HomeMy WebLinkAbout2018 Town of Ithaca Audit Report
FINANCIAL STATEMENTS OF
TOWN OF ITHACA
ITHACA, NEW YORK
FOR THE YEAR ENDED DECEMBER 31, 2018
TOWN OF ITHACA
INDEX
December 31, 2018
Tab
Independent Auditor’s Report 1
Management’s Discussion and Analysis 2
Financial Statements 3
Independent Auditor’s Report on Internal Control over
Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing
Standards4
TOWN OF ITHACA
TABLE OF CONTENTS
December 31, 2018
Page
Independent Auditor’s Report ......................................................................................................... -
Management’s Discussion and Analysis .............................................................................. I-XVIII
Statement of Net Position ............................................................................................................ 1-2
Statement of Activities .....................................................................................................................3
Balance Sheet – Governmental Funds .............................................................................................4
Reconciliation of the Total Fund Balances Shown in the Governmental
Funds to Governmental Activities Shown in the Statement of Net
Position ......................................................................................................................................5
Statement of Revenues, Expenditures, and Changes in Fund
Balances – Governmental Funds ........................................................................................... 6-7
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balance of the Governmental Funds to the
Change in Net Position of Governmental Activities Shown in the
Statement of Activities ........................................................................................................... 8-9
Statement of Net Position – Proprietary Funds ..............................................................................10
Statement of Revenues, Expenses, and Changes in Fund Net Position –
Proprietary Funds .....................................................................................................................11
Statement of Cash Flows – Proprietary Funds ...............................................................................12
Statement of Fiduciary Net Position – Agency Funds ...................................................................13
Notes to Financial Statements .................................................................................................. 14-43
Schedule of Changes in Total OPEB Liability and Related Ratios ...............................................44
Schedule of Revenues and Expenditures Compared to Budget –
Major Funds .............................................................................................................................45
Schedule of the Town’s Proportionate Share of the Net Pension Liability ...................................46
Schedule of the Town’s Pension Contributions .............................................................................47
Capital Projects Fund – Detailed Balance Sheet………………… ................................................48
Capital Projects Fund – Detailed Revenues and Expenditures…… ..............................................49
Independent Auditor’s Report on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with
Government Auditing Standards........................................................................................ 50-52
INDEPENDENT AUDITOR’S REPORT
Supervisor and Town Board
Town of Ithaca
Ithaca, New York 14850
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
Town of Ithaca, NY, as of and for the year ended December 31, 2018, and the related notes to the
financial statements, which collectively comprise the Town’s basic financial statements as listed in
the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these 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
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
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Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the Town of Ithaca, NY, as of
December 31, 2018, and the respective changes in financial position and, where applicable, cash
flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management’s Discussion and Analysis (pages I-XVIII), the Schedule of Changes in Total
OPEB Liability and Related Ratios (page 44), the Schedule of Revenues and Expenditures
Compared to Budget - Major Funds (page 45), the Schedule of the Town’s Proportionate Share
of the Net Pension Liability (page 46), and the Schedule of the Town’s Pension Contributions
(page 47), be presented to supplement the basic financial statements. Such information, although
not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the Town of Ithaca’s basic financial statements. The supplementary
information presented on pages 48 through 49 is presented for purposes of additional analysis
and are not a required part of the basic financial statements.
The information is the responsibility of management and was derived from and relates directly to
the underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the information is fairly stated, in all material respects, in relation to the
basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
October 18, 2019 on our consideration of the Town of Ithaca’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on internal control over financial reporting or on
compliance.That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering Town of Ithaca’s internal control over financial reporting and
compliance.
Sciarabba Walker & Co., LLP
Ithaca, New York
October 18, 2019
The following is a discussion and analysis of the Town of Ithaca’s financial performance for the
year ended December 31, 2018. The Town of Ithaca discussion and analysis is designed to (a)
assist the reader in focusing on significant financial issues, (b) provide an overview of the
Town’s financial activity, (c) identify changes in the Town’s financial position (its ability to
address the next and subsequent year challenges), (d) identify any material deviations from the
financial plan (the approved budget), and (e) identify individual fund issues or concerns.
The section is a summary of the Town’s financial activities based on currently known facts,
decisions, or conditions as provided by the Town’s Finance Officer. It is also based on both the
government-wide and fund-based financial statements. The results of the current year are
discussed in comparison with the prior year, with an emphasis placed on the current year. This
section is only an introduction and should be read in conjunction with the Town’s financial
statements, which immediately follow this section.
HIGHLIGHTS
Financial Highlights:
The Town’s net position, as reflected in the Statement of Net Position, increased by
$1,746,241 (7.19%).
Revenue, as reflected in the Statement of Activities, increased $1,001,888 (5.19%).
Expenditures increased by $507,449 (2.81%).
The General Town-wide Fund (the primary operating fund) fund balance increased by
$413,775 (7.92%) for the year ended December 31, 2018.
Town Highlights:
Year-end fund balance increased in general, highway, and capital projects and decreased in
fire fund for major Town funds in Fiscal Year 2018.
In Fiscal Year 2018, the Town received prepaid property taxes of $488,787. $228,045 of
which was allocated to the following funds: $75,405 general, $56,651 highway, $74,957
fire, $15,567 water, $4,703 sewer, and $762 lighting districts. These amounts have been
reflected within the governmental funds as deferred inflows of resources. The remaining
balance of $260,742 is cash due to the County which has been reflected within the general
funds as a due to other governments at year-end.
During 2018, the Town added a Highway Town-Wide Fund. This fund is combined with the
Highway Part-Town Fund for financial statements purposes.
G ENERAL F UND - Fund equity increased by $413,775, with revenues and other sources of
$6,334,819 exceeding expenditures and other uses of $5,921,043. Sales and mortgage taxes
both increased while real property taxes, departmental income and state aid per capita
decreased compared to 2017. Ending fund balance totaled $5,635,251, which includes
reserves of $832,626 for the Parks and Open Space Plan Reserve, $235,096 for the General
Benefit Reserve, $40,173 in the Preserve Maintenance Reserve, $9,752 in the Land
I
Stewardship Reserve and $4,426 in the Cemetery Maintenance Reserve. (Townwide + Part-
Town + Risk)
H IGHWAY F UND - With revenues and other sources of $4,386,103 exceeding expenditures
and other uses of $3,740,160, fund equity increased by $645,943. Ending fund balance of
$2,913,454 includes reserves of $283,905 for the Highway Equipment Reserve and $79,412
for the General Benefit Reserve. (Townwide + Part-Town)
W ATER F UND - For Fiscal Year 2018, the net position of the Water Fund decreased by
$1,744,286. Operating and non-operating expenditures totaling $5,935,793 exceeded
operating and non-operating revenues of $4,191,507. Year-end net position of $6,260,798
includes $23,838 for the General Benefit Reserve.
S EWER F UND - Net position of the Sewer Fund increased by $51,571 in Fiscal Year 2018.
Operating and non-operating revenues of $2,790,453 exceeded operating and non-operating
expenditures of $2,738,882. Net position at year-end of $5,418,841 includes $12,046 for the
General Benefit Reserve.
F IRE P ROTECTION F UND - With expenses of $3,349,006 exceeding revenues of $3,280,530,
fund equity decreased by $68,476 to total $2,010,352 at year-end.
The Town of Ithaca has an informal policy to maintain the fund balance percentage of any
fund, calculated as the percentage of the fund’s year-end unreserved net assets compared to
the next year’s budgeted expenditures, at a minimum of 25%. A 25% fund balance
percentage represents the approximate amount necessary to cover the expense of three
months of operations.For the year ended December 31, 2018, all major funds exceeded this
25% goal.
Collections of sales taxes and mortgage tax increased in Fiscal Year 2018.
S ALES T AX - Collections increased to $3,388,799 in 2018 from the previous year’s total of
$3,184,969, an increase of $203,830 or 6.40%. Sales tax revenues are split between General
Fund and Highway Fund.
M ORTGAGE T AX - Collections for 2018 totaled $299,934, an increase of $20,143 or 7.20%
over the previous year’s total of $279,791.
Year-end balances for the Town’s reserve accounts either increased or decreased over the
prior year and are as follows:
P ARKS AND O PEN S PACE P LAN R ESERVE -The General Fund includes reserve funds
designated for the purpose of future park development and the purchasing of development
rights, as outlined in the Town’s Parks and Open Space Plan. The balance at year-end was
$832,626.
H IGHWAY E QUIPMENT R ESERVE - The Highway Fund includes reserve funds established for
the purchase/replacement of highway equipment and machinery. The balance at year-end
was $283,905.
II
G ENERAL B ENEFIT R ESERVE - The General Fund, Highway Fund, Water Fund, and Sewer
Fund equity includes reserve funds established for managing unanticipated increases in
employee fringe benefit costs (e.g. NYS Retirement, Health Insurance). The aggregate
balance at year-end was $350,392.
P RESERVE M AINTENANCE R ESERVE -The General Townwide Fund includes reserve funds
designated for the maintenance of the Pine Tree Wildlife Preserve, donated to the Town in
2013. In conjunction with the donation of the land, the amount of $40,000 was also donated
to provide for future maintenance of the preserve. The balance at year end was $40,173.
L AND S TEWARDSHIP R ESERVE - In 2014, the Town purchased the development rights to the
Indian Creek Farm with financial assistance through a State of New York grant. This grant
included $10,000 to be held in reserve by the Town, designated for the future stewardship of
the Indian Creek Farmlands. For the year ended December 31, 2018, the balance of this
reserve totaled $9,752.
C EMETERY M AINTENANCE R ESERVE –The General Townwide Fund includes reserve funds
designated for the maintenance of the cemetery. The balance at year end was $4,426.
The Capital Improvement Program (CIP) process continues to be improved and refined.
Timely project reviews, detailed mapping, design, planning, and the development of five-
year budget projections have strengthened the fiscal accountability of the Town’s CIP,
improving the Town’s ability to analyze the cost of future borrowing needs and the potential
impact that such long-term borrowing would have on the property tax levy and property tax
rates. This analytical process assists the Town Board in prioritizing those projects that will
better serve the needs of the Town residents and maintain the quality of the Town’s
transportation, water and sewer infrastructures.
C ONSTITUTIONAL D EBT L IMIT - The Town of Ithaca maintains a very low direct debt burden.
At year-end the Town had exhausted only 3.02% of its debt-contracting power.
On November 8, 2018, Moody’s Investors Service assigned an Aa1 rating to the 2018 Bond
Issue. The Aa1 rating reflects the Town’s “moderately-sized tax base supported by above-
average resident wealth and income and higher education anchors Cornell University and
Ithaca College. The Town further benefits from a strong financial position and ample
reserves, as well as manageable debt and pension burdens.” Moody’s notes that “financial
management is strong as evidenced by consistently healthy reserves.”
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of three parts: MD&A (this section), the basic financial statements,
and required supplementary information. The basic financial statements include two kinds of
statements that present different views of the Town:
The first two statements are government-wide financial statements that provide both
short-term and long-term information about the Town’s overall financial status.
III
The remaining statements are fund financial statements that focus on individual parts of the
Town, reporting the Town’s operations in more detail than the government-wide statements.
The fund financial statements concentrate on the Town’s most significant funds.
Thegovernmental funds statements tell how basic services were financed in the short term as
well as what remains for future spending. The governmental activities include most of the
Town’s basic services such as public safety, parks and recreation, and general administration.
Property taxes finance most of these activities.
Theproprietary funds provide the same type of information as the government-wide
financial statements, only in more detail. Enterprise funds are used to report the funds
presented as business-type activities in the government-wise financial statements. The
enterprise funds are those that the Town charges customers to provide. These include the
sewer and water services offered by the Town.
Fiduciary fundsstatements provide information about the financial relationships in which the
Town acts solely as a trustee or agent for the benefit of others.
The financial statements also include notes that explain some of the information in the statements
and provide more detailed data. The statements are followed by a section of required
supplementary information that further explains and supports the financial statements with a
comparison of the Town’s budget for the year.
GOVERNMENT-WIDE STATEMENTS
The government-wide statements report information about the Town as a whole using accounting
methods similar to those used by private-sector companies. The statement of net position
includes all of the Town’s assets and liabilities. All of the current year’s revenues and expenses
are accounted for in the statement of activities regardless of when cash is received or paid.
The two government-wide statements report the Town’s net position and how they have
changed. Net position, the difference between the Town’s assets and liabilities, is one way to
measure the Town’s financial health or position.
Over time, increases or decreases in the Town’s net position are an indicator of whether its
financial position is improving or deteriorating, respectively.
To assess the Town’s overall health, you need to consider additional non-financial factors
such as changes in the Town’s property tax base and the condition of facilities and
infrastructures.
In the government-wide financial statements, the Town’s activities are shown as governmental
activities and business-type activities. The Town’s basic services are included as governmental
activities such as road maintenance (transportation), and administration (general governmental
support). Property taxes finance most of these activities. Business-type activities are reported
separately as they recover most of their expenses through charges to customers for the services
provided.
IV
FUND FINANCIAL STATEMENTS
The fund financial statements provide more detailed information about the Town’s funds,
focusing on its most significant or “major” funds – not the Town as a whole. Funds are
accounting devices the Town uses to keep track of specific sources of funding and spending on
programs:
Some funds are required by State law and by bond covenants.
The Town establishes other funds to control and to manage money for purposes (such as
repaying its long-term debts) or to show that it is properly using certain revenues.
The Town has three kinds of funds:
Governmental Funds: Most of the Town’s basic services are included in governmental funds,
which generally focus on (1) how cash and other financial assets can readily be converted to
cash flow in and out and (2) the balances left at year end that are available for spending.
Consequently, the governmental funds statements provide a detailed short-term view that
helps you determine whether there are more or fewer financial resources that can be spent
soon to finance the Town’s programs. Because this information does not encompass the
additional long-term focus of the government-wide statements, reconciling statements (page
5 and pages 8-9) have been added to explain the relationship (or differences) between them.
Proprietary Funds: Consist of the water and sewer funds, those funds for which the Town
provides services and then charges customers for providing the service. The proprietary
statements include all assets and liabilities, both short-term and long-term, including debt and
capital assets. Accrual accounting is used, and focus is on economic resources.
Fiduciary Funds - Agency Funds: The Town acts in an agency capacity for assets that are
ultimately transferred to others, such as payroll withholdings. The Town also reports deposits
associated with its rental activities in this fund. The Town excludes these activities from the
government-wide financial statements because it cannot use these assets to finance its
operations.
V
FINANCIAL ANALYSIS OF THE TOWN AS A WHOLE
The Town’s combined net position increased by $1,746,241 or 7.19%.
Current assets increased by $66,810 while current liabilities decreased by $2,028,991 or 0.31%
and 39.04%, respectively.
Capital assets increased by $1,945,613 (net of 2018 depreciation expense of $1,568,807) or
7.01%.
Long-term serial bond debt increased by $3,103,000 or 28.81%. The increase reflects the 2018
bond proceeds issued of $4,150,000 and principal payments of $1,047,000 during the year.
