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HomeMy WebLinkAboutMN-B&A-2000-10-25 BUDGET AND ADMINISTRATION COMMITTEE OCTOBER 25, 2000 7 :30 P.M. COMMON COUNCIL CHAMBERS AGENDA Statements from the Public Amendments to Tonight' s Agenda A. Common Council 1 . Request Funds for Human Rights Commission Dinner - Discussion/Possible Resolution B. Fire Department 1 . Request Funds to Relocate Remaining Aerial Service in 100 block of Dryden Road - Discussion/Possible Resolution C. Finance/Controller 1 . Request Approval of 1999 Single Audit - Resolution D. Reports 1 . Mayor' s Report 2 . Council Members' Announcements 3 . Next Month' s Meeting: November 29, 2000 lc CITY OF ITHACA Cit .�t 310 West Green Street Ithaca, New York 14850-5497 � 3 OFFICE OF THE FIRE CHIEF �Po� O Telephone: 607/272-1234 Fax: 607/272-2793 ! pL� C� C� OdC� CCT 1 9 2000 MEMORANDUM By To: Dominick Cafferillo From: Brian H. Wilbur Re: B&A Agenda Item V Date: 19 OCT 00 Please consider the following item for the B & A Committee meeting agenda for their next regular meeting. NYSEG has notified us they will be relocating the remaining aerial service in the 100 block of Dryden Road to underground service. This means poles will be removed after all utilities using them have relocated. As we have fire alarm cable on the poles, we are required to relocate to underground as well. This is an unanticipated and unbudgeted expense. Fire Alarm Superintendent Srnka has been working with NYSEG to determine the scope of work and to develop a plan for us to accomplish the work. NYSEG has been very cooperative in trying to facilitate our needs. Despite this, we will incur costs. The subcontractor NYSEG has hired to do most of the work is in the process of developing cost estimates of the work, including that specially required for us. Those numbers may be ready this Friday or Monday, so they are not available for inclusion in this memo. Once we have estimates in hand, we will make them available to you immediately. Please let me know if you have any questions or concerns prior to the meeting. cc: T. Dorman R. Srnka "An Equal Opportunity Employer with a commitment to workforce diversification." �a Finance/Controller - Approval of 1999 City of Ithaca Single Audit RESOLVED, That the Single Audit Report for the period of January 1, 1999 through December 31, 1999, prepared by the accounting firm of Ciaschi, Dietershagen, Little and Mickelson, C. P.A. ' s, be accepted to comply with all of the City' s applicable Federal Single Audit and related Audit Requirements . it BUDGET AND ADMINISTRATION COMMITTEE OCTOBER 25, 2000 7 :30 P.M. COMMON COUNCIL CHAMBERS AGENDA Statements from the Public Amendments to Tonight' s Agenda A. Common Council 1 . Request Funds for Human Rights Commission Dinner - Discussion/Possible Resolution B. Fire Department 1 . Request Funds to Relocate Remaining Aerial Service in 100 block of Dryden Road - Discussion/Possible Resolution C. Finance/Controller 1 . Request Approval of 1999 Single Audit - Resolution D. Reports 1 . Mayor' s Report 2 . Council Members' Announcements 3 . Next Month' s Meeting: November 29, 2000 w F IN' CITY OF ITHACA 310 West Green Street Ithaca, New York 14850-5497 i f OFFICE OF THE FIRE CHIEF Telephone: 607/272.1234 Fax: 607/272-2793 l MEMORANDUM To: Dominick Cafferillo From: Brian H. Wilbur Re: B &A Agenda Item Date: 19 OCT 00 Please consider the following item for the B & A Committee meeting agenda for their next regular meeting. NYSEG has notified us they will be relocating the remaining aerial service in the 100 block of Dryden Road to underground service. This means poles will be removed after all utilities using them have relocated. As we have fire alarm cable on the poles, we are required to relocate to underground as well. This is an unanticipated and unbudgeted expense. Fire Alarm Superintendent Srnka has been working with NYSEG to determine the scope of work and to develop a plan for us to accomplish the work. NYSEG has been very cooperative in trying to facilitate our needs. Despite this, we will incur costs. The subcontractor NYSEG has hired to do most of the work is in the process of developing cost estimates of the work, including that specially required for us. Those numbers may be ready this Friday or Monday, so they are not available for inclusion in this memo. Once we have estimates in hand, we will make them available to you immediately. Please let me know if you have any questions or concerns prior to the meeting. cc: T. Dorman R. Srnka "An Equal Opportunity Employer with a commitment to workforce diversification." IL r% x LZ '71 Finance/Controller - Approval of 1999 City of Ithaca Single Audit RESOLVED, That the Single Audit Report for the period of January 1, 1999 through December 31, 1999, prepared by the accounting firm of Ciaschi, Dietershagen, Little and Mickelson, C. P.A. ' s, be accepted to comply with all of the City' s applicable Federal Single Audit and related Audit Requirements . John H,Dietershagen, C.P.A. John E. Little, C.P.A. Jerry E. Mickelson, C.P.A. Ciaschi • Dietershagen • Little • Mickelson, LLP Thomas K.van Derzee,C.P.A. Certified Public Accountants and Consultants Debbie Conley Jordan,C.P.A. Patrick S.Jordan,C.P.A. Duane R. Shoen,C.P.A. Frederick J. Ciaschi, C.P.A. Dennis G.Jones,C.P.A. (1958-1996) Common Council City of Ithaca Ithaca, New York We have audited the general purpose financial statements of the City of Ithaca for the year ended December 31, 1999, and have issued our report thereon dated July 14, 2000. Professional standards require that we provide you with the following information related to our audit Our Responsibility under Generally Accepted Auditing Standards and OMB Circular A-133 As stated in our engagement letter dated December 22, 1999, our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable, but not absolute, assurance about whether the general purpose financial statements are free of material misstatement. Because of the concept of reasonable assurance and because we did not perform a detailed examination of all transactions, there is a risk that material errors,fraud, or other illegal acts may exist and not be detected by us. In planning and performing our audit, we considered the City of Ithaca's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. We also considered internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. As part of obtaining reasonable assurance about whether the City of Ithaca's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit. Also, in accordance with OMB Circular A-133, we examined, on a test basis, evidence about the City of Ithaca's compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement applicable to each of its major federal programs for the purpose of expressing an opinion on the City of Ithaca's compliance with those requirements. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the City of Ithaca's compliance with those requirements. CORTLAND ITHACA WATIGNS GLEN 18 Tompkins Street Suite 103, 118 Prospect Street 221 N. Franklin Street Cortland, New York 13045 Ithaca, New York 14850 Watkins Glen, New York 14891 607-753-7439 607-272-4444 607-535-4443 www.cdlm.com Significant Accounting Policies Management has the responsibility for selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the City of Ithaca are described in Note 1 to the general purpose financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year. We noted no transactions entered into by the City of Ithaca during the year that were both significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there is a lack of authoritative guidance or consensus. Accounting Estimates Accounting estimates are an integral part of the general purpose financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the general purpose financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements was the liability for compensated absences. Management's estimate of compensated absences is based on various assumptions. We evaluated the key factors and assumptions used to develop compensated absences in determining that it is reasonable in relation to the financial statements taken as a whole. Significant Audit Adjustments For purposes of this letter, professional standards define a significant audit adjustment as a proposed correction of the general purpose financial statements that, in our judgement, may not have been detected except through our auditing procedures. These adjustments may include those proposed by us but not recorded by the City of Ithaca that could potentially cause future financial statements to be materially misstated, even though we have concluded that such adjustments are not material to the current financial statements. I We proposed no audit adjustments that could, in our judgement, either individually or in the aggregate, have a significant effect on the City of Ithaca's financial reporting process. Disagreements with Management i For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the general purpose financial statements or the auditors'report. We are pleased to report that no such disagreements arose during the course of our audit. r r Consultation with Other Independent Accountants j In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a"second opinion"on certain situations. If a consultation involves application of an accounting principle to the City of Ithaca's general purpose financial statements or a determination of the type of auditors' opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. -2- Issues Discussed Prior to Retention of Independent Auditors We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City of Ithaca's auditors. However,these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing our audit. We would like to thank you and your staff for the cooperation and support given us during the course of the audit. We appreciate the opportunity to be of service to you and look forward to our continued involvement. This report is intended solely for the information and use of the Common Council, management, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. July 14,2000 Ithaca, New York I i I -3- John H., Dietershagen, C.P.A. John E. Little,C.P.A. Jerry E. Mickelson,C.P.A. CiaSChi • Dietershagen • Little • Mickelson, LLP Thomas K.Van Derzee,C.P.A. Certified Public Accountants and Consultants Debbie Conley Jordan,C.P.A. Patrick S.Jordan,C.P.A. Duane R.Shoen,C.P.A. Frederick J. Ciaschi, C.P.A. Dennis G.Jones,C.P.A. (1958-1996) Common Council City of Ithaca Ithaca, New York In planning and performing our audit of the general purpose financial statements of the City of Ithaca for the year ended December 31, 1999, we considered the City's internal control structure to determine our auditing procedures for the purpose of expressing an opinion on the general purpose financial statements and not to provide assurance on the internal control structure. Governmental Accounting Standards Board Statement No.34 This Statement which was issued in June, 1999, establishes financial reporting standards for state and local governments, including states, cities, towns, villages, and special purpose governments such as school districts and