HomeMy WebLinkAbout2008 Town of Ithaca Audit Report r�
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FINANCIAL STATEMENTS OF
TOWN OF ITHACA
I, ITHACA,NEW YORK
1 FOR THE YEAR ENDED DECEMBER 31, 2008
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TOWN OF ITHACA
INDEX
December 31,2008
Tab
IndependentAuditor's Report.......................................................................................................1
Management's Discussion and Analysis..................................................----------------------------------2
FinancialStatements......................................................................................................................3
Independent Auditor's Report on Compliance and on Internal
Control over Financial Reporting Based on an Audit of
Financial Statements Performed in Accordance with
Government Auditing Standards............................................................................................4
U
L TOWN OF ITI-IACA
TABLE OF CONTENTS
December 31,2008
Page
Independent Auditor's Report...........................................
Management's Discussion and Analysis I-XVIII
Statementof Net Assets.............................................................................................................I I
Statement of Activities......................... .....2
Balance Sheet—Governmental Funds.......................................................................................3
Reconciliation of the Total Fund Balances Shown in the
Governmental Funds to the Statement of Net Assets...........................................................4
Statement of Revenues, Expenditures, and Changes in.Fund
Balances .5-6
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balance of the Governmental Funds to the
II
Change in Net Assets Shown in the Statement of Activities...........................................7-8
._' Statement of Fiduciary Net Assets.............................................................................................9
Notes to Financial Statements............... ............................................ 10-30
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Schedule of Funding Progress for the Retiree Health Plan.........................................31
j Schedule of Revenues and Expenditures Compared to Budget—
. � Major Funds..........................:. ................................................. ......................,.32-33
Capital Projects Fund Detailed Balance Sheet..................... ..........................................34
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Capital Projects Fund -Detailed Revenues and Expenditures................................................35
Independent Auditor's Report on Compliance and on Internal
— Control over Financial Reporting Based on an Audit of
Financial Statements Performed in Accordance with
Government Auditing Standards...................................................................................36-37
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TOWN OF ITHACA
"COMMUNICATION WITH THOSE
CHARGED WITH GOVERNANCE"
YEAR ENDED DECEMBER 31, 2008
SCIA.RABBA
&JC
WALKER °
CERTIFIED PUBLIC ACCOUNTANTS
BUSINESS CONSULTANTS
August 3, 2009
To the Supervisor and Town Board
Town of Ithaca
Ithaca,NY 14850
We have audited the financial statements of the Town of Ithaca for the year ended December 31, 2008,
and have issued our report thereon dated August t 3, 2009. Professional standards require that we provide
you with the following information related to our audit.
Our Responsibility under U.S. Generally Accgpted Auditing Standards
As stated in our engagement letter dated April 20, 2009, our responsibility, as described by professional
standards, is to express our opinion about whether the financial statements prepared by management
with your oversight are fairly presented, -in all material respects,-, in conformity with U.S. generally
accepted accounting principles. Our audit of the financial; statements does not relieve you or
management of your responsibilities.
Other Information in Documents Containing Audited Financial Statements
We are not responsible for other information in documents containing the entity's financial statements
and our report does not extend beyond the financial information identified in1he report. We do not have
an obligation to perform any procedures to corroborate other information contained in these documents.
Planned Scope and Timing of the Audit
We performed the audit according to the planned scope and timing previously communicated to you in
our engagement letter.
Significant Audit Findings
Qualitative Aspects ofA ccounting Practices
Management is responsible for the selection and use of appropriate accounting policies. In accordance
with. the terms of our engagement-letter, we will advise management about the appropriateness of
accounting policies and their application. The significant accounting policies used by Town of Ithaca are
described in Note 1 to the financial statements. In 2008, the Town implemented Government
Accounting Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment
Benefits Other Than Pensions and Governmental Accounting Statement No. 50, Pension Disclosures—
an amendment of GASB Statements No. 25 and No. 27. We noted no transactions entered into by the
governmental unit during the year for which there is a lack of authoritative guidance or consensus.
There are no significant transactions that have been recognized in the financial statements in a different
period than when the transaction occurred.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management's knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ
significantly from those expected. The most sensitive estimates affecting the financial statements are the
estimates of the annual required contribution (ARC) and actuarial accrued liability (AAL) for providing
other postemployment benefits under the provisions of Government Accounting Statement No. 45. We
evaluated the key factors and assumptions used to develop the estimates in determining that they are
reasonable in relation to the financial statements taken as a whole.
200 East Buffalo Street, Suite 402 28 North Main Street
Ithaca,New York 14850 Cortland,New York 13045
607-272-,5550/607-273-6357(Fax) 607-756-0073/607-756-0052(Fax) www.sdarabbawalker.com
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing
our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are trivial, and communicate them to the appropriate level of management.
We noted no misstatements that we considered material and management has made adjustments that we
have recommended.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a financial
accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be
significant to the financial statements or the auditor's report. We are pleased to report that no such
disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated August 3,2009.
Management Consultations with Other Independent Accountants
In some cases,management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves
application of an accounting principle to the governmental unit's financial statements or a determination
of the type of auditor's opinion that may be expressed on those statements, our professional standards
require the consulting accountant to check with us to determine that the consultant has all the relevant
facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to retention as the governmental unit'.s auditors.
However, these discussions occurred in the normal course of our professional relationship and our
responses were not a condition to our retention.
Other Matters
Our audit engagements include various procedures that may change from year to year. Procedures
include performing a risk assessment of the entity and developing a preliminary audit strategy. We
considered the firm's past experience with the Town, the staff, complexity of accounting transactions,
the internal accounting policies and procedures, and the industry. This evaluation then led to
determining the focus of the audit, based on our assessed risk. We performed additional audit
procedures which included sending third party confirmations and comparing them to internal records,
applying analytical procedures to balances, vouching deposits to the records and deposit slips, and
vouching expenses to the supporting documentation. We also selected a sample of expenditures and
tested the related controls over approval and signature. When this process was complete, we prepared
the financial statements at the fund level, prepared the conversion workpapers from information
gathered during the audit, and prepared the government wide statements. We also updated sections of
the Management's Discussion and Analysis.
In 2008, the Town implemented Government Accounting Statement No. 45, Accounting and Financial
Reporting by Employers for Postemployment Benefits Other Than Pensions. The statement requires that
employers measure, recognize and disclose on an annual basis amounts associated with the cost of
providing other postemployment benefits (OPEB). The Town's 2008 Statement of Activities reflects an
expense of $323,000, the annual required contribution (ARC), based on an actuarial estimate of the
current period expense associated with providing current and future benefits. The Town's 2008
Statement of Net Assets reflects a liability of the same amount. That liability is to be incremented in
future years by the annual measurement of the ARC.
In arriving at the estimate, the Town utilized an alternative measurement method that is permitted for
employers with fewer than 100 employees who are participating in their plan. The method involves
some simplified calculations that are performed in a spreadsheet and does not require the services of an
actuary.
The Town's projected liability is based on the Town's commitment to provide a percentage of the cost
of a retiree's annual health insurance premiums based on the number of years of service at the time of
retirement. The measurement of other post-employment benefits does not include accumulated sick
time that can be spent down upon retirement to cover retiree's portions of health insurance premiums.
The Town has recorded a separate liability of$255,000to estimate that obligation.
The actuarial accrued liability (AAL) for future benefits to be paid was estimated at $3,302,265 at
December 31, 2008. The estimate is particularly sensitive to assumptions regarding trends in healthcare
costs and interest rates. The assumptions underlying the calculation are detailed in Note 9 to the Town's
2008 financial statements.
Statement 45 permits an employer to offset the accumulated liability associated with OPEB with assets
that are irrevocably transferred to a trust or equivalent arrangement in which the assets are used
exclusively to provide benefits to retirees in accordance with the terms of the plan. Thus the Town could
determine that they wish to fund a portion of the AAL by designating assets in the manner described
above.
This information is intended solely for the use of the Supervisor, Town Board and management of the
Town of Ithaca and is not intended to be and should not be used by anyone other than these specified
parties.
Very truly yours,
Certified Public Accountants
SCIARABBA
W.UKER&LEP0
CERTIFIED PUBLIC ACCOUNTANTS
BUSINESS CONSULTANTS
I ! INDEPENDENT AUDITOR'S REPORT
August 3, 2009
Supervisor and Town Board
Town of Ithaca
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Ithaca,New York 14850
We have audited the accompanying financial statements of the governmental activities, each
major fund, and the aggregate remaining fund information of the Town of Ithaca, as of and for the
year ended December 31 2008; which collectively comprise the Town's basic financial statements
as listed in the table of contents.These basic financial statements are the-responsibility of the Town
of Ithaca's management. Our responsibility is to express an opinion 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 basic
financial statements are free of material misstatements.An audit includes examining, on a test basis,
evidence supporting the amounts and-disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements referred to in the first paragraph present fairly, in all
material respects, the respective financial position of the governmental activities, each major fund;
- and the aggregate remaining fund information of the Town of Ithaca, as of December 31, 2008, and
the respective changes in financial position for the year then ended, in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
August 3, 2009, on our consideration of the Town of Ithaca's internal control structure and on
our tests of its compliance with laws and regulations. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be read in conjunction
L with this report in considering the results of our audit.
The Management Discussion and Analysis (pages I-XVIII), the Schedule of Funding
Progress for the Retiree Health Plan (page 31) and the Schedule of Revenues and Expenditures
Compared to Budget- Major Funds (pages 32-33) are not a required part of the basic financial
1 statements, but are supplementary information required by accounting principles generally
accepted in the United States of America. We have applied certain limited procedures, which
consisted principally of inquiries of management regarding the methods of measurement and
presentation of the required supplementary information. However, we did not audit the
information and express no opinion on it.
j 200 East Buffalo Street, Suite 402 28 North Main Street
Ithaca,New York 14850 Cortland,New York 13045
607-272-55501607-273-6357(Fax) 607-756-00731607-756-0052(Fax) www.sdarabbawalker.com
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Our audit was conducted for the purpose of forming opinions on the financial statements
that collectively comprise the Town of Ithaca's basic 'financial statements. The supplementary
information presented on pages 34 through 35 is presented for the purpose of additional analysis
and is not a required part of the basic financial statements. The information has been subjected to
the.auditing procedures applied in the audit of the basic financial statements and, in our opinion,
- is fairly stated in all material respects in relation to the basic financial statements taken as a
1 whole.
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Certified Public Accountants
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The following is a discussion and analysis of the Town ofIthacas financial performance for the
year ended December 31, 2008. The Town of Ithaca discussion and analysis is designed to (a)
assist the reader in focusing on significant financial issues, (b) provide an over 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 Budget 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 assets, as,reflected in the Statement of Net Assets, increased by$270,415
(2.1%).
