CITY OF BIG RAPIDS MECOSTA COUNTY, MICHIGAN

Transcription

CITY OF BIG RAPIDS
MECOSTA COUNTY, MICHIGAN
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2013
CITY OF BIG RAPIDS, MICHIGAN
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2013
Prepared by: Finance Department
Treasurer
Jon Locke
Assistant Treasurer
Jean Schneidt
Staff
Paul Cole, Income Tax Administrator
Carla Staffen, Accountant
Heidi Horan, Finance/Utility Clerk
Gail Dolbee, Assessor
Barbara Obert, Accounting Clerk
Arianna Rinvelt, Administrative Assistant
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal
Awards and Acknowledgements
Statement of Management's Responsibility for Financial Statements
Certificate of Achievement for Excellence in Financial Reporting
Letter from Mayor
City Officials
Organizational Chart
I - XVIII
XIX
XX
XXI
XXII
XXIII
XXIV
FINANCIAL SECTION
Independent Auditors' Report
1
Management's Discussion and Analysis
4
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Position
Statement of Activities
13
14
Fund Financial Statements
Governmental Funds
Balance Sheet
Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position
Statement of Revenues, Expenditures, and Changes in Fund Balances
Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances with the Statement of Activities
15
16
17
18
Proprietary Funds
Statement of Revenues, Expenses and Changes in Net Position
Statement of Cash Flows
19
20
21
Fiduciary Funds
Statement of Fiduciary Net Position
Statement of Changes in Fiduciary Net Position
23
24
Notes to the Financial Statements
25
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund
Schedule of Funding Progress - MERS
Schedule of Funding Progress - ACT 345 Plan
49
51
52
TABLE OF CONTENTS
Page
OTHER SUPPLEMENTARY INFORMATION
Governmental Funds
Nonmajor Governmental Fund Descriptions
Combining Balance Sheet – Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balance – Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Major Streets
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Local Streets
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Pool
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Dog Park
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Library
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Roben-Hood Airport
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Riverwalk
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Jennings
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - River Safety
53
54
56
58
59
60
61
62
63
64
65
66
Internal Service Funds
Internal Service Fund Descriptions
Combining Statement of Net Position - Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds
Combining Statement of Cash Flows - Internal Service Funds
67
68
69
70
Fiduciary Funds
Fiduciary Fund Descriptions
Combining Statement of Fiduciary Net Position
Combining Statement of Changes in Fiduciary Net Position
72
73
74
DDA
Component Unit Description
Statement of Net Position and DDA Fund Balance
Statement of Activities and DDA Fund Revenue, Expenditures and Changes in Fund Balance
75
76
77
STATISTICAL SECTION
Statistical Section Table of Contents
79
Financial Trend Tables
Net Position by Component
Changes in Net Position
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
80
81
83
84
Revenue Capacity Tables
Assessed and Actual Value of Taxable Property
Direct Overlapping Property Tax Rates
Property Tax Levies and Collections
85
86
88
TABLE OF CONTENTS
Page
STATISTICAL SECTION (Continued)
Debt Capacity Tables
Ratios of Outstanding Debt by Type
Direct and Overlapping Governmental Activities Debt
Legal Debt Margin Information
Pledged Revenue Coverage
Schedule of Indebtedness
89
90
91
92
93
Demographic and Economic Information
Demographic and Economic Statistics
Principal Employers
96
97
Operating Information
City Employees by Function/Program
Operating Indicators by Function/Program
Capital Asset Statistics by Function/Program
98
99
100
Wastewater
Wastewater Contract User Charge
Wastewater Continuing Disclosure
101
105
Dial A Ride
Schedule of Operating Revenues
Schedule of Expenditures of Federal and State Awards
Operating Expenses
Operating and Contract Expenses
Operating Assistance Calculation
Schedule of Nonfinancial Information
108
109
111
112
113
114
INTRODUCTORY SECTION
CITY OF BIG RAPIDS
226 North Michigan Avenue
Big Rapids, MI 49307
November 8, 2013
Members of the City Commission and Citizens of the City of Big Rapids:
The Comprehensive Annual Financial Report of the City of Big Rapids, Michigan, for fiscal year
ended June 30, 2013, is submitted herewith. The financial statements included in this report
have been audited by Gabridge & Company, an independent firm of certified public accountants.
This report is prepared for the purpose of disclosing the City’s financial condition to its residents,
elected officials, and other interested parties.
The financial statements have been prepared in compliance with applicable State statutes and
Generally Accepted Accounting Principles (GAAP) as stated in the Governmental Accounting
Standards Board statements and interpretations. Responsibility for both the accuracy of the
presented data and the completeness and fairness of the presentation, including all disclosures,
rests with the City. We believe the data, as presented, is accurate in all material respects, and
that it is presented in such a manner as to fairly set forth the financial position and results of
operations of the City as measured by the financial activity of its funds.
GAAP require that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management’s Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement MD&A and should be read in
conjunction with it. The City of Big Rapids’ MD&A can be found immediately following the
report of the independent auditors.
www.ci.big-rapids.mi.us
I
REPORTING ENTITY AND ITS SERVICES
The City of Big Rapids is located 60 miles north of Grand Rapids, 45 miles south of
Cadillac on U.S. 131, a four lane highway connecting Chicago to Traverse City via
Kalamazoo. This route provides significant access and economic benefit to the area
carrying commerce and considerable tourist traffic to vacation spots in northern Michigan
and the Upper Peninsula. Big Rapids is the county seat of Mecosta County and is
therefore the political center of the region. This position continues to produce economic
benefit and advantage for the community.
Ferris State University – with its 1,300 employees and over 13,800 students (in the fall of
2013), is the region’s largest employer and the driving force behind the economic, social
and cultural growth in Mecosta County. Dr. David Eisler was inaugurated into the
presidency of the University in 2003, and has produced energy and dynamic progress at
the institution. Enrollment continues to rise in Big Rapids although the most significant
increase in the Ferris system is the Kendall Art Institute in Grand Rapids. Retention of
upper-class students continues strong (around 70% which is well above the Michigan
University average). This impressive growth is being accomplished at the same time that
entrance standards were being raised. SAT scores for admission are now at 20. This
brings to Big Rapids a student more interested in a career and academic study – and one
who has already a proven track record. The improving attitudes of the students are
already evident in the community.
The funding of colleges and education has seen steep cuts by the State of Michigan in the
past several years. This change has resulted in State funding eroding from a 70% support
to a 30% support of student costs. In 2010, Ferris offered an early retirement option for
non-academic employees, which resulted in over 50 retirements of long time workers.
Aggressive financial management continues to be a cornerstone for success for Ferris as
they ‘right-size’ their organization to meet student needs and affordability.
Ferris has emphasized community involvement in the recent years. A ‘Festival of the
Arts’ has been initiated which includes an event each day in February. Music, sculpture,
architecture, painting, drama, poetry, storytelling, and many other genres are part of that
program. This program also began a public art initiative which has resulted in sculpture
sites being developed in the community (entrance to town, City Hall and Hospital).
Student involvement may also be seen in other activity around the City. The athletic
department is especially active in this area helping in the parks to repair Playscape and to
complete other civic needs. The ‘Dump and Run’ program gives left over clothes and
food items to area food banks and shelters as students depart at the end of semesters. The
‘Big Event’ in the spring involved over 1,000 students saying ‘thank you’ to the
II
community by performing yard work projects for residents. Downtown was highlighted
in this year’s emphasis as the welding department built a performance pergola in Pocket
Park for Friday music events which coordinate with the Farmer’s Market.
In 2009, The University lobbied the State Legislature for the funding of a new Optometry
building. Ferris has the only Optometry program in the State of Michigan, building a
convincing argument for the new facility. Funding of this $30,000,000 was finally
approved by the State legislature – so the construction and renovation was completed in
2011. Some of the student housing on campus had reached the ‘old-tired’ stage and was
removed to make room for the ‘East Campus Suites’. This complex is of great appeal,
giving students individual sleeping quarters around a central living area and kitchen. The
Rock Café has also been completely renovated in 2012 and has become a restaurant of
some distinction not only for students, but for community residents as well. The next
facility construction project is the upgrade to the Rankin Student Center. The plans for
this renovation include not only student activity but facilities and meetings rooms for the
community. The project, estimated at $33 million, calls for the removal of Masselink and
Carlisle Residential Halls, a new major parking area and complete renovation of the
Rankin Center itself. It is slated for completion in 2014.
The City’s legislative body is a five member Board of Commission that is elected by a
vote of the public. The mayor and the four Commissioners serve four-year terms. Mark
Warba is presently serving as Mayor. He is in his third term of office after serving many
years on the City Planning Commission. Commissioners Lynn Anderson and Tom
Hogenson were recently elected (fall of 2011), joining Lorraine James and Dan Rothstein
on this decision making board. Lorraine retired from the position as City Treasurer in
2008, after over 25 years in government finance. Dan Rothstein, a semi-retired industrial
salesman returned to the Commission after a two year absence. He had previously served
8 years. Tom Hogenson is also a returning Commissioner, working as Public Relations
Director for the Spectrum Hospital in Big Rapids. Lynn Anderson is the owner of a local
bookstore. She is entering her second term on the Commission. Big Rapids continues to
attract well-qualified and educated Commission members to assist the positive progress.
The administrative side of the government has stabilized after several years of turnover
due to retirement. Senior members, Attorney Eric Williams, Technology Director Tim
Moslener and Clerk Roberta Cline have served for over 20 years. City Manager Steve
Sobers is completing his 10th year with Big Rapids. While Mark Gifford is also
completing his 10th year, he has moved from Director of Neighborhood Service through
Director of Public Works to the position of Assistant City Manager. His transition has
elevated Mark Sweppenheiser to Neighborhood Services after three years with the City.
Jon Locke came on board as City Treasurer in 2012, with the retirement of Julie
Tetsworth and Andrea Nerbonne started in Public Safety at the same time after Director
III
Frank West’s retirement.
It is very good that the City has talented folks already
employed who are able to continue the philosophy and progress that has been achieved in
the past several years. Big Rapids is blessed with exceptionally strong leadership.
The present department staff remains talented and very capable – and enjoys long
experience and tenure with the community. They include:
Stephen Sobers – City Manager
Jon Locke – Finance
Mark Gifford – Public Works
Mark Sweppenheiser – Neighborhood Services
Miriam Andrus – Community Library
Roberta Cline – Clerk
Andrea Nerbonne – Public Safety
Tim Moslener – Technology
Eric Williams – Attorney
The City is led by an administrative branch as approved by the Commission. This
leadership is guided by a series of citizen committees. Most important in this process,
these committees represent a cross section of the residents who serve without pay to
recommend policy, make decisions and guide progress. Planning Board, Park Board, Tax
Board of Review and Income Tax Board of Appeals comprise the most active of these
public boards.
ECONOMIC CONDITIONS AND OUTLOOK
In his first three years in office Michigan’s Governor Rick Snyder has made bold moves
eliminating Michigan’s unpopular Business tax, creating a new approach to revenue
sharing and mandating employee participation in health care. In the past year personal
property tax was eliminated. While within these changes the State has promised to
restore local government funds, this has not happened on a dollar for dollar basis. While
these initiatives may result in significant long-term advantage, in the short term they have
presented challenges to local municipalities. It has helped that during this time of
transition; the State has balanced its budget and entered into a more prosperous time that
is allowing more grant funded programs to supplement local tax initiatives.
The City has responded over the past three years by examining each purchase and cutting
expenses wherever possible. In addition, as employees have retired, a careful analysis is
made to determine if the position activities can be consolidated with other existing
employees. Four positions have been eliminated in previous years. This most recent
opportunity called for a contract with the County for rental inspection/code enforcement
which replaces a full time position. The saving should reach $40,000.
IV
As the economic downturn has continued, property values across the state have been
affected. This change reached Big Rapids in 2008, and seems to be ending with 2012-13.
Housing values have dropped 2% and business properties slightly more. Five years with
flat income for the City has been very difficult indeed to maintain an adequate level of
service while experiencing diminishing capital and ongoing purchasing expenses and
fewer employees. A downtown tax increment financing project passed in 2009, which
may finally produce revenue for the first time in 2013.
Continuing the positive news for the Community in 2013, Haworth made a decision to
consolidate all of its case goods manufacturing in the Big Rapids plant. This
announcement has added another full line of manufacturing to the steel plant including 90
jobs and an investment of over $27,000,000. Big Rapids Products, a local automotive
supply plant has added space to their facility and purchased an empty building in the Big
Rapids Industrial Park. These two major initiatives will help in a significant way to keep
the finances of the City in a strong position.
The City Commission has taken the position for many years that property tax increases
are not an option. The residents of the community already contribute a ‘reasonably fair’
property tax for community services and increases above an area average would be
counter-productive to economic health. With Ferris State University within the
community, Big Rapids has the unique position of having 60% of its real estate exempt
from property taxes. Property taxes are therefore considered a rather disproportionate
method of producing revenue. For over 10 years the Big Rapids City Commission has
held the line on Commission voted taxes. This approach also leaves Big Rapids with
almost five mils under the fifteen mil limitation for the Commission to vote additional
millage income. This ability has helped the City maintain a relatively good bond rating
of AA- (S&P 2010) or Baa1 (Moody’s 2009). The public has been extremely supportive
of this financial approach to local governance.
The decline in street revenue in 2013, and the desperate need for street paving
encouraged the City Commission to dedicate one mil of property taxes exclusively to
street paving projects. It is the intention of this action to use these funds only for asphalt
– not for salaries or other street needs. This approach has allowed the City to pave over 2
miles of streets in 2013, with hopes of similar improvements in the years to come.
With this philosophy there is a continuing need to look at service costs to insure that the
General Fund does not subsidize any other fund in the City. Water, sewer and sanitation
costs have been carefully analyzed and increased to ‘right size’ these programs and
administrative costs. While rates have gone up in these areas, the increases have been
phased in over a period of several years to lessen their impact on the public.
V
Two major projects are presently underway in the City. The Baldwin Street Bridge is a
structure over 50 years old and in need of replacement. It has been on the State’s
‘Critical Bridge Program’ for several years, while the City struggled to find funds to
cover its $1,500,000 share of the project. This project was not only aided, but also
expanded when Wolverine World Wide announced that it wanted to expand its Big
Rapids plant and hire additional employees. This was the initiative that allowed the EDA
to become involved in the project – and a survey of the industrial park revealed that other
businesses were growing as well – creating over 75 jobs and spending $4,750,000 over
the next 5 years. With this documentation the EDA agreed to put $2.576 million in the
project. With the State’s $3.022 million, the City contribution to the project will now be
less than $500,000 once the project is complete.
The second project is the Community Library. For over 15 years this renovation has been
‘waiting its turn’ to be on the top priority list of the community; 2013 was the year. A
local fundraising effort has produced $330,000 – and renovation is underway on this $1.1
million upgrade. While the library is closed, Ferris State University graciously offered
space in their academic library for the period of renovation.
With positive attitudes and creative leadership the City is weathering its economic trials.
When ‘normal’ funding sources are challenged, staff has managed to find new ways to
bid projects and new funding sources to provide a high quality of life for Big Rapids
residents. With measured spending, aggressive innovation, and hard work, Big Rapids
continues to be an oasis and a model for west central Michigan.
CASH AND INVESTMENT MANAGEMENT
Each fund within the City has its cash that is needed for daily operations, invested in the
City depository and investment pool or in separate depository and investment accounts.
Cash temporarily idle during the year may be invested in bank certificates of deposit,
commercial paper, bank money market accounts, as well as U.S. Government securities
as permitted by the State of Michigan statutes and the City’s Cash and Investment Policy.
Balances in the Act 345 pension fund can be invested in additional types of securities
including equities as allowed by State of Michigan statutes.
RISK MANAGEMENT
The City manages its risk exposures through a combination of self-insurance programs,
risk management pools, and commercial insurance and excess coverage policies.
VI
For coverage concerning property, general liability, automobile liability, motor vehicle
physical damage, and property damage, the City participates in the Michigan Municipal
Liability and Property Pool. Unemployment claims are reimbursed to the Michigan
Employment Security Commission. The City transitioned away from being self-insured
for employee health, dental, and vision insurance. Employees are now offered fullyfunded health insurance plans.
PENSION BENEFITS
The City provides employees in the various bargaining and non-bargaining unit pension
benefits through either defined benefit or defined contribution pension plans. Benefits
and employee and employer contributions vary depending on employee elections,
position and bargaining unit. A deferred compensation plan is also available to the
various employee groups.
MAJOR INITIATIVES
The City of Big Rapids Commission has begun several initiatives to enhance the quality
of life and maximize the effectiveness of government in the City. The following is a
listing and description of the major projects and goals.
1. Roben Hood Airport
The Federally funded airport gets $150,000 per year to maintain and upgrade the
facility. These monies accumulate from year to year until they are spent. After several
years of significant growth brought on by construction of a commercial community
hangar and sale of Jet A fuel, Roben Hood is finally close to justifying an extension of
the runway to 5,000 feet. The study should be complete by the end of 2013.
2. Wastewater Treatment Plant
The City completed a major upgrade of the WWTP in 2011 costing over
$8,000,000. It was known at the time that there remained several projects which would
need improving over the next several years as aging on those components continued.
This year the influent screens and the upgrade of two of the City’s lift stations are
proposed.
Engineering is underway for both projects projected to cost $500,000. The State
is encouraging facilities to install septage hauling stations to assist the rural areas with
proper waste disposal systems. The City is also reviewing the costs and benefits of
adding this service.
VII
3. Library
Library facility renovation is presently underway. This $1,100,000 addresses
library foundation and floor support, window replacement, meeting room needs, restroom
security, lighting and technology improvements and general maintenance. The
renovation is scheduled to be completed by spring 2014.
4. Technology
The IT leadership continues to be a major asset of the City. A new computer
based phone system is budgeted for 2013. The City continues to be a hub of IT progress
for the region and draws other public agencies into the network. This year Ferris and
Central Dispatch joined the system for emergency calling. This has cut the costs of the
wired network for all as the system is now shared four ways instead of two. The IT
department also added a forensic specialist to the service provided. Big Rapids now has
the capacity and equipment to investigate internet crimes and download computer and
phone files to assist in solving crime. This is especially important in a college
community where much technological expertise exists. This additional ‘set of hands’
also eases the burden of the growing needs in this field.
5. DART
Grants are being sought to renovate the DART garage since its purchase in 2011.
Overhead doors are needed to get all the busses inside and additional space would be
appropriate for dispatching. This project will move forward only after grant assistance is
achieved.
DART and Ferris linked to provide a fixed route service during construction of a
new student center. This service is planned to last 18 months. However, with present
technology a phone app has been implemented allowing students to see the movement of
the busses and take advantage of this service. Even with great weather over 1000
students are riding the bus weekly this fall. This number is expected to grow
significantly when the snow flies and temperatures are sub-zero. There is considerable
hope and expectation that this service will become a permanent feature on campus.
6. Pave Streets and Alleys
In 2013, the City Commission dedicated one mil of property tax exclusively for
asphalt paving. This action will insure a paving program near $200,000 for years to
come. While the City has some catching up to do on paving its streets, with this
dedicated funding, over 2 miles were paved in 2013.
VIII
7. Downtown
The State of Michigan offered a new downtown grant opportunity in 2013. The
City has applied for $450,000 to upgrade Maple Street (M-20) with LED street lights,
benches, trees, a bus stop, public art and electric car charging. If funded, this project will
update Maple street to the level of Michigan Avenue which received an identical program
in 2009 – costing $2.5 million.
8. Low Interest Loan
The USDA has a low interest program to give monies to businesses for expansion.
The City applied and was awarded $370,000 to make these loans available. After delays
in the state authorization, which necessitated an amendment to state law, the program has
finally been approved for use. Funds remain available.
9. Housing
The City has a large number of public housing units. Each year the Housing
Authority obtains grants to maintain and enhance the facilities in the neighborhood of
$500,000.
