FY19 Comprehensive Annual Financial Report - City of PrattvilleCity of Prattville, Alabama
For the Fiscal Year Ended September 30, 2019
Comprehensive Annual Financial Report
Prepared by the Department of Finance
Daniel F. Oakley, CPA
Finance Director
Introductory Section
Page
Table of Contents i - ii
Letter of Transmittal iii - vii
Certificate of Achievement for Excellence in Financial Reporting viii
List of Principal Officials ix
Organizational Chart x
Map of the City xi
Independent Auditor's Report 1 - 2
Management's Discussion and Analysis 3 - 11
Government-Wide Financial Statements
Statement of Net Position 12
Statement of Activities 13
Fund Financial Statements
Balance Sheet - Governmental Funds 14
Reconciliation of Balance Sheet of Governmental Funds to Statement of Net Position 15
16
17
18 - 20
21
22
Statement of Net Position - Proprietary Funds 23
Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds 24
Statement of Cash Flows - Proprietary Funds 25
Notes to Financial Statements 26 - 57
Schedule of Changes in Net Pension Liability and Related Ratios 58
Schedule of Employer Contributions 59
Schedule of Changes in Total OPEB Liability and Related Ratios 60
Comprehensive Annual Financial Report
City of Prattville, Alabama
Table of Contents
Statement of Revenues, Expenditures, and Changes in Fund Balances -Governmental
Funds
Required Supplementary Information
For the Fiscal Year Ended September 30, 2019
Basic Financial Statements
Reconciliation of Statement of Revenues, Expenditures, and Changes in Fund
Balances - Governmental Funds to Statement of Activities
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and
Actual - General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and
Actual - Gas Tax Special Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and
Actual - Judicial Special Revenue Fund
Introductory Section
Financial Section
i
Page
61
62
Financial Trends
Schedule 1 Net Position by Component 63
Schedule 2 Changes in Net Position 64 - 65
Schedule 3 Fund Balances of Governmental Funds 66
Schedule 4 Changes in Fund Balances of Governmental Funds 67
Revenue Capacity
Schedule 5 Net Taxable Sales by Category 68
Schedule 6 Sales Tax Revenue Payers by Category 69 - 70
Schedule 7 Direct and Overlapping Sales Tax Rates 71
Debt Capacity
Schedule 8 Ratios of Outstanding Debt by Type 72
Schedule 9 Ratios of Net General Bonded Debt Outstanding 73
Schedule 10 Direct and Overlapping Governmental Activities Debt 74
Schedule 11 Legal Debt Margin Information 75
Demographic and Economic Information
Schedule 12 Demographic and Economic Statistics 76
Schedule 13 Principal Employers 77
Operating Information
Schedule 14 Full-Time Equivalent City Government Employees by Function 78
Schedule 15 Operating Indicators by Function/Program 79
Schedule 16 Capital Asset Statistics by Function/Program 80
Schedule of Revenues, Expenditures, and Changes in Fund Balances -Budget and
Actual - Debt Service Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances -Budget and
Actual - Capital Projects Fund
City of Prattville, Alabama
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2019
Table of Contents
Other Supplementary Information
Statistical Section
ii
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iii
ALBERT C. STRIPLIN
Council President
District 1
DENISE B. BROWN
President Pro Tempore
District 3
MARCUS JACKSON
District 2
JERRY STARNES
District 4
RICHARD CABLES
District 5
ROBERT E. STRICHIK
District 6
LORA LEE BOONE
District 7
BILL GILLESPIE, JR.
MAYOR March 5, 2020
The Citizens of
The City of Prattville
Prattville, Alabama
The Comprehensive Annual Financial Report (CAFR) of the City of Prattville (the
government) for the fiscal year ended September 30, 2019 is hereby transmitted.
Responsibility for both the accuracy of the data and the completeness and fairness of
the presentation, including all disclosures, rests with the City of Prattville management.
To the best of our knowledge and belief, the enclosed data is accurate in all material
aspects and is reported in a manner designed to present fairly the financial position and
results of operations of the various funds of the government and its component units.
All disclosures necessary to enable the reader to gain an understanding of the
government’s financial activities have been included.
The Report
The financial section of the CAFR includes the management’s discussion and analysis
(MD&A), the basic financial statements for the primary government and its separately
presented component units, and the primary government’s combining and individual
financial statements and schedules, as well as the independent auditor’s report on the
financial statements and schedules. The MD&A contains a narrative introduction,
overview, and analysis of the City’s financial statements. It should be read in
conjunction with this letter of transmittal.
This report includes all funds of the primary government and its component units. The
primary government provides a full range of services. These services include public
safety, public works, environmental services, culture and recreation, economic and
community development, planning, and general administrative services.
GASB Reporting Requirements
Each year, management evaluates new GASB reporting requirements to determine
applicability to the City. The requirements issued by GASB that became effective during
this fiscal period and those that will become effective in the next fiscal period are
described in this document.
C I T Y C O U N C I L
iv
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 Profile
The City of Prattville is the County seat of Autauga County, it was incorporated on August 8th 1865, and is
located in south central Alabama. It serves a population of approximately 35,500. The City of Prattville
operates under a Mayor/Council form of government with a fiscal year from October 1st through
September 30th. The Mayor and seven (7) Council members are each elected to four (4) year terms. City
services include police and fire protection; sanitation services; sewer services; the construction and
maintenance of highways, streets, and infrastructure; recreational activities; and cultural events.
Formal budgetary integration is employed as a management control device. On a day to be set by the
Council, the Mayor submits to the Council a balanced budget for the next fiscal year. The Council
schedules public hearings for the purpose of discussing and adopting the budget and may add to or delete
from the budget submitted by the Mayor as long as the budget remains in balance. The Council, by a
majority vote, shall adopt the budget. Activities of the General Fund, Debt Service Fund, Capital Projects
Fund, Gas Tax Special Revenue Fund, Judicial Special Revenue Fund, Wastewater Enterprise Fund, and
Sanitation Enterprise Fund are included in the annual appropriated budget. The City also maintains an
encumbrance accounting system as one technique of accomplishing budgetary control. Appropriations
lapse at the end of the fiscal year unless expended or encumbered.
In order to prepare a financial report, it is necessary to identify all components of the reporting entity.
Potential component units were evaluated to determine whether they should be reported in the City’s
financial report. A component unit was considered to be part of the City’s reporting entity if it was
concluded that the City was financially accountable for the entity or the nature and significance of the
relationship between the City and the entity was such that exclusion would cause the City’s financial
statements to be misleading or incomplete. The Autauga-Prattville Public Library, Prattville Airport
Authority, and Historic Prattville Redevelopment Authority were determined to be the only reportable
component units and have been included in this report.
Economic Condition and Outlook
The proximity of the state capital and Maxwell Gunter Air Force Base make significant contributions to
the local economy.
The City of Prattville maintains a contract for service with The Prattville Area Chamber of Commerce to
provide economic development services. The Prattville Area Chamber of Commerce is a voluntary
partnership of business and professional people working together to build a healthy economy and to
improve the community’s quality of life. The Prattville Area Chamber of Commerce has the responsibility
to promote the economic wellbeing and to advocate for a positive business environment.
v
Chamber members are businesses, organizations, and individuals concerned with the socio-economic
climate of the community.
The Chamber works to improve the community, observing these objectives:
•to help businesses grow and prosper;
•to increase job opportunities;
•to encourage orderly expansion/development of all segments;
•to contribute to the overall economic stability of the community;
•to encourage and promote the nation’s private enterprise system of competitive marketing.
Financial Information
Management of the government is responsible for establishing and maintaining an internal control
structure designed to ensure that the assets of the government are protected from loss, theft, or misuse
and to ensure that adequate data is compiled to allow for the presentation of financial statements in
conformance with generally accepted accounting principles. The internal control structure is designed to
provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable
assurance recognizes that: 1) the cost of a control should not exceed the benefits likely to be derived; and
2) that valuation of costs and benefits requires estimates and judgments by management.
Single Audit - As recipient of federal and state financial assistance, the government is also responsible for
ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws
and regulations related to those programs. This internal control structure is subject to periodic evaluation
by management.
As part of the City’s audit in accordance with generally accepted government auditing standards, tests are
made to determine the adequacy of the internal control structure, including that portion related to federal
assistance programs, as well as to determine that the government has complied with applicable laws and
regulations.
Budgeting - Budgetary tracking is maintained at the line item level by the encumbrance of actual or
estimated purchase amounts prior to the release of purchase orders to vendors. Accountability for
budgetary compliance is held at the department level. The objective of these budgetary controls is to
ensure compliance with legal provisions embodied in the annual appropriated budget approved by the
City’s governing body. Purchase orders resulting in an overrun within a department balance are released
only after the approval of the finance director or mayor.
Budget amendments are effected by resolutions enacted by the governing body when needed. Activities
of the General Fund, Debt Service Fund, Capital Projects Fund, Gas Tax Special Revenue Fund, Judicial
Special Revenue Fund, Wastewater Enterprise Fund and Sanitation Enterprise Fund are included in the
budget. Encumbrances lapse at year-end; however, encumbrances remaining against a positive
department budget balance may be re-appropriated as a “prior year carryover.”
The City’s budget is prepared in accordance with generally accepted accounting principles (GAAP), with
the exception that capital outlays are budgeted within those departments. The financial statements
presented in the financial section of this report are presented in accordance with GAAP; that is all capital
outlays have been aggregated in a single line captioned “capital outlay.”
vi
Healthcare Costs ‐ With the healthcare costs continuing to increase, the City of Prattville opened the
primary healthcare clinic in 2011. This clinic provides City employees and their dependents with those
services that would be rendered by a family practice physician. The City hired CareHere, LLC to manage
all aspects of operations for these clinics.
General Fund Reserves ‐ Management has, through council resolution, established a goal of achieving a
net ending fund balance in the General Fund that is equal to or greater than 15% of the total expenditures
and other financing uses.
Debt Management ‐ In addition to making payments in accordance with regularly scheduled maturity
dates, the City also called certain maturities of the 2013A general obligation refunding warrants in the
amount of $1,605,000 and certain maturities of the 2014A general obligation refunding warrants in the
amount of $2,245,000 during the 2019 fiscal year.
Awards and Acknowledgements
During 2013 the Alabama Policy Institute ranked Prattville number 6 out of 50 cities in their Overall
Business‐Friendly Ranking. This was based on economic vitality, business tax burden, community allure,
and transportation infrastructure. Prattville was ranked #1 on community allure based on our cost of
living, per capita violent crime rate, high school graduation rate and SAT averaged reading, and math
scores.
Two bronze medals were awarded to the City of Prattville for action taken to improve access to healthy
affordable food and increased opportunities for physical activity. These medals were awarded because
of Prattville's achievements in collaborating with other agencies on early care and education programs
and for also having at least 60% of public schools participating in the School Breakfast Program.
During 2018 the City achieved the distinction of earning a Class 1 Public Protection Classification rating by
the Insurance Services Office (ISO), an organization that independently evaluates municipal fire protection
efforts in communities across the United States. The City of Prattville is now the 11th community in the
State of Alabama with a Class 1 rating, and this classification has been obtained by less than 1% of fire
departments nationwide.
In 2019 the City was named a 2019 Tree City USA by the Arbor Day Foundation in honor of its commitment
to effective urban forest management. With this recognition, the City has done its part in helping to
address challenges that communities worldwide are facing including issues with air quality, water
resources, personal health and well‐being, energy use, and protection from extreme heat and flooding.
The Government Finance Officers Association (GFOA) of the United States and Canada awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Prattville for its
Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2018. In order to
be awarded a Certificate of Achievement, a governmental entity must publish an easily readable and
efficiently organized CAFR. This report must satisfy both accounting principles generally accepted in the
United States of America and applicable legal requirements.
A Certificate of Achievement is valid for a period of only one year. We believe the City’s 2019 CAFR
continues to meet the Certificate of Achievement Program's requirements, and it is being submitted to
the GFOA to determine its eligibility for another certificate.
viii
Jerry Starnes Marcus Jackson
Denise Brown, President Pro Tempore Richard Cables
Robert Strichik Lora Lee Boone
Municipal Court Judge Louis C. Colley
City Attorney David McDowell
City Attorney Rob Riddle
City Prosecutor Brad E. Ekdahl
City Clerk Cathy Dickerson
Finance Director Daniel F. 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 Scott Stephens
Heads of Departments
City Council
Albert Striplin, President
City of Prattville, Alabama
List of Principal Officials
As of September 30, 2019
Mayor - Bill Gillespie, Jr.
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RIDGE TER
ANDIRO
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HUGHES ST
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VALLEYVIEW RD
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HWY 82 W
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Legend
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Prattville City Limits
City of Prattville 2019
xi
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, 2019, 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 City’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 City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the discretely presented component units, and each major fund of the City of Prattville, Alabama, as of
September 30, 2019, 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.
2
Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 3 through 11 and the schedule of changes in net pension liability and related ratios, the schedule of employer contributions, and the schedule of changes in total OPEB liability and related ratios on pages 58 through 60 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 statements. 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 section 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 5, 2020 on our consideration of the City’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 the City’s 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 the City’s internal control over financial reporting and compliance.
Montgomery, Alabama
March 5, 2020
3
Management’s Discussion and Analysis
As management of the City of Prattville, Alabama (the City), 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, 2019. 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 deferredinflows at September 30, 2019, by $64,266,644 (net position). Of the net position balance amount,
($7,993,744) (unrestricted net position) is the deficit balance of the City representing the indebtednessincurred for incentive obligations including the purchase of development property supporting thesignificant retail development activities within the City which originated in the fiscal years ended 2006and 2008 as well as the unfunded pension and OPEB liability for the City.
•During the year, the City’s total net position increased by $13,358,926. Revenues of $56,683,326exceeded expenses of $43,324,400. The increase in revenue over the prior year is due in part to theincrease in fees for services received in the Wastewater Enterprise Fund. This increase was expectedas a result of the rate increase implemented to assist in funding the debt service for a major plantexpansion project for which construction began during the fiscal year ended 2017. In addition, theincrease in revenue is due in part to an increase in sales and use tax collections of $1,699,410.Expenses increased by $446,568 due primarily to increased spending for various economicdevelopment activities as well as a multi-street paving project in the governmental activities.
•Under the Government Accounting Standards Board Statement Number 75, Accounting and FinancialReporting for Postemployment Benefits Other Than Pensions (GASB 75), the City recognized anexpense of $174,643 in the current year to record unfunded OPEB liability.
•As of the close of the current fiscal year, the City’s governmental funds reported combined ending fundbalances of $18,786,722. There was an increase of $649,446 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.
Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City of Prattville, Alabama’s finances in a manner similar to a private-sector business. The basic financial statements include two kinds of statements that present different views of the City, a statement of net position and a statement of activities. These statements include the City’s three component units, the Autauga-Prattville Public Library (the Library), the Prattville Airport Authority (the Authority), and the Historic Prattville Redevelopment Authority (HPRA), which are separate legal entities. Although legally separate, these component units are important because the City is financially accountable for them. Complete financial statements of the Library, the Authority, and HPRA can be obtained at their respective administrative offices located in Prattville, Alabama.
4
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 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
and 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 uses fund accounting to ensure and demonstrate compliance with finance-related legal matters. All funds of the City can be divided into two categories: governmental and proprietary funds. 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, Capital Projects Fund, Debt Service Fund, Gas Tax Special Revenue Fund, and Judicial Special Revenue Fund. Budgetary comparison statement and schedules have been provided for these funds to demonstrate compliance with these budgets. Proprietary funds - Services for which the City charges customers a fee are generally reported in proprietary funds. The City of Prattville, Alabama maintains two types of proprietary funds: enterprise funds and an internal service 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 an internal service fund 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.
5
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 26 through 57 of this report. Government-Wide Financial Analysis The City’s condensed statement of net position as of September 30, 2019 and 2018, derived from the government-wide statement of net position is presented below.
2019 2018 2019 2018 2019 2018
Current and other
assets 21,644,765$ 20,366,760$ 5,665,745$ 5,686,553$ 27,310,510$ 26,053,313$
Capital assets,
net of depreciation 69,506,843 62,554,209 41,851,859 32,848,381 111,358,702 95,402,590
Restricted assets 2,034,308 1,626,897 532,144 8,789,462 2,566,452 10,416,359
Total assets 93,185,916 84,547,866 48,049,748 47,324,396 141,235,664 131,872,262
Deferred outflows
of resources 4,127,612 4,759,139 435,702 528,833 4,563,314 5,287,972
Long-term liabilities 40,482,244 44,687,704 35,108,922 35,675,060 75,591,166 80,362,764
Other liabilities 3,301,534 2,895,032 522,978 1,457,133 3,824,512 4,352,165
Total liabilities 43,783,778 47,582,736 35,631,900 37,132,193 79,415,678 84,714,929
Deferred inflows
of resources 1,893,729 1,386,971 222,927 150,616 2,116,656 1,537,587
Net position
Net investment in
capital assets 61,250,307 56,746,210 9,330,909 8,171,026 70,581,216 64,917,236
Restricted 1,679,172 1,345,927 1,679,172 1,345,927
Unrestricted (deficit)(11,293,458) (17,754,839) 3,299,714 2,399,394 (7,993,744) (15,355,445)
Total net position 51,636,021$ 40,337,298$ 12,630,623$ 10,570,420$ 64,266,644$ 50,907,718$
Governmental
Activities
Business-Type
Activities Totals
The largest component of the City’s net position as of September 30, 2019 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, 2019 increased by $15,956,112 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 $64,266,644. The City’s net position increased by $13,358,926 during the current fiscal year and was affected by increasing wastewater fees for services revenue, increasing General Fund sales and use tax revenue and overall continued control over expenses. The City saw an increase in wastewater fees for services revenue of $439,514 and an increase in General Fund sales and use tax revenue of $1,699,410.
