HomeMy WebLinkAbout2020 Town of Ithaca Audit
FINANCIAL STATEMENTS OF
TOWN OF ITHACA
ITHACA, NEW YORK
FOR THE YEAR ENDED DECEMBER 31, 2020
TOWN OF ITHACA
INDEX
December 31, 2020
Tab
Independent Auditor’s Report 1
Management’s Discussion and Analysis 2
Financial Statements 3
Independent Auditor’s Report on Internal Control over
Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing
Standards 4
Independent Auditor’s Report on Compliance for Each Major
Program and on Internal Control Over Compliance
Required by the Uniform Guidance 4
Schedule of Findings and Questioned Costs 4
TOWN OF ITHACA
TABLE OF CONTENTS
December 31, 2020
Page
Independent Auditor’s Report ......................................................................................................... -
Management’s Discussion and Analysis ................................................................................. I-XIX
Statement of Net Position ............................................................................................................ 1-2
Statement of Activities .....................................................................................................................3
Balance Sheet – Governmental Funds .............................................................................................4
Reconciliation of the Total Fund Balances Shown in the Governmental
Funds to Governmental Activities Shown in the Statement of Net
Position ......................................................................................................................................5
Statement of Revenues, Expenditures, and Changes in Fund
Balances – Governmental Funds ........................................................................................... 6-7
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balance of the Governmental Funds to the
Change in Net Position of Governmental Activities Shown in the
Statement of Activities ........................................................................................................... 8-9
Statement of Net Position – Proprietary Funds ..............................................................................10
Statement of Revenues, Expenses, and Changes in Fund Net Position –
Proprietary Funds .....................................................................................................................11
Statement of Cash Flows – Proprietary Funds ...............................................................................12
Statement of Fiduciary Net Position – Agency Funds ...................................................................13
Statement of Changes in Fiduciary Net Position – Agency Funds ................................................14
Notes to Financial Statements .................................................................................................. 15-45
Schedule of Changes in Total OPEB Liability and Related Ratios ...............................................46
Schedule of Revenues and Expenditures Compared to Budget –
Major Funds .............................................................................................................................47
Schedule of the Town’s Proportionate Share of the Net Pension Liability ...................................48
Schedule of the Town’s Pension Contributions .............................................................................49
Capital Projects Fund – Detailed Balance Sheet………………… ................................................50
Capital Projects Fund – Detailed Revenues and Expenditures…… ..............................................51
Schedule of Expenditures of Federal Awards…… .................................................................. 52-53
Independent Auditor’s Report on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with
Government Auditing Standards........................................................................................ 54-56
Independent Auditor’s Report on Compliance for Each Major
Program and on Internal Control Over Compliance
Required by the Uniform Guidance 57-59
Schedule of Findings and Questioned Costs 60-61
410 East Upland Road
Ithaca, New York 14850
607-272-5550 / 607-273-6357 (Fax)www.swcllp.com
INDEPENDENT AUDITOR’S REPORT
Supervisor and Town Board
Town of Ithaca
Ithaca, New York 14850
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
Town of Ithaca, NY, as of and for the year ended December 31, 2020, and the related notes to the
financial statements, which collectively comprise the Town’s basic financial statements as listed in
the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the Town of Ithaca, NY, as of
December 31, 2020, and the respective changes in financial position and, where applicable, cash
flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management’s Discussion and Analysis (pages I-XIX), the Schedule of Changes in Total OPEB
Liability and Related Ratios (page 46), the Schedule of Revenues and Expenditures Compared to
Budget - Major Funds (page 47), the Schedule of the Town’s Proportionate Share of the Net
Pension Liability (page 48), and the Schedule of the Town’s Pension Contributions (page 49), be
presented to supplement the basic financial statements. Such information, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board who
considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency
with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the Town of Ithaca, NY’s basic financial statements. The supplementary
information presented on pages 50 through 51 is presented for purposes of additional analysis
and are not a required part of the basic financial statements. The schedule of expenditures of
federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code
of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards, and is also not a required part of the basic financial
statements.
The information is the responsibility of management and was derived from and relates directly to
the underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the information is fairly stated, in all material respects, in relation to the
basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
October 28, 2021 on our consideration of the Town of Ithaca, NY’s internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on the effectiveness of the Town of Ithaca, NY’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 the Town of
Ithaca, NY’s internal control over financial reporting and compliance.
Sciarabba Walker & Co., LLP
Ithaca, New York
October 28, 2021
I
The following is a discussion and analysis of the Town of Ithaca’s financial performance for the
year ended December 31, 2020. The Town of Ithaca discussion and analysis is designed to (a)
assist the reader in focusing on significant financial issues, (b) provide an overview of the
Town’s financial activity, (c) identify changes in the Town’s financial position (its ability to
address the next and subsequent year challenges), (d) identify any material deviations from the
financial plan (the approved budget), and (e) identify individual fund issues or concerns.
The section is a summary of the Town’s financial activities based on currently known facts,
decisions, or conditions as provided by the Town’s Finance Officer. It is also based on both the
government-wide and fund-based financial statements. The results of the current year are
discussed in comparison with the prior year, with an emphasis placed on the current year. This
section is only an introduction and should be read in conjunction with the Town’s financial
statements, which immediately follow this section.
HIGHLIGHTS
Financial Highlights:
The Town’s net position, as reflected in the Statement of Net Position, increased by
$2,576,418 (8.82%).
Revenue, as reflected in the Statement of Activities, increased $773,296 (3.53%).
Expenditures increased by $1,364,496 (7.28%).
The General Town-wide Fund (the primary operating fund) fund balance decreased by
$302,093 (7.54%) for the year ended December 31, 2020.
Town Highlights:
Year-end fund balance increased in highway and decreased in general, fire fund and capital
projects for major Town funds in Fiscal Year 2020.
In Fiscal Year 2020, the Town received prepaid property taxes of $805,523, $379,089 of
which was allocated to the following funds: $157,222 general, $31,444 highway, $138,001
fire, $36,418 water, $13,974 sewer, and $2,030 lighting districts. These amounts have been
reflected within the governmental funds as deferred inflows of resources. The remaining
balance of $426,434 is cash due to the County which has been reflected within the general
funds as a due to other governments at year-end.
GENERAL FUND - Fund equity decreased by $46,202, with expenditures and other uses of
$6,557,228 exceeding revenues and other sources of $6,511,026. Real property taxes, sales
tax and rental income increased while departmental income, fines and forfeitures, local
sources, mortgage tax, state aid, and federal aid decreased compared to 2019. Ending fund
balance totaled $5,979,150, which includes reserves of $1,019,192 for the Parks and Open
Space Plan Reserve, $41,129 in the Preserve Maintenance Reserve, and $10,041 in the Land
Stewardship Reserve. (Townwide + Part-Town + Risk)
HIGHWAY FUND - With revenues and other sources of $4,490,004 exceeding expenditures
and other uses of $2,781,445, fund equity increased by $1,708,559. Ending fund balance
totaled $5,917,219. (Town-wide + Part-Town)
II
WATER FUND - For Fiscal Year 2020, the net position of the Water Fund increased by
$689,236. Operating and non-operating revenues totaling $4,602,161 exceeded operating and
non-operating expenditures including transfers of $3,912,925. Year-end net position totaled
$7,696,707.
SEWER FUND - Net position of the Sewer Fund increased by $461,413 in Fiscal Year 2020.
Operating and non-operating revenues of $3,216,766 exceeded operating and non-operating
expenditures including transfers of $2,755,353. Net position at year-end totaled $6,349,458.
FIRE PROTECTION FUND - With expenses of $3,784,490 exceeding revenues of $3,274,940,
fund equity decreased by $509,550 to total $1,298,333 at year-end.
The Town of Ithaca has an informal policy to maintain the fund balance percentage of any
fund, calculated as the percentage of the fund’s year-end unreserved net assets compared to
the next year’s budgeted expenditures, at a minimum of 25%. A 25% fund balance
percentage represents the approximate amount necessary to cover the expense of three
months of operations. For the year ended December 31, 2020, all major funds exceeded this
25% goal.
Collections of sales taxes and mortgage tax decreased in Fiscal Year 2020.
SALES TAX - Collections decreased to $3,280,847 in 2020 from the previous year’s total of
$3,597,162, a decrease of $316,315 or 8.79%. Sales tax revenues are split between General
Fund and Highway Fund.
MORTGAGE TAX - Collections for 2020 totaled $325,935, a decrease of $23,831 or 6.81%
over the previous year’s total of $349,766.
Year-end balances for the Town’s reserve accounts either increased or decreased over the
prior year and are as follows:
PARKS AND OPEN SPACE PLAN RESERVE - The General Fund includes reserve funds
designated for the purpose of future park development and the purchasing of development
rights, as outlined in the Town’s Parks and Open Space Plan. The balance at year-end was
$1,019,192.
HIGHWAY EQUIPMENT RESERVE - The Highway Fund included reserve funds established for
the purchase/replacement of highway equipment and machinery. The balance at year-end
was $0 as the entire amount was reclassified during 2020 to committed fund balance.
GENERAL BENEFIT RESERVE - The General Fund, Highway Fund, Water Fund, and Sewer
Fund equity includes reserve funds established for managing unanticipated increases in
employee fringe benefit costs (e.g. NYS Retirement, Health Insurance). The aggregate
balance at year-end was $0 as the entire amount was reclassified during 2020.
PRESERVE MAINTENANCE RESERVE - The General Town-wide Fund includes reserve funds
designated for the maintenance of the Pine Tree Wildlife Preserve, donated to the Town in
2013. In conjunction with the donation of the land, the amount of $40,000 was also donated
to provide for future maintenance of the preserve. The balance at year end was $41,129.
III
LAND STEWARDSHIP RESERVE - In 2014, the Town purchased the development rights to the
Indian Creek Farm with financial assistance through a State of New York grant. This grant
included $10,000 to be held in reserve by the Town, designated for the future stewardship of
the Indian Creek Farmlands. For the year ended December 31, 2020, the balance of this
reserve totaled $10,041.
CEMETERY MAINTENANCE RESERVE - The General Town-wide Fund includes reserve funds
designated for the maintenance of the cemetery. The balance at year end was $0 as the entire
amount was reclassified during 2020.
DEBT RESERVE - For the year ended December 31, 2020, the balance of this reserve totaled
$370,555. This amount is to close the Sand Bank Road Capital Project and move the
remaining debt proceeds (from 2014 Bond issue).
The Capital Improvement Program (CIP) process continues to be improved and refined.
Timely project reviews, detailed mapping, design, planning, and the development of five-
year budget projections have strengthened the fiscal accountability of the Town’s CIP,
improving the Town’s ability to analyze the cost of future borrowing needs and the potential
impact that such long-term borrowing would have on the property tax levy and property tax
rates. This analytical process assists the Town Board in prioritizing those projects that will
better serve the needs of the Town residents and maintain the quality of the Town’s
transportation, water and sewer infrastructures.
CONSTITUTIONAL DEBT LIMIT - The Town of Ithaca maintains a very low direct debt burden.
At year-end the Town had exhausted only 3.15% of its debt-contracting power.
On February 3, 2021, Moody’s Investors Service noted the Ithaca Town has an excellent
credit position. The Aa1 rating is stronger than the median rating of Aa3 for cities
nationwide. Notable credit factors include a very healthy financial position, a negligible debt
burden and a small pension liability. It also reflects a strong wealth and income profile and
sizable tax base. Fund balance as a percent of operating revenues is far superior to other
Moody’s-rated cities nationwide.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of three parts: MD&A (this section), the basic financial statements,
and required supplementary information. The basic financial statements include two kinds of
statements that present different views of the Town:
The first two statements are government-wide financial statements that provide both
short-term and long-term information about the Town’s overall financial status.
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.
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.
Property taxes finance most of these activities.
IV
The proprietary funds provide the same type of information as the government-wide
financial statements, only in more detail. Enterprise funds are used to report the funds
presented as business-type activities in the government-wise financial statements. The
enterprise funds are those that the Town charges customers to provide. These include the
sewer and water services offered by the Town.
Fiduciary 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 some of the information in the statements
and provide more detailed data. The statements are followed by a section of required
supplementary information that further explains and supports the financial statements with a
comparison of the Town’s budget for the year.
GOVERNMENT-WIDE STATEMENTS
The government-wide statements report information about the Town as a whole using accounting
methods similar to those used by private-sector companies. The statement of net position
includes all of the Town’s assets and liabilities. All of the current year’s revenues and expenses
are accounted for in the statement of activities regardless of when cash is received or paid.
The two government-wide statements report the Town’s net position and how they have
changed. Net position, the difference between the Town’s assets and liabilities, is one way to
measure the Town’s financial health or position.
Over time, increases or decreases in the Town’s net position are an indicator of whether its
financial position is improving or deteriorating, respectively.
To assess the Town’s overall health, you need to consider additional non-financial factors
such as changes in the Town’s property tax base and the condition of facilities and
infrastructures.
In the government-wide financial statements, the Town’s activities are shown as governmental
activities and business-type activities. The Town’s basic services are included as governmental
activities such as road maintenance (transportation), and administration (general governmental
support). Property taxes finance most of these activities. Business-type activities are reported
separately as they recover most of their expenses through charges to customers for the services
provided.
FUND FINANCIAL STATEMENTS
The fund financial statements provide more detailed information about the Town’s funds,
focusing on its most significant or “major” funds – not the Town as a whole. Funds are
accounting devices the Town uses to keep track of specific sources of funding and spending on
programs:
Some funds are required by State law and by bond covenants.
The Town establishes other funds to control and to manage money for purposes (such as
repaying its long-term debts) or to show that it is properly using certain revenues.
V
The Town has three kinds of funds:
Governmental Funds: Most of the Town’s basic services are included in governmental funds,
which generally focus on (1) how cash and other financial assets can readily be converted to
cash flow in and out and (2) the balances left at year end that are available for spending.
Consequently, the governmental funds statements provide a detailed short-term view that
helps you determine whether there are more or fewer financial resources that can be spent
soon to finance the Town’s programs. Because this information does not encompass the
additional long-term focus of the government-wide statements, reconciling statements (page
5 and pages 8-9) have been added to explain the relationship (or differences) between them.
Proprietary Funds: Consist of the water and sewer funds, those funds for which the Town
provides services and then charges customers for providing the service. The proprietary
statements include all assets and liabilities, both short-term and long-term, including debt and
capital assets. Accrual accounting is used, and focus is on economic resources.
Fiduciary Funds - Agency Funds: The Town acts in an agency capacity for assets that are
ultimately transferred to others, such as payroll withholdings. The Town also reports deposits
associated with its rental activities in this fund. The Town excludes these activities from the
government-wide financial statements because it cannot use these assets to finance its
operations.
FINANCIAL ANALYSIS OF THE TOWN AS A WHOLE
The Town’s combined net position increased by $2,576,418 or 8.82%.
Current assets increased by $3,200,237 while current liabilities decreased by $97,315 or 14.60%
and 2.23%, respectively. The increase is the result of an increase in cash of approximately $1.9M
due to strong current year operations.
Capital assets increased by $3,315,664 (net of 2020 depreciation expense of $1,734,626) or
10.56%.
Long-term serial bond debt increased by $1,925,000 or 15.31%. The increase reflects proceeds
of new debt of $4,890,000 and principal payments of $2,965,000 during the year. Those figures
include a bond refunding during the year.
Unrestricted net position increased by $1,475,674 or 17.07%.
The Town’s current ratio (ratio of current assets to current liabilities) was 5.88:1 at December
31, 2020. The Town’s quick ratio (cash and assets easily converted to cash compared to current
liabilities) was 4.53:1 at December 31, 2020.
VI
Figures A-1 and A-2 present condensed information derived from the Town’s government-wide
statements.
