city of neenah

Transcription

city of neenah

CITY OF NEENAH
Neenah, Wisconsin
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
As of and for the Year Ended December 31, 2012
Prepared By:
DEPARTMENT OF FINANCE
Michael K. Easker, CPA, Director
Nancy A. Handevidt, Deputy Director
CITY OF NEENAH
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
INTRODUCTORY SECTION
Transmittal Letter
Certificate of Achievement for Excellence in
Financial Reporting
Page
i – vii
viii
Directory of Officials
ix
Organization Chart
x
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS
xi – xiii
xiv – xxvii
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements:
Statement of Net Position
Statement of Activities
1
2–3
Fund Financial Statements
Balance Sheet – Governmental Funds
4–5
Statement of Revenues, Expenditures and Changes in Fund
Balances – Governmental Funds
6–7
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
Statement of Net Position – Proprietary Funds
Statement of Revenues, Expenses, and Changes in Net
Position – Proprietary Funds
Statement of Cash Flows – Proprietary Funds
8
9 – 10
11
12 – 13
Statement of Assets and Liabilities – Fiduciary Funds
14
Statement of Net Position – Component Units
15
Statement of Revenues, Expenses, and Changes in Net Position –
Component Units
16
Notes to the Financial Statements
17 – 74
CITY OF NEENAH
TABLE OF CONTENTS (cont.)
FINANCIAL SECTION (cont.)
Page
REQUIRED SUPPLEMENTARY INFORMATION
Other Postemployment Benefits Plan Schedule of Funding Progress
75
Schedule of Revenues and Other Financing Sources – Budget
and Actual – General Fund
76 – 77
Schedule of Expenditures and Other Financing Uses – Budget
and Actual – General Fund
78 – 79
Schedule of Revenues, Expenditures and Changes in Fund Balance (Deficit) –
Budget and Actual – TIF District No. 8 – Special Revenue Fund
80
Notes to Required Supplementary Information
81
SUPPLEMENTARY INFORMATION
General Debt Service Fund (Major Fund)
Balance Sheet
82
Schedule of Revenues, Expenditures, and Changes in Fund
Balance – Budget and Actual
83
Other Major Funds
Schedule of Revenues, Expenditures, and Changes in Fund
Balance (Deficit) – Budget and Actual
Capital Projects Funds (Major Funds)
Public Infrastructure
TIF District No. 7
TIF District No. 8
84
85
86
Nonmajor Governmental Funds
Combining Balance Sheet – Nonmajor Governmental Funds
87 – 91
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Governmental Funds
92 – 96
Schedules of Revenues, Expenditures, and Changes in Fund Balances (Deficit) –
Budget and Actual
Special Revenue Funds
TIF District No. 5
TIF District No. 6
97
98
CITY OF NEENAH
Page
SUPPLEMENTARY INFORMATION (cont.)
Nonmajor Governmental Funds (cont.)
Schedules of Revenues, Expenditures, and Changes in Fund Balances (Deficit) –
Budget and Actual (cont.)
Special Revenue Funds (cont.)
TIF District No. 7
Community Development Block Grant
Housing and Business Loans
Industrial Development
Recycling
Health Grants
Parks and Recreation
Dial-A-Ride
Civic and Social
Library
Other
Cemetery Perpetual Care
Cemetery Flowers
99
100
101
102
103
104
105
106
107
108
109
110
111
Capital Project Funds
TIF District No. 5
TIF District No. 6
Facilities
Capital Equipment
Equipment Replacement
112
113
114
115
116
Internal Service Funds
Combining Statement of Net Position – Internal Service Funds
117
Combining Statement of Revenues, Expenses and
Changes in Fund Net Position – Internal Service Funds
118
Combining Statement of Cash Flows – Internal Service Funds
119
Agency Funds
Combining Statement of Changes in Assets and Liabilities – All Agency Funds
120 – 121
Menasha-Neenah Municipal Court
Operating Fund – Schedule of Revenues, Expenditures and Changes in
Fund Balance
122
CITY OF NEENAH
Page
SUPPLEMENTARY INFORMATION (cont.)
Neenah-Menasha Fire Rescue
Operating Fund – Schedule of Cash Collections, Disbursements, and Changes
in the Cash Balance
123
TIF District Schedules
Project-Length Schedule of Construction Projects – TIF District No. 5 Fund
124
124
125
125
Community Development Authority Cash Flow
Component Unit Cash Flows
126
STATISTICAL SECTION
Schedule 1 – Net Position by Component – Last Ten Fiscal Years
Schedule 2 – Change in Net Position – Last Ten Fiscal Years
127
128 - 129
Schedule 3 – Program Revenues by Function/Program – Last Ten Fiscal Years
130
Schedule 4 – Fund Balances, Governmental Funds – Last Ten Fiscal Years
131
Schedule 5 – Change in Fund Balances, Governmental Funds – Last Ten Fiscal Years
132
Schedule 6 – Assessed and Equalized Value of Taxable Property – Last Ten Fiscal Years
133
Schedule 7 – Property Tax Rates – All Direct and Overlapping Governments – Last
Ten Fiscal Years
134
Schedule 8 – Principal Taxpayers – 2012 and Nine Years Prior
135
Schedule 9 – Property Tax Levies and Collections – Last Ten Fiscal Years
136
Schedule 10 – Outstanding Debt by Type – Last Ten Fiscal Years
137
CITY OF NEENAH
STATISTICAL SECTION (cont.)
Page
Schedule 11 – Ratio of Outstanding Debt to Equalized Valuation and Debt Per Capita
138
Schedule 12 – Computation of Direct and Overlapping Debt
139
Schedule 13 – Computation of Legal Debt Margin
140
Schedule 14 – Revenue Bond Coverage – Water Utility
141
Schedule 15 – Water Utility Data – Ten Largest Water Users
142
Schedule 16 – Demographic Statistics
143
Schedule 17 – Principal Industrial and Commercial Employers
144
Schedule 18 – Schedule of Insurance in Force
145
Schedule 19 – Miscellaneous Statistics
146
The Cities of Neenah, Appleton, Menasha and Oshkosh comprise an area known as the
Fox Cities due to their location along the Fox River. This metropolitan area, which has
an estimated population of over 314,000 people, is Wisconsin’s third largest socioeconomic market and one of its fastest growing metropolitan areas. The State of
Wisconsin reports continue to pinpoint the Fox Cities as a leader in property valuation
growth and high personal income.
The Fox Cities metropolitan area has been recognized by Forbes as one of the “Best
Small Places for Business and Careers” and by the Milken Institute as one of the “Best
Performing Cities” relative to creating and sustaining jobs and economic growth. The
Neenah public school system has earned a “Gold Medal” rating in Expansion
Management magazine and is rated as one of the nation’s top 100 school systems by
Money magazine. The system is highly rated in its areas of high graduation rates,
college board scores that are consistently higher than state and national averages, low
teacher/student ratios, continued commitment to funding public education, and strong
economic and educational demographic rankings. Also, as part of its “Best Places to
Live” study, Money magazine also ranked the metropolitan area as the nation’s safest
community in regard to personal crime risk.
Neenah’s downtown is also home to the world headquarters of Plexus Corporation, Alta
Resources and Bemis Company, along with a significant presence from both KimberlyClark Corporation and Bergstrom Corporation. The ongoing Downtown Riverwalk Zone
Initiative has already generated over $40 million in new projects and for five consecutive
years residential construction has averaged more than 100 new housing units. As
evidence of the City’s business friendly and vibrant downtown, current estimates
indicate that over 11,000 people are employed within a one-mile radius of the downtown
area.
Economic development efforts in the area focus on the collective strengths of the
region. While the Fox Cities rank as one of the 50 largest manufacturing centers in the
country, the region has broadened its economic base by placing emphasis on
assistance with business expansion, and selectively targeting industry sectors for new
business growth.
ECONOMIC CONDITION AND OUTLOOK
Despite a downturn in construction activity nationally, 489 building permits were issued
in the City last year leading to over $72 million in new construction. New housing starts
were steady, and commercial and industrial development were especially strong during
2012.
Notable projects that started construction in 2012 included a 473,000 square-foot
Neenah Operations facility for Plexus Corp. in the City’s Southpark Industrial Center, a
new 75,000 square-foot Festival Food’s grocery store in the Westside Business
Corridor, and a new Dollar Tree store. Major interior renovation projects were completed
at Theda Clark Medical Center and in Neenah Towers 2 and 3 for the expansion of Alta
Resources. Residential construction remained strong in Neenah with 46 new one-family
housing starts in 2012.
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Much of the City’s ongoing development success is due to the active, aggressive and
prudent use of Tax Incremental Financing Districts. The City currently has four open
TIF Districts. Existing districts include TIF Districts #5 and #8, which are located in and
adjacent to the City’s downtown business and waterfront district. In the last five years,
TIF #8 has seen the redevelopment of the City’s waterfront as well as the development
of the aforementioned Alta Resources office complex and the redevelopment of the
Glatfelter site, including the previously noted Plexus World Headquarters and Affinity
Medical Clinic.
The City’s other TIF districts include TIF #6, which serves the Southpark Industrial
Center, and TIF #7, which was created to support the City’s Westside Business Corridor
adjacent to US Highway 41.
The following table summarizes the City’s TIF district property value status:
TIF
#
5
6
7
8
Creation
Date
1/1/93
1/1/97
1/1/00
1/1/01
Max
Exp Date
4/21/15
3/9/15
7/4/22
9/4/23
Max
Close Date
12/31/23
12/31/23
12/31/26
12/31/32
Amended
Base Value
$13,971,900
2,869,600
27,237,100
14,743,600
1/1/12
Value
$22,739,400
10,834,500
117,662,500
68,202,900
Increment
$8,767,500
7,964,900
90,425,400
53,459,300
$160,617,100
Neenah remains well positioned for growth in 2013. Over 150 residential lots are
available for new home construction. Commercial growth opportunities are available in
planned business centers and at prime redevelopment sites. Industrial and
manufacturing companies are showing renewed interest in expanding their operations,
and the City has responded by creating more building sites in the expansion of the
Southpark Industrial Center.
COMMUNITY SERVICES
Community residents enjoy access to 25 City parks with 7,500 feet of shoreline.
Facilities include an outdoor swim pool complex, boat launches, tennis courts, archery
range, ball diamonds, basketball courts, skate/bike park, ice rinks, soccer fields,
volleyball courts, playgrounds, trails, fishing decks, sled hills and various other
recreational facilities.
The Neenah Riverwalk at Shattuck Park provides residents and visitors to the
community a cultural, recreational, and social experience in the heart of the Downtown.
Key features include a barrier free riverwalk, a waters-edge pavilion, a walkout pier in
the inner harbor, an interactive fountain, a concert lawn and ample sitting areas.
Shattuck Park is a preferred venue for events, concerts, festivals and other community
gatherings.
To preserve the rich history of Neenah as a paper manufacturing community, Legacy
Park was constructed in 2010 on a portion of the former Glatfelter Paper Mill site. The
original smokestack from the Glatfelter Mill stands at the center of the park as tribute to
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the employees and founders of a business that so strongly influenced the early years of
Neenah’s development. Visitors to the park can continue along the newly constructed
extension of the Neenah Riverwalk adjacent to the Plexus Headquarters, the Fox River
and Little Lake Butte des Morts. In 2012 construction was completed on Gateway
Plaza, a public plaza designed to provide space for civic functions as well as day-to-day
users. This Plaza, located between Plexus Global Headquarters and the Affinity
Medical Clinic, had the strong support of private donors. This partnership between the
City and those generating private funds allowed the construction of a high-quality public
space for the entire community to enjoy.
The City administers a comprehensive recreation program offering activities and
services in arts, sports, special events, wellness/fitness, hobby and entertainment. By
maintaining partnerships with private non-profit groups, the City helps facilitate many
other opportunities including sailing lessons and regattas, major soccer tournaments
and one of the largest 3-on-3 basketball tournaments in the State. A full-service YMCA
and the Boys & Girls Brigade offer numerous year round programs and camping
opportunities.
Neenah Access Trails is a system of on-street routes and off-street trails designed to
provide a safe and convenient means of non-motorized travel for both recreation and
transportation purposes. The system provides access to the neighborhoods, parks,
employment centers, shopping areas and other key destinations, bringing together City
residents and neighboring cities in the unifying spirit of community, wellness and
enjoyment of the outdoors.
Neenah Public Library's use has increased significantly since the 50,000 square foot
building opened in 2000. Neenah Public Library is the 13th highest circulating library in
the state, checking out over 960,000 items in 2012. Customer usage continues to
increase, with over 900 customers using the library daily. More than 240,000 items are
available for checkout; over 1,000,000 items may be reserved and delivered to the
library from the 30 libraries in a shared computer consortium. Extensive library
programming is offered for customers of all ages; over 700 programs were held in 2012,
with attendance of 27,000. The library also provides quality reference and readers'
advisory services. Additional services include homebound delivery; meeting rooms
available for use by individuals and groups, including two rooms equipped with hearing
loops for the hearing impaired; free legal clinics; and free volunteer tax preparation
assistance.
The City's private Bergstrom-Mahler Museum houses one of the world's most renowned
collections of glass paperweights and glassware, plus other objects de arte. It is the
location of many public exhibits of nationally known artists in various mediums. Other
cultural venues in the City include Pickard Auditorium, a 1,600-seat performing arts
center used for local, regional and national touring productions.
City residents have access to both public and private colleges and universities in the
Fox Valley region. Fox Valley Technical College (“FVTC”) has two main campuses in
Appleton and Oshkosh, plus one of four regional centers and three class locations in
Neenah. It is ranked among the nation’s top three vocational educational schools. The
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University of Wisconsin-Oshkosh (“UW-Oshkosh”) is one of 13 universities administered
by the Wisconsin Board of Regents. UW-Oshkosh has an approximate enrollment of
13,100 graduate and undergraduate students, employs approximately 1,475 people,
and is located on a 167-acre campus along the Fox River. UW-Oshkosh was
established in 1871. It offers a number of “advance study” classes at the Neenah High
School campus for college bound students. Lawrence University, located in Appleton,
was chartered in 1847 with the Methodist Church, but today is a non-sectarian and
independent four-year liberal arts college. Appleton’s Lawrence University, has an
enrollment of approximately 1,400 students, and was recognized in 2003 as one of U.S.
News and World Report’s top 50 liberal arts colleges in the nation. Marian College,
located in Fond du Lac, is another four-year liberal arts college, which also offers
classes in the City. The University of Wisconsin-Fox Valley (two-year center), located in
Menasha, recently opened its new planetarium.
Neenah is home to Theda Clark Medical Center, a 250-bed acute care hospital that has
been ranked among the “100 Top Hospitals” in the United States and as a national
“Consumer Choice” hospital. Theda Clark operates ThedaStar Air Medical Helicopter
and is the metropolitan area’s only American College of Surgeons’ Verified Level II
Trauma Center. Theda Clark is also home to Children’s Hospital of Wisconsin–Fox
Valley, a separately licensed pediatric hospital that includes the area’s only neo-natal
intensive care unit. Theda Clark Medical Center celebrated 100 years of service to
northeast Wisconsin in 2009.
FINANCIAL INFORMATION
City management is responsible for establishing and maintaining an internal control
structure designed to ensure that the assets of the City are protected from loss, theft or
misuse and to ensure that adequate accounting data is compiled to allow for the
preparation of financial statements in conformity with generally accepted accounting
principles. The internal control structure is designed to provide reasonable, but not
absolute, assurance that these objectives are met. The concept of reasonable
assurance recognizes that: (1) the cost of a control should not exceed the benefits likely
to be derived; and (2) the valuation of costs and benefits requires estimates and
judgments by management. As a recipient of federal, state and county financial
assistance, the City also is responsible for assuring that an adequate internal control
structure is in place to ensure compliance with applicable laws and regulations. This
internal control structure is subject to periodic evaluation by management, its
independent auditors and audit staffs of the state and federal governments.
The City maintains strong budgetary controls. The objective of these budgetary controls
is to ensure compliance with legal provisions embodied in the annual appropriated
operating and capital improvements budgets adopted by the Common Council. Annual
budgets are adopted for all funds, including the activities of the General Fund, Special
Revenue Funds, Debt Service Fund, Capital Project Funds, Internal Service Funds and
Enterprise Funds. Five-year financial plans are adopted for capital improvement
projects. Budgetary control is maintained through expenditure limitation at the defined
cost center level (a cost center can be a fund, major program, department or specific
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activity for which control of expenditures is considered appropriate). Proposed
expenditures for which moneys were not previously appropriated, or which result in an
overrun of budget control balances, may not take place without additional appropriations
made available through Common Council approval.
An explanation of the City's accounting policies is contained in the notes to the financial
statements, which are an integral part of this report. The notes explain the basis of
accounting for each major fund type, describe the purpose of the funds used, and
provide other significant information.
As demonstrated by the statements, schedules and notes included in the Financial
Section of this report, the City continues to meet its responsibility for sound financial
management.
INDEPENDENT AUDIT
State statutes require an annual audit by independent certified public accountants. The
City selected the accounting firm of Baker Tilly Virchow Krause, LLP. The auditors
report on the financial statements of the governmental activities, the business-type
activities, the discretely presented component units, each major fund and the aggregate
remaining fund information of the City of Neenah.
REPORTING ACHIEVEMENTS
The Government Finance Officers Association of the United States and Canada
(“GFOA”) awarded a Certificate of Achievement for Excellence in Financial Reporting to
the City of Neenah for its comprehensive annual financial report for the fiscal year
ended December 31, 2011. This was the twenty-ninth consecutive year that the City
has received this prestigious award. In order to be awarded a Certificate of
Achievement, the City must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that the
2012 Comprehensive Annual Financial Report continues to meet the Certificate of
Achievement Program's requirements, and we are submitting it to the GFOA to
determine its eligibility for another certificate.
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CONTINUING DISCLOSURE REQUIREMENTS
In compliance with Securities and Exchange Commission Disclosure Rule 15C2-12, and
according to terms of the City’s Official Statement for issuance of debt, tables in the
Statistical Section and Notes to Basic Financial Statements incorporate specific
financial information for the benefit of existing and potential investors in the City’s
securities. The City files its CAFR with the Municipal Securities Rulemaking Board
(MSRB) and will continue that practice in fulfillment of its obligation under the SEC Rule.
Timely notice of material events enumerated in the Rule will be provided to appropriate
authorities as prescribed.
ACKNOWLEDGMENTS
The preparation of this Comprehensive Annual Financial Report on a timely basis was
made possible by the dedicated service and commitment of each member of the
Finance Department staff. They have my sincere appreciation for their individual
contribution in preparation of the report.
I also want to recognize the Baker Tilly Virchow Krause, LLP audit management team
for their dedication and expertise, which contributed significantly to the report quality
and adherence to professional accounting standards.
In closing, I would like to thank the Common Council and Mayor for their leadership and
support in the planning and conducting of the financial operations of the City in a
responsible and progressive manner. Without that support, preparation of this report
would not have been possible.
Michael K. Easker, CPA
Director of Finance
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CITY OF NEENAH
DIRECTORY OF OFFICIALS
2012 – 2013
MAYOR
George Scherck
PRESIDENT OF THE COUNCIL
Todd Stevenson
COUNCIL MEMBERS
Aldermanic District 1:
Cari Lendrum
Shiloh Ramos
William Pollnow, Jr.
John Ahles
Margaret Bates
Judith Zaretzke
Tim Hamblin
Lee Hillstrom
Todd Stevenson
OFFICERS
City Clerk
City Attorney/HR Director
Director of Finance
Director of Public Works and Utilities
Police Chief
Fire Chief
Director of Community Development
and Assessment
Director of Parks and Recreation
Director of Library
Director of Information Systems
Patricia A. Sturn
James Godlewski
Michael K. Easker
Larry Wettering
Kevin E. Wilkinson
Al Auxier
Chris A. Haese
M. Eileen McCoy
Stephen Proces
Joseph Wenninger
STANDING FINANCE AND PERSONNEL COMMITTEE
Alderperson John Ahles (Chairman)
Alderperson Margaret Bates (Vice Chairman)
Alderperson William Pollnow, Jr.
Alderperson Shiloh Ramos
Alderperson Todd Stevenson
STANDING PUBLIC SERVICES AND SAFETY COMMITTEE
Alderperson Judith Zaretzke (Chairman)
Alderperson Lee Hillstrom (Vice Chairman)
Alderperson Tim Hamblin
Alderperson Cari Lendrum
Alderperson Todd Stevenson
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- x Committee on Rules
Legislative Review
Committee
Public Services &
Safety Committee
= Appointed by Mayor, 2/3 confirmation by Council
= Appointed by Police or Jt. Fire Commission
= Combined Position: Dir. of Public Works & Utilities
= Appointed by Mayor,
Mayor
confirmed by Council
= Appointed by Mayor
(Dashed line indicates confirmation by Common Council)
Director of Community
Development and Assessment
City Clerk
City Attorney / HR Director
Finance & Personnel
Committee
Council Comittees
= Appointed by Council
Director of Water Works
Water Works Commission
Director of Parks and
Recreation
Director of Public Works &
Utilities
Director of Finance
COMMON COUNCIL
VOTERS
Loan Assistance Board
BID Board
= Appointed by the Water
Works Commission
= Appointed by Library Board
Harbor Commission
Jt. TIF Review Board
Jt. Fire Fin. &
Personnel Comm.
Emergency Gov't
Committee
Plan Commission
Committee on Aging
Board of Zoning
Appeals
Landmarks
Commission
Neenah-Menasha
Sewerage Comm.
Park & Recreation
Commission
Boards & Commissions
Library Board
Jt. Fire Commission
Police Commission
Board of Review
Board of Public Works
Boards & Commissions
MAYOR
Library Director
Fire Chief
Police Chief
Assessor
Positions
Information Services
Director
Community Dev.
Authority
Management’s Discussion and Analysis
(Unaudited)
The remaining statements on pages 9 through 16 provide information on the City’s Proprietary
(business-type activity) Funds and Fiduciary Funds (in which the City acts solely as agent for
the benefit of those outside of the City’s operation) and Component Units.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
As we begin to analyze the City’s financial condition and operations as of December 31, 2012,
we will try to answer some very basic questions. Is the City better or worse off financially than it
was in 2011? Has the City planned appropriately for its operations and activities? Is the City
financially healthy as it plans for the future?
First, let’s provide some general information to facilitate a better understanding of how local
government is required to account for and report on its operations and activities. In the
Statement of Net Position and Statement of Activities, we divide the City into three categories:
Governmental Activities: Most of the City’s basic services are reported here. This
includes Public Safety (police, fire, emergency government), Public Works (engineering, street
lighting, garbage collection, street repair, snow and ice removal, traffic control), Parks,
Recreation and Education (public library, parks, recreation programs, swimming pool, special
events), Health and Welfare (nursing services, sanitarian), Community Development (economic
development, building inspections, mass transit) and General Government (common council,
mayor, administration, risk management/insurance). These services are funded by various
revenue sources, including property taxes, intergovernmental aid, licenses and permits, charges
for services and investment income.
Business-Type Activities: For these activities, the City charges a fee to cover all or
most of the costs of certain services it provides. The City’s Water, Sewer, Stormwater and
Parking Utilities are reported here.
Component Units: The City includes two separate entities, the Business Improvement
District (“BID”) and the Community Development Authority (“CDA”). Separate statements are
issued for the BID, but are not for the CDA.
FUND FINANCIAL STATEMENTS
A fund is a grouping of related accounts that is used to maintain control over resources that
have been segregated for specific activities or objectives. The City of Neenah is required by law
to use “fund accounting” to ensure and demonstrate compliance with all finance-related
requirements. All funds of the City are divided into three categories: governmental funds,
proprietary funds and fiduciary funds. Each category of funds uses different accounting methods
to account for and report financial results.
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(Unaudited)
Governmental Funds
The majority of the City’s operations and activities are reported in governmental funds, which
focus on how money flows into and out of those funds. The balances left in these funds are
available to be spent in future years. These funds are reported using an accounting method
called modified accrual accounting, which measures cash and all financial assets that can
readily be converted to cash. The governmental fund statements provide a detailed short-term
view of the City’s general government operations and the basic services it provides. It also is
useful in evaluating a government’s ability to meet near-term financing requirements. The
relationship between governmental activities (as reported in the Statement of Net Position and
Statement of Activities) and governmental funds is reconciled at the end of the fund financial
statements on page 8. Following is a listing and description of the governmental funds reported
by the City of Neenah in 2012:
General Fund
The general fund (major fund) is the general operating fund of the City. It is used to account for
all financial resources except those resources required to be accounted for in another fund.
Special revenue funds (non-major funds) are used to account for and report the proceeds of
specific revenue sources that are restricted or committed to expenditures for specified purposes
(other than debt service or capital projects). In 2012, the City of Neenah used special revenue
funds to account for:
TIF District #5
TIF District #6
TIF District #7
TIF District #8 (major fund)
Housing/Business Loans
Recycling
Health Grants
Dial-A-Ride
Civic and Social
Library
Clock Tower Renovations
Other
Cemetery Flowers
Walnut Employee Group
Debt Service Fund
The debt service fund (major fund) is used to account for and report financial resources that are
restricted, committed, or assigned to expenditure for the payment of, general long-term debt
principal, interest and related costs (other than those being financed by proprietary funds).
Capital Projects Funds
Capital projects funds are used to account for financial resources to be used for the acquisition
or construction of major capital facilities or equipment (other than those financed by proprietary
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(Unaudited)
funds). In 2012, the City of Neenah used capital project funds to account for:
Public Infrastructure (major fund)
TIF District #5
TIF District #6
Redevelopment
Facilities
Capital Equipment
The basic governmental fund financial statements can be found on pages 4 through 8 of this
report.
Proprietary Funds
When the City charges customers for the services it provides, whether to outside customers or
other units of the City, these services are generally accounted for and reported in the proprietary
funds. Proprietary funds are reported in the same way that all activities are reported in the
Statement of Net Position and Statement of Activities. They include enterprise funds, which are
the same (with more detail) as the business-type activities that are reported in the governmentwide statements, and internal service funds, which report activities that provide services and
supplies for the City’s other programs and activities.
Enterprise Funds
Enterprise funds are used to account for operations (a) that are financed and operated in a
manner similar to private business enterprises, where the intent of the governing body is that the
costs (expenses, including depreciation) of providing goods or services to the general public on
a continuing basis be financed or recovered primarily through user charges; or (b) where the
governing body has decided that periodic determination of revenues earned, expenses incurred
and/or net income is appropriate for capital maintenance, public policy, management control and
accountability or other purposes. In 2012, the City of Neenah used enterprise funds to account
for:
Water Utility (major fund)
Sewerage Disposal Utility (major fund)
Stormwater Utility (major fund)
Parking Utility
Internal Service Funds
Internal service funds are used to account for the financing of goods or services provided by one
department or agency to other departments or agencies of the City or to other governmental
units on a cost-reimbursement basis. In 2012, the City of Neenah used internal service funds to
account for:
Fleet Management
Benefit Accrual
Insurance
Information Systems
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(Unaudited)
The basic proprietary fund financial statements can be found on pages 9 through 13 of this
report.
Fiduciary Funds
Agency Funds
Agency funds are used to account for assets held by the City in a trustee capacity or as an
agent for individuals, private organizations, other governments and/or other funds. In 2012, the
City of Neenah used agency funds to account for:
Advance Tax Collections
Other
The basic fiduciary fund financial statement can be found on page 14 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As stated earlier, net position (assets less liabilities) total $133,854,330 for the City of Neenah
as of December 31, 2012. This includes total assets of $259,500,120 and total liabilities of
$125,645,790. While the usefulness of these numbers in determining the financial position of the
City continues to be somewhat debatable, it is useful to examine the specifics of the City’s total
net position.
Capital assets (land, buildings, building improvements, improvements other than buildings,
machinery and equipment, infrastructure, and construction in progress) account for
approximately 80% of the City’s total assets. This includes the City’s investment in roads,
sewers and bridges. Non-current liabilities, most of which were incurred to finance capital
assets, account for approximately 80% of all City liabilities. The following table provides an
analysis of the City’s net position outlook:
CITY OF NEENAH NET POSITION
Governmental
Activities
Current and other assets
Capital assets
Total assets
Long-term liabilities
Other liabilities
Total liabilities
$
Net position:
Net investment in
capital assets
Restricted
Unrestricted (deficit)
Total net position
$
2012
37,055,620 $
129,918,825
166,974,445
(66,118,339)
(23,046,267)
(89,164,606)
Business-Type
Activities
2011
34,363,788 $
127,936,162
162,299,950
(64,443,559)
(21,317,326)
(85,760,885)
2012
13,577,243 $
78,948,432
92,525,675
(33,442,033)
(3,039,151)
(36,481,184)
2011
13,046,080 $
78,975,046
92,021,126
(35,775,587)
(2,971,209)
(38,746,796)
Totals
2012
2011
50,632,863 $
47,409,868
208,867,257
206,911,208
259,500,120
254,321,076
(99,560,372)
(100,219,146)
(26,085,418)
(24,288,535)
(125,645,790)
(124,507,681)
81,646,601
4,075,167
81,655,241
3,209,959
44,548,856
1,431,753
42,668,356
1,314,505
124,804,227
5,506,920
122,841,235
4,524,464
(7,911,929)
(8,326,135)
10,063,882
9,291,469
3,543,183
2,447,696
77,809,839 $
76,539,065 $
56,044,491 $
- xviii -
53,274,330 $
133,854,330 $
129,813,395
(Unaudited)
The total net position section includes an adjustment of $1,391,230 for capital assets owned by
the business-type activities column, but financed by debt of the governmental activities column
(see Note I (D) on page 32).
