FY24 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, 2023
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, 2023
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
March 29, 2024
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, 2023 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 2023:
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 measure 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).
Management is aware of the following statements and will implement those applicable to the City in the next fiscal
period:
GASB Statement No. 99, Omnibus 2022, to enhance comparability in accounting and financial reporting and to
improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during
implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial
guarantees.
GASB Statement No. 100, Accounting Change and Error Corrections, 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.
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.
Economic development efforts have continued to yield strong results in additional investment in new and expanding
industries within the City. Total new investment for the 2022-2023 year totaled approximately $303,000,000. This
City expects this positive trend of economic development to continue going forward into 2024.
The City’s current and future financial position remains strong as exemplified by the information detailed in this
report. City management is aware of the affects that the overall economy could have on its citizenry and ability to
provide services, including supply chain concerns and negative impacts caused by inflation. While the City has only
seen increases in sales and use taxes during this high inflationary period, management is prepared to handle any
decrease in revenues that could arise over the coming years as a result of shifts in the overall economy.
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.
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As part of the City’s audit in accordance with generally accepted government auditing standards, tests are made to
determine the adequacy of the internal control structure, including that portion related to federal assistance
programs, as well as to determine that the government has complied with applicable laws and regulations.
Budgeting
Budgetary tracking is maintained at the line item level by the encumbrance of actual or estimated purchase amounts
prior to the release of purchase orders to vendors. Accountability for budgetary compliance is held at the
department level. The objective of these budgetary controls is to ensure compliance with legal provisions embodied
in the annual appropriated budget approved by the City’s governing body. Purchase orders resulting in an overrun
within a department balance are released only after the approval of the finance director or mayor.
Budget amendments are effected by resolutions enacted by the governing body when needed. Activities of the
General Fund, Debt Service Fund, Capital Projects Fund, Gas Tax Special Revenue Fund, Judicial Special Revenue
Fund, Wastewater Enterprise Fund and Sanitation Enterprise Fund are included in the budget. Encumbrances lapse
at year-end; however, encumbrances remaining against a positive department budget balance may be re-
appropriated as a “prior year carryover.”
The City’s budget is prepared in accordance with generally accepted accounting principles (GAAP), with the exception
that 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 CareHere LLC 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 2023 the City was named a 2023 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-
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being, energy use, and protection from extreme heat and flooding. This is the 38th consecutive year that the City
has been recognized with this distinguished designation.
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.
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, 2022. 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 2023 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, 2023
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, 2023, 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, 2023, and the respective changes in financial position, and, where
applicable, cash flows thereof and the respective budgetary comparison for the General Fund, the Gas Tax Special Revenue
Fund, and the Judicial Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted
in the United States of America.
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, 2023. 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.
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
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 March 29, 2024, 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
March 29, 2024
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2023
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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, 2023. 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, 2023, by $143,590,966 (net position).
• During the year, the City’s total net position increased by $20,396,221. Revenues of $84,317,890 exceeded expenses
of $63,921,669. Total revenues decreased from the prior year by $2,902,518 due primarily to a decrease of $9,210,148
in capital grants and contributions in the public works function. This decrease was the result of significant donated
infrastructure contributions in the Glennbrook and The Ridge at Pratt Farms neighborhoods in the prior year. There
was an increase in sales and use taxes received of $2,312,129 which can be attributed to continued inflationary pricing
of goods and services as well as continued growth in the City’s population and tax base which is supported by the 474
residential building permits issued over the past two years. Expenses increased by $7,972,956 due primarily to an
increase of $2,881,063 in spending for public safety and an increase of $2,906,008 in spending for public works. The
increase in public safety was due in part to the purchase of P25 radios in the fire department for approximately
$350,000, as well as the hiring of three additional firemen. The increase in public works was related to a new roof for
the Public Safety Building ($479,979) as well as a pay plan adjustment to raise salaries and wages to market rates.
• Under the Government Accounting Standards Board Statement Number 68, Accounting and Financial Reporting for
Pensions (GASB 68), the City recognized an expense of $5,337,739 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 $388,468 in the current
year.
• As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of
$54,558,402, which represents an increase of $11,152,956 from the prior year. This increase is primarily due to the
increase in the unassigned fund balance of $8,643,433 related to the City’s efforts in boosting the General Fund
Operating and General Fund Reserves accounts. These accounts demonstrated increases of $5,449,134 and $1,207,445,
respectively, over 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.
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2023
6
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.
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.
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2023
7
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.
Government-Wide Financial Analysis
The City’s condensed statement of net position as of September 30, 2023 and 2022 derived from the government-wide
statement of net position is presented below.
Governmental Activities Business-Type Activities Totals
2023 2022 2023 2022 2023 2022
Current and
other assets $ 52,658,454 38,861,369 $ 8,964,641 8,357,083 $ 61,623,095 47,218,452
Restricted assets 11,697,726 14,117,543 - 1,127,890 11,697,726 15,245,433
Capital assets, net 119,269,305 110,237,259 46,280,686 45,496,747 165,549,991 155,734,006
Total assets 183,625,485 163,216,171 55,245,327 54,981,720 238,870,812 218,197,891
Deferred outflows
of resources 19,295,728 9,777,738 2,201,439 1,070,666 21,497,167 10,848,404
Long-term
liabilities 62,018,300 51,241,651 35,770,915 35,269,768 97,789,215 86,511,419
Other liabilities 10,631,019 11,038,717 2,574,924 2,110,978 13,205,943 13,149,695
Total liabilities 72,649,319 62,280,368 38,345,839 37,380,746 110,995,158 99,661,114
Deferred inflows
of resources 5,250,600 5,622,988 531,255 567,448 5,781,855 6,190,436
Net position:
Net investment in
capital assets 97,522,876 90,286,177 13,138,263 12,516,514 110,661,139 102,802,691
Restricted 2,288,120 2,660,542 - - 2,288,120 2,660,542
Unrestricted 25,210,298 12,143,834 5,431,409 5,587,678 30,641,707 17,731,512
Total net position $ 125,021,294 105,090,553 18,569,672 18,104,192 143,590,966 123,194,745
The largest component of the City’s net position as of September 30, 2023 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, 2023 increased by $9,815,985 from the
prior year due to construction in progress and infrastructure additions. Significant construction in progress additions include
Newton Park improvements ($2,544,019), Thomas Avenue drainage improvements ($1,069,410) and the Industrial Access Road
extension project in the South Industrial Park ($996,126). Significant infrastructure improvements include the Pratt Park
Renovation in the amount of $1,866,984.
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 $143,590,966.
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2023
8
The City’s net position increased by $20,396,221 during the current fiscal year and was affected by an increase in charges for
services, operating grants and contributions, and sales and use tax revenue, as well as overall continued control over expenses
and conservative budgeting practices. The City saw an increase in charges for services of $1,401,671, which was paced by an
increase in ambulance revenues generated by the Fire Department related to increased call volume. The City also recorded
capital grants and contributions of $6,842,260 for the year, which included $3,512,500 in donated infrastructure in the McClain
Landing and Heather Drive subdivisions. There was an increase in sales and use taxes received of $2,312,129 which can be
attributed to continued inflationary pricing of goods and services as well as continued growth in the City’s population and tax
base which is supported by the 474 residential building permits issued over the past two years.
A portion of net position is restricted, or has restrictions on how they may be used. Governmental activities restricted net
position totaled $2,288,120 at September 30, 2023 and is restricted for use in law enforcement, road projects, Elmore County
district improvements, Historic 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, 2023, reported a
balance in unrestricted net position of $25,210,298. Business-type activities reported unrestricted net position of $5,431,409 at
September 30, 2023.
The following presents the City’s condensed statement of activities for the fiscal years ended September 30, 2023 and 2022 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 $20,396,221 and is attributable to the reasons previously mentioned.
Governmental Activities Business-Type Activities Totals
2023 2022 2023 2022 2023 2022
Revenues
Program revenues:
Charges for
services $ 12,373,999 $ 11,271,575 $ 10,642,377 $ 10,343,130 $ 23,016,376 $ 21,614,705
Operating grants
and contributions 2,706,833 2,654,166 - - 2,706,833 2,654,166
Capital grants
and contributions 6,495,847 16,052,408 - - 6,495,847 16,052,408
Total program
revenues 21,576,679 29,978,149 10,642,377 10,343,130 32,219,056 40,321,279
General revenues:
Sales/use tax 37,928,844 35,616,715 - - 37,928,844 35,616,715
Real/personal
property tax 3,892,055 3,405,722 - - 3,892,055 3,405,722
Lodging tax 3,727,962 3,558,414 - - 3,727,962 3,558,414
Local gas tax 1,135,865 1,131,901 - - 1,135,865 1,131,901
Alcohol tax 498,411 509,160 - - 498,411 509,160
Rental tax 622,395 527,524 - - 622,395 527,524
Tobacco tax 110,626 112,831 - - 110,626 112,831
Intergovernmental 1,762,606 1,080,208 - - 1,762,606 1,080,208
Interest 789,053 135,391 58,008 6,557 847,061 141,948
Miscellaneous 1,568,926 497,773 (1,800) 281,154 1,567,126 778,927
Disposal of assets (28,232) 33,488 34,115 2,291 5,883 35,779
Total general
revenues 52,008,511 46,609,127 90,323 290,002 52,098,834 46,899,129
Total revenues 73,585,190 $ 76,587,276 $ 10,732,700 $ 10,633,132 $ 84,317,890 $ 87,220,408
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2023
9
Governmental Activities Business-Type Activities Totals
2023 2022 2023 2022 2023 2022
Expenses
General government $ 13,671,768 $ 13,786,258 $ - $ - $ 13,671,768 $ 13,786,258
Public safety 24,044,135 21,163,072 - - 24,044,135 21,163,072
Public works 10,586,147 7,680,139 - - 10,586,147 7,680,139
Cultural/recreational 4,820,823 3,991,343 - - 4,820,823 3,991,343
Interest/fiscal charges 1,024,201 754,894 - - 1,024,201 754,894
Wastewater - - 6,500,266 5,554,371 6,500,266 5,554,371
Sanitation - - 3,274,329 3,018,636 3,274,329 3,018,636
Total expenses 54,147,074 47,375,706 9,774,595 8,573,007 63,921,669 55,948,713
Change before
transfers 19,438,116 29,211,570 958,105 2,060,125 20,396,221 31,271,695
Transfers 492,625 505,000 (492,625) (505,000) - -
Change in
net position 19,930,741 29,716,570 465,480 1,555,125 20,396,221 31,271,695
Net position - begin 105,090,553 75,373,983 18,104,192 16,549,067 123,194,745 91,923,050
Net position - end $ 125,021,294 $ 105,090,553 $ 18,569,672 $ 18,104,192 $ 143,590,966 $ 123,194,745
Expenses and Program Revenues for Governmental Activities
Governmental activities increased the City’s net position by $20,396,221 during the current fiscal year and was affected by an
increase in charges for services, operating grants and contributions, and sales and use tax revenue, as well as overall continued
control over expenses and conservative budgeting practices. The City saw an increase in charges for services of $1,401,671,
which was paced by an increase in ambulance revenues generated by the Fire Department related to increased call volume. The
City also recorded capital grants and contributions of $6,842,260 for the year, which included $3,512,500 in donated
infrastructure in the McClain Landing and Heather Drive subdivisions. There was an increase in sales and use taxes received of
$2,312,129 which can be attributed to continued inflationary pricing of goods and services as well as continued growth in the
City’s population and tax base which is supported by the 474 residential building permits issued over the past two years.
Expenses and Program Revenue – Governmental Activities
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2023
10
Revenue by Source – Governmental Activities – FY 2023
Revenue by Source – Governmental Activities – FY 2022
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2023
11
Expenses and Program Revenues for Business-Type Activities
Business-type activities increased the City’s net position by $465,480. Key elements of this change in net position are as follows:
• Wastewater charges for services increased by $85,744 primarily due to continued residential growth and increased
production from a large manufacturing plant. Operating expenses increased by $981,156 and was driven by a pay plan
adjustment to raise salaries and wages to market rates (increase of $293,877) as well as an increase in the cost of sales
and services (increase of $267,408) due to the continued inflation on goods and supplies.
• Sanitation’s operations remained consistent with the prior year and attributed to an increase to the City’s net position
by $29,671.
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, 2023, governmental funds reported a combined ending fund balance of $54,558,402, an increase of
$11,152,956 compared to the prior year. Of this balance, $165,829 is not available for new spending because it is a prepaid item;
$12,023,963 is restricted for law enforcement, road projects, capital projects, historic district improvements, Elmore County
district improvements, and cultural arts; $10,613,124 is committed to capital projects, public facilities, infrastructure, parks and
recreation, and education; and $7,809,111 is assigned for capital projects, facilities improvements, infrastructure, fire training,
capital equipment, economic development reserve, and other purposes.
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2023
12
The fund balance of the General Fund increased $14,345,107 during the current fiscal year after other financing sources and
uses. Total revenue increased $5,464,632 as compared to the prior year primarily due to an increase in tax revenue, licenses
and permits and miscellaneous revenues.