Condensed Statement of Net Position
2020 2019 2020 2019
Current assets 16,110,280$ 14,263,365$ 9,007,620$ 7,654,296$
Non-current assets 15,054,568 12,520,264 19,650,955 18,869,595
Total Assets 31,164,848$ 26,783,629$ 28,658,575$ 26,523,891$
Deferred outflows 3,971,336$ 1,290,795$ 399,246$ 123,029$
Total Deferred Outflows of Resources 3,971,336$ 1,290,795$ 399,246$ 123,029$
Current liabilities 1,464,046$ 968,232$ 2,807,399$ 3,400,527$
Non-current liabilities 15,033,325 9,869,312 12,082,030 10,239,503
Total Liabilities 16,497,371$ 10,837,544$ 14,889,429$ 13,640,030$
Deferred inflows 910,937$ 934,770$ 122,227$ 111,374$
Total Deferred Inflows of Resources 910,937$ 934,770$ 122,227$ 111,374$
Invested in capital assets, net of debt 11,753,323$ 10,103,264$ 8,457,199$ 8,716,595$
Restricted 1,440,917 1,694,332 - 36,508
Unrestricted net position 4,533,636 4,504,514 5,588,966 4,142,413
Total Net Position 17,727,876$ 16,302,110$ 14,046,165$ 12,895,516$
Governmental
Activities
Business-type
Activities
FIGURE A-1
Business-type
Activities
2020 2019 2020 2019
REVENUES
Program revenues:
Charges for services 332,410$ 306,681$ 5,925,013$ 5,970,626$
Operating grants and contributions 246,792 350,667 - -
Capital grants and contributions 1,336,940 290,850 - -
General revenues:
Property taxes 8,614,882 8,466,812 1,825,948 1,620,796
Non property taxes 3,342,900 3,660,987 - -
Unrestricted state aid 325,935 349,766 - -
Interest earnings 167,176 237,991 42,712 62,793
Other general revenues 496,367 581,211 25,255 9,853
Total Revenues 14,863,402$ 14,244,965$ 7,818,928$ 7,664,068$
PROGRAM EXPENSES
General government support 3,058,931$ 2,597,891$ -$ -$
Public safety 3,870,309 3,526,819 - -
Transportation 3,426,623 3,354,148 - -
Culture and recreation 1,349,051 1,173,148 - -
Home and community services 1,981,617 1,968,092 -
Water and sewer - - 6,419,381 6,121,318
Total Expenses 13,686,531$ 12,620,098$ 6,419,381$ 6,121,318$
Transfers 248,897$ 192,284$ ( 248,897)$ ( 192,284)$
CHANGE IN NET POSITION 1,425,768$ 1,817,151$ 1,150,650$ 1,350,466$
FIGURE A-2
Changes in Net Position
Governmental
Activities
VII
Figure A-3 shows the sources of revenue for 2020.
FIGURE A-3
Sources of Revenue for 2020
Property
taxes, 46.03%
Sales and
other non-
property
taxes, 14.74%
Charges for
services,
27.59%
State and
federal
sources,
8.42%Interest,
0.93%
Fines and
fees, 0.69%
Other,
1.61%
Figure A-4 represents the Town’s 2020 expenditures by program.
FIGURE A-4
Expenditures by Program
General
support,
14.87%
Public safety,
19.25%
Transportation,
13.43%
Culture and
recreation,
5.92%
Home and
community
services,
41.48%
Depreciation,
5.05%
Interest on
long-term debt,
0.00%
VIII
Total costs of services provided by the Town (Figure A-5) were $20,105,912. These charges
were offset by grants and contributions of $1,583,732 and charges for services of $6,257,423,
resulting in net cost of services of $12,264,757.
Governmental Business - Type Total
Programs
2020 2020 2020
General government support 3,058,931$ -$ 3,058,931$
Public safety 3,870,309 - 3,870,309
Transportation 3,426,623 - 3,426,623
Culture and recreation 1,349,051 - 1,349,051
Home and community services 1,981,617 - 1,981,617
Water and sewer - 6,419,381 6,419,381
Total 13,686,531$ 6,419,381$ 20,105,912$
Governmental Business - Type Total
Programs
2020 2020 2020
General government support 1,852,733$ -$ 1,852,733$
Public safety 3,716,859 - 3,716,859
Transportation 3,132,507 - 3,132,507
Culture and recreation 1,217,008 - 1,217,008
Home and community services 1,851,282 - 1,851,282
Water and sewer - 494,368 494,368
Total 11,770,389$ 494,368$ 12,264,757$
Total Cost of Services
Net Cost of Services
FIGURE A-5
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS
Figure A-6 shows the change in fund balances for the year for the Town’s funds as presented in
the Town’s Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental
Funds. At December 31, 2020, the Town reported a combined fund balance of $14,117,301.
Total fund balance increased by $1,091,708 in 2020.
Governmental Fund Balances 2020 2019
General fund 5,979,150$ 6,025,352$ ( 46,202)$
Highway fund 5,917,219 4,208,662 1,708,557
Fire fund 1,298,333 1,807,883 ( 509,550)
Capital projects fund 430,770 874,713 ( 443,943)
Other funds 491,831 108,983 382,848
Total Fund Balance 14,117,303$ 13,025,593$ 1,091,710$
FIGURE A-6
Total Dollar
Change
Governmental Funds
IX
GENERAL FUND BUDGETARY HIGHLIGHTS
Actual revenues were lower than budget estimates by $402,054 and actual expenditures were less
than budgeted expenditures by $2,651,687.
Figure A-7 summarizes the General Fund original budget, actual expenditures and the variances
for the year ended December 31, 2020.
Condensed Budgetary Comparison - General
Fund 2020 Original
Budget Actual
Variance
Favorable
(Unfavorable)
REVENUES
Real property taxes 3,095,000$ 3,104,570$ 9,570$
Non-property taxes 2,015,000 1,576,290 ( 438,710)
State and federal sources 337,650 383,106 45,456
All other 815,030 796,660 ( 18,370)
Total Revenues 6,262,680$ 5,860,626$ ( 402,054)$
EXPENDITURES
General government support 2,253,950$ 1,871,173$ 382,777$
Public safety 92,234 72,232 20,002
Transportation 2,017,000 528,772 1,488,228
Culture and recreation 1,377,448 1,029,027 348,421
Home and community services 1,363,850 1,118,368 245,482
Employee benefits 1,450,800 1,284,023 166,777
Total Expenditures 8,555,282$ 5,903,595$ 2,651,687$
Other financing sources 2,508,947$ 650,400$ ( 1,858,547)$
Other financing uses 216,345 653,633 ( 437,288)
FIGURE A-7
X
CAPITAL ASSETS
The Town records expenditures for land, buildings, equipment, machinery and infrastructures
(roads, water and sewer systems) as capital assets in the Statement of Net Position. Annual
depreciation expense is recorded in the Statement of Activities to reflect the use of these assets
over their useful lives. Land and construction in progress are not subject to depreciation. The
Town’s depreciation methods, assumptions regarding useful lives and capitalization thresholds
are described in Notes 1K and 1L in the current year’s Notes to the Financial Statements.
In 2020, the Town expended $5,104,881 on capital additions. Figure A-8 reflects the changes in
net capital assets.
Changes in Net Capital Assets 2020 2019 2020 2019
Land 919,833$ 749,233$ -$ - $
Construction in progress 162,534 696,734 1,102,183 1,407,661
Buildings 4,371,918 2,818,956 - -
Equipment and machinery 2,118,334 2,361,392 770,028 821,588
Furniture and furnishings 1,243 2,029 - -
Non-building improvements 511,627 554,106 - -
Infrastructures 6,969,079 5,337,814 17,778,744 16,640,346
Total 15,054,568$ 12,520,264$ 19,650,955$ 18,869,595$
Governmental
Activities
Business-type
Activities
FIGURE A-8
Major additions in 2020 included:
Infrastructure $ 1,597,079
Buildings 1,703,170
Construction in progress 1,166,951
Equipment acquisitions 467,081
Land 170,600
Total $ 5,104,881
DEBT ADMINISTRATION
Long-term debt increased by $1,925,000 as a result of proceeds of new debt of $4,890,000 and
principal payments of $2,965,000 during the year. Those figures include a bond refunding
during the year.
The Town’s liability for compensated absences increased $20,383 to $203,504 during 2020.
The Town’s net pension liability associated with their portion of the New York State and Local
Employees’ Retirement System (ERS) increased $2,628,848 to $3,535,559 during 2020.
In 2018, the Town implemented the provisions of Governmental Accounting Standards Board
Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions. The standard replaces the requirements of previously issued Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions. The standard requires the Town to report a liability on the face of the financial
statements for the OPEB that they provide. The actuarially calculated liability includes the
XI
accumulated sick time recognized by the Town which can be credited to the employee’s portions
of health insurance at the date of retirement. The Town’s liability for post-employment benefits
under GASB 75 was $9,528,582 as of December 31, 2020.
The Town’s most recent bond rating, as determined by Moody’s Investor Service, Inc., is Aa1.
Constitutional Debt Limit
The Town of Ithaca is restricted by the New York State Constitution, Article VIII, Section 2, on
the manner of creating and paying local indebtedness. The Town can only create debt for
“Town” purposes. The outstanding payback period for indebtedness is restricted to the period of
usefulness. As the issuer of debt (borrower) the Town is required to pledge in full faith and credit
for the payments of principal and interest to the bondholder (investor).
As required under the New York State Constitution, the Town of Ithaca cannot create debt in
excess of 7% of the five (5) year average full valuation of taxable property.
The following summary provides information regarding the Town’s indebtedness, debt limit and
net debt-contracting margin as of December 31, 2020.
Five-year average full valuation of taxable property 1,542,014,193$
Debt limit - 7% thereof 107,940,994
Inclusions:
Serial bonds 15,965,751
Exclusions:
Water and sewer debt (1) ( 12,664,506)
Total net indebtedness 3,301,245$
Net debt contracting margin 104,639,749$
Percent of debt contracting power exhausted 3.15%
(1) Sewer and Water indebtedness are excluded pursuant to Section 136.00(4-a) and 136.00(2),
respectively, of the Local Finance Law.
Detailed information regarding the Town’s long-term liabilities is presented in Note 6C in 2020
Notes to the Financial Statements. Figure A-9 reflects changes in the Town’s debt for 2020.
Outstanding Debt 2020 2019 2020 2019
Serial bonds 3,301,245$ 2,417,000$ 11,193,756$ 10,153,000$
SCLIWC serial bonds - - 1,470,750 1,571,450
Compensated absences 181,722 161,941 21,782 21,180
Net pension liability 3,244,830 837,218 290,729 69,493
Other post-employment benefits 8,535,484 6,787,798 993,098 784,346
Total 15,263,281$ 10,203,957$ 13,970,115$ 12,599,469$
FIGURE A-9
Governmental Activities Business-type Activities
Figure A-10 depicts historical changes in fund balances for the Town of Ithaca for the period
2016 through 2020. Information for the Capital Projects Fund is omitted.
TOWN OF ITHACAFigure A-10: Summary of Fund Balance by FundFor the Year Ended 2016Description General General Highway Water Sewer Fire Risk Debt Lighting Inlet Valley TotalTownwide Part Town Protection Retention Service Districts CemeteryFund Equity Beginning Detail Operating Unreserved Funds 2,453,592$ 806,994$ 1,475,277$ 4,603,748$ 4,888,038$ 1,272,591$ 160,315$ 276,195$ 5,071$ 1,500$ 15,943,321$ Equipment Reserve Fund - - 249,988 - - - - - - - 249,988 Other Reserves - - - - - - - - - 7,583 7,583 Parks & Open Space Reserve Funds 811,260 - - - - - - - - - 811,260 General Benefit Reserve 180,522 63,595 99,954 14,234 8,011 - - - - - 366,316 Preserve Maintenance Reserve 40,067 - - - - - - - - - 40,067 Land Stewardship 10,010 - - - - - - - - - 10,010 Restate Fund Balance- Proprietary Funds - - - - 75,170 - - - - - 75,170 Total Fund Equity Beginning @ 1/1/2016 3,495,451$ 870,589$ 1,825,219$ 4,617,982$ 4,971,219$ 1,272,591$ 160,315$ 276,195$ 5,071$ 9,083$ 17,503,715$ Add: Revenue & Other Sources 4,461,753 1,433,344 3,356,080 4,350,656 2,689,598 3,580,837 20,126 602,046 17,010 4 20,511,454 Deduct: Expenses & Other Uses (4,319,865) (1,439,422) (3,381,821) (2,282,030) (2,246,672) (3,195,715) ( 13,535) ( 448,339) ( 16,225) ( 4,670) (17,348,294) Fund Equity Ending Balance @ 12/31/2016 3,637,339$ 864,511$ 1,799,478$ 6,686,608$ 5,414,145$ 1,657,713$ 166,906$ 429,902$ 5,856$ 4,417$ 20,666,875$ Less: Amount of Additional Fund Balance Appropriated and Assigned in the Adopted 2017 Budget ( 385,346)$ ( 76,750)$ ( 324,805)$ -$ ( 257,520)$ ( 6,000)$ -$ ( 204,750)$ -$ ( 1,500)$ ( 1,256,671)$ Less: Reserved Portion of Fund Balance Parks & Open Space ( 726,866) - - - - - - - - - ( 726,866) Gen’l Benefit Purposes ( 169,306) ( 59,979) ( 88,480) ( 17,863) ( 14,642) - - - - - ( 350,270) Preserve Maintenance Reserve ( 40,097) - - - - - - - - - ( 40,097) Land Stewardship ( 10,018) - - - - - - - - - ( 10,018) Equipment - - ( 62,517) - - - - - - - ( 62,517) Cemetery Maintenance - - - - - - - - - ( 2,917) ( 2,917) Total Net Fund Equity Beginning 1/1/2017 2,305,706$ 727,782$ 1,323,676$ 6,668,745$ 5,141,983$ 1,651,713$ 166,906$ 225,152$ 5,856$ -$ 18,217,519$ 2016XII
TOWN OF ITHACAFigure A-10: Summary of Fund Balance by FundFor the Year Ended 2017Description General General Highway Water Sewer Fire Risk Debt Lighting Inlet Valley TotalTownwide Part Town Protection Retention Service Districts CemeteryFund Equity Beginning Detail Operating Unreserved Funds 2,691,052$ 804,532$ 1,648,481$ 6,668,745$ 5,399,503$ 1,657,713$ 166,906$ 429,902$ 5,856$ 1,500$ 19,474,190$ Equipment Reserve Fund - - 62,517 - - - - - - - 62,517 Other Reserves - - - - - - - - - 2,917 2,917 Parks & Open Space Reserve Funds 726,866 - - - - - - - - - 726,866 General Benefit Reserve 169,306 59,979 88,480 17,863 14,642 - - - - - 350,270 Preserve Maintenance Reserve 40,097 - - - - - - - - - 40,097 Land Stewardship 10,018 - - - - - - - - - 10,018 Total Fund Equity Beginning @ 1/1/2017 3,637,339$ 864,511$ 1,799,478$ 6,686,608$ 5,414,145$ 1,657,713$ 166,906$ 429,902$ 5,856$ 4,417$ 20,666,875$ Add: Revenue & Other Sources 4,670,448 1,681,222 3,736,781 4,759,307 2,492,288 3,531,788 127 251,257 19,014 3 21,142,235 Deduct: Expenses & Other Uses (4,310,780) (1,472,968) (3,268,748) (3,378,719) (2,498,017) (3,110,673) ( 15,329) ( 453,040) ( 16,053) ( 4,420) (18,528,747) Fund Equity Ending Balance @ 12/31/2017 3,997,007$ 1,072,765$ 2,267,511$ 8,067,196$ 5,408,416$ 2,078,828$ 151,704$ 228,119$ 8,817$ -$ 23,280,363$ Less: Amount of Additional Fund Balance Appropriated and Assigned in the Adopted 2018 Budget ( 417,444)$ ( 350,920)$ ( 280,998)$ -$ ( 638,624)$ ( 108,500)$ -$ ( 133,000)$ -$ -$ ( 1,929,486)$ Less: Reserved Portion of Fund Balance Parks & Open Space ( 827,661) - - - - - - - - - ( 827,661) Gen’l Benefit Purposes ( 169,807) ( 69,389) ( 79,321) ( 23,811) ( 12,034) - - - - - ( 354,362) Preserve Maintenance Reserve ( 40,129) - - - - - - - - - ( 40,129) Land Stewardship ( 9,844) - - - - - - - - - ( 9,844) Equipment - - ( 250,000) - - - - - - - ( 250,000) Cemetery Maintenance - - - - - - - - - - - Total Net Fund Equity Beginning 1/1/2018 2,532,122$ 652,456$ 1,657,192$ 8,043,385$ 4,757,758$ 1,970,328$ 151,704$ 95,119$ 8,817$ -$ 19,868,881$ 2017XIII