Net position for governmental activities increased $1,270,774 from 2011, while net position for
business-type activities rose by $2,770,161. The increase in governmental activity net position is
due to an increase in both current and capital assets more than offsetting increases in both
current and non-current liabilities, while business-type activity net position increased primarily
due to an increase in current and other assets and a decrease in long-term liabilities.
The following table provides a more detailed analysis of the City’s change in net position:
CITY OF NEENAH CHANGES IN NET POSITION
Governmental Activities
Business-Type Activities
2012
2011
2012
2011
2012
2011
3,337,909 $
3,072,815 $
14,754,020 $
14,514,163 $
18,091,929 $
17,586,978
721,953
1,773,195
900,733
5,341,773
(245,447)
238,508
721,953
1,527,748
900,733
5,580,281
18,706,015
32,021
4,775,325
29,346,418
18,160,266
40,008
4,878,187
32,393,782
71,800
40,095
14,620,468
40,000
73,780
14,866,451
18,706,015
103,821
4,815,420
43,966,886
18,160,266
80,008
4,951,967
47,260,233
Expenses
General government
Public safety
Public works
Recycling
Parks, recreation and education
Health and welfare
Community development
Interest and fiscal charges
Water utility
Sewer disposal utility
Stormwater utility
Other proprietary funds
Total expenses
2,362,306
10,970,949
7,491,434
477,741
4,312,726
365,020
1,622,521
2,768,349
30,371,046
2,365,644
11,334,171
6,444,805
536,598
4,712,367
592,293
1,720,365
2,575,218
30,281,461
5,729,773
2,567,948
1,038,419
218,765
9,554,905
5,515,427
3,062,907
1,072,497
224,971
9,875,802
2,362,306
10,970,949
7,491,434
477,741
4,312,726
365,020
1,622,521
2,768,349
5,729,773
2,567,948
1,038,419
218,765
39,925,951
2,365,644
11,334,171
6,444,805
536,598
4,712,367
592,293
1,720,365
2,575,218
5,515,427
3,062,907
1,072,497
224,971
40,157,263
Increase (decrease) in net position
before transfers
Transfer
(1,024,628)
2,295,402
2,112,321
2,198,060
5,065,563
(2,295,402)
4,990,649
(2,198,060)
4,040,935
-
7,102,970
-
Change in net position
Net position-beginning
1,270,774
76,539,065
4,310,381
72,228,684
2,770,161
53,274,330
2,792,589
50,481,741
4,040,935
129,813,395
7,102,970
122,710,425
77,809,839 $
76,539,065 $
56,044,491 $
53,274,330 $
133,854,330 $
129,813,395
Revenues
Program revenues
Charges for services
Operating grants and
Contributions
Capital grants and contributions
General revenues
Property taxes
Other taxes
Other general revenues
Total revenues
Net position-end of year
$
$
- xix -
Totals
(Unaudited)
Property taxes in 2012 accounted for 63.74% of total governmental activities revenue, while
charges for services accounted for virtually all of revenues generated by business-type
activities. Expenses for public safety and public works were 60.79% of all governmental
activities expenses. Business-type activities expenses were mostly due to the operations of the
Water Utility (59.97%) and Sewerage Disposal Utility (26.88%). The following graphs provide a
breakdown of all governmental activities revenues and expenses:
REVENUES
Other Charges for Capital
services grants and
general
11%
revenues
contributions
16%
6%
Operating
grants and
contributions
3%
Property
taxes
64%
EXPENSES
Community
development
5%
Interest and
fiscal charges
9%
General
government
8%
Health and
welfare
1%
Parks,
recreation and
education
14%
Public safety
36%
Recycling
2%
Public works
25%
- xx -
(Unaudited)
INDIVIDUAL FUND FINANCIAL ANALYSIS
Governmental Funds
The City of Neenah ended 2012 with a fund balance of $8,799,287 in its governmental funds,
compared to $7,673,194 as of December 31, 2011. The majority of this increase is due to a net
increase in the Debt Service Fund fund balance, an increase caused by the City decision to
continue to levy $900,000 in 2012 for TIF-related Debt Service, funding that had previously been
used to fund non-TIF debt service payments. That amount, which remains in the Debt Service
Fund fund balance, is being used to fund temporary advances to offset cash deficits in TIF #6 and
TIF # 8 Special Revenue Funds, deficits created by debt services payments in excess of tax
increment received.
General Fund
The City’s General Fund realized a fund balance increase of $238,933 from 2012 operations, with
expenditure savings generated mainly by an unbudgeted reduction in Wisconsin Retirement
System (WRS) contributions for public safety employees and the mid-year transfer of Health
Department Services to Winnebago County. The year-end revenue budget had negative
variances in Charges for Services and Investment Income offset by positive variances in Licenses
and Permits and Interfund Transfers.
Fund balance at year end totaled $3,952,958, of which $3,621,301 is unassigned. This
unassigned fund balance is 15.94% of the City’s 2012 General Fund expenditures/other financing
uses of $22,713,130. Municipal credit analysts, Standard and Poor’s and Moody’s Investors
Service, considers the fund balance in the general fund an important measure of a city’s financial
condition. The fund balance of 15.94% of expenditures/other financing uses is considered a
moderately strong fund balance by S&P and Moody’s, and helps contribute to the City of
Neenah’s very strong AA and Aa2 bond ratings, respectively.
Special Revenue-TIF District No. 8
The Special Revenue-TIF District No. 8 fund accounts for the accumulation of TIF tax increment
generated by development in the district, and the corresponding transfer of funds to the City’s
general and debt service funds for administrative and debt service related costs. The net
decrease in fund balance during the year was $381,465, which resulted in a fund balance deficit
at year end of $4,335,723. The primary reason for the decrease in the fund balance is the deficit
in tax increment when compared to transfers for debt service.
Debt Service
The Debt Service Fund accounts for the accumulation of resources for, and the payment of,
general long-term debt principal, interest and related costs. As stated above, the net increase in
fund balance during the year of $1,596,882 was mainly caused by the City decision to continue to
levy $900,000 in 2012 for TIF-related Debt Service, funding that had previously been used to fund
- xxi -
(Unaudited)
non-TIF debt service payments. That amount, which remains in the Debt Service Fund fund
balance, is being used to fund temporary advances to offset cash deficits in TIF #6 and TIF # 8
Special Revenue Funds, deficits created by debt services payments in excess of tax increment
received. In addition, funds related to a 2012 G.O. Current Refunding remain in the Debt Service
Fund fund balance at year end to fund March 1, 2013 debt service payments.
Capital Projects – Public Infrastructure
This fund accounts for resources to be used for the acquisition, construction or maintenance of
streets, sewers, pedestrian routes and traffic signals. The use of previously unspent borrowed
funds to fund the completion of various projects carried over from 2011 led to a decrease in fund
balance of $264,011, which resulted in a fund balance at year end of $4,123,309.
Capital Projects – TIF District No. 7
This fund accounts for resources to be used to fund redevelopment projects within the City’s
Westside Business Corridor. The use of previously unspent borrowed funds to fund the
completion of various projects carried over from 2011 led to a decrease in fund balance of
$88,557. This resulted in a fund balance at year end of $1,007,996.
This fund accounts for resources to be used to fund redevelopment projects within the City’s Doty
Island and Riverwalk Zone improvement districts. There was a net increase in fund balance of
$443,823. The majority of this increase is due to additional financing for ongoing projects. This
resulted in a positive year-end balance of $467,336.
Proprietary Funds
Water Utility
The water utility’s operating income was $4,290,419 in 2012, with net income before transfers
and contributions of $3,446,104. These positive operating results lead to an increase in net
position of $2,028,683. The water utility’s 2012 rate of return is 8.45%, compared to 8.33% in
2011. Most of these positive operating outcomes were the result of a water rate increase that
was fully implemented in 2011.
Sewerage Disposal Utility
The sewerage disposal utility realized an operating gain, before transfers, of $1,104,030. Overall
net position increased by $321,564. A low rate structure was the main contributing factor to the
operating loss and decrease in net position in years prior to 2011. The City approved a new rate
structure in late 2008 for implementation in 2009-2011, resulting in the continuation of stable
operating results for 2012.
- xxii -
(Unaudited)
Storm Water Utility
The City formed a new storm water utility in 2003. In 2012, the utility had operating income,
before transfers, of $647,814 and an increase in net position of $415,732. A rate increase in
2009, coupled with stable operating expenses, continue to be the driving force behind ongoing
positive operating results.
BUDGETARY ANALYSIS
The City’s 2012 General Fund adopted expenditure budget totaled $23,100,100. The Common
Council approved departmental 2012 carryover requests of 2011 unspent operating funds,
thereby increasing the budget by $21,266 to an amended expenditure budget of $23,121,366.
The City’s final General Fund revenue budget totaled $22,921,300. Along with approved
carryovers, the 2012 revenue budget also anticipated the use of $178,800 in unassigned
reserves. With carryover funds, the total of applied reserves budgeted is $200,066, leading to a
final total of $23,121,366 for all funding sources to fund the 2012 budget.
The City ended 2012 with an unassigned fund balance increase of $330,586 from 2011, and a
total fund balance increase of $238,933. As stated above, the City’s 2012 budget anticipated a
reduction of $200,066 in total fund balance, resulting in a net positive variance of $438,999.
Actual general fund revenue was $30,763 (.13%) more than budget. The City experienced a
positive variance in Intergovernmental Revenues ($21,534), Licenses and Permits ($134,233)
and Transfers from Other Funds ($116,617), while Taxes ($13,787), Charges for Services
($66,272) and Investment Income/Miscellaneous ($149,004) experienced negative variances.
General fund expenditures finished 2012 with a favorable budget variance of $408,236 (1.8%).
Almost all operating facets experienced positive variances, including General Government
(2.3%), Public Safety (1.7%), Culture and Recreation (0.5%), Health and Welfare (21.6%),
Community Development (5.2%) and Other (6.6%). Public Works (0.8%) was the only function
with an unfavorable budget variance. Statements highlighting budget versus actual variances
can be found on pages 76 through 80 of this report.
In summary, the City’s combined positive revenue variance of $30,763 and positive expenditure
variance of $408,236 led to a 2012 General Fund operating gain of $438,999. This number, when
combined with the 2012 budgeted use of reserves of $200,066, equals the total increase in fund
balance of $238,933 for fiscal year 2012.
- xxiii -
(Unaudited)
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of 2012, the City of Neenah had a net investment in capital assets of $208,867,257, for
all governmental and business-type activities of the City. This is an increase of $1,956,049 or
.95%, from the end of 2011.
Major capital asset additions (before depreciation) that took place in the City’s governmental
activities include net additions to Land and Land Improvements ($124,231), Improvements
($1,684,162), Buildings ($213,255), Equipment, Furniture and Fixtures ($742,330), Streets
($1,315,381), and Sidewalks ($54,225). Other than depreciation, there were no significant capital
asset value reductions in any categories.
In the City’s business-type activities, the Water Utility experienced an increase (before
accumulated depreciation) in Transmission and Distribution ($390,272). The City’s Sewerage
Disposal Utility saw a net increase in Collection System ($1,102,375) and Collection System
Pumping ($52,795), while the Storm Water Utility also had a net addition in Collection System
($271,767). The City’s Parking Utility saw no major reduction in any categories in 2012. The
following table provides a summary of the City’s change in capital assets.
CITY OF NEENAH CAPITAL ASSETS
Land
Detention Ponds
Right-of-way
Land Improvements
Depreciable Capital Assets
Construction in progress
Total capital assets
Less accumulated depreciation
Capital assets net of depreciation
Business-Type Activities
2012
2012
2011
2011
Totals
2012
2011
$ 12,643,486
13,112,194
10,255,502
144,552,981
12,035
180,576,198
$ 12,588,486
13,112,194
10,186,271
140,477,929
56,521
176,421,401
$ 280,447
3,400,156
101,192,651
104,873,254
$ 280,447
3,400,156
99,393,921
97,951
103,172,475
$ 12,923,933
3,400,156
13,112,194
10,255,502
245,745,632
12,035
285,449,452
$ 12,868,933
3,400,156
13,112,194
10,186,271
239,871,850
154,472
279,593,876
(50,657,373)
(48,485,239)
(25,924,822)
(24,197,429)
(76,582,195)
(72,682,668)
$129,918,825
$127,936,162
$78,948,432
$78,975,046
$208,867,257
$206,911,208
More detail regarding the City’s capital assets can be found in Note IV (D) on pages 43 to 46 of
this report.
Outstanding Debt
The City’s outstanding general obligation debt (backed by the full faith and credit of City
taxpayers) as of December 31, 2012 totaled $47,454,944. The City also had revenue debt
outstanding of $27,574,677 backed by revenues generated from the Neenah Water Utility
($27,141,137) and Storm Water Utility ($433,540). In addition, the City is the lessee for Capital
Leases totaling $22,425,000 owed to the City’s Community Development Authority (CDA).
- xxiv -
(Unaudited)
In 2012, the City issued $3,955,000 in General Obligation Promissory Notes. Notes are debt
instruments in which the debt principal will be paid off in ten years or less. Proceeds from the
notes were authorized for use in the following manner:
City Capital Improvements Projects
Sanitary Sewer Utility
Storm Water Utility
$2,565,000
1,125,000
265,000
$3,955,000
The City also issued $1,635,000 in General Obligation Bonds. Bonds are debt instruments in
which the debt principal will be paid off in 10 to 20 years. Proceeds from the bonds were
authorized for use in the following manner:
TIF District #5 Improvements
$ 360,000
10,000
1,100,000
165,000
$1,635,000
In addition, the City issued $4,410,000 in G.O. Refunding Bonds and $1,350,000 in Water Utility
Revenue Refunding Bonds.
City outstanding G.O. notes and bonds issued prior to 2012 carried an Aa2 bond rating from
municipal rating agency, Moody’s Investors Service as of year end. The Aa2 rating is in the top
20% of all ratings nationwide. In 2009 and 2010, the City retained the services of Standard and
Poor’s to rate its issues. The issues were rated AA/stable, comparable to the City’s historic
Moody’s rating. Moody’s current rating for all outstanding water utility revenue debt is A1.
Wisconsin state statutes limit the amount of general obligation debt a governmental entity may
issue to 5% of its total equalized valuation. Based upon the City’s 2012 equalized value of
$1,840,562,900, the City’s statutory debt limit totaled $92,028,145. The City was at 51.57% of its
legal debt limit as of December 31, 2012.
The following table provides a summary of all outstanding debt and lease obligations:
CITY OF NEENAH OUTSTANDING DEBT
Governmental
Activities
2012
General obligation bonds and notes $
Capital Leases
Revenue bonds
Total
$
39,273,910 $
22,425,000
61,698,910 $
Business-Type
Activities
2011
37,777,257
22,450,000
60,227,257
$
$
- xxv -
Totals
2012
2011
2012
2011
8,181,034 $
27,574,677
35,755,711 $
7,525,650 $
30,379,081
37,904,731
$
47,454,944 $ 45,302,907
22,425,000
22,450,000
27,574,677
30,379,081
97,454,621 $ 98,131,988
(Unaudited)
More detail regarding the City’s outstanding debt can be found in Note IV (F) on pages 50
through 56 of this report.
ECONOMIC FACTORS, 2012 TAX RATES AND THE 2013 BUDGET
As we enter 2013, the City of Neenah continues to face the obvious challenges being
experienced across the nation. Those challenges continue to be divided into two basic
categories: the macro economic problems of job growth and stagnant property values as well as
specific issues related to the State of Wisconsin. Fortunately, the City has been proactively
preparing itself in recent years to confront these issues head on, and believes it is well positioned
to meet these and any future challenges as they arise.
On the larger economic issues, City demographic statistics such as unemployment, City and
resident per return adjusted gross income and total per capita income continue to perform well
when compared to both state and national averages. The City did experience reasonably strong
housing development in 2012, while commercial and industrial development continued to grow at
a slow to moderate pace.
In an effort that has gained nationwide attention, the State’s Governor and Legislature
implemented legislation in June 2011 to confront an estimated $3.6 billion bi-annual budget
deficit. The budget included large reductions in state shared revenue and transportation aids.
The proposal also included reforms to public employee union collective bargaining to help offset
the reductions in state aid. This included mandating employee contributions to pension and
health insurance plans for government employees. Savings from the State collective bargaining
reforms for non-public safety employees have been instrumental in offsetting state revenue
reductions. In addition, subsequent labor negotiations with public safety employees will generate
additional savings affecting budget years 2012 to 2014.
Prior to these reforms, the City initiated a wage freeze for all non-represented employees for
2009 and 2010, and union concessions were negotiated to reduce contractual wage increases for
2009 and 2010. Other operational cost savings initiatives were also explored and instituted for
2009 and beyond. In addition, the City passed an ordinance to provide a reduced level of
“second-tier” wage and benefit levels for the majority of new employees beginning in 2011.
In summary, State collective bargaining reforms and City labor and budget reforms have provided
the City the opportunity to reduce and stabilize baseline wage and benefit levels moving forward.
This in turn should provide the City the ability to counteract ongoing challenges without adversely
affecting core services, while remaining committed to solutions that are based on sound financial
principles that are sustainable into the future.
The City’s 2013 budget provided for an operating tax levy decrease to .87% (before TIF), with a
1.75% increase after TIF. This translated into an assessed tax rate (after TIF) for City services of
$9.09 per $1,000 of assessed valuation (a 1.26% increase). The corresponding equalized tax rate
is $8.68 per $1,000 of equalized value (a 5.97% increase).
- xxvi -
(Unaudited)
In the City’s enterprise funds, the City’s Water Utility continues on sound financial footing after
implementing a 32% rate increase in January 2011. The Utility experienced 3.9% growth in sales
of water in 2012. The Utility’s rate of return for 2012 was 8.45%.
Sanitary Sewer Utility rates were increased on the average residential user by $3.50 per month
effective January 1, 2009 and $2.50 per month effective January 1, 2010. Another 20% increase
was implemented in January 2011. Rates remained unchanged in 2012, while 2013 saw an
increase of 25%. The 2013 increase was primarily to fund the City’s share of a $23 million
improvement project to the Neenah/Menasha Wastewater Treatment Plant. Despite these
increases, rates continue to be among the lowest in the state. After a rate increase on January 1,
2009 (the first since the utility was formed in 2003), rates for the City’s Stormwater Utility
remained unchanged from 2010 to 2013. The Storm Water Utility charges all properties in the
City a fee based upon the approximate impervious surface of the property, which contributes to
storm water runoff.
REQUESTS FOR FINANCIAL INFORMATION
This financial report is designed to provide a general overview of the City of Neenah’s finances
for anyone who would have an interest. Additional information regarding the City’s finances or
questions concerning any of the information found in this report should be addressed to the City
of Neenah Director of Finance, 211 Walnut Street, P.O. Box 426, Neenah, WI 54957-0426. Other
information related to the City can be accessed on the City’s website at www.ci.neenah.wi.us.
- xxvii -
CITY OF NEENAH
STATEMENT OF NET POSITION
As of December 31, 2012
Primary Government
Businesstype
Activities
Governmental
Activities
ASSETS
Cash and investments
Receivables (net of allowance for uncollectibles)
Taxes
Delinquent personal property
Special assessments
Loans
Accrued interest
Accounts
Unbilled revenues
Other
Internal balances
Due from component unit
Due from other governments
Lease receivable from primary government
Inventories
Prepaid items
Restricted Assets
Accrued interest
Deposit with risk pool
Other assets
Assets held for resale
Capital Assets
Land
Detention ponds
Right-of-way
g
y
Land improvements
Depreciable capital assets, net
$
Total Assets
LIABILITIES
Accounts payable
Other accrued liabilities
Claims payable
Due to other governmental units
Due to primary government
Other liabilities
Unearned revenue
Liabilities Payable From Restricted Assets
General obligation debt refunded
Current maturities of revenue debt
Accrued interest
Noncurrent Liabilities
Due within one year
Due in more than one year
Total Liabilities
NET POSITION
Net investment in capital assets
Restricted for
Debt service
Loans
Grant programs
Library
Cemetery
TOTAL NET POSITION
8,508,421
$
7,417,425
$ 15,925,846
Component
Units
$
61,332
20,135,214
51,765
938,339
688,770
20,876
174,023
671,627
1,081,016
2,188,786
39,407
198,536
243,521
50,000
20,989
1,568,100
1,584,942
469,847
(1,081,016)
125,885
3,273
20,185,214
51,765
959,328
688,770
20,876
1,742,123
1,584,942
1,141,474
2,188,786
39,407
324,421
246,794
96,853
86,078
22,425,000
-
1,117,155
225,164
773,000
2,685,380
439
731,979
-
2,685,380
439
1,117,155
957,143
773,000
2,188,786
-
12,643,486
13,112,194
10,255,502
12,035
93,895,608
166,974,445
280,447
3,400,156
75,267,829
92,525,675
12,923,933
3,400,156
13,112,194
10,255,502
12,035
169,163,437
259,500,120
15,849
24,873,898
1,154,610
986,061
514,322
211
501,480
19,889,583
168,378
119,989
59,125
58,063
1,322,988
1,106,050
514,322
211
560,605
19,947,646
7,916
211,638
2,188,786
-
-
228,600
2,299,694
105,302
228,600
2,299,694
105,302
-
5,200,812
60,917,527
89,164,606
1,092,438
32,349,595
36,481,184
6,293,250
93,267,122
125,645,790
25,000
22,400,000
24,833,340
81,646,601
44,548,856
124,804,227
15,849
792,436
969,910
150,460
957,729
1,204,632
(7,911,929)
1,431,753
10,063,882
2,224,189
969,910
150,460
957,729
1,204,632
3,543,183
24,709
$ 56,044,491
$ 133,854,330
$ 77,809,839
See accompanying notes to financial statements.
-1-
Totals
$
40,558
CITY OF NEENAH
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2012
Program Revenues
Charges for
Services
Expenses
Functions/Programs
Primary Government
General government
Public safety
Public works
Recycling
Parks, recreation, and education
Health and welfare
Total Governmental Activities
$
Business-type Activities
Water utility
Sewerage disposal utility
Stormwater utility
Parking utility
Total Business-type Activities
2,362,306
10,970,949
7,491,434
477,741
4,312,726
365,020
1,622,521
2,768,349
30,371,046
$
5,729,773
2,567,948
1,038,419
218,765
9,554,905
Total Primary Government
Component Units - Business-type Activities
Business Improvement District
Community Development Authority
Total Component Units
739,512
339,039
119,768
341,024
1,314,190
166,314
318,062
3,337,909
$
Operating
Capital
Grants and
Contributions
Grants and
Contributions
131,191
101,756
29,603
459,403
721,953
9,143,821
3,669,835
1,680,337
260,027
14,754,020
$
-
385,841
546,629
840,725
1,773,195
(287,447)
39,800
2,200
(245,447)
$
39,925,951
$
18,091,929
$
721,953
$
1,527,748
$
126,580
1,033,583
$
-
$
-
$
-
$
1,160,163
$
-
$
-
$
-
General Revenues
Taxes
Property taxes, levied for general purposes
Property taxes, levied for debt service
Property taxes, levied for TIF purposes
Property taxes, levied for recycling purposes
Other taxes
Intergovernmental revenues not restricted to
specific programs
Investment income
Miscellaneous
Transfers
Total General Revenues and Transfers
Change in net position
NET POSITION - Beginning
NET POSITION - Ending
-2-
Net (Expense) Revenue and
Changes in Net Position
Primary Government
Governmental
Activities
$
Business-type
Activities
(1,622,794) $
(10,500,719)
(6,985,825)
(136,717)
(2,350,151)
(169,103)
(4,331)
(2,768,349)
(24,537,989)
(24,537,989)
$
-
Component
Units
Totals
$
(1,622,794) $
(10,500,719)
(6,985,825)
(136,717)
(2,350,151)
(169,103)
(4,331)
(2,768,349)
(24,537,989)
-
3,126,601
1,141,687
644,118
41,262
4,953,668
3,126,601
1,141,687
644,118
41,262
4,953,668
-
4,953,668
(19,584,321)
-
-
-
-
(126,580)
(1,033,583)
12,214,702
3,210,000
3,184,013
97,300
32,021
71,800
12,214,702
3,210,000
3,184,013
97,300
103,821
124,854
3,605,254
405,024
765,047
2,295,402
31,566
8,529
(2,295,402)
3,605,254
436,590
773,576
-
1,033,618
-
25,808,763
(2,183,507)
23,625,256
1,158,472
1,270,774
2,770,161
4,040,935
76,539,065
53,274,330
129,813,395
56,044,491
$ 133,854,330
77,809,839
$
(1,691)
42,249
$
40,558
-3-
CITY OF NEENAH
BALANCE SHEET - GOVERNMENTAL FUNDS
General
Special Revenue TIF District
No. 8
Capital Projects Public
Infrastructure
Debt Service
ASSETS
Receivables
Taxes
Delinquent personal property
Special assessments
Loans
Accrued interest
Other
Due from other funds
Due from component unit
Due from other governments
Inventories
Prepaid items
Advances to other funds
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Due to other funds
Other liabilities
Deferred revenue
Advances from other funds
Total Liabilities
$
$
12,245,696
51,765
20,876
330,311
1,097,696
39,407
886
161,216
-
1,878
$
1,387,815
82,969
-
598,531
$
3,459,943
321,317
6,650
900,000
18,079
617,022
108,139
62,120
4,197,383
$
16,941,992
$
1,472,662
$
5,286,441
$
5,002,743
$
273,676
443,489
211
16,680
12,254,978
12,989,034
$
1,387,815
4,420,570
5,808,385
$
34
3,531,317
3,531,351
$
448,799
430,635
879,434
Fund Balances
Nonspendable:
Delinquent personal property taxes
Inventories
Prepaid items
Non-current receivables/advances
Restricted
Committed
Assigned
Unassigned (deficit)
Total Fund Balances
TOTAL LIABILITIES AND FUND BALANCES
2,994,139
51,765
886
161,216
117,790
3,621,301
3,952,958
$
16,941,992
(4,335,723)
(4,335,723)
$
1,472,662
1,755,090
1,755,090
$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental funds are not financial resources and, therefore, are not reported
in the funds.
Assets held for resale are not reported in the funds.
Some receivables that are not currently available are reported as deferred revenue in the fund financial
statements but are recognized as revenue when earned in the government-wide statements. See Note IV. B.
Internal service funds are reported in the statement of net position as governmental funds.
Some liabilities, including long-term debt, are not due and payable in the current period and, therefore,
are not reported in the funds. See Note II.A.