• Revenue, as reflected in the statement of activities, increased$259,752 (2.0%).
• Government-wide expenditures increased by$798,014 (6.7%).
The General Townwide Fund (the primary operating fund) unreserved fund balance
increased by$329,515 (or 18.1%) for the year ending December 31,2008.
Town Highlights:
In 2005 the Ithaca Town Board established a "General Townwide Fringe Benefit Cash
Reserve" savings account. The purpose for establishing this reserve is to fiscally meet
unanticipated economic increases in employee fringe benefits that may occur within the
current budgeted operating cycle. (E.g. NYS Retirement, Health Insurance) At the
beginning of 2008, $297,704 was on reserve for future budgetary expenditures. For the
year ending 2008.the cash reserve increased to $300,000. This increase is attributed to
2008 interest earnings.
• The Town's five (5) year capital plan continues to make strides. In 2008 $54,026 of
annual funding was deposited to the Parks and Open Space Cash Reserve. Construction
of the multi-purpose recreational and commuter Pew Trail on the East Hill was
completed in 2008. This project had an approximate cost of $265,000, with
approximately $87,000 provided by taxpayer funds and the remaining $178,000 coming
from a Federal Transportation Enhancement Program Grant implemented by the NYS
Department of Transportation.
• Persistent monitoring of budgeted and actual revenue and expenses continues to help the
Town Board maintain a stable, affordable tax rate while delivering quality services to
Town residents. At January 1, 2008, the Town's General Townwide Fund (the primary
operating fund) had a beginning unreserved fund balance of $1,740,390,. At December
31, 2008, the unreserved fund balance was increased by net revenues and expenses to
j $2,069,740. This reflects a net increase of$329,350 or 18.9%. For 2009, $430,773 of the
fund balance has been appropriated to help fund 2009 budgeted General Townwide Fund
expenditures.
- 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 f nancial 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 such as water and sewer
were financed in the short term as well as what remains for future spending.
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• Fiducimy 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.
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Figure A-1 summarizes the major features of the Town's financial statements, including the
portion of the Town's activities they cover and the types of information they contain. The
remainder of this overview section of MD&A highlights the structure and contents of each of the
statements.
Figure A-1 Major Features of the Government-wide and Fund Financial Statements
Fund Financial Statements
Government-wide Governmental Fiduciary Funds
Funds ' -
Scope Entire Government The activities of the Instances in�which the
(except fiduciary Town that are not Town administers
funds} proprietary or resources on behalf of
fiduciary. someone else.
Required financial e Statement of net - Balance sheet • Statement of fiduciary
statements assets - Statement of net assets
o Statement of revenues, • Statement of changes in
activities expenditures, and fiduciary net assets
changes in fund
balances
Accounting basis Accrual accounting Modified accrual Accrual . accounting and
and measurement and economic accounting and economic resources focus
focus resources focus current financial
focus
Type of All assets and Generally, assets All assets and liabilities,
asset/liability liabilities,both expected to be used both short-term and
information financial and up and liabilities long-term; funds do not
capital, short-term that come due currently contain capitalassets, although they can
and Iona-term during the year or
soon thereafter; no
capital assets or
long-term liabilities
included
Type of inflow/6ut All revenues and Revenues for which All additions and
flow information expenses during cash is received deductions during the year,
year, regardless of during or soon after regardless of when cash isreceived or paid
when cash is the end of the year;
received or paid expenditures when
goods or services
have been received
and the related
liability is due and
payable
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TOWN OF ITH.A►CA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMMER 31,2008
it
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 assets includes
all of the Town's assets and liabilities. All of the current year's revenues and expenses are
_J accounted for in the statement of activities regardless of when cash is received orpaid.
The two government-wide statements report the Town's net assets and how they have changed.
Net assets, the difference between the Town's assets and liabilities, are one way to measure the
Town's financial health or position.
• Over time, increases or decreases in the Town's net assets are an indicator of whether its
financial position is improving or deteriorating,respectively.
_J 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: Most of the Town's basic services are included here, such as water and sewer services
(home and community services), road maintenance (transportation), and administration (general
governmental support). Property taxes and charges for services finance most of these activities.
Fund Financial Statements
The fund financial statements provide more detailed information about the Town's funds,
focusinc, 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
particular programs:
Some funds are required by State law and by bond covenants.
• The Town establishes other funds to control and to manage money for particular purposes (such
as repaying its long-term debts) or to show that it is properly using certain revenues.
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j � TOWN OF ITHACA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2008
`-' The Town has two kinds of funds:
I 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 that can readily be
converted to cash flow in and out and (2) the balances left at year end that are available for
�i 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 in the near future 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 4 and pages 7-8) have been added to explain the relationship Or
differences)between them.
• 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.
--1 FINANCIAL ANALYSIS OF THE TOWN AS A WHOLE
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The Town's combined net assets increased by$270,415 or 2.1%.
Current assets decreased by$706,467 or 9.7%.
Capital assets increased by$357,693 (net of 2008 depreciation expense of$483,636) or 2.9%.
Long-term debt decreased by $717,000 or 14.4%. The decrease reflects 2008 principal
payments.
Investments in capital assets-net of related debt increased by$1,074,692 or 14.7%. The increase
reflects the net increase in 2008 capital assets of $357,692 and the 2008 decrease in debt of
$717,000.
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TOWN OF ITHA.CA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31,2008
Unrestricted net assets decreased by$860,619 or 18.0%.
The Town's current ratio (ratio of current assets to current liabilities)-was 3.7:1 at December 31,
2008. The Town's quick ratio (cash and assets easily converted to cash compared to current
liabilities)was 2.8: 1 at December 31, 2008.
Figures A-2 and A-3 present condensed information derived from the Town's government-wide
statements.
FIGURE A-2
.: Total I3ollar,
Condensed Statement aNetAssets ;., GoyernmentaltActtvities ' Change n
f,
Current assets $ 7,275,026 $ 6,568,559 $ ( 706'X7)
Non current assets 12,286,040 12,643,732 357,692
.TataluaAssets ' x $x. „19 561 0`66'.;i$.,, 19 2,12291 $; 348"775
Current liabilities 2,366,584 1,775,259 ( 591,325)
Non current liabilities 4,372,890 4,345,026 ( 27,864)
"Total`Llabiltaes ,':: 6 7,39 47,4 ,+ 6 1`20.285 $'.., a�, 619 ]:$9
�: .r $ .
Invested in capital assets,net of debt 7,323,040 8,397,732 1,074,692
Restricted 710,031 766,373 56,342
_; Unrestricted net assets 4,788,520 3,927,901 ( 860,619)
1 092<006_ $ 270 415;
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�i TOWN OF ITHACA
MANAGEMENT'S DISCUSSION AND ANALYSTS
DECEMBER 31, 2008
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Figure A-3
' E TotalDollar Percentage
w Governmental Acttvxttes x .f
Cltartgest>z Net Assets ry 1 Ch'anQe an e
,. REVENUES
Program revenues:
Charges for services $ 3,250,403 $ 3,354,059 $ 103,656 3.2%
Operating grants and contributions 178,073 175,725 ( 2,348) -1.3%
Capital grants and contributions 146,358 117,541 ( 28,817) -19.7%
General revenues:
Property taxes 5,477,173 5,717,800 240,627 4.4%
�— Non property taxes 2,732,871 2,809,417 76,546 2.8%
Unrestricted state aid 314,698 376,221 61,523 19.5%
Interest earnings 355,847 148,400 ( 207,447) -58.3%
Other general revenues 315,571 331,583 16,012 5.1%
.'... , ...., yM Iota-fkeveiiues, 7701994.y $ ;.13'03;0 746,';
PROGRAM EXPENSES
General government support $ 2,205,137 $ 2,279,088 $ 73,951 3.4%
Public safety 2,981,835 3,194,929 203,094 6.8%
Transportation 2,242,791 2,521,867 279,076 12.4%
Culture and recreation 827,047 787,612 ( 39,435) -4.8%
Home and community services 3,705,507 3,986,835 281,328 7 6%
ez►ses., ,., �w,
$x 11'962 3:17,'`. Q14w
TNCREASEaINNET'ASSETSwr ,vkr$ ,`.. . `:$0$ 677} $ 27Q;415„;
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TOWN Off'-ITHACA
MANAGEMENT'S DISCUSSION AND ANALYSIS
-� DECEMBER 31, 2008
Figure A-4 shows the sources of revenue for 2008 -
I FIGURE A-4
Sources of Revenue for 2008 -
I `
Interest
State sources 1.14�° Federal.sources
4.33% 0.28% Fines and fees
1.95%
{. Charges for services ' /
25.74% Other
'! 1.12% .
I_ Taxes
65.44%
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Figure A-5 represents.the Town's-2008 expenditures by program.
FIGURE_ A-5
Expenditures by Program
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Interest on long-term
i Depreciation debt General support
3.79% 1.66/° 17.13%
Home and community
services
_ . 28.45% �...:�..�
IPublic safety
C 1 24.96%'
Culture and recreation /
6.02% J
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Transportation
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18.00%
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TOWN OF ITHACA
I MANAGEMENT'S DISCUSSION AND ANALYSIS
-DECEMBER 31,2008
Total costs of services provided b the Town (Figure A-6 were $12 760 331. These charges were
p Y ( b'� ) g
offset by grants and contributions of$293,266 and charges for services of$3,354,059,resulting in
net cost of services of$9,113,006.
Figure A-6
TotalCost of Services
*r
Programs ,� ^ �T�otal Dollar
2007 2008 Cliange
General government support $ 2,205,137 $ 2,279,088 $ Y73,951
J Public safety 2,98.1,835 3,184,929 203,094
Transportation 2,242,791- 2,521,867 279,076
Culture and recreation 827,047 787,612 ( 39,435)
Home and community services 3,705,507 3,986,835 281,328
317 $ 12 760 331
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.�a� a x'
General government support $ 1,922,593 $ 2,009,025 $ , 86,432
{ Public safety 2,980,783 3,183,678- 202,895
Transportation 2,220,485 2,496,990 276,505
Culture and recreation 768,285 725,703 ( 42,582)
Home and community services 495,337 697,610 202,273
FINANCIAL ANALYSIS OF THE TOWN'S FUNDS
Figure A-7 shows the changes in fund balances for the year for the Town's fimds as presented in the
Town's Statement of Revenues, Expenditures and Changes in Fund Balance-Governmental Funds.
c At December 31, 2008, the Town reported a combined fund balance of $4,930,619. Total fund
balance decreased by$5.04,632 in 2008.