public utilities. The Statement drastically changes reporting requirements for local governments. It establishes that the basic financial statements and required supplementary information (RSI)for general purpose governments should consists of: • Management's discussion and analysis(MD&A). MD&A should introduce the basic financial statements and provide an analytical overview of the government's financial activities. Although it is RSI, governments are required to present MD&A before the basic financial statements. �I • Basic financial statements.The basic financial statements should include: • Government-wide financial statements, consisting of a statement of net assets and a statement of activities. Prepared using the economic resources measurement focus and the accrual basis of accounting, these statements should report all of the assets, liabilities, revenues, expenses, and gains and losses of the government. Fiduciary activities, whose resources are not available to finance the government's programs, should be excluded from the government-wide statements. CORTLAND ITHACA WATKINS GLEN 18 Tompkins Street Suite 103, 118 Prospect Street 221 N. Franklin Street Cortland, New York 13045 Ithaca, New York 14850 Watkins Glen, New York 14891 607-753-7439 607-272-4444 607-535-4443 www.cdlm.com e • Fund financial statements consist of a series of statements that focus on information about the government's major governmental and enterprise funds, including its blended component units. Fund financial statements also should report information about a government's fiduciary funds and component units that are fiduciary in nature. • Notes to the financial statements consist of notes that provide information that is essential to a user's understanding of the basic financial statements. • Required supplementary information (RSI). In addition to MD&A, this Statement requires budgetary comparison schedules to be presented as RSI along with other types of data as required by previous GASB pronouncements. This Statement also requires RSI for governments that use the modified budgetary comparison schedules to be presented as RSI along with other types of data as required by previous GASB pronouncements. This Statement also requires RSI for governments that use the modified approach for reporting infrastructure assets. • Effective Date and Transition The requirements of this Statement are effective in three phases based on a governments total annual revenues in the first fiscal year ending after June 15, 1999. Based on the City's revenues for the year ended June 30, 1999, GASB#34 will be effective for the fiscal year 2003 statement. Due to some of the comparative requirements in the MD&A, we would recommend that the City be prepared to accumulate information needed to comply with GASB#34 as of June 30,2002. The amount of time that will be needed to implement GASB #34 is very difficult to estimate. Some of the changes, especially in the capital asset area, are going to be extremely timeconsuming. This letter does not affect our report dated July 14, 2000, on the general purpose financial statements of the City of Ithaca. This report is intended solely for the information and use of the Common Council, management, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. July 14, 2000 Ithaca, New York I L CITY OF ITHACA Ithaca, New York Financial Report ► December 31, 1999 L L L I L L L L L. CITY OF ITHACA ` DECEMBER 31. 1999 General Purpose Financial Statements: Independent Auditors' Report ...................................................................................................................... 1-1a L Combined Balance Sheet-All Fund Types, Account Groups, and ComponentUnits ................................................................................................................................... 2-3 L Combined Statement of Revenues, Expenditures, and Changes in Fund Balances- All Governmental Fund Types, Expendable Trust Funds, and Component Units ................................. 4 LCombined Statement of Revenues, Expenditures, and Changes in Fund Balances- Budget and Actual-General and Special Revenue Funds ................................................................... 5-5a LCombined Statement of Revenues, Expenses, and Changes in Fund Balance- NonexpendableTrust Fund ................................................................................................................... 6 LStatement of Cash Flows-Nonexpendable Trust Fund .............................................................................. 7 Notes to Financial Statements ..................................................................................................................... 8-27 Supplemental Information-Combining Fund Financial Statements: Combining Balance Sheet-Special Revenue Funds .................................................. ............................... 28-28a Combining Statement of Revenues, Expenditures, and Changes in Fund Balances- SpecialRevenue Funds ......................................................................................................................... 29-29a i Report Required Under Government Auditing Standards: Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .................................................................................................... 30-31 Reports Required Under the Single Audit Act(OMB Circular A-133): L I Report on Compliance with Requirements Applicable to Each Major Program and Internal Control Over Compliance in Accordance with OMB Circular A-133 32-33 Schedule of Expenditures of Federal Awards .............................................................................................. 34 Notes to Schedule of Expenditures of Federal Awards ............................................................................... 35 Schedule of Findings and Questioned Costs ............................................................................................... 36 i i L. i i L. i L John H. Dietershagen, C.P.A. John E. Little,C.P.A. Jerry E. Mickelson, C.P.A. Ciaschi • Dietershagen • Little • Mickelson, LLP Thomas K.van Derzee,C.P.A. Certified Public Accountants and Consultants Debbie Conley Jordan, C.P.A. Patrick S.Jordan,C.P.A. Duane R. Shoen,C.P.A. Frederick J. Ciaschi, C.P.A. L Dennis G.Jones,C.P.A. (1958-1996) L L i L INDEPENDENT AUDITORS' REPORT Common Council j City of Ithaca i. Ithaca, New York We have audited the accompanying general purpose financial statements of the City of Ithaca, as of and for the year ended December 31, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Ithaca's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United L States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. L In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Ithaca, as of December 31, 1999, and the results of its operations and the cash flows of its nonexpendable trust funds for the year then ended, in conformity with generally accepted accounting principles. 4 In accordance with Government Auditing Standards, we have also issued a report dated July 14, 2000, on our consideration of the City of Ithaca's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit i" performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. i CORTLAND ITHACA WATKINS GLEN 18 Tompkins Street Suite 103, 118 Prospect Street 221 N. Franklin Street Cortland, New York 13045 Ithaca, New York 14850 Watkins Glen, New York 14891 607-753-7439 607-272-4444 607-535-4443 i` www.cdlm.com John H. Dietershagen,C.P.A. John E. Little,C.P.A. Ciaschi • Dietersha en • Little • Mickelson LLP Jerry E. Mickelson,C.P.A. g � Thomas K.Van Derzee,C.P.A. Certified Public Accountants and Consultants Debbie Conley Jordan, C.P.A. Patrick S.Jordan,C.P.A. Duane R. Shoen,C.P.A. Frederick J. Ciaschi, C.P.A. i Dennis G.Jones,C.P.A. (1958-1996) 1.. i L INDEPENDENT AUDITORS' REPORT Common Council City of Ithaca Ithaca, New York We have audited the accompanying general purpose financial statements of the City of Ithaca, as of and for the year ended December 31, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Ithaca's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about �. whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. L In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Ithaca, as of December 31, 1999, and the results of its operations and the cash flows of its nonexpendable trust funds for the year then ended, in conformity with generally accepted i accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated July 14, 2000, on our consideration of the City of Ithaca's internal control over financial reporting and our tests of its compliance with L certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. L CORTLAND ITHACA WATKINS GLEN 18 Tompkins Street Suite 103, 118 Prospect Street 221 N. Franklin Street Cortland, New York 13045 Ithaca, New York 14850 Watkins Glen, New York 14891 L 607-753-7439 607-272-4444 607-535-4443 www.cdlm.com �.r �• Our audit was performed for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The supplemental financial information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of the City of Ithaca. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required'by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the general purpose financial statements of the City of Ithaca. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. L July 14, 2000 i Ithaca, New York L I `. I � I L I L , j V w 1 L l.. L,. l CITY OF ITHACA COMBINED BALANCE SHEET ALL FUND TYPES,ACCOUNT GROUPS,AND COMPONENT UNITS DECEMBER 31,1999 Primary Government Fiduciary Governmental Fund Types Fund Types General Account Groups Special Capital Debt Trust& Long-Term Component ASSETS AND OTHER DEBITS General Revenue Projects Service Agency Debt Fixed Assets Unit Unrestricted Cash $ 926,092 $ 2,577,693 $ 1,096,150 $ 37,605 S 285,743 $ $ $ 1,016,934 Restricted Cash Investments 3,670,604 2,016,060 15,029,431 214,967 147,943 2,847,306 Taxes Receivable(Net) 790,828 Due From Other Funds 180,175 974,785 Due From State and Federal Governments 373,930 176,522 165,508 Due From Other Governments 1,307,982 190,562 13,947 Prepaid Expenses Other Receivables,Net 951,050 3,232,553 60,835 Inventories 154,131 248,642 Restricted Assets Fixed Assets 54,469,309 40,213,545 Deferred Expenditures Provisions Reserved in Debt Service 1,227,357 Provision to be Made in Future Budgets 16,990,022 1,463,784 Total Assets $ 8,354,792 $ 8,251,470 $ 16,481,651 $ 1,227,357 433,686 $ 18,217,379 $ 54,469,309 $ 45,616,351 LIABILITIES.FUND EQUITY,AND OTHER CREDITS Liabilities Accounts Payable $ 559,045 $ 134,078 $ 340,514 $ $ $ $ $ 76,096 Accrued Liabilities 35,182 Notes Payable Tax Anticipation Notes Revenue Anticipation Notes Budget Notes Bond Anticipation Notes 19,005,260 Capital Notes Bonds Payable 16,568,160 1,463,784 Bond Interest and Matured Bonds Payable Due to Other Funds 92,256 1,062,704 Due to Other Governments 946,646 285,555 12,593 Due to Employees'Retirement System 549,614 Installment Purchase Debt Judgments and Claims Payable Compensated Absences 251,812 1,099,605 Other Liabilities 85,699 4,138 Deferred Compensation Overpayments 