Unrestricted net position increased by $2,864,349 or 49.33%.
The Town’s current ratio (ratio of current assets to current liabilities) was 6.9:1 at December 31,
2018. The Town’s quick ratio (cash and assets easily converted to cash compared to current
liabilities) was 5.3:1 at December 31, 2018.
Figures A-1 and A-2 present condensed information derived from the Town’s government-wide
statements.
FIGURE A-1
Governmental Business-type
Condensed Statement of Net PositionActivitiesActivities
2018201720182017
Current assets 13,388,513$ 13,305,871$ 8,439,815$ 8,455,647$
Non-current assets 12,042,359 11,851,649 17,667,636 15,912,733
Total Assets25,430,872$ 25,157,520$ 26,107,451$ 24,368,380$
Deferred outflows, as restated1,811,9741,110,312171,46795,069
Total Deferred Outflows of Resources1,811,974$ 1,110,312$ 171,467$ 95,069$
Current liabilities 1,259,511$ 3,987,846$ 1,908,920$ 1,209,576$
Non-current liabilities, as restated10,280,212 10,381,491 12,559,287 9,809,488
Total Liabilities11,539,723$ 14,369,337$ 14,468,207$ 11,019,064$
Deferred inflows1,352,755987,083 131,07272,030
Total Deferred Inflows of Resources1,352,755$ 987,083$ 131,072$ 72,030$
Invested in capital assets, net of debt 9,118,770$ 8,629,719$ 6,719,225$ 8,365,663$
Restricted 1,485,390 1,446,151 35,884 35,845
Unrestricted net position, as restated 3,746,208 835,542 4,924,530 4,970,847
Total Net Position14,350,368$ 10,911,412$ 11,679,639$ 13,372,355$
VI
FIGURE A-2
Governmental
Business-type
Activities
Activities
Changes in Net Position
2018201720182017
REVENUES
Program revenues:
Charges for services$ 409,666371,524$ 5,784,147$ 5,371,656$
Operating grants and contributions
371,277 269,171 - -
Capital grants and contributions 235,042 293,411 - -
General revenues:
Property taxes
7,881,966 8,288,697 1,189,760 1,094,165
Non property taxes
3,266,137 3,445,296 - -
Unrestricted state aid 281,051 339,172 - -
Interest earnings 16,447 25,471 7,464 4,658
Other general revenues
373,484 294,140 589 1,405
$ 12,835,07013,326,882$ 6,981,960$ 6,471,884$
Total Revenues
PROGRAM EXPENSES
General government support
$ 2,538,9602,446,751$ - $ - $
Public safety
3,201,013 3,432,909 - -
Transportation 3,330,976 3,520,351 - -
Culture and recreation 1,132,655 1,234,521 - -
Home and community services
2,150,312 1,874,278 -
Water and sewer - - 6,053,791 5,701,236
$ 12,353,91612,508,810$ 6,053,791$ 5,701,236$
Total Expenses
Transfers2,620,884( 604,211)( 2,620,884)604,211
CHANGE IN NET POSITION3,438,956$ ( 123,057)$ ( 1,692,715)$ 1,374,859$
Figure A-3 shows the sources of revenue for 2018.
FIGURE A-3
Sources of Revenue for 2018
State and Fines and
Interest,
federal fees, 1.08%
0.16%
sources,
Other, 0.37%
4.44%
Charges for
services,
30.31%
Sales and
property
taxes,
63.64%
VII
Figure A-4 represents the Town’s 2018 expenditures by program.
FIGURE A-4
Expenditures by Program
Interest on
long-term debt,
Depreciation,
General
0.00%
5.35%
support,
12.59%
Public safety,
Home and
18.49%
community
services,
41.78%
Transportation,
Culture and
15.61%
recreation,
6.18%
Total costs of services provided by the Town (Figure A-5) were $18,562,601. These charges
were offset by grants and contributions of $562,582 and charges for services of $6,155,671,
resulting in net cost of services of $11,844,348.
FIGURE A-5
Total Cost of Services
GovernmentalBusiness - TypeTotal
Programs
201820182018
General government support
$ - 2,446,751$ 2,446,751$
Public safety
- 3,432,909 3,432,909
Transportation
- 3,520,351 3,520,351
Culture and recreation
- 1,234,521 1,234,521
Home and community services
- 1,874,278 1,874,278
Water and sewer
6,053,791- 6,053,791
Total12,508,810$ 6,053,791$ 18,562,601$
Net Cost of Services
GovernmentalBusiness - TypeTotal
Programs
201820182018
General government support
$ - 2,260,246$ 2,260,246$
Public safety
- 3,432,629 3,432,629
Transportation
- 3,204,829 3,204,829
Culture and recreation
- 1,133,179 1,133,179
Home and community services
- 1,543,821 1,543,821
Water and sewer
269,644- 269,644
Total11,574,704$ 269,644$ 11,844,348$
VIII
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS
Figure A-6 shows the change in fund balances for the year for the Town’s funds as presented in
the Town’s Statement of Revenues, Expenditures and Changes in Fund Balance-Governmental
Funds. At December 31, 2018, the Town reported a combined fund balance of $11,671,588.
Total fund balance increased by $3,321,263 in 2018
FIGURE A-6
Governmental Funds
Total Dollar
Governmental Fund Balances
20182017
Change
$ 5,221,4765,635,251$ 413,775$
General Fund
2,267,511 2,913,454 645,943
Highway Fund
2,078,828 2,010,352 ( 68,476)
Fire Fund
( 999,876 1,454,426)2,454,302
Capital Projects Fund
236,936 112,655 ( 124,281)
Other Funds
$ 8,350,325 11,671,588$ 3,321,263$
Total Fund Balance
GENERAL FUND BUDGETARY HIGHLIGHTS
Actual revenues were higher than budget estimates by $215,785 and actual expenditures were
less than budgeted expenditures by $991,897.
Figure A-7 summarizes the General Fund original budget, actual expenditures and the variances
for the year ended December 31, 2018.
FIGURE A-7
Variance
Condensed Budgetary Comparison-
Original Favorable
General Fund 2018
BudgetActual(Unfavorable)
REVENUES
$ 2,809,118 2,808,000$ 1,118$
Real property taxes
1,645,296 1,468,000 177,296
Non-property taxes
400,302 471,650 ( 71,348)
State sources
871,800 763,081 108,719
All other
$ 5,726,5165,510,731$ 215,785$
Total Revenues
EXPENDITURES
$ 1,637,813 1,914,087$ 276,274$
General government support
71,284 92,884 21,600
Public safety
439,562 512,360 72,798
Transportation
1,055,573 1,154,876 99,303
Culture and recreation
1,114,682 1,454,550 339,868
Home and community services
1,292,072 1,474,125 182,053
Employee benefits
$ 5,610,9866,602,882$ 991,896$
Total Expenditures
$ 608,303 1,402,106$ ( 793,803)$
Other financing sources
310,058309,955 ( 103)
Other financing uses
IX
CAPITAL ASSETS
The Town records expenditures for land, buildings, equipment, machinery and infrastructures
(roads, water and sewer systems) as capital assets in the Statement of Net Position. Annual
depreciation expense is recorded in the Statement of Activities to reflect the use of these assets
over their useful lives. Land and construction in progress are not subject to depreciation. The
Town’s depreciation methods, assumptions regarding useful lives and capitalization thresholds
are described in Notes 1K and 1L in the current year’s Notes to the Financial Statements.
In 2018, the Town expended $3,551,148 on capital additions. Figure A-8 reflects the changes in
net capital assets.
FIGURE A-8
Governmental Business-type
ActivitiesActivities
2018201720182017
Changes in Net Capital Assets
$ 599,780 599,780$ - $ - $
Land
361,466894,145 2,383,388 622,473
Construction in progress
3,119,3522,969,164 - -
Buildings
2,426,8802,351,620 792,002 752,944
Equipment and machinery
6,245 3,696 - -
Furniture and furnishings
639,501 596,951 - -
Non-building improvements
4,698,4254,627,003 14,492,246 14,537,316
Infrastructures
Total
$ 11,851,64912,042,359$ 17,667,636$ 15,912,733$
Major additions in 2018 included:
Infrastructure $ 420,032
Construction in progress 2,459,157
Equipment acquisitions 671,959
Total $ 3,551,148
DEBT ADMINISTRATION
Long-term debt increased by $3,103,000 as a result of current year bonding of $4,150,000 and
principal payments of $1,047,000.
The Town’s liability for compensated absences increased $13,478 to $186,053 during 2018.
The Town’s net pension liability associated with their portion of the New York State and Local
Employees’ Retirement System (ERS) decreased $645,701 to $390,624 during 2018.
In 2018, the Town implemented the provisions of Governmental Accounting Standards Board
Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions. The standard replaces the requirements of previously issued Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions. The standard requires the Town to report a liability on the face of the financial
statements for the OPEB that they provide. The actuarially calculated liability includes the
accumulated sick time recognized by the Town which can be credited to the employee’s portions
of health insurance at the date of retirement. The Town’s liability for post-employment benefits
under GASB 75 was $7,882,297 as of December 31, 2018.
X
The Town’s most recent bond rating, as determined by Moody’s Investor Service, Inc., is Aa1.
Constitutional Debt Limit
The Town of Ithaca is restricted by the New York State Constitution, Article VIII, Section 2, on
the manner of creating and paying local indebtedness. The Town can only create debt for
“Town” purposes. The outstanding payback period for indebtedness is restricted to the period of
usefulness. As the issuer of debt (borrower) the Town is required to pledge in full faith and credit
for the payments of principal and interest to the bondholder (investor).
As required under the New York State Constitution, the Town of Ithaca cannot create debt in
excess of 7% of the five (5) year average full valuation of taxable property.
The following summary provides information regarding the Town’s indebtedness, debt limit and
net debt-contracting margin as of December 31, 2018.
Five-year average full valuation of taxable property1,424,067,011$
Debt limit - 7% thereof99,684,691
Inclusions:
Serial bonds15,541,500
Exclusions:
Water and sewer debt (1)( 12,617,911)
Total net indebtedness2,923,589
Net debt contracting margin96,761,102$
Percent of debt contracting power exhausted3.02%
(1) Sewer and Water indebtedness are excluded pursuant to Section 136.00(4-a) and 136.00(2),
respectively, of the Local Finance Law.
Detailed information regarding the Town’s long-term liabilities is presented in Note 6C in 2018
Notes to the Financial Statements. Figure A-9 reflects changes in the Town’s debt for 2018.
FIGURE A-9
Governmental ActivitiesBusiness-type Activities
2018201720182017
Outstanding Debt
$ 3,221,9302,923,589$ 10,948,411$ 7,547,070$
Serial bonds
SCLIWC serial bonds- - 1,669,500 2,053,750
154,776 165,599 20,454 17,799
pensated absences
Com
953,622365,137 25,487 82,703
Net pension liability
6,318,3447,063,661 818,635 726,609
Otherpost-employment benefits, as restated
$ 10,648,67210,517,986$ 13,482,487$ 10,427,931$
Total
Figure A-10 depicts historical changes in fund balances for the Town of Ithaca for the period
2014 through 2018. Information for the Capital Projects Fund is omitted.
XI
Factors Bearing on the Town’s Future
On June 24, 2011, Chapter 97 of the Laws of 2011 (the “Tax Levy Limitation Law”) was
signed into law. The Tax Levy Limitation Law applies to all local governments, including
most school districts, independent special districts, and to town and county improvement
districts as part of their parent municipalities tax levies. The Tax Levy Limitation Law
restricts, among other things, the amount of real property taxes (including assessments of
certain special improvement districts) that may be levied by or on behalf of a municipality in
a particular year, beginning with fiscal years commencing on or after January 1, 2012. It
expires on June 16, 2016 unless extended. Pursuant to the Tax Levy Limitation Law, the tax
levy of a municipality cannot increase by more than the lesser of (i) two percent (2%) or (ii)
the annual increase in the consumer price index (“CPI”), over the amount of the prior year’s
tax levy. Certain adjustments would be permitted for taxable real property full valuation
increases or changes in physical or quantity growth in the real property base as defined in
Section 1220 of the Real Property Tax Law. A municipality may exceed the tax levy
limitation for the coming fiscal year only if the governing body of such municipality first
enacts, by at least a sixty percent vote of the total voting strength of the board, a local law
(resolution in the case of fire districts and certain special districts) to override such limitation
for such coming fiscal year only. There are permissible exceptions to the tax levy limitation
provided in the Tax Levy Limitation Law, including expenditures made on account of certain
tort settlements and certain increases in the average actuarial contribution rates of the New
York State and Local Employees’ Retirement System. Municipalities are also permitted to
carry forward a certain portion of their unused levy limitation from a prior year. Each
municipality prior to adoption of each fiscal year budget must submit for review to the State
Comptroller any information that is necessary in the calculation of its tax levy for each fiscal
year.
The Town exceeded the allowable increase in the tax levy limit in Fiscal Years 2012, 2014, 2015,
2016, 2017 and 2018. In 2018, the adopted tax levy was $245,923 or 2.67% over the allowable
increase. Of this increase, 80.1% was attributed to increases in property taxes, 19.1% to increases in
water and sewer benefit fees, and 0.80% to increases in PILOT payments.
The local unemployment rate has consistently been lower than the state and national
unemployment rates during and after the 2008 recession. The average annual unemployment
rate for 2012, 2013, 2014, 2015, 2016, 2017 and 2018, respectively, in Tompkins County
was 6.1%, 5.2%, 4.4%, 4.4%, 4.2%, 4.2% and 3.3% compared with 8.5%, 7.7%, 6.3%, 5.3,
4.9%, 4.7% and 3.8% for New York State, and 8.1%, 7.4%, 6.2%, 5.3%, 4.9%, 4.4% and
3.9% for the national average.
Description2012201320142015201620172018
National Average8.1%7.4%6.2%5.3%4.9%4.4%3.9%
New York State8.5%7.7%6.3%5.3%4.9%4.7%3.8%
Tompkins County6.1%5.2%4.4%4.4%4.2%4.2%3.3%
The low unemployment Rates for Tompkins County are due in part to the stabilizing
influence of the local colleges and other large employers. Cornell University and Ithaca
College in particular, with combined totals of over 10,000 employees and 28,000 students,
support a wide array of businesses in the retail, service and real estate sectors.
XVII
The Town of Ithaca will continue an aggressive Capital Improvement Program (CIP). The
Five-Year CIP for Fiscal Years 2018-2022 identifies various capital projects to be
constructed at a total estimated cost of $20,475,000. Of this total, $10,400,000 is for the
improvement of water infrastructure, $3,050,000 for sewer infrastructure, $1,000,000 for
storm water drainage improvements, $4,050,000 for road improvements, $1,500,000 for
improvements to Town facilities, and $475,000 for parks and trails development. Funding
will be provided with $8,677,000 from current year revenues or reserves, $98,000 from
grants and donations, and $11,700,000 from the issuance of new long-term bonded debt.
