HomeMy WebLinkAbout2021 Town of Ithaca Audit Report
TOWN OF ITHACA, NEW YORK
Basic Financial Statements
Supplementary Information and
Independent Auditors’ Report
December 31, 2021
TOWN OF ITHACA, NEW YORK
Table of Contents
Page
Independent Auditors’ Report 1 - 3
Management’s Discussion and Analysis 4 - 12
Financial Statements
Statement of Net Position 13
Statement of Activities 14
Balance Sheet - Governmental Funds 15
Reconciliation of the Balance Sheet - Governmental Funds to the
Statement of Net Position 16
Statement of Revenue, Expenditures and Changes in Fund Balances -
Governmental Funds 17
Reconciliation of the Statement of Revenue, Expenditures and Changes
in Fund Balances - Governmental Funds to the Statement of
Activities 18
Statement of Net Position - Proprietary Funds 19
Statement of Revenue, Expenses and Changes in Fund Net Position -
Proprietary Funds 20
Statement of Cash Flows - Proprietary Funds 21 - 22
Statement of Fiduciary Net Position - Fiduciary Funds 23
Statement of Changes in Fiduciary Net Position - Fiduciary Funds 24
Notes to Financial Statements 25 - 52
TOWN OF ITHACA, NEW YORK
Table of Contents
Page
Required Supplementary Information:
Schedule of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual - General Fund 53
Schedule of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual - Highway Fund 54
Schedule of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual - Fire Protection 55
Schedule of Changes in the Town’s Total OPEB Liability and Related Ratios 56
Schedule of the Town’s Proportionate Share of the Net Pension Liability 57
Schedule of the Town’s Pension Contributions 58
Other Supplementary Information:
Combining Balance Sheet - Nonmajor Governmental Funds 59
Combining Statement of Revenue, Expenditures and Changes in Fund
Balances - Nonmajor Governmental Funds 60
Independent Auditors’ Report on Internal Control Over Financing
Reporting and on Compliance and Other Matters Based on an Audit
of Financial Statements Performed in Accordance with Government
Auditing Standards 61 - 62
* * * * * *
INDEPENDENT AUDITORS’ REPORT
Town Board and Supervisor
Town of Ithaca, New York:
Report on the Audit of the Financial Statements
Opinions
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,
New York (the Town), as of and for the year ended December 31, 2021, and the related notes to
financial statements, which collectively comprise the Town’s basic financial statements as listed in
the table of contents.
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, as of December 31, 2021, 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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities
under those standards are further described in the Auditors’ Responsibilities for the Audit of the
Financial Statements section of our report. We are required to be independent of the Town and to
meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating
to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinions.
Other Matters
As described in note 11 to the financial statements, restatements of the prior period was made during
the year ended December 31, 2021. Our opinions are not modified with respect to these matters.
2
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently
known information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors ’ report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The risk
of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood
that, individually or in the aggregate, they would influence the judgment made by a reasonable user
based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit.
•Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
•Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Town’s internal control. Accordingly, no such opinion is
expressed.
•Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
•Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Town’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control-
related matters that we identified during the audit.
3
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and additional information as listed in the table of contents on
pages 53 through 58 be presented to supplement the basic financial statements. Such information is
the responsibility of management and, although not a part of the basic financial statements, is required
by the Governmental Accounting Standards Board who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with GAAS, which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town’s basic financial statements. The accompanying combining nonmajor
fund financial statements are presented for purposes of additional analysis and are not a required part
of the basic financial statements. Such information is the responsibility of management and was
derived from and relates directly to the underlying accounting and other records used to prepare the
basic financial statements. The information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare
the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with GAAS. In our opinion, the combining nonmajor fund financial
statements are 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 May 24,
2022 on our consideration of the Town’s internal control over financial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion
on the effectiveness of the Town’s internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering Town’s internal control over financial reporting and compliance.
Williamsville, New York
May 24, 2022
4
TOWN OF ITHACA, NEW YORK
Management’s Discussion and Analysis
December 31, 2021
The following is a discussion and analysis of the Town of Ithaca, New York’s (the Town) financial
performance for the year ended December 31, 2021. The Town’s 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 issues or concerns.
This 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 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.
FINANCIAL HIGHLIGHTS
•The Town’s governmental and business-type net position, as reflected in the statement of
activities, increased by $1,061,319 and $1,564,440, respectively.
•The Town’s governmental fund balance increased by $789,471.
•The general fund’s (the primary operating fund) fund balance increased by $2,375,992.
•December 31, 2020 fund balance was restated by $698,792 to reflect a correction of an error for
overstating accrued liabilities.
•December 31, 2020 fiduciary net position was restated by $41,598 to reflect a correction of an
error for overstating accounts payable.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of three parts: Management’s Discussion and Analysis (this section), the
basic financial statements, and 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.
•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.
5
TOWN OF ITHACA, NEW YORK
Management’s Discussion and Analysis, Continued
•The governmental 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. Real
property taxes finance most of these activities.
•The proprietary funds provide the same type of information as the government-wide financial
statements. The proprietary funds are those that the Town charges customers to provide. These
include the sewer and water services offered by the Town.
•Fiduciary funds statements 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 the information in the statements and provide
more detailed data. The financial 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 FINANCIAL 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, deferred outflows of resources, liabilities, and deferred inflows of resources.
All of the current year’s revenue 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, deferred outflows of resources, liabilities, and
deferred inflows of resources, 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. 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 infrastructure.
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). Real property taxes finance most of these activities. Business-type activities are reported
separately as they recover most of their expenses through charges to custo mers for the services
provided.
6
TOWN OF ITHACA, NEW YORK
Management’s Discussion and Analysis, Continued
FUND FINANCIAL STATEMENTS
The fund financial statements provide more detailed information about the Town’s funds, focusing
on its most significant, or major funds, opposed to 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 New York 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 debt, or to show that it is
properly using certain revenue. 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
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 have been added to explain the relationship
between the governmental funds’ statements and the government-wide statements.
•Proprietary Funds - Consist of the sewer and water funds, those funds for which the Town
provides services and then charges customers for providing the service. The proprietary
statements include all assets, deferred outflows of resources, liabilities, and deferred inflows of
resources, both short-term and long-term, including debt and capital assets. Accrual accounting
is used, and focus is on economic resources.
•Fiduciary Funds - The Town acts in an agency capacity for assets that are ultimately transferred
to others. The Town excludes these activities from the government-wide financial statements
because it cannot use these assets to finance its operations.
7
TOWN OF ITHACA, NEW YORK
Management’s Discussion and Analysis, Continued
FINANCIAL ANALYSIS OF THE TOWN AS A WHOLE
•The Town’s combined net position increased by $2,625,759.
•Current assets decreased by $1,347,700 while current liabilities decreased by $636,313.
•Capital assets increased by $1,314,975.
•Long-term serial bond debt decreased by $2,660,001 due to principal payments.
•Unrestricted net position decreased by $892,063.
Figures A-1 and A-2 present condensed information derived from the Town’s government-wide
statements.
Figure A-1
2021 2020 Change 2021 2020 Change
Assets:
Current assets 17,522,152$ 16,110,280 1,411,872 6,248,048 9,007,620 (2,759,572)
Noncurrent assets 15,235,478 15,054,568 180,910 20,785,020 19,650,955 1,134,065
Total assets 32,757,630 31,164,848 1,592,782 27,033,068 28,658,575 (1,625,507)
Deferred outflows of resources 5,026,912 3,971,336 1,055,576 425,892 399,246 26,646
Liabilities:
Current liabilities 2,135,522 1,464,046 671,476 1,499,610 2,807,399 (1,307,789)
Noncurrent liabilities 12,794,570 15,033,325 (2,238,755) 9,973,107 12,082,030 (2,108,923)
Total liabilities 14,930,092 16,497,371 (1,567,279) 11,472,717 14,889,429 (3,416,712)
Deferred inflows of resources 4,065,255 910,937 3,154,318 375,638 122,227 253,411
Net position:
Net investment in capital assets 12,839,441 11,753,323 1,086,118 10,642,261 8,457,199 2,185,062
Restricted 1,675,304 1,440,917 234,387 12,255 - 12,255
Unrestricted 4,274,450 4,533,636 (259,186) 4,956,089 5,588,966 (632,877)
Total net position 18,789,195$ 17,727,876 1,061,319 15,610,605 14,046,165 1,564,440
Governmental Activities Business-type Activities
8
TOWN OF ITHACA, NEW YORK
Management’s Discussion and Analysis, Continued
Figure A-3 shows the sources of revenue for 2021.
Figure A-3
Sources of Revenue for 2021
Property taxes
45%Non-property taxes
17%
Charges for
services
29%Grants
4%
Other
5%
Figure A-2
2021 2020 Change 2021 2020 Change
Program revenue:
Charges for services 569,136$ 332,410 236,726 6,336,674 5,925,013 411,661
Operating grants and contributions 705,958 246,792 459,166 - - -
Capital grants and contributions 256,694 1,336,940 (1,080,246) - - -
General revenue:
Property taxes and property
tax items 8,777,842 8,614,882 162,960 1,968,874 1,825,948 142,926
Non-property taxes 4,040,761 3,342,900 697,861 - - -
Unrestricted state aid - 325,935 (325,935) - - -
Use of money and property 193,504 167,176 26,328 16,506 42,712 (26,206)
Other general revenue 113,612 496,367 (382,755) 992,696 25,255 967,441
Total revenue 14,657,507 14,863,402 (205,895) 9,314,750 7,818,928 1,495,822
Program expenses:
General government support 2,956,118 3,058,931 (102,813) - - -
Public safety 3,607,153 3,870,309 (263,156) - - -
Health 28,708 - 28,708 - - -
Transportation 4,039,217 3,426,623 612,594 - - -
Culture and recreation 1,405,862 1,349,051 56,811 - - -
Home and community services 1,875,056 1,981,617 (106,561) - - -
Interest 71,126 - 71,126 - - -
Water and sewer - - - 7,363,258 6,419,381 943,877
Total expenses 13,983,240 13,686,531 296,709 7,363,258 6,419,381 943,877
Transfers in (out)387,052 248,897 138,155 (387,052) (248,897) (138,155)
Change in net position 1,061,319$ 1,425,768 (364,449) 1,564,440 1,150,650 413,790
Governmental Activities Business-type Activities
9
TOWN OF ITHACA, NEW YORK
Management’s Discussion and Analysis, Continued
Figure A-4
Total costs of services provided by the Town were $21,346,498. These charges were offset by grants
and contributions of $962,652 and charges for services of $6,905,810, resulting in net cost of services
of $13,478,036.
