FY22 Annual Comprehensive Financial Report - City of Prattville
CITY OF PRATTVILLE, ALABAMA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 2022
Prepared by the Finance Department
Daniel F. Oakley, CPA
Finance Director
City of Prattville, Alabama
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2022
Table of Contents
Page
Introductory Section
Letter of Transmittal ..................................................................................................................................................................... i – v
Certificate of Achievement for Excellence in Financial Reporting .................................................................................................... vi
List of Principal Officers ................................................................................................................................................................... vii
Organizational Chart ....................................................................................................................................................................... viii
Map of the City ................................................................................................................................................................................. ix
Financial Section
Independent Auditor's Report ..................................................................................................................................................... 1 – 4
Management’s Discussion and Analysis..................................................................................................................................... 5 – 14
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position ................................................................................................................................................ 15
Statement of Activities ..................................................................................................................................................... 16
Fund Financial Statements:
Balance Sheet – Governmental Funds .............................................................................................................................. 17
Reconciliation of the Balance Sheet – Governmental Funds to the Statement of Net Position ...................................... 18
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ...................................... 19
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds
to the Statement of Activities ........................................................................................................................................... 20
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – General Fund ............ 21 - 23
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – Gas Tax Special Revenue
Fund ................................................................................................................................................................................. 24
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – Judicial Special Revenue
Fund ................................................................................................................................................................................. 25
Statement of Net Position – Proprietary Funds ................................................................................................................ 26
Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds .................................................... 27
Statement of Cash Flows – Proprietary Funds .................................................................................................................. 28
Notes to Financial Statements ................................................................................................................................... 29 – 63
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios ............................................................................................. 64
Schedule of Employer Contributions ......................................................................................................................................... 65
Schedule of Changes in the Total OPEB Liability and Related Ratios ........................................................................................ 66
City of Prattville, Alabama
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2022
Table of Contents
Page
Other Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – Capital Projects Fund ................. 67
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – Debt Service Fund ...................... 68
Notes to Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual ...................................... 69
Statistical Section
Financial Trends
Schedule 1 Net Position by Component ................................................................................................................................. 71
Schedule 2 Changes in Net Position ................................................................................................................................ 72 – 73
Schedule 3 Fund Balances of Governmental Funds ................................................................................................................ 74
Schedule 4 Changes in Fund Balances of Governmental Funds ............................................................................................. 75
Revenue Capacity
Schedule 5 Net Taxable Sales by Category ............................................................................................................................. 76
Schedule 6 Sales Tax Revenue Payers by Category ......................................................................................................... 77 – 78
Schedule 7 Direct and Overlapping Sales Tax Rates ............................................................................................................... 79
Debt Capacity
Schedule 8 Ratios of Outstanding Debt by Type ..................................................................................................................... 80
Schedule 9 Ratios of Net General Bonded Debt Outstanding ................................................................................................ 81
Schedule 10 Direct and Overlapping Governmental Activities Debt ...................................................................................... 82
Schedule 11 Legal Debt Margin Information .......................................................................................................................... 83
Demographic and Economic Information
Schedule 12 Demographic and Economic Statistics ............................................................................................................... 84
Schedule 13 Principal Employers ............................................................................................................................................ 85
Operating Information
Schedule 14 Full-Time Equivalent City Government Employees by Function ........................................................................ 86
Schedule 15 Operating Indicators by Function/Program ........................................................................................................ 87
Schedule 16 Capital Asset Statistics by Function/Program ..................................................................................................... 88
Introductory Section
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1 0 1 We st M a in St r e e t \ Pr a t t ville , AL 3 6 0 6 7 \ 334.595.0100 \ p rat t v i ll e a l . go v
BILL GILLESPIE, JR.
MAYOR
LORA LEE BOONE
Council President
District 7
ROBERT E. STRICHIK
President Pro Tempore
District 6
ALBERT C. STRIPLIN
District 1
MARCUS JACKSON
District 2
JOHN CHAMBERS
District 3
THOMAS MERRICK
District 4
BLAIR GORNTO
District 5
Letter of Transmittal
April 27, 2023
To the Mayor, Members
Of Council, and the Citizens
of the City of Prattville, Alabama
The Annual Comprehensive Financial Report (ACFR) of the City of Prattville (the
government) for the fiscal year ended September 30, 2022 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 ACFR is presented in three sections: introductory, financial and statistical. The
introductory section includes this transmittal letter, a copy of the City’s Certificate of
Achievement for Excellence in Financial Reporting, list of principal officials, the primary
government’s organizational chart and a map of the City. The financial section includes
the management’s discussion and analysis (MD&A), the basic financial statements
including notes 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. The statistical section includes selected financial and demographic
information, generally presented on a multi-year basis. In contrast to the financial
section information, the statistical section information has not been audited.
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.
C I T Y C O U N C I L
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Governmental Accounting Standards Board (GASB) Reporting Requirements
The City of Prattville presents financial information that meet requirements of accounting standards issued by the
GASB. 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 section.
The City implemented the following statements during fiscal year 2022:
GASB Statement No. 87, Leases, significantly changes the reporting of leases by governments. The new lease
reporting model requires leases to be reported as financing transactions. Accordingly, governments that lease assets
from others (lessees) will report liabilities for all of their leases of land, buildings, and equipment. This includes
leases that previously were considered operating leases, and therefore, were not reported as liabilities. In addition,
all lease liabilities under this statement will be disclosed in the schedule of changes in long-term liabilities.
Management is aware of the following statement and will implement this, if applicable to the City, in the next fiscal
period:
GASB Statement No. 96, Subscription-Based Information Technology Arrangements, provides guidance on the
accounting and financial reporting for subscription-based information technology arrangements (SBITAs). Under this
Statement, a government generally should recognize a right-to-use subscription asset, an intangible asset, and a
corresponding subscription liability. The subscription liability should be initially measured at the present value of
subscription payments expected to be made during the subscription term. Future subscription payments should be
discounted using the interest rate the SBITA vendor charges the government or the government’s incremental
borrowing rate if the interest rate is not readily determinable. A government should recognize amortization of the
discount on the subscription liability as an outflow of resources (for example, interest expense) in subsequent
financial reporting periods.
GASB Statement No. 91, Conduit Debt Obligations, provides guidance on a single method of reporting conduit debt
obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2)
arrangements associated with conduit debt obligations, and (3) related note disclosures.
GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements,
provides guidance on financial reporting by addressing issues related to public-private and public-public partnership
arrangements (PPPs).
City Profile
The City of Prattville is the County seat of Autauga County, was incorporated on August 8, 1865, and is located in
south central Alabama. It serves a population of approximately 38,250. 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.
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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
(blended as a special revenue fund) 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.
Beginning in March 2020, the COVID-19 pandemic negatively affected City operations and services; the local, state,
national and world economies; and disrupted the daily lives of citizens. Individuals and businesses alike were
required to change habits and adjust to circumstances brought on by the pandemic. On a local level, the economy
slowed overall during the early stages of the pandemic due to various state-level mandates and business shutdowns.
However, the City’s economy began to rebound and even thrive in certain industries such as grocery stores and
home improvement stores. While certain industries were more adversely affected such as lodging and gasoline sales
in the initial year of the pandemic, virtually all industries within the City have rebounded to pre-pandemic levels.
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 a 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.
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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 encumbrances are included with expenditures. Reconciliations of expenditures reported in accordance with
GAAP and those presented in accordance with the non-GAAP budgetary basis are presented in the notes to the
financial statements and in the notes to the schedules of revenues, expenditures, and changes in fund balance –
budget to actual.
Healthcare Costs
With the healthcare costs continuing to increase, the City of Prattville opened a 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 Premise Health to manage all aspects of operations for this clinic.
General Fund Reserves
Through council ordinance, management has established a General Fund Reserves Policy for the City to identify the
parameters and calculations required to maintain an adequate balance in the General Fund Reserves bank account.
The balance in the General Fund Reserves bank account must meet the following requirements:
1) General Fund Cash Reserves equal to or exceeding the greater of:
a. $6,000,000.00; or
b. Twenty (20) percent (%) of the previous year’s audited General Fund revenue.
2) Unrestricted General Fund balance equal to or exceeding twenty-five (25) percent (%) of the previous
year’s audited General Fund revenue. Unrestricted General Fund balance shall include the General Fund
“assigned” and “unassigned” fund balance categories, as well as any “committed” fund balance amounts
attributable specifically to the General Fund Reserves.
Awards and Acknowledgements
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 2021 the City received an Outstanding Planning Award from the Alabama Chapter of the American Planning
Association for a Comprehensive Plan for Project Prattville 2040. The Outstanding Planning Award for a
Comprehensive Plan for Communities with a population under 50,000 recognizes an outstanding comprehensive
plan addressing the long-range development of an area, city, county, or region. The City of Prattville Planning
Commission adopted the new comprehensive plan, Project Prattville 2040, on April 15, 2021, and City Council
unanimously adopted on July 6, 2021, after over a year of preparation.
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In 2022 the City was named a 2022 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. This is the 37th consecutive year that the City has
been recognized with this distinguished designation.
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 Annual Comprehensive Financial
Report (ACFR) for the fiscal year ended September 30, 2021. In order to be awarded a Certificate of Achievement, a
governmental entity must publish an easily readable and efficiently organized ACFR. 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 2022 ACFR 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.
Other Information
Independent Audit
The government is required by State law to undergo an annual audit by independent public accountants. To meet
federal requirements of the Single Audit Act Amendments of 1996, and the resultant issuance of Subpart F of Title 2
U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance); and the City’s audit report must be signed by a certified public
accountant. The accounting firm of Mauldin & Jenkins Certified Public Accountants completed the City’s fiscal year
2022 audit. The auditor’s report on the basic financial statements, required supplementary information, and other
information is included in the financial section of this report.
Acknowledgements
The preparation of the comprehensive annual financial report could not be accomplished without the dedicated
services of all City departments but in particular an efficient Finance Department staff. We express appreciation to
each member of the department and to those members of other City departments for their contributions made in
the preparation of this report.
In closing, the commitment to the achievement of mandated priorities speaks to the progressive leadership and
dedication to public service of the Mayor and City Council. Their support for a policy of financial integrity has been
instrumental in the preparation of this report.
Respectfully submitted,
Daniel F. Oakley, Finance Director
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City of Prattville, Alabama
List of Principal Officials
As of September 30, 2022
vii
Mayor Bill Gillespie, Jr.
City Council
Lora Lee Boone, Council President
Robert Strichik, President Pro Tempore
Thomas Merrick
Albert Striplin
Marcus Jackson
John Chambers
Blair Gornto
Heads of Departments
Municipal Court - Judge Louis Colley
City Attorney - Rob Riddle
City Attorney - Andrew Odom
City Prosecutor - Brad Ekdahl
City Clerk – Paula Barlow
Finance Director - Daniel Oakley
Engineering - Robby Anderson
Public Works - Dale Gandy
Police - Chief Mark Thompson
Fire - Chief Terry Brown
Parks and Recreation - Kellie Cook
Human Resources - Lisa Thrash
Information Technology - Jose Figueroa
Planning - Scott Stephens
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Financial Section
2000 SOUTHBRIDGE PARKWAY, SUITE 501 • BIRMINGHAM, AL 35209 • 888-277-0020 • FAX 205-445-2940 • www.mjcpa.com
Members of The American Institute of Certified Public Accountants
INDEPENDENT AUDITOR’S REPORT
The Honorable Mayor and Members
of the City Council of the
City of Prattville, Alabama
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely
presented component units, each major fund, and the aggregate remaining fund information of the City of Prattville, Alabama
(the “City”) as of and for the fiscal year ended September 30, 2022, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, based on our audit and the report of the other auditors, the accompanying financial statements referred to above
present fairly, in all material respects, the respective financial position of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information
of the City of Prattville, Alabama as of September 30, 2022, and the respective changes in financial position, and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
We did not audit the financial statements of the Autauga-Prattville Public Library and the Prattville Airport Authority, which
represent 100% of the assets, 100% of the net position, and 100% of the revenues of the aggregate discretely presented
component units as of September 30, 2022. Those statements were audited by other auditors whose reports have been
furnished to us, and our opinion, insofar as it relates to the amounts included for these entities is based solely on the reports of
the other auditors. The financial statements of the Autauga-Prattville Public Library were not audited in accordance with
Government Auditing Standards.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management 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, and for 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.
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In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered
in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond
the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance
is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance
with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material
if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable
user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis,
evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial
doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the
audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis
on pages 5 through 14 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 64 through 66 be presented to
supplement the basic financial statements. Such information is the responsibility of management and, although not a 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.
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We have applied certain limited procedures to the required supplementary information in accordance with GAAS, 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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s
basic financial statements. The schedule of revenues, expenditures, and changes in fund balances – budget to actual – capital
projects fund, the schedule of revenues, expenditures, and changes in fund balances – budget to actual – debt service fund,
and schedule of revenues, expenditures, and changes in fund balances – budget and actual (collectively the “supplementary
information”) are presented for purposes of additional analysis and are not a required part of the basic financial statements.
Such information 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. The 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 GAAS. In our opinion, the
supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the
introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our
opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of
assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider
whether a material inconsistency exists between the other information and the basic financial statements, or the other
information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected
material misstatement of the other information exists, we are required to describe it in our report.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated April 27, 2023, on our consideration
of the City of Prattville, Alabama’s internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to
describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and
not to provide an opinion on the effectiveness of the City of Prattville, Alabama’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.
Birmingham, Alabama
April 27, 2023
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2022
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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, 2022. 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 of resources exceeded its liabilities and deferred inflows
of resources at September 30, 2022, by $123,194,745 (net position).
• During the year, the City’s total net position increased by $31,271,695. Revenues of $87,220,408 exceeded expenses
of $55,948,713. The increase in revenue over the prior year is due in part to the increase in sales and other taxes
received of $5,156,541 and capital contributions of $15,252,416. Expenses increased by $5,597,879 due primarily to
compensation adjustments for employees and economic development payments to Central Alabama Community
College ($3,065,768).
• Under the Government Accounting Standards Board Statement Number 68, Accounting and Financial Reporting for
Pensions (GASB 68), the City recognized an expense of $1,999,147 in the current year.
• Under the Government Accounting Standards Board Statement Number 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions (GASB 75), the City recognized an expense of $301,626 in the current
year.
• As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of
$43,405,446. There was an increase of $18,735,914 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 two discretely presented component units, the Autauga-Prattville Public Library (the Library) and the Prattville
Airport Authority (the Authority), which are separate legal entities. Although legally separate, these component units are
important because the City is financially accountable for them. Complete financial statements of the Library and the Authority
can be obtained at their respective administrative offices located in Prattville, Alabama.
The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and
deferred inflows of resources, with the difference between them 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.
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2022
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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 include the wastewater and
sanitation 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 major governmental funds and one blended component unit governmental fund. Information
is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances 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 statements 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
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 uses enterprise funds to
account for its wastewater and sanitation 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 wastewater and sanitation departments, which are considered to be major
funds of the City.
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’s progress
in funding its obligation to provide pension benefits to its employees. The notes are presented on pages 29 through 63 of this
report.
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2022
7
Government-Wide Financial Analysis
The City’s condensed statement of net position as of September 30, 2022 and 2021 derived from the government-wide
statement of net position is presented below.
Governmental Activities Business-Type Activities Totals
2022 2021 2022 2021 2022 2021
Current and
other assets $ 38,861,369 $ 27,878,300 $ 8,357,083 $ 6,930,708 $ 47,218,452 $ 34,809,008
Restricted assets 14,117,543 2,359,122 1,127,890 1,494,690 15,245,433 3,853,812
Capital assets, net 110,237,259 87,221,120 45,496,747 44,625,527 155,734,006 131,846,647
Total assets 163,216,171 117,458,542 54,981,720 53,050,925 218,197,891 170,509,467
Deferred outflows
of resources 9,777,738 5,280,012 1,070,666 507,569 10,848,404 5,787,581
Long-term
liabilities 51,241,651 39,696,634 35,269,768 36,032,050 86,511,419 75,728,684
Other liabilities 11,038,717 7,667,937 2,110,978 977,377 13,149,695 8,645,314
Total liabilities 62,280,368 47,364,571 37,380,746 37,009,427 99,661,114 84,373,998
Deferred inflows
of resources 5,622,988 - 567,448 - 6,190,436 -
Net position:
Net investment in
capital assets 90,286,177 70,713,645 12,516,514 12,513,145 102,802,691 83,226,790
Restricted 2,660,542 2,848,900 - - 2,660,542 2,848,900
Unrestricted 12,143,834 1,811,438 5,587,678 4,035,922 17,731,512 5,847,360
Total net position $ 105,090,553 $ 75,373,983 $ 18,104,192 $ 16,549,067 $ 123,194,745 $ 91,923,050
The largest component of the City’s net position as of September 30, 2022 reflects its investment in capital assets (i.e. land,
buildings, vehicles 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, 2022 increased by $28,513,423 from the
prior year due to increases in construction in progress, buildings and improvements, and infrastructure and from blending the
Historic Prattville Redevelopment Authority (HPRA) component unit.
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’s total assets and deferred outflows of resources exceeded liabilities and deferred inflows of
resources by $123,194,745.
The City’s net position increased by $31,271,695 during the current fiscal year and was affected by increased charges for services,
operating grants and contributions, and sales and other taxes revenue, and overall continued control over expenses. The City
saw an increase in charges for services of $3,099,956, an increase in capital grants and contributions of $15,252,416, and an
increase in sales and other taxes revenue of $5,156,541.
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2022
8
A portion of net position is restricted, or has restrictions on how they may be used. Governmental activities restricted net
position totaled $2,660,542 at September 30, 2022 and is restricted for use in law enforcement, road projects, Elmore County
district improvements, and cultural arts. The remaining balance of unrestricted net position generally may be used to meet the
City’s ongoing obligations. Governmental activities, at September 30, 2022, reported a balance in unrestricted net position of
$12,143,834. Business-type activities reported unrestricted net position of $5,587,678 at September 30, 2022.
The following presents the City’s condensed statement of activities for the fiscal years ended September 30, 2022 and 2021 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 $31,271,695. This increase is primarily due to increases in charges for services, capital grants and contributions,
and sales and other taxes revenue, as well as continued control over expenses.
Governmental Activities Business-Type Activities Totals
2022 2021 2022 2021 2022 2021
Revenues
Program revenues:
Charges for
services $ 11,271,575 $ 9,172,483 $ 10,343,130 $ 9,342,266 $ 21,614,705 $ 18,514,749
Operating grants
and contributions 2,654,166 2,855,387 - - 2,654,166 2,855,387
Capital grants
and contributions 16,052,408 799,992 - - 16,052,408 799,992
Total program
revenues 29,978,149 12,827,862 10,343,130 9,342,266 40,321,279 22,170,128
General revenues:
Sales/use tax 35,616,715 32,422,803 - - 35,616,715 32,422,803
Real/personal
property tax 3,405,722 3,280,632 - - 3,405,722 3,280,632
Lodging tax 3,558,414 2,380,696 - - 3,558,414 2,380,696
Local gas tax 1,131,901 1,144,666 - - 1,131,901 1,144,666
Alcohol tax 509,160 478,991 - - 509,160 478,991
Rental tax 527,524 460,804 - - 527,524 460,804
Tobacco tax 112,831 120,463 - - 112,831 120,463
Intergovernmental 1,080,208 496,879 - - 1,080,208 496,879
Interest 135,391 56,800 6,557 6,439 141,948 63,239
Miscellaneous 497,773 1,066,548 281,154 - 778,927 1,066,548
Disposal of assets 33,488 62,244 2,291 - 35,779 62,244
Total general
revenues 46,609,127 41,971,526 290,002 6,439 46,899,129 41,977,965
Total revenues 76,587,276 $ 54,799,388 $ 10,633,132 $ 9,348,705 $ 87,220,408 $ 64,148,093
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2022
9
Governmental Activities Business-Type Activities Totals
2022 2021 2022 2021 2022 2021
Expenses
General government $ 13,786,258 $ 11,667,746 $ - $ - $ 13,786,258 $ 11,667,746
Public safety 21,163,072 19,266,236 - - 21,163,072 19,266,236
Public works 7,680,139 6,769,825 - - 7,680,139 6,769,825
Cultural/recreational 3,991,343 3,339,664 - - 3,991,343 3,339,664
Interest/fiscal charges 754,894 982,040 - - 754,894 982,040
Wastewater - - 5,554,371 5,212,704 5,554,371 5,212,704
Sanitation - - 3,018,636 3,032,017 3,018,636 3,032,017
Total expenses 47,375,706 42,025,511 8,573,007 8,244,721 55,948,713 50,270,232
Change before
transfers 29,211,570 12,773,877 2,060,125 1,103,984 31,271,695 13,877,861
Transfers 505,000 (814,950) (505,000) 814,950 - -
Change in
net position 29,716,570 11,958,927 1,555,125 1,918,934 31,271,695 13,877,861
Net position - begin 75,373,983 63,415,056 16,549,067 14,630,133 91,923,050 78,045,189
Net position - end $ 105,090,553 $ 75,373,983 $ 18,104,192 $ 16,549,067 $ 123,194,745 $ 91,923,050
Expenses and Program Revenues for Governmental Activities
Governmental activities increased the City’s net position by $29,716,570 for fiscal year 2022. 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 $22,179,911, including an increase of $2,099,092 in charges for
services, and increase of $15,252,416 in capital grants and contributions, and an increase of $3,193,912 in sales and
use taxes.
