HomeMy WebLinkAbout2022 Town of Ithaca Audit Report
TOWN OF ITHACA, NEW YORK
Basic Financial Statements
Supplementary Information and
Independent Auditors’ Report
December 31, 2022
TOWN OF ITHACA, NEW YORK
Table of Contents
Page
Independent Auditors’ Report 1 - 3
Management’s Discussion and Analysis 4 - 12
Financial Statements:
Statement of Net Position 13
Statement of Activities 14
Balance Sheet - Governmental Funds 15
Reconciliation of the Balance Sheet - Governmental Funds to the
Statement of Net Position 16
Statement of Revenue, Expenditures and Changes in Fund Balances -
Governmental Funds 17
Reconciliation of the Statement of Revenue, Expenditures and Changes
in Fund Balances - Governmental Funds to the Statement of
Activities 18
Statement of Net Position - Proprietary Funds 19
Statement of Revenue, Expenses and Changes in Fund Net Position -
Proprietary Funds 20
Statement of Cash Flows - Proprietary Funds 21 - 22
Statement of Fiduciary Net Position - Fiduciary Funds 23
Statement of Changes in Fiduciary Net Position - Fiduciary Funds 24
Notes to Financial Statements 25 - 52
TOWN OF ITHACA, NEW YORK
Table of Contents
Page
Required Supplementary Information:
Schedule of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual - General Fund 53
Schedule of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual - Highway Fund 54
Schedule of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual - Fire Protection 55
Schedule of Changes in the Town’s Total OPEB Liability and Related Ratios 56
Schedule of the Town’s Proportionate Share of the Net Pension Asset/Liability 57
Schedule of the Town’s Pension Contributions 58
Other Supplementary Information:
Combining Balance Sheet - Nonmajor Governmental Funds 59
Combining Statement of Revenue, Expenditures and Changes in Fund
Balances - Nonmajor Governmental Funds 60
Independent Auditors’ Report on Internal Control Over Financing
Reporting and on Compliance and Other Matters Based on an Audit
of Financial Statements Performed in Accordance with Government
Auditing Standards 61 - 62
* * * * * *
INDEPENDENT AUDITORS’ REPORT
Town Board and Supervisor
Town of Ithaca, New York:
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the Town of Ithaca,
New York (the Town), as of and for the year ended December 31, 2022, and the related notes to
financial statements, which collectively comprise the Town’s basic financial statements as listed in
the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the Town, as of December 31, 202 2, and the
respective changes in financial position, and, where applicable, cash flows thereof for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities
under those standards are further described in the Auditors’ Responsibilities for the Audit of the
Financial Statements section of our report. We are required to be independent of the Town and to
meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating
to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinions.
Emphasis of Matter
As described in notes 1(u) and 12 to the financial statements, the Town adopted the provisions of
Governmental Accounting Standards Board (GASB) Statement No. 75 - “Leases,” during the year
ended December 31, 2022.
As described in note 12 to the financial statements, a restatement of the prior period was made during
the year ended December 31, 2022. Our opinions are not modified with respect to this matter.
2
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently
known information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The risk
of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood
that, individually or in the aggregate, they would influence the judgment made by a reasonable user
based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Town’s internal control. Accordingly, no such opinion is
expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Town’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control-
related matters that we identified during the audit.
3
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and additional information as listed in the table of contents on
pages 53 through 58 be presented to supplement the basic financial statements. Such information is
the responsibility of management and, although not a part of the basic financial statements, is required
by GASB who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied certain
limited procedures to the required supplementary information in accordance with GAAS, which
consisted of inquiries of management about the methods of preparing the information and comparing
the information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We
do not express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town’s basic financial statements. The accompanying combining nonmajor
fund financial statements are presented for purposes of additional analysis and are not a required part
of the basic financial statements. Such information is the responsibility of management and was
derived from and relates directly to the underlying accounting and other records used to prepare the
basic financial statements. The information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare
the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with GAAS. In our opinion, the combining nonmajor fund financial
statements are fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 26,
2023 on our consideration of the Town’s internal control over financial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion
on the effectiveness of the Town’s internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering Town’s internal control over financial reporting and compliance.
Williamsville, New York
June 26, 2023
4
TOWN OF ITHACA, NEW YORK
Management’s Discussion and Analysis
December 31, 2022
The following is a discussion and analysis of the Town of Ithaca, New York’s (the Town) financial
performance for the year ended December 31, 2022. The Town’s discussion and analysis is designed
to (a) assist the reader in focusing on significant financial issues, (b) provide an overview of the
Town’s financial activity, (c) identify changes in the Town’s financial position (its ability to address
the next and subsequent year challenges), (d) identify any material deviations from the financial plan
(the approved budget), and (e) identify individual issues or concerns.
This section is a summary of the Town’s financial activities based on currently known facts, decisions,
or conditions as provided by the Town’s Finance Officer. It is also based on both the Government-
Wide and fund financial statements. The results of the current year are discussed in comparison with
the prior year, with an emphasis placed on the current year. This section is only an introduction and
should be read in conjunction with the Town’s financial statements, which immediately follow this
section.
FINANCIAL HIGHLIGHTS
• The Town’s governmental and business-type net position, as reflected in the statement of
activities, increased by $3,543,470 and $1,036,876, respectively.
• The Town’s governmental fund balance increased by $892,544.
• The general fund’s (the primary operating fund) fund balance increased by $433,033.
• At the end of the current year, unassigned fund balance for the general fund was $7,086,470.
• The Town adopted the provisions of Governmental Accounting Standards Board Statement No.
87 - “Leases,” during the year ended December 31, 2022. Accordingly, net position of the
governmental activities and fund balance of the general fund were restated as of December 31,
2021 by $23,972.
• A restatement of December 31, 2021 governmental net position of $4,424,046 was made to
account for the investment in a joint venture.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of three parts: Management’s Discussion and Analysis (this section), the
basic financial statements, and supplementary information. The basic financial statements include
two kinds of statements that present different views of the Town:
• The first two statements are Government-Wide financial statements that provide both short-term
and long-term information about the Town’s overall financial status.
• The remaining statements are fund financial statements that focus on individual parts of the Town,
reporting the Town’s operations in more detail than the Government-Wide statements. The fund
financial statements concentrate on the Town’s most significant funds.
5
TOWN OF ITHACA, NEW YORK
Management’s Discussion and Analysis, Continued
• The governmental funds statements tell how basic services were financed in the short-term as well
as what remains for future spending. The governmental activities include most of the Town ’s
basic services such as public safety, parks and recreation, and general administration. Real
property taxes finance most of these activities.
• The proprietary funds provide the same type of information as the Government-Wide financial
statements. The proprietary funds are those that the Town charges customers to provide. These
include the sewer and water services offered by the Town.
• Fiduciary funds statements provide information about the financial relationships in which the
Town acts solely as a trustee or agent for the benefit of others.
The financial statements also include notes that explain the information in the statements and provide
more detailed data. The financial statements are followed by a section of required supplementary
information that further explains and supports the financial statements with a comparison of the
Town’s budget for the year.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The Government-Wide statements report information about the Town as a whole using accounting
methods similar to those used by private-sector companies. The statement of net position includes
all of the Town’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources.
All of the current year’s revenue and expenses are accounted for in the statement of activities
regardless of when cash is received or paid.
The two Government-Wide statements report the Town’s net position and how they have changed.
Net position, the difference between the Town’s assets, deferred outflows of resources, liabilities, and
deferred inflows of resources, is one way to measure the Town’s financial health or position.
Over time, increases or decreases in the Town’s net position are an indicator of whether its financial
position is improving or deteriorating. To assess the Town’s overall health, you need to consider
additional non-financial factors such as changes in the Town’s property tax base and the condition of
facilities and infrastructure.
In the Government-Wide financial statements, the Town’s activities are shown as governmental
activities and business-type activities. The Town’s basic services are included as governmental
activities such as road maintenance (transportation), and administration (general governmental
support). Real property taxes finance most of these activities. Business-type activities are reported
separately as they recover most of their expenses through charges to customers for t he services
provided.
6
TOWN OF ITHACA, NEW YORK
Management’s Discussion and Analysis, Continued
FUND FINANCIAL STATEMENTS
The fund financial statements provide more detailed information about the Town’s funds, focusing
on its most significant, or major funds, opposed to the Town as a whole. Funds are accounting devices
the Town uses to keep track of specific sources of funding and spending on programs . Some funds
are required by New York State law and by bond covenants. The Town establishes other funds to
control and to manage money for purposes, such as repaying its long-term debt, or to show that it is
properly using certain revenue. The Town has three kinds of funds:
• Governmental Funds - Most of the Town’s basic services are included in governmental funds,
which generally focus on (1) how cash and other financial assets can readily be converted to cash
and (2) the balances left at year end that are available for spending. Consequently, the
governmental funds statements provide a detailed short-term view that helps you determine
whether there are more or fewer financial resources that can be spent soon to finance the Town’s
programs. Because this information does not encompass the additional long-term focus of the
Government-Wide statements, reconciling statements have been added to explain the relationship
between the governmental funds’ statements and the Government-Wide statements.
• Proprietary Funds - Consist of the sewer and water funds, those funds for which the Town
provides services and then charges customers for providing the service. The proprietary
statements include all assets, deferred outflows of resources, liabilities, and deferred inflows of
resources, both short-term and long-term, including debt and capital assets. Accrual accounting
is used, and focus is on economic resources.
• Fiduciary Funds - The Town acts in an agency capacity for assets that are ultimately transferred
to others. The Town excludes these activities from the Government-Wide financial statements
because it cannot use these assets to finance its operations.
7
TOWN OF ITHACA, NEW YORK
Management’s Discussion and Analysis, Continued
FINANCIAL ANALYSIS OF THE TOWN AS A WHOLE
• The Town’s combined net position increased by $4,580,346.
• Current assets and current liabilities increased by $437,121 and $1,169,293, respectively.
• Long-term serial bond debt decreased by $1,525,000 due to principal payments.
• Unrestricted net position increased by $366,208.
Figures A-1 and A-2 present condensed information derived from the Town’s Government-Wide
statements.
Figure A-1
2022 2021*Change 2022 2021 Change
Assets:
Current assets 19,360,891$ 18,622,952 737,939 5,947,230 6,248,048 (300,818)
Noncurrent assets 23,653,692 19,604,910 4,048,782 21,719,128 20,785,020 934,108
Total assets 43,014,583 38,227,862 4,786,721 27,666,358 27,033,068 633,290
Deferred outflows of resources 3,843,794 5,026,912 (1,183,118) 391,673 425,892 (34,219)
Liabilities:
Current liabilities 2,991,556 2,135,522 856,034 1,812,869 1,499,610 313,259
Noncurrent liabilities 11,459,686 12,794,570 (1,334,884) 9,092,748 9,973,107 (880,359)
Total liabilities 14,451,242 14,930,092 (478,850) 10,905,617 11,472,717 (567,100)
Deferred inflows of resources 5,626,452 5,087,469 538,983 504,933 375,638 129,295
Net position:
Net investment in capital assets 15,138,183 12,839,441 2,298,742 12,387,563 10,642,261 1,745,302
Restricted 1,845,398 1,675,304 170,094 12,255 12,255 -
Unrestricted 9,797,102 8,722,468 1,074,634 4,247,663 4,956,089 (708,426)
Total net position 26,780,683$ 23,237,213 3,543,470 16,647,481 15,610,605 1,036,876
* Restated for implementation of GASB Statement No. 87 and restatement for investment in a joint venture.
Governmental Activities Business-type Activities
8
TOWN OF ITHACA, NEW YORK
Management’s Discussion and Analysis, Continued
Figure A-3 shows the sources of revenue for 2022.