The fund balance of the Capital Projects Fund decreased $2,680,163 during the current fiscal year after other financing sources
and uses, primarily due to current year expenditure of bond proceeds issued in the prior year for the Pratt Park, Newton Park
and Stanley Jensen Stadium renovation projects.
The fund balance of the Debt Service Fund increased $2,080 during the current fiscal year.
The fund balance of the Gas Tax Special Revenue Fund decreased $407,084 during the current fiscal year. This decrease in the
fund balance was the result of a local paving project totaling in excess of $2,300,000.
The fund balance of the Judicial Special Revenue Fund decreased $82,871 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) decreased by $24,113 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 $5,431,409.
The Wastewater Fund had an overall increase in net position of $435,809, and the Sanitation Fund had an overall increase in net
position of $29,671.
Internal service fund - Internal service funds are designed to recover the internal costs of government services provided to other
funds. At September 30, 2023, the internal service fund reported $769,753 for its net position balance. Contributions remained
the same from the prior year for all participating funds on a per employee basis. For 2023, 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, 2023 was $110,661,139. 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 $3,980,705, net of $5,561,586 placed in service
• Purchases of vehicles of $1,060,866 and buildings of $682,226
• Infrastructure and land contributions of $3,561,500
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2023
13
Governmental Business-type
Activities Activities Totals
Land $ 5,539,694 $ 1,306,019 $ 6,845,713
Construction in progress 9,652,841 4,392,626 14,045,467
Buildings and improvements 13,533,591 2,580,491 16,114,082
Land improvements 914,348 682,751 1,597,099
Vehicles 2,551,520 1,151,473 3,702,993
Office, nonoffice, and computer equipment 3,065,967 518,300 3,584,267
Infrastructure 84,011,344 35,649,026 119,660,370
Totals, net of accumulated depreciation $ 119,269,305 $ 46,280,686 $ 165,549,991
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, 2023, the governmental activities had total debt outstanding of $29,617,638 and the
business-type activities had a total debt outstanding of $33,022,043.
2023 2022 Change
General obligation warrants $ 27,991,200 $ 28,386,615 $ (395,415)
Warrants from direct placements 26,661,610 30,818,638 (4,157,028)
Debt from direct borrowings 4,277,910 4,512,842 (234,932)
Limited obligation warrant 1,425,205 1,441,900 (16,695)
Totals $ 60,355,925 $ 65,159,995 $ (4,804,070)
The City of Prattville, Alabama’s net total debt outstanding decreased by $4,804,070 during the current fiscal year. During 2023,
the City did not issue any new debt. 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, 2023
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, 2023, actual revenues for the General Fund were more than the budgeted amount by $10,863,020, or
21.00%. Sales and use taxes were $5,868,351 more than budgeted due to increased sales primarily as a result of an overall
improvement in economic conditions as well as the continued impact of inflation on goods and services.
As of September 30, 2023, actual expenditures for the General Fund were less than the budgeted amount by $3,672,724 or
8.38%.
City of Prattville, Alabama
Management’s Discussion and Analysis
September 30, 2023
14
Economic Factors and Year 2024 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 75% of general fund revenues in fiscal year 2023.
• The unemployment rate for Autauga County, where the City is primarily located, is currently 2.0%, 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 2.8% 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, 2023
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 $ 45,594,490 $ 8,327,360 $ 53,921,850 $ 359,672 $ 211,647
Internal balances 218,095 (218,095) - - -
Accounts receivable 977,692 828,412 1,806,104 - 11,615
Taxes receivable 3,909,233 - 3,909,233 - -
Due from other governments 1,463,634 - 1,463,634 - 523,708
Inventory - - - - 45,719
Prepaid items 165,829 26,964 192,793 10,352 -
Restricted cash and cash equivalents 11,697,726 - 11,697,726 - -
Leases receivable, due in one year 17,777 - 17,777 - -
Leases receivable, due after one year 311,704 - 311,704 - -
Capital assets, not depreciated 15,192,535 5,698,645 20,891,180 - 4,930,599
Capital assets, net of accumulated depreciation 104,076,770 40,582,041 144,658,811 - 4,060,867
Total assets 183,625,485 55,245,327 238,870,812 370,024 9,784,155
Deferred Outflows of Resources Pension related items 18,151,251 2,201,439 20,352,690 131,673 -
OPEB related items 1,144,477 - 1,144,477 - -
Total deferred outflows of resources 19,295,728 2,201,439 21,497,167 131,673 -
Liabilities
Accounts payable 3,123,719 993,220 4,116,939 - 585,426
Accrued liabilities 525,534 61,424 586,958 22,994 -
Retainage payable 157,503 120,380 277,883 - -
Other payables 751,423 18,993 770,416 - -
Unearned revenue 3,412,567 - 3,412,567 59,412 -
Interest payable 226,864 294,762 521,626 - -
Noncurrent liabilities due in one year:
Warrants and other debt 1,589,139 1,009,000 2,598,139 - 12,351
Compensated absences and OPEB 844,270 77,145 921,415 - -
Noncurrent liabilities due after one year:
Warrants and other debt, net 28,028,499 32,013,043 60,041,542 - 35,711
Compensated absences 1,001,021 157,148 1,158,169 6,164 -
Net pension liability 29,688,595 3,600,724 33,289,319 236,151 -
Total OPEB liability 3,300,185 - 3,300,185 - -
Total liabilities 72,649,319 38,345,839 110,995,158 324,721 633,488
Deferred Inflows of Resources
Pension related items 4,380,290 531,255 4,911,545 - -
OPEB related items 557,834 - 557,834 - -
Lease related items 312,476 - 312,476 - -
Total deferred inflows of resources 5,250,600 531,255 5,781,855 - -
Net Position
Net investment in capital assets 97,522,876 13,138,263 110,661,139 - 8,943,404
Restricted for
Law enforcement 246,404 - 246,404 - -
Road projects 516,678 - 516,678 - -
Elmore County district improvements 1,143,437 - 1,143,437 - -
Historic district improvements 337,566 - 337,566 - -
Cultural arts 44,035 - 44,035 - -
Airport improvements - - - - 17,564
Unrestricted 25,210,298 5,431,409 30,641,707 176,976 189,699
Total net position $ 125,021,294 $ 18,569,672 $ 143,590,966 $ 176,976 $ 9,150,667
City of Prattville, Alabama
Statement of Activities
For the Year Ended September 30, 2023
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 Charges Operating Capital Autauga- Prattville
for Grants and Grants and Governmental Business-Type Prattville Airport
Expenses Services Contributions Contributions Activities Activities Total Public Library Authority
Functions/Programs
Primary government Governmental activities: General government $ 13,671,768 $ 9,532,507 $ 1,645,850 $ - $ (2,493,411) $ (2,493,411) $ - $ -
Public safety 24,044,135 1,944,507 801,663 - (21,297,965) (21,297,965) - - Public works 10,586,147 - - 6,495,847 (4,090,300) (4,090,300) - - Cultural and recreational 4,820,823 896,985 259,320 - (3,664,518) (3,664,518) - - Interest and fiscal charges 1,024,201 - - - (1,024,201) (1,024,201) - - Total governmental activities 54,147,074 12,373,999 2,706,833 6,495,847 (32,570,395) (32,570,395) - -
Business-type activities: Wastewater 6,500,266 7,126,651 - - - $ 626,385 626,385 - - Sanitation 3,274,329 3,515,726 - - - 241,397 241,397 - - Total business-type activities 9,774,595 10,642,377 - - - 867,782 867,782 - - Total primary government $ 63,921,669 $ 23,016,376 $ 1 2,706,833 $ 6,495,847 (32,570,395) 867,782 (31,702,613) - - Component units
Autauga-Prattville Public Library $ 742,498 $ 26,607 $ 116,613 $ - (599,278) -
Prattville Airport Authority 1,003,113 539,544 - 1,478,449 - (1,014,880)
Total component units $ 1,745,611 $ 566,151 $ 116,613 $ 1,478,449 (599,278) (1,014,880)
General revenues Sales and use taxes 37,928,844 - 37,928,844 - -
Real and personal property taxes 3,892,055 - 3,892,055 - -
Lodging taxes 3,727,962 - 3,727,962 - -
Local gasoline
taxes
1,135,865 - 1,135,865 - -
Alcoholic beverage taxes 498,411 - 498,411 - -
Rental taxes 622,395 - 622,395 - -
Tobacco taxes 110,626 - 110,626 - -
Unrestricted shared revenues 1,762,606 - 1,762,606 - -
Interest income 789,053 58,008 847,061 559 129
Other 1,568,926 (1,800) 1,567,126 - -
Gain (loss) on disposal of capital assets (28,232) 34,115 5,883 - (1,667)
City appropriation - - - 350,000 120,000
County appropriation - - - 215,000 -
Transfers 492,625 (492,625) - - -
Total general revenues and transfers 52,501,136 (402,302) 52,098,834 565,559 118,462
Change in Net Position 19,930,741 465,480 20,396,221 (33,719) 1,133,342
Net Position, Beginning 105,090,553 18,104,192 123,194,745 210,695 8,017,325
Net Position, Ending $ 125,021,294 $ 18,569,672 $ 143,590,966 $ 176,976 $ 9,150,667
City of Prattville, Alabama
Balance Sheet
Governmental Funds
September 30, 2023
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 $ 37,812,058 $ 5,911,547 $ - $ 464,932 $ 200,381 $ 229,077 $ 44,617,995
Accounts receivable 709,932 - - - 78,636 - 788,568
Taxes receivable 3,850,471 58,762 - - - - 3,909,233
Due from other governments 55,876 1,358,092 - 49,666 - - 1,463,634
Due from other funds 463,920 61,682 - - - - 525,602
Leases receivable 329,481 - - - - - 329,481
Prepaid items 165,704 - - - 125 - 165,829
Restricted cash and cash equivalents 1,851,314 9,735,843 2,080 - - 108,489 11,697,726
Total assets $ 45,238,756 $ 17,125,926 $ 2,080 $ 514,598 $ 279,142 $ 337,566 $ 63,498,068
Liabilities Accounts payable $ 1,153,563 $ 1,707,128 $ - $ - $ 64,390 $ - $ 2,925,081
Accrued liabilities 516,125 - - - 9,410 - 525,535
Retainage payable - 157,503 - - - - 157,503
Unearned revenue 2,780,470 632,097 - - - 3,412,567
Due to other funds 61,682 220,229 - - 25,398 - 307,309
Other payables 263,564 - - - 290,829 - 554,393
Total liabilities 4,775,404 2,716,957 - - 390,027 - 7,882,388
Deferred Inflows of Resources
Lease related items 312,476 - - - - - 312,476
Unavailable revenue - intergovernmental 12,221 653,945 - - 78,636 - 744,802
Total deferred inflows of resources 324,697 653,945 - - - - 1,057,278
Fund Balances
Nonspendable: Prepaid items 165,704 - - - 125 - 165,829
Restricted
Law enforcement 246,404 - - - - - 246,404
Road projects - - 2,080 514,598 - - 516,678
Capital projects - 9,735,843 - - - - 9,735,843
Historic district improvements - - - - - 337,566 337,566
Elmore County district improvements 1,143,437 - - - - - 1,143,437
Cultural arts 44,035 - - - - - 44,035
Committed Capital projects - 574,659 - - - - 574,659
Public facilities 2,942,339 - - - - - 2,942,339
Infrastructure 2,943,117 - - - - - 2,943,117
Parks and recreation 2,703,465 - - - - - 2,703,465
Education 1,449,544 - - - - - 1,449,544
Assigned Capital projects - 2,646,986 - - - - 2,646,986
Facilities improvements 1,190,499 - - - - - 1,190,499
Infrastructure - 647,536 - - - - 647,536
Fire training 39,464 - - - - - 39,464
Capital equipment reserve 351,759 - - - - - 351,759
Economic development reserve 1,296,965 - - - - - 1,296,965
Other purposes 1,430,857 150,000 - - 55,045 - 1,635,902
Unassigned (deficit) 24,191,066 - - - (244,691) - 23,946,375
Total fund balances 40,138,655 13,755,024 2,080 514,598 (189,521) 337,566 54,558,402
Total liabilities, deferred inflows of resources and fund balances $ 45,238,756 $ 17,125,926 $ 2,080 $ 514,598 $ 279,142 $ 337,566 $ 63,498,068
City of Prattville, Alabama
Reconciliation of Balance Sheet of Governmental Funds to Statement of Net Position
September 30, 2023
The accompanying notes are an integral part of these financial statements.
