 14,847,970 2,119,353 16,967,323 91,923
Total liabilities 57,842,527 5,438,383 63,280,910 155,006 467,065 4,749,022
DEFERRED INFLOWS:
Pension related items 70,927
Total deferred inflows 70,927
NET POSITION:
Net investment in capital assets 50,777,504 9,544,408 60,321,912 29,394 7,669,757 34,539
Restricted for:
Law enforcement 95,980 95,980
Road projects 311,310 311,310
Capital projects 675,302 675,302 194,080
Elmore County district improvements 648,002 648,002
Cultural and recreational 25,724 25,724
Unrestricted (deficit) (22,656,464) 1,767 (22,654,697) 257,604 530,451 249,530
Total net position 29,877,358$ 9,546,175$ 39,423,533$ 286,998$ 8,200,208$ 478,149$
The accompanying notes are an integral part of these financial statements.
COMPONENT UNITS
CITY OF PRATTVILLE, ALABAMA
STATEMENT OF NET POSITION
SEPTEMBER 30, 2017
PRIMARY GOVERNMENT
15
PROGRAM REVENUE
EXPENSES
FINES, FEES, AND
CHARGES FOR
SERVICES
OPERATING GRANTS
AND CONTRIBUTIONS
CAPITAL GRANTS
AND
CONTRIBUTIONS
GOVERNMENTAL
ACTIVITIES
BUSINESS-TYPE
ACTIVITIES TOTAL
AUTAUGA-
PRATTVILLE
PUBLIC
LIBRARY
PRATTVILLE
AIRPORT
AUTHORITY
HISTORIC
PRATTVILLE
REDEVELOPMENT
AUTHORITY
ACTIVITIES:
Primary government:
Governmental activities:
General government 8,592,901$ 5,942,996$ (2,649,905)$ (2,649,905)$
Public safety 16,801,682 1,276,310 11,475$ (15,513,897) (15,513,897)
Public works 5,288,183 20,468 4,581,613$ (686,102) (686,102)
Cultural and recreational 2,096,394 296,242 (1,800,152) (1,800,152)
Interest on long-term debt 853,853 (853,853) (853,853)
Total governmental activities 33,633,013 7,515,548 31,943 4,581,613 (21,503,909) (21,503,909)
Business-type activities:
Sanitation 3,019,998 2,601,138 (418,860)$ (418,860)
Wastewater 2,826,180 4,506,215 1,680,035 1,680,035
Total business-type activities 5,846,178 7,107,353 1,261,175 1,261,175
Total primary government 39,479,191$ 14,622,901$ 31,943$ 4,581,613$ (21,503,909) 1,261,175 (20,242,734)
Component units:
Autauga-Prattville Public Library 567,093$ 31,192$ 86,495$ (449,406)$
Prattville Airport Authority 568,969 120,008 519,401$ 70,440$
Historic Prattville Redevelopment Authority 265,655 403,300 137,645$
Total component units 1,401,717$ 554,500$ 86,495$ 519,401$ (449,406) 70,440 137,645
General revenue:
Sales and use taxes 23,336,649 23,336,649
Real and personal property taxes 2,796,943 2,796,943
Lodging taxes 2,028,437 2,028,437
Local gasoline taxes 1,034,599 1,034,599
Alcoholic beverage taxes 378,800 378,800
Rental taxes 378,341 378,341
Tobacco taxes 117,974 117,974
Excise taxes 175,042 175,042
Investment earnings 94,168 7,760 101,928 613 865 1,280
Miscellaneous revenue 491,229 491,229 2,983
Unrestricted appropriation from City/County 500,000 2,726
Gain on disposal of assets 3,320 293,006 296,326
Transfers 50,015 (50,015)
Total general revenues and transfers 30,885,517 250,751 31,136,268 500,613 865 6,989
CHANGE IN NET POSITION 9,381,608 1,511,926 10,893,534 51,207 71,305 144,634
NET POSITION - BEGINNING 20,495,750 8,034,249 28,529,999 235,791 8,128,903 333,515
NET POSITION - ENDING 29,877,358$ 9,546,175$ 39,423,533$ 286,998$ 8,200,208$ 478,149$
The accompanying notes are an integral part of these financial statements.
16
COMPONENT UNITS
CITY OF PRATTVILLE, ALABAMA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2017
NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION
PRIMARY GOVERNMENT
GENERAL
FUND
CAPITAL
PROJECTS
FUND
DEBT
SERVICE
FUND
GAS TAX
SPECIAL
REVENUE
FUND
JUDICIAL
SPECIAL
REVENUE
FUND
TOTAL
GOVERNMENTAL
FUNDS
ASSETS:
Cash and cash equivalents 13,536,829$ 3,752,337$ 17,289,166$
Receivables:
Taxes receivable 2,377,888 2,377,888
Accounts receivable, net 160,887 220,554 23,152$ 9,217$ 413,810
Due from other funds 612,372 25,476 637,848
Prepaid items 146,829 254 147,083
Restricted assets:
Cash and cash equivalents 806,184 319,448 1,879$ 288,158 200,498 1,616,167
Other 660,565 660,565
Total assets 17,640,989$ 4,978,380$ 1,879$ 311,310$ 209,969$ 23,142,527$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES:
Liabilities:
Accounts payable 924,145$ 771,318$ 25,701$ 1,721,164$
Accrued liabilities 206,332 3,453 209,785
Other liabilities 380,323 199,665 579,988
Due to other funds 25,476 24,925 50,401
Total liabilities 1,536,276 771,318 253,744 2,561,338
Deferred inflows of resources:
Unavailable revenue 223,000 223,000
Total deferred inflows of resources 223,000 223,000
Fund balances (deficits):
Nonspendable:
Prepaid items 146,829 254 147,083
Restricted for:
Law enforcement 95,980 95,980
Road projects 311,310$ 311,310
Capital projects 36,479 415,823 452,302
Elmore County district improvements 648,002 648,002
Cultural and recreational 25,724 25,724
Debt service 1,879$ 1,879
Committed to:
Debt service 6,253,712 6,253,712
Capital projects 200,806 200,806
Assigned to:
Industrial park improvement fund 2,621,141 2,621,141
Parks and recreation 369,414 369,414
Facilities improvement 224,454 224,454
Infrastructure 376,878 376,878
Fire training 22,260 22,260
Capital equipment reserve 61,613 61,613
Other purposes 875,972 875,972
Unassigned 7,713,688 (44,029) 7,669,659
Total fund balances 16,104,713 3,984,062 1,879 311,310 (43,775) 20,358,189
Total liabilities, deferred inflows
of resources, and fund balances 17,640,989$ 4,978,380$ 1,879$ 311,310$ 209,969$ 23,142,527$
The accompanying notes are an integral part of these financial statements.
CITY OF PRATTVILLE, ALABAMA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2017
17
Total fund balances - governmental funds 20,358,189$
Land 2,719,938$
Construction in progress 3,289,976
642,068
3,533,741
2,277,568
2,853,300
44,294,179
59,610,770
Long-term receivables are not available to pay for current period expenditures and, therefore,
are reported as deferred inflows of resources in the governmental funds. 223,000
(257,237)
Deferred loss on advance refunding 989,168
Deferred outflows related to the net pension liability 3,951,143
Total deferred outflows of resources 4,940,311
Accrued interest on bonds 267,795
General obligation warrants and other notes payable 33,263,174
Unamortized debt issuance discounts (57,150)
Unamortized debt issuance premiums 1,073,395
Capitalized lease obligations 882,163
Compensated absences 1,134,400
Post-employment benefit plans other than pensions 3,585,928
Net pension obligation 14,847,970
(54,997,675)
Total net position of governmental activities 29,877,358$
The accompanying notes are an integral part of these financial statements.
CITY OF PRATTVILLE, ALABAMA
RECONCILIATION OF BALANCE SHEET OF
GOVERNMENTAL FUNDS TO STATEMENT OF NET POSITION
SEPTEMBER 30, 2017
Differences in amounts reported for governmental activities in the statement of net position on page 15.
Capital assets used in governmental activities are not financial resources and, therefore, are not
reported in the governmental funds. Those assets consist of:
Long-term liabilities, including general obligation warrants payable and capital leases, are not due
and payable in the current period and, therefore, are not reported in the governmental funds.
Total long-term liabilities
Total capital assets
Balances at September 30, 2017 were:
Infrastructure, net of $10,929,828 accumulated depreciation
Internal service funds are used by management to charge the costs of employee medical insurance to
individual funds. The assets and liabilities of the internal service fund are included in governmental
activities in the statement of net position.
Land improvements, net of $5,488,971 accumulated depreciation
Buildings and building improvements, net of $1,703,750 accumulated depreciation
Office, nonoffice, and computer equipment, net of $3,818,180 accumulated depreciation
Vehicles, net of $4,205,761 accumulated depreciation
Deferred outflows and inflows of resources are applicable to future periods and, therefore, are not
reported in the governmental funds.
18
GENERAL
FUND
CAPITAL
PROJECTS
FUND
DEBT
SERVICE
FUND
GAS TAX
SPECIAL
REVENUE
FUND
JUDICIAL
SPECIAL
REVENUE
FUND
TOTAL
GOVERNMENTAL
FUNDS
REVENUES:
Taxes 29,918,543$ 328,242$ 30,246,785$
Licenses and permits 5,942,996 5,942,996
Intergovernmental revenues 39,704 790,634 300,987$ 1,131,325
Charges and fees for services 945,962 945,962
Fines and forfeitures 160,234 466,356$ 626,590
Interest 78,277 13,712 1,974$ 116 94,079
Miscellaneous revenues 378,870 378,870
Total revenues 37,464,586 1,132,588 1,974 301,103 466,356 39,366,607
EXPENDITURES:
Current:
General government 5,770,105 132,192 451,060 6,353,357
Public works 4,082,515 56,622 82,354 4,221,491
Public safety 13,436,701 13,436,701
Cultural and recreational 1,825,309 1,825,309
Capital outlay 2,136,570 3,072,337 43,628 5,252,535
Debt service:
Principal payments 67,594 5,115,000 5,182,594
Interest and fiscal charges 3,010 1,096,050 1,099,060
Total expenditures 27,321,804 3,261,151 6,211,050 125,982 451,060 37,371,047
Excess of revenue over (under) expenditures 10,142,782 (2,128,563) (6,209,076) 175,121 15,296 1,995,560
OTHER FINANCING SOURCES (USES):
Insurance proceeds 111,359 1,000 112,359
Sale of general capital assets 40,906 40,906
Transfers in 66,725 438,554 6,210,905 100,037 7,067 6,823,288
Transfers out (9,765,209) (75,671) (52,254) (9,893,134)
Issuance of bonds 240,000 240,000
Capital lease 726,905 726,905
Total other financing sources (uses) (8,819,314) 603,883 6,210,905 100,037 (45,187) (1,949,676)
NET CHANGE IN FUND BALANCE 1,323,468 (1,524,680) 1,829 275,158 (29,891) 45,884
FUND BALANCE - BEGINNING 14,781,245 5,508,742 50 36,152 (13,884) 20,312,305
FUND BALANCE - ENDING 16,104,713$ 3,984,062$ 1,879$ 311,310$ (43,775)$ 20,358,189$
The accompanying notes are an integral part of these financial statements.
CITY OF PRATTVILLE, ALABAMA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2017
19
Differences in amounts reported for governmental activities in the statement of activities on page 16.
Net change in fund balance - total governmental funds. 45,884$
5,252,535
3,090,000
(2,630,062)
(61,587)
Bond proceeds (240,000)$
Capital lease financing (726,905)
(966,905)
General obligation warrants payable 5,525,000
Limited obligation warrant 16,232
Capital leases 51,362
5,592,594
Accrued interest payable (8,351)
Compensated absences (7,364)
Post-employment benefit plans other than pensions (452,736)
Change in net pension liability and related deferred amounts (578,243)
(1,046,694)
Amortization 53,095
53,095
(17,769)
70,517
Change in net position of governmental activities 9,381,608$
The accompanying notes are an integral part of these financial statements.
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:
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.
Revenues are reported in the funds when there is an established claimed to the resources and
the resources are available to finance current expenditures. Revenues are reported in the
statement of activities when there is an established claim with no availability criterion.
Depreciation expense on governmental capital assets included in the governmental activities
in the statement of activities.
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
contribute to the change in fund balance. However,issuing debt increases long-term liabilities
in the statement of net position:
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.
Some expenses reported in the statement of activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds:
Capital outlay, reported as expenditures in governmental funds, is shown as capital assets in
the statement of net position.
Donations of capital assets increase net position in the statement of net position but do not
appear in the governmental funds because they are not financial resources.
CITY OF PRATTVILLE, ALABAMA
RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2017
20
ACTUAL AMOUNTS VARIANCE WITH
BUDGETARY FINAL BUDGET -
ORIGINAL FINAL BASIS POSITIVE (NEGATIVE)
REVENUES:
Taxes:
Sales and use taxes 23,157,600$ 23,157,600$ 23,336,649$ 179,049$
Real and personal property taxes 2,742,150 2,742,150 2,796,943 54,793
Lodging taxes 1,576,000 1,576,000 1,700,195 124,195
Local gasoline taxes 1,002,000 1,002,000 1,034,599 32,599
Alcoholic beverage taxes 324,500 324,500 378,800 54,300
Rental taxes 379,400 379,400 378,341 (1,059)
Tobacco taxes 130,000 130,000 117,974 (12,026)
Excise taxes 60,000 60,000 175,042 115,042
Total taxes 29,371,650 29,371,650 29,918,543 546,893
Licenses and permits:
Business licenses 5,023,500 5,023,500 5,012,613 (10,887)
Franchise fees 590,000 590,000 605,170 15,170
Building permits and
inspection fees 302,000 302,000 315,858 13,858
Yard sale and special event permits 9,350 9,350 9,355 5
Total licenses and permits 5,924,850 5,924,850 5,942,996 18,146
Charges and fees for services:
Ambulance fees 625,000 625,000 649,720 24,720
Recreation rentals 277,780 277,780 296,242 18,462
Total charges and fees for services 902,780 902,780 945,962 43,182
(Continued)
The accompanying notes are an integral part of these financial statements.
GENERAL FUND
BUDGETED AMOUNTS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
CITY OF PRATTVILLE, ALABAMA
BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2017
21
ACTUAL AMOUNTS VARIANCE WITH
BUDGETARY FINAL BUDGET -
ORIGINAL FINAL BASIS POSITIVE (NEGATIVE)
REVENUES: (continued)
Fines and forfeitures:
Drug confiscation proceeds 52,000$ 52,000$ 135,854$ 83,854$
Penalties 30,000 30,000 24,380 (5,620)
Total fines and forfeitures 82,000 82,000 160,234 78,234
Intergovernmental revenue:
Grant income 75,000 75,000 39,704 (35,296)
Total intergovernmental revenue 75,000 75,000 39,704 (35,296)
Investment income:
Interest 48,000 48,000 78,277 30,277
Total investment income 48,000 48,000 78,277 30,277
Miscellaneous revenues:
Accident reports 9,150 9,150 7,798 (1,352)
Concessions 7,500 7,500 14,315 6,815
Donations 85,000 91,000 98,752 7,752
Lambert property tower 18,060 18,060 20,109 2,049
Miscellaneous income 67,954 142,954 184,253 41,299
Parades 3,150 3,150 4,637 1,487
Performing and creative arts 18,000 18,000 47,719 29,719
Sex offender registration fee 600 600 1,287 687
Total miscellaneous revenues 209,414 290,414 378,870 88,456
Total revenues 36,613,694 36,694,694 37,464,586 769,892
(Continued)
The accompanying notes are an integral part of these financial statements.