Taxable assessed valuation of real property in the Town continues to increase. In 2014, the
taxable assessed valuation of real property in the Town totaled $1,294,998,380. In 2018, the
total was $1,470,783,820, an increase of 13.57% from 2014 to 2018. The average annual
increase has been 3.23%.
Description20142015201620172018
Taxable Assessed Valuation1,294,998,380$ 1,323,741,670$ 1,366,007,677$ 1,409,909,397$ 1,470,783,820$
Change from Prior Year1.681%2.220%3.193%3.214%4.318%
Sales Tax collections in 2018 totaled $3,388,799, an increase of $203,830 or 6.4% over the
2017 total of $3,184,969. 2018 also sets a new historical high for sales tax collections,
surpassing the previous historical high total received in 2017. Sales tax revenues are
distributed between the General Townwide Fund, General Part-Town Fund and Highway
Part-Town Fund.
Description20142015201620172018
Sales Tax Collections
$ 3,067,3363,135,084$ 3,003,943$ 3,184,969$ 3,388,799$
Mortgage Tax Collections
415,760329,274 286,227 279,791 299,934
Mortgage Tax collections increased 7.2%, from collections totaling $279,791 in 2017 to
$299,934 in 2018. Mortgage tax revenues are assigned to the General Townwide Fund.
FINANCIAL CONTACT
The Town’s financial statements are designed to present users (citizens, taxpayers, customers,
investors and creditors) with a general overview of the Town’s finances and to demonstrate the
Town’s accountability. If you have questions about the report or need additional financial
information, contact the Town’s Supervisor, Town of Ithaca, 215 North Tioga Street, Ithaca, NY
14850.
XVIII
TOWN OF ITHACA
STATEMENT OF NET POSITION
December 31, 2018
ASSETS
GovernmentalBusiness-type
ActivitiesActivities
Dvssfou!Bttfut;
Cash11,289,894$ 5,559,683$
Cash, restricted1,485,39035,884
Accounts receivable:
Water and sewer rents- 1,144,776
Due from other funds36,053-
Due from other governments563,486 1,694,237
Other receivables2,429 5,235
Prepaid expenses11,261 -
Upubm!Dvssfou!Bttfut 8,439,81513,388,513
Dbqjubm!Bttfut-!net;
11,148,21415,284,248
Construction in progress894,1452,383,388
Upubm!Dbqjubm!Bttfut 17,667,63612,042,359
Upubm!Bttfut 25,430,87226,107,451
DEFERRED OUTFLOWS OF RESOURCES
Efgfssfe!Qfotjpo!Pvugmpx 1,437,726125,774
Efgfssfe!PQFC!Pvugmpx 374,24845,693
Upubm!Bttfut!boe!Efgfssfe!
Pvugmpxt!pg!Sftpvsdft$ 26,278,91827,242,846$
See notes to financial statements.
Intergovernmental
EliminationsTotal
$ 16,849,577-$
1,521,274-
1,144,776-
-( 36,053)
2,257,723-
7,664-
11,261-
21,792,275( 36,053)
26,432,462-
3,277,533-
29,709,995-
( 36,053)51,502,270
1,563,500-
419,941-
$ 53,485,711( 36,053)$
- 1 -
TOWN OF ITHACA
STATEMENT OF NET POSITION (continued)
December 31, 2018
LIABILITIES
GovernmentalBusiness-type
ActivitiesActivities
Dvssfou!Mjbcjmjujft;
Accrued liabilities701,647$ 776,468$
Bond interest payable22,719 52,802
Due to other funds- 36,053
Due to other governments260,742 16,000
Long-term debt, current portion274,4031,027,597
Upubm!Dvssfou!Mjbcjmjujft 1,908,9201,259,511
Mpoh.Ufsn!Efcu- non current
2,649,18611,590,314
Qsfnjvn!po!Cpoet!qbzbcmf 36,629104,397
Dpnqfotbufe!Bctfodft 165,59920,454
Ofu!Qfotjpo!Mjbcjmjuz 365,13725,487
PQFC!Mjbcjmjuz 7,063,661818,635
Upubm!Mjbcjmjujft 14,468,20711,539,723
DEFERRED INFLOWS OF RESOURCES
Efgfssfe!Qfotjpo!Jogmpx 1,144,980110,802
Efgfssfe!!Qspqfsuz!Ubyft!Jogmpx 207,77520,270
NET POSITION
Jowftufe!jo!Dbqjubm!Bttfut-!
net of related debt9,118,770 6,719,225
Sftusjdufe;
Culture and recreation886,977-
Equipment283,905-
Benefits314,50835,884
Vosftusjdufe 4,924,5303,746,208
Upubm!Ofu!Qptjujpo 11,679,63914,350,368
Upubm!Mjbcjmjujft-!Efgfssfe!Jogmpxt!
boe!Ofu!Qptjujpo$ 26,278,91827,242,846$
Intergovernmental
EliminationsTotal
$ 1,478,115-$
75,521-
-( 36,053)
276,742-
1,302,000-
3,132,378( 36,053)
14,239,500-
141,026-
186,053-
390,624-
7,882,296-
25,971,877( 36,053)
1,255,782-
228,045-
15,837,995-
886,977-
283,905-
350,392-
8,670,738-
26,030,007-
$ 53,485,711( 36,053)$
- 2 -
TOWN OF ITHACA
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2018
Program
Governmental Activities Revenue
Operating
Functions/ProgramsCharges forGrants and
ExpensesServicesContributions
General governmental support2,446,751$ 18,676$ 167,829$
Public safety3,432,909280-
Transportation3,520,35122,111-
Culture and recreation1,234,521- 101,342
Home and community services1,874,278 330,457 -
Total governmental activities12,508,810$ 371,524$ 269,171$
Business-type activities:
Water 3,496,709 3,196,948 -
Sewer 2,557,082 2,587,199 -
Total business-type activities6,053,791 5,784,147 -
$ 6,155,67118,562,601$ 269,171$
Hfofsbm!Sfwfovft;
Real property taxes and related tax items
Non-property taxes
Interest earnings
Fines and fees - town court
State aid not restricted to specific purposes
Other miscellaneous revenues
Transfers
Upubm!Hfofsbm!Sfwfovft
Dibohf!jo!Ofu!Qptjujpo
Ofu!Qptjujpo- beginning of year-!as restated
Ofu!Qptjujpo- end of year
See notes to financial statements.
Net (Expenses)
ProgramRevenues and
RevenueChanges in Net Position
Capital Grants
and GovernmentalBusiness-type
ContributionsActivitiesActivitiesTotal
$ ( 2,260,246)-$ - $ ( 2,260,246)$
( 3,432,629)- - ( 3,432,629)
293,411( 3,204,829) - ( 3,204,829)
( 1,133,179)- - ( 1,133,179)
( 1,543,821)- - ( 1,543,821)
$ (11,574,704)293,411$ - $ (11,574,704)$
- - ( 299,761) ( 299,761)
-- 30,117 30,117
-- ( 269,644) ( 269,644)
$ (11,574,704)293,411$ ( 269,644)$ (11,844,348)$
$ 1,189,7608,288,697$ 9,478,457$
3,445,296- 3,445,296
25,4717,46432,935
219,329- 219,329
339,172- 339,172
58975,400 74,811
( 2,620,884) 2,620,884 -
( 1,423,071)15,013,660 13,590,589
( 1,692,715) 3,438,956 1,746,241
10,911,41213,372,35424,283,766
$ 11,679,63914,350,368$ 26,030,007$
- 3 -
TOWN OF ITHACA
BALANCE SHEET – GOVERNMENTAL FUNDS
December 31, 2018
Major Funds
GeneralHighwayFire
Bttfut!boe!Puifs!Efcjut;
Unrestricted cash5,190,316$ 2,521,936$ 2,421,544$
Restricted cash1,122,073363,317-
Due from other funds- 112,976-
Due from other governments263,151138,067-
Prepaid expenses93,47429,303-
Other receivables2,429 - -
Upubm!Bttfut!boe!Puifs!Efcjut$ 3,165,5996,671,443$ 2,421,544$
Mjbcjmjujft-!Efgfssfe!Jogmpxt!pg!Sftpvsdft-!Gvoe!Frvjuz-!boe!Puifs!Dsfejut;
Mjbcjmjujft;
Accrued liabilities650,632$ 167,984$ 336,235$
Due to other funds49,413 27,510 -
Due to other governments260,742 - -
Upubm!Mjbcjmjujft 195,494 960,787 336,235
Efgfssfe!Jogmpxt!pg!Sftpvsdft;75,40556,65174,957
Gvoe!Cbmbodft;
Nonspendable - prepaid expenses93,47329,303-
Restricted1,122,073363,317-
Committed- - -
Assigned1,690,7522,520,8342,010,352
Unassigned2,728,953- -
Upubm!Gvoe!Cbmbodft 2,913,4545,635,251 2,010,352
Upubm!Mjbcjmjujft-!Gvoe!Frvjuz-
!boe!Puifs!Dsfejut$ 3,165,5996,671,443$ 2,421,544$
See notes to financial statements.
Nonmajor
Major FundsFundsTotal
CapitalOther Governmental
ProjectsFundsFunds
$ 113,6941,042,404$ 11,289,894$
- - 1,485,390
- - 112,976
- 60,891 462,109
- - 122,777
- - 2,429
$ 113,6941,103,295$ 13,475,575$
$ 277103,419$ 1,258,547$
-- 76,923
- - 260,742
277 103,419 1,596,212
762 207,775-
- - 122,776
- - 1,485,390
- 999,876 999,876
112,6556,334,593-
- - 2,728,953
112,655 999,876 11,671,588
$ 113,6941,103,295$ 13,475,575$
- 4 -
TOWN OF ITHACA
RECONCILIATION OF THE TOTAL FUND BALANCES SHOWN IN
THE GOVERNMENTAL FUNDS TO GOVERNMENTAL ACTIVITIES SHOWN IN
THE STATEMENT OF NET POSITION
December 31, 2018
Total fund balances in the fund financial statements for the governmental funds.11,671,588$
This amount differs from the balance of net position in the Statement of Net
Position due to the following:
Capital assets are included as assets in the government-wide statements and
are added, net of accumulated depreciation.12,042,359
Long-term liabilities for bonded debt are included as liabilities in the government-
wide statements and are subtracted.( 2,960,218)
Receivables for revenues earned and measurable, but not available to provide
financial resources, are included in the government-wide statements as assets
and are added. 101,377
Long-term liabilities for compensated absences and other post employment benefits
are included in the government-wide statements as liabilities and are subtracted.( 6,672,361)
Current liabilities for bond interest payable are included in the government-
wide statements as liabilities and are subtracted.( 22,719)
Deferred outflows of resources are included in the government-wide
statements and are added.1,811,974
Net pension liability is included in the government-wide statements
and is subtracted.( 365,137)
Prepaid pension expense is included in the fund financial statements
and is subtracted.( 111,515)
Deferred inflows of resources are included in the government-wide
statements and are subtracted.( 1,144,980)
Interfund receivables and payables within the governmental funds are eliminated
in the government-wide statements. The amounts offset:
Due from other funds 76,923
Due to other funds( 76,923)
Total Net Position - End of Year14,350,368$
See notes to financial statements.
- 5 -
TOWN OF ITHACA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2018
Major Funds
GeneralHighwayFire
Sfwfovft;
Real property taxes2,750,189$ 2,200,000$ 3,250,000$
Real property tax items58,92910,579-
Non-property tax items:
Sales tax1,588,7991,800,000-
Other non-property tax items56,497- -
Departmental income335,952- -
Intergovernmental charges101,34222,111-
Use of money and property10,9685,4937,074
Rental income29,151- -
Licenses and permits23,488- -
Fines and forfeitures219,329- -
Sale of property and compensation for loss5,61446,216-
Local sources145,95619,058-
State sources:
Mortgage tax299,934- -
State aid per capita100,368- -
NYS highway improvement (CHIPS)- 132,646-
Miscellaneous- - 23,456
Upubm!Sfwfovft 4,236,1035,726,516 3,280,530
Other Sources:
Inter-fund transfers608,303150,000-
Upubm!Sfwfovft!boe!Puifs!Tpvsdft 4,386,1036,334,819 3,280,530
See notes to financial statements.
MajorNonmajor
FundsFundsTotal
CapitalOther Governmental
ProjectsFundsFunds
$ 19,000-$ 8,219,189$
- - 69,508
- - 3,388,799
- - 56,497
- - 335,952
- - 123,453
8101,126 25,471
- - 29,151
- - 23,488
- - 219,329
- - 51,830
- - 165,014
- - 299,934
- - 100,368
- - 132,646
60,765- 84,221
20,126 61,575 13,324,850
258,1132,468,684 3,485,100
278,2392,530,259 16,809,950
- 6 -
TOWN OF ITHACA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES
GOVERNMENTAL FUNDS (continued)
For the Year Ended December 31, 2018
Major Funds
GeneralHighwayFire
Fyqfoejuvsft;
General governmental support1,637,813$ 75,825$ 1,950$
Public safety71,284- 3,347,056
Transportation439,5622,591,439-
Culture and recreation1,055,573- -
Home and community services1,114,681- -
Employee benefits1,292,072518,738-
Debt service (principal and interest)- - -
Upubm!Fyqfoejuvsft 3,186,0025,610,985 3,349,006
Other Uses:
Interfund transfers310,058554,158-
Upubm!Fyqfoejuvsft!boe!Puifs!Vtft 3,740,1605,921,043 3,349,006
Fydftt!)Efgjdju*!pg!Sfwfovft!
pwfs!Fyqfoejuvsft 645,943 413,776 ( 68,476)
Gvoe!Cbmbodf- beginning of year
5,221,4752,267,5112,078,828
Gvoe!Cbmbodf- end of year
$ 2,913,4545,635,251$ 2,010,352$
See notes to financial statements.
MajorNonmajor
FundsFundsTotal
CapitalOther Governmental
ProjectsFundsFunds
$ 3,066-$ 1,718,654$
- - 3,418,340
13,342 3,120,30075,957
- - 1,055,573
- - 1,114,681
- - 1,810,810
386,112 386,112-
402,52075,957 12,624,470
- - 864,216
402,52075,957 13,488,686
( 124,281)2,454,302 3,321,264
236,936 8,350,324( 1,454,426)
$ 112,655999,876$ 11,671,588$
- 7 -
TOWNOFITHACA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE OF THE GOVERNMENTAL FUNDS TO THE CHANGE IN NET POSITION OF
GOVERNMENTAL ACTIVITIES SHOWN IN THE STATEMENT OF ACTIVITIES
F OR THE Y EAR E NDED D ECEMBER 31,2018
NetchangeinfundbalancesshownfortotalGovernmentalFunds.Thisamountdiffers
fromthechangeinnetpositionreflectedintheStatementofActivitiesduetothe
following:
$ 3,321,264
Capitaloutlaysfortheacquisitionofcapitalassetsandcapitalprojectsarereportedin
theGovernmentalFundsasexpenditures.IntheStatementofActivities,thecostof
thoseassetsisallocatedovertheirusefullivesandreportedannuallyasdepreciation
expense.IntheStatementofActivities,acquisitioncostsareremovedanddepreciation
expense is added as follows:
Capital expenditures1,220,130
Depreciation expense( 992,214) 227,916
ProceedsfromsalesofequipmentarerecordedasrevenueintheGovernmentalFunds.