18
Differences in amounts reported for governmental activities in the statement of net position:
Total fund balances – governmental Funds $ 54,558,402
Capital assets used in governmental activities are not financial resources and are not
reported in the governmental funds. Those assets consist of:
Land $ 5,539,694
Construction in progress 9,652,841
Buildings and building improvements, net of $3,669,016 accumulated depreciation 13,533,591
Land improvements, net of $5,426,094 accumulated depreciation 914,348
Vehicles, net of $7,882,583 accumulated depreciation 2,551,520
Office, nonoffice, and computer equipment, net of $6,033,110 accumulated depreciation 3,065,967
Infrastructure, net of $19,215,922 accumulated depreciation 84,011,344
Total 119,269,305
Revenues that are not available to pay for current period expenditures and, therefore, are
reported as unavailable revenue in the governmental funds. 744,802
Internal service funds are used by management to charge the costs of employee medical
to individual funds. The assets and liabilities of the internal service fund are included in
governmental activities in the statement of net position. 769,753
Deferred outflows and inflows of resources as well as the net pension and OPEB liability
related to 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 18,151,251
Deferred inflows related to the pension plan (4,380,290)
Deferred outflows related to the OPEB plan 1,144,477
Deferred inflows related to the OPEB plan (557,834)
Net pension liability (29,688,595)
Total OPEB liability (3,300,185)
Total (18,631,176)
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 (29,617,638)
Compensated absences (1,845,291)
Accrued interest payable (226,863)
Total (31,689,792)
Net position of governmental activities $ 125,021,294
City of Prattville, Alabama
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2023
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 $ 47,301,217 $ 614,941 $ - $ - $ - $ - $ 47,916,158
Licenses and permits 8,328,146 - - - - - 8,328,146
Fines and forfeitures 152,463 - - - 594,334 - 746,797
Charges for services 2,016,059 - - - - - 2,016,059
Intergovernmental revenues 3,223,003 2,997,948 - 577,890 - - 6,798,841
Interest income 285,239 497,935 2,080 194 - 3,353 788,801
Miscellaneous revenues 1,292,704 - - - - 264,000 1,556,704
Total revenues 62,598,831 4,110,824 2,080 578,084 594,334 267,353 68,151,506
$
6
1
4
,
9
4
1
Expenditures
Current
General government 10,343,242 - -
- 376,341 - 10,719,583
Public safety 18,058,226 - -
- 596,498 - 18,654,724
Public works 5,658,985 - - 2,583,773 - 23,894 8,266,652
Cultural and recreational 3,849,208 - -
- - - 3,849,208
Capital outlay 2,246,115
2
,
2
4
6
,
1
1
5
7,394,572 -
-
-
-
- -
2
0
,
2
8
0
9,660,967
Debt service
Principal payments 16,695 - 1,403,600
- - 125,000 1,545,295
Interest and fiscal charges - - 780,265
- - 122,292 902,557
Issuance costs - - -
- - - -
Total expenditures 40,172,471 7,394,572 2,183,865 2,583,773 972,839 291,466 53,598,986
Excess of revenues over (under) expenditures 22,426,360 (3,283,748) (2,181,785) (2,005,689) (378,505) (24,113) 14,552,520
Other Financing Sources (Uses)
Sale of capital assets 23,433 - - - - - 23,433
Issuance of long-term debt - - - - - - -
Discount on long-term debt - - - - - - -
Transfers in 3,023,293 4,242,565 2,183,865 1,598,605 358,634 - 11,406,962
Transfer out (11,127,979) (3,638,980) - - (63,000) - (14,829,959)
Total other financing sources (uses) (8,081,253) 603,585 2,183,865 1,598,605 295,634 - (3,399,564)
Net change in fund balances 14,345,107 (2,680,163) 2,080 (407,084) (82,871) (24,113) 11,152,956
Fund balances, beginning 25,793,548 16,435,187 - 921,682 (106,650) 361,679 43,405,446
Fund balances, ending $ 40,138,655 $ 13,755,024 $ 2,080 $ 514,598 $ (189,521) $ 337,566 $ 54,558,402
City of Prattville, Alabama
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual
General Fund
For the Year Ended September 30, 2023
The accompanying notes are an integral part of these financial statements.
20
Differences in amounts reported for governmental activities in the statement of activities:
Net change in fund balances – total governmental funds $ 11,152,956
Donations of capital assets increase net position but do not appear in the
governmental funds because they are not financial resources. 3,512,500
Capital outlays are reported as expenditures in the fund financial statements
but are capitalized in the statement of net position. 9,660,967
Depreciation expense on capital assets is reported in the statement of activities. (4,089,756)
The net effect of miscellaneous transactions involving capital assets is to decrease
net position in the statement of net position. (52,055)
Repayment of principal is an expenditure in the governmental funds, but the repayment
reduces long-term liabilities in the statement of net position. 1,545,295
The activities of internal service funds are reported with governmental activities. 474,015
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. 744,802
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 $ (131,605)
Accrued interest payable (22,239)
Amortization of debt discounts (11,145)
Change in total OPEB liability and related deferred amounts (149,711)
Change in net pension liability and related deferred amounts (2,703,283)
Total 3,017,983
Change in net position of governmental activities $ 19,930,741
City of Prattville, Alabama
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual
General Fund
For the Year Ended September 30, 2023
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 $ 31,912,921 $ 32,060,492 $ 37,928,843 $ 5,868,351
Real and personal property taxes 3,414,800 3,414,800 3,892,055 477,255
Lodging taxes 2,253,000 2,274,000 3,113,021 839,021
Local gasoline taxes 1,105,000 1,105,000 1,135,865 30,865
Alcoholic beverage taxes 457,000 457,000 498,411 41,411
Rental taxes 470,000 470,000 622,395 152,395
Tobacco taxes 118,000 118,000 110,627 (7,373)
Total taxes 39,730,721 39,899,292 47,301,217 7,401,925
Licenses and permits Business licenses 6,552,128 6,804,256 6,950,356 146,100
Franchise fees 570,000 570,000 474,005 (95,995)
Building permits and inspection fees 568,750 568,750 901,240 332,490
Yard sale and special event permits 3,500 3,500 2,545 (955)
Total licenses and permits 7,694,378 7,946,506 8,328,146 381,640
Fines and forfeitures Drug confiscation proceeds - - 34,755 34,755
Penalties and other fees 61,000 61,000 107,588 46,588
Accident reports 9,000 9,000 10,120 1,120
Total fines and forfeitures 70,000 70,000 152,463 82,463
Charges for services Ambulance fees 1,010,000 1,010,000 1,090,529 80,529
Fire training tuition 20,000 20,000 28,545 8,545
Parks and recreation 710,800 710,800 793,219 82,419
Performing and creative arts 114,000 114,000 103,766 (10,234)
Total charges for services 1,854,800 1,854,800 2,016,059 161,259
Intergovernmental revenues
Shared 498,000 498,000 516,170 18,170
Grants 1,188,064 1,188,064 2,706,833 1,518,769
Total intergovernmental revenues 1,686,064 1,686,064 3,223,003 1,536,939
Interest 65,000 65,000 285,239 220,239
Miscellaneous revenues Donations 21,500 21,500 36,114 14,614
Insurance proceeds 90,000 90,000 156,186 66,186
Tower fees 22,000 22,000 28,181 6,181
Miscellaneous income 80,649 80,649 1,072,223 991,574
Total other revenues 214,149 214,149 1,292,704 1,078,555
Total revenues 51,315,112 51,735,811 62,598,831 10,863,020
City of Prattville, Alabama
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual
General Fund
For the Year Ended September 30, 2023
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
General government
Executive 466,700 466,700 466,767 (67)
Legislative 166,324 166,324 140,854 25,470
Finance 788,938 788,938 894,474 (105,536)
City clerk 316,894 316,894 298,778 18,116
Human resources 806,938 806,938 702,227 104,711
Information technology 2,284,344 2,284,344 1,789,366 494,978
Vehicle maintenance 388,528 388,528 279,615 108,913
Sales tax incentives 1,475,000 1,475,000 1,668,871 (193,871)
Building 386,634 386,634 345,807 40,827
City/County services 122,000 122,000 122,000 -
Community initiatives 2,392,109 3,651,950 2,891,119 760,831
Appropriations 739,000 739,000 743,364 (4,364)
Total general government 10,333,409 11,593,250 10,343,242 1,250,008
Public safety Police 9,858,493 9,945,844 9,170,804 775,040
Fire 8,768,503 8,759,136 8,887,422 (128,286)
Total public safety 18,626,996 18,704,980 18,058,226 646,754
Public works
General public works 712,720 712,720 682,715 30,005
Planning and development 790,037 790,037 578,832 211,205
Urban management 1,341,187 1,341,187 1,333,448 7,739
Engineering 2,196,846 2,196,846 1,812,370 384,476
Facilities maintenance 1,414,509 1,414,509 1,251,620 162,889
Total public works 6,455,299 6,455,299 5,658,985 796,314
Cultural and recreational
Parks and recreation 2,980,240 2,980,240 3,316,108 (335,868)
Performing and creative arts 549,393 549,393 533,100 16,293
Total cultural and recreational 3,529,633 3,529,633 3,849,208 (319,575)
Capital outlay 2,825,027 3,545,533 2,246,115 1,299,418
Debt service Principal payments 16,500 16,500 16,695 (195)
Total expenditures 41,786,864 43,845,195 40,172,471 3,672,724
Excess of revenues over expenditures 9,528,248 7,890,616 22,426,360 14,535,744
City of Prattville, Alabama
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual
General Fund
For the Year Ended September 30, 2023
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 65,000 23,433 (41,567)
Transfers in 160,000 160,000 3,023,293 2,863,293
Transfers out (7,575,337) (7,725,337) (11,127,979) (3,402,642)
Total other financing sources (uses) (7,350,337) (7,500,337) (8,081,253) (580,916)
Net change in fund balance $ 2,177,911 $ 390,279 14,345,107 $ 13,954,828
Adjustment for reconciling items to adjust from
budgetary basis to modified accrual basis Change in encumbrances (411,410)
Net Change in Fund Balance, Modified Accrual Basis 13,933,697 Fund Balance, Beginning 25,793,548
Fund Balance, Ending $ 39,727,245
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, 2023
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 $ 3,141,500 $ 3,141,500 $ 577,890 $ (2,563,610)
Interest income 100 100 194 94
Total revenues 3,141,600 3,141,600 578,084 (2,563,516)
Expenditures
Public works 4,140,205 4,140,205 2,583,773 1,556,432
Total expenditures 4,140,205 4,140,205 2,583,773 1,556,432
Deficiency of revenues under expenditures (998,605) (998,605) (2,005,689) (1,007,084)
Other Financing Sources (Uses) Transfers in 98,605 98,605 1,598,605 1,500,000
Total other financing sources (uses) 98,605 98,605 1,598,605 1,500,000
Net change in fund balances $ (900,000) $ (900,000) (407,084) $ 492,916
Net Change in Fund Balance, Modified Accrual Basis 436,079
Fund Balance, Beginning 921,682
Fund Balance, Ending $ 514,598
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, 2023
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 $ 749,200 $ 749,200 $ 594,334 $ (154,866)
Expenditures
Current
:
General government
Judicial 347,111 347,111 376,341 (29,230)
Public safety
Police 693,646 693,646 596,498 97,148
Total expenditures 1,040,757 1,040,757 972,839 67,918
Deficiency of revenues under expenditures (291,557) (291,557) (378,505) (86,948)
Other Financing Sources (Uses)
Transfers in 354,557 354,557 358,634 (4,077)
Transfers out (63,000) (63,000) (63,000) -
Total other financing sources (uses) 291,557 291,557 295,634 (4,077)
Net change in fund balances $ - $ - (82,871) $ (91,025)
Adjustment for reconciling items to adjust from budgetary basis to modified accrual basis
Change in encumbrances (55,045)
Net Change in Fund Balance, Modified Accrual Basis (137,916)
Fund Balance, Beginning (106,650)
Fund Balance, Ending $ (244,566)
City of Prattville, Alabama
Statement of Net Position
Proprietary Funds
September 30, 2023
The accompanying notes are an integral part of these financial statements.
26
Business-Type Activities Governmental Activities
Wastewater Sanitation Total Enterprise Funds Internal Service fund
Internal Service Fund Assets
Current assets
Cash and cash equivalents $ 8,108,843 $ 218,517 $ 8,327,360 $ 976,495
Accounts receivable, net 585,758 242,654 828,412 189,124
Prepaid items 9,956 17,008 26,964 -
Total current assets 8,704,557 478,179 9,182,736 1,165,619
Noncurrent assets
Capital assets, not depreciated 5,310,991 387,654 5,698,645 -
Capital assets, net of accumulated depreciation 39,526,898 1,055,143 40,582,041 -
Total noncurrent assets 44,837,889 1,442,797 46,280,686 -
Total assets 53,542,446 1,920,976 55,463,422 1,165,619
Deferred outflows of resources Deferred outflows from pension 1,357,843 843,596 2,201,439 -
Liabilities
Current liabilities
Accounts payable 888,696 104,524 993,220 198,638
Accrued liabilities 39,780 21,644 61,424 197,030
Other liabilities 298,983 14,772 313,755 -
Retainage payable 120,380 - 120,380 -
Due to other funds 77,407 140,688 218,095 198
Current portion of long-term debt 1,009,000 - 1,009,000 -
Current portion of compensated absences 68,382 8,763 77,145 -
Total current liabilities 2,502,628 290,391 2,793,019 395,866
Noncurrent liabilities
Long-term debt, net 32,013,043 - 32,013,043 -
Compensated absences 122,728 34,420 157,148 -
Net pension liability 2,220,919 1,379,805 3,600,724 -
Total noncurrent liabilities 34,356,690 1,414,225 35,770,915 -
Total liabilities 36,859,318 1,704,616 38,563,934 395,866
Deferred inflows of resources
Deferred inflows from pension 327,677 203,578 531,255 -
Net position
Net investment in capital assets 11,695,466 1,442,797 13,138,263 -
Unrestricted (deficit) 6,017,828 (586,419) 5,431,409 769,753
Total net position $ 17,713,294 $ 856,378 $ 18,569,672 $ 769,753
City of Prattville, Alabama
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended September 30, 2023
The accompanying notes are an integral part of these financial statements.