Figure A-3
Sources of Revenue for 2022
Property taxes
44%Non-property taxes
19%
Charges for services
31%
Grants
3%
Other
3%
Figure A-2
2022 2021*Change 2022 2021 Change
Program revenue:
Charges for services 752,087$ 569,136 182,951 6,665,344 6,336,674 328,670
Operating grants and contributions 725,973 705,958 20,015 - - -
Capital grants and contributions 67,740 256,694 (188,954) - - -
General revenue:
Property taxes and property
tax items 8,663,940 8,777,842 (113,902) 2,047,637 1,968,874 78,763
Non-property taxes 4,542,336 4,040,761 501,575 - - -
Use of money and property 377,802 169,531 208,271 67,049 16,506 50,543
Other general revenue 522,181 195,445 326,736 49,050 992,696 (943,646)
Total revenue 15,652,059 14,715,367 936,692 8,829,080 9,314,750 (485,670)
Program expenses:
General government support 2,771,396 2,956,118 (184,722) - - -
Public safety 3,630,439 3,607,153 23,286 - - -
Health 29,018 28,708 310 - - -
Transportation 4,071,255 4,039,217 32,038 - - -
Culture and recreation 1,419,258 1,405,862 13,396 - - -
Home and community services 538,726 1,875,056 (1,336,330) - - -
Interest 45,703 71,126 (25,423) - - -
Water and sewer - - - 7,394,998 7,363,258 31,740
Total expenses 12,505,795 13,983,240 (1,477,445) 7,394,998 7,363,258 31,740
Transfers in (out)397,206 387,052 10,154 (397,206) (387,052) (10,154)
Change in net position 3,543,470$ 1,119,179 2,424,291 1,036,876 1,564,440 (527,564)
* Restated for implementation of GASB Statement No. 87 and restatement for investment in a joint venture.
Governmental Activities Business-type Activities
9
TOWN OF ITHACA, NEW YORK
Management’s Discussion and Analysis, Continued
Figure A-4 shows the uses of expenses for 2022.
Figure A-4
Total costs of services provided by the Town were $19,900,793. These charges were offset by grants
and contributions of $793,713 and charges for services of $7,417,431, resulting in net cost of services
of $11,689,649.
Culture and recreation, 7%
Other, 1%
Home and community services, 40%General government support, 14%
Transportation, 20%
Public safety, 18%
Expenses by Program
Governmental Business-type
Activities Activities Total
Functions:
General government support 2,771,396$ - 2,771,396
Public safety 3,630,439 - 3,630,439
Health 29,018 - 29,018
Transportation 4,071,255 - 4,071,255
Culture and recreation 1,419,258 - 1,419,258
Home and community services 538,726 - 538,726
Interest 45,703 - 45,703
Water and sewer - 7,394,998 7,394,998
Total 12,505,795$ 7,394,998 19,900,793
Governmental Business-type
Activities Activities Total
Functions:
General government support 2,593,422$ - 2,593,422
Public safety 3,436,460 - 3,436,460
Health 29,018 - 29,018
Transportation 3,453,776 - 3,453,776
Culture and recreation 1,295,174 - 1,295,174
Home and community services 106,442 - 106,442
Interest 45,703 - 45,703
Water and sewer - 729,654 729,654
Total 10,959,995$ 729,654 11,689,649
Net Costs of Services
Figure A-5 Total Costs of Services
10
TOWN OF ITHACA, NEW YORK
Management’s Discussion and Analysis, Continued
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS
Figure A-6 shows the change in fund balances for the year for the Town’s funds as presented in the
Town’s statement of revenue, expenditures and changes in fund balances - governmental funds. At
December 31, 2022, the Town reported a combined fund balance of $16,522,082. Total fund balance
increased by $892,544 in 2022.
Figure A-6
* Restated for implementation of GASB Statement No. 87.
Figure A-7 shows the change in proprietary net position for the year for the Town’s funds as presented
in the Town’s statement of revenue, expenses and changes in net position - proprietary funds. At
December 31, 2022, the Town reported a combined proprietary net position of $16,647,481. Total
proprietary net position increased by $1,036,876 in 2022.
Figure A-7
2022 2021 Change
Sewer fund 6,441,768$ 6,302,006 139,762
Water fund 10,205,713 9,308,599 897,114
Total 16,647,481$ 15,610,605 1,036,876
Business-type Activities
2022 2021*Change
General fund 9,370,422$ 8,937,389 433,033
Highway fund 5,053,921 4,519,016 534,905
Fire fund 1,720,008 1,684,714 35,294
Nonmajor funds 377,731 488,419 (110,688)
Total 16,522,082$ 15,629,538 892,544
Governmental Activities
11
TOWN OF ITHACA, NEW YORK
Management’s Discussion and Analysis, Continued
GENERAL FUND BUDGETARY HIGHLIGHTS
Actual revenue was lower than the budgeted estimate by $85,647 and actual expenditures were less
than budgeted expenditures by $1,080,236.
Figure A-8 summarizes the general fund final budget, actual expenditures and the variances for the
year ended December 31, 2022.
Figure A-8
CAPITAL ASSETS
The Town records expenditures for land, buildings, equipment, machinery and infrastructure (roads,
water and sewer systems) as capital assets in the statement of net position. Annual depreciation
expense is recorded in the statement of activities to reflect the use of these assets over their useful
lives. Land and construction-in-progress are not subject to depreciation.
Variance
Favorable
Budget Actual (Unfavorable)
Revenue:
Real property taxes 3,569,792$ 3,574,939 5,147
Non-property taxes 1,677,375 1,700,101 22,726
State aid 310,000 500,301 190,301
All other 1,363,273 1,059,452 (303,821)
Total revenue 6,920,440 6,834,793 (85,647)
Expenditures:
General government support 2,285,904 2,116,303 169,601
Public safety 85,884 76,814 9,070
Health - 29,018 (29,018)
Transportation 932,665 697,647 235,018
Culture and recreation 1,615,295 1,403,536 211,759
Home and community services 1,545,837 1,142,411 403,426
Employee benefits 1,434,700 1,354,320 80,380
Total expenditures 7,900,285 6,820,049 1,080,236
Other financing sources 30,000 534,646 504,646
Other financing uses (119,220) (116,357) 2,863
Change in fund balance (1,069,065)$ 433,033 1,502,098
Condensed Budgetary Comparison - General Fund
12
TOWN OF ITHACA, NEW YORK
Management’s Discussion and Analysis, Continued
In 2022, the Town expended $4,314,268 on capital additions. Figure A-9 reflects the changes in net
capital assets.
Figure A-9
DEBT ADMINISTRATION
Long-term debt decreased by $1,525,000 as a result of principal payments. $1,055,000 of principal
payments are due in the next fiscal year. The bonds payable fully mature in 2035.
FACTORS BEARING ON THE TOWN’S FUTURE
Real property taxes is the Town’s largest revenue source. In 2023, the adopted budget was
$30,111,590 which was mainly funded by real property taxes of $10,830,851.
FINANCIAL CONTACT
The Town’s financial statements are designed to present users (citizens, taxpayers, customers,
investors and creditors) with a general overview of the Town’s finances and to demonstrate the
Town’s accountability. If you have questions about the report or need additional financial
information, contact the Town’s Supervisor, Town of Ithaca, 215 North Tioga Street, Ithaca, New
York 14850.
2022 2021 2022 2021
Land 997,833$ 997,833 - -
Construction-in-progress 43,104 855,095 226,020 465,729
Buildings 6,913,913 6,752,085 - -
Equipment and machinery 6,364,147 5,927,203 1,778,808 1,503,831
Furniture and furnishings 209,179 209,179 - -
Non-building improvements 1,094,495 1,024,060 - -
Infrastructure 11,399,965 9,238,228 26,205,614 24,610,348
Accumulated depreciation (10,149,634) (9,768,205) (6,608,631) (5,794,888)
Total 16,873,002$ 15,235,478 21,601,811 20,785,020
Governmental
Activities
Business-type
Activities
Governmental Business-type
Activities Activities Total
Assets
Current assets:
Cash and equivalents:
Unrestricted 16,033,894$ 4,537,723 20,571,617
Restricted 1,861,866 38,449 1,900,315
Receivables:
Accounts 153,997 - 153,997
State and Federal aid 2,115 - 2,115
Due from other funds 200,000 - 200,000
Due from other governments 836,697 124,903 961,600
Water and sewer rents - 1,223,796 1,223,796
Lease receivable 56,253 - 56,253
Prepaid expenses 216,069 22,359 238,428
Total current assets 19,360,891 5,947,230 25,308,121
Noncurrent assets:
Lease receivable 935,318 - 935,318
Capital assets, net 16,873,003 21,601,812 38,474,815
Net pension asset - proportionate share - ERS 1,013,674 117,316 1,130,990
Equity in joint venture 4,831,697 - 4,831,697
Total noncurrent assets 23,653,692 21,719,128 45,372,820
Total assets 43,014,583 27,666,358 70,680,941
Deferred Outflows of Resources
Pension 2,124,666 245,894 2,370,560
OPEB 1,719,128 145,779 1,864,907
Total deferred outflows of resources 3,843,794 391,673 4,235,467
Total assets and deferred outflows of resources 46,858,377$ 28,058,031 74,916,408
Liabilities
Current liabilities:
Accounts payable 692,142 457,900 1,150,042
Accrued liabilities 126,020 48,430 174,450
Accrued interest 14,158 53,866 68,024
Due to other funds - 200,000 200,000
Unearned revenue 2,004,249 87,931 2,092,180
Bonds payable, current portion 154,987 964,742 1,119,729
Total current liabilities 2,991,556 1,812,869 4,804,425
Noncurrent liabilities:
Bonds payable, noncurrent 1,579,833 8,249,507 9,829,340
Compensated absences 199,235 22,342 221,577
Total OPEB liability 9,680,618 820,899 10,501,517
Total noncurrent liabilities 11,459,686 9,092,748 20,552,434
Total liabilities 14,451,242 10,905,617 25,356,859
Deferred Inflows of Resources
Leases 951,716 - 951,716
Pension 3,508,111 406,005 3,914,116
OPEB 1,166,625 98,928 1,265,553
Total deferred inflows of resources 5,626,452 504,933 6,131,385
Net Position
Net investment in capital assets 15,138,183 12,387,563 27,525,746
Restricted 1,845,398 12,255 1,857,653
Unrestricted 9,797,102 4,247,663 14,044,765
Total net position 26,780,683 16,647,481 43,428,164
Total liabilities, deferred inflows of resources
and net position 46,858,377$ 28,058,031 74,916,408
See accompanying notes to financial statements.
TOWN OF ITHACA, NEW YORK
Statement of Net Position
December 31, 2022
13
Operating Capital
Charges for Grants and Grants and Governmental Business-type
Expenses Services Contributions Contributions Activities Activities Total
Governmental activities:
2,771,396$ 22,580 87,654 67,740 (2,593,422) - (2,593,422)
3,630,439 168,750 25,229 - (3,436,460) - (3,436,460)
29,018 - - - (29,018) - (29,018)
4,071,255 21,889 595,590 - (3,453,776) - (3,453,776)
Culture and recreation 1,419,258 124,084 - - (1,295,174) - (1,295,174)
538,726 414,784 17,500 - (106,442) - (106,442)
45,703 - - - (45,703) - (45,703)
Total governmental activities 12,505,795 752,087 725,973 67,740 (10,959,995) - (10,959,995)
Business-type activities:
Water 4,174,277 3,751,118 - - - (423,159) (423,159)
Sewer 3,220,721 2,914,226 - - - (306,495) (306,495)
Total business-type activities 7,394,998$ 6,665,344 - - - (729,654) (729,654)
General revenue:
Real property taxes 8,577,150 2,047,637 10,624,787
Real property tax items 86,790 - 86,790
Non-property taxes 4,542,336 - 4,542,336
Use of money and property 377,802 67,049 444,851
Sale of property and compensation for loss 103,107 18,281 121,388
Miscellaneous 419,074 30,769 449,843
Transfers in (out)397,206 (397,206) -
Total general revenue 14,503,465 1,766,530 16,269,995
Change in net position 3,543,470 1,036,876 4,580,346
Net position at beginning of year, as previously stated 18,789,195 15,610,605 34,399,800
Prior period adjustment (note 12)4,424,046 - 4,424,046
Cumulative effect of change in accounting principle (note 12)23,972 - 23,972
Net position at beginning of year, as restated 23,237,213 15,610,605 38,847,818
Net position at end of year 26,780,683$ 16,647,481 43,428,164
See accompanying notes to financial statements.