6
A portion of net position is restricted, or has restrictions on how they may be used. Governmental activities restricted net position totaled $1,679,172 at September 30, 2019 and is restricted for use in law enforcement, road projects, capital projects, Elmore County district improvements, donations, debt service, and judicial. The remaining balance of unrestricted net position generally may be used to meet the City’s ongoing obligations. Governmental activities, at September 30, 2019, reported a deficit balance in unrestricted net position in governmental activities of ($11,293,458). 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 $3,299,714 at
September 30, 2019. The following presents the City’s condensed statement of activities for the fiscal years ended September 30, 2019 and 2018 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 $13,358,926.
This increase is primarily due to increases in wastewater fees for services and sales and use tax collections, as well as continued control over expenses.
2019 2018 2019 2018 2019 2018
Revenues
Program revenues
Charges for services 8,357,298$ 8,082,593$ 8,201,630$ 7,653,292$ 16,558,928$ 15,735,885$
Operating grants and
contributions 219,891 231,359 219,891 231,359
Capital grants and
contributions 4,814,309 4,226,472 805,763 224,640 5,620,072 4,451,112
Total program revenues 13,391,498 12,540,424 9,007,393 7,877,932 22,398,891 20,418,356
General revenues
Sales and use taxes 26,195,592 24,496,182 26,195,592 24,496,182
Real and personal
property taxes 2,683,078 2,903,635 2,683,078 2,903,635
Lodging taxes 2,476,053 2,288,773 2,476,053 2,288,773
Local gasoline taxes 1,175,500 1,070,850 1,175,500 1,070,850
Alcoholic beverage taxes 390,690 374,545 390,690 374,545
Rental taxes 484,343 393,905 484,343 393,905
Tobacco taxes 126,962 140,400 126,962 140,400
Excise taxes 222,161 146,943 222,161 146,943
Investment earnings 90,186 79,558 79,095 99,721 169,281 179,279
Miscellaneous revenue 366,270 602,010 27,261 366,270 629,271
Gain (loss) on disposal
of assets (46,495) 41,000 3,388 (5,495) 3,388
Transfers 85,000 (85,000)
Total general revenues 34,249,340 32,496,801 35,095 130,370 34,284,435 32,627,171
Total revenues 47,640,838 45,037,225 9,042,488 8,008,302 56,683,326 53,045,527
Governmental Business-Type
Activities Activities Totals
7
2019 2018 2019 2018 2019 2018
Expenses
General government 9,675,034 8,677,745 9,675,034 8,677,745
Public safety 16,509,683 16,611,555 16,509,683 16,611,555
Public works 6,719,792 5,872,825 6,719,792 5,872,825
Cultural and recreational 2,872,314 2,314,090 2,872,314 2,314,090
Economic development 1,828,093 1,828,093
Interest on long-term debt 565,292 589,467 565,292 589,467
Sanitation 2,789,159 2,994,426 2,789,159 2,994,426
Wastewater 4,193,126 3,989,631 4,193,126 3,989,631
Total expenses 36,342,115 35,893,775 6,982,285 6,984,057 43,324,400 42,877,832
Change in net position 11,298,723 9,143,450 2,060,203 1,024,245 13,358,926 10,167,695
Net position - beginning 40,337,298 31,193,848 10,570,420 9,546,175 50,907,718 40,740,023
Net position - ending 51,636,021$ 40,337,298$ 12,630,623$ 10,570,420$ 64,266,644$ 50,907,718$
Governmental Business-Type
Activities Activities Totals
Expenses and Program Revenues for Governmental Activities
Governmental activities increased the City of Prattville, Alabama’s net position by $11,298,723 for fiscal year 2019. The key elements of the increase in net position are the increases in revenue from the prior
year as follows:
• Overall increase in general and program revenues of $2,603,613, including an increase of $1,699,410 in sales and use taxes.
-
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
Generalgovernment Public safety Public works Cultural andrecreational Economicdevelopment Interest on long-term debt
Expenses and Program Revenue -Governmental Activities
2019 Expenses
2019 Revenues
2018 Expenses
2018 Revenues
8
18%
55%
6%
5%
3%1%
1%
0%0%0%
10%
1%
0%0%
Revenues By Source -Governmental Activities -FY 2019
Charges for services
Sales and use taxes
Real and personal propertytaxesLodging taxes
Local gasoline taxes
Alcoholic beverage taxes
Rental taxes
Tobacco taxes
Excise taxes
Operating grants andcontributions
18%
55%
7%
5%
2%
1%
1%0%0%
1%
9%
1%
0%
0%
Revenues By Source -Governmental Activities -FY 2018
Charges for services
Sales and use taxes
Real and personal propertytaxesLodging taxes
Local gasoline taxes
Alcoholic beverage taxes
Rental taxes
Tobacco taxes
Excise taxes
Operating grants andcontributions
9
Expenses and Program Revenues for Business-Type Activities Business-type activities increased the City of Prattville, Alabama’s net position by $2,060,203. Key elements of this change in net position are as follows:
• Wastewater operating expenses remained consistent with prior year, while the wastewater revenue increased by $439,514 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 continued during the year.
• Sanitation revenue increased by $108,824 during the year; however, an increase in the operating expenses due primarily to increases in auto maintenance costs throughout the year resulted in a negative change in net position of $55,715.
Financial Analysis of the City’s Funds As noted earlier, the City of Prattville, Alabama uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds - The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of expendable resources. Governmental fund types include general, debt service, capital projects, and special revenue funds. Such information is useful in assessing the City’s financing requirements. Specifically, unassigned fund balance can be a useful measure of a government’s net resources available for spending at the end of the fiscal year. The general fund is the chief operating fund of the City of Prattville, Alabama. As of September 30, 2019, governmental funds reported a combined ending fund balance of $18,786,722, an increase of $649,446 in comparison with the prior year balance. Of this balance, $909,667 is not available for new spending because it is a prepaid item or an advance to other funds; $1,679,172 is restricted for law enforcement, road projects, capital projects, and other; $4,094,915 is committed to debt service and capital projects; and $2,212,398 is assigned for capital projects, capital equipment, and other purposes.
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
Sanitation Wastewater
Expenses and Program Revenue -
Business-Type Activities
2019 Expenses
2019 Revenues
10
The fund balance of the general fund increased $162,496 during the current fiscal year after other financing sources including fund transfers. Total revenue increased $2,081,386 as compared to the prior year primarily due to an increase in sales and use tax revenue. The fund balance of the capital projects fund increased $656,871 during the current fiscal year after other financing sources including fund transfers, primarily due to various capital projects grants.
The fund balance of the debt service fund increased by $4,146 during the current fiscal year. The fund balance of the gas tax special revenue fund decreased $278,654 during the current fiscal year.
This decrease in the fund balance was the result of more paving projects executed during the fiscal year compared to the prior year.
The fund balance of the judicial special revenue fund increased $104,587 during the current fiscal year after other financing uses including transfers. The increase in the fund balance was primarily the result of increased fines and forfeitures revenue.
Proprietary funds - The City of Prattville, Alabama’s proprietary funds provide the same type of information
found in the government-wide financial statements, but in more detail. Unrestricted net position of the proprietary funds at the end of the year amounted to $3,299,714. The Sanitation fund had an overall decrease in net position of $55,715, and the Wastewater fund had an overall increase in net position of $2,115,918. Internal service funds - Internal service funds are designed to recover the internal costs of government
services provided to other funds groups. At September 30, 2019, the internal service fund reported a deficit of $237,283 for its net position balance. Contributions were increased for all participating funds for the year ended September 30, 2019. For 2019, 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, 2019 was $70,581,216 (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:
• Increases in construction in progress of $16,567,626, net of $299,482 placed in service
• Purchases of vehicles of $1,339,600
• Purchases of office, nonoffice, and computer equipment of $737,026
Governmental Business-Type
Activities Activities Total
Land 2,741,938$ 1,257,019$ 3,998,957$
Construction in progress 8,633,352 34,571,954 43,205,306
Buildings and building improvements 4,436,990 3,270,545 7,707,535
Land improvements 1,011,386 1,182,571 2,193,957
Vehicles 2,749,653 934,065 3,683,718
Office, nonoffice, and computer equipment 2,316,121 635,705 2,951,826
Infrastructure 47,617,403 47,617,403
Totals 69,506,843$ 41,851,859$ 111,358,702$
Additional information on the City’s capital assets can be found in Note 4 of the financial statements.
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Long-term debt - As of September 30, 2019, the governmental activities had total debt outstanding of $23,727,703 and the business-type activities had a total debt outstanding of $33,053,094.
2019 2018 Change
General obligation warrants 33,023,182$ 40,047,314$ (7,024,132)$
Warrants from direct placements 21,427,983 18,280,220 3,147,763
Capital leases 847,388 769,961 77,427
Limited obligation warrant 1,482,244 1,496,981 (14,737)
Totals 56,780,797$ 60,594,476$ (3,813,679)$
The City of Prattville, Alabama’s total debt outstanding decreased by $3,813,679 during the current fiscal year. During 2019, the City issued General Obligation Warrants, Series 2019 in the amount of $3,200,000 and General Obligation Warrant, Series 2018D-CWSRF-DL Special Authority Loan in the amount of $315,000. The City also entered into a capital lease agreement in the amount of $195,464. Additional information on the City’s debt can be found in Note 6 of the financial statements. Budgetary Highlights for the Fiscal Year Ending September 30, 2019 Budget to actual statements and schedules are provided in the financial statements for the General Fund, Gas Tax Special Revenue Fund, and Judicial 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, 2019, actual operating revenues for the General Fund were more than the budgeted amount by $820,782, or 2.02%. The primary reasons for the variance are as follows:
• Taxes were $966,324 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, 2019, actual operating expenditures for the General Fund were less than the budgeted
amount by $1,525,277, or 4.95%. Economic Factors and Year 2019 Budget Economic conditions for the City of Prattville, Alabama remain stable in the current environment.
• The City relies on taxes, fees, fines, and charges for services to fund their governmental activities. The primary source of revenue is sales taxes, which comprised approximately 63% of general fund revenues in fiscal year 2019. In the current economic climate, the City has instituted a temporary increase to the City’s sales tax rate to be used to service the City’s debt and to build reserves.
• The unemployment rate for Autauga County, where the City of Prattville, Alabama is primarily located, is currently 2.8%, which is a decrease compared to the prior year. The unemployment rate for the City of Prattville, Alabama is 2.2%. The unemployment rate compares favorably to both the state’s current unemployment rate of 3.0% and to the national average rate of 3.5%.
• The level of taxes, fees, and charges for services have a direct bearing on the City’s ability to (a) annex additional land into its corporate limits and (b) encourage development (office, retail, residential, and
industrial) to choose to be located in the jurisdiction. The City places emphasis on encouraging both annexation and strategic economic development. Requests for Information This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City of Prattville, Alabama’s finances and to demonstrate the City’s accountability. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City Clerk, 101 West Main Street, Prattville, Alabama 36067.
Basic Financial Statements
Autauga-Historic
Prattville Prattville Prattville
Governmental Business-Type Public Airport Redevelopment
Activities Activities Total Library Authority Authority
Assets
Cash and cash equivalents 15,589,830$ 5,004,766$ 20,594,596$ 337,241$ 612,873$ 87,921$
Interfund balances 827,263 (827,263)
Taxes receivable 2,575,799 2,575,799
Intergovernmental receivables 2,079,565 750,000 2,829,565
Accounts receivable, net 405,399 708,037 1,113,436 20,112 22,525
Inventory 11,369
Prepaid items 166,909 30,205 197,114 7,365
Restricted assets
Cash and cash equivalents 1,899,324 532,144 2,431,468 113,694
Other 134,984 134,984
Mortgage receivable 800,000
Capital assets, not depreciated 11,375,290 35,828,973 47,204,263 3,109,588 1,139,750
Capital assets, net of accumulated
depreciation 58,131,553 6,022,886 64,154,439 22,896 4,567,719 2,520,263
Total assets 93,185,916 48,049,748 141,235,664 367,502 8,321,661 4,684,153
Deferred Outflows of Resources
Deferred loss on refunding 627,688 627,688
Pension related items 3,135,666 435,702 3,571,368 88,105
OPEB related items 364,258 364,258
Total deferred outflows of resources 4,127,612 435,702 4,563,314 88,105
Liabilities
Accounts payable 2,115,939 195,088 2,311,027 2,348 4,587
Accrued liabilities 276,217 28,733 304,950 5,452
Accrued interest 182,733 282,204 464,937 10,843
Unearned revenues 323,610 323,610 48,300 246,335
Other liabilities 403,035 16,953 419,988
Long-term liabilities
Portion due or payable in one year
Long-term debt 3,410,883 1,174,550 4,585,433 33,349 171,234
Compensated absences 324,485 115,416 439,901
Portion due or payable after one year
Long-term debt 20,316,820 31,878,544 52,195,364 362,265 4,274,231
Compensated absences 907,894 73,733 981,627 6,214
Net pension liability 12,655,426 1,866,679 14,522,105 63,591
Total OPEB liability 2,866,736 2,866,736
Total liabilities 43,783,778 35,631,900 79,415,678 125,905 641,949 4,460,895
Deferred Inflows of Resources
Pension related items 1,893,729 222,927 2,116,656 47,238
Net Position
Net investment in capital assets 61,250,307 9,330,909 70,581,216 22,896 7,281,693 (738,322)
Restricted
Law enforcement 152,288 152,288
Road projects 304,320 304,320
Capital projects 669,621 669,621 113,694
Elmore County district improvements 376,412 376,412
Donations 37,810 37,810
Debt service 7,756 7,756
Judicial 130,965 130,965
Unrestricted (deficit)(11,293,458) 3,299,714 (7,993,744) 259,568 398,019 847,886
Total net position 51,636,021$ 12,630,623$ 64,266,644$ 282,464$ 7,679,712$ 223,258$
Component Units
City of Prattville, Alabama
Statement of Net Position
September 30, 2019
Primary Government
The accompanying notes are an integral part of these financial statements. 12
Operating Capital Autauga -Prattville Historic Prattville
Charges for Grants and Grants and Governmental Business-Type Prattville Airport Redevelopment
Expenses Services Contributions Contributions Activities Activities Total Public Library Authority Authority
Functions/Programs
Primary government
Governmental activities
General government 9,675,034$ 6,219,359$ 110,647$ (3,345,028)$ (3,345,028)$
Public safety 16,509,683 1,643,355 109,244 (14,757,084)(14,757,084)
Public works 6,719,792 4,792,309$ (1,927,483)(1,927,483)
Cultural and recreational 2,872,314 494,584 22,000 (2,355,730)(2,355,730)
Interest and fiscal charges 565,292 (565,292)(565,292)
Total governmental activities 36,342,115 8,357,298 219,891 4,814,309 (22,950,617)(22,950,617)
Business-type activities
Sanitation 2,789,159 2,753,354 (35,805)$ (35,805)
Wastewater 4,193,126 5,448,276 805,763 2,060,913 2,060,913
Total business-type activities 6,982,285 8,201,630 805,763 2,025,108 2,025,108 Total primary government 43,324,400$ 16,558,928$ 219,891$ 5,620,072$ (22,950,617) 2,025,108 (20,925,509)
Component units
Autauga-Prattville Public Library 621,707$ 28,989$ 83,290$ (509,428)$
Prattville Airport Authority 638,626 159,396 154,496$ (324,734)$
Historic Prattville Redevelopment
Authority 350,241 249,000 (101,241)$
Total component units 1,610,574$ 437,385$ 83,290$ 154,496$ (509,428)(324,734)(101,241)
General revenues
Sales and use taxes 26,195,592 26,195,592
Real and personal property taxes 2,683,078 2,683,078
Lodging taxes 2,476,053 2,476,053
Local gasoline taxes 1,175,500 1,175,500
Alcoholic beverage taxes 390,690 390,690
Rental taxes 484,343 484,343
Tobacco taxes 126,962 126,962
Excise taxes 222,161 222,161
Investment earnings 90,186 79,095 169,281 601 2,889 3,039
Miscellaneous revenue 366,270 366,270
City appropriation 310,000 110,000 27,529
County appropriation 192,500
Gain (loss) on disposal of assets (46,495)41,000 (5,495)
Transfers 85,000 (85,000)
Total general revenues and transfers 34,249,340 35,095 34,284,435 503,101 112,889 30,568
Change in Net Position 11,298,723 2,060,203 13,358,926 (6,327) (211,845) (70,673)
Net Position - Beginning 40,337,298 10,570,420 50,907,718 288,791 7,891,557 293,931 Net Position - Ending 51,636,021$ 12,630,623$ 64,266,644$ 282,464$ 7,679,712$ 223,258$
Program Revenues Component Units
City of Prattville, Alabama
Statement of Activities
For the Year Ended September 30, 2019
Net (Expense) Revenue and Changes in Net Position
Primary Government
The accompanying notes are an integral part of these financial statements. 13
Gas Tax Judicial
Capital Debt Special Special Total
Projects Service Revenue Revenue Governmental
General Fund Fund Fund Fund Fund Funds
Assets
Cash and cash equivalents 13,151,346$ 2,424,973$ 15,576,319$
Taxes receivable 2,575,799 2,575,799
Intergovernmental receivables 2,018,451 61,114$ 2,079,565
Accounts receivable, net 308,670 31,974 340,644
Due from other funds 113,304 31,137 144,441
Advances to other funds 733,758 733,758
Prepaid items 166,621 288$ 166,909
Restricted assets
Cash and cash equivalents 603,026 498,121 7,756$ 403,292 387,129 1,899,324
Other 134,984 134,984
Total assets 17,652,524$ 5,139,640$ 7,756$ 464,406$ 387,417$ 23,651,743$
Liabilities
Accounts payable 802,656$ 830,383$ 124,963$ 42,480$ 1,800,482$
Accrued liabilities 271,576 4,641 276,217
Other liabilities 387,309 189,336 576,645
Unearned revenues 150,000 150,000
Due to other funds 31,137 19,707 50,844
Total liabilities 1,492,678 980,383 124,963 256,164 2,854,188
Deferred Inflow of Resources
Unavailable revenue 1,975,660 35,123 2,010,783
Fund Balances
Nonspendable
Advances to other funds 733,758 733,758
Prepaid items 166,621 288 166,909
Restricted
Law enforcement 152,288 152,288
Road projects 304,320 304,320
Capital projects 36,516 633,105 669,621
Elmore County district
improvements 376,412 376,412
Donations 37,810 37,810
Debt service 7,756$ 7,756
Judicial 130,965 130,965
Committed
Debt service 3,634,602 3,634,602
Capital projects 460,313 460,313
Assigned
Industrial park improvement
fund 203,460 203,460
Parks and recreation 10,298 10,298
Facilities improvement 143,763 143,763
Infrastructure 725,423 725,423
Fire training 31,248 31,248
Capital equipment reserve 119,892 119,892
Other purposes 704,769 150,998 855,767
Unassigned 10,022,167 10,022,167
Total fund balances 16,159,846 2,183,597 7,756 304,320 131,253 18,786,772
Total liabilities, deferred
inflows of resources,
and fund balances 17,652,524$ 5,139,640$ 7,756$ 464,406$ 387,417$ 23,651,743$
City of Prattville, Alabama
Balance Sheet
Governmental Funds
September 30, 2019
The accompanying notes are an integral part of these financial statements. 14
Differences in amounts reported for governmental activities in the statement of net position:
Total fund balances - governmental funds 18,786,772$
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the governmental funds. Those assets consist of:
Land 2,741,938$
Construction in progress 8,633,352
4,436,990
1,011,386
2,749,653
Office, nonoffice, and computer equipment, net of $4,271,848 accumulated depreciation 2,316,121
47,617,403
Total capital assets 69,506,843
Revenues that are not available to pay for current period expenditures and,
therefore, are reported as deferred inflows of resources in the governmental funds.2,010,783
Internal service funds are used by management to charge the costs of employee
medical insurance to individual funds. The assets and liabilities of the internal
service fund are included in governmental activities in the statement of net position.(237,283)
Deferred outflows and inflows of resources are applicable to future periods and,
therefore, are not reported in the governmental funds.