Figure A-7
Governmental Funds
Governmental Fund Balances Total Dollar
2008 Change T"
General Fund $ 2,580,597 $ 3,063,727 $ 483,130
Highway Fund 854,979 570,118 ( 284,861)
Water Fund 471,510 526,010 54,500
Sewer Fund 2,124,738 2,012,201 ( 112,537)
Fire.Fund 74,197 31,970 { 42,227)
Capital Projects Fund ( 734,985) ( 1,340,930) ( 605,945)
Other Funds 64,215 67,523 3,308
. Total'I+`und Balance., .,. _ r $ S,435,251. $ 4,930619
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I TOWN OF ITHACA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31,2008
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GENERAL FUND BUDGETARY HIGHLIGHTS
Over the course of the year, the town revised the General Fund budget to reflect additional
f changes in budgeted revenues and expenditures. Actual revenues fall short of revised budget
estimates by$134,878 and actual expenditures were under budgeted expenditures by$195,816.
Figure A-8 summarizes the General Fund original and revised budgets, actual expenditures and
the variances for the year ended December 31,2008.
Figure A-8 1
,_�. 7 £ h i f - � G ''f �t k 5 S f� +• i i t r I _ S `.
Conde sed Bud ex
R . F e
r g tart' G Variane
� Cvmparrsonr GeneralFu�zd' ,r
. Favorable
.:.
Origuial budget RevxsedtBpdget Actua rr(Clufavorafile)
REVENUES
Real property taxes $ 1,815,001 $ 1,827,755 $ 1,827,755 $ -
Non-property taxes 757,981 1,207,610 1,266,576 58,966
I State sources 354,200 467,947 467,951 4
All other 567,777 840,077 646,229 ( 193,848)
s t Tatal'Revenues 'Ft;'; ,t $'.. ,k;, 3,4'94,959", $ `,P ,t4,343,389' 4',2Q8511' '$k,..(... ..]34878);
EXPENDITURES
General government support $ 1,559,928 $ 1,475-1553 $ 1,475,553 $ -
j.- Public safety 125,362 55,401 55,401
Transportation 284,849 287,450 287,450 -
Culture and recreation 896,062 690,166 690,166 -
Home and community services 732,568 733,419 733,418 1
Employee benefits 178,430 832,883 637,068 195,815
n _ Tatalw`. .4,OG74,872;$ _. ., r3,$79056,'
Other financing sources 536,187 338,671 338,671 -
Other financing uses $ 184,996 $ 184,996 $ 184,997 $ 1
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CAPITAL ASSETS
i '
The town records expenditures for land, buildings, equipment, machinery and infrastructures
(roads, water and sewer systems) as capital assets in the Statement of Net Assets. 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 1J and 1K in the current year's Notes to the Financial Statements.
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In 2008, the Town expended $918,748 on capital additions. Equipment with a cost basis of
$138,784 was sold or retired in 2008. Figure A-9 reflects the changes in net capital assets.
X
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TOWN OF ITHACA
Li MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2008
Figure A-9
Governmental lActlVltles
�i u 111 R 4 ..
Changesa�z"Net CupataTrAssQts . ri ,t �� Total Dollar
2007;'�h. 2Q0.8 Tk Change
Land $ 293163 $ 293163
Construction in progress 1,570,895 . 2,274,913 704,018
Buildings 3,342,040 3,226,307 ( 115;733)
Equipment and machinery 1,945,008 1,881,440 ( 63,568)
Furniture and furnishings 52,653 34,284 ( 18,369)
j Non-building improvements 32,779 25,659 ( 7,120)
Infrastructures 5,049,502 4,907,967 ( 141,535)
Nn
Totals a,fa, }' $"''x,> 12'2$6 04gr S 12 643'733 35 7 693'
1 < < Major additions in 2008 included:
Capital projects related to water and sewer improvements $ 697,415
Equipment acquisitions 214,730
Park infrastructure 6,603
i Total $ 918.748
DEBT ADMINISTRATION
Long-term debt decreased by$717,000.
The Town's liability for compensated absences increased$8,160 to $135,050 during 2008.
In 2008, the Town implemented the provisions of Governmental Accounting Standards Board
t_. Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment
Benefits Other Than Pensions. The standard requires that a liability be recognized based on an
actuarial measure of the current year funding costs associated with long-term liabilities for post-
employment benefits. The Town recorded a liability of $322,544 in the Government-wide
statements.
The Town continues to recognize a liability for accumulated sick time that can be credited to
employee's portions of health insurance at the date of retirement. The liability was $254,860 at
I `I December 31, 2008.
The Town's most recent bond rating, as determined by Moody's Investor Service, Inc.,is Aa3.
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TOWN OF ITHACA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2008
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.
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The following summary provides information regarding the Town's indebtedness, debt limit and
net debt-contracting margin as of December 31, 2008.
Five-year average full valuation of taxable property $ 1,058,337,733
Debt limit- 7%thereof 74,083,641
Inclusions:
Bonds 45246,000
Bond anticipation notes -
Total inclusions 4,246,000
Exclusions:
Water and sewer debt(1) 3,486,000)
Total exclusions $ { 3,486,000)
Total net indebtedness $ 760,000
Net debt contracting margin $ 73,323,641
The percent of debt contracting power exhausted is...... 1.0%
(1) Sewer and Water indebtedness are excluded pursuant to Section 136.00(4-a) and
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136.00(2),respectively, of the Local Finance Law
Detailed information regarding the Town's long-term liabilities is presented in Note 6C in 2008
Notes to the Financial Statements. Figure A-10 reflects changes in the Town's debt for 2008.
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TOWN OF ITHACA _ _..w
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2008
Figure A-10
Yt 1
t )
r s Governmental Activltles
Outstaitdmg,Debtr , " � � << �' r '� Total Dollar
2008
Serial Bonds $ 4,963,000 $ 4,246,000 $ ( 717,000)
Bond anticipation notes - - -
Compensated absences 126,890 135,050 8,160
Other post-employment benefits - 322,544 322,544
Liability for accrued sick time to be
applied to retirees health coverage 229,972 254,860 24,888
^ '"§F M•,•�-"[[.M1'y P""ti"" 0 N". 7
. r Total,
Figure.A-11 depicts historical changes in fund balances for the Town of Ithaca for the period
2004 through 2008. Information for the Capital Projects Fund is omitted.
Figure A-12 reflects revenues .generated through water and sewer benefit assessments in
comparison to debt service (principal and interest payments) associated with debt incurred to
expand infrastructures associated with providing the services. Historical information is provided
- for the years 2000 through 2008, budgeted information for 2009 and estimated information for
the years 2010 through 2011.
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XIII
TOWN OF ITHACA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEM13ER 31, 2008
Factors Bearing on the Town's Future
In 2008 residential construction, as in most all local communities across the Nation,
within the Town of Ithaca has slowed down. Current building permits are for home
renovations, and updating. Large developers have future construction plans in the
!_J pipeline but are finding financing and materials costly and in some cases difficult to come
by. While residential and commercial construction has slowed down the real property
revenue tax base continues to expand, however, the continued expansion of both
residential and commercial properties push lasting fiscal stress for water, sewer,
highway,parks and recreational infrastructure services.
• In 2008, it became clear that the Town's sewer infrastructure system will need upgrades,
repairs and maintenance. Key to the success of the Town's sewer infrastructure is the
Town settling its financial share for newly laid interceptors throughout the system with
the City of Ithaca. The Town's Capital Improvement Plan has addressed this on-going
need over future periods. Annual estimated costs range from $250,000 to $500,000.
Major infrastructure improvements will be financed by issuing short-term (bond
anticipation notes) and long-term serial bonds borrowing.
• In 2008, sales tax revenues exceeded budget. However.-with the rise in gasoline costs and
other consumer-goods, local buying has begun to decrease. In 2009 the Town is expecting
a sales tax revenue loss of 12.7% to 17%. The Town is also anticipating a sharp decline
in two other major municipal resource streams; they are mortgage tax and interest
income. These expected declines arse directly attributed to the slow housing and financial
markets. Like other local communities across the United States, a downward *shift in
consumer spending, a slow down in all new construction and declining real estate sales
accompanied by the Federal Reserve adjustments in interest rates will greatly impact
revenue resources and create a greater need to utilize fund balance. Heavy declines in
revenue resources, excessive increases in expenses (E.g. capital indebtedness, expanding
labor costs) and surplus fund balance will have a direct impact on real property taxes.
These concerns make it ever more important for the* Town of Ithaca or any local
community to monitor its fund balance position throughout the current and ensuing
operating cycle.
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FINANCIAL CONTACT
The Town's financial statements are designed to present users (citizens, taxpayers, customers,
investors and creditors) with a general overview of the Town's finances and to demonstrate the
Town's accountability. If you have questions about the report or need additional financial
information, contact the Town's Supervisor, Town of Ithaca, 215 North Tioga Street,Ithaca,NY,
14850.
XVIII
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TOWN OF ITHACA
STATEMENT OF NET ASSETS
December 31,2008
ASSETS
CURRENT ASSETS:
1 Cash_ $ 4,937,470
Cash,restricted .766,373
Accounts receivable:
State and federal aid -
Water and sewer rents 481,422
s Due from other governments 313,441
Li Other receivables 915
Prepaid expenses 68,938
TOTAL CURRENT ASSETS 6,568,559
l
CAPITAL ASSETS,net: 10,368,819
Construction in progress 2,274,913
L i TOTAL CAPITAL ASSETS 12,643,732
TOTAL ASSETS $ 19,212,291
LIABILITIES
CURRENT LIABILITIES:
Accounts payable $ -
Accrued liabilities 1,142,532
Deferred revenues 2,035
II Bond interest payable 53,692
Long-term debt, current portion 577,000
TOTAL CURRENT LIABILITIES 1,775,259
LONG-TERM DEBT,non current 3,669,000
LONG-TERM LIABILITIES 676,026
TOTAL LIABILITIES 6,120,285
NET ASSETS
INVESTED IN CAPITAL ASSETS, net of related debt 8,397,732
RESTRICTED:
L) Culture and recreation 463,779
Equipment 2,593
Benefits 300,001
�—� UNRESTRICTED 3,927,901
TOTAL NET ASSETS 13,092,006
TOTAL LIABILITIES AND NET ASSETS $ 19,212,291
See Notes to Financial Statements. - 1 -
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TOWN OF ITHACA
STATEMENT OF ACTIVITIES
December 31, 2008
Governmental Activities' Program Revenue
_Functions/Programs Charges for Operating Grants r'
Expenses Services and Contributions
General governmental support $ 2,279,088 $ 38,706 $ 113,816
Public safety 3,184,929 1,251 -
Transportation 2,521,867 24,877 -
Culture and recreation 787,612 - 61,909
Home and community services 3,986,835 3,289,225 -
$ 12,760,331 $ 3,354,059 $ 175,725
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 r
Other miscellaneous revenues
TOTAL GENERAL REVENUES
CHANGE IN NET ASSETS
NET ASSETS,beginning of year
NET ASSETS, end of year
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See Notes to Financial Statements.