Expenses and Program Revenue – Governmental Activities
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
General government Public safety Public works Cultural/recreational Interest/fiscal charges
2022 Revenues 2021 Revenues 2022 Expenses 2021 Expenses
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2022
10
Revenue by Source – Governmental Activities – FY 2022
Revenue by Source – Governmental Activities – FY 2021
14.8%
3.5%
21.0%
46.6%
4.5%
4.7%
1.5%
0.7%
0.7%
0.1%1.4%0.2%0.4%0.0%
Charges for services
Operating grants and contributions
Capital grants and contributions
Sales/use tax
Real/personal property tax
Lodging tax
Local gas tax
Alcohol tax
Rental tax
Tobacco tax
Intergovermental
Interest
Miscellaneous
Disposal of assets
16.9%
5.3%
1.5%
59.8%
6.1%
4.4%
2.1%
0.9%
0.9%0.2%0.9%0.1%0.9%0.1%
Charges for services
Operating grants and contributions
Capital grants and contributions
Sales/use tax
Real/personal property tax
Lodging tax
Local gas tax
Alcohol tax
Rental tax
Tobacco tax
Intergovermental
Interest
Miscellaneous
Disposal of assets
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2022
11
Expenses and Program Revenues for Business-Type Activities
Business-type activities increased the City’s net position by $1,555,125. Key elements of this change in net position are as
follows:
• Wastewater operating expenses increased by $472,128, primarily due to an increase in cost of sales and services.
Wastewater operating revenues increased by $680,764, which is due in part to an increase in sewer impact fee
collections related to continued growth and construction in residential areas of the City and our industrial parks.
• Sanitation operating expenses increased by $187,367, which is due in part to increases in cost of sales and services and
repairs and maintenance. Sanitation operating revenues increased by $320,100, which is due in part to new customers
related to the City’s growth. The City has also implemented multiple recycling programs, which decreased the amount
of solid waste to be disposed of and increased recycling revenue generated.
Expenses and Program Revenues – Business-Type Activities
Financial Analysis of the City’s Funds
As noted earlier, the City 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.
As of September 30, 2022, governmental funds reported a combined ending fund balance of $43,405,446, an increase of
$18,735,914 compared to the prior year. Of this balance, $166,177 is not available for new spending because it is a prepaid item;
$15,295,790 is restricted for law enforcement, road projects, capital projects, historic district improvements, Elmore County
district improvements, and cultural arts; $6,452,436 is committed to capital projects, public facilities, infrastructure, parks and
recreation, and education; and $6,188,101 is assigned for capital projects, facilities improvements, infrastructure, fire training,
capital equipment, economic development reserve, and other purposes.
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
Wastewater Sanitation
2022 Revenues 2022 Expenses
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2022
12
The fund balance of the General Fund increased $6,367,875 during the current fiscal year after other financing sources and uses.
Total revenue increased $5,174,291 as compared to the prior year primarily due to an increase in taxes revenue. Transfers out
decreased by $8,222,212 due to transfers to the debt service fund to pay off Series 2013-A, 2014, and 2015 warrants in the prior
year.
The fund balance of the Capital Projects Fund increased $11,830,157 during the current fiscal year after other financing sources
and uses, primarily due to proceeds from the issuance of long-term debt.
The fund balance of the Debt Service Fund decreased $1,952 during the current fiscal year.
The fund balance of the Gas Tax Special Revenue Fund increased $436,079 during the current fiscal year. This increase in the
fund balance was the result of an increase in intergovernmental revenues.
The fund balance of the Judicial Special Revenue Fund decreased $63,711 during the current fiscal year after other financing
uses and uses. The decrease in the fund balance was primarily the result of decreased revenue from fines, penalties, and other
court costs.
The fund balance of the Historic Prattville Redevelopment Authority (a blended component unit) increased by $167,466 during
the current fiscal year.
Enterprise funds - The City’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 enterprise funds at the end of the year amounted to $5,587,678.
The Wastewater Fund had an overall increase in net position of $1,523,145, and the Sanitation Fund had an overall increase in
net position of $31,980.
Internal service fund - Internal service funds are designed to recover the internal costs of government services provided to other
funds. At September 30, 2022, the internal service fund reported $295,738 for its net position balance. Contributions increased
from the prior year for all participating funds. For 2022, the Enterprise funds funded the exact allocation of costs.
Capital Assets and Long-Term Debt Administration
Capital assets - The City’s net investment in capital assets for its governmental and business-type activities as of
September 30, 2022 was $102,802,691. This investment in capital assets includes land, construction in progress, buildings and
improvements, land improvements, vehicles, equipment, and infrastructure.
Major capital asset additions during the year include:
• Increases in construction in progress of $8,538,928, net of $11,348,123 placed in service
• Purchases of vehicles of $2,250,937, land of $1,522,250, and buildings of $1,305,236
• Infrastructure and land contributions of $14,612,501
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2022
13
Governmental Business-type
Activities Activities Totals
Land $ 5,539,694 $ 1,257,019 $ 6,796,713
Construction in progress 7,306,459 2,758,303 10,064,762
Buildings and improvements 13,277,544 2,757,510 16,035,054
Land improvements 1,152,820 806,247 1,959,067
Vehicles 2,971,388 975,561 3,946,949
Office, nonoffice, and computer equipment 3,237,549 537,161 3,774,710
Infrastructure 76,751,805 36,404,946 113,156,751
Totals, net of accumulated depreciation $ 110,237,259 $ 45,496,747 $ 155,734,006
Additional information on the City’s capital assets can be found in Note 5 of the financial statements.
Long-term debt - As of September 30, 2022, the governmental activities had total debt outstanding of $31,148,891 and the
business-type activities had a total debt outstanding of $34,011,104.
2022 2021 Change
General obligation warrants $ 28,386,615 $ 15,548,066 $ 12,838,549
Warrants from direct placements 30,818,638 30,537,248 281,390
Debt from direct borrowings 4,512,842 4,738,315 (225,473)
Limited obligation warrant 1,441,900 1,457,886 (15,986)
Totals $ 65,159,995 $ 52,281,515 $ 12,878,480
The City of Prattville, Alabama’s net total debt outstanding increased by $12,878,480 during the current fiscal year. During 2022,
the City issued General Obligation Warrant, Series 2022-A in the amount of $9,885,000, General Obligation Warrant, Series
2022-B in the amount of $3,235,000, and General Obligation Warrant, Series 2022-CWSRF-DL in the amount of $2,030,000.
Additional information on the City’s long-term debt can be found in Note 6 of the financial statements.
Budgetary Highlights for the Fiscal Year Ending September 30, 2022
Budget to actual statements and schedules are provided in the financial statements for the General Fund, Gas Tax Special
Revenue Fund, Judicial Special Revenue Fund, Capital Projects Fund, and Debt Service 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, 2022, actual revenues for the General Fund were more than the budgeted amount by $7,303,255, or
14.66%. Sales and use taxes were $6,074,445 more than budgeted due to increased sales primarily as a result of an overall
improvement in economic conditions.
As of September 30, 2022, actual expenditures for the General Fund were less than the budgeted amount by $2,905,128 or
7.04%.
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2022
14
Economic Factors and Year 2023 Budget
Economic conditions for the City 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 and use taxes, which comprised approximately 62% of general fund revenues in fiscal year 2022.
• The unemployment rate for Autauga County, where the City is primarily located, is currently 2.1%, which is a decrease
compared to the prior year. The unemployment rate for the City is 2.0%. The unemployment rate compares favorably
to both the state’s current unemployment rate of 2.5% and to the national average rate of 3.6%.
• 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 and fiscal responsibility. Questions
concerning any of the information provided in this report or requests for additional financial information should be addressed
to the Finance Director, 101 West Main Street, Prattville, Alabama 36067.
City of Prattville, Alabama
Statement of Net Position
September 30, 2022
The accompanying notes are an integral part of these financial statements.
15
Primary Government Component Units
Autauga-
Prattville Prattville
Governmental Business-Type Public Airport
Activities Activities Total Library Authority
Assets
Cash and cash equivalents $ 33,270,392 $ 7,501,784 $ 40,772,176 $ 317,379 $ 185,906
Internal balances 254,930 (254,930) - - -
Accounts receivable 376,296 1,082,909 1,459,205 - 2,960
Taxes receivable 3,834,962 - 3,834,962 - -
Due from other governments 612,416 - 612,416 - -
Inventory - - - - 60,675
Prepaid items 166,177 27,320 193,497 9,939 -
Restricted cash and cash equivalents 14,117,543 1,127,890 15,245,433 - -
Leases receivable, due in one year 16,715 - 16,715 - -
Leases receivable, due after one year 329,481 - 329,481 - -
Capital assets, not depreciated 12,846,153 4,015,322 16,861,475 - 3,374,336
Capital assets, net of accumulated depreciation 97,391,106 41,481,425 138,872,531 18,461 4,429,212
Total assets 163,216,171 54,981,720 218,197,891 345,779 8,053,089
Deferred Outflows of Resources Pension related items 8,713,406 1,070,666 9,784,072 56,829 -
OPEB related items 1,064,332 - 1,064,332 - -
Total deferred outflows of resources 9,777,738 1,070,666 10,848,404 56,829 -
Liabilities Accounts payable 2,221,154 534,846 2,756,000 - 4,370
Accrued liabilities 497,068 54,539 551,607 9,773 -
Retainage payable 300,955 97,019 397,974 - -
Other payables 708,374 30,487 738,861 - -
Unearned revenue 5,126,933 - 5,126,933 48,300 -
Interest payable 204,625 297,628 502,253 - -
Noncurrent liabilities due in one year:
Warrants and other debt 1,528,599 982,500 2,511,099 - 6,457
Compensated absences 451,009 113,959 564,968 - -
Noncurrent liabilities due after one year:
Warrants and other debt, net 29,620,292 33,028,604 62,648,896 - 24,937
Compensated absences 1,022,928 114,223 1,137,151 6,164 -
Net pension liability 17,309,693 2,126,941 19,436,634 60,442 -
Total OPEB liability 3,288,738 - 3,288,738 - -
Total liabilities 62,280,368 37,380,746 99,661,114 124,679 35,764
Deferred Inflows of Resources
Pension related items 4,618,064 567,448 5,185,512 67,234 -
OPEB related items 667,043 - 667,043 - -
Lease related items 337,881 - 337,881 - -
Total deferred inflows of resources 5,622,988 567,448 6,190,436 67,234 -
Net Position Net investment in capital assets 90,286,177 12,516,514 102,802,691 18,461 7,772,154
Restricted for
Law enforcement 220,059 - 220,059 - -
Road projects 921,682 - 921,682 - -
Elmore County district improvements 1,113,879 - 1,113,879 - -
Historic district improvements 361,679 - 361,679 - -
Cultural arts 43,243 - 43,243 - -
Airport improvements - - - - 63,465
Unrestricted 12,143,834 5,587,678 17,731,512 192,234 181,706
Total net position $ 105,090,553 $ 18,104,192 $ 123,194,745 $ 210,695 $ 8,017,325
City of Prattville, Alabama
Statement of Activities
For the Year Ended September 30, 2022
The accompanying notes are an integral part of these financial statements.
16
Net (Expenses) Revenues and Changes in Net Position
Program Revenues Primary Government Component Units
Operating Capital Autauga- Charges Grants Grants Prattville Prattville
for and and Governmental Business-Type Public Airport
Expenses Services Contributions Contributions Activities Activities Total Library Authority
Functions/Programs
Primary government
Governmental activities: General government $ 13,786,258 $ 9,186,255 $ 178,922 $ 346,413 $ (4,074,668) $ (4,074,668) Public safety 21,163,072 1,189,379 475,322 - (19,498,371) (19,498,371)
Public works 7,680,139 - - 15,705,995 8,025,856 8,025,856 Cultural and recreational 3,991,343 895,941 1,999,922 - (1,095,480) (1,095,480) Interest and fiscal charges 754,894 - - - (754,894) (754,894) Total governmental activities 47,375,706 11,271,575 2,654,166 16,052,408 (17,397,557) (17,397,557)
Business-type activities:
Wastewater 5,554,371 7,040,907 - - - $ 1,486,536 1,486,536 Sanitation 3,018,636 3,302,223 - - - 283,587 283,587 Total business-type activities 8,573,007 10,343,130 - - - 1,770,123 1,770,123 Total primary government $ 55,948,713 $ 21,614,705 $ 1 2,654,166 $ 16,052,408 (17,397,557) 1,770,123 (15,627,434)
Component units Autauga-Prattville Public Library $ 686,833 $ 27,456 $ 108,627 $ - $ (550,750) $ -
Prattville Airport Authority 1,049,980 490,350 - 32,000 - (527,630)
Total component units $ 1,736,813 $ 517,806 $ 108,627 $ 32,000 (550,750) (527,630)
General revenues Sales and use taxes 35,616,715 - 35,616,715 - -
Real and personal property taxes 3,405,722 - 3,405,722 - -
Lodging taxes 3,558,414 - 3,558,414 - -
Local gasoline taxes 1,131,901 - 1,131,901 - -
Alcoholic beverage taxes 509,160 - 509,160 - -
Rental taxes 527,524 - 527,524 - -
Tobacco taxes 112,831 - 112,831 - -
Unrestricted shared revenues 1,080,208 - 1,080,208 - -
Interest income 135,391 6,557 141,948 209 192
Other 497,773 281,154 778,927 - -
Gain (loss) on disposal of capital assets 33,488 2,291 35,779 - 4,000
City appropriation - - - 320,000 400,673
County appropriation - - - 205,500 -
Transfers 505,000 (505,000) - - -
Total general revenues and transfers 47,114,127 (214,998) 46,899,129 525,709 404,865
Change in net position 29,716,570 1,555,125 31,271,695 (25,041) (122,765)
Net position – beginning, restated 75,373,983 16,549,067 91,923,050 235,736 8,140,090
Net position - ending $ 105,090,553 $ 18,104,192 $ 123,194,745 $ 210,695 $ 8,017,325
City of Prattville, Alabama
Balance Sheet
Governmental Funds
September 30, 2022
The accompanying notes are an integral part of these financial statements.
17
Nonmajor Fund
Capital Debt Gas Tax Judicial Historic Prattville Total
General Projects Service Special Revenue Special Revenue Redevelopment Governmental
Fund Fund Fund Fund Fund Authority Funds
Assets
Cash and cash equivalents $ 27,125,381 $ 4,388,859 $ - $ 851,192 $ 131,065 $ 259,398 $ 32,755,895
Accounts receivable 172,590 - - - 104,538 - 277,128
Taxes receivable 3,783,200 51,762 - - - - 3,834,962
Due from other governments 9,673 508,531 - 94,212 - - 612,416
Due from other funds 501,830 595,131 - - - - 1,096,961
Leases receivable 346,196 - - - - - 346,196
Prepaid items 166,053 - - - 124 - 166,177
Restricted cash and cash equivalents 1,377,181 12,635,248 - - - 105,114 14,117,543
Total assets $ 33,482,104 $ 18,179,531 $ - $ 945,404 $ 235,727 $ 364,512 $ 53,207,278
Liabilities Accounts payable $ 934,885 $ 1,136,484 $ - $ 23,722 $ 2,511 $ 2,833 $ 2,100,435
Accrued liabilities 487,209 - - - 9,859 - 497,068
Retainage payable - 300,955 - - - - 300,955
Unearned revenue 5,126,933 - - - - 5,126,933
Due to other funds 595,131 221,542 - - 25,180 - 841,853
Other payables 206,517 - - - 304,827 - 511,344
Total liabilities 7,350,675 1,658,981 - 23,722 342,377 2,833 9,378,588
Deferred inflows of resources
Lease related items 337,881 - - - - - 337,881
Unavailable revenue - intergovernmental - 85,363 - - - - 85,363
Total deferred inflows of resources 337,881 85,363 - - - - 423,244
Fund balance
Nonspendable: Prepaid items 166,053 - - - 124 - 166,177
Restricted:
Law enforcement 220,059 - - - - - 220,059
Road projects - - - 921,682 - - 921,682
Capital projects - 12,635,248 - - - - 12,635,248
Historic district improvements - - - - - 361,679 361,679
Elmore County district improvements 1,113,879 - - - - - 1,113,879
Cultural arts 43,243 - - - - - 43,243
Committed: Capital projects - 388,716 - - - - 388,716
Public facilities 874,624 - - - - - 874,624
Infrastructure 1,583,829 - - - - - 1,583,829
Parks and recreation 1,970,309 - - - - - 1,970,309
Education 1,634,958 - - - - - 1,634,958
Assigned: Capital projects - 2,653,265 - - - - 2,653,265
Facilities improvements 636,191 - - - - - 636,191
Infrastructure - 755,962 - - - - 755,962
Fire training 23,926 - - - - - 23,926
Capital equipment reserve 328,616 - - - - - 328,616
Economic development reserve 750,827 - - - - - 750,827
Other purposes 1,037,318 1,996 - - - - 1,039,314
Unassigned (deficit) 15,409,716 - - - (106,774) - 15,302,942
Total fund balances 25,793,548 16,435,187 - 921,682 (106,650) 361,679 43,405,446
Total liabilities, deferred inflows of resources and fund balances $ 33,482,104 $ 18,179,531 $ - $ 945,404 $ 235,727 $ 364,512 $ 53,207,278
City of Prattville, Alabama
Reconciliation of Balance Sheet of Governmental Funds to Statement of Net Position
September 30, 2022
The accompanying notes are an integral part of these financial statements.
18
Total Fund Balances – Governmental Funds $ 43,405,446
Amounts reported for governmental activities in the statement of net position
are different because:
Capital assets used in governmental activities are not financial resources and are not reported
in the governmental funds. 110,237,259
Some revenues are not available to pay for current-period expenditures and, therefore, are reported
as unavailable revenue in the governmental funds. 85,363
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. 295,738
Deferred outflows and inflows of resources as well as the net pension and OPEB liability related to the
City's
pension and OPEB plan are not expected to be liquidated with expendable, available financial
resources and, therefore, are not reported in the governmental funds.
Deferred outflows related to the pension plan 8,713,406
Deferred inflows related to the pension plan (4,618,064)
Deferred outflows related to the OPEB plan 1,064,332
Deferred inflows related to the OPEB plan (667,043)
Net pension liability (17,309,693)
Total OPEB liability (3,288,738)
Long-term liabilities are not due and payable in the current period and, therefore, are not reported in
the governmental funds.
Warrants payable and financed purchases, net of discount (31,148,891)
Compensated absences (1,473,937)
Accrued interest payable (204,625)
Net Position of Governmental Activities $ 105,090,553
City of Prattville, Alabama
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2022
The accompanying notes are an integral part of these financial statements.
19
Nonmajor Fund
Capital Debt Gas Tax Judicial Historic Prattville Total
General Projects Service Special Special Redevelopment Governmental
Fund Fund Fund Revenue Fund Revenue Fund Authority Funds
Revenues
Taxes $ 44,257,690 $ 604,577 $ - $ - $ - $ - $ 44,862,267
Licenses and permits 7,206,251 - - - - - 7,206,251
Fines and forfeitures 155,476 - - - 659,535 - 815,011
Charges for services 1,929,844 - - - - - 1,929,844
Intergovernmental revenues 3,190,530 1,262,837 - 635,552 - - 5,088,919
Interest income 96,635 37,993 - 242 - 365 135,235
Miscellaneous revenues 297,773 - - - - 200,000 497,773
Total revenues 57,134,199 1,905,407 - 635,794 659,535 200,365 60,535,300
Expenditures Current:
General government 8,599,655 2,600,000 - - 369,433 - 11,569,088
Public safety 17,080,337 - - - 549,569 - 17,629,906
Public works 5,550,510 54,386 - 199,715 - 56,223 5,860,834
Cultural and recreational 3,426,748 - - - - - 3,426,748
Capital outlay 5,424,564 5,968,029 - - - 500,000 11,892,593
Debt service
Principal payments 15,986 - 1,002,253 - - 120,000 1,138,239
Interest and fiscal charges - - 287,996 - - 124,396 412,392
Issuance costs - 173,514 - - - - 173,514
Total expenditures 40,097,800 8,795,929 1,290,249 199,715 919,002 800,619 52,103,314
Excess of revenues over (under) expenditures 17,036,399 (6,890,522) (1,290,249) 436,079 (259,467) (600,254) 8,431,986
Other financing sources (uses) Sale of capital assets 56,661 - - - - - 56,661
Issuance of long-term debt - 13,830,500 - - - - 13,830,500
Discount on long-term debt - (223,233) - - - - (223,233)
Transfers in 1,063,302 6,803,349 1,290,249 - 261,287 767,720 10,185,907
Transfer out (11,788,487) (1,689,937) (1,952) - (65,531) - (13,545,907)
Total other financing sources (uses) (10,668,524) 18,720,679 1,288,297 - 195,756 767,720 10,303,928
Net change in fund balances 6,367,875 11,830,157 (1,952) 436,079 (63,711) 167,466 18,735,914
Fund balances – beginning, restated 19,425,673 4,605,030 1,952 485,603 (42,939) 194,213 24,669,532
Fund balances - ending $ 25,793,548 $ 16,435,187 $ - $ 921,682 $ (106,650) $ 361,679 $ 43,405,446
City of Prattville, Alabama
Reconciliation of Statement of Revenues, Expenditures, and Changes in Fund Balances of
Governmental Funds to Statement of Activities
For the Year Ended September 30, 2022
The accompanying notes are an integral part of these financial statements.