BUDGETED AMOUNTS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
CITY OF PRATTVILLE, ALABAMA
BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2017
22
ACTUAL AMOUNTS VARIANCE WITH
BUDGETARY FINAL BUDGET -
ORIGINAL FINAL BASIS POSITIVE (NEGATIVE)
EXPENDITURES:
General government:
Executive 303,763$ 292,922$ 280,953$ 11,969$
Legislative 161,642 161,642 151,124 10,518
Administrative finance 552,869 552,869 525,293 27,576
Administrative city clerk 233,327 236,294 226,587 9,707
Human resources 312,391 388,291 379,642 8,649
Information technology 1,246,555 1,230,509 1,393,028 (162,519)
Vehicle maintenance 317,179 313,695 257,612 56,083
Sales tax incentives 976,000 976,000 946,721 29,279
Building 93,549 86,096 70,404 15,692
City/County services 260,000 260,000 263,333 (3,333)
Community initiatives 769,279 629,279 702,308 (73,029)
Appropriations 661,112 661,112 772,934 (111,822)
Total general government 5,887,666 5,788,709 5,969,939 (181,230)
Public works:
General public works 390,854 355,082 321,832 33,250
Planning and development 1,316,787 1,309,268 1,174,876 134,392
Urban management 1,660,559 1,660,559 1,436,396 224,163
Engineering 1,141,871 1,138,754 887,578 251,176
Facility maintenance 345,177 351,062 295,411 55,651
Total public works 4,855,248 4,814,725 4,116,093 698,632
Public safety:
Police 7,150,963 7,070,876 6,963,379 107,497
Fire 6,412,766 6,412,766 6,487,053 (74,287)
Total public safety 13,563,729 13,483,642 13,450,432 33,210
Cultural and recreation:
Parks and recreation 1,852,451 1,855,772 1,611,037 244,735
Performing and creative art 265,649 265,649 218,556 47,093
Total cultural and recreation 2,118,100 2,121,421 1,829,593 291,828
Capital outlay 1,535,944 2,836,739 2,443,119 393,620
Debt service:
Principal 62,862 62,862 67,594 (4,732)
Interest 3,010 3,010 3,010
Total debt service 65,872 65,872 70,604 (4,732)
Total expenditures 28,026,559 29,111,108 27,879,780 1,231,328
Excess of revenues over expenditures 8,587,135 7,583,586 9,584,806 2,001,220
(Continued)
The accompanying notes are an integral part of these financial statements.
CITY OF PRATTVILLE, ALABAMA
BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2017
BUDGETED AMOUNTS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
23
ACTUAL AMOUNTS VARIANCE WITH
BUDGETARY FINAL BUDGET -
ORIGINAL FINAL BASIS POSITIVE (NEGATIVE)
OTHER FINANCING SOURCES (USES):
Insurance proceeds 10,000$ 55,348$ 111,359$ 56,011$
Sale of surplus equipment 27,500 27,500 40,906 13,406
Transfers from judicial fund 54 54
Transfers from capital projects fund 8,203 66,671 58,468
Transfers to capital projects fund (388,480) (388,480)
Transfers to debt service fund (6,210,905) (6,210,905)
Transfers to internal service fund (2,486,025) (2,484,854) (3,067,661) (582,807)
Transfers to sanitation fund (59) (59)
Transfers to judicial fund (7,067) (7,067) (7,067)
Transfers to gas tax fund (91,037) (91,037)
Capital lease 726,905 726,905
Total other financing uses (2,455,592) (1,673,965) (8,819,314) (7,145,349)
Net change in fund balance,
budgetary basis 6,131,543$ 5,909,621$ 765,492 (5,144,129)$
Adjustment for reconciling items to adjust from
budgetary basis to modified accrual basis:
Change in encumbrances 557,976
557,976
NET CHANGE IN FUND BALANCE, MODIFIED ACCRUAL BASIS 1,323,468
FUND BALANCE - BEGINNING 14,781,245
FUND BALANCE - ENDING 16,104,713$
The accompanying notes are an integral part of these financial statements.
BUDGETED AMOUNTS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
CITY OF PRATTVILLE, ALABAMA
BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2017
24
CITY OF PRATTVILLE, ALABAMA
ACTUAL AMOUNTS VARIANCE WITH
BUDGETARY FINAL BUDGET -
ORIGINAL FINAL BASIS POSITIVE (NEGATIVE)
REVENUES:
State gasoline and lubricating oil excise tax 257,500$ 257,500$ 300,987$ 43,487$
Interest income 116 116
Total revenues 257,500 257,500 301,103 43,603
EXPENDITURES:
Current operations:
Public works 348,195 348,195 82,354 265,841
Capital outlay 27,500 43,628 (16,128)
Total expenditures 348,195 375,695 125,982 249,713
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES (90,695) (118,195) 175,121 293,316
OTHER FINANCING SOURCES:
Transfers in 100,037 100,037
Total other financing sources 100,037 100,037
NET CHANGE IN FUND BALANCE,
BUDGETARY BASIS (90,695)$ (118,195)$ 275,158 393,353$
Adjustment for reconciling items to adjust from
budgetary basis to modified accrual basis:
Change in encumbrances
NET CHANGE IN FUND BALANCE, MODIFIED ACCRUAL BASIS 275,158
FUND BALANCE AT BEGINNING OF YEAR 36,152
FUND BALANCE AT END OF YEAR 311,310$
The accompanying notes are an integral part of these financial statements.
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GAS TAX SPECIAL REVENUE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2017
BUDGETED AMOUNTS
25
ACTUAL AMOUNTS VARIANCE WITH
BUDGETARY FINAL BUDGET -
ORIGINAL FINAL BASIS POSITIVE (NEGATIVE)
REVENUES:
Fines and forfeitures 560,900$ 560,900$ 466,356$ (94,544)$
Total revenues 560,900 560,900 466,356 (94,544)
EXPENDITURES:
Current operations:
Legislative 7,500 (7,500)
Judicial 515,767 515,767 460,912 54,855
Total expenditures 515,767 515,767 468,412 47,355
EXCESS OF REVENUES OVER EXPENDITURES 45,133 45,133 (2,056) (47,189)
OTHER FINANCING USES:
Transfers in 7,067 7,067 7,067
Transfers out (52,200) (52,200) (52,254) (54)
Total other financing uses (45,133) (45,133) (45,187) (54)
NET CHANGE IN FUND BALANCE,
BUDGETARY BASIS -$ -$ (47,243) (47,243)$
Adjustment for reconciling items to adjust from
budgetary basis to modified accrual basis:
Change in encumbrances 17,352
17,352
NET CHANGE IN FUND BALANCE, MODIFIED ACCRUAL BASIS (29,891)
FUND BALANCE AT BEGINNING OF YEAR (13,884)
FUND BALANCE AT END OF YEAR (43,775)$
The accompanying notes are an integral part of these financial statements.
BUDGETED AMOUNTS
CITY OF PRATTVILLE, ALABAMA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
JUDICIAL SPECIAL REVENUE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2017
26
SANITATION WASTEWATER TOTAL
GOVERNMENTAL
ACTIVITIES -
INTERNAL SERVICE
FUNDS
ASSETS:
Current assets:
Cash and cash equivalents 308,578$ 3,257,310$ 3,565,888$ 76,688$
Accounts receivables, net 195,522 311,331 506,853
Prepaid items 20,988 5,602 26,590
Total current assets 525,088 3,574,243 4,099,331 76,688
Noncurrent assets:
Capital assets, not being depreciated 338,654 3,781,600 4,120,254
Capital assets, net of accumulated
depreciation 1,429,895 5,394,670 6,824,565
Total noncurrent assets 1,768,549 9,176,270 10,944,819
Total assets 2,293,637 12,750,513 15,044,150 76,688
DEFERRED OUTFLOWS:
Pension related items 252,027 275,818 527,845
Total deferred outflows 252,027 275,818 527,845
LIABILITIES:
Current liabilities:
Accounts payable and accrued liabilities 62,575 1,688,819 1,751,394 333,915
Due to other funds 449,898 137,539 587,437 10
Current portion of long-term debt 269,336 131,456 400,792
Compensated absences 12,290 66,814 79,104
Total current liabilities 794,099 2,024,628 2,818,727 333,925
Noncurrent liabilities:
Long-term debt 738,147 261,472 999,619
Compensated absences 32,193 55,928 88,121
Net pension obligation 1,007,801 1,111,552 2,119,353
Total noncurrent liabilities 1,778,141 1,428,952 3,207,093
Total liabilities 2,572,240 3,453,580 6,025,820 333,925
NET POSITION:
Net investment in capital assets 761,066 8,783,342 9,544,408
Unrestricted (deficit) (787,642) 789,409 1,767 (257,237)
Total net position (26,576)$ 9,572,751$ 9,546,175 (257,237)$
Net position of business-type activities 9,546,175$
The accompanying notes are an integral part of these financial statements.
ENTERPRISE FUNDS
BUSINESS-TYPE ACTIVITIES -
CITY OF PRATTVILLE, ALABAMA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2017
27
SANITATION WASTEWATER TOTAL
GOVERNMENTAL
ACTIVITIES -
INTERNAL
SERVICE FUNDS
OPERATING REVENUES:
Charges for goods and services 2,601,138$ 4,506,215$ 7,107,353$ 681,400$
Total operating revenues 2,601,138 4,506,215 7,107,353 681,400
OPERATING EXPENSES:
Cost of sales and services 901,629 230,926 1,132,555
Salaries and benefits 1,209,758 1,252,043 2,461,801
Repairs and maintenance 98,412 118,052 216,464
Utilities 4,865 396,176 401,041
Insurance 79,372 47,315 126,687
Other 19,217 66,325 85,542 413,772
Depreciation 402,487 496,502 898,989
Benefits paid 3,812,963
Total operating expenses 2,715,740 2,607,339 5,323,079 4,226,735
OPERATING INCOME (LOSS) (114,602) 1,898,876 1,784,274 (3,545,335)
NONOPERATING REVENUES (EXPENSES):
Gain on sale of capital assets 264,482 28,524 293,006
Interest income 294 7,466 7,760 91
Interest expense (17,158) (10,041) (27,199)
Total nonoperating revenues 247,618 25,949 273,567 91
Net income before transfers 133,016 1,924,825 2,057,841 (3,545,244)
TRANSFERS IN 59 59 3,615,761
TRANSFERS OUT (289,790) (256,184) (545,974)
CHANGE IN NET POSITION (156,715) 1,668,641 1,511,926 70,517
TOTAL NET POSITION - BEGINNING 130,139 7,904,110 (327,754)
TOTAL NET POSITION - ENDING (26,576)$ 9,572,751$ (257,237)$
Change in net position of business-type activities 1,511,926$
The accompanying notes are an integral part of these financial statements.
ENTERPRISE FUNDS
BUSINESS-TYPE ACTIVITIES -
CITY OF PRATTVILLE, ALABAMA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2017
28
SANITATION WASTEWATER TOTAL
GOVERNMENTAL
ACTIVITIES -
INTERNAL
SERVICE FUNDS
CASH FLOWS FROM (USED FOR) OPERATING ACTIVITIES:
Receipts from customers 2,608,932$ 4,521,461$ 7,130,393$
Receipts from interfund services provided 681,400$
Payments to suppliers (1,125,087) (1,005,273) (2,130,360) (4,248,403)
Payments to employees (1,176,315) (1,198,720) (2,375,035)
Net cash from (used for) operating activities 307,530 2,317,468 2,624,998 (3,567,003)
CASH FLOWS FROM (USED FOR)
NONCAPITAL FINANCING ACTIVITIES:
Transfers to other funds (289,790) (256,184) (545,974)
Transfers from other funds 59 59 3,615,761
Net cash payments from (to) other funds (213,962) (2,282) (216,244) 10
Net cash from (used for) noncapital financing activities (503,693) (258,466) (762,159) 3,615,771
CASH FLOWS FROM (USED FOR)
CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets (231,422) (878,540) (1,109,962)
Proceeds from sale of capital assets 283,054 28,524 311,578
Principal paid on long-term debt (265,355) (117,952) (383,307)
Interest paid on long-term debt (17,158) (10,041) (27,199)
Net cash used for capital and related financing activities (230,881) (978,009) (1,208,890)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 294 7,466 7,760 91
Net cash from investing activities 294 7,466 7,760 91
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (426,750) 1,088,459 661,709 48,859
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 735,328 2,168,851 2,904,179 27,829
CASH AND CASH EQUIVALENTS, END OF YEAR 308,578$ 3,257,310$ 3,565,888$ 76,688$
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH FROM (USED FOR) OPERATING ACTIVITIES:
Operating income (loss) (114,602)$ 1,898,876$ 1,784,274$ (3,545,335)$
Adjustments to reconcile operating income to net cash
provided by operations:
Depreciation expense 402,487 496,502 898,989
(Increase) decrease in assets and deferred outflows/inflows:
Accounts receivable 7,794 15,246 23,040
Prepaid items 2,855 822 3,677
Deferred outflows/inflows (120,819) (145,595) (266,414)
Increase (decrease) in liabilities:
Accounts payable and accrued liabilities 129,815 1,652,718 1,782,533 (21,668)
Net cash from (used for) operating activities 307,530$ 3,918,569$ 4,226,099$ (3,567,003)$
The accompanying notes are an integral part of these financial statements.
ENTERPRISE FUNDS
BUSINESS-TYPE ACTIVITIES -
CITY OF PRATTVILLE, ALABAMA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2017
29
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
30
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 Prattville, Alabama (the primary
government) and its component units. The component units discussed below are included in the City’s
reporting entity because of the significance of its operational or financial relationship with the City.
Each discretely presented component unit is reported in a separate column in the government-wide
financial statements to emphasize that it is legally separate from the City.
The component unit’s column in the combined financial statements includes the financial data of the
Autauga-Prattville Public Library (the Library), the Prattville Airport Authority (the Authority), and
the Historic Prattville Redevelopment Authority (HPRA), which are determined to be component units
of the City.
The Library operates for the benefit of the City and Autauga County residents. The City annually
provides significant operating subsidies to the Library and appoints its governing body. Based on these
criteria, the Library is included as a component unit of the City for the year ended September 30, 2017.
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, 2017. 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 commerce
by inducing commercial enterprises to upgrade, improve, modernize, and expand existing facilities and
to locate new facilities to the central business district of Prattville. The City annually provides operating
subsidies to the HPRA and appoints its governing body. Based on this criteria, the HPRA is included
as a component unit of the City for the year ended September 30, 2017. The Authority operates on a
fiscal year ending September 30. Financial statements of HPRA can be obtained from the City’s finance
department in Prattville, Alabama.
The City's officials are also responsible for appointing the members of the boards of other organizations,
but the City's accountability for these organizations does not extend beyond making the appointments.
These organizations would not be considered component units of the City; therefore, their financial
information is not reflected in the City’s financial statements.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
31
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. For the most part, the
effect of interfund activity has been removed from these statements. The exception to this is interfund
services provided and used which are eliminated in the consolidation process. 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: (1) fines, fees, and charges, (2) operating grants and contributions, and (3) capital grants
and contributions. Charges for services refer to direct recovery from customers for services rendered.
Grants and contributions refer to revenues restricted for specific programs whose use may be restricted
further to operational or capital items. The general revenues section displays revenue collected that
helps support all functions of government and contribute to the change in the net position for the fiscal
year.
The fund financial statements follow and report additional and detailed information about operations
for major funds individually and nonmajor funds in the aggregate for governmental funds. A
reconciliation is provided that converts the results of governmental fund accounting to the government-
wide presentations.
The City reports the following major governmental funds:
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 fund - The capital projects fund is 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 revenue fund - The judicial special revenue fund is used to account for all fines
and forfeitures as a result of municipal court operations. The use of these funds is restricted
and used for the operation of the municipal court and jail.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
32
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.
Wastewater - The fund accounts for the revenues and costs related to the provision of sanitary
sewer and wastewater treatment services in the City.
Additionally, the City reports the following fund type:
Internal service fund - The fund accounts for the operations of the self-insured medical
insurance plan provided to funds of the City on a cost reimbursement basis.
Measurement focus, basis of accounting, and financial statement presentation
Government-wide financial statements - The government-wide financial statements are reported using
the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of when the related cash
flows take place. Nonexchange transactions, in which the City gives (or receives) value without
directly receiving (or giving) equal value in exchange, include property taxes, grants, entitlements, and
donations. On an accrual basis, revenue from 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 financial statements - The governmental fund financial statements are reported
using the current financial resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized as soon as they are both measurable and available. Revenues are considered
to be available when they are collectible within 90 days after year-end. Sales taxes, gasoline taxes,
grants, donations, and interest revenue are all considered to be susceptible to accrual. 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.
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 fund balance available to finance the program.
It is the City’s policy to first apply cost-reimbursement grant resources to such programs, followed by
categorical block grants, and then by general revenues.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
33
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
Proprietary fund financial statements - Proprietary funds are used to account for operations that are (a)
financed and operated in a manner similar to private business enterprises - where the intent of the
governing body is that the costs (expenses, including depreciation) 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 and Elmore Counties are assessed by the Tax Assessors and collected by the Tax Collectors
of the counties. The counties’ property tax calendars require the Tax Assessors 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 Collectors are remitted to the City on a monthly
basis.
Receivables - Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the
current portion of interfund 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.” Any residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as “internal balances.”
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.