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Program Revenue Net (Expenses)
i Capital Grants Revenues and
U and Contributions Changes in Net Assets
$ 117,541 $ ( 2,009,025)
( 3,183,678)
- ( 2,496,990)
725,703)
�s ( 697,610)
$ 117,541 ( 9,113,006)
5,717,800
2,809,417
148,400
254,673
j 376,221
76,910
r 9,383,421
'— 270,4.15
f 12,821,591
$ 13,092,006
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TOWN OF ITHACA
BALANCE SHEET-GOVERNMENTAL FUNDS
December 31, 2008
Major Funds
General Highway Water
ASSETS AND OTHER DEBITS:
Unrestricted cash $ 2,348,606 $ 577,641 $ 385,034
Restricted cash 659,524 85,587 13,546
Bond anticipation notes receivable - - - r
Due from other funds
Due from state and federal governments - - -
.Due from other governments 257,849 1,142 -
Prepaid expenses 49,342 14,527 3,213
Other receivables 915 - 129,806
TOTAL ASSETS AND OTHER DEBITS $ 3,316,236 $ 678,897 $ 531,599
LIABILITIES, FUND EQUITY AND OTHER CREDITS:
i
LIABILITIES:
Accounts payable - - -
Accrued liabilities 250,474 108,779 5,509
Due to other funds - - 80 -
Other liabilities 2,035
Bond anticipation notes payable -
TOTAL LIABILITIES 252,509 108,779 5,589
FUND BALANCES - RESERVED
Special reserve 659,524 82,994 13,546
Reserved for highway machinery - 2,593 -
659,524 85,587 13,546
FUND BALANCES - UNRESERVED
Appropriated- ensuing year's budget 458,920 459,339 142,087
Unappropriated 1,945,283 25,1-92 370,377
TOTAL UNRESERVED 2,404,203 484,531 512,464 �?
TOTAL FUND BALANCE 3,063,727 570,118 526,010
TOTAL FUND EQUITY AND OTHER CREDITS 3,063,727 570,118 526,010 ,-
TOTAL LIABILITIES, FUND EQUITY
AND OTHER CREDITS $ 3,316,236 $ 678,897 $ 531,599
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See Notes to Financial Statements.
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1 Nonmaj or
Major Funds. Funds Total
Capital Other Governmental
I I Sewer Fire Projects Funds .Funds
I- $ 748,253 $ 604,522 $ 205,891 $ 67,523 $ 4,937,470
7,716 - - - 766,373
1,125,725 - - - 1,125,725
80 - - - 80
- - - 258,991
,I 1,856 - - - 68,938
131,125 - - - 261,846
$ 2,014,755 $ 604,522 $ 205,891 7 67,523 $ 7,419,423
2,554 572,552 421,096 1,360,964
2,035
- - 1,125,725 - 1,125,725
i 1 2,554 572,552 1,546,821 - 2,488,804
7,716 - - .763,780
- - - - 2,593 .
7,716 - - - 766,373
552,606 31,970 - - 1,644,922
1,451,879 - ( 1,340,930) 67,523 2,519,324
2,004,48,5 31,970 ( 1,340,930) 67,523 4,164,246
2,012,201 31,970 ( 1,340,930) 67,523 4,930,619
j 2,012,201 31,970 ( 1,340,930) 67,523 4,930,619
$ 2,014,755 $ 604,522 $ 205,891 $ 67,523 $ 7,419,423
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L, TOWN OF ITHACA
RECONCILIATION OF THE TOTAL FUND BALANCES SHOWN IN
C- THE GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS
As of December 31,2008
Total fund balances in the fund financial statements for the government funds. $ 4,930M 9
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This amount differs from the balance of Net Assets in the Statement of Net
Assets due to the following:
{ Capital assets are included as assets in the government-wide statements and_
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are added,net of accumulated depreciation 12;643,732
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Long term liabilities for bonded debt are included as liabilities in the government-
wide statements and are deducted (4,246,000)
Receivables for revenues earned and measurable,but not available to provide
financial resources, are included in the government-wide statements as assets
and are added 274,942
Long term liabilities for compensated absences and other post employment benefits
are included in the government=wide statements as liabilities and are deducted ( 457,595)
Current liabilities for bond interest payable are included in the government-
wide statements as liabilities and are deducted ( 53,692)
1�1 Total Net Assets- End of Year $ 13,092,006
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See notes to financial statements.
� -4 -
TOWN OF ITHACA
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCES
GOVERNMENTAL FUNDS
For The Year Ended December 31,2008
Major Funds
General Highway Water
REVENUES:
i
Real property taxes $ 1,771,501 $ - $ 704,863
Real property tax items 56,254 - -
Non-property tax items:
Sales tax 1,190,298 1,542,841 -
Other non-property tax items 76,278
Departmental income 230,291 - 1,794,286
Intergovernmental charges 61,909 24,877 441
Use of money and property 67,045 6,641 3,733
Rental Income 45,779 - -
Licenses and permits 10,593 - -
Fines and forfeitures 254,673
Sale of property and compensation for loss 2,479 19,160 -
Local sources { 26,540) 26,481 17,029
State sources:
Mortgage tax 372,390 - -
State aid per capita 955200 -
NYS highway improvement(CHIPS) - 74,019 -
Miscellaneous 361 - -
Federal aid - - -
TOTAL REVENUES 4,208,511 1,694,019 2,520,352 !
Other Sources:
Inter-fund transfers 338,671 - 30,425 --
Proceeds of obligations - - -
TOTAL REVENUES AND OTHER SOURCES 4,547,182 1,694,019 2,550,777
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See Notes to Financial Statements.
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Nonmaj or
Major Funds Funds Total
Capital Other Governmental
Sewer Fire Projects Funds Funds
$ 154,863 $ 3,008,606 $ - $ 12,132 $ 5,651,965
I - 9,580 - - 65,834
- - - - 2,733,139
- - - - 76,278
1,293,645 - - 3,318,222
1,368 - - - 88,595
j 11,871 48,101 7,400 3,608 148,399
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- - - - 45,779
- - 10,593
- - - - 254,673
- - - - 21,639
- - - - 16,970
372,390
i ,
- - - - 95,200
74,019
- 18,258 - - 18,619
1 ; - - 36,427 - 36,427
` 1,461,747 3,084,545 43,827 15,740 13,028,741
60,850 - 91,275 1,093,762 1,614,983
C 1,522,597 3,084,545 135,102 1,109,502 14,643,724
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TOWN OF ITHACA
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCES �l
GOVERNMENTAL FUNDS !
For The Year Ended December 31, 2008 (continued)
� E
Major Funds i
General Highway Water
EXPENDITURES:.
General governmental support 1,475,553 315 53,517 _
Public safety 55,401 - -
Transportation 287,450 1,541,562 -
Culture and recreation 690,166 - -
Home and community services 733,418 - 1,511,001
Employee benefits 637,067 399,092 72,242
Debt service(principal and interest) - - -
TOTAL EXPENDITURES 3,879,055 1,940,969 1,636,760
Other Uses:
Interfund transfers 184,997 37,911 859,517
TOTAL EXPENDITURES AND OTHER USES 4,064,052 1,978,880 2,496,277 I
EXCESS (DEFICIT) OF REVENUES OVER EXPENDITURES 483,130 ( 284,861) 54,500
OTHER CHANGES IN FUND BALANCES - - -
NET INCREASE(DECREASE) 483,130 ( 284,861) 54,500
FUND BALANCE,beginning of year 2,580,597 854,979 471;510 I
FUND BALANCE, end of year $ 3,063,727 $ 570,118 $ 526,010
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See Notes to Financial Statements. l
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a
L Nonmaj or
Major Funds Funds Total
I i Capital Other Governmental
Sewer Fire Projects Funds Funds
iLJ 40,664 3,745 — — 1,573,794
— 3,123,027 1,484 3,179,912
( — — 12,848 1,841,860
690,166
1,211,173 — 6,604 — 3,462,196
33,289 — 704,018 — 1,845,708
—i — — — 939,737 939,737
1,285,126 3,126,772 710,622 954,069 13,533,373
? I
350,008 — 30,425 152,125 . 1,614,983
1,635,134 3,126,772 741,047 1,106,194 15,148,356
( 112,537) ( 42,227) ( 605,945) 3,308 ( 504,632)
( 112,537) ( 42,227) ( 605,945) 3,308 ( 504,632)
�_.. I 2,124,738 74,197 ( 734,985) 64,215 5,435,251
( $ 2,012,201 $ 31,970 $ ( 1,340,930) $ 67,523 $ 4,930,619
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TOWN OF ITHACA
L RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE OF THE GOVERNMENTAL FUNDS
TO THE CHANGE IN NET ASSETS SHOWN IN THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31,2008
r �
Net change in Fund Balances shown for total Governmental Funds. $ ( 504,632)
This amount differs from the change in net assets reflected
in the Statement of Activities due to the following:
I !
J Capital outlays for the acquisition of capital assets and capital projects
F 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,
r acquisition costs are removed and depreciation expense is added as follows:
Capital expenditures 918,748
Depreciation expense ( 483,636) 435,112
j Major revenues are recorded in'the Governmental Funds when they are .
y" earned,measurable and available to provide current financial resources.
In the Statement of Activities,major revenues are recognized when they
l 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
j and measurable in the prior year,and these amounts are removed to
prevent overstating revenues on the Statement of Activities:
Current year revenues 274,942
Prior year revenues ( 254,864) 20,078
i Bond principal payments are reflected as expenditures in the Governmental Funds.
4 } These payments are reflected on the Statement of Net Assets 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: 717,000
Interest on debt is reported in the Governmentat 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 less than
Governmental Funds interest expense by the following amount: 10,981
{ Payments for compensated absences are reported in the Governmental Funds as
L 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:
r l Prior year expenses 126,890
L l Current year expenses ( 135,050) ( 8,160)
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TOWN OF ITHACA
RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE OF THE GOVERNMENTAL FUNDS
TO THE CHANGE IN NET ASSETS SHOWN IN THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31,2008
U
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 the current year cost associated with amortizing
the estimated present value of future benefits over a thirty-year period. 322,544)
ii
Proceeds from equipment sales are reported as revenue in the Governmental Funds.