Interest
14
Functions
General government support
Public safety
Transportation
Health
Home and community services
Changes in Net Position
TOWN OF ITHACA, NEW YORK
Statement of Activities
Year ended December 31, 2022
Net Revenue (Expense) andProgram Revenue
Nonmajor Total
General Highway Fire Governmental Governmental
Fund Fund Fund Funds Funds
Assets
Cash and equivalents:
Unrestricted 9,844,970$ 3,792,400 2,360,156 36,368 16,033,894
Restricted 1,021,675 480,315 - 359,876 1,861,866
Receivables:
Accounts 116,815 27,594 6,056 3,532 153,997
State and Federal aid 2,115 - - - 2,115
Due from other funds 220,000 - - - 220,000
Due from other governments - 836,697 - - 836,697
Leases receivable 991,571 - - - 991,571
Prepaid expenditures 139,559 76,510 - - 216,069
Total assets 12,336,705$ 5,213,516 2,366,212 399,776 20,316,209
Liabilities, Deferred Inflows of Resources and Fund Balances
Liabilities:
Accounts payable 137,070 41,283 512,255 1,534 692,142
Accrued liabilities 70,202 55,818 - - 126,020
Due to other funds - - - 20,000 20,000
Unearned revenue 1,807,295 62,494 133,949 511 2,004,249
Total liabilities 2,014,567 159,595 646,204 22,045 2,842,411
Deferred inflows of resources - leases 951,716 - - - 951,716
Fund balances:
Nonspendable 139,559 76,510 - - 216,069
Restricted 1,021,675 480,315 - 343,408 1,845,398
Assigned 1,122,718 4,497,096 1,720,008 34,323 7,374,145
Unassigned 7,086,470 - - - 7,086,470
Total fund balances 9,370,422 5,053,921 1,720,008 377,731 16,522,082
Total liabilities, deferred inflows of resources and fund balances 12,336,705$ 5,213,516 2,366,212 399,776 20,316,209
See accompanying notes to financial statements.
TOWN OF ITHACA, NEW YORK
Balance Sheet - Governmental Funds
December 31, 2022
15
Special Revenue
Total governmental fund balances 16,522,082$
Historical cost 27,022,636$
Accumulated depreciation (10,149,633) 16,873,003
4,831,697
Deferred outflows of resources - pension 2,124,666
Deferred outflows of resources - OPEB 1,719,128
Deferred inflows of resources - pension (3,508,111)
Deferred inflows of resources - OPEB (1,166,625) (830,942)
Accrued interest (14,158)
Bonds payable, including premium (1,734,820)
Compensated absences (199,235)
Net pension asset - ERS - proportionate share 1,013,674
Total OPEB liability (9,680,618) (10,615,157)
Total net position 26,780,683$
See accompanying notes to financial statements.
Capital assets,net of accumulated depreciation,used in governmental
activities are not financial resources and,therefore,are not reported in
the funds.
Differences between expected and actual experiences,assumption
changes and net differences between projected and actual earnings and
contributions subsequent to the measurement date for the
postretirement benefits (pension and OPEB)are recognized as deferred
outflows of resources and deferred inflows of resources on the
statement of net position.
Long-term liabilities that are not due and payable in the current period
are not reported in the funds.
16
TOWN OF ITHACA, NEW YORK
Reconciliation of Balance Sheet - Governmental Funds
to the Statement of Net Position
December 31, 2022
Amounts reported for governmental activities in the statement of net
position are different because:
Investment of equity of the Southern Cayuga Intermunicipal Water
Commission is not a current financial resource and is not reported in
the funds.
Nonmajor Total
General Highway Fire Governmental Governmental
Fund Fund Fund Funds Funds
Revenue:
Real property taxes 3,501,544$ 1,517,500 3,530,806 27,300 8,577,150
Real property tax items 73,395 13,395 - - 86,790
Non-property taxes 1,700,101 2,842,235 - - 4,542,336
Departmental income 450,754 - - - 450,754
Intergovernmental charges 102,268 21,889 - - 124,157
Use of money and property 289,364 55,869 26,849 5,720 377,802
Licenses and permits 8,926 - - - 8,926
Fines and forfeitures 168,250 - - - 168,250
Sale of property and compensation for loss 35,294 97,432 - - 132,726
Federal aid - - - 67,740 67,740
Miscellaneous 4,596 6,827 - - 11,423
State aid 500,301 200,443 25,229 - 725,973
Total revenue 6,834,793 4,755,590 3,582,884 100,760 15,274,027
Expenditures:
General government support 2,116,303 69,817 4,800 900 2,191,820
Public safety 76,814 - 3,542,790 - 3,619,604
Health 29,018 - - - 29,018
Transportation 697,647 3,162,693 - 11,072 3,871,412
Culture and recreation 1,403,536 - - 22,087 1,425,623
Home and community services 1,142,411 - - - 1,142,411
Employee benefits 1,354,320 434,000 - - 1,788,320
Debt service:
Principal - - - 646,150 646,150
Interest - - - 64,331 64,331
Total expenditures 6,820,049 3,666,510 3,547,590 744,540 14,778,689
Excess (deficiency) revenue over expenditures 14,744 1,089,080 35,294 (643,780) 495,338
Other financing sources (uses):
Transfers in 534,646 - - 651,326 1,185,972
Transfers out (116,357) (554,175) - (118,234) (788,766)
Total other financing sources (uses)418,289 (554,175) - 533,092 397,206
Change in fund balances 433,033 534,905 35,294 (110,688) 892,544
Fund balances at beginning of year, as previously stated 8,913,417 4,519,016 1,684,714 488,419 15,605,566
Cumulative effect of change in accounting principle (note 12)23,972 - - - 23,972
Fund balances at beginning of year, as restated 8,937,389 4,519,016 1,684,714 488,419 15,629,538
Fund balances at end of year 9,370,422$ 5,053,921 1,720,008 377,731 16,522,082
See accompanying notes to financial statements.
TOWN OF ITHACA, NEW YORK
Statement of Revenue, Expenditures and Changes in Fund Balances -
Governmental Funds
Year ended December 31, 2022
17
Special Revenue
Net change in fund balances 892,544$
The change in net position reported for governmental activities in the statement of
activities is different because:
Capital outlays for acquisition of capital asset and capital projects are reported
in the governmental funds as expenditures. In the statement of activities,
the cost of those assets is allocated over their useful lives and reported
annually as depreciation expense.
Capital expenditures 2,683,734$
Disposals (29,619)
Depreciation expense (1,016,590) 1,637,525
Change in net investment of joint venture 407,651
Bond principal payments are reflected as expenditures in the governmental
funds. These payments are reflected on the statement of net position as a
reduction of bonds payable and are not included in the statement of
activities. Bond principal payments for the current year are as follows:646,150
Interest on debt is reported in the governmental funds when the payments are
rendered. On the statement of activities, interest expense is allocated
over the time period it pertains to. Accrued interest changed by this
amount.3,561
Payments for compensated absences are reported in the governmental funds as
they are due. On the statement of activities, these amounts are reported
in the periods that the liabilities are incurred. Compensated absences
changed by this amount.13,649
Payments for other postemployment benefits are reported in the governmental
funds as they are due. On the statement of activities, an expense is
recognized based on an actuarial estimate. Other postemployment
benefits changed by this amount.(464,442)
Payments for pension expenses are reported in the governmental funds as they
are due. On the statement of activities, the expense is adjusted based on
the pension information provided by the retirement system. Retirement
benefits changed by this amount.391,765
Amortization of bond premiums are not reported in the governmental funds.
On the statement of activities, an adjustment to interest expense is
recognized based on the current year amortization associated with the
bond premiums.15,067
Change in net position of governmental activities 3,543,470$
See accompanying notes to financial statements.
18
TOWN OF ITHACA, NEW YORK
Reconciliation of the Statement of Revenue, Expenditures and Changes in Fund Balances -
Governmental Funds to the Statement of Activities
Year ended December 31, 2022
Sewer Water
Fund Fund Total
Assets
Current assets:
Cash and equivalents:
Unrestricted 2,693,009$ 1,844,714 4,537,723
Restricted 17,477 20,972 38,449
Receivables:
Due from other governments 124,903 - 124,903
Water and sewer rents 556,699 667,097 1,223,796
Due from other funds - - -
Prepaid expenses 9,936 12,423 22,359
Total current assets 3,402,024 2,545,206 5,947,230
Noncurrent assets:
Capital assets, net 3,754,188 17,847,624 21,601,812
Net pension asset - proportionate share - ERS 51,977 65,339 117,316
Total noncurrent assets 3,806,165 17,912,963 21,719,128
Total assets 7,208,189 20,458,169 27,666,358
Deferred Outflows of Resources
Pension 108,943 136,951 245,894
OPEB 64,587 81,192 145,779
Total deferred outflows of resources 173,530 218,143 391,673
Total assets and deferred outflows of resources 7,381,719$ 20,676,312 28,058,031
Liabilities
Current liabilities:
Accounts payable 77,915 379,985 457,900
Accrued liabilities 38,644 9,786 48,430
Accrued interest - 53,866 53,866
Due to other funds 200,000 - 200,000
Unearned revenue 27,450 60,481 87,931
Bonds payable, current portion - 964,742 964,742
Total current liabilities 344,009 1,468,860 1,812,869
Noncurrent liabilities:
Bonds payable, noncurrent - 8,249,507 8,249,507
Compensated absences 8,534 13,808 22,342
Total OPEB liability 363,698 457,201 820,899
Total noncurrent liabilities 372,232 8,720,516 9,092,748
Total liabilities 716,241 10,189,376 10,905,617
Deferred Inflows of Resources
Pension 179,880 226,125 406,005
OPEB 43,830 55,098 98,928
Total deferred inflows of resources 223,710 281,223 504,933
Net Position
Net investment in capital assets 3,754,188 8,633,375 12,387,563
Restricted 12,255 - 12,255
Unrestricted 2,675,325 1,572,338 4,247,663
Total net position 6,441,768 10,205,713 16,647,481
Total liabilities, deferred inflows of resources and net position 7,381,719$ 20,676,312 28,058,031
See accompanying notes to financial statements.
TOWN OF ITHACA, NEW YORK
Statement of Net Position - Proprietary Funds
December 31, 2022
19
Sewer Water
Fund Fund Total
Operating revenue - charges for services 2,914,226$ 3,751,118 6,665,344
Operating expenses:
Cost of sales and services 2,603,538 2,785,682 5,389,220
Wages and benefits 351,005 471,580 822,585
Depreciation 205,650 608,092 813,742
Administration 60,528 72,687 133,215
Total operating expenses 3,220,721 3,938,041 7,158,762
Operating loss (306,495) (186,923) (493,418)
Nonoperating revenue (expenses):
Real property taxes 585,259 1,462,378 2,047,637
Intergovernmental charges - - -
Use of money and property 38,768 28,281 67,049
Sale of property and compensation for loss - 18,281 18,281
Miscellaneous 14,397 16,372 30,769
Interest expense - (236,236) (236,236)
Total nonoperating revenue (expenses)638,424 1,289,076 1,927,500
Interfund transfers out (192,167) (205,039) (397,206)
Change in net position 139,762 897,114 1,036,876
Net position at beginning of year 6,302,006 9,308,599 15,610,605
Net position at end of year 6,441,768$ 10,205,713 16,647,481
See accompanying notes to financial statements.
20
TOWN OF ITHACA, NEW YORK
Statement of Revenue, Expenses and Changes in Net Position -
Proprietary Funds
Year ended December 31, 2022
Sewer Water
Fund Fund Total
Cash flows from operating activities:
Received from user charges and other assessments 2,894,821$ 3,690,046 6,584,867
Payments to suppliers for goods and services (2,347,203) (2,527,743) (4,874,946)
Payments for wages and benefits (335,589) (752,166) (1,087,755)
Net cash provided by operating activities 212,029 410,137 622,166
Cash flows from non-capital financing activities:
Real property taxes 595,459 1,479,747 2,075,206
Sale of property and compensation for loss - 18,281 18,281
Miscellaneous 14,397 16,372 30,769
Transfers to other funds (192,167) (205,039) (397,206)
Net cash provided by non-capital
financing activities 417,689 1,309,361 1,727,050
Cash flows from capital and related financing activities:
Acquisition of capital assets (331,157) (1,299,377) (1,630,534)
Principal paid on capital debt - (878,850) (878,850)
Amortization of bond premium - (49,660) (49,660)
Interest paid on capital debt - (242,488) (242,488)
Net cash used in capital and related
financing activities (331,157) (2,470,375) (2,801,532)
Cash flows from investing activities - interest received 38,768 28,281 67,049
Net change in cash and equivalents 337,329 (722,596) (385,267)
Cash and equivalents at beginning of year 2,373,157 2,588,282 4,961,439
Cash and equivalents at end of year 2,710,486$ 1,865,686 4,576,172
Supplemental schedule of cash flow information
classification of cash and equivalents:
Unrestricted 2,693,009$ 1,844,714 4,537,723
Restricted 17,477 20,972 38,449
2,710,486$ 1,865,686 4,576,172
(Continued)
See accompanying notes to financial statements.
