HomeMy WebLinkAboutCity of Ithaca Financial Report for 2000 (2) 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, 2000, 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.
However, during our audit, we became aware of several matters that are opportunities for strengthening internal
controls and operating efficiency. This letter summarizes our current year comments and recommendations
regarding these matters.
Current Year:
Community Development
Finding:
During our current year audit, we noted that Community Development has no controls in place for tracking
invoices from the time they are received until they are sent to the Bookkeeper. Also, there is no record kept as
to what invoices are sent to the bookkeeper and what the bookkeeper returns.
Recommendation:
We recommend procedures be set in place to track invoices as they are received, sent to the Bookkeeper and
returned as paid.
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 consist of:
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
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• 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.
• 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.
• 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 government's 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 time consuming.
This letter does not affect our report dated June 27, 2001, 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.
'
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June 27, 2001 i
Ithaca, New York
C /
John H. Dietershagen, C.P.A.
John E. Little,C.P.A. Ciaschi • Dietersha en • Little • Mickelson LLP
Jerry E. Mickelson,C.P.A. $ �
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,
2000, and have issued our reportthereon dated June 27, 2001. Professional standards require that we provide you
with the following information related to our audit.
Our Responsibility lnd _r Generally Accepted Auditing Standards and OMB Circular A-133
As stated in our engagement let':er 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 ITHAC.A 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
Significant Ac _o in ing 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.
Ar _ounting 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 Adrustments
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.
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
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.
Consultation With Other Independent Accountants
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.
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Iscuec 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.
Diffir_ulties 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.
+ ,4
June 27, 2001
Ithaca, New York
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CITY OF ITHACA
DECEMBER 31, 2000
— General Purpose Financial Statements:
Independent Auditors' Report ................................................................................................................... 1-1a
Combined Balance Sheet-All Fund Types, Account Groups, and
ComponentUnits ................................................................................................................................ 2-3
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances -
AII Governmental Fund Types, Expendable Trust Funds, and Component Units .............................. 4
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual - General and Special Revenue Funds ................................................................ 5-5a
Combined Statement of Revenues, Expenses, and Changes in Fund Balance-
Nonexpendable Trust Fund ................................................................................................................ 6
Statement 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-
Special Revenue Funds ...................................................................................................................... 29-29a
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):
Report on Compliance With Requirements Applicable to Each Major
Program and Internal Control Over Compliance in Accordance With
OMBCircular 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
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L John H. Dietershagen, C.P.A. C /
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
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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, 2000, 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 auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the 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.
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, 2000, and the results of its operations and the
cash flows of its nonexpendable trust funds for the year then ended, in conformity with accounting principles
generally accepted in the United States of America.
In accordance with Government. Auditing Standards, we have also issued a report dated June 27, 2001 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
performed in accordance with Government Auditing Standards and should be read in conjunction with this report
in considering the results of our audit.
LCORTLAND ITHACA WATKINS GLEN
18 Tompkins Street Suite 103, 118 Prospect Street 221 N. Franklin Street
L
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
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.
June 27, 2001
Ithaca, New York
CITY OF ITHACA
COMBINED BALANCE SHEET
ALL FUND TYPES,ACCOUNT GROUPS,AND COMPONENT UNITS
DECEMBER 31.2000
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 $ 469,441 $ 1,321,300 $ $ $ 103,894 $ $ $ 735,673
Restricted Cash
Investments 3,250,479 3,172,218 15,326,296 291,781 330,202 2,878,252
Taxes Receivable(Net) 574,818
Due From Other Funds 231,987 18,675 50 974,785
Due From State and Federal Governments 725,318 950,159
Due From Other Governments 987,778 68,101 190,562 13,947
Prepaid Expenses _
Other Receivables,Net 589,544 4,098,353 46,521 41,922
Inventories 173,805 265,925
Restricted Assets
Fixed Assets 58,639,156 40,258,341
Deferred Expenditures _
Provisions Reserved in Debt Service
Provision to be Made in Future Budgets 20,141,813
Total Assets $ 7,003,170 $ 8,944,572 $ 16,513,588 $ 1,266,566 $ 434,096 $ 20,141,813 $ 58,639,156 $ 43,928,135
LIABILITIES,FUND EQUITY,AND OTHER CREDITS
Liabilities
Accounts Payable $ 344,419 $ 142,423 $ 628,355 $ 44,921 $ $ $ $ 63,720
Accrued Liabilities 91,553 4,138
Notes Payable
Tax Anticipation Notes
Revenue Anticipation Notes
Budget Notes
Bond Anticipation Notes 20,739,647
Capital Notes
Bonds Payable 17,829,030
Bond Interest and Matured Bonds Payable _
Due to Other Funds 18,725 44,040 1,162,732
_
Due to Other Governments 857,081 285,629 2,589
Due to Employees'Retirement System _ _ 948,097
Installment Purchase Debt
Judgments and Claims Payable
Compensated Absences 1,364,686
Other Liabilities 426,583 77,594 1,200
Deferred Compensation
Overpayments _
Deferred Revenues 819,644 2,998,740
Total Liabilities Carried Forward 2,466,452 3,470,832 22,622,287 44,921 77,594 20,141,813 71,647
See Independent Auditors'Report and Notes to Financial Statements
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CITY OF ITHACA
COMBINED BALANCE SHEET
ALL FUND TYPES,ACCOUNT GROUPS,AND COMPONENT UNITS
DECEMBER 31,2000
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 $ 2,466,452 $ 3,470,832 $ 22,622,287 $ 44,921 $ 77,594 $ 20,141,813 $ $ 71,647
FUND EQUITY AND OTHER CREDITS
Fa ify
Investment in General Fixed Assets 58,639,156 40,258,341