In the Statement of Activities,the proceeds of sales are measured against the net book
value(cost less accumulated depreciation)of the disposed assets and a gain or loss
is recognized.The difference between the proceeds from equipment sales per the
,g
Governmental Funds and the loss per the Statement of Activities is the following: 77,420)
Interfund transactions are eliminated in the Statement of Activities.The amounts
offset,and have a zero effect on operations:
Transfers In 1,614,983
Transfers Out 1,614,983
Change in net assets $ 270,415
- 8 -
U TOWN OF ITHACA
STATEMENT OF FIDUCIARY NET ASSETS
I AGENCY FUNDS
December M,2008
ASSETS:
Cash $ 58,489
� } TOTAL ASSETS $ 58,489
LIABILITIES:
Accounts payable $ 58,489
i
TOTAL LIABILITIES 58,489
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NET ASSETS -
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TOTAL LIABILITIES AND NET ASSETS $ 58,489
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See Notes to Financial Statements.
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TOWN OF ITHACA
{-j NOTES TO FINANCIAL STATEMENTS
December 31, 2008
-' 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.
In June 1999, the GASB, unanimously approved Statement No. 34, Basic Financial
Statements — and Management's.Discussion and Analysis — for State and Local Governments.
Certain of the significant changes in the Statement include the following:
• A Management's Discussion and Analysis (MD&A) section providing an analysis of the
Town's overall financial position and results of operations.
• Financial statements prepared using full accrual accounting for all of the Town's
activities.
I
- • A change in the fund financial statements to focus on the major funds.
These and other changes are reflected in the accompanying financial statements (including
notes to financial statements).
A. Financial Reporting Entity
II
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,
public improvements, water and sewer.
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
J 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.
j I - 10 -
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.
f Excluded from the Reporting Entity:
j
1. Joint Venture-Other Municipalities
I Southern Cayuga Lake Intermunieipal 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 and has been amended several times, the
last on which is dated January 1, 1992. 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. Although the Commission is related to the Town of
- Ithaca, it is not included in the Town of Ithaca reporting entity. A separate
audited financial statement is available from the administrative offices of the
Southern Cayuga Lake Intermunicipal Water Commission, Ithaca, New York.
For the year ended December 31, 2008, the audited financial statements of the
Commission show:
Total Assets $ 7,349,594
Total Liabilities $ 4,006,631
Net Assets $ 3,342,963
In 2005, the Water Commission completed construction on a facility expansion
and renovation. The total project cost of$2.14 million was financed through fund
-- balance appropriations and $1.5 million in 20 year statutory installment bonds.
Also in 2007, the Commission completed construction on a 3 million gallon water
tank on East Hill in the Town of Ithaca at a cost of$2.08 million. The project was
financed through fund balance appropriations and $1.5 million in 20 year
statutory installment bonds. The Town of Ithaca will bear responsibility for
approximately 44% of the principal and interest payments on the debt associated
with these projects, which will be reflected in the rate the Water Commission
`—' charges for water sales.
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LJ 2. Joint Venture- City of Ithaca,Town of Dryden
The Town of Ithaca is also a participant in the joint sewer activity known as the
Ithaca Area Wastewater Treatment Plant. The other participants are the Town of
Dryden and the City of Ithaca. The City of Ithaca has custody of the joint activity
money. 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
is to be provided by equal share contributions from the participants. The
following information regarding the Wastewater Treatment Plant is from the
separately issued financial statements of the joint venture issued for_the year
December 31, 2007:
Year Ending
December 31, 2007
Total Assets $ 28,523,256
Total.Liabilities' 2,470,869
Total Equity 26,052,38.7
Total Revenues 2,890,284
Total Expenses 3,991,801
B. Basis of Presentation
1. Government-wide Statements
j
The Statement of Net Assets 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.
( j those that are fiduciary. Eliminations have been made to minimize the double
counting of internal transactions. Governmental activities generally are
financed through taxes, state aid, intergovernmental revenues, and other
exchange and nonexchange transactions. Operating grants include operating-
--' s ecific and discretionary either operating or capital) ants while the capital
p rY ( � p g p ) � P�
grants column reflects capital-specific grants.
i_ The Statement of Activities presents a comparison between direct expenses
and program revenues for each function of the Town's governmental
c activities. Direct expenses are those that are specifically associated with.and
are clearly identifiable to a particular 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
a capital requirements of a particular program. Revenues that are not classified
as program revenues, including all taxes, are presented as general revenues.
I 2. Fund Financial Statements
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The fund statements provide information about the Town's funds, including
fiduciary funds. Separate statements for each fund category (governmental
and fiduciary) are presented. The emphasis of fund financial statements is on
major Governmental Funds, each displayed in a separate column. All
remaining Governmental Funds are aggregated and reported as non-major
funds.
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The Town of Ithaca reports the following major Governmental Funds:
• General Fund. This is the Town's primary operating fund. It
(.2 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
parttown highway purposes.
• Water Fund. Established by law to account for revenues derived from
charges for water consumption and benefit assessments and the
application of such revenues toward related operating expenses and
debt retirement.
• Sewer Fund. Established by law to account for revenues derived from
sewer rents and benefit assessments and used for related operating
1 expenses and debt retirement.
• 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
finances 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
L...... transactions. Revenues derived from special districts' assessment.
• Debt"Service Fund. Used to account for interest earned on proceeds
of borrowing for water and sewer 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 is
transferred from the water and sewer funds. Payments are made
t_._. directly from the Debt Service Fund to the respective paying agents.
f 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.
C. 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
i recorded when earned and expenses are recorded at the time liabilities are
incurred, regardless of when the related cash transaction takes place.
Nonexchange 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
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L and donations is recognized in the fiscal year in which all eligibility requirements
have been satisfied.
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.
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Expenditures are recorded when the related fund liability is incurred, except for
principal and interest on general long-term debt, claims and judgments, and
j compensated absences, which are recognized as expenditures to the extent they
have matured. General capital asset acquisitions are reported as expenditures in
Governmental Funds. Proceeds of general long-term debt and acquisitions under
capital leases are reported as other financing sources.
D. Property Taxes
i 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 V2 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
i 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.
E. Budgetary Data
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1. Budget Policies—The budget policies are as follows:
U a. No later than October 5, the budget officer submits a tentative
budget- to the Town Board for the fiscal year commencing the
�a 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,
J no later than November 20, the Town Board adopts the budget.
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u C. All modifications of the budget must be approved by the Town
Board. However, the Town Supervisor is authorized.to transfer
j certain budgeted amounts within departments.
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d. Appropriations lapse at year-end.
2. Encumbrances
Encumbrance accounting, under which purchase orders, contracts and
I 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 fiends. Encumbrances are reported as
j reservations of fund balances since they do not constitute expenditures or
liabilities. Expenditures for such commitments are recorded in the period
in which the liability is incurred.
F. Cash and Investments
The Town of Ithaca's investment policies are governed by State statutes. In
.I addition, the Town of Ithaca has its own written investment policy. Town of
(_J 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
account and certificates of deposit. Permissible investments include obligations
j ( 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
LJ must have market value of at least the cost of the repurchase agreement.
� G. Accounts Receivable
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Accounts receivable are shown gross, with uncollectible amounts recognized
under the direct write-off method. No allowance for uncolleetible 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.
j H. ' Due To/From.Other Funds
Amounts due to and due from within the same fund type are eliminated in the
I .('government-wide statements. Inter-fund receivables and payables are detailed in
E� Note 4 on page 22.
I. 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.
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Prepaid items represent payments made by the Town for which benefits extend
beyond year-end.
J. Capital Assets
Capital assets are reported at historical costs. `The Town depreciates capital assets
using the straight-line method over the estimated useful life of the assets.
LJ 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 Govermnent-wide statements are as follows:
Estimated
j Capitalization Useful
Threshold Life
Building and improvements $ 5,000 30-40 years
Non-building improvements 5;000 15-20 years
j Equipment and machinery 5,000 5-15 years
- ' Furniture and furnishings 5,000 10 years
j K. Infrastructure
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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.
j Capitalization thresholds and estimated useful lives for infrastructures are as
". follows:
{ Estimated
1 ! Capitalization Useful
Threshold Life
Road systems $ 10,000 20 years
Water and sewer systems 10,000 40 years
L. 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.
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
F 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 2008,the Town has recognized
a liability of$254,860 based on accumulated sick time balances currently being
spent down by retirees and accumulated sick time balances of current Town
employees who have reached minimum retirement age and would be eligible to
apply accumulated sick time towards the payment of health insurance premiums.
c The balance is allocated to a current ($36,428) and long-term ($218,432) liability
`J in the Government-wide statements. The liability for accrued vacation time is
_ reflected in the Government-wide statements under as a long-term liability.
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The Town's employees participate in the New York State Employee's Retirement .
System.
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In addition to providing pension benefits, the Town of Ithaca provides health
insurance coverage for retired employees. Substantially all of the Town's
employees may become eligible for these benefits if they reach normal retirement
age while working for the Town. Health care benefits are provided through an
insurance company whose. premiums are based on, the benefits paid during the
year for the community. These benefits are further discussed in Note 9.
M. Unemployment Insurance
i
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 for federal unemployment insurance tax.
N. Deferred Compensation
-- The Town offers their employees a Deferred Compensation Plan (the Plan)
j 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 (25% of Gross wages riot to exceed $8,000) 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.
O. Risk Retention
L__` The Town of Ithaca is exposed to various risks of loss related to employee injury.
During 1996 the Town established reservations of fiend 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, 2008, $11,205 was paid out on behalf of the
employees.
P. Restricted Resources
When an expense is incurred for purposes for which both restricted and
unrestricted net assets are available, it is the Town's policy to apply restricted
funds before unrestricted funds, unless otherwise prohibited by legal
�( requirements.
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Q. Equity Classification
_-I 1. Goveirunent-wide Statements
Equity is classified as net assets and displayed in three components:
j • 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
L} bonds, mortgages, notes or other borrowings that are attributable to the
acquisition, construction, or improvement of those assets.
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• Restricted Net Assets
Consists of net assets with constraints placed on the use either by 1)
1 ! external groups such as creditors, grantors, contributors, or laws or
i regulations of other governments; or 2) law through constitutional
provisions or enabling legislation.
• Unrestricted Net Assets
All other net assets that do not meet the definition of_ "restricted" or
j I "invested in capital assets,net of related debt."