The Housing Commission has also purchased 20 plus acres on Mechanic Street
and is applying for funding to develop a residential single family plat of affordable
homes. This would be the second plat developed in the City in the past 10 years.
10. Sanitation
The City implemented a new pickup system in 2013, through the exclusive use of
polycarts. Each resident now has a 95 gallon cart for trash and a 65 gallon cart for
recycling. While this was a very significant investment on the part of the contracted
hauler, it was achieved with no increase in rates to the residences.
11. Riverwalk
In 2010, the City completed another section of the Muskegon Riverwalk trail
system. There remains a gap, however, between sections two and three of this walkway.
Connection is now planned for the spring of 2014.
12. Bike Paths in streets
In 2012, as a class project, Ferris Students studied and proposed a bike path
master plan for the City. It was so well done that the Commission adopted the plan and
staff is in the process of implementing the pavement markings as improvements are
made.
IX
13. Credit cards
After years of debate and legalities of allowing customers to use credit cards to
pay City bills, the Finance Department and City Commission are implementing a credit
card system ‘Point and Pay’, which will allow residents to pay their utility bills online
with a credit card.
In addition, the City will be changing its credit card purchase system getting a
‘rebate’ for its use with 5/3 Bank. This system is expected to generate $25,000 in income
for the City.
14. Regional Recreation
There are no ‘regional’ recreational facilities in Big Rapids. A private group is
looking into the possibility of converting 150-200 acres of land into soccer fields,
baseball, tennis, skiing, skating and other active sporting facilities.
X
DEPARTMENTAL FOCUS
Big Rapids
Department of Public Safety
435 North Michigan Avenue
Big Rapids, MI 49307
The Big Rapids Department of Public Safety is comprised of three divisions which
include, Public Safety, Police and Fire. Public Safety consists of the Director, Deputy
Director and the Administrative Assistant. The Police Division is comprised of 17
MCOLES certified Police Officers and the Fire Division currently has 9 full time Fire
Fighters and 18 part paid Fire Fighters.
The department has a very long history of “dedicated service and commitment to
excellence” as the logo states on each patrol car and on all fire apparatus.
The Mission Statement for the Department of Public Safety states “It is the mission of the
Big Rapids Department of Public Safety to work together with the community to provide
a safe place for people to live, work, learn and visit.” The Value Statement is “All
employees of the Big Rapids Department of Public Safety are committed to respecting
the rights of all and dedicated to maintain the public trust, their personal and professional
honor, and the highest standards of the fire and police services.”
In order to make sure the department was performing at the “highest standard,” thus
living up to our Mission and Value Statement a Quality Control Assessment was
conducted in 2012 on all facets of the agency. The assessment indicated there were
areas that required change/improvement. Some areas required immediate action. The
staff developed a strategic plan prioritizing areas that were identified as needing
improvement and the plan was immediately put into motion. The areas of concern and
the progress thus far are as follows:
ARREST CLOSURE RATE/ SOLVABILTY RATE- A new report writing format was
developed and instituted, officers were educated on how to properly close complaints
statistically, investigation follow up has been closely supervised to insure quality and
prompt follow through. The solvability rate for Big Rapids Department of Public Safety
was 24% in 2011, by the end of the second quarter of reporting in 2013 the department
had improved to 59% crime solvability rate.
REPORT WRITING FOR FIRE AND EMS: Fire report writing was restructured to
produce a professional detailed document and a quality assurance component was added.
XI
POLICE DEPARTMENT PROPERTY ROOM AUDIT: A complete audit of the
department property room was conducted. After the audit was completed property that
had not been purged since the early 90’s was purged to date. This process alone has
taken one and a half years to complete. During this process all old solved homicide cases
were also audited, labeled and placed in individual containers then sealed. The
corresponding volumes of reports and photographs were put in numerical order and
placed in locked file cabinets in the Archives Room.
PERFORMANCE APPRAISALS:
Performance Appraisals on all departmental
employees were reinstituted and completed for the previous year’s performance.
POLICE OFFICERS/FIRE FIGHTERS DAILY LOG: Each officer and fire fighter was
mandated to complete a detailed Daily Log Report of their activities and assignments for
their shift. This daily log is used for documenting activities, performance ratings and
accountability purposes. The officers daily log report and program is not completed yet
but has improved a great deal.
PROFESSIONAL APPEARANCE:
A committee of both police and fire personnel
were assigned to choose a new professional uniform for police and a new professional
uniform for fire. The uniforms were selected, officers were measured, and uniforms were
then ordered and tailored to fit each individual. Any variation of the uniform can only be
done with authorization of the director. Both police and fire have a very professional
Appearance with the new uniforms.
XII
EQUIPMENT INVENTORY:
A complete list of departmental equipment was
developed that listed all guns and serial numbers and who they are currently assigned.
The inventory also listed Tasers and the associated serial numbers.
EMPLOYEE CONTACT INFORMATION: Emergency contact cards were developed
for all department personnel indicating family members’ names and next of kin to be
contacted in case of emergency. This list is available to all personnel.
PATROL CAR MAINTAINANCE: The police cars were cleaned both inside and out
and have been put on a monthly wax cycle. All patrol car trunks were cleaned out and
were equipped with new first aid kits. Fire vehicles are also on monthly/weekly cleaning
cycle.
XIII
BUILDING MAINTAINANCE: The DPS building is approximately 11 years old and is
a beautiful facility. The building however was beginning to show wear. The floors
throughout the building were waxed professionally. Carpet in the day room was cleaned
professionally as well. Walls in hallways and classroom received a fresh coat of paint.
Windows throughout the entire department are washed now on a monthly basis including
large fire bay doors.
ORGANIZATION: In the DPS building there is a Supply Closet, Quartermaster Room,
Archive Room, Work Room and a detached garage, all areas that needed to improve as
they were cluttered and unorganized. This entire category was completed by Nancy
Haight the Department Administrative Assistant with exception of the detached garage.
XIV
Supply Closet- all out dated materials were disposed and replaced with current items.
Items were removed from top shelves to be within code. Supply room floor was also
cleaned from clutter and debris.
Quartermaster Room- All old worn uniforms were taken to recycle shop, patches were
removed and recycled to be placed on new uniforms. All new equipment was organized
for both police and fire with corresponding labels. QM floors were also cleaned from
clutter and debris.
XV
Key Locker- there were boxes of hundreds of unlabeled keys scattered throughout the
department.
All keys were gathered in one location and were organized in
containers/labeled and kept in one secure file. A cross reference index binder was
developed for description of each key.
Archive Room-All unessential material was removed; all old homicide cases were
categorized and placed in locked files. All items were removed from the floor and are
now neatly organized by year in files.
All resource materials are in files listed
alphabetically. Newspaper articles are now stored in proper containers and are filed by
year.
XVI
Work room- all drawers and cabinets were cleaned and only current relevant materials
are kept in this work area.
Detached Garage- The detached garage was so full of property that needed to be disposed
of that one person could not even walk in any further than the door opening. After the
property audit was completed, items out of the garage were disposed. The garage is
currently being used to house the Speed Trailer.
DEPARTMENTAL POLICIES: The Department of Public Safety currently has a good
set of Departmental Policies. A goal for 2013 is to have all policies reviewed and made
current; this task is still in progress.
PROACTIVE POLICING AND FIRE PREVENTION:
One area of great importance for the department was to improve in the area of proactive
policing and fire prevention. Police officers began actively conducting foot patrols and
property inspections during the night shift. Officers began leaving door hangers at
businesses notifying owners they checked their business. In the process, officers
determined the business owner’s lists were outdated and no longer accurate. Officer
Jason Jakubowski has begun gathering all current contact information for business
owners.
Fire Fighter Russell Bell has taken on the assignment to contact every home owner in the
city to determine if they need a smoke alarm. If the home owner needs a smoke alarm
Russ Bell will provide the alarm and install it. It is the goal of BRDPS to make sure
every residence in the city is equipped with a smoke detector.
XVII
Last year the Big Rapids Department of Public Safety Fire Division was able to upgrade
its medical license from Medical First Responder (MFR) to Emergency Medical
Technician (EMT-B). This major upgrade means department personnel can now respond
to medical emergencies in our community with more and better equipment, and be able to
perform procedures at a higher level, including the administration of certain drugs. The
cost of this upgrade was minimal and the services we can now perform for our
community members have drastically increased.
Our Department, through the Capital Improvement Fund, was able to purchase a
“LUCAS” CPR machine this year at a cost of almost $14,000.00. This device administers
almost perfect CPR on a patient in cardiac arrest freeing up medical personnel to do other
life-saving procedures. The machine already has a history of saving lives in Mecosta
County and we are now one of two First Responder Agencies in the county to have one
of these available to our citizens.
The final step taken over the last year to assure the highest quality of service is provided
to the community is to have a needs assessment completed on the Department. The
BRDPS is working in conjunction with Professor Steve Amey from Ferris State
University to accomplish this assessment.
XVIII
AWARDS AND ACKNOWLEDGEMENTS
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 Big Rapids for its comprehensive annual
financial reporting for the fiscal year ended June 20,
2012. In order to be
30, 2012.
awarded a Certificate of Achievement, a government unit must publish an
easily readable and efficiently organized comprehensive annual financial
report (CAFR), whose contents conform to program standards. Such CAFR
must satisfy both accounting principles generally accepted in the United
States of America and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We
believe that our current comprehensive annual financial report continues to
conform to the Certificate of Achievement program requirements, and we
will be submitting it to the GFOA.
It is very appropriate that appreciation be expressed for the efficient and
dedicated services of the City's Department of Finance.
The
maintenance of the daily financial reports, all investments, and the
preparation of this comprehensive report were the supervisory
responsibilities of City Treasurer, Jon Locke. He has been ably assisted by
other finance/management area personnel, which include Jean Schneidt,
Carla Staffen, Heidi Horan, Paul Cole, Barbara Obert, Gail Dolbee, Kipp
Frank and Kipp's successor Arianna Rinvelt. Roger Schneidt contributed
the photos. Big Rapids Printing, Big Rapids, Michigan was responsible
for the reproduction of the covers and tabs. Andrea Nerbonne, Director of
Public Safety, authored the Departmental Focus.
Excellent working
relationships were established and maintained between the auditors and
the municipal staff in the preparation of this annual financial report.
Respectfully submitted,
XIX
STATEMENT OF MANAGEMENT'S
RESPONSIBILITY FOR FINANCIAL STATEMENTS
Responsibility for the integrity of the financial data presented rests with
the City. We believe the data to be accurate in all material respects.
These financial statements are prepared in accordance with Generally
Accepted Accounting Principles applicable to city government and State
statues.
Because the cost of internal controls should not outweigh their benefits,
the City's comprehensive framework of internal controls has been designed
to provide reasonable rather than absolute assurance that the financial
statements will be free from material misstatement.
Gabridge & Company, independent certified public accountants, has
audited the accompanying financial statements, and the supplemental
financial information has been subjected to the auditing procedures applied
in their audit. Gabridge & Company's report is included in the financial
section of this report.
Respectfully submitted,
XX
XXI
We may well look back on 2013 to say that is when
we turned the corner on the 2008 recession.
Millions of dollars are now being invested in our
community to make improvements and welcome
new businesses, including:
1. A new Isabella Bank Branch office
opening on the east side of the Muskegon
River.
2. Renovation of a former car dealership
located at State and Maple to accommodate
new Hometown Pharmacy.
3. Panera Bread looking to open between
McDonald’s and Walgreens on South State
Street, adjacent to campus.
4.
Renovation of the Rankin Student Center at Ferris State.
5.
Renovation and expansion at the medical center, which has merged with
Spectrum Health, and is now known as Spectrum Health - Big Rapids.
6.
Securing EDA grant approval, which will help fund replacement of the
Baldwin Street Bridge.
Such concrete examples of an improving local economy highlight the cooperation and
communication that exists between the City, the University and our surrounding
townships. We all benefit by working together.
Special thanks and acknowledgement goes out to City employees, staff, and those
residents who volunteer to serve on various boards and commissions. Their commitment
to helping make Big Rapids a better place contributes to our success.
Sincerely,
Mark J. Warba
Mayor, City of Big Rapids
XXII
CITY OF BIG RAPIDS, MICHIGAN
CITY OFFICIALS
City Commission
Mark Warba
Lorraine James
Lynn Anderson
Dan Rothstein
Thomas Hogenson
City Manager
Stephen Sobers
City Attorney
Eric D. Williams
City Clerk
Roberta Cline
City Treasurer
Jonathan Locke
Income Tax Administrator
Paul Cole
Information Technology Manager
Timothy Moslener
Library Director
Miriam Andrus
Neighborhood Services Director
Mark Sweppenheiser
Transportation Supervisor
Dawn Fuller
Public Safety Director
Andrea Nerbonne
Public Works Director
Mark Gifford
XXIII
XXIV
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Commission
City of Big Rapids, Michigan
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the discretely presented component unit, each major fund, and the
aggregate remaining fund information of City of Big Rapids, Michigan, as of and for the year
ended June 30, 2013, and the related notes to the financial statements, which collectively
comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
-1-
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City of Big Rapids, Michigan, as of June 30, 2013, and the respective changes
in financial position, and, where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, schedule of funding progress and budgetary comparison
information as listed in the table of contents be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Big Rapids, Michigan’s basic financial statements. The
introductory section, combining and individual fund financial statements and schedules,
statistical section, and continuing disclosure filing are presented for purposes of additional
analysis and are not a required part of the basic financial statements.
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other
records used to prepare the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the
-2-
combining and individual fund financial statements and schedules are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
The introductory section, statistical section, and the continuing disclosure filing have not been
subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
November 8, 2013, on our consideration of the City of Big Rapids, Michigan’s internal control
over financial reporting and on our tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements and other matters. The purpose of that report is to
describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering City of Big Rapids, Michigan’s internal
control over financial reporting and compliance.
Gabridge & Company, PLC
Grand Rapids, Michigan
November 8, 2013
-3-
Management’s Discussion and Analysis
As management of the City of Big Rapids (the City), we offer readers of the City’s financial
statements this narrative overview and analysis of the financial activities of the City for the fiscal
year ended June 30, 2013. We encourage readers to consider the information presented here in
conjunction with the financial statements as a whole, which can be found in this report.
Financial Highlights
The financial statements, which follow this Management’s Discussion and Analysis, provide
these significant key financial highlights for the 2013 fiscal year as follows:

The assets of the City exceeded its liabilities at the close of this fiscal year by
$30,434,570 (shown as Net Position), representing a decrease of $157,431 over the
previous fiscal year. Of this amount, $5,175,104 (unrestricted net position) may be used
to meet the government’s ongoing obligations to citizens and creditors.

During the year, the City received $14,623,471 in revenues and $14,780,902 in expenses,
resulting in a decrease in net position of approximately $157,431. Of the City’s
$14,780,902 expense total, $5,752,781 related to business-type expenses and the balance
of $9,028,121 related to governmental activities.

At the end of the current fiscal year, unassigned fund balance for the General Fund was
$1,555,261 or 20 percent of the General Fund’s total expenditures.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial
statements. The City’s basic financial statements comprise three components: 1) Governmentwide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
This report also contains other supplementary information in addition to the basic financial
statements themselves.
Government-wide financial statements
The Government-wide financial statements are designed to provide readers with a broad
overview of the City’s finances, in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the City’s assets and liabilities, with
the difference between the two reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the City is improving
or deteriorating. The Statement of Activities presents information showing how the City’s net
position changed during the most recent fiscal year. All changes in net position are reported as
soon as the underlying event giving rise to the change occurs, regardless of the timing of related
cash flows. Thus, revenues and expenses are reported in this statement for some items that will
only result in cash flows in future fiscal periods (e.g., earned but unused compensated absences).
-4 Both of the government-wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the City include
general government, public safety, public works, and culture and recreation. The business-type
activities of the City include wastewater, water, sanitation and transportation operations.
Component unit - The government-wide financial statements include not only the City itself
(known as the primary government), but also a legally separate Downtown Development
Authority (DDA) for which the City is financially accountable. Information for the DDA is
reported separately from the financial information presented for the primary government.
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,
like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds of the City can be divided
into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds - Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating a City’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the City’s near-term
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
Information is presented separately in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures, and changes in fund balances for the
General Fund which is considered a major fund. Data is combined into a single aggregated
presentation for the other governmental funds (non-major governmental funds). Individual fund
data for each of the non-major governmental funds is provided in the form of combining
statements and schedules.
The City adopts an annual appropriated budget for its General Fund and all special revenue funds
as required by state law. Budgetary comparison statements have been provided for the major
funds to demonstrate legal compliance.
-5 Proprietary funds - The City maintains four separate enterprise funds. Enterprise funds are used
to report the same functions presented as business-type activities in the government-wide
financial statements. The City uses enterprise funds to account for its wastewater, water,
sanitation, and dial-a-ride activity. Internal service funds are accounting devices used to
accumulate and allocate costs internally among the City’s various functions. The City utilizes
internal service funds to account for its motor pool, DPW services, and self-insurance services.
Because these services primarily benefit the City’s governmental rather than business-type
functions, they have been included within the governmental activities in the government-wide
financial statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the wastewater, water, sanitation, and dial-a-ride operations, which are
considered to be major funds of the City. Conversely, nonmajor enterprise funds and internal
service funds are combined into single, aggregate presentations in the proprietary fund financial
statements. The City had no nonmajor proprietary funds as of June 30, 2013.
Fiduciary funds - Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government-wide
financial statement because the resources of those funds are not available to support the City’s
own programs. The accounting used for fiduciary funds is much like that used for proprietary
funds.
Notes to the financial statements - The notes provide additional information that is essential to
a full understanding of the data provided in the government-wide and fund financial statements.
Other information - In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information. This is limited to this discussion
and analysis, required pension information and general and major special revenue fund budget
and actual presentations. Supplemental information follows the required pension information and
includes combining and individual fund statements and schedules.
-6 Government-wide Financial Analysis
Statement of Net Position - As noted earlier, net position may serve over time as a useful
indicator of the City’s financial position. In the case of the City, assets exceeded liabilities by
$30,434,570 at the close of the most recent fiscal year. The following chart illustrates the
composition of net position: City of Big Rapids
Net Position as of June 30, 2013 and June 30, 2012
Governmental
Activities
2013
2012
ASSETS
Current Assets
Cash & Pooled Investments
Accounts Receivable
Due from Federal Government
Special Assessments Receivable
Due from County
Due from State
Prepaids
Inventory
Advance to Agency Fund
Total Current Assets
Noncurrent Assets
Restricted Cash
Capital Assets
Total Assets
LIABILIITES
Current Liabilities
Accounts Payable
Accrued Liabilities
Customer Deposits
Unearned Revenue
Accrued Interest
Current Portion of Compensated Absences
Current Portion of Long-term Debt
Net Pension Obligation
Total Current Liabilities
Noncurrent Liabilities
Compensated Absences
Long-term Debt
Total Liabilities
NET POSITION
Net Investment in Capital Assets
Restricted
Unrestricted
Total Net Position
Business-type
Activities
2013
2012
$
2,757,301
462,441
17,476
26,545
6,966
53,395
3,324,124
$
2,908,485
490,947
24,633
100,676
95,110
3,619,851
Total Primary
Government
2013
2012
$ 2,448,012
514,587
8,612
8,717
316,196
90,376
96,818
50,000
3,533,318
$ 2,254,074
330,386
287,832
13,833
3,905
302,633
29,143
82,532
50,000
3,354,338
$
5,205,313
977,028
17,476
8,612
8,717
342,741
97,342
150,213
50,000
6,857,442
$
5,162,559
821,333
287,832
13,833
3,905
327,266
129,819
177,642
50,000
6,974,189
18,250,458
21,783,776
17,770,359
21,124,697
165,500
20,493,740
23,983,364
454,029
21,453,445
25,527,325
165,500
38,744,198
45,767,140
454,029
39,223,804
46,652,022
88,285
213,605
146,879
56,435
208,958
413,000
7,423
1,134,585
125,471
241,776
107,974
63,878
221,925
316,000
1,077,024
103,816
38,615
30,280
62,525
38,179
585,000
858,415
182,979
40,587
27,195
65,719
37,649
745,000
1,099,129
192,101
252,220
30,280
146,879
118,960
247,137
998,000
7,423
1,993,000
308,450
282,363
27,195
107,974
129,597
259,574
1,061,000
2,176,153
104,479
4,811,000
6,050,064
110,962
4,674,000
5,861,986
19,091
8,405,000
9,282,506
18,825
9,080,081
10,198,035
123,570
13,216,000
15,332,570
129,787
13,754,081
16,060,021
13,026,458
563,768
2,143,486
$ 15,733,712
12,780,359
759,999
1,722,353
$ 15,262,711
11,503,740
165,500
3,031,618
$ 14,700,858
11,690,668
19,181
3,619,441
$ 15,329,290
24,530,198
729,268
5,175,104
$ 30,434,570
24,471,027
779,180
5,341,794
$ 30,592,001
By far the largest portion of the City’s net position in the amount of $24,530,198, or 81%,
reflects its investment in capital assets (e.g., land, buildings, machinery and equipment and
infrastructure), less any related debt used to acquire those assets that is still outstanding. The City
uses these capital assets to provide services to citizens; consequently, these assets are not
available for future spending. Although the City’s investment in its capital assets is reported net
of related debt, it should be noted that the resources needed to repay this debt must be provided
-7 from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
An additional portion of the City’s net position in the amount of $726,268, or 2%, represents
resources that are subject to external restrictions on how they may be used. The remaining
balance of unrestricted net position in the amount of $5,175,104, or 17%, may be used to meet
the City’s ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three
categories of net position, for the government as a whole, governmental activities, and the
business-type activities.