Deferred loss on refunding 627,688
Pension related deferred outflows 3,135,666
OPEB related deferred outflows 364,258
Pension related deferred inflows (1,893,729)
Total deferred outflows and inflows of resources 2,233,883
Long-term liabilities are not due and payable in the current period and, therefore, are not
reported in the governmental funds.
Accrued interest payable (182,733)
General obligation warrants (16,795,000)
Unamortized debt issuance discounts 39,496
Unamortized debt issuance premiums (606,428)
Warrants from direct placements (4,036,139)
Capital leases (847,388)
Limited obligation warrant (1,482,244)
Compensated absences (1,232,379)
Net pension liability (12,655,426)
Total OPEB liability (2,866,736)
Total long-term liabilities (40,664,977)
Net position of governmental activities 51,636,021$
Infrastructure, net of $13,334,295 accumulated depreciation
City of Prattville, Alabama
Reconciliation of Balance Sheet of Governmental Funds to Statement of Net Position
September 30, 2019
Land improvements, net of $4,476,882 accumulated depreciation
Buildings and building improvements, net of $2,028,250 accumulated depreciation
Vehicles, net of $5,402,305 accumulated depreciation
The accompanying notes are an integral part of these financial statements. 15
Gas Tax Judicial
Capital Debt Special Special Total
General Projects Service Revenue Revenue Governmental
Fund Fund Fund Fund Fund Funds
Revenues
Taxes 33,365,229$ 389,150$ 33,754,379$
Licenses and permits 6,219,359 6,219,359
Intergovernmental revenues 184,178 3,144,666 288,198$ 3,617,042
Charges and fees for services 1,203,582 1,203,582
Fines and forfeitures 119,560 814,797$ 934,357
Investment earnings 59,745 17,974 12,034$ 248 90,001
Miscellaneous revenues 286,797 286,797
Total revenues 41,438,450 3,551,790 12,034 288,446 814,797 46,105,517
Expenditures
Current
General government 6,922,016 650,210 7,572,226
Public works 4,299,718 399,256 955,250 5,654,224
Public safety 13,523,445 13,523,445
Cultural and recreational 2,572,479 2,572,479
Capital outlay 2,911,355 6,404,858 9,316,213
Debt service
Principal payments 14,738 6,901,899 6,916,637
Interest and fiscal charges 25,064 3,045 722,799 750,908
Bond issuance costs 27,000 27,000
Total expenditures 30,268,815 6,834,159 7,624,698 955,250 650,210 46,333,132
Excess of revenues over
(under) expenditures 11,169,635 (3,282,369) (7,612,664) (666,804) 164,587 (227,615)
Other Financing Sources (Uses)
Insurance proceeds 63,688 63,688
Sale of capital assets 43,913 43,913
Transfers in 85,000 624,240 7,616,810 388,150 8,714,200
Transfers out (11,395,204)(200,000) (60,000)(11,655,204)
Proceeds from issuance of
long-term debt 3,515,000 3,515,000
Proceeds from issuance of
capital lease 195,464 195,464
Total other financing sources
(uses)(11,007,139)3,939,240 7,616,810 388,150 (60,000)877,061
Net Changes in Fund Balances 162,496 656,871 4,146 (278,654) 104,587 649,446
Fund Balances - Beginning 15,997,350 1,526,726 3,610 582,974 26,666 18,137,326
Fund Balances - Ending 16,159,846$ 2,183,597$ 7,756$ 304,320$ 131,253$ 18,786,772$
City of Prattville, Alabama
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2019
The accompanying notes are an integral part of these financial statements.
16
Differences in amounts reported for governmental activities in the statement of activities:
Net change in fund balances - total governmental funds 649,446$
Capital outlay, reported as expenditures in governmental funds, is shown as capital assets
in the statement of net position.9,316,213
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.539,125
Depreciation expense on governmental capital assets included in the governmental
activities in the statement of activities.(2,812,296)
The net effect of transactions involving the disposal of capital assets is to decrease net
position in the statement of net position.(90,409)
Debt proceeds provide current fiscal 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:
Long-term debt proceeds (3,515,000)$
Capital lease proceeds (195,464)
(3,710,464)
The repayment of the principal of long-term debt consumes the current financial resources
of governmental funds but has no effect on net position. 6,916,637
Some expenses reported in the statement of activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds:
Accrued interest payable 18,833
Compensated absences (74,561)
Change in net pension liability and related deferred amounts 49,566
Change in total OPEB liability and related deferred amounts (135,705)
(141,867)
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.21,702
Revenues are reported in the funds when there is an established claim 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.767,386
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.(156,750)
Change in net position of governmental activities 11,298,723$
City of Prattville, Alabama
For the Year Ended September 30, 2019
Reconciliation of Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds to Statement of Activities
The accompanying notes are an integral part of these financial statements. 17
Actual Amounts Variance With
Original Final Budgetary Basis Final Budget
Revenues
Taxes
Sales and use taxes 25,259,055$ 25,354,415$ 26,195,592$ 841,177$
Real and personal property taxes 2,812,150 2,812,150 2,683,078 (129,072)
Lodging taxes 2,064,880 2,064,880 2,086,903 22,023
Local gasoline taxes 1,160,100 1,160,100 1,175,500 15,400
Alcoholic beverage taxes 376,000 376,000 390,690 14,690
Rental taxes 385,000 385,000 484,343 99,343
Tobacco taxes 125,000 125,000 126,962 1,962
Excise taxes 121,360 121,360 222,161 100,801
Total taxes 32,303,545 32,398,905 33,365,229 966,324
Licenses and permits
Business licenses 5,248,000 5,402,903 5,214,854 (188,049)
Franchise fees 635,000 635,000 537,290 (97,710)
Building permits and inspection fees 439,000 439,000 463,975 24,975
Yard sale and special event permits 9,250 9,250 3,240 (6,010)
Total licenses and permits 6,331,250 6,486,153 6,219,359 (266,794)
Intergovernmental revenues
Grants 88,755 88,755 184,178 95,423
Charges and fees for services
Ambulance fees 766,500 766,500 685,205 (81,295)
Fire training tuition 12,000 12,000 23,793 11,793
Parks and recreation `311,475 311,475 435,192 `123,717
Performing and creative arts 52,000 52,000 59,392 7,392
Total charges and fees for services 1,141,975 1,141,975 1,203,582 61,607
Fines and forfeitures
Drug confiscation proceeds 81,650 81,650
Penalties and other fees 36,400 36,400 28,700 (7,700)
Accident reports 8,000 8,000 9,210 1,210
Total fines and forfeitures 44,400 44,400 119,560 75,160
Investment earnings
Interest 83,000 83,000 59,745 (23,255)
Miscellaneous revenues
Donations 77,000 92,000 110,647 18,647
Tower rent 20,400 20,400 41,527 21,127
Miscellaneous income 262,080 262,080 134,623 (127,457)
Total miscellaneous revenues 359,480 374,480 286,797 (87,683)
Total revenues 40,352,405 40,617,668 41,438,450 820,782
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Budgeted Amounts
City of Prattville, Alabama
For the Year Ended September 30, 2019
General Fund
The accompanying notes are an integral part of these financial statements. 18
Actual Amounts Variance With
Original Final Budgetary Basis Final Budget
Expenditures
General government
Executive 480,364$ 480,235$ 422,445$ 57,790$
Legislative 149,000 148,897 147,285 1,612
Finance 594,584 594,414 535,697 58,717
City clerk 196,198 192,608 176,581 16,027
Human resources 363,051 351,931 358,722 (6,791)
Information technology 1,604,398 1,577,052 1,436,923 140,129
Vehicle maintenance 358,391 353,965 300,549 53,416
Sales tax incentives 1,085,000 1,085,000 1,256,594 (171,594)
Building 424,934 422,928 366,178 56,750
City/County services 260,000 260,000 260,000
Community initiatives 868,094 868,094 808,058 60,036
Appropriations 680,000 680,000 697,517 (17,517)
Total general government 7,064,014 7,015,124 6,766,549 248,575
Public works
General public works 483,428 474,814 398,813 76,001
Planning and development 775,470 763,606 755,333 8,273
Urban management 1,543,017 1,499,395 1,353,355 146,040
Engineering 1,145,947 1,137,850 973,499 164,351
Facilities maintenance 552,416 565,237 560,299 4,938
Total public works 4,500,278 4,440,902 4,041,299 399,603
Public safety
Police 7,580,293 7,406,374 7,014,878 391,496
Fire 6,874,591 6,638,287 6,435,849 202,438
Total public safety 14,454,884 14,044,661 13,450,727 593,934
Cultural and recreational
Parks and recreation 2,433,666 2,424,573 2,293,399 131,174
Performing and creative arts 364,048 363,964 329,785 34,179
Total cultural and recreational 2,797,714 2,788,537 2,623,184 165,353
Capital outlay 1,749,820 2,521,831 2,394,717 127,114
Debt service
Principal payments 15,500 15,500 14,738 762
Interest and fiscal charges 15,000 15,000 25,064 (10,064)
Total debt service 30,500 30,500 39,802 (9,302)
Total expenditures 30,597,210 30,841,555 29,316,278 1,525,277
Excess of revenues over
expenditures 9,755,195 9,776,113 12,122,172 2,346,059
City of Prattville, Alabama
General Fund
Budgeted Amounts
For the Year Ended September 30, 2019
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
The accompanying notes are an integral part of these financial statements. 19
Actual Amounts Variance With
Original Final Budgetary Basis Final Budget
Other Financing Sources (Uses)
Insurance proceeds 90,000$ 90,000$ 63,688$ (26,312)$
Sale of capital assets 45,000 45,000 43,913 (1,087)
Transfers from capital projects fund 385,000 385,000 372,000 (13,000)
Transfers from sanitation fund 20,000 20,000
Transfers from wastewater fund 65,000 65,000
Transfers to capital projects fund (181,869) (451,255) (996,240) (544,985)
Transfers to debt service fund (3,670,910) (7,675,813) (7,616,810) 59,003
Transfers to internal service fund (2,966,000) (2,966,000) (2,966,004) (4)
Transfers to gas tax fund (188,150) (188,150) (188,150)
Proceeds from issuance of capital lease 195,464 195,464
Total other financing sources (uses)(6,486,929) (10,480,754) (11,007,139) (526,385)
Net change in fund balance,
budgetary basis 3,268,266$ (704,641)$ 1,115,033 1,819,674$
Adjustment for reconciling items to adjust from
budgetary basis to modified accrual basis
Change in encumbrances (952,537)
Net Change in Fund Balance, Modified Accrual Basis 162,496
Fund Balance - Beginning 15,997,350
Fund Balance - Ending 16,159,846$
City of Prattville, Alabama
For the Year Ended September 30, 2019
Budgeted Amounts
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
General Fund
The accompanying notes are an integral part of these financial statements.
20
Actual Amounts Variance With
Original Final Budgetary Basis Final Budget
Revenues
State gasoline and lubricating oil
excise tax 277,500$ 277,500$ 288,198$ 10,698$
Interest income 100 100 248 148
Total revenues 277,600 277,600 288,446 10,846
Expenditures
Public works 1,215,750 1,215,750 955,250 260,500
Excess of revenues under
expenditures (938,150) (938,150) (666,804) 271,346
Other Financing Sources
Transfers to capital projects fund 200,000 200,000 200,000
Transfers to general fund 188,150 188,150 188,150
Total other financing sources 388,150 388,150 388,150
Net change in fund balance,
budgetary basis (550,000)$ (550,000)$ (278,654) 271,346$
Net Change in Fund Balance, Modified Accrual Basis (278,654)
Fund Balance - Beginning 582,974
Fund Balance - Ending 304,320$
City of Prattville, Alabama
Gas Tax Special Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2019
Budgeted Amounts
The accompanying notes are an integral part of these financial statements. 21
Actual Amounts Variance With
Original Final Budgetary Basis Final Budget
Revenues
Fines and forfeitures 625,100$ 717,100$ 814,797$ 97,697$
Expenditures
General government
Judicial 543,672 635,672 618,753 16,919
Excess of revenues over
expenditures 81,428 81,428 196,044 114,616
Other Financing Uses
Transfers to internal service fund (60,000)(60,000)(60,000)
Net change in fund balance,
budgetary basis 21,428$ 21,428$ 136,044 114,616$
Adjustment for reconciling items to adjust from
budgetary basis to modified accrual basis
Change in encumbrances (31,457)
Net Change in Fund Balance, Modified Accrual Basis 104,587
Fund Balance - Beginning 26,666
Fund Balance - Ending 131,253$
Budgeted Amounts
City of Prattville, Alabama
Judicial Special Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Year Ended September 30, 2019
The accompanying notes are an integral part of these financial statements. 22
Governmental
Activities
Total Enterprise Internal Service
Sanitation Wastewater Funds Fund
Assets
Current assets
Cash and cash equivalents 163,648$ 4,841,118$ 5,004,766$ 13,511$
Intergovernmental receivables 750,000 750,000
Accounts receivables, net 234,023 474,014 708,037 64,755
Prepaid items 23,848 6,357 30,205
Total current assets 421,519 6,071,489 6,493,008 78,266
Noncurrent assets
Restricted cash 532,144 532,144
Capital assets, not being depreciated 338,654 35,490,319 35,828,973
Capital assets, net of accumulated
depreciation 934,800 5,088,086 6,022,886
Total noncurrent assets 1,273,454 41,110,549 42,384,003
Total assets 1,694,973 47,182,038 48,877,011 78,266
Deferred Outflows of Resources
Pension related items 219,177 216,525 435,702
Liabilities
Current liabilities
Accounts payable 62,819 132,269 195,088 153,327
Accrued liabilities 9,408 19,325 28,733 162,130
Accrued interest 282,204 282,204
Other liabilities 10,048 6,905 16,953
Due to other funds 93,505 93,505 92
Current portion of long-term debt 277,477 897,073 1,174,550
Current potion of compensated absences 115,416 115,416
Total current liabilities 359,752 1,546,697 1,906,449 315,549
Noncurrent liabilities
Long-term debt 187,294 31,691,250 31,878,544
Compensated absences 39,738 33,995 73,733
Net pension liability 913,190 953,489 1,866,679
Advances from other funds 733,758 733,758
Total noncurrent liabilities 1,873,980 32,678,734 34,552,714
Total liabilities 2,233,732 34,225,431 36,459,163 315,549
Deferred Inflows of Resources
Pension related items 87,695 135,232 222,927
Net Position
Net investment in capital assets 808,683 8,522,226 9,330,909
Unrestricted (deficit)(1,215,960) 4,515,674 3,299,714 (237,283)
Total net position (407,277)$ 13,037,900$ 12,630,623$ (237,283)$
City of Prattville, Alabama
Statement of Net Position
Proprietary Funds
September 30, 2019
Business-Type Activities
The accompanying notes are an integral part of these financial statements. 23
Governmental
Activities
Total Enterprise Internal Service
Sanitation Wastewater Funds Fund
Operating Revenues
Charges for goods and services 2,753,354$ 5,448,276$ 8,201,630$ 802,933$
Operating Expenses
Cost of sales and services 833,827 355,175 1,189,002
Salaries and benefits 912,688 1,347,084 2,259,772
Repairs and maintenance 188,675 109,520 298,195
Utilities 6,221 536,599 542,820
Insurance 59,542 49,003 108,545
Other 122,977 96,323 219,300 571,300
Depreciation 416,095 505,382 921,477
Benefits paid 4,041,009
Total operating expenses 2,540,025 2,999,086 5,539,111 4,612,309
Operating income (loss)213,329 2,449,190 2,662,519 (3,809,376)
Nonoperating Revenues (Expenses)
Gain on disposal 41,000 41,000
Interest income 92 79,003 79,095 185
Interest expense (9,136) (934,034) (943,170)
Miscellaneous revenues 126,433
Total nonoperating revenues
(expenses)(9,044) (814,031) (823,075) 126,618
Net income (loss) before capital
contributions and transfers 204,285 1,635,159 1,839,444 (3,682,758)
Capital contributions 805,763 805,763
Transfers in 3,526,008
Transfers out (260,000) (325,004) (585,004)
Change in Net Position (55,715) 2,115,918 2,060,203 (156,750)
Net Position - Beginning (351,562) 10,921,982 10,570,420 (80,533)
Net Position - Ending (407,277)$ 13,037,900$ 12,630,623$ (237,283)$
City of Prattville, Alabama
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended September 30, 2019
Business-Type Activities
The accompanying notes are an integral part of these financial statements.