TOWN OF ITHACA, NEW YORK
Statement of Cash Flows - Proprietary Funds
Year ended December 31, 2022
21
Sewer Water
Fund Fund Total
Reconciliation of operating loss to net cash provided by
operating activities:
Operating loss (306,495)$ (186,923) (493,418)
Depreciation 205,650 608,092 813,742
Adjustments to reconcile operating loss to
net cash provided by operating activities:
Change in:
Due to other funds - 6,501 6,501
Due from other governments (2,500) - (2,500)
Water and sewer rents (16,905) (67,573) (84,478)
Prepaid expenses 381 2,148 2,529
Accounts payable 55,954 255,791 311,745
Accrued liabilities (3,266) (259,269) (262,535)
Compensated absences (1,209) 1,758 549
Due from other funds 200,000 - 200,000
Net pension asset (52,460) (66,034) (118,494)
Deferred outflows - pension 3,700 25,241 28,941
Deferred inflows - pension 38,109 21,991 60,100
Total OPEB liability 62,090 22,921 85,011
Deferred outflows - OPEB (2,664) 7,942 5,278
Deferred inflows - OPEB 31,644 37,551 69,195
Net cash provided by operating activities 212,029$ 410,137 622,166
See accompanying notes to financial statements.
22
Statement of Cash Flows - Proprietary Funds, Continued
TOWN OF ITHACA, NEW YORK
Custodial
Funds
Assets - cash and equivalents 372,674$
Fiduciary net position 372,674$
See accompanying notes to financial statements.
TOWN OF ITHACA, NEW YORK
Statement of Fiduciary Net Position - Fiduciary Funds
December 31, 2022
23
Custodial
Funds
Additions:
Property taxes 9,565,005$
Conduit debt 267,288
Miscellaneous 161,473
Total additions 9,993,766
Deductions:
Property taxes 9,565,005
Conduit debt 267,288
Miscellaneous 4,545
Total deductions 9,836,838
Change in fiduciary net position 156,928
Fiduciary net position at beginning of year 215,746
Fiduciary net position at end of year 372,674$
See accompanying notes to financial statements.
24
TOWN OF ITHACA, NEW YORK
Statement of Changes in Fiduciary Net Position - Fiduciary Funds
Year ended December 31, 2022
25
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements
December 31, 2022
(1) Summary of Significant Accounting Policies
The financial statements of the Town of Ithaca, New York (the Town) have been prepared in
accordance with accounting principles generally accepted in the United States of America
(GAAP) for governments as prescribed by the Governmental Accounting Standards Board
(GASB) which is the standard setting body for establishing governmental accounting and
financial reporting principles. Certain significant accounting principles and policies utilized
by the Town are described below.
(a) Financial Reporting Entity
The Town, which was established in 1821, is governed by the Town Law, other general
municipal laws of the State of New York (the State), and various local laws. The Town
Board is the legislative body responsible for the overall operation, the Town Supervisor
serves as Chief Executive Officer and Chief Fiscal Officer.
The Town provides the following principal services: fire protection, transportation, recreation,
planning and zoning, general administration, and public improvements.
Street lighting is provided by the Town Board in nine separate areas of the Town called
lighting districts. It is funded by means of a tax on the real property situated within each
district. The Town provides for intersection street lighting from the general fund
appropriations.
Fire protection for certain areas of the Town outside the village is provided by the Town
through the Ithaca Fire Protection District. This district is funded by means of a tax on
the real property situated within the district. Services for fire protection are contracted out
through the City of Ithaca and the Village of Cayuga Heights.
The financial reporting entity consists of the following, as defined by GASB Statement No.
14 - “The Financial Reporting Entity:”
(1) The primary government which is the Town.
(2) Organizations for which the primary government is financially accountable, and;
(3) Other organizations for which the nature and significance of their relationship with the
primary government is such that exclusion would cause the reporting entity’s general-
purpose financial statements to be misleading or incomplete.
The decision to include a potential component unit in the reporting entity is based on the
criteria set forth in GASB Statement No. 14, including legal standing, fiscal dependency,
and financial accountability.
26
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1) Summary of Significant Accounting Policies, Continued
(b) Excluded from the Reporting Entity
The following activities are jointly undertaken with other municipalities. These activities are
excluded from the Town’s financial statements.
(1) Southern Cayuga Lake Intermunicipal Water Commission (Bolton Point) is a joint venture
involving the Towns of Ithaca, Dryden and Lansing and the Villages of Cayuga
Heights and Lansing. The joint venture operates under terms of an original agreement
dated March 1, 1977. The agreement was restated on September 11, 2017.
• Bolton Point’s executive body consists of ten members, two members being
appointed by each municipality. The Treasurer of Bolton Point is traditionally the
Town’s Supervisor.
• The Town owns a majority (51.87%) of the Commission and must adopt its budget
and any subsequent amendments.
• The executive body has established charges at rates intending to be self-sustaining
to cover all operating costs and debt service. Any shortfalls in revenue produced
by such charges will ultimately be provided by contributions from participants.
A separate audited financial statement is available from the administrative offices of
Bolton Point, 1402 East Shore Drive, Ithaca, New York 14850. For the year ended
December 31, 2022, the audited financial statements of Bolton Point showed:
Total assets $ 15,929,801
Deferred outflows of resources 1,676,662
Total liabilities 6,656,682
Deferred inflows of resources 1,634,768
Net position $ 9,315,013
Total revenue $ 4,915,993
Total expenses $ 4,130,084
(2) The Ithaca Area Wastewater Treatment Plant (IAWTP) is a joint venture involving the
Towns of Ithaca and Dryden, and the City of Ithaca. This joint venture was formed
for the treatment of wastewater. The joint venture operates under terms of an original
agreement dated December 22, 1981 and has been amended several times, the last of
which is dated December 31, 2003. Construction of the treatment plant began in 1984
and was completed in 1986.
• The Special Joint Committee (governing body) of the IAWTP consists of eight
members; four from the City of Ithaca, three from the Town, and one from the
Town of Dryden. The City of Ithaca operates the plant and has custody of the joint
activity funds.
• Capital costs allocated to the Town are 40.88% of the total.
27
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1) Summary of Significant Accounting Policies, Continued
(b) Excluded from the Reporting Entity, Continued
• The governing body has established charges at rates intending to be self-sustaining
to cover all operating costs and debt service. Any shortfall in revenue produced
by such charges is to be provided by equal share contributions from the
participants.
The following information is from the separately issued financial statements of the
IAWTP for the year ended December 31, 2019 (latest available):
Total assets $ 35,156,646
Deferred outflows of resources 361,269
Total liabilities (26,744,039)
Deferred inflows of resources (441,678)
Net position $ (8,332,198)
Total revenue $ 4,207,059
Total expenses $ 6,310,239
(c) Basis of Presentation
(1) Government-Wide Statements
The statement of net position and the statement of activities present financial information
about the Town’s governmental activities. These statements include the financial
activities of the overall government in its entirety, except those that are fiduciary.
Eliminations have been made to minimize the double counting of internal transactions.
These statements distinguish between the governmental and business-type activities
of the Town. Governmental activities generally are financed through taxes, state aid,
intergovernmental revenue, and other exchange and non-exchange transactions.
Business-type activities are financed in whole or in part by fees charged to external
parties. Operating grants include operating-specific and discretionary (either
operating or capital) grants, while the capital grants column reflects capital-specific
grants.
The statement of activities presents a comparison between direct expenses and program
revenue for each function of the Town’s governmental activities. Direct expenses are
those that are specifically associated with and are clearly identifiable to a function.
Program revenue includes charges paid by the recipients of goods or services offered
by the programs, and grants and contributions that are restricted to meeting the
operational or capital requirements of a program. Revenue that is not classified as
program revenue, including all taxes, is presented as general revenue.
(2) Fund Financial Statements
The fund statements provide information about the Town’s funds, including fiduciary
funds. Separate statements for each fund category (governmental, proprietary, and
fiduciary) are presented. The emphasis of fund financial statements is on major
governmental and proprietary funds, each displayed in a separate column. All
remaining governmental funds are aggregated and reported as nonmajor funds.
28
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1) Summary of Significant Accounting Policies, Continued
(c) Basis of Presentation, Continued
(2) Fund Financial Statements, Continued
Proprietary fund operating revenue, such as charges for services, result from exchange
transactions associated with the principal activity of the fund. Exchange transactions
are those in which each party receives and gives up essentially equal values. Non-
operating revenue, such as subsidies and investments earnings, result from non-
exchange transactions or ancillary activities.
The Town reports the following major governmental funds:
• General Fund - This is the Town’s primary operating fund. It accounts for all
financial transactions that are not required by law or other provision to be
accounted for in other funds.
• Highway Fund - Used to account for revenue and expenditures for part-town and
town-wide highway purposes.
• Fire Fund - Used to record transactions involving the Town Fire Protection District
and the contracts for fire protection with the City of Ithaca and Village of Cayuga
Heights.
The Town also reports the following nonmajor governmental funds:
• Lighting Fund - Used to record operation and maintenance transactions from
special districts’ assessment.
• Debt Service Fund - Used to account for interest earned on proceeds of borrowing
for capital projects. Annual principal and interest payments due on serial bonds
are transferred from the Town’s other funds. Payments are made directly from the
debt service fund to the respective paying agents.
• Capital Projects Fund - Used to account for capital improvements financed from
current monies transferred from other funds, federal and state grants and proceeds
of obligations.
The Town reports the following major proprietary funds:
• Sewer Fund - This proprietary fund is used to account for the activity of providing
sewer service to residents of the Town. The Town is responsible for the collection
of sewer revenue in the Town and contracts for treatment services with IAWTP.
• Water Fund - This proprietary fund is used to account for the activity of providing
water service to residents of the Town. The Town is responsible for the collection
of water revenue in the Town and contracts for delivery services with Bolton Point.
29
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1) Summary of Significant Accounting Policies, Continued
(c) Basis of Presentation, Continued
(2) Fund Financial Statements, Continued
The Town reports the following fiduciary fund:
• Custodial Fund - Used to account for those funds held in custody for other
governments, organizations or individuals.
(d) Measurement Focus and Basis of Accounting
The Government-Wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenue is recorded when earned
and expenses are recorded at the time liabilities are incurred, regardless of when the related
cash transaction takes place. Non-exchange transactions, in which the Town gives or
receives value without directly receiving or giving equal value in exchange, include
property taxes, grants and donations. On an accrual basis, revenue from property taxes is
recognized in the fiscal year for which the taxes are levied. Revenue from grants and
donations are recognized in the year in which all eligibility requirements have been
satisfied.
Proprietary funds distinguish operating revenue and expenses from non-operating items.
Operating revenue and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund’s principal ongoing operations.
The principal operating revenue of the Town are charges to customers for sewer and water
fees. Operating expenses for proprietary funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenue and expenses not
meeting this definition are reported as non-operating revenue and expenses.
The governmental funds are reported using the current financial resources measurement focus
and the modified accrual basis of accounting. Under this basis of accounting, revenue is
recorded when measurable and available. Available means collectible within the current
period or soon enough thereafter to be used to pay liabilities of the current period.
Material revenue that is accrued include real property taxes, state and federal aid, sales tax
and certain user charges. If expenditures are the prime factor for determining eligibility,
revenue from federal and state grants are accrued when the expenditure is made.
Expenditures are recorded when the related fund liability is incurred, except for principal and
interest on general long-term debt, claims and judgments, and compensated absences,
which are recognized as expenditures to the extent they have matured. General capital
asset acquisitions are reported as expenditures in governmental funds. Proceeds of general
long-term debt and acquisitions under capital leases are reported as other financing
sources.
30
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1) Summary of Significant Accounting Policies, Continued
(e) Property Taxes
Town real property taxes are levied annually on January l and become a lien on that date.