NET POSITION OF GOVERNMENTAL ACTIVITIES
-4-
5,286,441
4,197,383
(74,074)
4,123,309
$
5,002,743
Capital Projects TIF District
No. 7
$
24,214
No. 8
$
988,782
11
Other
Governmental
Funds
$
2,188,786
-
4,397,056
Total
Governmental
Funds
$
3,041,760
688,770
143,558
7,950
415,631
8,033,908
20,135,214
51,765
938,339
688,770
20,876
671,627
1,159,816
2,188,786
39,407
886
169,166
6,501,796
$
1,012,996
$
2,188,797
$
8,694,725
$
40,600,356
$
5,000
5,000
$
80,561
1,640,900
1,721,461
$
119,883
107,720
70,845
3,041,670
3,526,286
6,866,404
$
927,953
443,489
211
124,400
501,480
20,215,780
9,587,756
31,801,069
1,007,996
1,007,996
$
1,012,996
467,336
467,336
$
2,188,797
7,950
198,531
3,585,339
998,859
658,786
(3,621,144)
1,828,321
$
51,765
886
169,166
4,395,914
6,815,761
998,859
776,576
(4,409,640)
8,799,287
8,694,725
129,918,825
773,000
343,846
2,338,478
(64,363,597)
$
77,809,839
-5-
CITY OF NEENAH
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Special Revenue TIF
District No. 8
General
REVENUES
Taxes
Intergovernmental
Licenses and permits
Fines, forfeitures and penalties
Special assessments
Contributions
Investment income and miscellaneous
Total Revenues
$
EXPENDITURES
Current
General government
Public safety
Public works
Recycling
Health and welfare
Other
Capital Outlay
Debt Service
Principal retirement
Total Expenditures
Excess (deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Long-term debt issued
Refunding bonds issued
Payment to fiscal agent for advance refunding
Premium on debt
Sale of city property
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
FUND BALANCES (DEFICIT) - Beginning
FUND BALANCES (DEFICIT) - ENDING
$
12,246,613
3,738,704
381,153
130,272
2,501,628
665,296
19,663,666
$
1,322,221
83,718
34,217
1,440,156
Capital Projects Public
Infrastructure
Debt Service
$
3,210,000
105,183
391,991
2,590
3,709,764
$
59,617
59,617
2,076,328
10,837,696
4,078,836
3,725,566
351,130
1,341,759
289,815
-
8,629
-
-
1,823,628
22,701,130
25,000
1,060,277
1,093,906
3,809,466
1,459,800
5,269,266
1,823,628
(3,037,464)
346,250
(1,559,502)
(1,764,011)
2,820
3,285,577
(12,000)
3,276,397
3,000
40,255
(770,970)
(727,715)
19,640
4,186,092
(3,485,965)
16,890
2,419,727
3,156,384
1,500,000
1,500,000
238,933
(381,465)
1,596,882
3,714,025
(3,954,258)
158,208
3,952,958
-6-
$
(4,335,723) $
1,755,090
(264,011)
4,387,320
$
4,123,309
No. 7
$
No. 8
-
$
$
1,814,408
1,131,656
365,507
363,787
3,675,358
Total
Governmental
Funds
$
18,593,242
5,739,668
381,153
130,272
391,991
2,501,628
365,507
1,238,270
29,341,731
1,170,757
511,347
83,439
519,326
79,163
35,419
262,250
2,383,137
2,076,328
10,921,135
4,078,836
519,326
3,804,729
386,549
1,612,638
289,815
5,888,869
1,170,757
511,347
51,910
3,414,644
3,834,466
2,571,987
35,984,678
(1,170,757)
281,823
260,714
1,082,200
1,082,200
162,000
162,000
1,433,160
56,477
13,810
96,868
(2,280,541)
(680,226)
443,823
(419,512)
(88,557)
1,096,553
$
680,407
112,763
793,170
Other
Governmental
Funds
1,007,996
23,513
$
467,336
(6,642,947)
4,200,000
4,186,092
(3,485,965)
113,622
16,630
5,802,172
(3,063,511)
7,769,040
1,126,093
2,247,833
$
1,828,321
7,673,194
$
8,799,287
-7-
CITY OF NEENAH
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
Net change in fund balances - total governmental funds
$
1,126,093
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of net position the cost of these assets is capitalized and they are
depreciated over their estimated useful lives with depreciation expense reported
in the statement of activities.
Capital outlay is reported as an expenditure in the fund financial statements
but is capitalized in the government-wide financial statements
Some items are reported as capital outlay but are not capitalized
Some items reported as capital outlay in the fund statements were capitalized by the
business-type activities
Depreciation is reported in the government-wide statements
Net book value of assets retired
Capital contributions reported in the government-wide statements (infrastructure)
5,888,869
(333,932)
(90,759)
(3,702,289)
(70,226)
291,000
Receivables not currently available are reported as deferred revenue in the fund financial
statements but are recognized as revenue when earned in the government-wide
financial statements.
(8,148)
Debt and leases issued provide current financial resources to governmental funds,
but issuing these obligations increases long-term liabilities in the statement of net
position. Repayment of principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net position. This is the amount
by which issues ($8,386,092 for general obligation debt) exceeded payments ($6,889,439
for principal of general obligation debt and $25,000 for principal of capital lease)
(1,471,653)
Governmental funds report the effect of issuance costs, premiums, discounts, and similar
items when debt is first issued, whereas these amounts are deferred and amortized in the
statement of activities.
(8,290)
Some expenses in the statement of activities do not require the use of
current financial resources and, therefore, are not reported as expenditures
in the governmental funds.
Compensated absences
Accrued interest on debt
Other post-employment benefits
3,184
104,269
(35,370)
Internal service funds are used by management to charge the costs of self insurance
and central equipment agency costs to individual funds. The decrease in net
position of the internal service funds is reported with governmental activities.
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES
-8-
(421,974)
$
1,270,774
CITY OF NEENAH
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
Business-type Activities - Enterprise Funds
Sewerage
Disposal
Utility
Water
Utility
ASSETS
Current Assets
Taxes receivable
Accounts receivable
Unbilled revenues
Other accounts receivable
Inventories
Prepaid items
Other assets
Restricted Assets
Bond redemption account
Total Current Assets
Non-Current Assets
Restricted Assets
Bond depreciation account
Bond reserve account
Interest receivable
Capital Assets
Land
Detention ponds
Plant in service
Accumulated depreciation
Other Assets
Special assessments
Deferred loss on retirement
Unamortized debt issuance costs
Total Non-Current Assets
Total Assets
$ 4,283,423
832,795
1,012,295
1,349
123,958
1,273
569
$
Stormwater
Utility
575,267
569,168
431,845
468,498
16,346
-
$
Total
Enterprise
Funds
Nonmajor
(Parking Utility)
2,252,181
156,407
140,802
334
2,000
-
$
306,554
50,000
9,730
1,927
-
$
7,417,425
50,000
1,568,100
1,584,942
469,847
16,680
125,885
3,273
569
Governmental
Activities Internal Service
Funds
$
474,513
174,023
68,070
197,650
74,355
-
1,042,626
7,298,288
117,840
2,178,964
126,150
2,677,874
368,211
1,286,616
12,523,337
988,611
250,000
1,148,764
439
-
-
-
-
250,000
1,148,764
439
-
1,117,155
122,180
58,907,054
(11,973,382)
-
24,575,899
(8,337,543)
-
3,400,156
17,608,589
(5,526,986)
-
158,267
101,109
(86,911)
-
280,447
3,400,156
101,192,651
(25,924,822)
-
3,085,960
516,234
158,336
49,129,625
18,149
42,584
16,299,089
2,840
14,256
15,498,855
172,465
20,989
516,234
215,176
81,100,034
4,203,115
56,427,913
18,478,053
18,176,729
540,676
93,623,371
5,191,726
-9-
Sewerage
Disposal
Utility
Water
Utility
LIABILITIES
Current Liabilities
Accounts payable
Claims payable
Due to other funds
Other current liabilities
Unearned revenues
Current maturities of general
obligation debt
Current Liabilities Payable From
Restricted Assets
General obligation debt refunded
Current maturities of revenue debt
Accrued interest
Total Current Liabilities
$
91,892
1,097,696
59,125
20,761
$
41,603
49,840
-
Stormwater
Utility
$
21,693
41,474
-
Total
Enterprise
Funds
Nonmajor
(Parking Utility)
$
13,190
28,675
50,000
-
$
168,378
119,989
1,097,696
59,125
50,000
20,761
Governmental
Activities Internal Service
Funds
$
226,657
514,322
22,470
17,649
771,810
-
649,122
422,555
-
1,071,677
-
2,280,028
103,024
3,652,526
117,840
858,405
110,760
19,666
2,278
618,426
91,865
228,600
2,299,694
105,302
5,221,222
1,552,908
24,861,109
84,625
(144,652)
155,065
8,063
20,253
24,984,463
4,735,262
45,379
2,753
4,783,394
2,145,495
413,874
22,453
6,148
2,587,970
1,831
1,831
6,880,757
25,274,983
152,457
(144,652)
155,065
8,063
30,985
32,357,658
1,289,492
10,848
1,300,340
Total Liabilities
28,636,989
5,641,799
3,206,396
93,696
37,578,880
2,853,248
NET POSITION
Restricted for debt service
Unrestricted
21,281,842
1,190,041
5,319,041
10,733,337
117,840
1,985,077
12,361,212
123,872
2,485,249
172,465
274,515
44,548,856
1,431,753
10,063,882
2,338,478
$ 27,790,924
$ 12,836,254
$ 14,970,333
446,980
$ 56,044,491
General obligation debt payable
Revenue debt, less current maturities
Unamortized debt premium/discount
Unamortized loss on advance refunding
Unearned revenues
Total Noncurrent Liabilities
TOTAL NET POSITION
$
- 10 -
$
2,338,478
CITY OF NEENAH
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN
NET POSITION - PROPRIETARY FUNDS
Sewerage
Water
Disposal
Stormwater
Nonmajor
Utility
Utility
(Parking Utility)
Utility
OPERATING REVENUES
Fees, fines, and forfeitures
Miscellaneous operating income
Total Operating Revenues
$
OPERATING EXPENSES
Utility operations
Administration
Depreciation
Other
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
Investment income
Taxes
Miscellaneous non-operating income
Loss on sale of capital asset
Interest expense
Amortization of loss on advance refunding
Amortization of debt issuance costs
Amortization of premium
Total Nonoperating Revenues (Expenses)
Income (Loss) Before Contributions and Transfers
Capital contributions
Capital contributions - municipal
Transfers out
Transfers - tax equivalent
Change in Net Position
TOTAL NET POSITION - Beginning
TOTAL NET POSITION - ENDING
34,516
3,635,284
35
3,669,835
3,176,012
1,548,331
129,059
4,853,402
1,834,133
255,359
342,208
2,431,700
656,041
51,975
230,889
938,905
218,054
711
218,765
5,884,240
307,334
2,122,139
129,059
8,442,772
4,290,419
1,238,135
741,432
41,262
6,311,248
5,896
(100,502)
(1,742)
2,730
(93,618)
71,800
71,800
31,566
71,800
8,529
(1,908)
(1,085,540)
(15,104)
(23,866)
14,285
(1,000,238)
647,814
113,062
5,311,010
(69,474)
(108,880)
-
(245,447)
90,759
(1,288,465)
(1,097,696)
(352,500)
(421,974)
3,446,104
2,143
(137,514)
(5,138)
6,404
(134,105)
1,104,030
15,987
1,652,975
11,375
1,680,337
$
260,027
260,027
$
310,530
14,148,461
295,029
14,754,020
Governmental
Activities Internal
Service Fund
8,860,202
283,619
9,143,821
23,527
8,529
(1,908)
(847,524)
(15,104)
(16,986)
5,151
(844,315)
$
Total
Enterprise
Funds
$
9,093,867
9,093,867
9,163,341
9,163,341
(69,474)
-
(287,447)
(32,278)
(1,097,696)
39,800
18,251
(840,517)
-
2,200
72,508
(306,790)
-
2,028,683
321,564
415,732
4,182
2,770,161
25,762,241
12,514,690
14,554,601
442,798
53,274,330
2,760,452
$ 27,790,924
$ 12,836,254
$ 14,970,333
446,980
$ 56,044,491
$ 2,338,478
- 11 -
$
CITY OF NEENAH
STATEMENT OF CASH FLOWS PROPRIETARY FUNDS
Water
Utility
CASH FLOWS FROM OPERATING ACTIVITIES
Received from customers
Paid to suppliers for good and services
Paid to employees
Net Cash Provided (Used) by Operating Activities
Sewerage
Disposal
Utility
Stormwater
Utility
Nonmajor
(Parking Utility)
$ 9,250,396 $ 3,166,592 $ 1,687,521 $
(2,043,450) (1,951,195)
(514,940)
(136,523)
(212,321)
(1,075,193)
1,078,874
960,260
6,131,753
Total
Enterprise
Funds
Governmental
ActivitiesInternal
Service Funds
250,297 $ 14,354,806 $ 9,013,338
(215,723)
(4,725,308)
(8,868,540)
(1,424,037)
34,574
8,205,461
144,798
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Advances for cash deficits
Paid to municipality for tax equivalent
Transfers out
General property taxes
Net Cash Provided (Used) by Noncapital
Financing Activities
(1,028,921)
(32,278)
-
(840,517)
-
(306,790)
-
(108,880)
71,800
(1,028,921)
(1,288,465)
71,800
(1,061,199)
(840,517)
(306,790)
(37,080)
(2,245,586)
3,940
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Additions to capital assets
Capital contributed by customers
Proceeds from the sale of capital asset
Paid to developer
Special assessments received
Debt issuance costs and premiums
Principal paid on long-term debt
Interest paid on long-term debt
Net Cash Provided (Used) by Capital and
Related Financing Activities
(802,223)
4,110
42,500
(272,246)
1,350,000
222
(4,135,339)
(855,626)
(1,242,246)
10,359
1,240,421
(3,148)
(508,714)
(151,176)
(188,241)
2,200
373,487
1,837
(468,875)
(106,698)
(3,151)
-
(2,235,861)
6,310
42,500
(272,246)
10,359
2,963,908
(1,089)
(5,112,928)
(1,113,500)
-
(4,668,602)
(654,504)
(386,290)
(3,151)
(5,712,547)
-
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income
Investments sold and matured
Net Cash Provided (Used) by
Investing Activities
Net Increase (Decrease) in Cash and
Cash Equivalents
CASH AND CASH EQUIVALENTS Beginning
CASH AND CASH EQUIVALENTS ENDING
356,440
(352,500)
-
25,976
313,400
2,143
-
5,896
-
-
34,015
313,400
-
339,376
2,143
5,896
-
347,415
-
594,743
148,738
312,211
8,875,700
325,775
306,554
$ 9,470,443
741,328
(414,004)
5,351,123
$ 6,092,451
- 12 -
$
273,076
1,107,111
2,105,255
693,107
$ 2,378,331
(5,657)
$
$
474,513
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH FROM OPERATING ACTIVITIES
Operating income (loss)
Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided From Operating Activities
Non-operating income
Depreciation expense
Depreciation charged to sewer utility
Amortization of loss on retirement
Changes in Assets and Liabilities
Accounts receivable
Other accounts receivable
Inventories
Prepaid items
Accounts payable
Customer deposits
Claims payable
Unearned revenues
NET CASH FLOWS FROM OPERATING ACTIVITIES
RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
Restricted cash and investments
Bond redemption account
Bond depreciation account
Bond reserve account
Total Cash and Investments
Water
Utility
Sewerage
Disposal
Utility
$ 4,290,419
$ 1,238,135
8,529
1,548,331
113,288
129,059
342,208
-
230,889
-
(34,740)
(468,498)
(5)
1,330
444
6,851
333
(30,003)
9,563
1,195
56,184
2,350
(2,248)
498
5,877
(49,327)
6,050
8,063
10,928
3,752
$
$
741,432
41,262
$ 6,311,248
711
-
8,529
2,122,139
113,288
129,059
(9,730)
688
(695)
2,041
297
$
(69,474)
-
18,565
(466,148)
328
(1,560)
498
(23,491)
(49,327)
17,654
8,063
10,928
5,688
(124,342)
71,370
9,843
(45,554)
(42,808)
171,347
2,471
(5,087)
174,628
2,404
$ 1,078,874
$
960,260
$
34,574
$ 8,205,461
$
144,798
$ 4,283,423
$
575,267
$ 2,252,181
$
306,554
$ 7,417,425
$
474,513
117,840
693,107
126,150
2,378,331
306,554
1,286,616
250,000
1,148,764
10,102,805
-
-
-
$
693,107
$ 2,378,331
$
306,554
6,489 $
(25,800) $
- $
18,251
39,800
$
$
$
$
$
$
-
1,042,626
250,000
1,148,764
6,724,813
(632,362)
NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES
Developer and customer financed additions to utility plant
City financed additions to utility plant
Capital costs special assessed to customers
Nonmajor
(Parking Utility)
Governmental
ActivitiesInternal
Service Funds
$ 6,131,753
Less: Non-Cash Equivalents
CASH AND CASH EQUIVALENTS - END OF YEAR
Stormwater
Utility
Total
Enterprise
Funds
$ 6,092,451
$
$
$
- 13 -
72,508
-
474,513
(632,362)
-
$ 9,470,443
$
474,513
$
$
$
$
$
$
-
6,489
64,959
39,800
CITY OF NEENAH
STATEMENT OF ASSETS AND LIABILITIES
FIDUCIARY FUNDS
Agency
Funds
ASSETS
Property taxes receivable
Accounts receivable
Due from other governmental units
TOTAL ASSETS
LIABILITIES
Accounts payable
Accrued liabilities
Advances from other governmental units
TOTAL LIABILITIES
- 14 -
$
22,339,159
7,878,820
12,477
211,000
$
30,441,456
$
102,982
1,387,621
28,797,250
153,603
$
30,441,456
CITY OF NEENAH
STATEMENT OF NET POSITION
COMPONENT UNITS
Business
Improvement
District
ASSETS
Current Assets
Receivables
Taxes
Accrued interest
$
Community
Development
Authority
61,332
$
-
Totals
$
61,332
96,853
158,185
86,078
86,078
96,853
86,078
244,263
-
22,425,000
2,188,786
22,425,000
2,188,786
24,613,786
25,500
(9,651)
24,629,635
174,034
24,699,864
24,873,898
7,916
125,560
86,078
7,916
211,638
133,476
25,000
2,188,786
2,299,864
25,000
2,188,786
2,433,340
-
22,400,000
22,400,000
Total Liabilities
133,476
24,699,864
24,833,340
NET POSITION
Unrestricted
15,849
24,709
-
15,849
24,709
Noncurrent Assets
Lease receivable from primary government
Capital Assets
Depreciable capital assets
Less accumulated depreciation
Total Noncurrent Assets
25,500
(9,651)
15,849
Total Assets
LIABILITIES
Current Liabilities
Accounts payable
Current maturities of lease
revenue bonds payable
Due to primary government
Lease revenue bonds payable
TOTAL NET POSITION
$
40,558
$
- 15 -
-
$
40,558
CITY OF NEENAH
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION COMPONENT UNITS
Business
Improvement
District
OPERATING REVENUES
Taxes
$
OPERATING EXPENSES
Current
Conservation and development
Depreciation
124,854
Community
Development
Authority
$
125,062
1,518
126,580
NONOPERATING REVENUES (EXPENSES)
Investment income
Interest expense
Total Nonoperating Revenues (Expenses)
-
$
-
35
35
124,854
125,062
1,518
126,580
-
(1,726)
Operating Loss
Totals
(1,726)
1,033,583
(1,033,583)
-
1,033,618
(1,033,583)
35
Net Change in Net Position
(1,691)
-
(1,691)
42,249
-
42,249
$
TOTAL NET POSITION - ENDING
40,558
$
- 16 -
-
$
40,558
CITY OF NEENAH
INDEX TO NOTES TO FINANCIAL STATEMENTS
NOTE
Page
I.
Summary of Significant Accounting Policies
A. Reporting Entity
B. Government-Wide and Fund Financial Statements
C. Measurement Focus, Basis of Accounting,
and Financial Statement Presentation
D. Assets, Liabilities, and Net Position or Equity
1. Deposits and Investments
2. Receivables
3. Inventories and Prepaid Items
4. Restricted Assets
5. Capital Assets
6. Other Assets
7. Basis for Existing Rates – Proprietary Funds
8. Compensated Absences
9. Long-Term Obligations/Conduit Debt
10. Claims and Judgments
11. Equity Classifications
19
19
20
Reconciliation of Government-Wide and Fund Financial Statements
A. Explanation of Certain Differences Between the
Governmental Fund Balance Sheet and the Statement of Net Position
33
33
III.
Stewardship, Compliance, and Accountability
A. Budgetary Information
B. Excess Expenditures and Other Financing Uses Over Appropriations
C. Deficit Balances
D. Limitations on the City’s Tax Levy
E. Bond Covenant Disclosure
34
34
35
35
36
36
IV.
Detailed Notes on All Funds
A. Deposits and Investments
B. Receivables
C. Restricted Assets
D. Capital Assets
E. Interfund Receivables/Payables, Advances and Transfers
F. Long-Term Obligations
G. Lease Disclosures
H. Governmental Activities Net Position/Fund Balances
I.
Business-type Activities/Net Position
J. Component Units
37
37
41
42
43
47
50
57
58
61
61
II.
- 17 -
23
25
25
27
29
29
29
30
30
30
31
31
31
CITY OF NEENAH
INDEX TO NOTES TO FINANCIAL STATEMENTS (cont.)
NOTE (cont.)
V.
Page
Other Information
A. Employees’ Retirement System
B. Risk Management
C. Commitments and Contingencies
D. Joint Ventures
E. Other Postemployment Benefits
F. Subsequent Events
G. Effect of New Accounting Standards on Current-Period Financial Statements
- 18 -
66
66
67
70
71
72
74
74
CITY OF NEENAH
NOTES TO FINANCIAL STATEMENTS
NOTE I – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Neenah, Wisconsin conform to accounting principles generally
accepted in the United States of America as applicable to governmental units. The accepted standardsetting body for establishing governmental accounting and financial reporting principles is the
Governmental Accounting Standards Board (GASB).
A.
REPORTING ENTITY
This report includes all of the funds of the City of Neenah. The reporting entity for the City consists of
(a) the primary government, (b) organizations for which the primary government is financially accountable,
and (c) other organizations for which the nature and significance of their relationship with the primary
government are such that their exclusion would cause the reporting entity's financial statements to be
misleading or incomplete. A legally separate organization should be reported as a component unit if the
elected officials of the primary government are financially accountable to the organization. The primary
government is financially accountable if it appoints a voting majority of the organization's governing body
and (1) it is able to impose its will on that organization or (2) there is a potential for the organization to
provide specific financial benefits to or burdens on the primary government. The primary government may
be financially accountable if an organization is fiscally dependent on the primary government.
A legally separate, tax exempt organization should be reported as a component unit of a reporting entity if
all of the following criteria are met: (1) the economic resources received or held by the separate
organization are entirely or almost entirely for the direct benefit of the primary government, its component
units, or its constituents; (2) the primary government is entitled to, or has the ability to otherwise access, a
majority of the economic resources received or held by the separate organization; (3) the economic
resources received or held by an individual organization that the specific primary government, or its
component units, is entitled to, or has the ability to otherwise access, are significant to that primary
government. Blended component units, although legally separate entities, are, in substance, part of the
government’s operations and are reported with similar funds of the primary government. Each discretely
presented component unit is reported in a separate column in the government-wide financial statements
(see note below for description) to emphasize that it is legally separate from the primary government.
Component Units
City of Neenah Business Improvement District
The financial statements include the City of Neenah Business Improvement District (“BID”) as a
component unit. The BID is a legally separate organization. The district was created under the provisions
of Wisconsin Statute Section 66.1109. The district, created in 2001, is a separate governmental entity
with a separate 11 member board appointed by the mayor subject to common council confirmation. The
members serve staggered terms as designated by the City Council. A majority of the members own or
occupy real property in the district. The district has its own budgetary authority and assessment
capabilities. Wisconsin statutes provide for circumstances whereby the City can impose their will on the
BID, and also create a potential financial benefit or burden on the City. See Note IV.J. As a component
unit, the district’s financial statements are shown as one discrete column in the financial statements. The
information presented is for the fiscal year ended December 31, 2012. Separate financial statements may
be obtained from the district’s office at 135 West Wisconsin, Neenah, Wisconsin 54957.
- 19 -
CITY OF NEENAH
NOTE I – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
A.
REPORTING ENTITY (cont.)
Component Units (cont.)
Neenah Community Development Authority
The government-wide financial statements include the Neenah Community Development Authority
(“Authority”) as a component unit. The Authority is a legally separate organization. The board of the
Authority is appointed by the mayor of Neenah. Wisconsin Statutes provide for circumstances whereby
the City can impose their will on the Authority, and also create a potential financial benefit to or burden on
the City. See Note IV.J. As a component unit, the Authority’s financial statements have been presented
as a discrete column in the financial statements. The information presented is for the fiscal year ended
December 31, 2012. Separate financial statements of the Neenah Community Development Authority are
not issued.
B.
GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
Government-Wide Financial Statements
In June 2011, the GASB issued Statement No. 63 – Financing Reporting of Deferred Outflows of
Resources, Deferred Inflows of Resources, and Net Position. This statement provides financial reporting
guidance for deferred outflows of resources and deferred inflows of resources. Previous financial
reporting standards did not include guidance for those elements, which are distinct from assets and
liabilities.
The City made the decision to implement this standard effective January 1, 2012.
The statement of net position and statement of activities display information about the reporting
government as a whole. They include all funds of the reporting entity except for fiduciary funds. The
statements distinguish between governmental and business-type activities. Governmental activities
generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues.
Business-type activities are financed in whole or in part by fees charged to external parties for goods or
services. Likewise, the primary government is reported separately from the legally separate component
unit for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. The City does not allocate indirect expenses to functions in the statement of
activities. Program revenues include 1) charges to customers or applicants who purchase, use or directly
benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function
or segment. Taxes and other items not included among program revenues are reported as general
revenues. Internally dedicated resources are reported as general revenues rather than as program
revenues.
- 20 -
CITY OF NEENAH
B.
GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.)
Financial statements of the reporting entity are organized into funds each of which are considered to be
separate accounting entities. Each fund is accounted for by providing a separate set of self-balancing
accounts, which constitute its assets, liabilities, fund equity, revenues, and expenditure/expenses.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements.
Funds are organized as major funds or non-major funds within the governmental, proprietary, and
fiduciary statements. An emphasis is placed on major funds within the governmental and proprietary
categories. A fund is considered major if it is the primary operating fund of the City or meets the following
criteria:
a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental or
enterprise fund are at least 10% of the corresponding total for all funds of that category or type,
and
b. The same element of the individual governmental fund or enterprise fund that met the 10% test is
at least 5% of the corresponding total for all governmental and enterprise funds combined.
c.
In addition, any other governmental or enterprise fund that the City believes is particularly
important to financial statement users may be reported as a major fund.
The City reports the following major governmental funds:
General Fund – accounts for the City’s primary operating activities. It is used to account for and
report all financial resources except those accounted for and reported in another fund.
Special Revenue – TIF District No. 8 – accounts for resources legally restricted or committed to
supporting expenditures of the district.
Debt Service Fund – used to account for and report financial resources that are restricted,
committed, or assigned to expenditures for the payment of general long-term debt principal,
interest, and related costs, other than TIF or enterprise debt.
Capital Projects – Public Infrastructure – used to account for and report financial resources that
are restricted, committed, or assigned to expenditures for the acquisition or construction of
infrastructure.
Capital Projects – TIF District No. 7 – used to account for and report financial resources that
are restricted, committed, or assigned to expenditures outlined in the TIF project plan.
Capital Projects – TIF District No. 8 – used to account for and report financial resources that
are restricted, committed, or assigned to expenditures outlined in the TIF project plan.
The City reports the following major enterprise funds:
Water Utility – accounts for operations of the water system
Sewerage Disposal Utility – accounts for operations of the sewer system
Stormwater Utility – accounts for operations of the stormwater system
- 21 -
CITY OF NEENAH
B.
Fund Financial Statements (cont.)
The City reports the following non-major governmental and enterprise funds:
Special Revenue Funds – used to account for and report the proceeds of specific revenue
sources that are restricted or committed to expenditures for specified purposes (other than debt
service or capital projects).
TIF District No. 5
TIF District No. 6
TIF District No. 7
Recycling
Health Grants
Dial-A-Ride
Civic and Social
Library
Clock Tower Renovations
Other
Cemetery Flowers
Walnut
Capital Projects Funds – used to account for and report financial resources that are restricted,
committed, or assigned to expenditures for capital outlays, including the acquisition or
construction of equipment and/or major capital facilities.
TIF District No. 5
TIF District No. 6
Redevelopment
Facilities
Capital Equipment
Enterprise Fund – used to report any activity for which a fee is charged to external uses for
goods or services.
Parking Utility
- 22 -
CITY OF NEENAH
B.
In addition, the City reports the following fund types:
Internal service funds are used to account for the financing of goods or services provided by one
department or agency to other departments or agencies of the City, or to other governmental units, on a
cost-reimbursement basis.
Fleet Management
Benefit Accrual
Insurance
Information Systems
Agency funds are used to account for assets held by the City in a trustee capacity or as an agent for
individuals, private organizations, and/or other governmental units.
Advance Tax Collections
Municipal Court
Other
C.
MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
Government-Wide Financial Statements
The government-wide statement of net position and statement of activities are reported using the
economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of
accounting, revenues are recognized when earned and expenses are recorded when the liability is
incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from
exchange and exchange-like transactions are recognized when the exchange takes place. Property taxes
are recognized as revenues in the year for which they are levied. Taxes receivable for the following year
are recorded as receivables and unearned revenue. Grants and similar items are recognized as revenue
as soon as all eligibility requirements imposed by the provider are met. Special assessments are
recorded as revenue when earned. Unbilled receivables are recorded as revenues when services are
provided.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are charges between the City’s water, sewerage disposal, and
stormwater utility funds and various other functions of the government. Elimination of these charges
would distort the direct costs and program revenues reported for the various functions concerned.