27
Business-Type Activities Governmental Activities
Wastewater Sanitation Total Enterprise Funds Internal Service Fund
Operating revenues
Charges for services $ 7,126,651 $ 3,515,726 $ 10,642,377 $ 1,204,361
Operating expenses
Cost of sales and services 1,204,999 1,203,569 2,408,568 -
Salaries and benefits 1,936,551 1,329,872 3,266,423 -
Repairs and maintenance 343,796 311,109 654,905 -
Utilities 642,914 7,492 650,406 -
Insurance 104,457 68,074 172,531 -
Other 119,435 22,004 141,439 528,986
Depreciation 1,204,203 332,209 1,536,412 -
Benefits paid - - - 4,117,234
Total operating expenses 5,556,355 3,274,329 8,830,684 4,646,220
Operating Income (Loss) 1,570,296 241,397 1,811,693 (3,441,859)
Nonoperating revenues (expenses)
Interest income 57,924 84 58,008 252
Interest and fiscal charges (943,911) - (943,911) -
Other 3,500 (5,300) (1,800) -
Gain on disposals - 34,115 34,115 -
Total non-operating revenues (expenses) (882,487) 28,899 (853,588) 252
Income (loss) before contributions and transfers 687,809 270,296 958,105 (3,441,607)
Transfers in - - - 3,915,622
Transfers out (252,000) (240,625) (492,625) -
Change in Net Position 435,809 29,671 465,480 474,015
Net Position, Beginning 17,277,485 826,707 18,104,192 295,738
Net Position, Ending $ 17,713,294 $ 856,378 $ 18,569,672 $ 769,753
City of Prattville, Alabama
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2023
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 $ 7,381,310 $ 3,515,564 $ 10,896,874 $ -
Payments to suppliers (1,842,565) (1,557,748) (3,400,313) (4,568,281)
Payments to employees (1,910,411) (1,343,590) (3,254,001) -
Receipts from interfund services provided - - - 1,114,405
Net cash from (used for) operating activities 3,628,334 614,226 4,242,560 (3,453,876)
Cash Flows From (Used For) Noncapital Financing Activities
Transfers in - - - 3,915,622
Transfers out (252,000) (240,625) (492,625) -
Changes in due to/from other funds 73,793 36,958 110,751 - Net cash from (used for) noncapital financing activities (178,207) (203,667) (381,874) 3,915,622
Cash Flows From (Used For) Capital and Related Financing Activities
Acquisition and construction of capital assets (1,838,437) (490,800) (2,329,237) -
Interest and fiscal charges paid (950,471) (5,300) (955,771) -
Principal payments on long-term debt (982,500) - (982,500) -
Proceeds from sale of capital assets - 43,000 43,000 -
Transfers of restricted assets 1,127,890 - 1,127,890 -
Net cash from (used for) capital and related financing activities (2,643,518) (453,100) (3,096,618) -
Cash Flows From Investing Activities
Interest earned 61,424 84 61,508 252
Net cash from investing activities 61,424 84 61,508 252
Net Increase (Decrease) in Cash and Cash Equivalents 868,033 (42,457) 825,576 461,998
Cash and Cash Equivalents, Beginning of Year 7,240,810 260,974 7,501,784 514,497
Cash and Cash Equivalents, End of Year $ 8,108,843 $ 218,517 $ 8,327,360 $ 976,495
Reconciliation of Operating Income (Loss) to Net Cash Flows
From (Used for) Operating Activities
Operating income (loss) $ 1,570,296 $ 241,397 $ 1,811,693 $ (3,441,859)
Adjustments to reconcile operating income (loss) to net
cash from (used for) operating activities
Depreciation expense 1,204,203 332,209 1,536,412 -
(Increase) decrease in accounts receivable 254,659 (162) 254,497 (89,956)
(Increase) decrease in prepaid items 663 (307) 356 -
Increase (decrease) in pension related items 190,686 116,131 306,817 -
Increase (decrease) in accounts payable and accrued liabilities 407,827 (75,042) 332,785 77,939
Net cash from (used for) operating activities $ 3,628,334 $ 614,226 $ 4,242,560 $ (3,453,876)
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
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, 2023. 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, 2023. 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, 2023
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.
Government-wide and fund financial statements – The basic financial statements consist of the government-wide financial
statements and fund financial statements. Both sets of statements distinguish between governmental and business-type
activities. Government-wide financial statements are comprised of the statement of net position and the statement of activities.
For the most part, the effect of interfund activity has been removed from these statements. The exception to this is interfund
services provided and used which are eliminated in the consolidation process. Governmental activities, which normally are
supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business-
type activities, which rely to a significant extent on fees and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of 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.
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.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
31
Note 1 – Summary of Significant Accounting Policies (continued)
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.
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.
Additionally, the City reports the following blended component unit:
Historic Prattville Redevelopment Authority (HPRA) - The Historic Prattville Redevelopment Authority accounts for historic
district redevelopment activities.
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.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
32
Note 1 – Summary of Significant Accounting Policies (continued)
Under the terms of grant agreements, the City funds certain programs by a combination of specific cost-reimbursement grants,
categorical block grants, and general revenues. Thus, when program expenses are incurred, there are both restricted and
unrestricted 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.
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.
Proprietary fund financial statements - Proprietary funds are used to account for operations that are (a) financed and operated
in a manner similar to private business enterprises – where the intent of the governing body is that the costs (expenses, including
depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily
through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses
incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other
purposes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal
ongoing operations. All revenues and expenses not meeting this definition are reported as 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).
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
33
Note 1 – Summary of Significant Accounting Policies (continued)
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.
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.
Inventory - Governmental fund inventories are reported as an expenditure when purchased rather than capitalized as an
asset. The City has no significant inventories as of September 30, 2023; therefore, none are reported on the statement of net
position.
Inventory of the Prattville Airport Authority, a component unit, consists of aviation fuel and is valued at the lower of cost or
market determined on a first-in-first-out basis.
Restricted assets - Resources from federal and state grants/loans, appropriations and shared taxes, and drug confiscation
proceeds are classified as restricted assets on the statement of net position and the balance sheet.
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
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
34
Note 1 – Summary of Significant Accounting Policies (continued)
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 - 40 years 5,000
Furniture and equipment 5 - 20 years 5,000
Runways 8 - 25 years 5,000
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 12) and a deferred outflow of resources for postemployment benefit plans other
than pension (OPEB) related items (see Note 13). The Library, a component unit, has a deferred outflow related to its pension
plan.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
35
Note 1 – Summary of Significant Accounting Policies (continued)
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, 2023, the balances in the Capital Projects Fund and Judicial Special Revenue Fund
consisted of 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. Bond issuance costs, other than prepaid insurance, are expensed when incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance
costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on
debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
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.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
36
Note 1 – Summary of Significant Accounting Policies (continued)
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.
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, 2023, the General Fund Reserves bank
account contained $7,311,035.
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.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
37
Note 1 – Summary of Significant Accounting Policies (continued)
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, 2023:
Governmental Business-Type
Activities Activities Total
Capital assets, net $ 119,269,305 $ 46,280,686 $ 165,549,991
Construction payables (1,864,631) (120,380) (1,985,011)
GO warrants payable (12,770,000) - (12,770,000)
GO warrants related discount 212,087 - 212,087
Revenue warrants payables - (15,305,000) (15,305,000)
Revenue warrants premium - (128,287) (128,287)
Direct placement warrants payable (11,356,610) (17,588,756) (28,945,366)
Direct borrowing payable (4,314,442) - (4,314,442)
Direct borrowing related discount 36,531 - 36,531
Limited obligation warrant payable (1,425,206) - (1,425,206)
Unspent proceeds 9,735,842 - 9,735,842
$ 97,522,876 $ 13,138,263 $ 110,661,139
The City’s discretely presented component units’ net investment in capital assets as of September 30, 2023 is calculated as
follows:
Airport
Capital assets, net $ 8,991,466
Add: Note receivable - development bonds -
Less: Related outstanding debt (48,062)
$ 8,943,404
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 2023 financial statements
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. There was no impact of this pronouncement
to the City's financial statements.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
38
Note 1 – Summary of Significant Accounting Policies (continued)
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.
There was no impact of this pronouncement to the City's 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.
There was no impact of this pronouncement to the City's financial statements.
Pronouncements issued, but not yet effective
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.
In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures. The objective of this Statement is to provide
users of government financial statements with essential information about risks related to a government’s vulnerabilities due
to certain concentrations or constraints. This statement is effective in fiscal years beginning after June 15, 2024. The City is in
the process of evaluating the impact of this pronouncement on its financial statements.
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 2023, general government expenditures exceeded
appropriations in the Judicial Special Revenue Fund by $29,230 due to under budgeted special judges and prosecutors. Cultural
and recreational expenditures exceeded appropriations in the general fund by $319,575.
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.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
39
Note 2 – Stewardship, Compliance, and Accountability (continued)
Judicial Special
Revenue Fund General Fund
Net change in fund balance, modified accrual basis $ (82,871) $ 14,345,107
Encumbrances at beginning of the year - 1,019,447
Encumbrances at end of the year (55,045) (1,430,857)
Net change in fund balance, budgetary basis $ (137,916) $ 13,933,697
Deficit fund equity
Funds with deficit fund balance or net position are as follows:
Deficit Amount
Judicial Special Revenue Fund $ 189,521
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.