IntheStatementofActivities,againorlossisrecognizedbasedonthenetbookvalue
oftheassetsold(costminusaccumulateddepreciation)andthesalepriceofthe
equipment:
Proceeds from equipment sales( 33,616)
Loss recognized( 3,590) ( 37,206)
MajorrevenuesarerecordedintheGovernmentalFundswhentheyareearned,
measurableandavailabletoprovidecurrentfinancialresources.IntheStatementof
Activities,majorrevenuesarerecognizedwhentheyareearnedandmeasurable,
regardlessofwhentheybecomeavailable.Currentyearrevenues,earnedand
measurable,arerecognizedintheStatementofActivities.TheGovernmentalFunds
includeamountsthatwereearnedandmeasurableintheprioryear,andtheseamounts
are removed to prevent overstating revenues on the Statement of Activities:
Current year revenues 101,377
Prior year revenues( 62,139) 39,238
BondprincipalpaymentsarereflectedasexpendituresintheGovernmentalFunds.
ThesepaymentsarereflectedontheStatementofNetPositionasareductionofdebt
obligationsandarenotincludedintheStatementofActivities.Bondprincipal
payments for the current year are as follows:
298,341
See notes to financial statements.
- 8 -
TOWNOFITHACA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE OF THE GOVERNMENTAL FUNDS TO THE CHANGE IN NET POSITION OF
GOVERNMENTAL ACTIVITIES SHOWN IN THE STATEMENT OF ACTIVITIES
F OR THE Y EAR E NDED D ECEMBER 31,2018(continued)
InterestondebtisreportedintheGovernmentalFundswhenthepaymentsare
rendered.IntheStatementofActivities,interestexpenseisallocatedoverthetime
periodsitpertainsto.Interestexpenseallocatedtoapplicableperiodsisgreaterthan
Governmental Funds interest expense by the following amount:
2,121
PaymentsforcompensatedabsencesarereportedintheGovernmentalFundsasthey
aredue.IntheStatementofActivities,theseamountsarereportedintheperiodsthat
theliabilitiesareincurred.Currentyearexpendituresforamountsduefromprioryears
areremovedandanexpenseisrecognizedforcurrentyearliabilitiesthathavenotbeen
paid:
Prior year expenses 154,776
Current year expenses( 165,599) ( 10,823)
PaymentsforotherpostemploymentbenefitsarereportedintheGovernmentalFunds
astheyaredue.IntheStatementofActivities,anexpenseisrecognizedbasedonan
actuarialestimateofthecurrentyearcostassociatedwithamortizingtheestimated
present value of future benefits over a thirty-year period:
( 388,042)
PaymentsforpensionexpensesarereportedintheGovernmentalFundsastheyare
due.IntheStatementofActivities,theexpenseisadjustedbasedonpension
information provided by the retirement system in accordance with GASB 68:
( 17,127)
AmortizationofbondpremiumsarenotreportedintheGovernmentalFunds.Inthe
StatementofActivities,anadjustmenttointerestexpenseisrecognizedbasedonthe
current year amortization associated with the bonds:
3,274
InterfundtransactionsareeliminatedintheStatementofActivities.Theamounts
offset, and have a zero effect on operations:
Transfers in 864,216
Transfers out( 864,216) -
Change in Net Position$ 3,438,956
See notes to financial statements.
- 9 -
TOWN OF ITHACA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2018
Qspqsjfubsz!Gvoet
SewerWater
FundFundTotal
Dvssfou!Bttfut;
Cash2,738,835$ 2,820,848$ 5,559,683$
Cash, restricted 23,83812,046 35,884
Accounts receivable:
Accounts receivables-5,2355,235
Water and sewer rents532,117 612,659 1,144,776
Due from other governments- 1,694,237 1,694,237
Upubm!Dvssfou!Bttfut 5,156,8173,282,998 8,439,815
Dbqjubm!Bttfut-!net;
Equipment and machinery446,281345,721792,002
Infrastructure2,411,29712,080,94914,492,246
Construction in progress150,179 2,233,2092,383,388
Upubm!Dbqjubm!Bttfut 14,659,8793,007,757 17,667,636
Upubm!Bttfut 6,290,75519,816,69626,107,451
Efgfssfe!Qfotjpo!Pvugmpx 45,48080,294125,774
Efgfssfe!PQFC!Pvugmpx 24,53321,16045,693
Upubm!Bttfut!boe!Efgfssfe
Pvugmpxt!pg!Sftpvsdft$ 19,918,1506,360,768$ 26,278,918$
Dvssfou!Mjbcjmjujft;
Accrued liabilities495,286$ 281,182$ 776,468$
Bond interest payable- 52,802 52,802
Due to other funds24,47511,57836,053
Due to other governments16,000- 16,000
Long-term debt, current portion- 1,027,597 1,027,597
Upubm!Dvssfou!Mjbcjmjujft 1,373,159535,761 1,908,920
Mpoh.Ufsn!Efcu- non current
11,590,314- 11,590,314
Qsfnjvn!po!Cpoet!Qbzbcmf 104,397104,397-
Dpnqfotbufe!Bctfodft 11,5268,92820,454
Ofu!Qfotjpo!Mjbcjmjuz 9,11516,37225,487
PQFC!Mjbcjmjuz 341,305477,330818,635
Upubm!Mjbcjmjujft 13,570,500897,707 14,468,207
Efgfssfe!Qfotjpo!Jogmpxt 39,51771,285110,802
Efgfssfe!Qspqfsuz!Ubyft!Jogmpx 4,70315,56720,270
Jowftufe!jo!Dbqjubm!Bttfut-
net of related debt 3,711,4683,007,757 6,719,225
Sftusjdufe;
Benefits12,04623,83835,884
Vosftusjdufe 2,399,0382,525,4924,924,530
Upubm!Ofu!Qptjujpo 6,260,7985,418,841 11,679,639
Upubm!Mjbcjmjujft-!Efgfssfe!Jogmpxt
boe!Ofu!Qptjujpo$ 19,918,1506,360,768$ 26,278,918$
See notes to financial statements.
- 10 -
TOWN OF ITHACA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET POSITION
PROPRIETARY FUNDS
December 31, 2018
Qspqsjfubsz!Gvoet
SewerWater
FundFundTotal
Pqfsbujoh!Sfwfovft;
Charges for services2,587,199$ 3,196,948$ 5,784,147$
Upubm!Pqfsbujoh!Sfwfovft 3,196,948 2,587,199 5,784,147
Pqfsbujoh!Fyqfotft;
Cost of sales and services2,005,5162,452,4424,457,958
Wages and benefits353,532 333,525 687,057
Depreciation148,873 427,244 576,117
Administration49,16177,430126,591
Upubm!Pqfsbujoh!Fyqfotft 3,290,641 2,557,082 5,847,723
Pqfsbujoh!Jodpnf ( 93,693) 30,117 ( 63,576)
Opo.Pqfsbujoh!Sfwfovft!)Fyqfotft*;
Real property taxes197,896 991,864 1,189,760
Intergovernmental charges- 589589
Interest expense- ( 206,068) ( 206,068)
Use of money and property5,3582,1067,464
Upubm!Opo.Pqfsbujoh!Sfwfovft 203,254788,491991,745
Joufsgvoe!Pqfsbujoh!Usbotgfst ( 2,439,084)( 181,800) ( 2,620,884)
Dibohf!jo!Ofu!Qptjujpo ( 1,744,286) 51,571 ( 1,692,715)
Ofu!Qptjujpo- beginning of year, as restated
5,367,2708,005,08413,372,354
Ofu!Qptjujpo- end of year
$ 6,260,7985,418,841$ 11,679,639$
See notes to financial statements.
- 11 -
TOWN OF ITHACA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
December 31, 2018
Qspqsjfubsz!Gvoet
SewerWater
FundFundTotal
Dbti!Gmpxt!gspn!Pqfsbujoh!Bdujwjujft;
Received from user charges and other assessments2,541,982$ 3,190,970$ 5,732,952$
Payments for administration( 49,161) ( 77,430) ( 126,591)
Payments for wages and benefits( 379,744) ( 381,884) ( 761,628)
Payments to suppliers for goods and services( 1,481,701) ( 2,407,049) ( 3,888,750)
Ofu!Dbti!Qspwjefe!cz!Pqfsbujoh!Bdujwjujft 324,607 631,376 955,983
Dbti!Gmpxt!gspn!Opo.Dbqjubm!Gjobodjoh;
Real property taxes197,896991,864 1,189,760
Operating grants( 41,669) 1,937,426 1,895,757
Transfers (to) from other funds( 181,800) ( 2,439,084) ( 2,620,884)
Ofu!Dbti!)Vtfe!jo*!Qspwjefe!cz
Opo.Dbqjubm!Gjobodjoh!Bdujwjujft 490,206( 25,573) 464,633
Dbti!Gmpxt!gspn!Dbqjubm!boe!Sfmbufe
Gjobodjoh!Bdujwjujft;
Proceeds from capital debt- 2,382,411 2,382,411
Acquisition of capital assets( 467,233) ( 96,199) ( 563,432)
Principal paid on capital debt- ( 748,659) ( 748,659)
Interest paid on capital debt- ( 200,872) ( 200,872)
Ofu!Dbti!Vtfe!jo!)Qspwjefe!cz*!Dbqjubm!boe!
Sfmbufe!Gjobodjoh!Bdujwjujft 1,336,681( 467,233) 869,448
Dbti!Gmpxt!gspn!Jowftujoh!Bdujwjujft;
Interest on cash and CD’s5,3582,1067,464
Ofu!Dbti!Qspwjefe!cz!Jowftujoh!Bdujwjujft 2,1065,358 7,464
Ofu!Dibohf!jo!Dbti!boe!Dbti!Frvjwbmfout 2,153,600 143,928 2,297,528
Cash, beginning of year2,606,953691,0863,298,039
Cash, end of year2,750,881$ 2,844,686$ 5,595,567$
Sfdpodjmjbujpo!pg!Pqfsbujoh!Jodpnf!up!Ofu!Dbti
Qspwjefe!cz!Pqfsbujoh!Bdujwjujft;
Operating income30,117$ ( 93,693)$ ( 63,576)$
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation 148,873 427,244 576,117
Amortization of bond premiums- ( 10,913) ( 10,913)
Changes in receivables( 45,217) ( 5,978) ( 51,195)
Changes in deferred outflows of resources, as restated( 35,246) ( 41,151) ( 76,397)
Changes in liabilities, as restated 503,307 19,598 522,905
Changes in deferred inflows of resources 29,542 29,500 59,042
Ofu!Dbti!Qspwjefe!cz!Pqfsbujoh!Bdujwjujft$ 324,607631,376$ 955,983$
See notes to financial statements.
- 12 -
TOWN OF ITHACA
STATEMENT OF FIDUCIARY NET POSITION
AGENCY FUNDS
December 31, 2018
Bttfut;
Cash314,090$
Upubm!Bttfut$314,090
Mjbcjmjujft;
Accounts payable and other liabilities314,090$
Upubm!Mjbcjmjujft 314,090
Ofu!Qptjujpo -
Upubm!Mjbcjmjujft!boe!Ofu!Qptjujpo$314,090
See notes to financial statements.
- 13 -
TOWN OF ITHACA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements of the Town of Ithaca 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.
A. Financial Reporting Entity
The Town of Ithaca, which was established in 1821, is governed by the Town
Law, other general municipal laws of the State of New York, and various local
laws. The Town Board is the legislative body responsible for the overall
operation, the Town Supervisor serves as Chief Executive Officer and Chief
Fiscal Officer.
The Town provides the following principal services: fire protection, transportation
(streets and highways), recreation, planning and zoning, general administration,
and public improvements.
Street lighting is provided by the Town Board in nine separate areas of the Town
called lighting districts. It is funded by means of a tax on the real property
situated within each district. The Town provides for intersection street lighting
from the General Fund appropriations.
Fire protection for certain areas of the Town outside the village is provided by the
Town Board via the Ithaca Fire Protection District. This district is funded by
means of a tax on the real property situated within the district. Services for fire
protection are contracted out through the City of Ithaca and the Village of Cayuga
Heights.
All governmental activities and functions performed for the Town of Ithaca are its
direct responsibility. No other governmental organization has been included or
excluded from the reporting entity.
The financial reporting entity consists of the following, as defined by
Governmental Accounting Standards Board (GASB) Statement #14, "The
Financial Reporting Entity:"
1. The primary government which is the Town of Ithaca.
2. Organizations for which the primary government is financially accountable,
and;
3. Other organizations for which the nature and significance of their relationship
with the primary government is such that exclusion would cause the reporting
entity’s general-purpose financial statements to be misleading or incomplete.
The decision to include a potential component unit in the reporting entity is based
on the criteria set forth in GASB Statement #14, including legal standing, fiscal
dependency, and financial accountability.
- 14 -
B.Excluded from the Reporting Entity
The following activities are jointly undertaken with other municipalities. These
activities are excluded from the Town’s financial statements.
1. Southern Cayuga Lake Intermunicipal Water Commission (SCLIWC) is a
joint venture involving the Towns of Ithaca, Dryden, Lansing and the Villages
of Cayuga Heights and Lansing. The joint venture operates under terms of an
original agreement dated March 1, 1977. The agreement was restated on
September 11, 2017.
SCLIWC’s executive body consists of ten members, two members being
appointed by each municipality. The Treasurer of SCLIWC is traditionally
the Town of Ithaca’s Supervisor.
The Town of Ithaca owns a majority (51.87%) of the Commission and
must adopt its budget and any subsequent amendments.
The executive body has established charges at rates intending to be self-
sustaining to cover all operating costs and debt service. Any shortfalls in
revenues produced by such charges will ultimately be provided by
contributions from participants.
A separate audited financial statement is available from the administrative
offices of the Southern Cayuga Lake Intermunicipal Water Commission, 1402
East Shore Drive, Ithaca, New York 14850. For the year ended December 31,
2018, the audited financial statements of the Commission showed:
Total Assets$13,886,093
Deferred Outflows of Resources690,456$
Total Liabilities6,401,468$
Deferred Inflows of Resources392,331$
Net Position7,782,750$
Total Revenues4,191,628$
Total Expenses3,577,238$
2.The Ithaca Area Wastewater Treatment Plant (IAWTP) is a joint venture
involving the Towns of Ithaca and Dryden, and the City of Ithaca. This joint
venture was formed for the treatment of wastewater. The joint venture
operates under terms of an original agreement dated December 22, 1981 and
has been amended several times, the last of which is dated December 31,
2003. Construction of the treatment plant began in 1984 and was completed
in 1986.