- 23 -
CITY OF NEENAH
C.
MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION (cont.)
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recorded when they are both
measurable and available. Available means collectible within the current period or soon enough thereafter
to be used to pay liabilities of the current period. For this purpose, the City considers revenues to be
available if they are collected within 60 days of the end of the current fiscal period. Expenditures are
recorded when the related fund liability is incurred, except for unmatured interest on long-term debt,
claims, judgments, compensated absences, and pension expenditures, which are recorded as a fund
liability when expected to be paid with expendable available financial resources.
Property taxes are recorded in the year levied as receivables and deferred revenues. They are
recognized as revenues in the succeeding year when services financed by the levy are being provided.
Intergovernmental aids and grants are recognized as revenues in the period the City is entitled to the
resources and the amounts are available. Amounts owed to the City which are not available are recorded
as receivables and deferred revenues. Amounts received prior to the entitlement period are also recorded
as deferred revenues.
Special assessments are recorded as revenues when they become measurable and available as current
assets. Annual installments due in future years are reflected as receivables and deferred revenues. At
December 31, 2012, there were $416,238 of unrecorded deferred assessments in the water utility which
are not recorded as receivables because collection is subject to certain events occurring in the future and
no formal repayment schedule has been established.
Revenues susceptible to accrual include property taxes, miscellaneous taxes, public charges for services,
special assessments and interest. Other general revenues such as fines and forfeitures, inspection fees,
recreation fees, and miscellaneous revenues are recognized when received in cash or when measurable
and available under the criteria described above.
The City reports deferred revenues on its governmental funds balance sheet. Deferred revenues arise
from taxes levied in the current year which are for subsequent year’s operations. For governmental fund
financial statements, deferred revenues arise when a potential revenue does not meet both the
"measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise
when resources are received before the City has a legal claim to them, as when grant monies are
received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue
recognition criteria are met, or when the City has a legal claim to the resources, the liability for deferred
revenue is removed from the balance sheet and revenue is recognized.
Proprietary fund financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting, as described previously in this note. Agency funds follow the accrual
basis of accounting and do not have a measurement focus.
The water utility records an annual payment in lieu of taxes (PILOT) expense based on the value of its
plant and the current assessment ratio and local and school portion of the mill rate. Municipal utilities are
exempt from federal and state income taxes. Taxes include the employer's share of social security and
medicare, PSCW remainder assessment, and tax equivalent.
- 24 -
CITY OF NEENAH
C.
MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION (cont.)
The proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the
water, sewerage disposal, parking and stormwater funds are charges to customers for sales and services.
Special assessments are recorded as receivables and contribution revenue when levied. Operating
expenses for proprietary funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenditures/expenses during the reporting period. Actual results
could differ from those estimates.
D.
ASSETS, LIABILITIES, AND NET POSITION OR EQUITY
1. Deposits and Investments
For purposes of the statement of cash flows, the City considers all highly liquid investments with an initial
maturity of three months or less when acquired to be cash equivalents.
Investment of City funds is restricted by state statutes. Available investments are limited to:
a. Time deposits in any credit union, bank, savings bank or trust company maturing in three years
or less.
b. Bonds or securities of any county, city, drainage district, technical college district, village, town,
or school district of the state. Also, bonds issued by a local exposition district, a local
professional baseball park district, a local professional football stadium district, a local cultural
arts district, the University of Wisconsin Hospitals and Clinics Authority, or the Wisconsin
Aerospace Authority.
c.
Bonds or securities issued or guaranteed by the federal government.
d. The local government investment pool.
e. Any security maturing in seven years or less and having the highest or second highest rating
category of a nationally recognized rating agency.
f.
Securities of an open-end management investment company or investment trust, subject to
various conditions and investment options.
g. Repurchase agreements with public depositories, with certain conditions.
- 25 -
CITY OF NEENAH
D.
ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (cont.)
1. Deposits and Investments (cont.)
Investment of most trust funds including cemetery perpetual care funds is regulated by Chapter 881 of the
Wisconsin Statutes. Investment of library trust funds is regulated by Chapter 112. Those sections give
broad authority to use such funds to acquire various kinds of investments including stocks, bonds and
debentures. Additional restrictions may arise from local charters, ordinances, resolutions and grant
regulations. City funds invested in the cemetery perpetual care funds or endowment funds, including gifts
where principal is to be kept intact, may be invested in specific investment types which prudent persons
would not acquire or retain for their own accounts as long as the total investment in common stock does
not exceed 50% of the total market value of the fund.
The City believes it is in compliance with all restrictions.
As described in Note IV.A., the City is exposed to the following deposit and investment risks: custodial
credit risk (deposits and investments), credit risk, interest rate risk, and investments highly sensitive to
interest rate changes.
The City’s investment policy addresses each of these risks in the following manner:
Custodial Credit Risk: Where allowed by state law and in accordance with the GFOA
Recommended Practices on the Collateralization of Public Deposits, full collateralization
will be required on all demand deposit accounts, including checking accounts and nonnegotiable certificates of deposit.
Credit Risk: The City of Neenah will minimize credit risk, which is the risk of loss due to
failure of the security issuer or backer, by limiting investments to types of securities listed
within the policy; pre-qualifying financial institutions, brokers/dealers, intermediaries and
advisers, and; diversifying the investment portfolio so that the impact of potential losses
from any one type of security or from any one individual issuer will be minimized.
Interest Rate Risk: The City of Neenah will minimize interest rate risk, which is the risk
that the market value of securities in the portfolio will fall due to changes in market
interest rates, by structuring the investment portfolio so that securities mature to meet
cash requirements for ongoing operations, thereby avoiding the need to sell securities on
the open market prior to maturity, and investing operating funds primarily in shorter-term
securities, money market mutual funds, or similar investment pools and limiting the
average maturity of the portfolio in accordance with this policy.
The policy does not specifically address custodial credit risk for investments or investments highly
sensitive to interest rate changes.
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CITY OF NEENAH
D.
1. Deposits and Investments (cont.)
Investments are stated at fair value, which is the amount at which an investment could be exchanged in a
current transaction between willing parties. Fair values are based on quoted market prices. No
investments are reported at amortized cost. Adjustments necessary to record investments at fair value
are recorded in the operating statement as increases or decreases in investment income. Investment
income on commingled investments of municipal accounting funds is allocated based on average
balances. The difference between the bank balance and carrying value is due to outstanding checks
and/or deposits in transit.
The Wisconsin Local Government Investment Pool (LGIP) is part of the State Investment Fund (SIF), and
is managed by the State of Wisconsin Investment Board. The SIF is not registered with the Securities and
Exchange Commission, but operates under the statutory authority of Wisconsin Chapter 25. The SIF
reports the fair value of its underlying assets annually. Participants in the LGIP have the right to withdraw
their funds in total on one day’s notice. At December 31, 2012, the fair value of the City’s share of the
LGIP’s assets was substantially equal to the amount as reported in these statements.
See Note IV.A. for further information.
2. Receivables
Property Taxes
Property taxes are levied in December on the assessed value as of the prior January 1. In addition to
property taxes for the City, taxes are collected for and remitted to the state and county governments as
well as the local school district and technical college district. Taxes for all state and local governmental
units billed in the current year for the succeeding year are reflected as deferred revenues and due to
other taxing units on the accompanying agency fund statement of fiduciary net position.
Property tax calendar – 2012 tax roll:
Lien date and levy date
Tax bills mailed
Payment in full, or
First installment due
Second installment due
Third installment due
Fourth installment due
Personal property taxes in full
Tax sale – 2012 delinquent
real estate taxes
December 2012
December 2012
January 31, 2013
January 31, 2013
March 31, 2013
May 31, 2013
July 31, 2013
January 31, 2013
October 2015
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CITY OF NEENAH
D.
2. Receivables (cont.)
Uncollectible Accounts
Accounts receivable have been shown net of an allowance for uncollectible accounts. Delinquent real
estate taxes as of July 31 are paid in full by the county, which assumes the collection thereof. No
provision for uncollectible utility accounts receivable has been made for the water, sewerage district, and
stormwater utilities because they have the right by law to place substantially all delinquent bills on the tax
roll, and other delinquent bills are generally not significant. However, an allowance has been established
in the sewerage and stormwater utilities related to other accounts receivable. Refer to Note IV.B.
Interfund Transactions
During the course of operations transactions occur between individual funds that may result in amounts
owed between funds. Short-term interfund loans are reported as “due to and from other funds.” Long-term
interfund loans (noncurrent portion) are reported as “advances from and to other funds.” Interfund
receivables and payables between funds within governmental activities are eliminated in the Statement of
Net Position. Any residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as “internal balances”.
In the governmental fund financial statements, advances to other funds are offset equally by a
nonspendable fund balance account which indicates that they do not constitute expendable available
financial resources and therefore are not available for appropriation or by a restricted fund balance
account, if the funds will ultimately be restricted when the advance is repaid.
Loans
The City has received federal and state grant funds for economic development and housing rehabilitation
loan programs to various businesses and individuals. The City records a loan receivable when the loan
has been made and funds have been disbursed. The amount recorded as economic development and
housing rehabilitation loans receivable has been reduced by all known uncollectible accounts. An
allowance of $76,529 has been established in the housing/business loans fund at year end.
It is the City’s policy to record revenue when the initial loan is made from the federal and state grant
funds. The net amount of the loan receivable balance is included in restricted fund balance. Interest
received from loan repayments is recognized as revenue when received in cash. Any unspent loan
repayments at year end are presented as restricted fund balance in the fund financial statements.
For economic development loans, the City is limited by the Wisconsin Department of Commerce to the
amount of program income from economic development loans it may retain and loan to other businesses.
Program income includes the principal and interest received from economic development loans
repayments. Based upon its current population, the City may retain $750,000.
At December 31, 2012, the City has not exceeded its maximum retention cap. When it does, a liability to
the state will be recorded.
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CITY OF NEENAH
D.
3. Inventories and Prepaid Items
Inventories of the proprietary funds are stated at the lower of cost or market utilizing the average cost
method and charged to construction and/or operation and maintenance expense when used.
Governmental fund type inventories are recorded as expenditures when consumed rather than when
purchased, based on original cost using the FIFO method of accounting.
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.
4. Restricted Assets
Mandatory segregations of assets are presented as restricted assets. Such segregations are required by
bond agreements and other external parties. Current liabilities payable from these restricted assets are so
classified. The excess of restricted assets over current liabilities payable from restricted assets will be
used first for retirement of related long-term debt. The remainder, if generated from earnings, is shown as
restricted net position.
5. Capital Assets
Government –Wide Statements
Capital assets, which include property, plant and equipment, are reported in the government-wide
financial statements. Capital assets are defined by the government as assets with an initial cost of more
than $5,000 for general and infrastructure capital assets, and an estimated useful life in excess of one
year. All capital assets are valued at historical cost, or estimated historical cost if actual amounts are
unavailable. Donated capital assets are recorded at their estimated fair value at the date of donation.
Additions to and replacements of capital assets of business-type activities are recorded at original cost,
which includes material, labor, overhead, and an allowance for the cost of funds used during construction
when significant. For tax-exempt debt, the amount of interest capitalized equals the interest expense
incurred during construction netted against any interest revenue from temporary investment of borrowed
fund proceeds. No interest was capitalized during the current year. The cost of renewals and betterments
relating to retirement units is added to plant accounts. The cost of property replaced, retired or otherwise
disposed of, is deducted from plant accounts and, generally, together with removal costs less salvage, is
charged to accumulated depreciation.
Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of
Activities, with accumulated depreciation reflected in the Statement of Net Position. Depreciation is
provided over the assets’ estimated useful lives using the straight-line method of depreciation. The range
of estimated useful lives by type of asset is as follows:
Buildings
Land Improvements
Machinery and Equipment
Library Collection
Utility System
Infrastructure
40 Years
30 Years
3-20 Years
2-10 Years
4-80 Years
40-70 Years
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CITY OF NEENAH
D.
5. Capital Assets (cont.)
In the fund financial statements, capital assets used in governmental fund operations are accounted for
as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in
proprietary fund operations are accounted for the same as in the government-wide statements.
6. Other Assets
In governmental funds, debt issuance costs are recognized as expenditures in the current period. For the
government-wide and in the proprietary fund type financial statements, debt issuance costs are deferred
and amortized over the term of the debt issue.
In 2011, the water utility obtained approval from the PSCW to recognize an extraordinary loss related to
amounts recorded as plant in service that were not fully depreciated when retired. This loss will be
amortized over five years, which started in 2012.
7. Basis for Existing Rates – Proprietary Funds
Water Utility
Current water rates were approved by the Public Service Commission of Wisconsin in November 2010
and placed into effect January 1, 2011.
Current wastewater rates were approved by the Common Council and effective January 1, 2011.
Stormwater Utility
Current stormwater rates were approved by the Common Council and effective January 1, 2010.
8. Compensated Absences
Under terms of employment, employees are granted sick leave and vacations in varying amounts. Only
benefits considered to be vested are disclosed in these statements.
All vested vacation and sick leave pay is accrued when incurred in the government-wide and proprietary
fund financial statements. A liability for these amounts is reported in governmental funds only if they have
matured, for example, as a result of employee resignations and retirements, or are payable with
expendable available resources.
Payments for vacation and sick leave will be made at rates in effect when the benefits are used.
Accumulated vacation and sick leave liabilities at December 31, 2012 are determined on the basis of
current salary rates and include salary related payments.
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CITY OF NEENAH
D.
9. Long-Term Obligations/Conduit Debt
All long-term debt to be repaid from governmental and business-type resources are reported as liabilities
in the government-wide statements. The long-term debt consists primarily of notes and bonds payable,
and accrued compensated absences.
Long-term debt for governmental funds is not reported as liabilities in the fund financial statements. The
debt proceeds are reported as other financing sources and payments of principal and interest are
reported as expenditures. The accounting in proprietary funds is the same as it is in the government-wide
statements.
Long-term obligations for governmental funds are not reported as liabilities in the fund financial
statements. The face value of debts (plus any premiums) are reported as other financing sources and
payments of principal and interest are reported as expenditures. The accounting in proprietary funds is
the same as it is in the government-wide statements.
The City has approved the issuance of industrial revenue bonds (IRB) for the benefit of private business
enterprises. IRB’s are secured by mortgages or revenue agreements on the associated projects, and do
not constitute indebtedness of the City. Accordingly, the bonds are not reported as liabilities in the
accompanying financial statements. Eleven series of IRB’s, issued from 1985 through 2012 are
outstanding. At year end, the aggregate principal amount of these issues could not be determined.
However, their aggregate original issue amounts totaled $28,608,000.
10. Claims and Judgments
Claims and judgments are recorded as liabilities if all the conditions of Governmental Accounting
Standards Board pronouncements are met. The liability and expenditure for claims and judgments is only
reported in governmental fund types if it has matured. Claims and judgments are recorded in the
government-wide statements and proprietary funds as expenses when the related liabilities are incurred.
There were no significant claims or judgments at year end.
11. Equity Classifications
Government-Wide Statements
Equity is classified as net position and displayed in three components:
a. Net investment in capital assets – Consists of capital assets including restricted capital
assets, net of accumulated depreciation and reduced by the outstanding balances (excluding
unspent debt proceeds) of any bonds, mortgages, notes, or other borrowings that are
attributable to the acquisition, construction, or improvement of those assets.
b. 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.
c.
Unrestricted net position – All other net positions that do not meet the definition of “restricted”
or “net investment in capital assets.”
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CITY OF NEENAH
D.
11. Equity Classifications (cont.)
Government-Wide Statements (cont.)
When both restricted and unrestricted resources are available for use, it is the City’s policy to use
restricted resources first, then unrestricted resources as they are needed.
The net position section includes an adjustment for capital assets owned by the business-type activities
column, but financed by debt of the governmental activities column. The amount is a reduction of “net
investment in capital assets,” and an increase in “unrestricted” net position, shown only in the total
column. A reconciliation of this adjustment is as follows:
Unrestricted
Governmental
Activities
Business-type
Activities
$ 81,646,601
(7,911,929)
$ 44,548,856
10,063,882
Adjustment
$
(1,391,230)
1,391,230
Total
$ 124,804,227
3,543,183
Fund Statements
Governmental fund equity is classified as fund balance. In accordance with Governmental Accounting
Standards Board Statement No. 54 - Fund Balance Reporting and Governmental Fund Type Definitions,
the City classifies governmental fund balance as follows:
a.
Nonspendable - Includes fund balance amounts that cannot be spent either because they are
not in spendable form or because legal or contractual requirements require them to be
maintained intact.
b.
Restricted - Consists of fund balances with constraints placed on their 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.
c.
Committed - Includes fund balance amounts that are constrained for specific purposes that are
internally imposed by the government through formal action of the highest level of decision
making authority. Fund balance amounts are committed through a formal action (resolution) of
the City. This formal action must occur prior to the end of the reporting period, but the amount
of the commitment, which will be subject to the constraints, may be determined in the
subsequent period. Any changes to the constraints imposed require the same formal action of
the City that originally created the commitment.
d.
Assigned - Includes spendable fund balance amounts that are intended to be used for specific
purposes that are not considered restricted or committed. Fund balance may be assigned
through the following; 1) The City has adopted a financial policy authorizing the Common
Council to assign amounts for a specific purpose. 2) All remaining positive spendable amounts
in governmental funds, other than the general fund, that are neither restricted nor committed.
Assignments may take place after the end of the reporting period.
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CITY OF NEENAH
D.
11. Equity Classifications (cont.)
Fund Statements (cont.)
e.
Unassigned - Includes residual positive fund balance within the general fund which has not
been classified within the other above mentioned categories. Unassigned fund balance may
also include negative balances for any governmental fund if expenditures exceed amounts
restricted, committed, or assigned for those purposes.
Proprietary fund equity is classified the same as in the government-wide statements.
The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance
is available unless there are legal documents / contracts that prohibit doing this, such as in grant
agreements requiring dollar for dollar spending. Additionally, the City would first use committed, then
assigned and lastly unassigned amounts of unrestricted fund balance when expenditures are made.
See Note IV.H. for further information.
NOTE II – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A.
EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET AND
THE STATEMENT OF NET POSITION
The governmental fund balance sheet includes a reconciliation between fund balance – total
governmental funds and net position – governmental activities as reported in the government-wide
statement of net position. One element of that reconciliation explains that “some liabilities, including longterm debt, are not due and payable in the current period and, therefore, are not reported in the funds.”
The details of this $64,363,597 difference in liabilities are as follows:
Bonds and notes payable
Capital lease obligations
Accrued interest
Unamortized debt premiums and issuance costs
Net Adjustment to Reduce Fund Balance – Total
Governmental Funds to Arrive at Net Position –
$ 39,273,910
22,425,000
2,076,469
542,544*
(121,806)
167,480
$ 64,363,597
* This amount is included in other accrued liabilities on the Statement of Net Position.
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CITY OF NEENAH
NOTE III – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A.
BUDGETARY INFORMATION
Budgetary information is derived from the annual operating budget and is presented using the same basis
of accounting for each fund as described in Note l.C.
A budget has been adopted for the general fund, all special revenue funds, excluding the Walnut and
Clock Tower Renovations funds, debt service fund, and all capital project funds. The redevelopment
capital project fund was budgeted; however, it was a zero budget as no activity was anticipated.
Therefore, comparative schedules are not presented in supplementary information. Wisconsin Statute
65.90 requires that an annual budget be adopted for all funds.
The budgeted amounts presented include any amendments made.
The City follows these procedures in establishing the budget versus actual budgetary data reflected in the
financial statements:
a.
The Mayor submits to the Common Council a proposed budget for the fiscal year commencing the
following January 1. The budget includes proposed expenditures and the means of financing them.
b.
Public hearings are conducted at the City Administration Building to obtain taxpayer comments.
c.
Prior to December 31, the budget is legally adopted through passage of a council resolution.
d.
The budget as adopted, includes total expenditures at the cost center level. A cost center can be a
fund, major program, department or other activity for which control of expenditures are considered
desirable. Cost centers are defined as follows for the governmental fund types with annual budgets:
General at the department level, Special Revenue and Capital Projects at major program level and
Debt Service at total fund level. Expenditures cannot legally exceed appropriations at this level
without two-thirds common council approval to amend the budget.
e.
Formal budgetary integration is employed as a management control device during the year for the
General Fund, the Special Revenue Funds, the Debt Service Fund, the Capital Projects Funds,
Sewerage Disposal Utility, Stormwater Utility, and Parking Utility Enterprise Funds.
A comparison of Actual and Budget is included in the accompanying financial statements for all
governmental fund types with a legally adopted annual budget. The budget presentations are at the
cost center level (legal level of control for the annual budget).
f.
All budgets adopted conform to generally accepted accounting principles (GAAP) except for the
Enterprise Funds, where depreciation is not recognized for budget purposes. Budget amounts are as
originally adopted or as amended via the procedures explained above. Individual amendments were
legally authorized as described.
g.
Budgets for all non-committed governmental funds lapse at year-end. Carryovers to the following
year were $47,790 in the general fund, which includes library operations.
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CITY OF NEENAH
NOTE III – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (cont.)
B.
EXCESS EXPENDITURES AND OTHER FINANCING USES OVER APPROPRIATIONS
The following individual funds had an excess of expenditures and other financing uses over
appropriations at the legal level of budgetary control for the year ended December 31, 2012.
Excess
TIF District No. 8
TIF District No. 5
TIF District No. 6
TIF District No. 7
Industrial development
Recycling
Library
Perpetual care
Debt Service
Capital Project Fund
Facilities
C.
$
30,545
5,736
6,403
46,521
88,036
23,704
3,759
28,826
1,380
3,172
3,528,621
514,456
DEFICIT BALANCES
Generally accepted accounting principles require disclosure of individual funds that have deficit balances
at year end.
As of December 31, 2012, the following non-major individual funds held a deficit balance:
Fund
Amount
Reason
TIF District No. 5
$ 1,215,435
TIF District No. 6
1,646,503
TIF District No. 7
629,250
38,923
Costs exceed accumulated increments
Grants not sufficient to cover expenditures
Capital Projects Fund
Facilities
91,033
Excess expenditures over revenues
Internal Service Fund
Information Systems
2,859
Costs exceed accumulated revenues
TIF District deficits are anticipated to be funded with future incremental taxes levied over the life of the
districts, which is 27 years for the districts created before October 1, 1995, and 23 years for districts
created through September 30, 2004. Beginning October 1, 2004, the life of new districts varies by type of
district (20-27 years) and may be extended in some cases. Other fund deficits are anticipated to be
funded with future contributions, general tax revenues, or long-term borrowing.
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CITY OF NEENAH
D.
LIMITATIONS ON THE CITY’S TAX LEVY
As part of Wisconsin’s Act 32 (2011), legislation was passed that limits the City’s future tax levies.
Generally, the City is limited to its prior tax levy dollar amount (excluding TIF districts), increased by the
greater of the percentage change in the City’s equalized value due to new construction, or zero percent
for the 2011 levy collected in 2012 and thereafter. Changes in debt service from one year to the next are
generally exempt from this limit with certain exceptions.
E.
BOND COVENANT DISCLOSURE
The following information is provided in compliance with the resolution creating the revenue bonds.
Insurance – Water Utility
The water utility is covered under the following insurance policies at December 31, 2012:
Type
Coverage
Expiration Date
Insurance Company of the State of Pennsylvania and
The Cities and Villages Mutual Insurance Company
General Liability
Excess Public Liability
Automobile
$
5,000,000
8,000,000
10,000,000
01/01/2013
01/01/2013
01/01/2013
132,723,103
04/04/2013
Local Government Property Insurance Fund
Property
Refer to Note V.B. for additional insurance information.
Debt Coverage
Under terms of the resolutions providing for the issue of revenue bonds, revenues less operating
expenses excluding depreciation (defined net earnings) must exceed 1.25 times the subsequent year’s
annual debt service and 1.10 times the highest annual debt service of the bonds for the water and
stormwater utility, respectively. The coverage requirement was met for both the water utility and the
stormwater utility as follows:
Operating revenues
Investment income
Miscellaneous non-operating income
Less: Operation and maintenance expenses
Net Defined Earnings
Minimum Required Earnings per Resolution:
Debt service
Coverage factor
Minimum Required Earnings
- 36 -
Water
Stormwater
$ 9,143,821
23,527
8,529
(3,176,012)
$ 1,680,337
5,896
(708,016)
$ 5,999,865
$
978,217
$ 3,015,008
1.25
$
33,025
1.10
$ 3,768,760
$
36,328
CITY OF NEENAH
E.
BOND COVENANT DISCLOSURE (cont.)
Number of Customers and Billed Volumes – Water Utility
The water utility has the following number of customers and billed volumes for 2012.
Customers
2012
Residential
Commercial
Industrial
Public authority
Totals
Sales
(000 gals)
2012
9,546
745
92
55
444,411
189,406
468,804
25,538
10,438
1,128,159
Utility Budget
The 2012 utility budget was prepared and approved as required by the bond resolutions.
NOTE IV – DETAILED NOTES ON ALL FUNDS
A.
DEPOSITS AND INVESTMENTS
The City maintains a cash and investment pool that is available for use by all funds. Each fund type’s
portion of this pool is displayed on the statement of net position and balance sheet as cash and
investments. In addition, investments are separately held by several of the City’s funds.
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CITY OF NEENAH
NOTE IV – DETAILED NOTES ON ALL FUNDS
A.
DEPOSITS AND INVESTMENTS (cont.)
The City’s cash and investments at year end were comprised of the following:
Bank and
Carrying
Investment
Value
Balances
Deposits and cash on hand
Money markets
U.S. agencies implicitly guaranteed
9,281,119
1,935,160
1,767,635
$ 10,037,359
1,935,160
1,767,635
U.S. agencies explicitly guaranteed
3,237,580
3,237,580
U.S. treasuries
1,527,065
1,527,065
10,115
10,115
430,162
18,013,219
430,162
18,013,219
4,223,737
524,593
4,223,737
524,593
$ 40,950,385
$ 41,706,625
Corporate bonds and notes
Common stock
Repurchase agreements
LGIP
Mutual funds
$
Reconciliation to financial statements
Per statement of net position
Unrestricted cash and investments
– Fiduciary Funds Agency
$ 15,925,846
2,685,380
$ 40,950,385
Associated
Risks
Custodial credit
Custodial credit
Custodial credit, credit,
interest rate and highly
sensitive to interest rate
changes
Custodial credit, interest
rate and highly sensitive
to interest rate changes
Custodial credit and
interest rate
Custodial credit, credit,
and interest rate
Custodial credit
Custodial credit, credit and
interest rate
Credit
Credit and interest rate
22,339,159
Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time and
savings accounts (including NOW accounts), $250,000 for interest-bearing demand deposit accounts, and
unlimited amounts for noninterest bearing transaction accounts through December 31, 2012. On January 1,
2013, the temporary unlimited coverage for noninterest bearing transaction accounts expired. Therefore,
demand deposit amounts (interest-bearing and noninterest bearing) are insured for a total of $250,000
beginning January 1, 2013. In addition, if deposits are held in an institution outside of the state in which the
government is located, insured amounts are further limited to a total of $250,000 for the combined amount
of all deposit accounts. Bank accounts are also insured by the State Deposit Guarantee Fund in the
amount of $400,000. However, due to the relatively small size of the Guarantee Fund in relationship to the
total deposits covered and other legal implications, recovery of material principal losses may not be
significant to individual municipalities. This coverage has been considered in computing custodial credit
risk.
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CITY OF NEENAH
NOTE IV – DETAILED NOTES ON ALL FUNDS (cont.)
A.
The City maintains collateral agreements with Associated Bank, Bank Mutual, First Business Bank, and
Great Bank Trust Company.
Custodial Credit Risk
Deposits – Custodial credit risk is the risk that in the event of a financial institution failure, the City’s
deposits may not be returned to the City.
As of December 31, 2012, $43,816 of the City’s total bank balances of $11,972,519 were exposed to
custodial credit risk.
Investments – For an investment, custodial credit risk is the risk that, in the event of the failure of the
counterparty, the City will not be able to recover the value of its investments or collateral securities that
are in the possession of an outside party.
As of December 31, 2012, the City does not have any investments exposed to custodial credit risk.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.
As of December 31, 2012, the City’s investments were rated as follows:
Standard
& Poor’s
Investment Type
Moody’s
Investor Service
U.S. Agencies Implicitly Guaranteed
Federal Home Loan Bank
AAA
Aaa
Corporate Bonds and Notes
Becton Dickinson & Co. Nt
A
A3
Mutual Funds
Templeton Institutional Fds Inc Foreign
Vanguard Extended Market Index Fd Invest
Vanguard Index TR 500 Admiral Shs
Not available
Not available
Not available
Not available
Not available
Not available
Repurchase Agreements
Associated Bank
Pennant/Banes
Not available
Not available
Not available
Not available
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CITY OF NEENAH
A.