20
Net Change in Fund Balances – Total Governmental Funds $ 18,735,914
Amounts reported for governmental activities in the statement of activities
are different because:
Donations of capital assets increase net position but do not appear in the governmental funds
because they are not financial resources. 14,612,501
Governmental funds report capital outlays as expenditures. However, in the statement of
net position the cost of these assets is capitalized, and they are depreciated over their
estimated useful lives and reported as depreciation expense in the statement of activities.
Capital outlays are reported as expenditures in the fund financial statements
but are capitalized in the government-wide financial statements 11,892,593
Depreciation/Amortization is reported in the government-wide statements (3,465,782)
The net effect of miscellaneous transactions involving capital assets is to decrease net position. These
are the net disposals of assets. (23,173)
Debt issued provide current financial resources to governmental funds, but
issuing these obligations increases long-term liabilities in the statement of net position
Repayment of principal is an expenditure in the governmental funds, but the repayment
reduces long-term liabilities in the statement of net position.
Debt issued, net of discount (13,607,267)
Principal repaid 1,138,239
The activities of internal service funds are reported with governmental activities. 605,018
Revenues are reported in governmental 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. 85,363
Some expenses in the statement of activities do not require the use of current financial
resources and, therefore, are not reported as expenditures in the governmental funds.
Compensated absences (34,811)
Accrued interest payable (163,567)
Amortization of debt discounts (5,421)
OPEB (68,119)
Pension 15,082
Change in Net Position of Governmental Activities $ 29,716,570
City of Prattville, Alabama
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual
General Fund
For the Year Ended September 30, 2022
The accompanying notes are an integral part of these financial statements.
21
Variance with
Final Budget
Budgeted Amounts Actual Amounts Positive
Original Final Budgetary Basis (Negative)
Revenues
Taxes
Sales and use tax $ 29,219,695 $ 29,542,269 $ 35,616,714 $ 6,074,445
Real and personal property taxes 3,268,500 3,268,500 3,405,722 137,222
Lodging taxes 2,040,000 2,040,000 2,953,838 913,838
Local gasoline taxes 1,100,000 1,100,000 1,131,901 31,901
Alcoholic beverage taxes 425,000 425,000 509,160 84,160
Rental taxes 438,000 438,000 527,524 89,524
Tobacco taxes 125,000 125,000 112,831 (12,169)
Total taxes 36,616,195 36,938,769 44,257,690 7,318,921
Licenses and permits
Business licenses 5,551,000 5,796,121 6,100,070 303,949
Franchise fees 550,000 550,000 475,867 (74,133)
Building permits and inspection fees 537,076 537,076 627,799 90,723
Yard sale and special event permits 3,800 3,800 2,515 (1,285)
Total licenses and permits 6,641,876 6,886,997 7,206,251 319,254
Fines and forfeitures
Drug confiscation proceeds - - 76,890 76,890
Penalties and other fees 57,000 57,000 69,253 12,253
Accident reports 9,000 9,000 9,333 333
Total fines and forfeitures 66,000 66,000 155,476 89,476
Charges for services
Ambulance fees 915,000 915,000 1,023,510 108,510
Fire training tuition 20,000 20,000 10,393 (9,607)
Parks and recreation 476,250 476,250 787,369 311,119
Performing and creative arts 63,900 63,900 108,572 44,672
Total charges for services 1,475,150 1,475,150 1,929,844 454,694
Intergovernmental revenues
Shared 608,000 608,000 536,363 (71,637)
Grants 619,947 3,616,229 2,654,167 (962,062)
Total intergovernmental revenues 1,227,947 4,224,229 3,190,530 (1,033,699)
Investment Earnings 55,000 55,000 96,635 41,635
Miscellaneous revenues
Donations 2,000 35,650 46,087 10,437
Insurance proceeds 50,000 50,000 91,911 41,911
Tower fees 22,000 22,000 22,169 169
Miscellaneous income 79,149 77,149 137,606 60,457
Total other revenues 153,149 184,799 297,773 112,974
Total revenues 46,235,317 49,830,944 57,134,199 7,303,255
City of Prattville, Alabama
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual
General Fund
For the Year Ended September 30, 2022
The accompanying notes are an integral part of these financial statements.
22
Variance with
Final Budget
Budgeted Amounts Actual Amounts Positive
Original Final Budgetary Basis (Negative)
Expenditures
Current:
General government
Executive $ 782,735 $ 825,935 $ 627,813 $ 198,122
Legislative 165,723 165,723 148,906 16,817
Finance 774,752 774,752 764,183 10,569
City clerk 228,622 228,622 269,378 (40,756)
Human resources 723,752 815,938 717,673 98,265
Information technology 1,977,979 1,985,479 2,142,776 (157,297)
Vehicle maintenance 385,456 385,456 320,443 65,013
Sales tax incentives 1,560,000 1,560,000 1,581,767 (21,767)
Building 391,770 391,770 407,397 (15,627)
City/County services 432,000 432,000 112,000 320,000
Community initiatives 1,240,839 1,850,230 636,275 1,213,955
Appropriations 249,000 249,000 749,665 (500,665)
Total general government 8,912,628 9,664,905 8,478,276 1,186,629
Public safety
Police 9,574,988 9,575,156 9,045,523 529,633
Fire 8,924,443 8,399,189 7,992,102 407,087
Total public safety 18,499,431 17,974,345 17,037,625 936,720
Public works
General public works 754,710 754,709 886,707 (131,998)
Planning and development 832,131 838,498 647,928 190,570
Urban management 2,030,415 1,901,415 1,897,961 3,454
Engineering 2,072,698 1,972,699 1,645,910 326,789
Facilities maintenance 863,897 408,897 639,751 (230,854)
Total public works 6,553,851 5,876,218 5,718,257 157,961
Cultural and recreational
Parks and recreation 2,579,932 2,594,932 2,991,103 (396,171)
Performing and creative arts 416,974 416,974 437,259 (20,285)
Total cultural and recreational 2,996,906 3,011,906 3,428,362 (416,456)
Capital outlay 769,000 4,663,375 3,623,615 1,039,760
Debt service
Principal payments 16,500 16,500 15,986 514
Total expenditures 37,748,316 41,207,249 38,302,121 2,905,128
Excess of revenues over expenditures 8,487,001 8,623,695 18,832,078 10,208,383
City of Prattville, Alabama
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual
General Fund
For the Year Ended September 30, 2022
The accompanying notes are an integral part of these financial statements.
23
Variance with
Final Budget
Budgeted Amounts Actual Amounts Positive
Original Final Budgetary Basis (Negative)
Other financing sources (uses)
Proceeds from sale of capital assets $ 65,000 $ 130,000 $ 56,661 $ (73,339)
Transfers in 65,000 95,450 1,063,302 967,852
Transfers out (4,255,417) (9,538,651) (11,788,487) (2,249,836)
Total other financing sources (uses) (4,125,417) (9,313,201) (10,668,524) (1,355,323)
Net change in fund balance $ 4,361,584 $ (689,506) 8,163,554 $ 8,853,060
Adjustment for reconciling items to adjust from
budgetary basis to modified accrual basis
Change in encumbrances (1,795,679)
Net change in fund balance, modified accrual basis 6,367,875
Fund balance – beginning, restated 19,425,673
Fund balance - ending $ 25,793,548
City of Prattville, Alabama
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual
Gas Tax Special Revenue Fund
For the Year Ended September 30, 2022
The accompanying notes are an integral part of these financial statements.
24
Variance with
Final Budget
Budgeted Amounts Actual Amounts Positive
Original Final Budgetary Basis (Negative)
Revenues
Intergovernmental revenues
Excise tax $ 516,250 $ 516,250 $ 635,552 $ 119,302
Interest income 135 135 242 107
Total revenues 516,385 516,385 635,794 119,409
Expenditures
Public works 993,091 993,091 199,715 793,376
Total expenditures 993,091 993,091 199,715 793,376
Deficiency of revenues under expenditures (476,706) (476,706) 436,079 912,785
Net change in fund balances $ (476,706) $ (476,706) 436,079 $ 912,785
Net change in fund balances, modified accrual basis 436,079
Fund balance - beginning 485,603
Fund balance - ending $ 921,682
City of Prattville, Alabama
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual
Judicial Special Revenue Fund
For the Year Ended September 30, 2022
The accompanying notes are an integral part of these financial statements.
25
Variance with
Final Budget
Budgeted Amounts Actual Amounts Positive
Original Final Budgetary Basis (Negative)
Revenues
Fines and forfeitures $ 772,669 $ 801,201 $ 659,535 $ (141,666)
Intergovernmental revenues
Grants 5,000 5,000 - (5,000)
Total revenues 777,669 806,201 659,535 (146,666)
Expenditures
Current:
General government
Judicial 345,381 345,381 369,433 (24,052)
Public safety
Police 659,107 659,107 549,569 109,538
Total expenditures 1,004,488 1,004,488 919,002 85,486
Deficiency of revenues under expenditures (226,819) (198,287) (259,467) (61,180)
Other financing sources (uses)
Transfers in 261,287 261,287 261,287 -
Transfers out (63,000) (63,000) (65,531) (2,531)
Total other financing sources (uses) 198,287 198,287 195,756 (2,531)
Net change in fund balances $ (28,532) $ - (63,711) $ (63,711)
Net change in fund balances, modified accrual basis (63,711)
Fund balance – beginning (42,939)
Fund balance – ending $ (106,650)
City of Prattville, Alabama
Statement of Net Position
Proprietary Funds
September 30, 2022
The accompanying notes are an integral part of these financial statements.
26
Governmental Business-Type Activities Activities
Wastewater Sanitation Total Enterprise Funds Internal Service Fund
Assets
Current assets:
Cash and cash equivalents $ 7,240,810 $ 260,974 $ 7,501,784 $ 514,497
Accounts receivable, net 840,417 242,492 1,082,909 99,168
Prepaid items 10,619 16,701 27,320 -
Total current assets 8,091,846 520,167 8,612,013 613,665
Noncurrent assets:
Restricted cash and cash equivalents 1,127,890 - 1,127,890 -
Capital assets, not depreciated 3,676,668 338,654 4,015,322 -
Capital assets, net of accumulated depreciation 40,526,988 954,437 41,481,425 -
Total noncurrent assets 45,331,546 1,293,091 46,624,637 -
Total assets 53,423,392 1,813,258 55,236,650 613,665
Deferred outflows of resources
Pension related items 659,434 411,232 1,070,666 -
Liabilities
Current liabilities:
Accounts payable 368,998 165,848 534,846 120,719
Accrued liabilities 32,826 21,713 54,539 197,030
Other liabilities 312,922 15,193 328,115 -
Retainage payable 97,019 - 97,019 -
Due to other funds 151,200 103,730 254,930 178
Current portion of long-term debt 982,500 - 982,500 -
Current portion of compensated absences 113,959 - 113,959 -
Total current liabilities 2,059,424 306,484 2,365,908 317,927
Noncurrent liabilities:
Long-term debt, net 33,028,604 - 33,028,604 -
Compensated absences 57,812 56,411 114,223 -
Net pension liability 1,310,004 816,937 2,126,941 -
Total noncurrent liabilities 34,396,420 873,348 35,269,768 -
Total liabilities 36,455,844 1,179,832 37,635,676 317,927
Deferred inflows of resources
Pension related items 349,497 217,951 567,448 -
Net position
Net investment in capital assets 11,223,423 1,293,091 12,516,514 -
Unrestricted (deficit) 6,054,062 (466,384) 5,587,678 295,738
Total net position $ 17,277,485 $ 826,707 $ 18,104,192 $ 295,738
City of Prattville, Alabama
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended September 30, 2022
The accompanying notes are an integral part of these financial statements.
27
Governmental
Business-Type Activities Activities
Wastewater Sanitation Total Enterprise Funds Internal Service Fund
Operating revenues
Charges for services $ 7,040,907 $ 3,302,223 $ 10,343,130 $ 1,320,469
Operating expenses
Cost of sales and services 937,591 1,050,583 1,988,174 -
Salaries and benefits 1,642,674 1,258,247 2,900,921 -
Repairs and maintenance 139,113 313,218 452,331 -
Utilities 519,358 7,049 526,407 -
Insurance 91,355 61,752 153,107 -
Other 77,605 27,396 105,001 561,299
Depreciation 1,167,503 300,391 1,467,894 -
Benefits paid - - - 4,019,308
Total operating expenses 4,575,199 3,018,636 7,593,835 4,580,607
Operating Income (Loss) 2,465,708 283,587 2,749,295 (3,260,138)
Nonoperating revenues (expenses)
Interest income 6,484 73 6,557 156
Interest and fiscal charges (979,172) - (979,172) -
Other 280,334 820 281,154 -
Gain on disposals 2,291 - 2,291 -
Total nonoperating revenues (expenses) (690,063) 893 (689,170) 156
Income (loss) before contributions and transfers 1,775,645 284,480 2,060,125 (3,259,982)
Transfers in - - - 3,865,000
Transfers out (252,500) (252,500) (505,000) -
Change in net position 1,523,145 31,980 1,555,125 605,018
Net position – beginning, restated 15,754,340 794,727 16,549,067 (309,280)
Net position – ending $ 17,277,485 $ 826,707 $ 18,104,192 $ 295,738
City of Prattville, Alabama
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2022
The accompanying notes are an integral part of these financial statements.
28
Governmental
Business-Type Activities Activities
Total Internal
Wastewater Sanitation Enterprise Funds Service Fund
Cash flows from (used for) operating activities
Receipts from customers $ 7,248,979 $ 3,294,947 $ 10,543,926 $ -
Payments to suppliers (1,867,554) (1,361,783) (3,229,337) (4,669,514)
Payments to employees (1,673,217) (1,254,117) (2,927,334) -
Receipts from interfund services provided - - - 1,332,786
Net cash from (used for) operating activities 3,708,208 679,047 4,387,255 (3,336,728)
Cash flows from (used for) noncapital financing activities
Transfers in - - - 3,865,000
Transfers out (252,500) (252,500) (505,000) -
Other revenue 280,334 820 281,154 -
Changes in due to/from other funds 117,487 5,834 123,321 (30,014)
Net cash from (used for) noncapital financing activities 145,321 (245,846) (100,525) 3,834,986
Cash flows from (used for) capital and related financing activities
Acquisition and construction of capital assets (1,851,883) (599,061) (2,450,944) -
Interest and fiscal charges paid (987,391) - (987,391) -
Principal payments on long-term debt (907,250) - (907,250) -
Proceeds from long-term debt 1,319,500 - 1,319,500 -
Proceeds from sale of capital assets 114,112 - 114,112 -
Transfers of restricted assets 366,800 - 366,800 -
Net cash from (used for) capital and related financing activities (1,946,112) (599,061) (2,545,173) -
Cash flows from investing activities
Interest earned 6,484 73 6,557 156
Net cash from investing activities 6,484 73 6,557 156
Net increase (decrease) in cash and cash equivalents 1,913,901 (165,787) 1,748,114 498,414
Cash and cash equivalents, beginning of year 5,326,909 426,761 5,753,670 16,083
Cash and cash equivalents, end of year $ 7,240,810 $ 260,974 $ 7,501,784 $ 514,497
Reconciliation of operating income (loss) to net cash flows
from (used for) operating activities
Operating income (loss) $ 2,465,708 $ 283,587 $ 2,749,295 $ (3,260,138)
Adjustments to reconcile operating income (loss) to net
cash from (used for) operating activities:
Depreciation 1,167,503 300,391 1,467,894 -
Receivables (increase) decrease 208,072 (7,276) 200,796 12,317
Prepaid items (increase) decrease (4,590) 2,222 (2,368) -
Pension related increase (decrease) (24,171) 5,599 (18,572) -
Payable and accrued liability increase (decrease) (104,314) 94,524 (9,790) (88,907)
Net cash from (used for) operating activities $ 3,708,208 $ 679,047 $ 4,387,255 $ (3,336,728)
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
29
Note 1 – Summary of Significant Accounting Policies
The financial statements of the City of Prattville, Alabama (the “City”) have been prepared in conformity with accounting
principles generally accepted in the United States of America (“GAAP”) as applied to government units. The Governmental
Accounting Standards Board “(GASB”) is the accepted standard-setting body for establishing governmental accounting and
financial reporting principles. The more significant of the City's accounting policies are described below.
Reporting entity - The City was incorporated under the laws of the State of Alabama in 1865 and is operated 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 GAAP, the financial statements of the reporting entity include those of the City (the primary
government) and its component units. The component units discussed below are included because of the nature and
significance of their operational or financial relationships with the City. Component units are presented as either blended
component units or discretely presented component units. The City has one blended component unit and two discretely
presented component units. The blended component unit, although a legally separate entity is, in substance, part of the City’s
operations, and accordingly, data from the blended component unit are combined with data of 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. Each of the component units has a fiscal year ending September 30.
Discretely presented component units
Autauga-Prattville Public Library (the Library) - 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, 2022. Financial statements of the
Library can be obtained at its administrative office located in Prattville, Alabama.
Prattville Airport Authority (the Authority) - The Authority was established for the purpose of acquiring, operating, constructing,
and developing airport and industrial facilities. The City appoints the governing body and, in September 2000, became obligated
under a federal grant initiated by the Authority. Based on these criteria, the Authority is included as a component unit of the
City for the year ended September 30, 2022. Financial statements of the Authority can be obtained at its administrative office
located in Prattville, Alabama.
Blended component unit
Historic Prattville Redevelopment Authority (HPRA) - 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. HPRA’s debt is expected to be repaid entirely with the City’s resources. Accordingly, HPRA is reported as if
it is a part of the primary government. HPRA’s general fund is reported as a special revenue fund of the City; that is, as a blended
component unit. Separate financial statements are not prepared for HPRA.
Related Organizations - The City's officials are responsible for appointing the members of the Water Works Board of the City of
Prattville (the “PWWB”), and the City utilizes the PWWB as the collection agent for the sewer and sanitation services. The City
has no ability to influence the operations of the Authority nor has any obligations related to the Authority. This organization
would not be considered a component unit of the City; therefore, their financial information is not reflected in the City’s financial
statements.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
30
Note 1 – Summary of Significant Accounting Policies (continued)
The City's officials are also responsible for appointing the members of the boards of various 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.
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, as are the proprietary fund financial statements. Revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows.
Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in
exchange, include property taxes, grants, entitlements, and donations.
On an accrual basis, revenue from property taxes associated with the current fiscal period are considered to be susceptible to
accrual and so have been recognized as revenues of the current fiscal period. Grants and similar items are recognized as revenue
in the fiscal year in which all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements - 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 the current period or soon
enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are
collected within 90 days of the end of the current fiscal period for which they are levied. 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 on general long-term debt, including lease liabilities, as well as expenditures related to compensated absences and
claims and judgments, are recorded generally when payment is due. Allocations of cost, such as depreciation and amortization,
are not recognized in governmental funds. General capital asset acquisitions, including entering into contracts giving the City
the right to use leased assets, are reported as expenditures in governmental funds. Issuance of long-term debt and financing
through 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.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by
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 net position for the fiscal year.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
31
Note 1 – Summary of Significant Accounting Policies (continued)
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 presentation.
The City reports the following major governmental funds:
General Fund – The General Fund 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 this fund is restricted for the operation of the municipal court and jail.
The City reports the following major proprietary funds:
Wastewater – The Wastewater Fund accounts for the revenues and costs related to the provision of sanitary sewer and
wastewater treatment services in the City.
Sanitation - The Sanitation Fund accounts for the revenues and costs related to the provision of sanitation services in the City.
Additionally, the City reports the following fund types:
Internal Service Fund - The Internal Service Fund accounts for the operations of the self-insured medical insurance plan provided
to other departments of the City on a cost reimbursement basis.