Statement of Activities - The City’s total revenue for the fiscal year ended June 30, 2013, was
$14,623,471 while total cost of all programs and services was $14,780,902. This results in a
decrease in net position of $157,431. The following table presents a summary of the changes in
net position for the years ended June 30, 2013.
City of Big Rapids
Change in Net Position for Fiscal Year Ended June 30, 2013 and June 30, 2012
Governmental
Activities
2013
2012
Revenue
Program Revenues
Charges for Services
Operating Grants & Contributions
Capital Grants & Contributions
Total Program Revenues
General Revenues
Property Taxes
Income Taxes
State Revenue Sharing
Miscellaneous
Interest Income
Receipt from Component Unit
Transfers
Total General Revenues
Total Revenues
Expenses
General Government
Public Safety
Public Works
Recreation & Culture
Interest on Long-term Debt
Total Expenses
Change in Net Position
Net Position at Beginning of Period
Net Position at End of Period
$
866,850
1,287,823
2,154,673
$
Business-type
Activities
2013
2012
Total
Government
2013
2012
911,652
854,044
264,530
2,030,226
$ 5,435,646
239,092
5,674,738
$ 4,935,772
233,010
247,166
5,415,948
$ 6,302,496
1,526,915
7,829,411
$ 5,847,424
1,087,054
511,696
7,446,174
2,944,602
2,120,878
1,409,847
184,670
80,452
5,000
599,000
7,344,449
9,499,122
2,882,630
1,964,555
1,145,136
73,530
79,201
363,500
6,508,552
8,538,778
35,007
13,604
(599,000)
(550,389)
5,124,349
22,043
49,681
(363,500)
(291,776)
5,124,172
2,944,602
2,120,878
1,409,847
219,677
94,056
5,000
6,794,060
14,623,471
2,882,630
1,964,555
1,145,136
95,573
128,882
6,216,776
13,662,950
2,260,252
3,544,831
2,063,940
971,073
188,025
9,028,121
471,001
15,262,711
$ 15,733,712
2,188,459
3,439,962
1,621,381
1,336,420
177,278
8,763,500
(224,722)
15,487,433
$ 15,262,711
5,752,781
5,752,781
(628,432)
15,329,290
$ 14,700,858
5,207,386
5,207,386
(83,214)
15,412,504
$ 15,329,290
2,260,252
3,544,831
7,816,721
971,073
188,025
14,780,902
(157,431)
30,592,001
$ 30,434,570
2,188,459
3,439,962
6,828,767
1,336,420
177,278
13,970,886
(307,936)
30,899,937
$ 30,592,001
-8 The following chart summarizes the revenue sources for the governmental activities of the City
for the most recent fiscal year end:
The following chart summarizes the expenses for the governmental activities of the City for the
most recent fiscal year end:
-9 Business-type Activities - Business-type activities decreased the City’s net position by $628,432
during the year. This decrease is primarily the result of depreciation expense and transfers to
other funds.
Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with
finance related legal requirements.
Governmental funds - The focus of the City’s governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City’s financing requirements. In particular, unassigned fund balance may serve as
a useful measure of a City’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City’s governmental funds reported combined ending
fund balances of $2,806,742, an increase of $464,831 from the prior year.
General Fund - The General Fund is the chief operating fund of the City. At the end of the
current fiscal year, unassigned fund balance was $1,555,261. As a measure of the General Fund’s
liquidity, it may be useful to compare unassigned fund balance to total fund expenditures.
Unassigned fund balance represents 20% of the June 30, 2013 General Fund expenditures.
Proprietary funds - The City’s proprietary funds provide the same type of information found in
the government-wide financial statements, but in more detail.
The City of Big Rapids’ enterprise operations consist of four separate and distinct activities. The
Wastewater, Water, Sanitation and Dial-A-Ride funds provide service to most residents and
businesses of the City. The Wastewater, Water, Sanitation and Dial-A-Ride funds decreased net
position by $315,255, $4,719, $196,937 and $111,521 respectively.
Budgetary Highlights
The City actively monitors its budget during the year. Accordingly, there were no actual
expenditures in excess of the City’s final adopted budget. Several budget amendments were
made during the year to adjust for unexpected revenues or expenditures.

Revenue adjustments were made to accommodate various grant awards and donations
that were not originally budgeted.

A significant increase to capital outlay was required during the year as the City purchased
a property during the year in the amount of $538,530. This purchase was not included in
the City’s original budget.
- 10 Capital Asset and Debt Administration
Capital assets - The City’s investment in capital assets for its governmental and business-type
activities as of June 30, 2013, amounted to $38,744,198 (net of accumulated depreciation). Of
this amount, $18,250,458 was for its governmental type activities and $20,493,740 was for its
business-type activities. This investment in capital assets includes land, buildings, equipment and
vehicles, and infrastructure.
Additional information on the City’s capital assets can be found in note 6 to these financial
statements.
Long-term Debt - At the end of the current fiscal year, the City had total long-term debt,
including compensated absences, outstanding of $14,584,707. Of this amount, $5,537,437 was
for governmental activities while $9,047,270 was for business-type activities.
The City’s issued new long-term debt in the amount of $550,000 and made payments of
$1,061,000 during the current fiscal year.
The City debt limit, as defined by statute, is ten percent (10%) of state equalized property values,
which currently equals $17,485,180. Total City’s long-term debt subject to this limit is
$4,674,000. The City is well under its debt limit as of June 30, 2013.
Additional information on the City’s long-term debt can be found in note 8 to these financial
statements.
Economic Factors and Next Year’s Budgets and Rates
While state shared revenues have been lower in recent years and negatively impacted provision
of general government services, these revenues have at least leveled off. Hopefully real property
values will also stabilize and even improve, which affect local property tax collections used for
provision of basic services. Looking ahead, we will continue to balance the budgets with tight
controls over spending, while striving to provide the City’s residents with the same level of
service to which they have been accustomed.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those
with an interest in the City’s finances. Questions concerning any of the information provided in
this report or requests for additional financial information should be addressed to the City
Treasurer, City of Big Rapids, 226 N. Michigan Avenue, Big Rapids, MI 49307.
- 11 BASIC FINANCIAL STATEMENTS
City of Big Rapids
June 30, 2013
Primary Government
Business-type
Activities
Governmental
Activities
ASSETS
Current Assets
Accounts Receivable
Due from County
Due from State
Loans Receivable
Prepaids
Inventory
Noncurrent Assets
Restricted Cash
Capital Assets
Land
Construction in Process
Depreciable Capital Assets, net
Total Assets
LIABILITIES
Current Liabilities
Accounts Payable
Accrued Liabilities
Customer Deposits
Unearned Revenue
Accrued Interest
Net Pension Obligation
Long-term Debt
Total Liabilities
NET POSITION
Restricted for:
Revenue Bond Retirement
Major & Local Streets
Contributions
Library
Playscape - Expendable Portion
Playscape - Corpus
Unrestricted
Total Net Position
$
$
2,448,012
514,587
-8,612
8,717
316,196
-90,376
96,818
50,000
3,533,318
$
2,757,301
462,441
17,476
--26,545
-6,966
53,395
-3,324,124
Component
Unit - DDA
Total
$
5,205,313
977,028
17,476
8,612
8,717
342,741
-97,342
150,213
50,000
6,857,442
$
122,551
3,000
----36,174
---161,725
--
165,500
165,500
--
5,055,550
236,837
12,958,071
21,783,776
374,821
-20,118,919
23,983,364
5,430,371
236,837
33,076,990
45,767,140
---161,725
88,285
213,605
-146,879
56,435
208,958
413,000
7,423
1,134,585
103,816
38,615
30,280
-62,525
38,179
585,000
-858,415
192,101
252,220
30,280
146,879
118,960
247,137
998,000
7,423
1,846,121
3,000
-------3,000
104,479
4,811,000
6,050,064
19,091
8,405,000
9,282,506
123,570
13,216,000
15,185,691
--3,000
13,026,458
11,503,740
24,530,198
--
-487,280
9,963
47,972
1,553
17,000
2,143,486
15,733,712
165,500
-----3,031,618
14,700,858
165,500
487,280
9,963
47,972
1,553
17,000
5,175,104
30,434,570
------158,725
158,725
$
$
$
The Notes to the Financial Statments are an integral part of these Financial Statements
- 13 -
City of Big Rapids
Statement of Activities
For the Year Ended June 30, 2013
Functions/Programs
Primary Government
Governmental Activities:
General Govenerment
Public Safety
Public Works
Interest on Long-term Debt
Total Governmental Activities
Business-type Activities:
Dial A Ride
Wastewater
Water
Sanitation
Total Business-type Activities
Total Primary Government
Component Unit
DDA
Total Component Unit
Charges for
Services
Expenses
$
2,260,252
3,544,831
2,063,940
971,073
188,025
9,028,121
$
539,783
2,131,514
2,072,511
1,008,973
5,752,781
14,780,902
$
$
50,408
50,408
$
265,075
305,362
106,816
189,597
-866,850
$
91,723
1,965,743
2,265,744
1,112,436
5,435,646
6,302,496
$
$
33,245
33,245
Program Revenues
Operating
Grants and
Contributions
$
34,716
-1,026,515
226,592
-1,287,823
Capital Grants
and
Contributions
$
-------
$
239,092
---239,092
1,526,915
$
-------
$
$
---
$
$
---
General Purpose Revenues and Transfers:
Revenues
Property Taxes
State Revenue
Income Taxes
Miscellaneous
Interest Income
Receipts from Component Unit
Transfers
Total General Revenues and Transfers
Change in Net Position
Prior Period Adjustment (See Note 13)
Net Position at Beginning of Period - Restated
Governmental
Activities
$
$
$
(1,960,461)
(3,239,469)
(930,609)
(554,884)
(188,025)
(6,873,448)
-----(6,873,448)
Net (Expense) Revenue
Primary Government
Business-type
Activities
$
$
------(208,968)
(165,771)
193,233
103,463
(78,043)
(78,043)
$
$
Component
Unit - DDA
Total
(1,960,461)
(3,239,469)
(930,609)
(554,884)
(188,025)
(6,873,448)
$
-------
(208,968)
(165,771)
193,233
103,463
(78,043)
(6,951,491)
-------
---
---
---
(17,163)
(17,163)
2,944,602
1,409,847
2,120,878
184,670
80,452
5,000
599,000
7,344,449
471,001
15,262,711
-15,262,711
15,733,712
---35,007
13,604
-(599,000)
(550,389)
(628,432)
15,470,514
(141,224)
15,329,290
14,700,858
2,944,602
1,409,847
2,120,878
219,677
94,056
5,000
-6,794,060
(157,431)
30,733,225
(141,224)
30,592,001
30,434,570
20,307
---2,325
(5,000)
-17,632
469
158,256
-158,256
158,725
$
- 14 -
$
$
City of Big Rapids
Balance Sheet
Governmental Funds
June 30, 2013
Other
Governmental
Funds
General
ASSETS
Accounts Receivable
Due from County
Due from State
Prepaids
Inventory
Total Assets
LIABILITIES
Accounts Payable
Accrued Liabilities
Unearned Revenue
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unearned Revenue
Total Liabilities and Deferred Inflows of Resources
FUND BALANCE
Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balance
Total Liabilities, Deferred Inflows of Resources and Fund Balance
$
$
$
$
1,350,663
458,713
2,037
8,717
194,623
26,468
-50,000
2,091,221
$
55,611
166,375
146,879
368,865
$
$
Total
Governmental
Funds
951,957
46,499
6,575
-121,573
1,273
34,543
-1,162,420
$
16,205
20,253
-36,458
$
$
2,302,620
505,212
8,612
8,717
316,196
27,741
34,543
50,000
3,253,641
71,816
186,628
146,879
405,323
35,000
403,865
6,576
43,034
41,576
446,899
76,468
-55,627
1,555,261
1,687,356
2,091,221
51,543
545,215
522,628
-1,119,386
1,162,420
128,011
545,215
578,255
1,555,261
2,806,742
3,253,641
$
- 15 -
$
City of Big Rapids
Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position
June 30, 2013
Total Fund Balance - Governmental Funds
$
2,806,742
Net Position of internal service funds that are treated as proprietary in the fund level
statements are treated as governmental in the entity-wide statements.
1,323,552
In the Statement of Activities, interest is accrued on outstanding bonds, whereas in
governmental funds, the interest expenditure is reported when due.
(56,435)
General government capital assets of $26,821,268, net of accumulated depreciation of
$9,702,181, are not financial resources, and accordingly are not reported in the funds.
17,119,087
Certain receivables are not available to pay for current period expenditures and, therefore,
are unearned in the funds.
41,576
Long-term liabilities are not due and payable in the current period and therefore are not
reported in the funds.
(5,224,000)
Compensated absences are not due in and payable in the current period, and therefore, are
not reported in the funds.
(269,387)
The net pension obligation is not paid form current financial resources and, therefore, is
excluded from the fund financial statements but is included as a current liability in the
government-wide financial statements.
Total Net Position - Governmental Funds
(7,423)
$
- 16 -
15,733,712
City of Big Rapids
Statement of Revenues, Expenditures, and Changes in Fund Balance
Governmental Funds
Other
Governmental
Funds
General
Revenues
Property Taxes
Income Taxes
Federal Revenue
State Revenue
Local Revenue Sharing
Licenses & Permits
Fines
Special Assessments
Reimbursements
Miscellaneous
Interest Income
Total Revenues
Expenditures
General Govenerment
Public Safety
Public Works
Capital Outlay
Debt Service - Principal
Debt Service - Interest
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
Other Financing Sources (Uses)
Issuance of Installment Purchase Contract
Transfers from Other Funds
Transfers to Other Funds
Net Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance at Beginning of Period
Fund Balance at End of Period
$
$
2,904,889
2,120,878
56,116
1,402,749
-65,545
478,860
93,284
6,825
85,000
136,916
75,326
7,426,388
$
39,713
-37
745,395
288,181
-41,098
98,768
4,726
-257,946
5,126
1,480,990
Total
Governmental
Funds
$
2,944,602
2,120,878
56,153
2,148,144
288,181
65,545
519,958
192,052
11,551
85,000
394,862
80,452
8,907,378
2,199,072
3,419,157
851,232
405,011
592,278
290,000
146,175
7,902,925
2,959
-1,049,884
381,917
297,087
26,000
51,075
1,808,922
2,202,031
3,419,157
1,901,116
786,928
889,365
316,000
197,250
9,711,847
(481,537)
(327,932)
(809,469)
550,000
962,100
(780,456)
731,644
255,107
1,432,249
1,687,356
-752,956
(215,300)
537,656
209,724
909,662
1,119,386
550,000
1,715,056
(995,756)
1,269,300
464,831
2,341,911
2,806,742
$
$
- 17 -
City of Big Rapids
Reconciliation of Governmental Funds Statement of Revenues, Expenditures, and
Changes in Fund Balance with Statement of Activities
Total Net Change in Fund Balances - Governmental Funds
$
464,831
Changes in net position of internal service funds that are treated as proprietary fund changes
in net position in the fund level statements are treated as governmental fund changes in net
position in the entity-wide statements.
(125,467)
Proceeds from debt issuance are reported as revenue in the fund statements, but reported as
liabilities in the Statement of Net Position.
(550,000)
Governmental fund report capital outlay as expenditures; however, in the Statement of
Activities, the cost of those assets is allocated over the estimated useful lives as depreciation
expense. This is the amount by which capital outlay expenditures of $889,365 is in excess
of depreciation expense of $539,774.
349,591
Changes to accrued interest are not shown in the fund financial statements. The net effect of
the current year decrease is to increase net position.
9,225
Change to compensated absences are not shown in the fund financial statements. The net
effect of the current year decrease is to increase net position.
21,500
Current year long-term debt principal payments on contractual obligations, bonds payable,
and capital leases are expenditures in the fund financial statements but are reductions in longterm debt in the government-wide financial statements.
316,000
Some receivables are long-term in nature and are collectable over several years. However,
the current receipts are reflected as revenues on the fund statements.
(7,256)
Changes to the net pension obligation are not shown in the fund financial statements. The net
effect of the current year increase is to decrease net position.