TOWN OF ITHACAFigure A-10: Summary of Fund Balance by FundFor the Year Ended 2018Description General General Highway Highway Water Sewer Fire Risk Debt Lighting TotalTownwide Part Town Townwide Part Town Protection Retention Service DistrictsFund Equity Beginning Detail Operating Unreserved Funds 2,949,566$ 1,003,376$ -$ 1,938,190$ 8,043,385$ 5,396,382$ 2,078,828$ 151,704$ 228,119$ 8,817$ 21,798,367$ Equipment Reserve Fund - - - 250,000 - - - - - - 250,000 Parks & Open Space Reserve Funds 827,661 - - - - - - - - - 827,661 General Benefit Reserve 169,807 69,389 - 79,321 23,811 12,034 - - - - 354,362 Preserve Maintenance Reserve 40,129 - - - - - - - - - 40,129 Land Stewardship 9,844 - - - - - - - - - 9,844 Restate Fund Balance- Proprietary Funds - - - - ( 62,112) ( 41,146) - - - - ( 103,258) Total Fund Equity Beginning @ 1/1/2018 3,997,007$ 1,072,765$ -$ 2,267,511$ 8,005,084$ 5,367,270$ 2,078,828$ 151,704$ 228,119$ 8,817$ 23,177,105$ Add: Revenue & Other Sources 4,142,130 2,177,529 974,308 3,411,795 4,191,507 2,790,453 3,280,530 15,160 259,217 19,022 21,261,651 Deduct: Expenses & Other Uses (4,365,868) (1,537,531) ( 731,182) (3,008,976) (5,935,793) (2,738,882) (3,349,006) ( 17,645) ( 389,178) ( 13,342) (22,087,403) Fund Equity Ending Balance @ 12/31/2018 3,773,269$ 1,712,763$ 243,126$ 2,670,330$ 6,260,798$ 5,418,841$ 2,010,352$ 149,219$ 98,158$ 14,497$ 22,351,353$ Less: Amount of Additional Fund Balance Appropriated and Assigned in the Adopted 2019 Budget ( 414,546)$ ( 260,370)$ -$ ( 241,050)$ ( 52,706)$ ( 43,000)$ ( 241,000)$ -$ ( 68,350)$ ( 200)$ ( 1,321,222)$ Less: Reserved Portion of Fund Balance Parks & Open Space ( 832,626) - - - - - - - - - ( 832,626) Gen’l Benefit Purposes ( 165,628) ( 69,468) - ( 79,412) ( 23,838) ( 12,046) - - - - ( 350,392) Preserve Maintenance Reserve ( 40,173) - - - - - - - - - ( 40,173) Land Stewardship ( 9,752) - - - - - - - - - ( 9,752) Equipment - - - ( 283,905) - - - - - - ( 283,905) Cemetery Maintenance ( 4,426) - - - - - - - - - ( 4,426) Total Net Fund Equity Beginning 1/1/2019 2,306,118$ 1,382,925$ 243,126$ 2,065,963$ 6,184,254$ 5,363,795$ 1,769,352$ 149,219$ 29,808$ 14,297$ 19,508,857$ 2018XIV
TOWN OF ITHACAFigure A-10: Summary of Fund Balance by FundFor the Year Ended 2019Description General General Highway Highway Water Sewer Fire Risk Debt Lighting TotalTownwide Part Town Townwide Part Town Protection Retention Service DistrictsFund Equity Beginning Detail Operating Unreserved Funds 2,720,664$ 1,643,295$ 243,126$ 2,307,013$ 6,236,960$ 5,406,795$ 2,010,352$ 149,219$ 98,158$ 14,497$ 20,830,079$ Equipment Reserve Fund - - - 283,905 - - - - - - 283,905 Parks & Open Space Reserve Funds 832,626 - - - - - - - - - 832,626 General Benefit Reserve 165,628 69,468 - 79,412 23,838 12,046 - - - - 350,392 Preserve Maintenance Reserve 40,173 - - - - - - - - - 40,173 Land Stewardship 9,752 - - - - - - - - - 9,752 Cemetery Maintenance 4,426 4,426 Restate Fund Balance- Proprietary Funds - - - - ( 134,589) - - - - - ( 134,589) Total Fund Equity Beginning @ 1/1/2019 3,773,269$ 1,712,763$ 243,126$ 2,670,330$ 6,126,209$ 5,418,841$ 2,010,352$ 149,219$ 98,158$ 14,497$ 22,216,764$ Add: Revenue & Other Sources 4,994,842 1,862,296 829,407 3,915,991 4,947,011 2,926,203 3,236,676 16,763 444,520 18,073 23,191,782 Deduct: Expenses & Other Uses (4,759,906) (1,708,303) ( 634,532) (2,815,662) (4,065,749) (2,456,999) (3,439,145) ( 15,591) ( 449,323) ( 16,942) (20,362,152) Fund Equity Ending Balance @ 12/31/2019 4,008,205$ 1,866,756$ 438,001$ 3,770,659$ 7,007,471$ 5,888,045$ 1,807,883$ 150,391$ 93,355$ 15,628$ 25,046,394$ Less: Amount of Additional Fund Balance Appropriated and Assigned in the Adopted 2020 Budget ( 219,917)$ ( 250,130)$ -$ -$ -$ -$ ( 219,000)$ -$ ( 24,893)$ -$ ( 713,940)$ Less: Reserved Portion of Fund Balance Parks & Open Space ( 948,458) - - - - - - - - - ( 948,458) Gen’l Benefit Purposes ( 168,509) ( 70,676) - ( 80,792) ( 24,253) ( 12,255) - - - - ( 356,485) Preserve Maintenance Reserve ( 40,870) - - - - - - - - - ( 40,870) Land Stewardship ( 9,910) - - - - - - - - - ( 9,910) Equipment - - - ( 370,649) - - - - - - ( 370,649) Cemetery Maintenance ( 4,468) - - - - - - - - - ( 4,468) Total Net Fund Equity Beginning 1/1/2020 2,616,073$ 1,545,950$ 438,001$ 3,319,218$ 6,983,218$ 5,875,790$ 1,588,883$ 150,391$ 68,462$ 15,628$ 22,601,614$ 2019XV
TOWN OF ITHACAFigure A-10: Summary of Fund Balance by FundFor the Year Ended 2020Description General General Highway Highway Water Sewer Fire Risk Debt Lighting TotalTownwide Part Town Townwide Part Town Protection Retention Service DistrictsFund Equity Beginning Detail Operating Unreserved Funds 2,835,990$ 1,796,080$ 438,001$ 3,319,218$ 6,983,218$ 5,875,790$ 1,807,883$ 150,391$ 93,355$ 15,628$ 23,315,554$ Equipment Reserve Fund - - - 370,649 - - - - - - 370,649 Parks & Open Space Reserve Funds 948,458 - - - - - - - - - 948,458 General Benefit Reserve 168,509 70,676 - 80,792 24,253 12,255 - - - - 356,485 Preserve Maintenance Reserve 40,870 - - - - - - - - - 40,870 Land Stewardship 9,910 - - - - - - - - - 9,910 Cemetery Maintenance 4,468 - - - - - - - - - 4,468 Total Fund Equity Beginning @ 1/1/2020 4,008,205$ 1,866,756$ 438,001$ 3,770,659$ 7,007,471$ 5,888,045$ 1,807,883$ 150,391$ 93,355$ 15,628$ 25,046,394$ Add: Revenue & Other Sources 4,635,293 1,845,594 832,256 3,657,745 4,769,263 3,216,767 3,274,939 30,139 799,492 32,947 23,094,435 Deduct: Expenses & Other Uses (4,937,386) ( 1,589,028) ( 617,740) (2,163,705) (4,080,028) (2,755,353) (3,784,490) ( 30,813) ( 435,528) ( 14,062) (20,408,133) Fund Equity Ending Balance @ 12/31/2020 3,706,112$ 2,123,322$ 652,517$ 5,264,699$ 7,696,706$ 6,349,459$ 1,298,332$ 149,717$ 457,319$ 34,513$ 27,732,696$ Less: Amount of Additional Fund Balance Appropriated and Assigned in the Adopted 2021 Budget -$ ( 927,270)$ ( 204,178)$ (1,978,190)$ -$ -$ -$ -$ ( 65,076)$ -$ ( 3,174,714)$ Less: Reserved Portion of Fund Balance Parks & Open Space (1,019,192) - - - - - - - - - ( 1,019,192) Preserve Maintenance Reserve ( 41,129) - - - - - - - - - ( 41,129) Land Stewardship ( 10,041) - - - - - - - - - ( 10,041) Debt - - - - - - - - ( 370,555) ( 370,555) Total Net Fund Equity Beginning 1/1/2021 2,635,750$ 1,196,052$ 448,339$ 3,286,509$ 7,696,706$ 6,349,459$ 1,298,332$ 149,717$ 21,688$ 34,513$ 23,117,065$ 2020XVI
XVII
Factors Bearing on the Town’s Future
Property Tax is the Town’s largest revenue source. In 2020, the adopted tax levy was
$10,376,578 which was 40.4% of budgeted revenues and $43,364 or 2.69% over the tax
cap. In 2021, the adopted tax levy was $10,617,232 which was 43.3% of budgeted
revenues and in compliance with the tax cap.
Taxable assessed valuation of real property in the Town continues to increase. In 2016,
the taxable assessed valuation of real property in the Town totaled $1,366,007,677. In
2020, the total was $1,615,447,157, an increase of 18.26% from 2016 to 2020. The
average annual increase has been 4.56%.
Description 2016 2017 2018 2019 2020
Taxable Assessed Valuation 1,366,007,677$ 1,409,909,397$ 1,470,783,820$ 1,549,688,565$ 1,615,447,157$
Change from Prior Year 5.483% 3.214% 4.318% 5.365% 4.243%
Sales Tax collections in 2020 totaled $3,280,847, a decrease of $316,315 or 8.8% over
the 2019 total of $3,597,162. Sales tax collections were negatively impacted by the
COVID-19 pandemic but exceeded the budget by $30,847. Sales tax collections in 2021
have increased and are trending higher than 2019 levels (as of October 2021). The Town
has continued to budget sales tax conservatively during the COVID-19 pandemic.
Description 2016 2017 2018 2019 2020
Sales Tax Collections 3,003,943$ 3,184,969$ 3,388,799$ 3,597,162$ 3,280,847$
Mortgage Tax Collections 286,227 279,791 299,934 400,947 297,101
Mortgage Tax collections decreased 6.81%, with $400,947 collected in 2019 to $297,101
collected in 2020. Mortgage tax revenues are assigned to the General Town-wide Fund.
The local unemployment rate has consistently been lower than the state and national
unemployment rates.
Description 2014 2015 2016 2017 2018 2019 2020
National Average 6.2% 5.3% 4.9% 4.4% 3.9% 3.7% 6.7%
New York State 6.3% 5.3% 4.9% 4.7% 3.8% 4.0% 8.5%
Tompkins County 4.4% 4.4% 4.2% 4.2% 3.3% 3.6% 4.3%
The low unemployment rates for Tompkins County are due in part to the stabilizing influence
of the local colleges and other large employers. Cornell University and Ithaca College in
particular, with combined totals of over 10,000 employees and 28,000 students, support a
wide array of businesses in the retail, service and real estate sectors. The County’s
unemployment rate peaked at 10.2% in April of 2020 but lowered back to 4.3% by December
2020.
Larger employers.
XVIII
Some of the major employers located within and/or surrounding the Town are as follows:
Approximate
Number of
Name Business Type Employees
Cornell University Educational Facility 9,400
Ithaca College Educational Facility 1,600
Ithaca City School District Educational Facility 1,400
Borg Warner Automotive AutoParts Manufacturing 1,400
Cayuga Medical Center at Ithaca Health Care 1,300
Tompkins County Local Government 800
Franziska Racker Centers Children’s Center 540
Wegmans Food Markets, Inc. Commercial Foods 500
Tompkins Cortland Community College Educational Facility 400
William George Agency Educational Facility 420
Maguire Family of Dealerships Car Dealers 420
City of Ithaca Local Government 400
The Town of Ithaca will continue an aggressive Capital Improvement Program (CIP). The
Five-Year CIP for Fiscal Years 2021 - 2025 identifies various capital projects to be
constructed at a total estimated cost of $17,865,000.
2021 2022 2023 2024 2025 Total
Infrastructure:
Water Infrastructure 1,700,000$ 1,475,000$ 1,750,000$ 1,050,000$ 3,200,000$ 9,175,000$
Sewer Infrastructure 300,000 300,000 300,000 300,000 300,000 1,500,000
Stormwater Drainage 250,000 250,000 100,000 100,000 100,000 800,000
Road Improvements 750,000 500,000 475,000 750,000 800,000 3,275,000
Sidewalks - 375,000 500,000 - - 875,000
Town Facilities - 350,000 650,000 400,000 - 1,400,000
Parks & Trails 740,000 100,000 - - - 840,000
Total Annual Cost 3,740,000$ 3,350,000$ 3,775,000$ 2,600,000$ 4,400,000$ 17,865,000$
Funding Source:
Current Year Revenue 1,640,000$ 1,525,000$ 1,375,000$ 1,150,000$ 1,200,000$ 6,890,000$
Grants & Donations 400,000 - - - - 400,000
New Long-term Debt 1,700,000 1,825,000 2,400,000 1,450,000 3,200,000 10,575,000
Total Annual Cost 3,740,000$ 3,350,000$ 3,775,000$ 2,600,000$ 4,400,000$ 17,865,000$
BOND RATING - On August 13, 2020, Moody’s Investors Service assigned an Aa1 rating to the 2020
Bond Issue. The Aa1 rating reflects the Town’s “moderately-sized tax base supported by above average
resident wealth and income and higher education anchors of Cornell University and Ithaca College”, and
“strong financial position and ample reserves” Moody’s full report is available upon request.
TEN LARGEST TAXPAYERS – 2020 Assessment for 2021 Town Tax Roll -
XIX
Name Type Taxable Assessed Valuation
Cornell University Educational Institution $81,022,800
Kendal at Ithaca, Inc. Senior Living Facility 37,400,000
NYS Electric & Gas Utility 35,863,299
Warrenwood 10, LLC Residential Apartments 16,300,000
Chester Heights Equities, LLC Residential Apartments 10,000,000
Corners Community Center Retail 10,000,000
Winston Square Appts., LLC Residential 9,005,000
Ecovillage at Ithaca, Inc. Communal Living 7,963,948
South Hill Business Campus LLC Office 7,720,000
190 Pleasant Grove Road, LLC Residential Apartments 7,700,000
FINANCIAL CONTACT
The Town’s financial statements are designed to present users (citizens, taxpayers, customers,
investors and creditors) with a general overview of the Town’s finances and to demonstrate the
Town’s accountability. If you have questions about the report or need additional financial
information, contact the Town’s Supervisor, Town of Ithaca, 215 North Tioga Street, Ithaca, NY
14850.
See notes to financial statements.
TOWN OF ITHACA
STATEMENT OF NET POSITION
December 31, 2020
Governmental Business-type
Activities Activities
Current Assets:
Cash 13,281,476$ 6,049,250$
Cash, restricted 1,728,450 38,500
Accounts receivable:
State and federal aid 381,088 -
Water and sewer rents - 1,261,917
Due from other funds - 6,501
Due from other governments 478,417 1,645,635
Interest receivable - 4,505
Other receivables 225,675 -
Prepaid expenses 15,174 1,312
Total Current Assets 16,110,280 9,007,620
Capital Assets, net:14,892,034 18,548,772
Construction in progress 162,534 1,102,183
Total Capital Assets 15,054,568 19,650,955
Total Assets 31,164,848 28,658,575
Deferred Pension Outflow 2,481,856 221,056
Deferred OPEB Outflow 1,489,480 178,190
Total Assets and Deferred
Outflows of Resources 35,136,184$ 29,057,821$
ASSETS
DEFERRED OUTFLOWS OF RESOURCES
- 1 -
Eliminations Total
-$ 19,330,726$
- 1,766,950
- 381,088
- 1,261,917
( 6,501) -
- 2,124,052
- 4,505
- 225,675
- 16,486
( 6,501) 25,111,399
- 33,440,806
- 1,264,717
- 34,705,523
( 6,501) 59,816,922
- 2,702,912
- 1,667,670
( 6,501)$ 64,187,504$
Intergovernmental
See notes to financial statements.
TOWN OF ITHACA
STATEMENT OF NET POSITION (Continued)
December 31, 2020
Governmental Business-type
Activities Activities
Current Liabilities:
Accrued liabilities 570,525$ 286,799$
Bond interest payable 31,561 63,875
Due to other funds 6,501 -
Due to other governments 426,434 1,470,750
Long-term debt, current portion 429,025 985,975
Total Current Liabilities 1,464,046 2,807,399
Long-Term Debt, non current 2,872,220 10,207,781
Premium on Bonds Payable 199,069 568,640
Compensated Absences 181,722 21,782
Net Pension Liability 3,244,830 290,729
OPEB Liability 8,535,484 993,098
Total Liabilities 16,497,371 14,889,429
Deferred OPEB Inflow 495,592 59,667
Deferred Pension Inflow 83,955 12,168
Deferred Property Taxes Inflow 331,390 50,392
Invested in Capital Assets,
net of related debt 11,753,323 8,457,199
Restricted:
Culture and recreation 1,070,362 -
Debt 370,555 -
Unrestricted 4,533,636 5,588,966
Total Net Position 17,727,876 14,046,165
Total Liabilities, Deferred Inflows
and Net Position 35,136,184$ 29,057,821$
NET POSITION
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
- 2 -
Eliminations Total
-$ 857,324$
- 95,436
( 6,501) -
- 1,897,184
- 1,415,000
( 6,501) 4,264,944
- 13,080,001
- 767,709
- 203,504
- 3,535,559
- 9,528,582
( 6,501) 31,380,299
- 555,259
- 96,123
- 381,782
- 20,210,522
- 1,070,362
- 370,555
- 10,122,602
- 31,774,041
( 6,501)$ 64,187,504$
Intergovernmental
See notes to financial statements.