Historic Prattville Redevelopment Authority (a blended component unit) - The Historic Prattville Redevelopment Authority
accounts for historic district redevelopment activities.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.
Exceptions to this general rule are charges between the City’s various other functions of the City. Elimination of these charges
would distort the direct costs and program revenues reported for the various functions concerned.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
32
Note 1 – Summary of Significant Accounting Policies (continued)
Proprietary fund financial statements - Proprietary funds are used to account for operations that are (a) financed and operated
in a manner similar to private business enterprises – where the intent of the governing body is that the costs (expenses, including
depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily
through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses
incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other
purposes.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal
ongoing operations. All revenues and expenses not meeting this definition are reported as non-operating revenues and
expenses.
Cash and cash equivalents - Cash equivalents are defined as short-term, highly liquid investments that are both readily
convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because
of changes in interest rates. Generally, only investments with original maturities of three months or less meet this definition.
The City’s 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.
Prepaid items - Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items in both the government-wide and fund financial statements. These prepaid items are recorded as expenditures when
consumed, rather than when purchased.
Receivables – Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the
fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from
other funds” (i.e., the noncurrent portion of interfund loans).
All 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.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
33
Note 1 – Summary of Significant Accounting Policies (continued)
Accounts receivable in the proprietary funds consist of monthly billings to customers for services provided. The City extends
credit to its customers, who are located primarily in Prattville, Alabama. Trade accounts receivable are stated at the amount
management expects to collect from balances outstanding at year end. Based on 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.
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.
Capital assets - Capital assets 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. Capital assets are recorded at historical cost or estimated historical cost if purchased or constructed, and donated
capital assets are recorded at estimated acquisition value at 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 are depreciated using the straight-line method 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
Vehicles 5 - 15 years 10,000
Office, nonoffice, and computer equipment 5 - 20 years 10,000
Infrastructure 50 years 50,000
Capital assets of the Library, a component unit, are depreciated using the straight-line method over the following estimated
useful lives:
Asset Class
Estimated
Useful Lives
Capitalization
Threshold
Equipment 3 - 20 years $ 5,000
Capital assets of the Authority, a component unit, are depreciated using the straight-line method over the following estimated
useful lives:
Asset Class
Estimated
Useful Lives
Capitalization
Threshold
Buildings and improvements 20 years $ 5,000
Land improvements 3 - 4 years 5,000
Furniture and equipment 5 - 20 years 5,000
Runways 8 - 25 years 5,000
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
34
Note 1 – Summary of Significant Accounting Policies (continued)
Capital assets of the HPRA, a blended component unit, are depreciated using the straight-line method 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
Office, nonoffice, and computer 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.
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.
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 such as a deferred outflow of resources
related to the City’s pension plan (see Note 11) and a deferred outflow of resources for postemployment benefit plans other
than pension (OPEB) related items (see Note 12). The Library, a component unit, has a deferred outflow related to its pension
plan.
Deferred inflows of resources - The City’s governmental funds report unavailable revenue from receivables collected outside of
the period of availability. These amounts are deferred and recognized as an inflow of resources in the period that the amounts
become available. As of September 30, 2022, the balance in the Capital Projects Fund consisted of capital related grant funds
received after the period of availability. Additionally, the City recognizes a deferred inflow of resources at the initial
measurement of lease receivables.
Unearned revenue - The City reported American Rescue Plan grant funds received in advance of the underlying event as
unearned revenue.
Long-term liabilities - In the government-wide financial statement, and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-
type activities, or proprietary fund type statement of net position. Premiums and discounts are deferred and amortized over
the life of the bonds using the effective interest method. Bonds and warrants payable are reported net of the applicable bond
premium or discount.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
35
Note 1 – Summary of Significant Accounting Policies (continued)
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance
costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on
debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
Leases - The City is a lessor for noncancellable leases of buildings and improvements. At the commencement of a lease, the City
initially measures the lease receivable at the present value of payments expected to be received during the lease term.
Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of
resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before
the lease commencement. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease
term.
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the
expected lease payments to present value, (2) lease term, and (3) lease payments:
The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not
provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases. The lease term
includes the noncancelable period of the lease. Lease payments included in the measurement of the lease liability are composed
of fixed payments and purchase option prices that the City is reasonably certain to exercise. The City monitors changes in
circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes
occur that are expected to significantly affect the amount of the lease liability.
Pensions - The Employees’ Retirement System of Alabama (the Plan or ERS) 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 the 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 Annual Comprehensive Financial Report.
Fund equity - Fund equity at the governmental fund financial reporting level is classified as “fund balance”. Fund equity for all
other reporting is classified as “net position”.
Fund balance – In accordance with Governmental Accounting Standards Board Statement 54, Fund Balance Reporting and
Governmental Fund Type Definitions, the City classifies governmental fund balance as follows:
Nonspendable – includes fund balance amount that cannot be spent because they are either: a) not in spendable form (i.e.,
items that are not expected to be converted to cash), or (b) legally or contractually required to be maintained intact. This would
include inventories, deposits, and prepaid items.
Restricted – includes fund balances 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, 2022
36
Note 1 – Summary of Significant Accounting Policies (continued)
Committed – includes fund balances amounts that can be used only for specific purposes pursuant to constraints imposed by
formal action of the City Council through the adoption of an ordinance. Only the City Council may modify or rescind the
commitment.
Assigned – includes spendable fund balances amounts are constrained by the City’s intent to be used for specific purposes, but
are neither restricted nor committed. 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.
When both restricted and unrestricted amounts of fund balance are available for use for expenditures incurred, it is the City’s
policy to use restricted amounts first and then unrestricted amounts as they are needed. For unrestricted amounts of fund
balance, it is the City’s policy to use fund balance in the following order: 1) committed, 2) assigned, and 3) unassigned.
The City adopted a General Fund Reserves policy that maintains the greater of $6,000,000 or 20% of the previous years’ audited
General Fund revenue in a General Fund Reserves bank account. As of September 30, 2022, the General Fund Reserves bank
account contained $6,103,591.
Net position - Net position represents the difference between assets, deferred inflow and outflows of resources, and liabilities
in reporting which utilizes the economic resources measurement focus. Net investment in capital assets consists of capital
assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used (i.e., the amount that the
City has spent) for the acquisition, construction or improvement of those assets. Net position is reported as restricted using the
same definition as used for restricted fund balance as described in the section above. All other net position is reported as
unrestricted.
The following is the calculation of the City’s net investment in capital assets as of September 30, 2022:
Governmental Business-Type
Activities Activities Total
Capital assets, net $ 110,237,259 $ 45,496,747 $ 155,734,006
Construction payables (1,437,439) (97,019) (1,534,458)
GO warrants payable (13,120,000) - (13,120,000)
GO warrants related discount 223,233 - 223,233
Revenue warrants payables - (15,355,000) (15,355,000)
Revenue warrants premium - (134,848) (134,848)
Direct placement warrants payable (12,297,382) (18,521,256) (30,818,638)
Direct borrowing payable (4,552,269) - (4,552,269)
Direct borrowing related discount 39,427 - 39,427
Limited obligation warrant payable (1,441,900) - (1,441,900)
Unspent proceeds 12,635,248 1,127,890 13,763,138
$ 90,286,177 $ 12,516,514 $ 102,802,691
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
37
Note 1 – Summary of Significant Accounting Policies (continued)
The City’s discretely presented component units’ net investment in capital assets as of September 30, 2022 is calculated as
follows:
Library Airport
Capital assets, net $ 18,461 $ 7,803,548
Add: Note receivable - development bonds - -
Less: Related outstanding debt - (31,394)
$ 18,461 $ 7,772,154
The City applies restricted resources first when an expense is incurred for purposes for which both restricted and unrestricted
net position are available.
Management estimates - 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, deferred inflows of resources, deferred outflows of resources, and liabilities, and the disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Pronouncements effective for the 2022 financial statements
In June 2017, the GASB issued Statement No. 87, Leases. This statement establishes accounting and financial reporting standards
focused on certain lease liabilities that currently are not reported. Comparability of financial statements among governments
will be enhanced by requiring lessees and lessors to report leases under a single model. Decision-usefulness will also be
enhanced by requiring notes to financial statements related to the timing, significance, and purpose of leasing arrangements.
This Statement is effective for fiscal years beginning after June 15, 2021. The City has adopted this statement in its 2022 Annual
Comprehensive Financial Report.
In March 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered Rates. The objective of this Statement is
to address those and other accounting and financial reporting implications that result from the replacement of an Interbank
Offered Rate (IBOR). This Statement is effective for fiscal years beginning after June 15, 2021. There was no impact of this
pronouncement to the City's financial statements.
In June 2020, the GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for
Internal Revenue Code Section 457 Deferred Compensation Plans. The objectives of this Statement are to (1) increase
consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential
component unit does not have a governing board and the primary government performs the duties that a governing board
typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined
contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans
(other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the
relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457
deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through
those plans. This Statement is effective for fiscal years beginning after June 15, 2021. There was no impact of this
pronouncement to the City's financial statements.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
38
Note 1 – Summary of Significant Accounting Policies (continued)
In January 2020, the GASB issued Statement No. 92, Omnibus 2020. The objectives of this Statement are to enhance
comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing
practice issues that have been identified during implementation and application of certain GASB Statements. This Statement is
effective for fiscal years beginning after June 15, 2021. There was no impact of this pronouncement to the City's financial
statements.
In January 2020, the GASB issued Statement No. 98, The Annual Comprehensive Financial Report. This Statement establishes
the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of
comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local
governments. This Statement is effective for fiscal years ending after December 31, 2021. The City has adopted this statement
in its 2021 Annual Comprehensive Financial Report.
Pronouncements issued, but not yet effective
In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The primary objectives of this Statement are to
provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1)
commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures.
This Statement is effective for reporting periods beginning after December 15, 2021. The City is in the process of evaluating the
impact of this pronouncement on its financial statements.
In March 2020, the GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment
Arrangements. The objective of this Statement is to improve financial reporting by addressing issues related to public-private
and public-public partnership arrangements (PPPs). This Statement is effective for fiscal years beginning after June 15, 2022.
The City is in the process of evaluating the impact of this pronouncement on its financial statements.
In May 2020, the GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. This Statement
provides guidance on the accounting and financial reporting for subscription-based information technology arrangements
(SBITAs) for government and end users (governments). This Statement is effective for fiscal years beginning after June 15, 2022.
The City is in the process of evaluating the impact of this pronouncement on its financial statements.
In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error Corrections - An Amendment of GASB
Statement No. 62. The objective of this Statement is to enhance accounting and financial reporting requirements for accounting
changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for
making decisions or assessing accountability. This statement is effective in fiscal years beginning after June 15, 2023. The City is
in the process of evaluating the impact of this pronouncement on its financial statements.
In June 2022, the GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the
information needs of financial statement users by updating the recognition and measurement guidance for compensated
absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by
amending certain previously required disclosures. This statement is effective in fiscal years beginning after December 15, 2023.
The City is in the process of evaluating the impact of this pronouncement on its financial statements.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
39
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, 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 2022, general government expenditures exceeded
appropriations in the Judicial Special Revenue Fund by $24,052 due to under budgeted special judges and prosecutors. Cultural
and recreational expenditures exceeded appropriations in the general fund by $416,456.
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 GAAP insofar as encumbrances are included with
expenditures. Reconciliation of expenditures reported in accordance with GAAP and those presented in accordance with the
non-GAAP budgetary basis are noted below.
General Fund
Net change in fund balance, modified accrual basis $ 6,367,875
Encumbrances at beginning of the year 2,815,126
Encumbrances at end of the year (1,019,447)
Net change in fund balance, budgetary basis $ 8,163,554
Deficit fund equity
Funds with deficit fund balance or net position are as follows:
Deficit Amount
Judicial Special Revenue Fund $ 106,650
The deficit in the Judicial Special Revenue Fund is the result of a reduction in revenue due to decreases in court costs, fines, and
penalties.
Note 3 – Cash, Cash Equivalents, and Investments
Cash and Investment Policies - State law limits the kinds of investments that Alabama municipalities can make to: (1) accounts
and certificates of deposits with banks or saving associations that are qualified public depositories; (2) direct obligations of the
U.S. Department of the Treasury and certain federal agencies (collectively referred in this note as USTO); (3) certain qualified
obligations of any state and its agencies; (4) common trust funds, collective investment funds maintained by qualified
institutions, or any registered mutual funds, all of which must hold a prescribed amount of obligations meeting the requirements
of 1 – 3 above; and (5) for post- employment benefit trusts, a broad investment portfolio is permitted, including government
and corporate bonds, and corporate stocks.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
40
Note 3 – Cash, Cash Equivalents, and Investments (continued)
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. The City’s investment policy also requires that
investments be placed in municipal funds as outlined within Section 11-81-21 of the Code of Alabama. Final maturities and
diversification by security type and financial institution are determined by the Finance Director with the approval of the Council
in accordance with policy guidelines.
Credit Risk - Financial institutions utilized as depositories by the City must provide evidence of its designation under the SAFE
Program. From time to time, the City may request that the depository provide evidence of its continuing designation as a
qualified public depository. The enactment of the SAFE program changed the way all Alabama public deposits are collateralized.
Each qualified public depository (“QPD”) is required to hold collateral for all its public depositories on a pooled basis in a custody
account established by the State Treasurer as SAFE administrator. In the unlikely event that a public entity should suffer a
deposit loss due to QPD insolvency or default, a claim form would be filed with the State Treasurer who would use the SAFE
pool collateral or other means to reimburse the loss. Since all of the City’s deposits are held by a QPD under the SAFE program,
its deposits are not subject to custodial credit risk.
Note 4 - Receivables
Management has concluded that realization losses on accounts receivable balances outstanding at year end will be immaterial.
Therefore, receivables as of year-end are considered fully collectible and are recorded at net realizable value. The following is
governmental fund receivables as of September 30,2022:
Governmental Funds
Gas Tax Judicial
Capital Special Special
General Projects Revenue Revenue
Fund Fund Fund Fund
Receivables:
Accounts $ 172,591 $ - $ - $ 104,538
Taxes 3,783,200 51,762 - -
Intergovernmental 9,673 508,531 94,212 -
$ 3,965,464 $ 560,293 $ 94,212 $ 104,538
The City utilizes the PWWB as the collection agent for wastewater and sanitation services. The City reports a receivable for the
September collections which are remitted from the PWWB in October each year. Therefore, there is no associated allowance
for the Wastewater Fund and Sanitation Fund receivables. The following is proprietary fund receivables as of
September 30, 2022:
Proprietary Funds
Internal
Wastewater Sanitation Service
Fund Fund Fund
Receivables:
Accounts $ 840,417 $ 242,492 $ 99,168
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
41
Note 5 – Capital Assets
Capital asset activity for the City’s governmental activities for the year ended September 30, 2022 was as follows:
Restated
Beginning Ending
Balances Increases Decreases Transfers Balances
Capital assets, not being depreciated:
Land $ 4,017,444 $ 1,522,250 $ - $ - $ 5,539,694
Construction in progress 8,772,352 6,752,880 22,025 (8,196,748) 7,306,459
Total capital assets, not being depreciated 12,789,796 8,275,130 22,025 (8,196,748) 12,846,153
Capital assets, being depreciated:
Buildings and improvements 14,607,905 1,305,236 1,445 718,019 16,629,715
Land improvements 6,003,231 189,234 - - 6,192,465
Vehicles 8,512,694 1,622,018 48,299 - 10,086,413
Office, nonoffice, and computer equipment 8,316,999 538,476 7,248 - 8,848,227
Infrastructure 72,219,628 14,575,000 - 7,478,729 94,273,357
Total capital assets, being depreciated 109,660,457 18,229,964 56,992 8,196,748 136,030,177
Less accumulated depreciation for:
Buildings and improvements 2,957,264 396,352 1,445 - 3,352,171
Land improvements 4,949,247 90,398 - - 5,039,645
Vehicles 6,305,099 858,225 48,299 - 7,115,025
Office, nonoffice, and computer equipment 5,021,233 595,545 6,100 - 5,610,678
Infrastructure 15,996,290 1,525,262 - - 17,521,552
Total accumulated depreciation 35,229,133 3,465,782 55,844 - 38,639,071
Total capital assets, being
depreciated, net 74,431,324 14,764,182 1,148 8,196,748 97,391,106
Governmental activities
capital assets, net $ 87,221,120 $ 23,039,312 $ 23,173 $ - $ 110,237,259
Beginning balance have been restated for blending the HPRA component unit (see note 20).
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
42
Note 5 – Capital Assets (continued)
Capital asset activity for the City’s business-type activities for the year ended September 30, 2022 was as follows:
Beginning Ending
Balances Increases Decreases Transfers Balances
Capital assets, not being depreciated:
Land $ 1,257,019 $ - $ - $ - $ 1,257,019
Construction in progress 4,123,630 1,786,048 - (3,151,375) 2,758,303
Total capital assets, not being depreciated 5,380,649 1,786,048 - (3,151,375) 4,015,322
Capital assets, being depreciated:
Buildings and improvements 6,802,032 - - - 6,802,032
Land improvements 3,555,242 - - - 3,555,242
Vehicles 3,484,710 628,919 111,830 - 4,001,799
Office, nonoffice, and computer equipment 1,528,402 35,977 5,000 - 1,559,379
Infrastructure 34,644,608 - - 3,151,375 37,795,983
Total capital assets, being depreciated 50,014,994 664,896 116,830 3,151,375 53,714,435
Less accumulated depreciation for:
Buildings and improvements 3,876,097 168,425 - - 4,044,522
Land improvements 2,625,499 123,496 - - 2,748,995
Vehicles 2,636,991 389,247 - - 3,026,238
Office, nonoffice, and computer equipment 938,637 88,581 5,000 - 1,022,218
Infrastructure 692,892 698,145 - - 1,391,037
Total accumulated depreciation 10,770,116 1,467,894 5,000 - 12,233,010
Total capital assets, being
depreciated, net 39,244,878 (802,998) 111,830 3,151,375 41,481,425
Business-type activities
capital assets, net $ 44,625,527 $ 983,050 $ 111,830 $ - $ 45,496,747
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
43
Note 5 – Capital Assets (continued)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government $ 1,643,430
Public works 546,325
Public safety 1,071,788
Cultural and recreational 204,239
Total depreciation expense - governmental activities $ 3,465,782
Business-Type Activities:
Wastewater $ 1,167,503
Sanitation 300,391
Total depreciation expense - business-type activities $ 1,467,894
Capital asset activity for the Library (a component unit) for the year ended September 30, 2022, was as follows:
Beginning Ending
Balances Increases Decreases Balances
Capital assets, being depreciated:
Equipment $ 120,747 $ - $ - $ 120,747
Less accumulated depreciation (101,602) (684) - (102,286)
Total capital assets, being
depreciated, net $ 19,145 $ (684) $ - $ 18,461
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
44
Note 5 – Capital Assets (continued)
Capital asset activity for the Authority (a component unit) for the year ended September 30, 2022 was as follows:
Beginning Ending
Balances Increases Decreases Balances
Capital assets, not being depreciated:
Land $ 3,374,336 $ - $ - $ 3,374,336
Capital assets, being depreciated:
Land improvements 1,657,265 - - 1,657,265
Runways 7,707,579 - - 7,707,579
Buildings and improvements 1,431,008 - - 1,431,008
Furniture and equipment 623,050 41,896 16,200 648,746
Total capital assets, being depreciated 11,418,902 41,896 16,200 11,444,598
Less accumulated depreciation for:
Land improvements 1,184,212 82,863 - 1,267,075
Runways 4,453,845 272,690 - 4,726,535
Buildings and improvements 686,441 33,289 - 719,730
Furniture and equipment 275,399 42,847 16,200 302,046
Total accumulated depreciation 6,599,897 431,689 16,200 7,015,386
Total capital assets, being
depreciated, net 4,819,005 (389,793) - 4,429,212
Total capital assets, net $ 8,193,341 $ (389,793) $ - $ 7,803,548
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
45
Note 6 – Long-Term Debt
Long-term debt activity for the fiscal year ended September 30, 2022 was as follows:
Restated Beginning Ending Due Within
Balances Additions Reductions Balances One Year
Governmental Activities
General obligation warrants $ - $ 13,120,000 $ - $ 13,120,000 $ 350,000
Debt issuance discounts - (223,233) - (223,233) -
Total general obligation warrants - 12,896,767 - 12,896,767 350,000
Warrants from direct placements 12,478,242 710,500 891,360 12,297,382 940,771
Notes from direct borrowings 4,783,162 - 230,893 4,552,269 237,828
Debt issuance discounts (44,847) - (5,420) (39,427) -
Limited obligation warrant 1,457,886 - 15,986 1,441,900 -
Total long-term debt 18,674,443 13,607,267 1,132,819 31,148,891 1,528,599
Compensated absences 1,439,126 753,964 719,153 1,473,937 451,009
Net pension liability 17,318,142 12,662,392 12,670,841 17,309,693 -
Total OPEB liability 4,014,633 188,541 914,436 3,288,738 -
Governmental activities long-term liabilities $ 41,446,344 $ 27,212,164 $ 15,437,249 $ 53,221,259 $ 1,979,608
Business-Type Activities
General obligation warrants $ 15,405,000 $ - $ 50,000 $ 15,355,000 $ 50,000
Debt issuance premiums 143,066 - 8,218 134,848 -
Total general obligation warrants 15,548,066 - 58,218 15,489,848 50,000
Warrants from direct placements 18,059,006 1,319,500 857,250 18,521,256 932,500
Total long-term debt 33,607,072 1,319,500 915,468 34,011,104 982,500
Compensated absences 275,114 459,105 506,037 228,182 113,959
Net pension liability 2,149,864 1,555,900 1,578,823 2,126,941 -
Business-type activities long-term liabilities $ 36,032,050 $ 3,334,505 $ 3,000,328 $ 36,366,227 $ 1,096,459
Beginning balances have been restated to recognized previous capital leases as financed purchases.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
46
Note 6 – Long-Term Debt (continued)
General obligation warrants - The City issues general obligation warrants, which are direct obligations and pledges of the full
faith and credit of the City, for the acquisition and construction of capital facilities and equipment and to refund other G.O.