Governmental Business-type
Activities Activities Total
Functions:
General government support 2,956,118$ - 2,956,118
Public safety 3,607,153 - 3,607,153
Health 28,708 - 28,708
Transportation 4,039,217 - 4,039,217
Culture and recreation 1,405,862 - 1,405,862
Home and community services 1,875,056 1,875,056
Interest 71,126 - 71,126
Water and sewer - 7,363,258 7,363,258
Total 13,983,240$ 7,363,258 21,346,498
Governmental Business-type
Activities Activities Total
Functions:
General government support 2,843,374$ - 2,843,374
Public safety 3,401,923 - 3,401,923
Health 28,708 - 28,708
Transportation 3,164,046 - 3,164,046
Culture and recreation 1,281,370 - 1,281,370
Home and community services 1,660,905 - 1,660,905
Interest 71,126 - 71,126
Water and sewer - 1,026,584 1,026,584
Total 12,451,452$ 1,026,584 13,478,036
Net Costs of Services
Figure A-5 Total Costs of Services
Culture and recreation, 7%
Home and community
services, 42%Interest, 1%General government support, 14%
Transportation, 18%
Public safety, 17%Health, 1%
Expenses by Program
10
TOWN OF ITHACA, NEW YORK
Management’s Discussion and Analysis, Continued
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 revenue, expenditures and changes in fund balances - governmental funds. At
December 31, 2021, the Town reported a combined fund balance of $15,605,566. Total fund balance
increased by $789,471 in 2021.
Figure A-6
Figure A-7 shows the change in proprietary net position for the year for the Town’s funds as presented
in the Town’s statement of revenue, expenses and changes in net position - proprietary funds. At
December 31, 2021, the Town reported a combined proprietary net position of $15,610,605. Total
proprietary net position increased by $1,564,440 in 2021.
Figure A-7
2021 2020 Change
Sewer fund 6,302,006$ 6,349,458 (47,452)
Water fund 9,308,599 7,696,707 1,611,892
Total 15,610,605$ 14,046,165 1,564,440
Business-type Activites
2021 2020 Change
General fund 8,913,417$ 6,537,425 2,375,992
Highway fund 4,519,016 6,057,736 (1,538,720)
Fire fund 1,684,714 1,298,333 386,381
Nonmajor funds 488,419 922,601 (434,182)
Total 15,605,566$ 14,816,095 789,471
Governmental Activities
11
TOWN OF ITHACA, NEW YORK
Management’s Discussion and Analysis, Continued
GENERAL FUND BUDGETARY HIGHLIGHTS
Actual revenue was higher than the budgeted estimate by $770,833 and actual expenditures were less
than budgeted expenditures by $1,434,610.
Figure A-8 summarizes the general fund final budget, actual expenditures and the variances for the
year ended December 31, 2021.
Figure A-8
Variance
Final Favorable
Budget Actual (Unfavorable)
Revenue:
Real property taxes 4,061,500$ 4,074,335 12,835
Non-property taxes 2,562,500 3,222,419 659,919
State aid 250,000 470,232 220,232
All other 918,818 796,665 (122,153)
Total revenue 7,792,818 8,563,651 770,833
Expenditures:
General government support 2,324,703 1,993,115 331,588
Public safety 85,384 73,657 11,727
Health - 28,708 (28,708)
Transportation 610,700 518,862 91,838
Culture and recreation 1,600,298 982,141 618,157
Home and community services 1,453,299 1,106,221 347,078
Employee benefits 1,447,800 1,384,870 62,930
Total expenditures 7,522,184 6,087,574 1,434,610
Other financing sources 634,332 781,215 146,883
Other financing uses (972,286) (881,300) 90,986
Change in fund balance (67,320)$ 2,375,992 2,443,312
Condensed Budgetary Comparison - General Fund
CAPITAL ASSETS
The Town records expenditures for land, buildings, equipment, machinery and infrastructure (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.
12
TOWN OF ITHACA, NEW YORK
Management’s Discussion and Analysis, Continued
In 2021, the Town expended $3,209,757 on capital additions. Figure A-9 reflects the changes in net
capital assets.
Figure A-9
DEBT ADMINISTRATION
Long-term debt decreased by $2,660,001 as a result of principal payments. $1,065,000 of principal
payments are due in the next fiscal year. The bonds payable fully mature in 2035.
FACTORS BEARING ON THE TOWN’S FUTURE
•Real property taxes is the Town’s largest revenue source. In 2022, the adopted budget was
$25,160,580 which was mainly funded by real property taxes of $10,626,967.
•The United States is presently in the midst of a national health emergency related to the COVID-
19 virus. The overall consequences on a national, regional and local level are unknown, but have
the potential to result in a significant economic impact. The impact of this situation on the Town
and its future results and financial position is not presently determinable.
FINANCIAL CONTACT
The Town’s financial statements are designed to present users (citizens, taxpayers, customers,
investors and creditors) with a general overview of the Town’s finances and to demonstrate the
Town’s accountability. If you have questions about the report or need additional financial
information, contact the Town’s Supervisor, Town of Ithaca, 215 North Tioga Street, Ithaca, New
York 14850.
2021 2020 2021 2020
Land 997,833$ 919,833 - -
Construction-in-progress 855,095 162,534 465,729 1,102,183
Buildings 4,165,171 4,371,918 - -
Equipment and machinery 1,903,465 2,118,334 607,231 770,028
Furniture and furnishings 457 1,243 - -
Non-building improvements 469,513 511,627 - -
Infrastructure 6,843,944 6,969,079 19,712,060 17,778,744
Total 15,235,478$ 15,054,568 20,785,020 19,650,955
Governmental
Activities
Business-type
Activities
Governmental Business-type
Activities Activities Total
Assets
Current assets:
Cash and equivalents:
Unrestricted 14,601,312$ 4,121,882 18,723,194
Restricted 1,675,304 839,557 2,514,861
Receivables:
Accounts 80,024 - 80,024
State and federal aid 401,733 - 401,733
Due from other governments 490,870 122,403 613,273
Water and sewer rents -1,139,318 1,139,318
Prepaid expenses 272,909 24,888 297,797
Total current assets 17,522,152 6,248,048 23,770,200
Capital assets, net 15,235,478 20,785,020 36,020,498
Total assets 32,757,630 27,033,068 59,790,698
Deferred Outflows of Resources
Pension 2,896,949 274,835 3,171,784
OPEB 2,129,963 151,057 2,281,020
Total deferred outflows of resources 5,026,912 425,892 5,452,804
Total assets and deferred outflows of resources 37,784,542$ 27,458,960 65,243,502
Liabilities
Current liabilities:
Accounts payable 720,121 146,155 866,276
Accrued liabilities 114,086 310,965 425,051
Accrued interest 17,719 60,118 77,837
Due to (from) other funds 6,501 (6,501) -
Unearned revenue 1,075,878 60,362 1,136,240
Bonds payable, current portion 201,217 928,511 1,129,728
Total current liabilities 2,135,522 1,499,610 3,635,132
Noncurrent liabilities:
Bonds payable, noncurrent 2,194,820 9,214,248 11,409,068
Compensated absences 212,884 21,793 234,677
Net pension liability - proportionate share - ERS 12,408 1,178 13,586
Total OPEB liability 10,374,458 735,888 11,110,346
Total noncurrent liabilities 12,794,570 9,973,107 22,767,677
Total liabilities 14,930,092 11,472,717 26,402,809
Deferred Inflows of Resources
Pension 3,646,077 345,905 3,991,982
OPEB 419,178 29,733 448,911
Total deferred inflows of resources 4,065,255 375,638 4,440,893
Net Position
Net investment in capital assets 12,839,441 10,642,261 23,481,702
Restricted 1,675,304 12,255 1,687,559
Unrestricted 4,274,450 4,956,089 9,230,539
Total net position 18,789,195 15,610,605 34,399,800
Total liabilities, deferred inflows of resources
and net position 37,784,542$ 27,458,960 65,243,502
See accompanying notes to financial statements.
TOWN OF ITHACA, NEW YORK
Statement of Net Position
December 31, 2021
13
Operating Capital
Charges for Grants and Grants and Governmental Business-type
Expenses Services Contributions Contributions Activities Activities Total
Governmental activities:
2,956,118$ 25,090 87,654 -(2,843,374) - (2,843,374)
3,607,153 175,048 30,182 -(3,401,923) - (3,401,923)
28,708 - - - (28,708) - (28,708)
4,039,217 30,355 588,122 256,694 (3,164,046) - (3,164,046)
Culture and recreation 1,405,862 124,492 - - (1,281,370) - (1,281,370)
1,875,056 214,151 - - (1,660,905) - (1,660,905)
71,126 - - - (71,126) - (71,126)
Total governmental activities 13,983,240 569,136 705,958 256,694 (12,451,452) - (12,451,452)
Business-type activities:
Water 3,753,072 3,436,482 - - - (316,590) (316,590)
Sewer 3,610,186 2,900,192 - - - (709,994) (709,994)
Total business-type activities 7,363,258$ 6,336,674 - - - (1,026,584) (1,026,584)
General revenue:
Real property taxes 8,699,516 1,968,874 10,668,390
Real property tax items 78,326 - 78,326
Non-property taxes 4,040,761 - 4,040,761
Use of money and property 193,504 16,506 210,010
Sale of property and compensation for loss 51,788 13,272 65,060
Miscellaneous 61,824 979,424 1,041,248
Transfers in (out)387,052 (387,052) -
Total general revenue 13,512,771 2,591,024 16,103,795
Change in net position 1,061,319 1,564,440 2,625,759
Net position at beginning of year 17,727,876 14,046,165 31,774,041
Net position at end of year 18,789,195$ 15,610,605 34,399,800
See accompanying notes to financial statements.