The Special Joint Committee (governing body) of the IAWTP consists of
eight members; four from the City of Ithaca, three from the Town of
Ithaca, and one from the Town of Dryden. The City of Ithaca operates the
plant and has custody of the joint activity funds.
Capital costs allocated to the Town of Ithaca are 40.69% of the total.
The governing body has established charges at rates intending 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.
- 15 -
The following information is from the separately issued financial statements of
the IAWTP for the year ended December 31, 2017 (latest available):
Total Assets$31,604,628
Deferred Outflows of Resources233,759$
Total Liabilities20,900,464$
Deferred Inflows of Resources55,752$
Net Position10,882,171$
Total Revenues4,055,202$
Total Expenses5,676,896$
C. Basis of Presentation
1.Government-wide Statements
The Statement of Net Position and the Statement of Activities present
financial information about the Town’s governmental activities. These
statements include the financial activities of the overall government in its
entirety, except those that are fiduciary. Eliminations have been made to
minimize the double counting of internal transactions. These statements
distinguish between the governmental and business-type activities of the
Town. Governmental activities generally are financed through taxes, state
aid, intergovernmental revenues, and other exchange and non-exchange
transactions. Business-type activities are financed in whole or in part by fees
charged to external parties. Operating grants include operating-specific and
discretionary (either operating or capital) grants, while the capital grants
column reflects capital-specific grants.
The Statement of Activities presents a comparison between direct expenses
and program revenues for each function of the Town’s governmental
activities. Direct expenses are those that are specifically associated with and
are clearly identifiable to a function. Program revenues include charges paid
by the recipients of goods or services offered by the programs, and grants and
contributions that are restricted to meeting the operational or capital
requirements of a program. Revenues that are not classified as program
revenues, including all taxes, are presented as general revenues.
2. Fund Financial Statements
The fund statements provide information about the Town’s funds, including
fiduciary funds. Separate statements for each fund category (governmental,
proprietary, and fiduciary) are presented. The emphasis of fund financial
statements is on major Governmental and Enterprise Funds, each displayed in
a separate column. All remaining Governmental Funds are aggregated and
reported as non-major funds.
Proprietary fund operating revenues, such as charges for services, result from
exchange transactions associated with the principal activity of the fund.
Exchange transactions are those in which each party receives and gives up
essentially equal values. Non-operating revenues, such as subsidies and
investments earnings, result from non-exchange transactions or ancillary
activities.
- 16 -
The Town of Ithaca reports the following major Governmental Funds:
General Fund: This is the Town’s primary operating fund. It
accounts for all financial transactions that are not required by law or
other provision to be accounted for in other funds.
Highway Fund: Used to account for revenues and expenditures for
part town highway purposes.
Fire Protection District Fund: Used to record transactions involving
the Town Fire Protection District and the contracts for fire protection
with the City of Ithaca and Village of Cayuga Heights.
Capital Projects Fund: Used to account for capital improvements
financed from current monies transferred from other funds, federal and
state grants and proceeds of obligations.
The Town also reports the following non-major funds:
Lighting District Fund: Used to record operation and maintenance
transactions. Revenues derived from special districts’ assessment.
Debt Service Fund: Used to account for interest earned on proceeds
of borrowing for capital projects. Interest earned is transferred to the
Debt Service Fund from the Capital Projects Fund and then to the
Operating Funds for payment of principal and interest. Annual
principal and interest payments due on serial bonds are transferred
from the Town's other funds. Payments are made directly from the
Debt Service Fund to the respective paying agents.
Inlet Valley Cemetery Fund:The Inlet Valley Cemetery Association
was dissolved in 2010, upon which ownership of the cemetery
devolved to the Town in accordance with state statutes. This account
is used to account for funds used for maintenance of the cemetery.
The Town reports the following major enterprise funds:
Water Fund: This enterprise fund is used to account for the activity
of providing water service to residents of the Town of Ithaca. The
Town is responsible for the collection of water revenues in the Town
of Ithaca and contracts for delivery services with the Southern Cayuga
Lake Intermunicipal Water Commission (SCLIWC) and Ithaca Area
Wastewater Treatment Plant (IAWTP).
Sewer Fund:This enterprise fund is used to account for the activity
of providing sewer service to residents of the Town of Ithaca. The
Town is responsible for the collection of sewer revenues in the Town
of Ithaca and contracts for treatment services with the Southern
Cayuga Lake Intermunicipal Water Commission (SCLIWC) and
Ithaca Area Wastewater Treatment Plant (IAWTP).
The Town reports the following fiduciary funds:
Agency Fund:Used to account for those funds held in custody and
subsequent distributions, transmittal or release to other governments,
individuals or to other funds.
- 17 -
D. Measurement Focus and Basis of Accounting
The Government-Wide financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting. Revenues are
recorded when earned and expenses are recorded at the time liabilities are
incurred, regardless of when the related cash transaction takes place. Non-
exchange transactions, in which the Town gives or receives value without directly
receiving or giving equal value in exchange, include property taxes, grants and
donations. On an accrual basis, revenue from property taxes is recognized in the
fiscal year for which the taxes are levied. Revenue from grants and donations are
recognized in the fiscal year in which all eligibility requirements have been
satisfied.
Proprietary funds distinguish operating revenues and expenses from non-
operating items. Operating revenues and expenses generally result from
providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. The principal operating revenues
of the Town are charges to customers for sewer and water fees. Operating
expenses for enterprise funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as non-operating revenues and expenses.
The Governmental Funds are reported using the current financial resources
measurement focus and 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 the related fund liability is incurred, except for
principal and interest on general long-term debt, claims and judgments, and
compensated absences, which are recognized as expenditures to the extent they
have matured. General capital asset acquisitions are reported as expenditures in
Governmental Funds. Proceeds of general long-term debt and acquisitions under
capital leases are reported as other financing sources.
E. Property Taxes
Town real property taxes are levied annually on January 1 and become a lien on
that date. Property owners can elect to pay their taxes using one of two options.
Taxpayers may elect to pay their bill in two installments equal to ½ the total bill,
plus a 2.5% processing fee. If the installment option is selected, the first payment
is due between January 1 and January 14, without penalty, or between January 15,
and January 20, with 1% interest (election to pay in installments ceases January
20). The second installment is due on or before July 1, payable to the County
Division of Budget and Finance.
Taxpayers may elect to pay their tax bill in full. Using this method, taxes are
collected during the period January 1 to January 31 at face value and from
February 1 to May 31 with interest added. The Town Receiver of Taxes collects
all real estate taxes for Town and County purposes. The Town Receiver
- 18 -
distributes the collected tax money to the Town Supervisor prior to distributing
the balance collected to the County on June 1. The Town thereby is assured of
100% tax collection. Responsibility for the collection of unpaid taxes rests with
the County. Uncollected tax liens are sold annually by the County.
F.Budgetary Data
1. Budget Policies – The budget policies are as follows:
a. No later than October 5, the budget officer submits a tentative budget to
the Town Board 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 November 20, the Town Board adopts the budget.
c. All modifications of the budget must be approved by the Town Board.
However, the Town Supervisor is authorized to transfer certain budgeted
amounts within departments.
d. Appropriations lapse at year-end.
2.Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other
commitments for the expenditure of monies are recorded for budgetary control
purposes to reserve that portion of the applicable appropriations, is employed
in all 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. For
the year ended December 31, 2018, no budgetary encumbrances were
outstanding. In the interest of accurately monitoring, budgeting and
maintaining an adequate operating fund balance in all funds, it is the Town's
fiscal practice not to encumber unused appropriations into the ensuing year's
budgeted operations.
G. Cash and Investments
The Town of Ithaca's investment policies are governed by State statutes. In
addition, the Town of Ithaca has its own written investment policy. Town of
Ithaca's monies must be deposited in FDIC insured commercial banks or trust
companies located within the State. The supervisor 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 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 and New York State. Underlying securities
must have market value of at least the cost of the repurchase agreement.
- 19 -
H. Accounts Receivable
Accounts receivable are shown gross, with uncollectible amounts recognized
under the direct write-off method. No allowance for uncollectible accounts has
been provided since it is believed that such allowance would not be material. All
receivables are expected to be collected within the subsequent fiscal year.
I. Due to/from Other Funds
Amounts due to and due from within the same fund type are eliminated in the
Government-wide statements. Inter-fund receivables and payables are detailed in
Note 4 on page 28.
J. Inventories and Prepaid Items
Purchases of inventoriable items are recorded as expenditures in the
Governmental Funds at the time of purchase. Inventory-type items are considered
immaterial and, consequently, are not provided in the Government-wide
statements.
Prepaid items represent payments made by the Town for which benefits extend
beyond year-end.
K. Capital Assets
Capital assets are reported at historical cost. The Town depreciates capital assets
using the straight-line method over the estimated useful life of the assets.
Capitalization thresholds (the dollar value above which capital asset acquisitions
are added to the capital asset accounts) and estimated useful lives of capital assets
reported in the Government-wide statements are as follows:
Estimated
Capitalization Useful
Threshold Life
Building and improvements $ 5,000 30-40 years
Non-building improvements 5,000 15-20 years
Equipment and machinery 5,000 5-15 years
Furniture and furnishings 5,000 10 years
L. Infrastructure
The Town includes long-lived improvements to roads, water and sewer systems as
capital assets in the Government-wide statements. Infrastructures are reported at
historical costs and are depreciated using the straight-line method over their
estimated useful lives.
Capitalization thresholds and estimated useful lives for infrastructures are as
follows:
Estimated
Capitalization Useful
Threshold Life
Road systems $ 10,000 20 years
Water and sewer systems 10,000 40 years
- 20 -
M. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate
section for deferred outflows of resources. This separate financial statement
element, deferred outflows of resources, represents a consumption of net position
that applies to a future period(s) and so will not be recognized as an outflow of
resources (expense/expenditure) until then. The Town has two items that qualify
for reporting in this category; the deferred outflow related to pensions and OPEB
reported in the Statement of Net Position.
In addition to liabilities, the statement of net position will sometimes report a
separate section for deferred inflows of resources. This separate financial
statement element, deferred inflows of resources, represents an acquisition of net
position that applies to a future period(s) and therefore, will not be recognized as
an inflow of resources (revenue) until that time. The Town has two items that
qualifies for reporting in this category; the deferred inflow related to pensions
reported in the Statement of Net Position and the deferred inflow related to
prepaid property taxes reported in each applicable governmental fund.
N. Vested Employee Benefits
Employees accrue (earn) vacation leave based on the number of years employed
up to a maximum of 20 days a year. Upon separation from service, employees are
paid for unused vacation time. The liability for accrued vacation time is reflected
in the Government-wide statements as a long-term liability.
Employees accrue (earn) sick leave at the rate of one day per month and may
accumulate such credits up to a total of 120 days. Employees who retire apply
any unused sick leave to pay for individual cost employee health insurance
benefits and potentially add accumulated sick time to be credited to their service
time in the New York State Retirement System.
In addition to providing pension benefits, the Town of Ithaca provides health
insurance coverage for retired employees. Substantially all the Town's employees
may become eligible for these benefits if they reach normal retirement age while
working for the Town. Health care benefits are provided through an insurance
company whose premiums are based on the benefits paid during the year for the
community. These benefits are further discussed in Note 9.
O. Unemployment Insurance
As of January 1, 1978, Town employees are covered by unemployment insurance.
The Town has chosen to discharge its liability to the New York State
Unemployment Insurance Fund by means of the benefit reimbursement method.
This is a dollar-for-dollar reimbursement to the Unemployment Insurance Fund
for the benefits paid to former employees and charged to the Town's account. The
Town is exempt from federal unemployment insurance tax.
P. Deferred Compensation
The Town offers their employees a Deferred Compensation Plan (the Plan)
created in accordance with Internal Revenue Code Section 457. The Plan, which
is available to all eligible participants, permits participants to defer a portion of
their salary (100% of gross wages not to exceed $18,500 or $24,500 for
employees over the age of 50 to allow for catch up contributions) until future
- 21 -
years. Amounts deferred under the Plan are not available to the employee until
termination, retirement, death or unforeseeable emergency. Effective, January 1,
1998, all amounts of compensation deferred under the Plan, all property and rights
purchased with the amounts, and all income attributable to these amounts are the
sole property of the employee. As required, the Town Supervisor is the Chairman
of the Town’s Deferred Compensation Committee and Trustee.
Q. Risk Retention
The Town of Ithaca is exposed to various risks of loss related to employee injury.
During 1996 the Town established reservations of fund balance to finance certain
uninsured risks of loss in the interest of lower annual insurance costs. Claims that
will be paid from these reserves are for small employee medical claims. During
the year ended December 31, 2018, $17,645 was paid out on behalf of the
employees.
R. Restricted Resources
When an expense is incurred for purposes for which both restricted and
unrestricted net position is available, it is the Town’s policy to apply restricted
funds before unrestricted funds, unless otherwise prohibited by legal
requirements.
S. Equity Classification
1. Government-wide Statements
Equity is classified as net position and displayed in three components:
Invested in Capital Assets, Net of Related Debt
Consists of capital assets including restricted capital assets, net of
accumulated depreciation and reduced by the outstanding balances of any
bonds, mortgages, notes or other borrowings that are attributable to the
acquisition, construction, or improvement of those assets.
Restricted Net Position
Consists of net position with constraints placed on the use either by 1)
external groups such as creditors, grantors, contributors, or laws or
regulations of other governments; or 2) law through constitutional
provisions or enabling legislation.
Unrestricted Net Position
All other net position that does not meet the definition of “restricted” or
“invested in capital assets, net of related debt.”
2.Fund Financial Statements
Classification of fund balance reflects spending constraints on resources,
rather than availability for appropriation to provide users more consistent and
understandable information about a governmental fund’s net resources.
Constraints are broken down into five different classifications: non-spendable,
restricted, committed, assigned, and unassigned. The classifications serve to
inform readers of the financial statements of the extent to which the
- 22 -
government is bound to honor constraints on the specific purposes for which
resources in a fund can be spent.
Governmental fund equity is classified as fund balance. In the fund basis
statements there are five classifications of fund balance:
Non-spendable Fund Balance
Consists of assets that are inherently non-spendable in the current period
either because of their form or because they must be maintained intact,
including prepaid items, inventories, long-term portions of loans
receivable, financial assets held for resale and principal of endowments.
The Town’s non-spendable fund balance is comprised of prepaid
expenses.
Restricted Fund Balance
Consists of amounts that are subject to externally enforceable legal
purpose restrictions imposed by creditors, grantors, contributors or laws or
regulations of other governments; or imposed by law through
constitutional provisions or enabling legislation. The Town’s restricted
fund balance includes a general-purpose benefit reserve, a parks and open
space plan reserve, a highway equipment reserve and a reserve for
cemetery maintenance.
Committed Fund Balance
Consists of amounts that are subject to a purpose constraint imposed by
formal action of the Town’s highest level of decision-making authority
(the Town Board) before the end of the fiscal year and that require the
same level of formal action to remove the constraint.