Credit Risk (cont.)
The City also had investments in the following external pool which is not rated:
LGIP
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investment.
As of December 31, 2012, the City’s investments were as follows:
Maturity
Date
Specific Investment
Corporate Bonds and Notes
Becton Dickinson & Co Nt
Fair Value
4/15/2013
$
10,115
Mutual Funds
Templeton Institutional Fds Inc Foreign
Vanguard Extended Market Index Fd Invest
Vanguard Index TR 500 Admiral Shs
Sub-Total – Mutual Funds
Not applicable
Not applicable
Not applicable
42,759
53,058
428,776
524,593
Repurchase Agreements
Associated Bank
Pennant/Banes
Sub-Total – Repurchase Agreements
Not applicable
Not applicable
14,013,219
4,000,000
18,013,219
Total
$
Investment Type
U.S. Agencies Implicitly Guaranteed
U.S. Agencies Explicitly Guaranteed
U.S. Treasuries
Totals
Fair Value
1-5 Years
18,547,927
5-30 Years
$
1,767,635
3,237,580
1,527,065
$
601,271
89,546
826,832
$
1,166,364
3,148,034
700,233
$
6,532,280
$
1,517,649
$
5,014,631
Investments Highly Sensitive to Interest Rate Charges
At December 31, 2012, $1,470,650 of the $5,014,631 reported above had maturity dates beyond ten
years classifying them as highly sensitive to interest rate charges.
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CITY OF NEENAH
B.
RECEIVABLES
All receivable balances are expected to be collected within one year with the exception of $51,765 in
delinquent personal property taxes; $750,671 in special assessments; and $688,770 of loans receivable.
Revenues of the sewerage disposal and stormwater utility are reported net of uncollectible amounts. Total
uncollectible amounts related to revenues of the current period are as follows:
Sewerage Disposal Utility – Uncollectibles related to customer invoices
Stormwater Utility – Uncollectible related to customer invoices
Total Uncollectibles of the Current Fiscal Year
$
11,528
760
$
12,288
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Property taxes levied for the
subsequent year are not covered and cannot be used to liquidate liabilities of the current period.
Governmental funds also defer revenue recognition in connection with resources that have been
received, but not yet earned. At the end of the current fiscal year, the various components of deferred
revenue and unearned revenue reported in the governmental funds were as follows:
Unavailable
Property taxes receivable for subsequent year
Special assessments/special charges not yet due
Unearned revenue: pet licenses, rent
Total Deferred/Unearned Revenue for
Governmental Funds
Unearned
Totals
$
343,846
-
$ 19,838,139
33,795
$ 19,838,139
343,846
33,795
$
343,846
$ 19,871,934
$ 20,215,780
On the statement of net position, $17,649 of unearned revenue is reported from the internal service funds
for total unearned revenue of $19,889,583.
- 41 -
CITY OF NEENAH
C.
RESTRICTED ASSETS
The following represent the balances of the business-type activities restricted assets:
Long Term Debt Accounts
Redemption
–
Used to segregate resources accumulated for debt service payments over
the next twelve months.
Depreciation
–
Used to report resources set aside to fund plant renewals and replacement
or make up potential future deficiencies in the redemption account.
Reserve
–
Used to report resources set aside to make up potential future deficiencies in
the redemption account.
The following calculation supports the amount of business-type activities restricted net position:
2012
Restricted Assets
Redemption account
Depreciation account
Reserve account
Interest receivable
Total Restricted Assets
$ 1,286,616
250,000
1,148,764
439
2,685,819
Less: Restricted Assets Not Funded by Revenues
Reserve from borrowing
Total Restricted Assets Not Funded by Revenues
Current Liabilities Payable From Restricted Assets
Total Restricted Net Position
(1,148,764)
1,537,055
(105,302)
$ 1,431,753
- 42 -
CITY OF NEENAH
D.
CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2012 was as follows:
Beginning
Balance
Capital assets not being depreciated
Land
Right-of-ways
Land improvements(1)
Total Capital Assets
Not Being Depreciated
(2)
12,588,486
13,112,194
10,186,271
56,521
$
55,000
118,161
4,500
Ending
Balance
Deletions
$
48,930
48,986
$
12,643,486
13,112,194
10,255,502
12,035
35,943,472
177,661
97,916
36,023,217
Capital assets being depreciated
Improvements
Buildings
Equipment, furniture and fixtures
Collections (library)
Streets
Bridges
Street lighting
Traffic signals
Sidewalks
Trails
Retaining walls
Steam tunnel
Being Depreciated
9,110,227
35,260,068
11,881,024
3,471,033
51,090,364
19,830,071
833,721
1,062,236
5,616,509
627,301
1,305,001
390,374
1,684,162
213,255
1,143,815
285,986
2,245,060
54,225
-
401,485
220,286
929,679
-
10,794,389
35,473,323
12,623,354
3,536,733
52,405,745
19,830,071
833,721
1,062,236
5,670,734
627,301
1,305,001
390,374
140,477,929
5,626,503
1,551,450
144,552,981
Less: Accumulated depreciation for
Improvements
Buildings
Equipment, furniture and fixtures
Collections (library)
Streets(2)
Bridges
Street lighting
Traffic signals
Sidewalks
Trails
Retaining walls
Steam tunnel
Total Accumulated Depreciation
(3,302,969)
(10,958,563)
(7,336,118)
(2,865,657)
(18,215,897)
(2,255,286)
(124,479)
(217,153)
(3,008,457)
(155,041)
(26,100)
(19,519)
(48,485,239)
(388,680)
(768,426)
(606,254)
(401,677)
(1,048,115)
(300,021)
(11,116)
(13,043)
(113,415)
(15,683)
(26,100)
(9,759)
(3,702,289)
331,258
220,286
978,610
1,530,154
(3,691,649)
(11,726,989)
(7,611,113)
(3,047,048)
(18,285,402)
(2,555,307)
(135,595)
(230,196)
(3,121,872)
(170,724)
(52,200)
(29,278)
(50,657,373)
Capital Assets,
Net of Depreciation
(1)
$
Additions
$
127,936,162
$
129,918,825
This represents the nondepreciable portion of City streets.
The accumulated depreciation deleted for streets exceeds the capital assets for the same category being deleted
due to minor adjustments in values at year end.
- 43 -
CITY OF NEENAH
D.
CAPITAL ASSETS (cont.)
Governmental Activities (cont.)
Depreciation expense was charged to functions as follows:
General government
Public safety
Public works, which includes the depreciation of infrastructure
Health and welfare
$
Total Governmental Activities Depreciation Expense
$ 3,702,289
Beginning
Balance
Water Utility
Land and land rights
Source of supply
Pumping
Treatment
Transmission and distribution
Administrative and general assets
Being Depreciated
Source of supply
Pumping
Treatment
Transmission and distribution
Administrative and general assets(3)
Total Accumulated
Depreciation
Capital Assets, Net of
Depreciation
(3)
$
122,180
681
129,886
245,267
2,263,220
1,062,858
1,058
Additions
$
Ending
Balance
Deletions
-
$
681
$
122,180
-
122,861
-
681
122,180
130,978
3,384,153
23,848,486
29,089,906
2,064,370
669,507
117,062
279,235
118,173
130,978
3,384,153
23,848,486
29,480,178
2,063,259
58,517,893
786,569
397,408
58,907,054
(126,144)
(754,674)
(5,204,192)
(3,399,599)
(1,178,133)
(2,227)
(107,729)
(806,003)
(580,629)
(213,181)
279,235
119,894
(128,371)
(862,403)
(6,010,195)
(3,700,993)
(1,271,420)
(10,662,742)
(1,709,769)
399,129
(11,973,382)
$ 47,978,012
$ 47,055,852
The accumulated depreciation deleted for administrative and general assets exceeds the capital
assets for the same category being deleted due to minor adjustments in values at year end.
- 44 -
CITY OF NEENAH
D.
Beginning
Balance
$
Collection system
Collection system pumping
Computer software
Being Depreciated
Collection system
Collection system pumping
Computer software
Total Accumulated
Depreciation
Depreciation
Stormwater Utility
Detention ponds
Total Capital Assets Not Being
Depreciated
97,270
Additions
$
Ending
Balance
Deletions
153,991
$
251,261
-
22,655,156
755,214
10,359
1,213,271
72,795
-
110,896
20,000
-
23,757,531
808,009
10,359
23,420,729
1,286,066
130,896
24,575,899
(7,821,732)
(300,614)
(3,885)
(329,724)
(9,894)
(2,590)
110,896
20,000
-
(8,040,560)
(290,508)
(6,475)
(8,126,231)
(342,208)
130,896
(8,337,543)
$ 15,391,768
$
$
3,400,156
$ 16,238,356
$
-
$
-
$
3,400,156
3,400,156
-
-
3,400,156
Collection system
Detention basins
Detention pond equipment
Computer software
Being Depreciated
13,267,862
3,966,069
113,052
10,358
277,407
-
5,640
20,519
-
13,539,629
3,945,550
113,052
10,358
17,357,341
277,407
26,159
17,608,589
Collection system
Detention basins
Detention pond equipment
Computer software
(3,628,288)
(1,609,746)
(80,336)
(3,886)
(167,547)
(49,448)
(11,305)
(2,589)
5,640
20,519
-
(3,790,195)
(1,638,675)
(91,641)
(6,475)
(5,322,256)
(230,889)
26,159
(5,526,986)
Depreciation
$
15,435,241
- 45 -
$
15,481,759
CITY OF NEENAH
D.
Beginning
Balance
Parking Utility
Land and land rights
$
Land improvements
Being Depreciated
Land improvements
Capital Assets, Net
of Depreciation
Total Business-type
Activities
158,267
Additions
$
-
$
-
$
158,267
158,267
-
-
158,267
26,717
71,241
3,151
-
26,717
74,329
97,958
3,151
-
101,109
-
(26,717)
(60,194)
(86,911)
(26,717)
(59,483)
(86,200)
$
Ending
Balance
Deletions
170,025
$ 78,975,046
(711)
(711)
$
172,465
$ 78,948,432
Depreciation expense was charged to functions as follows:
Water
Sewerage disposal
Stormwater
Parking
Depreciation Expense
$
1,548,331
342,208
230,889
711
$
2,122,139
Depreciation expense does not agree to the additions to accumulated depreciation due to salvage value
and cost of removal.
- 46 -
CITY OF NEENAH
E.
INTERFUND RECEIVABLES/PAYABLES, ADVANCES AND TRANSFERS
Interfund Receivables/Payables
The following is a schedule of interfund receivables and payables including any overdrafts on pooled cash
and investment accounts:
Receivable Fund
Payable Fund
General
Enterprise – sewerage disposal utility
Enterprise – stormwater utility
Capital projects – public infrastructure
Internal service – benefit accrual
Enterprise fund – water utility
General
General
Capital projects – facilities
Special revenue – Community development
block grant
Special revenue – other
Internal service – information systems
Amount
$ 1,097,696
16,346
334
62,120
43,950
1,650
22,470
1,244,566
Sub-Total – Fund Financial Statements
Less: Elimination to government-wide statements
(163,550)
Total – Government-Wide Financial Statements
Receivable Fund
Payable Fund
Governmental activities
Less: Business-type activities
Business-type activities
Governmental activities
Total Internal Balances – Government-Wide Financial Statements
$ 1,081,016
Amount
$ 1,097,696
(16,680)
$ 1,081,016
All of these amounts are due within one year.
The principal purpose of these interfunds is the PILOT due from the water utility to the general fund in the
amount of $1,097,696 and tax roll items.
All remaining balances resulted from the time lag between the dates that (1) interfund goods and services
are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system,
and (3) payments between funds are made.
For the statement of net position, interfund balances which are owed within the governmental activities or
business-type activities are netted and eliminated.
- 47 -
CITY OF NEENAH
E.
INTERFUND RECEIVABLES/PAYABLES, ADVANCES AND TRANSFERS (cont.)
Advances
The following is a schedule of interfund advances:
Receivable Fund
Payable Fund
Special revenue – recycling fund
Capital projects – TIF District No. 7
Debt service
Debt service
Special revenue – TIF District No. 6
Amount Not
Due Within
One Year
Amount
$
Sub-Totals – Fund Financial Statements
198,531 $
198,531
891,000
891,000
400,000
400,000
2,133,573
2,133,573
772,810
772,810
359,531
359,531
629,251
629,251
217,100
217,100
580,873
580,873
1,636,997
1,636,997
868,090
868,090
250,000
250,000
650,000
650,000
9,587,756 $ 9,587,756
Less: Eliminations
(9,587,756)
Total – Government-Wide Financial Statements
$
-
The principal purpose of the advances is due to expenditures exceeding revenues. No repayment
schedules have been established.
For the statement of net position, advance balances which are owed within the governmental activities or
business-type activities are netted and eliminated.
Transfers
The following is a schedule of interfund transfers:
Fund Transferred From
Fund Transferred To
General fund
Special revenue – dial-a-ride
Special Revenue
TIF District No. 5
TIF District No. 5
TIF District No. 6
TIF District No. 6
TIF District No. 7
TIF District No. 7
TIF District No. 8
TIF District No. 8
General fund
Debt service
General fund
Debt service
General fund
Debt service
General fund
Debt service
Amount
$
12,000 Operating subsidy
65,633
120,804
48,240
273,556
85,678
1,343,717
89,320
681,650
- 48 -
Principal Purpose
Administrative and finance costs
Debt service
Debt service
Debt service
Debt service
CITY OF NEENAH
E.
INTERFUND RECEIVABLES/PAYABLES, ADVANCES AND TRANSFERS (cont.)
Transfers (cont.)
Fund Transferred From
Fund Transferred To
Amount
Principal Purpose
Special Revenue (cont.)
block grant
block grant
Housing/business loans
Recycling
Other
Cemetery perpetual care
84,868 Administrative charge
General fund
General fund
General fund
General fund
General fund
57,500
21,700
55,000
65,673
23,172
Enterprise
Water utility
Sewerage disposal utility
General fund
General fund
General fund
Stormwater utility
General fund
Parking utility
General fund
Internal Service
Fleet management
Benefit accrual
Information systems
$
35,000 Administrative charge
Administrative charge
Operating subsidy as budgeted
Administrative charge
K9 unit funds
Interest
1,129,974 PILOT and interest
840,517 2012 expenditures, interest, and
administrative costs
306,790 City and public works support
overhead
108,880 Administrative charges
25,000 Accumulated reserves
300,000 Budgeted transfer
27,500 Excess funds
General fund
General fund
General fund
Sub-Total – Fund Financial Statements
5,802,172
Less: Fund Eliminations
Less: Utility capital assets – financed by the TIF
(3,416,011)
(90,759)
Total Transfers – Government-wide Statement of Activities
$ 2,295,402
Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that the
budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the
receipts to the debt service fund, and (3) use unrestricted revenues collected in the general fund to
finance various programs accounted for in other funds in accordance with budgetary authorizations.
- 49 -
CITY OF NEENAH
F.
LONG-TERM OBLIGATIONS
Long-term obligations activity for the year ended December 31, 2012 was as follows:
Beginning
Balance
GOVERNMENTAL ACTIVITIES
Bonds and Notes Payable:
General obligation debt
General
Add/(Subtract) Deferred Amounts For:
Premiums
Sub-Total
$
Other Liabilities
Vested compensated absences
General
Internal service
General
Internal service
Capital leases
Premiums on capital leases
Total Other Liabilities
Total Governmental Activities
Long-Term Liabilities
BUSINESS-TYPE ACTIVITIES
Bonds and Notes Payable:
General obligation debt
Revenue bonds
Add/(Subtract) Deferred Amounts For:
Refundings - Gains/(Losses)
Premiums
Sub-Total
$
8,386,092
Decreases
$
6,889,439
$
39,273,910
$
3,884,885
22,421
37,799,678
113,622
8,499,714
116,923
7,006,362
19,120
39,293,030
3,884,885
2,079,653
1,884,203
516,729
809,367
519,913
632,268
2,076,469
2,061,302
519,117
771,810
132,110
8,444
22,450,000
89,471
26,643,881
35,370
2,404
1,363,870
25,000
5,261
1,182,442
167,480
10,848
22,425,000
84,210
26,825,309
25,000
1,315,927
$
64,443,559
$
9,863,584
$
8,188,804
$
66,118,339
$
5,200,812
$
7,525,650
30,379,081
$
1,613,908
1,350,000
$
958,524
4,154,404
$
8,181,034
27,574,677
$
1,300,277
2,299,694
(123,557)
113,622
37,894,796
Other Liabilities:
Vested compensated absences
Total Other Liabilities
Long-Term Liabilities
37,777,257
Increases
Amounts
Due Within
One Year
Ending
Balance
(36,199)
53,120
2,980,829
164,898
25,297
190,195
$
38,084,991
(15,104)
14,285
5,112,109
54,066
5,688
59,754
$
3,040,583
- 50 -
(144,652)
152,457
35,763,516
43,138
43,138
$
5,155,247
3,599,971
175,826
30,985
206,811
$
35,970,327
20,761
20,761
$
3,620,732
CITY OF NEENAH
F.
LONG-TERM OBLIGATIONS (cont.)
General Obligation Debt
All general obligation notes and bonds payable are backed by the full faith and credit of the City. Notes
and bonds in the governmental funds will be retired by future property tax levies or tax increments
accumulated by the debt service fund. Business-type activities debt is payable by revenues from user
fees of those funds or, if the revenues are not sufficient, by future tax levies. The purpose for which all
general obligation debt was issued is capital related.
In accordance with Wisconsin Statutes, total general obligation indebtedness of the City may not exceed
5% of the equalized value of taxable property within the City's jurisdiction. The debt limit as of
December 31, 2012, was $92,028,145. Total general obligation debt outstanding at year end was
$47,454,944.
Original
Date of
Final
Interest
IndebtedBalance
Issue
Maturity
Rates
ness
12-31-12
General Obligation Promissory
Notes, Series 2012A
General Obligation Community
Development Bonds, Series
2012B
General Obligation Refunding
Bonds, Series 2012C
Notes, Series 2011
Notes, Series 2010A
Development Bonds,
Series 2010B
Notes, Series 2009A
Development Bonds,
Series 2009B
Bonds, Series 2009C
Notes, Series 2008A
Notes, Series 2007A
Notes, Series 2007B
Development Bonds,
Series 2006A
06/27/12
03/01/22
1.25 - 2.00%
$ 2,565,000 $
2,565,000
06/27/12
03/01/31
2.75 -
1,635,000
1,635,000
12/03/12
03/01/26
4,186,092
4,186,092
01/26/11
09/01/20
1.50 -
2.90%
3,335,000
3,335,000
01/26/10
03/01/19
2.00 -
3.50%
1,965,000
1,740,000
01/26/10
03/01/29
3.25 -
4.25%
2,315,000
2,315,000
06/10/09
03/01/19
2.00 -
4.00%
700,000
635,000
06/10/09
03/01/29
4.00 -
4.40%
2,590,000
2,590,000
12/02/09
03/01/18
2.00 -
3.50%
3,830,314
2,170,000
05/28/08
03/01/18
3.25 -
4.00%
3,731,000
3,094,966
06/01/07
03/01/17
3.875%
2,024,640
1,361,920
06/01/07
03/01/21
3.875%
2,820,000
2,575,000
05/17/06
09/01/26
7,175,000
3,530,000
- 51 -
3.30%
2.00%
4.25 -
4.75%
CITY OF NEENAH
F.
General Obligation Debt (cont.)
(cont.)
Notes, Series 2006B
Development Bonds,
Series 2005A
Notes, Series 2005B
Development Bonds,
Series 2004C
Notes, Series 2004D
State Trust Fund Loan
Notes, Series 2003A
Date of
Issue
Final
Maturity
Original
Indebtedness
Interest
Rates
05/17/06
09/01/16
4.00 -
4.25%
$ 3,130,000 $
1,623,812
05/03/05
03/01/25
3.00 -
4.50%
5,235,000
1,030,000
05/03/05
03/01/15
3.35 -
3.85%
2,670,000
1,235,000
06/01/04
03/01/23
4.00 -
5.00%
2,225,000
1,885,000
06/01/04
11/10/04
03/01/14
03/15/24
4.00 - 4.35%
5.00%
970,000
1,370,836
215,000
1,021,872
06/01/03
03/01/13
2.00 -
5,505,741
530,248
3.15%
Total Governmental Activities – General Obligation Debt
Bonds, Series 2012C
Note, Series 2012
Notes, Series 2011
Notes, Series 2010
Clean Water Fund General
Obligation Debt
Notes, Series 2009A
Note, Series 2008A
Note, Series 2007A
Notes, Series 2006B
Notes, Series 2003A
Balance
12-31-12
$ 39,273,910
12/03/12
03/01/26
2.00%
06/27/12
03/01/22
1.25 – 2.00%
01/26/11
09/01/20
1.50 -
01/26/10
03/01/19
2.00 -
05/12/10
05/01/30
06/10/09
03/01/19
05/28/08
03/01/18
06/01/07
03/01/17
05/17/06
09/01/16
4.00 -
06/01/03
03/01/13
2.00 -
Total Business-type Activities General Obligation Debt
223,908 $
223,908
1,390,000
1,390,000
2.90%
1,660,000
1,525,000
3.50%
810,000
655,000
411,652
378,072 (1)
2.20%
2.00 -
$
4.00%
2,015,000
1,490,000
3.250%
1,284,000
1,065,034
3.875%
1,305,360
878,080
4.25%
980,000
506,188
3.15%
724,259
69,752
$
8,181,034
(1) During 2010, the sewer utility was authorized to issue $521,043 of Sewer System Clean Water Fund
General Obligation Bonds. The original amount reported above has been issued as of December 31,
2012. The repayment schedule is for the amount issued.
- 52 -
CITY OF NEENAH
F.
General Obligation Debt (cont.)
Debt service requirements to maturity are as follows:
Principal
Interest
Totals
Years
2013
2014
2015
2016
2017
2018-2022
2023-2027
2028-2031
Totals
$
Principal
Interest
Totals
3,884,885 $
3,815,102
4,172,527
4,197,500
3,930,427
13,309,075
4,544,394
1,420,000
1,269,427 $ 5,154,312 $
1,144,911
4,960,013
1,010,578
5,183,105
868,787
5,066,287
732,586
4,663,013
1,948,133
15,257,208
606,742
5,151,136
74,043
1,494,043
1,300,277 $
1,030,054
1,064,472
1,093,559
1,111,546
2,394,735
112,666
73,725
212,704 $
180,898
151,480
121,659
88,805
118,383
14,414
2,456
1,512,981
1,210,952
1,215,952
1,215,218
1,200,351
2,513,118
127,080
76,181
$ 39,273,910 $
7,655,207 $ 46,929,117 $
8,181,034 $
890,799 $
9,071,833
Revenue Debt
Revenue bonds are payable only from revenues derived from the operation of the water and stormwater
utilities.
The water utility has pledged future sales revenues, net of specified operating expenses, to repay $27
million in revenue bonds issued between 2003-2012. Proceeds from the bonds provided financing for the
water utility. The bonds are payable solely from sales revenues and are payable through 2026. Annual
principal and interest payments on the bonds are expected to require 25% of gross revenues on average.
The total principal and interest remaining to be paid on the bonds is $31,736,484. Principal and interest
paid for the current year and total customer gross revenues were $2,957,001, not including payment of
the refunded debt, and $9,175,878, respectively.
All revenue debt was issued for capital related purposes.
- 53 -
CITY OF NEENAH
F.
Revenue Debt (cont.)
All stormwater utility revenues net of specified operating expenses are pledged as security to the revenue
bonds until the bonds are defeased. Principal and interest paid for 2012 was $33,035. Total customer
gross revenues as defined for the same period were $1,686,233. Annual principal and interest payments
are expected to require 2% of gross revenues on average.
Revenue debt payable at December 31, 2012 consists of the following:
Business-type Activities Revenue Debt
Date of
Issue
Water Utility
Water Utility Revenue
Advance Refunding
Bonds 2012
Bonds 2007
Bonds 2006
Bonds 2005
Advance Refunding
Bonds 2004
Bonds Series 2003
Stormwater Utility
Stormwater System
Revenue Bonds,
Series 2009
Final
Maturity
Interest
Rates
Original
Indebtedness
09/26/12
12/01/21
2.12%
06/01/07
12/01/26
4.00-4.125%
2,345,000
1,805,000
01/25/06
05/01/25
2.365%
8,788,354
6,727,455
04/27/05
05/01/24
2.365%
16,666,667
11,458,682
11/15/04
12/01/17
2.50-3.90%
4,210,000
1,835,000
07/01/03
12/01/22
2.00-4.00%
6,000,000
3,965,000
12/09/09
05/01/29
3.15%
471,087
Total Business-type Activities Revenue Debt
$
1,350,000
Balance
12-31-12
$
1,350,000
433,540 (2)
$
27,574,677
(2) During 2009, the stormwater utility was authorized to issue $595,374 of Clean Water Fund revenue
bonds. The original amount reported above has been issued as of December 31, 2012. The
repayment schedule is for the amount issued.
- 54 -
CITY OF NEENAH
F.
Business-type Activities Revenue Debt (cont.)
Revenue Bonds
Years
Principal
2013
2014
2015
2016
2017
2018-2022
2023-2027
2028-2029
$
Totals
Interest
Totals
2,299,694
2,380,704
2,502,455
2,269,958
2,338,238
11,068,785
4,651,198
63,645
$
748,340 $ 3,048,034
679,177
3,059,881
612,475
3,114,930
540,978
2,810,936
477,669
2,815,907
1,459,602
12,528,387
201,411
4,852,609
2,021
65,666
$ 27,574,677
$
4,721,673 $ 32,296,350
Capital Leases
Refer to Note IV.G.
Other Debt Information
Estimated payments of compensated absences and other post-employment benefits obligations are not
included in the debt service requirement schedules. The compensated absences liability and other postemployment benefits obligations attributable to governmental activities will be liquidated primarily by the
general fund.
A statutory mortgage lien upon the City's system and any additions, improvements and extensions thereto
is created by Section 66.0621 of the Wisconsin Statutes as provided for in the ordinances creating the
revenue bond issue. The City's system and the earnings of the system remain subject to the lien until
payment in full of the principal and interest on the bonds.
There are a number of limitations and restrictions contained in the various bond indentures and loan
agreements. See Note III.E.
Advance Refunding
On December 3, 2012, the city issued $3,460,000 in 2012 Series C general obligation refunding bonds
with an average interest rate of 2.00% to advance refund $1,255,000 and $1,825,000 of outstanding
2005A and 2006A bonds, respectively, with an average interest rate of 4.18% and 4.57%, respectively.
Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt
service payments on the bonds. As a result, the bonds are considered to be defeased and the liability for
those bonds has been removed from these financial statements.
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CITY OF NEENAH
F.
Advance Refunding (cont.)
The cash flow requirements on the refunded bonds and notes prior to the advance refunding was
$9,972,840 from 2013 through 2026. The cash flow requirements on the 2012 refunding bonds are
$9,520,258 from 2013 through 2026. The advance refunding resulted in an economic gain (difference
between the present values of the debt service payments on the old and new debt) of $400,816.
Current Refundings
On September 26, 2012, water utility issued revenue bonds in the amount of $1,350,000 with an average
interest rate of 2.12 % to refund $2,035,000 of outstanding 2001 and 2002 bonds with an average interest
rate of 4.13 %. The net proceeds of $1,308,750 (after payment of $41,250 in underwriting fees, and other
issuance costs) plus an additional $853,637 of sinking fund monies were used to prepay the outstanding
debt service requirements on the bonds.
The cash flow requirements on the 2001 and 2002 bonds prior to the current refunding was $2,449,653
from 2012 through 2021. The cash flow requirements on the new bonds are $1,480,292 from 2013
through 2021. The current refunding resulted in an economic gain of $205,479.
On December 3, 2012, the city issued $950,000 ($726,092 city, $115,421 sewerage disposal utility and
$108,487 stormwater utility) in 2012 Series C general obligation refunding bonds with an average interest
rate of 2.00% to current refund $970,000 of outstanding 2006 Series B promissory notes with an average
interest rate of 4.13%.
The cash flow requirements on the refunded bonds and notes prior to the current refunding was
$1,770,463 from 2013 through 2016. The cash flow requirements on the 2012 refunding bonds are
$1,697,644 from 2013 through 2016. The current refunding resulted in an economic gain (difference
between the present values of the debt service payments on the old and new debt) of $70,143.
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CITY OF NEENAH
G.
LEASE DISCLOSURES
Lessee – Capital Leases
In 2004 and 2008, the CDA borrowed $16,190,000 and $6,285,000, respectively, in lease revenue bonds.
These funds are to be used for the construction of TIF No. 8 projects as part of a capital lease agreement.