warrants. The City has the following outstanding general obligation warrants as of September 30, 2022:
Governmental Activities
Interest
Description Par Amount Dated Maturity Rates Outstanding
G.O. Warrants 2022A $ 9,885,000 6/15/2022 6/1/2052 4.00-4.50% $ 9,885,000
G.O. Warrants 2022B 3,235,000 6/15/2022 6/1/2052 3.30-4.60% 3,235,000
$ 13,120,000 $ 13,120,000
Business-Type Activities
Interest
Description Par Amount Dated Maturity Rates Outstanding
G.O. Warrants 2017A $ 15,505,000 11/17/2017 11/1/2047 2.00-4.00% $ 15,355,000
Debt service requirements to maturity for general obligation warrants outstanding as of September 30, 2022 were as are as
follows:
Governmental Activities
Year Ending September 30, Principal Interest Total
2023 $ 350,000 $ 510,545 $ 860,545
2024 390,000 543,725 933,725
2025 400,000 529,685 929,685
2026 420,000 514,485 934,485
2027 435,000 497,685 932,685
2028-2032 1,410,000 2,281,738 3,691,738
2033-2037 1,740,000 1,958,288 3,698,288
2038-2042 2,125,000 1,576,568 3,701,568
2043-2047 2,605,000 1,089,456 3,694,456
2048-2052 3,245,000 450,225 3,695,225
$ 13,120,000 $ 9,952,400 $ 23,072,400
Business-Type Activities
Year Ending September 30, Principal Interest Total
2023 $ 50,000 $ 562,910 $ 612,910
2024 55,000 561,860 616,860
2025 55,000 560,678 615,678
2026 55,000 559,412 614,412
2027 55,000 558,148 613,148
2028-2032 305,000 2,767,032 3,072,032
2033-2037 355,000 2,716,000 3,071,000
2038-2042 5,180,000 2,276,320 7,456,320
2043-2047 7,565,000 978,175 8,543,175
2048-2052 1,680,000 29,400 1,709,400
$ 15,355,000 $ 11,569,935 $ 26,924,935
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
47
Note 6 – Long-Term Debt (continued)
Warrants and Notes from Direct Placements and Direct Borrowings - Warrants and notes from direct placements and direct
borrowings constitute general obligations of the City for the payments of which the full faith and credit of the City are irrevocably
pledged. The City has the following outstanding debt from direct placements as of September 30, 2022:
Governmental Activities
Original Interest
Description Amount Dated Maturity Rates Outstanding
Direct borrowing Financed purchase-HPRA $ 4,780,000 3/1/2016 3/1/2046 1.70-3.63% $ 4,085,000
Direct borrowing Financed purchase-FNB 195,464 6/20/2019 10/15/2023 0.00% 389,084
Direct borrowing Financed purchase-Zoll 726,905 10/10/2016 12/1/2026 2.69% 78,185
$ 5,702,369 $ 4,552,269
Direct placement 2016-CWSRF-DL $ 415,000 8/1/2016 2/15/2036 2.20% $ 310,000
Direct placement 2017-CWSRF-DL 240,000 4/1/2017 2/15/2038 2.20% 200,000
Direct placement 2018B-CWSRF-DL 315,000 11/1/2018 8/15/2038 2.20% 260,000
Direct placement 2020-CWSRF-DL 1,445,500 8/1/2020 2/15/2041 2.20% 1,358,244
Direct placement 2021-CWSRF-DL 315,000 3/15/2021 2/15/2041 2.20% 305,000
Direct placement 2022-CWSRF-DL 710,500 2/1/2022 2/15/2042 2.20% 710,500
Direct placement Truist Bank 3,200,000 7/30/2019 4/30/2029 3.01% 2,263,246
Direct placement Trustmark Bank 3,130,000 5/11/2020 9/1/2035 1.76% 2,712,664
Direct placement PNC 4,650,000 5/11/2020 12/1/2035 2.04% 4,177,728
$ 14,421,000 $ 12,297,382
Business-Type Activities
Interest
Description Amount Dated Maturity Rates Outstanding
Direct placement 2018A-CWSRF-DL $ 16,800,000 6/11/2018 2/15/2038 2.20% $ 14,595,000
Direct placement 2020-CWSRF-DL 2,684,500 8/1/2020 2/15/2041 2.20% 2,606,756
Direct placement 2022-CWSRF-DL 1,319,500 2/1/2022 2/15/2042 2.20% 1,319,500
$ 20,804,000 $ 18,521,256
The City has the following outstanding debt from direct borrowings as of September 30, 2022:
Debt Service requirements to maturity for the notes from direct borrowings outstanding as of September 30, 2022, were as
follows:
Governmental Activities
Year Ending September 30, Principal Interest Total
2023 $ 237,828 $ 132,797 $ 370,625
2024 239,814 128,498 368,312
2025 178,256 123,908 302,164
2026 209,857 119,115 328,972
2027 217,008 114,115 331,123
2028-2032 725,000 508,051 1,233,051
2033-2037 825,000 401,693 1,226,693
2038-2042 975,000 254,788 1,229,788
2043-2047 944,506 67,878 1,012,384
$ 4,552,269 $ 1,850,843 $ 6,403,112
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
48
Note 6 – Long-Term Debt (continued)
Governmental Activities
Year Ending September 30, Principal Interest Total
2023 $ 940,771 $ 259,211 $ 1,199,982
2024 959,325 240,501 1,199,826
2025 976,530 218,033 1,194,563
2026 992,398 195,132 1,187,530
2027 1,012,190 171,768 1,183,958
2028-2032 4,113,443 546,323 4,659,766
2033-2037 2,667,731 182,669 2,850,400
2038-2042 634,994 31,037 666,031
$ 12,297,382 $ 1,844,674 $ 14,142,056
Debt Service requirements to maturity for the notes from direct placements outstanding as of September 30, 2022, were as
follows:
Business-Type Activities
Year Ending September 30, Principal Interest Total
2023 $ 932,500 $ 390,433 $ 1,322,933
2024 954,000 375,809 1,329,809
2025 1,006,756 354,566 1,361,322
2026 992,250 332,901 1,325,151
2027 1,018,750 310,780 1,329,530
2028-2032 5,457,000 1,203,208 6,660,208
2033-2037 6,074,500 569,305 6,643,805
2038-2042 2,085,500 61,694 2,147,194
$ 18,521,256 $ 3,598,696 $ 22,119,952
The City’s general obligation warrants with the Alabama Water Pollution Control Authority (CWSRF) and the Alabama
Department of Environmental Management warrants 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.
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,
2022, the City had redeemed $152,589 of the outstanding warrants. The balance on the warrant at September 30, 2022 is
$1,441,900. 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 unit – Long-term liability activity for the Prattville Airport Authority for the year ended September 30, 2022 was as
follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Bond from direct placement $ 327,244 $ 35,000 $ 330,850 $ 31,394 $ 6,457
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
49
Note 6 – Long-Term Debt (continued)
The Prattville Airport Authority entered into a promissory note with Perry Brothers Aviation Fuels, LLC for the purpose of
purchasing a fuel truck. Principal and interest payments are due monthly beginning March 1, 2022. The note bears an interest
rate of 5.5% and matures on February 1, 2027. In the event of default, the outstanding balance becomes immediately due and
payable.
The annual requirements to amortize the bond from direct placement as of September 30, 2022 are as follows:
Year Ending September 30, Principal Interest Total
2023 $ 6,457 $ 1,565 $ 8,022
2024 6,821 1,201 8,022
2025 7,206 816 8,022
2026 7,612 410 8,022
2027 3,298 45 3,343
$ 31,394 $ 4,037 $ 35,431
Blended component unit - The Historic Prattville Redevelopment Authority (a blended component unit) issued Redevelopments
Bonds, Series 2016 in the amount of $4,780,000 for the purpose of renovating the public safety building. Principal and interest
payments are due monthly beginning March 1, 2017 and semiannual interest payments due each March 1 and September 1,
beginning September 1, 2016. Interest ranges from 1.70% to 3.625%; final payment is due March 1, 2046. Redevelopment bonds
of the Historic Prattville Redevelopment Authority are payable solely from payments received from the City. In accordance with
GASB Statement No. 88, the City has recorded this as a direct borrowing financed purchase due to transfer of ownership to the
City at the end of the term. The obligation of the City is a general obligation of the City.
Historic Prattville Redevelopment Authority
Year Ending September 30, Principal Interest Total
2023 $ 125,000 $ 122,314 $ 247,314
2024 125,000 120,001 245,001
2025 130,000 117,451 247,451
2026 130,000 114,754 244,754
2027 135,000 111,905 246,905
2028-2032 725,000 508,051 1,233,051
2033-2037 825,000 355,723 1,180,723
2038-2042 975,000 254,788 1,229,788
2043-2046 915,000 67,878 982,878
$ 4,085,000 $ 1,772,865 $ 5,857,865
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, 2022, the debt limit was $101,020,616 and the net debt applicable to the limit was $26,825,906.
Note 7 – Short-Term Debt
On July 1, 2022 and August 1, 2022, the City issued General Obligation Revenue Warrants, Series 2022B and 2022C, respectively.
Series 2022B was issued in the amount $1,000,000 to be used as a line of credit for short-term financing needs. Series 2022C
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 2.75%, with interest due monthly. The maturity dates are June 30, 2023 and July 31, 2023, respectively.
At September 30, 2022, the balances of the warrants were $0, resulting in unused lines of credit of $4,000,000. There was no
short-term debt activity for the year ended September 30, 2022.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
50
Note 8 - Leases
Lessor – Governmental Activities
The City is the lessor of property/land under a noncancelable lease for periods through 2030. The City receives a monthly
payment of $1,554, which include the principal and interest components of the payments. As the lease does not contain a
specific interest rate, the City has used its incremental borrowing rate of 4.60% as the discount rate for the lease. For the current
fiscal year, the City recognized $15,308 in lease revenue and $5,974 in interest revenue related to the lease. Also, the City has a
deferred inflow of resources associated with this lease that will be recognized over the lease term that ends on September 1,
2030. This deferred inflow of resources has a balance of $122,462 as of September 30, 2022.
The City is the lessor of property/land under a noncancelable lease for periods through 2044. The City receives monthly
payments ranging from $1,097 to $1,729, which include the principal and interest components of the payments. As the lease
does not contain a specific interest rate, the City has used its incremental borrowing rate of 4.60% as the discount rate for the
lease. For the current fiscal year, the City recognized $10,098 in lease revenue and $10,099 in interest revenue related to the
lease. Also, the City has a deferred inflow of resources associated with this lease that will be recognized over the lease term that
ends on January 5, 2044. This deferred inflow of resources has a balance of $215,419 as of September 30, 2022.
The schedule of future minimum payments as of September 30, 2022 is as follows:
Total
Year Ending September 30, Principal Interest Payment
2023 $ 16,715 $ 15,564 $ 32,279
2024 17,778 14,774 32,552
2025 18,896 13,933 32,829
2026 20,073 13,040 33,113
2027 21,311 12,092 33,403
2028-2032 88,551 45,708 134,259
2033-2037 55,075 31,653 86,728
2038-2042 81,177 16,157 97,334
2043-2044 26,620 881 27,501
$ 346,196 $ 163,802 $ 509,998
Note 9 – Interfund Balances
Interfund transactions are generally used to meet cash demands necessary to pay operating expenditures. Amounts due to/from
other funds 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 interfund balances.
The composition of interfund receivables and payables as of September 30, 2022 consisted of the following: Amount
Receivable Fund Payable Fund (Current)
General Fund Wastewater Fund $ 151,200
General Fund Sanitation Fund 103,730
General Fund Internal Service Fund 178
General Fund Judicial Special Revenue Fund 25,180
General Fund Capital Projects Fund 221,542
Capital Projects Fund General Fund 595,131
Total $ 1,096,961
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
51
Note 9 – Interfund Balances (continued)
The outstanding balances between funds result mainly from the time lag between the dates that transactions are recorded in
the accounting system and when payments between funds are made.
The following is a reconciliation of interfund receivables and payables in the government-wide statement of net position for the
year ended September 30, 2022: Interfund
Receivable From Payable To Balances
Business-Type Activities Governmental Activities $ 254,930
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 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.
The following is a schedule of interfund transfers for the year ended September 30, 2022:
Fund Transferred To Fund Transferred From Amount Principal Purpose
General Fund Capital Projects Fund $ 1,058,819 Transfer Revenue
General Fund Judicial Special Revenue Fund 2,531 Transfer Revenue
General Fund Debt Service Fund 1,952 Transfer Revenue
HPRA General Fund 767,720 Transfer Revenue
Capital Projects Fund General Fund 6,803,349 Project Costs
Debt Service Fund General Fund 659,131 Debt Service
Debt Service Fund Capital Projects Fund 631,118 Transfer Revenue
Judicial Special Revenue Fund General Fund 261,287 Transfer Revenue
Internal Service Fund General Fund 3,297,000 Self-Insurance
Internal Service Fund Judicial Special Revenue Fund 63,000 Self-Insurance
Internal Service Fund Wastewater Fund 252,500 Self-Insurance
Internal Service Fund Sanitation Fund 252,500 Self-Insurance
Total $ 14,050,907
The following is a reconciliation of interfund transfers in the government-wide statement of activities for the year ended
September 30, 2022: Transfer
Transferred To Transferred From Balance
Governmental Activities Business-Type Activities $ 505,000
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.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
52
Note 11 – Commitments
The City has a contractual commitment with the Autauga County Commission for the funding of the metro jail facility. The
contract provides for quarterly payments of 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 $607,363 during the fiscal
year ended September 30, 2022.
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 financed purchase arrangements on the property prove
not to be financially viable. The initial loan balance on the property totaled $252,200. The loan balance as of September 30,
2022 was $0.
As of September 30, 2022, commitments to contractors on capital projects were as follows:
Commitments $ 9,107,724
Spent-to-date 5,477,069
Remaining commitments $ 3,630,655
Note 12 – Pension Plan
Plan description - The Employees’ Retirement System of Alabama (the Plan or ERS), an agent multiple-employer public employee
retirement 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.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
53
Note 12 – Pension Plan (continued)
Benefits provided - State law establishes retirement benefits as well as death and disability benefits and any ad hoc increase in
postretirement benefits for the ERS. Benefits for ERS members vest after 10 years of creditable service. State employees who
retire after age 60 (52 for State Police) with 10 years or more of creditable service or with 25 years of service (regardless of age)
are entitled to an annual retirement benefit, payable monthly for life. Local employees who retire after age 60 with 10 years or
more of creditable service or with 25 or 30 years of service (regardless of age), depending on the particular entity’s election, are
entitled to an annual retirement benefit, payable monthly for life. Service and disability retirement benefits are based on a
guaranteed minimum or a formula method, with the member receiving payment under the method that yields the highest
monthly benefit. Under the formula method, members of the ERS (except State Police) are allowed 2.0125% of their average
final compensation (highest 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.
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. Pre-retirement death benefits
are calculated and paid to the beneficiary on the member’s age, service credit, employment status and eligibility for retirement.
Act 132 of the Legislature of 2019 allowed employers who participate in the ERS pursuant to Code of Alabama 1975, Section 36-
27-6 to provide Tier 1 retirement benefits to their Tier 2 members. Tier 2 members of employers adopting Act 2019-132 will
contribute 7.5% of earnable compensation for regular employees and 8.5% for firefighters and law enforcement officers. A total
of 590 employers adopted Act 2019-132. On March 11, 2021, the Prattville City Council approved the implementation of Act
2019-132, which provides Tier 1 retirement benefits to Tier 2 members.
Act 316 of the Legislature of 2019 allows employees at the time of retirement to receive a partial lump sum (PLOP) distribution
as a single payment not to exceed the sum of 24 months of the maximum monthly retirement allowance the member could
receive. This option may be selected in addition to the election of another retirement allowance option at a reduced amount
based upon the amount of partial lump sum distribution selected.
The ERS serves approximately 879 local participating employers. The ERS membership includes approximately 104,510
participants and the City’s membership includes 530 participants. As of September 30, 2021, membership consisted of:
ERS City
Retirees and beneficiaries currently receiving benefits 29,727 150
Terminated employees entitled to but not yet receiving benefits 2,130 6
Terminated employees not entitled to a benefit 16,415 42
Active members 56,184 332
Post-DROP retired members still in active service 54 -
Total 104,510 530
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
54
Note 12 – Pension Plan (continued)
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 7.50% 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 8.50% of earnable compensation. State Police of the ERS contribute 10% of
earnable compensation.
Employers participating in the ERS pursuant to Code of Alabama 1975, Section 36-27-6 were not required by statue to increase
covered member contribution rates but were provided the opportunity to do so through Act 2011-676. By adopting Act 2011-
676 Tier 1 regular members contribution rates increased from 5% to 7.5% of earnable compensation and Tier 1 firefighters and
law enforcement officers increased from 6% to 8.5% of earnable compensation. On March 11, 2021, the Prattville City Council
approved the implementation of Act 2011-676 in conjunction with the approval of Act 2019-132.
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, 2022, the City’s active employee contribution rate was 8.50% of covered employee
payroll, and the City’s average contribution rate to fund the normal and accrued liability costs was 8.81% of pensionable payroll.
The City’s contractually required contribution rate for the year ended September 30, 2022, was 8.81% of pensionable pay for
Tier 1 employees, and 7.70% of pensionable pay for Tier 2 employees. These required contribution rates are based upon the
actuarial valuation as of September 30, 2019, 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 $2,093,720 for the year ended September 30, 2022.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
55
Note 12 – Pension Plan (continued)
Net pension liability - The City of Prattville’s net pension liability was measured as of September 30, 2021 and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as September 30, 2020 rolled forward
to September 30, 2021 using standard roll-forward techniques as shown in the following table:
Actual Before Actual After Actual After
Expected Act 2019–132 Act 2019–132 2020 Study
(a) TPL as of September 30, 2020 $ 70,767,692 $ 74,447,787 $ 74,447,787 $ 77,611,275 (b) Discount rate 7.70% 7.70% 7.70% 7.45% (c) Entry age normal cost for the period October 1, 2020
–September 30, 2021 1,557,178 1,557,178 1,557,178 1,744,699 (d) Transfers among employers -
– 681,807 681,807 681,807 (e) Actual benefit payments and refunds for the period
October 1, 2020 – September 30, 2021 (4,081,361) (4,081,361) (4,081,361) (4,081,361) (f) TPL as of September 30, 2021
=[(a) x (1+(b))] + (c) + (d) + [(e) x (1+0.5 x (b))] $ 73,535,490 $ 78,180,759 $ 78,180,759 $ 81,586,430 13,853,206 (g) Difference between expected and actual $ 4,645,269 (h) Less liability transferred for immediate recognition 681,807 (i) Experience (gain)/loss = (g) – (h) $ 3,963,462
(j) Difference between actual TPL before/after Act 2019-132 $ -
(k) Difference between actual TPL before/after 2020 Study $ 3,405,671
Actuarial assumptions - The total pension liability in the September 30, 2020 actuarial valuation was determined using the
following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.50%
Salary increases 3.25% - 7.75%
Investment rate of return* 7.45%
*Net of pension plan investment expense, including inflation
Mortality rates were based on the Pub-2010 Below-Median Tables, projected generationally using the MP-2020 scale, which is
adjusted by 66-2/3% beginning with year 2019:
Group Membership Table Set Forward (+)/ Setback (-) Adjustment to Rates
Non-FLC Service Retirees General Healthy Below Median Male: +2, Female: +2 Male: 90% ages < 65,
96% ages >= 65 Female: 96%
all ages
FLC/State Police Service Retirees Public Safety Healthy Below
Median
Male: +1, Female: none None
Beneficiaries Contingent Survivor Below Median Male: +2, Female: +2 None
Non-FLC
Disabled Retirees
General Disability Male: +7, Female: +3 None
FLC/State Police Disabled Retirees Public Safety Disability Male: +7, Female: none None
The actuarial assumptions used in the September 30, 2020 valuation were based on the results of an actuarial experience study
for the period October 1, 2015 – September 30, 2020.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
56
Note 12 – Pension Plan (continued)
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
Target Expected Rate
Asset Class Allocation of Return*
Fixed Income 15.00% 2.80%
U.S. Large Stock 32.00% 8.00%
U.S Mid Stocks 9.00% 10.00%
U.S. Small Stocks 4.00% 11.00%
International Developed Market Stocks 12.00% 9.50%
International Emerging Market Stocks 3.00% 11.00%
Alternatives 10.00% 9.00%
Real Estate 10.00% 6.50%
Cash Equivalents 5.00% 1.50%
Total 100.00%
*Includes assumed rate of inflation of 2.00%.