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2. Fund Financial Statements -Reserves
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a. 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 2008
was $463,779. This Reserve Fund was designated by Board Resolution
- No. 170 of October 2, 1997. Interest earnings and additional funding for
I the year both increased the Reserve Fund.
b. The Highway Equipment equity includes reserve funds established for
highway machinery. The balance at the end of 2008 was $2,593. This
Reserve Fund was designated by Board resolution No. 193 of November
8, 1984, and any unexpended appropriation for machinery at year end is to
be transferred to the Reserve Fund. The Reserve Fund is also increased by
interest earned for the year.
c. The General Town-Wide Fund, the General-Part Town Highway Fund, the
Water Fund, and the Sewer Fund equity includes funds established for
fiscally managing annual economic increases and decreases in employee
fringe benefits (E.g. NYS Retirement Costs, Health Insurance). The
aggregate balance at the end of 2008 was $300,001. This Reserve Fund
was established at the June 13, 2005 Town Board meeting under Board
Resolution No. 084. The reserve is funded on an annual basis as assessed
( by the Town Board. The reserve cash is increased by interest earned for
L the year. The balance by fund is as follows:
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-, General Town Wide Fund $ 151,170
General Part-Town Fund 44,575
General Part-Town Highway Fund 82,994
Water Fund 13,546
i Sewer Fund 7,716
IJ $ 300,001
R. Inter-fund Transfers
L
The operations of the Town gives rise to certain transactions between funds,
1 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
1 that occurred during the year is provided subsequently in these Notes.
S. Change in Accounting Policy
In 2008, The Town implemented the provisions of Governmental Accounting
Standards Board Statement No. 45, Accounting and Financial Reporting by
Employers for Postemployment Benefits Other Than Pensions. The standard is
being applied prospectively by the Town and establishes measurement and
disclosure criteria for non-pension postemployment benefits (Note 9).
In 2008, the Town implemented the Governmental Accounting Standards Board
Statement No. 50, Pension Disclosures—an amendment of GASB Statements No.
25 and No. 27. This statement more closely aligns the financial reporting
f requirements for pensions with those for other postemployment benefits (OPEB)
and, in doing so, enhances information disclosed in notes to financial statements
or presented as required supplementary information (RSI) by pension-plans-and
by employers that provide pension benefits. The applicable provisions of this
statement are reflected in Note 6.
T. New Accounting Pronouncements
II
GASB Statement No. 49
In November 2006, the GASB issued Statement No. 49, "Accounting and
Financial Reporting for Pollution Remediation Obligations." This statement
addresses accounting and financial reporting standards for pollution (including
contamination) remediation obligations, which are obligations to address the
current or potential detrimental effects of existing pollution by"participating in
pollution remediation activities such as site assessments and cleanups. Statement
u No. 49 had no impact on the 2008 financial statements.
' GASB Statement No. 51
J In June 2007, the GASB issued Statement No. 51, "Accounting and Financial
Reporting for Intangible Assets." This statement clarifies pertinent provisions of
GASB Statement No. 34, which address capital asset reporting requirements. The
Town is required to adopt GASB Statement No. 51 for its 2010 financial
statements.
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GASB Statement No. 52
In November 2007, the GASB issued Statement No. 52, "Land and Other Real
Estate Held as Investments by Endowments." This statement establishes
1 consistent standards for the reporting of land and other real estate held as
"_I investments by essentially similar entities. It requires endowments to report their
land and other real estate investments at fair value. Governments also are required
to report the changes in fair value as investment income and to disclose the
methods and significant assumptions employed to determine fair value, and other
information that they currently present for other investments reported at fair
value. The Town is required to adopt GASB Statement No. 52 for its 2009
I
financial statements.
GASB Statement No. 53
j In June 2008, the GASB issued Statement No. 53, "Accounting and Financial
Reporting for Derivative Instruments." This statement addresses the recognition,
measurement, and disclosure of information regarding derivative instruments
entered into by.state and local governments. The Town is required to adopt GASB
Statement No. 53 for its 2010 financial statements.
GASB Statement No. 54
In March 2009,the GASB issued Statement No. 54,"Fund Balance Reporting and
J Governmental Fund Type Definitions." This statement enhances the usefulness of
fund balance information by providing clearer fund balance classifications that
can be more consistently applied and by clarifying the existing governmental fund
�`i type definitions. This statement establishes fund balance classifications that
comprise a hierarchy based primarily on the extent to which -a government is
bound to observe constraints imposed upon the.use of the resources reported in
governmental funds. The Town is required to adopt GASB Statement No. 54 for
its 2011 financial statements.
NOTE 2—EXPLANATION OF CERTAIN DFFERENCES 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 Government Funds.
A. Total Fund Balances of Governmental Funds vs. Net Asset of Governmental
Activities:
Total fund balances of the Town's Governmental Funds differ from "net assets"
of governmental activities reported in the Statement of Net Assets. This
difference primarily results from the additional long-term economic focus of the
Statement of Net Assets versus the solely current financial resources focus of the
Governmental Fund Balance Sheet.
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The basic financial statements contain a detailed reconciliation of the items
creating the differences between fund balance reported in the Governmental Fund
Statements and Net Assets reported on the Statement of Net Assets.
1 J B. Explanation of Difference between Governmental Funds Operating Statement and
the Statement of Activities:
IJ Differences between the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balance and the Statement of Activities fall
into one of three broad categories. The amounts shown below represent these
differences as-follows:
_1
• Long-term revenue differences arise because Governmental Funds report
revenues only when they are considered"available," whereas the Statement of
Activities reports revenues when earned. Differences in long-term expenses
arise because Governmental Funds report on a modified accrual basis,
( whereas the accrual basis of accounting is used on the Statement of Activities.
• Capital related differences include the difference between proceeds for the
sale of capital assets reported on governmental fund statements and the gain or
loss on the sale of assets as reported on the Statement of Activities, and the
- difference between recording an expenditure for the purchase of capital items
in the governmental fund statements and depreciation expense on those items
as recorded in the Statement of Activities.
• Long-term debt transaction differences occur because both interest and
- principal payments are recorded as expenditures in the Governmental Fund
statements, whereas interest payments are recorded in the Statement of
L J Activities as incurred, and principal payments are recorded as a reduction of
liabilities in the Statement of Net Assets.
The basic financial statements contain a detailed reconciliation of the items
creating the differences between the change in fund balance reported in the
Governmental Fund Statements and the change in net assets reported in the
Statement of Activities.
NOTE 3--CASH
A. Cash
The Town of Ithaca's investment policies are governed by State statutes, as
1._ previously described in these Notes. Deposits are valued at cost or cost plus
interest and are categorized as either:
I I 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, 2008,per the bank,
i_J were $5,706,008 and$58,547.
J Governmental funds $ 5:703,843 $ - $ -
Agency funds $ 58,489 $ - $ -
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NOTE 4—INTER-FUND ACTIVITY
j- Inter-fund receivables and payables at December 31, 2008, were as follows:
Inter-Fund Inter-Fund
._, Fund Type Receivables Payables
General town-wide $ - $ -
General-part town - -
Highway - -
l
Water - 80
Sewer 80 -
Capital Projects - -
f Debt Service - -
` Agency - -
i
$ 80, $ 80'
Inter-fund revenues and expenditures at December 31, 2008, were as follows:
i
Inter-Fund Inter-Fund
-,` Fund Type Revenues Expenditures
General town-wide $ 338,671 $ 147,085
General -part town - 37,912
Highway - 37,911
- Water 30,425 859,517
Sewer 60,850 350,008
Capital Projects 91,275 30,425
l Debt Service 1,093,762 152,125
$ 1,614,983 $ 1,614,983
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NOTE 5-CAPITAL ASSETS
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Capital asset balances and activity for the year ended December 31, 2008, were as
follows:
Beginning Disposals& Ending
Balance Additions Reclassifications Balance
Governmental Activities
CAPITAL ASSETS THAT ARE
NOT DEPRECIATED:
Land $ 293,163 $ - $ - $ 293,163
Construction in progress 1,570,895 704,018 - 2,274,913
TOTAL NON-DEPRECIABLE
HISTORICAL COST 1,864,058 704,018 - 2,568,076
CAPITAL ASSETS THAT ARE DEPRECIATED
Buildings 3,959,825 - - 3,959,825
- Equipment and machinery 3,009,573 214,730 138,784 3,085,519
I, Furniture and furnishings 183,691 - - 183,691
Non-building improvements 288,830 - - 288,830
(.. Infrastructures 5,641,394 - - 5,641,394
TOTAL DEPRECIABLE HISTORICAL COST 13,083,313 214,730 138,784 13,159,259
LESS ACCUMULATED DEPRECIATION
Buildings 617,785 1151.733 - 733,518
Equipment and machinery 1,064,565. 200,879 61,364 1,204,080
Furniture and furnishings 131,038 18,369 - 149,407
Non-building improvements 256,051 7,120 - 263,171
Infrastructures 591,892 141,535 - 733,427
TOTAL ACCUMULATED DEPRECIATION 2,661,331 483,636 61,364 3,083,603
TOTAL HISTORICAL COST, net $ 12,286,040 $ 435,112 $ 77,420 $ 12,643,732
Depreciation was charged to governmental functions as follows:
j
General government support $ 93,456
j Transportation 192,947
Culture and recreation 19,599
Home and community services 177,634
" Total Depreciation Expense $ 483,636
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NOTE 6-LIABILITIES
A. Pension Plans
-` Plan Description
The Town of Ithaca participates in the New York State and. Local Employees'
�I 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. . 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
(__J 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
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2008 $ 233,032
2007 $ 235,438
j 2006 $ 240,374
2005 $ 246,646
2004 $ 273,864
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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
.I 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
L Town's total unpaid liability at the end of 2008 fiscal year was $0.
--.i 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
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Town's share.
B. Short-Term Debt
Liabilities for bond anticipation notes (BANs) are generally accounted for in the
j 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 (115) of the original BAN
borrowing.
State law requires that BANs issued for capital purposes be converted to long-
term. obligations within five years after the original issue date. However, BANs
issued for assessable improvement projects may be renewed for periods
equivalent to the maximum life of the permanent financing, provided that
stipulated annual reductions of principal are made.
In 2007, the Town borrowed $1,217,000 from the Sewer Fund through the
issuance of two bond anticipation notes in the amounts of$693,000 and $594,000.
j The BANs bear annual interest at 4.50% and the proceeds are being used to fund
water improvement projects. The BANs are expected to be redeemed with the
proceeds from the issuance of serial bonds. The BANs are considered interfund
obligations and the receivable and the payable are eliminated in the government-
wide statements.