382,655 1,877 1,200 Deferred Revenues 979,644 2,168,218 21,000 Total Liabilities Carried Forward 3,119,802 2,681,984 20,443,660 85,699 18,217,379 1,578,811 See Independent Auditors'Report and Notes to Financial Statements -2- CITY OF ITHACA COMBINED BALANCE SHEET ALL FUND TYPES,ACCOUNT GROUPS,AND COMPONENT UNITS DECEMBER 31.1999 Primary Government Fiduciary Governmental Fund Types Fund Types General Account Groups Special Capital Debt Trust and Long-Term Component General Revenue Projects Service Agency Debt Fixed Assets Unit Total Liabilities Brought Forward $ 3,119,802 $ 2,681,984 $ 20,443,660 $ $ 85,699 $ 18,217,379 $ $ 1,578,811 FUND EQUITY AND OTHER CREDITS Eac Investment in General Fixed Assets 54,469,309 40,213,545 Fund Balances-Reserved Reserved for Encumbrances 416,769 513,928 28,556 Reserved for Inventory and Supplies 154,131 248,642 Reserved for Taxes Raised Outside of Tax Limit Reserved for Insurance 1,850,476 110,972 36,369 Reserved for Debt 1,227,357 Reserved for Minority Interest Capital Reserve 4,265,288 1,356,959 Reserved for Highway Capital Projects Reserved for Unemployment Insurance Reserved for Trusts 347,987 Reserved for Workers'Compensation Reserved for Retirement System Credits Total Reserved 2,421,376 873,542 4,265,288 1,227,357 347,987 1,421,884 Fund Balances-Unreserved Appropriated-Ensuing Years Budget 704,892 1,278,584 773,382 Unappropriated 2,108,722 4,695,944 _(9,505,881) 1,628,729 Total Unreserved 2,813,614 4,695,944 (8,227,297) 2,402,111 Total Fund Balances 5,234,990 5,569,486 _(3,962,009) 1,227,357 347,987 3,823,995 Total Fund Equity and Other Credits 5,234,990 5,569.486 (3,962,009) 1,227,357 347,987 54,469,309 44,037,540 Total Liabilities,Fund Equity, and Other Credits $ 8,354,792 $ 8,251,470 $ 16,481,651 $ 1,227,357 $ 433,686 $ 18,217,379 $ 54,469,309 $ 45,616,351 See Independent Auditors'Report and Notes to Financial Statements -3- CITY OF ITHACA COMBINED STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES,EXPENDABLE TRUST FUNDS,AND COMPONENT UNITS FOR THE YEAR ENDED DECEMBER 31.1999 Primary Government Fiduciary Governmental Fund Types Fund Types Special Capital Debt Expendable Component REVENUES AND OTHER FINANCING SOURCES General Revenue Projects Service Trust Unit Local Sources: Real Property Taxes $ 7,685,919 $ $ $ $ $ Real Property Tax Items 244,484 Nonproperty Tax Items 7,985,345 Departmental Income 2,311,410 5,581,341 37,225 1,443,777 Intergovernmental Charges 3,516,299 204,323 Use of Money and Property 413,819 177,571 715,528 12,428 6,958 205,079 Licenses and Permits 706,105 Fines and Forfeitures 965,904 Sale of Property and Compensation for Loss 215,104 101,577 397 Miscellaneous Local Sources 677,720 142,745 10,223 67,843 25,595 577 Intertund Revenues 250,985 State Sources 2,234,357 189,293 Federal Sources 98,059 1,816,684 116,019 Total Revenues 27,305,510 8,024,241 1,031,460 80,271 69,778 1,649,433 Other Financing Sources Intertund Transfers 1,319,876 141,000 447,965 180,000 Other Financing Sources Proceeds of Obligations 1,781,265 Total Revenues and Other financing Sources 28,625,386 8,165,241 3,260,690 80,271 69,778 1,809,433 EXPENDITURES AND OTHER FINANCING(USES1 Current: General Governmental Support 2,602,305 84,966 552,838 1,000 Public Safety 10,237,282 908,513 23,326 Public Health Transportation 3,477,968 985,384 Economic Assistance and Opportunity 53,500 Culture and Recreation 3,510,483 115,181 Home and Community Services 795,167 5,199,968 1,876,110 37,282 2,034,175 Employee Benefits 4,138,911 582,046 41,823 Debt Service(Principal and Interest) 3,705,955 706,734 41.570 186,730 Total Expenditures 28,521,571 6,573,714 4,436,026 41,570 60,608 2,263,728 Other Financing Uses Interfund Transfers 272,800 638,617 997,424 160,000 Total Expenditures and Other Financing Uses 28,794,371 7,212,331 5,433,450 41,570 60.608 2,423,728 Excess of(Expenditures)Revenues (168,985) 952,910 (2,172,760) 38,701 9,170 (614,295) Fund Balances,Beginning of Year 5,402,609 4,616,576 (1,789,249) 1,188,656 278,730 4,438,290 Changes in Fund Balance 1,166 Fund Balances,End of Year $ 5,234,990 $ 5,569,486 $ (3,962,009) $ 1,227,357 $ 287,900 $ 3,823,995 See Independent Auditors'Report and Notes to Financial Statements -4- CITY OF ITHACA COMBINED STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-GENERAL AND SPECIAL REVENUE FUNDS FOR THE YEAR ENDED DECEMBER 31,1999 General Fund Modified Variance Budget Actual Encumbrances Fav:Unfay. REVENUES AND OTHER FINANCING SOURCES Local Sources: Real Property Taxes $ 7,631,469 $ 7,685,919 $ $ 54,450 Real Property Tax Items 38,980 244.484 205,504 Nonproperty Tax Items 8.462,657 7,985,345 (477,312) Departmental Income 2,230,884 2,311,410 80,526 ... Intergovernmental Charges 3,620,848 3,516,299 (404,549) Use of Money and Property 414,500 413,819 (681) Licenses and Permits 829,189 706,105 (123,084) Fines and Forfeitures 801,000 965,904 164,904 Sale of Property and Compensation for Loss 172,700 215,104 42,404 Miscellaneous Local Sources 664,408 677,720 13,312 Interfund Revenues 250,985 250,985 -0- State Sources 2,140,207 2,234,357 94,150 Federal Sources 80,646 98,059 17,413 Total Revenues 27,338,473 27,305,510 (32,963) Other Financing Sources Interfund Transfers 1,372,726 1,319,876 (52,850) Other Financing Sources Proceeds of Obligations Total Revenues and Other Financing Sources 28,711,199 28,625,386 (85,813) EXPENDITURES AND OTHER FINANCING(UM Current: General Governmental Support 2,729,890 2,602,305 94,276 33,309 Public Safety 10,415,433 10,237,282 118,379 59,772 - Health Transportation 3,607,420 3,477,968 89,764 39,688 Economic Development and Opportunity 53,500 53,500 -0- Culture and Recreation 3,657,511 3,510,483 39,270 107,758 Home and Community Services 881,398 795,167 47,847 38,384 Employee Benefits 4,318,243 4,138,911 27,233 152,099 Debt Service(Principal and Interest) 3,707,460 3,705,955 1,505 Total Expenditures 29,370,855 28,521,571 416,769 432,515 Other Financing(Uses) '1 Interfund Transfers 272,800 272,800 -0- Total Expenditures and Other Financing(Uses) 29,643,655 28,794,371 416,769 432,515 Excess of(Expenditures)Revenues (932,456) (168,985) (416,769) $ 346,702 `1 Appropriated Fund Balances 932,456 ` Net Increase(Decrease) $ -0- (168,985) $ (416,769) Reconciliation of Budget to GAAP Basis of Accounting Fund Balances, Beginning of Year 5,402,809 Other Changes in Fund Balances 1,166 , Fund Balances,End of Year $ 5,234,990 See Independent Auditors'Report and Notes to Financial Statements 1 -5- "'1 i L i ,I Special Revenue Funds �.r Modified Variance Budget Actual Encumbrances Fay.-Unfay. a. $ $ $ $ L 5,571,802 5,581,341 9,539 1,000 204,323 203,323 100,000 143,227 43,227 �... 92,830 101,577 8.747 I r.. 5,765.632 6,030,468 264,836 i 141,000 141,000 -0- L. 5,906,632 6,171,468 264.836 V 162,441 84,966 77,475 I L 4,118,239 3,335,768 503,606 278,865 664,106 582,046 10,322 71,738 1► 738,129 706,734 31,395 5,682,915 4,709,514 513,928 459,473 l.. 638,617 638.617 -0- 6,321,532 5.348,131 513,928 459,473 (414,900) 823,337 (513,928) $ 724,309 -..• 414,900 $ -0- 823,337 $ (513,928) 129,573 4,616,576 $ 5,569,486 �.r -5a- L� CITY OF ITHACA COMBINED STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN FUND BALANCE NONEXPENDABLE TRUST FUND FOR THE YEAR ENDED DECEMBER 31. 1999 L Fiduciary Fund Type Nonexpendable L Trust Operating Revenues: Gifts and Donations $ Other Miscellaneous Local Sources Total Operating Revenues r.. Operating Expenses: General Support Instruction Community Services Total Operating Expenses Operating Income Nonoperating Revenues (Expenses) Interest Revenue L Transfer to Other Funds Total Nonoperating Revenues (Expenses) r..r NET INCOME Fund Balance, January 1, 60,087 i Fund Balance, December 31, $ 60,087 L i 1..r i.a See Independent Auditors'Report and Notes to Financial Statements -6- '' I II L CITY OF ITHACA STATEMENT OF CASH FLOWS NONEXPENDABLE TRUST FUND FOR THE YEAR ENDED DECEMBER 31. 1999 Lr 1 Cash Flows from Operating Activities: Cash Used by Operations $ Gifts and Donations 1 .�. Cash Flows from Noncapital Financing Activities: Interfund Transfers Cash Flows from Financing Activities u Cash Flows from Investing Activities: f Interest Income Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, Beginning of Year 60,087 Cash and Cash Equivalents, End of Year $ 60,087 1 i -y I See Independent Auditors' Report and Notes to Financial Statements -7- L r I L CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 31. 1999 LNote 1 - Summary of Significant Accounting Policies The general purpose financial statements of the City of Ithaca, and its component units, have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government r 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. LA. Financial Reporting Entity The City of Ithaca, which was established in 1888, is governed by its Charter, General City Law and other general laws of the State of New York, and various local laws. The Common Council is the legislative body responsible for overall operations, the Mayor serves as chief executive officer and the Controller serves as chief fiscal officer. The following basic services are provided: public safety (police and fire), highways and streets, sanitation, culture and recreation, public improvements, planning and zoning, and general administrative services. i Ld All governmental activities and functions performed for the City of Ithaca are its direct responsibility. No other governmental organizations have been included or excluded from the reporting entity. The financial reporting entity consists of(a)the primary government which is the City of Ithaca, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's general purpose financial statements to be misleading or incomplete as set forth in GASB Statement 14. The decision to include a potential component unit in the City of Ithaca's reporting entity is based on several criteria set forth in GASB Statement 14 including legal standing, fiscal dependency, and financial accountability. Based on the application of these criteria, the following is a brief review of I certain entities considered in determining the City of Ithaca's reporting entity. 1. Included in the Reporting Entity i Community Development: The program is administered by the Ithaca Urban Renewal Agency and is reported as a separate Special Revenue Fund. The following is an activity undertaken jointly with other municipalities and is included in the general purpose financial statements as a component unit. See Note 4 for additional disclosure regarding this joint venture. Ithaca Area Wastewater Treatment Facility,with the Towns of Ithaca and Dryden. 2. Excluded From the Reporting Entity Although the following organizations, functions, or activities are related to the City of Ithaca, L they are not included in the City of Ithaca's reporting entity because the City does not meet the criteria for manifestation of oversight as defined by Government Accounting Standards Board: Ithaca Housing Authority Ithaca City School District Tompkins Consolidated Area Transit -8- i L i CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1999 1 B. Basis of Presentation-Fund Accounting The accounts of the local government are organized on the basis of funds or account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for within a separate set of self-balancing accounts that comprise its assets, liabilities, fund balancetretained earnings, revenues and expenditurestexpenses which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. The various funds are summarized by type in the general purpose financial statements. (Certain funds of the local government are utilized to account for resources derived from, and/or expenditures applicable to an area less than the entire local government.) The following fund types and account groups are used: 1.