Accounts receivable in the proprietary funds consist of monthly billings to customers for services
provided. The City extends credit to its customers, who are located primarily in Prattville, Alabama.
Trade accounts receivable are stated at the amount management expects to collect from balances
outstanding at year-end. Based on management's assessment of the credit history with customers
having outstanding balances and current relationships with them, it has concluded that realization losses
on balances outstanding at year-end will be immaterial; therefore, no allowance for doubtful accounts
has been provided.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
34
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
Prepaid items - Certain payments to vendors reflect costs applicable to future accounting periods and
are recorded as prepaid items in both government-wide and fund financial statements. The cost of
prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
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, 2017; therefore,
none are reported on the statement of net position.
Restricted assets - Resources from federal and state grants/loans, appropriations and shared taxes, and
drug confiscation proceeds are classified as restricted assets on the balance sheet.
Certain resources from federal and state grants set aside for airport improvements are classified as
restricted assets on the statement of net position of the Prattville Airport Authority because their use is
limited by their funding agreement.
Capital assets - Capital assets, which include property, plant, equipment, and infrastructure assets (e.g.
roads, bridges, sidewalks, and similar items), are reported in the applicable 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
acquisition value on the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets’ lives are not capitalized. Capital assets of the primary government and the Autauga-Prattville
Public Library, a component unit, are depreciated using the straight-line method over the following
estimated useful lives:
ESTIMATED CAPITALIZATION
ASSET CLASS USEFUL LIVES THRESHOLD
Buildings and building
improvements 40 years 25,000$
Land improvements 20 years 25,000
Vehicles 5 - 15 years 5,000
Office, nonoffice, and
computer equipment 5 - 20 years 5,000
Infrastructure 50 years 50,000
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
35
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
Capital assets of the Prattville Airport Authority, a component unit, are depreciated using the straight-
line method over the following estimated useful lives:
ESTIMATED CAPITALIZATION
ASSET CLASS USEFUL LIVES THRESHOLD
Land improvements 20 years 5,000$
Building and improvements 3 - 40 years 5,000
Furniture and equipment 5 - 20 years 5,000
Runways 8 - 25 years 5,000
Capital assets of the Historic Prattville Redevelopment Authority, a component unit, are depreciated
using the straight-line method of depreciation over the following estimated useful lives:
ESTIMATED CAPITALIZATION
ASSET CLASS USEFUL LIVES THRESHOLD
Machinery and equipment 5 - 10 years 5,000$
Land improvements 20 years 25,000
Buildings 40 years 25,000
The City has historical assets including statues and fountains that are not capitalized, in accordance
with established criteria. Specifically, the historical assets are held for reasons other than financial gain.
The assets are protected, kept unencumbered, cared for and preserved, and are subject to a City policy
requiring that sales proceeds from any historical assets be used to acquire similar assets.
Deferred outflows of resources - Decreases in net position 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 qualify 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 position that apply to a future period(s) are reported as
deferred inflows of resources in a separate section of the government-wide statement of net position
and/or governmental funds’ balance sheet. The Library has one item that qualifies for reporting in this
category. In the government-wide statement of activities for the Library, a deferred inflow of resources
is reported for pension related items. This amount is deferred and recognized as an inflow of resources
in the period that the amounts become earned.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
36
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
In addition, the City’s governmental funds report unavailable revenues from receivables collected
outside of the period of availabilty. These amounts are deferred and recognized as an inflow of
resources in the period that the amounts become available.
Compensated absences - The City allows employees to accumulate vacation and sick leave up to certain
limits for use in subsequent periods. Upon termination of employment, an employee receives payment
of accumulated vacation hours up to a 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 position.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective
interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond
issuance costs other than prepaid insurance are expensed when incurred.
In the fund financial 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 obligations - Capital lease obligations are stated at the original fair market value of leased assets
capitalized, less payments since the inception of the lease discounted at the implicit rate of interest in
the lease. Also, in the year an asset is acquired by capital lease, the expenditure for the asset and the
offsetting amount of the financing source are reflected in the fund financial statements in the statement
of revenues, expenditures, and changes in fund balances. Capital lease obligations of governmental
activities in the government-wide financial statements and the cost of assets so acquired are reflected
in the accounts of those statements. Capital lease obligations of business-type activities in the
government-wide financial statements and proprietary fund type financial statements and the cost of
assets so acquired are reflected in the accounts of those funds and statements.
Fund balance - In accordance with Governmental Accounting Standards Board Statement 54, Fund
Balance Reporting and Governmental Fund Type Definitions, the City classifies government fund
balance as follows:
Nonspendable - includes fund balance amounts that cannot be spent either because it is not
in spendable form, or for legal or contractual requirements. This would include
inventories, deposits, and prepaid items.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
37
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued)
Restricted - includes fund balance amounts that are constrained for specific purposes which
are externally imposed by providers, such as creditors, or amounts constrained due to
constitutional provisions or enabling legislation.
Committed - includes fund balance amounts that can be used only for the specific purposes
that are internally imposed by formal action of the government’s highest level of decision
making authority. Commitments may be 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 fund have been specifically committed for use in
satisfying 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.
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 are prepared in accordance with requirements of the
Governmental 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.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
38
NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY:
Budgets and budgetary accounting - The budget is adopted annually at the beginning of each fiscal year
for the general fund, gas tax special revenue fund, capital projects fund, debt service fund, and judicial
special revenue fund. The Council must approve transfers of appropriations or revisions between and
among departments. Management can approve transfers within an individual department only. Actual
expenditures should not exceed appropriations in departments. During 2017, the general government
excess of expenditures over budget was primarily due to under budgeted service provider costs in the
Information Technology department and under budgeted appropriations.
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.
GENERAL
FUND
Net change in fund balance, modified accrual basis 1,323,468$
Encumbrances at beginning of the year (839,550)
Encumbrances at end of the year 281,574
Net change in fund balance, budgetary basis 765,492$
JUDICIAL SPECIAL
REVENUE FUND
Net change in fund balance, modified accrual basis (29,891)$
Encumbrances at beginning of the year
Encumbrances at end of the year (17,352)
Net change in fund balance, budgetary basis (47,243)$
Deficit net position - The City had a deficit unrestricted net position at September 30, 2017 of
$22,997,654. This deficit represents the indebtedness incurred for incentive obligations including the
purchase of development property supporting the significant retail development activities within the
City which originated in the fiscal years ended 2006 and 2008. In 2015, the deficit increased because
of the adoption of GASB Statement No. 68 and recognition of the net pension liability. See Note 8.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
39
NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY: (continued)
Deficit fund equity - Funds with deficit fund balance or net position are as follows:
DEFICIT
AMOUNT
Judicial special revenue fund 43,775$
Sanitation fund 26,576
Internal service fund 257,237
The deficits in the judicial special revenue fund and sanitation fund are the result of current year
expenditures exceeding revenues and a net transfer out. The deficit in the internal service fund is a
result of actual costs exceeding the amounts charged to other departments in previous years. The City’s
intent is to appropriate funds from the general fund in order to reduce the deficits and to increase the
contribution rates to the internal service fund.
NOTE 3 - CASH, CASH EQUIVALENTS, AND INVESTMENTS:
Deposits - Custodial credit risk - The City’s investment policy requires that bank deposits be fully
insured by the Federal Deposit Insurance Corporation or be covered under the Security for Alabama
Funds Enhancement (SAFE) Program. The SAFE program is a multiple financial collateral pool
administered by the State Treasurer according to State of Alabama statute.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
40
NOTE 4 - CAPITAL ASSETS:
Capital asset activity for the City’s governmental activities for the year ended September 30, 2017 was
as follows:
BEGINNING ENDING
BALANCE INCREASE DECREASE BALANCE
Governmental activities:
Capital assets, not being
depreciated:
Construction in progress 534,225$ 3,124,910$ 369,159$ 3,289,976$
Land 2,719,938 2,719,938
Total capital assets, not
being depreciated 3,254,163 3,124,910 369,159 6,009,914
Capital assets, being depreciated:
Buildings and building
improvements 5,184,791 52,700 5,237,491
Land improvements 6,131,039 6,131,039
Vehicles 6,163,827 1,354,157 458,923 7,059,061
Office, nonoffice, and
computer equipment 5,561,782 720,767 186,801 6,095,748
Infrastructure 51,788,848 3,435,159 55,224,007
Total capital assets,
being depreciated 74,830,287 5,562,783 645,724 79,747,346
Less accumulated depreciation for:
Buildings and building
improvements 1,567,171 136,579 1,703,750
Land improvements 5,379,567 109,404 5,488,971
Vehicles 3,753,950 886,559 434,748 4,205,761
Office, nonoffice, and
computer equipment 3,579,110 412,459 173,389 3,818,180
Infrastructure 9,844,767 1,085,061 10,929,828
Total accumulated
depreciation 24,124,565 2,630,062 608,137 26,146,490
Total capital assets,
being depreciated, net 50,705,722 2,932,721 37,587 53,600,856
Governmental activities
capital assets, net 53,959,885$ 6,057,631$ 406,746$ 59,610,770$
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
41
NOTE 4 - CAPITAL ASSETS: (continued)
Capital asset activity for the City’s business-type activities for the year ended September 30, 2017 was
as follows:
BEGINNING ENDING
BALANCE INCREASE DECREASE BALANCE
Business-type activities:
Capital assets, not being
depreciated:
Construction in progress 732,533$ 2,130,702$ 2,863,235$
Land 1,257,019 1,257,019
Total capital assets, not
being depreciated 1,989,552 2,130,702 4,120,254
Capital assets, being depreciated:
Buildings and building
improvements 6,770,754 43,000 6,813,754
Land improvements 3,270,920 8,070$ 3,262,850
Vehicles 3,194,942 467,651 660,271 3,002,322
Office, nonoffice, and
computer equipment 1,829,238 69,710 688,054 1,210,894
Total capital assets,
being depreciated 15,065,854 580,361 1,356,395 14,289,820
Less accumulated depreciation for:
Buildings and building
improvements 3,034,180 171,525 3,205,705
Land improvements 1,951,994 142,433 8,070 2,086,357
Vehicles 1,502,397 480,670 654,664 1,328,403
Office, nonoffice, and
computer equipment 1,415,518 104,361 675,089 844,790
Total accumulated
depreciation 7,904,089 898,989 1,337,823 7,465,255
Total capital assets,
being depreciated, net 7,161,765 (318,628) 18,572 6,824,565
Business-type activities
capital assets, net 9,151,317$ 1,812,074$ 18,572$ 10,944,819$
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
42
NOTE 4 - CAPITAL ASSETS: (continued)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government 1,136,502$
Public works 470,732
Public safety 862,078
Cultural and recreational 160,750
Total depreciation expense - governmental activities 2,630,062$
Business-type activities:
Sanitation 402,487$
Wastewater 496,502
Total depreciation expense - business-type activities 898,989$
Component units - Capital asset activity for the Autauga-Prattville Public Library for the fiscal year
ended September 30, 2017 is as follows:
BEGINNING ENDING
BALANCE INCREASE DECREASE BALANCE
Capital assets, being depreciated:
Equipment 160,475$ 11,437$ 149,038$
Total capital assets,
being depreciated 160,475 11,437 149,038
Less: Accumulated depreciation 123,920 7,161$ 11,437 119,644
Total capital assets,
being depreciated, net 36,555$ (7,161)$ -$ 29,394$
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
43
NOTE 4 - CAPITAL ASSETS: (continued)
Capital asset activity for the Prattville Airport Authority for the fiscal year ended September 30, 2017
is as follows:
BEGINNING ENDING
BALANCE INCREASE DECREASE BALANCE
Capital assets, not being depreciated:
Land 2,687,332$ 392,335$ 3,079,667$
Total capital assets,
not being depreciated 2,687,332 392,335 3,079,667
Capital assets, being depreciated:
Land improvements 1,495,301 1,495,301
Runways 6,708,698 6,708,698
Building improvements 1,411,009 1,411,009
Furniture and equipment 494,422 494,422
Total capital assets,
being depreciated 10,109,430 10,109,430
Less: Accumulated depreciation
Land improvements 784,672 74,765 859,437
Runways 3,264,008 233,306 3,497,314
Building improvements 530,692 32,214 562,906
Furniture and equipment 116,996 24,845 141,841
Total accumulated depreciation 4,696,368 365,130 5,061,498
Total capital assets,
being depreciated, net 5,413,062 (365,130) 5,047,932
Total capital assets, net 8,100,394$ 27,205$ -$ 8,127,599$
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
44
NOTE 4 - CAPITAL ASSETS: (continued)
Capital asset activity for the Historic Prattville Redevelopment Authority for the fiscal year ended
September 30, 2017 is as follows:
BEGINNING ENDING
BALANCE INCREASE DECREASE BALANCE
Capital assets, not being depreciated:
Land 184,500$ 955,250$ 1,139,750$
Construction in progress 3,480,708 863,061 3,453,160$ 890,609
Total capital assets,
not being depreciated 3,665,208 1,818,311 3,453,160 2,030,359
Capital assets, being depreciated:
Land improvements 12,000 153,499 165,499
Building improvements 285,000 2,344,411 2,629,411
Machinery and equipment 23,000 23,000
Total capital assets,
being depreciated 320,000 2,497,910 2,817,910
Less: Accumulated depreciation 108,758 40,868 149,626
Total capital assets,
being depreciated, net 211,242 2,457,042 2,668,284
Total capital assets, net 3,876,450$ 4,275,353$ 3,453,160$ 4,698,643$
NOTE 5 - INTERFUND BALANCES:
Interfund transactions are generally used to meet cash demands necessary to pay operating
expenditures. These amounts should be repaid during the next fiscal year. Amounts reported in the
fund financial statements as interfund receivables and payables are eliminated in the entity-wide
governmental column of the statement of net position, except for the net residual amounts due between
governmental and business-type activities, which are presented as internal balances.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
45
NOTE 5 - INTERFUND BALANCES: (continued)
The composition of interfund receivables and payables as of September 30, 2017 consists of the
following:
RECEIVABLE FUND PAYABLE FUND AMOUNT
General Judicial fund 24,925$
General Sanitation 449,898
General Wastewater 137,539
General Internal service fund 10
Capital projects fund General 25,476
Total 637,848$
The following is a schedule of interfund transfers for the year ended September 30, 2017:
TRANSFER OUT
CAPITAL DEBT JUDICIAL
GENERAL PROJECTS SERVICE SPECIAL
FUND FUND FUND REVENUE FUND
General fund 388,480$ 6,210,905$ 7,067$
Capital projects fund 66,671$
Judicial special revenue fund 54
Sanitation fund 2,690
Wastewater fund 47,384
Totals 66,725$ 438,554$ 6,210,905$ 7,067$
TRANSFER IN
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
46
NOTE 5 - INTERFUND BALANCES: (continued)
TRANSFER OUT
GAS TAX INTERNAL
SPECIAL SANITATION SERVICE
REVENUE FUND FUND FUND TOTAL
General fund 91,037$ 59$ 3,067,661$ 9,765,209$
Capital projects fund 9,000 75,671
Judicial special revenue fund 52,200 52,254
Sanitation fund 287,100 289,790
Wastewater fund 208,800 256,184
Totals 100,037$ 59$ 3,615,761$ 10,439,108$
TRANSFER IN
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.