Property owners can elect to pay their taxes using one of two options. Taxpayers may
elect to pay their bill in two installments equal to ½ the total bill, plus a 2.5% processing
fee. If the installment option is selected, the first payment is due between January l and
January 14, without penalty, or between January 15, and January 20, with l% interest
(election to pay in installments ceases January 20). The second installment is due on or
before July 1, payable to the Tompkins County (the County) Division of Budget and
Finance.
Taxpayers may elect to pay their tax bill in full. Using this method, taxes are collected during
the period January 1 to January 31 at face value and from February l to May 31 with
interest added. The Town Receiver of Taxes collects all real estate taxes for Town and
County purposes. The Town Receiver of Taxes distributes the collected tax money to the
Town Supervisor prior to distributing the balance collected to the County on April l5. The
Town thereby is assured of 100% tax collection. Responsibility for the collection of
unpaid taxes rests with the County. Uncollected tax liens are sold annually by the County.
(f) Budgetary Data
(1) The budget policies are as follows:
(a) No later than October 5, the budget officer submits a tentative budget to the Town
Board for the fiscal year commencing the following January l. The tentative budget
includes proposed expenditures and the proposed means of financing for all funds.
(b) After public hearings are conducted to obtain taxpayer comments, no later than
November 20, the Town Board adopts the budget.
(c) All modifications of the budget must be approved by the Town Board. However, the
Town Supervisor is authorized to transfer certain budgeted amounts within
departments.
(d) Appropriations lapse at year-end.
(2) Encumbrance accounting, under which purchase orders, contracts and other commitments
for the expenditure of monies are recorded for budgetary control purposes to reserve that
portion of the applicable appropriations, is employed in all funds. Encumbrances are
reported as reservations of fund balance since they do not constitute expenditures or
liabilities. Expenditures for such commitments are recorded in the period in which the
liability is incurred. For the year ended December 31, 2022, the Town did not have any
encumbrances. In the interest of accurately monitoring, budgeting and maintaining an
adequate operating fund balance in all funds, it is the Town’s fiscal practice not to
encumber unused appropriations into the ensuing year’s budgeted operations.
31
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1) Summary of Significant Accounting Policies, Continued
(g) Cash and Equivalents
The Town’s investment policies are governed by State statutes. In addition, the Town has its
own written investment policy. The Town’s monies must be deposited in Federal Deposit
Insurance Corporation (FDIC) insured commercial banks or trust companies located
within the State. The supervisor is authorized to use demand accounts and certificates of
deposit. Permissible investments include obligations of the U.S. Treasury and U.S.
Agencies, repurchase agreements, and obligations of the State or its localities.
Collateral is required for demand deposits and certificates of deposit not covered by FDIC
insurance. Obligations that may be pledged as collateral are obligations of the United
States and its agencies and obligations of the State and its municipalities and school
districts.
The written investment policy requires repurchase agreements to be purchased from banks
located within the State and that underlying securities must be obligations of the federal
government and the State. Underlying securities must have market value of at least the
cost of the repurchase agreement.
(h) Receivables
Accounts receivable are shown gross, with uncollectible amounts recognized under the direct
write-off method. No allowance for uncollectible accounts has been provided since it is
believed that such allowance would not be material. All receivables are expected to be
collected within the subsequent fiscal year.
(i) Inventories and Prepaid Items
Purchases of inventorial items are recorded as expenditures at the time of purchase and are
considered immaterial in amount. Certain payments to vendors reflect costs applicable to
future accounting periods and are recorded as prepaid items in both Government-Wide
and fund financial statements, which are expensed as the items are used.
(j) Capital Assets
Capital assets are reported at historical cost. The Town depreciates capital assets using the
straight-line method over the estimated useful life of the assets. Capitalization thresholds,
the dollar value above which capital asset acquisitions are added to the capital asset
accounts, and estimated useful lives of capital assets are as follows:
Estimated
Capitalization Useful
Threshold Life
Building and improvements $ 5,000 30-40 years
Equipment and machinery 5,000 5-15 years
Furniture and furnishings 5,000 10 years
Non-building improvements 5,000 15-20 years
Road systems 10,000 30-40 years
Water and sewer systems 10,000 15-20 years
32
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1) Summary of Significant Accounting Policies, Continued
(k) Deferred Outflows of Resources and Deferred Inflows of Resources
Deferred outflows of resources, represents a consumption of net position that applies to a
future period and so will not be recognized as an outflow of resources
(expense/expenditure) until then. The Town has four items that qualify for reporting in
this category. The first item is related to the pension reported in the Statement of Net
Position. This represents the effect of the net change in the Town’s proportion of the
collective net pension asset/liability and difference during the measurement period
between the Town’s contributions and its proportion share of total contributions to the
pension system not included in pension expense. The second item relates to the Town’s
contributions to the pension system subsequent to the measurement date. The third item
is related to other postemployment benefits reported in the statement of net position. This
represents differences between expected and actual experience as well as changes of
assumptions in the calculation of the liability. The fourth item relates to the Town’s
contributions of other postemployment benefits subsequent to the measurement date.
Deferred inflows of resources, represents an acquisition of net position that applies to a future
period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
The Town has three items that qualify for reporting in this category. The first is related to
pensions reported in the statement of net position. This represents the effect of the net
change in the Town’s proportion of the collective net pension asset/liability and difference
during the measurement periods between the Town’s contributions and its proportional
share of total contributions to the pension system not included in the pension expense.
The second item represents changes of assumptions related to the other postemployment
liability. The third relates to long-term leases receivable.
(l) Compensated Absences
The Town employees are granted vacation in varying amounts, based primarily on length of
service and service position. Some earned benefits may be forfeited if not taken within
varying time periods.
Sick leave eligibility and accumulation is specified in negotiated labor contracts and Town
policy.
Upon retirement, resignation or death, employees may receive a payment based on unused
accumulated sick leave, based on contractual provisions.
Consistent with GASB Statement No. 101 - “Compensated Absences,” an accrual for
accumulated sick leave calculated using the vesting method is included in the compensated
absences liability at year-end. The compensated absences liability is calculated based on
the pay rates in effect at year-end.
33
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1) Summary of Significant Accounting Policies, Continued
(m) Long-Term Obligations
In the Government-Wide financial statements, long-term debt and other long-term obligations
are reported as liabilities in the statement of net position. Bond premiums and discounts
are deferred and amortized over the life of the bonds using the straight-line method that
approximates the effective interest method. Bonds payable are reported net of the
applicable bond premiums or discounts.
In fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs during the current period. The face amount of
debt issued is reported as other financing sources. Premiums received on debt issuances
are reported as other financing sources while discounts on debt issuances are reported as
other financing uses. Issuance costs, whether or not withheld from the actual debt
proceeds received, are reported as debt service expenditures.
(n) Postemployment Benefits
The Town provides health insurance coverage for retired employees and their dependents.
Substantially all of the Town’s employees may become eligible for these benefits if they
reach normal retirement age and retire under the State employees’ retirement system while
working for the Town. The cost of providing postemployment benefits is shared between
the Town and the retired employee. The Town recognizes the cost of providing health
insurance by recording its share of insurance premiums for retirees and their dependents,
as an expenditure in the year paid.
(o) Unearned Revenue
Unearned revenue arise when potential revenue does not meet both the measurable and
available criteria for recognition in the current period. Unearned revenue also arise when
resources are received by the Town before it has a legal claim to them, as when grant
monies are received prior to the incurrence of qualifying expenditures. In subsequent
periods, when both recognition criteria are met, or when the Town has legal claim to the
resources, the liability for unearned revenue is removed and revenue is recognized.
(p) Unemployment Insurance
As of January 1, 1978, Town employees are covered by unemployment insurance. The Town
has chosen to discharge its liability to the State Unemployment Insurance Fund by means
of the benefit reimbursement method. This is a dollar-for-dollar reimbursement to the
Unemployment Insurance Fund for the benefits paid to former employees and charged to
the Town’s account. The Town is exempt from federal unemployment insurance tax.
34
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1) Summary of Significant Accounting Policies, Continued
(q) Deferred Compensation
The Town offers their employees a deferred compensation plan (the plan) created in
accordance with Internal Revenue Code Section 457. The plan, which is available to all
eligible participants, permits participants to defer a portion of their salary (100% of gross
wages not to exceed $19,500 or $26,000 for employees over the age of 50 to allow for
catch up contributions) until future years. Amounts deferred under the plan are not
available to the employee until termination, retirement, death or unforeseeable emergency.
Effective January 1, 1998, all amounts of compensation deferred under the plan, all
property and rights purchased with the amounts, and all income attributable to these
amounts are the sole property of the employee. As required, the Town Supervisor is the
Chairman of the Town’s deferred compensation committee and trustee.
(r) Restricted Resources
When an expense is incurred for purposes for which both restricted and unrestricted net
position is available, it is the Town’s policy to apply restricted funds before unrestricted
funds, unless otherwise prohibited by legal requirements.
(s) Equity Classification
(1) Government-Wide Statements
Equity is classified as net position and displayed in three components:
• Net Investment in Capital Assets
Consists of capital assets including restricted capital assets, net of accumulated
depreciation and reduced by the outstanding balances of any bonds, mortgages,
notes or other borrowings that are attributable to the acquisition, construction, or
improvement of those assets.
• Restricted Net Position
Consists of net position with constraints placed on the use either by 1) external groups
such as creditors, grantors, contributors, or laws or regulations of other
governments; or 2) law through constitutional provisions or enabling legislation.
• Unrestricted Net Position
All other net position that does not meet the definition of “restricted” or “net
investment in capital assets.”
(2) Fund Financial Statements
Classification of fund balance reflects spending constraints on resources, rather than
availability for appropriation to provide users more consistent and understandable
information about a governmental fund’s net resources. Constraints are broken down
into five different classifications: nonspendable, restricted, committed, assigned, and
unassigned. The classifications serve to inform readers of the financial statements of
the extent to which the government is bound to honor constraints on the specific
purposes for which resources in a fund can be spent.
35
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1) Summary of Significant Accounting Policies, Continued
(s) Equity Classification, Continued
(2) Fund Financial Statements, Continued
Governmental fund equity is classified as fund balance. In the fund basis statements there
are five classifications of fund balance:
• Nonspendable Fund Balance
Consists of assets that are inherently nonspendable in the current period either because
of their form or because they must be maintained intact, including prepaid items,
inventories, long-term portions of loans receivable, financial assets held for resale
and principal of endowments. The Town’s nonspendable fund balance is
comprised of prepaid expenditures.
• Restricted Fund Balance
Consists of amounts that are subject to externally enforceable legal purpose
restrictions imposed by creditors, grantors, contributors or laws or regulations of
other governments; or imposed by law through constitutional provisions or
enabling legislation. The Town’s restricted fund balance includes a general-
purpose benefit reserve, a parks and open space plan reserve and a debt reserve.
• Committed Fund Balance
Consists of amounts that are subject to a purpose constraint imposed by formal action
of the Town’s highest level of decision-making authority (the Town Board) before
the end of the fiscal year and that require the same level of formal action to remove
the constraint.
• Assigned Fund Balance
Consists of amounts that are subject to a purpose constraint that represents an intended
use established by the government’s highest level of decision-making authority or
by their designated body or official. In funds other than the general fund, the
Town’s assigned fund balance represents the residual amount of fund balance. In
the general fund, assigned fund balance represents the portion of fund balance
appropriated for the ensuing year’s budget.
• Unassigned Fund Balance
Represents the residual classification of the government’s general fund and could
report a surplus or a deficit. In funds other than the general fund, the unassigned
classification is used only to report a deficit balance resulting from overspending
for specific purposes for which amounts had been restricted, committed or
assigned.
36
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(1) Summary of Significant Accounting Policies, Continued
(s) Equity Classification, Continued
(3) Order of Use of Fund Balance - The Town’s policy is to apply expenditures against
nonspendable fund balance, restricted fund balance, committed fund balance, assigned
fund balance and unassigned fund balance at the end of the fiscal year. For all funds,
nonspendable fund balances are determined first and then restricted fund balances for
specific purposes are determined. Any remaining fund balance amounts for funds other
than the general fund are classified as committed or assigned fund balance. In the general
fund, committed fund balance is determined next and then assigned fund balance. The
remaining amounts are reported as unassigned. Assignments of fund balance cannot cause
a negative unassigned fund balance.
(t) Accounting Standards Issued But Not Yet Implemented
GASB has issued the following pronouncements which will be implemented in the years
required. The effects of the implementation of these pronouncements are not known at
this time.