� 1. Fund Categories a. Governmental Fund Types - are those through which most governmental functions are financed. The acquisition, use, and balances of expendable financial resources and the related liabilities are accounted for through Governmental Funds. The measurement focus of the Governmental Funds is based upon determination of financial position and changes in financial position. The following are the City of Ithaca's Governmental Fund Types: i General Fund -the principal operating fund and includes all operations not required to be L recorded in other funds. Special Revenue Funds - used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The following Special Revenue Funds are utilized: Water Fund - established by law to account for revenues derived from charges for water consumption and the application of such revenues toward related operating expenses and revenues derived from benefited assessments used for debt retirement. L Sewer Fund - established by law to account for revenues derived from charges for sewer usage and benefited assessments, and the application of such revenues toward related operating expenses and debt retirement. I 1" Community Development Agency - established by law to account for activities under the Housing and Community Development Act of 1974. .. Urban Renewal Agency - established to account for money advanced for the Center Ithaca Project. i� Solid Waste Fund - established to account for revenues derived from charges for garbage, refuse, and recycling consumption, and the application of such revenues toward related operating expenses. .. Capital Projects Fund - used to account for financial resources to be used for the acquisition, construction, or renovation of major capital facilities or equipment. l.. Debt Service Fund - used to account for current payments of principal and interest on general obligation long-term debt(and for financial resources accumulated in a reserve for i payment of future principal and interest on long-term indebtedness). -9- i L i L CITY OF ITHACA i NOTES TO FINANCIAL STATEMENTS �- (CONTINUED) DECEMBER 31. 1999 b. Fiduciary Funds - used to account for assets held by the local government in a trustee or custodial capacity: Trust and Agency Funds-used to account for money and/or property received and held in the capacity of trustee, custodian or agent. These include Expendable and Nonexpendable Trusts,and Agency Funds. I 2. Account Groups Account groups are used to establish accounting control and accountability for general fixed assets and general long-term debt. The two account groups are not"funds". They are concerned with measurement of financial position and not results of operations. General Fixed Assets Account Group-used to account for land, buildings, improvements other j than buildings, and equipment utilized for general government purposes. General Long-Term Debt Account Group-used to account for all long-term debt. I �.• C. Basis of Accounting/Measurement Focus Basis of accounting refers to when revenues and expenditures/expenses and the related assets and liabilities are recognized in the accounts and reported in the general purpose financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus. Measurement focus is the determination of what is measured, i.e.expenditures or expenses. 6 Modified Accrual Basis-all Governmental Funds and Expendable Trust Funds are accounted for using the modified accrual basis of accounting. Under this basis of accounting, revenues are recorded when measurable and available. Available ;... means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Material revenues that are accrued include real property taxes, state and federal aid, sales tax, and certain user charges. If expenditures are the prime factor for determining eligibility, revenues from federal and state grants are accrued when the expenditure is made. L Expenditures are recorded when incurred except that: a. Expenditures for prepaid expenses and inventory-type items are recognized at the time of the purchase. b. Principal and interest on indebtedness are not recognized as an expenditure until due. i c. Compensated absences, such as vacation and sick leave which vests or accumulates, are charged as an expenditure when paid(See Note 1-L). Accrual Basis - Nonexpendable Trust Funds are accounted for on the accrual basis of accounting, whereby revenues are recognized when earned and expenses are recorded when incurred. I L., - 10- L CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS �- (CONTINUED) DECEMBER 31, 1999 Account Groups-General fixed assets are recorded at actual or estimated cost or, in the case of gifts and contributions, at the fair value at the time received. No provision for depreciation is made. General long-term debt liabilities are recorded at the par value of the principal amount. No liability is recorded for interest payable to maturity. Long-term liabilities expected to be financed from Governmental Funds are accounted for in the General Long-Term Debt Account Group, rather than Governmental Funds. I Deferred Revenues - The City of Ithaca reports deferred revenues on its combined balance sheet. Deferred revenue arises when a potential revenue does not meet both the measurable and available criteria for recognition in the current period. Deferred revenue also arises when resources are received by the City of Ithaca before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods,when both recognition criteria are met, or when the City of Ithaca has legal claim to the resources, the liabilities for deferred revenue is removed and revenue is recognized. D. Property Taxes Real property taxes are levied annually by the City of Ithaca no later than December 31, and become a lien on January 1. County tax collections begin January 1, and are deposited directly to the �-- credit of the County fiscal officer. City taxes are collected in two installments, the first due during the month of January and the second due during the month of June. Unpaid County taxes are enforced through tax sale in the same manner as unpaid Town taxes. The County acquires all right, title, and interest in any unpaid County taxes. Unpaid City taxes of the current year, and unpaid school taxes of the previous year, plus advertising costs, and accrued penalties, are enforced through an annual public tax sale held in November, pursuant to Article 10 of the Real Property Tax Law. If not redeemed within the times prescribed by statute, such certificates are subject to conversion to tax (quit claim) deeds vesting equivalent title and interest in the certificate i holders, but nonetheless subject to any existing County tax liens. E. Budgetary Data ' 1. Budget Policies-The budget policies are as follows: a. No later than September 1, the budget officer submits a tentative budget to the Common Council for the fiscal year commencing the following January 1. The tentative budget includes proposed expenditures and the proposed means of financing for all funds. b. After public hearings are conducted to obtain taxpayer comments, no later than December 31, .. the governing board adopts the budget. c. All modifications of the budget must be approved by the governing board. (However, the Controller is authorized to transfer certain budgeted amounts within departments.) 2. Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for *-� the expenditure of monies are recorded for budgetary control purposes to reserve that portion of the applicable appropriations, is employed in the General and Special Revenue Funds. Encumbrances are reported as reservations of fund balances since they do not constitute ., expenditures or liabilities. Expenditures for such commitments are recorded in the period in which the liability is incurred. L.. - 11 - i CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS �- (CONTINUED) DECEMBER 31. 1999 1... 3. Budget Basis of Accounting Budgets are adopted annually on a basis consistent with generally accepted accounting principles. Appropriations authorized for the current year are increased by the amount of encumbrances carried forward from the prior year. Budgetary controls for the Special Revenue Funds for Community Development and Urban Renewal are established in accordance with the applicable grant agreement,which covers a period other than the City of Ithaca's fiscal year. Consequently, the budgets for such funds have been excluded from the Combined Statement of Revenues, Expenditures, Encumbrances, and Changes in Fund Balances- Budget and Actual. The following schedule reconciles the difference between ;., the statements: Fund Balance Expendi- Other Fund Balance i Beg. of Year Revenues tures Changes End of Year Total Funds Included in Budget Comparison $ 3,581,302 $6,171,468 $5,348,131 $ $4,404,639 Community Dev. 910,274 1,993,773 1,864,200 1,039,847 Urban Renewal 125,000 125.000 Total Special Revenue Funds $ 4,616,576 $8.165.241 $7,212.331 $ $5.569.486 F. Cash and Cash Equivalents For financial statement purposes,the City considers all highly liquid investments of three months or less to be cash equivalents. G. Investments Investments are stated at fair value. V..1/ H. Receivables Receivables are stated net of estimated allowances for uncollectible amounts. Amounts due from Le state and federal governments represent amounts owed to the City to reimburse it for expenditures incurred pursuant to state and federally funded programs. Other receivables represent amounts owed to the City including mortgage and loans receivable, assessments receivable, billed services ;.., receivable, fees receivable, and water and sewer rents receivable. 1. Inventory LInventory is valued at cost utilizing the first-in, first-out method for the General, Water, and Sewer Funds. J. Property, Plant, and Equipment-General ..r During 1989, the City implemented a system of General Fixed Assets. Fixed assets purchased for general governmental purposes are recorded as expenditures in the Governmental Funds and are capitalized at cost in the General Fixed Assets Account Group for 1988 and future years. Prior to 1988, the General Fixed Assets are recorded at actual or estimated cost. In the case of gifts and contributions, General Fixed Assets are recorded at the fair value at the date received. ' j 6., - 12- I 1 i CITY OF ITHACA j NOTES TO FINANCIAL STATEMENTS �- (CONTINUED) DECEMBER 31. 