(7,423)
Changes in Net Position - Governmental Funds
$
- 18 -
471,001
City of Big Rapids
Proprietary Funds
June 30, 2013
Business-type Activities - Enterprise Funds
Dial A Ride
ASSETS
Current Assets
Accounts Receivable
Due from State
Prepaids
Inventory
Noncurrent Assets
Restricted Cash
Capital Assets
Land
Depreciable Capital Assets, net
Total Assets
LIABILITIES
Current Liabilities
Accounts Payable
Accrued Liabilities
Customer Deposits
Accrued Interest
Long-term Debt
Total Liabilities
NET POSITION
Restricted for:
Revenue Bond Retirement
Unrestricted
Total Net Position
$
$
Wastewater
59,914
1,807
17,476
-771
-79,968
$
Water
1,675,040
161,787
-26,545
3,834
-1,867,206
$
1,016,688
186,488
--2,009
53,395
1,258,580
Total Enterprise
Funds
Sanitation
$
5,659
112,359
--352
-118,370
$
2,757,301
462,441
17,476
26,545
6,966
53,395
3,324,124
Governmental
Activities
Internal Service
Funds
$
145,392
9,375
--62,635
62,275
279,677
--
--
165,500
--
165,500
--
-675,005
754,973
31,288
12,139,066
14,037,560
343,533
7,304,848
9,072,461
--118,370
374,821
20,118,919
23,983,364
1,131,371
1,411,048
2,197
9,848
--1,192
-13,237
10,974
14,022
-45,844
16,992
325,000
412,832
13,295
14,745
30,280
16,681
19,995
260,000
354,996
77,350
-----77,350
103,816
38,615
30,280
62,525
38,179
585,000
858,415
16,469
26,977
--29,366
-72,812
597
-13,834
8,496
7,010,000
7,431,328
9,998
1,395,000
1,759,994
--77,350
19,091
8,405,000
9,282,506
14,684
-87,496
675,005
4,835,354
5,993,381
--
11,503,740
1,131,371
-66,134
741,139
-1,770,878
6,606,232
165,500
1,153,586
7,312,467
-41,020
41,020
165,500
3,031,618
14,700,858
-192,181
1,323,552
$
$
$
$
- 19 -
$
City of Big Rapids
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
Dial A Ride
Operating Revenues
Miscellaneous
Total Operating Revenues
Operating Expenses
Salaries & Wages
Benefits
DPW Services
Materials & Supplies
Gas & Oil
Utilities
Repair & Maintenance
Equipment Purchases
Equipment Rental
Contracted Services
Professional Fees
Insurance
Self Insurance
Depreciation
Miscellaneous
Total Operating Expenses
Operating Income (Loss)
Non-Operating Revenues (Expenses)
Interest Income
Gain on Sale of Capital Assets
State Operating Grant
Federal Operating Grant
Interest Expense
Net Non-Operating Revenues (Expenses)
Income Before Contributions and Transfers
Change In Net Position
Prior Period Adjustment (See Note 13)
Net Position at Beginning of Period - Restated
$
$
91,723
1,282
93,005
Wastewater
$
1,965,743
31,066
1,996,809
Water
$
2,265,744
2,659
2,268,403
Sanitation
$
1,112,436
-1,112,436
Total Enterprise
Funds
$
5,435,646
35,007
5,470,653
Governmental
Activities
Internal Service
Funds
$
2,587,548
12,633
2,600,181
250,542
45,685
2,500
3,493
61,898
7,827
28,417
-557
2,707
2,740
5,661
-124,693
3,063
539,783
(446,778)
348,071
240,029
179,554
123,089
-208,570
128,660
-48,921
94,757
39,747
15,848
-515,601
-1,942,847
53,962
340,343
199,144
166,300
150,582
2,740
177,302
433,955
-55,862
29,536
31,913
20,464
-388,514
-2,006,655
261,748
17,800
-34,400
5,196
----19,526
932,051
-----1,008,973
103,463
956,756
484,858
382,754
282,360
64,638
393,699
591,032
-124,866
1,059,051
74,400
41,973
-1,028,808
3,063
5,498,258
(27,605)
537,452
594,563
22,000
30,502
135,876
33,313
118,128
32,168
8,782
39,465
3,841
83,719
804,865
192,497
-2,637,171
(36,990)
165
-164,776
74,316
-239,257
(207,521)
127,500
(31,500)
(111,521)
852,660
-852,660
741,139
9,250
---(188,667)
(179,417)
(125,455)
-(189,800)
(315,255)
7,000,407
(78,920)
6,921,487
6,606,232
4,189
---(65,856)
(61,667)
200,081
-(204,800)
(4,719)
7,379,490
(62,304)
7,317,186
7,312,467
------103,463
-(300,400)
(196,937)
237,957
-237,957
41,020
13,604
-164,776
74,316
(254,523)
(1,827)
(29,432)
127,500
(726,500)
(628,432)
15,470,514
(141,224)
15,329,290
14,700,858
1,257
14,566
-16,000
-31,823
(5,167)
-(120,300)
(125,467)
1,449,019
-1,449,019
1,323,552
$
$
$
$
- 20 -
$
City of Big Rapids
Proprietary Funds
Dial A Ride
Cash Flows from Operating Activities
Cash Received from Customers
Cash Payments to Employees for Services and Fringe Benefits
Cash Payments to Suppliers for Goods and Services
Total Cash Flows from Operating Activities
$
Cash Flows from Non-capital and Related Financing Activities
Transfers from (to) Other Funds
Grants & Contributions
Total Cash Flows from Non-capital and Related Financing Activities
Cash Flows from Capital and Related Financing Activities
Interest Expense
Principal Payment on Long-term Debt
Adjustment to / Acquisition of Capital Assets
Total Cash Flows from Capital and Related Financing Activities
Cash Flows from Investing Activities
Interest on Investments
Total Cash Flows from Investing Activities
Net Increase (Decrease) in Cash and Equivalents
Cash and Equivalents - Beginning of Year
Cash and Equivalents - End of Year
$
Wastewater
92,579
(296,743)
(119,036)
(323,200)
$
1,991,075
(584,591)
(878,191)
528,293
Water
$
2,281,198
(540,154)
(1,087,724)
653,320
96,000
246,249
342,249
(189,800)
(189,800)
(204,800)
(204,800)
-
(188,667)
(495,000)
(57,870)
(741,537)
(66,493)
(250,000)
(316,493)
165
165
19,214
40,700
59,914
9,250
9,250
(393,794)
2,068,834
1,675,040
$
$
4,189
4,189
136,216
1,045,972
1,182,188
Sanitation
$
1,107,761
(17,800)
(990,910)
99,051
Total Enterprise
Funds
Governmental
Activities
Internal Service
Funds
$
$
(300,400)
(300,400)
-
$
(201,349)
207,008
5,659
- 21 -
$
5,472,613
(1,439,288)
(3,075,861)
957,464
2,591,679
(1,129,760)
(1,363,592)
98,327
(599,000)
246,249
(352,751)
(120,300)
16,000
(104,300)
(255,160)
(745,000)
(57,870)
(1,058,030)
(308,439)
(308,439)
13,604
13,604
(439,713)
3,362,514
2,922,801
1,257
1,257
(313,155)
458,547
145,392
$
City of Big Rapids
Proprietary Funds
Dial A Ride
Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities
Operating Income
Adjustments to Reconcile Operating Income to Net Cash
Provided (Used) by Operating Activities
Depreciation and Amortization Expense
Changes in Assets & Liabilities
Accounts Receivable
Prepaids
Inventory
Accounts Payable
Accrued Liabilities
Customer Deposits
Accrued Interest
Net Cash Provided by Operating Activities
$
$
(446,778)
Wastewater
$
53,962
Water
$
261,748
124,693
515,601
388,514
(426)
(771)
598
547
(1,063)
(323,200)
(5,734)
(3,834)
(31,015)
137
(4,333)
3,509
528,293
12,795
(2,009)
41,715
(49,361)
983
3,085
(2,500)
(1,650)
653,320
$
$
Sanitation
$
103,463
Total Enterprise
Funds
Governmental
Activities
Internal Service
Funds
$
$
-
$
(4,675)
(352)
615
99,051
- 22 -
(27,605)
1,028,808
$
1,960
(6,966)
41,715
(79,163)
1,667
3,085
(6,833)
796
957,464
(36,990)
192,497
(3,025)
(33,492)
1,996
(24,914)
205
2,050
98,327
City of Big Rapids
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2013
Pension and
Benefit Trust
Agency
Funds
Pension Trust
Fund
ASSETS
Stock Mutual Funds & Equity Securities
Bond Mutual Funds & Debt Securities
Accounts Receivable
Prepaids
Total Assets
LIABILITIES
Accounts Payable
Due to Other Governmental Units
Advances from Other Funds
Total Liabilities
NET POSITION
Assets Held in Trust for Pension Benefits
$
308,044
2,447,386
1,391,937
1,815
-4,149,182
$
----$
4,149,182
87,610
--11,989
4,390
103,989
41,802
12,187
50,000
103,989
$
- 23 -
--
City of Big Rapids
Statement of Changes in Fiduciary Net Position
Fiduciary Fund
Pension Trust
ADDITIONS
Contributions
Employer
Participants
Total Contributions
$
Investment Return
Total Additions
447,565
1,194,178
DEDUCTIONS
Benefits Paid
Drop Benefits Paid
Refunds & Contributions to Defined Contribution Plan
Administrative Expenses
Total Deductions
Net Increase (Decrease)
624,066
122,547
746,613
597,405
10,514
292,530
13,534
913,983
$
280,195
3,868,987
4,149,182
- 24 -
City of Big Rapids
Note 1 – Summary of Significant Accounting Policies
The accounting policies of the City of Big Rapids, Michigan (the “City”) conform to generally
accepted accounting principles as applicable to governments. The following is a summary of the
significant policies.
Reporting Entity
These financial statements present the City and its component units, entities for which the City is
considered to be financially accountable. Blended component units, although legally separate
entities are, in substance, part of the City’s operations, so data from these units are combined
with data of the primary government. The City has no blended component units. Discretely
presented component units are reported in a separate column in the financial statements to
emphasize they are legally separate from the City.
Discretely Presented Component Units
The component unit columns in the government-wide financial statements include the
financial data of the Downtown Development Authority (DDA). This component unit
provide services to the businesses located within the district. It is reported in a separate
column to emphasize they are legally separate from the City.
The DDA was created to correct and prevent deterioration and to promote economic growth
within the downtown area. The DDA governing body consists of individuals that are
appointed by the City’s Commission. The City Commission approves the DDA’s budget and
has the ability to significantly influence operations of the DDA. Financial statements are not
separately issued for the DDA.
Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the Statement
of Activities) report information on all of the nonfiduciary activities of the primary government
and its component units. For the most part, the effect of interfund activity has been removed
from these statements. Exceptions to this general rule are changes between enterprise functions
and other various functions of the government. Elimination of these charges would distort the
direct costs and program revenues reported for the various functions concerned. Governmental
activities, which normally are supported by taxes and intergovernmental revenues, are reported
separately from business-type activities, which rely to a significant extent on fees and charges for
support. Likewise, the primary government is reported separately from certain legally separate
component units 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 is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
- 25 -
City of Big Rapids
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 properly included among program revenues are reported instead as general
revenues.
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.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary
fund financial statements, except for agency funds which do not have a measurement focus.
Revenues are recorded when earned and expenses are recorded when liability is incurred,
regardless of the timing of related cash flows. Property taxes are recognized as revenues in the
year for which they are levied. Grants and similar items are recognized as revenue as soon as all
eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the government considers revenues to be available if they are
collected within 60 days of the end of the current fiscal period, except for reimbursement-based
grants, state shared revenue and interest which use a one year collection period. Expenditures
generally are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due. Taxes, state revenue, licenses, grants, and
interest associated with the current fiscal period are all considered to be susceptible to accrual
and so have been recognized as revenues of the current fiscal period. All other revenue items are
considered to be measurable and available only when cash is received by the City.
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 enterprise fund are charges for services. The principal
operating revenues of the City’s internal service funds are charges to City departments for repairs
and equipment utilization, public works department services, and insurance coverage. Operating
expenses for the enterprise funds include depreciation on capital assets, labor, supplies and
contracted services. Operating expenses for the internal funds include the cost of services
- 26 -
City of Big Rapids
(including claims), administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as nonoperating revenues and expenses.
The City reports the following major governmental funds:
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.
The City reports the following major proprietary funds:
The Wastewater Enterprise Fund is used to account for the operations of the City’s wastewater
department that provides sewer services on a user charge basis.
The Water Enterprise Fund is used to account for the operations of the City’s water department
that provides water services on a user charge basis.
The Sanitation Fund is used to account for the cost of collecting and disposing of refuse on a
user charge basis.
The Dial-A-Ride is used to account for the operation of public transportation system that
provides transportation services on a user charge basis. A significant portion of the Dial-ARide’s operation is subsidized by state and federal operating grants.
Additionally, the City reports the following fund types:
The Special Revenue Funds are used to account for the proceeds of specific revenue sources
(other than permanent trusts or major capital projects) that are legally restricted to expenditures
for specified purposes.
The Capital Projects Funds account for the accumulation and disbursement of resources for the
construction of governmental fund capital projects.
The Permanent Fund is used to account for resources that are legally restricted to the extent that
only earnings, and not principal may be used for purposes that support the City programs.
The Enterprise Funds are used to account for operations of the City that are financed by charges
for the services provided.
The Internal Service Funds are used to account for shared services, equipment usage, and
insurance coverage provided to the City departments and funds on a cost reimbursement basis.
The Pension Trust Fund is used to account for the operations of the City Act 345 Pension Plan
which provides pension benefits to Public Safety Department employees.
- 27 -
City of Big Rapids
The Agency Funds are used to account for the collection and disbursement of funds that are
collected on behalf of outside governments or other parties.
Budgets and Budgetary Accounting
Comparisons to budget are presented for the general and special revenue funds. General and
special revenue funds adopt a legal budget with remaining funds maintaining budgets as a
management control device. The City follows these procedures in establishing the budgetary data
reflected in the financial statements:
1. The City Manager submits to the City Commission a proposed operating budget for the
fiscal year commencing the following July 1. The operating budget is adopted by activity.
2. Public hearings are conducted to obtain taxpayer comments.
3. Prior to July 1, the budget is legally enacted through passage of a resolution.
4. Formal budgetary integration is employed for the governmental fund types as a
management control device.
5. Budgets for the general and special revenue funds are adopted on a basis consistent with
generally accepted accounting principles (GAAP). Annual budgets lapse at fiscal year
end.
6. Adoption and amendments of all budgets used by the City are governed by Michigan
state law. The appropriations resolution is based on the projected expenditures budgets of
the department heads of the City. Any amendment to the original budget must meet the
requirements of Michigan law. Any revisions that alter the total expenditures of any
department must be approved by the City Commission. The City Manager is authorized
to transfer budgeted amounts within a department subject to the condition that the total
expenditures do not exceed the approved appropriations by department. Thus the legal
level of budgetary control is at the department level. Supplemental appropriations were
necessary during the year.
Cash and Pooled Investments
For the purpose of the Statement of Cash Flows, the City considers cash and pooled investments
to be cash and cash equivalents because the pooling of these balances allows for withdrawal at
any time similar to a demand deposit account.
Investments
Investments are stated at fair value at the balance sheet date.
- 28 -
City of Big Rapids
City investment policy allows for all investment authorized by State statutes. State statutes
authorize the City to invest in:
a) Bond, securities, other obligations and repurchase agreements of the United States, or an
agency or instrumentality of the United States.
b) Certificates of deposit, savings accounts, deposit accounts or depository receipts of a
qualified financial institution.
c) Commercial paper rated at the time of purchase within the two highest classifications
established by not less than two standard rating services and that matures not more than
270 days after the date of purchase.
d) Bankers acceptances of United States banks.
e) Obligations of the State of Michigan and its political subdivisions that, at the time of
purchase are rated as investment grade by at least one standard rating service.
f) Mutual funds registered under the Investment Company Act of 1940 with the authority to
purchase only investment vehicles that are legal for direct investment by a public
corporation.
g) External investment pools as authorized by Public Act 20 as amended.
The City pension plan is also allowed to invest in corporate debt and equity securities.
Receivables/Due from Other Governments
All receivables are recorded at their gross value and, where appropriate, are reduced by the
estimated portion that is expected to be uncollectible. Uncollectible balances are immaterial to
the financial statements.
Special assessments receivable consist of long-term receivables from customers and benefited
parties for various infrastructure improvement projects.
Loans Receivable
Loans receivable consist of loans to businesses located in the DDA for facility improvement
projects. Loan terms require various repayments schedules.
- 29 -
City of Big Rapids
Prepaid and Other Assets
Certain payments to vendors represent costs applicable to future accounting periods and are
recorded as prepaid and other assets in both the government-wide and fund financial statements.
Inventory
All inventories are valued at original cost using the first-in/first-out (FIFO) method. Inventory
represents parts, materials, and supplies utilized in the various City operations.
Advances to Agency Funds
Noncurrent portions of long-term interfund loans receivable in governmental funds are reported
as advances and are offset by nonspendable fund balance which indicates that the balance does
not represent expendable available financial resources.
Restricted Cash and Pooled Investments
Restricted balances represent required reserves for the payment of principal and interest on
outstanding bonds as well as other reserves required by bond agreements.
Capital Assets
Capital assets, which include land, construction in progress, buildings, vehicles and equipment,
and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the
governmental and business-type activities columns in the government-wide financial statements.
Capital assets are defined by the government as assets with an initial, individual cost of more
than $5,000 and an estimated useful life in excess of two years. Such assets are valued at cost
where historical records are available and at estimated historical cost where no historical records
exist. Donated capital assets are valued at their estimated fair market value on the date received.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized. Improvements are capitalized and depreciated
over the remaining useful lives of the related capital assets, as applicable.
No interest expense has been incurred or capitalized on capital assets reported in proprietary
funds.
- 30 -
City of Big Rapids
Depreciation on capital assets (including infrastructure) is computed using the straight-line
method over the following estimated useful lives:
Description
Buildings
Vehicles & Equipment
Public domain infrastructure
Useful Life
10 - 50 Years
5 - 50 Years
20 - 50 Years
Unearned Revenue / Deferred Inflows
Funds report unearned revenue and deferred inflows in connection with receivables for revenues
that are not considered to be available to liquidate liabilities of the current period or for resources
that have been received, but not yet earned. At the end of the current fiscal year, the various
components of unearned revenue and deferred inflows reported in the funds were as follows:
Governmental Funds
Fire Protection Contracts
Unavailable Receivables
Special Assessments
Total Governmental Funds
Current
Liability
$
140,303
6,576
$
146,879
Deferred
Inflow
$
$
41,576
41,576
Under contracts negotiated with employee groups and personnel policy, individual employees
have a vested right to receive payments for unused vacation and other compensation depending
on employment agreements. Accumulated compensated absences of governmental funds are
recorded on the Statement of Net Position and not on the governmental fund balance sheets
because the balance is not expected to be liquidated with expendable available financial
resources. Amounts accumulated for proprietary funds are reported on the statements of net
position of the individual enterprise funds. Compensated absences reported for governmental
activities are primarily liquidated from General Fund resources.
Long-term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial
statements, the long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type statements
of net position. For new bond issuances after the implementation of GASB Statement No. 34,
bond premiums and discounts are deferred and amortized over the life of the bonds using the
straight-line method which approximates the effective interest method. Bond issuance costs are
expensed during the current period in both the government-wide and proprietary fund financial
statements.
- 31 -
City of Big Rapids
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are reported
as other financing sources. Issuance costs, whether or not withheld from the actual debt proceeds
received, are reported as expenditures.
Net Position and Fund Balance Reporting
Governmental funds report fund balance in the following five categories:
1. Non-spendable - the related asset’s form does not allow expenditure of the balance. The
assets are either (a) not in a spendable form or (b) legally or contractually required to be
maintained intact. Nonspendable fund balance would be equal to inventory, prepaid
items, non-current financial assets, and the nonspendable portion of endowments.
2. Restricted - the related assets can only be spent for the specific purposes stipulated by
constitution, external resource providers, or as identified in enabling legislation.
3. Committed - the related assets can only be spent for a specific purpose identified by
formal action of the City Commission.
4. Assigned - the related assets can only be spent for a specific purpose identified by
management as authorized by the City Commission.
5. Unassigned - is the residual classification and includes all spendable amounts not
contained in the other classifications.
Fund Balance can only be committed by resolution of the City Commission.
Sometimes the government will fund outlays for a particular purpose from both restricted and
unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order
to calculate the amounts to report as restricted, committed, assigned, and unassigned fund
balance in the governmental fund financial statements a flow assumption must be made about the
order in which the resources are considered to be applied. It is the government’s policy to
consider restricted fund balance to have been depleted before using any of the components of
unrestricted fund balance. Further, when the components of unrestricted fund balance can be
used for the same purpose, committed fund balance is depleted first, followed by assigned fund
balance. Unassigned fund balance is applied last.
Property Taxes
City property taxes are attached as an enforceable lien on property as of December 31. Summer
taxes are levied July 1 and are due without penalty on or before September 15. Winter taxes are
levied December 1 and are due without penalty on or before February 14. Tax bills include the
- 32 -
City of Big Rapids
City’s own property taxes and taxes billed on behalf of other taxing units. Real property taxes
not collected as of March 1 are turned over to the County for collection, which advances the City
100% of the delinquent real property taxes. Collection of delinquent personal property taxes
remains the responsibility of the City Treasurer. Taxes collected on behalf of other taxing units
are accounted for in the agency funds. Property taxes levied in July of each year are recognized
as revenue in the year in which they are levied.
Income Taxes
The City has a local income tax for all city residents, businesses, and individuals working in the
City. Income taxes receivable represents estimated income taxes for wages and profits through
June 30, 2013 net of estimated refunds.