NOTE 6 - LONG-TERM DEBT:
State statute limits the amount of long-term debt the City can incur. The amount of debt applicable to
this limit during a year can be no greater than 20% of the assessed value of taxable property as of the
beginning of the fiscal year. As of September 30, 2017, the amount of outstanding debt applicable to
this limit was equal to 8.44% of property assessments as of October 1, 2016.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
47
NOTE 6 - LONG-TERM DEBT: (continued)
Long-term liability activity for the year ended September 30, 2017, was as follows:
DUE
WITHIN
BEGINNING ENDING ONE
BALANCE ADDITIONS REDUCTIONS BALANCE YEAR
Governmental activities:
Warrant and other notes payable 37,035,000$ 240,000$ 5,525,000$ 31,750,000$ 2,825,000$
Limited obligation warrant 1,529,406 16,232 1,513,174
Less deferred amounts:
Debt issuance discounts (65,185) (8,035) (57,150)
Add deferred amounts:
Debt issuance premiums 1,334,988 261,593 1,073,395
Total warrants and
other notes payable 39,834,209 240,000 5,794,790 34,279,419 2,825,000
Capital leases 206,620 726,905 51,362 882,163 112,202
Compensated absences 1,127,036 574,453 567,089 1,134,400 208,762
Post-employment benefits other
than pensions 3,133,192 492,025 39,289 3,585,928
Net pension liability 12,230,870 4,804,919 2,187,819 14,847,970
Governmental activities long-term
liabilities 56,531,927 6,838,302 8,640,349 54,729,880 3,145,964
Business-type activities:
General obligation warrants 1,783,718 383,307 1,400,411 400,792
Compensated absences 156,877 75,226 64,878 167,225 79,104
Net pension liability 1,777,382 627,849 285,878 2,119,353
Business-type activities
long-term liabilities 3,717,977 703,075 734,063 3,686,989 479,896
Total long-term debt 60,249,904$ 7,541,377$ 9,374,412$ 58,416,869$ 3,625,860$
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
48
NOTE 6 - LONG-TERM DEBT: (continued)
Warrants and other notes payable at September 30, 2017 consists of the following:
Governmental activities:
TOTAL
General Obligation Chevron Warrants Series 2009A; principal amount
$1,820,000; graduated principal payments are due annually beginning on
December 1, 2010 and semiannualinterest payments due each June 1 and
December 1, beginning June 1,2010; interest rate ranges from 2.2% to
4.5%; rate on current bonds 2.2%; final payment is due December 1,
2029. Proceeds used for the acquisition, construction, installation, and
equipping of certain energy efficient improvements. 1,550,000$
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 1
and March 1, beginning September 30, 2013; interest rate ranges from
.80% to 2.75%; rate on current bonds 2.00%; final payment is due March
1, 2027. Proceeds used for the partial refunding of the Series 2006A
General Obligation Economic Development Improvement Warrants. 9,185,000
General Obligation Refunding Warrants Series 2014A; principal amount
$9,955,000; graduated principal payments are due annually beginning on
March 1, 2015 and semiannual interest payments due each September 1
and March 1, beginning March 1, 2015; interest rate ranges from 1.55% to
4.00%; rate on current bonds 2.00%; final payment is due March 1, 2026.
Proceeds used for the partial refunding of the Series 2007 General
Obligation Economic Development Improvement Warrants. 9,310,000
General Obligation Refunding Warrants Series 2015; principal amount
$12,280,000; graduated principal payments are due annually beginning
November 1, 2015 and semiannualinterest payments due each November
1 and May 1, beginning November 1, 2015; interest rate ranges from 1.5%
to 5.0%; 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 Improvement Warrants and partial
refunding of the Series 2006B General Obligation Economic Development
Improvement Warrants. 11,065,000
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
49
NOTE 6 - LONG-TERM DEBT: (continued)
TOTAL
Special Authority Loan with Alabama Water Pollution Control Authority
and Alabama Department of Environmental Management; principal
amount $825,000; graduated principal payments due annually beginning
February 15, 2017 and semiannual interest payments due each February
15 and August 15, beginning February 15, 2017; interest rate 1.45% from
July 15, 2016 to October 31, 2016 and 2.20% thereafter; final payment is
February 15, 2036; partial principal forgiveness of $410,000 as of August
1, 2017 per the terms of the agreement; includes issuance of General
Obligation Warrants Series 2016-CWSRF-DL totaling $415,000 as
evidence of indebtedness. Proceeds will be used for the North Silver Hills
Drainage Canal Restoration. 400,000$
General Obligation Warrants Series 2017-CWSRF-DL Special Authority
Loan with Alabama Water Pollution Control Authority and Alabama
Department of Environmental Management; principal amount $240,000;
graduated principal payments due annually beginning February 15, 2019
and semiannual interest payments due each February 15 and August 15,
beginning August 15, 2018; interest rate 1.45% from April 1, 2017 to
March 30, 2018 and 2.20% thereafter; final payment is February 15, 2038;
Proceeds will be used for the Woodvale Drainage Project. 240,000
Total governmental activities 31,750,000
Business-type activities:
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%; 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. 392,928
General Obligation Revenue Warrant, Series 2016;principal amount of
$1,360,415; monthly principal and interest payments of $23,543 due
monthly beginning on June 27, 2016; interest rate of 1.49%; final maturity
date is May 27, 2021. Proceeds were used to purchase sanitation trucks. 1,007,483
Total business-type activities 1,400,411
Total general obligation warrants 33,150,411$
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
50
NOTE 6 - LONG-TERM DEBT: (continued)
Limited obligation warrant - The City issued Limited Obligation Warrant, Series 2006B in the amount
of $1,594,489 for the construction of infrastructure. The warrant bears a 0% interest rate and matures
on August 1, 2036. The warrant was issued pursuant to an agreement with a private entity for the
construction of infrastructure. Repayment of the warrant is secured by a pledge of 75% of the sales tax
revenue remitted by retail establishments located on the specified property. As of September 30, 2017,
the City had redeemed $81,315 of the outstanding warrants. The balance on the warrant at
September 30, 2017 is $1,513,174.
The Limited Obligation Warrant does not constitute a direct obligation and pledge of the full faith and
credit of the City.
Debt service requirements on long-term debt at September 30, 2017 are as follows:
PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL
YEAR ENDING
SEPTEMBER 30:
2018 3,225,792$ 932,720$ 4,158,512$ 2,825,000$ 912,154$ 3,737,154$ 400,792$ 20,566$ 421,358$
2019 3,332,776 840,934 4,173,710 2,925,000 827,358 3,752,358 407,776 13,576 421,352
2020 3,434,551 743,750 4,178,301 3,030,000 737,288 3,767,288 404,551 6,462 411,013
2021 3,302,292 660,434 3,962,726 3,115,000 659,386 3,774,386 187,292 1,048 188,340
2022 3,210,000 568,041 3,778,041 3,210,000 568,041 3,778,041
2023 - 2027 15,750,000 1,280,782 17,030,782 15,750,000 1,280,782 17,030,782
2028 - 2032 705,000 66,584 771,584 705,000 66,584 771,584
2033 - 2037 175,000 10,340 185,340 175,000 10,340 185,340
2038 15,000 328 15,328 15,000 329 15,329
Totals 33,150,411$ 5,103,914$ 38,254,325$ 31,750,000$ 5,062,262$ 36,812,262$ 1,400,411$ 41,652$ 1,442,063$
TOTAL ANNUAL REQUIREMENTS GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
Capital leases - The City has entered into lease agreements as lessee for financing the acquisition of
property and equipment. These lease agreements qualify as capital leases for accounting purposes and,
therefore, have been recorded at the present value of their future minimum lease payments as of the
inception date.
The assets acquired through capital leases are as follows:
GOVERNMENTAL
ASSET ACTIVITIES
Vehicles 985,215$
Less: Accumulated depreciation 126,905
Total 858,310$
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
51
NOTE 6 - LONG-TERM DEBT: (continued)
The future minimum lease obligations and the net present value of these minimum lease payments as
of September 30, 2017, were as follows:
YEAR ENDING SEPTEMBER 30: AMOUNT
2018 138,591$
2019 138,591
2020 138,591
2021 84,218
2022 84,218
2023 - 2027 421,093
Total minimum lease payments 1,005,302
Less amount representing interest 123,139
Present value of minimum lease payments 882,163$
GOVERNMENTAL ACTIVITIES
Other long-term debt - Compensated absences, pension benefits, post-employment benefits other than
pensions, and other governmental activity obligations are generally liquidated by the general fund.
Component units - The Prattville Airport Authority’s capital debt at September 30, 2017 is as follows:
Revenue and Grant Anticipation Bond Series 2014 -
River Bank & Trust; $551,266; interest rate of 4.69%
until April 1, 2029; principal and interest due monthly
beginning May 22, 2014; secured by pledge of all 457,842$
Total long-term capital debt 457,842$
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
52
NOTE 6 - LONG-TERM DEBT: (continued)
Maturities on capital debt are as follows:
PRINCIPAL INTEREST TOTAL
YEAR ENDING SEPTEMBER 30:
2018 30,375$ 21,112$ 51,487$
2019 31,852 19,635 51,487
2020 33,349 18,138 51,487
2021 35,021 16,466 51,487
2022 36,723 14,764 51,487
2023 - 2027 212,148 45,287 257,435
2028 - 2029 78,374 3,134 81,508
Totals 457,842$ 138,536$ 596,378$
CITY OF PRATTVILLE AIRPORT AUTHORITY
Total interest cost on capital debt in 2017 was $24,374.
Capital debt activity for the year ended September 30, 2017 for the Prattville Airport Authority was as
follows:
BEGINNING ENDING DUE WITHIN
BALANCE ADDITIONS REDUCTIONS BALANCE ONE YEAR
Revenue and grant anticipation
bond - River Bank & Trust 486,810$ 28,968$ 457,842$ 30,375$
Totals 486,810$ -$ 28,968$ 457,842$ 30,375$
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
53
NOTE 6 - LONG-TERM DEBT: (continued)
The Historic Prattville Redevelopment Authority's notes payable at September 30, 2017 are as
follows:
Trustmark National Bank secured by real estate; monthly principaland
interest payments of $1,811; interest rate of 4.34%; final maturity date
is December 5, 2019. Proceeds used to purchase real estate. 93,060$
Trustmark National Bank unsecured; monthly principal and interest
payments of $291; interest rate of 4.34%; maturity date of
December 15, 2019. 7,456
Series 2016 Redevelopment Bonds; principal amount of $4,780,000;
graduated principal payments due annually beginning March 1, 2017 and
semiannual interest payments due each September 1 and March 1,
beginning September 1, 2016; interest rate ranges from 1.700% to
3.625%; final payment is due March 1, 2046. A portion of the proceeds
were used to redeem an outstanding loan of $1,755,250 during fiscal
year 2016 and the remainder was used to renovate the administrative
building which is leased to the City of Prattville, Alabama. 4,670,000
Total 4,770,516$
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
54
NOTE 6 - LONG-TERM DEBT: (continued)
Notes payable maturities at September 30, 2017 are as follows:
PRINCIPAL INTEREST TOTAL
YEAR ENDING SEPTEMBER 30:
2018 136,232$ 137,563$ 273,795$
2019 137,185 134,310 271,495
2020 172,099 129,573 301,672
2021 120,000 126,616 246,616
2022 120,000 124,396 244,396
2023 - 2027 645,000 586,425 1,231,425
2028 - 2032 725,000 508,051 1,233,051
2033 - 2037 825,000 401,693 1,226,693
2038 - 2042 975,000 254,788 1,229,788
2043 - 2046 915,000 67,878 982,878
Totals 4,770,516$ 2,471,293$ 7,241,809$
HISTORIC PRATTVILLE
REDEVELOPMENT AUTHORITY
Long-term debt activity for the Historic Prattville Redevelopment Authority for the year ended
September 30, 2017, was as follows:
BEGINNING ENDING DUE WITHIN
BALANCE ADDITIONS REDUCTIONS BALANCE ONE YEAR
Redevelopment bonds 4,780,000$ 110,000$ 4,670,000$ 115,000$
Notes payable 120,836 20,320 100,516 21,232
Less deferred amounts:
Debt issuance discounts (60,313) (3,409) (56,904)
Totals 4,840,523$ -$ 126,911$ 4,713,612$ 136,232$
NOTE 7 - NOTES PAYABLE:
The City issued General Obligation Note, Series 2011A dated May 1, 2011 in the amount of
$1,000,000. The proceeds of the note were used as a line of credit for paying operation expenditures
as needed for the City. The line of credit was most recently renewed on June 30, 2017 with a maturity
date of June 30, 2018. The line of credit bears interest at 2.75%, with interest due monthly. At
September 30, 2017, the balance of the loan had been paid in full. On October 10, 2017, the City
entered into an agreement to increase the available amount on the line of credit to $4,000,000 with
interest and maturity terms remaining the same.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
55
NOTE 8 - PENSION PLAN:
Plan description - The Employees' Retirement System of Alabama (ERS), an agency multiple-employer
plan, was established October 1, 1945 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:
1) The Governor, ex officio.
2) 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.
6) Six members of ERS who are elected by members from the same category of ERS for a
term of four years as follows:
a. 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.
b. Two vested active state employees.
c. Two vested active employees of an employer participating in ERS pursuant to
§ 36-27-6.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
56
NOTE 8 - PENSION PLAN: (continued)
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 10
years of creditable service. State employees who retire after age 60 (52 for State Police) with 10 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 10 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 10 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 1, 2013. Tier 2 ERS members are eligible for retirement after age 62 (56 for State Police)
with 10 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 10 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 10 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.
The ERS membership includes approximately 85,874 participants, and the City’s membership includes
464 participants. As of September 30, 2016, membership consisted of:
ERS CITY
Retirement and beneficiaries currently receiving benefits 23,007 108
Terminated vested employees 1,155 3
Terminated non-vested employees 6,654 25
Active members 54,823 328
Post-DROP retired members still in active service 235
Totals 85,874 464
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
57
NOTE 8 - PENSION PLAN: (continued)
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 1, 2011 to September 30, 2012, covered
members of the ERS were required by statute to contribute 7.25% of earnable compensation. Effective
October 1, 2012, 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 1, 2011 to September 30, 2012, certified law enforcement, correctional officers, and
firefighters of the ERS were required by statute to contribute 8.25% of earnable compensation.
Effective October 1, 2012, certified law enforcement, correctional officers, and firefighters of the ERS
are required by statute to contribute 8.50% of earnable 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. Tier 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 earnable 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 earned by employees during the year, with additional amounts to finance any unfunded accrued
liability, the pre-retirement death benefit, and administrative expenses of the Plan. For the year ended
September 30, 2017, the City’s average active employee contribution rate was 5.82% of covered
employee payroll, and the City’s average employer contribution rate to fund the normal and accrued
liability costs was 8.90% of covered employee payroll.
The City’s contractually required contribution rate for the year ended September 30, 2017 was 9.54%
of pensionable pay for Tier 1 employees, and 6.76% of pensionable pay for Tier 2 employees. These
required contribution rates are based upon the actuarial valuation dated September 30, 2014, a percent
of annual pensionable payroll, and actuarially determined as an amount that, when combined 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 $1,296,995 for the year ended September 30, 2017.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
58
NOTE 8 - PENSION PLAN: (continued)
The City’s net pension liability was measured as of September 30, 2016, and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of
September 30, 2015 rolled forward to September 30, 2016 using standard roll-forward techniques
as shown in the following table:
ACTUAL 2015 ACTUAL 2016
VALUATION VALUATION
EXPECTED ASSUMPTIONS ASSUMPTIONS
(a) Total pension liability as of September 30, 2015 51,970,374$ 52,741,132$ 55,571,999$
(b) Discount rate 8.00% 8.00% 7.75%
(c) Entry age normal cost for 1,252,658 1,252,658 1,285,371
October 1, 2015 - September 30, 2016
(d) Transfers among employees (33,807) (33,807)
(e) Actual benefit payments and refunds for
October 1, 2015 - September 30, 2016 (2,473,697) (2,473,697) (2,473,697)
(f) Total pension liability as of September 30, 2016
= [(a) x (1+(b))] + (c) + (d) + [(e) x (1+0.5*(b))] 54,808,017$ 55,606,629$ 58,560,840$
(g) Difference between expected and actual 798,612$
(h) Less liability transferred for immediate recognition (33,807)
(i) Experience (gain)/loss = (g) - (h) 832,419$
(j) Difference between actual (2015 assumptions)
and actual (2016 assumptions):
Assumptions Change (gain)/loss 2,954,211$
Actuarial assumptions - The total pension liability as of September 30, 2016 was determined based on
the annual actuarial funding valuation report prepared as of September 30, 2015. The key actuarial
actuarial assumptions used in the valuation are summarized below:
Inflation 2.75%
Salary increases 3.25% - 5.00%
Investment rate of return * 7.75%
* Net of pension plan investment expense, including inflation
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
59
NOTE 8 - PENSION PLAN: (continued)
Mortality rates were based on the sex distinct RP-2000 Blue Collar Mortality Table Projected with
Scale BB to 2020 with an adjustment of 125% at all ages for males and 120% for females at ages on
and after age 78. The rates of mortality for the period after disability retirement are according to the
sex distinct RP-2000 Disabled Retiree Mortality Table Projected with Scale BB to 2020 with an
adjustment of 130% at all ages for females.
The actuarial assumptions used in the September 30, 2015 valuation were based on the results of an
actuarial experience study for the period October 1, 2010 to September 30, 2015.