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.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
40
Note 4 - Receivables
Management has concluded that, except for ambulance billings receivable for which realization losses have been fully allowed
due to uncertainty of payment, 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, 2023:
Governmental Funds
Gas Tax Judicial
Capital Special Special
General Projects Revenue Revenue
Fund Fund Fund Fund
Receivables
Accounts $ 718,332 $ - $ - $ 78,636
Taxes 3,850,471 58,762 - -
Intergovernmental 55,876 1,358,092 49,666 -
$ 4,624,679 $ 1,416,854 $ 49,666 $ 78,636
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, 2023:
Proprietary Funds
Internal
Wastewater Sanitation Service
Fund Fund Fund
Receivables
Accounts $ 585,758 $ 242,654 $ 189,124
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
41
Note 5 – Capital Assets
Capital asset activity for the City’s governmental activities for the year ended September 30, 2023 was as follows:
Beginning Ending
Balances Increases Decreases Transfers Balances
Capital assets, not being depreciated
Land $ 5,539,694 $ - $ - $ - $ 5,539,694
Construction in progress 7,306,459 7,907,968 - (5,561,586) 9,652,841
Total capital assets, not being depreciated 12,846,153 7,907,968 - (5,561,586) 15,192,535
Capital assets, being depreciated
Buildings and improvements 16,629,715 682,226 152,534 43,200 17,202,607
Land improvements 6,192,465 71,000 - 76,977 6,340,442
Vehicles 10,086,413 490,204 142,514 - 10,434,103
Office, nonoffice, and computer equipment 8,848,227 509,569 258,719 - 9,099,077
Infrastructure 94,273,357 3,512,500 - 5,441,409 103,227,266
Total capital assets, being depreciated 136,030,177 5,265,499 553,767 5,561,586 146,303,495
Less accumulated depreciation
Buildings and improvements 3,352,171 428,379 111,534 - 3,669,016
Land improvements 5,039,645 386,449 - - 5,426,094
Vehicles 7,115,025 910,072 142,514 - 7,882,583
Office, nonoffice, and computer equipment 5,610,678 670,486 248,054 - 6,033,110
Infrastructure 17,521,552 1,694,370 - - 19,215,922
Total accumulated depreciation 38,639,071 4,089,756 502,102 - 42,226,725
Total capital assets, being
depreciated, net 97,391,106 1,175,743 51,665 5,561,586 104,076,770
Governmental activities
capital assets, net $ 110,237,259 $ 9,083,711 $ 51,665 $ - $ 119,269,305
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
42
Note 5 – Capital Assets (continued)
Capital asset activity for the City’s business-type activities for the year ended September 30, 2023 was as follows:
Beginning Ending
Balances Increases Decreases Transfers Balances
Capital assets, not being depreciated
Land $ 1,257,019 $ 49,000 $ - $ - $ 1,306,019
Construction in progress 2,758,303 1,634,323 - - 4,392,626
Total capital assets, not being depreciated 4,015,322 1,683,323 - - 5,698,645
Capital assets, being depreciated
Buildings and improvements 6,802,032 - 78,185 - 6,723,847
Land improvements 3,555,242 - - - 3,555,242
Vehicles 4,001,799 570,662 79,959 - 4,492,502
Office, nonoffice, and computer equipment 1,559,379 75,251 - - 1,634,630
Infrastructure 37,795,983 - - - 37,795,983
Total capital assets, being depreciated 53,714,435 645,913 158,144 - 54,202,204
Less accumulated depreciation
Buildings and improvements 4,044,522 168,134 69,300 - 4,143,356
Land improvements 2,748,995 123,496 - - 2,872,491
Vehicles 3,026,238 394,750 79,959 - 3,341,029
Office, nonoffice, and computer equipment 1,022,218 94,112 - - 1,116,330
Infrastructure 1,391,037 755,920 - - 2,146,957
Total accumulated depreciation 12,233,010 1,536,412 149,259 - 13,620,163
Total capital assets, being
depreciated, net 41,481,425 (890,499) 8,885 - 40,582,041
Business-type activities
capital assets, net $ 45,496,747 $ 792,824 $ 8,885 $ - $ 46,280,686
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
43
Note 5 – Capital Assets (continued)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities
General government $ 1,982,747
Public works 580,454
Public safety 1,165,548
Cultural and recreational 361,007
Total depreciation expense - governmental activities $ 4,089,756
Business-Type Activities
Wastewater $ 1,204,203
Sanitation 332,209
Total depreciation expense - business-type activities $ 1,536,412
Capital asset activity for the Library (a component unit) for the year ended September 30, 2023, was as follows:
Beginning Ending
Balances Increases Decreases Balances
Capital assets, being depreciated
Equipment $ 120,747 $ - $ - $ 120,747
Less accumulated depreciation 102,286 18,461 - 120,747
Total capital assets, being
depreciated, net $ 18,461 $ 18,461 $ - $ -
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
44
Note 5 – Capital Assets (continued)
Capital asset activity for the Authority (a component unit) for the year ended September 30, 2023 was as follows:
Beginning Ending
Balances Increases Decreases Balances
Capital assets, not being depreciated
Land $ 3,374,336 $ - $ - $ 3,374,336
Construction in progress - 1,556,263 - 1,556,263
Total capital assets, not being depreciated 3,374,336 1,556,263 - 4,930,599
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 6,798 - 1,437,806
Furniture and equipment 648,746 44,823 10,000 683,569
Total capital assets, being depreciated 11,444,598 51,621 10,000 11,486,219
Less accumulated depreciation
Land improvements 1,267,075 66,399 - 1,333,474
Runways 4,726,535 266,402 - 4,992,937
Buildings and improvements 719,730 33,346 - 753,076
Furniture and equipment 302,046 52,152 8,333 345,865
Total accumulated depreciation 7,015,386 418,299 8,333 7,425,352
Total capital assets, being
depreciated, net 4,429,212 (366,678) 1,667 4,060,867
Total capital assets, net $ 7,803,548 $ 1,189,585 $ 1,667 $ 8,991,466
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
45
Note 6 – Long-Term Debt
Long-term debt activity for the fiscal year ended September 30, 2023 was as follows:
Beginning Ending Due Within
Balances Additions Reductions Balances One Year
Governmental Activities
General obligation warrants $ 13,120,000 $ - $ 350,000 $ 12,770,000 $ 390,000
Debt issuance discounts (223,233) - (11,146) (212,087) -
Total general obligation warrants 12,896,767 - 338,854 12,557,913 390,000
Warrants from direct placements 12,297,382 - 940,772 11,356,610 959,325
Notes from direct borrowings 4,552,269 - 237,828 4,314,441 239,814
Debt issuance discounts (39,427) - (2,896) (36,531) -
Limited obligation warrant 1,441,900 - 16,695 1,425,205 -
Total long-term debt 31,148,891 - 1,531,253 29,617,638 1,589,139
Compensated absences 1,473,937 727,295 683,560 1,517,672 516,652
Net pension liability 17,309,693 15,409,624 3,030,721 29,688,596 -
Total OPEB liability 3,288,738 592,917 253,852 3,627,803 327,618
Governmental activities long-term liabilities $ 53,221,259 $ 16,729,836 $ 5,499,386 $ 64,451,709 $ 2,433,409
Business-Type Activities
General obligation warrants $ 15,355,000 $ - $ 50,000 $ 15,305,000 $ 55,000
Debt issuance premiums 134,848 - 6,561 128,287 -
Total general obligation warrants 15,489,848 - 56,561 15,433,287 55,000
Warrants from direct placements 18,521,256 - 932,500 17,588,756 954,000
Total long-term debt 34,011,104 - 989,061 33,022,043 1,009,000
Compensated absences 228,182 357,463 350,352 235,293 77,145
Net pension liability 2,126,941 1,904,560 430,777 3,600,724 -
Business-type activities long-term liabilities $ 36,366,227 $ 2,262,023 $ 1,770,190 $ 36,858,060 $ 1,086,145
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
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, 2023:
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% 2,885,000
$13,120,000 $ 12,770,000
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% $ 15,305,000
Debt service requirements to maturity for general obligation warrants outstanding as of September 30, 2023 were as are as
follows:
Governmental Activities
Year Ending September 30 Principal Interest Total
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 260,000 479,633 739,633
2029-2033 1,475,000 2,220,603 3,695,603
2034-2038 1,810,000 1,888,593 3,698,593
2039-2043 2,205,000 1,489,453 3,694,453
2044-2048 2,725,000 973,794 3,698,794
2049-2052 2,650,000 304,198 2,954,198
Totals $ 12,770,000 $ 9,441,854 $ 22,211,854
Business-Type Activities
Year Ending September 30 Principal Interest Total
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 55,000 556,883 611,883
2029-2033 315,000 2,757,860 3,072,860
2034-2038 370,000 2,704,210 3,074,210
2039-2043 6,505,000 2,042,900 8,547,900
2044-2048 7,840,000 705,074 8,545,074
Totals $ 15,305,000 $ 11,007,025 $ 26,312,025
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
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 and direct borrowings as of September 30, 2023:
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% $ 3,960,000
Direct borrowing Financed purchase-FNB 195,464 6/20/2019 10/15/2023 0.00% 315,349
Direct borrowing Financed purchase-Zoll 726,905 10/10/2016 12/1/2026 2.69% 39,093
$ 5,702,369 $ 4,314,442
Direct placement 2016-CWSRF-DL $ 415,000 8/1/2016 2/15/2036 2.20% $ 290,000
Direct placement 2017-CWSRF-DL 240,000 4/1/2017 2/15/2038 2.20% 190,000
Direct placement 2018B-CWSRF-DL 315,000 11/1/2018 8/15/2038 2.20% 245,000
Direct placement 2020-CWSRF-DL 1,445,500 8/1/2020 2/15/2041 2.20% 1,298,744
Direct placement 2021-CWSRF-DL 315,000 3/15/2021 2/15/2041 2.20% 290,000
Direct placement 2022-CWSRF-DL 710,500 2/1/2022 2/15/2042 2.20% 682,500
Direct placement Truist Bank 3,200,000 7/30/2019 4/30/2029 3.01% 1,956,160
Direct placement Trustmark Bank 3,130,000 5/11/2020 9/1/2035 1.76% 2,503,996
Direct placement PNC 4,650,000 5/11/2020 12/1/2035 2.04% 3,900,210
$14,421,000 $11,356,610
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% $ 13,825,000
Direct placement 2020-CWSRF-DL 2,684,500 8/1/2020 2/15/2041 2.20% 2,496,256
Direct placement 2022-CWSRF-DL 1,319,500 2/1/2022 2/15/2042 2.20% 1,267,500
$ 20,804,000 $ 17,588,756
Debt Service requirements to maturity for the notes from direct borrowings outstanding as of September 30, 2023, were as
follows:
Governmental Activities
Year Ending September 30 Principal Interest Total
2024 $ 239,814 $ 128,498 $ 368,312
2025 207,762 123,908 331,670
2026 209,857 119,115 328,972
2027 217,008 114,115 331,123
2028 140,000 108,774 248,774
2029-2033 740,000 489,085 1,229,085
2034-2038 850,000 376,291 1,226,291
2039-2043 1,010,000 219,653 1,229,653
2044-2047 700,000 38,606 738,606
Totals $ 4,314,441 $ 1,718,045 $ 6,032,486
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
48
Note 6 – Long-Term Debt (continued)
Debt Service requirements to maturity for the notes from direct placements outstanding as of September 30, 2023, were as
follows:
Governmental Activities
Year Ending September 30 Principal Interest Total
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 1,030,668 147,911 1,178,579
2029-2033 3,780,580 461,390 4,241,970
2034-2038 2,117,919 132,578 2,250,497
2039-2042 487,000 18,151 505,151
Totals $ 11,356,610 $ 1,585,464 $ 12,942,074
Business-Type Activities
Year Ending September 30 Principal Interest Total
2024 $ 954,000 $ 375,809 $ 1,329,809
2025 977,250 354,566 1,331,816
2026 992,250 332,901 1,325,151
2027 1,018,750 310,780 1,329,530
2028 1,042,000 288,112 1,330,112
2029-2033 5,606,006 1,081,839 6,687,845
2034-2038 6,205,500 434,225 6,639,725
2039-2042 793,000 30,031 823,031
Totals $ 17,588,756 $ 3,208,263 $ 20,797,019
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,
2023, the City had redeemed $169,284 of the outstanding warrants. The balance on the warrant at September 30, 2023 is
$1,425,205. 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, 2023 was as
follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Bond from direct placement $ 31,394 $ 27,500 $ 10,832 $ 48,062 $ 12,351
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
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. Additionally, 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 October 1, 2022. The note
bears an interest rate of 6.75% and matures on September 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, 2023 are as follows:
Prattville Airport Authority
Year Ending September 30 Principal Interest Total
2024 $ 12,351 $ 2,708 $ 15,059
2025 12,681 1,837 14,518
2026 13,469 1,049 14,518
2027 9,561 277 9,838
Totals $ 48,062 $ 5,871 $ 53,933
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
2024 $ 125,000 $ 122,314 $ 247,314
2025 130,000 117,451 247,451
2026 130,000 114,754 244,754
2027 135,000 111,905 246,905
2028 140,000 108,774 248,774
2029-2033 740,000 489,085 1,229,085
2034-2038 850,000 376,291 1,226,291
2039-2043 1,010,000 219,653 1,229,653
2044-2046 700,000 38,606 738,606
Totals $ 3,960,000 $ 1,698,833 $ 5,658,833
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, 2023, the debt limit was $112,444,644 and the net debt applicable to the limit was $25,444,807.
Note 7 – Short-Term Debt
On July 1, 2022 and August 1, 2022, the City issued $1,000,000 General Obligation Revenue Warrants, Series 2022B and
$3,000,000 General Obligation Revenue Warrants 2022C, respectively. Both lines of credit bear an interest rate of 2.75%, with
interest due monthly. The maturity dates are June 30, 2024 and July 31, 2024, respectively. At September 30, 2023, the balances
of the warrants were $0.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
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 $13,196 in lease revenue and $5,453 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 $107,154 as of September 30, 2023.
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 $3,519 in lease revenue and $10,111 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 $205,321 as of September 30, 2023.
The schedule of future minimum payments as of September 30, 2023 is as follows:
Total
Year Ending September 30 Principal Interest Payment
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 22,612 11,085 33,697
2029-2033 75,137 42,013 117,150
2034-2038 59,794 29,023 88,817
2039-2043 86,975 12,305 99,280
2044 6,905 67 6,972
Totals $ 329,481 $ 148,332 $ 477,813
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, 2023 consisted of the following: Amount
Receivable Fund Payable Fund
General Fund Wastewater Fund $ 77,407
General Fund Sanitation Fund 140,688
General Fund Internal Service Fund 198
General Fund Judicial Special Revenue Fund 25,398
General Fund Capital Projects Fund 220,229
Capital Projects Fund General Fund 61,682
Totals $ 525,602
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
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, 2023: Interfund
Receivable From Payable To Balances
Business-Type Activities Governmental Activities $ 218,095
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, 2023:
Fund Transferred To Fund Transferred From Amount Principal Purpose
General Fund Capital Projects Fund $ 3,023,293 Transfer Revenue
Gas Tax Special Revenue Fund General Fund 1,598,605 Transfer Revenue
Capital Projects Fund General Fund 4,242,565 Project Costs
Debt Service Fund General Fund 1,568,178 Debt Service
Debt Service Fund Capital Projects Fund 615,687 Transfer Revenue
Judicial Special Revenue Fund General Fund 358,634 Transfer Revenue
Internal Service Fund General Fund 3,359,997 Self-Insurance
Internal Service Fund Judicial Special Revenue Fund 63,000 Self-Insurance
Internal Service Fund Wastewater Fund 252,000 Self-Insurance
Internal Service Fund Sanitation Fund 240,625 Self-Insurance
Total $ 15,322,584
The following is a reconciliation of interfund transfers in the government-wide statement of activities for the year ended
September 30, 2023: Transfer
Transferred To Transferred From Balance
Governmental Activities Business-Type Activities $ 492,625
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, 2023
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 $564,605 during the fiscal
year ended September 30, 2023.