24
Governmental
Activities
Total Enterprise Internal Service
Sanitation Wastewater Funds Funds
Cash Flows From (Used For) Operating Activities
Receipts from customers 2,710,807$ 5,304,058$ 8,014,865$
Receipts from interfund services provided 738,182$
Payments to suppliers (1,175,099) (1,267,629) (2,442,728)(4,673,521)
Payments to employees (921,859) (1,322,726) (2,244,585)
Net cash from (used for) operating activities 613,849 2,713,703 3,327,552 (3,935,339)
Cash Flows From (Used For) Noncapital Financing
Activities
Transfers to other funds (260,000)(325,004)(585,004)
Transfers from other funds 3,526,008
Net cash payments from (to) other funds (8,047) 16,508 8,461 14
Miscellaneous revenues 126,432
Net cash from (used for) noncapital financing activities (268,047) (308,496) (576,543) 3,652,454
Cash Flows From (Used For) Capital and Related
Financing Activities
Acquisition and construction of capital assets (52,224) (10,731,600)(10,783,824)
Capital contributions 55,763 55,763
Proceeds from sale of capital assets 41,000 41,000
Principal paid on long-term debt (273,377) (134,644) (408,021)
Interest paid on long-term debt (9,136) (934,034)(943,170)
Net cash from (used for) capital and related financing
activities (334,737)(11,703,515)(12,038,252)
Cash Flows From (Used For) Investing Activities
Interest received 92 79,003 79,095 185
Net cash from investing activities 92 79,003 79,095 185
Net Increase (Decrease) in Cash and Cash Equivalents 11,157 (9,219,305)(9,208,148)(282,700)
Cash and Cash Equivalents - Beginning 152,491 14,592,567 14,745,058 296,211
Cash and Cash Equivalents - Ending 163,648$ 5,373,262$ 5,536,910$ 13,511$
Reconciliation of Cash and Cash Equivalents
Cash and cash equivalents 163,648$ 4,841,118$ 5,004,766$ 13,511$
Restricted cash 532,144 532,144
163,648$ 5,373,262$ 5,536,910$ 13,511$
Reconciliation of Operating Income (Loss) to Net Cash
From (Used For) Operating Activities
Operating income (loss)213,329$ 2,449,190$ 2,662,519$ (3,809,376)$
Adjustments to reconcile operating income (loss) to net
cash from (used for) operations
Depreciation expense 416,095 505,382 921,477
Increase in accounts receivable (42,547)(144,218)(186,765)(64,753)
(Increase) decrease in prepaid items (2,456)740 (1,716)
Decrease in deferred outflows of resources 33,256 59,875 93,131
Decrease in accounts payable and accrued liabilities (29,649)(203,756)(233,405)(61,210)
Increase in deferred inflows of resources 25,821 46,490 72,311
Net cash from (used for) operating activities 613,849$ 2,713,703$ 3,327,552$ (3,935,339)$
City of Prattville, Alabama
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2019
Business-Type Activities
The accompanying notes are an integral part of these financial statements. 25
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
26
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, 2019. 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 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, 2019. 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 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, 2019. The HPRA 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. 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.
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
27
Note 1 - Summary of Significant Accounting Policies (continued) 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.
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 other departments 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.
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
28
Note 1 - Summary of Significant Accounting Policies (continued) 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.
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 nonoperating 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 nonoperating 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).
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
29
Note 1 - Summary of Significant Accounting Policies (continued) 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.
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, 2019; therefore, none are reported on the statement of net position. Inventory of the Prattville Airport Authority, a component unit, consists of aviation fuel and is valued at the lower of cost or market determined on a first-in-first-out basis.
Restricted assets - Resources from federal and state grants/loans, appropriations and shared taxes, and drug confiscation proceeds are classified as restricted assets on the statement of net position and 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. Interest incurred during the construction phase of capital assets is not included as part of the capitalized value of the assets constructed. 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:
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
30
Note 1 - Summary of Significant Accounting Policies (continued)
Asset Class Estimated Useful Lives Capitalization Threshold
Buildings and 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
Capital assets of the Prattville Airport Authority, a component unit, are depreciated using the straight-line method over the following estimated useful lives:
Asset Class Estimated Useful Lives Capitalization Threshold
Land improvements 20 years 5,000$
Buildings 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:
Asset Class Estimated Useful Lives Capitalization Threshold
Buildings and improvements 40 years 25,000$
Land improvements 20 years 25,000
Machinery and equipment 5 - 10 years 5,000 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 apply 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 deferred outflows of resources 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 has a deferred outflow related to the City’s pension plan. See Note 8. In addition, a deferred outflow of resources is reported for postemployment benefit plans other than pension (OPEB) related items. See Note 9. The Library has deferred outflow related to its pension plan.
Deferred inflows of resources - Increases in net position that apply to future periods are reported as deferred inflows of resources in a separate section of the government-wide statement of net position and/or governmental funds’ balance sheet. The City has deferred inflows of resources that qualify for reporting in this category. The City has a deferred inflow related to the City’s pension plan. See Note 8. The Library also has deferred inflow related to its pension plan.
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
31
Note 1 - Summary of Significant Accounting Policies (continued) In addition, the City’s governmental funds report unavailable revenue 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. 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.
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. Fund balance - In accordance with Governmental Accounting Standards Board Statement 54, Fund
Balance Reporting and Governmental Fund Type Definitions, the City classifies government fund balance as follows:
Nonspendable - includes fund balance amounts that cannot be spent either because it is not in spendable form, or for legal or contractual requirements. This would include inventories, deposits, and prepaid items. Restricted - includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors, or amounts constrained due to constitutional provisions or enabling legislation.
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
32
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. Postemployment benefits other than pensions (OPEB) - The City records a liability in the government-wide financial statements for future healthcare benefits for eligible retirees and their spouses. The total OPEB liability at September 30, 2019 was $2,866,736. Management estimates and assumptions - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could vary from estimates used. Note 2 - Stewardship, Compliance, and Accountability Budgets and budgetary accounting - The budget is adopted annually at the beginning of each fiscal year for the General Fund, Gas Tax Special Revenue Fund, Capital Projects Fund, Debt Service Fund, and Judicial Special Revenue Fund. The Council must approve transfers of appropriations or revisions between and among departments. Management can approve transfers within an individual department only. Actual expenditures should not exceed appropriations in departments. During 2019, the debt service excess of expenditures over budget was primarily due to unbudgeted interest payments on the line of credit.
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
33
Appropriations lapse at the end of the fiscal year unless expended or encumbered. Encumbered appropriations are carried forward. Encumbrances (e.g., purchase orders, contracts) outstanding at year end are reported as assigned fund balance and do not constitute expenditures or liabilities of the fund. Budgets for the above-mentioned funds are adopted on a basis other than accounting principles generally accepted in the United States of America (GAAP) insofar as encumbrances are included with expenditures.
Reconciliation of expenditures reported in accordance with GAAP and those presented in accordance with the nonGAAP budgetary basis are noted below.
General Fund
Net change in fund balance, modified accrual basis 162,496$
Encumbrances at beginning of the year 1,601,189
Encumbrances at end of the year (648,652)
Net change in fund balance, budgetary basis 1,115,033$
Judicial Special
Revenue Fund
Net change in fund balance, modified accrual basis 104,587$
Encumbrances at beginning of the year 31,507
Encumbrances at end of the year (50)
Net change in fund balance, budgetary basis 136,044$
Deficit fund balance - Funds with deficit fund balance or net position are as follows:
Deficit Amount
Sanitation 407,277$
Internal Service Fund 237,283
The deficit in the Sanitation Fund is the result of current year expenditures and net transfers out exceeding revenues. 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 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, 2019
34
Note 4 - Capital Assets Capital asset activity for the City’s governmental activities for the year ended September 30, 2019 was as follows:
Beginning Ending
Balances Increases Decreases Balances
Capital assets, not being
depreciated
Land 2,719,938$ 22,000$ 2,741,938$
Construction in progress 1,895,413 6,737,939 8,633,352
Total capital assets, not being
depreciated 4,615,351 6,759,939 11,375,290
Capital assets, being depreciated
Buildings and improvements 6,287,676 177,564 6,465,240
Land improvements 6,121,542 474,656 1,107,930$ 5,488,268
Vehicles 7,194,797 1,287,376 330,215 8,151,958
Office, nonoffice, and computer
equipment 6,335,081 638,679 385,791 6,587,969
Infrastructure 60,434,573 517,125 60,951,698
Total capital assets, being
depreciated 86,373,669 3,095,400 1,823,936 87,645,133
Less accumulated depreciation
Buildings and improvements 1,857,455 170,795 2,028,250
Land improvements 5,508,550 76,262 1,107,930 4,476,882
Vehicles 4,781,098 926,839 305,632 5,402,305
Office, nonoffice, and computer
equipment 4,176,898 414,915 319,965 4,271,848
Infrastructure 12,110,810 1,223,485 13,334,295
Total accumulated depreciation 28,434,811 2,812,296 1,733,527 29,513,580
Total capital assets, being
depreciated, net 57,938,858 283,104 90,409 58,131,553
Governmental activities capital
assets, net 62,554,209$ 7,043,043$ 90,409$ 69,506,843$
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
35
Note 4 - Capital Assets (continued) Capital asset activity for the City’s business-type activities for the year ended September 30, 2019 was as follows:
Beginning Ending
Balances Increases Decreases Balances
Capital assets, not being
depreciated
Land 1,257,019$ 1,257,019$
Construction in progress 25,041,749 9,829,687$ 299,482$ 34,571,954
Total capital assets, not being
depreciated 26,298,768 9,829,687 299,482 35,828,973
Capital assets, being depreciated
Buildings and improvements 6,808,032 6,808,032
Land improvements 3,311,063 244,179 3,555,242
Vehicles 3,124,292 52,224 3,176,516
Office, nonoffice, and computer
equipment 1,427,805 98,347 92,517 1,433,635
Total capital assets, being
depreciated 14,671,192 394,750 92,517 14,973,425
Less accumulated depreciation
Buildings and improvements 3,365,030 172,457 3,537,487
Land improvements 2,225,765 146,906 2,372,671
Vehicles 1,740,155 502,296 2,242,451
Office, nonoffice, and computer
equipment 790,629 99,818 92,517 797,930
Total accumulated depreciation 8,121,579 921,477 92,517 8,950,539
Total capital assets, being
depreciated, net 6,549,613 (526,727) 6,022,886
Business-type activities capital
assets, net 32,848,381$ 9,302,960$ 299,482$ 41,851,859$ Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities
General government 1,284,772$
Public works 540,392
Public safety 803,811
Cultural and recreational 183,321
Total depreciation expense - governmental activities 2,812,296$
Business-Type Activities
Sanitation 416,095$
Wastewater 505,382
Total depreciation expense - business-type activities 921,477$
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
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Note 4 - Capital Assets (continued) Component units - Capital asset activity for the Autauga-Prattville Public Library for the year ended September 30, 2019 was as follows:
Beginning Ending
Balances Increases Decreases Balances
Capital assets, being depreciated
Equipment 137,077$ 137,077$
Accumulated depreciation 111,235 2,946$ 114,181
Total capital assets, being
depreciated, net 25,842$ (2,946)$ -$ 22,896$
Capital asset activity for the Prattville Airport Authority for the year ended September 30, 2019 was as
follows:
Beginning Ending
Balances Increases Decreases Balances
Capital assets, not being depreciated
Land 3,079,667$ 29,921$ 3,109,588$
Construction in progress 15,742 15,742$
Total capital assets, not being
depreciated 3,095,409 29,921 15,742 3,109,588
Capital assets, being depreciated
Land improvements 1,495,301 161,964 1,657,265
Runways 6,708,698 6,708,698
Buildings and improvements 1,411,009 1,501 1,409,508
Furniture and equipment 499,922 95,871 293 595,500
Total capital assets, being
depreciated 10,114,930 257,835 1,794 10,370,971
Less accumulated depreciation
Land improvements 936,825 81,661 1,018,486
Runways 3,730,620 233,306 3,963,926
Buildings and improvements 592,497 29,591 1,501 620,587
Furniture and equipment 167,235 33,311 293 200,253
Total accumulated depreciation 5,427,177 377,869 1,794 5,803,252
Total capital assets, being
depreciated, net 4,687,753 (120,034) 4,567,719
Total capital assets, net 7,783,162$ (90,113)$ 15,742$ 7,677,307$
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
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Capital asset activity for the Historic Prattville Redevelopment Authority for the year ended September 30, 2019 was as follows:
Beginning Ending
Balances Increases Decreases Balances
Capital assets, not being depreciated
Land 1,139,750$ 1,139,750$
Capital assets, being depreciated
Buildings and improvements 2,629,411 2,629,411
Land improvements 165,499 165,499
Machinery and equipment 23,000 23,000
Total capital assets, being
depreciated 2,817,910 2,817,910
Less accumulated depreciation
Buildings and improvements 180,724 65,736$ 246,460
Land improvements 19,912 8,275 28,187
Machinery and equipment 23,000 23,000
Total accumulated depreciation 223,636 74,011 297,647
Total capital assets, being
depreciated, net 2,594,274 (74,011) 2,520,263
Total capital assets, net 3,734,024$ (74,011)$ -$ 3,660,013$
HPRA holds a mortgage receivable of $800,000. Interest on the mortgage receivable accrues at a fixed
rate of 1.52% per annum on $300,000 of the mortgage receivable balance. The remaining $500,000 of the mortgage receivable is noninterest bearing. Principal and accrued interest on the mortgage became due December 31, 2019 and is in the process of being extended.
Note 5 - Interfund Balances Interfund transactions are generally used to meet cash demands necessary to pay operating expenditures.
These amounts should be repaid during the next fiscal year. Amounts reported in the fund financial statements as interfund receivables and payables are eliminated in the entity-wide governmental column of the statement of net position, except for the net residual amounts due between governmental and business-type activities, which are presented as internal balances.
The composition of interfund receivables and payables as of September 30, 2019 consisted of the following:
Payable Fund Amount
Due to/from other funds
General Fund Judicial Special Revenue Fund 19,707$
General Fund Wastewater 93,505
General Fund Internal Service Fund 92
Capital Projects Fund General Fund 31,137
Total 144,441
Advance to/from other funds
General Fund Sanitation 733,758
Total 878,199$
Receivable Fund
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
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The following is a schedule of interfund transfers for the year ended September 30, 2019:
Gas Tax
Capital Debt Special Internal
General Projects Service Revenue Service
Fund Fund Fund Fund Fund Total
General Fund 624,240$ 7,616,810$ 188,150$ 2,966,004$ 11,395,204$
Capital Projects
Fund 200,000 200,000
Judicial Special
Revenue Fund 60,000 60,000
Sanitation 20,000$ 240,000 260,000
Wastewater 65,000 260,004 325,004
Totals 85,000$ 624,240$ 7,616,810$ 388,150$ 3,526,008$ 12,240,208$
Transfer Out 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 Long-term liability activity for the year ended September 30, 2019 was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental Activities
General obligation warrants 23,475,000$ 6,680,000$ 16,795,000$ 2,925,000$
Deferred amounts
Debt issuance discounts (47,390)(7,894) (39,496)
Debt issuance premiums 808,107 201,679 606,428
Total general obligation
warrants 24,235,717 6,873,785 17,361,932 2,925,000
Warrants from direct
placements 625,000 3,515,000$ 103,861 4,036,139 325,667
Capital leases 769,961 195,464 118,037 847,388 160,216
Limited obligation warrant 1,496,981 14,737 1,482,244
Total long-term debt 27,127,659 3,710,464 7,110,420 23,727,703 3,410,883
Compensated absences 1,157,818 639,589 565,028 1,232,379 324,485
Net pension liability 14,168,256 1,178,910 2,691,740 12,655,426
Total OPEB liability 2,233,971 671,703 38,938 2,866,736
Governmental activities
long-term liabilities 44,687,704 6,200,666 10,406,126 40,482,244 3,735,368
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
39
Note 6 - Long-Term Debt (continued)
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Business-Type Activities
General obligation warrants 15,505,000$ 15,505,000$ 50,000$
Deferred amounts
Debt issuance premiums 161,953 5,703$ 156,250
Total general obligation
warrants 15,666,953 5,703 15,661,250 50,000
Warrants from direct
placements 17,799,864 408,020 17,391,844 1,124,550
Total long-term debt 33,466,817 413,723 33,053,094 1,174,550
Compensated absences 170,518 74,147$ 55,516 189,149 115,416
Net pension liability 2,037,725 133,293 304,339 1,866,679
Business-type activities
long-term liabilities 35,675,060 207,440 773,578 35,108,922 1,289,966
Total long-term liabilities 80,362,764$ 6,408,106$ 11,179,704$ 75,591,166$ 5,025,334$
General obligation warrants - General obligation warrants at September 30, 2019 consisted of the following:
Governmental Activities
3,920,000$
5,160,000
7,715,000 Total governmental activities 16,795,000
General Obligation Refunding Warrants, Series 2013-A; 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 2.50%; rate on current bonds
2.00%; final payment is due March 1, 2025. Proceeds used for the partial refunding of
the Series 2006A General Obligation Economic Development Improvement Warrants.