The long-term expected rate of return on pension plan investments 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 return 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:
LONG-TERM
EXPECTED
TARGET RATE OF
ALLOCATION RETURN *
Fixed income 17.0% 4.4%
U.S. large stocks 32.0% 8.0%
U.S. mid stocks 9.0% 10.0%
U.S. small stocks 4.0% 11.0%
International developed market stocks 12.0% 9.5%
International emerging stocks 3.0% 11.0%
Alternatives 10.0% 10.1%
Real estate 10.0% 7.5%
Cash equivalents 3.0% 1.5%
Total 100.00%
* Includes assumed rate of inflation of 2.50%.
Discount rate - The discount rate used to measure the total pension liability was the long-term rate of
return, 7.75%. 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.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
60
NOTE 8 - PENSION PLAN: (continued)
Projected future benefit payments for all current plan members were projected for all years. Based on
those assumptions, each employer’s fiduciary net position was 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, and a municipal bond rate was not used in determining the
discount rate.
TOTAL PLAN NET
PENSION FIDUCIARY PENSION
LIABILITY NET POSITION LIABILITY
(a) (b) (a)-(b)
Balances at September 30, 2015 51,970,374$ 37,962,122$ 14,008,252$
Changes for the year:
Service cost 1,252,658 1,252,658
Interest 4,058,682 4,058,682
Changes of assumptions 2,954,211 2,954,211
Difference between expected and
actual experience 832,419 832,419
Contributions - employer 1,381,338 (1,381,338)
Contributions - employee 902,821 (902,821)
Net investment income 3,854,740 (3,854,740)
Benefit payments, including refunds
(2,473,697) (2,473,697)
Transfer among employers (33,807) (33,807)
Net changes 6,590,466 3,631,395 2,959,071
Balances at September 30, 2016 58,560,840$ 41,593,517$ 16,967,323$
INCREASE (DECREASE)
of employee contributions
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 7.75%, 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 1-percentage point lower (6.75%) or 1-percentage point higher (8.75%) than the current rate:
1.00% CURRENT 1.00%
DECREASE RATE INCREASE
(6.75%) (7.75%) (8.75%)
City's net pension liability 24,332,156$ 16,967,323$ 10,777,928$
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
61
NOTE 8 - PENSION PLAN: (continued)
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, 2016. The supporting actuarial information is included in the GASB Statement
No. 68 Report for the ERS prepared as of September 30, 2016. The auditor's report dated
September 18, 2017 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.
For the year ended September 30, 2017, the City recognized pension expense of $1,950,797. At
September 30, 2017, the City reported deferred outflows of resources and deferred inflows of resources
related to pensions of the following sources:
DEFERRED
OUTFLOWS OF
RESOURCES
Differences between expected and actual experience 296,078$
Changes of assumptions 2,549,525
Net differences between projected and actual
earnings on plan investments 336,390
Employer contributions subsequent to the
measurement date 1,296,995
Totals 4,478,988$
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
62
NOTE 8 - PENSION PLAN: (continued)
Amounts reported as deferred inflows and outflows of resources to pensions will be recognized in
pension expense as follows:
YEAR ENDED SEPTEMBER 30:
515,415$
515,416
788,001
273,694
439,034
Thereafter 650,433
2018
2019
2020
2021
2022
NOTE 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS:
The City of Prattville, Alabama 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.
Plan description - The City of Prattville, Alabama’s medical benefits are provided through a
comprehensive medical plan and are made available to employees upon actual retirement.
The employees are covered by the Retirement System of Alabama and must meet the eligibility
provisions adopted by resolution to receive retiree medical benefits. The earliest retirement eligibility
provisions are as follows: 25 years of service at any 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.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
63
NOTE 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS: (continued)
The number of participants as of October 1, 2016, the effective date of the biannual actuarial
valuation, are as follows:
NUMBER OF
ENROLLEES
Active employees 353
Retired employees 13
Total 366
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, Alabama’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, 2017, the City of Prattville, Alabama’s portion of health care funding
cost for retired employees totaled $39,289. These amounts were applied toward the net OPEB
obligation as shown in the table below.
Annual required contribution - The City of Prattville, Alabama’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 1, 2016 is $547,890, as set forth as follows:
MEDICAL
Normal cost 269,648$
30 year unfunded AAL amortization amount 278,242
Annual required contribution (ARC) 547,890$
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
64
NOTE 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS: (continued)
Net post-employment benefit obligation (asset) - The following table shows the components of the
annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City’s
net OPEB obligation:
MEDICAL
Annual required contribution 547,890$
Interest on net OPEB obligation 125,328
Adjustment to annual required contribution (181,193)
Annual OPEB cost 492,025
Contributions made 0
Current year retiree premium (39,289)
Increase in net OPEB obligation 452,736
Net OPEB obligation - beginning of year 3,133,192
Net OPEB obligation - end of year 3,585,928$
The City’s annual OPEB cost, percentage of the cost contributed, and the net OPEB obligation for fiscal
year 2017 and the previous two years is as follows:
PERCENTAGE
POST- OF ANNUAL
EMPLOYMENT FISCAL YEAR ANNUAL COST NET OPEB
BENEFIT ENDED OPEB COST CONTRIBUTED OBLIGATION
Medical September 30, 2015 405,227$ 5.54% 2,741,136$
Medical September 30, 2016 416,294 5.82% 3,133,192
Medical September 30, 2017 492,025 7.99% 3,585,928
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
65
NOTE 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS: (continued)
Funded status and funding progress - As of September 20, 2017, the actuarial accrued liability for
benefits was $5,003,927 all of which was unfunded. The covered payroll (annual payroll of active
employees covered by the plan) was $14,972,324 and the ratio of the unfunded actuarial liability to the
covered payroll was 33.42% as presented in the following table:
MEDICAL
Actuarial accrued liability (AAL) 5,003,927$
Actuarial value of plan assets 0
Unfunded actuarial accrued liability (UAAL) 5,003,927$
Funded ratio (Actuarial value assets/AAL) 0%
Covered payroll (active plan members) 14,972,324$
UAAL as a percentage of covered payroll 33.42%
Actuarial methods and assumptions - Actuarial valuations involve estimates of the value of reported
amounts and assumptions about the probability of events far into the future. The actuarial valuation
for post-employment benefits includes estimates and assumptions regarding (1) turnover 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 of assets.
Actuarial cost method - The ARC is determined using the projected unit credit actuarial cost method.
The employer portion of the cost for retiree medical care in each future year is determined by projecting
the current cost levels using the healthcare cost trend rate and discounting this projected amount to the
valuation date using the other described pertinent actuarial assumptions, including the investment return
assumption (discount rate), mortality, and turnover.
Actuarial value of plan assets - There are no 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.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
66
NOTE 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS: (continued)
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 turnover of
approximately 9%. It has further been assumed that 10% of retirees decline coverage because of the
substantial retiree contribution required.
Post-employment benefit plan eligibility requirements - Based on past experience, it has been assumed
that entitlement to benefits will commence immediately upon retiree coverage eligibility, as described
under “Plan Description”. In addition, “Tier II” retirement plan members (those hired on and after
January 1, 2013) would not be eligible to retire before age 62.
Investment return 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 4% annual investment return has been used in this valuation.
Health care cost trend rate - The expected rate of increase in medical cost is based on a graded schedule
beginning with 8% annually, down to an ultimate annual rate of 5% for 10 years out and later.
Mortality rate - The 1994 Group Annuity Reserving (94GAF) table, projected to 2002, based on a fixed
blend of 50% 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 determining the value of
accrued benefits in defined benefit pension plans. Projected future mortality improvement has not been
used since it is the actuary’s 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, the actuary has 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, if any. Retiree
coverage ceases at age 65.
Inflation rate - Included in both the Investment Return Assumption and the Healthcare Cost Trend rates
above is an implicit inflation assumption of 2.50% annually.
Projected salary increases - This assumption is not applicable since neither the benefit structure nor the
valuation 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.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
67
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 11 - RISK MANAGEMENT:
The City is exposed to various risks of loss related to tort; theft of, damage to, and destruction of assets;
errors and omissions; natural disasters; injuries to employees; and self-insured employee health. The
City purchases commercial insurance for property, general liability claims, and title insurance 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, 2017, 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 $110,000.
Changes in the balances of claims liabilities during the year are as follows:
EMPLOYEES' MEDICAL
INSURANCE FUND 2017 2016
Unpaid claims, beginning of fiscal year 194,400$ 231,700$
Incurred claims (including IBNRs) 3,812,963 3,821,672
Claim payments (3,800,263) (3,858,972)
Unpaid claims, end of fiscal year 207,100$ 194,400$
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
68
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, 2017 was $492,768.
The City imposes a 3% license fee on gross water receipts. The 3% fees are collected by the Water
Works Board of the City of Prattville from charges to water customers on their monthly water bill and
remitted to the City annually on January 1. The receivable from the Water Works Board of the City of
Prattville for license fees at September 30, 2017 was $132,130.
Total collection fees retained by the Water Works Board of the City of Prattville for the services
described above were $358,668 for the year ended September 30, 2017.
The City paid rent for fire hydrants to the Water Works Board of the City of Prattville. The amount
paid to the Board was $48,707 for the year ended September 30, 2017.
On March 1, 2016, the City entered into a lease agreement with the HPRA for a building to be used by
the police, fire, and information technology divisions. The lease agreement is for 30 years with annual
payments of $249,000. The City intends to fund the payment through lodging taxes. The lease revenue
is used as security on the $4,780,000 Series 2016 bonds issued by the HPRA. For the fiscal year ended
September 30, 2017, the City remitted $370,027 to the HPRA. At September 30, 2017, accounts
payable of the City includes $120,395 payable to the HPRA.
The City appropriated $311,966 to the Library and $90,941 to the Airport Authority, component units,
during the fiscal year ended September 30, 2017. These appropriations made were, or will be used, as
operating and capital subsidies.
NOTE 13 - FUNDING 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 2.5% of the gross proceeds of
such sales through the earlier date of September 2026 or full payment of bonds. The Limited Obligation
Taxable Economic Development Bonds (Bass Pro Project), Series 2006 do not constitute an obligation
of the City of Prattville, Alabama.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
69
NOTE 13 - FUNDING AGREEMENTS: (continued)
In December 2008, the City of Prattville, Alabama entered into a funding agreement with The Exchange
Cooperative District (the District), a public corporation to provide assistance in connection with
proposed financing, construction, and installation of a retail shopping facility and related improvements
in the City (the Project). The funding agreement provides that the City agrees to collect Project sales
tax revenues and remit 50% 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 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 $360,547 during the fiscal year ended
September 30, 2017.
The City entered an agreement to support the indebtedness incurred to finance property of the Historic
Prattville Redevelopment Authority with an annual allocation in the event that the lease arrangements
on the financed property prove not to be financially viable. The initial loan balance on the property
totaled $252,200. The loan balance as of September 30, 2017 was $93,060.
As of September 30, 2017, commitments to contractors on capital projects are as follows:
Commitments 37,526,459$
Spent-to-date (4,448,353)
Remaining commitments 33,078,106$
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
70
NOTE 15 - ECONOMIC DEVELOPMENT INCENTIVE OBLIGATIONS - TAX ABATEMENTS:
The City, in conjunction with the Industrial Development Board of the City of Prattville and the
Commercial Development Authority of the City of Prattville, enters into economic development
incentive agreements with entities that propose to locate businesses within the City, or expand
businesses within the City, which are expected to provide stimulus to the City’s economy. These
agreements provide for full or partial abatement of sales, use and/or property taxes, as well as other
financial commitments. Property taxes are abated through reductions of assessed values. Sales and use
taxes are abated either through exemptions granted on purchases for specified construction or
equipment-purchase purposes or through tax rebate arrangements. The agreements have limited terms
of duration and/or maximum abatement thresholds.
As a result of these agreements the City expects to receive economic benefits including but not limited
to increased revenue, job creation and job retention. These incentive agreements require approval by
the Mayor and City Council and are pursuant to Chapter 54A of Title 11 of the Code of Alabama 1975,
as amended and Chapter 9B of Title 40 of the Code of Alabama 1975, as amended. Some agreements
provide for the repayment to the City of abated amounts if the entity ceases to operate its business for
a certain length of time, fails to produce a certain level of employment, or fails to complete construction
within a certain length of time.
The City does not collect property taxes. The Revenue Commissioner of Autauga County and the
Revenue Commissioner of Elmore County are responsible for such collections for the areas of the City
falling within their respective county.
Sales and use taxes abated - fiscal year 2017 977,529$
Property taxes abated - fiscal year 2017 20,064$
Commitments other than tax abatements are included at times in the City’s economic development
agreements. The value of such commitments paid during fiscal year 2017 totaled approximately
$128,000. In the case of sales and use tax abatements on construction materials, the taxes abated are
not received by the City, nor is there currently a reporting mechanism for the City to receive such
information. The State Department of Revenue provides a Purchasing Agent appointment letter to
subject entities so that they can purchase material tax-exempt. The City will take action to require this
reporting in all future abatement agreements.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
71
NOTE 16 - 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. 75, Accounting and Financial Reporting for Post-employment
Benefits other than Pensions will improve the usefulness of information about post-
employment benefits other than pensions (other post-employment benefits or OPEB)
included in the general purpose external financial reports of state and local governmental
OPEB plans for making decisions and assessing accountability. Requirements for this
Statement are effective for financial statements whose fiscal year begins after
June 15, 2017.
GASB Statement No. 86, Certain Debt Extinguishment Issues seeks to improve
consistency in accounting and financial reporting for in-substance defeasance of debt by
providing guidance for transactions in which cash and other monetary assets acquired with
only existing resources (resources other than the proceeds of refunding debt) are placed in
an irrevocable trust for the sole purpose of extinguishing debt. This Statement also
improves accounting and financial reporting for prepaid insurance on debt that is
extinguished and notes to financial statements for debt that is defeased in substance. The
requirements of Statement No. 86 are effective for reporting periods beginning after
June 15, 2017.
GASB Statement No. 87, Leases requires recognition of certain lease assets and liabilities
for leases that previously were classified as operating leases and recognized as inflows of
resources or outflows of resources based on the payment provisions of the contract. It
establishes a single model for lease accounting based on the foundational principle that
leases are financings of the right to use an underlying asset. Under this Statement, a lessee
is required to recognize a lease liability and an intangible right-to-use lease asset, and a
lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby
enhancing the relevance and consistency of information about governments’ leasing
activities. The requirements of this Statement are effective for reporting periods beginning
after December 15, 2019.
CITY OF PRATTVILLE, ALABAMA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
72
NOTE 17 - SUBSEQUENT EVENTS:
The City has evaluated subsequent events through March 23, 2018 which is the date these financial
statements were available to be issued. All subsequent events requiring recognition as of
September 30, 2017 have been incorporated into these financial statements.
On November 17, 2017, the City issued $15,505,000 General Obligation Sewer Warrants Series 2017-
A. The proceeds will be used for sewer improvements. Graduated principal payments are due annually
beginning November 1, 2019. The warrants bear interest ranging from 2.00% to 4.00%, with
semiannual interest payments due each May 1 and November 1, beginning May 1, 2018. Final payment
is due November 1, 2047.
On February 15, 2018, the City issued the $17,000,000 General Obligation Warrant, Series 2018
CWSRF-DL Special Authority Loan payable to the Alabama Water Pollution Control Authority. The
proceeds will be used for sewer improvements. Graduated principal payments are due annually
beginning February 15, 2020. The warrant bears interest at 2.20%, with semiannual interest payments
due each February 15 and August 15, beginning August 15, 2018. Final payment is due
February 15, 2038.
On December 1, 2017, the City redeemed the General Obligation Chevron Warrants Series 2009A at
the outstanding par amount of $1,550,000 plus accrued interest, using available cash reserves.
In December 2017, the Historic Prattville Redevelopment Authority sold a building in exchange for a
mortgage receivable of $800,000.
REQUIRED SUPPLEMENTARY INFORMATION
2016 2015 2014
TOTAL PENSION LIABILITY:
Service cost 1,252,658$ 1,212,096$ 1,171,241$
Interest 4,058,682 3,888,707 3,680,319
Differences between expected and actual experience 832,419 (581,675)
Changes of assumptions 2,954,211
(2,473,697) (2,315,181) (2,178,239)
Transfers among employers (33,807)
6,590,466 2,203,947 2,673,321
51,970,374 49,766,427 47,093,106
58,560,840$ 51,970,374$ 49,766,427$
PLAN FIDUCIARY NET POSITION:
Contributions - employer 1,381,338$ 1,209,263$ 1,157,444$
Contributions - member 902,821 806,208 755,114
Net investment income 3,854,740 447,754 4,089,766
Benefit payments, including refunds of employee contributions (2,473,697) (2,315,181) (2,178,239)
Transfers among employers (33,807) (153,992) (148,504)
Net change in plan fiduciary net position 3,631,395 (5,948) 3,675,581
Plan net position - beginning 37,962,122 37,968,070 34,292,489
Plan net position - end (b)41,593,517$ 37,962,122$ 37,968,070$
Net pension liability - ending (a) - (b)16,967,323$ 14,008,252$ 11,798,357$
Plan fiduciary net position as a percentage of the total pension liability 71.03% 73.05% 76.29%
Covered employee payroll 15,059,971$ 14,118,970$ 13,328,666$
Net pension liability as a percentage of covered employee payroll 112.67% 99.22% 88.52%
Notes to Schedule:
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 payroll subject to retirement contributions paid to covered employees during
the measurement period.