Interest
14
Functions
General government support
Public safety
Transportation
Health
Home and community services
Changes in Net Position
TOWN OF ITHACA, NEW YORK
Statement of Activities
Year ended December 31, 2021
Net Revenue (Expense) andProgram Revenue
Nonmajor Total
General Highway Fire Governmental Governmental
Fund Fund Fund Funds Funds
Assets
Cash and equivalents:
Unrestricted 8,381,341$ 4,088,925 2,042,748 88,298 14,601,312
Restricted 825,162 479,587 - 370,555 1,675,304
Receivables:
Accounts 64,448 4,969 791 9,816 80,024
State and federal aid 148,549 - - 253,184 401,733
Due from other governments 490,870 - - - 490,870
Prepaid expenditures 206,733 66,176 - - 272,909
10,117,103$ 4,639,657 2,043,539 721,853 17,522,152
Liabilities and Fund Balances
Liabilities:
Accounts payable 210,146 28,916 254,929 226,130 720,121
Accrued liabilities 67,014 47,072 - - 114,086
Due to other funds - - - 6,501 6,501
Unearned revenue 926,526 44,653 103,896 803 1,075,878
Total liabilities 1,203,686 120,641 358,825 233,434 1,916,586
Fund balances:
Nonspendable 206,733 66,176 - - 272,909
Restricted 825,162 479,587 - 370,555 1,675,304
Assigned 1,069,066 3,973,253 1,684,714 117,864 6,844,897
Unassigned 6,812,456 - - - 6,812,456
Total fund balances 8,913,417 4,519,016 1,684,714 488,419 15,605,566
Total liabilities and fund balances 10,117,103$ 4,639,657 2,043,539 721,853 17,522,152
See accompanying notes to financial statements.
TOWN OF ITHACA, NEW YORK
Balance Sheet - Governmental Funds
December 31, 2021
15
Special Revenue
Total governmental fund balances 15,605,566$
Historical cost 25,003,683$
Accumulated depreciation (9,768,205) 15,235,478
Deferred outflows of resources - pension 2,896,949
Deferred outflows of resources - OPEB 2,129,963
Deferred inflows of resources - pension (3,646,077)
Deferred inflows of resources - OPEB (419,178) 961,657
Accrued interest (17,719)
Bonds payable, including premium (2,396,037)
Compensated absences (212,884)
Net pension liability - ERS - proportionate share (12,408)
Total OPEB liability (10,374,458) (13,013,506)
Total net position 18,789,195$
See accompanying notes to financial statements.
Capital assets, net of accumulated depreciation, used in governmental
activities are not financial resources and, therefore, are not reported in
the funds.
Differences between expected and actual experiences, assumption
changes and net differences between projected and actual earnings and
contributions subsequent to the measurement date for the
postretirement benefits (pension and OPEB) are recognized as deferred
outflows of resources and deferred inflows of resources on the
statement of net position.
Long-term liabilities that are not due and payable in the current period
are not reported in the funds.
16
TOWN OF ITHACA, NEW YORK
Reconciliation of Balance Sheet - Governmental Funds
to the Statement of Net Position
December 31, 2021
Amounts reported for governmental activities in the statement of net
position are different because:
Nonmajor Total
General Highway Fire Governmental Governmental
Fund Fund Fund Funds Funds
Revenue:
Real property taxes 4,001,716$ 800,000 3,870,500 27,300 8,699,516
Real property tax items 72,619 5,707 - - 78,326
Non-property taxes 3,222,419 818,342 - - 4,040,761
Departmental income 253,031 - - - 253,031
Intergovernmental charges 101,605 30,355 - - 131,960
Use of money and property 164,316 18,073 8,563 2,552 193,504
Licenses and permits 9,522 - - - 9,522
Fines and forfeitures 174,623 - - - 174,623
Sale of property and compensation for loss 34,786 70,474 - - 105,260
Federal aid - - - 256,694 256,694
Miscellaneous 58,782 4,072 - - 62,854
State aid 470,232 205,544 30,182 - 705,958
Total revenue 8,563,651 1,952,567 3,909,245 286,546 14,712,009
Expenditures:
General government support 1,993,115 89,172 5,013 1,042 2,088,342
Public safety 73,657 - 3,517,851 - 3,591,508
Health 28,708 - -- 28,708
Transportation 518,862 2,224,617 - 57,686 2,801,165
Culture and recreation 982,141 - - 673,466 1,655,607
Home and community services 1,106,221 - - - 1,106,221
Employee benefits 1,384,870 463,924 - - 1,848,794
Debt service:
Principal - - - 1,090,025 1,090,025
Interest - - - 99,220 99,220
Total expenditures 6,087,574 2,777,713 3,522,864 1,921,439 14,309,590
Excess (deficiency) revenue over expenditures 2,476,077 (825,146) 386,381 (1,634,893) 402,419
Other financing sources (uses):
Transfers in 781,215 - - 1,575,346 2,356,561
Transfers out (881,300) (713,574) - (374,635) (1,969,509)
Total other financing sources (uses)(100,085) (713,574) - 1,200,711 387,052
Change in fund balances 2,375,992 (1,538,720) 386,381 (434,182) 789,471
Fund balances at beginning of year, before restatement 5,979,150 5,917,219 1,298,333 922,601 14,117,303
Correction of error (note 11)558,275 140,517 - - 698,792
Fund balances at beginning of year, as restated 6,537,425 6,057,736 1,298,333 922,601 14,816,095
Fund balances at end of year 8,913,417$ 4,519,016 1,684,714 488,419 15,605,566
See accompanying notes to financial statements.
TOWN OF ITHACA, NEW YORK
Statement of Revenue, Expenditures and Changes in Fund Balances -
Governmental Funds
Year ended December 31, 2021
17
Special Revenue
Net change in fund balances 789,471$
The change in net position reported for governmental activities in the statement of
activities is different because:
Capital outlays for acquisition of capital asset and capital projects are reported in the
governmental funds as expenditures. In the statement of activities, the cost of
those assets is allocated over their useful lives and reported annually as
depreciation expense.
Capital expenditures 1,286,353$
Disposals (53,472)
Depreciation expense (1,051,971) 180,910
Major revenue is recorded in the governmental funds when they are earned,
measurable and available to provide current financial resources. In the statement
of activities, major revenue is recognize when it is earned and measurable,
regardless of when they become available Current year revenue, earned and
measurable, is recognized in the statement of activities. The governmental funds
include amounts that were earned and measurable in the prior year, and these
amounts are removed to prevent overstating revenue on the statement of activities.(79,030)
Bond principal payments are reflected as expenditures in the governmental
funds. These payments are reflected on the statement of net position as a
reduction of bonds payable and are not included in the statement of activities.
Bond principal payments for the current year are as follows:1,090,025
Interest on debt is reported in the governmental funds when the payments are
rendered. On the statement of activities, interest expense is allocated over the
time period it pertains to. Accrued interest changed by this amount.13,842
Payments for compensated absences are reported in the governmental funds as they
are due. On the statement of activities, these amounts are reported in the periods
that the liabilities are incurred. Compensated absences changed by this amount.(31,162)
Payments for other postemployment benefits are reported in the governmental
funds as they are due. On the statement of activities, an expense is recognized
based on an actuarial estimate. Other postemployment benefits changed by this
amount.(1,122,077)
Payments for pension expenses are reported in the governmental funds as they are
due. On the statement of activities, the expense is adjusted based on the pension
information provided by the retirement system. Retirement benefits changed by
this amount.205,088
Amortization of bond premiums are not reported in the governmental funds. On the
statement of activities, an adjustment to interest expense is recognized based on
the current year amortization associated with the bond premiums.14,252
Change in net position of governmental activities 1,061,319$
See accompanying notes to financial statements.
18
TOWN OF ITHACA, NEW YORK
Reconciliation of the Statement of Revenue, Expenditures and Changes in Fund Balances -
Governmental Funds to the Statement of Activities
Year ended December 31, 2021
Sewer Water
Fund Fund Total
Assets
Current assets:
Cash and equivalents:
Unrestricted 2,355,635$ 1,766,247 4,121,882
Restricted 17,522 822,035 839,557
Receivables:
Due from other governments 122,403 - 122,403
Water and sewer rents 539,794 599,524 1,139,318
Due from other funds - 6,501 6,501
Prepaid expenses 10,317 14,571 24,888
Total current assets 3,045,671 3,208,878 6,254,549
Capital assets, net 3,628,681 17,156,339 20,785,020
Total assets 6,674,352 20,365,217 27,039,569
Deferred Outflows of Resources
Pension 112,643 162,192 274,835
OPEB 61,923 89,134 151,057
Total deferred outflows of resources 174,566 251,326 425,892
Total assets and deferred outflows of resources 6,848,918$ 20,616,543 27,465,461
Liabilities
Current liabilities:
Accounts payable 21,961 124,194 146,155
Accrued liabilities 41,910 269,055 310,965
Accrued interest - 60,118 60,118
Unearned revenue 17,250 43,112 60,362
Bonds payable, current portion - 928,511 928,511
Total current liabilities 81,121 1,424,990 1,506,111
Noncurrent liabilities:
Bonds payable, noncurrent - 9,214,248 9,214,248
Compensated absences 9,743 12,050 21,793
Net pension liability - proportionate share - ERS 483 695 1,178
Total OPEB liability 301,608 434,280 735,888
Total liabilities 392,955 11,086,263 11,479,218
Deferred Inflows of Resources
Pension 141,771 204,134 345,905
OPEB 12,186 17,547 29,733
Total deferred inflows of resources 153,957 221,681 375,638
Net Position
Net investment in capital assets 3,628,681 7,013,580 10,642,261
Restricted 12,255 - 12,255
Unrestricted 2,661,070 2,295,019 4,956,089
Total net position 6,302,006 9,308,599 15,610,605
Total liabilities, deferred inflows of resources and net position 6,848,918$ 20,616,543 27,465,461
See accompanying notes to financial statements.