Intergovernmental Revenues
Grants and assistance awards made on the basis of entitlement periods are recorded as due from
other governments and revenue when entitlement occurs. Reimbursement-type grants are
recorded as intergovernmental receivables and revenues when the related expenditure/expenses
are incurred.
Interfund Transactions
During the course of normal operations, the City has numerous transactions between funds.
Transactions that constitute reimbursement to a fund for expenditures/expenses initially made
from it that are properly applicable to another fund, are recorded as expenditures/expenses in the
reimbursing fund and as a reduction of expenditures/expenses in the fund that is reimbursed.
Changes between enterprise funds and other functions of the City are not reimbursements
because elimination of these charges would distort the direct costs and program revenues
reported for the various functions concerned. Remaining transactions are generally reflected as
transfers.
Note 2 – Statutory Compliance
Excess of expenditures over appropriations in budgetary funds
Michigan law provides that a local unit shall not incur expenditures in excess of the amount
appropriated.
The City’s actual expenditures and budgeted expenditures for the budgeted funds have been
shown at the department level. The approved budgets of the City for these budgeted funds were
also adopted at the department level.
During the year ended June 30, 2013, the City did not incur any excess of expenditures over
appropriations.
- 33 -
City of Big Rapids
Note 3 – Cash and Investments
The captions on the financial statements relating to cash and pooled investments and investments
are as follows:
Investments
Restricted Cash
Total
Primary
Government
$ 5,205,313
165,000
$ 5,370,313
Component Units
$
122,551
$
122,551
Fiduciary Funds
$
395,654
3,839,323
$ 4,234,977
$
$
Total
5,723,518
3,839,323
165,000
9,727,841
The cash and investments making up the above balances are as follows:
Deposits
Investments
Petty Cash
Total
$
$
2,733,470
6,991,771
2,600
9,727,841
The deposits are in financial institutions in varying amounts. All accounts are in the name of the
City and a specific fund or common account. They are recorded in City records at fair value.
Interest is recorded when earned.
Custodial Credit Risk - Deposits. Custodial credit risk is the risk that in the event of a bank
failure, the City’s deposits may not be returned. State law does not require, and the City does not
have, a policy for deposit custodial credit risk. As of year-end, $714,162 of the City’s bank
balance of $3,001,597 was exposed to custodial credit risk because the balance was uninsured
and uncollateralized.
- 34 -
City of Big Rapids
Investments
The City chooses to disclose its investments by specifically identifying each. As of year-end, the
City had the following investments:
Investment
Cash & Cash Equivalents
Certificates of Deposits
Mutual Fund Accounts
Money Market Mutual Funds
FNMA Pool
FHLMC Pools
GNMA Pools
GNMA Unit Investment Trust
Maturity
N/A
2013-2014
N/A
N/A
7/25/2020
2017-2018
2016-2034
N/A
Fair Value
$
602,832
863,633
2,879,328
530,931
157
5,980
46,106
1,959,816
Preferred Stock
Gen Motors Note 7.25%
GMAC LLC Note 7.375%
Pulte Homes 7.19%
Fifth Third Capital Trust V 7.25%
Gladstone Commercial 7.44%
HSBC Holdings 6.2%
Ing Group 6.42%
Royal Bank of Scotland 7.57%
Rating
N/A
N/A
AAA
N/A
N/A
N/A
Source
Moody's
25,060
5,124
20,160
14,928
19,080
6,537
Common Stock
General Motors Rights & Warrants
Motors Liquidation Co
General Motors
AXM Pharma
Nortel Networks Corp.
AOL
Ultimate Franchise Systems
Total
$
5,447
1,336
4,930
15
2
365
4
6,991,771
Investment and deposit risk
Interest Rate Risk - State law and City policy limit the allowable investments and the maturities
of some of the allowable investments as identified in Note 1, the summary of significant
accounting policies. The City’s investment policy does not have specific limits in excess of state
- 35 -
City of Big Rapids
law on investment maturities as a means of managing its exposure to fair value losses arising
from increasing interest rates. The maturity date for each investment is identified above for
investments held at year-end.
Credit Risk - State law limits investments to specific government securities, certificates of
deposits and bank accounts with qualified financial institutions, commercial paper with specific
maximum maturities and ratings when purchased, bankers acceptances of specific financial
institutions, qualified mutual funds and qualified external investment pools as identified in Note
1, the summary of significant accounting policies. The investment policy does not have specific
limits in excess of state law on investment credit risk. The rating for each investment is identified
above for investments held at year end.
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. State law does
not require and the City does not have a policy for investment custodial credit risk. Of the above
$6,942,119 of investments, the City has a custodial credit risk of $5,525,306 because the related
securities are uninsured, unregistered and held by the government’s brokerage firm which is also
the counterparty for these particular securities. Of the above mutual fund investments the City’s
custodial credit risk exposure cannot be determined because the mutual funds do not consist of
specifically identifiable securities.
Concentration of Credit Risk - State law limits allowable investments but does not limit
concentration of credit risk as identified in Note 1, the summary of significant accounting
policies. The City’s investment policy does not have specific limits in excess of state law on
concentration of credit risk. All investments held at year-end are reported above.
Note 4 – Advances Between Funds
Advances receivable and payable at June 30, 2013 were as follows:
Payable Fund
Payroll Agency
Fund
Total
Receivable Fund
General Fund
$
50,000
$
50,000
Total
$
50,000
$
50,000
Advances represent long-term loans between the General Fund and the payroll agency fund
primarily to provide cash flow for payroll clearing activities.
- 36 -
City of Big Rapids
Note 5 – Interfund Transactions
Transfers in and out for the year ended June 30, 2013 are as follows:
Transfer
from
Other
Funds
General Fund
General Fund
$
Nonmajor Governmental Funds
652,956
Dial A Ride
127,500
$
780,456
General Fund
Dial A Ride
Sanitation
300,400
$
300,400
$
Transfer to Other Funds
Nonmajor
Governmental
Internal
Funds
Service Funds
$
165,300
$
70,300
100,000
$
265,300
$
70,300
$
Water
204,800
$
204,800
Dial A Ride
$
31,500
45,000
$
76,500
Wastewater
$
189,800
$
189,800
Total
962,100
797,956
127,500
$ 1,887,556
$
Transfers are used to 1) move unrestricted revenues collected in the General Fund to finance
capital and other various programs accounted for in other funds in accordance with budgetary
authorizations and 2) move allocated cost of general operations to applicable funds.
There were no interfund receivables and payables of individual funds at June 30, 2013.
- 37 -
City of Big Rapids
Note 6 – Capital Assets
Capital asset activity for the year was as follows:
Governmental Activities
Capital assets not being depreciated
Land
Total capital assets not being depreciated
June 30, 2012
$ 5,055,550
73,857
5,129,407
Capital assets being depreciated
Buildings
Infrastructure
Total capital assets, being depreciated
Additions
$
187,814
187,814
Reductions
$
-
Transfers from
Construction in
Process
$
(24,834)
(24,834)
June 30, 2013
$ 5,055,550
236,837
5,292,387
10,439,976
4,178,694
6,316,089
20,934,759
538,530
53,636
109,385
701,551
132,266
132,266
24,834
24,834
10,978,506
4,100,064
6,450,308
21,528,878
Less accumulated depreciation
Buildings
Infrastructure
Total accumulated depreciation
5,796,585
2,580,437
917,651
9,294,673
217,470
142,049
180,255
539,774
132,266
132,266
-
6,014,055
2,590,220
1,097,906
9,702,181
Internal Service Fund Capital Assets
1,000,866
394,986
264,478
-
1,131,374
Net capital assets being depreciated
Governmental Activities Capital Assets, Net
Internal Service Fund
Buildings
Total capital assets being depreciated
Buildings
Internal Service Capital Assets, Net
12,640,952
$ 17,770,359
June 30, 2012
$
701,459
2,788,567
3,490,026
580,147
1,909,013
2,489,160
$ 1,000,866
161,777
349,591
$
Additions
$
$
- 38 -
327,343
327,343
18,823
173,674
192,497
134,846
$
-
Reductions
$
$
71,981
71,981
67,643
67,643
(4,338)
$
24,834
-
Transfers from
Construction in
Process
$
$
12,958,071
$ 18,250,458
June 30, 2013
-
$
701,459
3,043,929
3,745,388
-
598,970
2,015,044
2,614,014
$ 1,131,374
City of Big Rapids
Business-type Activities
Capital assets not being depreciated
Land
Total capital assets not being depreciated
Buildings
Infrastructure
Total capital assets, being depreciated
Buildings
Infrastructure
Net capital assets being depreciated
Business-type Activities Capital Assets, Net
June 30, 2012
$
374,821
374,821
Additions
$
13,339,889
1,613,604
19,939,792
34,893,285
3,291,301
528,792
9,925,465
13,745,558
21,147,727
$ 21,522,548
-
Reductions
$
-
436,089
160,487
432,232
1,028,808
(1,028,808)
$ (1,028,808)
$
-
Transfers from
Construction in
Process
$
-
June 30, 2013
$
374,821
374,821
-
-
13,339,889
1,613,604
19,939,792
34,893,285
-
-
3,727,390
689,279
10,357,697
14,774,366
20,118,919
$ 20,493,740
$
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General Government
Public Safety
Public Works
Motor Pool
Business-type Activities:
Wastewater
Water
Dial A Ride
Total Business-type Activites
- 39 -
$
$
$
65,799
129,277
160,241
184,457
192,497
732,271
515,601
388,514
124,693
$ 1,028,808
City of Big Rapids
Note 7 – Pension Plans
The City provides the following pension plans to employees meeting specific requirements based
on positions status, City policy and bargaining agreements:
Michigan Municipal Employees Retirement System (MERS)
Agent multiple employer defined benefit and defined contribution retirement plans
Self-administered Michigan Act 345 Retirement System
Single employer defined benefit and defined contribution retirement plans
Public Safety department bargaining unit employees and supervisory personnel (police and fire
staff) participate in either the Act 345 Retirement System defined contribution or defined benefit
plans. Remaining eligible employees participate in either the MERS defined contribution or
defined benefit plans.
Defined Contribution Pension Plans
The City provides several defined contribution pension plans, which provide pension benefits to
qualified employees. In a defined contribution plan, benefits depend solely on amounts
contributed to the plan plus investment earnings. The City’s contribution for employees eligible
to participate in the plans vests based on year of service with 100% vesting occurring after 7
years of service. The City and participants contribute a percentage of participant salary to the
plans based on the participant’s position with the City. City contributions to the Act 345 plan
range from 5.5% to 8% of salary and participants contributions range from 2% to 4% of salary.
City contributions to the MERS plan range from 8% to 9.5% of salary and participant
contributions range from 4% to 5.5% of salary. City contributions were $173,934 and $148,873
and participant contributions were $115,286 and $76,627 to the Act 345 plan and the MERS plan
respectively. The plan provisions and contribution amounts were established by the City
commission and may be amended by the Commission. The plans are administered as noted
above.
MERS Plan Description
The City participates in the Municipal Employees’ Retirement System of Michigan (MERS), an
agent multi-employer defined benefit pension plan providing retirement, death and disability
benefits. The System is administered by the MERS retirement board. Act No. 427 of the Public
Acts of 1984, as amended, establishes and amends the benefit provisions of the participants in
MERS. A publicly available financial report that includes financial statements and required
supplementary information for MERS may be obtained by writing to the Municipal Employees
Retirement System of Michigan, 1134 Municipal Way, Lansing, Michigan 48917.
The City is required to contribute at an actuarially determined amount, which for the current year
was $511,584. The employees are required to contribute from 1.87% to 3.95% of gross wages to
- 40 -
City of Big Rapids
the Plan based on division within MERS. The contribution requirements of the City are
established and may be amended by the MERS Retirement Board. The contribution requirements
of employees are established and may be amended by employment and labor agreements.
For the year ended June 30, 2013, the City’s annual pension cost of $511,584 for MERS was
equal to the City’s required and actual contributions. The required contribution was determined
as part of the December 31, 2011 actuarial valuation using the entry age actuarial cost method.
The actuarial assumptions included: (a) a rate of return on the investment of present and future
assets of 8%; and (b) projected salary increases of 4.5% long term (2% annually for 2010-2014)
based on inflation, plus from 0% to 8.4% based on an age-related scale to reflect merit, longevity
and promotional salary increases. The actuarial value of MERS assets was determined on the
basis of a valuation method that assumes the fund earns the expected rate of return and includes
an adjustment to reflect fair value. The difference in investment income between expected return
and market return is recognized over a 10-year period at the rate of 10% per year. The City’s
unfunded actuarial accrued liability is being amortized at a level percentage of projected payroll
on an open basis. The remaining amortization period at December 31, 2012, the date of the most
recent valuation, was 27 years.
The required schedule of funding progress immediately following the notes to the financial
statements presents multi year trend information about whether the actuarial value of plan assets
is increasing or decreasing over time relative to the actuarial accrued liabilities of benefits.
Three-Year Trend Information
Fiscal
Annual
Percentage
Year
Pension
of APC
Ending
Cost
Contributed
6/30/2011 $
412,044
100%
6/30/2012
455,051
100%
6/30/2013
511,584
100%
Net
Pension
Obligation
$
-
Funding Progress
Actuarial
Valuation
Date
12/31/2012
Actuarial
Value of
Assets
(a)
$ 8,719,262
Actuarial
Accrued
Liability
(AAL)
Entry Age
(b)
$ 13,969,573
Unfunded
AAL
(UAAL)
(b-a)
$ 5,250,311
Funded
Ratio
Total
62%
Covered
Payroll
(c )
$ 1,078,807
UAL as a
Percentage
of Covered
Payroll
((b-a)/c)
487%
Act 345 Plan Description
The City has a single-employer defined benefit retirement plan which provides pension, death
and disability benefits to public safety department policemen and firemen. Act 345 assigns the
authority to establish and amend benefit provisions and contribution requirements to the City,
- 41 -
City of Big Rapids
subject to the terms of collective bargaining agreements. Plan members are required to contribute
6% of their annual covered salary depending on the applicable collective bargaining agreement
and/or unit assignment. The City is required to contribute at an actuarially determined rate of
$457,423 of which $450,000 was contributed to the plan in the current year. Membership of the
Act 345 defined benefit plan consisted of the following at the date of the latest actuarial
valuation (June 30, 2012):
Act 345 Defined Benefit Plan
Retirees and beneficiaries receiving benefits
24
Terminated plan members entitled to but not yet receiving benefits
1
Active plan members
1
Total Participants
26
*This plan is closed to additional participants*
The City’s annual pension cost and net retirement benefits obligation for the current year were as
follows:
Act 345 Defined Benefit Plan
Annual requried contrbution / pension cost
$
457,423
Contributions made
450,000
Net pension obligation, end of year
$
7,423
Projections of benefits are based on the substantive plan (the plan as understood by the employer
and plan members) and include the types of benefits in force at the actuarial valuation date.
Actuarial calculations reflect a long-term perspective and employ methods and assumptions that
are designed to reduce short–term volatility in the value of actuarial assets and liabilities.
Significant methods and assumptions are as follows:
Act 345 Plan Methods & Assumptions
Actuarial valuation date
6/30/2012
Actuarial cost method
Entry-Age Normal
Amortization method
Level Dollar
Remaining amortization period
10-year Closed
Asset Valuation method
4-year smoothed market
Actuarial assumptions:
Investment rate of return*
Projected salary increases*
Cost-of-living adjustments
Assumed rate of membership growth
7%
2% plus merit & longevity
N/A
0%
*
includes inflation at 2%
- 42 -
City of Big Rapids
Plan member contributions are recognized in the period in which the contributions are due.
Employer contributions to each plan are recognized when due and the employer has made a
formal commitment to provide the contributions. Benefits and refunds are recognized when due
and payable in accordance with the terms of each plan.
Three-Year Trend Information
Fiscal
Annual
Percentage
Year
Pension
of APC
Ending
Cost
Contributed
6/30/2011 $
381,900
100%
6/30/2012
381,900
100%
6/30/2013
457,423
98%
Net
Pension
Obligation
$
7,423
Funding Progress
Actuarial
Valuation
Date
6/30/2012
Actuarial
Value of
Assets
(a)
$ 3,803,532
Actuarial
Accrued
Liability
(AAL)
Entry Age
(b)
$
7,127,461
Unfunded
AAL
(UAAL)
(b-a)
$ 3,323,929
Funded
Ratio
Total
53%
Covered
Payroll
(c )
$
65,608
UAL as a
Percentage
of Covered
Payroll
((b-a)/c)
5066%
GASB Statements require supplementary information to be presented after the notes to the
financial statements section in this report. The required schedule of funding progress
immediately following the notes to the financial statements presents multi-year trend information
about whether the actuarial value of plan assets is increasing or decreasing over time relative to
the actuarial accrued liabilities of benefits. The actuarial cost method does not identify or
separately amortize unfunded actuarial accrued liabilities. Information about funded status and
funding progress is presented using the entry age actuarial cost method, and the information
presented is intended to serve as a surrogate for the funded status and funding progress of the
plan. A stand-alone financial report of the Act 345 defined benefit plan has not been issued.
- 43 -
City of Big Rapids
Note 8 – Long-term Debt
The following is a summary of the debt transactions of the City for the year ended June 30, 2013:
$562,000 USDA Fire Truck General Obligation
Bonds; due in annual installments of $28,000 to
$49,000 through 2025, plus interest at 4%
Balance at
June 30, 2012
$
505,000
Additions
$
Balance at
June 30, 2013
Deletions
-
$
30,000
$
475,000
Due Within
One Year
$
31,000
$1,400,000 USDA Community Hangar General
Obligation Bonds; due in annual installments of
$25,000 to $77,000, plus interest at 2.5%
1,375,000
-
26,000
1,349,000
62,000
$3,345,000 Unlimited Tax General Obligation
refunding bonds, series 2010; due in annual
installments of $235,000 to $455,000, plus interest
at 2.0% to 4.0%
3,110,000
-
260,000
2,850,000
275,000
-
550,000
-
550,000
45,000
4,990,000
332,887
$ 5,322,887
550,000
550,000
316,000
19,449
335,449
5,224,000
313,438
$ 5,537,438
$
413,000
208,958
621,958
Balance at
June 30, 2013
Due Within
One Year
$550,000 Installment Purchase Contract; due in
annual installments of $45,000 to $66,000, plus
interest at 2.29%
Total
Accrued Employee Benefits
$2,000,000 Wastewater Treatment System
Revenue Bonds, Series 1993; due in annual
installments of $75,000 to $175,000 through
September 1, 2012, plus interest at 5%
Act 94 Sewage Disposal System Revenue Bonds,
Series 2009; due in annual installments of
$310,000 to $500,000 beginning October 1, 2011
through October 1, 2030, plus interest at 2.5%
$2,635,000 Water Supply System Revenue
Refunding Bonds, Series 2006; due in annual
installments of $85,000 to $210,000 through
October 1, 2019, plus interest at 4% to 4.25%
Total
Accrued Employee Benefits
Total Business-type Activities
$
Balance at
June 30, 2012
$
175,000
Additions
$
$
Deletions
-
$
175,000
$
-
$
-
7,655,000
-
320,000
7,335,000
325,000
1,905,000
9,735,000
56,474
$ 9,791,474
796
796
250,000
745,000
745,000
1,655,000
8,990,000
57,270
$ 9,047,270
260,000
585,000
38,179
623,179
$
- 44 -
$
$
City of Big Rapids
The annual requirements to amortize all debt outstanding (excluding accrued employee benefits)
as of June 30, 2013 are as follows:
Year Ending
June 30
2014
2015
2016
2017
2018
2019-2023
2024-2028
2029-2033
2034-2038
2039-2041
Totals:
Principal
Interest
Total
$ 378,000
$ 176,801
$ 554,801
403,000
166,624
569,624
426,000
155,761
581,761
450,000
142,740
592,740
487,000
128,976
615,976
1,958,000
375,077
2,333,077
314,000
178,321
492,321
265,000
127,406
392,406
320,000
72,713
392,713
223,000
12,731
235,731
$ 5,224,000
$ 1,537,150
$ 6,761,150
Principal
Interest
Total
$ 585,000 $ 240,838 $ 825,838
610,000
221,888
831,888
645,000
201,888
846,888
555,000
183,138
738,138
560,000
166,200
726,200
2,370,000
600,088
2,970,088
2,205,000
323,063
2,528,063
1,460,000
55,375
1,515,375
$ 8,990,000 $ 1,992,478
$ 10,982,478
Note 9 – Risk Management
The City is self-funded for medical, dental, optical and disability insurance. The claims liability
of $0 reported at June 30, 2013 is based on the requirements of accounting standards which
require that a liability for claims be reported if it is probable that a liability has been incurred and
the amount of the loss can be reasonably estimated.