Discount rate - The discount rate used to measure the total pension liability was the long-term rates of return, 7.45%. The
projection of cash flows used to determine the discount rates 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 rates
of return on pension plan investments were applied to all periods of projected benefit payments to determine the total pension
liability.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
57
Note 12 – Pension Plan (continued)
Changes in the net pension liability of the City - The changes in the components of the net pension liability of the City for the
year ended September 30, 2022, were as follows:
Total Pension Plan Fiduciary Net Pension
Liability (a) Net Position (b) Liability (a-b)
Balances at October 1, 2020 $ 70,767,692 $ 51,299,686 $ 19,468,006
Changes for the year:
Service cost 1,557,179 - 1,557,179
Interest 5,291,980 - 5,291,980
Changes of assumptions 3,405,671 - 3,405,671
Difference between expected &
actual experience 3,963,462 - 3,963,462
Contributions - employer - 1,767,487 (1,767,487)
Contributions - employee - 1,144,429 (1,144,429)
Net investment income - 11,337,748 (11,337,748)
Benefits paid & refunds of
employee contributions (4,081,361) (4,081,361) -
Administrative expense - - -
Transfers among employers 681,807 681,807 -
Net changes 10,818,738 10,850,110 (31,372)
Balances at September 30, 2021 $ 81,586,430 $ 62,149,796 $ 19,436,634
Sensitivity of the net pension liability to changes in the discount rate - The following presents the net pension liability of the City,
calculated using the discount rate of 7.45%, as well as what the City's net pension liability would be if it were calculated using a
discount rate that is 1-percentage-point lower (6.45%) or 1-percentage-point higher (8.45%) than the current rate:
Current
1% Decrease Discount Rate 1% Increase
(6.45%) (7.45%) (8.45%)
City’s net pension liability $ 29,598,471 $ 19,436,634 $ 10,974,371
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far
into the future, and actuarially determined amounts are subject to continual revision as results are compared to past
expectations and new estimates are made about the future. Actuarial calculations reflect a long-term perspective. Calculations
are based on the substantive plan in effect as of September 30, 2021 and the current sharing pattern of costs between employer
and employee.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
58
Note 12 – Pension Plan (continued)
Pension plan fiduciary net position - Detailed information about the pension plan’s fiduciary net position is available in the
separately issued RSA Annual Comprehensive Financial Report for the fiscal year ended September 30, 2021. The supporting
actuarial information is included in the GASB Statement No. 68 Report for the ERS prepared as of September 30, 2021. The
auditor’s report 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 http://www.rsa-al.gov/index.php/employers/financial-
reports/gasb-68-reports/.
Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions - For the year ended
September 30, 2022, the City recognized pension expense of $1,999,147. At September 30, 2022, the City reported deferred
outflows and inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual
experience $ 4,112,936 $ 714,282
Change of assumptions 3,577,415 -
Net difference between projected and actual
earnings on plan investments - 4,471,230
Employer contributions subsequent to
measurement date 2,093,720 -
Total $ 9,784,071 $ 5,185,512
City contributions subsequent to the measurement date of $2,093,720 are reported as deferred outflows of resources and will
be recognized as a reduction of the net pension liability in the year ending September 30, 2023. Other amounts reported as
deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as
follows:
Year ending September 30:
2023 $ 697,700
2024 495,841
2025 (259,431)
2026 (323,021)
2027 1,123,837
Thereafter 769,913
Total $ 2,504,839
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
59
Note 13 – Other Post-Employment Benefits (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. The employees are covered by the Retirement System of Alabama and must meet the eligibility
provisions adopted by resolution to receive retiree medical benefits. The earliest retirement eligibility provisions are as follows:
25 years of service at any age; or, age 60 and 10 years of service (called "Tier I members). Employees hired on and after January
1, 2013 (called "Tier II" members) are eligible to retire only after attainment of age 62 or later completion of 10 years of service.
Employees covered by benefit terms - At September 30, 2022, the following employees were covered by the benefit terms:
City
Active employees 340
inactive employees currently receiving benefit payments 21
361
Actuarial assumptions - The City’s total OPEB liability was determined by an actuarial valuation as of September 30, 2022, using
the following key actuarial assumptions and other inputs:
Inflation 2.50%
Salary increases, including wage inflation 3.25% - 6.00%
Healthcare Cost Rates 5.50% annually until 2030, then 4.50%
The discount rate used to measure the TOL was based upon the Bond Buyers' 20 Year General Obligation municipal bond index
as of September 30, 2022, the end of the applicable measurement period.
Mortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate.
The City reported a total OPEB liability of $3,288,738, using a measurement date as of September 30, 2022.
Balance at September 30, 2021 $ 4,014,633
Changes for the year:
Service cost 104,737
Interest 83,804
Differences between expected and actual experience (272,634)
Changes of assumptions (408,295)
Benefit payments (233,507)
Net changes (725,895)
Balance at September 30, 2022 $ 3,288,738
The City’s total OPEB liability was determined by an actuarial valuation as of September 30, 2022 with the actuary using standard
techniques to roll forward the liability to the measurement date. Changes of assumptions and other inputs reflect a change in
the discount rate from 2.15% in 2021 to 4.02% in 2022.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
60
Note 13 – Other Post-Employment Benefits (OPEB) (continued)
The remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan
election, etc.) used in the September 30, 2022 valuation were based on a review of recent plan experience done concurrently
with the September 30, 2022 valuation.
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
(3.02%) or 1-percentage-point higher (5.02%) than the current discount rate:
1% Decrease
(3.02%)
Discount Rate
(4.02%)
1% Increase
(5.02%)
City’s total OPEB liability $ 3,974,615 $ 3,288,738 $ 2,759,329
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 (4.50% decreasing to 3.50%) or 1-percentage-point higher (4.50% increasing to 5.50%) than the
current healthcare cost trend rates:
1% Decrease
Current
Discount
Rate 1% Increase
City’s total OPEB liability $ 2,825,923 $ 3,288,738 $ 3,893,785
OPEB expense and deferred outflows of resources and deferred inflows of resources related to OPEB - For the year ended
September 30, 2022, the City recognized OPEB expense of $301,626. At September 30, 2022, the City reported deferred
outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual
experience $ 388,552 $ 236,064
Change of assumptions 675,780 430,979
Total $ 1,064,332 $ 667,043
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in
OPEB expense as follows:
Year ending September 30:
2023 $ 113,084
2024 113,084
2025 113,084
2026 (6,450)
2027 (86,877)
Thereafter 151,364
Total $ 397,289
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
61
Note 14 – 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, 2022, 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.
Employee medical insurance - The City maintains the employees’ medical insurance fund (an internal service fund) to account
for and finance its uninsured risks of loss. Liabilities of the fund are reported when it is probable that a loss has occurred and
the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not
reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount, as it depends on many complex
factors. The estimate of the claims liability includes amounts for incremental claim adjustments related to specific claims and
other claim adjustments regardless of whether they are allocated to specific claims. Estimated recoveries are another
component of the claims liability estimate. An excess coverage insurance policy covers individual claims in excess of $125,000.
Changes in the balances of claims liabilities during the past two years are as follows:
2022 2021
Unpaid claims, beginning of fiscal year $ 205,500 $ 237,200
Incurred claims (including IBNRs) 3,326,425 4,141,995
Claim payments (3,334,925) (4,173,695)
Unpaid claims, ending $ 197,000 $ 205,500
Note 15 – Tax Abatements
The City, in conjunction with the Industrial Development Board of the City of Prattville and the Commercial Development
Authority of the City of Prattville, enters into economic development incentive agreements with entities that propose to locate
businesses within the City, or expand businesses within the City, which are expected to provide stimulus to the City’s economy.
These agreements provide for full or partial abatement of sales, use and/or property taxes, as well as other financial
commitments. Property taxes are abated through reductions of assessed values. Sales and use taxes are abated either through
exemptions granted on purchases for specified construction or equipment-purchase purposes or through tax rebate
arrangements. The agreements have limited terms of duration and/or maximum abatement thresholds.
As a result of these agreements the City expects to receive economic benefits including but not limited to increased revenue,
job creation and job retention. These incentive agreements require approval by the Mayor and City Council and are pursuant to
Chapter 54A of Title 11 of the Code of Alabama 1975, as amended and Chapter 9B of Title 40 of the Code of Alabama 1975, as
amended. Some agreements provide for the repayment to the City of abated amounts if the entity ceases to operate its business
for a certain length of time, fails to produce and maintain a certain level of employment or fails to complete construction within
a certain length of time.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
62
Note 15 – Tax Abatements (continued)
The City does not collect property taxes. The Revenue Commissioner of Autauga County and the Revenue Commissioner of
Elmore County are responsible for such collections for the areas of the City falling within their respective county.
Sales and use taxes abated – fiscal year 2022: $ 1,555,548
Sales and use taxes rebated – fiscal year 2022: $ 1,604,652
Property taxes abated – fiscal year 2022: $ 305,804
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 2022 totaled $3,580,821. 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 – Restatements
The City has determined that restatements to beginning net position of business-type activities in the Wastewater and
Sanitation Funds were necessary to recognize reimbursements owed from other funds in the cash pool which were expended
by the Wastewater and Sanitation funds, but no receivable was allocated. Beginning balances have been restated as follows:
Wastewater Sanitation Business-Type
Fund Fund Activities
Net position, as previously reported $ 15,714,039 $ 754,426 $ 16,468,465
Restatement for overstated expenses 40,301 40,301 80,602
Net position, as restated $ 15,754,340 $ 794,727 $ 16,549,067
Note 17 – Related Party Transactions
The City Council appoints members of the PWWB and the City utilizes the PWWB as the collection agent for sewer and sanitation
services. The City recognizes revenue for services when billed by the PWWB. The receivable from the PWWB for sewer and
sanitation collection fees at September 30, 2022 was $606,649.
Total collection fees retained by the PWWB for the services described above were $447,750 for the year ended September 30,
2022.
The City paid the PWWB for the use of fire hydrants. The amount paid to the PWWB was $7,708 for the year ended September
30, 2022.
The City appropriated $320,000 to the Library (a component unit) and $400,673 to the Airport Authority (a component unit)
during the fiscal year ended September 30, 2022. These appropriations made were for operating and capital subsidies.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2022
63
Note 18 – Funding Agreements
On September 1, 2006, the City entered into a funding agreement with the Cooperative District of the City of Prattville (the
“Cooperative”), a public corporation, simultaneously with the Cooperative’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 Cooperative. Pursuant to the funding agreement, the City will collect
and remit to First Commercial Bank, the trustee of the Cooperative’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.
In December 2008, the City 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.
Note 19 – Subsequent Events
In preparing these financial statements, the City has evaluated events and transactions for potential recognition or disclosure
through the date of the auditor’s report, which was the date the financial statements were available to be issued.
Note 20 – Change in Reporting Entity
During the annual evaluation of the potential component units for the City’s financial statements, it was determined the Historic
Prattville Redevelopment Authority qualified as a blended component unit of the City (see Note 1). Due to the change in the
relationship of the Historic Prattville Redevelopment Authority, the activity has been included in the City’s governmental funds
and in the City’s governmental activities. Thus, the beginning fund balance was increased by $194,213 and beginning net position
was increased by $604,932. This will be included in the reconciliation below.
Governmental
Funds
Governmental fund balance, beginning $ 24,475,319
Change in reporting entity 194,213
Restated governmental fund balance, beginning $ 24,669,532
Governmental
Activities
Governmental activities net position, beginning $ 74,769,051
Change in reporting entity 604,932
Restated governmental activities net position, beginning $ 75,373,983
Required Supplementary Information
City of Prattville, Alabama
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Last 10 Fiscal Years Ended September 30
64
2021 2020 2019 2018 2017 2016 2015 2014
Total pension liability
Service cost $ 1,557,179 $ 1,290,908 $ 1,310,711 $ 1,284,302 $ 1,313,612 $ 1,252,658 $ 1,212,096 $ 1,171,241
Interest 5,291,980 5,012,833 4,795,699 4,707,021 4,429,332 4,058,682 3,888,707 3,680,319
Changes in benefit terms - -
Differences between actual & expected experience 3,963,462 1,151,805 227,237 (1,581,197) 870,621 832,419 (581,675) -
Changes of assumptions 3,405,671 282,503 - 352,614 - 2,954,211 - -
Benefit payments, including refunds of employee contributions (4,081,361) (3,809,446) (3,416,753) (2,996,078) (2,816,326) (2,473,697) (2,315,181) (2,178,239)
Transfers among employers 681,807 (167,361) 99,369 (10,272) (124,282) (33,807) - -
Net change in total pension liability 10,818,738 3,761,242 3,016,263 1,756,390 3,672,957 6,590,466 2,203,947 2,673,321
Total pension liability - beginning 70,767,692 67,006,450 63,990,187 62,233,797 58,560,840 51,970,374 49,766,427 47,093,106
Total pension liability - ending (a) 81,586,430 70,767,692 67,006,450 63,990,187 62,233,797 58,560,840 51,970,374 49,766,427
Plan fiduciary net position
Contributions - employer 1,767,487 1,567,593 1,472,118 1,343,080 1,243,058 1,381,338 1,209,263 1,157,444
Contributions - employee 1,144,429 1,118,799 901,330 880,032 859,821 902,821 806,208 755,114
Net investment income 11,337,748 2,807,829 1,258,126 4,223,503 5,272,028 3,854,740 447,754 4,089,766
Benefit payments, including refunds
of employee contributions (4,081,361) (3,809,446) (3,416,753) (2,996,078) (2,816,326) (2,473,697) (2,315,181) (2,178,239)
Transfers among employees 681,807 (167,361) 99,369 (10,271) (124,282) (33,807) (153,992) (148,504)
Net change in plan fiduciary net position 10,850,110 1,517,414 314,190 3,440,266 4,434,299 3,631,395 (5,948) 3,675,581
Plan fiduciary net position - beginning 51,299,686 49,782,272 49,468,082 46,027,816 41,593,517 37,962,122 37,968,070 34,292,489
Plan fiduciary net position - ending (b) 62,149,796 51,299,686 49,782,272 49,468,082 46,027,816 41,593,517 37,962,122 37,968,070
Net pension liability (asset) - ending (a) - (b) $ 19,436,634 $ 19,468,006 $ 17,224,178 $ 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 76.18% 72.49% 74.29% 77.31% 73.96% 71.03% 73.05% 76.29%
Covered-employee payroll $ 17,371,706 $ 16,637,399 $ 15,254,334 $ 14,978,179 $ 14,565,066 $ 15,059,971 $ 14,118,970 $ 13,328,666
Net pension liability as a percentage of covered payroll 111.89% 117.01% 112.91% 96.96% 111.27% 112.67% 99.22% 88.52%
Notes to the Schedule:
The schedule will present 10 years of information once it is accumulated.
City of Prattville, Alabama
Required Supplementary Information
Schedule of Employer Contributions
Last 10 Fiscal Years Ended September 30
65
2022 2021 2020
2019 2018 2017 2016 2015
Actuarially determined contribution $ 2,093,720 $ 1,828,406 $ 1,628,972 $ 1,528,265 $ 1,331,931 $ 1,296,995 $ 1,436,237 $ 1,258,700
Contributions in relation to the actuarially
determined contribution 2,093,720 1,828,406 1,628,972 1,528,265 1,331,931 1,296,995 1,436,237 1,258,700
Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ -
Covered-employee payroll $ 19,209,703 $ 17,371,706 $ 16,637,399 $ 15,254,334 $ 14,978,179 $14,565,066 $ 15,059,971 $14,118,970
Contributions as a percentage of
covered payroll 10.90% 10.53% 9.79% 10.02% 8.89% 8.90% 9.54% 8.91%
Notes to Schedule: The schedule will present 10 years of information once it is accumulated.
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 2022 were based on September 30, 2019 actuarial valuation.
Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age
Amortization method Level percent
closed Remaining amortization period 24.5 years
Asset valuation method Five-year smoothed market
Inflation 2.75% Salary increases 3.25 - 5.00%, including inflation
Investment rate of return 7.70%, net of pension plan investment expense, including
inflation
City of Prattville, Alabama
Required Supplementary Information
Schedule of Changes in Total OPEB Liability and Related Ratios
Last 10 Fiscal Years Ended September 30
66
2022 2021 2020 2019 2018
Total OPEB liability
Service cost $ 104,737 $ 110,550 $ 98,274 $ 55,465 $ 60,832
Interest 83,804 76,196 73,522 92,566 81,711
Difference between actual and expected experience (272,634) 217,312 331,826 106,044 (12,564)
Change of assumptions (408,295) 265,248 385,378 417,628 (128,538)
Benefit payments (233,507) (204,907) (205,502) (38,938) (36,908)
Net change in total OPEB liability (725,895) 464,399 683,498 632,765 (35,467)
Total OPEB liability - beginning 4,014,633 3,550,234 2,866,736 2,233,971 2,269,438
Total OPEB liability - ending $ 3,288,738 $ 4,014,633 $ 3,550,234 $ 2,866,736 $ 2,233,971
Covered-employee payroll $ 17,752,762 $ 16,453,345 $ 15,820,524 $ 15,115,616 $ 14,534,246
Total OPEB liability as a percentage of covered payroll 18.53% 24.40% 22.44% 18.97% 15.37%
Notes to Schedule:
The discount rate changed from 2.15% as of September 30, 2021 to 4.02% as of September 30, 2022. There are no assets accumulated in a GASB compliant trust.
The schedule will present 10 years of information once it is accumulated.
Other Supplementary Information
City of Prattville, Alabama
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget to Actual
Capital Projects Fund
For the Year Ended September 30, 2022
67
Variance with
Final Budget
Budgeted Amounts Actual Amounts Positive
Original Final Budgetary Basis (Negative)
Revenues
Lodging taxes $ 465,000 $ 465,000 $ 604,577 $ 139,577
Intergovernmental revenues 3,239,300 3,455,300 1,262,837 (2,192,463)
Interest income 5,500 5,500 37,993 32,493
Total revenues 3,709,800 3,925,800 1,905,407 (2,020,393)
Expenditures
General government
Appropriations - 2,600,000 2,600,000 -
Public works
General public works - - 54,386 (54,386)
Capital outlay 6,874,000 10,874,226 5,704,147 5,170,079
Debt service
Interest and fiscal charges - 111,167 173,514 (62,347)
Total expenditures 6,874,000 13,585,393 8,532,047 5,053,346
Deficiency of revenues over expenditures (3,164,200) (9,659,593) (6,626,640) 3,032,953
Other financing sources (uses) Issuance of long-term debt 800,000 14,191,532 13,830,500 (361,032)
Discount on debt issuance - - (223,233) (223,233)
Transfers in - 5,283,234 6,803,349 1,520,115
Transfers out (644,335) (674,785) (1,689,937) (1,015,152)
Total other financing sources (uses) 155,665 18,799,981 18,720,679 (79,302)
Net change in fund balance $ (3,008,535) $ 9,140,388 12,094,039 $ 2,953,651
Adjustment for reconciling items to adjust from
budgetary basis to modified accrual basis
Change in encumbrances (263,882)
Net change in fund balance, modified accrual basis 11,830,157
Fund balance – beginning 4,605,030
Fund balance – ending $ 16,435,187
City of Prattville, Alabama
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget to Actual -
Debt Service Fund
For the Year Ended September 30, 2022
68
Variance with
Final Budget
Budgeted Amounts Actual Amounts Positive
Original Final Budgetary Basis (Negative)
EXPENDITURES
Debt service
Interest and fiscal charges $ 287,612 $ 287,612 $ 287,996 $ (384)
Principal payments 1,028,853 1,028,853 1,002,253 26,600
Total expenditures 1,316,465 1,316,465 1,290,249 26,216
Deficiency of revenues under expenditures (1,316,465) (1,316,465) (1,290,249) 26,216
OTHER FINANCING SOURCES
Transfers in 1,316,465 1,316,465 1,290,249 (26,216)
Transfers out - - (1,952) (1,952)
Total other financing sources 1,316,465 1,316,465 1,288,297 (28,168)
Net change in fund balances $ - $ - (1,952) $ (1,952)
Net change in fund balances, modified accrual basis (1,952)
Fund balance – beginning 1,952
Fund balance – ending $ -
City of Prattville, Alabama
Notes to Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget to Actual
For the Year Ended September 30, 2022
69
Budgets and budgetary accounting - The budget is adopted annually at the beginning of each fiscal year for the Capital Projects
Fund and Debt Service 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 2022, public works expenditures exceeded appropriations in the Capital Projects Fund
due to under budgeted contract services. Debt service expenditures exceeded appropriations in the Capital Projects Fund due
to under budgeted debt issuance costs.