TOWN OF ITHACA
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2020
Governmental Activities
Operating
Functions/Programs:Charges for Grants and
Expenses Services Contributions
General governmental support 3,058,931$ 25,648$ 114,749$
Public safety 3,870,309 153,450 -
Transportation 3,426,623 22,977 -
Culture and recreation 1,349,051 - 132,043
Home and community services 1,981,617 130,335 -
Total governmental activities 13,686,531 332,410 246,792
Business-type activities:
Water 3,855,378 3,239,159 -
Sewer 2,564,003 2,685,854 -
Total business-type activities 6,419,381 5,925,013 -
20,105,912$ 6,257,423$ 246,792$
General Revenues:
Real property taxes and related tax items
Non-property taxes
Interest earnings
Fines and fees - town court
State aid not restricted to specific purposes
Other miscellaneous revenues
Transfers
Total General Revenues
Change in Net Position
Net Position, beginning of year
Net Position, end of year
Revenue
Program
- 3 -
Program
Revenue
Capital Grants
and Governmental Business-type
Contributions Activities Activities Total
1,065,801$ ( 1,852,733)$ - $ ( 1,852,733)$
- ( 3,716,859) - ( 3,716,859)
271,139 ( 3,132,507) - ( 3,132,507)
- ( 1,217,008) - ( 1,217,008)
- ( 1,851,282) - ( 1,851,282)
1,336,940 (11,770,389) - (11,770,389)
- - ( 616,219) ( 616,219)
- - 121,851 121,851
- - ( 494,368) ( 494,368)
1,336,940$ (11,770,389)$ ( 494,368)$ (12,264,757)$
8,614,882$ 1,825,948$ 10,440,830$
3,342,900 - 3,342,900
167,176 42,712 209,888
156,173 - 156,173
325,935 - 325,935
340,194 25,255 365,449
248,897 ( 248,897) -
13,196,157 1,645,018 14,841,175
1,425,768 1,150,650 2,576,418
16,302,108 12,895,515 29,197,623
17,727,876$ 14,046,165$ 31,774,041$
Changes in Net Position
Revenues and
Net (Expenses)
See notes to financial statements.
TOWN OF ITHACA
BALANCE SHEET – GOVERNMENTAL FUNDS
December 31, 2020
General Highway Fire
Assets and Other Debits:
Unrestricted cash 5,572,511$ 5,481,624$ 1,621,325$
Restricted cash 1,252,148 476,302 -
Due from state and federal governments 205,684 - -
Due from other governments 194,069 205,318 -
Prepaid expenses 102,112 32,755 -
Other receivables 42,873 11,946 4,338
Total Assets and Other Debits 7,369,397$ 6,207,945$ 1,625,663$
Liabilities, Deferred Inflows of Resources, Fund Equity, and Other Credits:
Liabilities:
Accrued liabilities 803,898$ 259,282$ 189,329$
Due to other funds - - -
Due to other governments 426,434 - -
Total Liabilities 1,230,332 259,282 189,329
Deferred Inflows of Resources 159,915 31,444 138,001
Fund Balances:
Nonspendable - prepaid expenses 102,112 32,755 -
Restricted 1,070,362 - -
Committed 236,458 631,257 -
Assigned 2,164,198 5,253,207 1,298,333
Unassigned 2,406,020 - -
Total Fund Balances 5,979,150 5,917,219 1,298,333
Total Liabilities, Fund Equity,
and Other Credits 7,369,397$ 6,207,945$ 1,625,663$
Major Funds
- 4 -
Nonmajor
Major Funds Funds Total
Capital Other Governmental
Projects Funds Funds
185,165$ 500,216$ 13,360,841$
- - 1,728,450
175,404 - 381,088
- - 399,387
- - 134,867
165,000 1,518 225,675
525,569$ 501,734$ 16,230,308$
94,799$ 1,372$ 1,348,680$
- 6,501 6,501
- - 426,434
94,799 7,873 1,781,615
- 2,030 331,390
- - 134,867
- - 1,070,362
430,770 - 1,298,485
- 491,831 9,207,569
- - 2,406,020
430,770 491,831 14,117,303
525,569$ 501,734$ 16,230,308$
See notes to financial statements.
- 5 -
TOWN OF ITHACA
RECONCILIATION OF THE TOTAL FUND BALANCES SHOWN IN
THE GOVERNMENTAL FUNDS TO GOVERNMENTAL ACTIVITIES SHOWN IN
THE STATEMENT OF NET POSITION
December 31, 2020
14,117,303$
15,054,568
( 3,500,314)
79,030
( 8,018,414)
( 31,561)
3,971,336
( 3,244,830)
( 119,695)
( 579,547)
Due from other funds -
Due to other funds -
Total Net Position - End of Year 17,727,876$
Interfund receivables and payables within the governmental funds are eliminated
in the government-wide statements. The amounts offset:
Capital assets are included as assets in the government-wide statements and are
added, net of accumulated depreciation.
This amount differs from the balance of net position in the Statement of Net
Position due to the following:
Long-term liabilities for bonded debt are included as liabilities in the government-
wide statements and are subtracted.
Long-term liabilities for compensated absences and other post employment
benefits are included in the government-wide statements as liabilities and are
subtracted.
Current liabilities for bond interest payable are included in the government-wide
statements as liabilities and are subtracted.
Deferred outflows of resources are included in the government-wide statements
and are added.
Net pension liability is included in the government-wide statements and is
subtracted.
Prepaid pension expense is included in the fund financial statements and is
subtracted.
Deferred inflows of resources are included in the government-wide statements and
are subtracted.
Receivables for revenues earned and measurable, but not available to provide
financial resources, are included in the government-wide statementsasassetsand
are added.
Total fund balances in the fund financial statements for the governmental funds.
See notes to financial statements.
TOWN OF ITHACA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2020
General Highway Fire
Revenues:
Real property taxes 3,039,877$ 2,246,000$ 3,212,131$
Real property tax items 64,693 19,431 -
Non-property tax items:
Sales tax 1,514,237 1,766,610 -
Other non-property tax items 62,053 - -
Departmental income 156,433 153,000 -
Intergovernmental charges 95,043 22,977 -
Use of money and property 83,845 44,650 29,999
Rental income 125,468 - -
Licenses and permits 9,371 - -
Fines and forfeitures 156,173 - -
Sale of property and compensation for loss 2,882 129,270 -
Federal aid 8,643 - -
Local sources 167,445 1,927 -
State sources:
Mortgage tax 297,101 - -
State aid per capita 77,362 - -
NYS highway improvement (CHIPS) - 106,139 -
Miscellaneous - - 32,810
Total Revenues 5,860,626 4,490,004 3,274,940
Other Sources:
Inter-fund transfers 650,400 - -
Proceeds of obligations - - -
Premiums on proceeds of obligations - - -
Total Revenues and Other Sources 6,511,026 4,490,004 3,274,940
Major Funds
- 6 -
Major Nonmajor
Funds Funds Total
Capital Other Governmental
Projects Funds Funds
-$ 32,750$ 8,530,758$
- - 84,124
- - 3,280,847
- - 62,053
- - 309,433
- - 118,020
5,673 3,009 167,176
- - 125,468
- - 9,371
- - 156,173
- - 132,152
1,057,158 - 1,065,801
165,000 - 334,372
- - 297,101
- - 77,362
- - 106,139
- - 32,810
1,227,831 35,759 14,889,160
432,788 796,680 1,879,868
1,260,370 - 1,260,370
164,707 - 164,707
3,085,696 832,439 18,194,105
See notes to financial statements.
TOWN OF ITHACA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES
GOVERNMENTAL FUNDS (Continued)
For the Year Ended December 31, 2020
General Highway Fire
Expenditures:
General governmental support 1,871,173 89,759 2,145
Public safety 72,232 - 3,782,345
Transportation 528,772 1,755,094 -
Culture and recreation 1,029,027 - -
Home and community services 1,118,368 - -
Employee benefits 1,284,023 496,913 -
Debt service (principal and interest) - - -
Total Expenditures 5,903,595 2,341,766 3,784,490
Other Uses:
Interfund transfers 653,633 439,679 -
Total Expenditures and Other Uses 6,557,228 2,781,445 3,784,490
Excess (Deficit) of Revenues
over Expenditures ( 46,202) 1,708,559 ( 509,550)
Fund Balance, beginning of year 6,025,352 4,208,660 1,807,883
Fund Balance, end of year 5,979,150$ 5,917,219$ 1,298,333$
Major Funds
- 7 -
Major Nonmajor
Funds Funds Total
Capital Other Governmental
Projects Funds Funds
- 1,904 1,964,981
- - 3,854,577
2,976,233 14,062 5,274,161
15,747 - 1,044,774
- - 1,118,368
- - 1,780,936
- 433,625 433,625
2,991,980 449,591 15,471,422
537,659 - 1,630,971
3,529,639 449,591 17,102,393
( 443,943) 382,848 1,091,712
874,713 108,983 13,025,591
430,770$ 491,831$ 14,117,303$
See notes to financial statements.
- 8 -
TOWN OF ITHACA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE OF THE GOVERNMENTAL FUNDS TO THE CHANGE IN NET POSITION OF
GOVERNMENTAL ACTIVITIES SHOWN IN THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2020
Net change in fund balances shown for total Governmental Funds. This amount differs
from the change in net position reflected in the Statement of Activities due to the
following: 1,091,712$
Capital outlays for the acquisition of capital assets 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. In the Statement of Activities, acquisition costs are removed and depreciation
expense is added as follows:
Capital expenditures 3,605,037
Depreciation expense ( 1,016,141) 2,588,896
Proceeds from sales of equipment are recorded as revenue in the Governmental Funds.
In the Statement of Activities, a gain or loss is recognized based on the net book value
of the asset sold (cost minus accumulated depreciation) and the sale price of the
equipment:
Proceeds from equipment sales ( 85,225)
Gain recognized 30,633 ( 54,592)
Major revenues are recorded in the Governmental Funds when they are earned,
measurable and available to provide current financial resources. In the Statement of
Activities, major revenues are recognized when they are earned and measurable,
regardless of when they become available. Current year revenues, earned and
measurable, are 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 revenues on the Statement of Activities:
Current year revenues 79,030
Prior year revenues ( 50,196) 28,834
( 1,317,245)
( 172,833)
Proceeds from serial bonds are recorded as revenue in the Governmental Funds. Bond
proceeds are reported as liabilities on the Statement of Net Position and are not
reflected on the Statement of Activities. In 2020, bond proceeds were:
Proceeds from bond premiums on serial bonds are recorded as revenues in the
Governmental Funds. Bond premiums are reported as liabilities on the Statement of
Net Position and are not reflected on the Statement of Activities. In 2020, bond
premiums were:
See notes to financial statements.
- 9 -
TOWN OF ITHACA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE OF THE GOVERNMENTAL FUNDS TO THE CHANGE IN NET POSITION OF
GOVERNMENTAL ACTIVITIES SHOWN IN THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2020 (Continued)
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 debt
obligations and are not included in the Statement of Activities. Bond principal
payments for the current year are as follows: 433,000
Interest on debt is reported in the Governmental Funds when the payments are
rendered. In the Statement of Activities, interest expense is allocated over the time
periods it pertains to. Interest expense allocated to applicable periods is greater than
Governmental Funds interest expense by the following amount:( 11,032)
Payments for compensated absences are reported in the Governmental Funds as they
are due. In the Statement of Activities, these amounts are reported in the periods that
the liabilities are incurred. Current year expenditures for amounts due from prior years
are removed and an expense is recognized for current year liabilities that have not been
paid:
Prior year expenses 161,941
Current year expenses ( 181,722) ( 19,781)
Payments for other post employment benefits are reported in the Governmental Funds
as they are due. In the Statement of Activities, an expense is recognized based on an
actuarial estimate of the current year cost associated with amortizing the estimated
present value of future benefits over a thirty-year period:( 486,918)
Payments for pension expenses are reported in the Governmental Funds as they are
due. In the Statement of Activities, the expense is adjusted based on pension
information provided by the retirement system in accordance with GASB 68:( 661,392)
Amortization of bond premiums are not reported in the Governmental Funds. In the
Statement of Activities, an adjustment to interest expense is recognized based on the
current year amortization associated with the bonds: 7,119
Interfund transactions are eliminated in the Statement of Activities. The amounts
offset, and have a zero effect on operations:
Transfers in 1,798,074
Transfers out ( 1,798,074) -
Change in Net Position 1,425,768$
See notes to financial statements.
TOWN OF ITHACA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2020
Sewer Water
Fund Fund Total
Current Assets:
Cash 2,975,352$ 3,073,898$ 6,049,250$
Cash, restricted 17,500 21,000 38,500
Accounts receivable:
Interest receivable 4,414 91 4,505
Water and sewer rents 557,611 704,306 1,261,917
Due from other governments 150,148 1,495,487 1,645,635
Due from other funds - 6,501 6,501
Prepaid expenses 656 656 1,312
Total Current Assets 3,705,681 5,301,939 9,007,620
Capital Assets, net:
Equipment and machinery 382,457 387,571 770,028
Infrastructure 2,586,265 15,192,479 17,778,744
Construction in progress 103,329 998,854 1,102,183
Total Capital Assets 3,072,051 16,578,904 19,650,955
Total Assets 6,777,732 21,880,843 28,658,575
Deferred Pension Outflow 89,173 131,883 221,056
Deferred OPEB Outflow 70,459 107,731 178,190
Total Assets and Deferred
Outflows of Resources 6,937,364$ 22,120,457$ 29,057,821$
Proprietary Funds
- 10 -
Sewer Water
Fund Fund Total
Current Liabilities:
Accrued liabilities 15,030$ 271,769$ 286,799$
Bond interest payable - 63,876 63,876
Due to other governments - 1,470,750 1,470,750
Long-term debt, current portion - 985,975 985,975
Total Current Liabilities 15,030 2,792,370 2,807,400
Long-Term Debt, non current - 10,207,781 10,207,781
Premium on Bonds Payable - 568,639 568,639
Compensated Absences 8,580 13,202 21,782
Net Pension Liability 119,983 170,746 290,729
OPEB Liability 404,526 588,572 993,098
Total Liabilities 548,119 14,341,310 14,889,429
Deferred Pension Inflows 2,220 9,948 12,168
Deferred OPEB Inflows 23,593 36,074 59,667
Deferred Property Taxes Inflow 13,974 36,418 50,392
Net Position:
Invested in Capital Assets,
net of related debt 3,072,051 5,385,148 8,457,199
Unrestricted 3,277,407 2,311,559 5,588,966
Total Net Position 6,349,458 7,696,707 14,046,165
Total Liabilities, Deferred Inflows
and Net Position 6,937,364$ 22,120,457$ 29,057,821$
Proprietary Funds
See notes to financial statements.
- 11 -
TOWN OF ITHACA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET POSITION
PROPRIETARY FUNDS
December 31, 2020
Sewer Water
Fund Fund Total
Operating Revenues:
Charges for services 2,685,854$ 3,239,159$ 5,925,013$
Total Operating Revenues 2,685,854 3,239,159 5,925,013
Operating Expenses:
Cost of sales and services 2,019,850 2,446,797 4,466,647
Wages and benefits 302,311 430,294 732,605
Depreciation 183,004 535,481 718,485
Administration 58,838 132,817 191,655
Total Operating Expenses 2,564,003 3,545,389 6,109,392
Operating Income (Deficit) 121,851 ( 306,230) ( 184,379)
Non-Operating Revenues (Expenses):
Real property taxes 488,091 1,337,857 1,825,948
Intergovernmental charges - 491 491
Interest expense - ( 309,989) ( 309,989)
Use of money and property 26,496 16,215 42,711
Local sources 16,325 8,439 24,764
Total Non-Operating Revenues 530,912 1,053,013 1,583,925
Interfund Operating Transfers ( 191,350) ( 57,547) ( 248,897)
Change in Net Position 461,413 689,236 1,150,649
Net Position, beginning of year 5,888,045 7,007,471 12,895,516
Net Position, end of year 6,349,458$ 7,696,707$ 14,046,165$
Proprietary Funds
See notes to financial statements.
- 12 -
TOWN OF ITHACA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
December 31, 2020
Sewer Water
Fund Fund Total
Cash Flows from Operating Activities:
Received from user charges and other assessments 2,640,707$ 3,316,405$ 5,957,112$
Payments for administration ( 58,838) ( 132,817) ( 191,655)
Payments for wages and benefits ( 327,888) ( 448,845) ( 776,733)
Payments to suppliers for goods and services ( 2,421,278) ( 2,434,235) ( 4,855,513)
Net Cash (Used In) Provided by Operating
Activities ( 167,297) 300,508 133,211
Cash Flows from Non-Capital Financing:
Real property taxes 488,091 1,337,857 1,825,948
Operating grants ( 141,823) 2,428 ( 139,395)
Transfers to other funds ( 191,350) ( 57,547) ( 248,897)
Net Cash Provided by
Non-Capital Financing Activities 154,918 1,282,738 1,437,656
Cash Flows from Capital and Related
Financing Activities:
Proceeds from capital debt - 3,148,575 3,148,575
Acquisition of capital assets ( 234,226) ( 342,738) ( 576,964)
Principal paid on capital debt - ( 2,532,000) ( 2,532,000)
Interest paid on capital debt - ( 309,989) ( 309,989)
Net Cash Used In Capital
and Related Financing Activities ( 234,226) ( 36,152) ( 270,378)
Cash Flows from Investing Activities:
Interest on cash and CD’s 26,496 16,215 42,711
Net Cash Provided by Investing
Activities 26,496 16,215 42,711
Net Change in Cash and Cash Equivalents ( 220,109) 1,563,309 1,343,200
Cash, beginning of year 3,212,961 1,531,589 4,744,550
Cash, end of year 2,992,852$ 3,094,898$ 6,087,750$
Reconciliation of Operating Income (Deficit) to
Net Cash Provided by (Used in) Operating Activities:
Operating income (deficit) 121,851$ ( 306,230)$ ( 184,379)$
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation 183,004 535,481 718,485
Amortization of bond premiums - ( 23,545) ( 23,545)
Changes in receivables ( 45,147) 77,246 32,099
Changes in prepaid expenses 5,826 7,900 13,726
Changes in deferred outflows of resources ( 106,539) ( 169,678) ( 276,217)
Changes in liabilities ( 312,501) 154,690 ( 157,811)
Changes in deferred inflows of resources ( 13,791) 24,644 10,853
Net Cash (Used In) Provided by Operating
Activities ( 167,297)$ 300,508$ 133,211$
Proprietary Funds
See notes to financial statements.