Assigned Fund Balance
Consists of amounts that are subject to a purpose constraint that represents
an intended use established by the government’s highest level of decision-
making authority or by their designated body or official. In funds other
than the General Fund, the Town’s assigned fund balance represents the
residual amount of fund balance. In the General Fund, assigned fund
balance represents the portion of fund balance appropriated for the ensuing
year’s budget.
Unassigned Fund Balance
Represents the residual classification of the government’s general fund
and could report a surplus or a deficit. In funds other than the general
fund, the unassigned classification is used only to report a deficit balance
resulting from overspending for specific purposes for which amounts had
been restricted, committed or assigned.
3.Order of Use of Fund Balance
The Town’s policy is to apply expenditures against non-spendable fund
balance, restricted fund balance, committed fund balance, assigned fund
balance and unassigned fund balance at the end of the fiscal year. For all
- 23 -
funds, non-spendable fund balances are determined first and then
restricted fund balances for specific purposes are determined. Any
remaining fund balance amounts for funds other than the General Fund are
classified as committed or assigned fund balance. In the General Fund,
committed fund balance is determined next and then assigned fund
balance. The remaining amounts are reported as unassigned. Assignments
of fund balance cannot cause a negative unassigned fund balance.
4. Fund Financial Statements - Restricted Fund Balance
The General Town-Wide Fund equity includes reserve funds established
for the purpose of future park development and purchasing rights as
outlined in the Town’s Open Space Plan. The balance at the end of 2018
was $832,626. This Reserve Fund was designated by Board Resolution
No. 170 of October 2, 1997. Interest earnings and additional funding for
the year both increased the Reserve Fund.
The General Part-Town Highway Fund equity includes reserve funds
established for the replacement of highway machinery. The balance at the
end of 2018 was $283,905. This Highway Equipment Reserve Fund was
designated by Board resolution No. 193 of November 8, 1984, and any
unexpended appropriation for machinery at year end is to be transferred to
the Reserve Fund. The Reserve Fund is also increased by interest earned
for the year.
The General Town-Wide Fund, the General-Part Town Fund, the General
Part-Town Highway Fund, the Water Fund, and the Sewer Fund equity
include funds established for fiscally managing annual economic increases
and decreases in employee fringe benefits (e.g. NYS Retirement Costs,
Health Insurance). The aggregate balance at the end of 2018 was
$350,392. This Reserve Fund was established at the June 13, 2005 Town
Board meeting under Board Resolution No. 084. The reserve is funded on
an annual basis as assessed by the Town Board. The reserve also is
increased by interest earned for the year. The balance by fund is as
follows:
General Town-Wide Fund $ 165,628
General Part-Town Fund 69,468
General Part-Town Highway Fund 79,412
Water Fund 23,838
Sewer Fund 12,046
$ 350,392
The General Town-Wide Fund equity includes reserve funds designated
for the maintenance of the Pine Tree Wildlife Preserve, donated to the
Town by a local family in 2013. In conjunction with the donation of the
land, the amount of $40,000 was donated to provide for future
maintenance of the preserve. As of December 31, 2018, the balance of the
reserve totaled $40,173.
In 2014, the Town purchased development rights to Indian Creek Farm
with financial assistance through a grant provided by New York State. The
grant included $10,000 to be held in reserve by the Town, designated for
future stewardship of Indian Creek Farmlands. The reserve is reflected in
the General Town-wide Fund and had a balance of $9,752 at December
31, 2018.
- 24 -
The Inlet Valley Cemetery Fund reserve includes funds provided for the
maintenance of the cemetery. The balance at the end of 2018 was $4,426
and was included within the General Town-Wide Fund.
T. Inter-fund Transfers
The operations of the Town give rise to certain transactions between funds,
including transfers to provide services and construct assets. The amounts reported
on the Statement of Revenues, Expenditures and Changes in Fund Balance-
Governmental Funds for inter-fund transfers have been eliminated for the
Statement of Activities. A detailed description of the individual fund transfers
that occurred during the year is provided subsequently in these Notes.
U.New Accounting Pronouncements
GASB Statement No. 75
In June 2015, the GASB issued Statement No. 75, “Accounting and Financial
Reporting for Postemployment Benefits Other Than Pensions”. The statement
replaces the requirements of GASB Statement No. 45, “Accounting and Financial
Reporting by Employers for Postemployment Benefits Other Than Pensions”.
Among other things, Statement 75 requires governments to report a liability on
the face of the financial statements for the OPEB that they provide and requires
governments in all types of OPEB plans to present more extensive note
disclosures and required supplementary information about their OPEB liabilities.
The Town adopted GASB Statement No. 75 for its 2018 financial statements (see
Note 9).
GASB Statement No. 85
In March 2017, the GASB issued Statement No. 85, “Omnibus 2017”. This
Statement’s objective is to address practice issues that have been identified during
implementation and application of certain GASB Statements. This Statement
addresses a variety of topics including issues related to blending component units,
goodwill, fair value measurement and application, and postemployment benefits
(pensions and other postemployment benefits \[OPEB\]). Specifically, this
Statement addresses the following topics:
Blending a component unit in circumstances in which the primary
government is a business-type activity that reports in a single column
for financial statement presentation.
Reporting amounts previously reported as goodwill and “negative”
goodwill.
Classifying real estate held by insurance entities.
Measuring certain money market investments and participating
interest-earning investment contracts at amortized cost.
Timing of the measurement of pension or OPEB liabilities and
expenditures recognized in financial statements prepared using the
current financial resources measurement focus.
Recognizing on-behalf payments for pensions or OPEB in employer
financial statements.
Presenting payroll-related measures in required supplementary
information for purposes of reporting by OPEB plans and employers
that provide OPEB.
Classifying employer-paid member contributions for OPEB.
Simplifying certain aspects of the alternative measurement method of
OPEB.
Accounting and financial reporting for OPEB provided through certain
multiple employer defined benefit OPEB plans.
- 25 -
The Town adopted GASB Statement No. 85 for its 2018 financial statements.
The adoption did not impact the Town’s financial statements.
GASB Statement No. 86
In May 2017, the GASB issued Statement No. 86, “Certain Debt Extinguishment
Issues”. This Statement’s primary objective is to improve consistency in
accounting and financial reporting for in-substance defeasance of debt by
providing guidance for transactions in which cash and other monetary assets
acquired with only existing resources—resources other than the proceeds of
refunding debt—are placed in an irrevocable trust for the sole purpose of
extinguishing debt. This Statement also improves accounting and financial
reporting for prepaid insurance on debt that is extinguished and notes to financial
statements for debt that is defeased in substance. The Town adopted GASB
Statement No. 86 for its 2018 financial statements. The adoption did not impact
the Town’s financial statements.
The GASB has issued the following new statements:
Statement No. 83, Certain Asset Retirement Obligations, which will be
effective for the year ending December 31, 2019.
Statement No. 84, Fiduciary Activities, which will be effective for the year
ending December 31, 2020.
Statement No. 87, Leases, which will be effective for the year ending
December 31, 2021.
Statement No. 88, Certain Disclosures Related to Debt, including Direct
Borrowings and Direct Placements, which will be effective for the year
ending December 31, 2019.
Statement No. 89, Accounting for Interest Cost Incurred before the End of
a Construction Period, which will be effective for the year ending
December 31, 2020.
Statement No. 90 Majority Equity Interests - an amendment of GASB
Statements No. 14 and No. 61 which will be effective for the year ending
December 31, 2020.
Statement No. 91 Conduit Debt Obligations, which will be effective for
the year ending December 31, 2021.
The Town is currently reviewing these statements and plans on adoption, as
required.
V.Non-Cash Capital and Related Financing Activities - Proprietary Funds
In 2018, the Water Fund acquired capital assets totaling $1,767,289 with the
proceeds of debt. Additionally, the Water Fund recorded debt and a receivable of
$1,669,500 related to the Town of Ithaca’s proportionate share of bond liabilities
related to the Southern Cayuga Intermunicipal Water Commission. This activity is
not reflected in the Statement of Cash Flows for Proprietary Funds.
NOTE 2 – EXPLANATION OF CERTAIN DIFFERENCES BETWEEN
GOVERNMENTAL FUND STATEMENTS AND GOVERNMENT-WIDE
STATEMENTS
Due to the differences in the measurement focus and basis of accounting used in the
governmental fund statements and the Government-wide statements, certain financial
transactions are treated differently. The differences result primarily from the
economic focus of the Statement of Activities, compared with the current financial
resources focus of the Governmental Funds.
- 26 -
A.Total Fund Balances of Governmental Funds vs. Net Position of Governmental
Activities:
Total fund balances of the Town’s governmental funds differ from “net position”
of governmental activities reported in the Statement of Net Position. This
difference primarily results from the additional long-term economic focus of the
Statement of Net Position versus the solely current financial resources focus of
the Governmental Fund Balance Sheet.
B. Explanation of Difference between Governmental Funds Operating Statement and
the Statement of Activities:
Differences between the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balance and the Statement of Activities fall
into one of three broad categories. The amounts shown below represent these
differences as follows:
Long-term revenue differences arise because Governmental Funds report
revenues only when they are considered “available,” whereas the Statement of
Activities reports revenues when earned. Differences in long-term expenses
arise because Governmental Funds report on a modified accrual basis,
whereas the accrual basis of accounting is used on the Statement of Activities.
Capital related differences include the difference between proceeds for the
sale of capital assets reported on Governmental Fund Statements and the gain
or loss on the sale of assets as reported on the Statement of Activities, and the
difference between recording an expenditure for the purchase of capital items
in the Governmental Fund Statements and depreciation expense on those
items as recorded in the Statement of Activities.
Long-term debt transaction differences occur because both interest and
principal payments are recorded as expenditures in the Governmental Fund
statements, whereas interest payments are recorded in the Statement of
Activities as incurred, and principal payments are recorded as a reduction of
liabilities in the Statement of Net Position.
The basic financial statements contain a detailed reconciliation of 1) the items
creating the differences between fund balance reported in the Governmental Fund
Statements and net position reported on the Statement of Net Position and 2) the
items creating the differences between the change in fund balance reported in the
Governmental Fund Statements and the change in net position reported in the
Statement of Activities.
NOTE 3 – CASH
The Town of Ithaca’s investment policies are governed by State statutes, as
previously described in these Notes. Deposits are valued at cost- or cost-plus
interest and are categorized as either:
1. Insured or collateralized with securities held by the entity or by its agent in the
entity’s name;
2. Collateralized with securities held by the pledging financial institution’s trust
department or agency in the entity’s name; or
3. Uncollateralized.
Total financial institution (bank) balances at December 31, 2018, per the bank,
were $19,738,643.
- 27 -
1 2 3
Governmental funds $ 13,729,005 $ - $ -
Enterprise funds $ 5,555,789 $ - $ -
Agency funds $ 453,849 $ - $ -
NOTE 4 – INTER-FUND ACTIVITY
Inter-fund receivables and payables at December 31, 2018, were as follows:
Inter-FundInter-Fund
Fund TypeReceivablesPayables
General town-wide-$ 49,413$
Highway 112,976 27,510
Water 11,578-
Sewer 24,475-
Capital projects- -
$ 112,976112,976$
Inter-fund revenues and expenditures at December 31, 2018, were as follows:
Inter-FundInter-Fund
Fund TypeRevenuesExpenditures
General town-wide593,200$ 310,058$
General part-town103 -
Highway 150,000 554,158
r 2,439,084-
Wate
Sewer 181,800-
Capital projects2,468,684 -
Risk retention15,000 -
Non-major -258,113
$ 3,485,1003,485,100$
- 28 -
NOTE 5 – CAPITAL ASSETS
Capital asset balances and activity for the year ended December 31, 2018, were as follows:
BeginningDisposals &Ending
BalanceAdditionsReclassificationsBalance
Governmental Funds
Dbqjubm!Bttfut!uibu!bsf
opu!Efqsfdjbufe;
Land599,780$ - $ -$ 599,780$
Construction in progress361,466 541,389 8,710 894,145
Upubm!Opo.Efqsfdjbcmf
Ijtupsjdbm!Dptu 541,389961,246 8,710 1,493,925
Dbqjubm!Bttfut!uibu!bsf!Efqsfdjbufe;
Buildings5,048,915 - - 5,048,915
Equipment and machinery5,727,959 496,129 166,824 6,057,264
Furniture and furnishings209,179 - - 209,179
Non-building improvements1,024,060 - - 1,024,060
Infrastructures5,855,464 191,322 - 6,046,786
Upubm!Efqsfdjbcmf!Ijtupsjdbm!Dptu 687,45117,865,577 166,824 18,386,204
Mftt!Bddvnvmbufe!Efqsfdjbujpo;
Buildings1,929,563 150,188 - 2,079,751
Equipment and machinery3,301,079 534,183 129,618 3,705,644
Furniture and furnishings202,934 2,549 - 205,483
Non-building improvements384,559 42,550 - 427,109
Infrastructures1,157,039 262,744 - 1,419,783
Upubm!Bddvnvmbufe!Efqsfdjbujpo 992,2146,975,174 129,618 7,837,770
Upubm!Ijtupsjdbm!Dptu-!net
$ 236,62611,851,649$ 45,916$ 12,042,359$
Depreciation was charged to governmental functions as follows:
General government support108,874$
Transportation623,398
Culture and recreation87,383
Home and community services172,559
Total Depreciation Expense992,214$
- 29 -
BeginningDisposals &Ending
BalanceAdditionsReclassificationsBalance
Enterprise Funds
Dbqjubm!Bttfut!uibu!bsf
opu!Efqsfdjbufe;
Construction in progress622,473$ 1,917,768$ 156,853$ 2,383,388$
Dbqjubm!Bttfut!uibu!bsf!Efqsfdjbufe;
Equipment and machinery963,477 175,830 - 1,139,307
Infrastructures17,416,911 394,273 - 17,811,184
Upubm!Efqsfdjbcmf!Ijtupsjdbm!Dptu 570,10318,380,388 - 18,950,491
Mftt!Bddvnvmbufe!Efqsfdjbujpo;
Equipment and machinery210,533 136,772 - 347,305
Infrastructures2,879,595 439,343 - 3,318,938
Upubm!Bddvnvmbufe!Efqsfdjbujpo 576,1153,090,128 - 3,666,243
Upubm!Ijtupsjdbm!Dptu-!net
$ 1,911,75615,912,733$ 156,853$ 17,667,636$
Depreciation was charged to enterprise funds as follows:
Sewer fund148,872$
Water fund427,243
Total Depreciation Expense576,115$
NOTE 6 – LIABILITIES
A. Pension Plans
Plan Description
The Town of Ithaca participates in the New York State and Local Employees’
Retirement System (ERS) 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.
- 30 -
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 for their first 10 years in the system, and employees
who joined on or after January 1, 2010 who generally contribute 3% percent of
their salary for their entire length of service. Under the authority of the
NYSRSSL, the Comptroller shall certify annually the rates expressed as
proportions of member payroll and employer contributions, used in computing the
contributions required to be made by employers to the pension accumulation fund.