Fund Balances-Reserved
Reserved for Encumbrances 226,753 336,378 27,214
Reserved for Inventory and Supplies 173,805 265,925 _
Reserved for Taxes Raised Outside of Tax Limit
Reserved for Insurance 1,817,648 117,366 38,464
Reserved for Debt 1,221,645
Reserved for Minority Interest
Capital Reserve 4,847,432 1,439,010
Reserved for Highway Capital Projects _
Reserved for Unemployment Insurance
Reserved for Trusts 356,502
Reserved for Workers'Compensation 100,000 _
Reserved for Retirement System Credits
Total Reserved 2,318,206 719,669 4,847,432 1,221,645 356,502 1,504,688
Fund Balances-Unreserved
Appropriated-Ensuing Year's Budget 698,453 1,449,182 865,059
Unappropriated 1,520,059 4,754,071 (12,405,313) 1,228,400
Total Unreserved 2,218,512 4,754071 (10,956,131) 2,093,459
Total Fund Balances _4,536,718 5,473,740 (6,108,699) 1,221,645 356,502 3,598,147
Total Fund Equity and Other Credits 4,536,718 5,473,740 (6,108,699) 1,221,645 356,502 58,639,156 43,856,488
Total Liabilities, Fund Equity,
and Other Credits $ 7,003,170 $ 8,944,572 $ 16,513,588 $ 1,266,566 $ 434,096 $ 20,141,813 $ 58,639,156 $ 43,928,135
See Independent Auditors'Report and Notes to Financial Statements
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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 31,2000
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 $ 8,039,700 $ $ $ $ $
Real Property Tax Items 304,305
Nonproperty Tax Items 8,329,838
Departmental Income 2,339,461 5,627 294 51,148 1,325,974
Intergovemmental Charges 3,485,061 234,145 260,256
Use of Money and Property 374,133 249,954 1,041,672 13,626 5,954 210,832
Licenses and Permits 292,195
Fines and Forfeitures 719,084
Sale of Property and Compensation for Loss 207,090 10,569 46,521
Miscellaneous Local Sources 661,266 196,004 97,235 39,877
Interfund Revenues 256,810
State Sources 2,301,333 340,160
Federal Sources 153,744 1,802,281 759,999
Total Revenues 27,464,020 8,120,247 2,188,352 110,861 57,102 1,836,939
Other Financing Sources
Interfund Transfers 1,366,545 65,000 355,474
Other Financing Sources
Proceeds of Obligations 2,883,188
Total Revenues and Other Financing Sources 28,830,565 8,185,247 5,427,014 110,861 57,102 1,836,939
EXPENDITURES AND OTHER FINANCING(USESI
Current:
General Governmental Support 2,810,663 91,222 978,866 9,800
Public Safety 10,302,691 950,088
Public Health
Transportation 3,345,684 3,345,861
Economic Assistance and Opportunity 61,000
Culture and Recreation 3,636,570 104,355
Home and Community Services 826,575 5,838,995 1,228,028 48,587 1,874,876
Employee Benefits 4,493,683 647,887 201,030
Debt Service(Principal and Interest) 3,876,694 724,566 116,573 12,955
Total Expenditures 29,353,560 7,302,670 6,607,198 116,573 48,587 2,098 661
Other Financing Uses
Interfund Transfers 820,513 966,506
Total Expenditures and Other Financing Uses 29,353,560 8,123,183 7,573,704 116,573 48,587 2,098,661
Excess of(Expenditures)Revenues (522,995) 62,064 (2,146,690) (5,712) 8,515 (261,722)
Fund Balances,Beginning of Year 5,234,990 5,569,494 (3,962,009) 1,227,357 287,900 3,858,225
Changes in Fund Balance (175,277) (157,818) 1,644
Fund Balances,End of Year $ 4,536,718 $ 5,473,740 $ (6,108,699) $ 1,221,645 $ 296,415 $ 3,598,147
See Independent Auditors'Report and Notes to Financial Statements
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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 2000
General Fund
Modified Variance _
Budget Actual Encumbrances Fay.-Unfay.
REVENUES AND OTHER FINANCING SOURCES
Local Sources:
Real Property Taxes $ 7,749,748 $ 8,039,700 $ $ 289,952
Real Property Tax Items 38,980 304,305 265,325
Nonproperty Tax Items 8,476,509 8,329,838 (146,671)
Departmental Income 2,281,884 2,339,461 57,577
Intergovernmental Charges 3,656 745 3,485,061 (171,684) _
Use of Money and Property 419,500 374,133 (45,367)
Licenses and Permits 227,100 292,195 65,095
Fines and Forfeitures 801,000 719,084 (81,916)
Sale of Property and Compensation for Loss 242,676 207,090 (35,586) -
Miscellaneous Local Sources 670,697 661,266 (9,431)
Interfund Revenues 256,810 256,810 -0-
State Sources 2,112,440 2,301,333 188,893
Federal Sources 124,023 153,744 29,721
Total Revenues 27,058,112 27 464,020 405,908
Other Financing Sources _
Interfund Transfers 1,407,045 1,366,545 (40,500)
Other Financing Sources
Proceeds of Obligations
Total Revenues and Other Financing Sources 28,465,157 28,830,565 365,408 _
EXPENDITURES AND OTHER FINANCING(USES)
Current:
General Governmental Support 2,881,346 2,810,663 70,174 509 _
Public Safety 10,411,395 10,302,691 106,478 2,226
Health
Transportation 3,375,659 3,345,684 29,869 106
Economic Development and Opportunity 61,000 61,000 -0- _
Culture and Recreation 3,645,131 3,636,570 6,375 2,186
Home and Community Services 837,394 826,575 10,818 1
Employee Benefits 4,497,181 4,493,683 3,039 459
Debt Service(Principal and Interest) 3,877,712 3,876,694 _ 1,018 _
Total Expenditures 29,586,818 29,353,560 226,753 6,505
Other Financing (Uses)
Interfund Transfers _
Total Expenditures and Other Financing(Uses) 29,586,818 29,353,560 226,753 6,505
Excess of(Expenditures) Revenues (1,121,661) (522,995) (226,753) $ 371,913
Appropriated Fund Balances 1,121,661
Net Increase(Decrease) $ -0- (522,995) $ (226,753)
Reconciliation of Budget to GAAP Basis of Accounting
Fund Balances, Beginning of Year 5,234,990
Other Changes in Fund Balances (175,277)
Fund Balances, End of Year $ 4,536,718
See Independent Auditors' Report and Notes to Financial Statements
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Special Revenue Funds
L Modified Variance
Budget Actual Encumbrances Fay.-Unfay.
L $ $ $ $
5,938,173 5,627,294 (310,879)
L 6,000 234,145 228,145
100,000 215,648 115,648
1,000 10,569 9,569
163 163
6,045,173 6,087,819 42,646
65,000 65,000 -0-
6110173 6,152,819 - 42,646
115,978 91,222 24,756
4,287,678 3,836,136 331,508 120,034
688,321 647,887 4,870 35,564
L 711,611 724,566 _ 1( 2,955)
5,803,588 5,299,811 336,378 167,399
I
i
820,513 820,513 -0-
6,624,101 6,120,324 336,378 167,399
(513,928) 32,495 (336,378) $ 210,045
513,928
! $ -0- 32,495 $ (336,378)
29,569
5,569,494
(157,818)
$ 5,473,740
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CITY OF ITHACA
COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE
NONEXPENDABLE TRUST FUND
FOR THE YEAR ENDED DECEMBER 31, 2000
Fiduciary
Fund Type
Nonexpendable
Trust
Operating Revenues:
Gifts and Donations $
-- Other Miscellaneous Local Sources
Total Operating Revenues
Operating Expenses:
General Support _
Instruction
Community Services _
Total Operating Expenses
Operating Income
Nonoperating Revenues (Expenses)
Interest Revenue
Transfer to Other Funds
Total Nonoperating Revenues (Expenses)
NET INCOME
Fund Balance, January 1, 60,087
Fund Balance, December 31, $ 60,087
See Independent Auditors' Report and Notes to Financial Statements
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CITY OF ITHACA
STATEMENT OF CASH FLOWS
NONEXPENDABLE TRUST FUND
FOR THE YEAR ENDED DECEMBER 31, 2000
Cash Flows from Operating Activities:
Cash Used by Operations $
Gifts and Donations
Cash Flows from Noncapital Financing Activities:
Interfund Transfers
Cash Flows from Financing Activities
Cash Flows from investing Activities:
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
See Independent Auditors' Report and Notes to Financial Statements
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CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000
Note 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
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.