General Obligation Refunding Warrants, Series 2014; 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 4.00%; final
payment is due March 1, 2026. Proceeds used for the partial refunding of the Series
2007 General Obligation Economic Development Improvement Warrants.
General Obligation Refunding Warrants, Series 2015; principal amount $12,280,000;
graduated principal payments are due annually beginning November 1, 2015 and
semiannual interest payments due each November 1 and May 1, beginning November
1, 2015; interest rate ranges from 1.5%to 5.0%; rate on current bonds 3.0%; final
payment is due November 1, 2025. Proceeds used for the partial refunding of the
Series 2006A General Obligation Economic Development Improvement Warrants and
partial refunding of the Series 2006B General Obligation Economic Development
Improvement Warrants.
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
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Note 6 - Long-Term Debt (continued)
Business-Type Activities
15,505,000$ Total general obligation warrants 32,300,000$
General Obligation Sewer Warrants, Series 2017-A; principal amount $15,505,000; graduated principal payments are due annually beginning November 1, 2019 and semiannual interest payments due each November 1 and May 1, beginning May 1,
2018; interest rate ranges from 2.0% to 4.0%; rate on current bonds 2.0%; final
payment is due November 1, 2047. Proceeds used for wastewater plant expansion project.
General obligation warrants constitute general obligations of the City for the payments of which the full faith and credit of the City are irrevocably pledged. Debt service requirements to maturity for general obligation warrants outstanding at September 30, 2019 were as follows:
Principal Interest Total
2020 2,925,000$ 469,441$ 3,394,441$
2021 3,000,000 395,000 3,395,000
2022 3,085,000 307,940 3,392,940
2023 3,185,000 204,659 3,389,659
2024 3,260,000 113,789 3,373,789
2025 - 2029 1,340,000 68,000 1,408,000
Totals 16,795,000$ 1,558,829$ 18,353,829$
Principal Interest Total
2020 50,000$ 565,910$ 615,910$
2021 50,000 564,910 614,910
2022 50,000 563,910 613,910
2023 50,000 562,910 612,910
2024 55,000 561,860 616,860
2025 - 2029 280,000 2,790,470 3,070,470
2030 - 2034 325,000 2,748,060 3,073,060
2035 - 2039 1,500,000 2,669,260 4,169,260
2040 - 2044 6,765,000 1,781,150 8,546,150
2045 - 2048 6,380,000 456,225 6,836,225
Totals 15,505,000$ 13,264,665$ 28,769,665$
Business-Type Activities
Governmental Activities
Year Ending September 30
Year Ending September 30
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
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Note 6 - Long-Term Debt (continued)
Principal Interest Total
2020 2,975,000$ 1,035,351$ 4,010,351$
2021 3,050,000 959,910 4,009,910
2022 3,135,000 871,850 4,006,850
2023 3,235,000 767,569 4,002,569
2024 3,315,000 675,649 3,990,649
2025 - 2029 1,620,000 2,858,470 4,478,470
2030 - 2034 325,000 2,748,060 3,073,060
2035 - 2039 1,500,000 2,669,260 4,169,260
2040 - 2044 6,765,000 1,781,150 8,546,150
2045 - 2048 6,380,000 456,225 6,836,225
Totals 32,300,000$ 14,823,494$ 47,123,494$
Year Ending September 30
Total Annual Requirements
Warrants from direct borrowings and direct placements - Warrants from direct borrowings and direct placements at September 30, 2019 consisted of the following:
Governmental Activities
370,000$
230,000
305,000
General Obligation Warrant, Series 2016-CWSRF-DL Special Authority Loan with
Alabama Water Pollution Control Authority and Alabama Department of
Environmental Management; principal amount $415,000; 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. Proceeds used for the North Silver Hills
Drainage Canal Restoration.
General Obligation Warrant, 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 used for the Woodvale Drainage Project.
General Obligation Warrant, Series 2018D-CWSRF-DL Special Authority Loan with
Alabama Water Pollution Control Authority and Alabama Department of
Environmental Management; principal amount $315,000; graduated principal
payments due annually beginning August 15, 2019 and semiannual interest
payments due each February 15 and August 15, beginning August 15, 2019;
interest rate 1.45% from November 1, 2018 to July 1, 2019 and 2.20% thereafter;
final payment is August 15, 2038. Proceeds used for the 10th Street Drainage
Project.
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
42
Note 6 - Long-Term Debt (continued)
3,131,139$
Total governmental activities 4,036,139
Business-Type Activities
127,073
464,771
16,800,000
Total business-type activities 17,391,844
Total warrants from direct placements 21,427,983$
General Obligation Warrant, Series 2018-CWSRF-DL Special Authority Loan with
Alabama Water Pollution Control Authority and Alabama Department of
Environmental Management; principal amount $16,800,000; graduated principal
payments due annually beginning February 15, 2020 and semiannual interest
payments due each February 15 and August 15, beginning August 15, 2018;
interest rate 2.20%; final payment is February 15, 2038. Proceeds used for Pine
Creek and Autauga Creek wastewater treatment plant improvements.
General Obligation Warrants, Series 2019 with BB&T;principal amount $3,200,000;
principal and interest payments of $92,941 due quarterly beginning on July 30,
2019; interest rate is fixed at 3.01%; final payment is due April 30, 2029. Proceeds
used for refunding of the General Obligation Warrant, Series 2018B and for the
South Industrial Road and Bridge Project.
General Obligation Sewer Warrant, Series 2013 with BBVA Compass; principal
amount $900,000; 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
wastewater byproduct application site.
General Obligation Revenue Warrant, Series 2016 with Trustmark National Bank;
principal amount of $1,360,415; principal and interest payments of $23,543 due
monthly beginning on June 27, 2016; interest rate of 1.49%; final maturity date is
May 27, 2021. Proceeds used to purchase sanitation trucks.
Warrants from direct placements constitute general obligations of the City for the payments of which the full faith and credit of the City are irrevocably pledged. Debt service requirements to maturity for warrants
from direct placements outstanding at September 30, 2019 were as follows:
Principal Interest Total
2020 325,667$ 110,679$ 436,346$
2021 334,211 101,145 435,356
2022 343,015 91,351 434,366
2023 352,087 81,289 433,376
2024 361,435 70,951 432,386
2025 - 2029 1,864,724 189,413 2,054,137
2030 - 2034 265,000 36,740 301,740
2035 - 2038 190,000 8,140 198,140
Totals 4,036,139$ 689,708$ 4,725,847$
Governmental Activities
Year Ending September 30
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
43
Note 6 - Long-Term Debt (continued)
Principal Interest Total
2020 1,124,550$ 368,142$ 1,492,692$
2021 922,294 346,723 1,269,017
2022 750,000 329,340 1,079,340
2023 770,000 312,620 1,082,620
2024 785,000 295,515 1,080,515
2025 - 2029 4,205,000 1,207,305 5,412,305
2030 - 2034 4,695,000 718,245 5,413,245
2035 - 2038 4,140,000 184,360 4,324,360
Totals 17,391,844$ 3,762,250$ 21,154,094$
Principal Interest Total
2020 1,450,217$ 478,821$ 1,929,038$
2021 1,256,505 447,868 1,704,373
2022 1,093,015 420,691 1,513,706
2023 1,122,087 393,909 1,515,996
2024 1,146,435 366,466 1,512,901
2025 - 2029 6,069,724 1,396,718 7,466,442
2030 - 2034 4,960,000 754,985 5,714,985
2035 - 2038 4,330,000 192,500 4,522,500
Totals 21,427,983$ 4,451,958$ 25,879,941$
Business-Type Activities
Total Annual Requirements
Year Ending September 30
Year Ending September 30
The City’s general obligation warrants with the Alabama Water Pollution Control Authority and the Alabama Department of Environmental Management contain provisions that in any event of default resulting from the failure to comply with the applicable requirements of the Davis-Bacon Act or the American Iron and
Steel Requirement in connection with the development or construction of projects, due dates are accelerated and the agreements are terminated. 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 Activities
Vehicles 985,215$
Office, nonoffice, and computer equipment 195,464
Less accumulated depreciation 382,126
Total 798,553$
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
44
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, 2019 were as follows:
Year Ending September 30 Amount
2020 177,684$
2021 123,311
2022 123,311
2023 123,311
2024 123,311
2025 - 2027 252,656
Total minimum lease payments 923,584
Less amount representing interest 76,196
Present value of minimum lease payments 847,388$
Governmental Activities
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, 2019, the City had redeemed $112,246 of the outstanding warrants. The balance on the warrant at September 30, 2019 is $1,482,243. The Limited Obligation Warrant does not constitute a direct obligation and pledge of the full faith and credit of the City.
Other liabilities - governmental activities - Compensated absences, pension benefits, and postemployment
benefits other than pensions are generally liquidated by the General Fund. Component units - Long-term liability activity for the Prattville Airport Authority for the year ended September 30, 2019 was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Bond from direct
placement 427,465$ -$ 31,851$ 395,614$ 33,349$
The Prattville Airport Authority issued Revenue Bond, Series 2014 in the amount of $551,266 for the purpose of refunding the Series 2008 Revenue and Grant Anticipation Bond. Principal and interest
payments are due monthly beginning May 22, 2014. The bond bears a 4.69% interest rate and matures on April 1, 2029. The bond is secured by a pledge of unrestricted grant funds and revenues derived from the operation of the Airport. In the event of default, the outstanding balance becomes immediately due and payable. The balance on the bond at September 30, 2019 was $395,614.
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
45
Note 6 - Long-Term Debt (continued) Debt service requirements on the bond from direct placement at September 30, 2019 were as follows:
Principal Interest Total
2020 33,349$ 18,138$ 51,487$
2021 35,021 16,466 51,487
2022 36,723 14,764 51,487
2023 38,507 12,980 51,487
2024 40,347 11,139 51,486
2025 - 2029 211,667 24,303 235,970
Totals 395,614$ 97,790$ 493,404$
Prattville Airport Authority
Year Ending September 30
Long-term debt activity for the Historic Prattville Redevelopment Authority for the year ended September 30, 2019 was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Redevelopment bonds 4,555,000$ 115,000$ 4,440,000$ 115,000$
Deferred amounts
Debt issuance discount (53,810)(3,041)(50,769)
Total redevelopment bonds 4,501,190 111,959 4,389,231 115,000
Notes from direct borrowings 75,051 18,817 56,234 56,234
Total long-term debt 4,576,241$ -$ 130,776$ 4,445,465$ 171,234$
Redevelopment bonds - Redevelopment bonds at September 30, 2019 consisted of the following:
4,440,000$
Redevelopment Bonds,Series 2016;principal amount of $4,780,000;graduated
principal payments due annually beginning March 1,2017 and semiannual interest
payments due each March 1 and September 1,beginning September 1,2016;interest
rate ranges from 1.700%to 3.625%;final payment is due March 1,2046.Proceeds
were used to redeem an outstanding loan of $1,755,250 and to renovate the
administrative building, which is leased to the City.
Redevelopment bonds of the Historic Prattville Redevelopment Authority are payable solely from lease payments received from the City. The obligation of the City to pay its lease payments is a general obligation of the City. Debt service requirements to maturity for redevelopment bonds outstanding at September 30, 2019 were as follows:
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
46
Principal Interest Total
2020 115,000$ 128,966$ 243,966$
2021 120,000 126,616 246,616
2022 120,000 124,396 244,396
2023 125,000 122,314 247,314
2024 125,000 120,001 245,001
2025 - 2029 675,000 558,298 1,233,298
2030 - 2034 760,000 469,028 1,229,028
2035 - 2039 880,000 348,866 1,228,866
2040 - 2044 1,045,000 183,019 1,228,019
2045 - 2046 475,000 17,309 492,309
Totals 4,440,000$ 2,198,813$ 6,638,813$
Historic Prattville Redevelopment Authority
Year Ending September 30
Notes from direct borrowings - Notes from direct borrowings at September 30, 2019 consisted of the following:
56,234$
Commercial loan with Trustmark National Bank;principal amount of $247,000;principal
and interest payments of $1,811 due monthly;interest rate of 4.34%;final maturity date is
December 5, 2019. Proceeds used to purchase real estate.
Notes from direct borrowings are secured by real estate. Debt service requirements to maturity for notes from direct borrowings outstanding at September 30, 2019 were as follows:
Principal Interest Total
2020 56,234$ 599$ 56,833$
Historic Prattville Redevelopment Authority
Year Ending September 30
In January 2020, the Historic Prattville Redevelopment Authority extended the terms of the commercial loan with Trustmark Bank. Under the new terms, principal and interest payments of $1,607 are due monthly beginning in February 2020. The loan bears an interest rate of 5.71%, and final payment is due Janaury 10, 2023. Covenants and limitations - 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, 2019, the amount of outstanding debt applicable to this limit was equal to 5.31% of property assessments as of October 1, 2018. Note 7 - Short-Term Debt On August 26, 2019, the City issued General Obligation Revenue Warrants, Series 2019B and 2019C. Series 2019B was issued in the amount $1,000,000 to be used as a line of credit for general working capital purposes. Series 2019C was issued in the amount of $3,000,000 to be used as a line of credit for economic development projects. Both lines of credit bear an interest rate of 3.0%, with interest due monthly. The maturity dates are June 30, 2020 and July 31, 2020, respectively. At September 30, 2019, the balances of the warrants had been paid in full.
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
47
Short-term debt activity for the year ended September 30, 2019 was as follows:
Beginning Ending
Balance Additions Reductions Balance
Short-term debt -$ 2,463,638$ 2,463,638$ -$
Note 8 - Pension Plan Plan description - The Employees' Retirement System of Alabama (ERS), an agent multiple-employer plan, was established as of October 1, 1945, pursuant to the Code of Alabama 1975, Title 36, Chapter 27 (Act 515 of the Legislature of 1945). The purpose of the ERS is to provide 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 which consists of 13 trustees. The Plan is administered by the Retirement Systems of Alabama (RSA). The Code of Alabama 1975, Title 36, Chapter 27 grants the authority 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 the Code of
Alabama 1975, Section 36-27-6. Benefits provided - State law establishes retirement benefits as well as death and disability benefits and
any ad hoc increase in postretirement benefits for the ERS. Benefits for ERS members vest after 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 3 of the last 10 years) for each year of service. State Police are allowed 2.875% for each year of State Police service in computing the formula method.
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
48
Note 8 - Pension Plan (continued) 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 1.65% of their average final compensation (highest 5 of the last 10 years) for each year of service. State Police are allowed 2.375% 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 equal to the annual earnable compensation of the member as reported to the Plan for the preceding year ending September 30 are paid to the beneficiary. The ERS serves approximately 909 local participating employers. The ERS membership includes
approximately 90,999 participants and the City’s membership includes 497 participants. As of September 30, 2018, membership consisted of:
ERS City
Retirees and beneficiaries currently receiving benefits 24,818 120
Terminated employees entitled to but not yet receiving benefits 1,426 4
Terminated employees not entitled to a benefit 7,854 28
Active members 56,760 345
Post DROP participants who are still in active service 141
Totals 90,999 497 Contributions - Covered members of the ERS contributed 5% 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 7.5% of earnable compensation. Certified law enforcement, correctional officers, and firefighters of the ERS contributed 6% 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 8.5% of earnable compensation. State Police of the ERS contribute 10% 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% 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% of earnable compensation. Tier 2 State Police members of the ERS contribute 10% 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 preretirement death benefit, and administrative expenses of the Plan. For the year ended September 30, 2019, the City’s active employee contribution rate was 5.91% of covered employee payroll, and the City’s average contribution rate to fund the normal and accrued liability costs was 10.02% of pensionable payroll.
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
49
Note 8 - Pension Plan (continued) The City’s contractually required contribution rate for the year ended September 30, 2019 was 11.20% of pensionable pay for Tier 1 employees, and 7.67% of pensionable pay for Tier 2 employees. These required contribution rates are based upon the actuarial valuation as of September 30, 2016, 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 $1,528,266 for the year ended September 30, 2019. Net pension liability - The City’s net pension liability was measured as of September 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as September 30, 2017 rolled forward to September 30, 2018 using standard roll-forward techniques as shown
in the following table:
Actual 2017 Actual 2018
Valuation Valuation
Expected Assumptions Assumptions
Total pension liability as of September 30, 2017 (a)62,233,797$ 60,766,328$ 61,109,962$
Discount rate (b)7.75%7.75%7.70%
Entry age normal cost for the period October 1, 2017 -
September 30, 2018 (c)1,284,302 1,284,302 1,296,457
Transfers among employers (d)(10,272) (10,272)
Actual benefit payments and refunds for the period
October 1, 2017 - September 30, 2018 (e)(2,996,078) (2,966,078) (2,996,078)
Total pension liability as of September 30, 2018
[(a) x (1 + (b))] + (c) + (d) + [(e) x (1 + 0.5*(b))]65,229,042$ 63,637,573$ 63,990,187$
Difference between expected and actual (f)(1,591,469)$
Less liability transferred for immediate recognition (g)(10,272)
Experience (gain)/loss = (f) - (g)(1,581,197)$
Difference between actual 2017 assumptions and
actual 2018 assumptions 352,614$ Actuarial assumptions - The total pension liability as of September 30, 2018 was determined based on the annual actuarial funding valuation report prepared as of September 30, 2017. The key actuarial assumptions are summarized below:
Inflation 2.75%
Salary increases 3.25% - 5.00%
Investment rate of return *7.70%
* Net of pension plan investment expense, including inflation 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 ages 78 and older. 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.