C. Long-Term Debt
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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
i assets to be borne by the present and future taxpayers.
At December 31, 2008, the total principal indebtedness outstanding of the Town
of Ithaca aggregated $4,246,000. Of this amount, $760,000 was subject to the
Town's constitutional debt limit and represented 1.1% of its debt limit. Further
calculations disclosed that the Town of Ithaca meets the 7% indebtedness
requirement and has not exhausted its borrowing and repayment abilities.
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_i The following is a summary of the Town of Ithaca's outstanding serial bonds-and bond
anticipation notes for the year ending December 31, 2008:
U Original
Date Original Interest Maturity Outstanding
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Description of Issue Amount Rate Date 12/31/2008
U 1991 Public Improvement 7/26/91 4,465,000 6.63% 7/26/11 $ 750,000
2003 Public Improvement 12/29/63 1,000,000 3.95% 12/29/17 640,000
v 2004 Water Improvement 2/12/04 1,000,000 3.88% 2/12/19 736,000
2004 Public Improvement 11/15/04 2,000,000 4.35% 11/15/24 1,600,000
2005 Water Improvement 9/28/05 500,000 3.60% 9/28/15 400,000
2006 Public Improvement 1/7/06 200,000 3.75% 1/7/11 120,000
Total Serial Bonds Payable $ 4,246,000
Interest on long-term debt paid during the year was:
Interest paid $ 222,736
Less interest accrued-prior year ( 64,675)
Plus interest accrued- current year 53,693
$ 211,754
Interest expense has been allocated to the following government functions:
t�f Transportation $ 32,604
Home and community services 179,150
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$ 211,754
- Long-term liability balances and activity for the year are summarized below:
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Beginning Ending
i I Governmental Activities Balance Issued Redeemed Balance
L� Serial bonds $ 4,963,000 $ - $ ( 717,000) $ 4,246,000
Bond anticipation notes - - - -
Total serial bonds and
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bond anticipation notes $ 4,963,000 $ - $ ( 717,000) $ 4,246,000
Other liabilities:
l Compensated absences 126,890 8,160 - 135,050
u Other post-employment benefits - 558,449 - 558,449
( Total long-term liabilities $ 126,890 $ 566,609 $ ( 717,000) $ 693,499
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Activity for compensated absences is shown at net due to the impracticability of
determining these amounts separately. Payments of compensated absences are dependent
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upon future factors and, therefore, the timing of such payments cannot be determined.
Compensated absences are reflected as a long-term liability in the Statement of Net
Assets.
The following is a summary of the maturity of long-term indebtedness:
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Serial Bonds Year Principal Interest Total
t_
2009 577,000 187,080 764,080
2010 578,000 157,699 735,699'
1 2011 588,000 128,281 716,281
2012 298,000 98,511 396,511
_ 2013 298,000 . 86,803 384,803
1 2014-2018 1,240,000 264,947 1,504,947
2019 -2023 567,000 79,489 646,489
2024&beyond 100,000 2,250 102,250
Total Serial Bonds $ 4,246,000 $ 1,005,060 $ 5,251,060
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NOTE 7—UNRESTRICTED BALANCES
Of the$3,910,428 in unrestricted net assets, $950,229 has been appropriated by the Town
for 2008 expenditures.
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NOTE 8—DEFICIT FUND-BALANCE- CAPITAL PROJECTS FUND
The deficit fund balance in the Capital Projects Fund is expected to be eliminated through
recognition of the proceeds of long-term financing to fund ongoing projects.
NOTE 9 -POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
Plan Description. The Town of Ithaca administers a single-employer defined benefit
healthcare plan ("the Retiree Health Plan"). The plan provides lifetime healthcare _
insurance for eligible retirees and their spouses through the Town's group health
insurance plan, which covers both active and retired members. The Town pays a portion
of retiree's premiums for healthcare insurance based on the number of years of service to
Li the Town at the time of retirement.
In addition, retiring employees can covert unused sick and vacation time to offset
portions healthcare premiums that are the retiree's responsibility. The Town tracks the
J 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.
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Funding Policy. The Town contributes a portion of the retiree's healthcare premium
according to the following schedule:
�J Years of Town
Service Contribution
j 30 and over 75.0%
( J 25-29 50.0%
15-24 35.0%
�I 5-14 20.0%
less than 5 0.0%
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1 J For fiscal year 2008, the Town contributed $26,898 to the plan.
-f Annual OPEB Cost and Net OPEB Obligation. The Town's annual . other
Upostemployment benefit (OPEB) cost (expense) is calculated based on the annual
required contribution of the employer (ARC). The Town has elected to calculate the ARC
and related information using the alternative measurement method permitted by GASB
Statement 45 for employers in plans with fewer than one hundred total plan members.
The ARC represents a level of funding that, if paid on an ongoing basis, is projected to
cover normal cost each year and to amortize any unfunded actuarial liabilities (or funding
j excess) over a period not to exceed thirty years. The following table shows the
components of the Town's annual OPEB cost for the year, the amount actually
contributed to the plan, and changes in the Town's net OPEB obligation to the Retiree
. Health Plan (the Town implemented GASB 45 in 2008, so there was no prior calculation
of an OPEB obligation):
Annual required contribution $ 349,442
Interest on net OPEB obligation -
Adjustment to annual required contribution
�- Annual OPEB expense 349,442
L) Contributions made ( 26,898)
Increase in net OBEB obligation 322,544
Net OPEB obligation-beginning of year -
Net OPEB obligation- end of year $ 322,544
u The Town's annual OPEB cost, the percentage of annual OPEB cost contributed to the
plan, and the net OPEB obligation for fiscal year 2008 is as follows (Note: Information
for the two preceding years is not available due to implementation of GASB 45 in 2008):
Percentage of Net
j Year Annual Annual OPEB OPEB
—' Ended OPEB Cost Cost Contributed Obligation
12/31/2008 $ 349,442 7.70% $ 322,544
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UFunded Status and Funding.Progress-As of December 31, 2008, the actuarial accrued
liability for benefits was $3,302,265, all of which was unfunded. The covered payroll
(annual payroll of active employees covered by the plan) was $2,461,734 and the ratio of
the unfunded actuarial accrued liability to the covered payroll was 134.1 percent.
The projection of future benefit payments for an ongoing plan involves estimates of the
value of reported amounts and assumptions about the probability of occurrence of events
far into the future. Examples include assumptions about future employment, mortality,
and the healthcare cost trend. Amounts determined regarding the funded status of the plan
( j and the annual required contributions of the employer are subject to continual revision as
actual results are compared with past expectations and new estimates are made about the
future. The schedule of funding progress, presented as required supplementary
information following the notes to the financial statements, presents multi-year trend
information about whether the actuarial value of plan assets is increasing or decreasing
-over time relative to the actuarial accrued liabilities for benefits.
Methods and Assumptions. Projections of benefits for financial reporting purposes are
U based on the substantive plan (the plan as understood by the employer and plan members)
and include the types of benefits provided at the time of each valuation and the historical
-'I pattern of sharing of benefit costs between the employer and plan members to that point.
The methods and assumptions used include techniques that are designed to reduce the
effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
{- assets, consistent with the long-term perspective of the calculations.
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The following simplifying assumptions were made:
Retirement age for active employees—Based on the historical average retirement age for
the covered group, active plan members were assumed to retire at age 62, or at the first
subsequent year in which the member would qualify for benefits.
Marital status—Marital status of members at the calculation date was assumed to
continue throughout retirement.
Mortality—Life expectancies were based on mortality tables from the National Center for
Health Statistics. The 1999 United States Life Tables for Males and for Females were
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used.
Turnover—Non-group-specific age-based turnover data from GASB Statement 45 were
used as the basis for assigning active members a probability of remaining employed until
the assumed retirement age and for developing an expected future working lifetime
assumption for purposes of allocating to periods the present value of total-benefits to be
�J paid.
Healthcare cost trend rate—The expected rate of increase in healthcare insurance
Li premiums was based on current premium rates and projections of the Office of the
Actuary at the Centers for Medicare & Medicaid Services. A rate of 15.0 percent was
-` used initially, reduced to an ultimate rate of 6.0 percent after six years.
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Health insurance premiums-2008 health insurance premiums for retirees were used as
i the basis for calculation of the present value of total benefits to be paid.
Inflation rate—The expected long-term inflation assumption of 2.8 percent was based on
projected changes in the Consumer Price Index for Urban Wage Earners and Clerical
Workers (CPI-W) in The 2007 Annual Report of the Board of Trustees of the Federal
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L Old Age and Survivors Insurance and Disability Insurance Trust Funds for an
intermediate growth scenario.
U� Payroll growth rate—The expected long-term payroll growth rate was assumed to equal
the rate of inflation.
Based on the historical and expected returns of the Town's short-term investment
— portfolio, a discount rate of 4.0 percent was used. In addition, a simplified version of the
entry age actuarial cost method was used. The unfunded actuarial accrued liability is
being amortized as a level percentage of projected payroll on an open basis. The
remaining amortization period at December 31, 2008, was thirty years.
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TOWN OF ITHACA
SCHEDULE OF FUNDING PROGRESS
FOR THE RETIREE HEALTH PLAN
December 31;2008
Actuarial
Accrued
Actuarial Liability
Value (AAL) Unfunded
Actuarial of Simplified AAL Funded
Valuation Assets . Entry Age (UAAL) Ratio
Date (a) (b) (b-a) (a/b)
12/31/2008 $ - $ 3,302,265 $ 3,302,262 0.000/0
4
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See Independent Auditor's Report. 71
UAAL as a
I Percentage
Covered of Covered
Payroll Payroll
I I_ ( c) ((b-a) /c)
2,461,734 134.1%
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TOWN OF ITHACA -
SCHEDULE OF REVENUES AND EXPENDITURES
COMPARED TO BUDGET
MAJOR FUNDS
December 31, 2008
GENERAL
Original Modified
Budget Budget Actual 11
REVENUES: -J
Real property taxes $ 1,771,501 $ 1,771,501 $ 1,771,501 -
Real property tax items 43,500. 56,254 56,254 ,
Nonproperty tax items 757,981 1,207,610 1,266,576
Departmental income 100,350 230,292 230,291 : "1
Intergovernmental charges 54,427 61,909 61,909
Interest income 110,000 112,066 112,824
Licenses and permits 3,000 10,593 10,593
Fines and forfeitures 300,000 254,673 254,673 _
Sale of property and compensation for loss - 2,066 2,479
Local sources - 168,478 ( 26,540)
State sources 354,200 467,947 467,951 -'
TOTAL REVENUES 3,494,959 4,343,389 4,208,511 ,
OTHER SOURCES:
Interfund transfers 395,871 338,671 338,671
Proceeds of obligations 140,316 - -
Appropriated fund balance 531,049 - -
TOTAL REVENUES AND OTHER SOURCES 4,562,195 4,682,060 4,547,182
EXPENDITURES: J
General governmental support 1,559,928 1,475,553 1,475,553
Public safety 125,362 55,401 55401
Transportation 284,849 287,450 287:450
Culture and recreation 896,062 690,166 690,166
Home and community services 732,568 . 733,419 733,418
Employee benefits 778,430 832,883 637,067
Debt service(principal and interest) - - - -
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TOTAL EXPENDITURES 4,377,199 4,074,872 3,879,055
OTHER USES: _
Interfund transfers 184,996 184,996 184,997 ' I
TOTAL EXPENDITURES AND OTHER USES 4,562,195 4,259,868 4,064,052 -'
EXCESS (DEFICIT) OF REVENUES OVER.EXPENDITURES - 422,192 483,130
FUND BALANCE,beginning of year 2,580,598 2,580,598 2,580,598
FUND BALANCE,end of year $ 2,580,598 $ 3,002,790 $ 3,063,728
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See Independent Auditor's Report.