TOWN OF ITHACA, NEW YORK
Statement of Net Position - Proprietary Funds
December 31, 2021
19
Sewer Water
Fund Fund Total
Operating revenue - charges for services 2,900,192$ 3,435,898 6,336,090
Operating expenses:
Cost of sales and services 3,205,136 2,599,102 5,804,238
Wages and benefits 147,780 183,219 330,999
Depreciation 195,808 593,531 789,339
Administration 61,462 90,163 151,625
Total operating expenses 3,610,186 3,466,015 7,076,201
Operating loss (709,994) (30,117) (740,111)
Nonoperating revenue (expenses):
Real property taxes 545,790 1,423,084 1,968,874
Intergovernmental charges - 584 584
Use of money and property 9,110 7,396 16,506
Sale of property and compensation for loss - 13,272 13,272
Miscellaneous 294,909 684,515 979,424
Interest expense - (287,057) (287,057)
Total nonoperating revenue (expenses)849,809 1,841,794 2,691,603
Interfund transfers out (187,267) (199,785) (387,052)
Change in net position (47,452) 1,611,892 1,564,440
Net position at beginning of year 6,349,458 7,696,707 14,046,165
Net position at end of year 6,302,006$ 9,308,599 15,610,605
See accompanying notes to the financial statements.
20
TOWN OF ITHACA, NEW YORK
Statement of Revenue, Expenses and Changes in Net Position -
Proprietary Funds
Year ended December 31, 2021
Sewer Water
Fund Fund Total
Cash flows from operating activities:
Received from user charges and other assessments 2,950,168$ 3,565,508 6,515,676
Payments to suppliers for goods and services (3,192,836) (2,488,823) (5,681,659)
Payments for wages and benefits (290,407) (437,644) (728,051)
Net cash provided by (used in)
operating activities (533,075) 639,041 105,966
Cash flows from non-capital financing activities:
Real property taxes 549,066 1,429,778 1,978,844
Intergovernmental charges - 584 584
Sale of property and compensation for loss - 13,272 13,272
Miscellaneous 294,909 684,515 979,424
Transfers to other funds (187,267) (199,785)(387,052)
Net cash provided by non-capital
financing activities 656,708 1,928,364 2,585,072
Cash flows from capital and related financing activities:
Acquisition of capital assets (752,438) (1,170,966) (1,923,404)
Principal paid on capital debt - (1,619,636)(1,619,636)
Interest paid on capital debt - (290,815)(290,815)
Net cash used in capital and related
financing activities (752,438) (3,081,417) (3,833,855)
Cash flows from investing activities - interest received 9,110 7,396 16,506
Net change in cash and equivalents (619,695) (506,616) (1,126,311)
Cash and equivalents at beginning of year 2,992,852 3,094,898 6,087,750
Cash and equivalents at end of year 2,373,157$ 2,588,282 4,961,439
Supplemental schedule of cash flow information
classification of cash and equivalents:
Unrestricted 2,355,635$ 1,766,247 4,121,882
Restricted 17,522 822,035 839,557
2,373,157$ 2,588,282 4,961,439
(Continued)
See accompanying notes to financial statements.
TOWN OF ITHACA, NEW YORK
Statement of Cash Flows - Proprietary Funds
Year ended December 31, 2021
21
Sewer Water
Fund Fund Total
Reconciliation of operating loss to net cash provided by
(used in) operating activities:
Operating loss (709,994)$ (30,117) (740,111)
Depreciation 195,808 593,531 789,339
Adjustments to reconcile operating loss to
net cash provided by (used in) operating activities:
Change in:
Accounts receivable 4,414 -4,414
Due from other governments 27,745 24,737 52,482
Water and sewer rents 17,817 104,873 122,690
Prepaid expenses (9,661) (13,915) (23,576)
Accounts payable 21,961 124,194 146,155
Accrued liabilities 26,880 (2,714) 24,166
Compensated absences 1,163 (1,152) 11
Net pension liability (119,500) (170,051) (289,551)
Deferred outflows - pension (23,470) (30,309) (53,779)
Deferred inflows - pension 139,551 194,186 333,737
OPEB (102,918) (154,292) (257,210)
Deferred outflows - OPEB 8,536 18,597 27,133
Deferred inflows - OPEB (11,407) (18,527) (29,934)
Net cash provided by (used in) operating
activities (533,075)$ 639,041 105,966
See accompanying notes to financial statements.
22
Statement of Cash Flows - Proprietary Funds, Continued
TOWN OF ITHACA, NEW YORK
Custodial
Funds
Assets:
Cash 215,646$
Accounts receivable 100
Total assets 215,746
Fiduciary net position 215,746$
See accompanying notes to financial statements.
TOWN OF ITHACA, NEW YORK
Statement of Fiduciary Net Position - Fiduciary Funds
December 31, 2021
23
Custodial
Funds
Additions:
Property taxes 9,744,772$
Conduit debt 266,788
Miscellaneous 25,667
Total additions 10,037,227
Deductions:
Property taxes 9,744,772
Conduit debt 266,788
Miscellaneous 19,843
Total deductions 10,031,403
Change in fiduciary net position 5,824
Fiduciary net position at beginning of year, before restatement 168,324
Correction of error (note 11)41,598
Fiduciary net position at beginning of year, as restated 209,922
Fiduciary net position at end of year 215,746$
See accompanying notes to financial statements.
24
TOWN OF ITHACA, NEW YORK
Statement of Changes in Fiduciary Net Position - Fiduciary Funds
Year ended December 31, 2021
25
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements
December 31, 2021
(1)Summary of Significant Accounting Policies
The financial statements of the Town of Ithaca, New York (the Town) have been prepared in
accordance with accounting principles generally accepted in the United States of America
(GAAP) for governments as prescribed by the Governmental Accounting Standards Board
(GASB) which is the standard setting body for establishing governmental accounting and
financial reporting principles. Certain significant accounting principles and policies utilized
by the Town are described below.
(a)Financial Reporting Entity
The Town, which was established in 1821, is governed by the Town Law, other general
municipal laws of the State of New York (the State), 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, 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
through 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.
The financial reporting entity consists of the following, as defined by GASB Statement No.
14 - “The Financial Reporting Entity:”
(1)The primary government which is the Town.
(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 No. 14, including legal standing, fiscal dependency,
and financial accountability.
26
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1)Summary of Significant Accounting Policies, Continued
(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 (Bolton Point) is a joint venture
involving the Towns of Ithaca, Dryden and 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.
•Bolton Point’s executive body consists of ten members, two members being
appointed by each municipality. The Treasurer of Bolton Point is traditionally the
Town’s Supervisor.
•The Town 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 revenue produced
by such charges will ultimately be provided by contributions from participants.
A separate audited financial statement is available from the administrative offices of
Bolton Point, 1402 East Shore Drive, Ithaca, New York 14850. For the year ended
December 31, 2021, the audited financial statements of Bolton Point showed:
Total assets $ 14,862,860
Deferred outflows of resources 1,794,046
Total liabilities (6,669,434)
Deferred inflows of resources (1,458,368)
Net position $ 8,529,104
Total revenue $ 4,550,399
Total expenses $ 4,229,824
(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, 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 are 40.88% of the total.
27
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1)Summary of Significant Accounting Policies, Continued
(b)Excluded from the Reporting Entity, Continued
•The governing body has established charges at rates intending to be self-sustaining
to cover all operating costs and debt service. Any shortfall in revenue produced
by such charges is to be provided by equal share contributions from the
participants.
The following information is from the separately issued financial statements of the
IAWTP for the year ended December 31, 2019 (latest available):
Total assets $ 35,156,646
Deferred outflows of resources 361,269
Total liabilities (26,744,039)
Deferred inflows of resources (441,678)
Net position $ 8,332,198
Total revenue $ 4,207,059
Total expenses $ 6,310,239
(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 revenue, 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
revenue 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 revenue includes charges paid by the recipients of goods or services offered
by the programs, and grants and contributions that are restri cted to meeting the
operational or capital requirements of a program. Revenue that is not classified as
program revenue, including all taxes, is presented as general revenue.
(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 proprietary funds, each displayed in a separate column. All
remaining governmental funds are aggregated and reported as nonmajor funds.
28
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1)Summary of Significant Accounting Policies, Continued
(c)Basis of Presentation, Continued
(2)Fund Financial Statements, Continued
Proprietary fund operating revenue, 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 revenue, such as subsidies and investments earnings, result from non-
exchange transactions or ancillary activities.
The Town 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 revenue and expenditures for part-town and
town-wide highway purposes.
•Fire 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.
The Town also reports the following nonmajor governmental funds:
•Lighting Fund - Used to record operation and maintenance transactions from
special districts’ assessment.
•Debt Service Fund - Used to account for interest earned on proceeds of borrowing
for capital projects. 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.
•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 reports the following major proprietary funds:
•Sewer Fund - This proprietary fund is used to account for the activity of providing
sewer service to residents of the Town. The Town is responsible for the collection
of sewer revenue in the Town and contracts for treatment services with IAWTP.
•Water Fund - This proprietary fund is used to account for the activity of providing
water service to residents of the Town. The Town is responsible for the collection
of water revenue in the Town and contracts for delivery services with Bolton Point.
29
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1)Summary of Significant Accounting Policies, Continued
(c)Basis of Presentation, Continued
(2)Fund Financial Statements, Continued
The Town reports the following fiduciary fund:
•Custodial Fund - Used to account for those funds held in custody for other
governments, organizations or individuals.
(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. Revenue is 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 revenue and expenses from non-operating items.
Operating revenue 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 revenue of the Town are charges to customers for sewer and water
fees. Operating expenses for proprietary funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenue and expenses not
meeting this definition are reported as non-operating revenue 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, revenue is
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 revenue that is accrued include real property taxes, state and federal aid, sales tax
and certain user charges. If expenditures are the prime factor for determining eligibility,
revenue 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.
30
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1)Summary of Significant Accounting Policies, Continued
(e)Property Taxes
Town real property taxes are levied annually on January l 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 l and
January 14, without penalty, or between January 15, and January 20, with l% interest
(election to pay in installments ceases January 20). The second installment is due on or
before July 1, payable to the Tompkins 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 l to May 31 with
interest added. The Town Receiver of Taxes collects all real estate taxes for Town and
County purposes. The Town Receiver of Taxes distributes the collected tax money to the
Town Supervisor prior to distributing the balance collected to the County on April l5. 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)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 l. 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)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 balance 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, 2021, the Town encumbered
$454,459 and $285,725 in the general fund and highway fund, respectively. 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.
31
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1)Summary of Significant Accounting Policies, Continued
(g)Cash and Equivalents
The Town’s investment policies are governed by State statutes. In addition, the Town has its
own written investment policy. The Town’s monies must be deposited in Federal Deposit
Insurance Corporation (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 the State or its localities.