Chapter 126 adds Article 19 "Benefits Enhancements" of the New York State and
Local Employees Retirement System. An Eligible Tier III or IV member with ten
or more years of membership or ten years credited service will not be required to
contribute to the Retirement System. Effective in 2000, the Town adopted
Section 41j of the Retirement System. This allows a retiring municipal employee
to add service credit by using accumulated sick time.
The Town of Ithaca is required to contribute at an actuarially determined rate.
The required contributions for the current year and four preceding years were:
ERS
2018489,081$
2017459,827$
2016513,481$
2015548,769$
2014570,512$
Town 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
Town’s total unpaid liability at the end of 2018 fiscal year was $0.
a.Southern Cayuga Lake Intermunicipal Water Commission Pension Plan
The Southern Cayuga Lake Intermunicipal Water Commission’s payroll is
prepared through the Town of Ithaca, resulting in the New York State and
Local Retirement Plan billings being a combination of the Town’s and the
Water Commission’s. The Water Commission is remitted along with the
Town’s share.
Pension Liabilities and Deferred Outflows and Inflows of Resources Related
to Pensions
At December 31, 2018, the Town reported the following liability for its
proportionate share of the net pension liability for the Systems. The net pension
liability was measured as of March 31, 2018. The total pension liability used to
calculate the net pension liability was determined by an actuarial valuation.
- 31 -
Measurement dateMarch 31, 2018
Net pension liability390,624$
Town’s portion of the Plan’s total net pension liability0.012103%
Change in proportionate share since prior measurement date0.001074%
At year end December 31, 2018, the Town recognized pension expenses of
$499,470. The Town reported deferred outflows of resources related to pensions
from the following sources:
Deferred
Outflows of
Resources
Differences between expected and actual experience139,324$
Changes of assumptions259,018
Net difference between projected and actual
investment earnings on pension plan investments567,353
Changes in proportion and differences between
employer contributions and proportionate share of
contributions108,724
Employer contributions subsequent to the measurement date489,081
Total1,563,500$
The Town reported deferred inflows of resources related to pensions from the
following sources:
Deferred
Inflows of
Resources
Differences between expected and actual experience115,132$
Changes of assumptions-
Net difference between projected and actual
investment earnings on pension plan investments1,119,898
Changes in proportion and differences between
employer contributions and proportionate share of
contributions20,752
Total1,255,782$
The Town’s contributions subsequent to the measurement date for the Plans
amounted to $489,081.
The Town’s contributions subsequent to the measurement date will be recognized
as a reduction of the net pension liability in the year ended December 31, 2018.
The Town’s balances of deferred outflows and inflows of resources related to
pension will be recognized in the pension expense as follows:
- 32 -
2018115,729$
201989,420
2020( 264,223)
2021( 122,291)
Total( 181,365)$
Actuarial Assumptions
The Town’s total pension liability as of the measurement date was determined by
using an actuarial valuation as of April 1, 2017, with updated procedures used to
roll forward the total pension liability to March 31, 2018. The actuarial
valuations used the following actuarial assumptions:
Actuarial cost methodEntry age normal
Inflation2.5%
Investment rate of return7.0%
Salary scale3.8%
Projected COLAs1.3%
Decrement tables04/01/10-03/31/15
System’s experience
Annuitant mortality rates are based on April 1, 2010 – March 31, 2015 System’s
experience with adjustments for mortality improvements based on the Society of
Actuaries Scale MP-2014.
The Town’s long-term rate of return on pension plan investments was determined
using a building block method in which best estimate ranges of expected future
real rates of return (expected returns net of investment expense and inflation) are
developed for each major asset class. These ranges are combined to produce the
long-term expected rate of return by weighting the expected future real rates of
return by each of the target asset allocation percentages and by adding expected
inflation. Best estimate of the arithmetic real rates of return for each major asset
class included in the target asset allocation at the valuation date of March 31,
2018 are as follows:
Long-Term
Expected Real
Asset ClassTarget AllocationRate of Return
Domestic equity36%4.55%
International equity14%6.35%
Private equity10%7.50%
Real estate10%5.55%
Absolute return strategies2%3.75%
Opportunistic portfolio3%5.68%
Real assets3%5.29%
Bonds and mortgages17%1.31%
Cash1%-0.25%
Inflation-indexed bonds4%1.25%
100%
- 33 -
Discount rate
The Discount rate used to calculate the total pension liability was 7.0%. The
projection of cash flows used to determine the discount rate assumes that the
contributions from plan members will be made at the current contributions rates
and that contributions from employers will be made at statutorily required rates,
actuarially determined. Based upon the assumptions, the System’s fiduciary net
position was projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long term expected rate of
return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
Sensitivity of the Proportionate Share of the Net Pension Liability to the
Discount Rate Assumption
The following tables present the Town’s proportionate share of the net pension
liability/(asset) calculated using the discount rate of 7.0%, as well as what the
Town’s proportionate share of the net pension liability would be if it were
calculated using a discount rate that is one percentage point lower (6.0%) or one
percentage point higher (8.0%) that the current rate:
Current
1% Decrease Assumption1% Increase
(6.0%)(7.0%)(8.0%)
Town’s proportionate share
of the net pension (asset)/liability2,955,581$ 390,624$ ( 1,779,224)$
Pension Plan Fiduciary Net Position
The components of the current-year net pension liabilities of the employers as of
March 31, 2018 were as follows:
Employers’ total pension liability$( 183,400,590,000)
Fiduciary net position180,173,145,000
Employers’ net pension liability$( 3,227,445,000)
Ratio of Plan net position to the
employers’ total pension asset/(liability)98.24%
B. Short-Term Debt
Liabilities for bond anticipation notes (BANs) are generally accounted for in the
Capital Projects Fund. The notes or renewal thereof may not extend more than
five years beyond the original date of issue unless a portion is redeemed within
five years and within each 12-month period thereafter. For short-term financing,
the Town of Ithaca redeems (pays down) one-fifth (1/5) of the original BAN
borrowing.
State law requires that BANs issued for capital purposes be converted to long-
term obligations within five years after the original issue date. However, BANs
issued for assessable improvement projects may be renewed for period’s
equivalent to the maximum life of the permanent financing, provided that
stipulated annual reductions of principal are made.
- 34 -
As of December 31, 2018, temporary financing in outstanding bond anticipation
notes totaled $0.
C. Long-Term Debt
Bonds: The Town 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.
At December 31, 2018, the total principal indebtedness outstanding of the Town
of Ithaca aggregated $15,541,500. Of this amount, $2,923,589 was subject to the
Town’s constitutional debt limit and represented 3.02% of the Town’s debt limit.
Further calculations disclosed that the Town of Ithaca meets the 7% indebtedness
requirement and has not exhausted its borrowing and repayment abilities.
The following is a summary of the Town of Ithaca’s outstanding serial bonds for
the year ended December 31, 2018:
Original
DateOriginalInterestMaturityOutstanding
Descriptionof IssueAmountRateDate12/31/2018
Hfofsbm!Upxoxjef!Gvoe
2011 Public Improvement9/1/11300,000$ 2.50%9/1/2190,000$
2013 Public Improvement8/1/13790,000 2.25%8/1/23448,000
Xbufs!Gvoe
2004 Public Improvement2/12/041,000,000 3.88%2/12/1967,000
2009 Public Improvement10/1/091,125,000 3.00%10/1/24510,000
2011 Public Improvement9/1/112,000,000 2.50%9/1/311,480,000
2013 Public Improvement8/1/131,420,000 2.25%8/1/23945,000
2014 Public Improvement12/30/14950,000 2.00%12/15/291,577,000
2014 Refunding Bond12/30/14910,000 2.00%5/15/24580,000
2015 Public Improvement11/13/152,150,000 2.00%10/15/301,774,000
2018 Public Improvement12/6/184,150,000 2.99%12/1/334,150,000
SCLIWC serial bondsvarious3,763,000 variousvarious1,669,500
Ijhixbz!Gvoe
2011 Public Improvement9/1/11350,000 2.50%9/1/21105,000
2013 Public Improvement8/1/131,240,000 2.25%8/1/23782,000
2014 Public Improvement12/30/14950,000 2.25%12/15/29703,000
2015 Public Improvement11/13/15800,000$ 2.00%10/15/30661,000
Total Serial Bonds Payable15,541,500$
Interest on long-term debt paid during the year was:
Interest paid288,643$
Add interest accrued - current year75,520
Less interest accrued - prior year( 72,445)
$291,718
- 35 -
Interest expense has been allocated to the following governmental functions:
General8,821$
Transportation76,829
$85,650
Interest expense has been allocated to the following enterprise funds:
Water fund206,068$
Long-term liability balances and activity for the year are summarized below:
BeginningEnding
Governmental FundsBalanceAdditionsReductionsBalance
Serial bonds3,221,930$ -$ ( 298,341)$ 2,923,589$
Total serial bonds and3,221,930$ -$ ( 298,341)$ 2,923,589$
Other liabilities:
Compensated absences154,776$ 10,823$ -$ 165,599$
Net pension liability953,622 - ( 588,485) 365,137
Other post-employment benefits, as restated 745,3176,318,344 - 7,063,661
Total long-term liabilities10,648,672$ 756,140$ ( 886,826)$ 10,517,986$
BeginningEnding
Enterprise FundsBalanceAdditionsReductionsBalance
Serial bonds7,547,070$ 4,150,000$ ( 748,659)$ 10,948,411$
SCLIWC serial bonds2,053,750 - ( 384,250) 1,669,500
Total serial bonds and
bond anticipation notes9,600,820$ 4,150,000$ ( 1,132,909)$ 12,617,911$
Other liabilities:
Compensated absences17,799$ 2,655$ -$ 20,454$
Net pension liability82,703 - ( 57,216) 25,487
Other post-employment benefits, as restated 92,026726,609 - 818,635
Total long-term liabilities10,427,931$ 4,244,681$ ( 1,190,125)$ 13,482,487$
Activity for compensated absences is shown at net due to the impracticability of
determining these amounts separately. Payments of compensated absences are
dependent upon future factors and, therefore, the timing of such payments cannot
be determined. Compensated absences are reflected as a long-term liability in the
Statement of Net Position.
- 36 -
The following is a summary of the maturity of total long-term indebtedness
(excluding SCLIWC bonds):
Serial BondsYearPrincipalInterest Total
20191,302,000$ 382,930$ 1,684,930$
20201,250,000 354,126 1,604,126
20211,275,000 323,399 1,598,399
20221,230,000 287,150 1,517,150
20231,260,000 254,428 1,514,428
2024-20284,870,000 819,073 5,689,073
2029-20332,685,000 198,141 2,883,141
Total Serial Bonds13,872,000$ 2,619,247$ 16,491,247$
There was no long-term debt that has been authorized and unissued at December 31,2018.
NOTE 7 – DEBT: SOUTHERN CAYUGA LAKE INTERMUNICIPAL WATER
COMMISSION (SCLIWC)
Per agreement, the Town of Ithaca is a joint obligor of debt used to fund the capital
activities of the Southern Cayuga Lake Intermunicipal Water Commission
(SCLIWC). The Town has recorded a liability for bonds payable in the Water Fund of
$1,669,500 representing the Town’s approximate 53% share of the total outstanding
serial bond debt associated with SCLIWC as of December 31, 2018. Historically, and
consistent with the cooperative agreement of the SCLIWC participating
municipalities, the repayment of SCLIWC debt and related interest has been funded
through user fees charged by the Water Commission. Accordingly, the Water Fund
reflects a receivable (due from other governments) of $1,669,500 at December 31,
2018 which reflects the anticipated debt principal payments to be made by SCLIWC.
The following reflects information related to the total serial bond debt for SCLIWC at
December 31, 2018:
Date OriginalDate ofOutstanding
Descriptionof IssueAmountI/RFinal Maturity12/31/2018
Joint Water
Improvement 410/5/20122,600,000 2% - 3%9/5/20321,940,000$
Joint Water
Improvement 56/12/20131,500,000 3%-3.25%6/1/20331,210,000
Total Serial Bonds$3,150,000
- 37 -
The following is a summary of the maturity of total long-term indebtedness for
SCLIWC debt:
YearPrincipalInterestTotal
Serial Bonds2019185,000$ 85,688$ 270,688$
2020190,000 81,288 271,288
2021190,000 76,788 266,788
2022195,000 72,288 267,288
2023205,000 67,456 272,456
2024-20332,185,000 340,913 2,525,913
Total Serial Bonds3,150,000$ 724,421$ 3,874,421$
NOTE 8 – UNRESTRICTED BALANCES
Of the $8,670,738 in unrestricted net position, $1,321,222 has been appropriated by
the Town for 2019 expenditures.
NOTE 9 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
Plan Description - The Town of Ithaca administers a single-employer defined benefit
healthcare plan (“the Retiree Health Plan”). The plan provides lifetime healthcare
insurance for eligible retirees and their spouses through the Town’s group health
insurance plan, which covers both active and retired members. The Town pays a
portion of retiree’s premiums for healthcare insurance based on the number of years
of service to the Town at the time of retirement.
In addition, retiring employees can convert unused sick time to offset portions of
healthcare premiums that are the retiree’s responsibility. The Town tracks the
accumulated balances and makes premium payments on behalf of the retirees until the
balances are exhausted.
The Retiree Health Plan does not issue a publicly available financial report.
Employees Covered by Benefit Terms
At December 31, 2018 the following employees were covered by the benefit terms:
Inactive employees and beneficiaries11
Active employees55
Total66
- 38 -
Funding Policy
The Town contributes a portion of the retiree’s healthcare premium according to the
following schedule. For employees whose most recent date of hire is prior to 1/1/2015,
the following percentages apply:
Years ofTown
ServiceContribution
30 and over75.0%
25-29 50.0%
15-2435.0%
5-1420.0%
less than 50.0%
For employees who were hired on or after 1/1/2015, the following percentages apply:
Years ofTown
ServiceContribution
30 and over50.0%
25-29 35.0%
10-2420.0%
less than 100.0%
The OPEB Liability
The Town’s total OPEB Liability of $7,882,296 was measured as of January 1, 2018
and was determined by an actuarial valuation as of January 1, 2018.
Actuarial Methods and Assumptions
The actuarial valuation used the following actuarial assumptions:
Entry Age Normal
Actuarial cost method
Salary increase3.5%
Discount rate3.44%
Rate of inflation2.4%
Premium trend 5% for 2019, 6.5% in 2020, with subsequent
The discount rate used was Bond Buyer Weekly 20-Bond index.
Mortality rates were based on the sex-distinct RPH-2014 Mortality Tables for
employees and healthy annuitants, adjusted backward to 2006 with scale MP-2014, and
then adjusted for mortality improvements with scale MP-2017 mortality improvement
scale on a fully generational basis. This assumption was based on a review of published
mortality tables and the demographics of the Plan.