Appropriations lapse at the end of the fiscal year unless expended or encumbered. Encumbered appropriations are carried
forward. Encumbrances (e.g., purchase orders, contracts) outstanding at year end are reported as assigned fund balance and do
not constitute expenditures or liabilities of the fund.
Budgets for the above-mentioned funds are adopted on a basis other than accounting principles generally accepted in the United
States of America (GAAP) insofar as encumbrances are included with expenditures. Reconciliation of expenditures reported in
accordance with GAAP and those presented in accordance with the non-GAAP budgetary basis are noted below.
Capital Projects
Fund
Net change in fund balance, modified accrual basis $ 11,830,157
Encumbrances at beginning of the year 265,878
Encumbrances at end of the year (1,996)
Net change in fund balance, budgetary basis $ 12,094,039
Statistical Section
70
Statistical Section
This part of the City of Prattville, Alabama’s annual comprehensive financial report presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, required supplementary information, and
supplementary information says about the City's overall financial health.
Page
Financial Trends ................................................................................................................................................................ 71-75
These schedules contain trend information to help the reader understand how the City's financial performance
and well-being have changed over time.
Revenue Capacity .............................................................................................................................................................. 76-79
These schedules contain information to help the reader assess the City's most significant local revenue
sources.
Debt Capacity .................................................................................................................................................................... 80-83
These schedules present information to help the reader assess the affordability of the City's current levels of
outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information ........................................................................................................................... 84-85
These schedules offer demographic and economic indicators to help the reader understand the environment
within which the City's financial activities take place.
Operating Information ....................................................................................................................................................... 86-88
These schedules contain service and infrastructure data to help the reader understand how the information
in the City's financial report 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 annual comprehensive financial
reports.
City of Prattville, Alabama
Schedule 1
Net Position by Component
(accrual basis of accounting)
71
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Governmental activities
Net investment in capital assets $ 36,021,544 $ 36,578,653 $ 39,468,399 $ 43,629,725 $ 50,777,504 $ 56,746,210 $ 61,250,307 $ 64,770,445 $ 70,713,645 $ 90,286,177
Restricted 901,190 975,467 1,568,412 1,800,916 1,756,318 1,345,927 1,679,172 3,949,053 2,848,900 2,660,542
Unrestricted (30,215,385) (24,140,154) (28,898,955) (24,934,891) (22,656,464) (17,754,839) (11,293,458) (5,304,442) 1,811,438 12,143,834
Total governmental activities net position
$ 6,707,349 $ 13,413,966 $ 12,137,856 $ 20,495,750 $ 29,877,358 $ 40,337,298 $ 51,636,021 $ 63,415,056 $ 75,373,983 $ 105,090,553
Business-type activities
Net investment in capital assets $ 4,236,099 $ 4,402,643 $ 6,384,146 $ 7,367,599 $ 9,544,408 $ 8,171,026 $ 9,330,909 $ 10,553,041 $ 12,513,145 $ 12,516,514
Unrestricted 2,446,415 3,281,842 838,425 666,650 1,767 2,399,394 3,299,714 4,077,092 4,035,922 5,587,678
Total business-type activities net position
$ 6,682,514 $ 7,684,485 $ 7,222,571 $ 8,034,249 $ 9,546,175 $ 10,570,420 $ 12,630,623 $ 14,630,133 $ 16,549,067 $ 18,104,192
Primary government
Net investment in capital assets $ 40,257,643 $ 40,981,296 $ 45,852,545 $ 50,997,324 $ 60,321,912 $ 64,917,236 $ 70,581,216 $ 75,323,486 $ 83,226,790 $ 102,802,691
Restricted 901,190 975,467 1,568,412 1,800,916 1,756,318 1,345,927 1,679,172 3,949,053 2,848,900 2,660,542
Unrestricted (27,768,970) (20,858,312) (28,060,530) (24,268,241) (22,654,697) (15,355,445) (7,993,744) (1,227,350) 5,847,360 17,731,512
Total primary government activities net position
$ 13,389,863 $ 21,098,451 $ 19,360,427 $ 28,529,999 $ 39,423,533 $ 50,907,718 $ 64,266,644 $ 78,045,189 $ 91,923,050 $ 123,194,745
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.
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 2022 have not been retroactively restated for the impact of Statement No. 87 of the Governmental Accounting Standards Board, Leases
City of Prattville, Alabama
Schedule 2
Changes in Net Position
(accrual basis of accounting)
72
Governmental activities 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Expenses
Governmental activities
General government $ 6,649,800 $ 7,250,279 $ 7,619,638 $ 8,280,428 $ 8,592,901 $ 8,677,745 $ 9,675,034 $ 9,533,096 $ 11,667,746 $ 13,786,258
Public safety 14,115,911 14,094,661 15,125,945 16,385,499 16,801,682 16,611,555 16,509,683 18,361,213 19,266,236 21,163,072
Public works 3,703,761 5,180,698 6,019,336 6,451,296 5,288,183 5,872,825 6,719,792 6,930,579 6,769,825 7,680,139
Cultural and recreational 1,830,376 1,980,775 2,021,877 2,204,798 2,096,394 2,314,090 2,872,314 3,068,326 3,339,664 3,991,343
Economic development - - - - - 1,828,093 - - - -
Interest on long-term debt 1,971,907 1,727,232 917,762 943,460 853,853 589,467 565,292 591,323 982,040 754,894
Total governmental activities expenses 28,271,755 30,233,645 31,704,558 34,265,481 33,633,013 35,893,775 36,342,115 38,484,537 42,025,511 47,375,706
Program revenues
Governmental activities
Charges for services
General government 5,525,847 5,499,156 5,973,943 5,971,164 5,942,996 6,238,858 6,219,359 7,115,222 7,481,888 9,186,255
Public safety 1,661,549 1,709,921 1,411,107 1,104,211 1,276,310 1,537,335 1,643,355 924,914 1,076,420 1,189,379
Cultural and recreational 209,031 251,562 257,548 289,834 296,242 306,400 494,584 393,829 614,175 895,941
Operating grants and contributions 224,060 71,025 17,820 135,291 31,943 231,359 219,891 1,869,454 2,855,387 2,654,166
Capital grants and contributions 4,641,690 1,417,033 3,953,219 4,596,515 4,581,613 4,226,472 4,814,309 4,218,796 799,992 16,052,408
Total governmental activities program revenues 12,262,177 8,948,697 11,613,637 12,097,015 12,129,104 12,540,424 13,391,498 14,522,215 12,827,862 29,978,149
Total primary government net expense (16,009,578) (21,284,948) (20,090,921) (22,168,466) (21,503,909) (23,353,351) (22,950,617) (23,962,322) (29,197,649) (17,397,557)
General revenues and other changes in net position
Governmental activities
Sales and use taxes 20,602,498 21,221,765 22,112,831 23,261,064 23,336,649 24,496,182 26,195,592 27,588,603 32,422,803 35,616,715
Real and personal property taxes 2,651,051 2,690,055 2,614,090 2,812,535 2,796,943 2,903,635 2,683,078 3,058,007 3,280,632 3,405,722
Lodging taxes 1,201,424 1,647,626 1,804,447 1,898,959 2,028,437 2,288,773 2,476,053 1,970,330 2,380,696 3,558,414
Local gasoline taxes 906,939 941,261 970,304 1,015,531 1,034,599 1,070,850 1,175,500 1,023,810 1,144,666 1,131,901
Alcoholic beverage taxes 311,045 408,900 273,579 356,953 378,800 374,545 390,690 416,068 478,991 509,160
Rental taxes 315,191 346,089 377,964 388,975 378,341 393,905 484,343 406,811 460,804 527,524
Tobacco taxes 142,723 134,656 136,220 121,636 117,974 140,400 126,962 126,449 120,463 112,831
Excise taxes 70,817 65,949 79,780 77,436 175,042 146,943 222,161 - - -
Unrestricted shared revenues - - - - - - - 453,074 496,879 1,080,208
Investment earnings 69,467 164,964 62,586 93,022 94,168 79,558 90,186 130,579 56,800 135,391
Miscellaneous revenue 625,501 359,099 460,002 500,249 491,229 602,010 366,270 436,520 1,066,548 497,773
Gain (loss) on disposal of assets - 54,747 36,300 3,320 - (46,495) 177,306 62,244 33,488
Transfers (200,000) - - - 50,015 - 85,000 81,247 (814,950) 505,000
Total governmental activities general revenues
and other changes in net position 26,696,656 28,035,111 28,928,103 30,526,360 30,885,517 32,496,801 34,249,340 35,868,804 41,156,576 47,114,127
Total governmental activities change in net position $ 10,687,078 $ 6,750,163 $ 8,837,182 $ 8,357,894 $ 9,381,608 $ 9,143,450 $ 11,298,723 $ 11,906,482 $ 11,958,927 $ 29,716,570
City of Prattville, Alabama
Schedule 2
Changes in Net Position
(accrual basis of accounting)
73
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Business-type activities
Expenses
Sanitation $ 2,770,077 $ 2,763,675 $ 2,852,233 $ 2,869,892 $ 2,826,180 $ 3,989,631 $ 4,193,126 $ 4,494,416 $ 5,212,704 $ 5,554,371
Wastewater 2,230,497 2,463,315 2,539,325 2,886,650 3,019,998 2,994,426 2,789,159 2,471,008 3,032,017 3,018,636
Total business-type activities expenses 5,000,574 5,226,990 5,391,558 5,756,542 5,846,178 6,984,057 6,982,285 6,965,424 8,244,721 8,573,007
Revenues
Charges for services
Sanitation 3,851,668 3,729,267 3,911,891 3,994,729 4,506,215 5,008,762 5,448,276 6,000,746 6,360,143 7,040,907
Wastewater 2,447,844 2,452,098 2,457,400 2,550,392 2,601,138 2,644,530 2,753,354 2,798,298 2,982,123 3,302,223
Operating grants and contributions
Wastewater - - - - - - - 873 - -
Capital grants and contributions
Wastewater 30,401 - - - - 224,640 805,763 - - -
Total business-type activities revenues 6,329,913 6,181,365 6,369,291 6,545,121 7,107,353 7,877,932 9,007,393 8,799,917 9,342,266 10,343,130
Total business-type activities net program revenue 1,329,339 954,375 977,733 788,579 1,261,175 893,875 2,025,108 1,834,493 1,097,545 1,770,123
Other changes in net position
Investment earnings - - - - - 99,721 79,095 24,673 6,439 6,557
Miscellaneous revenue 3,448 5,055 4,382 4,852 7,760 27,261 - 4,097 - 281,154
Gain (loss) on disposal of assets - - 42,306 18,247 293,006 3,388 41,000 217,494 - 2,291
Transfers 200,000 - - - (50,015) - (85,000) (81,247) 814,950 (505,000)
Total business-type activities other changes in net position 203,448 5,055 46,688 23,099 250,751 130,370 35,095 165,017 821,389 (214,998)
Total business-type activities change in net position $ 1,532,787 $ 959,430 $ 1,024,421 $ 811,678 $ 1,511,926 $ 1,024,245 $ 2,060,203 $ 1,999,510 $ 1,918,934 $ 1,555,125
Total primary government change in net position $ 12,219,865 $ 7,709,593 $ 9,861,603 $ 9,169,572 $10,893,534 $ 10,167,695 $13,358,926 $13,905,992 $ 14,077,691 $31,055,236
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.
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 2022 have not been retroactively restated for the impact of Statement No. 87 of the Governmental Accounting Standards Board, Leases
City of Prattville, Alabama
Schedule 3
Fund Balances of Governmental Funds
(modified accrual basis of accounting)
74
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General fund
Nonspendable $ 102,322 $ 114,704 $ 136,566 $ 166,583 $ 146,829 $ 145,829 $ 900,379 $ 741,470 $ 133,803 $ 166,053
Restricted 280,424 348,192 517,624 619,222 806,185 402,981 603,026 1,005,025 1,227,653 1,377,181
Committed 3,381,590 4,555,104 4,567,189 6,115,868 6,253,712 4,168,004 3,634,602 7,195,582 609,412 6,063,720
Assigned 261,383 468,838 792,720 822,832 1,184,299 1,793,517 999,672 1,559,260 5,072,532 2,776,878
Unassigned 3,053,554 5,643,011 6,555,450 7,056,740 7,713,688 9,487,554 10,022,167 10,836,477 12,382,273 15,409,716
Total general fund $ 7,079,273 $ 11,129,849 $ 12,569,549 $ 14,781,245 $ 16,104,713 $ 15,997,885 $ 16,159,846 $ 21,337,814 $ 19,425,673 $ 25,793,548
All other governmental funds
Nonspendable $ - $ 2,299 $ 377 $ 283 $ 254 $ 169 $ 288 $ 188 $ 230 $ 124
Restricted 620,766 670,828 1,050,795 1,181,744 729,012 946,556 1,076,146 2,944,028 1,621,247 13,918,609
Committed 20,573 305,771 601,804 913,792 200,806 104,129 460,313 452,076 390,510 388,716
Assigned 503,290 801,506 2,554,059 3,449,408 3,367,433 1,089,122 1,090,179 1,280,269 3,080,828 3,411,223
Unassigned 1 - - (14,167) (44,029) - - (27,297) (43,169) (106,774)
Total all other governmental funds $ 1,144,630 $ 1,780,404 $ 4,207,035 $ 5,531,060 $ 4,253,476 $ 2,139,976 $ 2,626,926 $ 4,649,264 $ 5,049,646 $ 17,611,898
City of Prattville, Alabama
Schedule 4
Changes in Fund Balances of Governmental Funds
(modified accrual basis of accounting)
75
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenues
Taxes $ 26,201,688 $ 27,456,301 $ 28,369,215 $ 29,933,089 $ 30,246,785 $31,815,233 $ 33,754,379 $34,590,078 $ 40,289,055 $44,862,267
Licenses and permits 5,525,847 5,499,156 5,973,943 5,971,164 5,942,996 6,238,858 6,219,359 6,437,271 6,709,219 7,206,251
Intergovernmental revenues 1,103,096 1,428,058 2,220,039 1,461,037 1,131,325 1,414,775 3,617,042 3,221,766 7,249,609 815,011
Charges and fees for services 1,284,750 1,392,556 1,077,656 875,957 945,962 1,030,643 1,203,582 1,191,216 1,563,819 1,929,844
Fines and forfeitures 630,728 614,714 590,999 518,090 626,590 813,092 934,357 805,478 899,445 5,088,919
Investment earnings 67,371 164,250 62,162 92,888 94,079 79,384 90,001 130,450 56,653 135,235
Miscellaneous revenues 1,030,355 356,984 422,314 386,370 378,870 275,290 286,797 145,736 275,066 497,773
Total revenues 35,843,835 36,912,019 38,716,328 39,238,595 39,366,607 41,667,275 46,105,517 46,521,995 57,042,866 60,535,300
Expenditures
Current:
General governmental 5,039,571 5,931,830 5,875,170 6,178,913 6,353,357 6,662,283 7,572,226 7,288,457 9,344,470 11,569,088
Public safety 11,852,136 11,731,292 12,413,193 13,352,908 13,436,701 13,437,695 13,523,445 14,762,262 15,541,200 17,629,906
Public works 3,210,261 4,184,523 6,068,130 6,864,620 4,221,491 4,817,045 5,654,222 5,724,473 5,502,458 5,860,834
Cultural and recreation 1,436,057 1,565,707 1,627,648 1,904,284 1,825,309 2,042,279 2,572,479 2,683,320 2,955,058 3,426,748
Economic development - - - - - 1,828,093 - - - -
Capital outlay 1,769,645 1,709,945 1,267,128 1,653,020 5,252,535 3,535,892 9,316,213 6,391,293 10,624,487 11,892,593
Debt service
Principal payments 4,011,121 2,941,830 4,548,721 2,988,986 5,182,594 7,778,395 6,916,637 3,422,491 14,734,983 1,138,239
Interest and fiscal charges 2,165,133 1,750,499 1,192,171 1,209,120 1,099,060 911,226 750,908 623,270 993,009 412,392
Bond issuance costs 83,464 93,782 139,216 - - - 27,000 13,500 24,500 173,514
Total expenditures 29,567,388 29,909,408 33,131,377 34,151,851 37,371,047 41,012,908 46,333,130 40,909,066 59,720,165 52,103,314
Excess of revenues over (under) expenditures 6,276,447 7,002,611 5,584,951 5,086,744 1,995,560 654,367 (227,613) 5,612,929 (2,677,299) 8,431,986
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 43,913 290,137 109,834 56,661
Transfers in 5,215,833 4,896,087 7,642,691 5,605,437 6,823,288 9,793,872 8,714,200 5,620,582 16,696,376 10,185,907
Transfers out (9,361,585) (7,064,464) (9,884,991) (8,377,837) (9,893,134) (12,846,372) (11,655,204) (8,869,336) (20,605,670) (13,545,907)
Issuance of long-term debt - - - 825,000 240,000 - 3,515,000 4,545,994 4,965,000 13,830,500
Issuance of refunding bonds 9,815,000 9,955,000 12,280,000 - - - - - - -
Proceeds from capital lease - - - 258,310 726,905 - 195,464 - - -
Payment to refunded bonds escrow agent (9,434,619) (10,067,843) (13,445,879) - - - - - - -
Bond premium (discount) (90,999) 206,625 1,305,095 - - - - - - (223,233)
Total other financing sources (uses) (3,856,370) (2,074,595) (2,018,620) (1,551,023) (1,949,676) (2,875,230) 877,061 1,587,377 1,165,540 10,303,928
Net change in fund balance $ 2,420,077 $ 4,928,016 $ 3,566,331 $ 3,535,721 $ 45,884 $(2,220,863) $ 649,448 $ 7,200,306 $ (1,511,759) $18,735,914
Debt service as a percentage of noncapital expenditures 22.37% 16.70% 18.70% 13.58% 19.56% 23.19% 20.71% 11.76% 32.09% 3.42%
City of Prattville, Alabama
Schedule 5
Net Taxable Sales by Category
76
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Apparel stores $ 78,722,449 $ 78,062,472 $ 81,324,939 $ 83,018,889 $ 79,853,655 $ 78,935,483 $ 80,355,585 $ 75,191,518 $ 88,142,154 $ 89,722,165
Food stores 77,168,242 80,331,913 83,355,426 84,503,834 85,828,743 85,742,536 94,239,183 107,465,358 108,929,609 119,819,188
Automotive 68,449,774 72,277,636 97,027,886 108,971,570 114,691,542 123,070,580 120,718,622 131,555,912 166,304,094 175,597,864
Manufacturing machine 2,025,097 16,665,875 6,477,693 3,872,261 3,774,408 3,387,747 2,428,539 3,560,793 8,934,215 14,814,295
Restaurants 83,073,365 99,976,397 104,080,558 107,071,561 112,935,379 111,626,351 118,488,337 113,172,363 140,189,393 147,225,583
Home furnishings and appliances 16,256,815 15,752,779 16,854,830 17,716,288 16,190,266 16,581,833 15,700,675 4,648,683 4,333,113 8,202,305
Building materials 42,467,529 42,313,771 45,417,305 49,249,400 55,631,517 53,463,408 55,650,242 68,816,166 80,144,285 82,840,373
Service stations 19,967,285 17,757,144 17,840,129 18,850,543 19,178,452 20,140,152 22,612,745 24,584,319 25,513,187 27,563,774
Other retail stores 259,689,798 256,775,123 266,688,466 287,794,171 280,178,657 315,093,693 343,652,800 374,810,657 453,441,857 504,590,112
Totals $ 647,820,354 $ 679,913,110 $ 719,067,232 $ 761,048,517 $ 768,262,619 $ 808,041,783 $ 853,846,728 $ 903,805,769 $1,075,931,907 $1,170,375,659
City direct sales tax rate 3.50% 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 6
Sales Tax Revenue Payers by Category
77
2020 2021 2022
Percent of Percent of Percent of
Number Percentage Tax Remitted Number Percentage Tax Remitted Number Percentage Tax Remitted
of Tax of Total Tax by Top 10 of Tax of Total
Tax by Top 10 of Tax of Total Tax by Top 10
Filers Liability Liability Taxpayers Filers Liability Liability Taxpayers Filers Liability Liability Taxpayers
Apparel stores 18 $2,631,703 9.54% 4.26% 21 $3,084,975 9.51% 3.96% 21 $3,140,276 8.90% 3.86%
Food stores 7 3,761,288 13.63% 11.70% 7 3,812,536 11.76% 10.32% 7 4,193,672 11.88% 10.24%
Automotive 28 657,780 2.38% 33 831,520 2.56% 35 877,989 2.49%
Machine 27 26,706 0.10% 28 67,007 0.21% 37 111,107 0.31%
Restaurants 116 3,961,033 14.36% 1.02% 122 4,906,629 15.13% 1.04% 118 5,152,895 14.60% 1.01%
Home furnishings and appliances 11 162,704 0.59% 11 151,659 0.47% 11 287,081 0.81%
Building materials 8 2,408,566 8.73% 7.73% 8 2,805,050 8.65% 7.75% 8 2,899,413 8.22% 7.19%
Service stations 25 860,451 3.12% 25 892,962 2.75% 25 964,732 2.73%
Other retail stores 1,542 13,118,373 47.55% 9.07% 1,584 15,870,465 48.96% 10.13% 1,603 17,660,654 50.06% 8.20%
Totals 1,782 $27,588,604 100.00% 1,839 $32,422,803 100.00% 1,865 $35,287,819 100.00%
2017 2018 2019
Percent of Percent of Percent of
Number Percentage Tax Remitted Number Percentage Tax Remitted Number Percentage Tax Remitted
of Tax of Total Tax by Top 10 of Tax of Total
Tax by Top 10 of Tax of Total Tax by Top 10
Filers Liability Liability Taxpayers Filers Liability Liability Taxpayers Filers Liability Liability Taxpayers
Apparel stores 26 $ 2,784,878 11.94% 5.04% 20 $ 2,762,742 11.28% 4.82% 21 $ 2,811,745 10.73% 4.82%
Food stores 8 3,004,006 12.88% 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 16.95% 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 8.35% 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 42.02% 9.33% 1,579 11,028,280 45.02% 8.95% 1,582 12,027,849 45.92% 8.74%
Totals 1,871 $23,326,649 100.00% 1,820 $24,496,182 100.00% 1,818 $26,195,592 100.00%
City of Prattville, Alabama
Schedule 6
Sales Tax Revenue Payers by Category
78
2014 2015 2016
Percent of Percent of Percent of
Number Percentage Tax Remitted Number Percentage Tax Remitted Number Percentage Tax Remitted
of Tax of Total Tax by Top 10 of Tax of Total Tax by Top 10 of Tax of Total Tax by Top 10
Filers Liability Liability Taxpayers Filers Liability Liability Taxpayers Filers Liability Liability Taxpayers
Apparel stores 22 $ 2,732,187 12.91% 5.49% 22 $ 2,846,373 12.89% 7.70% 26 $ 2,905,661 12.49% 7.40%
Food stores 8 2,811,617 13.28% 11.62% 8 2,917,440 13.21% 11.70% 8 2,957,634 12.71% 11.40%
Automotive 22 361,388 1.71% 24 485,139 2.20% 27 544,858 2.34%
Machine 23 124,994 0.59% 22 48,583 0.22% 25 29,042 0.12%
Restaurants 107 3,499,174 16.53% 104 3,642,820 16.50% 108 3,747,505 16.11%
Home furnishings and appliances 11 551,347 2.60% 1.81% 12 589,919 2.67% 1.80% 11 620,070 2.67% 1.80%
Building materials 8 1,480,982 7.00% 6.06% 8 1,589,606 7.20% 6.40% 7 1,723,729 7.41% 6.60%
Service stations 25 621,500 2.94% 25 624,405 2.83% 23 659,769 2.84%
Other retail stores 1,181 8,987,129 42.44% 10.50% 1,261 9,334,096 42.28% 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%
2013
Percent of
Number Percentage Tax Remitted
of Tax of Total Tax by Top 10
Filers Liability Liability Taxpayers
Apparel stores 22 $ 2,755,286 13.40% 8.90%
Food stores 8 2,700,888 13.13% 11.50%
Automotive 23 342,249 1.66%
Machine 22 15,188 0.07%
Restaurants 85 2,907,568 14.14%
Home furnishings and appliances 12 568,989 2.77% 2.00%
Building materials 8 1,486,364 7.23% 6.30%
Service stations 25 698,855 3.40%
Other retail stores 931 9,089,143 44.20% 9.10%
Totals 1,136 $20,564,530 100.00%
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's revenue.
