HomeMy WebLinkAbout2021 AUD Notes 1
TOWN OF LANSING
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2021
I. Summary of significant Accounting Policies
The financial statements of the Town of Lansing 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
government’s accounting policies are described below.
A. Financial Reporting Entity
The Town of Lansing has a population of 11,565 according to the 2020 federal census. The incorporated Village of
Lansing is located wholly within the Town.
The Town is governed by Town Law and other general laws of the State of New York. The Town’s legislative body is
the Town Board, consisting of a Supervisor and four Councilpersons. The Supervisor, as Chief Fiscal Officer, is
responsible for receiving, disbursing and having custody of all Town monies, and keeping all books of account. The
Town Clerk, as Chief Recording Officer, is custodian of all Town papers and records.
The financial reporting entity includes organizations, functions, and activities over which elected officials exercise
oversight responsibility. Oversight responsibility is determined on the basis of financial interdependency, selection of
governing authority, designation of management, ability to significantly influence operations and accountability for fiscal
matters.
The Town provides the following principal services; transportation (streets and highways), culture-recreation, planning
and zoning, public improvements and general administration. Street lighting in the community of Ludlowville Lighting
District #1 is provided for and funded by means of a special ad-valorem tax on real property within the lighting district.
The Warren Road Business Park Lighting District #2 and Lakewatch Lighting District #3 is provided for and funded by a
per unit assessment. The Southern Cayuga Lake Inter-municipal Water Commission administers and oversees the
operation of the Consolidated Water District and all extensions.
The furnishing of fire protection in the area of the Town outside the Village is not a Town function. Instead, it is the
responsibility of the Fire Commissioners who constitute the governing board of the Lansing Fire District whose
boundaries encompass the entire Town including the Village. Fire Commissioners are elected by the qualified voters
living within the district.
Fire district operations, including the financing thereof through real property taxation are carried out under the direction
of the Fire Commissioners. The Town, therefore, has no oversight or managerial responsibility over the function.
Although the functions and activities of the Town of Lansing Housing Authority are related to the Town, they are not
included in the Town’s reporting entity for the following reasons:
1) the Town cannot significantly influence the authority’s operation;
2) the Town has no budgetary authority;
3) the authority controls surpluses and deficits;
4) the Town has no responsibility for the authority’s debt,
5) the authority’s Board of Commissioners control fiscal management.
B. Basis of Presentation – Fund Accounting
The accounts of the Town are organized on the basis of funds and account groups, each of which is considered a separate
accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that
comprise its assets, liabilities, equity, revenues, and expenditures. Government resources are allocated to and accounted
for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities
are controlled.
1. Fund Categories
a. Governmental Funds – Governmental funds are those through which most governmental functions of the
Town are financed. The acquisition, use and balances of the Town’s expendable financial resources and the
related liabilities are accounted for through governmental funds.
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The measurement focus is upon determination of changes in financial position, rather than upon the net
income determination.
General Fund – the principal operating fund and includes all operations not required to be recorded in other
funds. The Town utilized both the General Fund Townwide and General Fund Outside Village 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:
Highway Fund Townwide
Highway Fund Outside Village
Lighting District Fund
Sewer District Fund
Water District Fund
Capital Projects Fund – used to account for financial resources to be used for the acquisition or construction
of major capital facilities (other than those financed by the enterprise, or internal service funds).
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).
b. Fiduciary Funds – used to account for special activities or services provided by one department to other
departments or to other governments on a cost-reimbursement basis. Included are the following;
Trust & Agency - used to account for money (and/or property) received and held in the capacity of trustee,
custodian, or agent. These include expendable trusts, non-expendable trusts and agency funds.
2. Account Groups
Account groups are used to establish accounting control and accountability for general capital 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.
The General Capital Assets Account Group – used to account for land, buildings, improvements other than
buildings, and equipment utilized for general government purposes, except those accounted for in proprietary
funds.
The General Long-Term Debt Account Group – used to account for all long-term debt except that accounted for
in proprietary funds. These liabilities include serial bonds, bond anticipation notes, and capital leases.