1999 I i.. Fixed assets consisting of certain infrastructure type improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks,drainage, and lighting systems, have not been capitalized. Such assets normally are immovable and of value only to the City of Ithaca. Therefore,the purposes of stewardship for capital expenditures can be satisfied without recording these assets. No depreciation has been provided on general fixed assets, nor has interest on general fixed L assets construction in progress been capitalized. K. Insurance The City of Ithaca assumes the liability for most risk including, but not limited to, property damage and personal injury liability. Judgements and claims are recorded when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. i L. Vacation and Sick Leave and Compensatory Absences City of Ithaca employees are granted vacation, sick leave, and other leave benefits as defined in i agreements between the City and the representative units. Ir The City of Ithaca recognizes a liability for vacation leave and other compensated absences with similar characteristics and additional salary-related payments as the benefits are earned by the employees, based on the rendering of past service and the probability that the employees will be compensated for the benefits through paid time off or some other means. This includes vacation leave and other compensated absences with similar characteristics that were earned but not used during the L.. current or prior periods and for which employees can receive compensation in a future period.Amounts do not include leave expected to lapse and includes leave that(new)employees will(eventually)qualify for. In addition, the City of Ithaca recognizes a liability for vesting sick leave and other compensated absences with similar characteristics and additional salary-related payments as employees earn I benefits and to the extent it's probable that the City of Ithaca will compensate the employees for the benefits through cash payments (which may be conditioned on the employees' termination or retirement), rather than be taken as absences due to illness or other contingencies. i A portion of the compensated absence liability recognized is attributable to the value of sick leave �- converted to pay employees'share of post-employment health care insurance premiums. The liability for compensated absences is calculated at rates in effect as of the balance sheet date and is recorded in the Governmental Funds inasmuch as it will be funded from current financial resources, and the General Long-Term Debt account group for amounts to be paid from future financial resources. M. Postemployment Benefits In addition to providing pension benefits, the City of Ithaca provides health insurance coverage and survivor benefits for retired employees and their survivors. Substantially all of the City of Ithaca's �- employees may become eligible for these benefits if they reach normal retirement age while working for the City of Ithaca. Health care benefits and survivors benefits are provided through an insurance company whose premiums are based on the benefits paid during the year. The City of Ithaca L recognizes the cost of providing benefits by recording its share of insurance premiums as an expenditure in the year paid. During the year, $819,112 was paid on behalf of 182 retirees and recorded as an expenditure in the General Fund. - 13- L 4 CITY OF ITHACA i NOTES TO FINANCIAL STATEMENTS �- (CONTINUED) DECEMBER 31, 1999 L.. Note 2- Stewardship, Compliance,Accountability Deficit Fund Balances The Capital Projects Fund had a deficit fund balance of$(3,962,009)at December 31, 1999, due to the use of short-term financing. �• Note 3- Detail Notes on All Funds and Account Groups A. Assets 1. Cash and Investments The City of Ithaca's investment policies are governed by state statutes. In addition, the City of Ithaca has its own written investment policy. City of Ithaca's monies must be deposited in FDIC- insured commercial banks or trust companies located within the state. The Chamberlain is authorized to use demand accounts and certificates of deposit. Permissible investments include i obligations of the U.S. Treasury and U.S. Agencies, repurchase agreements, and obligations of �.. New York State or its localities. Collateral is required for demand and time deposits and certificates of deposit at 105 percent of all deposits not covered by Federal Deposit Insurance. Obligations that may be pledged as collateral are obligations of the United States and its agencies and obligations of the state and its municipalities and school districts. j 1~ The written investment policy requires repurchase agreements to be purchased from banks located within the state and that underlying securities must be obligations of the federal government. Underlying securities must have a market value of at least 105 percent of the cost of the repurchase agreement. 4 For purposes of reporting cash flow, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash and near their maturity. The Statement of Cash Flows presented on page 7 uses the indirect method of reporting cash flows. L. Deposits and investments at year end are valued at cost or cost plus interest and are categorized as either (1) insured and for which the securities are held by the City's agent in the City's name, (2) collateralized, and for which the securities are held by the pledging financial institution's trust department or agent in the City's name, (3)uncollateralized. Total financial institution (bank) balances at December 31, 1999, per the banks, for the City and its component units were$7,166,114. These deposits are categorized as follows: Carrying 1 2 3 Value $7,166,114 $ $ $5,940,217 I L.. 14- j i f 1 V� CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1999 I �.. 2. Investments Investments are stated at fair value and are categorized as either (1) insured or registered, investments are held by the City or the City's agent in the City's name, (2) uninsured and y unregistered, with the investments held by the financial institution's trust department in the City's name, (3) uninsured and unregistered, with investments held by the financial institution or its trust department but not in the City's name. The City and its component units have the following investments in the following denominations: Repurchase Agreements Category $ 737,827 US Treasury Notes due 01/19/00, rate 5.00% (1) 1,539,403 US Treasury Notes due 01/12/00, rate 5.10% (1) 1,858,949 US Treasury Notes due 04/17/00, rate 5.25% (1) 4,341,718 US Treasury Notes due 02/07/00, rate 5.00% (1) 924,233 US Treasury Notes due 06/27/00, rate 5.40% (1) 5,100,698 US Treasury Notes due 05/16/00, rate 5.50% (1) '- $14.502,828 Certificates of Deposit Category $ 6,308,949 364 days, maturity date 01/07/00, rate 4.85% (1) 3,104,532 365 days, maturity date 11/18/00, rate 5.60% (1) 10.002 365 days, maturity date 04/29/00, rate 4.40% (1) $_9..423 483 i I 3. Property Taxes At December 31, 1999, the total real property tax assets of$790,828 are offset by deferred i revenue of$790,828. 4. Sales Taxes and Collection The City, under the general authority of Article 29 of the Tax Law, imposes a Y2% sales and compensating use tax. The County of Tompkins, by similar authority, also imposes a %%sales tax within the City and a 3%sales tax in the towns outside the City. Both the City and County imposed tax is administered and collected by the State Tax .. Commission in the same manner as that relating to the State imposed 4% sales and compensating use tax. Net collections, meaning monies collected after deducting therefrom expenses of administration and collections and amounts refunded or to be refunded, but inclusive of any �. applicable penalties and interest, are paid by the State to the City and the County, respectively. In 1999, direct payments from this source aggregated $7,476,000. It was credited to the General Fund and used to finance general City expenses. �- Net collections of the 1%% sales tax imposed with the City by the County are retained by the County, and,together with%of the tax levied in the towns outside of the City, or 1%%, is applied to the reduction of taxes levied on a County-wide basis. The County of Tompkins increased the sales tax collected within the County to 8%. The City, under the 1%increased sales tax, imposes a.25%of the 1%increase. - 15- CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS �- (CONTINUED) DECEMBER 31, 1999 5. Changes in Fixed Assets A summary of changes in general fixed assets is as follows: Balance Balance Type January 1, Additions Deletions December 31. Land $11,035,925 $ 698,360 $ 32,600 $ 11,701,685 Buildings 26,710,165 169,805 26,879,970 �- Machinery&Equipment 13,926.853 2,183,369 222.568 15.887,654 Total $51.672,943 $3.051,534 $ 255,168 $54.469,309 6. Other Receivables The following is a breakdown of other receivables: i Fund Description Amount General Reimbursement of Insurance $ 27,739 General Ticket Fine Collection 283,505 General Building Permit Fees 420,000 General Mortgage Receivable 90,000 General Youth Bureau Grants 73,725 General Miscellaneous 35,495 General Assessments Receivable 20,586 L $ 951.050 Special Revenue: L Water Water Rents $ 374,014 Sewer Sewer Rents 261,890 Solid Waste Fees 30,352 Community LDevelopment Loans Receivable 2,168,218 Urban Renewal Due from Developer 398.079 $3,232.553 L Component Unit: General Septage Fees $ 49,619 Insurance Recovery 2,220 Capital Sewer Connection Fees 8.996 $ 60,835 i 7. Mortgage Receivable The City recorded a mortgage receivable on land conveyed to Mutual Housing Association of �- Tompkins County of$90,000. Mutual Housing is paying interest only at 3% for the period May 1, 1992 to May 1, 2004 and will begin to pay the principal plus interest at 7% on June 1, 2004 until May 30, 2016. - 16- i I CITY OF ITHACA j NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1999 B. Liabilities 1. Pension Plans Plan Description The City participates in the New York State and Local Employees' Retirement System (ERS) and the New York State and Local Police and Fire Retirement Systems (PFRS) and the Public Employees' Group Life Insurance Plan (Systems). These are cost-sharing multiple-employer retirement systems. The Systems provide retirement benefits as well as death and disability benefits. Obligations of employers and employees to contribute and benefits to employees are governed by the New York State Retirement and Social Security Law(NYSRSSL). As set forth in the NYSRSSL, the Comptroller of the State of New York(Comptroller) serves as sole trustee and administrative head of the Systems. The Comptroller shall adopt and may amend rules and j regulations for the administration and transaction of the business of the Systems and for the �— custody and control of their funds. The Systems issue a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to the New York State and Local Retirement Systems, Gov. Alfred E. Smith �., State Office Building,Albany, NY 12244. Funding Policy The Systems are noncontributory except for employees who joined the New York State and Local Employees' Retirement System after July 27, 1976 who contribute 3%of their salary. Under the authority of the NYSRSSL, the Comptroller shall certify annually the rates expressed as proportions of payroll of members, which shall be used in computing the contributions required to �- be made by employers to the