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
50
Note 8 - Pension Plan (continued) The actuarial assumptions used in the actuarial valuation as of September 30, 2017 were based on the results of an investigation of the economic and demographic experience for the ERS based upon participant data as of September 30, 2015. The Board of Control accepted and approved these changes in September 2016, which became effective at the beginning of fiscal year 2016.
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 Allocation Rate of Return *
17.0%4.4%
32.0%8.0%
9.0%10.0%
4.0%11.0%
12.0%9.5%
3.0%11.0%
10.0%10.1%
10.0%7.5%
Fixed income
U.S. large stocks
U.S. mid stocks
U.S. small stocks
International developed market stock
International emerging market stock
Alternatives
Real estate
Cash equivalents 3.0%1.5%
Total 100.0%
*Includes assumed rate of inflation of 2.75%
Asset Class
Discount rate - The discount rate used to measure the total pension liability was the long-term rate of return, 7.70%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that the employer contributions will be made in accordance with the funding policy adopted by the ERS Board of Control. Based on those assumptions, components of the pension plan’s fiduciary net position were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
51
Note 8 - Pension Plan (continued)
Total Pension Plan Fiduciary Net Pension
Liability (a)Net Position (b)Liability (a)-(b)
Balances at September 30, 2017 62,233,797$ 46,027,817$ 16,205,980$
Changes for the year
Service cost 1,284,302 1,284,302
Interest 4,707,021 4,707,021
Changes of assumptions 352,614 352,614
Difference between expected and
actual experience (1,581,197) (1,581,197)
Contributions - employer 1,343,080 (1,343,080)
Contributions - employee 880,032 (880,032)
Net investment income 4,223,503 (4,223,503)
Benefit payments, including refunds
of employee contributions (2,996,078) (2,996,078)
Transfers among employers (10,272) (10,272)
Net changes 1,756,390 3,440,265 (1,683,875)
Balances at September 30, 2018 63,990,187$ 49,468,082$ 14,522,105$
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 7.70%, 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 (6.70%) or 1-percentage point higher (8.70%) than the current rate:
1.00% Decrease Current Discount 1.00% Increase
(6.70%)Rate (7.70%)(8.70%)
City's net pension liability 22,341,341$ 14,522,105$ 7,940,417$ 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, 2018. The supporting actuarial information is included in the GASB Statement No. 68 Report for the ERS prepared as of September 30, 2018. The auditor's report dated September 17, 2019 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. Pension expense and deferred outflows and inflow of resources related to pensions - For the year ended September 30, 2019, the City recognized pension expense of $1,473,093. At September 30, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to pensions of the following sources:
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
52
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience 502,330$
Changes of assumptions 2,043,103$
Net difference between projected and actual earnings
on plan investments 1,614,326
Employer contributions subsequent to the
measurement date 1,528,265
Totals 3,571,368$ 2,116,656$
The $1,528,265 of deferred outflows of resources resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending September 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of
resources to pensions will be recognized in pension expense as follows:
Year Ending September 30 Amount
2020 182,342$
2021 (331,965)
2022 (166,623)
2023 305,357
2024 103,498
Thereafter (166,162) Note 9 - Postemployment Benefits Other Than Pensions (OPEB) Plan description - The City provides certain continuing health care and life insurance benefits for its retired employees. The City’s plan is a single-employer defined benefit OPEB plan administered by the City. The authority to establish and/or amend the obligation of the employer, employees, and retirees rests with the City. No assets are accumulated in a trust that meets the criteria in Governmental Accounting Standards Board (GASB) Codification Section P52, Postemployment Benefits Other Than Pensions-Reporting For
Benefits Not Provided Through Trusts That Meet Specified Criteria-Defined Benefit. Benefits provided - Medical benefits are provided through a comprehensive medical plan and are made available to employees upon actual retirement. This valuation combines medical benefits for cost and liability purposes. 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 and completion of 10 years of service. Retiree coverage ceases at age 65. Employees covered by benefit terms - At September 30, 2019, the following employees were covered by the benefit terms:
City
Active employees 346
Inactive employees or beneficiaries currently receiving benefit payments 12
Total 358 The City’s total OPEB liability of $2,866,736 was measured as of September 30, 2019 and was determined by an actuarial valuation as of that date.
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
53
Note 9 - Postemployment Benefits Other Than Pensions (OPEB) (continued) Actuarial assumptions and other inputs - The total OPEB liability in the September 30, 2019 actuarial
valuation was determined using the following actuarial assumptions and other inputs, applied to all periods
included in the measurement, unless otherwise specified:
Inflation 2.50%
Salary increases, including inflation 4.00%
Healthcare cost trend rates Flat 5.5% annually The discount rate was based on the Bond Buyers' 20 Year General Obligation municipal bond index as of
September 30, 2019, the end of the applicable measurement period. Mortality rates were based on the RP-2000 Table without projection with 50%/50% unisex blend. The actuarial assumptions used in the September 30, 2019 valuation were based on the results of ongoing evaluations of the assumptions from October 1, 2009 to September 30, 2019.
Total OPEB Liability
Balance at September 30, 2018 2,233,971$
Changes for the year
Service cost 55,465
Interest 92,566
Differences between expected and actual experience 106,044
Changes of assumptions 417,628
Benefit payments (38,938)
Net changes 632,765
Balance at September 30, 2019 2,866,736$ Changes of assumptions and other inputs reflect a change in the discount rate from 4.18% in 2018 to 2.66% in 2019. Sensitivity of the total OPEB liability to changes in the discount rate - The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.66%) or 1-percentage-point higher (3.66%) than the current discount rate:
1.00% Decrease Current Discount 1.00% Increase
(1.66%)Rate (2.66%)(3.66%)
City's total OPEB liability 3,197,854$ 2,866,736$ 2,581,732$ Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates - The following presents
the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated
using healthcare cost trend rates that are 1-percentage-point lower (4.5%) or 1-percentage-point higher
(6.5%) than the current healthcare trend rates:
1.00% Decrease Current Trend 1.00% Increase
(4.5%)Rate (5.5%)(6.5%)
City's total OPEB liability 2,575,183$ 2,866,736$ 3,202,538$
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
54
For the year ended September 30, 2019, the City recognized OPEB expense of $174,643. At September 30, 2019, the City reported deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows
of Resources
Differences between expected and actual experience 87,888$
Changes of assumptions 276,370
Total 364,258$
Amounts reported as deferred outflows of resources related to OPEB will be recognized in OPEB expense
as follows:
Year Ending September 30 Amount
2020 26,612$
2021 26,612
2022 26,612
2023 26,612
2024 26,612
Thereafter 231,198
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, 2019, 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.
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
55
An excess coverage insurance policy covers individual claims in excess of $125,000. Changes in the balances of claims liabilities during the past two years are as follows:
2019 2018
Unpaid claims, beginning of fiscal year 188,200$ 207,100$
Incurred claims (including IBNRs)4,041,009 3,615,677
Claim payments (4,067,109) (3,634,577)
Unpaid claims, end of fiscal year 162,100$ 188,200$
Employee Medical Insurance Fund
Note 12 - Related Party Transactions The City Council appoints members of the Water Works Board of the City of Prattville, Alabama. The City utilizes the Water Works Board of the City of Prattville, Alabama 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, Alabama. The receivable from the Water Works Board of the City of Prattville, Alabama for sewer and sanitation collection fees at September 30, 2019 was $624,522.
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, Alabama 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, Alabama for license fees at September 30, 2019 was $145,713.
Total collection fees retained by the Water Works Board of the City of Prattville, Alabama for the services described above were $397,190 for the year ended September 30, 2019.
The City paid rent for fire hydrants to the Water Works Board of the City of Prattville, Alabama. The amount
paid to the Board was $48,501 for the year ended September 30, 2019.
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 departments. 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, 2019, the City remitted $271,235 to the HPRA, which included lease payments and additional appropriations.
The City appropriated $310,000 to the Library and $110,000 to the Airport Authority, component units,
during the fiscal year ended September 30, 2019. 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, 2019
56
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. Until August 2019, the contract provided 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 included facility rental payments of $160,000 and
operating cost of a minimum of $165,000. In August 2019, the City entered into a new contractual commitment with the Autauga County Commission. The new contract provides for quarterly payments of
$40,000 for facility rental, 20% of the total salary and benefit costs of all jail employees, 33% of the total operational costs of the jail, and 40% of all budgeted inmate medical costs. The City paid a total of $535,020
during the fiscal year ended September 30, 2019.
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, 2019 was $56,234.
As of September 30, 2019, commitments to contractors on capital projects are as follows:
Commitments 46,721,014$
Spent-to-date (42,650,224)
Remaining commitments 4,070,790$
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.
City of Prattville, Alabama Notes to Financial Statements September 30, 2019
57
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 and maintain 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 counties.
Sales and use taxes abated - fiscal year 2019 1,202,048$
Property taxes abated - fiscal year 2019 29,118$
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 2019 totaled approximately $3,104,057. 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.
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. 84, Fiduciary Activities, establishes criteria for identifying all fiduciary activities of all states and local governments and clarifies whether and how business-type activities should report their fiduciary activities. This requirement of this Statement is effective for reporting periods beginning after December 15, 2018.
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 fiscal years beginning after December 15, 2019.
Note 17 - Subsequent Events The City has evaluated subsequent events through March 5, 2020 which is the date these financial statements were available to be issued. All subsequent events requiring recognition as of September 30, 2019 have been incorporated into these financial statements.
Required Supplementary Information
2018 2017 2016 2015 2014
Total Pension Liability
Service cost 1,284,302$ 1,313,612$ 1,252,658$ 1,212,096$ 1,171,241$
Interest 4,707,021 4,429,332 4,058,682 3,888,707 3,680,319
Differences between expected and actual experience (1,581,197)870,621 832,419 (581,675)
Changes of assumptions 352,614 2,954,211
Benefit payments, including refunds of employee contributions (2,996,078)(2,816,326) (2,473,697) (2,315,181) (2,178,239)
Transfers among employers (10,272)(124,282) (33,807)
Net change in total pension liability 1,756,390 3,672,957 6,590,466 2,203,947 2,673,321
Total pension liability - beginning 62,233,797 58,560,840 51,970,374 49,766,427 47,093,106
Total pension liability - ending (a)63,990,187$ 62,233,797$ 58,560,840$ 51,970,374$ 49,766,427$
Plan Fiduciary Net Position
Contributions - employer 1,343,080$ 1,243,058$ 1,381,338$ 1,209,263$ 1,157,444$
Contributions - member 880,032 859,821 902,821 806,208 755,114
Net investment income 4,223,503 5,272,028 3,854,740 447,754 4,089,766
Benefit payments, including refunds of employee contributions (2,996,078)(2,816,326) (2,473,697) (2,315,181) (2,178,239)
Transfers among employers (10,271)(124,282) (33,807) (153,992) (148,504)
Net change in plan fiduciary net position 3,440,266 4,434,299 3,631,395 (5,948) 3,675,581
Plan net position - beginning 46,027,816 41,593,517 37,962,122 37,968,070 34,292,489
Plan net position - ending (b)49,468,082$ 46,027,816$ 41,593,517$ 37,962,122$ 37,968,070$
Net pension liability - ending (a) - (b)14,522,105$ 16,205,981$ 16,967,323$ 14,008,252$ 11,798,357$
Plan fiduciary net position as a percentage of the total pension
liability 77.31%73.96%71.03%73.05%76.29%
Covered payroll 14,978,179$ 14,565,066$ 15,059,971$ 14,118,970$ 13,328,666$
Net pension liability as a percentage of covered payroll 96.96%111.27%112.67%99.22%88.52%
City of Prattville, Alabama
Schedule of Changes in Net Pension Liability and Related Ratios
Last 10 Fiscal Years Ending September 30
Required Supplementary Information
This schedule is prepared to illustrate the requirement to show information for 10 years.However,until a full 10 year trend is available,the City will presentinformation for those years for which information is available.
58
2019 2018 2017 2016 2015
Actuarially determined contribution 1,528,266$ 1,331,931$ 1,296,995$ 1,436,237$ 1,258,700$
Contributions in relation to the actuarially determined
contribution 1,528,266 1,331,931 1,296,995 1,436,237 1,258,700 $--$ -$ -$ -$
15,254,334$ $ 14,978,179 14,565,066$ 15,059,971$ 14,118,970$
Contributions as a percentage of covered payroll 10.02%8.89%8.90%9.54%8.91%
Notes to Schedule
Methods and assumptions used to determine the contribution rates for the October 1, 2018 to September 30, 2019
Actuarial cost method Entry age
Amortization method Level percent closed
Remaining amortization period 24.6 years
Asset valuation method Five year smoothed market
Inflation 2.875%
Salary increases 3.375 - 5.125%, including inflation
Investment rate of return 7.875%, net of pension plan investment expense, including inflation
This schedule is prepared to illustrate the requirement to show information for 10 years. However, until a full 10 year trend is compiled, the City
will present information for those years for which information is available.
Covered payroll
Required Supplementary Information
City of Prattville, Alabama
Schedule of Employer Contributions
Last 10 Fiscal Years
Contribution deficit (excess)
Actuarially determined contribution rates are calculated as of September 30, three years prior to the end of the fiscal year in which contributions
are reported. Contributions for fiscal year 2019 were based on the September 30, 2016 actuarial valuation.
59
2019 2018
Total OPEB Liability
Service cost 55,465$ 60,832$
Interest 92,566 81,711
Difference between expected and actual experience 106,044 (12,564)
Changes of assumptions 417,628 (128,538)
Benefit payments (38,938)(36,908)
Net change in total OPEB liability 632,765 (35,467)
Total OPEB liability - beginning 2,233,971 2,269,438
Total OPEB liability - ending 2,866,736$ 2,233,971$
Covered payroll 15,115,616$ 14,534,246$
Total OPEB liability as a percentage of covered employee payroll 18.97%15.37%
Notes to Schedule
Benefit changes - there were no changes of benefits for the year ended September 30, 2019.
This schedule is prepared to illustrate the requirement to show information for 10 years. However, until a
full 10 year trend is compiled, the City will present information for those years for which information is
available.
City of Prattville, Alabama
Required Supplementary Information
Last 10 Fiscal Years Ended September 30
Schedule of Changes in Total OPEB Liability and Related Ratios
Changes of assumptions -the discount rate as of September 30, 2018 was 4.18% and it changed to
2.66% as of September 30, 2019.
60
Other Supplementary Information
Actual Amounts Variance With
Original Final Budgetary Basis Final Budget
Revenues
Lodging fees 375,000$ 375,000$ 389,150$ 14,150$
Intergovernmental revenues 8,751,819 8,751,819 3,144,666 (5,607,153)
Investment earnings 8,000 8,000 17,974 9,974
Miscellaneous revenues 500,000 500,000 (500,000)
Total revenues 9,634,819 9,634,819 3,551,790 (6,083,029)
Expenditures
Public works
General public works 232,900 502,286 329,832 172,454
Street department 595,000 595,000 59,424 535,576
Capital outlay 13,078,312 13,209,311 6,496,537 6,712,774
Debt service
Interest and fiscal charges 3,045 (3,045)
Bond issuance costs 27,000 (27,000)
Total expenditures 13,906,212 14,306,597 6,915,838 7,390,759
Excess of revenues under
expenditures (4,271,393) (4,671,778) (3,364,048) 1,307,730
Other Financing Sources (Uses)
Transfers from general fund 181,869 451,255 624,240 172,985
Transfers to general fund (385,000) (385,000) 385,000
Transfers to gas tax fund (200,000) (200,000) (200,000)
Proceeds from issuance of
long-term debt 3,605,000 3,605,000 3,515,000 (90,000)
Total other financing sources (uses)3,201,869 3,471,255 3,939,240 467,985
Net change in fund balance,
budgetary basis (1,069,524)$ (1,200,523)$ 575,192 1,775,715$
Adjustment for reconciling items to adjust from
budgetary basis to modified accrual basis
Change in encumbrances 81,679
Net Change in Fund Balance, Modified Accrual Basis 656,871
Fund Balance - Beginning 1,526,726
Fund Balance - Ending 2,183,597$
City of Prattville, Alabama
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Year Ended September 30, 2019
Budgeted Amounts
Capital Projects Fund
61
City of Prattville, Alabama
Actual Amounts Variance With
Original Final Budgetary Basis Final Budget
Revenues
Investment earnings 12,034$ 12,034$
Expenditures
Debt service
Principal payments 2,973,038$ 6,938,153$ 6,901,899 36,254
Interest and fiscal charges 697,872 737,660 722,799 14,861
Total expenditures 3,670,910 7,675,813 7,624,698 51,115
Excess of revenues under
expenditures (3,670,910)(7,675,813)(7,612,664) 63,149
Other Financing Sources
Transfers from general fund 3,670,910 7,675,813 7,616,810 (59,003)
Net change in fund balance,
budgetary basis -$ -$ 4,146 4,146$
Net Change in Fund Balance, Modified Accrual Basis 4,146
Fund Balance - Beginning 3,610
Fund Balance - Ending 7,756$
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Debt Service Fund
For the Year Ended September 30, 2019
Budgeted Amounts
62
Statistical Section
Page
Financial Trends 63 - 67
Revenue Capacity 68 - 71
Debt Capacity 72 - 75
Demographic and Economic Information 76 - 77
Operating Information 78 - 80
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.