Statement No. 94 - Public-Private and Public-Public Partnerships and Availability Payment
Arrangements. Effective for fiscal years beginning after June 15, 2022.
Statement No. 96 - Subscription-Based Information Technology Arrangements. Effective for
fiscal years beginning after June 15, 2022.
Statement No. 99 - Omnibus 2022. Effective for various periods through fiscal years
beginning after June 15, 2023.
(u) Lease Receivable
During the year ended December 31, 2022, the Town adopted provisions of GASB Statement
No 87 - “Leases.” The primary objective of this Statement is to better meet the information
needs of financial statement users by improving accounting and financial reporting for
leases by governments. See note 12 to the financial statements for the impact of the
implementation on the financial statements.
The Town leases space to the United States Postal Service (the Postal Service). A lease
receivable is measured and recorded at the present value of lease payments expected to be
received by the Town during the lease term using an implicit discount rate, net of any
provision for estimated uncollectible amounts. As lease payments are received from the
lessee, they are first allocated to the amortization of the discount on the lease receivable
and recognized as interest revenue, and them to lease receivable.
(v) Subsequent Events
Management has evaluated subsequent events through the date of the report which is the date
the financial statements were available to be issued.
37
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(2) Explanation of Certain Differences Between Governmental Fund Statements and
Government-wide Statements
Due to the differences in the measurement focus and basis of accounting used in the governmental
fund statements and the Government-Wide statements, certain financial transactions are
treated differently. The basic financial statements contain a full reconciliation of these items.
The differences result primarily from the economic focus of the statement of activities,
compared with the current financial resources focus of the governmental funds.
(a) Total Fund Balance of Governmental Funds vs. Net Position of Governmental Activities
Total fund balances of the Town’s governmental funds differ from net position of
governmental activities reported in the statement of net position. This difference primarily
results from the additional long-term economic focus of the statement of net position
versus the solely current financial resources focus of the governmental fund balance sheet.
(b) Statement of Revenue, Expenditures and Changes in Fund Balances vs. Statement of
Activities
Differences between statement of revenue, expenditures and changes in fund balances -
governmental funds and the statement of activities fall into one of three broad categories:
(i) Long-term revenue differences
Long-term revenue differences arise because governmental funds report revenue only
when they are considered “available”, whereas the statement of activities reports
revenue when earned. Differences in long-term revenue arise because
governmental funds report on a modified accrual basis, whereas the accrual basis
of accounting is used on the statement of activities.
(ii) Capital related differences
Capital related differences include the difference between proceeds for the sale of
capital assets reported on governmental fund statements and the gain or loss on the
sale of assets as reported on the statement of activities, and the difference between
recording an expenditure for the purchase of capital items in the governmental fund
statements and depreciation expense on those items as recorded in the statement
of activities.
(iii) Long-term debt transaction differences
Long-term debt transaction differences occur because both interest and principal
payments are recorded as expenditures in the governmental fund statements,
whereas interest payments are recorded in the statement of activities as incurred,
and principal payments are recorded as a reduction of liabilities in the statement of
net position. Also, additions to long-term debt are recorded as revenue in the
governmental fund statements and increases in liabilities in the statement of net
position.
38
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(3) Cash and Equivalents
The Town’s investment policies are governed by State statutes, as previously described in these
notes. The depository bank places approved pledged securities for safekeeping and trust with
the Town’s agent bank in an amount sufficient to protect Town funds on a day-to-day basis
during the period of the contract. The pledge of approved securities is waived only to the
extent of the depository bank’s dollar amount of FDIC Insurance.
At December 31, 2022, the carrying amount of the Town’s deposits was $22,844,606 and the bank
balance was $23,967,596. The Town’s deposits at December 31, 2022, were entirely covered
by $500,000 of FDIC insurance and the remaining covered by pledged collateral held by the
Town’s agent bank in the Town’s name and by third party custodian of $23,467,596.
(4) Lease Receivable
Commencing on June 30, 2021, the Town extended a previously entered lease with the Postal
Service. The lease requires monthly rental payments of $7,167 payable at the end of each
rental month. The term is for 5 years and ends on June 30, 2026, with two renewal options of
5 years each. The Postal Service may terminate the agreement by giving 30 days written
notice to the Town. In all other respects, the lease shall remain the same. At December 31,
2022, the present value of the lease receivable and the corresponding deferred inflow of
resources was $991,571 and $951,716, respectively.
The following is the amortization schedule for the lease receivable:
Year ending Principal Interest Total
2023 $ 56,253 29,747 86,000
2024 57,940 28,060 86,000
2025 59,679 26,321 86,000
2026 63,619 24,531 88,150
2027 67,678 22,622 90,300
2028 - 2032 376,906 81,344 458,250
2033 - 2036 309,496 21,437 330,933
Total $ 991,571 234,062 1,225,633
39
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(4) Lease Receivable, Continued
The following is the amortization schedule for the deferred inflow of resources:
Year ending
2023 $ 70,497
2024 70,497
2025 70,497
2026 70,497
2027 70,497
2028 - 2032 352,485
2033 - 2036 246,746
Total $ 951,716
(5) Capital Assets
Capital asset balances and activity for the year ended December 31, 2022, were as follows:
Balance at Balance at
January 1,December 31,
Governmental activities 2022 Increases Decreases 2022
Capital assets, not being depreciated:
Land 997,833$ - - 997,833
Construction-in-progress 855,095 43,104 855,095 43,104
Total capital assets, not being depreciated 1,852,928 43,104 855,095 1,040,937
Capital assets, being depreciated:
Buildings 6,752,085 161,828 - 6,913,913
Equipment and machinery 5,927,203 1,101,725 664,781 6,364,147
Furniture and furnishings 209,179 - - 209,179
Non-building improvements 1,024,060 70,435 - 1,094,495
Infrastructure 9,238,228 1,306,642 (855,095) 11,399,965
Total capital assets, being depreciated 23,150,755 2,640,630 (190,314) 25,981,699
Less accumulated depreciation:
Buildings 2,586,914 206,748 - 2,793,662
Equipment and machinery 4,023,738 372,036 635,162 3,760,612
Furniture and furnishings 208,722 457 - 209,179
Non-building improvements 554,547 42,113 - 596,660
Infrastructure 2,394,284 395,236 - 2,789,520
Total accumulated depreciation 9,768,205 1,016,590 635,162 10,149,633
Total capital assets, net 15,235,478$ 1,667,144 29,619 16,873,003
40
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(5) Capital Assets, Continued
Depreciation was charged to governmental functions as follows:
General government support $ 69,989
Transportation 726,534
Culture and recreation 159,764
Home and community services 60,304
Total depreciation expense $ 1,016,591
Balance at Balance at
January 1,December 31,
Sewer fund 2022 Increases Decreases 2022
Capital assets, not being depreciated -
construction-in-progress -$ 225,685 - 225,685
Capital assets, being depreciated:
Equipment and machinery 782,418 105,472 - 887,890
Infrastructure 4,198,862 - - 4,198,862
Total capital assets, being depreciated 4,981,280 105,472 - 5,086,752
Less accumulated depreciation:
Equipment and machinery 489,993 102,446 - 592,439
Infrastructure 862,606 103,204 - 965,810
Total accumulated depreciation 1,352,599 205,650 - 1,558,249
Total capital assets, net 3,628,681$ 125,507 - 3,754,188
Balance at Balance at
January 1,December 31,
Water fund 2022 Increases Decreases 2022
Capital assets, not being depreciated -
construction-in-progress 465,729$ 334 465,728 335
Capital assets, being depreciated:
Equipment and machinery 721,413 169,505 - 890,918
Infrastructure 20,411,486 1,129,538 (465,728) 22,006,752
Total capital assets, being depreciated 21,132,899 1,299,043 (465,728) 22,897,670
Less accumulated depreciation:
Equipment and machinery 406,607 90,012 - 496,619
Infrastructure 4,035,682 518,080 - 4,553,762
Total accumulated depreciation 4,442,289 608,092 - 5,050,381
Total capital assets, net 17,156,339$ 691,285 - 17,847,624
41
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(6) Long-Term Debt
The Town borrows money in order to acquire or construct capital assets. This enables the cost of
these capital assets to be borne by the present and future taxpayers. At December 31, 2022,
the total principal indebtedness outstanding of the Town aggregated $10,310,000. The
following is a summary of the Town’s outstanding bonds payable for the year ended
December 31, 2022:
Date of Original Interest Maturity Outstanding
Description Issue Amount Rate Date 12/31/2022
General Fund:
2020-A Public Improvement 9/3/20 1,260,370 2.0-5.0%8/15/35 1,132,070$
Highway Fund:
2014-B Public Improvement 12/30/14 950,000 2.0-4.0%12/15/29 432,000
2015 Public Improvement 11/13/15 800,000 2.0-2.5%10/15/23 1,000
Water Fund:
2014-A Refunding Bond 12/30/14 910,000 2.0-4.0%5/15/24 185,000
2014-B Public Improvement 12/30/14 2,050,000 2.0-4.0%12/15/29 1,058,000
2015 Public Improvement 11/13/15 2,150,000 2.0-2.5%10/15/30 1,239,000
2018 Public Improvement 12/6/18 4,150,000 3.0%12/1/33 3,225,000
2020-A Public Improvement 9/3/20 2,079,630 2.6-5.0%8/15/35 1,867,930
2020-B Refunding Bond 9/3/20 1,493,125 2.0-5.0%8/15/31 1,170,000
Total bonds payable 10,310,000$
The following is a summary of the maturity of bonds payable:
Year ending Principal Interest Total
2023 1,055,000$ 312,484 1,367,484
2024 1,090,000 277,084 1,367,084
2025 910,000 241,091 1,151,091
2026 945,000 209,417 1,154,417
2027 975,000 176,445 1,151,445
2028 - 2032 4,200,000 426,393 4,626,393
2033 - 2035 1,135,000 42,166 1,177,166
Total 10,310,000$ 1,685,080 11,995,080
42
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(6) Long-Term Debt, Continued
Long-term liability balances and activity for the year ended December 31, 2022 are summarized
below:
Balance at Balance at Due
January 1,December 31,Within
2022 Increases Decreases 2022 One Year
Governmental funds:
Serial bonds:
Bonds payable 2,211,220$ - 646,150 1,565,070 139,920
Bond premiums 184,817 - 15,067 169,750 15,067
Serial bonds 2,396,037 - 661,217 1,734,820 154,987
Other liabilities:
Compensated absences 212,884 - 13,649 199,235 -
Net pension liability (asset)12,408 - 1,026,082 (1,013,674) -
Total OPEB liability 10,374,458 - 693,840 9,680,618 -
Total long-term liabilities 12,995,787$ - 2,394,788 10,600,999 154,987
Balance at Balance at Due
January 1,December 31,Within
2022 Increases Decreases 2022 One Year
Proprietary funds:
Serial bonds:
Bonds payable 9,623,780$ - 878,850 8,744,930 915,080
Bond premiums 518,979 - 49,660 469,319 49,662
Serial bonds 10,142,759 - 928,510 9,214,249 964,742
Other liabilities:
Compensated absences 21,793 549 - 22,342 -
Net pension liability (asset)1,178 - 118,494 (117,316) -
Total OPEB liability 735,888 85,011 - 820,899 -
Total long-term liabilities 10,901,618$ 85,560 1,047,004 9,940,174 964,742
Activity for compensated absences, net pension, and total OPEB liability shown at net due to the
impracticability of determining these amounts separately. Payments of compensated absences
are dependent upon future factors and, therefore, the timing of such payments cannot be
determined.
43
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(7) Long-Term Debt - Bolton Point
The Town is a joint obligor of debt used to fund the capital activities of Bolton Point. Historically,
and consistent with the cooperative agreement of the Bolton Point participating municipalities,
the repayment of Bolton Point debt and related interest has been funded through user fees.