The activity of the self-funded insurance is accounted for in the self-insurance internal service
fund. An independent administrator is contracted to process the daily claims. An excess coverage
insurance policy covers individual claims in excess of $60,000 per family. The City discontinued
its self-funded insurance plan during the year and has implemented a group insurance plan as of
June 30, 2013. The City is responsible for paying administrative charges which are included in
this fund. The revenues for this fund’s operation are reimbursements from various funds,
employee withholdings, and co-payments. The liability at the end of the year included claims
already incurred and reported as well as an estimate for claims incurred but not reported. Claim
liabilities are calculated considering the effects of inflation and recent claim settlement trends
including frequency and amount of pay-outs and other economic and social factors. Settled
claims have not exceeded insurance coverage in the history of the self-insurance program, and
there have been no significant reductions in insurance coverage from the prior year.
- 45 -
City of Big Rapids
The changes in the claims liability for the Current
years ended
YearJune 30, 2013 and 2012 were as follows:
Year
2012
2013
Beginning of
Year Liability
$
33,327
-
Claims and
Changes in
Estimates
$
917,669
804,865
Claim
Payments
$
950,996
804,865
End of Year
Liability
$
-
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction
of assets; errors and omissions; injuries to employees; and natural disasters for which the
government carries commercial insurance and participates in the Michigan Municipal Liability
and Property Pool (the Pool). The City is covered for property and liability coverage through the
pool. The City’s contributions to the Pool are combined with other member contributions to
provide members with coverage for property and liability claims. Funds not needed to pay claims
or maintain reserves are either distributed to the members or credited toward future
contributions. Settled claims have not exceeded commercial insurance coverage in any of the
past three fiscal years. There were no changes in insurance coverage from the prior year.
Note 10 – Economic Dependency
Ferris State University is a major customer of the City’s wastewater, water, and sanitation
services. During the year ended June 30, 2013, revenue attributable to charges for these services
was recognized in the City’s wastewater, water and sanitation funds in the amount of $549,344,
$698,625, and $239,425, respectively.
Note 11 - Litigation
In the normal course of its operations, the City has become a party in various legal actions,
including property tax appeals. Management of the City is of the opinion that the outcome of
such actions will not have a material effect on the financial position of the City. Amounts
reserved for losses related to legal actions have not been included as a liability in the financial
statements.
Note 12 – Detachment Settlement
As a result of an election on May 14, 1991, a total of 1,124 acres of City property was detached
from the City and transferred to the adjoining Big Rapids Township. Various real property
owned by the City of Big Rapids (airport, community swimming pool and cemetery) are located
in the detached area. Ownership of the cemetery transferred to the Township by operation of law
at the date of detachment.
Negotiations between the City and the Township regarding other City property, apportionment of
City assets and debt, and other issues resulted in a Mutual Settlement Agreement between the
two units on October 20, 1992. As a result of the settlement, no apportionment of City assets and
- 46 -
City of Big Rapids
debt as of the date of detachment was made; the City retained ownership of the airport and
swimming pool; and state shared revenues received by the City arising from the detached area
from May 14, 1991 to June 30, 1992 were paid to the Township (total amount of $43,499). State
revenue sharing is allocated to the City and Township based on corrected population after that
date.
Note 13 – Prior Period Adjustments
Restatements were made to beginning net equity at July 1, 2012, as follows:

Net position of the Wastewater Fund and Business-type Activities were decreased by
$78,920 to adjust the net book value of capital assets.

The net position of the Water Fund was decreased by $62,304 to follow newly issued
standard GASB 65 “Items previously reported as assets and liabilities” which does not
allow deferring and amortizing the issuance costs associated with bond refundings.
- 47 -
REQUIRED SUPPLEMENTARY INFORMATION
City of Big Rapids
Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual
General Fund
Budgeted Amounts
Original
Final
Revenues
Property Taxes
Income Taxes
Federal Revenue
State Revenue
Licenses & Permits
Fines
Special Assessments
Reimbursements
Miscellaneous
Interest Income
Total Revenues
Other Financing Sources
Issuance of Installment Purchase Contract
Total Revenues and Other
Financing Sources
Expenditures
General Government
City Commission
City Managers Office
Elections
Assessor
City Attorney
Clerks Office
Treasurers Office
Income Tax Administration
Information Management
Public Buildings
Personnel Administration
Neighborhood Services
Planning Board
Total General Government
$
2,983,900
1,845,000
411,000
1,268,800
63,300
468,400
193,700
15,000
85,000
58,900
30,500
7,423,500
$
2,983,900
1,845,000
411,000
1,268,800
63,300
468,400
193,700
15,000
85,000
55,400
30,500
7,420,000
Variance
Positive
(Negative)
Final to Actual
Actual
$
2,971,435
2,120,878
56,116
1,402,749
65,545
478,860
93,284
6,825
85,000
131,916
8,780
7,421,388
$
(12,465)
275,878
(354,884)
133,949
2,245
10,460
(100,416)
(8,175)
-76,516
(21,720)
1,388
-971,100
550,000
971,100
550,000
967,100
-(4,000)
8,394,600
8,941,100
8,938,488
(2,612)
105,100
139,900
18,700
135,400
174,300
308,800
319,900
137,100
475,800
73,100
11,000
252,700
1,000
2,152,800
109,000
145,600
18,700
130,300
197,200
323,500
375,900
148,000
521,500
65,600
7,500
255,700
400
2,298,900
107,906
145,020
16,766
129,242
196,597
321,569
373,086
147,702
444,656
60,592
6,792
248,794
350
2,199,072
1,094
580
1,934
1,058
603
1,931
2,814
298
76,844
5,008
708
6,906
50
99,828
- 49 -
City of Big Rapids
General Fund
Budgeted Amounts
Original
Final
Expenditures
Public Safety
Police Department
Fire Department
Other Public Safety
Total Public Safety
Public Works
Public Service
Sidewalks, Alleys and Storm Sewers
Parking
City Decorations
Total Public Works
Parks
Recreation Program
Total Recreation & Culture
Debt Service & Capital Outlay
Principal
Interest and Fiscal Charges
Capital Outlay
Total Debt Service & Capital Outlay
Total Expenditures
Other Financing Uses
Total Expenditures and Other
Financing Uses
Excess (Deficiency) of Revenues and
Other Sources Over Expenditures
and Other Uses
$
Variance
Positive
(Negative)
Final to Actual
Actual
2,100,000
860,900
327,600
3,288,500
2,160,600
896,600
372,300
3,429,500
2,155,727
891,908
371,522
3,419,157
4,873
4,692
778
10,343
547,200
133,700
87,900
73,900
842,700
601,600
133,000
88,500
68,400
891,500
596,676
110,365
78,648
65,543
851,232
4,924
22,635
9,852
2,857
35,344
455,400
84,700
540,100
369,100
81,800
450,900
329,889
75,122
405,011
39,211
6,678
45,889
290,000
461,400
58,000
809,400
7,633,500
290,000
461,400
593,800
1,345,200
8,416,000
290,000
146,175
592,278
1,028,453
7,902,925
-315,225
1,522
316,747
513,075
655,500
835,500
780,456
55,044
8,289,000
9,251,500
8,683,381
568,119
105,600
105,600
1,432,249
1,537,849
(310,400)
(310,400)
1,432,249
1,121,849
255,107
255,107
1,432,249
1,687,356
565,507
565,507
-565,507
- 50 -
$
$
$
City of Big Rapids
MERS Agent Multiple-Employer Defined Benefit Pension Plan
Schedule of Funding Progress (Unaudited)
Actuarial
Valuation
Date
12/31/2010
12/31/2011
12/31/2012
$
Actuarial
Value of
Assets
(a)
8,610,397
8,666,170
8,719,262
$
Actuarial
Accrued
Liability
(AAL)
Entry Age
(b)
13,572,437
13,919,244
13,969,573
Unfunded
AAL
(UAAL)
(b-a)
$
4,962,040
5,253,074
5,250,311
- 51 -
Funded
Ratio
Total
63%
62%
62%
$
Covered
Payroll
(c )
1,255,926
1,166,250
1,078,807
UAL as a
Percentage
of Covered
Payroll
((b-a)/c)
395%
450%
487%
City of Big Rapids
Act 345 Plan
Schedule of Funding Progress
Actuarial
Valuation
Date
6/30/2001
6/30/2002
6/30/2003
6/30/2004
6/30/2005
6/30/2006
6/30/2007
6/30/2008
6/30/2009
6/30/2010
6/30/2012
Actuarial
Value of
Assets
(a)
$
5,435,591
5,322,976
5,128,457
5,027,953
4,880,967
4,982,431
5,165,289
5,229,477
4,890,745
4,542,530
3,803,532
Actuarial
Accrued
Liability
(AAL)
Entry Age
(b)
$
5,435,591
5,322,976
5,128,457
5,027,953
4,880,967
4,982,431
5,165,289
7,603,044
7,270,497
7,188,103
7,127,461
Unfunded
AAL
(UAAL)
(b-a)
$
2,373,567
2,379,752
2,645,573
3,323,929
Funded
Ratio
Total
100%
100%
100%
100%
100%
100%
100%
69%
67%
63%
53%
Covered
Payroll
(c )
428,358
375,274
406,535
364,277
240,029
53,108
54,826
58,760
59,281
50,142
65,608
UAL as a
Percentage
of Covered
Payroll
((b-a)/c)
0%
0%
0%
0%
0%
0%
0%
4039%
4014%
5276%
5066%
*An Actuarial Valuation was not performed as of June 30, 2011
Schedule of Employer Contributions
Year Ended
June 30,
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Annual Required
Contribution
$
82,486
102,454
167,862
160,172
284,350
300,000
300,000
326,000
326,000
381,900
381,900
457,423
Actual
Contribution
$
82,486
102,454
167,862
160,172
284,350
300,000
300,000
326,000
326,000
381,900
381,900
450,000
- 52 -
Precent
Contributed
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
98%
OTHER SUPPLEMENTARY INFORMATION
City of Big Rapids
Nonmajor Governmental Fund Descriptions
SPECIAL REVENUE FUNDS
Major Streets Fund - is used to account for the receipt and expenditures of state shared gas and
weight taxes under Act 51, P.A. 1951 as amended which are for use on major streets. Gas and weight
taxes are distributed to cities and villages in Michigan on the basis of population and the number of
miles of streets.
Local Streets Fund - This fund is used to account for the receipt and expenditures of state shared gas
and weight taxes under Act 51, P.A. 1951 as amended which are for use on local streets within the
City. Gas and weight taxes are distributed to cities and villages in Michigan on the basis of population
and the number of miles of streets.
Library Fund - This fund is used to account separately for activities of the City Library.
Pool - This fund is used to account for revenues and expenditures resulting from pool operations.
Dog Park - This fund is used to account for revenues and expenditures resulting from dog park
operations.
The Robin-Hood Airport Fund is used to account for the revenues and expenditures of the RobinHood Airport.
Jennings Fund - This fund is used to account for donations and income which is legally restricted for
the purpose of the gift which supports City activities.
Riverwalk Fund - This fund is used to account for donations and expenditures related to the City
Riverwalk.
River Safety Fund - This fund is used to account for donations and expenditures related to river
safety.
CAPITAL PROJECTS
Capital Projects - These funds are used to account for the accumulation and disbursement of
resources for the construction of capital assets (City Hall Project and Library Improvement).
PERMANENT FUND
Playscape Fund - This fund is used to account for donations and expenditures related to the City
Playscape Park for which only the interest on the corpus may be expended.
- 53 -
City of Big Rapids
Combining Balance Sheet
June 30, 2013
Special Revenue
Major Streets
ASSETS
Accounts Receivable
Due from State
Prepaids
Inventory
Total Assets
LIABILITIES
Accounts Payable
Accrued Liabilities
Total Liabilities
Unearned Revenue
FUND BALANCE
Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balance
Total Liabilities, Deferred Inflows of Resources, and Fund Balance
$
$
$
$
Local Streets
316,140
--95,113
--411,253
$
1,627
-1,627
$
$
Pool
54,380
-6,575
26,460
--87,415
$
3,185
-3,185
$
$
Dog Park
94,395
104
----94,499
$
2,132
13,505
15,637
$
$
Roben-Hood
Airport
Library
1,611
-----1,611
$
----
$
$
22,017
31,920
--1,273
-55,210
$
490
6,748
7,238
$
$
11,900
14,475
---34,543
60,918
8,771
-8,771
-1,627
6,576
9,761
-15,637
---
-7,238
-8,771
-409,626
--409,626
411,253
-77,654
--77,654
87,415
--78,862
-78,862
94,499
-1,611
--1,611
1,611
-47,972
--47,972
55,210
34,543
-17,604
-52,147
60,918
$
- 54 -
$
$
$
$
City of Big Rapids
Combining Balance Sheet
June 30, 2013
Special Revenue
River Walk
ASSETS
Accounts Receivable
Due from State
Prepaids
Inventory
Total Assets
LIABILITIES
Accounts Payable
Accrued Liabilities
Total Liabilities
Unearned Revenue
FUND BALANCE
Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balance
Total Liabilities, Deferred Inflows of Resources, and Fund Balance
$
$
$
$
Capital Projects
Jennings
8,358
-----8,358
$
----
$
$
River Safety
8,352
-----8,352
$
----
$
$
Library
Improvement
City Hall Project
12,553
-----12,553
$
----
$
$
Permanent
81,160
-----81,160
$
----
$
$
Total Nonmajor
Governmental
Funds
Playscape
322,538
-----322,538
$
----
$
$
18,553
-----18,553
$
----
$
$
951,957
46,499
6,575
121,573
1,273
34,543
1,162,420
16,205
20,253
36,458
---
---
---
---
---
---
6,576
43,034
--8,358
-8,358
8,358
-8,352
--8,352
8,352
--12,553
-12,553
12,553
--81,160
-81,160
81,160
--322,538
-322,538
322,538
17,000
-1,553
-18,553
18,553
51,543
545,215
522,628
-1,119,386
1,162,420
$
- 55 -
$
$
$
$
$
City of Big Rapids
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance
Special Revenue
Major Streets
Revenues
Property Taxes
Federal Revenue
State Revenue
Fines
Special Assessments
Miscellaneous
Interest Income
Total Revenues
Expenditures
General Govenerment
Public Works
Capital Outlay
Total Expenditures
$
$
--574,028
-----1,667
575,695
Local Streets
$
--164,269
---4,726
700
755
170,450
Pool
$
Dog Park
----36,234
--2,846
259
39,339
$
-------29,673
-29,673
Roben-Hood
Airport
Library
$
39,713
-5,098
-4,864
98,768
-10,035
639
159,117
$
-37
-288,181
----1
288,219
-383,588
-133,973
--517,561
-306,391
----306,391
--117,685
---117,685
---39,917
--39,917
--257,210
24,769
--281,979
-359,905
--26,000
51,075
436,980
58,134
(135,941)
(78,346)
(10,244)
(122,862)
(148,761)
50,000
(100,000)
(50,000)
8,134
401,492
409,626
200,000
-200,000
64,059
13,595
77,654
97,000
(12,700)
84,300
5,954
72,908
78,862
---(10,244)
11,855
1,611
161,200
(49,500)
111,700
(11,162)
59,134
47,972
244,756
(53,100)
191,656
42,895
9,252
52,147
$
- 56 -
$
$
$
$
City of Big Rapids
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance
Special Revenue
River Walk
Revenues
Property Taxes
Federal Revenue
State Revenue
Fines
Special Assessments
Miscellaneous
Interest Income
Total Revenues
Expenditures
General Govenerment
Public Works
Capital Outlay
Total Expenditures
$
$
Capital Projects
Jennings
--2,000
-----45
2,045
$
-------9,500
31
9,531
River Safety
$
Library
Improvement
City Hall Project
--------87
87
$
--------478
478
Permanent
$
-------205,192
1,060
206,252
Total Nonmajor
Governmental
Funds
Playscape
$
--------104
104
$
39,713
37
745,395
288,181
41,098
98,768
4,726
257,946
5,126
1,480,990
--2,000
---2,000
---6,587
--6,587
--4,855
---4,855
2,959
-----2,959
--167
91,841
--92,008
--------
2,959
1,049,884
381,917
297,087
26,000
51,075
1,808,922
45
2,944
(4,768)
(2,481)
114,244
104
(327,932)
---45
8,313
8,358
---2,944
5,408
8,352
---(4,768)
17,321
12,553
---(2,481)
83,641
81,160
---114,244
208,294
322,538
---104
18,449
18,553
752,956
(215,300)
537,656
209,724
909,662
1,119,386
$
$
- 57 -
$
$
$
$
City of Big Rapids
Major Streets
Budgeted Amounts
Original
Final
Revenues
State Revenue
Interest Income
Total Revenues
Financing Sources
Expenditures
Public Works
Total Expenditures
Financing Uses
and Other Uses
$
$
520,500
4,500
525,000
$
520,500
4,500
525,000
Variance
Positive
(Negative)
Final to Actual
Actual
$
574,028
1,667
575,695
$
53,528
(2,833)
50,695
50,000
50,000
50,000
--
575,000
575,000
625,695
50,695
572,800
572,800
682,800
682,800
517,561
517,561
165,239
165,239
145,100
145,100
100,000
45,100
717,900
827,900
617,561
210,339
(142,900)
(142,900)
401,492
258,592
(252,900)
(252,900)
401,492
148,592
8,134
8,134
401,492
409,626
261,034
261,034
-261,034
- 58 -
$
$
$
City of Big Rapids
Local Streets
Budgeted Amounts
Original
Final
Revenues
State Revenue
Special Assessments
Miscellaneous
Interest Income
Total Revenues
Financing Sources
Expenditures
Public Works
Total Expenditures
Financing Uses
and Other Uses
$
$
133,000
5,000
300
3,000
141,300
$
133,000
5,000
300
3,000
141,300
Variance
Positive
(Negative)
Final to Actual
Actual
$
164,269
4,726
700
755
170,450
$
31,269
(274)
400
(2,245)
29,150
200,000
200,000
200,000
--
341,300
341,300
370,450
29,150
340,600
340,600
342,400
342,400
306,391
306,391
36,009
36,009
340,600
342,400
306,391
36,009
700
700
13,595
14,295
(1,100)
(1,100)
13,595
12,495
64,059
64,059
13,595
77,654
65,159
65,159
-65,159
- 59 -
$
$
$
City of Big Rapids
Pool
Budgeted Amounts
Original
Final
Revenues
Miscellaneous
Interest Income
Total Revenues
Financing Sources
Expenditures
Total Expenditures
Financing Uses
and Other Uses
$
$
33,800
800
700
35,300
$
33,800
800
700
35,300
Variance
Positive
(Negative)
Final to Actual
Actual
$
36,234
2,846
259
39,339
$
2,434
2,046
(441)
4,039
97,000
97,000
97,000
--
132,300
132,300
136,339
4,039
136,700
136,700
136,800
136,800
117,685
117,685
19,115
19,115
12,700
12,700
12,700
--
149,400
149,500
130,385
19,115
(17,100)
(17,100)
72,908
55,808
(17,200)
(17,200)
72,908
55,708
5,954
5,954
72,908
78,862
23,154
23,154
-23,154
- 60 -
$
$
$
City of Big Rapids
Dog Park
Budgeted Amounts
Original
Final
Revenues
Miscellaneous
Total Revenues
Financing Sources
Expenditures
General Government
Total Expenditures
Financing Uses
and Other Uses
$
$
---
$
29,200
29,200
Variance
Positive
(Negative)
Final to Actual
Actual
$
29,673
29,673
$
473
473
--
29,200
29,673
473
---
41,000
41,000
39,917
39,917
1,083
1,083
--
41,000
39,917
1,083
--11,855
11,855
(11,800)
(11,800)
11,855
55
(10,244)
(10,244)
11,855
1,611
1,556
1,556
-1,556
- 61 -
$
$
$
City of Big Rapids
Library
Budgeted Amounts
Original
Final
Revenues
Property Taxes
State Revenue
Fines
Miscellaneous
Interest Income
Total Revenues
Financing Sources
Expenditures
Total Expenditures
Financing Uses
and Other Uses
$
$
21,900
6,000
4,600
109,000
8,200
2,000
151,700
$
21,900
6,000
4,600
109,000
8,200
2,000
151,700
Variance
Positive
(Negative)
Final to Actual
Actual
$
39,713
5,098
4,864
98,768
10,035
639
159,117
$
17,813
(902)
264
(10,232)
1,835
(1,361)
7,417
161,200
161,200
161,200
--
312,900
312,900
320,317
7,417
287,100
287,100
289,200
289,200
281,979
281,979
7,221
7,221
49,500
49,500
49,500
--
336,600
338,700
331,479
7,221
(23,700)
(23,700)
59,134
35,434
(25,800)
(25,800)
59,134
33,334
(11,162)
(11,162)
59,134
47,972
14,638
14,638
-14,638
- 62 -
$
$
$
City of Big Rapids
Roben-Hood Airport
Budgeted Amounts
Original
Final
Revenues
Total Revenues
Financing Sources
Expenditures
Total Expenditures
Financing Uses
and Other Uses
$
$
(413,600)
(413,600)
$
(413,600)
(413,600)
Variance
Positive
(Negative)
Final to Actual
Actual
$
288,219
288,219
$
701,819
701,819
(119,800)
(299,800)
244,756
544,556
(533,400)
(713,400)
532,975
1,246,375
402,700
26,000
51,500
480,200
421,600
26,000
51,500
499,100
359,905
26,000
51,075
436,980
61,695
-425
62,120
53,100
53,100
53,100
--
533,300
552,200
490,080
62,120
(1,066,700)
(1,066,700)
9,252
(1,057,448)
(1,265,600)
(1,265,600)
9,252
(1,256,348)
42,895
42,895
9,252
52,147
1,308,495
1,308,495
-1,308,495
- 63 -
$
$
$
City of Big Rapids
River Walk
Budgeted Amounts
Original
Final
Revenues
State Revenue
Interest Income
Total Revenues
Financing Sources
Expenditures
Total Expenditures
Financing Uses
and Other Uses
$
$
1,000
100
1,100
$
2,000
100
2,100
Variance
Positive
(Negative)
Final to Actual
Actual
$
2,000
45
2,045
$
-(55)
(55)
1,100
2,100
2,045
(55)
1,000
1,000
2,000
2,000
2,000
2,000
---
1,000
2,000
2,000
--
100
100
8,313
8,413
100
100
8,313
8,413
45
45
8,313
8,358
(55)
(55)
-(55)
- 64 -
$
$
$
City of Big Rapids
Jennings
Budgeted Amounts
Original
Final
Revenues
Miscellaneous
Interest Income
Total Revenues
Financing Sources
Expenditures
Total Expenditures
Financing Uses
and Other Uses
$
$
1,500
100
1,600
$
9,500
100
9,600
Variance
Positive
(Negative)
Final to Actual
Actual
$
9,500
31
9,531
$
-(69)
(69)
1,600
9,600
9,531
(69)
1,500
1,500
9,500
9,500
6,587
6,587
2,913
2,913
1,500
9,500
6,587
2,913
100
100
5,408
5,508
100
100
5,408
5,508
2,944
2,944
5,408
8,352
2,844
2,844
-2,844
- 65 -
$
$
$
City of Big Rapids
River Safety
Budgeted Amounts
Original
Final
Revenues
Miscellaneous
Interest Income
Total Revenues
Financing Sources
Expenditures
Public Safety
Total Expenditures
Financing Uses
and Other Uses
$
$
3,000
200
3,200
$
3,000
200
3,200
Variance
Positive
(Negative)
Final to Actual
Actual
$
-87
87
$
(3,000)
(113)
(3,113)
3,200
3,200
87
(3,113)
11,500
11,500
11,500
11,500
4,855
4,855
6,645
6,645
11,500
11,500
4,855
6,645
(8,300)
(8,300)
17,321
9,021
(8,300)
(8,300)
17,321
9,021
(4,768)
(4,768)
17,321
12,553
3,532
3,532
-3,532
- 66 -
$
$
$
City of Big Rapids
Nonmajor Government Fund Descriptions
INTERNAL SERVICE FUNDS
Motor Pool Fund - This fund is used to account for the purchase, maintenance and operation of most
motor vehicles and other equipment for City operations. The equipment is rented to the other
operating funds at hourly rental rates to cover costs of the fund.