- 39 -
Changes in the total OPEB Liability
Service cost230,892$
Interest273,690
Changes of benefit terms-
Differences between expected and actual experience-
Changes of assumptions or other inputs403,479
Benefit payments( 70,717)
Net change in total OPEB Liability837,344
r7,044,952
Total OPEB Liability - Beginning of yea
y - End of year7,882,296$
Total OPEB Liabilit
Changes of assumptions and other inputs reflect the effects of changes in the discount
rate each period. The discount rate in effect at the current measurement date is 3.44%.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the Commission, as well as what the
total OPEB liability would be if it were calculated using a discount rate that is 1
percentage point lower (2.44%) or 1 percentage point higher (4.44%) than the current
discount rate:
1% Decrease Current 1% Increase
(2.44%)(3.44%)(4.44%)
Total OPEB Liability9,249,368$ 7,882,297$ 6,770,936$
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend
Rates
The following presents the total OPEB liability of the Commission, as well as what the
Commission’s total OPEB liability would be if it were calculated using healthcare cost
trend rates that are 1 percentage point lower (5.5-2.94%) or 1 percentage point higher
(7.5-4.94%) than the current healthcare cost trend rate:
Current Trend
1% Decrease Rates1% Increase
Total OPEB Liability6,596,686$ 7,882,297$ 9,515,042$
- 40 -
OPEB Expense and Deferred Outflows of Resources Related to OPEB
For the year ended December 31, 2018, the Town recognized OPEB expense of
$561,651. At December 31, 2018, the Town reported deferred outflows of resources
related to OPEB from the following sources:
Deferred Outflows of
Resources
Differences between expected and actual experience-$
Changes of assumptions or other inputs346,430
Contributions made after measurement date
(including implicit subsidy)73,511
$419,941
The Commission’s balances of deferred outflows resources related to pension will be
recognized in OPEB expense as follows:
201957,069$
202057,069
202157,069
202257,069
Thereafter118,134
$346,410
NOTE 10 – POLLUTION REMEDIATION CONTINGENT OBLIGATION
In 2009, a site commonly known as the Ithaca Area Wastewater Treatment Plant
(IAWTP), which is jointly owned and operated by the City of Ithaca and the Towns
of Ithaca and Dryden, was listed as a site under CERCLA for hydrocarbon
contamination (coal-tar). The City of Ithaca was sued by First Energy (parent
company of New York State Electric & Gas) for $750,000 in remediation costs. The
Town of Ithaca and Dryden voluntarily joined in defense of this lawsuit. In 2010 an
out-of-court settlement was reached in the amount of $284,249, of which the Town of
Ithaca is liable for $80,000, payable over a ten-year period. At December 31, 2018,
the remaining liability totaled $16,000.
- 41 -
NOTE 11 – TAX ABATEMENTS
Town of Ithaca negotiates property tax abatement agreements on an individual basis.
The Town of Ithaca has tax abatement agreements with five entities as of December
31, 2018:
Percentage of
Amount of Total Amount of Taxes Taxes Abated
Taxes due duringAbated during during the Fiscal
the Fiscal Yearthe Fiscal YearYear
Purpose
Acquire, construct and equip a new
residential campus for student housing.219,618$ 87,715$ 40%
Purchase of housing development fund
company and continuation to conform
to requirements for low income housing.23,083 862 4%
Acquiring title to acres of vacant land and
maintain and operate solely as a housing
project for persons of low income.16,818 526 3%
Construction of new brewing facility,
welcome center and brew pub.26,381 11,727 44%
Each agreement was negotiated under the Real Property Tax Law of the State of New
York allowing localities to abate property taxes for a variety of purposes, including
acquiring and constructing a new residential campus for student housing, maintaining
and operating housing for persons of low income, construction of a new brewing
facility, and maintaining and operating a facility to benefit the citizens of Tompkins
County, New York. The taxes were originally based on the assessed value of the
property and through PILOT Agreements have been reduced to an agreed upon value
for the given year. If each individual agreement is met based on the conditions set,
taxes will continue to be abated each year.
The Town of Ithaca has not made any commitments as part of the agreements other
than to reduce taxes. The Town of Ithaca is not subject to any tax abatement
agreements entered by other governmental agencies. The Town of Ithaca has chosen
to disclose information about its tax abatement agreements individually. There was
no established quantitative threshold of the total dollar amount of taxes abated during
the year.
- 42 -
NOTE 12 – ADOPTION OF NEW ACCOUNTING STANDARD
For the fiscal year ended December 31, 2018 the Town adopted GASB Statement No.
75Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions. The implementation of the Statement No. 75 resulted in adjustments to the
beginning OPEB liability, deferred outflows, accrued liabilities, and net position, as
follows:
Government-Wide
After
As originally Adoption of
presentedGASB 75
OPEB liability5,357,091$ 6,318,344$
Accrued liabilities526,110515,668
Long-term liabilities516,612 16,604
Deferred outflows of resources - OPEB- 63,423
Net position11,298,793 10,911,412
Water Fund
After
As originally Adoption of
presentedGASB 75
OPEB liability370,663$ 437,163$
Deferred outflows of resources - OPEB- 4,388
Net position8,067,197 8,005,085
Sewer Fund
After
As originally Adoption of
presentedGASB 75
OPEB liability245,394$ 289,446$
Deferred outflows of resources - OPEB- 2,907
Net position5,408,416 5,367,270
NOTE 13 – SUBSEQUENT EVENTS
Subsequent events were evaluated through October 18, 2019, which is the date the
financial statements were available to be issued.
- 43 -
TOWN OF ITHACA
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS
December 31, 2018
2018
Service cost230,892$
Interest273,690
Changes of benefit terms-
Differences between expected and actual experience-
Changes of assumptions or other inputs403,479
Benefit payments( 70,717)
Net change in total OPEB Liability837,344
Total OPEB Liability - Beginning of year7,044,952
Total OPEB Liability - End of year7,882,296$
Covered payroll over measurement period3,358,129
Total OPEB liability as a percentage of covered payroll235%
Notes to schedule:
Changes of Assumptions. Changes of assumptions and other inputs reflect the effects of
changes in the discount rate each period. The discount rate in effect at the current measurement
date is 3.44%.
See independent auditor’s report.
- 44 -
TOWN OF ITHACA
SCHEDULE OF REVENUES AND EXPENDITURES
COMPARED TO BUDGET
MAJOR FUNDS
For the Year Ended December 31, 2018
GENERALHIGHWAY
Original Original
BudgetActualBudgetActual
Sfwfovft;
Real property taxes2,750,000$ 2,750,189$ 2,200,000$ 2,200,000$
Real property tax items58,000 58,929- 10,579
Nonproperty tax items1,468,000 1,645,2961,650,000 1,800,000
Departmental income223,100 335,952- -
Intergovernmental charges99,631 101,34210,000 22,111
Interest income6,500 10,9682,500 5,493
Rental income30,350 29,151- -
Licenses and permits12,500 23,488- -
Fines and forfeitures280,000 219,329- -
Sale of property and compensation for loss- 5,61425,000 46,216
Local sources111,000 145,956 - 19,058
State and federal sources471,650 400,30295,000 132,646
Upubm!Sfwfovft
5,726,5165,510,731 3,982,500 4,236,103
Puifs!Tpvsdft;
Interfund transfers608,200 608,303- 150,000
Proceeds of obligations- - - -
Appropriated fund balance793,906 - 280,998 -
Upubm!Sfwfovft!boe!Puifs!Tpvsdft! 6,334,8196,912,837 4,263,498 4,386,103
Fyqfoejuvsft;
General governmental support1,914,087 1,637,81378,545 75,825
Public safety92,884 71,284- -
Transportation512,360 439,5623,217,170 2,591,439
Culture and recreation1,154,876 1,055,573- -
Home and community services1,454,550 1,114,681- -
Employee benefits1,474,125 1,292,072 563,625 518,738
Upubm!Fyqfoejuvsft
5,610,9856,602,882 3,859,340 3,186,002
Puifs!Vtft;
Interfund transfers309,955 310,058404,158 554,158
Upubm!Fyqfoejuvsft!boe!Puifs!Vtft! 5,921,0436,912,837 4,263,498 3,740,160
Fydftt!pg!Sfwfovft!
pwfs!Fyqfoejuvsft 413,776- - 645,943
Gvoe!Cbmbodf- beginning of year
5,221,4755,221,475 2,267,511 2,267,511
Gvoe!Cbmbodf- end of year
$ 5,635,2514,427,569$ 1,986,513$ 2,913,454$
See independent auditor’s report.
FIRE
Original
BudgetActual
$ 3,250,0003,250,000$
- -
- -
- -
- -
7,0744,000
- -
- -
- -
- -
- -
23,45620,000
3,280,5303,274,000
- -
- -
- 108,500
3,280,5303,382,500
1,9505,000
3,347,0563,377,500
- -
- -
- -
- -
3,349,0063,382,500
- -
3,349,0063,382,500
( 68,476)-
2,078,8282,078,828
$ 2,010,3521,970,328$
- 45 -
TOWN OF ITHACA
SCHEDULE OF THE TOWN’S PROPORTIONATE SHARE OF THE NET PENSION
LIABILITY
20182017
Proportion of the net pension liability (asset) 0.012%0.011%
Proportionate share of the net pension liability (asset) 390,624$ 1,036,325$
Covered-employee payroll 3,773,421$ 3,444,677$
Proportionate share of the net pension liability (asset)
as a percentage of its covered-employee payroll 10.35%30.08%
Plan fiduciary net position as a percentage of the total pension liability (asset)98.2%94.7%
See independent auditor’s report.
20162015
0.011%0.015%
$ 387,1221,834,200$
$ 3,310,6643,256,757$
56.32%11.69%
90.7%97.9%
See independent auditor’s report.
- 46 -
TOWN OF ITHACA
SCHEDULE OF THE TOWN’S PENSION CONTRIBUTIONS
20182017
Contractually required contribution489,081$ 459,827$
Contributions in relation to the contractually required contribution 489,081 459,827
Contribution deficiency (excess) -$ -$
Covered-employee payroll 4,000,148$ 3,670,571$
Contributions as a percentage of covered-employee payroll12.23%12.53%
See independent auditor’s report.
20162015
$ 548,770513,481$
548,770513,481
$ --$
$ 3,381,9713,397,458$
15.11%16.23%
See independent auditor’s report.
- 47 -
TOWN OF ITHACA
CAPITAL PROJECTS FUND
DETAILED BALANCE SHEET
December 31, 2018
ASSETS
Active Projects
Sand BankParkChristopher
State RouteGatewayRoadLaneCircle
96B SidewalkTrailReconstr.Water MainWater Main
Bttfut;
Cash in savings120,820$ 72,502$ 360,866$ 37,398$ 6,395$
Due from other gov't60,765 126 - - -
72,628181,585 360,866 37,398 6,395
Upubm!Bttfut$ 72,628181,585$ 360,866$ 37,398$ 6,395$
LIABILITIES AND FUND BALANCE
Mjbcjmjujft;
Accruedliabilities1,136$ -$ -$ 1,445$ 1,070$
Due to other funds- - - - -
Retainage- - - 8,361 -
Upubm!Mjbcjmjujft - 1,136 - 9,806 1,070
Gvoe!Cbmbodf;
Committed fund balance 180,449 72,628 360,866 27,592 5,325
Unassigned fund balance- - - - -
Upubm!Gvoe!Cbmbodf 72,628 180,449 360,866 27,592 5,325
Upubm!Mjbcjmjujft!
boe!Gvoe!Frvjuz$ 72,628181,585$ 360,866$ 37,398$ 6,395$
See independent auditor’s report.
Active ProjectsClosed Projects
SapsuckerTrumansburgEllis Hollow
rWaterWater
Wate
MainTankTankTotal
$ 7,9829,082$ 427,359$ -$ -$ 1,042,404$
-- - 60,891
7,9829,082 427,359 - - 1,103,295
$ 7,9829,082$ 427,359$ -$ -$ 1,103,295$
$ 2,055$ 6,226$ -$ -$ 13,287$
1,355
-- 81,771 - - 81,771
- - - - - 8,361
2,055 1,355 87,997 - - 103,419
5,9277,727 339,362 - - 999,876
-- - - - -
5,9277,727 339,362 - - 999,876
$ 7,9829,082$ 427,359$ -$ -$ 1,103,295$
- 48 -
TOWN OF ITHACA
CAPITAL PROJECTS FUND
DETAILED REVENUES AND EXPENDITURES
For the Year Ended December 31, 2018
Active Projects
Sand BankParkChristopher
State RouteGatewayRoadLaneCircle
96B SidewalkTrailReconstructionWater MainWater Main
Sfwfovf;
Interest earnings136$ 81$ 404$ 17$ 6$
Interfund transfers100,000 - - 493,195 367,718
State and federal grants60,765 - - - -
Upubm!Sfwfovf$ 81160,901$ 404$ 493,212$ 367,724$
Fyqfoejuvsft;
Design75,957$ -$ -$ -$ -$
Upubm!Fyqfoejuvsft$ - 75,957$ - $ - $ -$
*The active projects Park Lane, Christopher Circle, Sapsucker, Trumansburg, and Ellis Hollow
were included on a 2018 public improvement (serial) bond of $4,150,000. Each project was
associated with the water fund and thus moved via interfund tranfers to the water fund. Each
project's applicable % of interfund transfer is the current year % bonded for each project
less expenditures.
See independent auditor’s report.
Active ProjectsClosed Projects
SapsuckerTrumansburgEllis HollowTotal for
WaterWaterWaterall Closed
MainTankTankProjectsTotal
$ 99$ 147$ -$ 809$
704,704463,852 339,215 - 2,468,684*
- - - - 60,765
$ 704,713463,861$ 339,362$ -$ 2,530,258$
$ --$ - -$ 75,957$
$ - -$ -$ -$ 75,957$
- 49 -
TOWN OF ITHACA
INDEPENDENT AUDITOR’S REPORT ON
INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
YEAR ENDED DECEMBER 31, 2018
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Supervisor and Town Board
Town of Ithaca
Ithaca, New York 14850
We have audited, in accordance with the 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, the financial statements of the
governmental activities, the business-type activities, each major fund, and the aggregate remaining
fund information of the Town of Ithaca, as of and for the year ended December 31, 2018, and the
related notes to the financial statements, which collectively comprise the Town’s basic financial
statements, and have issued our report thereon dated October 18, 2019.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Town of
Ithaca’s internal control over financial reporting to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Town of
Ithaca's internal control. Accordingly, we do not express an opinion on the effectiveness of the
Town of Ithaca’s internal control.
Adeficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control such that there is a reasonable
possibility that a material misstatement of the Town’s financial statements will not be prevented
or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
521!Fbtu!Vqmboe!Spbe
Juibdb-!Ofx!Zpsl!!25961
xxx/txdmmq/dpn
718.383.6661!0!718.384.7468!)Gby*
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town of Ithaca’s financial statements
are free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements, 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 or
other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity’s internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Town's
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Sciarabba Walker & Co., LLP
Ithaca, New York
October 18, 2019
-52 -