The annual lease payments to be paid will be the same as the CDA’s annual debt service payments on
the lease revenue bonds (See Note IV.J.). The future minimum lease obligations and the net present
value on these minimum lease payments as of December 31, 2012, are as follows:
Principal
Interest
Totals
2013
2014
2015
2016
2017
2018-2022
2023-2027
2028-2032
Totals
$
25,000 $
335,000
345,000
355,000
780,000
5,455,000
9,640,000
5,490,000
1,032,933 $ 1,057,933
1,032,232
1,367,232
1,022,016
1,367,016
1,010,802
1,365,802
998,733
1,778,733
4,421,107
9,876,107
2,780,445
12,420,445
519,521
6,009,521
$ 22,425,000 $ 12,817,789 $ 35,242,789
Lessee – Operating Leases
The City has no material operating leases with a remaining noncancellable term, exceeding one year.
Lessor – Capital Leases
The City has no material outstanding sales-type or direct financing leases.
Lessor – Operating Leases
The City does not receive material lease payments from property rented to others.
- 57 -
CITY OF NEENAH
H.
GOVERNMENTAL ACTIVITIES NET POSITION/FUND BALANCES
Governmental activities net position reported on the government wide statement of net position at
December 31, 2012 includes the following:
Land
Right-of-way
Land improvements
Other capital assets, net of accumulated depreciation
Less: Related long-term debt outstanding, premium,
discount
Add: Unspent debt proceeds
Total Net Investment in Capital Assets
$ 12,643,486
13,112,194
10,255,502
12,035
93,895,608
$ (49,966,824)
1,694,600
(48,272,224)
81,646,601
Restricted
Debt service
Loans
Grant programs
Library
Cemetery
Total Restricted
792,436
969,910
150,460
957,729
1,204,632
4,075,167
(7,911,929)
Total Governmental Activities Net Position
$ 77,809,839
Governmental fund balances reported on the fund financial statements at December 31, 2012 include the
following:
Nonspendable
Major Funds
General Fund
Delinquent personal property taxes
Inventories
Prepaid items
Total
Noncurrent receivables/advances
- 58 -
$
51,765
886
161,216
$
213,867
$
4,197,383
CITY OF NEENAH
H. GOVERNMENTAL ACTIVITIES NET POSITION/FUND BALANCES (cont.)
Restricted
Major Funds
Debt Service
$
1,755,090
$
1,007,996
$
467,336
$
32,670
15,120
70,000
Total
$
117,790
Major Funds
General Fund
$
3,621,301
Special Revenue – TIF District No. 8
$
(4,335,723)
Capital projects
$
(74,074)
Assigned
Major Fund
General Fund
Library operations
Carryforwards
Surplus applied to 2013 budget
- 59 -
CITY OF NEENAH
H. GOVERNMENTAL ACTIVITIES NET POSITION/FUND BALANCES (cont.)
Non-Major Funds – Details of
Fund Balance
TIF District No. 5
TIF District No. 6
TIF District No. 7
Recycling
Health grants
Parks and recreation
Dial-A-Ride
Civic and social
Library
Clock tower renovations
Other
Cemetery perpetual care
Cemetery flowers
Walnut
Sub-Total – Special Revenue Funds
Nonspendable
$
Capital Projects Fund
TIF District No. 5
TIF District No. 6
Redevelopment
Facilities
Capital equipment
Equipment replacement
Sub-Total – Capital Projects Funds
Totals
Restricted
- $
- $
969,910
198,531
150,460
323
957,406
25
1,204,632
198,854
3,282,433
7,627
7,627
$
Committed
85,884
217,022
302,906
Nonspendable for:
Prepaid items
Noncurrent receivables/advances
Total
- 60 -
- $
21,362
200,055
353,780
8,450
108,319
124,845
181,327
721
998,859
-
206,481 $ 3,585,339 $
Unassigned
(Deficit)
Assigned
998,859 $
$
7,950
198,531
$
206,481
- $
20,746
479,785
158,255
658,786
658,786 $
(1,215,435)
(1,646,503)
(629,250)
(38,923)
(3,530,111)
(91,033)
(91,033)
(3,621,144)
CITY OF NEENAH
I. BUSINESS-TYPE ACTIVITIES/NET POSITION
The following calculation supports the enterprise fund net investment in capital assets:
Water
Plant in service
Accumulated depreciation
Sub-Totals
Other
Enterprise
Funds
Stormwater
Utility
$ 59,029,234 $ 24,575,899 $ 21,008,745 $
(11,973,382)
(8,337,543)
(5,526,986)
47,055,852
16,238,356
15,481,759
Less: Capital related debt
Current portion of long-term debt
Long-term portion of debt
Unamortized loss on advance refunding
Unamortized premiums and issuance costs*
Sub-Totals
2,280,028
24,861,109
(144,652)
(73,711)
26,922,774
Add: Unspent Debt Proceeds
Reserve from borrowing
Total Net Investment in Capital Assets
Sewerage
Disposal
Utility
1,148,764
259,376
(86,911)
172,465
766,962
4,735,262
2,795
5,505,019
552,981
2,559,369
8,197
3,120,547
-
-
-
-
$ 21,281,842 $ 10,733,337 $ 12,361,212 $
172,465
* Debt proceeds were used to pay issuance costs.
J.
COMPONENT UNITS
City of Neenah Business Improvement District
This report contains the City of Neenah Business Improvement District (“BID”) which is included as a
component unit. Financial information is presented in the discrete column on the combining statement of
net position and statement of changes in net position.
In addition to the financial statements and the preceding notes to financial statements which apply, the
following additional disclosures are considered necessary for a fair presentation.
a.
Basis of Accounting/Measurement Focus
The BID prepares its financial statements in accordance with generally accepted accounting
principles. The accounting records are kept on the accrual basis of accounting and the flow of
economic resources measurement focus.
b.
Deposits and Investments
The district invests its funds in accordance with the provisions of the Wisconsin Statutes
66.0603(1m) and 67.11(2). A separate investment policy does not exist.
At year end, the BID did not report any investments.
- 61 -
CITY OF NEENAH
J.
COMPONENT UNITS (cont.)
City of Neenah Business Improvement District (cont.)
b.
Deposits and Investments (cont.)
The BID’s cash at year end was comprised of the following:
Carrying
Value
Demand deposits
$
61,332
Unrestricted cash and investments
$
61,332
Statement
Balance
$
61,332
Associated
Risks
Custodial credit
Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time
and savings accounts (including NOW accounts), $250,000 for interest bearing demand deposit
accounts, and unlimited amounts for noninterest bearing transaction accounts through December
31, 2012. On January 1, 2013, the temporary unlimited coverage for noninterest bearing
transaction accounts expired. Therefore, demand deposit amounts (interest-bearing and
noninterest bearing) are insured for a total of $250,000 beginning January 1, 2013. In addition, if
deposits are held in an institution outside of the state in which the government is located, insured
amounts are further limited to a total of $250,000 for the combined amount of all deposit accounts.
Bank accounts are also insured by the State Deposit Guarantee Fund in the amount of $400,000.
However, due to the relatively small size of the Guarantee Fund in relationship to the total deposits
covered and other legal implications, recovery of material principal losses may not be significant to
individual municipalities.
Deposits – Custodial credit risk is the risk that in the event of a financial institution failure, the BID’s
deposits may not be returned to the BID.
The BID does not have any deposits exposed to custodial credit risk.
- 62 -
CITY OF NEENAH
J.
City of Neenah Business Improvement District (cont.)
c.
Capital Assets
Beginning
Balance
Land improvements
Machinery and equipment
$
Land improvements
Machinery and equipment
Net Capital Assets Being
Depreciated
$
Additions
Ending
Balance
Deletions
11,000 $
14,500
- $
-
- $
-
11,000
14,500
25,500
-
-
25,500
(3,300)
(4,833)
(550)
(968)
-
(3,850)
(5,801)
(8,133)
(1,518)
-
(9,651)
17,367
$
Useful
Lives
(Years)
15,849
Community Development Authority
This report contains the Community Development Authority (CDA), which is included as a component
unit. Financial information is presented in the discrete column in the combining statement of net position
and statement of changes in net position.
In addition to the basic financial statements and the preceding notes to financial statements which apply,
the following additional disclosures are considered necessary for a fair presentation.
a.
Basis of Accounting/Measurement Focus
The CDA prepares its financial statements in accordance with generally accepted accounting
principles. The accounting records are kept on the accrual basis of accounting and the flow of
economic resources measurement focus.
- 63 -
20
15
CITY OF NEENAH
J.
Community Development Authority (cont.)
b.
Deposits and Investments
A separate investment policy does not exist for the CDA.
The Community Development Authority’s deposits and investments at year end were comprised of
the following:
Carrying
Value
Money market
$
2,188,786
$
2,188,786
Statement
Balance
$
2,188,786
Associated
Risks
Custodial credit
Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time
and savings accounts (including NOW accounts), $250,000 for interest bearing demand deposit
accounts, and unlimited amounts for noninterest bearing transaction accounts through December
31, 2012. On January 1, 2013, the temporary unlimited coverage for noninterest bearing
transaction accounts expired. Therefore, demand deposit amounts (interest-bearing and
noninterest bearing) are insured for a total of $250,000 beginning January 1, 2013. In addition, if
deposits are held in an institution outside of the state in which the government is located, insured
amounts are further limited to a total of $250,000 for the combined amount of all deposit accounts.
Bank accounts are also insured by the State Deposit Guarantee Fund in the amount of $400,000.
However, due to the relatively small size of the Guarantee Fund in relationship to the total deposits
covered and other legal implications, recovery of material principal losses may not be significant to
individual municipalities. This coverage has been considered in computing the amounts covered
by insurance above.
Deposits – Custodial credit risk is the risk that in the event of a financial institution failure, the
Community Development Authority’s deposits may not be returned to the Community
Development Authority.
As of December 31, 2012, none of the CDA’s total bank balances of $2,188,786 were exposed to
custodial credit risk.
- 64 -
CITY OF NEENAH
J. COMPONENT UNITS (cont.)
Community Development Authority (cont.)
c.
Long-Term Obligations
Beginning
Balance
Increases
2004 community development
lease revenue bonds dated
December 15, 2004 with interest
at 4.000-4.963%. Principal
payments vary. Bonds mature
December 1, 2028.
$ 16,190,000
2008 community development
lease revenue bonds dated
September 17, 2008 with interest
at 2.40-4.75%. Principal
payments vary. Bonds mature
December 1, 2032.
6,260,000
Totals
$ 22,450,000
$
-
$
$
Ending
Balance
Decreases
-
-
$
25,000
$
25,000
16,190,000
6,235,000
$
22,425,000
Years
2013
2014
2015
2016
2017
2018-2022
2023-2027
2028-2032
Totals
Principal
$
25,000
335,000
345,000
355,000
780,000
5,455,000
9,640,000
5,490,000
$ 22,425,000
Interest
$
1,032,933
1,032,232
1,022,016
1,010,802
998,733
4,421,107
2,780,445
519,521
$ 12,817,789
Totals
$
1,057,933
1,367,232
1,367,016
1,365,802
1,778,733
9,876,107
12,420,445
6,009,521
$ 35,242,789
d. Lease Disclosures
The CDA has entered into a lease agreement with Plexus, Corp. for the use of land and land
improvements. The term of the lease is ninety-nine (99) years and went into effect April 28, 2009. Rent is
$1 per year and interest is not being charged. The cost of the land and land improvements is being
reported as land held for resale in the governmental activities column at a value of $773,000 as it was
purchased by TIF No. 8.
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CITY OF NEENAH
NOTE V – OTHER INFORMATION
A. EMPLOYEES’ RETIREMENT SYSTEM
All eligible City employees participate in the Wisconsin Retirement System (WRS), a cost-sharing,
multiple-employer, defined benefit, public employee retirement system (PERS). All employees, initially
employed by a participating WRS employer prior to July 1, 2011, expected to work over 600 hours a year,
and expected to be employed for at least one year from the employee’s date of hire are eligible to
participate in the WRS. All employees, initially employed by a participating WRS employer on or after July
1, 2011, expected to work at least 1,200 hours a year, and expected to be employed for at least one year
from employee’s date of hire are eligible to participate in the WRS.
Prior to June 29, 2011, covered employees in the General category were required by statute to contribute
6.5% of their salary (3.9% for Executives and Elected Officials, 5.8% for Protective Occupations with
Social Security, and 4.8% for Protective Occupations without Social Security) to the plan. Employers
could make these contributions to the plan on behalf of employees. Employers were required to
contribute an actuarially determined amount necessary to fund the remaining projected cost of future
benefits.
Effective the first day of the first pay period on or after June 29, 2011, the employee required contribution
was changed to one-half of the actuarially determined contribution rate for General category employees
and Executives and Elected Officials. Required contributions for protective contributions are the same
rate as general employees. Employers are required to contribute the remainder of the actuarially
determined contribution rate. The employer may not pay the employee required contribution unless
provided for by an existing collective bargaining agreement. Contribution rates for 2012 are:
General
Executives and Elected Officials
Protective with Social Security
Protective without Social Security
Employee
Employer
5.9%
7.05%
5.9%
5.9%
5.9%
7.05%
15.6%
17.9%
The payroll for City employees covered by WRS for the year ended December 31, 2012 was
$12,989,180; the employer’s total payroll was $14,943,827. The total required contribution for the year
ended December 31, 2012 was $2,171,215 or 16.7 percent of covered payroll. Of this amount, 100
percent was contributed for the current year. Total contributions for the years ending December 31, 2011
and 2010 were $1,682,045 and $1,944,918, respectively, equal to the required contributions for each
year.
- 66 -
CITY OF NEENAH
NOTE V – OTHER INFORMATION (cont.)
A. EMPLOYEES’ RETIREMENT SYSTEM (cont.)
Employees who retire at or after age 65 (62 for elected officials and 54 for protective occupation
employees with less than 25 years of service, 53 for protective occupation employees with more than 25
years of service) are entitled to receive a retirement benefit. Employees may retire at age 55 (50 for
protective occupation employees) and receive actuarially reduced benefits. The factors influencing the
benefit are: (1) final average earnings, (2) years of creditable service, and (3) a formula factor. Final
average earnings is the average of the employee’s three highest years’ earnings. Employees terminating
covered employment and submitting an application before becoming eligible for a retirement benefit may
withdraw their contributions and, by doing so, forfeit all rights to any subsequent benefit. For employees
beginning participation on or after January 1, 1990 and no longer actively employed on or after April 24,
1998, creditable service in each of five years is required for eligibility for a retirement annuity. Participants
employed prior to 1990 and on or after April 24, 1998 and prior to July 1, 2011 are immediately vested.
Participants who initially became WRS eligible on or after July 1, 2011 must have five years of creditable
service to be vested.
WRS also provides death and disability benefits for employees. Eligibility for and the amount of all
benefits is determined under Chapter 40 of Wisconsin Statutes. WRS issues an annual financial report
which may be obtained by writing to the Department of Employee Trust Funds, P.O. Box 7931, Madison,
WI 53707-7931.
As of December 31, 2012, there was no pension-related debt for the City.
Private Pension Plan
In addition to the above, the State of Wisconsin administers a cost-sharing, multiple-employer plan for two
retired employees of the City police and fire departments. These individuals were covered by a private
pension plan prior to the City joining the Wisconsin Retirement System. No new employees are added to
the plan. The City's policy is to fund retirement contributions to meet current benefit payments of retired
employees. The City of Neenah contributed $14,920. Total contributions for the years outstanding
December 31, 2011 and 2010 were $15,822 and $16,403, respectively. Based on the current
computation, the total estimated future cost to the City for this plan was approximately $110,352 as of
December 31, 2012, all of which relates to prior service. The estimated remaining period of amortization
is five years. This is included in the annual financial report issued by the Department of Employee Trust
Fund. This report can be obtained by writing to the Department of Employee Trust Funds, P.O. Box 7391,
Madison, WI 53707-7931.
B.
RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets;
errors and omissions; workers compensation; and health care of its employees. The City participates in a
public entity risk pool to provide coverage for losses from theft of, damage to, or destruction of assets
(torts; errors and omissions; workers compensation; and general liability coverage). Other risks, such as
health and dental coverage of its employees are accounted for and financed by the City in an internal
service fund – the benefit accrual fund.
- 67 -
CITY OF NEENAH
B.
RISK MANAGEMENT (cont.)
Participation in Public Entity Risk Pool
The WMIC is an intergovernmental cooperation commission created by contract under Section 66.30 of
the Wisconsin Statutes. It was created in August 1987 for the purpose of facilitating the organization,
establishment, and capitalization of the CVMIC, and has numerous cities and villages as members.
The CVMIC is a municipal mutual insurance company established on September 19, 1987 under Section
611.23 of the Wisconsin Statutes. The CVMIC provides liability insurance coverage to the cities and
villages which make up the membership of the WMIC.
The CVMIC is self-insured up to a maximum of $2,000,000 of each insurance risk. Losses paid by CVMIC
plus administrative expenses will be recovered through premiums to the participating pool of
municipalities. The City’s share of such losses is less than 1%.
Management of each organization consists of a board of directors or officers comprised of
representatives elected by each of three classes of participants based on population. The City does not
exercise any control over the activities of the agencies beyond the election of the officers and board.
Financial statements of WMIC and CVMIC are available from: Cities and Village Mutual Insurance
Company, 1250 South Sunnyslope Road, Suite 105, Brookfield, WI 53005.
The initial investment of WMIC is refundable upon withdrawal from the commission and has been
reported at the original amount of $1,117,155 in the insurance internal service fund.
The City pays an annual premium to CVMIC for its general liability insurance, which provides coverage up
to $5,000,000 per occurrence, less the City's retained liability. The City's retained liability is limited to
$50,000 per occurrence and an annual aggregate limit of $100,000. An actuarially determined estimate
has been recorded for this liability, as well as for claims incurred but not reported at December 31, 2012.
A total liability of approximately $161,736 at December 31, 2012 was recorded as claims payable.
Changes in the fund’s claims loss liability follow:
Balance
January 1
2011
2012
$
9,955
15,000
Claims
Paid/
Settled
Incurred
Claims
$
103,514
361,396
$
98,469
214,660
Balance
December 31
$
The City is not financially accountable, as defined in Note I, over WMIC or the mutual.
- 68 -
15,000
161,736
CITY OF NEENAH
B.
RISK MANAGEMENT (cont.)
Dental Care
The City is exposed to various risks of loss related to dental claims. The City's risk management fund (an
internal service fund) is used to account for and finance its uninsured risks of loss. Under this program,
the risk management fund provides coverage for up to a maximum annual reimbursement per claimant of
$4,000 for basic (Teamsters) members and $2,000 for all others. There have been no reductions in
insurance coverage in 2012.
All funds of the City participate in the program and are charged amounts needed to pay prior and current
year claims and to establish a reserve for future claims costs. The estimated liability for self-funded losses
is based on reviewing past claim experience, 2012 claim payment data and making assumptions about
future claim payments and experiences. The City does not allocate overhead costs or other nonincremental costs to the claims liability. The estimated liability for self-insured losses for this program
consisted of the following at December 31, 2012:
Incurred but not reported claims
$
20,000
Changes in the claims payable follow:
Balance
January 1
2011
2012
$
Incurred
Claims
20,000
20,000
$
283,030
287,370
Claims
Paid
$
283,030
287,370
Balance
December 31
$
20,000
20,000
Self Insurance – Health
Beginning in 2011, the City became self-insured for health insurance. This is reported in the benefit
accrual internal service fund. For health claims, the uninsured risk of loss is $75,000 per incident and
$4,186,090 in the aggregate for a policy year. The City has purchased commercial insurance for claims in
excess of those amounts.
A liability for a claim is established if information indicates that it is probable that a liability has been
incurred at the date of the financial statements and the amount of the loss is reasonably estimable. Longterm liabilities include an amount for claims that have been incurred but not reported (IBNR). The City
does not allocate overhead costs or other non-incremental costs to the claims liability. Changes in the
current claims liability follows:
2012
Unpaid claims - Beginning of Year
Current year claims and changes in estimates
Claim payments
Unpaid Claims - End of Year
- 69 -
$
$
307,975
2,685,297
(2,660,686)
332,586
CITY OF NEENAH
C. COMMITMENTS AND CONTINGENCIES
The City has incurred costs for sanitary sewer interceptors and transportation systems which will benefit
certain areas if they are annexed by the City. Upon annexation, the City could recover the costs from the
property owners. City officials estimate the potential recovery at December 31, 2012 aggregated
approximately $4,295,682.
The Fox River clean up continues to be a source of potential liability to the City. Although the U.S.
Environmental Protection Agency (EPA) has not formally designated the City as a potentially responsible
party (“PRP”) with respect to this matter, it has effectively treated the City as a PRP, thereby requiring the
City to participate in the EPA’s investigation and efforts toward remediation. As a result, the City has been
required to defend against and cooperate with the EPA’s continuing investigation and remedial efforts.
Parties have commenced Comprehensive Environmental Response, Compensation, and Liability Act
(CERCLA), commonly known as Superfund, contribution actions for past and future remediation and
oversight costs and natural resources damages against thirty-three defendants, including the NeenahMenasha Sewerage Commission, which is partially owned by the City, potentially triggering covered
claims against the City.
It is not possible to estimate the financial impact to the City at this time. The City has put its insurance
carriers on notice, but they have denied a duty to defend or indemnity. The City may seek to recover any
liability from its insurance carriers and/or other responsible entities.
The City has received federal and state grants for specific purposes that are subject to review and audit
by the grantor agencies. Such audits could lead to requests for reimbursements to the grantor agency for
expenditures disallowed under terms of the grant. City management believes such disallowances, if any,
would be immaterial.
Funding for the operating budget of the City comes from many sources, including property taxes, grants
and aids from other units of government, user fees, fines and permits, and other miscellaneous revenues.
The State of Wisconsin provides a variety of aid and grant programs which benefit the City. Those aid
and grant programs are dependent on continued approval and funding by the Wisconsin governor and
legislature, through their budget processes. The State of Wisconsin is currently experiencing budget
problems, and is considering numerous alternatives including reducing aid to local governments. Any
changes made by the State to funding or eligibility of local aid programs could have a significant impact
on the future operating results of the City.
The City has active construction projects as of December 31, 2012. Work that has been completed on
these projects but not yet paid for (including contract retainages) is reflected as accounts payable and
expenditures.
The City has the following encumbrances outstanding at year end expected to be honored upon
performance by the vendor:
Nonmajor funds
$
- 70 -
5,461
50,192
6,062
114,096
CITY OF NEENAH
D. JOINT VENTURES
The City of Neenah and the City of Menasha have enacted joint ordinances creating the MenashaNeenah Municipal Court. Each City’s proportionate share in the annual operations is equal to the
percentage share of citations issued by that city compared to the total citations issued by both cities since
the inception of the municipal court. The breakdown as of December 31, 2012 was as follows:
City
Number of
2012
Citations
City of Menasha
City of Neenah
Totals
Number of
Citations
Since
Inception
% of Total
1,773
3,739
21,627
31,299
40.9%
59.1%
5,512
52,926
100.0%
The City of Neenah is the lead agency for purposes of administering the operations of the court.
Therefore, all employees of the court, including the judge, are considered City of Neenah employees. The
court’s offices operate out of the Neenah City Hall building. Court trials are held in the Common Council
Chambers at Neenah City Hall.
The municipal court prepares an annual budget and submits it to Neenah and Menasha as part of the
cities’ annual budgeting process. The cities each pay a proportionate share of the municipal court budget.
In addition to its proportionate share, Menasha also pays the City of Neenah an annual administrative fee.
The administrative fee is reviewed annually. The City of Neenah has established a Municipal Court fund
(an agency fund) to account for municipal court activity.
As of December 31, 2012, the court had a deficit of $211,000. The allocation of this deficit is as follows:
City of Menasha
City of Neenah
Total
$
88,163
122,837
$
211,000
It is the intent that the court will repay these funds.
Financial information of the court as of December 31, 2012 is included in the City’s CAFR as
supplementary information. Separate financial statements are not available. The City of Neenah does not
have an equity interest in this organization.
- 71 -
CITY OF NEENAH
D. JOINT VENTURES (cont.)
On January 1, 2003, the City of Neenah and City of Menasha merged their fire departments. The merged
fire department is known as the Neenah-Menasha Fire Rescue (NMFR). It provides fire and rescue
services to the citizens of both communities.
The communities share in the annual operation of the fire department as follows: City of Menasha –
40.22% and City of Neenah – 59.78%.
Annually as part of the budget process, the joint finance and personnel committee will re-evaluate the
cost distribution formula based on the following five factors: 1) population, 2) equalized value, 3) annual
fire/rescue calls, 4) square miles, and 5) square footage of all buildings with each community.
The Joint Fire Commission consists of six members with three year staggered terms. Neenah and
Menasha each appoint three members to the commission. The appointees are not elected officials of the
municipalities.
The oversight of the day-to-day operations and budgetary matters of the Neenah-Menasha Fire Rescue
are conducted by the Joint Fire Finance and Personnel Committee. The recommendations of the Joint
Finance and Personnel Committee shall be acted upon separately by the common councils of both
Neenah and Menasha and are effective only upon concurrence of both councils.
The City of Neenah is responsible for administering and accounting for all funds received and disbursed.
A separate fund (an agency fund) has been established by the City of Neenah to account for fire services.
The City accounts for its share of the operations in the general fund. The City of Neenah does not have
an equity interest in this organization. Financial information related to the Neenah-Menasha Fire Rescue
as of December 31, 2012 is included in the City’s CAFR as supplementary information. Separate financial
statements are not available.
E.
OTHER POSTEMPLOYMENT BENEFITS
The City administers a single-employer defined benefit healthcare plan (“the Retiree Health Plan”). The
City’s group health insurance plan provides coverage to active employees and retirees (or other qualified
terminated employees) at blended premium rates. This results in another postemployment benefit (OPEB)
for the retirees, commonly referred to as an implicit rate subsidy.
Contribution requirements are established through collective bargaining agreements and may be
amended only through negotiations between the City and the union. The retirees pay 100% of the
premium amounts under the plan.
- 72 -
CITY OF NEENAH
E.
OTHER POSTEMPLOYMENT BENEFITS (cont.)
The City’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the
annual required contribution of the employer (ARC), an amount actuarially determined in accordance with
parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing
basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or
funding excess) over a period not to exceed thirty years. The following table shows the components of the
City’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the
City’s net OPEB obligation to the Retiree Health Plan:
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB Cost
Contributions made
Increase in net OPEB obligation
$
113,709
6,594
(6,590)
113,713
(70,251)
43,462
Net OPEB Obligation – Beginning of Year
165,851
Net OPEB Obligation – End of Year
$
209,313
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for 2012 and the two preceding years were as follows:
Annual
OPEB
Cost
Fiscal Year Ended
12/31/12
12/31/11
12/31/10
$
113,713
130,121
125,518
Percentage
of Annual
OPEB Cost
Contributed
Net OPEB
Obligation
61.78%
47.89%
49.60%
$
209,313
165,851
98,044
The funded status of the plan as of January 1, 2012, the most recent actuarial valuation date, was as
follows:
Actuarial accrued liability (AAL)
$
1,058,510
Actuarial value of plan assets
Unfunded Actuarial Accrued Liability (UAAL)
$
Funded ratio (actuarial value of plan assets/AAL)
Covered payroll (active plan members)
0%
$
UAAL as a percentage of covered payroll
- 73 -
1,058,510
11,088,099
9.5%
CITY OF NEENAH
E.
OTHER POSTEMPLOYMENT BENEFITS (cont.)
Actuarial valuations of an ongoing plan involve estimates for the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and annual required contributions of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates are made
about the future. The schedule of funding progress, presented as required supplementary information
following the notes to the financial statements, presents multiyear trend information that shows whether
the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan is
understood by the employer and plan members) and include the types of benefits provided at the time of
each valuation and the historical pattern of sharing benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are
designed to reduce short-term volatility in actuarial accrued liabilities and actuarial value of assets,
consistent with the long-term perspective of the calculations.
In the City’s actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial
valuation date was January 1, 2012. The actuarial assumptions include a 4% investment rate of return
and an annual healthcare cost trend rate of 9% initially, reduced by decrements to an ultimate rate of
5.5% after 6 years. Both rates include a 3% inflation assumption. The plan’s unfunded actuarial accrued
liability is being amortized as a level percentage of payroll on an open basis. The amortization period at
December 31, 2012 was 26 years.
The City’s OPEB plan does not issue a stand-alone financial report.
F.
SUBSEQUENT EVENTS
A sewer rate increase was approved and is effective January 2013.
On March 1, 2013 the City issued general obligation refunding bonds in the amount of $7,545,000 with an
average interest rate of 2.43% to refund existing bonds of the City, TIF Districts, sanitary, and storm
sewer.