D.P.W Service Fund - This fund is used to facilitate the accounting for supervision, labor and fringe
benefits of the Public Works Department. Revenues of this fund represent allocations of these costs to
the various funds based on the actual salary cost of Public Works Department employees in each
fund.
Self-Insurance Fund - This fund is used to account for revenues collected from user departments for
the payment of costs incurred to administer the self-funded health insurance program, third party
administrative expenses and actual health claims paid.
- 67 -
City of Big Rapids
Combining Statement of Net Position
June 30, 2013
Internal Service
DPW
ASSETS
Current Assets
Accounts Receivable
Prepaids
Inventory
Noncurrent Assets
Capital Assets
Total Assets
LIABILITIES
Current Liabilities
Accounts Payable
Accrued Liabilities
Total Liabilities
NET POSITION
Unrestricted
Total Net Position
$
$
Motor Pool
145,392
5,477
7,304
-158,173
$
-462
2,148
62,275
64,885
Total Internal
Service Funds
Self Insurance
$
-3,436
53,183
-56,619
$
145,392
9,375
62,635
62,275
279,677
-158,173
1,131,371
1,196,256
-56,619
1,131,371
1,411,048
-21,570
22,626
44,196
16,264
5,407
6,740
28,411
205
--205
16,469
26,977
29,366
72,812
11,314
55,510
3,370
31,781
-205
14,684
87,496
-102,663
102,663
1,131,371
33,104
1,164,475
-56,414
56,414
1,131,371
192,181
1,323,552
- 68 -
$
$
$
City of Big Rapids
Combining Statement of Revenues, Expenses, and Changes in Net Position
Internal Service
DPW
Operating Revenues
Miscellaneous
Total Operating Revenues
Operating Expenses
Salaries & Wages
Benefits
DPW Services
Gas & Oil
Utilities
Repair & Maintenance
Equipment Purchases
Equipment Rental
Contracted Services
Professional Fees
Insurance
Self Insurance
Depreciation
Operating Income (Loss)
Non-Operating Revenues (Expenses)
Interest Income
Gain on Sale of Capital Assets
Federal Operating Grant
Net Non-Operating
Revenues and
(Expenses)
Income
Before Contributions
Transfers
Change In Net Position
$
$
Motor Pool
984,386
5,477
989,863
$
638,850
7,156
646,006
Total Internal
Service Funds
Self Insurance
$
964,312
-964,312
$
2,587,548
12,633
2,600,181
414,097
522,513
---------906
--937,516
52,347
123,355
72,050
22,000
30,502
135,876
33,313
118,128
32,168
8,782
1,117
892
26,288
-192,497
796,968
(150,962)
---------38,348
2,949
56,525
804,865
-902,687
61,625
537,452
594,563
22,000
30,502
135,876
33,313
118,128
32,168
8,782
39,465
3,841
83,719
804,865
192,497
2,637,171
(36,990)
----52,347
-(50,000)
2,347
100,316
102,663
1,156
14,566
16,000
31,722
(119,240)
-(70,300)
(189,540)
1,354,015
1,164,475
101
--101
61,726
--61,726
(5,312)
56,414
1,257
14,566
16,000
31,823
(5,167)
-(120,300)
(125,467)
1,449,019
1,323,552
- 69 -
$
$
$
City of Big Rapids
Combining Statement of Cash Flows
Internal Service
DPW
Cash Flows from Operating Activities
Cash Received from Customers
Cash Payments to Employees for Services and Fringe Benefits
Cash Payments to Suppliers for Goods and Services
Total Cash Flows from Operating Activities
$
Cash Flows from Non-capital and Related Financing Activities
Due from (to) Other Funds
Transfers from (to) Other Funds
Grants & Contributions
Total Cash Flows from Non-capital and Related Financing Activities
978,909
(935,354)
(2,733)
40,822
$
37,337
(50,000)
(12,663)
Cash Flows from Capital and Related Financing Activities
Gain on Disposal
Purchase of Equipment
Total Cash Flows from Capital and Related Financing Activities
Cash Flows from Investing Activities
Interest on Investments
Total Cash Flows from Investing Activities
Net Increase (Decrease) in Cash and Equivalents
Cash and Equivalents - Beginning of Year
Cash and Equivalents - End of Year
Motor Pool
$
- 70 -
649,012
(194,406)
(434,337)
20,269
Total Internal
Service Funds
Self Insurance
$
(70,300)
16,000
(54,300)
963,758
(926,522)
37,236
$
(37,337)
(37,337)
2,591,679
(1,129,760)
(1,363,592)
98,327
(120,300)
16,000
(104,300)
-
14,566
(323,005)
(308,439)
-
14,566
(323,005)
(308,439)
28,159
117,233
145,392
1,156
1,156
(341,314)
341,314
-
101
101
-
1,257
1,257
(313,155)
458,547
145,392
$
$
$
City of Big Rapids
Combining Statement of Cash Flows
Internal Service
DPW
Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities
Operating Income
Adjustments to Reconcile Operating Income to Net Cash
Provided (Used) by Operating Activities
Depreciation and Amortization Expense
Changes in Assets & Liabilities
Accounts Receivable
Prepaids
Inventory
Accounts Payable
Accrued Liabilities
Net Cash Provided by Operating Activities
$
Motor Pool
52,347
$
(5,477)
(7,304)
168
1,088
40,822
$
- 71 -
(150,962)
Self Insurance
$
$
61,625
$
-
192,497
3,006
(2,148)
1,996
(25,119)
37
962
20,269
Total Internal
Service Funds
$
(554)
(24,040)
205
37,236
(36,990)
192,497
$
(3,025)
(33,492)
1,996
(24,914)
205
2,050
98,327
City of Big Rapids
Fiduciary Fund Descriptions
FIDUCIARY FUNDS
Current Tax Fund - This fund is used to record the receipt and transfers of property taxes collected
by the City on behalf of the state county, school districts and other governments.
Trust & Agency Fund – This fund is used to account for short-term custodial collections on resources
on behalf of another individual, entity, or government.
Payroll Fund - This fund is used to account for receipt and disbursement of payroll withholdings.
- 72 -
City of Big Rapids
Combining Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2013
Agency
Payroll
ASSETS
Accounts Receivable
Prepaids
Total Assets
LIABILITIES
Accounts Payable
Due to other governmental units
Total Liabilities
NET POSITION
Held in Trust
$
86,570
-4,390
90,960
$
40,960
-50,000
90,960
$
--
- 73 -
842
--842
$
842
--842
$
--
Total Fiduciary
Funds
Current Tax
Collection
Trust & Agency
198
11,989
-12,187
$
-12,187
-12,187
$
--
87,610
11,989
4,390
103,989
41,802
12,187
50,000
103,989
$
--
City of Big Rapids
Combined Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Payroll
June 30, 2012
ASSETS
Prepaids
Total Assets
LIABILITIES
Accounts Payable
Total Liabilities
$
$
99,041
3,763
102,804
52,804
50,000
102,804
Additions
$
$
$
$
842
842
842
842
$
$
$
$
13,774
89,799
103,573
77
103,496
103,573
$
$
$
$
113,657
89,799
3,763
207,219
52,881
154,338
207,219
- 74 -
$
14,596,887
21,237
14,618,124
14,606,280
14,606,280
$
$
1,600
1,600
-
$
$
1,600
1,600
-
5,273,876
5,543,665
10,817,541
10,921,016
10,921,016
$
$
5,287,452
5,621,475
10,908,927
77
11,012,325
11,012,402
$
$
19,859,892
5,543,665
21,864
25,425,421
14,594,436
10,921,016
25,515,452
$
$
19,885,939
5,621,475
21,237
25,528,651
14,606,357
11,012,325
25,618,682
86,570
4,390
90,960
40,960
50,000
90,960
June 30, 2013
$
$
842
842
842
842
June 30, 2013
$
$
Total Agency Funds
Additions
Deductions
June 30, 2012
ASSETS
Accounts Receivable
Prepaids
Total Assets
LIABILITIES
Accounts Payable
Total Liabilities
14,594,436
14,594,436
$
Current Tax Collection Fund
Additions
Deductions
June 30, 2012
ASSETS
Accounts Receivable
Total Assets
LIABILITIES
Accounts Payable
Total Liabilities
14,584,416
21,864
14,606,280
June 30, 2013
Trust & Agency
Additions
Deductions
June 30, 2012
ASSETS
Prepaids
Total Assets
LIABILITIES
Accounts Payable
Total Liabilities
Deductions
198
11,989
12,187
12,187
12,187
June 30, 2013
$
$
87,610
11,989
4,390
103,989
40,960
63,029
103,989
City of Big Rapids
Component Unit Description
COMPONENT UNIT
Downtown Development Authority - The DDA is used to account for activities designed to correct
and prevent deterioration in the downtown area and promote economic growth within downtown.
- 75 -
City of Big Rapids
Statement of Net Position and DDA Fund Balance
Component Unit - DDA
June 30, 2013
Governmental
Fund Type
DDA Fund
ASSETS
Current Assets
Accounts Receivable
Loans Receivable
Total Assets
LIABILITIES
Current Liabilities
Accounts Payable
Total Liabilities
Unearned Revenue
FUND BALANCE
Unassigned
Total Fund Balance
NET POSITION
Unrestricted
Total Net Position
$
122,551
3,000
36,174
161,725
Adjustments
$
3,000
3,000
$
-
$
122,551
3,000
36,174
161,725
3,000
3,000
-
36,174
39,174
(36,174)
(36,174)
-3,000
122,551
122,551
(122,551)
(122,551)
---
$
- 76 -
Statement of Net
Position
158,725
158,725
$
158,725
158,725
City of Big Rapids
Statement of Activities and DDA Fund Revenue,
Expenditures and Changes in Fund Balance
Component Unit - DDA
Governmental
Fund Type
DDA Fund
Expenses
Economic Development
Total Expenses
Program Revenues
Total Program Revenues
Net Program Revenues (Expenses)
General Revenue
Property Taxes
Interest Income
Receipts from Component Unit
Total General Revenues
Change in Fund Balance / Net Position
Fund Balance / Net Position at Beginning of Period
Fund Balance / Net Position at End of Period
$
$
- 77 -
50,408
50,408
Statement of
Activities
Adjustments
$
---
$
50,408
50,408
37,181
33,245
(17,163)
(3,936)
---
33,245
33,245
(17,163)
20,307
2,325
(5,000)
17,632
4,405
118,146
122,551
----(3,936)
40,110
36,174
20,307
2,325
(5,000)
17,632
469
158,256
158,725
$
$
STATISTICAL SECTION
City of Big Rapids
Statistical Section
This part of the City of Big Rapids’ comprehensive annual financial report presents detailed
information as context for understanding what the information in the financial statements and
note disclosures says about the city’s overall financial health.
Contents
Table
Financial Trends
These schedules contain information to help the reader understand how the
City’s financial performance and well-being have changed over time.
A-1 to A-4
Revenue Capacity
These schedules contain information to help the reader ass the city’s most
significant local revenue source, the property tax.
B-1 to B-4
Debt Capacity
These 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.
C-1 to C-5
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment in which the City’s financial activities take place.
D-1 to D-2
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the City’s financial report relates to the
services the City provides and activities it performs.
E-1 to E-3
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
Statement 34 in 2003; Schedules presenting government-wide information include information
beginning in that year.