pension accumulation fund. The City of Ithaca is required to contribute at an actuarially determined rate. The required contributions for the current year and two preceding years were: ERS PFRS 1999 $131,624 $ 7,129 1998 156,436 33,749 1997 166,162 320,779 `— The City of Ithaca's contributions made to the Systems were equal to 100%of the contributions required for each year. .. Since 1989, the Systems' billings have been based on Chapter 62 of the Laws of 1989 of the State of New York. This legislation requires participating employers to make payments on a current basis, while amortizing existing unpaid amounts relating to the Systems'fiscal years ended March 31, 1988 and 1989 (which otherwise were to have been paid on June 30, 1989 and 1990, respectively) over a 17 year period, with an 8.75% interest factor added. Local governments were given the option to prepay this liability. The City of Ithaca elected to make the full payment on December 15, 1989. The City borrowed the funds at effective interest rates of 6.90% and 7.20%. The current unpaid balance of $865,000 is reported in the General Long-Term Debt Account Group. - 17- i 6- CITY OF ITHACA L NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1999 Pursuant to Chapter 12 of the Laws of 1995 and Chapter 41 of the Laws of 1997, the State Legislature authorized local governments to make available retirement incentive programs with estimated total costs of$505,674 of which $123,380 was charged to expenditures/expenses in the LGovernmental Funds in the current fiscal year. The cost of the programs will be billed and paid over five years beginning December 31, 1996 for Chapter 12 and December 31, 1998 for Chapter 41 and will include interest at 8.75%. �. 2. Short-Term Debt Liabilities for bond anticipation notes(BAN's)are generally accounted for in the Capital Project Funds. Principal payments on BAN's must be made annually. i State law requires that BAN's issued for capital purposes be converted to long-term obligations within five years after the original issue date. However, BAN's issued for assessable improvement L projects may be renewed for periods equivalent to the maximum life of the permanent financing, provided that stipulated annual reductions of principal are made. Bond Anticipation Notes payable at December 31, 1999, in the Capital Fund, consisted of the �. following: L Interest Date Maturity Description Amount Rate Issued Date Primary Government Cass Park Pool Imp. $ 67,132 3.50% 1995 1/00 Street&Rd. Constr. (95) 518,593 3.50% 1995 1/00 Sidewalk Imp. (95) 53,558 3.50% 1995 1/00 Purchase of Fire Vehicles 65,005 3.50% 1995 1/00 L Purchase of Recycling Vehicles 57,129 3.50% 1995 1/00 Water Treatment Plant Imp. 939,209 3.50% 1995 1/00 Street&Road Constr. (96) 179,080 3.50% 1996 1/00 ADA Barrier Removal 18,659 3.50% 1996 1/00 Computer Network Sys. (Phase 1) 59,000 4.05% 1996 1/01 Wheelchair Lift Van Acq. 19,000 4.05% 1996 1/01 DPW Equipment Acq. (96) 17,000 4.05% 1996 1/01 j Trash& Recycling Bin Repl. 11,000 4.05% 1996 1/01 �-. Traffic Counter/Collection Equip. 20,000 4.05% 1996 1/01 Building Dept. Computer Acq. 15,000 4.05% 1996 1/01 City Hall Network System 28,000 4.05% 1996 1/01 Transit Capital Imp. 83,000 4.05% 1996 1/01 DPW Equipment Acq. (96) 161,340 3.50% 1996 1/00 Fire Dept. Staff Veh. (96) 24,423 3.50% 1996 1/00 Fire Dept. Training Ctr. Imp.(96) 57,371 3.50% 1996 1/00 Cass Park Ballfield Lights Repl. 129,834 3.50% 1996 1/00 Frosh Alley Restoration 64,467 3.50% 1996 1/00 j West State St. Lights/Landsc. Imp. 89,540 3.50% 1996 1/00 �. Solidwaste Packer Acq. 48,845 3.50% 1996 1/00 GIAC Boiler Replacement 16,283 3.50% 1996 1/00 Youth Bureau HVAC Imp. 117,144 3.50% 1996 1/00 DPW Cold Storage Bldg. Constr. 260,272 3.50% 1996 1/00 Fire Dept. Light Rescue Veh. 40,705 3.50% 1996 1/00 Fire Dept.Aerialscope Veh.Acq. 754,209 3.50% 1996 1/00 6— - 18- CITY OF ITHACA L NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1999 Street&Road Constr. (97) $ 284,693 3.50% 1997 1/00 Stewart Park Playground Equip. 56,939 3.50% 1997 1/00 DPW Equipment Acq. (97) 148,414 3.50% 1997 1/00 DPW Sidewalk Program(97) 68,199 3.50% 1997 1/00 Fire Dept. Central St. Imp. 66,257 3.50% 1997 1/00 Fire Dept Training Ctr. Imp. 25,150 3.50% 1997 1/00 GIAC Gym Renovations 67,706 3.50% 1997 1/00 �- City Hall Smoke/Records System 41,565 3.50% 1997 1/00 Skate Board Park Const 61,683 3.50% 1997 1/00 City Facility Code Comp.Wk. 1,133,049 3.50% 1997 1/00 L Water Facility Compl.Work 61,476 3.50% 1997 1/00 Sewer Facility Compl.Work 61,478 3.50% 1997 1/00 i St. &Rd. Constr. Addt'l. (97) 100,000 3.50% 1998 1/00 St. &Rd. Constr. (98) 300,000 3.50% 1998 1/00 j Acq.of Cherry St. Ext Lands 415,000 3.50% 1998 1/00 j Phase 1 Eng. Seneca St.Garage 60,000 3.50% 1998 1/00 DPW Equipment Acq. (98) 248,500 3.50% 1998 1/00 DPW Sidewalk Program(98) 75,000 3.50% 1998 1/00 Fire Training Center Imp. (98) 40,000 3.50% 1998 1/00 L IFD Engine/Pumper Replacement 600,000 3.50% 1998 1/00 Fuel Tank Compliance 70,000 3.50% 1998 1/00 Commercial Ave. Signal Upgrade 40,000 3.50% 1998 1/00 Cass Park Rink Imp. 123,130 3.50% 1998 1/00 Reconstr. Imp. Haley/Cass Pools 56,000 3.50% 1998 1/00 Transit System Imp. (98) 101,817 3.50% 1998 1/00 Giles St. Bridge Imp.265 857,000 3.50% 1999 1/00 Linn Street Bridge Imp.280 788,000 3.50% 1999 1/00 j West Clinton St Bridge Imp. 366 120,000 3.50% 1999 1/00 Acq.Traffic Signs Residential 365 33,000 3.50% 1999 1/00 Lake Street Road Reconst. 371 200,000 3.50% 1999 1/00 Seneca St. Parking Garage Imp. 372 1,100,000 3.50% 1999 1/00 Sidewalk Reconst(99)249 75,000 3.50% 1999 1/00 DPW St. &Rd. Const. (99)373 300,000 3.50% 1999 1/00 Cass Park Pool Deck Phase III Imp. 374 150,000 3.50% 1999 1/00 Inlet Island Parking Lot Const 375 100,000 3.50% 1999 1/00 Lake St. Rd. Reconst. Sewer 608 300,000 3.50% 1999 1/00 L. Roof Reconst. S&F Bldg. 368 93,500 3.50% 1999 1/00 Stewart Ave. Bridge Imp.266 526,000 3.50% 1999 1/00 Computer Network Acq. Phase IV 53,510 4.15% 1998 1/03 DPW Equipment Acq. (98) 48,000 4.15% 1998 1/03 IFD Cent. Imp. Kitchen/Hose/Appl. 12,700 4.15% 1998 1/03 IFD Water/Ice Rescue Program 19,581 4.15% 1998 1/03 IPD Digital Comm. Record Equip. 28,885 4.15% 1998 1/03 Youth Bureau Van Acq. 22,500 4.15% 1998 1/03 �. Youth Bureau HVAC Acoustics 367,347 3.79% 1995 1/00 Police Dept. Elevator Rehab. 41,900 3.79% 1995 1/00 l DPW Sidewalk Program(96) 58,899 4.00% 1996 8/00 HVAC/Lighting City Bldg. 27,486 4.00% 1996 8/00 Reconstr. Cascadilla Bthse. 78,532 4.00% 1996 8/00 Wood St. Park Imp. 20,909 4.00% 1996 8/00 L - 19- LL L CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS L (CONTINUED) DECEMBER 31, 1999 I Acq. of Sub. Parklands $ 539,352 4.00% 1996 8/00 Watershed Property Acq. 156,694 4.00% 1996 8/00 Mancini Property Acq. 33,484 4.00% 1996 8/00 Tennis Court Reconstr. 60,888 4.00% 1996 8/00 Cliff St. Parking Lot Acq. 76,175 4.00% 1996 8/00 West End Parking Lot 36,371 4.00% 1997 8/00 Cascadilla Boathouse Reconst. 141,853 4.00% 1997 8/00 Computer Acq. Building Dept. 22,272 4.00% 1997 8/00 West End Sculpture Project 37,721 4.00% 1997 8/00 Southside Comm.Ctr. Reconst. 297,915 4.00% 1997 8/00 Fire Dept.Training Ctr. Const. 43,703 4.00% 1997 8/00 Esty Street Sidewalks 32,734 4.00% 1997 8/00 Stewart Ave. Bridge Repair 116,072 4.00% 1997 8/00 l.. Copier Acquisitions 383 56,100 4.00% 1999 8/00 City Hall Renovations 381 500,000 4.00% 1999 8/00 Computer Upgrades Y2K 370 79,623 4.00% 1999 8/00 Electronic Truck Scales IPD 379 16,400 4.00% 1999 8/00 IPD Tahoe Vehicle Acq. 379 46,100 4.00% 1999 8/00 Parking Meters Acq. 377 52,200 4.00% 1999 8/00 L N. Cayuga St. Bridge Reconst. 382 745,000 4.00% 1999 8/00 Sewer System Imp.606 635,000 4.00% 1999 8/00 Computer Equip. Munis GUI 211 15,000 4.00% 1999 8/00 IFD Pumper Acq.Additional 356 340,000 4.00% 1999 8/00 j L Elmira Rd. Study 4,000 5.35% 1995 2/00 Bridge Inspection 21,000 5.35% 1995 2/00 Computer Hardware 9,900 5.35% 1995 2/00 Fire Dept. Hose 16,000 5.35% 1995 2/00 L DPW Equipment 10,000 5.35% 1995 2/00 Parking Meters 33,100 5.35% 1995 2/00 Youth Bureau Van 6,000 5.35% 1995 2/00 Computer Work Hard/Software 62,500 4.50% 1997 1/02 Youth Bureau Van Acq. 14,000 4.50% 1997 1/02 DPW Tractor/Air Compressor 18,000 4.50% 1997 1/02 Fire Dept.Defibr. Equip.Acq. 31,000 4.50% 1997 1/02 Water Front Revitil. Project 13,000 4.50% 1997 1/02 GIS Monuments 33,000 4.50% 1997 1/02 Infrastruct. Planning&Design 23,000 4.50% 1997 1/02 L Bicycle Masterplan 42,500 4.50% 1997 1/02 Southwest Area Land Use 367 400,000 3.75% 1999 1/04 Parking Lot Security/Lights 296 210,000 3.75% 1999 1/04 IFD Air Equipment 338 12,000 3.75% 1999 1/04 Y2K Computer Acq. 370 230,000 3.75% 1999 1/04 Stewart Ave. Stabilization 289 32,000 3.75% 1999 1/04 j Telephone Upgrade Voice Mail 369 60,000 3.75% 1999 1/04 L Total $19,005,260 i I -20- L r L CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS L (CONTINUED) DECEMBER 31, 1999 L 3. Long-Term Debt a. At December 31, 1999, the total outstanding indebtedness of the City of Ithaca aggregated j $37,037,204. Of this amount, $30,595,787 was subject to the constitutional debt limit. L b. Serial Bonds (and Capital Notes) -The City of Ithaca borrows money in order to acquire land or equipment or construct buildings and improvements. This enables the cost of these capital assets to be bome by the present and future taxpayers receiving the benefit of the capital assets. These long-term liabilities, which are full faith and credit debt of the local government, are recorded in the General Long-Term Debt Account Group. The provision to be made in l.. future budgets for capital indebtedness represents the amount exclusive of interest, authorized to be collected in future years from taxpayers and others for liquidation of the long-term i liabilities. c. Other Long-Term Debt-In addition to the above long-term debt, the local government had the following non-current liabilities: I L Due to Employees' Retirement System- Represents the non-current portion of the liability to the various state retirement systems. LCompensated Absences- Represents the unfunded value of the liability for compensated absences. L d. Summary Long-Term Debt-The following is a summary of long-term liabilities outstanding at December 31, 1999 by fund type and account group: General L Long-Term Debt Account Component Liability Group Unit Total Statutory Installment Bond $ 4,947,344 $ $ 4,947,344 Serial Bonds 11,620,816 1,463.784 13,084,600 Total Bonds 16,568,160 1,463,784 18,031,944 :.. Unbilled Retirement 549,614 549,614 Compensated Absences 1,099,605 1,099,605 L Total Long-Term Debt $ 18,217,379 $ 1,463,784 $ 19,681,163 i i L >w. -21 - CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS L. (CONTINUED) DECEMBER 31. 1999 e. The following is a summary of changes in long-term liabilities for the period ended December 31, 1999: Bonds Unbilled Component Compensated LPayable Retirement Unit Absences Payable at Beginning of Fiscal Year $ 17,553,521 $ 332,824 $1,628,784 $ 880,949 Additions 994,048 216,790 218,656 Deletions 1.979.409 165.000 Payable at End of L Fiscal Year $ 16,568.160 $ 549.614 $1.463.784 $1,099.605 Additions and deletions to unbilled retirement are shown net since it is impractical to determine these amounts separately. BAN's redeemed during the year amounted to $1,781,265 of which $787,217 was redeemed through current appropriations and$994,048 through issuance of Bonds. 