Collateral is required for demand deposits and certificates of deposit not covered by FDIC
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 the State. Underlying securities must have market value of at least the
cost of the repurchase agreement.
(h)Receivables
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)Inventories and Prepaid Items
Purchases of inventorial items are recorded as expenditures at the time of purchase and are
considered immaterial in amount. Certain payments to vendors reflect costs applicable to
future accounting periods and are recorded as prepaid items in both government-wide and
fund financial statements, which are expensed as the items are used.
(j)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 are as follows:
Estimated
Capitalization Useful
Threshold Life
Building and improvements $ 5,000 30-40 years
Equipment and machinery 5,000 5-15 years
Furniture and furnishings 5,000 10 years
Non-building improvements 5,000 15-20 years
Road systems 10,000 30-40 years
Water and sewer systems 10,000 15-20 years
32
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1)Summary of Significant Accounting Policies, Continued
(k)Deferred Outflows of Resources and Deferred Inflows of Resources
Deferred outflows of resources, represents a consumption of net position that applies to a
future period and so will not be recognized as an outflow of resources
(expense/expenditure) until then. The Town has four items that qualify for reporting in
this category. The first item is related to the pension reported in the Statement of Net
Position. This represents the effect of the net change in the Town’s proportion of the
collective net pension liability and difference during the measurement period between the
Town’s contributions and its proportion share of total contributions to the pension system
not included in pension expense. The second item relates to the Town’s contributions to
the pension system subsequent to the measurement date. The third item is related to other
postemployment benefits reported in the statement of net position. This represents
differences between expected and actual experience as well as changes of assumptions in
the calculation of the liability. The fourth item relates to the Town’s contributions of other
postemployment benefits subsequent to the measurement date.
Deferred inflows of resources, represents an acquisition of net position that applies to a future
period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
The Town has two items that qualify for reporting in this category. The first is related to
pensions reported in the statement of net position. This represents the effect of the net
change in the Town’s proportion of the collective net pension liability and difference
during the measurement periods between the Town’s contributions and its proportional
share of total contributions to the pension system not included in the pension expense.
The second item represents changes of assumptions related to the other postemployment
liability.
(l)Compensated Absences
The Town employees are granted vacation in varying amounts, based primarily on length of
service and service position. Some earned benefits may be forfeited if not taken within
varying time periods.
Sick leave eligibility and accumulation is specified in negotiated labor contracts and Town
policy.
Upon retirement, resignation or death, employees may receive a payment based on unused
accumulated sick leave, based on contractual provisions.
Consistent with GASB Statement No. 16 - “Accounting for Compensated Absences,” an
accrual for accumulated sick leave calculated using the vesting method is included in the
compensated absences liability at year-end. The compensated absences liability is
calculated based on the pay rates in effect at year-end.
33
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1)Summary of Significant Accounting Policies, Continued
(m)Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations
are reported as liabilities in the statement of net position. Bond premiums and discounts
are deferred and amortized over the life of the bonds using the straight-line method that
approximates the effective interest method. Bonds payable are reported net of the
applicable bond premiums or discounts.
In fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs during the current period. The face amount of
debt issued is reported as other financing sources. Premiums received on debt issuances
are reported as other financing sources while discounts on debt issuances are reported as
other financing uses. Issuance costs, whether or not withheld from the actual debt
proceeds received, are reported as debt service expenditures.
(n)Postemployment Benefits
The Town provides health insurance coverage for retired employees and their dependents.
Substantially all of the Town’s employees may become eligible for these benefits if they
reach normal retirement age and retire under the State employees’ retirement system while
working for the Town. The cost of providing postemployment benefits is shared between
the Town and the retired employee. The Town recognizes the cost of providing health
insurance by recording its share of insurance premiums for retirees and their dependents,
as an expenditure in the year paid.
(o)Unearned Revenue
Unearned revenue arise when potential revenue does not meet both the measurable and
available criteria for recognition in the current period. Unearned revenue also arise when
resources are received by the Town before it has a legal claim to them, as when grant
monies are received prior to the incurrence of qualifying expenditures. In subsequent
periods, when both recognition criteria are met, or when the Town has legal claim to the
resources, the liability for unearned revenue is removed and revenue is recognized.
(p)Unemployment Insurance
As of January 1, 1978, Town employees are covered by unemployment insurance. The Town
has chosen to discharge its liability to the 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.
34
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1)Summary of Significant Accounting Policies, Continued
(q)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 $19,500 or $26,000 for employees over the age of 50 to allow for
catch up contributions) until future 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.
(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:
•Net Investment in Capital Assets
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 “net
investment in capital assets.”
(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: nonspendable, restricted, committed, assigned, and
unassigned. The classifications serve to inform readers of the financial statements of
the extent to which the government is bound to honor constraints on the specific
purposes for which resources in a fund can be spent.
35
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1)Summary of Significant Accounting Policies, Continued
(s)Equity Classification, Continued
(2)Fund Financial Statements, Continued
Governmental fund equity is classified as fund balance. In the fund basis statements there
are five classifications of fund balance:
•Nonspendable Fund Balance
Consists of assets that are inherently nonspendable 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 nonspendable fund balance is
comprised of prepaid expenditures.
•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 and a debt reserve.
•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.
36
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1)Summary of Significant Accounting Policies, Continued
(s)Equity Classification, Continued
(3)Order of Use of Fund Balance - The Town’s policy is to apply expenditures against
nonspendable fund balance, restricted fund balance, committed fund balance, assigned
fund balance and unassigned fund balance at the end of the fiscal year. For all funds,
nonspendable 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.
(t)Impact of Recently Issued Accounting Pronouncements
GASB has issued the following pronouncements which will be implemented in the years
required. The effects of the implementation of these pronouncements are not known at
this time.
Statement No. 87 - Leases. Effective for fiscal years beginning after June 15, 2021.
Statement No. 91 - Conduit Debt Obligations. Effective for fiscal years beginning after
December 15, 2021.
Statement No. 92 - Omnibus 2020. Effective for fiscal years beginning after June 15, 2021.
Statement No. 93 - Replacement of Interbank Offered Rates. Effective for fiscal years
beginning after June 15, 2021.
Statement No. 94 - Public-Private and Public-Public Partnerships and Availability Payment
Arrangements. Effective for fiscal years beginning after June 15, 2022.
Statement No. 96 - Subscription-Based Information Technology Arrangements. Effective for
fiscal years beginning after June 15, 2022.
Statement No. 97 - Certain Component Unit Criteria, and Accounting and Financial
Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans.
Effective for fiscal years beginning after June 15, 2021.
Statement No. 99 - Omnibus 2022. Effective for various periods through fiscal years
beginning after June 15, 2023.
(u)Risks and Uncertainties
The United States is presently in the midst of a national health emergency related to the
COVID-19 virus. The overall consequences on a national, regional and local level are
unknown, but have the potential to result in a significant economic impact. The impact of
this situation on the Town and its future results and financial position is not presently
determinable.
(v)Subsequent Events
Management has evaluated subsequent events through the date of the report which is the date
the financial statements were available to be issued.
37
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(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 basic financial statements contain a full reconciliation of these items. The
differences result primarily from the economic focus of the statement of activities, compared
with the current financial resources focus of the governmental funds.
(a)Total Fund Balance 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)Statement of Revenue, Expenditures and Changes in Fund Balances vs. Statement of
Activities
Differences between statement of revenue, expenditures and changes in fund balances -
governmental funds and the statement of activities fall into one of three broad categories:
(i)Long-term revenue differences
Long-term revenue differences arise because governmental funds report revenue only
when they are considered “available”, whereas the statement of activities reports
revenue when earned. Differences in long-term revenue arise because
governmental funds report on a modified accrual basis, whereas the accrual basis
of accounting is used on the statement of activities.
(ii)Capital related differences
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.
(iii)Long-term debt transaction differences
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. Also, additions to long-term debt are recorded as revenue in the
governmental fund statements and increases in liabilities in the statement of net
position.
38
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(3)Cash and Equivalents
The Town’s investment policies are governed by State statutes, as previously described in these
notes. The depository bank places approved pledged securities for safekeeping and trust with
the Town’s agent bank in an amount sufficient to protect Town funds on a day-to-day basis
during the period of the contract. The pledge of approved securities is waived only to the
extent of the depository bank’s dollar amount of FDIC Insurance.
At December 31, 2021, the carrying amount of the Town’s deposits was $21,453,701 and the bank
balance was $23,685,426. The Town’s deposits at December 31, 2021, were entirely covered
by $750,000 of FDIC insurance and the remaining covered by pledged collateral held by the
Town’s agent bank in the Town’s name of $22,935,426.