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 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:
1) Expenditures for prepaid expenses and inventory-type items are recognized at the time of purchase.
2) Principal and interest on indebtedness are not recognized as an expenditure until due.
3) Compensated absences, such as vacation and sick leave, which vests or accumulates, are charged as an
expenditure when paid.
Account Groups – General capital assets are recorded at actual or estimated cost or, in the case of gifts and
contributions, at the fair market 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
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D. Property Taxes
County real property taxes are levied annually no later than December 31st and become a lien on January 1st . Taxes are
collected during the period January 1st to March 31st. Taxes for county purposes (apportioned to the area of the county
outside of the City of Ithaca) are levied together with taxes for the Town and special district purposes as a single bill. The
towns and special districts receive the full amount of their levies annually out of the first amounts collected on the
combined bills. The county assumes enforcement responsibility for all taxes levied in the towns (and for unpaid county
taxes).
E. Sales Tax
Tompkins County, under the general authority of Article 29 of the Tax Law, imposes a 4% sales tax within its boundaries.
The 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. They are paid by the State to the County and the City, respectively.
F. Budgetary Data
1. Budget Policies – The budget policies are as follows:
a. No later than September 30, the Town Supervisor, as budget officer, submits a tentative budget to the Town
Clerk for the fiscal year commencing the following date. The tentative budget includes proposed
expenditures and the proposed means of financing for all funds.
b. The tentative budget is submitted by the Town Clerk to the Town Board by October
5th for their approval, it then becomes the preliminary budget. A public hearing must be conducted to obtain
taxpayer comments on or before the Thursday immediately following General Election Day. The
preliminary budget as submitted or amended must be adopted by November 20th.
c. All modifications of the budget must be approved by the Town Board, and may amend the budget as
necessary during the year. Unexpended appropriations lapse at the end of the fiscal year.
2. Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of
monies are recorded for budgetary control purposes to reserve that portion of the applicable appropriations.
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.
G. Investments
Investments are stated at cost, which approximate market value.
H. Property, Plant and Equipment – General
Capital assets purchased for general governmental purposes are recorded as expenditures in the governmental funds and
are capitalized at costs (or estimated historical costs for assets purchased prior to May 15, 1978) in the General Capital
Assets Account Group. Contributed capital assets are recorded at fair market value at the date received. Depreciation on
general capital assets, which is recorded in the Town’s government-wide financial statements, has not been provided in
the annual update document, nor has interest on general capital assets construction in progress been capitalized.
I. Insurance
The Town 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.
J. Compensatory Absences
Employees accrue vacation leave based primarily on the number of years employed up to a maximum rate of 20 days per
year but may carry-over a maximum of only five workdays.
Employees accrue sick leave at the rate of one sick day per month by regular full-time employees, up to a maximum of
165 days. Upon retirement, the dollar value of accumulated sick time (based upon the employee’s rate of pay at the date
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of retirement) will be applied toward the cost of the retired employee’s portion of the health insurance premium up to age
65. No payment for accumulated sick time will be made for a non-retirement termination.
K. Post Employment Benefits
In addition to providing pension benefits, the Town provides health insurance coverage and survivor benefits for those
retired employees and their survivors who retired prior to December 31, 2006. As of January 1, 2007, in the event the
retiree predeceases the dependents, the dependents may continue health insurance coverage provided they pay the full
cost of the premium. All Town employees may be eligible for these health insurance benefits if hired before January 1,
2015 (having been granted a bona-fide retirement benefit from NYSERS) and the employee has the required years of
continuous full-time service with the Town in accordance with the employee handbook.
Employees hired prior to 5-15-2006 – 10 years
Employees hired between 5-15-2006 and 12-21-2014 - 20 years
Employees hired after 1-1-2015 – not eligible
Health care benefits are provided through The Greater Tompkins County Municipal Health Insurance Consortium whose
premiums are based on the benefits paid during the year. The Town recognizes the cost of providing benefits by
recording its share of insurance premiums as an expenditure in the year paid.