On June 5, 2013 the City issued general obligation promissory notes in the amount of $5,270,000 with a
true interest cost of 1.84%. These proceeds will be used to fund various street projects, sanitary and
storm sewer projects, projects within TIF Districts and other capital improvement projects.
G.
EFFECT OF NEW ACCOUNTING STANDARDS ON CURRENT-PERIOD FINANCIAL STATEMENTS
The Governmental Accounting Standards Board (GASB) has approved GASB Statement No. 61, The
Financial Reporting Entity: Omnibus; Statement No. 65, Items Previously Reported as Assets and
Liabilities; Statement No. 66, Technical Corrections - 2012 - an amendment of GASB Statements No. 10
and No. 62; Statement No. 67, Financial Reporting for Pension Plans - an amendment of GASB
Statement No. 25; and Statement No. 68, Accounting and Financial Reporting for Pensions - an
amendment of GASB Statement No. 27. Application of these standards may restate portions of these
financial statements.
- 74 -
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF NEENAH
OTHER POSTEMPLOYMENT BENEFITS PLAN
SCHEDULE OF FUNDING PROGRESS
Actuarial
Valuation
Date
01/01/12
01/01/10
01/01/08
Actuarial
Value of
Assets
$
Actuarial Accrued
Liability (AAL)
Projected Unit
- $
-
1,058,510 $
1,279,401
1,240,180
Unfunded
AAL (UAAL)
Funded
Ratio
1,058,510
1,279,401
1,240,180
Covered
Payroll
0% $ 11,088,099
0%
10,955,068
0%
10,729,562
The City is required to present the above information for the three most recent actuarial studies.
See independent auditors’ report.
- 75 -
UAAL as a
Percentage
of Covered
Payroll
9.5%
11.7%
11.6%
MAJOR GOVERNMENTAL FUNDS AND BUDGETARY
COMPARISONS
GENERAL FUND
The general fund is the general operating fund of the City. It is used to account for all
financial resources except those required to be accounted for in another fund.
CITY OF NEENAH
GENERAL FUND
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES
BUDGET AND ACTUAL
Budgeted Amounts
Original
Final
TAXES
General property tax
Payment in lieu of taxes
Total Taxes
INTERGOVERNMENTAL REVENUES
State shared revenues
Highway maintenance aids
Police, fire, and library aids
Mass transit aids
Refund of prior year joint fire district payment
Total Intergovernmental Revenues
Actual
Variance with
Final Budget
12,214,702
31,911
12,246,613
2
(13,789)
(13,787)
2,281,360
1,097,160
67,500
271,150
3,717,170
2,279,759
1,097,363
73,027
232,913
55,642
3,738,704
(1,601)
203
5,527
(38,237)
55,642
21,534
(2,522)
1,620
400
(380)
(30)
(2,710)
747
$ 12,214,700
45,700
12,260,400
$ 12,214,700
45,700
12,260,400
2,281,360
1,097,160
67,500
271,150
3,717,170
$
LICENSES AND PERMITS
Licenses
Liquor and malt beverage
Operators
Cigarette
Electrical contractor
Furnace
Dog and cat
Sundry
Permits
Building
Electrical
Plumbing
Furnace
Sundry
Total Licenses and Permits
24,000
15,000
2,500
5,500
2,000
9,000
2,800
24,000
15,000
2,500
5,500
2,000
9,000
2,800
21,478
16,620
2,900
5,120
1,970
6,290
3,547
95,000
30,000
22,000
22,000
17,120
246,920
95,000
30,000
22,000
22,000
17,120
246,920
183,759
32,757
32,598
53,859
20,255
381,153
88,759
2,757
10,598
31,859
3,135
134,233
FINES, FORFEITURES AND PENALTIES
Court fines
Miscellaneous
Total Fines, Forfeitures and Penalties
142,500
2,000
144,500
142,500
2,000
144,500
127,722
2,550
130,272
(14,778)
550
(14,228)
See auditors' report and accompanying notes to required supplementary information.
- 76 -
CITY OF NEENAH
GENERAL FUND
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES (cont.)
BUDGET AND ACTUAL
Budgeted Amounts
Original
Final
CHARGES FOR SERVICES
Other
General government
Public safety
Highway and street
Rental of City property
Public library
Cemetery
Park and recreation
Sundry
Total Other
Health and Welfare
School district fees
Health inspection fees
Miscellaneous
Total Health and Welfare
Total Charges for Services
$
INVESTMENT INCOME AND MISCELLANEOUS
Investment income
Miscellaneous general revenues
Total Investment Income and Miscellaneous
Total Revenues
OTHER FINANCING SOURCES
Transfers From
TIF District No. 5 fund
Community development block grant fund
Housing and business loans fund
Industrial development fund
Recycling fund
Other special revenue fund
Cemetery perpetual care fund
Sewer fund
Stormwater fund
Water utility fund - payment in lieu of tax
Water utility fund
Fleet management fund
Information systems fund
Parking utility fund
Benefit accrual fund
Total Transfers
Total Other Financing Sources
TOTAL REVENUES AND OTHER FINANCING SOURCES
702,480
216,060
67,700
67,900
763,050
83,770
475,750
15,000
2,391,710
$
702,480
216,060
67,700
67,900
763,050
83,770
475,750
15,000
2,391,710
Actual
$
680,070
186,727
84,485
73,626
762,512
73,890
490,801
13,200
2,365,311
$
(22,410)
(29,333)
16,785
5,726
(538)
(9,880)
15,051
(1,800)
(26,399)
88,500
86,640
1,050
176,190
2,567,900
88,500
86,640
1,050
176,190
2,567,900
44,245
91,555
517
136,317
2,501,628
(44,255)
4,915
(533)
(39,873)
(66,272)
435,000
379,300
814,300
19,751,190
435,000
379,300
814,300
19,751,190
256,958
408,338
665,296
19,663,666
(178,042)
29,038
(149,004)
(87,524)
64,600
47,100
78,100
93,100
28,000
57,500
21,700
55,000
15,000
775,210
382,470
1,059,260
32,270
25,000
27,500
107,150
300,000
3,168,960
1,150
3,170,110
64,600
47,100
78,100
93,100
28,000
57,500
21,700
55,000
15,000
775,210
382,470
1,059,260
32,270
25,000
27,500
107,150
300,000
3,168,960
1,150
3,170,110
65,633
48,240
85,678
89,320
35,000
57,500
21,700
55,000
65,673
23,172
840,517
306,790
1,097,696
32,278
25,000
27,500
108,880
300,000
3,285,577
2,820
3,288,397
1,033
1,140
7,578
(3,780)
7,000
65,673
8,172
65,307
(75,680)
38,436
8
1,730
116,617
1,670
118,287
$ 22,921,300
$ 22,921,300
$
22,952,063
- 77 -
Variance with
Final Budget
$
30,763
CITY OF NEENAH
GENERAL FUND
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES
BUDGET AND ACTUAL
Budgeted Amounts
Final
Original
CURRENT EXPENDITURES
GENERAL GOVERNMENT
Common council
Mayor's office
Finance
Municipal buildings
City attorney
Total General Government
PUBLIC SAFETY
Police Department
Operations
Police firing range
Police school liaison program
Community service officers/crossing guards
Capital outlay
Animal control
K-9 unit
Fire Department
Operations
Other
Pension
Police and fire commission
Total Public Safety
PUBLIC WORKS
Engineering
Repair of streets
Snow and ice control
Weed cutting
Forestry program
Street lighting
Municipal garage
Storm and sanitary sewers and drains
Refuse collection
Sewer inspection
Traffic control
Capital outlay
Sundry
Total Public Works
$
59,990
172,510
1,098,070
225,760
565,930
2,122,260
$
59,990
172,510
1,098,070
225,760
567,792
2,124,122
Actual
$
57,728
173,250
1,042,501
231,039
571,810
2,076,328
Variance with
Final Budget
$
2,262
(740)
55,569
(5,279)
(4,018)
47,794
5,835,160
21,750
261,950
129,350
23,350
420
-
5,843,260
21,750
261,950
121,250
37,334
420
-
5,689,046
24,228
250,098
102,403
35,303
291
65,673
154,214
(2,478)
11,852
18,847
2,031
129
(65,673)
4,717,090
4,717,090
4,653,101
63,989
14,920
5,300
11,009,290
14,920
5,300
11,023,274
14,920
2,633
10,837,696
2,667
185,578
626,340
357,480
520,230
54,220
149,340
580,290
405,300
318,230
683,840
57,250
268,360
14,780
7,710
4,043,370
636,340
356,480
466,000
54,220
149,340
578,290
405,300
317,230
681,840
112,150
266,360
14,780
7,710
4,046,040
618,247
476,291
401,057
43,943
204,188
570,848
416,381
338,758
623,445
71,300
294,970
7,165
12,243
4,078,836
18,093
(119,811)
64,943
10,277
(54,848)
7,442
(11,081)
(21,528)
58,395
40,850
(28,610)
7,615
(4,533)
(32,796)
- 78 -
CITY OF NEENAH
GENERAL FUND
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES (cont.)
BUDGET AND ACTUAL
Budgeted Amounts
Final
Original
PARKS, RECREATION AND EDUCATION
Administration
Capital outlay
Adult programs
Youth programs
Municipal pool and recreation building
Playground programs
Parks
Forestry
Other activities
Total Parks and Recreation
Library
Operations
Total Library
Total Parks, Recreation and Education
HEALTH AND WELFARE
Health Program
Nursing services
Assistance Program
Committee on Aging
Total Health and Welfare
COMMUNITY DEVELOPMENT
Operations
Celebrations and commemorations
Housing authority
Bus subsidy program
Older adult center
Conservation and development
Total Community Development
OTHER
Cemetery operations
Miscellaneous
Total Other
Total Expenditures
OTHER FINANCING USES
Transfers Out To
Dial-A-Ride
Total Other Financing Uses
TOTAL EXPENDITURES AND OTHER
FINANCING USES
$
512,950
1,400
37,070
29,330
260,790
75,250
807,650
63,600
40,620
1,828,660
$
512,950
1,400
37,070
29,330
260,790
75,250
807,650
63,600
40,620
1,828,660
Actual
$
520,436
1,400
36,996
27,170
261,879
80,493
817,194
58,217
38,144
1,841,929
Variance with
Final Budget
$
(7,486)
74
2,160
(1,089)
(5,243)
(9,544)
5,383
2,476
(13,269)
1,914,240
1,914,240
3,742,900
1,914,240
1,914,240
3,742,900
1,883,637
1,883,637
3,725,566
30,603
30,603
17,334
447,780
447,780
351,005
96,775
210
447,990
210
447,990
125
351,130
85
96,860
688,140
54,140
8,620
367,680
13,400
280,040
1,412,020
691,390
54,140
8,620
367,680
13,400
279,540
1,414,770
689,300
53,245
2,293
344,804
13,400
238,717
1,341,759
2,090
895
6,327
22,876
40,823
73,011
271,570
38,700
310,270
271,570
38,700
310,270
272,214
17,601
289,815
23,088,100
23,109,366
22,701,130
408,236
12,000
12,000
12,000
12,000
12,000
12,000
-
$ 23,100,100
$
23,121,366
$
22,713,130
- 79 -
(644)
21,099
20,455
$
408,236
SPECIAL REVENUE FUND
Special revenue funds are used to account for the proceeds from specific revenue sources
(other than expendable trusts or major capital projects) that are legally restricted to
expenditures for specific purposes.
TAX INCREMENTAL FINANCING (T.I.F.) DISTRICT #8
To account for receipt of district "incremental" property taxes and other revenues and
the corresponding program expenditures for Tax Incremental Financing District #8.
CITY OF NEENAH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
AND CHANGES IN FUND BALANCE (DEFICIT) - BUDGET AND ACTUAL TIF DISTRICT NO. 8 - SPECIAL REVENUE FUND (MAJOR FUND)
REVENUES
Taxes
Intergovernmental
Total Revenues
EXPENDITURES
Current
Debt Service
Total Expenditures
Excess (deficiency) of revenues over expenditures
Premium on debt
Transfers out
FUND BALANCE (DEFICIT) - Beginning
FUND BALANCE (DEFICIT) - Ending
Original and
Final
Budget
Actual
$ 1,300,963
85,534
31,000
1,417,497
$ 1,322,221
83,718
34,217
1,440,156
1,000
8,629
(7,629)
25,000
1,033,583
1,059,583
25,000
1,060,277
1,093,906
(26,694)
(34,323)
357,914
346,250
(11,664)
(774,748)
(774,748)
3,000
40,255
(770,970)
(727,715)
3,000
40,255
3,778
47,033
(416,834)
(381,465)
35,369
(3,954,258)
(3,954,258)
-
Variance with
Final Budget
$
$ (4,371,092) $ (4,335,723) $
- 80 -
21,258
(1,816)
3,217
22,659
35,369
CITY OF NEENAH
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2012
BUDGETARY INFORMATION
Budgetary information is derived from the annual operating budget and is presented using generally
accepted accounting principles and the modified accrual basis of accounting.
Excess expenditures and other financing uses over appropriations are as follows:
Final
Amended
Budget
Expenditures
Excess
General Fund
Public works
$ 4,046,040
1,828,660
$
4,078,836
1,841,929
$
32,796
13,269
TIF No. 8 – Special Revenue Fund
Debt service
1,000
1,058,583
See independent auditors’ report.
- 81 -
8,629
1,085,277
7,629
26,694
SUPPLEMENTARY INFORMATION
OTHER MAJOR FUNDS
DEBT SERVICE FUND
The debt service fund is used to account for the accumulation of resources for, and the
payment of, general long-term debt principal, interest and related costs (other than those
being financed by proprietary funds).
CITY OF NEENAH
BALANCE SHEET - DEBT SERVICE FUND
Debt Service
Fund
ASSETS
Receivables
Taxes
Special assessments
Other
$
598,531
3,459,943
321,317
6,650
900,000
TOTAL ASSETS
Liabilities
Accounts payable
Deferred revenue
Deferred special assessment revenue
Total Liabilities
$
5,286,441
$
34
3,210,000
321,317
3,531,351
Fund Balance
Restricted for debt service
Total Fund Balance
1,755,090
1,755,090
TOTAL LIABILITIES AND
FUND BALANCE
$
- 82 -
5,286,441
CITY OF NEENAH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL DEBT SERVICE (MAJOR FUND)
Final
Budget
REVENUES
Taxes
Intergovernmental
Special assessments
Total Revenues
$ 3,210,000
105,183
375,000
25,000
3,715,183
EXPENDITURES
Debt Service
Total Expenditures
Refunding bonds issued
Payment to fiscal agent for advance refunding
Premium on debt
Transfers in
FUND BALANCE - Beginning
- 83 -
$
3,210,000
105,183
391,991
2,590
3,709,764
Variance With
Final Budget
$
16,991
(22,410)
(5,419)
3,809,500
1,417,110
5,226,610
3,809,466
1,459,800
5,269,266
34
(42,690)
(42,656)
(1,511,427)
(1,559,502)
(48,075)
2,419,727
2,419,727
19,640
4,186,092
(3,485,965)
16,890
2,419,727
3,156,384
19,640
4,186,092
(3,485,965)
16,890
736,657
908,300
1,596,882
688,582
158,208
158,208
-
$ 1,066,508
FUND BALANCE - ENDING
Actual
$
1,755,090
$
688,582
CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities and equipment (other than those
financed by proprietary funds and trust funds). Funds are derived from general obligation
bond and note issues, certain Federal grants and other specific receipts.
Included in the Major Governmental Funds are:
PUBLIC INFRASTRUCTURE
To account for the financing and construction improvements of the City's streets,
utilities, and sidewalks, including special assessment revenue designated to fund
current and future capital projects.
To account for the financing and construction improvements of the City's Westside
Business Corridor.
To account for the financing and construction improvements of the City's Doty
Island and Riverwalk Zone redevelopment area.
CITY OF NEENAH
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL PUBLIC INFRASTRUCTURE - CAPITAL PROJECTS FUND (MAJOR FUND)
Final
Budget
REVENUES
$
EXPENDITURES
Capital Outlay
Actual
-
$
59,617
$
59,617
2,524,944
1,823,628
701,316
(2,524,944)
(1,764,011)
760,933
1,500,000
1,500,000
(1,024,944)
-
(264,011)
4,387,320
4,387,320
FUND BALANCE - Ending
$ 3,362,376
$ 4,123,309
- 84 -
Variance with
Final Budget
760,933
$
760,933
CITY OF NEENAH
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TIF DISTRICT NO. 7 - CAPITAL PROJECTS FUND (MAJOR FUND)
Final
Budget
REVENUES
$
EXPENDITURES
Capital Outlay
-
$
- 85 -
$
-
$
-
1,427,376
1,170,757
256,619
(1,427,376)
(1,170,757)
256,619
1,082,200
1,082,200
(345,176)
Variance with
Final Budget
Actual
-
(88,557)
1,096,553
1,096,553
751,377
$ 1,007,996
256,619
$
256,619
CITY OF NEENAH
AND CHANGES IN FUND BALANCE (DEFICIT) - BUDGET AND ACTUAL TIF DISTRICT NO. 8 - CAPITAL PROJECTS FUND (MAJOR FUND)
Final
Budget
REVENUES
Intergovernmental
Total Revenues
$
EXPENDITURES
Capital Outlay
$
- 86 -
Actual
-
$
680,407
112,763
793,170
Variance with
Final Budget
$
680,407
112,763
793,170
808,780
511,347
297,433
(808,780)
281,823
1,090,603
162,000
162,000
-
(646,780)
443,823
1,090,603
23,513
23,513
-
(623,267) $
467,336
$
1,090,603
NON-MAJOR GOVERNMENTAL FUNDS AND BUDGETARY COMPARISONS
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for the proceeds from specific revenue sources (other than expendable trusts or
major capital projects) that are legally restricted to expenditures for specific purposes.
To account for receipt of district "incremental" property taxes and other revenues and the corresponding program
expenditures for Tax Incremental Financing District #5.
COMMUNITY DEVELOPMENT BLOCK GRANT
To account for receipt of Federal grant proceeds and corresponding program expenditures.
HOUSING AND BUSINESS LOANS
To account for receipt of Federal and State grants and the corresponding program expenditures for housing
rehabilitation projects, homebuyer assistance projects and business loan projects.
INDUSTRIAL DEVELOPMENT
To account for receipt of County grants and corresponding program expenditures.
RECYCLING
To account for receipt of Federal and State grants and the corresponding program expenditures for recycling.
HEALTH GRANTS
To account for receipt of Federal and State grants and the corresponding program expenditures for health programs.
PARKS AND RECREATION
To account for monies received from private donations and bequests to finance specific Park and Recreation related
activities and the corresponding expenditures.
DIAL-A-RIDE
To account for the receipts and disbursements of the Neenah-Menasha Dial-A-Ride transportation program for the
elderly.
CIVIC AND SOCIAL
To account for monies provided by private donors to finance specific civic improvement and social related activities and
the corresponding expenditures.
CLOCKTOWER
To account for the receipt of borrowed and donated funds to finance the City Clock Tower renovation and maintenance.
LIBRARY
To account for monies provided by private donors to finance specific Library improvements and services, new City
library, and the corresponding expenditures.
OTHER TRUSTS
To account for monies provided by private donors to finance specific public safety equipment and services and the
corresponding expenditures.
CEMETERY PERPETUAL CARE
To account for monies invested in trust for the long-term perpetual care and maintenance of City-owned cemetery.
CEMETERY FLOWERS
To account for monies invested in trust to maintain flower distribution at City-owned cemetery.
WALNUTS
To account for monies provided by City employees through private donations and events to finance employee activities
and donations to various charities.
CAPITAL PROJECT FUNDS
Capital projects funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities and equipment (other than those
financed by proprietary funds and trust funds). Funds are derived from general obligation
bond and note issues, certain Federal grants and other specific receipts.
Included in the Non-Major Governmental Funds are:
To account for the financing and construction improvements of the City's
Downtown Business District.
To account for the financing and construction improvements of the City's Industrial
Park Center III.
REDEVELOPMENT
To account for the financing and construction of redevelopment throughout the
City.
FACILITIES
To account for the financing and construction of specific major City facilities
designated in the City's annual Capital Improvements Program.
CAPITAL EQUIPMENT
To account for the financing of the City's annual Capital Equipment Program.
EQUIPMENT REPLACEMENT
To account for the financing of the City’s Computer Replacement Fund.
NONMAJOR GOVERNMENTAL FUNDS
CITY OF NEENAH
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
TIF
District No. 5
ASSETS
Taxes receivable
Loans
Other receivables
Prepaid items
TOTAL ASSETS
Accounts payable
Due to other funds
Other liabilities
Deferred revenue
Total Liabilities
TIF
District No. 6
$
227,606
35,096
-
$
1
206,771
-
$
1
2,347,463
-
$
262,702
$
206,772
$
2,347,464
$
227,606
1,250,531
1,478,137
$
206,771
1,646,504
1,853,275
$
2,347,463
629,251
2,976,714
Fund Balances
Nonspendable:
Prepaid items
Restricted
Committed
Assigned
Total Fund Balances
(1,215,435)
(1,215,435)
FUND BALANCES
$
- 87 -
TIF
District No. 7
262,702
(1,646,503)
(1,646,503)
$
206,772
(629,250)
(629,250)
$
2,347,464
Continued on
Next Page
Community
Development
Block Grant
Housing/
Business
Loans
Industrial
Development
Health
Grants
Recycling
Parks and
Recreation
Dial-ARide
$
58,591
-
$
288,807
688,770
13,487
-
$
23,052
-
$
212,645
259,920
198,531
$
150,460
-
$
353,780
-
$
12,676
2,024
-
$
58,591
$
991,064
$
23,052
$
671,096
$
150,460
$
353,780
$
14,700
$
4,164
43,950
49,400
97,514
$
8,200
12,954
21,154
$
1,690
1,690
$
5,440
7,240
259,830
272,510
$
-
$
-
$
6,250
6,250
(38,923)
(38,923)
$
58,591
969,910
969,910
$
991,064
21,362
21,362
$
23,052
198,531
200,055
398,586
$
- 88 -
671,096
150,460
150,460
$
150,460
353,780
353,780
$
353,780
8,450
8,450
$
14,700
CITY OF NEENAH
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS (cont.)
Civic
and
Social
Library
Clock Tower
Renovations
Cemetery
Perpetual
Care
Other
Cemetery
Flowers
ASSETS
Taxes receivable
Loans
Other receivables
Prepaid items
$ 108,340
-
$
958,222
323
-
$
25
-
$
120,754
8,693
-
$
1,196,784
7,848
-
$
181,327
-
TOTAL ASSETS
$ 108,340
$
958,545
$
25
$
129,447
$
1,204,632
$
181,327
$
$
816
816
$
-
$
1,701
1,650
1,251
4,602
$
-
$
-
Accounts payable
Due to other funds
Other liabilities
Deferred revenue
Total Liabilities
21
21
Fund Balances
Nonspendable:
Prepaid items
Restricted
Committed
Assigned
Total Fund Balances
108,319
108,319
FUND BALANCES
$ 108,340
323
957,406
957,729
$
958,545
- 89 -
25
25
$
25
124,845
124,845
$
129,447
1,204,632
1,204,632
$
1,204,632
181,327
181,327
$
181,327
Continued on
Next Page
TIF
District No. 5
Walnut
TIF
District No. 6
Redevelopment
Capital
Equipment
Facilities
$
721
-
$
9,632
76,410
-
$
12
217,100
$
29,569
-
$
2
-
$
518,514
-
$
721
$
86,042
$
217,112
$
29,569
$
2
$
518,514
$
-
$
158
158
$
90
90
$
8,823
8,823
$
28,915
62,120
91,035
$
38,729
38,729
721
721
$
721
85,884
85,884
$
86,042
217,022
217,022
$
217,112
20,746
20,746
$
- 90 -
29,569
(91,033)
(91,033)
$
2
479,785
479,785
$
518,514
Continued From
Previous Page
CITY OF NEENAH
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS (cont.)
Capital
Project
Funds
Equipment
Replacement
ASSETS
Taxes receivable
Loans
Other receivables
Prepaid items
TOTAL ASSETS
Accounts payable
Due to other funds
Other liabilities
Deferred revenue
Total Liabilities
Total
Nonmajor
Governmental
Funds
$
173,141
7,627
-
$
4,397,056
3,041,760
688,770
143,558
7,950
415,631
$
180,768
$
8,694,725
$
14,886
14,886
$
119,883
107,720
70,845
3,041,670
3,526,286
6,866,404
Fund Balances
Nonspendable:
Prepaid items
Restricted
Committed
Assigned
Total Fund Balances
7,627
158,255
165,882
FUND BALANCES
$
- 91 -
180,768
7,950
198,531
3,585,339
998,859
658,786
(3,621,144)
1,828,321
$
8,694,725
CITY OF NEENAH
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS
TIF
District No. 5
REVENUES
Taxes
Intergovernmental
Contributions
Total Revenues
$
EXPENDITURES
Current
Public safety
Recycling
Health and welfare
Capital Outlay
Debt Service
Total Expenditures
238,217
11,914
144,684
394,815
TIF
District No. 6
$
183,184
1,211
184,395
TIF
District No. 7
$
1,295,707
26,106
1,250
1,323,063
-
-
-
5,703
5,703
6,264
6,264
39,943
39,943
Excess (deficiency) of revenues over
expenditures
389,112
178,131
1,283,120
Premium on debt
Transfers in
Transfers out
2,438
(186,437)
(183,999)
9,991
(321,796)
(311,805)
17,800
44,048
(1,429,395)
(1,367,547)
Net Change in Fund Balances
205,113
(133,674)
(84,427)
(1,512,829)
(544,823)
(1,420,548)
$ (1,215,435) $ (1,646,503) $
- 92 -
(629,250)
Continued on
Next Page
Community
Development
Block Grant
$
$
203,334
54
203,388
Housing/
Business
Loans
$
4,310
4,310
Industrial
Development
$
11,013
11,013
Health
Grants
Recycling
$
97,300
533,352
$
Parks and
Recreation
15,219
645,871
29,603
29,603
$
Dial-ARide
25,923
544
26,467
$
29,700
8,500
38,200
163,168
-
20,974
-
3,759
-
519,326
-
32,299
-
27,783
-
43,237
-
163,168
20,974
3,759
519,326
32,299
27,783
43,237
40,220
(16,664)
7,254
126,545
(2,696)
(1,316)
(5,037)
(119,868)
(119,868)
84,868
(57,500)
27,368
(21,700)
(21,700)
(55,000)
(55,000)
(79,648)
10,704
(14,446)
71,545
40,725
959,206
35,808
327,041
(38,923) $
969,910
$
21,362
$
398,586
- 93 -
-
-
(2,696)
(1,316)
153,156
$
150,460
12,000
12,000
6,963
355,096
$
353,780
1,487
$
8,450
CITY OF NEENAH
CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS (cont.)
Civic
and
Social
REVENUES
Taxes
Intergovernmental
Contributions
Total Revenues
$
EXPENDITURES
Current
Public safety
Recycling
Health and welfare
Capital Outlay
Debt Service
Total Expenditures
22,049
134
22,183
Clock Tower
Renovations
Library
$
18,889
100,146
119,035
$
Other
25
25
$
48,695
40,146
122
88,963
30,173
-
51,380
-
-
83,439
-
30,173
51,380
-
83,439
expenditures
(7,990)
67,655
25
5,524
Premium on debt
Transfers in
Transfers out
13,810
13,810
-
-
(65,673)
(65,673)
5,820
67,655
25
(60,149)
102,499
890,074
-
$
- 94 -
108,319
$
957,729
$
25
184,994
$
124,845
Continued on
Next Page
Cemetery
Perpetual
Care
$
Cemetery
Flowers
61,006
61,006
$
281
281
$
821
821
$
76,410
76,410
TIF
District No. 6
$
Redevelopment
-
$
-
-
3,120
-
939
-
92,849
11,057
12,210
-
3,120
939
92,849
11,057
12,210
(2,839)
(118)
(16,439)
(11,057)
(12,210)
360,000
360,000
10,000
10,000
(118)
343,561
(1,057)
839
(257,677)
61,006
(23,172)
(23,172)
-
37,834
1,204,632
-
(2,839)
1,166,798
$
TIF
District No. 5
Walnut
184,166
$
181,327
$
721
$
- 95 -
85,884
(12,210)
218,079
$
217,022
32,956
$
20,746
Continued From
Previous Page
CITY OF NEENAH
CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS (cont.)