Bolton Point remits its principal and interest to the Town. The Town repays the debt on behalf
of Bolton Point. For the year ended December 31, 2022, the Town received $266,788 of
principal and interest from Bolton Point. The following reflects information related to the
total bonds payable for Bolton Point as of December 31, 2022:
Date of Original Interest Maturity Outstanding
Description Issue Amount Rate Date 12/31/22
Joint Water
Improvement 10/5/12 2,600,000 2.00% - 3.00% 9/5/32 $ 1,460,000
Joint Water
Improvement 6/12/13 1,500,000 3.00% - 3.25% 6/1/33 930,000
Total bonds payable $ 2,390,000
The following is a summary of the maturity of bonds payable for Bolton Point:
Year ending Principal Interest Total
2023 205,000$ 67,456 272,456
2024 210,000 62,281 272,281
2025 215,000 56,919 271,919
2026 220,000 51,313 271,313
2027 225,000 45,413 270,413
2028 - 2032 1,220,000 123,443 1,343,443
2033 95,000 1,544 96,544
Total 2,390,000$ 408,369 2,798,369
44
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(8) Pension Plan
(a) Plan Description and Benefits Provided
The Town participates in the New York State and Local Employees’ Retirement System (the
System). This is a cost-sharing multiple-employer retirement system. The System
provides retirement benefits as well as death and disability benefits. The net position of
the System is held in the New York State Common Retirement Fund (the Fund), which
was established to hold all net position and record changes in plan net position allocated
to the System. The Comptroller of the State of New York serves as the trustee of the Fund
and is the administrative head of the System. System benefits are established under the
provision of the New York State Retirement and Social Security Law (RSSL). Once a
public employer elects to participate in the System, the election is irrevocable. The New
York State Constitution provides that pension membership is a contractual relationship of
which plan benefits cannot be diminished or impaired. Benefits can be changed for future
members only by enactment of a State statute. The Town also participates in the Public
Employees Group Life Insurance Plan (GLIP), which provides death benefits in the form
of life insurance. The GLIP is included in the State’s financial report as a pension trust
fund. That report, including information with regard to benefits provided, may be found
at www.osc.state.ny.us/retire/publications/index.php or obtained by writing to the New
York State and Local Retirement System, 110 State Street, Albany, New York 12244.
The System is noncontributory except for employees who joined after July 27, 1976, who
contribute 3.0 percent of their salary for the first ten years of membership, and employees
who joined on or after January 1, 2010 who generally contribute 3.0 to 6.0 percent of their
salary for their entire length of service. The Comptroller annually certifies the actuarially
determined rates expressly used in computing the employers’ contributions based on
salaries paid during the System’s fiscal year ending March 31.
(b) Pension Asset, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to Pension
At December 31, 2022, the Town reported the following asset for its proportionate share of
the net pension asset for the System. The net pension asset was measured as of March 31,
2021. The total pension asset used to calculate the net pension asset was determined by
an actuarial valuation. The Town’s proportionate share of the net pension asset was based
on a projection of the Town’s long-term share of contributions to the System relative to
the projected contributions of all participating members, actuarially determined. This
information was provided by the System in reports provided to the Town.
45
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(8) Pension Plan, Continued
(b) Pension Asset, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to Pension, Continued
Measurement date March 31, 2022
Valuation date April 1, 2021
Net pension asset $ 1,130,990
Town’s proportion of the Plan’s net
pension asset 0.0138355%
Change in proportionate share from
prior year 0.0001912
For the year ended December 31, 2022, the Town’s recognized pension expense of $64,739
in the statement of activities. At December 31, 2022, the Town’s reported deferred
outflows of resources and deferred inflows of resources related to pension from the
following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 85,652 (111,095)
Changes of assumptions 1,887,496 (31,849)
Net difference between projected and actual
investment earnings on pension plan investments - (3,703,518)
Changes in proportion and differences between the
Town’s contributions and proportionate share of
contributions 67,003 (67,654)
Town’s contributions subsequent to the measurement
date 330,409 -
Total $ 2,370,560 (3,914,116)
Town contributions subsequent to the March 31, 2021 measurement date will be recognized
as a reduction of the net pension asset in the year ending December 31, 2023. Other
amounts reported as deferred outflows of resources and deferred inflows of resources
related to pension will be recognized in pension expense as follows:
Year ending
2023 $ (283,090)
2024 (418,740)
2025 (967,708)
2026 (204,427)
$ (1,873,965)
46
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(8) Pension Plan, Continued
(c) Actuarial Assumptions
The total pension asset as of the measurement date was determined by using an actuarial
valuation as noted in the table below, with update procedures used to roll forward the total
pension liability to the measurement date. The actuarial valuation used the following
actuarial assumptions:
Measurement date March 31, 2022
Actuarial valuation date April 1, 2021
Investment rate of return (net of investment
expense, including inflation) 5.9%
Salary increases 4.4%
Inflation 2.7%
Cost-of-living adjustments 1.4%
Annuitant mortality rates are based on April 1, 2015 - March 31, 2020 System’s experience
with adjustments for mortality improvements based on Society of Actuaries’ Scale MP-
2020.
The actuarial assumptions used in the April 1, 2021 valuation are based on the results of an
actuarial experience study for the period April 1, 2015 - March 31, 2020.
The long-term rate of return on pension plan investments was determined using a building-
block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of investment expense and inflation) are developed for each major
asset class. These ranges are combined to produce the long-term expected rate of return
by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset
class are summarized as follows:
Long-Term
Target Expected Real
Asset Class Allocation Rate of Return *
Domestic equity 32% 3.30%
International equity 15% 5.85%
Private equity 10% 6.50%
Real estate 9% 5.00%
Opportunistic/ARS 3% 4.10%
Credit 4% 3.78%
Real assets 3% 5.80%
Fixed income 23% 0.00%
Cash 1% (1.00%)
100%
*The real rate of return is net of the long-term inflation assumption of 2.5%.
47
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(8) Pension Plan, Continued
(d) Discount Rate
The discount rate used to calculate the total pension asset was 5.9%. The projection of cash
flows used to determine the discount rate assumes that contributions from plan members
will be made at the current contribution rates and that contributions from employers will
be made at statutorily required rates, actuarially determined. Based upon the assumptions,
the System’s fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members. Therefore the long term expected rate
of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension asset.
(e) Sensitivity of the Proportionate Share of the Net Pension Asset/Liability to the Discount Rate
The following presents the Town’s proportionate share of the net pension asset/liability
calculated using the discount rate of 5.9%, as well as what the Town’s proportionate share
of the net pension asset/liability would be if it were calculated using a discount rate that is
1-percentage point lower (4.9%) or 1-percentage point higher (6.9%) than the current rate:
1% Current 1%
Decrease Assumption Increase
(4.9%) (5.9%) (6.9%)
Employer’s proportionate share of the net
pension asset (liability) $ (2,911,156) 1,130,990 4,512,050
(f) Pension Plan Fiduciary Net Position
The components of the current-year net pension asset of all participating employers as of the
respective measurement date, were as follows:
(Dollars in Millions)
Measurement date 3/31/2022
Employers’ total pension liability $ (223,875)
Plan fiduciary net position 232,050
Employers’ net pension asset $ 8,175
Ratio of plan fiduciary net position to the
Employers’ total pension asset 103.65%
(g) Contributions to the Pension Plan
Employer contributions are paid annually based on the System’s fiscal year which ends on
March 31st. Retirement contributions as of December 31, 2021 represent the projected
employer contribution for the period of April 1, 2021 through March 31, 2022 based on
paid employee wages multiplied by the employer’s contribution rate, by tier. The
retirement contribution paid to the System for the year ended December 31, 2022 was
$474,186.
48
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(9) Other Postemployment Benefits
(a) Plan Description and Benefits
The Town administers a single-employer defined benefit other postemployment benefit
(OPEB) plan. The plan provides lifetime healthcare insurance for eligible retirees and
their spouses through the Town’s group health insurance plan, which covers both active
and retired members. The Town pays a portion of retirees’ premiums for healthcare
insurance based on the number of years of service to the Town at the time of retirement.
In addition, retiring employees can convert unused sick time to offset portions of healthcare
premiums that are the retiree’s responsibility. The Town tracks the accumulated balances
and makes premium payments on behalf of the retirees until the balances are exhausted.
The plan does not issue a publicly available financial report.
(b) Employees Covered by Benefit Terms
At December 31, 2022 the following employees were covered by the benefit terms:
Inactive employees and beneficiaries 21
Active employees 58
Total 79
(c) The OPEB Liability
The Town’s total OPEB liability of $10,501,517 was measured as of January 1, 2022 and was
determined by an actuarial valuation as of January 1, 2022.
There are no assets accumulated in a trust that meets the criteria in GASB Statement No. 75,
paragraph 4.
(d) Actuarial Methods and Assumptions
The actuarial valuation used the following actuarial assumptions:
Actuarial cost method Entry Age Normal - Level Percent of Pay
Salary scale 3.00%
Discount rate 2.06%
Inflation 2.50%
Healthcare cost trend rates 6.25% for 2023, decreasing to an ultimate rate of
3.94% in 2092
Mortality rates were based on the sex-distinct RPH-2014 Mortality Tables for employees and
healthy annuitants, adjusted to 2006 using scale MP-2014, and projected forward with
scale MP-2021.
49
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(9) Other Postemployment Benefits, Continued
(e) Changes in the total OPEB Liability
Total OPEB liability at beginning of year $ 11,110,346
Changes for the year:
Service cost 496,710
Interest 244,269
Changes of benefit terms (93,824)
Differences between expected and
actual experience (613,268)
Changes of assumptions or other inputs (472,940)
Benefit payments (169,776)
Net change in total OPEB liability (608,829)
Total OPEB liability at end of year $ 10,501,517
(f) Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the Town, as well as what the total OPEB
liability would be if it were calculated using a discount rate that is l-percentage point lower
(1.06%) or 1-percentage point higher (3.06%) than the current discount rate:
1% Current 1%
Decrease Trend Rates Increase
Total OPEB Liability $ (12,275,575) (10,501,517) (9,057,924)
(g) Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB liability of the Town, as well as what the total OPEB
liability would be if it were calculated using healthcare cost trend rates that are l-
percentage point lower or l-percentage point higher than the current healthcare cost trend
rate:
1% Current l%
Decrease Trend Rates Increase
Total OPEB Liability $ (8,823,065) (10,501,517) (12,646,975)
(h) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
For the year ended December 31, 2022, the Town recognized OPEB expense of $809,348. At
December 31, 2022, the Town reported deferred outflows of resources and deferred
inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 148,475 (523,346)
Changes of assumptions or other inputs 1,531,036 (742,207)
Employer contributions subsequent to measurement date 185,396 -
Tota1 $ 1,864,907 (1,265,553)
50
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(9) Other Postemployment Benefits, Continued
(h) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB, Continued
Town contributions subsequent to the measurement date will be recognized as a reduction of
the total OPEB liability in the year ending December 31, 2023. Other amounts reported
as deferred outflows of resources and deferred inflows of resources related to OPEB will
be recognized as follows:
Year ending
2023 $ 162,194
2024 162,194
2025 109,121
2026 155,749
2027 (44,700)
Thereafter (130,600)
$ 413,958
(10) Interfund Activity
Interfund receivables and payables at December 31, 2022 were as follows:
Interfund Interfund
Fund Receivables Payables
General $ 220,000 -
Sewer - 200,000
Debt service - 20,000
$ 220,000 220,000
Interfund revenue and expenditures/expenses for the year ended December 31, 2022, were as
follows:
Interfund
Interfund Expenditures/
Fund Revenue Expenses
General $ 534,646 116,357
Highway - 554,175
Sewer - 192,167
Water - 205,039
Capital projects - 118,234
Debt service 651,326 -
$ 1,185,972 1,185,972
51
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(11) Commitments and Contingencies
(a) Risk Financing and Related Insurance
The Town is exposed to the risk of various types of loss which includes torts; theft of, damage
to, and destruction of assets; and injuries to employees. These risks are covered by
commercial insurance purchased from independent third parties. All claims are routinely
turned over to the insurance carriers.
(b) Litigation
The Town is exposed to various risks of loss arising principally in the normal course of
operations. These claims are being handled by the Town’s attorneys and insurance
companies. In the opinion of the attorneys, the outcome of these claims are either
indeterminable, or will not have a material adverse effect on the accompanying financial
statements and accordingly, no provision for losses has been recorded.
The Town also has open tax certiorari proceedings with a potential liability. The outcome of
these proceedings is undeterminable and no provision for loss has been recorded.
(c) Grant Programs
The Town participates in a number of grant programs. These programs are subject to financial
and compliance audits by the grantors or their representative. The Town believes, based
upon its review of current activity and prior experience, the amount of disallowances
resulting from these audits, if any, will not be significant to the Town’s financial position
or results of operations.