6. f. Long-Term Debt Maturity Schedule -The following is a statement of serial bonds and capital notes with corresponding maturity schedules. 1" Original Final Description Date Original Interest Maturity By Fund Issued Amount Rate Date Outstanding L General Fund Youth Bureau Bldg. 1988 $1,437,940 6.875% 2006 $ 594,604 Dryden Rd. Land Acq. 1988 126,000 6.875% 2006 56,000 Dryden Rd. Parking Fac. 1988 1,793,860 6.875% 2006 809,118 College Ave. Reconstr. 1988 622,760 6.875% 2000 60,690 Green St. Parking Ramp 1988 72,000 6.875% 2000 6,720 j Seneca St. Parking Ramp 1988 846,570 6.875% 2006 317,478 State St. Reconstruction 1988 341,380 6.875% 2000 31,040 Cass Park 1991 91,650 6.400% 2005 42,650 Asbestos Removal 1991 144,900 6.400% 2009 88,150 i.. Telephone System 1991 45,000 6.400% 2000 6,000 Ind. Park Impr.-Streets 1991 331,205 6.400% 2005 152,000 i Thurston Avenue Bridge 1991 260,575 6.400% 2009 159,000 Hudson Street Reconstr. 1991 1,474,910 6.400% 2005 723,000 Fire Station Constr. 1991 2,170,815 6.400% 2009 1,289,440 Fire Station Reconstr. 1991 941,860 6.400% 2009 568,920 Stewart Avenue Bridge 1991 427,440 6.400% 2009 259,200 6' Court Fac. Constr. 1991 1,900,000 6.400% 2009 1,137,920 State St. Pedestrian Mall 1991 155,650 6.400% 2009 92,250 Youth Bureau Reconstr. 1991 78,660 6.400% 2009 47,800 j.., Fire Station Reconstr. 1991 82,600 6.400% 2009 50,200 City Hall HVAC System 1991 147,505 6.400% 2001 33,300 j DPW Sidewalk Reconstr. 1991 88,510 6.400% 2001 19,970 DPW Street Sweeper 1991 87,400 6.400% 2006 44,000 6. Property Acquisition 1991 300,000 6.400% 2005 140,000 Employee Retirement 1992 890,000 6.90% 2005 490,000 I L. -22- t I L � i Vr CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS i. (CONTINUED) DECEMBER 31, 1999 Various Street Reconstr. 1993 $ 675,000 3.95% 2001 $ 200,000 Stewart Ave. Bridge Paint 1993 315,000 3.95% 2001 108,000 Green St. Ramp 1994 720,000 4.10% 2005 540,000 L Various St. Reconst. 1995 886,000 5.70% 2006 555,000 Street&Rd. Const. (93) 1996 761,000 4.60% 2006 511,726 Fiber Optic Line 1996 118,000 4.60% 2006 88,151 L Highway Paver Acq. 1996 141,000 4.60% 2006 105,333 Fiber Optic Line 1996 55,000 4.60% 2006 41,088 Commons Improvements 1997 216,356 5.00% 2012 200,940 GIAC Reconstruction 1997 432,712 5.00% 2012 401,870 Reconstr. N. Cayuga Bridge 1997 40,511 5.00% 2012 37,640 Municipal Pool Construct. 1997 81,938 5.00% 2012 76,090 GIAC Reconstruction 1997 74,575 5.00% 2012 69,260 City Court Facility 1997 409,550 5.00% 2012 380,420 L- Alex Haley Pool Const. 1997 400,490 4.85% 2007 334,118 Court Facility Const. 1997 459,413 4.85% 2007 383,275 Daycare Center Reconst. 1997 109,410 4.85% 2007 91,278 L Golf Maint. Facil. Const. 1997 23,937 4.85% 2007 19,970 Street&Road Construction 1998 265,000 4.55% 2011 249,752 Fire Vehicle Acquisition 1998 700,940 4.55% 2011 660,605 Street and Road Construction 1999 312,031 4.05% 2012 312,031 DPW Land Acquisition 1999 320,784 4.05% 2012 320,784 Daycare Facility Improvements 1999 59,993 4.05% 2012 59,993 Parking Lot Improvements 1999 285,639 4.05% 2012 285,639 1.. Fire Station Reconstruction 1999 15,601 4.05% 2012 15,601 ` Special Revenue Funds L Water Supply&Dist. 1988 1,034,490 6.875% 2006 434,350 Ind. Park Impr. -Sewer 1991 41,400 6.375% 2009 24,600 Ind. Park Impr. -Water 1991 41,400 6.375% 2009 24,600 L Sewer Lines Reconstr. 1991 124,200 6.375% 2009 72,000 Sewer Cleaner Purchase 1991 131,120 6.375% 2009 75,000 Recycling Vhcle.Agc.(94) 1995 51,000 5.70% 2004 30,000 Garbage Truck Acq. 1995 63,000 5.70% 2004 35,000 ,. Plan&Recon.Water Plant 1997 810,184 5.00% 2012 752,440 Recycling Vehicle Acq. 1997 39,204 5.00% 2012 36,370 Reconst.Watershed 1997 69,970 5.00% 2012 64,970 L Sewer System Improvements 1998 1,500,816 3.70% 2017 1,375,816 All Funds LEmployee Retirement 1993 685,000 7.20% 2005 375.000 Total $16,568.160 L I l.. i -23- i CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS i. (CONTINUED) DECEMBER 31. 1999 The following is a statement of serial bonds with corresponding maturity schedule for Joint Venture L Debt: Joint Venture L Wastewater Treat. Plant 1986 $2,800,000 6.875% 2006 $ 1,150,000 Wastewater Treat. Plant Recons. 1988 343,784 3.70% 2017 313.784 L Total $ 1,463,784 The following is a summary of maturing debt service requirements for general obligation bonds and L.. notes: Bonds BAN's Total Total Year Principal Interest Principal Interest Principal Interest l— 2000 $ 1,946,141 $ 895,800 $19,005,260 $760,210 $20,951,401 $1,656,010 2001 1,884,125 786,366 -0- -0- 1,884,125 786,366 2002 1,754,566 678,510 -0- -0- 1,754,566 678,510 L„ 2003 1,784,680 575,393 -0- -0- 1,784,680 575,393 2004 1,810,499 470,611 -0- -0- 1,810,499 470,611 2005-2017 7,388.149 1,274,334 -0- -0- 7.388,149 1,274,334 L $16,568.160 $4.681,014 $19.005,260 $760.210 $35.573,420 $5,441,224 The following is a summary of maturing debt service requirements for general obligation bonds for the Joint Wastewater Treatment Venture. (Note 4) L Bonds Year Principal Interest 2000 $ 163,784 $ 88,472 2001 165,000 77,622 2002 165,000 66,710 2003 190,000 54,922 2004 190,000 42,268 2005-2017 590,000 290.491 $ 1,463,784 $_620.485 ti.. Interest paid on short and long-term debt by the City for the year ended December 31, 1999 amounted to $1,687,633. Interest paid on long-term debt by the component unit for the year ended December 31, 1999 amounted to$21,730. C. Interfund Receivables and Payables Interfund receivable and payable balances at December 31, 1999 are as follows: Interfund Interfund Fund To Receivables Payables General $ 180,175 $ Solid Waste 29,097 Water 28,807 L: Sewer 34,352 Capital Projects 1,062,704 Debt Service 974,785 Total $ 1,154,960 $ 1,154,960 -24 - .r i CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS L- (CONTINUED) DECEMBER 31. 1999 L D. Fund Equity 1. -Reserves L.. Fund equity includes Reserve Funds established for the following purposes: Balance 1 Purpose End of Year v Capital Projects Fund Capital Reserve: L.. -Reserve for Improvements $4.265.288 Trust and Agency y Reserve for Trusts: �^ Expendable-Cemetery $ 1,392 Nonexpendable-Cemetery 49,278 Kiely Scholarship 10,809 1... Fireman's Relief Fund 101,629 Center for Expressive Arts 289 i Health Facility 93,357 Memorial Funds 3,790 ECHO 86,533 West End Trees 800 IFD Recognition Banquet 110 $_M7.987 Joint Activity Capital Reserve: -Reserve for Sewer Plant Improvements $1,356,959 LNote 4-Joint Ventures The following is an activity undertaken jointly with other municipalities. This activity is included in the general purpose financial statements of the City of Ithaca. The City of Ithaca and Towns of Ithaca and Dryden jointly own the Wastewater Treatment Plant. The venture operates under the terms of an agreement dated 1981. The agreement is for a period of 25 years. Significant provisions of the agreement are as follows: 1. The boards of each municipality jointly act as the governing body for the joint venture. I 2. Debt for capital cost is issued by each participant in the following ratios: City of Ithaca 57.445% L Town of Ithaca 41.574% Town of Dryden .981% Debt issued by the City of Ithaca for the joint venture is shown in Note 3-B-3-f. -25- I..r CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS i (CONTINUED) DECEMBER 31. 1999 L 3. The governing body has established charges at rates intended to be self-sustaining to cover all operating costs and debt service. Any shortfall in revenues produced by such charges is to be provided by equal share contributions from the participants. I The following is an audited summary of financial information included in the general purpose financial statements issued for the joint venture: V Balance Sheet Date: December 31, 1999 General Capital Fixed Long-Term Fund Fund Assets Debt Total L Total Assets $2,389,593 $1,549,429 $40,213,545 $1,463,784 $45,616,351 Total Liabilities 89,889 25,138 1,463,784 1,578,811 Investment in Fixed Assets 40,213,545 40,213,545 Joint Venture Equity 2,299,704 1,524,291 3,823,995 �-- Total Revenues-1999 1,565,658 243,775 1,809,433 Total Expenditures-1999 2,172,030 251,698 2,423,728 Note 5-Joint Venture The following is the activity undertaken jointly with another municipality and a university. This activity is excluded from the financial statements of the participating municipalities. Separate financial statements are 1" issued for this joint venture. L The Tompkins Consolidated Area Transit(TCAT)was formed under a consolidation agreement between the City of Ithaca, Tompkins County, and Cornell University effective April 1, 1998. The agreement shall remain in force until October 9, 2021. TCAT began operations on January 1, 1999, with its purpose to provide public transportation in Tompkins County and surrounding areas. Significant provisions of the agreement are as follows: 1. TCAT is governed by a Board of Directors consisting of nine voting members with three members being appointed by each participant in the venture. The General Manager of TCAT is a non-voting ex-officio member of the Board. In addition, the nine voting members of the Board select five additional non-voting, ex-officio members. :.. 2. Interest of each party in surpluses, losses, property, and in debt acquired by TCAT shall be shared equally. L 3. Each party makes an annual contribution of equal amounts to the venture. 4. The financial statements of TCAT are to be audited annually. As of this report date, the audited summary financial information for the joint venture as of December 31, 1999 is not available. L.. Note 6—Contingencies As described in Note 5, the City is a partner in TCAT, a joint venture, and shares equally in surpluses or losses. The City may, in the future, be required to provide additional resources to finance its share of any operating deficits of TCAT. However, that amount, if any, for the year ended December 31, 1999 is undeterminable as of this report date. L -26- i CITY OF ITHACA j NOTES TO FINANCIAL STATEMENTS L' (CONTINUED) DECEMBER 31. 