As of September 30, 2023, commitments to contractors on capital projects were as follows:
Commitments $ 29,452,625
Spent-to-date 6,311,496
Remaining commitments $ 23,141,129
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 15 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) Eight 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. One full time employee of a participating municipality or city in ERS pursuant to the Code of Alabama 1975, Section 36-
27-6.
d. One full time employee of a participating county in ERS pursuant to the Code of Alabama 1975, Section 36-27-6.
e. One full time employee or retiree of a participating employer in ERS pursuant to the Code of Alabama 1975, Section
36-27-6.
f. One full time employee of a participating employer other than a municipality, city or county in ERS pursuant to the
Code of Alabama 1975, Section 36-27-6.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
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 886 local participating employers. The ERS membership includes approximately 108,890
participants and the City’s membership includes 546 participants. As of September 30, 2022, membership consisted of:
ERS City
Retirees and beneficiaries currently receiving benefits 30,598 156
Terminated employees entitled to but not yet receiving benefits 2,286 8
Terminated employees not entitled to a benefit 18,689 51
Active members 57,278 331
Post-DROP retired members still in active service 39 -
Total 108,890 546
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
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, 2023, the City’s active employee contribution rate was 8.50% of Covered payroll,
and the City’s average contribution rate to fund the normal and accrued liability costs was 10.85% of pensionable payroll.
The City’s contractually required contribution rate for the year ended September 30, 2023, was 10.85% of pensionable pay for
Tier 1 employees, and 7.64% of pensionable pay for Tier 2 employees. These required contribution rates are based upon the
actuarial valuation as of September 30, 2020, 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 $2,301,968 for the year ended September 30, 2023.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
55
Note 12 – Pension Plan (continued)
Net pension liability - The City of Prattville’s net pension liability was measured as of September 30, 2022 and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as September 30, 2021 rolled forward
to September 30, 2022 using standard roll-forward techniques as shown in the following table:
Actual Before Actual After
Expected Plan Changes Plan Changes
(a) TPL as of September 30, 2021 $ 81,586,429 $ 83,088,004 $ 83,131,713
(b) Discount rate 7.45% 7.45% 7.45%
(c) Entry age normal cost for the period October 1, 2021
–September 30, 2022 1,864,962 1,864,962 1,866,345
(d) Transfers among employers -
– 389,877 389,877
(e) Actual benefit payments and refunds for the period
October 1, 2021 – September 30, 2022 (4,303,276) (4,303,276) (4,303,276)
(f) TPL as of September 30, 2022
=[(a) x (1+(b))] + (c) + (d) + [(e) x (1+0.5 x (b))] $ 85,066,007 $ 86,289,573 $ 86,337,921 13,853,206 (g) Difference between expected and actual $ 1,223,566 (h) Less liability transferred for immediate recognition 389,877 (i) Experience (gain)/loss = (g) – (h) $ 1,613,443
(j) Difference between actual TPL before/after Plan Changes $ 48,348
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, 2021 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, 2023
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, 2023
57
Note 12 – Pension Plan (continued)
Changes in the net pension liability - The changes in the components of the net pension liability of the City for the year ended
September 30, 2023, were as follows:
Total Pension Plan Fiduciary Net Pension
Liability (a) Net Position (b) Liability (a-b)
Balances at October 1, 2021 $ 81,586,429 $ 62,149,796 $ 19,436,633
Changes for the year
Service cost 1,864,962 - 1,864,962
Interest 5,917,892 - 5,917,892
Changes of assumptions 48,348 - 48,348
Difference between expected &
actual experience 1,613,443 - 1,613,443
Contributions - employer - 2,119,391 (2,119,391)
Contributions - employee - 1,342,107 (1,342,107)
Net investment income - (7,869,539) 7,869,539
Benefits paid & refunds of
employee contributions (4,303,276) (4,303,276) -
Administrative expense - - -
Transfers among employers (389,877) (389,877) -
Net changes 4,751,492 (9,101,194) 13,852,686
Balances at September 30, 2022 $ 86,337,921 $ 53,048,602 $ 33,289,319
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 $ 44,171,289 $ 33,289,319 $ 24,211,081
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, 2022 and the current sharing pattern of costs between employer
and employee.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
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, 2022. The supporting
actuarial information is included in the GASB Statement No. 68 Report for the ERS prepared as of September 30, 2022. 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, 2023, the City recognized pension expense of $5,337,739. At September 30, 2023, 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 $ 4,579,705 $ 467,677
Change of assumptions 2,614,756 -
Net difference between projected and actual earnings on plan investments 10,856,261 4,443,868
Employer contributions subsequent to measurement date 2,301,968 -
Total $ 20,352,690 $ 4,911,545
City contributions subsequent to the measurement date of $2,301,968 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, 2024. 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 Amount
2024 $ 3,231,066
2025 2,475,794
2026 2,412,204
2027 3,859,062
2028 1,014,374
Thereafter 146,677
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
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, 2023, 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 roll-forward as of
October 1, 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, 2023, 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 $3,627,803, using a measurement date as of September 30, 2023.
Total OPEB Lability
Balance at September 30, 2022 $ 3,288,738
Changes for the year
Service cost 87,487
Interest 127,408
Differences between expected and actual experience 378,022
Changes of assumptions (15,095)
Benefit payments (238,757)
Net changes 339,065
Balance at September 30, 2023 $ 3,627,803
The City’s total OPEB liability was determined by an actuarial valuation as of October 1, 2022 with the actuary using standard
techniques to roll forward the liability to the measurement date.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
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 October 1, 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
(3.09%) or 1-percentage-point higher (5.09%) than the current discount rate:
1% Decrease
(3.09%)
Discount Rate
(4.09%)
1% Increase
(5.09%)
City’s total OPEB liability $ 4,401,021 $ 3,627,803 $ 3,029,689
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 $ 3,097,721 $ 3,627,803 $ 4,317,977
OPEB expense and deferred outflows of resources and deferred inflows of resources related to OPEB - For the year ended
September 30, 2023, the City recognized OPEB expense of $388,468. At September 30, 2023, 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 $ 604,977 $ 189,886
Change of assumptions 539,500 367,948
Total $ 1,144,477 $ 557,834
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 Amount
2023 $ 173,573
2024 173,573
2025 54,039
2026 (26,388)
2027 87,100
Thereafter 124,746
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
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, 2023, 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’s medical insurance fund - The City maintains the employees’ medical insurance fund (an internal service fund) to
account for and finance its uninsured risks of loss. Liabilities of the fund are reported when it is probable that a loss has occurred
and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but
not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount, as it depends on many
complex factors. The estimate of the claims liability includes amounts for incremental claim adjustments related to specific
claims and other claim adjustments regardless of whether they are allocated to specific claims. Estimated recoveries are another
component of the claims liability estimate.
An excess coverage insurance policy covers individual claims in excess of $125,000. Changes in the balances of claims liabilities
during the past two years are as follows:
Employee Medical Insurance Fund 2023 2022
Unpaid claims, beginning of fiscal year $ 197,000 $ 205,500
Incurred claims (including IBNRs) 2,280,670 3,326,425
Claim payments (2,275,300) (3,334,925)
Unpaid claims, ending $ 202,370 $ 197,000
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.
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.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
62
Note 15 – Tax Abatements (continued)
Sales and use taxes abated – fiscal year 2023 $ 1,219,900
Sales and use taxes rebated – fiscal year 2023 $ 1,663,355
Property taxes abated – fiscal year 2023 $ 378,156
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 2023 totaled $2,093,883. 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 – 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, 2023 was $823,403.
The City appropriated $350,000 to the Library (a component unit) and $120,000 to the Airport Authority (a component unit)
during the fiscal year ended September 30, 2023. These appropriations made were for operating and capital subsidies.
Note 17 – 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.
City of Prattville, Alabama
Notes to Financial Statements
September 30, 2023
63
Note 18 – Subsequent Events
The City has evaluated subsequent 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. All subsequent events requiring
recognition as of September 30, 2023, have been incorporated into these financial statements.
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
2022 2021 2020 2019 2018 2017 2016 2015 2014
Total Pension Liability
Service cost $ 1,864,962 $ 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 5,917,892 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 48,347 - - - - - - - -
Differences between actual 1,613,443 3,963,462 1,151,805 227,237 (1,581,197) 870,621 832,419 (581,675) -
& expected experience
Changes of assumptions - 3,405,671 282,503 - 352,614 - 2,954,211 - -
Benefit payments, including refunds
of employee contributions (4,303,276) (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 (389,877) 681,807 (167,361) 99,369 (10,272) (124,282) (33,807) - -
Net change in total pension liability 4,751,491 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 81,586,430 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) 86,337,921 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 2,119,391 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 1,342,107 1,144,429 1,118,799 901,330 880,032 859,821 902,821 806,208 755,114
Net investment income (7,869,539) 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 (4,303,276) (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 (389,877) 681,807 (167,361) 99,369 (10,271) (124,282) (33,807) (153,992) (148,504)
Net change in plan fiduciary net position (9,101,194) 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 62,149,796 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) 53,048,602 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) $ 33,289,319 $ 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 % 61.44% 76.18% 72.49% 74.29% 77.31% 73.96% 71.03% 73.05% 76.29%
of the total pension liability
Covered 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 $ 13,328,666
Net pension liability as a % of covered payroll 173.29% 111.89% 117.01% 112.91% 96.96% 111.27% 112.67% 99.22% 88.52%
Notes to 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
2023 2022 2021 2020 2019 2018 2017 2016 2015
Actuarially determined contribution $ 2,301,968 $ 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 2,301,968 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 payroll $ 19,638,842 $ 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 11.72% 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 2023 were based on September 30, 2020 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 7.45%, 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
2023 2022 2021 2020 2019 2018
Total OPEB Liability
Service cost $ 87,487 $ 104,737 $ 110,550 $ 98,274 $ 55,465 $ 60,832
Interest 127,408 83,804 76,196 73,522 92,566 81,711
Difference between actual and expected experience 378,022 (272,634) 217,312 331,826 106,044 (12,564)
Change of assumptions (15,095) (408,295) 265,248 385,378 417,628 (128,538)
Benefit payments (238,757) (233,507) (204,907) (205,502) (38,938) (36,908)
Net change in total OPEB liability 339,065 (725,895) 464,399 683,498 632,765 (35,467)
Total OPEB liability - beginning 3,288,738 4,014,633 3,550,234 2,866,736 2,233,971 2,269,438
Total OPEB liability - ending 3,627,803 3,288,738 4,014,633 3,550,234 2,866,736 2,233,971
Covered-employee payroll $ 18,462,872 $ 17,752,762 $ 16,453,345 $ 15,820,524 $ 15,115,616 $ 14,534,246
Total OPEB liability as a percentage of covered-employee payroll 19.65% 18.53% 24.40% 22.44% 18.97% 15.37%
Notes to Schedule There are no assets accumulated in a GASB compliant trust.
The discount rate changed from 4.02% as of September 30, 2022 to 4.09% as of September 30, 2023.
There were no changes of benefits for the year ended September 30, 2023.
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, 2023
67
Variance with
Final Budget
Budgeted Amounts Actual Amounts Positive
Original Final Budgetary Basis (Negative)
Revenues Lodging taxes $ 580,000 $ 580,000 $ 614,941 $ 34,941
Intergovernmental revenues 8,780,078 8,780,078 2,997,948 (5,782,130)
Interest 4,000 4,000 497,935 493,935
Total revenues 9,364,078 9,364,078 4,110,824 (5,253,254)
Expenditures Capital outlay 28,016,500 28,166,500 7,394,572 20,771,928
Total expenditures 28,016,500 28,166,500 7,394,572 20,771,928
Deficiency of revenues over expenditures (18,652,422) (18,802,422) (3,283,748) 15,518,674
Other Financing Sources (Uses)
Issuance of long-term debt 400,000 400,000 - (400,000)
Transfers in 2,204,000 2,354,000 4,242,565 1,888,565
Transfers out (615,663) (615,663) (3,638,980) (3,023,317)
Total other financing sources (uses) 1,988,337 2,138,337 603,585 (1,534,752)
Net change in fund balance $ (16,664,085) $ (16,664,085) (2,680,163) $ 13,983,922
Adjustment for reconciling items to adjust from
budgetary basis to modified accrual basis Change in encumbrances (148,004)
Net Change in Fund Balance, Modified Accrual Basis (2,828,167)
Fund Balance, Beginning 16,435,187
Fund Balance, Ending $ 13,607,020
See accompanying notes to schedules of revenues, expenditures, and changes in fund balance – budget to actual.
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, 2023
68
Variance with
Final Budget
Budgeted Amounts Actual Amounts Positive
Original Final Budgetary Basis (Negative)
Revenues
Interest income $ - $ - $ 2,080 $ 2,080
Expenditures
Debt service Interest and fiscal charges 780,238 780,238 780,265 (27)
Principal payments 1,403,600 1,403,600 1,403,600 -
Total expenditures 2,183,838 2,183,838 2,183,865 (27)
Deficiency of revenues under expenditures (2,183,838) (2,183,838) (2,181,785) 2,053
Other Financing Sources (Uses)
Transfers in 2,183,838 2,183,838 2,183,865 27
Transfers out - - - -
Total other financing sources 2,183,838 2,183,838 2,183,865 27
Net change in fund balances $ - $ - 2,080 $ 2,080
Net Change in Fund Balance, Modified Accrual Basis 2,080 Fund Balance, Beginning -
Fund Balance, Ending $ 2,080
See accompanying notes to schedules of revenues, expenditures, and changes in fund balance – budget to actual.