- 13 -
TOWN OF ITHACA
STATEMENT OF FIDUCIARY NET POSITION
AGENCY FUNDS
December 31, 2020
Assets:
Cash 209,922$
Total Assets 209,922$
Liabilities:
Accounts payable and other liabilities 41,598$
Total Liabilities 41,598
Net Position:
Restricted for:
Individuals, organizations, and other governments 168,324
Total Net Position 168,324
Total Liabilities and Net Position 209,922$
See notes to financial statements.
- 14 -
TOWN OF ITHACA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
AGENCY FUNDS
December 31, 2020
Custodial
Funds
Additions:
Contributions:
Gifts and donations 36,450$
Investment earnings:
Interest 753
Other revenue 22,096
Total additions 59,299
Deductions:
Contractual 22,674
Employee benefits 23,095
Total deductions 45,769
Net increase in fiduciary net position 13,530
Net position, beginning of year 154,794
Net position, end of year 168,324$
- 15 -
TOWN OF ITHACA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements of the Town of Ithaca have been prepared in
conformity with generally accepted accounting principles (GAAP) as applied to
government units. The Governmental Accounting Standards Board (GASB) is the
accepted standard setting body for establishing governmental accounting and financial
reporting principles.
A. Financial Reporting Entity
The Town of Ithaca, which was established in 1821, is governed by the Town
Law, other general municipal laws of the State of New York, and various local
laws. The Town Board is the legislative body responsible for the overall
operation, the Town Supervisor serves as Chief Executive Officer and Chief
Fiscal Officer.
The Town provides the following principal services: fire protection, transportation
(streets and highways), recreation, planning and zoning, general administration,
and public improvements.
Street lighting is provided by the Town Board in nine separate areas of the Town
called lighting districts. It is funded by means of a tax on the real property situated
within each district. The Town provides for intersection street lighting from the
General Fund appropriations.
Fire protection for certain areas of the Town outside the village is provided by the
Town Board via the Ithaca Fire Protection District. This district is funded by
means of a tax on the real property situated within the district. Services for fire
protection are contracted out through the City of Ithaca and the Village of Cayuga
Heights.
All governmental activities and functions performed for the Town of Ithaca are its
direct responsibility. No other governmental organization has been included or
excluded from the reporting entity.
The financial reporting entity consists of the following, as defined by
Governmental Accounting Standards Board (GASB) Statement #14, "The
Financial Reporting Entity:"
1. The primary government which is the Town of Ithaca.
2. Organizations for which the primary government is financially accountable,
and;
3. Other organizations for which the nature and significance of their relationship
with the primary government is such that exclusion would cause the reporting
entity’s general-purpose financial statements to be misleading or incomplete.
The decision to include a potential component unit in the reporting entity is based
on the criteria set forth in GASB Statement #14, including legal standing, fiscal
dependency, and financial accountability.
- 16 -
B. Excluded from the Reporting Entity
The following activities are jointly undertaken with other municipalities. These
activities are excluded from the Town’s financial statements.
1. Southern Cayuga Lake Intermunicipal Water Commission (SCLIWC) is a
joint venture involving the Towns of Ithaca, Dryden, Lansing and the Villages
of Cayuga Heights and Lansing. The joint venture operates under terms of an
original agreement dated March 1, 1977. The agreement was restated on
September 11, 2017.
SCLIWC’s executive body consists of ten members, two members being
appointed by each municipality. The Treasurer of SCLIWC is traditionally
the Town of Ithaca’s Supervisor.
The Town of Ithaca owns a majority (51.87%) of the Commission and
must adopt its budget and any subsequent amendments.
The executive body has established charges at rates intending to be self-
sustaining to cover all operating costs and debt service. Any shortfalls in
revenues produced by such charges will ultimately be provided by
contributions from participants.
A separate audited financial statement is available from the administrative
offices of the Southern Cayuga Lake Intermunicipal Water Commission, 1402
East Shore Drive, Ithaca, New York 14850. For the year ended December 31,
2020, the audited financial statements of the Commission showed:
Total Assets 14,822,807$
Deferred Outflows of Resources 1,420,019
Total Liabilities 7,569,535
Deferred Inflows of Resources 301,952
Net Position 8,371,339
Total Revenues 4,479,261
Total Expenses 4,143,023
2. The Ithaca Area Wastewater Treatment Plant (IAWTP) is a joint venture
involving the Towns of Ithaca and Dryden, and the City of Ithaca. This joint
venture was formed for the treatment of wastewater. The joint venture
operates under terms of an original agreement dated December 22, 1981 and
has been amended several times, the last of which is dated December 31,
2003. Construction of the treatment plant began in 1984 and was completed
in 1986.
The Special Joint Committee (governing body) of the IAWTP consists of
eight members; four from the City of Ithaca, three from the Town of
Ithaca, and one from the Town of Dryden. The City of Ithaca operates the
plant and has custody of the joint activity funds.
Capital costs allocated to the Town of Ithaca are 40.69% of the total.
- 17 -
The governing body has established charges at rates intending to be self-
sustaining to cover all operating costs and debt service. Any shortfall in
revenues produced by such charges is to be provided by equal share
contributions from the participants.
The following information is from the separately issued financial statements
of the IAWTP for the year ended December 31, 2018 (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 Revenues 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 revenues, and other exchange and non-exchange
transactions. Business-type activities are financed in whole or in part by fees
charged to external parties. Operating grants include operating-specific and
discretionary (either operating or capital) grants, while the capital grants
column reflects capital-specific grants.
The Statement of Activities presents a comparison between direct expenses
and program revenues for each function of the Town’s governmental
activities. Direct expenses are those that are specifically associated with and
are clearly identifiable to a function. Program revenues include charges paid
by the recipients of goods or services offered by the programs, and grants and
contributions that are restricted to meeting the operational or capital
requirements of a program. Revenues that are not classified as program
revenues, including all taxes, are presented as general revenues.
2. Fund Financial Statements
The fund statements provide information about the Town’s funds, including
fiduciary funds. Separate statements for each fund category (governmental,
proprietary, and fiduciary) are presented. The emphasis of fund financial
statements is on major Governmental and Enterprise Funds, each displayed in
a separate column. All remaining Governmental Funds are aggregated and
reported as non-major funds.
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Proprietary fund operating revenues, such as charges for services, result from
exchange transactions associated with the principal activity of the fund.
Exchange transactions are those in which each party receives and gives up
essentially equal values. Non-operating revenues, such as subsidies and
investments earnings, result from non-exchange transactions or ancillary
activities.
The Town of Ithaca reports the following major Governmental Funds:
General Fund: This is the Town’s primary operating fund. It
accounts for all financial transactions that are not required by law or
other provision to be accounted for in other funds.
Highway Fund: Used to account for revenues and expenditures for
part town highway purposes.
Fire Protection District Fund: Used to record transactions involving
the Town Fire Protection District and the contracts for fire protection
with the City of Ithaca and Village of Cayuga Heights.
Capital Projects Fund: Used to account for capital improvements
financed from current monies transferred from other funds, federal and
state grants and proceeds of obligations.
The Town also reports the following non-major funds:
Lighting District Fund: Used to record operation and maintenance
transactions. Revenues derived from special districts’ assessment.
Debt Service Fund: Used to account for interest earned on proceeds
of borrowing for capital projects. Interest earned is transferred to the
Debt Service Fund from the Capital Projects Fund and then to the
Operating Funds for payment of principal and interest. Annual
principal and interest payments due on serial bonds are transferred
from the Town's other funds. Payments are made directly from the
Debt Service Fund to the respective paying agents.
Inlet Valley Cemetery Fund: The Inlet Valley Cemetery Association
was dissolved in 2010, upon which ownership of the cemetery
devolved to the Town in accordance with state statutes. This account
is used to account for funds used for maintenance of the cemetery.
The Town reports the following major enterprise funds:
Water Fund: This enterprise fund is used to account for the activity
of providing water service to residents of the Town of Ithaca. The
Town is responsible for the collection of water revenues in the Town
of Ithaca and contracts for delivery services with the Southern Cayuga
Lake Intermunicipal Water Commission (SCLIWC) and Ithaca Area
Wastewater Treatment Plant (IAWTP).
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Sewer Fund: This enterprise fund is used to account for the activity
of providing sewer service to residents of the Town of Ithaca. The
Town is responsible for the collection of sewer revenues in the Town
of Ithaca and contracts for treatment services with the Southern
Cayuga Lake Intermunicipal Water Commission (SCLIWC) and
Ithaca Area Wastewater Treatment Plant (IAWTP).
The Town reports the following fiduciary funds:
Agency Fund: Used to account for those funds held in custody and
subsequent distributions, transmittal or release to other governments,
individuals or to other funds.
D. Measurement Focus and Basis of Accounting
The Government-Wide financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting. Revenues are
recorded when earned and expenses are recorded at the time liabilities are
incurred, regardless of when the related cash transaction takes place. Non-
exchange transactions, in which the Town gives or receives value without directly
receiving or giving equal value in exchange, include property taxes, grants and
donations. On an accrual basis, revenue from property taxes is recognized in the
fiscal year for which the taxes are levied. Revenue from grants and donations are
recognized in the fiscal year in which all eligibility requirements have been
satisfied.
Proprietary funds distinguish operating revenues and expenses from non-
operating items. Operating revenues and expenses generally result from
providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. The principal operating revenues
of the Town are charges to customers for sewer and water fees. Operating
expenses for enterprise funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as non-operating revenues and expenses.
The Governmental Funds are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Under this
basis of accounting, revenues are recorded when measurable and available.
Available means collectible within the current period or soon enough thereafter to
be used to pay liabilities of the current period.
Material revenues that are accrued include real property taxes, state and federal
aid sales tax and certain user charges. If expenditures are the prime factor for
determining eligibility, revenues from federal and state grants are accrued when
the expenditure is made.
Expenditures are recorded when the related fund liability is incurred, except for
principal and interest on general long-term debt, claims and judgments, and
compensated absences, which are recognized as expenditures to the extent they
have matured. General capital asset acquisitions are reported as expenditures in
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Governmental Funds. Proceeds of general long-term debt and acquisitions under
capital leases are reported as other financing sources.
E. Property Taxes
Town real property taxes are levied annually on January 1 and become a lien on
that date. Property owners can elect to pay their taxes using one of two options.
Taxpayers may elect to pay their bill in two installments equal to ½ the total bill,
plus a 2.5% processing fee. If the installment option is selected, the first payment
is due between January 1 and January 14, without penalty, or between January 15,
and January 20, with 1% interest (election to pay in installments ceases January
20). The second installment is due on or before July 1, payable to the County
Division of Budget and Finance.
Taxpayers may elect to pay their tax bill in full. Using this method, taxes are
collected during the period January 1 to January 31 at face value and from
February 1 to May 31 with interest added. The Town Receiver of Taxes collects
all real estate taxes for Town and County purposes. The Town Receiver
distributes the collected tax money to the Town Supervisor prior to distributing
the balance collected to the County on June 1. The Town thereby is assured of
100% tax collection. Responsibility for the collection of unpaid taxes rests with
the County. Uncollected tax liens are sold annually by the County.
F. Budgetary Data
1. Budget Policies – The budget policies are as follows:
a. No later than October 5, the budget officer submits a tentative budget to
the Town Board for the fiscal year commencing the following January 1.
The tentative budget includes proposed expenditures and the proposed
means of financing for all funds.
b. After public hearings are conducted to obtain taxpayer comments, no later
than November 20, the Town Board adopts the budget.
c. All modifications of the budget must be approved by the Town Board.
However, the Town Supervisor is authorized to transfer certain budgeted
amounts within departments.
d. Appropriations lapse at year-end.
2. Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other
commitments for the expenditure of monies are recorded for budgetary control
purposes to reserve that portion of the applicable appropriations, is employed
in all funds. Encumbrances are reported as reservations of fund balances
since they do not constitute expenditures or liabilities. Expenditures for such
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commitments are recorded in the period in which the liability is incurred. For
the year ended December 31, 2020, no budgetary encumbrances were
outstanding. In the interest of accurately monitoring, budgeting and
maintaining an adequate operating fund balance in all funds, it is the Town's
fiscal practice not to encumber unused appropriations into the ensuing year's
budgeted operations.
G. Cash and Investments
The Town of Ithaca's investment policies are governed by State statutes. In
addition, the Town of Ithaca has its own written investment policy. The Town of
Ithaca's monies must be deposited in FDIC insured commercial banks or trust
companies located within the State. The supervisor is authorized to use demand
accounts and certificates of deposit. Permissible investments include obligations
of the U.S. Treasury and U.S. Agencies, repurchase agreements, and obligations
of New York State or its localities.
Collateral is required for demand deposits and certificates of deposit not covered
by federal deposit insurance. Obligations that may be pledged as collateral are
obligations of the United States and its agencies and obligations of the State and
its municipalities and school districts.
The written investment policy requires repurchase agreements to be purchased
from banks located within the state and that underlying securities must be
obligations of the federal government and New York State. Underlying securities
must have market value of at least the cost of the repurchase agreement.
H. Accounts Receivable
Accounts receivable are shown gross, with uncollectible amounts recognized
under the direct write-off method. No allowance for uncollectible accounts has
been provided since it is believed that such allowance would not be material. All
receivables are expected to be collected within the subsequent fiscal year.
I. Due to/from Other Funds
Amounts due to and due from within the same fund type are eliminated in the
Government-wide statements. The inter-fund receivables and payables are
disclosed in Note 4 on page 30 for the year-end December 31, 2020.
J. Inventories and Prepaid Items
Purchases of inventoriable items are recorded as expenditures in the
Governmental Funds at the time of purchase. Inventory-type items are considered
immaterial and, consequently, are not provided in the Government-wide
statements.
Prepaid items represent payments made by the Town for which benefits extend
beyond year-end.
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K. Capital Assets
Capital assets are reported at historical cost. The Town depreciates capital assets
using the straight-line method over the estimated useful life of the assets.
Capitalization thresholds (the dollar value above which capital asset acquisitions
are added to the capital asset accounts) and estimated useful lives of capital assets
reported in the Government-wide statements are as follows:
Estimated
Capitalization Useful
Threshold Life
Building and improvements $ 5,000 30-40 years
Non-building improvements 5,000 15-20 years
Equipment and machinery 5,000 5-15 years
Furniture and furnishings 5,000 10 years
L. Infrastructure
The Town includes long-lived improvements to roads, water and sewer systems as
capital assets in the Government-wide statements. Infrastructures are reported at
historical costs and are depreciated using the straight-line method over their
estimated useful lives.
Capitalization thresholds and estimated useful lives for infrastructures are as
follows:
Estimated
Capitalization Useful
Threshold Life
Road systems $ 10,000 20 years
Water and sewer systems 10,000 40 years
M. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate
section for deferred outflows of resources. This separate financial statement
element, deferred outflows of resources, represents a consumption of net position
that applies to a future period(s) and so will not be recognized as an outflow of
resources (expense/expenditure) until then. The Town has two items that qualify
for reporting in this category; the deferred outflow related to pensions and OPEB
reported in the Statement of Net Position.
In addition to liabilities, the statement of net position will sometimes report a
separate section for deferred inflows of resources. This separate financial
statement element, deferred inflows of resources, represents an acquisition of net
position that applies to a future period(s) and therefore, will not be recognized as
an inflow of resources (revenue) until that time. The Town has three items that
qualifies for reporting in this category; the deferred inflow related to pensions and
OPEB reported in the Statement of Net Position and the deferred inflow related to
prepaid property taxes reported in each applicable governmental fund.
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N. Vested Employee Benefits
Employees accrue (earn) vacation leave based on the number of years employed
up to a maximum of 20 days a year. Upon separation from service, employees are
paid for unused vacation time. The liability for accrued vacation time is reflected
in the Government-wide statements as a long-term liability.
Employees accrue (earn) sick leave at the rate of one day per month and may
accumulate such credits up to a total of 120 days. Employees who retire apply
any unused sick leave to pay for individual cost employee health insurance
benefits and potentially add accumulated sick time to be credited to their service
time in the New York State Retirement System.