A. 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.
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
certain entities considered in determining the City of Ithaca's reporting entity.
1. Included in the Reporting Entity
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,
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
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CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
DECEMBER 31, 2000
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
balance/retained earnings, revenues and expenditures/expenses 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. 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:
General Fund - the principal operating fund and includes all operations not required to be
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
_ 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.
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.
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.
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
payment of future principal and interest on long-term indebtedness).
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CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
DECEMBER 31, 2000
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.
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
than buildings, and equipment utilized for general government purposes.
General Long-Term Debt Account Group- used to account for ail long-term debt.
_ 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.
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.
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.
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.
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.
_ 10-
CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
DECEMBER 31, 2000
Deferred Revenues - The City of Ithaca reports deferred revenues on its combined balance sheet.
Deferred revenue arises when 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. City taxes are collected in two installments, the first due in January and
the second due in June. The City collects county taxes from January 1, through May 31. Collected
County taxes are remitted to the County on a monthly basis.
Unpaid County taxes are enforced pursuant to Article 11 of Real Property 'Tax Law. The County
retains all right, title, and interest in any unpaid County taxes. Unpaid City taxes and unpaid school
taxes plus advertising costs and accrued penalties, are foreclosed two years after lien date pursuant to
Article II of Real Property Tax Law. Should both the County and the City have liens on a particular
property, either may foreclose. The foreclosure is subject to the other's lien. The City and the County,
based on the tax liens each holds, share proceeds from the sale of the property.
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 cf 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.
_ 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.
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CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
DECEMBER 31, 2000
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:
F=und Balance Expendi- Other Fund Balance
_Beg. of Year Revenues tures Changes End of Year
Total Funds Included
in Budget
Comparison 4,404,647 $6,152,819 $6,120,324 $ (157,818) $4,279,324
Community Dev. 1,039,847 2,032,428 2,002,859 1,069,416
Urban Renewal 125,000 125,000
Total Special
Revenue Funds $ 5.569.494 $8 18� $8 123,183 $ 157 818) $5,473,740
_ 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.
H. Receivables
Receivables are :stated net of estimated allowances for uncollectible amounts. Amounts due from
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.
I. Inventory
Inventory is valued at cost utilizing the first-in, first-out method for the General, Water, and Sewer
Funds.
J. Property, Plant, and Equipment-General
During 1989, the City implemented a system of General Fixed Assets. Fixed assets purchased for
general governmenta 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.
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.
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CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
DECEMBER 31, 2000
No depreciation has been provided on general fixed assets, nor has interest on general fixed
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.
L. Vacation and Sick Leave and Compensatory Absences
City of Ithaca employees are granted vacation, sick leave, and other leave benefits as defined in
agreements between the City and the representative units.
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
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
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.
A portion of the compensated absence liability recognized is attributable to the value of sick leave
converted to pay employees' share of postemployment 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
recognizes the cost of providing benefits by recording its share of insurance premiums as an
expenditure in the year paid. During the year, $1,090,486 was paid on behalf of 186 retirees and
recorded as an expenditure in the General Fund.
Note 2- Stewardship, Compliance Accountability
_ Deficit Fund Balances
The Capital Projects Fund had a deficit fund balance of$(6,108,699) at December 31, 2000, due to the
use of short-term financing.
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..
..
w
CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
DECEMBER 31, 2000
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
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.
— 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.
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.
Deposits and investments at year end are valued at cost or cost plus interest and are
categorized as ether (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) uncollatemlized.
Total financial institution (bank) balances at December 31, 2000, per the banks, for the City
and its component units were$3,816,550. These deposits are categorized as follows:
Carrying
1 _ 2 3 Value
— $ 3,816,550 $ $ $2,630,308
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
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 riot in the City's name. The City and its component units have the following
investments in the following denominations:
- 14-
CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
DECEMBER 31, 2000
Repurchase Agreements Category
$ 778,841 FHLB due 1/17/01, rate 6.50% (1)
1,243,112 FHLB due 1/17/01, rate 6.50% (1)
988,184 FNMAP due 1/23/01, rate 6.50% (1)
1,560,795 FHLMC due 2/7/01, rate 6.43% (1)
2,124,112 FHLB/FHLMC/FFCB due 2/6/01, rate 6.50% (1)
454,466 FHLB due 4/24/01, rate 6.45% (1)
3,876,134 FNMA/FHLB due 1/17/01, rate 6.50% (1)
859,576 FNMA due 1/17/01, rate 6.50% (1)
287,436 FNMA due 1/17/01, rate 6.50% (1)
5,966,656 FHLB/FHLMC due 1/4/01, rate 6.50% (1)
1,083,093 FHLMC due 6/12/01, rate 6.30% (1)
3,387,974 US Treasury Notes due 05/23/01, rate 6.45% (1)
$22,610,379
Certificates of Deposit Category
$ 2,628,847 365 days, maturity date 8/7/01, rate 6.60% (1)
10,002 365 days, maturity date 04/29/01, rate 5.25% (1)
$2 638..849
3. Property Taxes
At December 31, 2000, the total real property tax assets of $574,818 are offset by deferred
revenue of$574,818.
4. Sales Taxes and Collection
The City, under the general authority of Article 29 of the Tax Law, imposes a '/2% sales and
compensating use tax. The County of Tompkins, by similar authority, also imposes a '/2%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 there from 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
2000, direct payments from this source aggregated $7,750,720. It was credited to the General
Fund and used to finance general City expenses.
Net collections of the 1'/z% sales tax imposed with the City by the County are retained by the
County, and, together with '/z of the tax levied in the towns outside of the City, or 1'/z%, is applied to
the reduction of taxes levied on a countywide 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.