City of Prattville, Alabama
Notes to Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget to Actual
For the Year Ended September 30, 2023
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 2023, transfers out exceeded appropriations in the Capital Project Fund due to
underbudgeted reimbursements to the General Fund related to drawdowns on the Parks and Recreation – Tier I Projects.
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 $ (2,680,163)
Encumbrances at beginning of the year 1,996
Encumbrances at end of the year (150,000)
Net change in fund balance, budgetary basis $ (2,828,167
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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental Activities
Net investment in capital assets $ 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 $ 97,522,876
Restricted 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 2,288,120
Unrestricted (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 25,210,298
Total governmental activities
net position
$ 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 $ 125,021,294
Business-Type Activities
Net investment in capital assets $ 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 $ 13,138,263
Unrestricted 3,281,842 838,425 666,650 1,767 2,399,394 3,299,714 4,077,092 4,035,922 5,587,678 5,431,409
Total business-type activities
net position
$ 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 $ 18,569,672
Primary Government
Net investment in capital assets $ 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 $ 110,661,139
Restricted 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 2,288,120
Unrestricted (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 30,641,707
Total primary government
activities net position
$ 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 $ 143,590,966
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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Expenses
Governmental activities
General government $ 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 $ 13,671,768
Public safety 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 24,044,135
Public works 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 10,586,147
Cultural and recreational 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 4,820,823
Economic development - - - - 1,828,093 - - - - -
Interest on long-term debt 1,727,232 917,762 943,460 853,853 589,467 565,292 591,323 982,040 754,894 1,024,201
Total governmental activities expenses 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 54,147,074
Program Revenues
Governmental activities
Charges for services
General government 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 9,532,507
Public safety 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 1,944,507
Cultural and recreational 251,562 257,548 289,834 296,242 306,400 494,584 393,829 614,175 895,941 896,985
Operating grants and contributions 71,025 17,820 135,291 31,943 231,359 219,891 1,869,454 2,855,387 2,654,166 2,706,833
Capital grants and contributions 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 6,495,847
Total governmental activities program revenues 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 21,576,679
Total primary government net expense (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) (32,570,395)
General Revenues and Other Changes in Net Position
Governmental activities
Sales and use taxes 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 37,928,844
Real and personal property taxes 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 3,892,055
Lodging taxes 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 3,727,962
Local gasoline taxes 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 1,135,865
Alcoholic beverage taxes 408,900 273,579 356,953 378,800 374,545 390,690 416,068 478,991 509,160 498,411
Rental taxes 346,089 377,964 388,975 378,341 393,905 484,343 406,811 460,804 527,524 622,395
Tobacco taxes 134,656 136,220 121,636 117,974 140,400 126,962 126,449 120,463 112,831 110,626
Excise taxes 65,949 79,780 77,436 175,042 146,943 222,161 - - - -
Unrestricted shared revenues - - - - - - 453,074 496,879 1,080,208 1,762,606
Investment earnings 164,964 62,586 93,022 94,168 79,558 90,186 130,579 56,800 135,391 789,053
Miscellaneous revenue 359,099 460,002 500,249 491,229 602,010 366,270 436,520 1,066,548 497,773 1,568,926
Gain (loss) on disposal of assets 54,747 36,300 3,320 - (46,495) 177,306 62,244 33,488 (28,232)
Transfers - - - 50,015 - 85,000 81,247 (814,950) 505,000 492,625
Total governmental activities general revenues
and other changes in net position 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 52,501,136
Total governmental activities change in net position $ 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 $ 19,930,741
City of Prattville, Alabama
Schedule 2
Changes in Net Position
(accrual basis of accounting)
73
2014 2015 2016 2017 2018 2019 2020 2021 2022 2022
Business-type Activities
Expenses
Wastewater $ 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 $ 6,500,266
Sanitation 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 3,274,329
Total business-type activities expenses 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 9,774,595
Revenues
Charges for services
Wastewater 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 7,126,651
Sanitation 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 3,515,726
Operating grants and contributions
Wastewater - - - - - - 873 - - -
Capital grants and contributions
Wastewater - - - - 224,640 805,763 - - - -
Total business-type activities revenues 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 10,642,377
Total business-type activities net program revenue 954,375 977,733 788,579 1,261,175 893,875 2,025,108 1,834,493 1,097,545 1,770,123 867,782
Other Changes in Net Position
Investment earnings - - - - 99,721 79,095 24,673 6,439 6,557 58,008
Miscellaneous revenue 5,055 4,382 4,852 7,760 27,261 - 4,097 - 281,154 (1,800)
Gain (loss) on disposal of assets - 42,306 18,247 293,006 3,388 41,000 217,494 - 2,291 34,115
Transfers - - - (50,015) - (85,000) (81,247) 814,950 (505,000) (492,625)
Total business-type activities other changes in net position 5,055 46,688 23,099 250,751 130,370 35,095 165,017 821,389 (214,998) (402,302)
Total business-type activities change in net position $ 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 $ 465,480
Total primary government change in net position $ 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 $20,396,221
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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund
Nonspendable $ 114,704 $ 136,566 $ 166,583 $ 146,829 $ 145,829 $ 900,379 $ 741,470 $ 133,803 $ 166,053 $ 165,704
Restricted 348,192 517,624 619,222 806,185 402,981 603,026 1,005,025 1,227,653 1,377,181 1,433,876
Committed 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 10,038,465
Assigned 468,838 792,720 822,832 1,184,299 1,793,517 999,672 1,559,260 5,072,532 2,776,878 4,309,544
Unassigned 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 24,191,066
Total general fund $ 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 $ 40,138,655
All Other Governmental Funds
Nonspendable $ 2,299 $ 377 $ 283 $ 254 $ 169 $ 288 $ 188 $ 230 $ 124 $ 125
Restricted 670,828 1,050,795 1,181,744 729,012 946,556 1,076,146 2,944,028 1,621,247 13,918,609 10,590,087
Committed 305,771 601,804 913,792 200,806 104,129 460,313 452,076 390,510 388,716 574,659
Assigned 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 3,499,567
Unassigned - - (14,167) (44,029) - - (27,297) (43,169) (106,774) (244,691)
Total all other governmental funds $ 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 $ 14,419,747
City of Prattville, Alabama
Schedule 4
Changes in Fund Balances of Governmental Funds
(modified accrual basis of accounting)
75
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Revenues
Taxes $ 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 $47,916,158
Licenses and permits 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 8,328,146
Intergovernmental revenues 1,428,058 2,220,039 1,461,037 1,131,325 1,414,775 3,617,042 3,221,766 7,249,609 815,011 746,797
Charges and fees for services 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 2,016,059
Fines and forfeitures 614,714 590,999 518,090 626,590 813,092 934,357 805,478 899,445 5,088,919 6,798,841
Investment earnings 164,250 62,162 92,888 94,079 79,384 90,001 130,450 56,653 135,235 788,801
Miscellaneous revenues 356,984 422,314 386,370 378,870 275,290 286,797 145,736 275,066 497,773 1,556,704
Total revenues 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 68,151,506
Expenditures
Current
General governmental 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 10,719,583
Public safety 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 18,654,724
Public works 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 8,266,652
Cultural and recreation 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 3,849,208
Economic development - - - - 1,828,093 - - - - -
Capital outlay 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 9,660,967
Debt service
Principal payments 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 1,545,295
Interest and fiscal charges 1,750,499 1,192,171 1,209,120 1,099,060 911,226 750,908 623,270 993,009 412,392 902,557
Bond issuance costs 93,782 139,216 - - - 27,000 13,500 24,500 173,514 -
Total expenditures 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 53,598,986
Excess of revenues over (under) expenditures 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 14,552,520
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 23,433
Transfers in 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 11,406,962
Transfers out (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) (14,829,959)
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 9,955,000 12,280,000 - - - - - - - -
Proceeds from capital lease - - 258,310 726,905 - 195,464 - - - -
Payment to refunded bonds escrow agent (10,067,843) (13,445,879) - - - - - - - -
Bond premium (discount) 206,625 1,305,095 - - - - - - (223,233) -
Total other financing sources (uses) (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 (3,399,564)
Net change in fund balance $ 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 $11,152,956
Debt service as a percentage of noncapital expenditures 16.70% 18.70% 13.58% 19.56% 23.19% 20.71% 11.76% 32.09% 3.86% 5.57%
City of Prattville, Alabama
Schedule 5
Net Taxable Sales by Category
76
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Apparel stores $ 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 $ 90,594,912
Food stores 80,331,913 83,355,426 84,503,834 85,828,743 85,742,536 94,239,183 107,465,358 108,929,609 119,819,188 123,436,262
Automotive 72,277,636 97,027,886 108,971,570 114,691,542 123,070,580 120,718,622 131,555,912 166,304,094 175,597,864 187,115,468
Manufacturing machine 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 18,914,257
Restaurants 99,976,397 104,080,558 107,071,561 112,935,379 111,626,351 118,488,337 113,172,363 140,189,393 147,225,583 162,564,595
Home furnishings and appliances 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 8,221,584
Building materials 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 87,352,789
Service stations 17,757,144 17,840,129 18,850,543 19,178,452 20,140,152 22,612,745 24,584,319 25,513,187 27,563,772 27,295,994
Other retail stores 256,775,123 266,688,466 287,794,171 280,178,657 315,093,693 343,652,800 374,810,657 453,441,857 513,987,141 553,430,742
Totals $ 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 $1,179,772,686 $1,258,926,603
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
2021 2022 2023
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 21 $3,084,975 9.51% 3.96% 21 $3,140,276 8.82% 3.86% 21 $ 3,170,822 8.36% 4.60%
Food stores 7 3,812,536 11.76% 10.32% 7 4,193,672 11.77% 10.24% 7 4,320,269 11.39% 10.02%
Automotive 33 831,520 2.56% 35 877,989 2.47% 31 935,577 2.47%
Machine 28 67,007 0.21% 37 111,107 0.31% 36 141,857 0.37%
Restaurants 122 4,906,629 15.13% 1.04% 118 5,152,895 14.47% 1.01% 120 5,689,761 15.00%
Home furnishings and appliances 11 151,659 0.47% 11 287,081 0.81% 11 287,755 0.76%
Building materials 8 2,805,050 8.65% 7.75% 8 2,899,413 8.14% 7.19% 8 3,057,348 8.06% 7.34%
Service stations 25 892,962 2.75% 25 964,732 2.71% 25 955,360 2.52%
Other retail stores 1,584 15,870,465 48.96% 10.13% 1,603 17,989,550 50.50% 8.20% 1,625 19,370,076 51.07% 7.43%
Totals 1,839 $32,422,803 100.00% 1,865 $35,616,715 100.00% 1,884 $37,928,825 100.00%
2018 2019 2020
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 20 $ 2,762,742 11.28% 4.82% 21 $ 2,811,745 10.73% 4.82% 18 $2,631,703 9.54% 4.26%
Food stores 7 3,000,989 12.25% 10.89% 7 3,298,371 12.59% 10.72% 7 3,761,288 13.63% 11.70%
Automotive 27 615,353 2.51% 25 603,593 2.30% 28 657,780 2.38%
Machine 28 25,408 0.10% 31 18,214 0.07% 27 26,706 0.10%
Restaurants 118 3,906,922 15.95% 110 4,147,092 15.83% 116 3,961,033 14.36% 1.02%
Home furnishings and appliances 10 580,364 2.37% 1.64% 10 549,524 2.10% 1.39% 11 162,704 0.59%
Building materials 7 1,871,219 7.64% 6.64% 7 1,947,758 7.44% 6.46% 8 2,408,566 8.73% 7.73%
Service stations 24 704,905 2.88% 25 791,446 3.02% 25 860,451 3.12%
Other retail stores 1,579 11,028,280 45.02% 8.95% 1,582 12,027,849 45.92% 8.74% 1,542 13,118,373 47.55% 9.07%
Totals 1,820 $24,496,182 100.00% 1,818 $26,195,592 100.00% 1,782 $27,588,604 100.00%
City of Prattville, Alabama
Schedule 6
Sales Tax Revenue Payers by Category
78
2015 2016 2017
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 $ 2,846,373 12.89% 7.70% 26 $
2,905,661 12.49% 7.40% 26 $ 2,784,878 11.94% 5.04%
Food stores 8 2,917,440 13.21% 11.70% 8 2,957,634 12.71% 11.40% 8 3,004,006 12.88% 11.52%
Automotive 24 485,139 2.20% 27 544,858 2.34% 25 573,458 2.46%
Machine 22 48,583 0.22% 25 29,042 0.12% 26 20,308 0.09%
Restaurants 104 3,642,820 16.50% 108 3,747,505 16.11% 113 3,952,738 16.95%
Home furnishings and appliances 12 589,919 2.67% 1.80% 11 620,070 2.67% 1.80% 10 566,659 2.43% 1.65%
Building materials 8 1,589,606 7.20% 6.40% 7 1,723,729 7.41% 6.60% 7 1,947,103 8.35% 6.83%
Service stations 25 624,405 2.83% 23 659,769 2.84% 24 671,246 2.88%
Other retail stores 1,261 9,334,096 42.28% 8.25% 1,383 10,072,796 43.31% 7.50% 1,632 9,806,253 42.02% 9.33%
Totals 1,486 $22,078,381 100.00% 1,618 $
23,261,064 100.00% 1,871 $23,326,649 100.00%
2014
Percent of
Number Percentage Tax Remitted
of Tax of Total Tax by Top 10
Filers Liability Liability Taxpayers
Apparel stores 22 $ 2,732,187 12.91% 5.49%
Food stores 8 2,811,617 13.28% 11.62%
Automotive 22 361,388 1.71%
Machine 23 124,994 0.59%
Restaurants 107 3,499,174 16.53%
Home furnishings and appliances 11 551,347 2.60% 1.81%
Building materials 8 1,480,982 7.00% 6.06%
Service stations 25 621,500 2.94%
Other retail stores 1,181 8,987,129 42.44% 10.50%
Totals 1,407 $21,170,318 100.00%
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
2014 3.5% 2.0% 4.0% 9.5%
2015 3.5% 2.0% 4.0% 9.5%
2016 3.5% 2.0% 4.0% 9.5%
2017 3.5% 2.0% 4.0% 9.5%
2018 3.5% 2.0% 4.0% 9.5%
2019 3.5% 2.0% 4.0% 9.5%
2020 3.5% 2.0% 4.0% 9.5%
2021 3.5% 2.0% 4.0% 9.5%
2022 3.5% 2.0% 4.0% 9.5%
2023 3.5% 2.0% 4.0% 9.5%
City Direct Elmore State of Total Sales
Fiscal Year Rate County District Tax Alabama Tax
2014 3.5% 1.0% 1.0% 4.00% 9.5%
2015 3.5% 1.0% 1.0% 4.00% 9.5%
2016 3.5% 1.0% 1.0% 4.00% 9.5%
2017 3.5% 1.0% 1.0% 4.00% 9.5%
2018 3.5% 1.0% 1.0% 4.00% 9.5%
2019 3.5% 1.0% 1.0% 4.00% 9.5%
2020 3.5% 1.0% 1.0% 4.00% 9.5%
2021 3.5% 1.0% 1.0% 4.00% 9.5%
2022 3.5% 1.0% 1.0% 4.00% 9.5%
2023 3.5% 1.0% 1.0% 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)
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% 1.19% 529
2023 23,914,523 1,425,205 4,277,910 29,617,638 2.35% * *
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)
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% 1.18% 576
2023 33,022,043 33,022,043 2.62% * *
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)
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%
2.27%
1,103
2023 56,936,566 1,425,205 4,277,910 62,639,681 4.98% * *
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) See the Net Taxable Sales by Category on page 76 for net taxable sales data.