In addition to providing pension benefits, the Town of Ithaca provides health
insurance coverage for retired employees. Substantially all the Town's employees
may become eligible for these benefits if they reach normal retirement age while
working for the Town. Health care benefits are provided through an insurance
company whose premiums are based on the benefits paid during the year for the
community. These benefits are further discussed in Note 10.
O. Unemployment Insurance
As of January 1, 1978, Town employees are covered by unemployment insurance.
The Town has chosen to discharge its liability to the New York State
Unemployment Insurance Fund by means of the benefit reimbursement method.
This is a dollar-for-dollar reimbursement to the Unemployment Insurance Fund
for the benefits paid to former employees and charged to the Town's account. The
Town is exempt from federal unemployment insurance tax.
P. Deferred Compensation
The Town offers their employees a Deferred Compensation Plan (the Plan)
created in accordance with Internal Revenue Code Section 457. The Plan, which
is available to all eligible participants, permits participants to defer a portion of
their salary (100% of gross wages not to exceed $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.
Q. Risk Retention
The Town of Ithaca is exposed to various risks of loss related to employee injury.
During 1996 the Town established reservations of fund balance to finance certain
uninsured risks of loss in the interest of lower annual insurance costs. Claims that
will be paid from these reserves are for small employee medical claims. During
the year ended December 31, 2020, $30,813 was paid out on behalf of the
employees.
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R. Restricted Resources
When an expense is incurred for purposes for which both restricted and
unrestricted net position is available, it is the Town’s policy to apply restricted
funds before unrestricted funds, unless otherwise prohibited by legal
requirements.
S. Equity Classification
1. Government-wide Statements
Equity is classified as net position and displayed in three components:
Invested in Capital Assets, Net of Related Debt
Consists of capital assets including restricted capital assets, net of
accumulated depreciation and reduced by the outstanding balances of any
bonds, mortgages, notes or other borrowings that are attributable to the
acquisition, construction, or improvement of those assets.
Restricted Net Position
Consists of net position with constraints placed on the use either by 1)
external groups such as creditors, grantors, contributors, or laws or
regulations of other governments; or 2) law through constitutional
provisions or enabling legislation.
Unrestricted Net Position
All other net position that does not meet the definition of “restricted” or
“invested in capital assets, net of related debt.”
2. Fund Financial Statements
Classification of fund balance reflects spending constraints on resources,
rather than availability for appropriation to provide users more consistent and
understandable information about a governmental fund’s net resources.
Constraints are broken down into five different classifications: non-spendable,
restricted, committed, assigned, and unassigned. The classifications serve to
inform readers of the financial statements of the extent to which the
government is bound to honor constraints on the specific purposes for which
resources in a fund can be spent.
Governmental fund equity is classified as fund balance. In the fund basis
statements there are five classifications of fund balance:
Non-spendable Fund Balance
Consists of assets that are inherently non-spendable in the current period
either because of their form or because they must be maintained intact,
including prepaid items, inventories, long-term portions of loans
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receivable, financial assets held for resale and principal of endowments.
The Town’s non-spendable fund balance is comprised of prepaid
expenses.
Restricted Fund Balance
Consists of amounts that are subject to externally enforceable legal
purpose restrictions imposed by creditors, grantors, contributors or laws or
regulations of other governments; or imposed by law through
constitutional provisions or enabling legislation. The Town’s restricted
fund balance includes a general-purpose benefit reserve, a parks and open
space plan reserve 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.
3. Order of Use of Fund Balance
The Town’s policy is to apply expenditures against non-spendable fund
balance, restricted fund balance, committed fund balance, assigned fund
balance and unassigned fund balance at the end of the fiscal year. For all
funds, non-spendable fund balances are determined first and then
restricted fund balances for specific purposes are determined. Any
remaining fund balance amounts for funds other than the General Fund are
classified as committed or assigned fund balance. In the General Fund,
committed fund balance is determined next and then assigned fund
balance. The remaining amounts are reported as unassigned. Assignments
of fund balance cannot cause a negative unassigned fund balance.
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4. Fund Financial Statements - Restricted Fund Balance
The General Town-Wide Fund equity includes reserve funds established
for the purpose of future park development and purchasing rights as
outlined in the Town’s Open Space Plan. The balance at the end of 2020
was $1,019,192. This Reserve Fund was designated by Board Resolution
No. 170 of October 2, 1997. Interest earnings and additional funding for
the year both increased the Reserve Fund.
The General Town-Wide Fund equity includes reserve funds designated
for the maintenance of the Pine Tree Wildlife Preserve, donated to the
Town by a local family in 2013. In conjunction with the donation of the
land, the amount of $40,000 was donated to provide for future
maintenance of the preserve. As of December 31, 2020, the balance of the
reserve totaled $41,129.
In 2014, the Town purchased development rights to Indian Creek Farm
with financial assistance through a grant provided by New York State. The
grant included $10,000 to be held in reserve by the Town, designated for
future stewardship of Indian Creek Farmlands. The reserve is reflected in
the General Town-wide Fund and had a balance of $10,041 at December
31, 2020.
The Debt Reserve fund is to close the Sand Bank Road Capital Project and
move the remaining debt proceeds (from 2014 Bond issue) For the year
ended December 31, 2020, the balance of this reserve totaled $370,555.
T. Inter-fund Transfers
The operations of the Town give rise to certain transactions between funds,
including transfers to provide services and construct assets. The amounts reported
on the Statement of Revenues, Expenditures and Changes in Fund Balance-
Governmental Funds for inter-fund transfers have been eliminated for the
Statement of Activities. A detailed description of the individual fund transfers
that occurred during the year is provided subsequently in these Notes.
U. New Accounting Pronouncements
GASB Statement No. 83 “Certain Asset Retirement Obligations”
The primary objective of this Statement is to improve the timing and pattern of
recognition for liabilities and corresponding deferred outflow of resources related
to such obligations. A government that has a legal obligation to perform future
asset retirement activities related to its tangible capital assets is required to
recognize a liability and a corresponding deferred outflow of resources. The
Town adopted GASB Statement 83 for its 2020 financial statements. The
adoption did not impact the Town’s financial statements.
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GASB Statement No. 84 “Fiduciary Activities”
The primary objective of this Statement is to establish criteria for identifying
fiduciary activities of all state and local governments and clarifies whether and
how business-type activities should report their fiduciary activities. The Town
adopted GASB Statement 84 for its 2020 financial statements. The adoption did
impact the Town’s financial statements.
GASB Statement No. 88 “Certain Disclosures Related to Debt, including Direct
Borrowings and Direct Placements”
The primary objective of this Statement is to clarify which liabilities governments
should include in their note disclosures related to debt. It requires that all debt
disclosures present direct borrowings and direct placements of debt separately
from other types of debt. The Town adopted GASB Statement 88 for its 2020
financial statements. The adoption did not impact the Town’s financial
statements.
GASB Statement No. 90 “Majority Equity Interests”
The primary objective of this Statement is to clarify the accounting and financial
reporting requirements for a state or local government’s majority equity interest in
an organization that remains legally separate after acquisition. The Town adopted
GASB Statement 90 for its 2020 financial statements. The adoption did not
impact the Town’s financial statements.
The GASB has issued the following new statements:
Statement No. 87, Leases, which will be effective for the year ending
December 31, 2022.
Statement No. 89, Accounting for Interest Cost Incurred before the End of
a Construction Period, which will be effective for the year ending
December 31, 2021.
Statement No. 91, Conduit Debt Obligations, which will be effective for
the year ending December 31, 2022.
Statement No. 93, Replacement of Interbank Offered Rates, which will be
effective for the year ending December 31, 2022.
Statement No. 94, Public-Private and Public-Public Partnerships and
Availability Payment Arrangements, which will be effective for the year
ending December 31, 2023.
Statement No. 96, Subscription-Based Information Technology
Arrangements, which be effective for the year ending December 31, 2023.
Statement No. 97, Certain Component Unit Criteria, and Accounting and
Financial Reporting for Internal Revenue Code Section 457 Deferred
Compensation Plans, which will be effective for the year ending
December 31, 2022.
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The Town is currently reviewing these statements and plans on adoption, as
required.
Non-Cash Capital and Related Financing Activities - Proprietary Funds
The Water Fund recorded debt and a receivable of $1,470,750 related to the Town
of Ithaca’s proportionate share of bond liabilities related to the Southern Cayuga
Intermunicipal Water Commission. This activity is not reflected in the Statement
of Cash Flows for Proprietary Funds.
In 2020, the Water Fund acquired capital assets totaling $922,880 with the
proceeds of debt. This activity is not reflected in the Statement of Cash Flows for
Proprietary Funds.
NOTE 2 – EXPLANATION OF CERTAIN DIFFERENCES BETWEEN GOVERNMENTAL
FUND STATEMENTS AND GOVERNMENT-WIDE STATEMENTS
Due to the differences in the measurement focus and basis of accounting used in the
governmental fund statements and the Government-wide statements, certain financial
transactions are treated differently. The differences result primarily from the economic
focus of the Statement of Activities, compared with the current financial resources focus
of the Governmental Funds.
A. Total Fund Balances of Governmental Funds vs. Net Position of Governmental
Activities:
Total fund balances of the Town’s governmental funds differ from “net position”
of governmental activities reported in the Statement of Net Position. This
difference primarily results from the additional long-term economic focus of the
Statement of Net Position versus the solely current financial resources focus of
the Governmental Fund Balance Sheet.
B. Explanation of Difference between Governmental Funds Operating Statement and
the Statement of Activities:
Differences between the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balance and the Statement of Activities fall
into one of five broad categories. The amounts shown below represent these
differences as follows:
Long-term revenue differences arise because Governmental Funds report
revenues only when they are considered “available,” whereas the Statement of
Activities reports revenues when earned. Differences in long-term expenses
arise because Governmental Funds report on a modified accrual basis,
whereas the accrual basis of accounting is used on the Statement of Activities.
Capital related differences include the difference between proceeds for the
sale of capital assets reported on Governmental Fund Statements and the gain
or loss on the sale of assets as reported on the Statement of Activities, and the
difference between recording an expenditure for the purchase of capital items
in the Governmental Fund Statements and depreciation expense on those
items as recorded in the Statement of Activities.
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Long-term debt transaction differences occur because proceeds from the
issuance of new debt including any premiums and both interest and principal
payments are recorded as revenues and expenditures, respectively in the
Governmental Fund statements, whereas proceeds and premiums on debt
issued are recorded as additions of liabilities in the Statement of Net Position
and 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.
Pension transaction differences occur because payments for pension expenses
are reported in the Governmental Fund Statements as they are due whereas the
expense and liability are adjusted yearly based on the information provided by
the NYS retirement system in the respective Statement of Activities and
Statement of Net Position.
Other post-employment benefit payments are reported in the Governmental
Fund Statements are they are due whereas in the Statement of Activities, an
expense is recognized based on an actuarial estimate of the current year cost
associated with amortizing the estimated present value of future benefits over
a thirty-year period.
The basic financial statements contain a detailed reconciliation of 1) the items
creating the differences between fund balance reported in the Governmental Fund
Statements and net position reported on the Statement of Net Position and 2) the
items creating the differences between the change in fund balance reported in the
Governmental Fund Statements and the change in net position reported in the
Statement of Activities.
NOTE 3 – CASH
The Town of Ithaca’s investment policies are governed by State statutes, as previously
described in these Notes. Deposits are valued at cost- or cost-plus interest and are
categorized as either:
1. Insured or collateralized with securities held by the entity or by its agent in the
entity’s name;
2. Collateralized with securities held by the pledging financial institution’s trust
department or agency in the entity’s name; or
3. Uncollateralized.
Total financial institution (bank) balances at December 31, 2020, per the bank, were
$21,955,706.
1 2 3
Governmental funds $ 15,661,016 $ - $ -
Enterprise funds $ 6,084,768 $ - $ -
Agency funds $ 209,922 $ - $ -
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NOTE 4 – INTER-FUND ACTIVITY
Inter-fund receivables and payables at December 31, 2020, were as follows:
Inter-Fund Inter-Fund
Fund Type Receivables Payables
General town-wide -$ -$
Highway - -
Water 6,501 -
Sewer - -
Capital projects - -
Non-major - 6,501
6,501$ 6,501$
Inter-fund revenues and expenditures at December 31, 2020, were as follows:
Inter-Fund Inter-Fund
Fund Type Revenues Expenditures
General town-wide 621,900$ 561,183$
General part-town - 92,450
Highway town-wide - 31,350
Highway part-town - 408,329
Water 167,103 224,650
Sewer - 191,350
Capital projects 432,788 537,659
Risk retention 28,500 -
Non-major 796,680 -
2,046,971$ 2,046,971$
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NOTE 5 – CAPITAL ASSETS
Capital asset balances and activity for the year ended December 31, 2020, were as
follows:
Beginning Disposals & Ending
Balance Additions Reclassifications Balance
Governmental Funds
Capital Assets that are
not Depreciated:
Land 749,233$ 170,600$ -$ 919,833$
Construction in progress 696,734 65,068 599,268 162,534
Total Non-Depreciable
Historical Cost 1,445,967 235,668 599,268 1,082,367
Capital Assets that are
Depreciated:
Buildings 5,048,915 1,703,170 -6,752,085
Equipment and machinery 6,325,680 329,397 345,926 6,309,151
Furniture and furnishings 209,179 - - 209,179
Non-building improvements 1,024,060 - - 1,024,060
Infrastructures 7,039,077 1,936,070 -8,975,147
Total Depreciable Historical
Cost 19,646,911 3,968,637 345,926 23,269,622
Less Accumulated Depreciation:
Buildings 2,229,959 150,208 -2,380,167
Equipment and machinery 3,964,288 517,863 291,334 4,190,817
Furniture and furnishings 207,150 786 -207,936
Non-building improvements 469,954 42,479 -512,433
Infrastructures 1,701,263 304,805 -2,006,068
Total Accumulated
Depreciation 8,572,614 1,016,141 291,334 9,297,421
Total Historical Cost, net 12,520,264$ 3,188,164$ 653,860$ 15,054,568$
Depreciation was charged to governmental functions as follows:
General government support 69,958$
Transportation 726,212
Culture and recreation 159,693
Home and community services 60,278
Total Depreciation Expense 1,016,141$
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Beginning Disposals & Ending
Balance Additions Reclassifications Balance
Enterprise Funds
Capital Assets that are
not Depreciated:
Construction in progress 1,407,661$ 1,101,883$ 1,407,361$ 1,102,183$
Capital Assets that are
Depreciated:
Equipment and machinery 1,330,784 137,684 - 1,468,468
Infrastructures 20,418,215 1,667,638 - 22,085,853
Total Depreciable Historical
Cost 21,748,999 1,805,322 - 23,554,321
Less Accumulated Depreciation:
Equipment and machinery 509,196 189,244 - 698,440
Infrastructures 3,777,869 529,240 - 4,307,109
Total Accumulated
Depreciation 4,287,065 718,484 - 5,005,549
Total Historical Cost, net 17,461,934$ 1,086,838$ -$ 18,548,772$
Sewer fund 183,004$
Water fund 535,481
Total Depreciation Expense 718,485$
NOTE 6 – LIABILITIES
A. Pension Plans
Plan Description
The Town of Ithaca participates in the New York State and Local Employees’
Retirement System (ERS) and the Public Employees’ Group Life Insurance Plan
(Systems). These are cost-sharing multiple-employer retirement systems. The
Systems provide retirement benefits as well as death and disability benefits.
Obligations of employers and employees to contribute and benefits to employees
are governed by the New York State Retirement and Social Security Law
(NYSRSSL). As set forth in the NYSRSSL, the Comptroller of the State of New
York (Comptroller) serves as sole trustee and administrative head of the Systems.
The Comptroller shall adopt and may amend rules and regulations for the
administration and transaction of the business of the Systems and for the custody
and control of their funds. The Systems issue a publicly available financial report
that includes financial statements and required supplementary information. That
report may be obtained by writing to the New York State and Local Retirement
Systems, Gov. Alfred E. Smith State Office Building, Albany, NY 12244.
Funding Policy
The Systems are noncontributory except for employees who joined the New York
State and Local Employees’ Retirement System after July 27, 1976 who
contribute 3% of their salary for their first 10 years in the system, and employees
who joined on or after January 1, 2010 who generally contribute 3% percent of
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their salary for their entire length of service. Under the authority of the
NYSRSSL, the Comptroller shall certify annually the rates expressed as
proportions of member payroll and employer contributions, used in computing the
contributions required to be made by employers to the pension accumulation fund.
Chapter 126 adds Article 19 "Benefits Enhancements" of the New York State and
Local Employees Retirement System. An Eligible Tier III or IV member with ten
or more years of membership or ten years credited service will not be required to
contribute to the Retirement System. Effective in 2000, the Town adopted
Section 41j of the Retirement System. This allows a retiring municipal employee
to add service credit by using accumulated sick time.
The Town of Ithaca is required to contribute at an actuarially determined rate.