1999 L. Note 7- Other Changes in Fund Balance The following is an explanation of other changes in fund balance occurring in the current fiscal year. V .. General Fund The adjustment in the General Fund was in the amount of$1,166.The adjustment in the General Fund is to correct a prior year posting error. L L j i I i� v i i L i.. L -27- I r.. CITY OF ITHACA COMBINING BALANCE SHEET SPECIAL REVENUE FUNDS .. DECEMBER 31,1999 Water Fund Sewer Fund ASSETS Unrestricted Cash $ 298,028 $ 1,388,093 .. Restricted Cash Investments 1,477,260 538,800 Due from Other Funds Due from State and Federal Governments Due from Other Governments - Other Receivables, Net 374,014 261,890 Inventories 218,600 30,042 .. Total Assets $ 2,367,902 $ 2,218,825 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable $ 57,575 $ 47,519 '" Accrued Liabilities Due to Other Funds 28,807 34,352 Due to Other Governments 12,000 Due to Employees' Retirement System Other Liabilities Overpayments 1,863 .., Deferred Revenues Total Liabilities 88,245 93,871 FUND BALANCES Fund Balances-Reserved Reserved for Encumbrances 232,938 280,990 Reserved for Inventory and Supplies 218,600 30,042 Reserved for Unemployment Insurance Reserved for Insurance 60,017 48,573 Total Reserved Fund Balances 511,555 359,605 Fund Balances-Unreserved Appropriated-Ensuing Year's Budget Unappropriated 1,768,102 1,765,349 .. Total Unreserved Fund Balances 1,768,102 1,765,349 Total Fund Balances 2,279,657 2,124,954 Total Liabilities and Fund Balances $ 2,367,902 $ 2,218,825 See Independent Auditors' Report -28- `"` i L Solid Community Waste Development Urban Renewal Total 28,247 $ 863,325 $ $ 2,577,693 L2,016,060 176,522 176,522 30,352 2,168,218 398,079 3,232,553 248,642 $ 58,599 $ 3,208,065 $ 3981079 $ 8,251,470 $ 28,984 $ $ $ 134,078 29,097 92,256 476 273,079 285,555 i 14 1,877 2,168,218 2,168,218 r 58,571 2,168,218 273,079 2,681,984 513,928 248,642 ` � I 2,382 110,972 i.. 2,382 873,542 (2,354) 1,039,847 125,000 4,695,944 (2,354) 1,039,847 125,000 4,695,944 i- 28 1,039,847 125,000 5,569,486 ! $ 581599 $ 3,208,065 $ 398,079 $ 8,2511470 -28a- tmw CITY OF ITHACA COMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUNDS FOR THE YEAR ENDED DECEMBER 31,1999 Water Fund Sewer Fund Budget Actual Budget Actual REVENUES AND OTHER FINANCING SOURCES Local Sources: 'r Real Property Taxes $ $ $ $ Real Property Tax Items Departmental Income 2,436,812 2,620,017 2,624,990 2,549,527 w.. Intergovernmental Charges 1,000 199,423 Use of Money and Property 40,000 77,113 55,000 65,598 Licenses and Permits Fines and Forfeitures .. Sale of Property and Compensation for Loss 38,532 40,905 54,298 56,516 Miscellaneous Local Sources Interfund Revenues State Aid Federal Aid Total Revenues 2,516,344 2,738,035 2,734,288 2,871,064 .� Other Sources: Interfund Transfers 65,000 65,000 60,000 60,000 Total Revenues and Other Sources 2,581,344 2,803,035 2,794,288 2,931,064 .. EXPENDITURES AND OTHER FINANCING(USES) Current: .. General Governmental Support 59,795 47,359 102,646 37,607 Transportation Culture and Recreation Home and Community Services 1,700,241 1,385,018 2,001,278 1,613,621 Employee Benefits 325,129 285,015 264,605 234,971 Debt Service(Principal and Interest) 270,267 270,267 424,254 392,859 Total Expenditures 2,355,432 1,987,659 2,792,783 2,279,058 Other Financing(Uses): Interfund Transfers 415,438 415,438 223,179 223,179 Total Expenditures and Other Financing Uses 2,770,870 2,403,097 3,015,962 2,502,237 too Excess of(Expenditures)Revenues (189,526) 399,938 (221,674) 428,827 r Other Changes in Fund Balances Appropriated Fund Balances 189,526 221,674 Net Increase(Decrease) $ -0- 399,938 $ -0- 428,827 Fund Balances, Beginning of Year 1,879,719 1,696,127 .. Fund Balances, End of Year $ 2,279,657 $ 2,124,954 .. See Independent Auditors'Report .r -29- .. i LCommunity Urban Solid Waste Subtotal Development Renewal Total Budget Actual Budget Actual Actual Actual Actual L510,000 411,797 5,571,802 5,581,341 5,581,341 4,900 1,000 204,323 204,323 5,000 516 100,000 143,227 34,344 177,571 4,156 92,830 101,577 101,577 142,745 142,745 i 1,816,684 1,816,684 515,000 421,369 5,765,632 6,030,468 1,993,773 8,024,241 16,000 16,000 141,000 141,000 141,000 i-' 531,000 437,369 5,906,632 6,171,468 1,993,773 8,165,241 L 162,441 84,966 84,966 *� 416,720 337,129 4,118,239 3,335,768 1,864,200 5,199,968 74,372 62,060 664,106 582,046 582,046 L43,608 43,608 738,129 706,734 706,734 534,700 442,797 5,682,915 4,709,514 1,864,200 6,573,714 638,617 638,617 638,617 .• 534,700 442,797 6,321,532 5,348,131 1,864,200 7,212,331 (3,700) (5,428) (414,900) 823,337 129,573 952,910 L � 3,700 414,900 -0- -0- $ -0- (5,428) $ -0- 823,337 129,573 952,910 5,456 3,581,302 910,274 125,000 4,616,576 i $ 28 $ 4,404,639 $ 1,039,847 $ 125,000 $ 5,569,486 i I -29a- i i John H. Dietershagen,C.P.A. L— John E. Little,C.P.A. Ciaschi • Dietersha en • Little • Mickelson LLP Jerry E. Mickelson,C.P.A. g � Thomas K.van Derzee,C.P.A. Certified Public Accountants and Consultants i Debbie Conley Jordan, CRA. Patrick S.Jordan,C.P.A. Duane R.Shoen, C.P.A. Frederick J. Ciaschi, C.P.A. r_ Dennis G.Jones,C.P.A. (1958-1996) I t L REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS L Common Council City of Ithaca Ithaca, New York We have audited the general purpose financial statements of the City of Ithaca, as of and for the year ended December 31, 1999, and have issued our report thereon dated July 14, 2000. We conducted our audit in 6" accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. �-- Compliance i As part of obtaining reasonable assurance about whether the City of Ithaca's general purpose financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. I L Internal Control Over Financial Reporting In planning and performing our audit,we considered the City of Ithaca's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in -- which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. -30- CORTLAND ITHACA WATKINS GLEN r 18 Tompkins Street Suite 103, 118 Prospect Street 221 N. Franklin Street Cortland, New York 13045 Ithaca, New York 14850 Watkins Glen, New York 14891 607-753-7439 607-272-4444 607-535-4443 �'' www.cdlm.com i This report is intended solely for the information and use of the audit committee, management, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. L July 14, 2000 Ithaca, New York L.. L. I I I I i L. r i -31 - 6.w John H. Dietershagen, C.P.A. John E. Little, C.P.A. Ciaschi • Dietersha en • Little • Mickelson LLP Jerry E. Mickelson,C.P.A. g � Thomas K.Van Derzee,C.P.A. Certified Public Accountants and Consultants Debbie Conley Jordan, C.P.A. Patrick S.Jordan,C.P.A. Duane R. Shoen, C.P.A. Frederick J. Ciaschi, C.P.A. Dennis G.Jones,C.P.A. (1958-1996) L.. �- REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Common Council City of Ithaca Ithaca, New York L Compliance We have audited the compliance of the City of Ithaca with the types of compliance requirements described in the U. S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 1999. The City of Ithaca's major federal programs are identified in the summary of auditors' results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable ` to each of its major federal programs is the responsibility of the City of Ithaca's management. Our responsibility is to express an opinion on the City of Ithaca's compliance based on our audit. r We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial.audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City of Ithaca's compliance with those requirements and performing such other �— procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City of Ithaca's compliance with those requirements. In our opinion, the City of Ithaca complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 1999. -32- CORTLAND ITHACA WATKINS GLEN 18 Tompkins Street Suite 103, 118 Prospect Street 221 N. Franklin Street Cortland, New York 13045 Ithaca, New York 14850 Watkins Glen, New York 14891 607-753-7439 607-272-4444 607-535-4443 �... www.cdlm.com i L.. Internal Control Over Compliance The management of the City of Ithaca is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the City of Ithaca's internal control over compliance with �- requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. .. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or L. operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts, and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by j employees in the normal course of performing their assigned functions. We noted no matters involving the i.. internal control over compliance and its operation that we consider to be a material weakness. This report is intended solely for the information and use of the audit committee, management, federal awarding L agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. L / July 14, 2000 Ithaca, New York l I I i I L i -33- i i CITY OF ITHACA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31. 1999 i �- Federal Grantor/Pass-Through Federal Pass-Through Grantor Program Title CFDA# Grantor No. Expenditures U. S. Department of Housing & Urban Development Community Development Block Grant- L' Small Cities Program 14.219 N/A $1,704,469 U. S. Department of Housing L,. & Urban Development Community Development Block Grant- Program Income 14.219 N/A 112,215 Total Community Development Block Grant 1,816,684 U.S. Department of Transportation Highway Planning and Construction 20.205 N/A 116,019 U.S. Department of Justice Public Safety Partnership and Community Policing Grants 16.710 N/A 98.059 Total Expenditures of Federal Awards $2.030.762 i L. See Independent Auditors Report and Notes to Schedule of Expeditures of Federal Awards -34- i CITY OF ITHACA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS DECEMBER 31. 1999 i j L Note 1 - Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal City ' awards programs administered by the C ty of Ithaca, an entity as defined in Note 1 to the City's general purpose financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other government agencies, are included on the Schedule of Expenditures L of Federal Awards. Note 2- Basis of Accounting �- The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. LThe amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable program and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program. These records are periodically reconciled to the general ledger which is the source of the general purpose financial statements. Note 3- Indirect Costs 1., Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source for the data presented. Note 4- Matching Costs 6 Matching costs, i.e., the City of Ithaca's share of certain program costs, are not included in the reported expenditures. Note 5- Program Income LThe City of Ithaca received $112,215 in program income from their Community Development Block Grant-Small Cities Program for the fiscal year ended December 31, 1999. The program income is comprised of $87,536 and $24,679 in principal and interest payments on outstanding Community Development Block Grant Loans. Program income is included as part of Federal Sources in the Community Development Fund. t I L -35- 1 L LCITY OF ITHACA SCHEDULE OF FINDINGS AND QUESTIONED COSTS DECEMBER 31. 1999 I Section I- Summary of Auditors' Results Financial Statements Type of auditors' report issued: Unqualified LInternal control over financial reporting: Material weakness(es) identified? yes X no �- Reportable condition(s) identified that are not considered to be material weakness(es)? yes X none reported i L Noncompliance material to financial statements noted? yes X no Federal Awards Internal control over major programs: �.. Material weakness(es) identified? yes X no Reportable condition(s) identified that L are not considered to be material weakness(es)? yes X none reported Type of auditors'report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of Circular A-133? yes X no Identification of major programs: CFDA Numbers Name of Federal Program or Cluster 14.219 Community Development Block Grant -Small Cities Dollar threshold used to distinguish between type A and type B programs $300,000 ` Auditee qualified as low-risk auditee: X yes no Section II - Financial Statement Findings: None Section III - Federal Award Findings and Questioned Costs: None i -36-