These schedules contain information about the City's operations and resources to help
the reader understand how the City's financial information relates to the services the City
provides and the activities it performs.
Sources:Unless otherwise noted,the information in these schedules is derived from the comprehensive
annual financial reports.
Statistical Section
This part of the City of Prattville,Alabama's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements,note
disclosures, and required supplementary information says about the City's overall financial health.
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time.
These schedules contain information to help the reader assess the factors affecting the
City's ability to generate its sales taxes.
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.
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Governmental Activities
Net investment in capital assets 28,197,019$ 33,144,191$ 31,400,291$ 36,021,544$ 36,578,653$ 39,468,399$ 43,629,725$ 50,777,504$ 56,746,210$ 61,250,307$
Restricted 851,251 653,478 803,180 901,190 975,467 1,568,412 1,800,916 1,756,318 1,345,927 1,679,172
Unrestricted (46,256,970) (42,282,379) (35,254,724) (30,215,385) (24,140,154) (28,898,955) (24,934,891) (22,656,464) (17,754,839) (11,293,458)
Total governmental activitiesnet position (17,208,700)$ (8,484,710)$ (3,051,253)$ 6,707,349$ 13,413,966$ 12,137,856$ 20,495,750$ 29,877,358$ 40,337,298$ 51,636,021$
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$ 8,171,026$ 9,330,909$
Unrestricted 1,467,034 2,446,415 3,281,842 838,425 666,650 1,767 2,399,394 3,299,714
Total business-type activities
net position -$ -$ 5,218,186$ 6,682,514$ 7,684,485$ 7,222,571$ 8,034,249$ 9,546,175$ 10,570,420$ 12,630,623$
Primary Government
Net investment in capital assets 28,197,019$ 33,144,191$ 35,151,443$ 40,257,643$ 40,981,296$ 45,852,545$ 50,997,324$ 60,321,912$ 64,917,236$ 70,581,216$
Restricted 851,251 653,478 803,180 901,190 975,467 1,568,412 1,800,916 1,756,318 1,345,927 1,679,172
Unrestricted (46,256,970) (42,282,379) (33,787,690) (27,768,970) (20,858,312) (28,060,530) (24,268,241) (22,654,697) (15,355,445) (7,993,744)
Total primary government
activities net position (17,208,700)$ (8,484,710)$ 2,166,933$ 13,389,863$ 21,098,451$ 19,360,427$ 28,529,999$ 39,423,533$ 50,907,718$ 64,266,644$
Note:Periods prior to 2018 have not been retroactively restated for the impact of Statement No.75 of the Governmental Accounting Standards Board,Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions.
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)
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.
63
Governmental Activities 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Expenses
Governmental activities
General government 9,124,172$ 6,984,318$ 6,868,707$ 6,649,800$ 7,250,279$ 7,619,638$ 8,280,428$ 8,592,901$ 8,677,745$ 9,675,034$
Public safety 14,719,827 13,369,083 12,918,701 14,115,911 14,094,661 15,125,945 16,385,499 16,801,682 16,611,555 16,509,683
Public works 8,755,792 7,235,404 3,518,015 3,703,761 5,180,698 6,019,336 6,451,296 5,288,183 5,872,825 6,719,792
Cultural and recreational 2,449,184 2,080,642 1,766,958 1,830,376 1,980,775 2,021,877 2,204,798 2,096,394 2,314,090 2,872,314
Economic development 1,828,093
Interest and fiscal charges 2,585,660 2,460,545 2,195,048 1,971,907 1,727,232 917,762 943,460 853,853 589,467 565,292
Total governmental activities expenses 37,634,635 32,129,992 27,267,429 28,271,755 30,233,645 31,704,558 34,265,481 33,633,013 35,893,775 36,342,115
Program Revenues
Governmental activities
Charges for services
General government 4,874,993 4,990,894 5,351,940 5,525,847 5,499,156 5,973,943 5,971,164 5,942,996 6,238,858 6,219,359
Public safety 1,287,322 1,553,044 1,517,963 1,661,549 1,709,921 1,411,107 1,104,211 1,276,310 1,537,335 1,643,355
Public works 4,412,889 264,744
Cultural and recreational 265,044 238,279 234,899 209,031 251,562 257,548 289,834 296,242 306,400 494,584
Operating grants and contributions 206,761 193,703 112,012 224,060 71,025 17,820 135,291 31,943 231,359 219,891
Capital grants and contributions 2,122,469 5,847,250 2,658,548 4,641,690 1,417,033 3,953,219 4,596,515 4,581,613 4,226,472 4,814,309
Total governmental activities program revenues 13,169,478 12,823,170 10,140,106 12,262,177 8,948,697 11,613,637 12,097,015 12,129,104 12,540,424 13,391,498
Total governmental activities net expense (24,465,157) (19,306,822) (17,127,323) (16,009,578) (21,284,948) (20,090,921) (22,168,466) (21,503,909) (23,353,351) (22,950,617)
General Revenues and Other Changes in Net Position
Governmental activities
Taxes
Sales taxes 14,139,501 16,691,014 19,736,422 20,602,498 21,221,765 22,112,831 23,261,064 23,336,649 24,496,182 26,195,592
Real and personal property taxes 2,500,129 2,545,751 2,688,777 2,651,051 2,690,055 2,614,090 2,812,535 2,796,943 2,903,635 2,683,078
Motor fuel taxes 240,547 239,616
Lodging taxes 1,063,067 1,090,108 1,025,328 1,201,424 1,647,626 1,804,447 1,898,959 2,028,437 2,288,773 2,476,053
Local gasoline taxes 899,562 886,135 898,009 906,939 941,261 970,304 1,015,531 1,034,599 1,070,850 1,175,500
Alcoholic beverage taxes 286,497 291,914 295,533 311,045 408,900 273,579 356,953 378,800 374,545 390,690
Rental taxes 239,858 300,750 326,620 315,191 346,089 377,964 388,975 378,341 393,905 484,343
Tobacco taxes 149,222 155,641 155,396 142,723 134,656 136,220 121,636 117,974 140,400 126,962
Excise taxes 18,972 16,647 18,749 70,817 65,949 79,780 77,436 175,042 146,943 222,161
Intergovernmental 161,534 153,240 286,883
Investment earnings 42,318 32,621 26,685 69,467 164,964 62,586 93,022 94,168 79,558 90,186
Miscellaneous revenue 206,845 226,695 476,471 625,501 359,099 460,002 500,249 491,229 602,010 366,270
Gain (loss) on disposal of assets 54,747 36,300 3,320 (46,495)
Transfers (3,374,093)(200,000)50,015 85,000
Total governmental activities general revenues
and other changes in net position 19,948,052 22,630,132 22,560,780 26,696,656 28,035,111 28,928,103 30,526,360 30,885,517 32,496,801 34,249,340
Total governmental activities change in net
position (4,517,105)$ 3,323,310$ 5,433,457$ 10,687,078$ 6,750,163$ 8,837,182$ 8,357,894$ 9,381,608$ 9,143,450$ 11,298,723$
Schedule 2
Changes in Net Position
(accrual basis of accounting)
City of Prattville, Alabama
64
Business-Type Activities 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Expenses
Sanitation 2,069,318$ 2,230,497$ 2,463,315$ 2,539,325$ 2,886,650$ 3,019,998$ 2,994,426$ 2,789,159$
Wastewater 2,515,354 2,770,077 2,763,675 2,852,233 2,869,892 2,826,180 3,989,631 4,193,126
Total business-type activities
expenses 4,584,672 5,000,574 5,226,990 5,391,558 5,756,542 5,846,178 6,984,057 6,982,285
Revenues
Charges for services
Sanitation 2,392,771 2,447,844 2,452,098 2,457,400 2,550,392 2,601,138 2,644,530 2,753,354
Wastewater 3,874,248 3,851,668 3,729,267 3,911,891 3,994,729 4,506,215 5,008,762 5,448,276
Capital grants and contributions
Wastewater 160,324 30,401 224,640 805,763
Total business-type activities
revenues 6,427,343 6,329,913 6,181,365 6,369,291 6,545,121 7,107,353 7,877,932 9,007,393
Total business-type activities
net program revenue 1,842,671 1,329,339 954,375 977,733 788,579 1,261,175 893,875 2,025,108
Other Changes in Net Position
Investment earnings 99,721 79,095
Miscellaneous revenue 1,422 3,448 5,055 4,382 4,852 7,760 27,261
Gain on disposal of assets 42,306 18,247 293,006 3,388 41,000
Transfers 3,374,093 200,000 (50,015)(85,000)
Total business-type activities
other changes in net position 3,375,515 203,448 5,055 46,688 23,099 250,751 130,370 35,095
Total business-type activities
change in net position -$ -$ 5,218,186$ 1,532,787$ 959,430$ 1,024,421$ 811,678$ 1,511,926$ 1,024,245$ 2,060,203$
Total primary governmentchange in net position (4,517,105)$ 3,323,310$ 10,651,643$ 12,219,865$ 7,709,593$ 9,861,603$ 9,169,572$ 10,893,534$ 10,167,695$ 13,358,926$
Note: Business-type activities prior to 2012 were accounted for as governmental activities.
City of Prattville, Alabama
Schedule 2
Changes in Net Position
(accrual basis of accounting)
Note:Periods prior to 2018 have not been retroactively restated for the impact of Statement No.75 of the Governmental Accounting Standards Board,Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions.
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 Pensionsor for the impact of Statement No. 71 of the Governmental Accounting Standards Board, Pension Transition for Contributions Made Subsequent to the Measurement Date .
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.
65
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
General Fund
Reserved 821,293$
Unreserved (2,313,284)
Nonspendable 159,850$ 98,908$ 102,322$ 114,704$ 136,566$ 166,583$ 146,829$ 145,829$ 900,379$
Restricted 653,478 204,694 280,424 348,192 517,624 619,222 806,185 402,981 603,026
Committed 12,185 2,567,260 3,381,590 4,555,104 4,567,189 6,115,868 6,253,712 4,168,004 3,634,602
Assigned 172,653 1,235,310 261,383 468,838 792,720 822,832 1,184,299 1,793,517 999,672
Unassigned 550,285 1,099,168 3,053,554 5,643,011 6,555,450 7,056,740 7,713,688 9,487,554 10,022,167
Total general fund (1,491,991)$ 1,548,451$ 5,205,340$ 7,079,273$ 11,129,849$ 12,569,549$ 14,781,245$ 16,104,713$ 15,997,885$ 16,159,846$
All Other Governmental Funds
Reserved, reported in
capital projects fund 618,868$
Reserved, reported in
debt service fund 80,178
Unreserved, reported in
special revenue funds 566,257
Unreserved, reported in
capital projects fund (357,885)
Nonspendable 2,299$ 377$ 283$ 254$ 169$ 288$
Restricted 480,627$ 598,486$ 620,766$ 670,828 1,050,795 1,181,744 729,012 946,556 1,076,146
Committed 20,573 305,771 601,804 913,792 200,806 104,129 460,313
Assigned 503,290 801,506 2,554,059 3,449,408 3,367,433 1,089,122 1,090,179
Unassigned 1 (14,167)(44,029)
Total all other
governmental funds 907,418$ 480,627$ 598,486$ 1,144,630$ 1,780,404$ 4,207,035$ 5,531,060$ 4,253,476$ 2,139,976$ 2,626,926$
(modified accrual basis of accounting)
Fund Balances of Governmental Funds
Schedule 3
City of Prattville, Alabama
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 .
66
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Revenues
Taxes 19,537,355$ 22,217,576$ 25,144,834$ 26,201,688$ 27,456,301$ 28,369,215$ 29,933,089$ 30,246,785$ 31,815,233$ 33,754,379$
Licenses and permits 4,874,993 4,990,894 5,351,940 5,525,847 5,499,156 5,973,943 5,971,164 5,942,996 6,238,858 6,219,359
Intergovernmental revenues 217,701 153,240 548,280 1,103,096 1,428,058 2,220,039 1,461,037 1,131,325 1,414,775 3,617,042
Charges and fees for services 5,564,563 6,655,705 1,223,888 1,284,750 1,392,556 1,077,656 875,957 945,962 1,030,643 1,203,582
Fines and forfeitures 400,692 536,298 532,321 630,728 614,714 590,999 518,090 626,590 813,092 934,357
Investment earnings 44,844 32,621 26,685 67,371 164,250 62,162 92,888 94,079 79,384 90,001
Miscellaneous revenues 1,099,914 908,449 1,067,962 1,030,355 356,984 422,314 386,370 378,870 275,290 286,797
Total revenues 31,740,062 35,494,783 33,895,910 35,843,835 36,912,019 38,716,328 39,238,595 39,366,607 41,667,275 46,105,517
Expenditures
Current
General government 7,537,961 5,973,871 5,757,564 5,039,571 5,931,830 5,875,170 6,178,913 6,353,357 6,662,283 7,572,226
Public works 8,007,685 6,519,457 3,332,207 3,210,261 4,184,523 6,068,130 6,864,620 4,221,491 4,817,045 5,654,222
Public safety 14,023,058 12,712,387 12,346,346 11,852,136 11,731,292 12,413,193 13,352,908 13,436,701 13,437,695 13,523,445
Cultural and recreational 2,371,770 1,434,309 1,436,057 1,565,707 1,627,648 1,904,284 1,825,309 2,042,279 2,572,479
Economic development 1,828,093
Capital outlay 3,290,520 478,136 379,900 1,769,645 1,709,945 1,267,128 1,653,020 5,252,535 3,535,892 9,316,213
Debt service
Principal payments 2,331,364 9,073,190 4,070,296 4,011,121 2,941,830 4,548,721 2,988,986 5,182,594 7,778,395 6,916,637
Interest and fiscal charges 2,465,127 2,492,666 2,230,996 2,165,133 1,750,499 1,192,171 1,209,120 1,099,060 911,226 750,908
Bond issuance costs 217,411 83,464 93,782 139,216 27,000
Total expenditures 40,244,896 37,249,707 29,551,618 29,567,388 29,909,408 33,131,377 34,151,851 37,371,047 41,012,908 46,333,130
Excess of revenues over (under) expenditures (8,504,834) (1,754,924) 4,344,292 6,276,447 7,002,611 5,584,951 5,086,744 1,995,560 654,367 (227,613)
Other Financing Sources (Uses)
Insurance proceeds 37,685 113,875 112,359 174,379 63,688
Sale of capital assets 46,779 24,192 40,906 2,891 43,913
Transfers in 3,149,228 5,525,970 4,610,138 5,215,833 4,896,087 7,642,691 5,605,437 6,823,288 9,793,872 8,714,200
Transfers out (3,149,228) (5,525,970) (4,699,055) (9,361,585) (7,064,464) (9,884,991) (8,377,837) (9,893,134) (12,846,372) (11,655,204)
Issuance of bonds 2,670,000 825,000 240,000 3,515,000
Issuance of refunding bonds 6,315,000 9,815,000 9,955,000 12,280,000
Issuance of notes payable 300,000 5,637,303
Proceeds from capital lease 260,000 258,310 726,905 195,464
Payment to refunded bonds escrow agent (6,322,926) (9,434,619) (10,067,843) (13,445,879)
Bond premium (discount)173,741 (90,999) 206,625 1,305,095
Total other financing sources (uses)3,395,815 5,637,303 (88,917) (3,856,370) (2,074,595) (2,018,620) (1,551,023) (1,949,676) (2,875,230) 877,061
Net change in fund balance (5,109,019)$ 3,882,379$ 4,255,375$ 2,420,077$ 4,928,016$ 3,566,331$ 3,535,721$ 45,884$ (2,220,863)$ 649,448$
Debt service as a percentage of noncapital expenditures 13.54%31.42%21.61%22.67%17.04%19.16%13.58%19.56%23.19%20.79%
City of Prattville, Alabama
Schedule 4
Changes in Fund Balances of Governmental Funds
(modified accrual basis of accounting)
67
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Apparel stores 72,438,782$ 81,049,639$ 78,698,228$ 78,722,449$ 78,062,472$ 81,324,939$ 83,018,889$ 79,853,655$ 78,935,483$ 80,355,585$
Food stores 71,839,635 77,704,211 76,108,625 77,168,242 80,331,913 83,355,426 84,503,834 85,828,743 85,742,536 94,239,183
Automotive 58,984,572 63,159,678 62,669,770 68,449,774 72,277,636 97,027,886 108,971,570 114,691,542 123,070,580 120,718,622
Manufacturing machine 1,512,332 1,512,272 1,855,136 2,025,097 16,665,875 6,477,693 3,872,261 3,774,408 3,387,747 2,428,539
Restaurants 62,888,874 69,407,860 72,159,819 83,073,365 99,976,397 104,080,558 107,071,561 112,935,379 111,626,351 118,488,337
Home furnishings and
appliances 20,566,253 17,869,458 17,145,730 16,256,815 15,752,779 16,854,830 17,716,288 16,190,266 16,581,833 15,700,675
Building materials 39,128,465 41,682,202 40,414,350 42,467,529 42,313,771 45,417,305 49,249,400 55,631,517 53,463,408 55,650,242
Service stations 22,447,212 21,425,351 15,120,821 19,967,285 17,757,144 17,840,129 18,850,543 19,178,452 20,140,152 22,612,745