The required contributions for the current year and four preceding years were:
ERS
2020 523,280$
2019 511,062
2018 489,081
2017 459,827
2016 513,481
Town contributions made to the Systems were equal to 100% of the contributions
required for each year. Since 1989, the Systems’ billings have been based on
Chapter 62 of the Laws of 1989 of the State of New York. This legislation
requires participating employers to make payments on a current basis, while
amortizing existing unpaid amounts relating to the Systems’ fiscal years ended
March 31, 1988 and 1989 (which otherwise were to have been paid on June 30,
1989 and 1990, respectively) over a 17-year period, with an 8.75% interest factor
added. Local governments were given the option to prepay this liability. The
Town’s total unpaid liability at the end of 2020 fiscal year was $0.
a. Southern Cayuga Lake Intermunicipal Water Commission Pension Plan
The Southern Cayuga Lake Intermunicipal Water Commission’s payroll is
prepared through the Town of Ithaca, resulting in the New York State and
Local Retirement Plan billings being a combination of the Town’s and the
Water Commission’s. The Water Commission is remitted along with the
Town’s share.
Pension Liabilities and Deferred Outflows and Inflows of Resources Related
to Pensions
At December 31, 2020, the Town reported the following liability for its
proportionate share of the net pension liability for the Systems. The net pension
liability was measured as of March 31, 2020. The total pension liability used to
calculate the net pension liability was determined by an actuarial valuation.
Measurement date
Net pension liability 3,535,559$
Town’s portion of the Plan’s total net pension liability 0.013352%
Change in proportionate share since prior measurement date -0.001249%
March 31, 2020
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At year end December 31, 2020, the Town recognized pension expenses of
$1,242,419. The Town reported deferred outflows of resources related to pensions
from the following sources:
Deferred
Outflows of
Resources
Differences between expected and actual experience 208,083$
Changes of assumptions 71,189
Net difference between projected and actual
investment earnings on pension plan investments 1,812,501
Changes in proportion and differences between
employer contributions and proportionate share of
contributions 87,859
Employer contributions subsequent to the measurement date 523,280
Total 2,702,912$
The Town reported deferred inflows of resources related to pensions from the
following sources:
Deferred
Inflows of
Resources
Differences between expected and actual experience -$
Changes of assumptions 61,471
Net difference between projected and actual
investment earnings on pension plan investments -
Changes in proportion and differences between
employer contributions and proportionate share of
contributions 34,652
Total 96,123$
The Town’s contributions subsequent to the measurement date for the Plans
amounted to $523,280.
The Town’s contributions subsequent to the measurement date will be recognized
as a reduction of the net pension liability in the year ended December 31, 2021.
The Town’s balances of deferred outflows and inflows of resources related to
pension will be recognized in the pension expense as follows:
2021 367,469$
2022 525,149
2023 660,996
2024 529,894
Total 2,083,508$
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Actuarial Assumptions
The Town’s total pension liability as of the measurement date was determined by
using an actuarial valuation as of April 1, 2019, with updated procedures used to
roll forward the total pension liability to March 31, 2020. The actuarial
valuations used the following actuarial assumptions:
Actuarial cost method
Inflation
Investment rate of return
Salary scale
Projected COLAs
Decrement tables
4.2%
04/01/10-03/31/15
System’s experience
1.3%
Entry age normal
2.5%
6.8%
Annuitant mortality rates are based on April 1, 2010 – March 31, 2015 System’s
experience with adjustments for mortality improvements based on the Society of
Actuaries Scale MP-2014.
The Town’s long-term rate of return on pension plan investments was determined
using a building block method in which best estimate ranges of expected future
real rates of return (expected returns net of investment expense and inflation) are
developed for each major asset class. These ranges are combined to produce the
long-term expected rate of return by weighting the expected future real rates of
return by each of the target asset allocation percentages and by adding expected
inflation. Best estimates of the arithmetic real rates of return for each major asset
class included in the target asset allocation at the valuation date of March 31,
2020 are as follows:
Domestic equity 36% 4.05%
International equity 14% 6.15%
Private equity 10% 6.75%
Real estate 10% 4.95%
Absolute return strategies 2% 3.25%
Opportunistic portfolio 3% 4.65%
Real assets 3% 5.95%
Bonds and mortgages 17% 0.75%
Cash 1% 0.00%
Inflation-indexed bonds 4% 0.50%
100%
Asset Class Target Allocation
Long-Term
Expected Real
Rate of Return
- 36 -
Discount rate
The discount rate used to calculate the total pension liability was 6.8%. The
projection of cash flows used to determine the discount rate assumes that the
contributions from plan members will be made at the current contributions rates
and that contributions from employers will be made at statutorily required rates,
actuarially determined. Based upon the assumptions, the System’s fiduciary net
position was projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long term expected rate of
return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
Sensitivity of the Proportionate Share of the Net Pension Liability to the
Discount Rate Assumption
The following tables present the Town’s proportionate share of the net pension
liability/(asset) calculated using the discount rate of 6.8%, as well as what the
Town’s proportionate share of the net pension liability would be if it were
calculated using a discount rate that is one percentage point lower (5.8%) or one
percentage point higher (7.8%) than the current rate:
1% Decrease
(5.8%)
Current
Assumption
(6.8%)
1% Increase
(7.8%)
Town’s proportionate share of
the net pension (asset)/liability 6,488,754$ 3,535,559$ 815,659$
Pension Plan Fiduciary Net Position
The components of the current-year net pension liabilities of the employers as of
March 31, 2020 were as follows:
Employers’ total pension liability
Fiduciary net position
Employers’ net pension liability
Ratio of Plan net position to the
employers’ total pension asset/(liability) 86.39%
(194,596,261,000)$
168,115,682,000
( 26,480,579,000)$
B. Short-Term Debt
Liabilities for bond anticipation notes (BANs) are generally accounted for in the
Capital Projects Fund. The notes or renewal thereof may not extend more than
five years beyond the original date of issue unless a portion is redeemed within
five years and within each 12-month period thereafter. For short-term financing,
the Town of Ithaca redeems (pays down) one-fifth (1/5) of the original BAN
borrowing.
State law requires that BANs issued for capital purposes be converted to long-
term obligations within five years after the original issue date. However, BANs
- 37 -
issued for assessable improvement projects may be renewed for period’s
equivalent to the maximum life of the permanent financing, provided that
stipulated annual reductions of principal are made.
As of December 31, 2020, temporary financing in outstanding bond anticipation
notes totaled $0.
C. Long-Term Debt
Bonds: The Town of Ithaca borrows money in order to acquire land or equipment
or construct buildings and improvements. This enables the cost of these capital
assets to be borne by the present and future taxpayers.
At December 31, 2020, the total principal indebtedness outstanding of the Town
of Ithaca aggregated $15,965,750. Of this amount, $3,301,245 was subject to the
Town’s constitutional debt limit and represented 3.15% of the Town’s debt limit.
Further calculations disclosed that the Town of Ithaca meets the 7% indebtedness
requirement and has not exhausted its borrowing and repayment abilities.
The following is a summary of the Town of Ithaca’s outstanding serial bonds for
the year ended December 31, 2020:
Original
Date Original Interest Maturity Outstanding
Description of Issue Amount Rate Date(s) 12/31/2020
General Townwide Fund:
2013 Public Improvement 8/1/13 790,000 2.25% 8/1/23 284,000$
2020 Refunding Bond 9/3/20 26,250 5.00% 8/15/21 26,250
Water Fund:
2013 Public Improvement 8/1/13 1,420,000 2.25% 8/1/23 704,000
2014 Public Improvement 12/30/14 950,000 2.00% 12/15/29 1,325,000
2014 Refunding Bond 12/30/14 910,000 2.00% 5/15/24 380,000
2015 Public Improvement 11/13/15 2,150,000 2.00% 10/15/30 1,512,000
2018 Public Improvement 12/6/18 4,150,000 2.99% 12/1/33 3,700,000
2020 Public Improvement 9/3/20 2,079,630 5.00% 8/15/35 2,079,630
2020 Refunding Bond 9/3/20 1,493,125 5.00% 8/15/24, 8/15/31 1,493,125
SCLIWC serial bonds various 3,763,000 various various 1,470,750
Highway Fund:
2013 Public Improvement 8/1/13 1,240,000 2.25% 8/1/23 567,000
2014 Public Improvement 12/30/14 950,000 2.00% 12/15/29 570,000
2015 Public Improvement 11/13/15 800,000 2.00% 10/15/30 563,000
2020 Public Improvement 9/3/20 1,260,370 5.00% 8/15/35 1,260,370
2020 Refunding Bond 9/3/20 30,625 5.00% 8/15/21 30,625
Total Serial Bonds
Payable 15,965,750$
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Interest on long-term debt paid during the year was:
Interest paid 348,576$
Add interest accrued - current year 106,243
Less interest accrued - prior year ( 68,172)
386,647$
Interest expense has been allocated to the following governmental functions:
General 2,872$
Transportation 73,786
76,658$
Interest expense has been allocated to the following enterprise funds:
Water fund 309,989$
Long-term liability balances and activity for the year are summarized below:
Beginning Ending
Governmental Funds Balance Additions Reductions Balance
Serial bonds 2,417,000$ 1,317,245$ ( 433,000)$ 3,301,245$
Total serial bonds 2,417,000 1,317,245 ( 433,000) 3,301,245
Other liabilities:
Compensated absences 161,941 - 19,781 181,722
Net pension liability 837,218 2,407,612 - 3,244,830
Other post-employment
benefits 6,787,798 1,747,686 - 8,535,484
Total long-term liabilities 10,203,957$ 5,472,543$ ( 413,219)$ 15,263,281$
Beginning Ending
Enterprise Funds Balance Additions Reductions Balance
Serial bonds 10,153,000$ 3,572,756$ (2,532,000)$ 11,193,756$
SCLIWC serial bonds 1,571,450 - ( 100,700) 1,470,750
Total serial bonds and
bond anticipation notes 11,724,450 3,572,756 (2,632,700) 12,664,506
Other liabilities:
Compensated absences 21,180 602 - 21,782
Net pension liability 69,493 221,236 - 290,729
Other post-employment
benefits 784,346 208,752 - 993,098
Total long-term liabilities 12,599,469$ 4,003,346$ (2,632,700)$ 13,970,115$
Activity for compensated absences is shown at net due to the impracticability of
determining these amounts separately. Payments of compensated absences are
dependent upon future factors and, therefore, the timing of such payments cannot
- 39 -
be determined. Compensated absences are reflected as a long-term liability in the
Statement of Net Position.
The following is a summary of the maturity of total long-term indebtedness
(excluding SCLIWC bonds):
Serial Bonds Year Principal Interest Total
2021 1,415,000$ 440,039$ 1,855,039$
2022 1,375,000 400,288 1,775,288
2023 1,420,000 356,571 1,776,571
2024 1,270,000 309,996 1,579,996
2025 1,090,000 268,528 1,358,528
2026-2030 5,505,000 763,921 6,268,921
2031-2035 2,420,001 141,400 2,561,401
Total Serial Bonds 14,495,001$ 2,680,743$ 17,175,744$
There was no long-term debt that has been authorized and unissued at December
31, 2020.
NOTE 7 – DEBT: SOUTHERN CAYUGA LAKE INTERMUNICIPAL WATER COMMISSION
(SCLIWC)
Per agreement, the Town of Ithaca is a joint obligor of debt used to fund the capital
activities of the Southern Cayuga Lake Intermunicipal Water Commission (SCLIWC).
The Town has recorded a liability for due to other governments in the Water Fund of
$1,475,750 representing the Town’s approximate 53% share of the total outstanding
serial bond debt associated with SCLIWC as of December 31, 2020. Historically, and
consistent with the cooperative agreement of the SCLIWC participating municipalities,
the repayment of SCLIWC debt and related interest has been funded through user fees
charged by the Water Commission. Accordingly, the Water Fund reflects a receivable
(due from other governments) of $1,470,750 at December 31, 2020 which reflects the
anticipated debt principal payments to be made by SCLIWC.
The following reflects information related to the total serial bond debt for SCLIWC at
December 31, 2020:
Date Original Date of Outstanding
Description of Issue Amount I/R Final Maturity 12/31/2020
Joint Water
Improvement 4 10/5/2012 2,600,000 2% - 3% 9/5/2032 1,705,000$
Joint Water
Improvement 5 6/12/2013 1,500,000 3% - 3.25% 6/1/2033 1,070,000
Total Serial Bonds 2,775,000$
- 40 -
The following is a summary of the maturity of total long-term indebtedness for SCLIWC
debt:
Year Principal Interest Total
Serial Bonds 2021 190,000$ 76,788$ 266,788$
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
2026-2033 1,760,000 221,713 1,981,713
Total Serial Bonds 2,775,000$ 557,445$ 3,332,445$
NOTE 8 – UNRESTRICTED BALANCES
Of the $10,122,602 in unrestricted net position, $3,174,714 has been appropriated by the
Town for 2021 expenditures.
NOTE 9 – USE OF ESTIMATES
Management uses estimates and assumptions in preparing financial statements. Those
estimates and assumptions affect the reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities, and the reported revenues and expenses.
Actual results could differ from those estimates.
NOTE 10 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
Plan Description - The Town of Ithaca administers a single-employer defined benefit
healthcare plan (“the Retiree Health Plan”). The plan provides lifetime healthcare
insurance for eligible retirees and their spouses through the Town’s group health
insurance plan, which covers both active and retired members. The Town pays a portion
of retirees’ premiums for healthcare insurance based on the number of years of service to
the Town at the time of retirement.
In addition, retiring employees can convert unused sick time to offset portions of
healthcare premiums that are the retiree’s responsibility. The Town tracks the
accumulated balances and makes premium payments on behalf of the retirees until the
balances are exhausted.
The Retiree Health Plan does not issue a publicly available financial report.
Employees Covered by Benefit Terms
At December 31, 2020 the following employees were covered by the benefit terms:
Inactive employees and beneficiaries 18
Active employees 59
Total 77
- 41 -
Funding Policy
The Town contributes a portion of the retiree’s healthcare premium according to the
following schedule. For employees whose most recent date of hire is prior to 1/1/2015,
the following percentages apply:
Years of Town
Service Contribution
30 and over 75.0%
25-29 50.0%
15-24 35.0%
5-14 20.0%
less than 5 0.0%
For employees who were hired on or after 1/1/2015, the following percentages apply:
Years of Town
Service Contribution
30 and over 50.0%
25-29 35.0%
10-24 20.0%
less than 10 0.0%
The OPEB Liability
The Town’s total OPEB Liability of $9,528,582 was measured as of January 1, 2020 and
was determined by an actuarial valuation as of January 1, 2020.
Actuarial Methods and Assumptions
The actuarial valuation used the following actuarial assumptions:
Actuarial cost method
Salary increase
Discount rate
Rate of inflation
Premium trend
subsequent reductions and an ultimate rate of
3.94% in 2089
6.25% for 2021, 6.00% in 2022, with
2.2%
Entry Age Normal
4.0%
2.74%
The discount rate used was Bond Buyer Weekly 20-Bond index.
Mortality rates were based on the sex-distinct RPH-2014 Mortality Tables for employees
and healthy annuitants, adjusted backward to 2006 with scale MP-2014, and then
adjusted for mortality improvements with scale MP-2017 mortality improvement scale on
a fully generational basis. This assumption was based on a review of published mortality
tables and the demographics of the Plan.
- 42 -
Changes in the total OPEB Liability
Service cost 218,429$
Interest 317,115
Changes of benefit terms -
Differences between expected and actual experience 266,624
Changes of assumptions or other inputs 1,262,742
Benefit payments ( 108,472)
Net change in total OPEB Liability 1,956,438
Total OPEB Liability - Beginning of year 7,572,144
Total OPEB Liability - End of year 9,528,582$
Changes of assumptions and other inputs reflect the effects of changes in the discount
rate each period. The discount rate in effect at the current measurement date is 2.74%.
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 1 percentage
point lower (1.74%) or 1 percentage point higher (3.74%) than the current discount rate:
Total OPEB Liability 11,164,230$ 9,528,582$ 8,199,647$
1% Decrease
(1.74%)
Current
(2.74%)
1% Increase
(3.74%)
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 Town’s
total OPEB liability would be if it were calculated using healthcare cost trend rates that
are 1 percentage point lower (5.25-2.94%) or 1 percentage point higher (7.25-4.94%)
than the current healthcare cost trend rate:
1% Decrease
Current Trend
Rates 1% Increase
Total OPEB Liability 7,982,797$ 9,528,582$ 11,505,601$
- 43 -
OPEB Expense and Deferred Outflows of Resources Related to OPEB
For the year ended December 31, 2020, the Town recognized OPEB expense of
$708,217. At December 31, 2020, the Town reported deferred outflows and inflows of
resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience 227,241$ -$
Changes of assumptions or other inputs 1,306,146 555,259
Contributions made after measurement date
(including implicit subsidy) 134,283 -
1,667,670$ 555,259$
The Town’s balances of deferred outflows resources related to pension will be recognized
in OPEB expense as follows:
2021 172,674$
2022 172,674
2023 172,674
2024 172,674
2025 119,601
2026 and Thereafter 166,229
976,526$
NOTE 11 – POLLUTION REMEDIATION CONTINGENT OBLIGATION
In 2009, a site commonly known as the Ithaca Area Wastewater Treatment Plant
(IAWTP), which is jointly owned and operated by the City of Ithaca and the Towns of
Ithaca and Dryden, was listed as a site under CERCLA for hydrocarbon contamination
(coal-tar). The City of Ithaca was sued by First Energy (parent company of New York
State Electric & Gas) for $750,000 in remediation costs. The Town of Ithaca and Dryden
voluntarily joined in defense of this lawsuit. In 2010 an out-of-court settlement was
reached in the amount of $284,249, of which the Town of Ithaca is liable for $80,000,
payable over a ten-year period. At December 31, 2020, the remaining liability totaled $0.