1. This schedule is to be built prospectively until it contains 10 years of data.
Total pension liability - beginning
Total pension liability - end (a)
CITY OF PRATTVILLE, ALABAMA
SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY
LAST 10 FISCAL YEARS ENDING SEPTEMBER 30
Benefit payments, including refunds of employee contributions
Net change in total pension liability
REQUIRED SUPPLEMENTARY INFORMATION
AND RELATED RATIOS
73
2017 2016 2015
Actuarially determined contribution 1,296,995$ 1,436,237$ 1,258,700$
Contributions in relation to the actuarially
determined contribution 1,296,995 1,436,237 1,258,700
-$ -$ -$
14,565,066$ 15,059,971$ 14,118,970$
Contributions as a percentage of covered
employee payroll 8.90% 9.54% 8.91%
Notes to Schedule:
actuarial valuation.
4. Methods and assumptions used to determine the contribution rates:
Actuarial cost method Entry age
Amortization method Level percent closed
Remaining amortization period 24 years
Asset valuation method Five year smoothed market
Inflation 3%
Salary increases 3.75 - 7.25%, including inflation
Investment rate of return
Covered employee payroll
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF PRATTVILLE, ALABAMA
SCHEDULE OF EMPLOYER CONTRIBUTIONS TO THE PENSION PLAN
LAST 10 FISCAL YEARS
Contribution deficit (excess)
1. This schedule is to be built prospectively until it contains 10 years of data.
2. Actuarially determined contribution rates are calculated as of September 30, three years
3. Contribution rates for fiscal year 2017 were based on the September 30, 2014
8.00%, net of pension plan
investment expense, including
inflation
5. Covered employee payroll is the payroll subject to retirement contributions paid to covered
employees for the City's fiscal year ended September 30.
prior to the end of the fiscal year in which contributions are reported.
74
ACTUARIAL UAAL AS A
ACCRUED PERCENTAGE
ACTUARIAL LIABILITY UNFUNDED OF
ACTUARIAL VALUE OF (AAL) AAL FUNDED COVERED COVERED
VALUATION ASSETS UNIT CREDIT (UAAL) RATIO PAYROLL PAYROLL
DATE (a) (b) (b-a) (a/b) (c) ((b-a)/c)
September 30, 2015 -$ 3,970,787$ 3,970,787$ 0.0% 14,118,970$ 28.12%
September 30, 2016 - 4,129,618 4,129,618 0.0% 15,341,314 26.92%
September 30, 2017 - 5,003,927 5,003,927 0.0% 14,972,324 33.42%
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
75
OTHER SUPPLEMENTARY INFORMATION
CITY OF PRATTVILLE, ALABAMA
ACTUAL AMOUNTS VARIANCE WITH
BUDGETARY FINAL BUDGET -
ORIGINAL FINAL BASIS POSITIVE (NEGATIVE)
REVENUES:
Lodging taxes 298,300$ 298,300$ 328,242$ 29,942$
Intergovernmental revenues 2,690,000 2,690,000 790,634 (1,899,366)
Interest income 13,712 13,712
Total revenues 2,988,300 2,988,300 1,132,588 (1,855,712)
EXPENDITURES:
Current operations:
Economic development 125,000 132,192 (7,192)
Public works 539,494 549,494 (20,236) 569,730
Capital outlay 5,890,000 8,652,205 3,775,206 4,876,999
Total expenditures 6,429,494 9,326,699 3,887,162 5,439,537
EXCESS (DEFICIT) OF REVENUES
OVER EXPENDITURES (3,441,194) (6,338,399) (2,754,574) 3,583,825
OTHER FINANCING SOURCES (USES):
Insurance proceeds 1,000 1,000
Transfers in 438,554 438,554
Transfers out (8,203) (75,671) (67,468)
Issuance of bonds 463,000 240,000 (223,000)
Total other financing sources 454,797 603,883 149,086
NET CHANGE IN FUND BALANCE
BUDGETARY BASIS (3,441,194)$ (5,883,602)$ (2,150,691) 3,732,911$
Adjustment for reconciling items to adjust from
budgetary basis to modified accrual basis:
Change in encumbrances 626,011
626,011
NET CHANGE IN FUND BALANCE, MODIFIED ACCRUAL BASIS (1,524,680)
FUND BALANCE AT BEGINNING OF YEAR 5,508,742
FUND BALANCE AT END OF YEAR 3,984,062$
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
CAPITAL PROJECTS FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2017
BUDGETED AMOUNTS
76
CITY OF PRATTVILLE, ALABAMA
ACTUAL AMOUNTS VARIANCE WITH
BUDGETARY FINAL BUDGET -
ORIGINAL FINAL BASIS POSITIVE (NEGATIVE)
REVENUES:
Interest income 1,974$ 1,974$
Total revenues 1,974 1,974
EXPENDITURES:
Debt service:
Principal payments 5,115,000$ 5,115,000$ 5,115,000
Interest payments 1,098,032 1,098,032 1,096,050 1,982
Total expenditures 6,213,032 6,213,032 6,211,050 1,982
EXCESS (DEFICIT) OF REVENUES
OVER EXPENDITURES (6,213,032) (6,213,032) (6,209,076) 3,956
OTHER FINANCING SOURCES (USES):
Transfers in 6,210,905 6,210,905
Total other financing sources 6,210,905 6,210,905
NET CHANGE IN FUND BALANCE,
BUDGETARY BASIS (6,213,032)$ (6,213,032)$ 1,829 6,214,861$
Adjustment for reconciling items to adjust from
budgetary basis to modified accrual basis:
Change in encumbrances
NET CHANGE IN FUND BALANCE, MODIFIED ACCRUAL BASIS 1,829
FUND BALANCE AT BEGINNING OF YEAR 50
FUND BALANCE AT END OF YEAR 1,879$
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
DEBT SERVICE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2017
BUDGETED AMOUNTS
77
CONTENTS PAGE
Financial trends 78
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 83
These schedules contain information to help the reader assess the factors affecting
the City's ability to generate its sales taxes.
Debt capacity 87
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 91
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 93
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.
This part of the City of Prattville, Alabama's comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial statements,
note disclosures, and required supplementary information says about the City's overall financial
health.
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports.
STATISTICAL SECTION
THIS PAGE INTENTIONALLY LEFT BLANK
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
GOVERNMENTAL ACTIVITIES:
Net investment in capital assets 26,252,599$ 27,913,767$ 28,197,019$ 33,144,191$ 31,400,291$ 36,021,544$ 36,578,653$ 39,468,399$ 43,629,725$ 50,777,504$
Restricted 6,238,962 3,761,598 851,251 653,478 803,180 901,190 975,467 1,568,412 1,800,916 1,756,318
Unrestricted (42,378,700) (44,366,960) (46,256,970) (42,282,379) (35,254,724) (30,215,385) (24,140,154) (28,898,955) (24,934,891) (22,656,464)
Total governmental activities net position (9,887,139)$ (12,691,595)$ (17,208,700)$ (8,484,710)$ (3,051,253)$ 6,707,349$ 13,413,966$ 12,137,856$ 20,495,750$ 29,877,358$
BUSINESS-TYPE ACTIVITIES:
Net investment in capital assets 3,751,152$ 4,236,099$ 4,402,643$ 6,384,146$ 7,367,599$ 9,544,408$
Unrestricted 1,467,034 2,446,415 3,281,842 838,425 666,650 1,767
Total business-type activities net position -$ -$ -$ -$ 5,218,186$ 6,682,514$ 7,684,485$ 7,222,571$ 8,034,249$ 9,546,175$
PRIMARY GOVERNMENT:
Net investment in capital assets 26,252,599$ 27,913,767$ 28,197,019$ 33,144,191$ 35,151,443$ 40,257,643$ 40,981,296$ 45,852,545$ 50,997,324$ 60,321,912$
Restricted 6,238,962 3,761,598 851,251 653,478 803,180 901,190 975,467 1,568,412 1,800,916 1,756,318
Unrestricted (42,378,700) (44,366,960) (46,256,970) (42,282,379) (33,787,690) (27,768,970) (20,858,312) (28,060,530) (24,268,241) (22,654,697)
Total primary government activities net position (9,887,139)$ (12,691,595)$ (17,208,700)$ (8,484,710)$ 2,166,933$ 13,389,863$ 21,098,451$ 19,360,427$ 28,529,999$ 39,423,533$
Note: Periods prior to 2013 have not been retroactively restated for the impact of Statement No. 65 of the Governmental Accounting Standards Board:
Items Previously Reported as Assets and Liabilities.
Note: Periods prior to 2015 have not been retroactively restated for the impact of Statement No. 68 of the Governmental Accounting
Standards Board: Accounting and Financial Reporting for Pensions or for the impact of Statement No. 71 of the Governmental Accounting
Standards Board: Pension Transition for Contributions Made Subsequent to the Measurement Date .
CITY OF PRATTVILLE, ALABAMA
SCHEDULE 1
NET POSITION BY COMPONENT
(accrual basis of accounting)
78
GOVERNMENTAL ACTIVITIES: 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
EXPENSES:
Governmental activities:
General government 6,765,361$ 8,093,740$ 9,124,172$ 6,984,318$ 6,868,707$ 6,649,800$ 7,250,279$ 7,619,638$ 8,280,428$ 8,592,901$
Public safety 13,028,713 13,401,417 14,719,827 13,369,083 12,918,701 14,115,911 14,094,661 15,125,945 16,385,499 16,801,682
Public works 20,541,104 8,005,500 8,755,792 7,235,404 3,518,015 3,703,761 5,180,698 6,019,336 6,451,296 5,288,183
Cultural and recreational 2,502,375 2,549,480 2,449,184 2,080,642 1,766,958 1,830,376 1,980,775 2,021,877 2,204,798 2,096,394
Interest on long-term debt 2,327,227 2,445,024 2,585,660 2,460,545 2,195,048 1,971,907 1,727,232 917,762 943,460 853,853
Total governmental activities expenses 45,164,780 34,495,161 37,634,635 32,129,992 27,267,429 28,271,755 30,233,645 31,704,558 34,265,481 33,633,013
PROGRAM REVENUES:
Governmental activities:
Charges for services:
General government 5,183,865 4,901,819 4,874,993 4,990,894 5,351,940 5,525,847 5,499,156 5,973,943 5,971,164 5,942,996
Public safety 1,781,289 1,201,853 1,287,322 1,553,044 1,517,963 1,661,549 1,709,921 1,411,107 1,104,211 1,276,310
Public works 3,930,206 3,928,435 4,412,889 5,400,680 264,744
Cultural and recreational 318,697 261,429 265,044 238,279 234,899 209,031 251,562 257,548 289,834 296,242
Operating grants and contributions 460,308 313,602 206,761 193,703 112,012 224,060 71,025 17,820 135,291 31,943
Capital grants and contributions 1,975,504 2,037,803 2,122,469 5,847,250 2,658,548 4,641,690 1,417,033 3,953,219 4,596,515 4,581,613
Total governmental activities program revenues 13,649,869 12,644,941 13,169,478 18,223,850 10,140,106 12,262,177 8,948,697 11,613,637 12,097,015 12,129,104
Total primary government net expense (31,514,911) (21,850,220) (24,465,157) (13,906,142) (17,127,323) (16,009,578) (21,284,948) (20,090,921) (22,168,466) (21,503,909)
GENERAL REVENUES AND OTHER CHANGES IN NET POSITION:
Governmental activities:
Taxes:
Sales taxes 13,188,413 13,221,492 14,139,501 16,691,014 19,736,422 20,602,498 21,221,765 22,112,831 23,261,064 23,336,649
Real and personal property taxes 2,273,782 2,481,450 2,500,129 2,545,751 2,688,777 2,651,051 2,690,055 2,614,090 2,812,535 2,796,943
Motor fuel taxes 239,897 238,361 240,547 239,616
Lodging taxes 1,185,871 1,012,104 1,063,067 1,090,108 1,025,328 1,201,424 1,647,626 1,804,447 1,898,959 2,028,437
Local gasoline taxes 874,676 913,279 899,562 886,135 898,009 906,939 941,261 970,304 1,015,531 1,034,599
Alcoholic beverage taxes 279,493 281,722 286,497 291,914 295,533 311,045 408,900 273,579 356,953 378,800
Rental taxes 228,743 247,575 239,858 300,750 326,620 315,191 346,089 377,964 388,975 378,341
Tobacco taxes 135,752 147,490 149,222 155,641 155,396 142,723 134,656 136,220 121,636 117,974
Excise taxes 72,181 67,061 18,972 16,647 18,749 70,817 65,949 79,780 77,436 175,042
Intergovernmental 9,092 9,159 161,534 153,240 286,883
Investment earnings 232,387 39,410 42,318 32,621 26,685 69,467 164,964 62,586 93,022 94,168
Miscellaneous revenue 872,896 386,661 206,845 226,695 476,471 625,501 359,099 460,002 500,249 491,229
Gain on sale of capital assets 54,747 36,300 3,320
Transfers (3,374,093) (200,000) 50,015
Total governmental activities general revenues
and other changes in net position 19,593,183 19,045,764 19,948,052 22,630,132 22,560,780 26,696,656 28,035,111 28,928,103 30,526,360 30,885,517
Total governmental activities change in net position (11,921,728)$ (2,804,456)$ (4,517,105)$ 8,723,990$ 5,433,457$ 10,687,078$ 6,750,163$ 8,837,182$ 8,357,894$ 9,381,608$
79
SCHEDULE 2
CHANGES IN NET POSITION
(accrual basis of accounting)
CITY OF PRATTVILLE, ALABAMA
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
BUSINESS-TYPE ACTIVITIES:
EXPENSES:
Sanitation 2,069,318$ 2,230,497$ 2,463,315$ 2,539,325$ 2,886,650$ 3,019,998$
Wastewater 2,515,354 2,770,077 2,763,675 2,852,233 2,869,892 2,826,180
Total business-type activities expenses 4,584,672 5,000,574 5,226,990 5,391,558 5,756,542 5,846,178
REVENUES:
Charges for services:
Sanitation 2,392,771 2,447,844 2,452,098 2,457,400 2,550,392 2,601,138
Wastewater 3,874,248 3,851,668 3,729,267 3,911,891 3,994,729 4,506,215
Capital grants and contributions:
Wastewater 160,324 30,401
Total business-type activities revenues 6,427,343 6,329,913 6,181,365 6,369,291 6,545,121 7,107,353
Total business-type activities net program revenue 1,842,671 1,329,339 954,375 977,733 788,579 1,261,175
OTHER CHANGES IN NET ASSETS:
Miscellaneous revenue 1,422 3,448 5,055 4,382 4,852 7,760
Gain on sale of capital assets 42,306 18,247 293,006
Transfers 3,374,093 200,000 (50,015)
3,375,515 203,448 5,055 46,688 23,099 250,751
Total business-type activities change in net position -$ -$ -$ -$ 5,218,186$ 1,532,787$ 959,430$ 1,024,421$ 811,678$ 1,511,926$
Total primary government change in net position (11,921,728)$ (2,804,456)$ (4,517,105)$ 8,723,990$ 10,651,643$ 12,219,865$ 7,709,593$ 9,861,603$ 9,169,572$ 10,893,534$
Note: Business-type activities prior to 2012 were accounted for as governmental activities.
Note: Periods prior to 2013 have not been retroactively restated for the impact of Statement No. 65 of the Governmental Accounting Standards Board:
Items Previously Reported as Assets and Liabilities.
Note: Periods prior to 2015 have not been retroactively restated for the impact of Statement No. 68 of the Governmental Accounting
Standards Board: Accounting and Financial Reporting for Pensions or for the impact of Statement No. 71 of the Governmental Accounting
Standards Board: Pension Transition for Contributions Made Subsequent to the Measurement Date .