(4)Interfund Activity
Interfund receivables and payables at December 31, 2021 were as follows:
Interfund Interfund
Fund Receivables Payables
Water $ 6,501 -
Debt service -6,501
$ 6,501 6,501
Interfund revenue and expenditures/expenses for the year ended December 31, 2021, were as
follows:
Interfund
Interfund Expenditures/
Fund Revenue Expenses
General $ 781,215 881,300
Highway -713,574
Sewer -187,267
Water -199,785
Capital projects 446,493 374,635
Debt service 1,128,853 -
$ 2,356,561 2,356,561
39
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(5)Capital Assets
Capital asset balances and activity for the year ended December 31, 2021, were as follows:
Depreciation was charged to governmental functions as follows:
General government support $ 72,425
Transportation 751,819
Culture and recreation 165,324
Home and community services 62,403
Total depreciation expense $ 1,051,971
Balance at Balance at
January 1,December 31,
Governmental activities 2021 Increases Decreases 2021
Capital assets, not being depreciated:
Land 919,833$ 78,000 - 997,833
Construction-in-progress 162,534 692,561 - 855,095
Total capital assets, not being depreciated 1,082,367 770,561 - 1,852,928
Capital assets, being depreciated:
Buildings 6,752,085 - - 6,752,085
Equipment and machinery 6,309,151 252,711 634,659 5,927,203
Furniture and furnishings 209,179 - - 209,179
Non-building improvements 1,024,060 - - 1,024,060
Infrastructure 8,975,147 263,081 - 9,238,228
Total capital assets, being depreciated 23,269,622 515,792 634,659 23,150,755
Less accumulated depreciation:
Buildings 2,380,167 206,747 - 2,586,914
Equipment and machinery 4,190,817 414,108 581,187 4,023,738
Furniture and furnishings 207,936 786 - 208,722
Non-building improvements 512,433 42,114 - 554,547
Infrastructure 2,006,068 388,216 - 2,394,284
Total accumulated depreciation 9,297,421 1,051,971 581,187 9,768,205
Total capital assets, net 15,054,568$ 234,382 53,472 15,235,478
40
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(5)Capital Assets, Continued
Balance at Balance at
January 1,December 31,
Sewer fund 2021 Increases Decreases 2021
Capital assets, not being depreciated -
construction-in-progress 103,329$ - 103,329 -
Capital assets, being depreciated:
Equipment and machinery 767,792 14,626 - 782,418
Infrastructure 3,357,721 841,141 - 4,198,862
Total capital assets, being depreciated 4,125,513 855,767 - 4,981,280
Less accumulated depreciation:
Equipment and machinery 385,335 104,658 - 489,993
Infrastructure 771,456 91,150 - 862,606
Total accumulated depreciation 1,156,791 195,808 - 1,352,599
Total capital assets, net 3,072,051$ 659,959 103,329 3,628,681
Balance at Balance at
January 1,December 31,
Water fund 2021 Increases Decreases 2021
Capital assets, not being depreciated -
construction-in-progress 998,854$ 465,729 998,854 465,729
Capital assets, being depreciated:
Equipment and machinery 700,676 20,737 - 721,413
Infrastructure 18,728,132 1,683,354 - 20,411,486
Total capital assets, being depreciated 19,428,808 1,704,091 - 21,132,899
Less accumulated depreciation:
Equipment and machinery 313,105 93,502 - 406,607
Infrastructure 3,535,653 500,029 - 4,035,682
Total accumulated depreciation 3,848,758 593,531 - 4,442,289
Total capital assets, net 16,578,904$ 1,576,289 998,854 17,156,339
41
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(6)Pension Plan
(a)Plan Description and Benefits Provided
The Town participates in the New York State and Local Employees’ Retirement System (the
System). This is a cost-sharing multiple-employer retirement system. The System
provides retirement benefits as well as death and disability benefits. The net position of
the System is held in the New York State Common Retirement Fund (the Fund), which
was established to hold all net position and record changes in plan net position allocated
to the System. The Comptroller of the State of New York serves as the trustee of the Fund
and is the administrative head of the System. System benefits are established under the
provision of the New York State Retirement and Social Security Law (RSSL). Once a
public employer elects to participate in the System, the election is irrevocable. The New
York State Constitution provides that pension membership is a contractual relationship of
which plan benefits cannot be diminished or impaired. Benefits can be changed for future
members only by enactment of a State statute. The Town also participates in the Public
Employees Group Life Insurance Plan (GLIP), which provides death benefits in the form
of life insurance. The GLIP is included in the State’s financial report as a pension trust
fund. That report, including information with regard to benefits provided, may be found
at www.osc.state.ny.us/retire/publications/index.php or obtained by writing to the New
York State and Local Retirement System, 110 State Street, Albany, New York 12244.
The System is noncontributory except for employees who joined after July 27, 1976, who
contribute 3.0 percent of their salary for the first ten years of membership, and employees
who joined on or after January 1, 2010 who generally contribute 3.0 to 6.0 percent of their
salary for their entire length of service. The Comptroller annually certifies the actuarially
determined rates expressly used in computing the employers’ contributions based on
salaries paid during the System’s fiscal year ending March 31.
(b)Pension Liability, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pension
At December 31, 2021, the Town reported the following liability for its proportionate share
of the net pension liability for the System. The net pension liability was measured as of
March 31, 2021. The total pension liability used to calculate the net pension liability was
determined by an actuarial valuation. The Town’s proportionate share of the net pension
liability was based on a projection of the Town’s long-term share of contributions to the
System relative to the projected contributions of all participating members, actuarially
determined. This information was provided by the System in reports provided to the
Town.
42
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(6)Pension Plan, Continued
(b)Pension Liability, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pension, Continued
Measurement date March 31, 2021
Valuation date April 1, 2020
Net pension liability $13,586
Town’s proportion of the Plan’s net
pension liability 0.0136443%
Change in proportionate share from
prior year 0.0006443
For the year ended December 31, 2021, the Town’s recognized pension expense of $448,825
in the statement of activities. At December 31, 2021, the Town’s reported deferred
outflows of resources and deferred inflows of resources related to pension from the
following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 165,924 -
Changes of assumptions 2,498,062 47,114
Net difference between projected and actual
investment earnings on pension plan investments -3,902,753
Changes in proportion and differences between the
Town’s contributions and proportionate share of
contributions 70,288 42,115
Town’s contributions subsequent to the measurement
date 437,510 -
Total $ 3,171,784 3,991,982
Town contributions subsequent to the March 31, 2021 measurement date will be recognized
as a reduction of the net pension liability in the year ending December 31, 202 2. Other
amounts reported as deferred outflows of resources and deferred inflows of resources
related to pension will be recognized in pension expense as follows:
Year ending
2022 $ (216,362)
2023 (77,365)
2024 (211,260)
2025 (752,721)
$ (1,257,708)
43
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(6)Pension Plan, Continued
(c)Actuarial Assumptions
The total pension liability as of the measurement date was determined by using an actuarial
valuation as noted in the table below, with update procedures used to roll forward the total
pension liability to the measurement date. The actuarial valuation used the following
actuarial assumptions:
Measurement date March 31, 2021
Actuarial valuation date April 1, 2020
Investment rate of return (net of investment
expense, including inflation) 5.9%
Salary increases 4.4%
Inflation 2.7%
Cost-of-living adjustments 1.4%
Annuitant mortality rates are based on April 1, 2015 - March 31, 2020 System’s experience with
adjustments for mortality improvements based on Society of Actuaries’ Scale MP-2020.
The actuarial assumptions used in the April 1, 2020 valuation are based on the results of an
actuarial experience study for the period April 1, 2015 - March 31, 2020.
The 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 the target asset allocation percentage and by adding
expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset
class are summarized as follows:
Long-Term
Target Expected Real
Asset Class Allocation Rate of Return *
Domestic equity 32.00% 4.05%
International equity 15.00% 6.30%
Private equity 10.00% 6.75%
Real estate 9.00% 4.95%
Opportunistic/ARS portfolio 3.00% 4.50%
Credit 4.00% 3.63%
Real assets 3.00% 5.95%
Fixed income 23.00% 0.00%
Cash 1.00% 0.50%
100.00%
*The real rate of return is net of the long-term inflation assumption of 2.0%.
44
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(6)Pension Plan, Continued
(d)Discount Rate
The discount rate used to calculate the total pension liability was 5.9%. The projection of
cash flows used to determine the discount rate assumes that contributions from plan
members will be made at the current contribution 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.
(e)Sensitivity of the Proportionate Share of the Net Pension Liability to the Discount Rate
The following presents the Town’s proportionate share of the net pension liability calculated
using the discount rate of 5.9%, 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 i s 1-percentage
point lower (4.9%) or 1-percentage point higher (6.9%) than the current rate:
1% Current 1%
Decrease Assumption Increase
(4.9%) (5.9%) (6.9%)
Employer’s proportionate share of the net
pension asset (liability) $ (3,771,000) (13,586) 3,451,629
(f)Pension Plan Fiduciary Net Position
The components of the current-year net pension liability of all participating employers as of
the respective measurement date, were as follows:
(Dollars in Millions)
Measurement date 3/31/2021
Employers’ total pension liability $ (220,680)
Plan fiduciary net position 220,580
Employers’ net pension liability $ (100)
Ratio of plan fiduciary net position to the
Employers’ total pension liability 99.95%
(g)Contributions to the Pension Plan
Employer contributions are paid annually based on the System’s fiscal year which ends on
March 31st. Retirement contributions as of December 31, 2021 represent the projected
employer contribution for the period of April 1, 2021 through March 31, 2022 based on
paid employee wages multiplied by the employer’s contribution rate, by tier. The
retirement contribution paid to the System for the year ended December 31, 2021 was
$569,632.
45
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(7)Long-Term Debt
The Town borrows money in order to acquire or construct capital assets. This enables the cost of
these capital assets to be borne by the present and future taxpayers. At December 31, 2021,
the total principal indebtedness outstanding of the Town aggregated $11,835,000. The
following is a summary of the Town’s outstanding bonds payable for the year ended
December 31, 2021:
Date of Original Interest Maturity Outstanding
Description Issue Amount Rate Date 12/31/2021
General Fund:
2020-A Public Improvement 9/3/20 1,260,370 2.0-5.0%8/15/35 1,196,220$
Highway Fund:
2014-B Public Improvement 12/30/14 950,000 2.0-4.0%12/15/29 502,000
2015 Public Improvement 11/13/15 800,000 2.0-2.5%10/15/30 513,000
Water Fund:
2014-A Refunding Bond 12/30/14 910,000 2.0-4.0%5/15/24 280,000
2014-B Public Improvement 12/30/14 2,050,000 2.0-4.0%12/15/29 1,193,000
2015 Public Improvement 11/13/15 2,150,000 2.0-2.5%10/15/30 1,377,000
2018 Public Improvement 12/6/18 4,150,000 3.0%12/1/33 3,465,000
2020-A Public Improvement 9/3/20 2,079,630 2.6-5.0%8/15/35 1,973,780
2020-B Refunding Bond 9/3/20 1,493,125 2.0-5.0%8/15/31 1,335,000
Total bonds payable 11,835,000$
The following is a summary of the maturity of bonds payable:
Year ending Principal Interest Total
2022 1,065,000$ 356,850 1,421,850
2023 1,110,000 322,434 1,432,434
2024 1,145,000 285,934 1,430,934
2025 965,000 248,841 1,213,841
2026 1,000,000 216,068 1,216,068
2027 - 2031 4,830,000 576,055 5,406,055
2032 - 2035 1,720,000 83,199 1,803,199
Total 11,835,000$ 2,089,381 13,924,381
46
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(7)Long-Term Debt, Continued
Long-term liability balances and activity for the year ended December 31, 2021 are summarized
below:
Balance at Balance at Due
January 1,December 31,Within
2021 Increases Decreases 2021 One Year
Governmental funds:
Serial bonds:
Bonds payable 3,301,245$ - 1,090,025 2,211,220 186,150
Bond premiums 199,069 - 14,252 184,817 15,067
Serial bonds 3,500,314 - 1,104,277 2,396,037 201,217
Other liabilities:
Compensated absences 181,722 31,162 - 212,884 -
Net pension liability 3,244,830 - 3,232,422 12,408 -
Total OPEB liability 8,535,484 1,838,974 - 10,374,458 -
Total long-term liabilities 15,462,350$ 1,870,136 4,336,699 12,995,787 201,217
Balance at Balance at Due
January 1,December 31,Within
2021 Increases Decreases 2021 One Year
Proprietary funds:
Serial bonds:
Bonds payable 11,193,756$ - 1,569,976 9,623,780 878,850
Bond premiums 568,640 - 49,661 518,979 49,661
Serial bonds 11,762,396 - 1,619,637 10,142,759 928,511
Other liabilities:
Compensated absences 21,782 11 - 21,793 -
Net pension liability 290,729 - 289,551 1,178 -
Total OPEB liability 993,098 - 257,210 735,888 -
Total long-term liabilities 1,305,609$ 11 546,761 758,859 -
Activity for compensated absences, net pension, and total OPEB liability 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.