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CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
DECEMBER 31, 2000
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 $11,701,685 $ 126,310 $ -0- $ 11,827,995
Buildings 26,879,970 1,927,702 91,126 28,716,546
Machinery& Equipment 15,887,654 2,348,861 141,900 18,094,615
Total $54,469,309 $4.402.873 $ 233.026 $5-8,
6. Other Receivables
The following is a breakdown of other receivables:
Fund Description _ Amount
General Reimbursement of Insurance $ 16,724
General Ticket Fine Collection 106,676
— General Building Permit Fees 293,431
General Mortgage Receivable 90,000
General Youth Bureau Grants 2,263
_ General Miscellaneous 60,450
General Assessments Receivable 20,000
$ 589.544
Special Revenue:
Water Water Rents $ 391,406
Sewer Sewer Rents 273,601
Solid Waste Fees 36,527
Community
Development Loans Receivable 2,998,740
Urban Renewal Due from Developer 398,079
$4 CQ8 353
Component Unit:
General Septage Fees $ 21,983
Capital Sewer Connection Fees 19,939
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.
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CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
DECEMBER 31, 2000
— 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
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.
Employees in the System more than ten years are no longer required to contribute. 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
— 2000 $143,733 $ 227
1999 131,624 7,129
1998 156,436 33,749
The City of It'laca'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 $735,000 is reported in the General Long-Term Debt Account
Group.
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CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
DECEMBER 31, 2000
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$794,405 of which $133,368 was charged to expenditures/expenses in the
Governmental 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.
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
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, 2000; in the Capital Fund, consisted of the
following:
Interest Date Maturity
Description Amount _Rate_ Issued Date_
Primary Government
Computer Network System (Phase 1) $ 33,000 4.05% 1996 1/01
Wheelchair Lift Van Acquisition 11,000 4.05% 1996 1/01
— DPW Equipment Acquisition (96) 9,000 4.05% 1996 1/01
Trash & Recycling Bin Replacement 6,000 4.05% 1996 1/01
Traffic Counter/Collection Equipment 10,500 4.05% 1996 1/01
— Building Department Computer Acquisition 8,000 4.05% 1996 1/01
City Hall Network System 15,000 4.05% 1996 1/01
Transit Capital Improvement 44,000 4.05% 1996 1/01
_ Street& Road Construction (96) 167,829 3.50% 1996 1/01
ADA Barrier Removal 17,937 3.50% 1996 1/01
DPW Equipment Acquisition (96) 148,078 3.50% 1996 1/01
Fire Dept. Staff Vehicle(96) 21,423 3.50% 1996 1/01
Fire Dept. Training Ctr. Improvement(96) 55,151 3.50% 1996 1/01
Cass Park Ballfield Lights Replacement 121,677 3.50% 1996 1/01
Frosh Alley Restoration 60,417 3.50% 1996 1/01
— W. State St. Lights/Landscape Improvement 83,915 3.50% 1996 1/01
Solidwaste Packer Acquisition 42,846 3.50% 1996 1/01
GIAC Boiler Replacement 14,283 3.50% 1996 1/01
Youth Bureau HVAC Improvement 112,611 3.50% 1996 1/01
— DPW Sidewalk Program (96) 50,240 4.00% 1996 8/01
HVAC/Lighting City Building 23,445 4.00% 1996 8/01
Reconstruction Cascadilla Bthse. 66,986 4.00% 1996 8/01
Wood St. Park Improvements 19,247 4.00% 1996 8/01
Acquisition of Sub. Parklands 520,180 4.00% 1996 8/01
Watershed Property Acquisition 146,850 4.00% 1996 8/01
Mancini Property Acquisition 31,594 4.00% 1996 8/01
Tennis Court Reconstruction 57,063 4.00% 1996 8/01
Cliff Street Parking Lot Acquisition 64,976 4.00% 1996 8/01
DPW Cold Storage Building Construction 250,200 3.50% 1996 1/01
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CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
DECEMBER 31, 2000
Fire Dept. Light Rescue Vehicle $ 35,706 3.50% 1996 1/01
Fire Dept. Aerialscope Vehicle Acquisition 725,022 3.50% 1996 1/01
Street&Road Construction (97) 268,620 3.50% 1997 1/01
_ Stewart Park Playground Equipment 53,724 3.50% 1997 1/01
DPW Equipment:Acquisition (97) 137,819 3.50% 1997 1/01
DPW Sidewalk Program (97) 61,057 3.50% 1997 1/01
Fire Dept. Cental St. Improvement 63,902 3.50% 1997 1/01
Fire Dept. Training Ctr. Improvement 24,256 3.50% 1997 1/01
GIAC Gym Renovations 65,299 3.50% 1997 1/01
City Hall Smoke/Records System 37,212 3.50% 1997 1/01
Skate Board Park Construction 58,201 3.50% 1997 1/01
City Facility Code Comp. Work 1,092,773 3.50% 1997 1/01
Water Facility Compl. Work 59,992 3.50% 1997 1/01
Sewer Facility Compl. Work 59,994 3.50% 1997 1/01
Computer Work Hard/Software 43,500 4.50% 1997 1/02
Youth Bureau Van Acquisition 10,000 4.50% 1997 1/02
DPW Tractor/Air Compressor 12,000 4.50% 1997 1/02
Fire Dept. Defibr. Equipment Acquisition 21,000 4.50% 1997 1/02
Water Front Revitalization Project 9,000 4.50% 1997 1/02
GIS Monuments 23,000 4.50% 1997 1/02
Infrastructure Planning & Design 16,000 4.50% 1997 1/02
Bicycle Masterplan 27,500 4.50% 1997 1/02
West End Parking Lot 346 32,562 5.00% 1997 8/01
Cascadilla Boathouse Reconstruction 126,998 5.00% 1997 8/01
Computer Acquisition Building Dept. 211 15,207 5.00% 1997 8/01
West End Sculpture Project 36,380 5.00% 1997 8/01
SS Comm. Center Reconstruction 347 287,325 5.00% 1997 8/01
Fire Dept. Training Center Construction 42,150 5.00% 1997 8/01