80
CITY OF PRATTVILLE, ALABAMA
SCHEDULE 2
CHANGES IN NET POSITION
(accrual basis of accounting)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
GENERAL FUND:
Reserved 1,181,267$ 1,043,077$ 821,293$
Unreserved (744,577) (316,517) (2,313,284)
Nonspendable 159,850$ 98,908$ 102,322$ 114,704$ 136,566$ 166,583$ 146,829$
Restricted 653,478 204,694 280,424 348,192 517,624 619,222 806,185
Committed 12,185 2,567,260 3,381,590 4,555,104 4,567,189 6,115,868 6,253,712
Assigned 172,653 1,235,310 261,383 468,838 792,720 822,832 1,184,299
Unassigned 550,285 1,099,168 3,053,554 5,643,011 6,555,450 7,056,740 7,713,688
Total general fund 436,690$ 726,560$ (1,491,991)$ 1,548,451$ 5,205,340$ 7,079,273$ 11,129,849$ 12,569,549$ 14,781,245$ 16,104,713$
ALL OTHER GOVERNMENTAL FUNDS:
Reserved, reported in:
Capital projects fund 2,510,352$ 2,371,105$ 618,868$
Reserved, reported in:
Debt service fund 1,192,527 858,397 80,178
Unreserved, reported in:
Special revenue funds 63,082 373,568 566,257
Unreserved, reported in:
Debt service fund (61,295) 169,558
Unreserved, reported in:
Capital projects fund 2,471,886 25,258 (357,885)
Nonspendable 2,299$ 377$ 283$ 254$
Restricted 480,627$ 598,486$ 620,766$ 670,828 1,050,795 1,181,744 729,012
Committed 20,573 305,771 601,804 913,792 200,806
Assigned 503,290 801,506 2,554,059 3,449,408 3,367,433
Unassigned 1 (14,167) (44,029)
Total all other governmental funds 6,176,552$ 3,797,886$ 907,418$ 480,627$ 598,486$ 1,144,630$ 1,780,404$ 4,207,035$ 5,531,060$ 4,253,476$
Note: Periods prior to 2011 have not been retroactively restated for the impact of Statement No. 54 of the Governmental Accounting Standards Board:
Fund Balance Reporting and the Governmental Fund Type Definitions.
CITY OF PRATTVILLE, ALABAMA
SCHEDULE 3
FUND BALANCES OF GOVERNMENTAL FUNDS
(modified accrual basis of accounting)
81
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
REVENUES:
Taxes 18,478,809$ 18,610,534$ 19,537,355$ 22,217,576$ 25,144,834$ 26,201,688$ 27,456,301$ 28,369,215$ 29,933,089$ 30,246,785$
Licenses and permits 5,183,865 4,901,819 4,874,993 4,990,894 5,351,940 5,525,847 5,499,156 5,973,943 5,971,164 5,942,996
Intergovernmental revenues 302,118 343,156 217,701 153,240 548,280 1,103,096 1,428,058 2,220,039 1,461,037 1,131,325
Charges and fees for services 5,493,106 4,905,652 5,564,563 6,655,705 1,223,888 1,284,750 1,392,556 1,077,656 875,957 945,962
Fines and forfeitures 537,086 486,065 400,692 536,298 532,321 630,728 614,714 590,999 518,090 626,590
Interest 232,387 39,410 44,844 32,621 26,685 67,371 164,250 62,162 92,888 94,079
Miscellaneous 1,197,161 1,109,616 1,099,914 908,449 1,067,962 1,030,355 356,984 422,314 386,370 378,870
Total revenues 31,424,532 30,396,252 31,740,062 35,494,783 33,895,910 35,843,835 36,912,019 38,716,328 39,238,595 39,366,607
EXPENDITURES:
Unreserved, reported in:
Current:
General governmental 6,280,215 6,318,533 7,537,961 5,973,871 5,757,564 5,039,571 5,931,830 5,875,170 6,178,913 6,353,357
Public safety 12,746,727 12,989,658 14,023,058 12,712,387 12,346,346 11,852,136 11,731,292 12,413,193 13,352,908 4,221,491
Public works 18,984,015 7,182,300 8,007,685 6,519,457 3,332,207 3,210,261 4,184,523 6,068,130 6,864,620 13,436,701
Cultural and recreation 2,152,013 2,488,332 2,371,770 1,749,355 1,434,309 1,436,057 1,565,707 1,627,648 1,904,284 1,825,309
Capital outlay 3,756,955 2,811,090 3,290,520 478,136 379,900 1,769,645 1,709,945 1,267,128 1,653,020 5,252,535
Debt service:
Principal payments 1,445,912 1,816,556 2,331,364 9,073,190 4,070,296 4,011,121 2,941,830 4,548,721 2,988,986 5,182,594
Interest and fiscal charges 2,158,816 2,430,712 2,465,127 2,492,666 2,230,996 2,165,133 1,750,499 1,192,171 1,209,120 1,099,060
Bond issuance costs 366,450 217,411 83,464 93,782 139,216
Total expenditures 47,891,103 36,037,181 40,244,896 38,999,062 29,551,618 29,567,388 29,909,408 33,131,377 34,151,851 37,371,047
Excess of revenues over (under) expenditures (16,466,571) (5,640,929) (8,504,834) (3,504,279) 4,344,292 6,276,447 7,002,611 5,584,951 5,086,744 1,995,560
OTHER FINANCING SOURCES (USES):
Insurance proceeds 37,685 113,875 112,359
Transfers in 16,586,498 7,276,949 3,149,228 5,525,970 4,610,138 5,215,833 4,896,087 7,642,691 5,605,437 6,823,288
Transfers out (16,586,498) (7,276,949) (3,149,228) (5,525,970) (4,699,055) (9,361,585) (7,064,464) (9,884,991) (8,377,837) (9,893,134)
Issuance of bonds 15,300,000 1,621,373 2,670,000 825,000 240,000
Issuance of refunding bonds 6,315,000 9,815,000 9,955,000 12,280,000
Issuance of notes payable 136,099 1,000,000 300,000 5,637,303
Proceeds from capital lease 451,767 930,760 260,000 258,310 726,905
Payment to refunded bonds escrow agent (6,322,926) (9,434,619) (10,067,843) (13,445,879)
Sale of capital assets 46,779 24,192 40,906
Bond premium (discount) (87,428) 173,741 (90,999) 206,625 1,305,095
Total other financing sources (uses) 15,800,438 3,552,133 3,395,815 5,637,303 (88,917) (3,856,370) (2,074,595) (2,018,620) (1,551,023) (1,949,676)
Net change in fund balance (666,133)$ (2,088,796)$ (5,109,019)$ 2,133,024$ 4,255,375$ 2,420,077$ 4,928,016$ 3,566,331$ 3,535,721$ 45,884$
Debt service as a percentage of noncapital expenditures 9.00% 12.78% 13.54% 30.00% 21.61% 22.67% 17.04% 19.16% 13.58% 19.56%
82
CITY OF PRATTVILLE, ALABAMA
SCHEDULE 4
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
(modified accrual basis of accounting)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Apparel stores 49,891,510$ 61,766,373$ 72,438,782$ 81,049,639$ 78,698,228$ 78,722,449$ 78,062,472$ 81,324,939$ 83,018,889$ 79,853,655$
Food stores 70,156,573 73,331,244 71,839,635 77,704,211 76,108,625 77,168,242 80,331,913 83,355,426 84,503,834 85,828,743
Automotive 65,384,586 46,030,674 58,984,572 63,159,678 62,669,770 68,449,774 72,277,636 97,027,886 108,971,570 114,691,542
Manufacturing machine 1,225,203 1,813,517 1,512,332 1,512,272 1,855,136 2,025,097 16,665,875 6,477,693 3,872,261 3,774,408
Restaurants 51,658,420 53,838,468 62,888,874 69,407,860 72,159,819 83,073,365 99,976,397 104,080,558 107,071,561 112,935,379
Home furnishings and appliances 13,638,375 21,877,677 20,566,253 17,869,458 17,145,730 16,256,815 15,752,779 16,854,830 17,716,288 16,190,266
Building materials 48,684,662 39,460,896 39,128,465 41,682,202 40,414,350 42,467,529 42,313,771 45,417,305 49,249,400 55,631,517
Service stations 21,761,093 22,983,026 22,447,212 21,425,351 15,120,821 19,967,285 17,757,144 17,840,129 18,850,543 19,178,452
Other retail stores 256,892,888 244,770,686 262,697,325 266,079,295 253,682,787 259,689,798 256,775,123 266,688,466 287,794,171 280,178,657
Totals 579,293,310$ 565,872,561$ 612,503,450$ 639,889,966$ 617,855,266$ 647,820,354$ 679,913,110$ 719,067,232$ 761,048,517$ 768,262,619$
City direct sales tax rate 2.50% 2.50% 2.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50%
Source: City's Finance Department.
CITY OF PRATTVILLE, ALABAMA
SCHEDULE 5
NET TAXABLE SALES BY CATEGORY
83
PERCENTAGE PERCENT OF PERCENTAGE PERCENT OF PERCENTAGE PERCENT OF
NUMBER OF TAX REMITTED NUMBER OF TAX REMITTED NUMBER OF TAX REMITTED
OF TAX TOTAL TAX BY TOP 10 OF TAX TOTAL TAX BY TOP 10 OF TAX TOTAL TAX BY TOP 10
FILERS LIABILITY LIABILITY TAXPAYERS FILERS LIABILITY LIABILITY TAXPAYERS FILERS LIABILITY LIABILITY TAXPAYERS
Apparel stores 22 2,846,373$ 12.89% 7.70% 26 2,905,661$ 12.49% 7.40% 26 2,794,878$ 11.98% 5.04%
Food stores 8 2,917,440 13.21% 11.70% 8 2,957,634 12.71% 11.40% 8 3,004,006 12.87% 11.52%
Automotive 24 485,139 2.20% 27 544,858 2.34% 25 573,458 2.46%
Machine 22 48,583 0.22% 25 29,042 0.12% 26 20,308 0.09%
Restaurants 104 3,642,820 16.50% 108 3,747,505 16.11% 113 3,952,738 16.94%
Home furnishings and appliances 12 589,919 2.67% 1.80% 11 620,070 2.67% 1.80% 10 566,659 2.43% 1.65%
Building materials 8 1,589,606 7.20% 6.40% 7 1,723,729 7.41% 6.60% 7 1,947,103 8.34% 6.83%
Service stations 25 624,405 2.83% 23 659,769 2.84% 24 671,246 2.88%
Other retail stores 1,261 9,334,096 42.28% 8.25% 1,383 10,072,796 43.31% 7.50% 1,632 9,806,253 42.01% 9.33%
Totals 1,486 22,078,381$ 100.00% 1,618 23,261,064$ 100.00% 1,871 23,336,649$ 100.00%
PERCENTAGE PERCENT OF PERCENTAGE PERCENT OF PERCENTAGE PERCENT OF
NUMBER OF TAX REMITTED NUMBER OF TAX REMITTED NUMBER OF TAX REMITTED
OF TAX TOTAL TAX BY TOP 10 OF TAX TOTAL TAX BY TOP 10 OF TAX TOTAL TAX BY TOP 10FILERSLIABILITYLIABILITYTAXPAYERSFILERSLIABILITYLIABILITYTAXPAYERSFILERSLIABILITYLIABILITYTAXPAYERS
Apparel stores 20 2,754,438$ 13.99% 10.30% 22 2,755,286$ 13.40% 8.90% 22 2,732,187$ 11.71% 5.49%
Food stores 8 2,663,802 13.53% 12.14% 8 2,700,888 13.13% 11.50% 8 2,811,617 12.05% 11.62%
Automotive 23 313,349 1.59% 23 342,249 1.66% 22 361,388 1.55%Machine 21 13,913 0.07% 22 15,188 0.07% 23 124,994 0.54%
Restaurants 81 2,525,594 12.82% 85 2,907,568 14.14% 107 3,499,174 14.99%
Home furnishings and appliances 12 600,101 3.05% 2.23% 12 568,989 2.77% 2.00% 11 551,347 2.36% 1.81%
Building materials 8 1,414,502 7.18% 6.41% 8 1,486,364 7.23% 6.30% 8 1,480,982 6.35% 6.06%
Service stations 25 529,229 2.69% 25 698,855 3.40% 25 621,500 2.66%Other retail stores 931 8,878,898 45.08% 6.15% 931 9,089,143 44.20% 9.10% 1,181 8,987,129 47.79% 10.50%
Totals 1,129 19,693,826$ 100.00% 1,136 20,564,530$ 100.00% 1,407 21,170,318$ 100.00%
2013 2014
SALES TAX REVENUE PAYERS BY CATEGORY
FISCAL YEARS 2008 THROUGH 2017
SCHEDULE 6
20172015 2016
84
CITY OF PRATTVILLE, ALABAMA
2012
PERCENTAGE PERCENT OF PERCENTAGE PERCENT OF PERCENTAGE PERCENT OF
NUMBER OF TAX REMITTED NUMBER OF TAX REMITTED NUMBER OF TAX REMITTED
OF TAX TOTAL TAX BY TOP 10 OF TAX TOTAL TAX BY TOP 10 OF TAX TOTAL TAX BY TOP 10
FILERS LIABILITY LIABILITY TAXPAYERS FILERS LIABILITY LIABILITY TAXPAYERS FILERS LIABILITY LIABILITY TAXPAYERS
Apparel stores 14 1,544,159$ 11.70% 8.49% 17 1,810,970$ 12.84% 8.05% 17 2,300,008$ 13.81% 7.69%
Food stores 8 1,833,281 13.89% 12.25% 8 1,795,991 12.73% 11.83% 8 2,205,072 13.24% 11.97%
Automotive 24 230,153 1.74% 27 294,923 2.09% 27 315,798 1.90%
Machine 22 13,601 0.10% 25 11,342 0.08% 25 11,342 0.07%Restaurants 89 1,345,962 10.20% 90 1,572,222 11.15% 95 1,969,640 11.83%
Home furnishings and appliances 12 546,942 4.15% 2.54% 12 514,156 3.65% 2.44% 12 507,095 3.05% 2.18%
Building materials 8 986,522 7.48% 6.74% 8 978,212 6.94% 6.22% 8 1,182,848 7.10% 6.20%
Service stations 30 574,576 4.35% 29 561,180 3.98% 28 608,003 3.65%
Other retail stores 980 6,119,267 46.39% 10.70% 964 6,565,423 46.54% 9.55% 918 7,550,736 45.35% 9.22%
Totals 1,187 13,194,463$ 100.00% 1,180 14,104,419$ 100.00% 1,138 16,650,542$ 100.00%
PERCENTAGE PERCENT OFNUMBEROF TAX REMITTED
OF TAX TOTAL TAX BY TOP 10
FILERS LIABILITY LIABILITY TAXPAYERS
Apparel stores 14 1,247,288$ 9.45% 6.00%Food stores 7 1,753,914 13.29% 12.56%
Automotive 25 326,923 2.48% 1.35%
Machine 17 9,189 0.07%
Restaurants 84 1,291,461 9.79%
Home furnishings and appliances 12 340,959 2.58% 1.35%Building materials 8 1,217,117 9.22% 7.90%
Service stations 28 544,027 4.12%
Other retail stores 1,150 6,422,322 49.00% 12.48%
Totals 1,345 13,153,200$ 100.00%
are intended to provide alternative information regarding the sources of the City's revenue.
85
20112009
2008
CITY OF PRATTVILLE, ALABAMA
SCHEDULE 6
Note: Due to confidentiality issues, the names of the 10 largest revenue payers are not available. The categories presented
SALES TAX REVENUE PAYERS BY CATEGORY
FISCAL YEARS 2008 THROUGH 2017
2010
CITY TOTAL
FISCAL DIRECT AUTAUGA DISTRICT STATE OF SALES
YEAR RATE COUNTY TAX ALABAMA TAX
2008 2.5% 2% 4.00% 8.5%
2009 2.5% 2% 4.00% 8.5%
2010 2.5% 2% 4.00% 8.5%
2011 3.5% 2% 4.00% 9.5%
2012 3.5% 2% 4.00% 9.5%
2013 3.5% 2% 4.00% 9.5%
2014 3.5% 2% 4.00% 9.5%
2015 3.5% 2% 4.00% 9.5%
2016 3.5% 2% 4.00% 9.5%
2017 3.5% 2% 4.00% 9.5%
CITY TOTAL
FISCAL DIRECT ELMORE DISTRICT STATE OF SALES
YEAR RATE COUNTY TAX ALABAMA TAX
2008 2.5% 1% 1% 4.00% 8.5%
2009 2.5% 1% 1% 4.00% 8.5%
2010 2.5% 1% 1% 4.00% 8.5%
2011 3.5% 1% 1% 4.00% 9.5%
2012 3.5% 1% 1% 4.00% 9.5%
2013 3.5% 1% 1% 4.00% 9.5%
2014 3.5% 1% 1% 4.00% 9.5%
2015 3.5% 1% 1% 4.00% 9.5%
2016 3.5% 1% 1% 4.00% 9.5%
2017 3.5% 1% 1% 4.00% 9.5%
CITY OF PRATTVILLE, ALABAMA
DIRECT AND OVERLAPPING SALES TAX RATES
SCHEDULE 7
Sources: City Finance Department, Autauga County Revenue Commissioner's Office, and Elmore
County Department of Finance.