(2)Population data can be found in the schedule of Demographics and Economic Statistics on page 84.
* 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)
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% *
2023 56,936,566 - 56,936,566 4.52% *
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, 2023
82
Estimated Estimated Share
Debt Percentage of Direct and
Governmental Unit Outstanding Applicable (a) Overlapping Debt
Debt repaid with property taxes: Autauga County $ 7,782,307 46.75% $ 3,638,229
Debt repaid with property taxes: Elmore County 46,656,189 6.09% 2,841,362
Subtotal, overlapping debt 6,479,590
City of Prattville, Alabama direct debt 29,617,638
Total direct and overlapping debt $ 36,097,228
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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Net assessed value of taxable property $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 $ 562,223,220
Debt limit 69,672,496 71,763,512 73,568,244 75,781,300 79,908,192 81,272,348 83,839,136 89,832,556 101,020,616 112,444,644
Total net debt applicable to limit 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 25,444,807
Legal debt margin $ 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 $ 86,999,837
Total net debt applicable to the limit
as a percentage of debt limit 38.04% 51.69% 49.50% 42.21% 30.34% 26.56% 28.91% 12.28% 26.55% 22.63%
Legal Debt Margin Calculation for Fiscal Year 2023
Assessed value $ 562,223,220
Debt limit (20% of total assessed value) $ 112,444,644
Less portions not chargeable to the debt
limit:
Direct borrowings 4,314,441
Direct placements 8,360,366
General obligation warrants 12,770,000
Total net debt applicable to limit 25,444,807
Legal debt margin $ 86,999,837
-
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
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 59,759 2,951,557 49,391 39.00 8,944 (21-22) 2.30%
2023 * * * * 8,892 (22-23) 2.00%
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
2014 2015 2016 2017 2018
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 1,091 7.05% 1,091 6.95% 1,100 6.90% 1,076 6.64% 1,097 6.60%
International Paper 550 3.55% 550 3.55% 584 3.67% 600 3.70% 636 3.83%
Prattville Baptist Hospital 350 2.26% 350 2.23% 365 2.29% 399 2.46% 397 2.39%
Kinedyne * * 74 0.47% 166 1.04% 184 1.14% 221 1.33%
City of Prattville, Alabama 336 2.40% 354 2.37% 347 2.42% 349 2.38% 377 2.22%
Walmart 330 2.13% 330 2.10% 340 2.13% 320 1.97% 320 1.93%
YMCA * * * * 105 0.66% 133 0.82% 112 0.67%
Autauga County 202 1.31% 202 1.29% 190 1.19% 190 1.17% 210 1.26%
Prattville Health and Rehabilitation 200 1.29% 187 1.19% 155 0.97% 155 0.96% 193 1.16%
Bass Pro * * * * 212 1.33% 260 1.60% 182 1.10%
Central Alabama Electric Cooperative * * * * 120 0.75% 120 0.74% 120 0.72%
Long Lewis * * * * * * 83 0.51% 120 0.72%
Fras-Le 156 1.01% 147 0.94% 96 0.60% 80 0.49% 73 0.44%
Kasai NA, Inc. (M-Tek, Inc through 2015) 138 0.89% 138 0.88% 110 0.69% 112 0.69% 90 0.54%
LoneStar Plastics 91 0.59% 91 0.58% 84 0.53% * * * *
Totals 3,444 22.48% 3,514 22.55% 3,974 25.17% 4,061 25.27% 4,148 24.91%
2019 2020 2021 2022 2023
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 1,078 6.35% 1,213 7.64% 1,310 7.98% 1,200 6.84% 1,172 6.52%
International Paper 636 3.74% 636 4.01% 600 3.65% 675 3.85% 700 3.89%
Prattville Baptist Hospital 500 2.94% 500 3.15% 649 3.95% 590 3.36% 550 3.06%
Kinedyne 415 2.44% 415 2.61% 210 1.28% 170 0.97% 132 0.73%
City of Prattville, Alabama 358 2.27% 383 2.41% 411 2.50% 419 2.39% 433 2.41%
Walmart 312 1.84% 375 2.36% * * 375 2.14% 375 2.09%
YMCA 200 1.18% 218 1.37% 243 1.48% 377 2.15% 310 1.72%
Autauga County 210 1.24% 200 1.26% 200 1.22% 208 1.18% 200 1.11%
Medline * * 160 1.01% 260 1.58% 255 1.45% 260 1.45%
Prattville Health and Rehabilitation 185 1.09% 150 0.94% 200 1.22% 200 1.14% 181 1.01%
Bass Pro 176 1.04% 150 0.94% 166 1.01% 146 0.83% 148 0.82%
Central Alabama Electric Cooperative 128 0.75% 130 0.82% 140 0.85% 160 0.91% 152 0.85%
Target * * 119 0.75% 119 0.72% 119 0.68% 115 0.64%
Long Lewis 100 0.59% 100 0.63% 78 0.48% 98 0.56% 115 0.64%
James Hardie Building Products * * 98 0.62% 230 1.40% 233 1.33% 255 1.42%
Fras-Le 80 0.47% 62 0.39% 60 0.37% 70 0.40% 60 0.33%
Kasai NA, Inc. (M-Tek, Inc through 2015) * * 60 0.38% 60 0.37% 65 0.37% 60 0.33%
Alabama Baptist State Board of Missions 90 0.53% 60 0.38% 67 0.41% 67 0.38% 67 0.37%
Pearson Industries * * * * * * 24 0.14% 25 0.14%
Inteplast Group * * * * * * 33 0.19% 36 0.20%
Totals 4,468 26.47% 5,029 31.67% 5,003 30.47% 5,484 31.26% 5,392 30.00%
Source: Prattville Area Chamber of Commerce.
Average number employed in City for 2023 was 17,975 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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
General government
Executive 3 3 3 4 5 5 6 6 6 6
Legislative 7 7 7 7 7 7 7 7 7 7
Finance 6 7 7 7 7 7 6 7 7 7
City clerk 3 3 3 3 4 3 3 2 3 3
Human resources 3 4 4 4 5 5 5 5 6 6
Judicial 6 6 6 6 6 7 7 7 7 7
Information technology 2 3 3 3 3 3 3 3 3 3
Vehicle maintenance 5 6 6 6 6 4 5 5 4 4
Public safety
Police
Officers 82 82 82 82 89 84 87 95 96 96
Civilians 9 10 10 10 8 8
8 8 7 10 8
Fire
Officers 83 83 83 83 83 82 82 87 90 91
Civilians 2 2 2 3 3 3
3 3 3 3 3
Building division 4 6 6 6 6 4
4 4 4 4 4
Public works
Public works 4 4 5 6 6 6 6 6 6
Engineering 9 9 9 8 10 9 11 11 11 11
Facilities maintenance 4 8 8 8 11 10 10 10 10 10
Planning and development 4 5 5 4 5 6 7 7 7 7
Sanitation 34 36 34 28 25 21 23 24 24 26
Wastewater 25 25 21 23 28 22 25 24 24 24
Urban management 30 30 29 34 38 28 30 32 28 28
Culture and recreation
Parks and recreation 14 14 14 13 20 31 42 56 60 72
Performing/creative arts 1 1 1 2 2 3 3 3 3 4
Totals 336 354 347 349 377 358 383 411 419 433
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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
General government
Building permits issued
Residential* 131 161 165 189 185 242 332 299 239 235
Residential remodel 343 333 147 203 295 264 339 262 309 45
Commercial 12 17 10 12 23 19 8 12 18 18
Commercial buildout, remodel, addition 56 74 71 41 61 49 48 60 80 32
Building inspections conducted 5,688 4,148 4,830 4,767 5,260 5,927 7,387 8,142 5,826 5,365
Building plan reviews 441 659 650 873 808 921 908 738 806 681
Public safety
Police
Physical arrests 2,757 2,342 2,829 2,146 2,287 3,952 3,594 3,603 2,537 1,921
Parking violations 86 98 28 8 14 43 1
Traffic violations 4,897 4,418 5,701 8,163 8,367 5,884 3,298 3,759 2,636 2,659
Fire
Emergency responses 5,893 5,118 4,874 5,394 5,405 5,447 5,857 6,390 6,241 6,531
Fires extinguished 113 105 113 43 104 103 101 110 101 118
Inspections 2,775 2,791 2,500 3,477 2,603 2,564 2,605 2,249 2,433 2,701
Public works
Potholes repaired 2,000 2,500 2,500 2,000 2,550 2,750 1,750 2,000 2,200 2,700
Street resurfacing (miles) 7 5 8 1 8 22 31 6
Wastewater
Average daily sewage treatment (millions of gallons):
Autauga Creek 1.62 1.47 1.54 1.66 1.79 1.81 2.00 2.89 2.26 2.46
Pine Creek 1.88 1.81 1.96 2.08 2.13 2.45 2.43 2.02 2.27 2.47
Refuse collection
Garbage (tons per day) 38.50 36.33 45.00 44.60 49.60 43.33 45.47 46.04 47.01 46.18
Trash (yards per day) 189.00 260.00 220.00 61.00 28.00 204.00 287.00 289.50 210.00 199.0
Recyclables (tons per day) 1.00 1.00 1.00 1.00 1.00 1.00 2.00 1.00 2.00 3.00
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
2014 2015 2016 2017 2018 2019 2020 2021 2022 202
Function/Program
Public safety
Police
Stations 1 1 1 1 1 1 1 1 1 2
Patrol cars 81 84 78 80 95 95 95 93 114 109
Motorcycles 10 10 10 10 10 9 9
Fire
Stations 3 3 3 3 3 3 3 4 4 4
Fire Engines 5 5 5 5 5 5 5 5 6 6
Ladder Trucks 1 1 1 2 2 2 2 2 2 2
Heavy Rescue 1 1 1 1 1 1 1 1 1 1
Ambulances 7 7 6 6 6 6 6 6 6 7
Refuse collection
Trash trucks 6 6 6 6 6 6 4 6 7 6
Garbage trucks 8 8 9 7 7 7 5 7 6 7
Recyclable trucks 2 2
Parkan Truck 1 1 1 1 1 1 1 2 2
Public works
Streets (miles) 212 217 220 223 228 230 232 234 240 242
Highways (miles) 23 23 23 23 23 23 23 23 23 23
Streetlights 2,450 2,475 2,510 2,525 2,550 2,575 2,600 2,650 2,750 2,775
Traffic signal heads 270 270 286 286 286 286 286 287 287 287
Cultural and recreation
Acreage 354 354 354 354 354 357 357 357 368 368
Playgrounds 10 10 10 10 10 10 10 10 10 11
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.