(d) Tax Abatements
As of December 31, 2022, the Town abatement programs include abatements on real property
taxes. Abatement agreements are made by both the Town and the Tompkins County
Industrial Development Agency (IDA), a component unit of Tompkins County.
All property tax abatements are performed through Payment in Lieu of Tax (PILOT)
agreements made by the Town and the IDA. The PILOT agreements are made to support
housing and industrial industries. Total taxes abated by the Town and the IDA in each of
these categories for the year ended December 31, 2022 is as follows:
Town IDA Total
Housing $ 7,996 79,120 87,116
Industrial - 5,494 5,494
$ 7,996 84,614 92,610
(e) Remedies for Default
Upon default of the payment of principal or interest on the serial bonds or bond anticipation
notes of the Town, the bondholders have the right to litigate.
52
TOWN OF ITHACA, NEW YORK
Notes to Financial Statements, Continued
(12) Cumulative Effect of Accounting Principle and Restatement of Prior Period
For the year ended December 31, 2022, the Town implemented GASB Statement No. 87 -
“Leases.” The implementation of this Statement resulted in reporting certain activities related
to the long-term impact of the Town’s leases. The Town has restated December 31, 2021 to
account for its investment in the Commission. The Town’s general fund balance and net
position in the governmental activities at December 31, 2021 has been restated as follows:
General Fund:
Fund balance at beginning of year, as previously stated $ 8,913,417
GASB Statement No. 87 implementation 23,972
Fund balance at beginning of year, as restated $ 8,937,389
Governmental Activities:
Net position at beginning of year, as previously stated $ 18,789,195
GASB Statement No. 87 implementation 23,972
Equity in joint venture 4,424,046
Net position at beginning of year, as restated $ 23,237,213
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
Revenue:
Real property taxes 3,500,000$ 3,500,000 3,501,544 1,544
Real property tax items 69,792 69,792 73,395 3,603
Non-property taxes 1,677,375 1,677,375 1,700,101 22,726
Departmental income 212,027 212,027 450,754 238,727
Intergovernmental charges 98,845 98,845 102,268 3,423
Use of money and property 178,296 178,296 289,364 111,068
Licenses and permits 10,000 10,000 8,926 (1,074)
Fines and forfeitures 225,000 225,000 168,250 (56,750)
Sale of property and compensation for loss 105,000 105,000 35,294 (69,706)
Miscellaneous 87,500 146,500 4,596 (141,904)
Interfund revenues 387,605 387,605 - (387,605)
State aid 369,000 310,000 500,301 190,301
Total revenue 6,920,440 6,920,440 6,834,793 (85,647)
Expenditures:
General government support 2,249,810 2,285,904 2,116,303 169,601
Public safety 85,884 85,884 76,814 9,070
Health - - 29,018 (29,018)
Transportation 772,050 932,665 697,647 235,018
Culture and recreation 1,320,440 1,615,295 1,403,536 211,759
Home and community services 1,552,943 1,545,837 1,142,411 403,426
Employee benefits 1,434,700 1,434,700 1,354,320 80,380
Total expenditures 7,415,827 7,900,285 6,820,049 1,080,236
Excess (deficiency) of revenue over
expenditures (495,387) (979,845) 14,744 994,589
Other financing sources (uses):
Interfund transfers in - 30,000 534,646 504,646
Interfund transfers out (119,220) (119,220) (116,357) 2,863
Total other financing sources (uses)(119,220) (89,220) 418,289 507,509
Change in fund balance (614,607)$ (1,069,065) 433,033 1,502,098
Fund balance at beginning of year, as restated 8,937,389
Fund balance at end of year 9,370,422$
53
TOWN OF ITHACA, NEW YORK
Required Supplementary Information
Schedule of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual - General Fund
Year ended December 31, 2022
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
Revenue:
Real property taxes 1,517,500$ 1,517,500 1,517,500 -
Real property tax items 16,917 16,917 13,395 (3,522)
Non-property taxes 1,632,000 2,092,000 2,842,235 750,235
Intergovernmental charges 21,889 21,889 21,889 -
Use of money and property 27,114 27,114 55,869 28,755
Sale of property and compensation for loss 218,541 249,541 97,432 (152,109)
Miscellaneous - - 6,827 6,827
State aid 179,009 179,009 200,443 21,434
Total revenue 3,612,970 4,103,970 4,755,590 651,620
Expenditures:
General government support 75,260 75,260 69,817 5,443
Transportation 2,951,252 3,293,513 3,162,693 130,820
Employee benefits 489,420 463,884 434,000 29,884
Total expenditures 3,515,932 3,832,657 3,666,510 166,147
Excess of revenue over expenditures 97,038 271,313 1,089,080 817,767
Other financing uses - interfund transfers out (97,038) (557,038) (554,175) 2,863
Change in fund balance -$ (285,725) 534,905 820,630
Fund balance at beginning of year 4,519,016
Fund balance at end of year 5,053,921$
54
TOWN OF ITHACA, NEW YORK
Required Supplementary Information
Schedule of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual - Highway Fund
Year ended December 31, 2022
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
Revenue:
Real property taxes 3,530,806$ 3,530,806 3,530,806 -
Use of money and property 7,500 7,500 26,849 19,349
State aid 30,000 30,000 25,229 (4,771)
Total revenue 3,568,306 3,568,306 3,582,884 14,578
Expenditures:
General government support 3,000 3,000 4,800 (1,800)
Public safety 3,565,306 3,565,306 3,542,790 22,516
Total expenditures 3,568,306 3,568,306 3,547,590 20,716
Change in fund balance -$ - 35,294 35,294
Fund balance at beginning of year 1,684,714
Fund balance at end of year 1,720,008$
55
TOWN OF ITHACA, NEW YORK
Required Supplementary Information
Schedule of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual - Fire Protection
Year ended December 31, 2022
Total OPEB liability 2022 2021 2020 2019 2018
Service cost 496,710$ 429,615 218,429 262,410 230,892
Interest 244,269 271,012 317,115 278,914 273,690
Changes of benefit terms (93,824) 8,124 - - -
Differences between expected and
actual experience (613,268) - 266,624 - -
Changes of assumptions or other inputs (472,940) 1,007,296 1,262,742 (777,965) 403,479
Benefit payments (169,776) (134,283) (108,472) (73,511) (70,717)
Net change in total OPEB liability (608,829) 1,581,764 1,956,438 (310,152) 837,344
Total OPEB liability - beginning 11,110,346 9,528,582 7,572,144 7,882,296 7,044,952
Total OPEB liability - ending 10,501,517$ 11,110,346 9,528,582 7,572,144 7,882,296
Covered payroll 3,759,504$ 3,759,504 4,070,139 4,009,564 3,358,129
Total OPEB liability as a percentage
of covered payroll 279.33%295.53%234.11%188.85%234.72%
Notes to schedule:
2022 2021 2020 2019 2018
2.06%2.12%2.74%4.10%3.44%
Changes of assumptions -Changes of assumptions and other inputs reflect the effects of changes in the
discount rate each period. The following are the discount rates used in each period:
This schedule is presented to illustrate the requirement to show information for 10 years.However,until a
full 10-year trend is compiled,the Town is presenting information for those years for which information is
available.There are no assets accumulated in a trust that meets the criteria in GASB Statement No.75,
paragraph 4.
56
TOWN OF ITHACA, NEW YORK
Required Supplementary Information
Schedule of Changes in the Town's
Total OPEB Liability and Related Ratios
December 31, 2022
2022 2021 2020 2019 2018 2017 2016 2015
The Town's proportion of the
net pension asset/liability 0.0138355%0.0136443%0.0130000%0.0130000%0.0120000%0.0110000%0.0110000%0.0150000%
The Town's proportionate share
of the net pension asset
(liability)1,309,990$ (13,586) (3,535,559) (906,711) (390,624) (1,036,325) (1,834,200) (387,122)
The Town's covered payroll 4,166,212$ 3,992,904 4,101,843 4,027,319 3,773,421 3,444,677 3,256,757 3,310,664
The Town's proportionate share
of the net pension asset/liability
as a percentage of covered
payroll 31.44%0.34%86.19%22.51%10.35%30.08%56.32%11.69%
Plan fiduciary net position as
a percentage of the total
pension asset/liability 103.65%99.95%86.4%96.3%98.2%94.7%90.7%97.9%
57
TOWN OF ITHACA, NEW YORK
Required Supplementary Information
Schedule of Town's Proportionate Share of the Net Pension Asset/Liability
Year ended December 31, 2022
This schedule is presented to illustrate the requirement to show information for 10 years.However,until a full 10-year trend is compiled,the Town
is presenting information for those years for which information is available.
2022 2021 2020 2019 2018 2017 2016 2015
Contractually required
contribution 474,186$ 569,632 523,280 511,062 489,081 459,827 513,481 548,770
Contribution in relation to the
contractually required
contribution 474,186 569,632 523,280 511,062 489,081 459,827 513,481 548,770
Contribution deficiency (excess)-$ - - - - - - -
Town's covered payroll 4,166,212$ 3,992,904 4,180,851 4,070,139 4,000,148 3,670,571 3,397,458 3,381,971
Contribution as a percentage of
covered payroll 11.38%14.27%12.52%12.56%12.23%12.53%15.11%16.23%
TOWN OF ITHACA, NEW YORK
Schedule of Town's Pension Contributions
58
Required Supplementary Information
This schedule is presented to illustrate the requirement to show information for 10 years.However,until a full 10-year trend is compiled,the
Town is presenting information for those years for which information is available.
Year ended December 31, 2022
Special Total
Revenue Debt Capital Nonmajor
Lighting Service Projects Governmental
Fund Fund Fund Funds
Assets
Cash and equivalents:
Unrestricted 36,368$ - - 36,368
Restricted - 359,876 - 359,876
Accounts receivable - 3,352 - 3,352
Total assets 36,368$ 363,228 - 399,596
Liabilities and Fund Balances
Liabilities:
Accounts payable 1,534 - - 1,534
Due to other funds - 20,000 - 20,000
Unearned revenue 511 - - 511
Total liabilities 2,045 20,000 - 22,045
Fund balances:
Restricted - 343,408 - 343,408
Assigned 34,323 - - 34,323
Total fund balances 34,323 343,408 - 377,731
Total liabilities and fund balances 36,368$ 363,408 - 399,776
TOWN OF ITHACA, NEW YORK
Combining Balance Sheet - Nonmajor Governmental Funds
December 31, 2022
59
Other Supplementary Information
Special Total
Revenue Debt Capital Nonmajor
Lighting Service Projects Governmental
Fund Fund Fund Funds
Revenue:
Real property taxes 27,300$ - - 27,300
Use of money and property 320 5,350 50 5,720
Federal aid - - 67,740 67,740
Total revenue 27,620 5,350 67,790 100,760
Expenditures:
General government support - 900 - 900
Transportation 11,072 - - 11,072
Culture and recreation - - 22,087 22,087
Debt service:
Principal - 646,150 - 646,150
Interest - 64,331 - 64,331
Total expenditures 11,072 711,381 22,087 744,540
Excess (deficiency) of revenue over
expenditures 16,548 (706,031) 45,703 (643,780)
Other financing sources (uses):
Transfers in - 651,326 - 651,326
Transfers out - - (118,234) (118,234)
Total other financing sources (uses)- 651,326 (118,234) 533,092
Change in fund balances 16,548 (54,705) (72,531) (110,688)
Fund balances at beginning of year 17,775 398,113 72,531 488,419
Fund balances at end of year 34,323$ 343,408 - 377,731
60
TOWN OF ITHACA, NEW YORK
Combining Statement of Revenue, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds
Year ended December 31, 2022
Other Supplementary Information
61
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Town Board and the Supervisor
Town of Ithaca, New York:
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, the financial statements of the
governmental activities, the business-type activities, each major fund and the aggregate remaining
fund information of the Town of Ithaca, New York (the Town), as of and for the year ended December
31, 2022, and the related notes to the financial statements, which collectively comprise the Town’s
basic financial statements and have issued our report thereon dated June 26, 2023.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Town’s internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Town’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the Town’s
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the Town’s financial statements will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,
in internal control that is less severe than a material weakness, yet important enough to merit attention
by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify
any deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that were not identified.
62
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town’s financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required to
be reported under Government Auditing Standards.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Town’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the Town’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Williamsville, New York
June 26, 2023