Esty Street Sidewalks 249 29,306 5.00% 1997 8/01
Stewart Ave. Bricge Repair 111,946 5.00% 1997 8/01
_ Computer Network Acquisition Phase IV 40,910 4.15% 1998 1/03
DPW Equipment Acquisition (98) 36,700 4.15% 1998 1/03
IFD Cent. Improvement Kitchen/Hose/Appl. 9,710 4.15% 1998 1/03
IFD Water/Ice Rescue Program 14,971 4.15% 1998 1/03
IPD Digital Comm. Record Equipment 22,085 4.15% 1998 1/03
Youth Bureau Van Acquisition 17,200 4.15% 1998 1/03
St. & Rd. Construction Additional (97) 94,354 3.50% 1998 1/01
St. & Rd. Construction (98) 283,064 3.50% 1998 1/01
Acquisition of Cherry St. Ext. Lands 408,341 3.50% 1998 1/01
Phase 1 Eng. Seneca St. Garage 46,080 3.50% 1998 1/01
DPW Equipment Acquisition (98) 235,819 3.50% 1998 1/01
DPW Sidewalk Program (98) 68,199 3.50% 1998 1/01
Fire Training Center Improvement(98) 38,689 3.50% 1998 1/01
IFD Engine/Pumper Replacement 580,353 3.50% 1998 1/01
Fuel Tank Compliance 63,651 3.50% 1998 1/01
Commercial Ave. Signal Upgrade 38,689 3.50% 1998 1/01
Cass Park Rink Improvement 119,098 3.50% 1998 1/01
Reconstruction Improvement
Haley/Cass Pools 53,143 3.50% 1998 1/01
Transit System Improvement(98) 78,194 3.50% 1998 1/01
Copier Acquisition 383 56,100 4.00% 1999 8/01
- 19 -
CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
DECEMBER 31, 2000
City Hall Renovations 381 $ 500,000 4.00% 1999 8/01
Computer Upgrades Y2K 370 79,623 4.00% 1999 8/01
Electronic Truck Scales IPD 379 16,400 4.00% 1999 8/01
IPD Tahoe Vehicle Acquisition 379 46,100 4.00% 1999 8/01
Parking Meters Acquisition 377 52,200 4.00% 1999 8/01
N. Cayuga St. Bridge Reconstruction 382 745,000 4.00% 1999 8/01
Sewer System Improvements 606 635,000 4.00% 1999 8/01
Computer Equipment Munis GUI 211 15,000 4.00% 1999 8/01
IFD Pumper Acquisition Additional 356 340,000 4.00% 1999 8/01
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 Acquisition 370 230,000 3.75% 1999 1/04
Stewart Ave. Stabilization 289 32,000 3.75% 1999 1/04
Telephone Upgrade Voice Mail 369 60,000 3.75% 1999 1/04
Giles St. Bridge Improvement 265 857,000 3.50% 1999 1/01
Linn Street Bridge Improvement 280 788,000 3.50% 1999 1/01
West Clinton St. Bridge Improvement 366 120;000 3.50% 1999 1/01
Acquisition Traffic Signs Residential 365 33,000 3.50% 1999 1/01
Lake Street Road Reconstruction 371 200,000 3.50% 1999 1/01
Seneca St. Parking Garage Imp. 372 1,100,000 3.50% 1999 1/01
Sidewalk Reconstruction (99)249 75,000 3.50% 1999 1/01
DPW St. & Rd. Construction (99) 373 300,000 3.50% 1999 1/01
Cass Park Pool Deck Phase III Imp. 150,000 3.50% 1999 1/01
Inlet Island Parking Lot Construction 375 100,000 3.50% 1999 1/01
Lake St. Rd. Reconstruction Sewer 608 300,000 3.50% 1999 1/01
Roof Reconstruction S&F Building 368 93,500 3.50% 1999 1/01
Stewart Ave. Bridge Improvement 266 526,000 3.50% 1999 1/01
Southwest Area Dev 26,550 5.00% 2000 8/01
Route 13 Pedestrian Bridge Construction 250,000 5.00% 2000 8/01
City Wide Traffic Calming Improvements 288,525 5.00% 2000 8/01
Parking Meters Upgrade 65,000 5.00% 2000 8/01
City Hall Renovations 180,000 5.00% 2000 8/01
Traffic Signal Improvements 210,000 5.00% 2000 8/01
— West End Improvements 25,000 5.00% 2000 8/01
Stewart Park Pavilion Improvements 30,000 5.00% 2000 8/01
Traffic Signal Improvements-City Wide 130,000 5.00% 2000 8/01
_ Southwest Area Land Use 150,000 5.00% 2000 8/01
Computer Acquisitions 20,000 5.00% 2000 8/01
Giles Street Bridge Renovations 223,000 5.00% 2000 8/01
Parking Ticket Issuance System 55,000 4.90% 2000 1/05
Document Processing Equipment Acquisition 25,000 4.90% 2000 1/05
HR Automation Software Acquisition 30,000 4.90% 2000 1/05
Computer Network Improvements 113,000 4.90% 2000 1/05
Traffic Signal Replacement 391 100,000 4.90% 2000 1/05
Cass Park Playground Improvements 48,000 4.90% 2000 1/05
Street Light Poles Replacements 25,000 4.90% 2000 1/05
_ Equipment Acquisitions 2000 236,500 4.90% 2000 1/05
City Hall Renovations 381 120,000 4.50% 2000 1/01
Commons Improvements 386 20,000 4.50% 2000 1/01
Inlet Island Improvements 375 175,000 4.50% 2000 1/01
DPW Street& Road Construction 392 300,000 4.50% 2000 1/01
-20 -
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CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
DECEMBER 31, 2000
Tioga Street Construction 393 $ 40,000 4.50% 2000 1/01
IPD Lockup Plumbing Improvements 394 40,000 4.50% 2000 1/01
City Hall Renovations 381 7,000 4.50% 2000 1/01
_ First Street Reconstruction 397 10,000 4.50% 2000 1/01
DPW Sidewalk Maintenance Program 249 300,000 4.50% 2000 1/01
West State Street Reconstruction 380 800,000 4.50% 2000 1/01
Southwest Natural Area Development 399 20,000 4.50% 2000 1/01
Commons Improvements 386 352,000 4.50% 2000 1/01
Equipment Acquisition 390 193,000 4.50% 2000 1/01
Cherry Street Land Acquisition 351 10,000 4.50% 2000 1/01
Total $20,739.647
3. Long-Term Debt
a. At December 31, 2000, the total outstanding indebtedness of the City of Ithaca aggregated
$38,568,677. Of this amount, $32,666,882 was subject to the constitutional debt limit.
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 borne 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
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
liabilities.
c. Other Long-Term Debt- In addition to the above long-term debt, the local government had the
following non-current liabilities:
_ Due to Employees' Retirement System - Represents the non-current portion of the liability
to the various state retirement systems.