47
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(8)Long-Term Debt - Bolton Point
The Town is a joint obligor of debt used to fund the capital activities of Bolton Point. Historically,
and consistent with the cooperative agreement of the Bolton Point participating municipalities,
the repayment of Bolton Point debt and related interest has been funded through user fees.
Bolton Point remits its principal and interest to the Town. The Town repays the debt on behalf
of Bolton Point. For the year ended December 31, 2021, the Town received $266,788 of
principal and interest from Bolton Point. The following reflects information related to the
total bonds payable for Bolton Point as of December 31, 2021:
Date of Original Interest Maturity Outstanding
Description Issue Amount Rate Date 12/31/21
Joint Water
Improvement 10/5/12 2,600,000 2.00% - 3.00% 9/5/32 $ 1,585,000
Joint Water
Improvement 6/12/13 1,500,000 3.00% - 3.25% 6/1/33 1,000,000
Total bonds payable $ 2,585,000
The following is a summary of the maturity of bonds payable for Bolton Point:
Year ending Principal Interest Total
2022 195,000$ 72,288 267,288
2023 205,000 67,456 272,456
2024 210,000 62,281 272,281
2025 215,000 56,919 271,919
2026 220,000 51,313 271,313
2027 - 2031 1,185,000 159,274 1,344,274
2032 - 2033 355,000 11,125 366,125
Total 2,585,000$ 480,656 3,065,656
(9)Other Postemployment Benefits
(a)Plan Description and Benefits
The Town administers a single-employer defined benefit other postemployment benefit
(OPEB) 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 retirees’ premiums for healthcare
insurance based on the number of years of service to the Town at the time of retirement.
48
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(9)Other Postemployment Benefits, Continued
(a)Plan Description and Benefits, Continued
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 plan does not issue a publicly available financial report.
(b)Employees Covered by Benefit Terms
At December 31, 2021 the following employees were covered by the benefit terms:
Inactive employees and beneficiaries 18
Active employees 59
Total 77
(c)The OPEB Liability
The Town’s total OPEB liability of $11,110,346 was measured as of January 1, 2021 and was
determined by an actuarial valuation as of January 1, 2020.
There are no assets accumulated in a trust that meets the criteria in GASB Statement No. 75,
paragraph 4.
(d)Actuarial Methods and Assumptions
The actuarial valuation used the following actuarial assumptions:
Actuarial cost method Entry Age Normal - Level Percent of Pay
Salary scale 4.00%
Discount rate 2.12%
Inflation 2.20%
Healthcare cost trend rates 6.25% for 2021, decreasing to an ultimate rate of
3.94% in 2089
Mortality rates were based on the sex-distinct RPH-2014 Mortality Tables for employees and
healthy annuitants, adjusted to 2006 using scale MP-2014, and projected forward with
scale MP-2019.
49
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(9)Other Postemployment Benefits, Continued
(e)Changes in the total OPEB Liability
Total OPEB liability at beginning of year $ 9,528,582
Changes for the year:
Service cost 429,615
Interest 271,012
Changes of benefit terms 8,124
Changes of assumptions or other inputs 1,007,296
Benefit payments (134,283)
Net change in total OPEB liability 1,581,764
Total OPEB liability at end of year $ 11,110,346
(f)Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the Town, as well as what the total OPEB
liability would be if it were calculated using a discount rate that is l percentage point lower
(1.12%) or 1 percentage point higher (3.12%) than the current discount rate:
1% Current 1%
Decrease Trend Rates Increase
Total OPEB Liability $13,046,181 11,110,346 9,545,998
(g)Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB liability of the Town, as well as what the total OPEB
liability would be if it were calculated using healthcare cost trend rates that are l percentage
point lower or 1 percentage point higher than the current healthcare cost trend rate:
1% Current l%
Decrease Trend Rates Increase
Total OPEB Liability $9,198,181 11,110,346 13,585,558
(h)OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
For the year ended December 31, 2021, the Town recognized OPEB expense of $1,032,053.
At December 31, 2021, the Town reported deferred outflows of resources and deferred
inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 187,858 -
Changes of assumptions or other inputs 1,923,413 448,911
Town’s contributions subsequent to the measurement date 169,749 -
Total $ 2,281,020 448,911
50
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(9)Other Postemployment Benefits, Continued
(h)OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB, Continued
Town contributions subsequent to the measurement date will be recognized as a reduction of
the total OPEB liability in the year ending December 31, 2022. Other amounts reported
as deferred outflows of resources and deferred inflows of resources related to OPEB will
be recognized as follows:
Year ending
2022 $ 321,462
2023 321,462
2024 321,462
2025 268,389
2026 315,017
Thereafter 114,568
$ 1,662,360
(10)Commitments and Contingencies
(a)Risk Financing and Related Insurance
The Town is exposed to the risk of various types of loss which includes torts; theft of, damage
to, and destruction of assets; and injuries to employees. These risks are covered by
commercial insurance purchased from independent third parties. All claims are routinely
turned over to the insurance carriers.
(b)Litigation
The Town is exposed to various risks of loss arising principally in the normal course of
operations. These claims are being handled by the Town’s attorneys and insurance
companies. In the opinion of the attorneys, the outcome of these claims are either
indeterminable, or will not have a material adverse effect on the accompanying combined
financial statements and accordingly, no provision for losses has been recorded.
The Town also has open tax certiorari proceedings with a potential liability. The outcome of
these proceedings is undeterminable and no provision for loss has been recorded.
(c)Grant Programs
The Town participates in a number of grant programs. These programs are subject to financial
and compliance audits by the grantors or their representative. The Town believes, based
upon its review of current activity and prior experience, the amount of disallowances
resulting from these audits, if any, will not be significant to the Town’s financial position
or results of operations.
51
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(10)Commitments and Contingencies, Continued
(d)Tax Abatements
As of December 31, 2021, the Town abatement programs include abatements on real property
taxes. Abatement agreements are made by both the Town and the Tompkins County
Industrial Development Agency (IDA), a component unit of Tompkins County.
All property tax abatements are performed through Payment in Lieu of Tax (PILOT)
agreements made by the Town and the IDA. The PILOT agreements are made to support
housing and industrial industries. Total taxes abated by the Town and the IDA in each of
these categories for the year ended December 31, 2021 is as follows:
Town IDA Total
Housing $ 2,972 68,991 71,963
Industrial -6,169 6,169
$ 2,972 75,160 78,132
(e)Remedies for Default
Upon default of the payment of principal or interest on the serial bonds or bond anticipation
notes of the Town, the bondholders have the right to litigate.
(f)Leases
Commencing on June 30, 2021, the Town extended a previously entered lease with the United
States Postal Service. The lease requires monthly rental payments of $7,167 payable at
the end of each rental month. The term is for 5 years and ends on June 30, 2026, with two
renewal options of 5 years each. The Postal Service may terminate the agreement by
giving 30 days written notice to the Town. In all other respects, the lease shall remain the
same.
Commencing on April 1, 2021, the Town extended a previously entered lease agreement with
the Greater Tompkins County Municipal Health Insurance Consortium. The lease requires
monthly rental payments of $800 in advance on the first day of each month during the
term which includes additional space. The term is for one year and expires on March 31,
2022. The lease may be renewed for one-year extensions as agreed to in writing, executed
by both parties.
Commencing on September 1, 2020, the Town extended a previously entered lease agreement
with the History Center in Tompkins County. The lease is payable based on square
footage usage of 2,461 square feet at $4 per square foot. Monthly payments are due in
advance on the first day of each calendar month during the lease term and amounted to
$820 per month. The term is for three years and expires on August 31, 2023.
Commencing on November 21, 2017, the Town and Independent Wireless One Leased Realty
Corporation automatically renewed their existing lease for two remaining successive five-
year renewal terms, unless written notice is provided with intention not to renew at least
90 days prior to the expiration of the renewal term then in effect. The lease expires on
November 21, 2027.
52
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(10)Commitments and Contingencies, Continued
(f)Leases, Continued
The future minimum rental income payments are as follows:
Year ending
2022 $ 138,896
2023 129,585
2024 121,834
2025 123,088
2026 126,536
Thereafter 916,769
$ 1,556,708
Total rental income for the year ended December 31, 2021 was $139,145.
(11)Restatement of Net Position
The Town made corrections to December 31, 2020 balances. Previously, a portion of the total
OPEB liability was recorded in the governmental funds’ accrued liabilities, while also
recording the full actuarial valuation of OPEB in the government-wide total OPEB liability,
resulting in overstating liabilities in the governmental funds. Additionally, there were deposits
held for others in the custodial fund which were recorded as accounts payable. These balances
should have been included in the fiduciary net position.