City of Prattville, Alabama
Schedule 7
Direct and Overlapping Sales Tax Rates
79
City Direct Autauga State of Total Sales
Fiscal Year Rate County District Tax Alabama Tax
2013 2.5% 2% 4.00% 8.5%
2014 2.5% 2% 4.00% 8.5%
2015 2.5% 2% 4.00% 8.5%
2016 2.5% 2% 4.00% 8.5%
2017 3.5% 2% 4.00% 9.5%
2018 3.5% 2% 4.00% 9.5%
2019 3.5% 2% 4.00% 9.5%
2020 3.5% 2% 4.00% 9.5%
2021 3.5% 2% 4.00% 9.5%
2022 3.5% 2% 4.00% 9.5%
City Direct Elmore State of Total Sales
Fiscal Year Rate County District Tax Alabama Tax
2013 3.5% 1% 1% 4.00% 9.5%
2014 3.5% 1% 1% 4.00% 9.5%
2015 3.5% 1% 1% 4.00% 9.5%
2016 3.5% 1% 1% 4.00% 9.5%
2017 3.5% 1% 1% 4.00% 9.5%
2018 3.5% 1% 1% 4.00% 9.5%
2019 3.5% 1% 1% 4.00% 9.5%
2020 3.5% 1% 1% 4.00% 9.5%
2021 3.5% 1% 1% 4.00% 9.5%
2022 3.5% 1% 1% 4.00% 9.5%
Sources: City Finance Department, Autauga County Revenue Commissioner's Office, and Elmore County Department of
Finance.
City of Prattville, Alabama
Schedule 8
Ratios of Outstanding Debt by Type
80
Governmental Activities
Limited Direct Total Percentage Percentage
Fiscal Warrants Obligation Borrowing Outstanding of Taxable of Personal Per Capita
Year Payable Warrant Notes Debt Sales (1) Income (2) (2)
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% 0.97% 425
2020 22,532,792 1,470,636 687,172 24,690,600 2.73% 0.94% 419
2021 12,478,242 1,457,886 4,738,315 18,674,443 1.74% 0.65% 316
2022 25,194,149 1,441,900 4,512,842 31,148,891 2.66% * *
Business-Type Activities
Limited Direct Total Percentage Percentage
Fiscal Warrants Obligation Borrowing Outstanding of Taxable of Personal Per Capita
Year Payable Warrant Notes Debt Sales (1) Income (2) (2)
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% 1.35% 592
2020 34,585,953 34,585,953 3.83% 1.32% 587
2021 33,607,072 33,607,072 3.12% 1.17% 569
2022 34,011,104 34,011,104 2.91% * *
Primary Government
Limited Direct Total Percentage Percentage
Fiscal Warrants Obligation Borrowing Outstanding of Taxable of Personal Per Capita
Year Payable Warrant Notes Debt Sales (1) Income (2) (2)
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% 2.31% 1,016
2020 57,118,745 1,470,636 687,172 59,276,553 6.56% 2.26% 1,007
2021 46,085,314 1,457,886 4,738,315 52,281,515 4.47% 1.68% 814
2022 59,205,253 1,441,900 4,512,842 65,159,995 5.57% * *
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) See the Net 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.
City of Prattville, Alabama
Schedule 9
Ratios of Net General Bonded Debt Outstanding
81
General Less Amounts Percentage of
Fiscal Obligation Available in Debt Net Taxable Per
Year Bonds (1) Service Fund (2) Total Sales (3) Capita (4)
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% 974
2020 57,118,745 1,971 57,116,774 6.32% 970
2021 46,085,314 1,952 46,083,362 4.28% 780
2022 59,205,253 - 59,205,253 5.06% *
Notes: 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 76 for net taxable sales data.
(4) Population data can be found in the schedule of Demographics and Economic Statistics on page 84.
* Information not available.
City of Prattville, Alabama
Schedule 10
Direct and Overlapping Governmental Activities Debt
As of September 30, 2022
82
Estimated Estimated Share
Debt Percentage of Direct and
Governmental Unit Outstanding Applicable (a) Overlapping Debt
Debt repaid with property taxes: Autauga County $ 8,843,313 46.75% $ 4,134,249
Debt repaid with property taxes: Elmore County 48,215,704 6.09% 2,936,336
Subtotal, overlapping debt 7,070,585
City of Prattville, Alabama direct debt 31,148,891
Total direct and overlapping debt $ 38,219,476
Sources: Assessed value data used to estimate applicable percentages provided by the Autauga County Revenue
Commissioner and Elmore County Revenue Commissioner. Debt outstanding data provided by the County.
Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and
businesses of the City of Prattville, Alabama. This process recognizes that, when considering the City's ability to issue and
repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However,
this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping
government.
(a) The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable
percentages were estimated by determining the portion of the City's taxable assessed value that is within the County's
boundaries and dividing it by the County's total taxable assessed value.
City of Prattville, Alabama
Schedule 11
Legal Debt Margin Information
83
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Net assessed value of taxable property $352,040,720 $348,362,480 $ 358,817,560 $ 367,841,220 $ 378,906,500 $ 399,540,960 $ 406,361,740 $ 419,195,680 $ 449,162,780 $ 505,103,080
Debt limit 70,408,144 69,672,496 71,763,512 73,568,244 75,781,300 79,908,192 81,272,348 83,839,136 89,832,556 101,020,616
Total net debt applicable to limit 18,697,026 26,501,875 37,095,437 36,416,570 31,990,284 24,241,351 21,587,614 24,241,351 11,033,458 26,825,906
Legal debt margin $ 51,711,118 $ 43,170,621 $ 34,668,075 $ 37,151,674 $ 43,791,016 $ 55,666,841 $ 59,684,734 $ 59,597,785 $ 78,799,098 $ 74,194,710
Total net debt applicable to the limit
as a percentage of debt limit 26.56% 38.04% 51.69% 49.50% 42.21% 30.34% 26.56% 28.91% 12.28% 0.00%
Legal Debt Margin Calculation for Fiscal Year 2022
Assessed value $ 505,103,080
Debt limit (20% of total assessed value) $ 101,020,616
Less portions not chargeable to the debt
limit:
Direct borrowings 4,552,269
Direct placements 9,153,637
General obligation warrants 13,120,000
Total net debt applicable to limit 26,825,906
Legal debt margin $ 74,194,710
-
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 12
Demographic and Economic Statistics
84
Personal Income Per Capita School Autauga County
Calendar Year Population (Thousands of Dollars) Personal Income Median Age Enrollment Unemployment Rate
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 9,260 (16-17) 4.10%
2018 55,601 2,314,002 41,618 37.80 9,184 (17-18) 3.90%
2019 55,869 2,453,599 43,917 38.20 9,040 (18-19) 2.80%
2020 58,877 2,628,372 46,814 38.20 8,976 (19-20) 5.30%
2021 59,095 2,872,490 48,608 38.50 8,908 (20-21) 2.80%
2022 * * * * 8,944 (21-22) 2.30%
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.
* Unavailable
City of Prattville, Alabama
Schedule 13
Principal Employers
85
2013 2014 2015 2016 2017
Percentage of Percentage of Percentage of Percentage of Percentage of
Total City Total City Total City Total City Total City
Employer Employees Employment Employees Employment Employees Employment Employees Employment Employees Employment
Autauga County Board of Education 1,120 7.35% 1,091 7.05% 1,091 6.95% 1,100 6.90% 1,076 6.64%
International Paper 550 3.61% 550 3.55% 550 3.55% 584 3.67% 600 3.70%
Prattville Baptist Hospital 275 1.80% 350 2.26% 350 2.23% 365 2.29% 399 2.46%
Kinedyne 70 0.46% * * 74 0.47% 166 1.04% 184 1.14%
City of Prattville, Alabama 315 2.23% 336 2.40% 354 2.37% 347 2.42% 349 2.38%
Walmart 348 2.28% 330 2.13% 330 2.10% 340 2.13% 320 1.97%
YMCA * * * * * * 105 0.66% 133 0.82%
Autauga County 200 1.31% 202 1.31% 202 1.29% 190 1.19% 190 1.17%
Prattville Health and Rehabilitation 200 1.31% 200 1.29% 187 1.19% 155 0.97% 155 0.96%
Bass Pro * * * * * * 212 1.33% 260 1.60%
Central Alabama Electric Cooperative * * * * * * 120 0.75% 120 0.74%
Long Lewis * * * * * * * * 83 0.51%
Fras-Le * * 156 1.01% 147 0.94% 96 0.60% 80 0.49%
Kasai NA, Inc. (M-Tek, Inc through 2015) 128 0.84% 138 0.89% 138 0.88% 110 0.69% 112 0.69%
LoneStar Plastics 80 0.52% 91 0.59% 91 0.58% 84 0.53% * *
Totals 3,286 21.71% 3,444 22.48% 3,514 22.55% 3,974 25.17% 4,061 25.27%
2018 2019 2020 2021 2022
Percentage of Percentage of Percentage of Percentage of Percentage of
Total City Total City Total City Total City Total City
Employees Employment Employees Employment Employees Employment Employees Employment Employees Employment
Autauga County Board of Education 1,097 6.60% 1,078 6.35% 1,213 7.64% 1,310 7.98% 1,200 6.84%
International Paper 636 3.83% 636 3.74% 636 4.01% 600 3.65% 675 3.85%
Prattville Baptist Hospital 397 2.39% 500 2.94% 500 3.15% 649 3.95% 590 3.36%
Kinedyne 221 1.33% 415 2.44% 415 2.61% 210 1.28% 170 0.97%
City of Prattville, Alabama 377 2.22% 358 2.27% 383 2.41% 411 2.50% 419 2.39%
Walmart 320 1.93% 312 1.84% 375 2.36% * * 375 2.14%
YMCA 112 0.67% 200 1.18% 218 1.37% 243 1.48% 377 2.15%
Autauga County 210 1.26% 210 1.24% 200 1.26% 200 1.22% 208 1.18%
Medline * * * * 160 1.01% 260 1.58% 255 1.45%
Prattville Health and Rehabilitation 193 1.16% 185 1.09% 150 0.94% 200 1.22% 200 1.14%
Bass Pro 182 1.10% 176 1.04% 150 0.94% 166 1.01% 146 0.83%
Central Alabama Electric Cooperative 120 0.72% 128 0.75% 130 0.82% 140 0.85% 160 0.91%
Target * * * * 119 0.75% 119 0.72% 119 0.68%
Long Lewis 120 0.72% 100 0.59% 100 0.63% 78 0.48% 98 0.56%
James Hardie Building Products * * * * 98 0.62% 230 1.40% 233 1.33%
Fras-Le 73 0.44% 80 0.47% 62 0.39% 60 0.37% 70 0.40%
Kasai NA, Inc. (M-Tek, Inc through 2015) * * * * 60 0.38% 60 0.37% 65 0.37%
Alabama Baptist State Board of Missions 90 0.54% 90 0.53% 60 0.38% 67 0.41% 67 0.38%
Pearson Industries * * * * * * * * 24 0.14%
Inteplast Group * * * * * * * * 33 0.19%
Totals 4,148 24.91% 4,468 26.47% 5,029 31.67% 5,003 30.47% 5,484 31.26%
Source: Prattville Area Chamber of Commerce.
Average number employed in City for 2022 was 17,554 per www2.labor.alabama.gov/LAUS/LAUScities.pdf.
http://www2.labor.alabama.gov/laus/CLF/AllCity.aspx#Prattville
* Unavailable
City of Prattville, Alabama
Schedule 14
Full-Time Equivalent City Government Employees by Function
86
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
General government:
Executive 3 3 3 3 4 5 5 6 6 6
Legislative 7 7 7 7 7 7 7 7 7 7
Finance 5 6 7 7 7 7 7 6 7 7
City clerk 3 3 3 3 3 4 3 3 2 3
Human resources 4 3 4 4 4 5 5 5 5 6
Judicial 6 6 6 6 6 6 7 7 7 7
Information technology 1 2 3 3 3 3 3 3 3 3
Vehicle maintenance 6 5 6 6 6 6 4 5 5 4
Public safety:
Police:
Officers 81 82 82 82 82 89 84 87 95 96
Civilians 9 9 10 10 10 8 8 8 7 10
Fire:
Officers 79 83 83 83 83 83 82 82 87 90
Civilians 7 2 2 2 3 3 3 3 3 3
Building division 4 6 6 6 6 4 4 4 4
Public works:
Public works 4 4 5 6 6 6 6 6
Engineering 10 9 9 9 8 10 9 11 11 11
Facilities maintenance 4 8 8 8 11 10 10 10 10
Planning and development 4 4 5 5 4 5 6 7 7 7
Sanitation 32 34 36 34 28 25 21 23 24 24
Wastewater 23 25 25 21 23 28 22 25 24 24
Urban management 23 30 30 29 34 38 28 30 32 28
Culture and recreation:
Parks and recreation 12 14 14 14 13 20 31 42 56 60
Performing/creative arts 1 1 1 2 2 3 3 3 3
Totals 315 336 354 347 349 377 358 383 411 419
Source: Human Resources
Note: This report includes regular full-time employees, regular part time employees (based on full time equivalent employment
calculated by dividing labor hours by 2,080 hours), elected and appointed officials as of September 30 each year.
City of Prattville, Alabama
Schedule 15
Operating Indicators by Function/Program
87
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
General government:
Building permits issued:
Residential* 120 131 161 165 189 185 242 332 299 239
Residential remodel 327 343 333 147 203 295 264 339 262 309
Commercial 8 12 17 10 12 23 19 8 12 18
Commercial buildout, remodel, addition 49 56 74 71 41 61 49 48 60 80
Building inspections conducted 4,506 5,688 4,148 4,830 4,767 5,260 5,927 7,387 8,142 5,826
Building plan reviews 181 441 659 650 873 808 921 908 738 806
Public safety:
Police:
Physical arrests 2,128 2,757 2,342 2,829 2,146 2,287 3,952 3,594 3,603 2,537
Parking violations 122 86 98 28 8 14 43
Traffic violations 4,782 4,897 4,418 5,701 8,163 8,367 5,884 3,298 3,759 2,636
Fire:
Emergency responses 5,786 5,893 5,118 4,874 5,394 5,405 5,447 5,857 6,390 6,241
Fires extinguished 101 113 105 113 43 104 103 101 110 101
Inspections 2,846 2,775 2,791 2,500 3,477 2,603 2,564 2,605 2,249 2,433
Public works:
Potholes repaired 1,750 2,000 2,500 2,500 2,000 2,550 2,750 1,750 2,000 2,200
Street resurfacing (miles) 2 7 5 8 1 8 22 31
Wastewater:
Average daily sewage treatment (millions of gallons):
Autauga Creek 1.92 1.62 1.47 1.54 1.66 1.79 1.81 2.00 2.89 2.26
Pine Creek 2.01 1.88 1.81 1.96 2.08 2.13 2.45 2.43 2.02 2.27
Refuse collection:
Garbage (tons per day) 38.50 36.33 45.00 44.60 49.60 43.33 45.47 46.04 47.01
Trash (yards per day) 189.00 260.00 220.00 61.00 28.00 204.00 287.00 289.50 210.00
Recyclables (tons per day) 1 1 1 1 1 1 2 1 2
Sources: Various City departments
* Excludes permits for pools, reroofs, and accessory structures
City of Prattville, Alabama
Schedule 16
Capital Asset Statistics by Function/Program
88
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
Public safety:
Police:
Stations 1 1 1 1 1 1 1 1 1 1
Patrol cars 84 81 84 78 80 95 95 95 93 114
Motorcycles 9 10 10 10 10 10 9 9 Fire:
Stations 3 3 3 3 3 3 3 3 4 4
Fire Engines 5 5 5 5 5 5 5 5 5 6
Ladder Trucks 1 1 1 1 2 2 2 2 2 2
Heavy Rescue 1 1 1 1 1 1 1 1 1 1
Ambulances 7 7 7 6 6 6 6 6 6 6
Refuse collection:
Trash trucks 6 6 6 6 6 6 6 4 6 7
Garbage trucks 8 8 8 9 7 7 7 5 7 6
Recyclable trucks 2
Parkan Truck 1 1 1 1 1 1 1 2
Public works:
Streets (miles) 212 212 217 220 223 228 230 232 234 240
Highways (miles) 23 23 23 23 23 23 23 23 23 23
Streetlights 2,450 2,450 2,475 2,510 2,525 2,550 2,575 2,600 2,650 2,750
Traffic signal heads 270 270 270 286 286 286 286 286 287 287
Cultural and recreation:
Acreage 354 354 354 354 354 354 357 357 357 368
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.