Compensated Absences - Represents the unfunded value of the liability for compensated
absences.
d. Summary Long-Term Debt - The following is a summary of long-term liabilities outstanding at
December 31, 2000 by fund type and account group:
General
Long-Term
Debt Account Component
Liability Group Unit Total
Statutory Installment Bond $ 5,287,491 $ -0- $ 5,287,491
-- Serial Bonds 11,241,539 1,300,000 12,541,539
Total Bonds 16,529,030 1,300,000 17,829,030
Unbilled Retirement 948,097 -0- 948,097
Compensated Absences 1,364,686 -0- 1,364 686
Total Long-Term Debt $,18,841,813 $-1 300}000 $ 20 141813
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CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
DECEMBER 31, 2000
e. The following is a summary of changes in long-term liabilities for the period ended
December 31, 2000:
Bonds Unbilled Component Compensated
_ Payable Retirement Unit Absences
Payable at Beginning of
Fiscal Year $ 16,568,160 $ 549,614 $1,463,784 $ 1,099,605
Additions 1,907,011 398,483 -0- 265,081
Deletions 1,946,141 -0- 163,784 -0-
Payable at End of
Fiscal Year $ 16.529,060 $ 948.097 $1,300 000 $_1 364 686
Additions and deletions to unbilled retirement are shown net since it is impractical to
L determine these amounts separately.
BAN's redeemed during the year amounted to $2,883,188 of which $976,177 was
I redeemed through current appropriations and $1,907,011 through issuance of Bonds.
f. Long-Term Debt Maturity Schedule - The following is a statement of serial bonds and capital
notes with corresponding maturity schedules.
Original Final
Description Date Original Interest Maturity
By Fund Issued Amount Rate _Date Outstanding
General Fund
Youth Bureau Building 1988 $1,437:940 6.875% 2006 $ 510,784
Dryden Rd. Land Acquisition 1988 126,000 6.875% 2006 48,000
Dryden Rd. Parking Facility 1988 1,793,860 6.875% 2006 704,349
Seneca St. Parking Ramp 1988 846,570 6.875% 2006 264,567
Cass Park 1991 91,650 6.400% 2005 36,000
Asbestos Removal 1991 144,900 6.400% 2009 79,950
Ind. Park Improvement-Streets 1991 331,205 6.400% 2005 128,000
Thurston Avenue Bridge 1991 260,575 6.400% 2009 144,000
Hudson Street Reconstruction 1991 1,474,910 6.400% 2005 623,000
Fire Station Construction 1991 2,170,815 6.400% 2009 1,167,000
Fire Station Reconstruction 1991 941,860 6.400% 2009 517,280
Stewart Avenue Bridge 1991 427,440 6.400% 2009 233,280
Court Facility Construction 1991 1,900,000 6.400% 2009 1,015,630
State St. Pedestrian Mall 1991 155,650 6.400% 2009 83,025
Youth Bureau Reconstruction 1991 78,660 6.400% 2009 43,500
Fire Station Reconstruction 1991 82,600 6.400% 2009 45,600
City Hall HVAC System 1991 147,505 6.400% 2001 16,650
DPW Sidewalk Reconstruction 1991 88,510 6.400% 2001 9,985
DPW Street Sweeper 1991 87,400 6.400% 2006 38,000
Property Acquisition 1991 300,000 6.400% 2005 117,000
Employee Retirement 1992 890,000 6.90% 2005 415,000
Various Street Reconstruction 1993 675,000 3.95% 2001 100,000
Stewart Ave. Bridge Paint 1993 315,000 3.95% 2001 54,000
Green St. Ramp 1994 720,000 4.10% 2005 450,000
Various St. Reconstruction 1995 886,000 5.70% 2006 458,000
Street& Rd. Construction (93) 1996 761,000 4.60% 2006 448,396
-22 -
CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
DECEMBER 31, 2000
Fiber Optic Line 1996 $ 118,000 4.60% 2006 $ 77,242
Highway Paver Acquisition 1996 141,000 4.60% 2006 92,297
Fiber Optic Line 1996 55,000 4.60% 2006 36,003
Commons Improvements 1997 216,356 5.00% 2012 189,500
'- GIAC Reconstruction 1997 432,712 5.00% 2012 378,990
Reconstruction N. Cayuga Bridge 1997 40,511 5.00% 2012 35,500
Municipal Pool Construction 1997 81,938 5.00% 2012 71,760
- GIAC Reconstruction 1997 74,575 5.00% 2012 65,320
City Court Facility 1997 409,550 5.00% 2012 358,760
Alex Haley Pool Construction 1997 400,490 4.85% 2007 298,625
Court Facility Construction 1997 459,413 4.85% 2007 342,560
Daycare Center Reconstruction 1997 109,410 4.85% 2007 81,582
Golf Maint. Facility Construction 1997 23,937 4.85% 2007 17,848
Street& Road Construction 1998 265,000 4.55% 2011 233,787
Fire Vehicle Acquisition 1998 700,940 4.55% 2011 618,376
Street and Road Construction 1999 312,031 4.05% 2012 293,905
DPW Land Acquisition 1999 320,784 4.05% 2012 302,149
Daycare Facility Improvements 1999 59,993 4.05% 2012 56,508
Parking Lot Improvements 1999 285,639 4.05% 2012 269,046
Fire Station Reconstruction 1999 15,601 4.05% 2012 14,695
_ Cass Park Pool Improvements 2000 62,407 5.30% 2012 62,407
DPW St. & Road Construction 2000 482,090 5.30% 2012 482,090
Fire Dept. Vehicle Acquisition 2000 61,335 5.30% 2012 61,335
Youth Bureau HVAC 2000 350,323 5.30% 2012 350,323
Police Elevator Rehabilitation 2000 34,317 5.30% 2012 34,317
Special Revenue Funds;
Water Supply& Distribution 1988 1,034,490 6.875% 2006 372,300
Ind. Park Improvement-Sewer 1991 41,400 6.375% 2009 22,400
Ind. Park Improvement-Water 1991 41,400 6.375% 2009 22,400
Sewer Lines Reconstruction 1991 124,200 6.375% 2009 64,800
Sewer Cleaner Purchase 1991 131,120 6.375% 2009 67,500
Recycling Vehicle Acquisition (94) 1995 51,000 5.70% 2004 24,000
Garbage Truck Acquisition 1995 63,000 5.70% 2004 28,000
Plan & Recon. Water Plant 1997 810,184 5.00% 2012 709,600
Recycling Vehicle Acquisition 1997 39,204 5.00% 2012 34,300
Reconstruction Watershed 1997 69,970 5.00% 2012 61,270
Sewer System Improvements 1998 1,500,816 3.70% 2017 1,310,000
Water Treatment Improvements 2000 916,539 5.50% 2020 916,539
All Funds
Employee Retirement 1993 685,000 7.20% 2005 320,000
Total $16 529 030
-23 -
CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
DECEMBER 31, 2000
The following is a statement of serial bonds with corresponding maturity schedule for Joint
Venture Debt:
Joint Venture
Wastewater Treatment Plant 1986 $2,800,000 6.875% 2006 $ 1,000,000
Wastewater Treat. Plant Recons. 1988 343,784 3.70% 2017 300,000
-- Total $ 1 300.000
The following is a summary of maturing debt service requirements for general obligation
bonds and notes:
Bonds BAN's Total Total
Year Principal Interest _Principal Interest Principal Interest
2001 $ 1,948,427 $ 914,434 $20,739,647 $829,585 $22,688,074 $1,744,019
2002 1,850,379 777,180 -0- -0- 1,850,379 777,180
2003 1,883,686 668,924 -0- -0- 1,883,686 668,924
2004 1,912,851 558,835 -0- -0- 1,912,851 558,835
2005 1,897,916 447.252 -0- -0- 1,897,916 447,252
2006-2017 7,035,771 1,423,242 _-0- -0- 7,035,771 1,423,242
$16.529.030 $4,789.867 $29,647 $829,585 $37.268.677 $5 61� 9,452
The following is a summary of maturing debt service requirements for general obligation
bonds for the Joint Wastewater Treatment Venture. (Note 4)
Bonds
Year Principal Interest_
2001 $ 165,000 $ 77,622
2002 165,000 66,710
2003 190,000 54,922
2004 190,000 42,2.68
2005 190,000 29,599
2006-2017 400,000 82,142
$ 1,300,000 $ 353,263
Interest paid on short and long-term debt by the City for the year ended December 31,
2000 amounted to $1,795,515. Interest paid on long-term debt by the component unit for the
year ended December 31, 2000 amounted to$12,955.