Other retail stores 262,697,325 266,079,295 253,682,787 259,689,798 256,775,123 266,688,466 287,794,171 280,178,657 315,093,693 343,652,800
Totals 612,503,450$ 639,889,966$ 617,855,266$ 647,820,354$ 679,913,110$ 719,067,232$ 761,048,517$ 768,262,619$ 808,041,783$ 853,846,728$
City direct sales tax rate 2.50%3.50%3.50%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
68
Percent of Percent of Percent of
Percentage Tax Remitted Percentage Tax Remitted Percentage Tax Remitted
Number of Total Tax by Top 10 Number of Total Tax by Top 10 Number of Total Tax by Top 10
of Filers Tax Liability Liability Taxpayers of Filers Tax Liability Liability Taxpayers of Filers Tax Liability Liability Taxpayers
Apparel stores 26 2,794,878$ 11.98%5.04%20 2,762,742$ 11.28%4.82%21 2,811,745$ 10.73%4.69%
Food stores 8 3,004,006 12.87%11.52%7 3,000,989 12.25%10.89%7 3,298,371 12.59%10.72%
Automotive 25 573,458 2.46%27 615,353 2.51%25 603,593 2.30%
Machine 26 20,308 0.09%28 25,408 0.10%31 18,214 0.07%
Restaurants 113 3,952,738 16.94%118 3,906,922 15.95%110 4,147,092 15.83%
Home furnishings and
appliances 10 566,659 2.43%1.65%10 580,364 2.37%1.64%10 549,524 2.10%1.39%
Building materials 7 1,947,103 8.34%6.83%7 1,871,219 7.64%6.64%7 1,947,758 7.44%6.46%
Service stations 24 671,246 2.88%24 704,905 2.88%25 791,446 3.02%
Other retail stores 1,632 9,806,253 42.01%9.33%1,579 11,028,280 45.02%8.95%1,582 12,027,849 45.92%8.74%
Totals 1,871 23,336,649$ 100.00%1,820 24,496,182$ 100.00%1,818 26,195,592$ 100.00%
Percent of Percent of Percent of
Percentage Tax Remitted Percentage Tax Remitted Percentage Tax Remitted
Number of Total Tax by Top 10 Number of Total Tax by Top 10 Number of Total Tax by Top 10
of Filers Tax Liability Liability Taxpayers of Filers Tax Liability Liability Taxpayers of Filers Tax Liability Liability Taxpayers
Apparel stores 22 2,732,187$ 11.71%5.49%22 2,846,373$ 11.62%7.70%26 2,905,661$ 12.49%7.40%
Food stores 8 2,811,617 12.05%11.62%8 2,917,440 11.91%11.70%8 2,957,634 12.71%11.40%
Automotive 22 361,388 1.55%24 485,139 1.98%27 544,858 2.34%
Machine 23 124,994 0.54%22 48,583 0.20%25 29,042 0.12%
Restaurants 107 3,499,174 14.99%104 3,642,820 14.87%108 3,747,505 16.11%
Home furnishings and
appliances 11 551,347 2.36%1.81%12 589,919 2.41%1.80%11 620,070 2.67%1.80%
Building materials 8 1,480,982 6.35%6.06%8 1,589,606 6.49%6.40%7 1,723,729 7.41%6.60%
Service stations 25 621,500 2.66%25 624,405 2.55%23 659,769 2.84%
Other retail stores 1,181 8,987,129 47.79%10.50%1,261 9,334,096 47.97%8.25%1,383 10,072,796 43.31%7.50%
Totals 1,407 21,170,318$ 100.00%1,486 22,078,381$ 100.00%1,618 23,261,064$ 100.00%
2017
City of Prattville, Alabama
2014 2015
Sales Tax Revenue Payers by Category
Schedule 6
2018 2019
2016
69
Percent of Percent of Percent of
Percentage Tax Remitted Percentage Tax Remitted Percentage Tax Remitted
Number of Total Tax by Top 10 Number of Total Tax by Top 10 Number of Total Tax by Top 10
of Filers Tax Liability Liability Taxpayers of Filers Tax Liability Liability Taxpayers of Filers Tax Liability Liability Taxpayers
Apparel stores 17 2,300,008$ 13.81%7.69%20 2,754,438$ 13.99%10.30%22 2,755,286$ 13.40%8.90%
Food stores 8 2,205,072 13.24%11.97%8 2,663,802 13.53%12.14%8 2,700,888 13.13%11.50%
Automotive 27 315,798 1.90%23 313,349 1.59%23 342,249 1.66%
Machine 25 11,342 0.07%21 13,913 0.07%22 15,188 0.07%
Restaurants 95 1,969,640 11.83%81 2,525,594 12.82%85 2,907,568 14.14%
Home furnishings and 0.00%
appliances 12 507,095 3.05%2.18%12 600,101 3.05%2.23%12 568,989 2.77%2.00%
Building materials 8 1,182,848 7.10%6.20%8 1,414,502 7.18%6.41%8 1,486,364 7.23%6.30%
Service stations 28 608,003 3.65%25 529,229 2.69%25 698,855 3.40%
Other retail stores 918 7,550,736 45.35%9.22%931 8,878,898 45.08%6.15%931 9,089,143 44.20%9.10%
Totals 1,138 16,650,542$ 100.00%1,129 19,693,826$ 100.00%1,136 20,564,530$ 100.00%
Percent of
Percentage Tax Remitted
Number of Total Tax by Top 10
of Filers Tax Liability Liability Taxpayers
Apparel stores 17 1,810,970$ 10.88%8.05%
Food stores 8 1,795,991 10.79%11.83%
Automotive 27 294,923 1.77%
Machine 25 11,342 0.07%
Restaurants 90 1,572,222 9.44%
Home furnishings and
appliances 12 514,156 3.09%2.44%
Building materials 8 978,212 5.87%6.22%
Service stations 29 561,180 3.37%
Other retail stores 964 6,565,423 54.72%9.55%
Totals 1,180 14,104,419$ 100.00%
Note:Due to confidentiality issues,the names of the 10 largest revenue payers are not available.The categories presented are intended to provide alternative information regarding the sources of the City'srevenue.
2010
City of Prattville, Alabama
Schedule 6
Sales Tax Revenues Payers by Category
2011 2012 2013
70
City Direct Autauga State of Total Sales
Fiscal Year Rate County District Tax Alabama Tax
2010 2.5%2.0%4.0%8.5%
2011 3.5%2.0%4.0%9.5%
2012 3.5%2.0%4.0%9.5%
2013 3.5%2.0%4.0%9.5%
2014 3.5%2.0%4.0%9.5%
2015 3.5%2.0%4.0%9.5%
2016 3.5%2.0%4.0%9.5%
2017 3.5%2.0%4.0%9.5%
2018 3.5%2.0%4.0%9.5%
2019 3.5%2.0%4.0%9.5%
City Direct Elmore State of Total Sales
Fiscal Year Rate County District Tax Alabama Tax
2010 2.5%1.0%1.0%4.0%8.5%
2011 3.5%1.0%1.0%4.0%9.5%
2012 3.5%1.0%1.0%4.0%9.5%
2013 3.5%1.0%1.0%4.0%9.5%
2014 3.5%1.0%1.0%4.0%9.5%
2015 3.5%1.0%1.0%4.0%9.5%
2016 3.5%1.0%1.0%4.0%9.5%
2017 3.5%1.0%1.0%4.0%9.5%
2018 3.5%1.0%1.0%4.0%9.5%
2019 3.5%1.0%1.0%4.0%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.
71
Limited Total Percentage Percentage
Fiscal Warrants Obligation Capital Outstanding of Taxable of Personal Per Capita
Year Payable Term Loan Warrant Lease Debt Sales (1)Income (2)(2)
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%1.56%633
2018 24,860,717 1,496,981 769,961 27,127,659 3.36%1.17%488
2019 21,398,071 1,482,244 847,388 23,727,703 2.78%**
Limited Total Percentage Percentage
Fiscal Warrants Obligation Capital Outstanding of Taxable of Personal Per Capita
Year Payable Term Loan Warrant Lease Debt Sales (1)Income (2)(2)
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%0.06%25
2018 33,466,817 33,466,817 4.14%1.45%602
2019 33,053,094 33,053,094 3.87%**
Limited Total Percentage Percentage
Fiscal Warrants Obligation Capital Outstanding of Taxable of Personal Per Capita
Year Payable Term Loan Warrant Lease Debt Sales (1)Income (2)(2)
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%1.63%659
2018 58,327,534 1,496,981 769,961 60,594,476 7.50%2.62%1,090
2019 54,451,165 1,482,244 847,388 56,780,797 6.65%**
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) See the Net Taxable Sales by Category on page 70 for net taxable sales data.
(2) Population data can be found in the schedule of Demographics and Economic Statistics on page 78.
* Information not available.
Schedule 8
Governmental Activities
Business-Type Activities
Primary Government
City of Prattville, Alabama
Ratios of Outstanding Debt by Type
72
General Less Amounts Percentage of
Fiscal Obligation Available in Debt Net Taxable Per
Year Bonds (1)Service Fund (2)Total Sales (3)Capita (4)
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%616
2018 58,327,534 3,610 58,323,924 7.22%1,049
2019 54,451,165 7,756 54,443,409 6.38%*
* Information not available.
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1)This is the general bonded debt of both governmental and business-type activities, net of original
issuance discounts and premiums.
(2)This is the amount restricted for debt service principal payments.
(3)See the Net Taxable Sales by Category on page 70 for net taxable sales data.
(4)Population data can be found in the schedule of Demographics and Economic Statistics on page 78.
City of Prattville, Alabama
Ratios of Net General Bonded Debt Outstanding
Schedule 9
73
Estimated Estimated Share
Debt Percentage of Direct and
Governmental Unit Outstanding Applicable (a)Overlapping Debt
Debt repaid with property taxes: Autauga County 10,332,657$ 48.00%4,959,675$
Debt repaid with property taxes: Autauga County
Board of Education 21,689,000 48.00%10,410,720
Debt repaid with property taxes: Elmore County 15,906,481 7.00%1,113,454
Debt repaid with property taxes: Elmore County
Board of Education *54,831,873 7.00%3,838,231
Subtotal, overlapping debt 20,322,080
City of Prattville, Alabama direct debt 39,885,571
Total direct and overlapping debt 60,207,651$
* Estimated
City of Prattville, Alabama
Direct and Overlapping Governmental Activities Debt
As of September 30, 2019
Schedule 10
(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.
Note: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.
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.
74
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Net assessed value of taxable
property 358,625,820$ 353,461,200$ 356,934,340$ 352,040,720$ 348,362,480$ 358,817,560$ 367,841,220$ 378,906,500$ 399,540,960$ 406,361,740$
Debt limit 71,725,164 70,692,240 71,386,868 70,408,144 69,672,496 71,763,512 73,568,244 75,781,300 79,908,192 81,272,348
Total net debt applicable to limit 14,415,694 12,436,482 9,818,857 18,697,026 26,501,875 37,095,437 36,416,570 31,990,284 24,241,351 21,587,614
Legal debt margin 57,309,470$ 58,255,758$ 61,568,011$ 51,711,118$ 43,170,621$ 34,668,075$ 37,151,674$ 43,791,016$ 55,666,841$ 59,684,734$
Total net debt applicable to the
limit as a percentage of debt limit 20.10%17.59%13.75%26.56%38.04%51.69%49.50%42.21%30.34%26.56%
Legal Debt Margin Calculation for Fiscal Year 2019Assessed value 406,361,740$
Debt limit (20% of total assessed value)81,272,348$
Debt applicable to limit
General obligation bonds 20,747,983
Capital leases 847,387
Less amount set aside for repayment of general
obligation debt 7,756
Total net debt applicable to limit 21,587,614 Legal debt margin 59,684,734$
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.
City of Prattville, Alabama
Schedule 11
Legal Debt Margin Information
75
Personal Income Per Capita School Autauga County
Calendar Year Population (Thousands of Dollars)Personal Income Median Age Enrollment Unemployment Rate
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 55,504 2,247,024 40,484 37.80 9,620 (16-17)4.10%
2018 55,601 2,314,002 41,618 37.80 9,184 (17-18)3.90%
2019 ****9,040 (18-19)2.80%
* Unavailable
City of Prattville, Alabama
Demographic and Economic Statistics
Schedule 12
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.
76
Percentage of Percentage of
Total City Total City
Employer Employees Employment Employees Employment
Autauga County Board of Education 1,000 6.38%1,078 6.35%
International Paper 600 3.83%636 3.74%
Prattville Baptist Hospital 235 1.50%500 2.94%
Kinedyne 130 0.83%415 2.44%
City of Prattville, Alabama 385 2.46%385 2.27%
Walmart 480 3.06%312 1.84%
Autauga County 165 1.05%210 1.24%
YMCA 97 0.62%200 1.18%
Prattville Health and Rehabilitation 154 0.98%185 1.09%
Bass Pro Shops 300 1.91%176 1.04%
Central Alabama Electric Cooperative 122 0.78%128 0.75%
Long Lewis **100 0.59%
Alabama Baptist State Board of Missions **90 0.53%
Fras-Le **80 0.47%
Totals 3,668 23.40%4,495 26.47%
Source: Prattville Area Chamber of Commerce.
Note: This schedule presents 2011 compared to 2019. Information for 2010 (ten years ago) is not presented because it is not readily available.
Average number employed in the City for 2019 was 16,983 per www2.labor.alabama.gov/LAUS/LAUScities.pdf.
http://www2.labor.alabama.gov/Laus/CLF/AllCity.aspx
* Unavailable
2019
City of Prattville, Alabama
Principal Employers
Schedule 13
2011
77
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Function/Program
General government
Executive 3 3 2 3 3 3 3 4 5 5
Legislative 7 7 7 7 7 7 7 7 7 7
Finance 7 6 6 5 6 7 7 7 7 7
City clerk 5 2 3 3 3 3 3 3 4 3
Human resources 4 4 4 4 3 4 4 4 5 5
Judicial 6 5 6 6 6 6 6 6 6 7
Information technology 3 1 1 1 2 3 3 3 3 3
Vehicle maintenance 10 6 6 6 5 6 6 6 6 4
Public safety
Police
Officers 92 85 81 81 82 82 82 82 89 84
Civilians 9 7 8 9 9 10 10 10 8 8
Fire
Officers 88 84 81 79 83 83 83 83 83 82
Civilians 4 8 7 7 2 2 2 3 3 3
Building division 4 6 6 6 6 4
Public works
Public works 4 4 5 6 6
Engineering 4 9 9 10 9 9 9 8 10 9
Facilities maintenance 4 8 8 8 11 10
Planning and development 14 7 7 4 4 5 5 4 5 6
Street 21
Sanitation 29 28 28 32 34 36 34 28 25 21
Wastewater 28 25 23 23 25 25 21 23 28 22
Urban management 21 19 23 30 30 29 34 38 28
Cultural and recreational
Parks and recreation 24 15 12 12 14 14 14 13 20 31
Performing and creative arts 2 2 1 1 1 1 2 2 3
Totals 360 325 311 315 336 354 347 349 377 358
Source: Human Resources.
City of Prattville, Alabama
Schedule 14
Full-Time Equivalent City
Government Employees by Function
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.
78
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Function/Program
General government
Building permits issued
Residential 135 106 128 120 131 161 165 189 185 242
Residential remodel 392 327 343 333 147 203 295 264
Commercial 10 11 8 8 12 17 10 12 23 19
Commercial buildout, remodel, addition 43 49 56 74 71 41 61 49
Building inspections conducted 3,658 3,142 3,512 4,506 5,688 4,148 4,830 4,767 5,260 5,927
Building plan reviews 149 147 212 181 441 659 650 873 808 921
Public safety
Police
Physical arrests 3,035 3,208 2,208 2,128 2,757 2,342 2,829 2,146 2,287 3,952
Parking violations 348 373 259 122 86 98 28 8 14 43
Traffic violations 6,299 6,450 4,460 4,782 4,897 4,418 5,701 8,163 8,367 5,884
Fire
Emergency responses 5,199 5,221 5,673 5,786 5,893 5,118 4,874 5,394 5,405 5,447
Fires extinguished 115 113 101 113 105 113 43 104 103
Inspections 2,996 2,725 2,846 2,846 2,775 2,791 2,500 3,477 2,603 2,564
Public works
Potholes repaired 2,000 1,500 1,750 2,000 2,500 2,500 2,000 2,550 2,750
Street resurfacing (miles)3 2 7 5 8 1 8
Wastewater
Average daily sewage treatment (millions of gallons)
Autauga Creek 2.18 1.60 1.72 1.92 1.62 1.47 1.54 1.66 1.79 1.81
Pine Creek 1.87 1.90 1.90 2.01 1.88 1.81 1.96 2.08 2.13 2.45
Refuse collection
Garbage (tons per day)38.50 36.33 45.00 44.60 49.60 43.33
Trash (yards per day)189 260 220 61 28 204
Recyclables (tons per day)1 1 1 1 1 1
Sources: Various City departments.
City of Prattville, Alabama
Schedule 15
Operating Indicators by Function/Program
79
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Function/Program
Public safety
Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol cars 82 81 84 84 81 84 78 80 95 95
Motorcycles 11 9 9 9 10 10 10 10 10 9
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 2 2 2
Heavy rescue 1 1 1 1 1 1 1 1 1 1
Ambulances 7 7 7 7 7 7 6 6 6 6
Refuse collection
Trash trucks 6 6 6 6 6 6 6 6 6 6
Garbage trucks 9 9 9 8 8 8 9 7 7 7
Parkan truck 1 1 1 1 1
Public works
Streets (miles)209 209 212 212 217 220 223 228 230
Highways (miles)23 23 23 23 23 23 23 23 23
Streetlights 2,450 2,450 2,450 2,450 2,475 2,510 2,525 2,550 2,575
Traffic signal heads 270 270 270 270 270 286 286 286 286
Cultural and recreational
Acreage 354 354 354 354 354 354 354 354 354 357
Playgrounds 10 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
80