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HIGHWAY
Original Modified
Budget Budget Actual-
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J 1,542,841 1,542,841 1,542,841
12,000 24,877 24,877
10,000 6,641 6,641
16,000 19,160 19,160
` 57,676 26,481
��.-...` 61,000 74,019 74,019
1,641,841 1,725,214 1,694,019
'{ 336,518 - -
1,978,359 1,725,214 1,694,019
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420, 315 315
1,559,328 1,541,562 1,541,562
380,700 426,617 399,092
1,940,448 1,968,494 1,940,969
1, 37,911 37,911 37,911
1,978,359 2,006,405 1,978,880
{
( 281,191) ( 284,861)
854,979 854,979 854,979
$ 854,979 $ 573,788 $ 570,118
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TOWN OF ITHACA
SCHEDULE OF REVENUES AND EXPENDITURES
COMPARED TO BUDGET
MAJOR FUNDS (continued)
December 31, 2008
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WATER -
Original Modified
Budget Budget Actual
REVENUES:
Real property taxes $ 697,763 $ 697,763 $ 697,763
Real property tax items 6,000 7,100 7,100
Nonproperty tax items - - -
Departmental income 1,772,000 1,794,286 1,794,286
Intergovernmental charges 500 441 441
Interest income 3,000 .3,733 3,733 _
Licenses and permits - - -
Fines and forfeitures - - - -
Sale of property and compensation for loss - -
Local sources - 50,714 17,029
State sources - - -
TOTAL REVENUES 2,479,263 2,554,037 2,520,352 -
OTHER SOURCES:
Interfund transfers - - -
Proceeds of obligations 1,500,000 - 30,425
Appropriated fund balance ( 5,200) - -
TOTAL REVENUES AND OTHER SOURCES 3,974,063 2,554,037 2,550,777
EXPENDITURES:
General governmental support 51,417 53,517 53,517
Public safety - - - {
Transportation - - -
Culture and recreation - - -
Home and community services 2,988,723 1,511,001 1,511,001
Employee benefits 94,400 77,578 72,242
Debt.service(principal and interest) - -
TOTAL EXPENDITURES 3,134,540 1,642,096 1,636,760
OTHER USES:
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Interfund transfers 839,523 859,517 859,517 1
TOTAL EXPENDITURES AND OTHER USES 3,974,063 2,501,613 2,496,277
EXCESS (DEFICIT)OF REVENUES OVER EXPENDITURES - 52,424 54,500 1
FUND BALANCE,beginning of year 471,510 471,510 471,510
FUND BALANCE, end of year $ 471,510 $ 523,934 $ 526,010 --
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See Independent Auditor's Report.
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'-j SEWER FIRE
Original Modified Original Modified
Budget Budget Actual Budget Budget Actual
$ 147,763 $ 147,763 $ 154,863 $ 3,008,606 $ 3,008,606 $ 3,008,606
6,700 7,100 - 9,400 9,580 .9,580
1,427,000 1,293,645 1,293,645 - -
1,000 1,368 1,368 - - -
54,000 72,721 11,871 50,000 48,101 48,101
- - - 19,000 18,258 18,258
1,636,463 1,522,597 1,461,747 3,087,006 3,084,545 3,084,545
1 60,850
560,752 _ - -
2,197,215 1,522,597 1,522,597 3,087,006 3,084,545 3,084,545
44,117 40,664 40,664 600 3,746 3,745
- - - 3,268,281 3,227,742 3,123,027
1,756,320 1,211,173 1,211,173 - - -
46,770 34,324 33,289 - - -
1,847,207 1,286,161 1,285,126 3,268,881 3,231,488 3,126,772
350,008 350,068 350,008 - - -
2,197,215 1,636,169 1,635,134 3,268,881 3,231,488 3,126,772
- ( 113,572) ( 112,537) ( 181,875) ( 146,943) (. 42,227)
2,124,738 2,124,738 2,124,738 74,197 74,197 74,197
$ 2,124,738 $ 2,011,166 $ 2,012,201 $ ( 107,678) $ ( 72,746) $ 31,970
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TOWN OF ITHACA
CAPITAL PROJECT FUND _
DETAILED BALANCE SHEET
December 31,2008
ASSETS
Active Projects
First Trumansburg
Street Gateway Water
Interceptors trail Main
CASH: -
Cash in savings $ 55,670 $ 84,969 $ 42,473
TOTAL CASH 55,670 84,969 42,473
TOTAL ASSETS $ 55,670 $ 84,969 $ 42,473
LIABILITIES AND FUND BALANCE
LIABILITIES:
Accrued liabilities $ 421,096 $ - $ -
Ban payable - - 641,663
TOTAL LIABILITIES 421,096 - 641,663
FUND BALANCE: _I
Unappropriated fund balance ( 365,426) 84,969 ( 599,190)
TOTAL FUND BALANCE ( 365,426) 84,969 ( 599,190)
TOTAL LIABILITIES & FUND EQUITY $ 55,670 $ 84,969 $ 42,473 i
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See Independent Auditor's Report.
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Completed
Project
Hanshaw Rd Pew
I Water Bike
Main Trail Total
l
$ 22,779 $ - $ 205,891
` 22,779 - 205,891
$ _ 22,779 $ - $ 205,891
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421,096
!` _1 484,062 - 1,125,725
484,062 - 1,546,821
( 461,283) - ( 1,340,930)
( 461,283) - ( 1,340,930)
$ 22,779 $ - $ 205,891
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TOWN OF ITHACA -
CAPITAL PROJECTS FUND
DETAILED REVENUES AND EXPENDITURES
December 31,2008
Active projects j
First Trumansburg
Street Gateway Water
Interceptors Trail Main
REVENUE:
Interest earnings $ 3,181 $ 772 $ 1,598
Interfund transfers - - 52,027
State and federal grants - - -
TOTAL REVENUE $ 3,181 $ 772 $ 53,625
EXPENDITURES:
Sewer construction contract $ 421,591
Park and development costs - - -
Engineering design - - 10,000
Contract administration - - 4,000
Bidding process - - 2,500
Water construction contract - - 98,192
Interfund transfers - - 17,342
Survey - - 1,000
Inspection - - 16,964
Legal services - - 1,921. _
TOTAL EXPENDITURES $ 421,591 $ - $ 151,919
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See Independent Auditor's Report. ` 1
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Completed
Proj ect
Hanshaw Rd Pew
Water Bike
Main Trail Total
$ 1 A5 $ 444 $ 7,400
{`.� 39,248 - 91,275
- 36,427 36,427
j $ 40,653 $ 36,871 $ 135,102
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421,591
6,603 6,603
1,000 - 11,000
2,000 - 6,000
2,500 - 5,000
139,785 - 237,977
13,083 - 30,425
- 1,000 - 2,000
- - 16,964
1,566 - 3,487
� $ 160,934 $ 6,603 $ 741,047
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TOWN OF ITHACA
INDEPENDENT AUDITORS' REPORT ON
ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF
Ji FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH
t--` GOVERNMENT AUDITING STANDARDS
,J YEAR ENDED DECEMBER 31,2008
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SCIARABBA
L WnKERTNO
CERTIFIED PUBLIC ACCOUNTANTS
BUSINESS CONSULTANTS
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
August 3, 2009 .
Supervisor and Town Board
Town of Ithaca
Ithaca,New York 14850
i
t We have audited the accompanying financial statements of the governmental activities, each
major fund, and the aggregate remaining fund information of the Town of Ithaca, as of and for the
year ended December 31, 2008, which collectively comprise the Town's basic financial statements,
_._ and have-issued our report thereon dated August 3, 2009. 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
1 Comptroller General of the United States.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Town of Ithaca's internal control
over financial reporting,as a basis for designing our auditing procedures for the purpose of
expressing our opinion on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Town of Ithaca's internal control over financial reporting.
Accordingly, we do not express an opinion on the effectiveness of the Town of Ithaca's internal
i' control over financial reporting.
A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control
deficiency, or combination of control deficiencies, that adversely affects the Town of Ithaca's
ability to initiate, authorize, record, process, or report financial data reliably in accordance with
? generally accepted accounting principles such that there is more than a remote likelihood that a
misstatement of the Town of Ithaca's financial statements that is more than inconsequential will
not be prevented or detected by the Town of Ithaca's internal control.
A material weakness is a significant deficiency, or combination of significant
deficiencies, that results in more than a remote likelihood that a material misstatement of the
7 financial statements will not be prevented or detected by the Town of Ithaca's internal control.
Our consideration of the internal control over financial reporting was for the limited
"1 purpose described in the first paragraph of this section and would not necessarily identify all
deficiencies in the internal control that might be significant deficiencies or material weaknesses.
We did not identify any deficiencies in internal control over financial reporting that we consider
to be material weaknesses, as defined above.
U
i200 East Buffalo Street,Suite 402 28 North Main Street
Ithaca,New York 14850 Cortland,New York 13045
607-272-5550/607-273-6357(Fax) 607-756-0073/607-756-0052(Fax) www.sciarabbawalker.com
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town of Ithaca's financial
statements are free of material misstatement, we performed tests of its compliance with certain
a 1 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.
We noted certain matters that we reported to management of the Town of Ithaca in a
- separate letter dated August 3, 2009.
This report is intended solely for the information and use of the Town Board,
management and others within the entity, and is not intended to be and should not be used by
anyone other than these specified parties. However, this report is a matter of public record and its
distribution is not limited.
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Certified Public Accountants
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