The expenditure is recorded in the General, Highway, & Water Funds. The cost of providing benefits for the 14 retirees
is separable from the cost of providing benefits for the 26 active employees.
II. Stewardship, Compliance, Accountability
A. Deficit Fund Balances
There were no deficit fund balances at the end of 2021.
III. Detail Notes on All Funds and Account Groups
A. Assets
1. Cash and Investments
The Town investment policies are governed by state statutes. In addition, the Town has its own written investment
policy. Town monies must be deposited in FDIC insured commercial banks or trust companies located within the
state. The Town Supervisor, as Chief Fiscal Officer, 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 deposits and certificates of deposit at 105% 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.
Deposits at year-end were entirely covered by federal depository insurance held by the Town’s custodial bank in the
Town’s name. All deposits including certificates of deposit are carried at cost plus accrued interest.
2. Changes in Capital Assets
A summary of changes in general capital assets follows:
Balance Balance
Type 12/31/20 Additions Deletions 12/31/21
K101 Land $ 681,258 $ 681,258
K102 Buildings $1,526,309 $ 1,526,309
K103 Improvements $ 261,460 $ 261,460
K104 Machinery/Equip $5,342,932 $408,502 $89,950 $ 5,661,484
K106 Infrastructure $9,177,609 $ 9,177,609
K107 Other Capital Assets $ 80,188 + $ 80,188
TOTAL $17,069,756 $408,502 $89,950 $17,388,308
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B. Liabilities
1. Pension Plans
Plan Description
The Town of Lansing participates in the New York State and Local Employees’ Retirement System (ERS).
This is a cost-sharing multiple-employer retirement system. The System provides 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 (NYSRRSSL). 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 custody and control of their funds. The Systems issue a publicly available financial report that includes
financial statements and required supplementary information. That report may be obtained by writing to the
New York State and Local Retirement Systems, Gov. Alfred E. Smith State Office Building, Albany, NY
12244.
Funding Policy
The Systems are noncontributory except for employees who joined the New York State and Local
Employees’ Retirement System after July 27, 1976 who contribute 3% of their salary. Under the authority
of the NYSRSSL, the Comptroller shall certify annually the rates expressed as proportions of payroll
members, which shall be used in computing the contributions required to be made by employers to the
pension accumulation fund.
The Town of Lansing is required to contribute at an actuarially determined rate. The required contributions
for the current year and two preceding years were:
ERS
2019 232,512
2020 263,575
2021 304,659
The Town’s contributions made to the Systems were equal to 100 percent of the contributions required for
each year.
2. Short Term Debt
Summary of Short Term Debt
Outstanding Outstanding
12/31/120 Additions Reductions 12/31/21
BANS $00 $00 $00 $00
On September 10, 2020, all of our BANS were converted to a BOND.
3. Long Term Debt
a. On December 31, 2021, the total outstanding indebtedness of the Town Aggregated $2,90,477. Of this amount,
$95,794,763 is subject to the constitutional debt limit and represents 3 % of the Town’s debt limit.
b. Serial Bonds – The Town 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.
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c. Summary of Long-Term Debt
Outstanding Outstanding
12/31/20 Additions Reductions 12/31/21
Serial Bonds $2,694,081 +0 - 164,081 $2,530,000
State Loan $ 407,712 +0 - 37,235 $370,477
$3,101,793 +0 - 201,316 $2,900,477
d. Maturity Schedule - See Supplemental Section of Annual Update Document.
C. Fund Equity
1. Reserves
The Capital projects fund equity includes capital reserve funds established for the following purposes:
Purpose Balance 12/31/2021
The Highway Fund (DA) equity includes capital reserve funds established for the following purposes:
Highway Equipment $300,541.68
The General Fund (A) equity includes capital reserve funds established for the following purposes:
Purpose Balance 12/31/2021
Excess Dog Control Revenues $ 21,492.42
Non-Recurring Repairs $ 106,576.40
Reserve for Park & Rec Equip $ 15,052.67
Technology $ 15,063.67
Parkland & Trailways $ 134.26
2. Prior Period Adjustments to Fund Balance