86
GENERAL LIMITED TOTAL PERCENTAGE PERCENTAGE PER
FISCAL OBLIGATION TERM OBLIGATION CAPITAL OUTSTANDING OF TAXABLE OF PERSONAL CAPITA
YEAR BONDS LOAN WARRANT LEASE DEBT SALES (b) INCOME (a) (a)
2008 56,994,583$ 99,344$ 1,594,489$ 761,348$ 59,449,764$ 10.26% 3.62% 1,181
2009 57,099,163 1,025,708 1,594,489 1,445,462 61,164,822 10.81% 3.68% 1,205
2010 57,699,065 1,803,956 1,594,489 1,239,844 62,337,354 10.18% 3.71% 1,142
2011 54,755,183 1,755,709 1,594,489 748,347 58,853,728 9.20% 3.26% 1,065
2012 49,212,046 701,035 1,580,851 88,562 51,582,494 8.35% 2.73% 929
2013 47,027,064 1,567,775 48,594,839 7.50% 2.49% 880
2014 44,415,437 1,558,312 45,973,749 6.76% 2.28% 830
2015 40,610,621 1,546,258 42,156,879 5.86% 2.02% 762
2016 38,304,803 1,529,406 206,620 40,040,829 5.26% 1.82% 723
2017 32,766,245 1,513,174 882,163 35,161,582 4.58% * *
GENERAL LIMITED TOTAL PERCENTAGE PERCENTAGE PER
FISCAL OBLIGATION TERM OBLIGATION CAPITAL OUTSTANDING OF TAXABLE OF PERSONAL CAPITA
YEAR BONDS LOAN WARRANT LEASE DEBT SALES (b) INCOME (a) (a)
2012 2,490,000$ 238,074$ 2,728,074$ 0.44% 0.14% 49
2013 3,095,767 9,334 3,105,101 0.48% 0.16% 56
2014 2,695,120 2,695,120 0.40% 0.13% 49
2015 1,056,794 1,056,794 0.15% 0.05% 19
2016 1,783,718 1,783,718 0.23% 0.08% 32
2017 1,400,411 1,400,411 0.18% * *
GENERAL LIMITED TOTAL PERCENTAGE PERCENTAGE PER
FISCAL OBLIGATION TERM OBLIGATION CAPITAL OUTSTANDING OF TAXABLE OF PERSONAL CAPITA
YEAR BONDS LOAN WARRANT LEASE DEBT SALES (b) INCOME (a) (a)
2008 56,994,583$ 99,344$ 1,594,489$ 761,348$ 59,449,764$ 10.26% 3.62% 1,181
2009 57,099,163 1,025,708 1,594,489 1,445,462 61,164,822 10.81% 3.68% 1,205
2010 57,699,065 1,803,956 1,594,489 1,239,844 62,337,354 10.18% 3.71% 1,142
2011 54,755,183 1,755,709 1,594,489 748,347 58,853,728 9.20% 3.26% 1,065
2012 51,702,046 701,035 1,580,851 326,636 54,310,568 8.79% 2.87% 978
2013 50,122,831 1,567,775 9,334 51,699,940 7.98% 2.65% 936
2014 47,110,557 1,558,312 48,668,869 7.16% 2.41% 879
2015 41,667,415 1,546,258 43,213,673 6.01% 2.07% 781
2016 40,088,521 1,529,406 206,620 41,824,547 5.50% 1.90% 755
2017 34,166,656 1,513,174 882,163 36,561,993 4.76% * *
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(a) See the Schedule of Demographics and Economic Statistics on page 91 for personal income and population data.
(b) See page 83 for net taxable sales.
* Information not available.
87
CITY OF PRATTVILLE, ALABAMA
RATIOS OF OUTSTANDING DEBT BY TYPE
SCHEDULE 8
GOVERNMENTAL ACTIVITIES
BUSINESS-TYPE ACTIVITIES
PRIMARY GOVERNMENT
LESS: AMOUNTS
GENERAL AVAILABLE PERCENTAGE OF PER
FISCAL OBLIGATION DEBT SERVICE NET TAXABLE CAPITA
YEAR BONDS FUND TOTAL SALES (a) (b)
2008 56,994,583$ 1,131,232$ 55,863,351$ 9.64% 1,109
2009 57,099,163 1,027,955 56,071,208 9.91% 1,105
2010 57,699,065 80,178 57,618,887 9.41% 1,056
2011 54,755,183 5 54,755,178 8.56% 991
2012 51,702,046 10 51,702,036 8.37% 931
2013 50,122,831 203,627 49,919,204 7.71% 904
2014 47,110,557 7 47,110,550 6.93% 850
2015 41,667,415 7 41,667,408 5.79% 753
2016 40,088,521 50 40,088,471 5.27% 723
2017 34,166,656 1,879 34,164,777 4.45% *
(a) See page 83 for net taxable sales.
(b) See the Schedule of Demographics and Economic Statistics on page 91 for population data.
* Information not available.
CITY OF PRATTVILLE, ALABAMA
RATIOS OF NET GENERAL BONDED DEBT OUTSTANDING
SCHEDULE 9
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial
statements.
88
ESTIMATED
SHARE OF
ESTIMATED DIRECT AND
DEBT PERCENTAGE OVERLAPPING
GOVERNMENTAL UNIT OUTSTANDING APPLICABLE (a) DEBT
Debt repaid with property taxes: Autauga County 11,205,525$ 48.00% 5,378,652$
Debt repaid with property taxes: Autauga County
Board of Education 19,540,019 48.00% 9,379,209
Debt repaid with property taxes: Elmore County 17,123,045 7.00% 1,198,613
Debt repaid with property taxes: Elmore County
Board of Education * 59,445,164 7.00% 4,161,161
Subtotal, overlapping debt 20,117,635
City of Prattville, Alabama direct debt 40,040,829
Total direct and overlapping debt 60,158,464$
* Estimated
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 governments that is borne
by the residents and businesses of the City of Prattville, Alabama. This process recognizes that, when
considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and
businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and
therefore responsible for repaying the debt, of each overlapping government.
(a) The percentage 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.
CITY OF PRATTVILLE, ALABAMA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2017
SCHEDULE 10
89
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
338,273,422$ 348,899,620$ 358,625,820$ 353,461,200$ 356,934,340$ 352,040,720$ 348,362,480$ 358,817,560$ 367,841,220$ 378,906,500$
Debt limit 67,654,684 69,779,924 71,725,164 70,692,240 71,386,868 70,408,144 69,672,496 71,763,512 73,568,244 75,781,300
Total net debt applicable to limit 9,649,304 11,690,201 14,415,694 12,436,482 9,818,857 18,697,026 26,501,875 37,095,437 36,416,570 31,990,284
Legal debt margin 58,005,380$ 58,089,723$ 57,309,470$ 58,255,758$ 61,568,011$ 51,711,118$ 43,170,621$ 34,668,075$ 37,151,674$ 43,791,016$
Total net debt applicable to the limit
as a percentage of debt limit 14.26% 16.75% 20.10% 17.59% 13.75% 26.56% 38.04% 51.69% 49.50% 42.21%
Legal debt margin calculation for fiscal year 2016
Assessed value 378,906,500$
Debt limit (20% of total assessed value) 75,781,300$
Debt applicable to limit:
General obligation bonds 31,110,000
Capital leases 882,163
Less: Amount set aside for repayment
of general obligation debt 1,879
Total net debt applicable to limit 31,990,284
Legal debt margin 43,791,016$
90
CITY OF PRATTVILLE, ALABAMA
LEGAL DEBT MARGIN INFORMATION
Note: Under state law, the City of Prattville, Alabama's outstanding general obligation debt should not exceed 20% of total assessed property value.By law, the general obligation debt subject to the limitation may be
offset by amounts set aside for repaying general obligation bonds.
Net assessed value of taxable property
SCHEDULE 11
PERSONAL INCOME PER CAPITA AUTAUGA COUNTY
CALENDAR (THOUSANDS PERSONAL MEDIAN SCHOOL UNEMPLOYMENT
YEAR POPULATION OF DOLLARS) INCOME AGE ENROLLMENT RATE
2008 50,354 1,640,204$ 32,573$ 36.26 9,819 (07-08) 4.50%
2009 50,756 1,660,766 32,721 36.16 9,854 (08-09) 8.60%
2010 54,571 1,679,535 30,777 36.37 10,076 (09-10) 8.00%
2011 55,267 1,804,871 32,657 36.69 9,877 (10-11) 6.80%
2012 55,514 1,889,867 34,043 37.00 9,825 (11-12) 6.80%
2013 55,246 1,951,123 35,317 36.00 9,642 (12-13) 5.90%
2014 55,395 2,017,431 36,419 35.10 9,737 (13-14) 5.40%
2015 55,347 2,090,622 37,773 36.20 9,665 (14-15) 5.20%
2016 55,416 2,201,179 39,721 37.70 9,643 (15-16) 5.20%
2017 * * * 37.80 9,260 (16-17) 4.10%
* Unavailable
CITY OF PRATTVILLE, ALABAMA
DEMOGRAPHIC AND ECONOMIC STATISTICS
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 of Education is based on the census at the start of the school year.
SCHEDULE 12
91
PERCENTAGE PERCENTAGE
OF TOTAL CITY OF TOTAL CITY
EMPLOYER EMPLOYEES EMPLOYMENT EMPLOYEES EMPLOYMENT
Autauga County Board of Education 1,000 6.38% 1,076 6.64%
International Paper 600 3.83% 600 3.70%
Prattville Baptist Hospital 235 1.50% 399 2.46%
City of Prattville, Alabama 385 2.46% 386 2.38%
Walmart 480 3.06% 320 1.97%
Bass Pro 300 1.91% 260 1.60%
Autauga County 165 1.05% 190 1.17%
Kinedyne 130 0.83% 184 1.14%
Prattville Health and Rehabilitation 154 0.98% 155 0.96%
YMCA 97 0.62% 133 0.82%
Central Alabama Electric Cooperative 122 0.78% 120 0.74%
Kasai North America, Inc. 100 0.64% 112 0.69%
Long Lewis * * 83 0.51%
Fras-Le * * 80 0.49%
Totals 3,768 24.04% 4,098 25.27%
Source: Prattville Area Chamber of Commerce.
Note: Information does not include city government employment.
Average number employed in City for 2017 was 16,203 per www2.labor.alabama.gov/LAUS/LAUScities.pdf.
http://www2.labor.alabama.gov/Laus/CLF/AllCity.aspx
* Unavailable
Note: This schedule presents 2011 compared to 2017. Information for 2008 (nine years ago) is not
presented because it is not readily available.
2017
CITY OF PRATTVILLE, ALABAMA
PRINCIPAL EMPLOYERS
SCHEDULE 13
2011
92
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Function/Program
General government:
Executive 5 3 3 3 2 3 3 3 3 4
Legislative 7 7 7 7 7 7 7 7 7 7
Finance 8 7 7 6 6 5 6 7 7 7
City clerk 4 5 5 2 3 3 3 3 3 3
Human resources 4 4 4 4 4 4 3 4 4 4
Judicial 4 6 6 5 6 6 6 6 6 6
Information technology 3 4 3 1 1 1 2 3 3 3
Vehicle maintenance 10 12 10 6 6 6 5 6 6 6
Public safety:
Police:
Officers 87 90 92 85 81 81 82 82 82 82
Civilians 9 11 9 7 8 9 9 10 10 10
Fire:
Officers 89 89 88 84 81 79 83 83 83 83
Civilians 4 4 4 8 7 7 2 2 2 3
Building division 4 6 6 6
Public works:
Public works 4 4 5
Engineering 5 4 4 9 9 10 9 9 9 8
Facilities maintenance 4 8 8 8
Planning and development 13 16 14 7 7 4 4 5 5 4
Street 22 22 21
Sanitation 28 30 29 28 28 32 34 36 34 28
Wastewater 26 29 28 25 23 23 25 25 21 23
Urban management 21 19 23 30 30 29 34
Culture and recreation:
Parks and Recreation 24 24 24 15 12 12 14 14 14 13
Performing and creative arts 2 2 2 1 1 1 1 2
Totals 352 369 360 325 311 315 336 354 347 349
Source: Human Resources.
CITY OF PRATTVILLE, ALABAMA
SCHEDULE 14
FULL-TIME EQUIVALENT CITY
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.
GOVERNMENT EMPLOYEES BY FUNCTION
93
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Function/Program
General government:
Building permits issued:
Residential 173 106 135 106 128 120 131 161 165 189
Residential remodel 392 327 343 333 147 203
Commercial 16 17 10 11 8 8 12 17 10 12
Commercial buildout, remodel, addition 43 49 56 74 71 41
Building inspections conducted 7,455 6,472 3,658 3,142 3,512 4,506 5,688 4,148 4,830 4,767
Building plan reviews 325 177 149 147 212 181 441 659 650 873
Public safety:
Police:
Physical arrests 3,288 2,651 3,035 3,208 2,208 2,128 2,757 2,342 2,829 4,026
Parking violations 253 143 348 373 259 122 86 98 28 8
Traffic violations 6,236 7,914 6,299 6,450 4,460 4,782 4,897 4,418 5,701 8,163
Fire:
Emergency responses 6,184 4,989 5,199 5,221 5,673 5,786 5,893 5,118 4,874 5,394
Fires extinguished 115 132 115 113 75 101 113 105 113 43
Inspections 2,766 3,772 2,996 2,725 2,846 2,846 2,775 2,791 2,500 3,477
Public works:
Potholes repaired 2,000 3,000 2,000 2,000 1,500 1,750 2,000 2,500 2,500 2,000
Street resurfacing (miles) 8 3 2 7 5 8
Wastewater:
Average daily sewage treatment (millions of gallons):
Autauga Creek 1.90 2.35 2.18 1.60 1.72 1.92 1.62 1.47 1.54 1.66
Pine Creek 1.88 1.99 1.87 1.90 1.90 2.01 1.88 1.81 1.96 2.08
Refuse collection:
Garbage (tons per day)38.5 36.33 45 44.60
Trash (yards per day)189 260 220 61
Recyclables (tons per day)1111
CITY OF PRATTVILLE, ALABAMA
SCHEDULE 15
OPERATING INDICATORS BY FUNCTION/PROGRAM
94
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Function/Program
Public safety:
Police:
Stations 1 1 1 1 1 1 1 1 1 1
Patrol cars 71 81 82 81 84 84 81 84 78 80
Motorcycles 11 11 11 9 9 9 10 10 10 10
Fire:
Stations 3 3 3 3 3 3 3 3 3 3
Fire engines 5 5 5 5 5 5 5 5 5 5
Ladder trucks 1 1 1 1 1 1 1 1 1 2
Heavy rescue 1 1 1 1 1 1 1 1 1 1
Ambulances 7 7 7 7 7 7 7 7 6 6
Refuse collection:
Trash trucks 6 6 6 6 6 6 6 6 6 6
Garbage trucks 9 9 9 9 9 8 8 8 9 7
Parkan truck 1 1 1
Public works:
Streets (miles) 209 209 212 212 217 220 223
Highways (miles) 23 23 23 23 23 23 23
Streetlights 2,450 2,450 2,450 2,450 2,475 2,510 2,525
Traffic signal heads 270 270 270 270 270 286 286
Cultural and recreation:
Acreage 330 354 354 354 354 354 354 354 354 354
Playgrounds 9 10 10 10 10 10 10 10 10 10
Baseball/softball diamonds 16 16 16 16 16 16 16 16 16 16
Soccer fields 9 9 9 9 9 9 9 9 9 9
Community centers 2 2 2 2 2 2 2 2 2 2
Senior citizens center 1 1 1 1 1 1 1 1 1 1
Sources: Various City departments.
Note: No capital asset indicators are available for the general government.
CITY OF PRATTVILLE, ALABAMA
SCHEDULE 16
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
95