Facilities
REVENUES
Taxes
Intergovernmental
Contributions
Total Revenues
$
EXPENDITURES
Current
Public safety
Recycling
Health and welfare
Capital Outlay
Debt Service
Total Expenditures
160,318
250,000
410,318
Capital
Equipment
$
-
Total
Nonmajor
Governmental
Funds
Equipment
Replacement
$
35,191
35,191
914,189
255,871
83,439
519,326
79,163
35,419
262,250
2,383,137
1,096,961
914,189
255,871
51,910
3,414,644
(220,680)
(686,643)
(914,189)
Premium on debt
Transfers in
Transfers out
427,350
427,350
618,010
618,010
(259,293)
(296,179)
(220,680)
168,260
775,964
386,562
(91,033) $
479,785
$
- 96 -
1,814,408
1,131,656
365,507
363,787
3,675,358
1,096,961
expenditures
$
260,714
-
$
165,882
1,433,160
56,477
13,810
96,868
(2,280,541)
(680,226)
(419,512)
2,247,833
$
1,828,321
CITY OF NEENAH
AND CHANGES IN FUND BALANCE (DEFICIT) - BUDGET AND ACTUAL TIF DISTRICT NO. 5 - SPECIAL REVENUE FUND
Final
Budget
REVENUES
Taxes
Intergovernmental
Total Revenues
$
EXPENDITURES
Debt Service
243,386
13,172
256,558
Actual
$
238,217
11,914
144,684
394,815
1,000
5,703
255,558
389,112
Premium on debt
Transfers out
(185,404)
(185,404)
2,438
(186,437)
(183,999)
70,154
205,113
Excess of revenues over expenditures
(1,420,548)
Variance with
Final Budget
$
(1,420,548)
$ (1,350,394) $ (1,215,435) $
- 97 -
(5,169)
(1,258)
144,684
138,257
(4,703)
133,554
2,438
(1,033)
1,405
134,959
134,959
CITY OF NEENAH
Final
Budget
REVENUES
Taxes
Intergovernmental
Total Revenues
$
EXPENDITURES
Debt Service
Premium on debt
Transfers out
187,159
1,237
188,396
Actual
$
183,184
1,211
184,395
Variance with
Final Budget
$
1,000
6,264
(5,264)
187,396
178,131
(9,265)
1,000
(320,657)
(319,657)
9,991
(321,796)
(311,805)
8,991
(1,139)
7,852
(132,261)
(133,674)
(1,413)
(1,512,829)
(1,512,829)
$ (1,645,090) $ (1,646,503) $
- 98 -
(3,975)
(26)
(4,001)
(1,413)
CITY OF NEENAH
Final
Budget
REVENUES
Taxes
Intergovernmental
Total Revenues
$ 1,323,818
26,672
1,000
1,351,490
EXPENDITURES
Current
Community Development
Debt Service
Total Expenditures
Variance with
Final Budget
Actual
$
1,295,707
26,106
1,250
1,323,063
$
(28,111)
(566)
250
(28,427)
1,000
-
1,000
39,943
39,943
(39,943)
(38,943)
1,350,490
1,283,120
(67,370)
(1,421,817)
(1,421,817)
17,800
44,048
(1,429,395)
(1,367,547)
17,800
44,048
(7,578)
54,270
(71,327)
(84,427)
(13,100)
(544,823)
(544,823)
$ (616,150) $
Premium on debt
Transfers out
- 99 -
(629,250) $
1,000
(13,100)
CITY OF NEENAH
AND CHANGES IN FUND BALANCE (DEFICIT) - BUDGET AND ACTUAL COMMUNITY DEVELOPMENT BLOCK GRANT - SPECIAL REVENUE FUND
Final
Budget
REVENUES
Intergovernmental
Total Revenues
$
EXPENDITURES
Current
Transfers out
Actual
195,000
195,000
$
- 100 -
$
$
8,334
54
8,388
195,000
163,168
31,832
-
40,220
40,220
-
(119,868)
(119,868)
-
(79,648)
(79,648)
40,725
203,334
54
203,388
Variance with
Final Budget
40,725
40,725
$
(38,923) $
(79,648)
CITY OF NEENAH
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL HOUSING AND BUSINESS LOANS - SPECIAL REVENUE FUND
Final
Budget
REVENUES
Intergovernmental
Total Revenues
$
EXPENDITURES
Current
25,000
3,000
28,000
Actual
$
4,310
4,310
Variance with
Final Budget
$
(25,000)
1,310
(23,690)
1,950
20,974
(19,024)
26,050
(16,664)
(42,714)
Transfers in
Transfers out
25,000
(52,820)
(27,820)
84,868
(57,500)
27,368
59,868
(4,680)
55,188
(1,770)
10,704
12,474
959,206
-
959,206
$
- 101 -
957,436
$
969,910
$
12,474
CITY OF NEENAH
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL INDUSTRIAL DEVELOPMENT - SPECIAL REVENUE FUND
Final
Budget
REVENUES
Intergovernmental
$
EXPENDITURES
Current
Transfers out
$
- 102 -
12,000
Actual
$
11,013
Variance with
Final Budget
$
(987)
5,000
3,759
1,241
7,000
7,254
254
(16,700)
(21,700)
(5,000)
(9,700)
(14,446)
(4,746)
35,808
35,808
26,108
$
21,362
$
(4,746)
CITY OF NEENAH
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL RECYCLING - SPECIAL REVENUE FUND
Final
Budget
REVENUES
Taxes
Intergovernmental
Total Revenues
$
EXPENDITURES
Current
Recycling
Transfers out
$
- 103 -
97,300
416,850
10,000
524,150
Actual
$
97,300
533,352
15,219
645,871
Variance with
Final Budget
$
116,502
5,219
121,721
490,500
519,326
(28,826)
33,650
126,545
92,895
(55,000)
(55,000)
(21,350)
71,545
92,895
327,041
327,041
-
305,691
$
398,586
-
$
92,895
CITY OF NEENAH
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL HEALTH GRANTS - SPECIAL REVENUE FUND
Final
Budget
REVENUES
Intergovernmental
$
EXPENDITURES
Current
Health and welfare
63,451
Actual
$
$
- 104 -
$
(33,848)
181,189
32,299
148,890
(117,738)
(2,696)
115,042
153,156
29,603
Variance with
Final Budget
35,418
153,156
$
150,460
$
115,042
CITY OF NEENAH
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL PARKS AND RECREATION - SPECIAL REVENUE FUND
Final
Budget
REVENUES
Contributions
Total Revenues
$
EXPENDITURES
Current
38,000
700
38,700
Actual
$
38,000
700
355,096
$
- 105 -
355,796
25,923
544
26,467
Variance with
Final Budget
$
27,783
10,217
(1,316)
(2,016)
355,096
$
(12,077)
(156)
(12,233)
353,780
$
(2,016)
CITY OF NEENAH
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DIAL-A-RIDE - SPECIAL REVENUE FUND
Final
Budget
REVENUES
Intergovernmental
Contributions
Total Revenues
$
EXPENDITURES
Current
Actual
49,500
49,500
$
49,500
Transfers in
$
- 106 -
29,700
8,500
38,200
Variance with
Final Budget
$
(19,800)
8,500
(11,300)
43,237
6,263
-
(5,037)
(5,037)
-
12,000
12,000
-
6,963
6,963
1,487
1,487
-
1,487
$
8,450
$
6,963
CITY OF NEENAH
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CIVIC AND SOCIAL - SPECIAL REVENUE FUND
Final
Budget
REVENUES
Contributions
Total Revenues
$
EXPENDITURES
Current
$
- 107 -
26,550
60
26,610
Actual
$
22,049
134
22,183
Variance with
Final Budget
$
(4,501)
74
(4,427)
37,000
30,173
6,827
(10,390)
(7,990)
2,400
14,400
13,810
4,010
5,820
1,810
102,499
102,499
-
106,509
$
108,319
(590)
$
1,810
CITY OF NEENAH
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL LIBRARY - SPECIAL REVENUE FUND
Final
Budget
REVENUES
Contributions
Total Revenues
$
35,000
20,000
55,000
Actual
$
18,889
100,146
119,035
Variance with
Final Budget
$
(16,111)
80,146
64,035
EXPENDITURES
Current
Parks, recreation and education
50,000
51,380
(1,380)
5,000
67,655
62,655
890,074
890,074
-
$
- 108 -
895,074
$
957,729
$
62,655
CITY OF NEENAH
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL OTHER - SPECIAL REVENUE FUND
Final
Budget
REVENUES
Intergovernmental
Contributions
Total Revenues
$
EXPENDITURES
Current
Public safety
Transfers out
Actual
36,640
100,000
100
136,740
$
$
- 109 -
$
12,055
(59,854)
22
(47,777)
236,640
83,439
153,201
(99,900)
5,524
105,424
(65,673)
(65,673)
(99,900)
(60,149)
39,751
184,994
184,994
-
48,695
40,146
122
88,963
Variance with
Final Budget
85,094
$
124,845
$
39,751
CITY OF NEENAH
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CEMETERY PERPETUAL CARE - SPECIAL REVENUE FUND
Final
Budget
REVENUES
$
EXPENDITURES
Transfers out
- 110 -
Variance with
Final Budget
Actual
40,000
$
61,006
$
21,006
-
-
-
40,000
61,006
21,006
(20,000)
(23,172)
(3,172)
20,000
37,834
17,834
1,166,798
1,166,798
-
$ 1,186,798
$ 1,204,632
$
17,834
CITY OF NEENAH
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CEMETERY FLOWERS - SPECIAL REVENUE FUND
Final
Budget
REVENUES
$
EXPENDITURES
Current
Health and welfare
300
Actual
$
$
- 111 -
$
(19)
9,000
3,120
5,880
(8,700)
(2,839)
5,861
184,166
281
Variance with
Final Budget
175,466
184,166
$
181,327
$
5,861
CITY OF NEENAH
AND CHANGES IN FUND BALANCE (DEFICIT) - BUDGET AND ACTUAL TIF DISTRICT NO. 5 - CAPITAL PROJECTS FUND
Final
Budget
REVENUES
Intergovernmental
$
EXPENDITURES
Capital Outlay
Capital improvements
$
- 112 -
Actual
-
$
76,410
Variance with
Final Budget
$
76,410
414,550
92,849
321,701
(414,550)
(16,439)
398,111
360,000
360,000
-
(54,550)
343,561
398,111
(257,677)
(257,677)
(312,227) $
85,884
$
398,111
CITY OF NEENAH
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TIF DISTRICT NO. 6 - CAPITAL PROJECTS FUND
Final
Budget
$
REVENUES
EXPENDITURES
Capital Outlay
-
$
$
- 113 -
-
$
-
200,000
11,057
188,943
(200,000)
(11,057)
188,943
10,000
10,000
(190,000)
(1,057)
28,079
188,943
218,079
218,079
Variance with
Final Budget
Actual
$
217,022
$
188,943
CITY OF NEENAH
AND CHANGES IN FUND BALANCE (DEFICIT) - BUDGET AND ACTUAL FACILITIES - CAPITAL PROJECTS FUND
Final
Budget
REVENUES
Intergovernmental
Contributions
$
Total Revenues
EXPENDITURES
Capital Outlay
Actual
-
$
582,505
$
- 114 -
160,318
250,000
410,318
$
1,096,961
(582,505)
(686,643)
427,350
427,350
(155,155)
(259,293)
168,260
168,260
13,105
Variance with
Final Budget
$
(91,033) $
160,318
250,000
410,318
(514,456)
(104,138)
(104,138)
(104,138)
CITY OF NEENAH
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CAPITAL EQUIPMENT - CAPITAL PROJECTS FUND
Final
Budget
$
REVENUES
EXPENDITURES
Capital Outlay
$
- 115 -
Variance with
Final Budget
Actual
-
$
-
$
-
1,044,594
914,189
130,405
(1,044,594)
(914,189)
130,405
618,010
618,010
(426,584)
(296,179)
775,964
775,964
349,380
$
479,785
130,405
$
130,405
CITY OF NEENAH
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL EQUIPMENT REPLACEMENT - CAPITAL PROJECTS FUND
Final
Budget
REVENUES
$
EXPENDITURES
Capital Outlay
$
- 116 -
29,320
Actual
$
35,191
Variance with
Final Budget
$
5,871
289,996
255,871
34,125
(260,676)
(220,680)
39,996
386,562
386,562
125,886
$
165,882
$
39,996
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services provided
by one department or agency to other departments or agencies of the City, or to other
governments on a cost-reimbursement basis.
FLEET MANAGEMENT
To account for service and maintenance performed on all City-owned vehicles and
equipment. Revenue is earned through charges for services to affected City
departments.
BENEFIT ACCRUAL
To account for collections from City departments and employees used to finance
the City's employee fringe benefits plan including health and dental selfinsurance programs.
INSURANCE
To account for the provision of casualty insurance and risk protection to the
organizations and agencies of the City. All charges and expenses to provide
such services are accounted for in this fund.
INFORMATION SYSTEMS
To account for I/T and printing services provided to all city departments and outside
entities. Revenue is earned through charges for services to affected City
departments and outside entities.
CITY OF NEENAH
COMBINING STATEMENT OF NET POSITION - INTERNAL SERVICE FUNDS
Fleet
Management
ASSETS
Current Assets
Accounts receivable
Inventories
Prepaid items
$
Non Current Assets
Total Non Current Assets
116,606
6,363
197,650
750
321,369
Benefit
Accrual
$
3
157,472
68,070
40,833
266,378
Information
Systems
Insurance
$
357,903
357,903
$
Totals
1
10,188
32,772
42,961
$
474,513
174,023
68,070
197,650
74,355
988,611
-
3,085,960
3,085,960
1,117,155
1,117,155
-
1,117,155
3,085,960
4,203,115
321,369
3,352,338
1,475,058
42,961
5,191,726
LIABILITIES
Current Liabilities
Accounts payable
Claims payable
Due to other funds
Unearned revenues
Compensated absences payable
27,690
27,690
196,626
352,586
17,649
769,669
1,336,530
1,254
161,736
162,990
1,087
22,470
2,141
25,698
226,657
514,322
22,470
17,649
771,810
1,552,908
Compensated absences payable
Total Noncurrent Liabilities
12,675
5,080
17,755
1,262,463
1,262,463
-
14,354
5,768
20,122
1,289,492
10,848
1,300,340
45,445
2,598,993
162,990
45,820
2,853,248
275,924
753,345
1,312,068
(2,859)
2,338,478
753,345
$ 1,312,068
(2,859) $
2,338,478
Total Assets
Total Liabilities
NET POSITION
Unrestricted (Deficit)
TOTAL NET POSITION (DEFICIT)
$
275,924
$
- 117 -
$
CITY OF NEENAH
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS
Fleet
Management
OPERATING REVENUES
$
Benefit
Accrual
624,294
624,294
$ 7,782,336
7,782,336
566,760
566,760
3,445,125
4,308,420
7,753,545
57,534
28,791
(25,000)
(300,000)
Change in Net Position
32,534
(271,209)
243,390
Total Revenues
OPERATING EXPENSES
Information technology
Retirement system expense
Public works
Health claims and other employee benefits
Contractual services
Operating Income (Loss)
NONOPERATING EXPENSES
Transfers out
TOTAL NET POSITION (DEFICIT) - Ending
$
275,924
- 118 -
$
Information
Systems
Insurance
$
50,000
50,000
$ 637,237
637,237
214,660
214,660
628,376
628,376
(164,660)
(164,660)
1,024,554
1,476,728
753,345
$ 1,312,068
$
Totals
$
9,093,867
9,093,867
628,376
3,445,125
566,760
4,308,420
214,660
9,163,341
8,861
(69,474)
(27,500)
(352,500)
(18,639)
(421,974)
15,780
2,760,452
(2,859) $
2,338,478
CITY OF NEENAH
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
Fleet
Management
CASH FLOWS FROM OPERATING ACTIVITIES
Received from other funds of the city
Paid to suppliers for goods and services
Net Cash Provided by Operating Activities
$
(25,000)
(25,000)
Net Increase (Decrease) in Cash
and Cash Equivalents
CASH AND CASH EQUIVALENTS - Beginning
RECONCILIATION OF OPERATING INCOME TO
NET CASH FROM OPERATING ACTIVITIES
Operating income (loss)
Adjustments to operating income
to net cash flows from operating activities:
Change in assets and liabilities:
Accounts receivable
Inventories
Prepaid items
Accounts payable
Claims payable
Unearned revenue
NET CASH FLOWS FROM OPERATING ACTIVITIES
(27,500)
(27,500)
356,440
(352,500)
3,940
64,306
(47)
92,636
(8,157)
148,738
52,300
50
265,267
8,158
325,775
$
3
$
57,534
$
(1,393)
9,843
(730)
21,962
1,038
1,052
None
- 119 -
166,970 $ 635,386 $ 9,013,338
(74,334)
(616,043) (8,868,540)
92,636
19,343
144,798
-
116,606
NONCASH ACTIVITIES
Totals
356,440
(300,000)
56,440
$
$
Information
Systems
Insurance
622,901 $ 7,588,081 $
(533,595) (7,644,568)
89,306
(56,487)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Advances for cash deficits
Transfers out
Net Cash Used by Noncapital Financing Activities
CASH AND CASH EQUIVALENTS - ENDING
Benefit
Accrual
89,306
$
$
$
1
$
474,513
28,791
$ (164,660) $
8,861
$
(69,474)
(121,098)
(68,070)
(33,363)
(56,899)
24,611
(5,087)
174,628
-
116,970
(6,410)
146,736
-
(1,851)
22,470
(11,461)
(1,461)
1,433
1,352
(56,487) $
357,903
92,636
$
19,343
(124,342)
71,370
9,843
(45,554)
(42,808)
171,347
(5,087)
2,471
174,628
2,404
$
144,798
FIDUCIARY FUNDS
Agency funds are used to account for assets held by the City in a trustee capacity or as an
agent for individuals, private organizations, or other government units. These include
Expendable Trusts, Nonexpendable Trusts, and Agency funds. Agency funds are
custodial in nature (assets equal liabilities) and do not involve measurement of results of
operations.
AGENCY FUNDS
ADVANCE TAX COLLECTIONS
To account for the advance City collections of property taxes and the
corresponding liability to other governmental units.
MUNICIPAL COURT
To account for the receipts and disbursements of the Menasha-Neenah Joint
Municipal Court.
NEENAH-MENASHA FIRE RESCUE
To account for the assets and liabilities for the Neenah-Menasha Fire Rescue
which began on January 1, 2003.
OTHER
To account for the assets and liabilities of a security deposit held by the City for
Time Warner Cable.
CITY OF NEENAH
COMBINING STATEMENT OF CHANGES IN ASSETS
AND LIABILITIES - ALL AGENCY FUNDS
Balance
January 1, 2012
ADVANCE TAX COLLECTIONS
Assets
TOTAL ASSETS
Liabilities
Accounts payable
TOTAL LIABILITIES
MUNICIPAL COURT
Assets
Accounts receivable
TOTAL ASSETS
Liabilities
Accounts payable
Accrued liabilities
TOTAL LIABILITIES
NEENAH MENASHA FIRE RESCUE
Assets
Accounts receivable
TOTAL ASSETS
Liabilities
Accounts payable
Accrued liabilities
Deposits
TOTAL LIABILITIES
OTHER
Assets
Liabilities
Accounts payable
Balance
December 31, 2012
Additions
Deductions
19,918,760
9,216,175
29,134,935
$ 20,595,656
7,878,820
$ 28,474,476
$ 19,918,760
9,216,175
$ 29,134,935
$
34,228
29,100,707
29,134,935
$
6,917
28,467,559
$ 28,474,476
$
34,228
29,100,707
$ 29,134,935
$
109
50
195,890
196,049
$
107
79
211,000
211,186
$
109
50
195,890
196,049
$
54,951
2,195
138,903
196,049
$
54,143
3,440
153,603
211,186
$
54,951
2,195
138,903
196,049
$
1,731,531
4,105
1,735,636
$
1,738,363
12,398
1,750,761
$
1,731,531
4,105
1,735,636
$
$
$
44,844
1,265,541
391
424,860
1,735,636
$
$
36,889
1,384,181
329,691
1,750,761
$
$
44,844
1,265,541
391
424,860
1,735,636
$
36,889
1,384,181
329,691
1,750,761
$
5,033
$
-
$
-
$
5,033
$
5,033
$
-
$
-
$
5,033
$
$
$
$
$
$
$
$
$
$
$
- 120 -
$
$
$
$
$
$
$
$
$
$
$
20,595,656
7,878,820
28,474,476
6,917
28,467,559
28,474,476
107
79
211,000
211,186
54,143
3,440
153,603
211,186
1,738,363
12,398
1,750,761
CITY OF NEENAH
COMBINING STATEMENT OF CHANGES IN ASSETS
AND LIABILITIES - ALL AGENCY FUNDS
Balance
January 1, 2012
TOTAL - ALL AGENCY FUNDS
Assets
Accounts receivable
TOTAL ASSETS
Liabilities
Accounts payable
Accrued liabilities
Deposits
TOTAL LIABILITIES
Additions
Deductions
Balance
December 31, 2012
$
21,655,433
9,216,175
4,155
195,890
$ 22,334,126
7,878,820
12,477
211,000
$ 21,650,400
9,216,175
4,155
195,890
$
22,339,159
7,878,820
12,477
211,000
$
31,071,653
$ 30,436,423
$ 31,066,620
$
30,441,456
$
139,056
1,267,736
391
29,525,567
138,903
$
$
134,023
1,267,736
391
29,525,567
138,903
$
102,982
1,387,621
28,797,250
153,603
$
31,071,653
$ 30,436,423
$ 31,066,620
$
30,441,456
- 121 -
97,949
1,387,621
28,797,250
153,603
MENASHA-NEENAH MUNICIPAL COURT
OPERATING FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE
REVENUES
Court Fines and Penalties
City of Neenah
City of Menasha
Total Revenues
$
EXPENDITURES
Salaries
Fringes
School/Seminars/Training
Postage and Printing
Audit services
Maintenance of office equipment
Telephone
Dues and memberships
Translator
Debit card services
Office Supplies
Rental of equipment
Computer software
I/S services
Small hardware
Software maintenance
Witness fees
City of Menasha
State of Wisconsin
Winnebago County
City of Neenah
Total Expenditures
307,280
190,902
498,182
72,424
26,514
115
408
1,300
307
142
765
205
783
807
1,086
308
5,904
602
4,579
186
84,394
128,943
61,056
122,464
513,292
Expenditures Over (under) Revenues
(15,110)
FUND BALANCE (DEFICIT) - Beginning of Year
(195,890)
FUND BALANCE (DEFICIT) - END OF YEAR
$
(211,000)
The transactions of the Menasha-Neenah Municipal Court are audited as a part of the City of
Neenah. The municipal court fund is accounted for as an agency fund in the City of Neenah's financial
statements. The above schedule of revenues, expenditures and changes in fund balance is included
for purposes of the Menasha-Neenah Municipal Court.
- 122 -
NEENAH-MENASHA FIRE RESCUE
OPERATING FUND
SCHEDULE OF CASH COLLECTIONS, DISBURSEMENTS, AND CHANGES
IN THE CASH BALANCE
CASH BALANCE - BEGINNING OF YEAR
$
1,731,531
CASH COLLECTIONS
Fire protection fees
City of Neenah
City of Menasha
Subtotal
Transfer from Public Safety
Interest on investments
Other
Total Cash Collections
4,669,902
3,141,077
7,810,979
27,761
2,279
4,769
2,500
7,848,288
CASH DISBURSEMENTS
Salaries
Fringes
School/seminars/training
Dues and memberships
Employee recognition awards
Conferences and meetings
Clothing allowance
Postage
Insurance
Office supplies
Safety and other supplies
Protective equipment
All other equipment
Maintenance of software
Maintenance of PPE/SCBA
Computer hardware and software and printers/copiers
Electricity
Natural gas
Telephone and cell phone
Utilities
O t id services
Outside
i
Professional services
Gasoline and oil
Vehicles
Training
Commercial dumpster
Equipment maintenance and rental
Other facility outlay
Cleaning
FVTC reimbursements
Finance services
I/S services
HR services
Miscellaneous
Total Cash Disbursements
4,737,743
2,409,917
8,953
695
284
1,038
29,457
589
39,792
2,018
5,739
34261
100,524
9,050
3,218
10,672
57,327
23,955
6,733
13,669
18 720
18,720
8,721
32,092
63,284
5,983
320
9,653
4,411
11,669
(13,978)
21,170
103,376
27,060
3,963
7,792,078
Collections over Disbursements
56,210
Reconciling items to account for conversion from modified accrual to cash basis:
Change in accounts receivable
Change in accounts payable
Change in accrued liabilities
Change in deposits
Change in due to other governments
6,102
(7,955)
118,640
(391)
(165,774)
(49,378)
Total reconciling items
CASH BALANCE - END OF YEAR
,
,
1,738,363
Cash assigned for:
Distribution back to Neenah
2012 Operating Funds Not Spent
Distribution back to Menasha
2012 Operating Funds Not Spent
Distribution of future benefits
Payment of outstanding vendor invoices
45,558
$
30,652
1,626,010
36,143
1,738,363
The transactions of the Neenah-Menasha Fire Rescue are audited as a part of the City of Neenah. The Fire Rescue is
accounted for as an agency fund in the City of Neenah's financial statements. The above schedule of cash collections,
disbursements, and changes in cash balances is included for purposes of the Neenah-Menasha Fire Rescue.
- 123 -
CITY OF NEENAH
PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
Beginning of Project to December 31, 2012
TIF DISTRICT NO. 5 FUND
TOTAL AUTHORIZATIONS
REVENUES AND OTHER FINANCING SOURCES
Intergovernmental
Special assessments
Contributions
Transfers in
Sale of city properties
Total Revenues and Other Financing Sources
EXPENDITURES AND OTHER FINANCING USES
Transfers out
Total Expenditures and Other Financing Uses
FUND BALANCE - December 31, 2012
$
7,872,808
$
76,410
25,000
18,986
877
5,966,700
1,902,871
150,000
8,140,844
$
$
$
7,974,147
80,813
8,054,960
$
85,884
$
4,738,836
$
72,597
5,475,836
216,648
5,765,081
Intergovernmental
Sales of city properties
Transfers out
- 124 -
$
$
$
3,795,083
1,752,976
5,548,059
$
217,022
CITY OF NEENAH
PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
Beginning of Project to December 31, 2012
$
13,385,000
$
Intergovernmental
Special assessments
Contributions
Sales of city properties
$
147,236
58,049
2,510
47,693
18,613,400
42,678
18,911,566
EXPENDITURES
$
17,903,570
$
1,007,996
$
33,441,000
$
2,248,903
336,414
726,258
22,475,000
10,790,556
575,813
37,152,944
Intergovernmental
Contributions
Capital lease issued
Transfers in
Total Other Financing Sources
$
Transfers out
$
32,698,589
3,987,019
36,685,608
$
467,336
- 125 -
$
COMMUNITY DEVELOPMENT AUTHORITY
OF THE CITY OF NEENAH
STATEMENT OF CASH FLOWS
COMPONENT UNIT
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Principal received on lease receivable from primary government
Principal paid on lease revenue bonds
Interest paid on lease revenue bonds
Net Cash Flows From Capital and Related Financing Activities
$
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income
Net Cash Flows From Investing Activities
25,000
(25,000)
(1,033,637)
(1,033,637)
1,033,637
1,033,637
Net Increase in Cash and Cash Equivalents
2,188,786
CASH AND CASH EQUIVALENTS - Beginning of Year
RECONCILIATION OF CASH AND CASH EQUIVALENTS TO
THE STATEMENT OF NET POSITION
NONCASH ACTIVITY
None.
- 126 -
$
2,188,786
$
2,188,786
$
2,188,786
CITY OF NEENAH, WISCONSIN
Introduction to the Statistical Section
December 30, 2012
STATISTICAL SECTION
This part of the City’s Comprehensive Annual Finance Report presents detailed
information as a context for understanding what the information in the financial
statements, notes to financial statements, and required supplementary information
indicate about the City’s overall financial health.
Contents
Page
Financial Trends – Schedules 1 - 5
These schedules contain trends information to help the reader
understand how the City’s financial performance and well being
have changed over time.
127 – 132
Revenue Capacity – Schedules 6 - 9
These schedules contain information to help the reader assess the
factors affecting the City’s ability to generate the City’s most
significant one-source revenue, property taxes.
133 – 136
Debt Capacity – Schedules 10 - 14
These schedules present information to help the reader assess the
affordability of the City’s current levels of outstanding debt and the
City’s ability to issue additional debt in the future.
137 – 141
Demographic and Economic Information – Schedules 15 - 17
These schedules offer demographic and economic indicators to
help the reader understand the environment within which the City’s
financial activities take place and to help make comparisons over
time and with other governments.
142 – 144
Operating Information – Schedules 18 - 19
These schedules contain information about the City’s operations
and resources to help the reader understand how the City’s
financial information relates to the services the City provides and
the activities it performs.
145 – 146
Sources: Unless otherwise noted, the information in these schedules is derived from
the comprehensive annual financial reports for the relevant year. The City implemented
GASB 34 in 2003; schedules presenting government-wide information include
information beginning in that year.

city of neenah

Transcription

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