- 44 -
NOTE 12 – TAX ABATEMENTS
The Town of Ithaca negotiates property tax abatement agreements on an individual basis.
The Town of Ithaca has tax abatement agreements with five entities as of December 31,
2020:
Amount of Amount of Percentage
Total Taxes Taxes of Taxes
Due During Abated Abated
the Fiscal during the during the
Purpose Year Fiscal Year Fiscal Year
227,564$ 96,505$ 42%
26,341 2,783 11%
17,395 525 3%
24,850 5,853 24%
21,197 2,868 14%
Acquire, construct and equip a new
residential campus for student housing.
Purchase of housing development fund
company and continuation to conform to
requirements for low income housing.
Acquiring title to acres of vacant land and
maintain and operate solely as a housing
project for persons of low income.
Construction of new brewing facility,
welcome center and brew pub.
Construction of new business facility in
which a leasehold interest will be applied.
Each agreement was negotiated under the Real Property Tax Law of the State of New
York allowing localities to abate property taxes for a variety of purposes, including
acquiring and constructing a new residential campus for student housing, maintaining and
operating housing for persons of low income, construction of a new brewing facility, and
maintaining and operating a facility to benefit the citizens of Tompkins County, New
York. The taxes were originally based on the assessed value of the property and through
PILOT Agreements have been reduced to an agreed upon value for the given year. If
each individual agreement is met based on the conditions set, taxes will continue to be
abated each year.
The Town of Ithaca has not made any commitments as part of the agreements other than
to reduce taxes. The Town of Ithaca is not subject to any tax abatement agreements
entered by other governmental agencies. The Town of Ithaca has chosen to disclose
information about its tax abatement agreements individually. There was no established
quantitative threshold of the total dollar amount of taxes abated during the year.
NOTE 13 – LEASE ARRANGEMENTS
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.
- 45 -
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 $820 per month. The term is for three years and expires on August 31,
2023.
Commencing on November 21, 2017, the Town and Independent Wireless One Leased
Realty Corporation automatically renewed their existing lease for two remaining
successive five-year renewal terms, unless written notice is provided with intention not to
renew at least 90 days prior to the expiration of the renewal term then in effect.
The future minimum rental income payments are as follows:
2021 133,753$
2022 131,890
2023 129,209
2024 125,646
2025 81,146
Thereafter 67,292
668,936$
Total rental income for the year ended December 31, 2020 was $125,468.
NOTE 14 – RISKS AND UNCERTAINTIES
Despite the COVID-19 pandemic, the Town was able to remain open and provide
services as needed. As the situation evolves, the Town continues to closely monitor the
impact of the COVID-19 pandemic on all aspects of the organization including how it
impacts customers, vendors, and employees, in addition to how the COVID-19 pandemic
impacts the Town’s ability to provide services to customers. The ultimate impact of the
COVID-19 pandemic on operating results, cash flows and financial condition is likely to
be determined by factors which are uncertain, unpredictable, and outside of the Town’s
control at this time. The situation surrounding COVID-19 remains fluid, and if
disruptions do arise, they could materially adversely impact the Town.
NOTE 15 – SUBSEQUENT EVENTS
Subsequent events were evaluated through October 28, 2021, which is the date the
financial statements were available to be issued, and no events required disclosure.
See independent auditor’s report.
- 46 -
TOWN OF ITHACA
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS
December 31, 2020
2020 2019 2018
Service cost 218,429$ 262,410$ 230,892$
Interest 317,115 278,914 273,690
Changes of benefit terms - - -
Differences between expected and actual experience 266,624 - -
Changes of assumptions or other inputs 1,262,742 ( 777,965) 403,479
Benefit payments ( 108,472) ( 73,511) ( 70,717)
Net change in total OPEB Liability 1,956,438 ( 310,152) 837,344
Total OPEB Liability - Beginning of year 7,572,144 7,882,296 7,044,952
Total OPEB Liability - End of year 9,528,582$ 7,572,144$ 7,882,296$
Covered payroll over measurement period 4,070,139$ 4,009,564$ 3,358,129$
Total OPEB liability as a percentage of covered payroll 234% 189% 235%
Changes of assumptions and other inputs reflect the effects of changes in the discount rate each period.
The discount rate in effect at the current measurement date is 2.74%.
See independent auditor’s report.
TOWN OF ITHACA
SCHEDULE OF REVENUES AND EXPENDITURES
COMPARED TO BUDGET
MAJOR FUNDS
For the Year Ended December 31, 2020
Original Original
Budget Actual Budget Actual
Revenues:
Real property taxes 3,036,000$ 3,039,877$ 2,266,000$ 2,246,000$
Real property tax items 59,000 64,693 10,500 19,431
Nonproperty tax items 2,015,000 1,576,290 1,300,000 1,766,610
Departmental income 235,750 156,433 - 153,000
Intergovernmental charges 103,480 95,043 10,000 22,977
Interest income 112,000 83,845 50,000 44,650
Rental income 78,800 125,468 - -
Licenses and permits 10,000 9,371 - -
Fines and forfeitures 225,000 156,173 - -
Sale of property and compensation
for loss - 2,882 40,000 129,270
Local sources 50,000 167,445 - 1,927
State and federal sources 337,650 383,106 120,000 106,139
Total Revenues 6,262,680 5,860,626 3,796,500 4,490,004
Other Sources:
Interfund transfers 636,900 650,400 - -
Proceeds of obligations 1,400,000 - - -
Appropriated fund balance 472,047 - ( 144,733) -
Total Revenues and Other
Sources 8,771,627 6,511,026 3,651,767 4,490,004
Expenditures:
General governmental support 2,253,950 1,871,173 111,955 89,759
Public safety 92,234 72,232 - -
Transportation 2,017,000 528,772 2,513,758 1,755,094
Culture and recreation 1,377,448 1,029,027 - -
Home and community services 1,363,850 1,118,368 - -
Employee benefits 1,450,800 1,284,023 590,875 496,913
Total Expenditures 8,555,282 5,903,595 3,216,588 2,341,766
Other Uses:
Interfund transfers 216,345 653,633 435,179 439,679
Total Expenditures and
Other Uses 8,771,627 6,557,228 3,651,767 2,781,445
Excess of Revenues
over Expenditures - ( 46,202) - 1,708,559
Fund Balance, beginning of year 6,025,352 6,025,352 4,208,658 4,208,658
Fund Balance, end of year 5,553,305$ 5,979,150$ 4,353,391$ 5,917,217$
GENERAL HIGHWAY
- 47 -
Original
Budget Actual
3,216,000$ 3,212,131$
- -
- -
- -
- -
60,000 29,999
- -
- -
- -
- -
- -
20,000 32,810
3,296,000 3,274,940
- -
- -
219,000 -
3,515,000 3,274,940
5,000 2,145
3,510,000 3,782,345
- -
- -
- -
- -
3,515,000 3,784,490
- -
3,515,000 3,784,490
- ( 509,550)
1,807,883 1,807,883
1,588,883$ 1,298,333$
FIRE
See independent auditor’s report.
TOWN OF ITHACA
SCHEDULE OF THE TOWN’S PROPORTIONATE SHARE OF THE NET PENSION
LIABILITY
2020 2019
Proportion of the net pension liability 0.013% 0.013%
Proportionate share of the net pension liability 3,535,559$ 906,711$
Covered-employee payroll 4,101,843$ 4,027,319$
Proportionate share of the net pension liability
as a percentage of its covered-employee payroll 86.19% 22.51%
Plan fiduciary net position as a percentage of the total
pension liability 86.4% 96.3%
- 48 -
2018 2017 2016 2015
0.012% 0.011% 0.011% 0.015%
390,624$ 1,036,325$ 1,834,200$ 387,122$
3,773,421$ 3,444,677$ 3,256,757$ 3,310,664$
10.35% 30.08% 56.32% 11.69%
98.2% 94.7% 90.7% 97.9%
See independent auditor’s report.
TOWN OF ITHACA
SCHEDULE OF THE TOWN’S PENSION CONTRIBUTIONS
2020 2019
Contractually required contribution 523,280$ 511,062$
Contributions in relation to the contractually required
contribution 523,280 511,062
Contribution deficiency (excess) -$ -$
Covered-employee payroll 4,180,851$ 4,070,139$
Contributions as a percentage of covered-employee payroll 12.52% 12.56%
- 49 -
2018 2017 2016 2015
489,081$ 459,827$ 513,481$ 548,770$
489,081 459,827 513,481 548,770
-$ -$ -$ -$
4,000,148$ 3,670,571$ 3,397,458$ 3,381,971$
12.23% 12.53% 15.11% 16.23%
See independent auditor’s report.
- 50 -
TOWN OF ITHACA
CAPITAL PROJECTS FUND
DETAILED BALANCE SHEET
December 31, 2020
Active Projects
State Route Gateway PWF
96B Sidewalk Trail Expansion Total
Assets:
Cash in savings 1$ 1$ 1$ 3$
Cash in short-term investments 28,948 44,140 112,073 185,161
Accounts receivable 165,000 - - 165,000
Due from state/federal gov't 175,404 - - 175,404
369,353 44,141 112,074 525,568
Total Assets 369,353$ 44,141$ 112,074$ 525,568$
Liabilities:
Accrued liabilities -$ 1,483$ 93,316$ 94,799$
Total Liabilities - 1,483 93,316 94,799
Fund Balance:
Committed fund balance 369,353 42,658 18,758 430,769
Total Fund Balance 369,353 42,658 18,758 430,769
Total Liabilities
and Fund Equity 369,353$ 44,141$ 112,074$ 525,568$
LIABILITIES AND FUND BALANCE
ASSETS
See independent auditor’s report.
TOWN OF ITHACA
CAPITAL PROJECTS FUND
DETAILED REVENUES AND EXPENDITURES
For the Year Ended December 31, 2020
Active Projects
State Route Gateway PWF
96B Sidewalk Trail Expansion
Revenue:
Interest earnings 1,806$ 312$ 468$
Interfund transfers 279,768 - 153,020
State and federal grants 1,068,782 ( 11,624) -
Contributions 165,000 - -
Premium on bonds - - 164,707
Bond proceeds - - 1,260,370
Total Revenue 1,515,356$ ( 11,312)$ 1,578,565$
Expenditures:
Design -$ 15,748$ -$
General construction contract 1,416,426 - 1,559,807
Transfers to other funds - - -
Total Expenditures 1,416,426$ 15,748$ 1,559,807$
- 51 -
Total for
all Closed
Projects Total
3,087$ 5,673$
- 432,788
- 1,057,158
- 165,000
- 164,707
- 1,260,370
3,087$ 3,085,696$
-$ 15,748$
- 2,976,233
537,659 537,659
537,659$ 3,529,640$
Closed Projects
See independent auditor’s report.
- 52 -
TOWN OF ITHACA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2020
Federal Assistance:
Federal Grantor/Pass- Federal
Through CFDA Pass-Through 2020 Federal
Grantor/Program Title: No. Grantor No. Expenditures
Highway Planning and Construction
Cluster:
U.S. Department of Transportation
Passed through NYS Department of Transportation
Highway Planning and Construction 20.205 D035696 1,068,782$
Highway Planning and Construction 20.205 D035389 3,311
Total Department of Transportation
Programs in Cluster 1,072,093
Total Highway Planning and
Construction Cluster 1,072,093
U.S. Department of Homeland Security
Passed through NYS Division of Homeland Security
and Emergency Services
Emergency Management Performance Grants 97.042 151380 5,332
Total Federal Awards Expended 1,077,425$
See independent auditor’s report.
- 53 -
TOWN OF ITHACA
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2020
A.Basis of Presentation:
The accompanying schedule of expenditures of federal awards (the Schedule) includes
the federal award activity of Town of Ithaca under programs of the federal government
for the year ended December 31, 2020. The information in this Schedule is presented in
accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance). Because the Schedule presents only a selected
portion of the operations of Town of Ithaca, it is not intended to and does not present the
financial position, changes in net position, or cash flows of Town of Ithaca.
B.Summary of Significant Accounting Policies:
Expenditures reported on the Schedule are reported on the accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowed or are limited as to
reimbursement.
C.Indirect Cost Rate:
Town of Ithaca has elected not to use the 10% de minimis indirect cost rate allowed
under the Uniform Guidance.
TOWN OF ITHACA
INDEPENDENT AUDITOR’S REPORT ON
INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
YEAR ENDED DECEMBER 31, 2020
410 East Upland Road
Ithaca, New York 14850
607-272-5550 / 607-273-6357 (Fax)www.swcllp.com
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Supervisor and Town Board
Town of Ithaca
Ithaca, New York 14850
We have audited, in accordance with the auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements of the
governmental activities, the business-type activities, each major fund, and the aggregate remaining
fund information of the Town of Ithaca, NY, as of and for the year ended December 31, 2020, and
the related notes to the financial statements, which collectively comprise the Town of Ithaca, NY’s
basic financial statements, and have issued our report thereon dated October 28, 2021.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Town of
Ithaca, NY’s internal control over financial reporting to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Town of
Ithaca, NY's internal control. Accordingly, we do not express an opinion on the effectiveness of
the Town of Ithaca, NY’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.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town of Ithaca, NY’s financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could
have a direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit, and
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing
Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity’s internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Town's
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Sciarabba Walker & Co., LLP
Ithaca, New York
October 28, 2021
TOWN OF ITHACA
INDEPENDENT AUDITOR’S REPORT ON
COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL
OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
YEAR ENDED DECEMBER 31, 2020
410 East Upland Road
Ithaca, New York 14850
607-272-5550 / 607-273-6357 (Fax)www.swcllp.com
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY
THE UNIFORM GUIDANCE
Supervisor and Town Board
Town of Ithaca
Ithaca, New York 14850
Report on Compliance for Each Major Federal Program
We have audited Town of Ithaca’s compliance with the types of compliance requirements
described in the OMB Compliance Supplement that could have a direct and material effect on
each of Town of Ithaca’s major federal programs for the year ended December 31, 2020. Town
of Ithaca’s major federal programs are identified in the summary of auditor’s results section of
the accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and
conditions of its federal awards applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of Town of Ithaca’s major
federal programs based on our audit of the types of compliance requirements referred to above.
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and the
audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Those standards and the Uniform Guidance require that we plan and perform the
audit to obtain reasonable assurance about whether noncompliance with the types of compliance
requirements referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about Town of Ithaca’s
compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each
major federal program. However, our audit does not provide a legal determination of Town of
Ithaca’s compliance.
- 59 -
Opinion on Each Major Federal Program
In our opinion, Town of Ithaca complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major
federal programs for the year ended December 31, 2020.
Report on Internal Control over Compliance
Management of Town of Ithaca is responsible for establishing and maintaining effective internal
control over compliance with the types of compliance requirements referred to above. In
planning and performing our audit of compliance, we considered Town of Ithaca’s internal
control over compliance with the types of requirements that could have a direct and material
effect on each major federal program to determine the auditing procedures that are appropriate in
the circumstances for the purpose of expressing an opinion on compliance for each major federal
program and to test and report on internal control over compliance in accordance with the
Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of
internal control over compliance. Accordingly, we do not express an opinion on the effectiveness
of Town of Ithaca’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on
a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies. We did
not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose.
Sciarabba Walker & Co., LLP
Ithaca, New York
October 28, 2021
TOWN OF ITHACA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED DECEMBER 31, 2020
- 61 -
TOWN OF ITHACA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED DECEMBER 31, 2020
Summary of Audit Results:
The auditor’s report expresses an unmodified opinion on the financial statements of
Town of Ithaca.
No material weakness in internal control over financial statements was reported in
accordance with Government Auditing Standards.
No instances of non-compliance material to the financial statements were disclosed
during the audit.
No significant deficiencies in internal control over major federal award programs was
disclosed during the audit.
The auditor’s report on compliance for the major federal award program for Town of
Ithaca expresses an unmodified opinion.
Audit findings that are required to be reported in accordance with the Title 2 U.S. Code
of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards are reported in this schedule.
The program tested as major programs were Highway Planning and Construction cluster.
The threshold for distinguishing Types A and B programs was $750,000.
Town of Ithaca was determined not to be a low-risk auditee.
Findings – Financial Statement Audit
None
Findings and Questioned Costs – Major Federal Awards Programs Audit
None