General Highway Custodial
Fund Fund Fund
Fund balance/fiduciary net position, as
previously reported at December 31, 2020 $ 5,979,150 5,917,219 168,324
Accrued liabilities 558,275 140,517 -
Accounts payable - - 41,598
Fund balance/fiduciary net position, as
restated at December 31, 2020 $ 6,537,425 6,057,736 209,922
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
Revenue:
Real property taxes 4,000,000$ 4,000,000 4,001,716 1,716
Real property tax items 61,500 61,500 72,619 11,119
Non-property taxes 2,562,500 2,562,500 3,222,419 659,919
Departmental income 276,750 276,750 253,031 (23,719)
Intergovernmental charges 97,098 97,098 101,605 4,507
Use of money and property 180,870 180,870 164,316 (16,554)
Licenses and permits 10,000 10,000 9,522 (478)
Fines and forfeitures 225,000 225,000 174,623 (50,377)
Sale of property and compensation for loss - - 34,786 34,786
Miscellaneous 124,100 129,100 58,782 (70,318)
State aid 250,000 250,000 470,232 220,232
Total revenue 7,787,818 7,792,818 8,563,651 770,833
Expenditures:
General government support 2,354,450 2,324,703 1,993,115 331,588
Public safety 85,384 85,384 73,657 11,727
Health - - 28,708 (28,708)
Transportation 610,700 610,700 518,862 91,838
Culture and recreation 1,326,431 1,600,298 982,141 618,157
Home and community services 1,625,800 1,453,299 1,106,221 347,078
Employee benefits 1,447,800 1,447,800 1,384,870 62,930
Total expenditures 7,450,565 7,522,184 6,087,574 1,434,610
Excess of revenue over expenditures 337,253 270,634 2,476,077 2,205,443
Other financing sources (uses):
Interfund transfers in 634,332 634,332 781,215 146,883
Interfund transfers out (483,793) (972,286) (881,300) 90,986
Total other financing sources (uses)150,539 (337,954) (100,085) 237,869
Change in fund balance 487,792$ (67,320) 2,375,992 2,443,312
Fund balance at beginning of year, as restated 6,537,425
Fund balance at end of year 8,913,417$
53
TOWN OF ITHACA, NEW YORK
Required Supplementary Information
Schedule of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual - General Fund
Year ended December 31, 2021
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
Revenue:
Real property taxes 800,000$ 800,000 800,000 -
Real property tax items 19,500 19,500 5,707 (13,793)
Non-property taxes 750,000 750,000 818,342 68,342
Intergovernmental charges 18,000 18,000 30,355 12,355
Use of money and property 33,500 33,500 18,073 (15,427)
Sale of property and compensation for loss 100,000 100,000 70,474 (29,526)
Miscellaneous - - 4,072 4,072
State aid 120,000 120,000 205,544 85,544
Total revenue 1,841,000 1,841,000 1,952,567 111,567
Expenditures:
General government support 95,695 97,492 89,172 8,320
Transportation 3,018,588 3,016,791 2,224,617 792,174
Employee benefits 532,625 532,625 463,924 68,701
Total expenditures 3,646,908 3,646,908 2,777,713 869,195
Excess (deficiency) of revenue over (1,805,908) (1,805,908) (825,146) 980,762
Other financing uses - interfund transfers out (376,460) (845,460) (713,574) 131,886
Change in fund balance (2,182,368)$ (2,651,368) (1,538,720) 1,112,648
Fund balance at beginning of year, as restated 6,057,736
Fund balance at end of year 4,519,016$
54
TOWN OF ITHACA, NEW YORK
Required Supplementary Information
Schedule of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual - Highway Fund
Year ended December 31, 2021
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
Revenue:
Real property taxes 3,875,000$ 3,875,000 3,870,500 (4,500)
Use of money and property 40,000 40,000 8,563 (31,437)
State aid 30,000 30,000 30,182 182
Total revenue 3,945,000 3,945,000 3,909,245 (35,755)
Expenditures:
General government support 3,000 3,000 5,013 (2,013)
Public safety 3,630,000 3,630,000 3,517,851 112,149
Total expenditures 3,633,000 3,633,000 3,522,864 110,136
Change in fund balance 312,000$ 312,000 386,381 74,381
Fund balance at beginning of year 1,298,333
Fund balance at end of year 1,684,714$
55
TOWN OF ITHACA, NEW YORK
Required Supplementary Information
Schedule of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual - Fire Protection
Year ended December 31, 2021
Total OPEB liability 2021 2020 2019 2018
Service cost 429,615$ 218,429 262,410 230,892
Interest 271,012 317,115 278,914 273,690
Changes of benefit terms 8,124 - - -
Differences between expected and actual
experience - 266,624 - -
Changes of assumptions or other inputs 1,007,296 1,262,742 (777,965) 403,479
Benefit payments (134,283) (108,472) (73,511) (70,717)
Net change in total OPEB liability 1,581,764 1,956,438 (310,152) 837,344
Total OPEB liability - beginning 9,528,582 7,572,144 7,882,296 7,044,952
Total OPEB liability - ending 11,110,346$ 9,528,582 7,572,144 7,882,296
Covered payroll 3,759,504$ 4,070,139 4,009,564 3,358,129
Total OPEB liability as a percentage of
covered payroll 295.53%234.11%188.85%234.72%
Notes to schedule:
2021 2020 2019 2018
2.12%2.74%4.10%3.44%
Changes of assumptions - Changes of assumptions and other inputs reflect the effects of changes in the
discount rate each period. The following are the discount rates used in each period:
This schedule is presented to illustrate the requirement to show information for 10 years. However,
information is presented for those years that are available. There are no assets accumulated in a trust
that meets the criteria in GASB Statement No. 75, paragraph 4.
56
TOWN OF ITHACA, NEW YORK
Required Supplementary Information
Schedule of Changes in the Town's
Total OPEB Liability and Related Ratios
December 31, 2021
2021 2020 2019 2018 2017 2016 2015
The Town's proportion of the
net pension liability 0.0136443%0.0130000%0.0130000%0.0120000%0.0110000%0.0110000%0.0150000%
The Town's proportionate share
of the net pension liability 13,586$ 3,535,559 906,711 390,624 1,036,325 1,834,200 387,122
The Town's covered payroll 3,992,904$ 4,101,843 4,027,319 3,773,421 3,444,677 3,256,757 3,310,664
The Town's proportionate share
of the net pension liability
as a percentage of covered
payroll 0.34%86.19%22.51%10.35%30.08%56.32%11.69%
Plan fiduciary net position as
a percentage of the total
pension liability 99.95%86.4%96.3%98.2%94.7%90.7%97.9%
57
TOWN OF ITHACA, NEW YORK
Required Supplementary Information
Schedule of Town's Proportionate Share of the Net Pension Liability
Year ended December 31, 2021
This schedule is presented to illustrate the requirement to show information for 10 years.However,until a full 10-year trend is compiled,the
Town will present information for those years for which information is available.
2021 2020 2019 2018 2017 2016 2015
Contractually required
contribution 569,632$ 523,280 511,062 489,081 459,827 513,481 548,770
Contribution in relation to the
contractually required
contribution 569,632 523,280 511,062 489,081 459,827 513,481 548,770
Contribution deficiency (excess)-$ - - - - - -
Town's covered payroll 3,992,904$ 4,180,851 4,070,139 4,000,148 3,670,571 3,397,458 3,381,971
Contribution as a percentage of
covered payroll 14.27%12.52%12.56%12.23%12.53%15.11%16.23%
TOWN OF ITHACA, NEW YORK
Schedule of Town's Pension Contributions
58
Required Supplementary Information
This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is
compiled, the Town will present information for those years for which information is available.
Year ended December 31, 2021
Total
Debt Capital Nonmajor
Lighting Service Projects Governmental
Fund Fund Fund Funds
Assets
Cash and equivalents:
Unrestricted 45,731$ 33,949 8,618 88,298
Restricted - 370,555 - 370,555
Receivables:
Accounts - 461 9,355 9,816
State and federal aid - -253,184 253,184
Total assets 45,731$ 404,965 271,157 721,853
Liabilities and Fund Balances
Liabilities:
Accounts payable 27,153 351 198,626 226,130
Due to other funds - 6,501 - 6,501
Unearned revenue 803 - - 803
Total liabilities 27,956 6,852 198,626 233,434
Fund balances:
Restricted - 370,555 - 370,555
Assigned 17,775 27,558 72,531 117,864
Total fund balances 17,775 398,113 72,531 488,419
Total liabilities and fund balances 45,731$ 404,965 271,157 721,853
TOWN OF ITHACA, NEW YORK
Combining Balance Sheet - Nonmajor Governmental Funds
December 31, 2021
59
Special Revenue
Other Supplementary Information
Total
Debt Capital Nonmajor
Lighting Service Projects Governmental
Fund Fund Fund Funds
Revenue:
Real property taxes 27,300$ - - 27,300
Use of money and property 68 2,229 255 2,552
Federal aid - - 256,694 256,694
Total revenue 27,368 2,229 256,949 286,546
Expenditures:
General government support - 1,042 - 1,042
Transportation 44,106 - 13,580 57,686
Culture and recreation - - 673,466 673,466
Debt service:
Principal - 1,090,025 - 1,090,025
Interest - 99,220 - 99,220
Total expenditures 44,106 1,190,287 687,046 1,921,439
Excess expenditures over revenue (16,738) (1,188,058) (430,097) (1,634,893)
Other financing sources (uses):
Transfers in - 1,128,853 446,493 1,575,346
Transfers out - -(374,635) (374,635)
Total other financing sources (uses)- 1,128,853 71,858 1,200,711
Change in fund balances (16,738) (59,205) (358,239) (434,182)
Fund balances at beginning of year 34,513 457,318 430,770 922,601
Fund balances at end of year 17,775$ 398,113 72,531 488,419
60
TOWN OF ITHACA, NEW YORK
Combining Statement of Revenue, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds
Year ended December 31, 2021
Special Revenue
Other Supplementary Information
61
INDEPENDENT AUDITORS’ 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
Town Board and the Supervisor
Town of Ithaca, New York:
We have audited, 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, t he financial statements of the
governmental activities, the business-type activities, each major fund and the aggregate remaining
fund information of the Town of Ithaca, New York (the Town), as of and for the year ended December
31, 2021, and the related notes to the financial statements, which collectively comprise the Town’s
basic financial statements and have issued our report thereon dated May 24, 2022.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Town’s internal
control over financial reporting (internal control) as a basis for designing 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’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the Town’s
internal control.
A deficiency 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.
62
Our consideration of internal control was for the limited purpose described in t he 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 or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town’s financial statements are free
from 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 financial statements. 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
Town’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.
Williamsville, New York
May 24, 2022