C. Interfund Receivables and Payables
Interfund receivable and payable balances at December 31, 2000 are as follows:
Interfund Interfund
Fund Type Receivables Payables
General $ 231,987 $ 18,725
Solid Waste 847 30,315
Water 9,265 5,864
_ Sewer 8,563 7,861
Capital Projects 50 1,162,732
Debt Service 974,785 -0-
Total $ 1 225-AW $ 1,225,4W
-24-
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CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
— (CONTINUED)
DECEMBER 31, 2000
— D. Fund Equity
1. Reserves
Fund equity includes Reserve Funds established for the following purposes:
Balance
Purpose End of Year
Capital Pro'e cts Fund
Capital Reserve:
Reserve for Improvements $4 847 432
Trust and Ac el ncy
Reserve for Trusts:
Expendable-Cemetery $ 413
Nonexpendable-Cemetery 49,278
Kiely Scholarship 12,808
— Fireman's Relief Fund 102,726
Center for Expressive Arts 294
Health Facility 96,393
_ Memorial Funds 882
ECHO 93,595
IFD Recognition Banquet _ 113
$_ 356502
Joint Activity
Capital Reserve:
-- Reserve for Sewer Plant Improvements $1,439,010
Note 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.
2. Debt for capital cost is issued by each participant in the following ratios:
City of Ithaca 57.445%
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.
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.
- 25 -
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CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
DECEMBER 31, 2000
The following is an audited summary of financial information included in the general purpose
financial statements issued for the joint venture:
Balance Sheet Date: December 31, 2000
General Capital Fixed Long-Term
Fund Fund Assets Debt Total _
Total Assets $2,006,751 $1,663,043 $40,258,341 $ -0- $43,928,135
Total Liabilities 61,673 9,974 -0- 71,647
Investment in Fixed Assets 40,258,341 40,258,341
Joint Venture Equity 1,945,078 1,653,069 3,598,147
Total Revenues-2000 1,740,811 96,128 1,836,939
Total Expenditures-2000 1,997,081 101,580 2,098,661
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
issued for this joint venture.
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.
3. Each party makes an annual contribution of equal amounts to the venture.
4. The financial statements of TCAT are to be audited annually. The audited summary financial
information for the joint venture as of December 31, 2000 is as follows:
December 31, 2000
Total Assets $ 3,255,118
Total Liabilities 1,987,842
T Total Retained Earnings 1,267,276
Total Revenue 6,505,601
Total Expenses 6,607,082
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, 2000 is
undeterminable as of this report date.
-26 -
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CITY OF ITHACA
NOTES TO FINANCIAL STATEMENTS
— (CONTINUED)
DECEMBER 31, 2000
Note 7 - Other Changes in Fund Balance
The following is an explanation of other changes in fund balance occurring in the current fiscal year:
General Fund
The adjustment in the General Fund and Special Revenue Funds in the amount of $175,277 and
$157,818, respectively, were to adjust for the following prior years activity:
1998 STOA Adjustment $ (163,393)
1999 Accounts Payable Adjustment 6,310
1999 Duplicate Payment from Cornell University (18,194)
Total General Fund $ (175,277)
1998/99 Water Fund Over Billing $ (121,043)
1999 Accounts Payable Adjustments 3,839
1999 Debi'. Payment Correction (39,850)
1999 Accounts Receivable Adjustments (764)
Total Special Revenue Funds $ (157,818)
In addition, the adjustment of $1,644 for the component unit was to adjust 1999 Accounts Payable
amounts.
- 27-
CITY OF ITHACA
COMBINING BALANCE SHEET
SPECIAL REVENUE FUNDS —
DECEMBER 312000
Water Fund Sewer Fund
ASSETS
Unrestricted Cash $ 84,874 $ 167,010 —
Restricted Cash
Investments 1,566,375 1,579,986
Due from Other Funds 9,265 8,563 _
Due from State and Federal Governments
Due from Other Governments 68,101
Other Receivables, Net 391,406 273,601
Inventories 233,703 32,222
Total Assets $ 2,285,623 $ 2,129,483
LIABILITIES AND FUND BALANCES
Liabilities
Accounts Payable $ 72,919 $ _38,325 —
Accrued Liabilities _
Due to Other Funds _5_,864 7,861_
Due to Other Governments 12,000 —
Due to Employees' Retirement System
Other Liabilities
Overpayments
Deferred Revenues
Total Liabilities 78,783 58,186
FUND BALANCES
Fund Balances - Reserved
Reserved for Encumbrances 147,639 188,739
Reserved for Inventory and Supplies 233,703 32,222
Reserved for Unemployment Insurance
Reserved for Insurance 63,475 51,372 —
Total Reserved Fund Balances 444,817 272,333
Fund Balances - Unreserved
Appropriated - Ensuing Year's Budget
Unappropriated 1,762,023 1,798,964 —
Total Unreserved Fund Balances 1,762,023 1,798,964
Total Fund Balances 2,206,840 2,071,297
Total Liabilities and Fund Balances $ 2,285,623 $ 2,129,483
See Independent Auditors' Report
-28 -
Solid Community
Waste Development Urban Renewal Total
$ $ 1,069,416 $ $ 1,321,300
_ 25,857 3,172,218
847 18,675
68,101
36,527 2,998,740 398,079 4,098,353
265,925
$ 63,231 $ 4,068,156 $ 398,079 $ 8,944,572
31,179 $ $ $_ 142,423
30,315 44,040
--- 550 273,079 285,629
2,998,740 2,998,740
62,044_ 2,998,740 273,079 3,470,832
336,378
265,925
'—
2,519 117,366
2,519 719,669
(1,332) 1,069,416 125,000 4,754,071
(1,332) 1,069,416 125,000 4,754,071
1,187 1,069,416 125,000 5,473,740
$ 63,231 $ 4,068,156 $ 398,079 $ 8,944,572
-28a-
CITY OF ITHACA
COMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUNDS —
FOR THE YEAR ENDED DECEMBER 31, 2000
Water Fund Sewer Fund
Budget Actual Budget _ Actual
REVENUES AND OTHER FINANCING SOURCES
Local Sources:
Real Property Taxes $ $ $ $
Real Property Tax Items
Departmental Income 2,707,320 2,754,105 2,820,853 2,461,797
Intergovernmental Charges 1,000 223,365
Use of Money and Property 40,000 108,383 55,000 106,870
Licenses and Permits
Fines and Forfeitures —
Sale of Property and Compensation for Loss _ 4,008_ 1,000 2,280
Miscellaneous Local Sources _ 35 _
Interfund Revenues
State Aid
Federal Aid _
Total Revenues 2,748,320 2,866,531 2,876,853 2,794,312 _
Other Sources:
Interfund Transfers _ _ 50,000_ 50,000
Total Revenues and Other Sources 2,748,320 2,866,531 2,926,853 2,844,312 —
EXPENDITURES AND OTHER FINANCING (USES)
Current: _
General Governmental Support 54,243 54,1_46 56,376_ _31,717
Transportation
Culture and Recreation
Home and Community Services 1,760,414 1,618,899 2,203,805 1,887,046 —
Employee Benefits 339,535 320,952 _ 284,915 263,065
Debt Service (Principal and Interest) _ 261,883 261,883 407,417 420,372
Total Expenditures 2,416,075 2,255,880 2,952,513 2,602,200
Other Financing (Uses):
Interfund Transfers 565,183 565,183 255,330 255,330
Total Expenditures and Other Financing Uses 2,981,258 2,821,063 3,207,843 2,857,530 --
Excess of(Expenditures) Revenues (232,938) 45,468 (280,990) _ 13,218
Other Changes in Fund Balances (118,293) (40,439)
Appropriated Fund Balances 232,938 280,990
Net Increase (Decrease) $ -0- (72,825) $ -0- (53,657)
Fund Balances, Beginning of Year 2,279,665 2,124,954 _
Fund Balances, End of Year $ 2,206,840 $ 2,071,297
See Independent Auditors' Report
-29-
_ Community Urban
Solid Waste Subtotal Development Renewal Total
Budget Actual Budget Actual Actual Actual Actual
410,000 411,392 5,938,173 5,627,294 5,627,294
5,000 10,780 6,000 234,145 234,145
5,000 395 100,000 215,648 34,306 249,954
4,281 1,000_ 10,569 _ _ 10,569
12.8 163 195,841 196,004
1,802,281 1,802,281_
420,000 426,976 6,045,173 6,087,819 2,032,428 8,120,247
_ 15,000 15,000 65,000 65,000 _ 65,000
435,000 441,976 6,1110,173 6,152,819 2,032,428 8,185,247
5,359 _ 5,35.9 115,978 91,222 _ _ 91,222
'- 323,459 330,191 4,287,678 3,836,136 2,002,859 _ 5,838,995
63,871 63,870 688,321 647,887647,887
42,311 42,311 711,611 724,566 � 724,566
435,000 . 441,731 5,803,588 5,299,811 2,002,859 _ 7,302,670
820,513 820,513 _820,513
435,000 441,731 6,624,101 6,120,324 2,002,859 8,123,183
-0- 245 (513,928) 32,495 29,569 62,064
914 (157,818) (157,818)
513,928
$ -0- 1,159 $ -0- 125,323) 29,569 (95,754)
28 4,404,647 1,039,847 125,000 5,569,494
$ 1,187 $ 4,279,324 $ 1,069,416 $ 125,000 $ 5,473,740
-29a-
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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. 7C
Frederick J. Ciaschi, C.P.A.
LDennis G.Jones,C.P.A. (1958-1996)
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
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, 2000, and have issued our report thereon dated June 27, 2001. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States.
Compliance
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.
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.
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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
I 607-753-7439 607-272-4444 607-535-4443
www.cdlm.com
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s
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.
� 4j �', � i C. JCS✓
June 27, 2001 r
Ithaca, New York
-31 -
L
John H. Dietershagen,C.P.A. C /
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.
Lj Dennis G.Jones,C.P.A. (1958-1996)
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
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, 2000. 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.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United
States of America; 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, 2000.
_ -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
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
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
employees in the normal course of performing their assigned functions. We noted no matters involving the
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
agencies, and pass-through entities and is not intended to be and should not be used by anyone other than
these specified parties.
— June 27, 2001 �� L� � �
7r6
Ithaca, New York
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CITY OF ITHACA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2000
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-
Small Cities Program 14.219 N/A $1,802,281
U. S. Department of Housing
& Urban Development
Community Development
Block Grant-
' 1 Program Income 14.219 N/A 230.147
LJ Total Community Development Block Grant 2,032,428
I
U.S. Department of Transportation/NYS Department
of Transportation
Highway Planning and Construction 20.205 D01 1568 759,999
U.S. Department of Justice
Public Safety Partnership and Community
Policing Grants 16.710 N/A 553,744
Total Expenditures of Federal Awards $2�94_,�71
L
L
See Independent Auditors' Report and Notes
to Schedule of Expenditures of Federal Awards
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CITY OF ITHACA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
DECEMBER 31, 2000
Note 1 - Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal
awards programs administered by the City 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
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.
The 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
_ 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
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
The City of Ithaca received $230,147 in program income from their Community Development Block
Grant - Small Cities Pregram for the fiscal year ended December 31, 2000. The program income is
comprised of $195,841 and $34,306 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.
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CITY OF ITHACA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
DECEMBER 31, 2000
— Section I - Summary of Auditors' Results
Financial Statements
Type of auditors' report issued: Unqualified
Internal 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
Noncompliance material to financial statements
noted? yes X no
Federal Awards
Internal control over major programs:
— Material weakness(es) identified? yes X no
1 Reportable condition's) identified that
Lare not considered 10 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
20.502 Highway Planning and Construction
Dollar threshold used to distinguish between
type A and type B programs $300,000
Auditee qualified as low-risk auditee: X yes no
Section 11 - Financial Statement Findings: None
Section III - Federal Award Findings and Questioned Costs: None
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