- 79 -
CITY OF BIG RAPIDS
Table A-1
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2013
Governmental activities
Net investement in capital assets
Restricted
Unrestricted
Total governmental activities net position
Business-type activities
Restricted
Unrestricted
Total business-type activities net position
Primary government
Restricted
Unrestricted
Total primary government net position
2012
2011
2010
2009
2008
2007
2006
2005
2004
$
13,026,458
563,768
2,143,486
$
12,780,359
759,999
1,722,353
$
12,866,045
705,971
1,915,417
$
11,631,017
907,662
2,180,708
$
10,306,228
1,064,342
3,077,930
$
10,236,908
1,147,481
3,004,948
$
9,516,016
1,369,148
2,480,584
$
8,560,543
1,602,998
2,128,803
$
7,927,388
1,689,020
2,127,986
$
7,125,772
1,671,576
2,871,670
$
15,733,712
$
15,262,711
$
15,487,433
$
14,719,387
$
14,448,500
$
14,389,337
$
13,365,748
$
12,292,344
$
11,744,394
$
11,669,018
$
11,503,740
165,500
3,031,618
$
11,769,588
19,181
3,681,745
$
11,750,081
21,581
3,782,066
$
11,429,365
21,892
4,364,603
$
12,248,205
137,662
3,930,698
$
12,210,069
148,618
3,513,336
$
12,473,933
164,015
3,084,424
$
12,077,885
123,062
2,645,415
$
11,220,981
134,274
2,564,748
$
10,660,003
104,507
2,395,971
$
14,700,858
$
15,470,514
$
15,553,728
$
15,815,860
$
16,316,565
$
15,872,023
$
15,722,372
$
14,846,362
$
13,920,003
$
13,160,481
$
24,530,198
729,268
5,175,104
$
24,549,947
779,180
5,404,098
$
24,616,126
727,552
5,697,483
$
23,060,382
929,554
6,545,311
$
22,554,433
1,202,004
7,008,628
$
22,446,977
1,296,099
6,518,284
$
21,989,949
1,533,163
5,565,008
$
20,638,428
1,726,060
4,774,218
$
19,148,369
1,823,294
4,692,734
$
17,785,775
1,776,083
5,267,641
$
30,434,570
$
30,733,225
$
31,041,161
$
30,535,247
$
30,765,065
$
30,261,360
$
29,088,120
$
27,138,706
$
25,664,397
$
24,829,499
- 80 -
CITY OF BIG RAPIDS
Table A-2
CHANGES IN NET POSITION
Fiscal Year
2013
Expenses
General government
Public safety
Public works
Culture and recreation
Interest on long-term debt
$
2,260,252
3,544,831
2,063,940
971,073
188,025
2012
$
2,188,459
3,439,962
1,621,381
1,336,420
177,278
2011
$
2,446,305
3,495,843
1,748,653
1,246,946
195,061
2010
$
2,101,822
3,748,700
2,504,436
1,213,622
164,500
2009
$
2,055,673
3,501,342
1,989,673
1,215,033
165,679
2008
$
2,236,764
3,437,920
1,790,439
1,106,715
172,388
2007
$
2,067,674
3,343,364
1,468,931
1,123,690
178,477
2006
$
2,141,931
3,346,255
1,435,805
1,363,866
184,001
2005
$
2,058,960
2,727,509
1,534,230
894,197
190,740
2004
$
1,740,015
2,604,570
1,595,742
900,196
281,474
Total governmental activities
9,028,121
8,763,500
9,132,808
9,733,080
8,927,400
8,744,226
8,182,136
8,471,858
7,405,636
7,121,997
Transportation
Wastewater utility
Water utility
Sanitation
539,783
2,131,514
2,072,511
1,008,973
528,971
1,957,919
1,739,822
980,675
476,071
2,151,231
1,697,190
928,238
385,645
2,573,435
1,539,328
923,944
385,277
1,573,478
1,605,539
946,533
447,249
1,567,535
1,834,589
784,548
441,745
1,589,367
1,676,767
712,632
416,717
1,700,562
1,725,842
643,884
405,017
1,308,753
1,515,852
597,396
347,035
1,272,185
1,639,504
745,658
Total business-type activities
5,752,781
5,207,387
5,252,730
5,422,352
4,510,827
4,633,921
4,420,511
4,487,005
3,827,018
4,004,382
14,780,902
13,970,887
14,385,538
15,155,432
13,438,227
13,378,147
12,602,647
12,958,863
11,232,654
11,126,379
265,075
305,362
106,816
189,597
204,533
339,004
9,258
358,857
238,408
355,699
11,584
276,306
217,883
670,340
29,609
189,279
179,663
291,233
116,377
178,715
208,165
356,104
226,088
197,246
132,859
300,782
291,858
151,474
322,496
195,804
221,367
269,400
866,850
1,287,823
-
911,652
854,044
264,530
881,997
1,594,915
793,493
1,107,111
1,858,784
693,908
765,988
1,266,948
641,020
987,603
1,331,891
811,650
876,973
1,424,240
514,493
1,009,067
1,696,417
336,402
838,202
952,425
532,611
834,624
1,031,421
340,778
Total governmental activities program revenues
2,154,673
2,030,226
3,270,405
3,659,803
2,673,956
3,131,144
2,815,706
3,041,886
2,323,238
2,206,823
Charges for services
Transportation
Wastewater utility
Water utility
Sanitation
Operating grants and contributions
Capital grants and contributions
91,723
1,965,743
2,265,744
1,112,436
239,092
-
85,931
1,710,416
2,029,711
1,109,714
233,010
247,166
74,768
1,621,381
1,737,520
1,046,697
226,762
613,485
70,159
1,603,009
1,720,965
1,025,607
222,675
346,260
66,364
1,892,737
1,782,628
1,047,814
222,443
-
68,031
1,943,793
1,687,638
885,099
283,359
46,278
70,211
2,010,741
1,682,794
789,271
212,354
657,371
63,462
1,981,526
1,936,558
711,901
200,722
765,207
91,211
1,712,057
1,817,214
669,685
186,007
273,900
60,736
1,605,625
1,742,675
770,655
160,888
-
Total business-type activities program revenues
5,674,738
5,415,948
5,320,613
4,988,675
5,011,986
4,914,198
5,422,742
5,659,376
4,750,074
4,340,579
7,829,411
7,446,174
8,591,018
8,648,478
7,685,942
8,045,342
8,238,448
8,701,262
7,073,312
6,547,402
Total primary government expenses
Program revenues
General Government
Public Safety
Public Works
Total charges for services
Operating grants and contributions
Capital grants and contributions
Total primary government program revenues
* breakdown by function not readily available
- 81 -
*
*
*
*
*
*
*
*
CITY OF BIG RAPIDS
CHANGES IN NET POSITION
Fiscal Year
2013
Net (expense) revenue
$
Total primary government net (expense) revenue
General revenues and other changes in net position
Property taxes
Income taxes
State shared revenues
Investment earnings
Other general revenues
Transfers
(6,873,448)
(78,043)
2012
$
(6,733,274)
208,561
2011
$
(5,862,403)
67,883
2010
$
(6,073,277)
(433,677)
2009
$
(6,253,444)
501,159
2008
$
(5,613,082)
280,277
2007
$
(5,366,430)
1,002,231
2006
$
(5,429,972)
1,172,371
2005
$
(5,082,398)
923,056
2004
$
(4,915,174)
336,197
(6,951,491)
(6,524,713)
(5,794,520)
(6,506,954)
(5,752,285)
(5,332,805)
(4,364,199)
(4,257,601)
(4,159,342)
(4,578,977)
2,944,602
2,120,878
1,409,847
80,452
189,670
599,000
2,882,630
1,964,555
1,145,136
79,201
73,530
363,500
2,899,204
1,892,944
1,242,407
79,925
36,069
479,800
2,902,257
1,848,250
1,244,836
116,669
17,252
214,900
2,891,770
1,717,415
1,395,145
114,302
12,075
181,900
2,869,308
1,795,339
1,437,807
211,668
23,749
298,800
2,753,776
1,744,354
1,437,437
180,809
29,757
293,700
2,372,491
1,728,410
1,462,006
105,710
9,731
294,000
2,283,012
942,810
1,473,040
206,110
252,802
2,203,021
1,814,042
1,483,074
27,227
285,400
7,344,449
6,508,552
6,630,349
6,344,164
6,312,607
6,636,671
6,439,833
5,972,348
5,157,774
5,812,764
Investment earnings
Other general revenues
Transfers
13,604
35,007
(599,000)
49,681
22,043
(363,500)
75,780
11,191
(479,800)
158,708
6,862
(214,900)
120,215
5,068
(181,900)
161,748
6,426
(298,800)
147,199
20,280
(293,700)
47,988
(294,000)
89,268
(252,802)
(1,877)
(285,400)
(550,389)
(291,776)
(392,829)
(49,330)
(56,617)
(130,626)
(126,221)
(246,012)
(163,534)
(287,277)
Total primary government
6,794,060
Change in net position
Total primary government
6,216,776
471,001
(628,432)
$
(157,431)
6,237,520
(224,722)
(83,215)
$
(307,937)
6,294,834
767,946
(324,946)
$
443,000
270,887
(483,007)
$
(212,120)
- 82 -
$
6,255,990
6,506,045
6,313,612
5,726,336
4,994,240
5,525,487
59,163
444,542
1,023,589
149,651
1,073,403
876,010
542,376
926,359
75,376
759,522
897,590
48,920
503,705
$
1,173,240
$
1,949,413
$
1,468,735
$
834,898
$
946,510
CITY OF BIG RAPIDS
Table A-3
FUND BALANCES OF GOVERNMENTAL FUNDS
(modified accrual basis of accounting)
Fiscal Year
2013
General fund
Reserved
Unreserved
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
All other governmental funds
Reserved
Unreserved reported in
Special revenue funds
Capital project funds
Permanent funds
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental funds
2012
2011
2010
2009
2008
2007
2006
2005
2004
$
76,468
55,627
1,555,261
$
50,000
6,231
58,900
1,317,118
$
40,000
6,093
56,700
1,420,076
$
110,581
1,300,377
-
$
110,581
1,260,456
-
$
110,581
1,558,967
-
$
133,363
1,861,525
-
$
191,297
1,254,530
-
$
226,424
653,049
-
$
56,497
1,873,762
-
$
1,687,356
$
1,432,249
$
1,522,869
$
1,410,958
$
1,371,037
$
1,669,548
$
1,994,888
$
1,445,827
$
879,473
$
1,930,259
$
-
$
-
$
-
$
28,061
$
103,461
$
65,010
$
44,048
$
14,705
$
64,653
$
118,849
51,543
545,215
522,628
$
1,119,386
35,261
491,484
391,926
(9,009)
$
909,662
47,113
411,199
388,481
(24,909)
$
821,884
755,664
317,962
1,478
$
1,103,165
Notes:
(1) Fund balance classification was changed in 2011 to comply with the requirements of GASB Statement Number 54.
(2) Permanent Funds were established at the time the City implemented GASB 34.
- 83 -
1,570,459
303,451
669
$
1,978,040
1,516,108
303,076
1,079
$
1,885,273
1,243,727
136,002
2,093
$
1,425,870
1,723,193
114,590
17,727
$
1,870,215
1,891,742
338,253
17,570
$
2,312,218
2,046,597
24,808
18,672
$
2,208,926
CITY OF BIG RAPIDS
Table A-4
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
(modified accrual basis of accounting)
Fiscal Year
2013
Revenues
Taxes
Intergovernmental revenues
Federal
State
Local
Licenses and permits
Fines and forfeits
Special assessment
Investment earnings
Rents and royalties
Miscellaneous
$
Total revenues
Expenditures
Current
General government
Public safety
Public works
Debt service
Principal
Interest
Capital Outlay
Total expenditures
Revenues over (under) expenditures
2012
5,065,580
$
2011
4,847,185
$
2010
4,792,148
$
2009
4,750,507
$
2008
4,609,185
$
2007
4,664,647
$
2006
4,498,130
$
2005
4,242,687
$
2004
3,342,951
$
4,137,982
56,153
2,148,144
288,181
65,545
604,958
192,052
11,551
80,352
389,862
9,254
2,098,996
260,158
63,219
473,146
194,526
13,081
86,182
127,231
1,030,405
2,415,979
66,370
685,708
193,700
14,773
81,369
98,077
173,743
1,578,459
30,000
79,707
441,216
97,711
13,039
67,793
314,746
200,016
2,356,176
65,080
594,454
220,149
11,721
143,421
502,735
294,369
2,915,542
56,341
733,253
221,987
17,677
237,360
292,628
377,954
2,426,170
41,821
643,384
227,138
20,804
239,591
288,859
261,033
2,864,056
39,206
351,355
248,850
11,791
82,947
3,880
560,347
81,824
2,393,322
21,658
267,688
261,251
14,907
188,785
4,420
645,238
185,385
2,436,508
24,065
271,915
237,934
16,942
33,957
3,940
378,556
8,902,378
8,172,978
9,378,529
7,546,921
8,702,937
9,433,804
8,763,851
8,666,152
7,222,044
7,727,184
2,202,031
3,419,157
1,901,116
786,928
2,119,152
3,292,662
1,888,126
844,434
2,370,347
3,460,630
2,189,505
3,032,098
2,121,341
4,060,724
817,735
598,031
2,073,728
3,569,603
2,066,650
1,103,012
2,207,570
3,457,756
2,558,004
1,078,980
2,134,642
3,302,533
2,046,634
1,225,388
2,034,857
3,174,193
2,252,106
1,134,637
2,063,175
2,709,594
1,645,508
1,416,056
1,912,508
2,709,914
2,198,381
909,346
316,000
197,250
889,365
289,000
189,646
-
228,000
187,238
-
180,000
161,469
-
165,000
168,688
-
145,000
175,031
-
135,000
180,938
-
120,000
186,188
-
329,977
197,830
-
328,661
216,381
303,207
9,711,847
8,623,020
11,467,818
7,939,300
9,146,681
9,622,341
9,025,135
8,901,981
8,362,140
8,578,398
(809,469)
(450,042)
(2,089,289)
(392,379)
(443,744)
(188,537)
(261,284)
(235,829)
(1,140,096)
(851,214)
Other financing sources (uses)
Bond/note proceeds
Issuance of refunding bonds
Refunded bonds redeemed
Transfers in from Component Unit
Transfers in
Transfers out
Sale of capital assets
550,000
5,000
1,715,056
(995,756)
-
1,443,000
(995,800)
-
1,340,219
3,345,000
(3,305,000)
1,268,300
(728,700)
-
562,000
589,000
(718,700)
-
1,332,600
(1,094,600)
-
2,122,500
(1,799,900)
-
1,284,900
(918,900)
-
846,000
(494,000)
8,180
1,185,802
(1,029,200)
36,000
1,611,437
(1,282,337)
-
Total other financing sources (uses)
1,274,300
447,200
1,919,819
432,300
366,000
360,180
Net changes in fund balances
Debt service as a percentage of
noncapital expenditures
$
464,831
6.5%
$
(2,842)
5.6%
$
(169,470)
4.8%
$
39,921
6.0%
- 84 -
238,000
$
(205,744)
3.8%
322,600
$
134,063
3.7%
$
104,716
4.0%
$
124,351
3.8%
192,602
$
(947,494)
7.1%
329,100
$
(522,114)
7.4%
CITY OF BIG RAPIDS
Table B-1
ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY
Fiscal
Year
Ended
June 30
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Residential
Property
$ 65,870,200
69,700,100
74,564,700
79,139,700
83,256,500
80,326,200
75,361,700
68,846,400
68,533,100
67,326,124
Real property
Agricultural Commercial
Industrial
Property
Property
Property
$
130,100 $ 60,290,600 $ 9,977,100
130,100
60,898,800
10,065,800
130,100
61,180,300
10,363,300
67,340,200
10,501,500
64,430,200
10,507,600
61,650,000
9,610,100
59,197,400
16,335,600
54,961,600
16,552,400
53,777,600
15,814,000
53,877,101
15,530,468
$
Total
136,268,000
140,794,800
146,238,400
156,981,400
158,194,300
151,586,300
150,894,700
140,360,400
138,124,700
136,733,693
Personal
Property
$ 27,880,500
30,215,600
29,285,000
29,245,600
29,954,100
29,084,500
31,201,100
29,306,400
27,887,000
35,004,100
$
Property is reassessed each year at actual value. Therefore, the assessed values are equal to the actual value.
Direct tax rate (millage) is per $1,000 of taxable value, which is generally equal to one half of the assessed value.
Source: City of Big Rapids Assessor
- 85 -
Total
Assessed
Value
164,148,500
171,010,400
175,523,400
186,227,000
188,148,400
180,670,800
182,095,800
169,666,800
166,011,700
171,737,793
Total
Direct
Tax
Rate
14.2330
14.7262
14.1940
14.8981
15.0032
15.0749
15.2729
16.0932
16.6899
17.2964
CITY OF BIG RAPIDS
Table B-2
DIRECT AND OVERLAPPING PROPERTY TAX RATES
(rate per $1,000 of taxable value)
Fiscal
Year
Ended
June 30
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
City of Big Rapids
Operating
Millage
13.4555
13.7344
14.1940
14.8981
13.2550
13.0073
13.3167
14.0523
14.5384
15.1059
Debt
Millage
0.7775
0.4959
1.7482
2.0676
1.9562
2.0409
2.1515
2.1905
Total
City
Millage
14.2330
14.2303
14.1940
14.8981
15.0032
15.0749
15.2729
16.0932
16.6899
17.2964
Operating
Millage
5.7909
6.0000
5.9916
5.9490
5.9299
5.9299
5.9299
5.9299
5.9299
5.9299
Mecosta County
Commission Emergency
Hospital
on
Medical
Millage
Aging
Services
0.5000
0.4944
0.5500
0.3929
0.4888
0.5000
0.6098
0.4881
0.5000
0.5875
0.5000
0.5000
0.3463
0.4984
0.5000
0.4517
0.4984
0.5000
0.6755
0.5000
0.1000
0.6755
0.5000
0.1000
0.5000
0.3000
Total
County
Millage
7.3353
7.3817
7.5895
7.5365
7.2746
7.3800
5.9299
7.2054
7.2054
6.7299
Big Rapids Public Schools (1)
NonSinking
Total
Homestead
Debt
Fund
BRPS
Millage
Millage
Millage
Millage
18.0000
7.0000
25.0000
18.0000
7.0000
25.0000
18.0000
7.0000
25.0000
18.0000
7.0000
25.0000
18.0000
7.0000
25.0000
18.0000
4.5000
22.5000
18.0000
4.5000
22.5000
18.0000
4.2500
22.2500
18.0000
4.1500
22.1500
18.0000
4.0000
0.7500
22.7500
Source: City assessors office
Notes:
(1) In 1994, property tax reform was implemented in the State resulting in a 18 mill levy on non-homestead properties and 6.0 mills on all properties.
(2) Taxes rates (millages) are per $1,000 of taxable value which is approximately equal to one-half of the assessed value.
- 86 -
Mecosta
Osceola ISD
Operating
Millage
0.2411
0.2500
0.2496
0.2495
0.2494
0.2494
0.2494
0.2494
0.2494
Special
Vocational
Education Education
2.3577
1.5092
2.3432
1.4999
2.3399
1.4979
2.3395
1.4977
3.3395
1.4970
3.3395
1.4970
3.3395
1.4970
3.3395
1.4970
3.3395
1.4970
State
Total
State
MOISD
Education
Millage Tax Millage
4.1080
5.0000
4.0931
6.0000
4.0874
6.0000
4.0867
6.0000
5.0859
6.0000
5.0859
6.0000
5.0859
6.0000
5.0859
6.0000
5.0859
6.0000
Total
55.6763
56.7051
56.8709
57.5213
58.3637
56.0408
43.7028
56.6345
57.1312
57.8622
CITY OF BIG RAPIDS
Table B-3
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
Taxpayer
Federal Screw Works
Haworth, Inc.
Big Rapids Components
Agree Limited Partnership
Consumers Energy
Big Rapids Products, Inc.
MI Consolidated Gas Company
Campus Village Rapids, LLC
Hillcrest Oakwood Property, LLC
Mecosta County General Hospital
Michigan Retail Partners, LLC
Mark IV Automotive
Total
2013
2004
Percentage
of Total City
Taxable
Taxable
Value
Rank
Value
$ 12,528,700
1
7.30%
7,665,300
2
4.46%
5,632,600
3
3.28%
4,794,062
4
2.79%
3,745,308
5
2.18%
2,318,951
6
1.35%
2,100,065
7
1.22%
2,046,900
8
1.19%
2,033,300
9
1.18%
1,960,900 10
1.14%
0.00%
0.00%
Percentage
of Total City
Taxable
Taxable
Value
Rank
Value
$ 8,527,100
1
5.19%
1,708,205 10
1.04%
2,588,100
4
1.58%
5,199,533
2
3.17%
2,003,300
7
1.22%
2,095,234
5
1.28%
0.00%
1,895,100
9
1.15%
0.00%
1,903,249
8
1.16%
2,075,029
6
1.26%
2,771,100
3
1.69%
$ 44,826,086
$ 30,765,950
26.10%
Source: City assessors office
- 87 -
18.74%
CITY OF BIG RAPIDS
Table B-4
PROPERTY TAX LEVIES AND COLLECTIONS
Fiscal
Year
Ended
June 30
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Taxes Levied
for the
Fiscal Year
$
2,197,960
2,276,744
2,365,249
2,617,678
2,747,198
2,767,996
2,770,206
2,757,715
2,772,683
2,792,147
Collected within the
Fiscal Year of the Levy
Collections
Total Collections to Date
Percentage in Subsequent
Percentage
Amount
of Levy
Years
Amount
of Levy
$
2,138,178
97.3% $
54,796 $ 2,192,974
99.77%
2,175,948
95.6%
94,966
2,270,914
99.74%
2,265,175
95.8%
94,227
2,359,402
99.75%
2,479,007
94.7%
135,259
2,614,266
99.87%
2,656,091
96.7%
85,900
2,741,991
99.81%
2,559,836
92.5%
203,436
2,763,272
99.83%
2,605,610
94.1%
164,199
2,769,809
99.99%
2,608,926
94.6%
148,789
2,757,715
100.00%
2,640,793
95.2%
131,890
2,772,683
100.00%
2,695,499
96.5%
96,648
2,792,147
100.00%
Source: City Treasurer
Notes:
(1) Real and personal property taxes combined.
(2) Property taxes are levied July 1 and become delinquent March 1 of the following year.
Delinquent real property taxes are purchased by Mecosta County and are included in the collections
in subsequent years column. Delinquent personal property taxes are collected by the City of Big Rapids.
- 88 -
CITY OF BIG RAPIDS
Table C-1
RATIOS OF OUTSTANDING DEBT BY TYPE
Fiscal
Year
Ended
June 30
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
General
Obligation
Bonds (2)
$
4,560,000
4,250,000
4,130,000
3,995,000
3,850,000
3,685,000
4,126,781
5,279,000
4,990,000
4,674,000
Amount
Available
$
68,512
-
Net General
Obligation
Loans
Bonds
Payable
$
4,491,488
4,250,000
4,130,000
3,995,000
3,850,000
3,685,000
4,126,781
5,279,000
4,990,000
4,674,000
550,000
Percentage
of Property
Value
1.37%
1.24%
1.18%
1.07%
1.02%
1.02%
1.13%
1.56%
1.50%
1.52%
Note:
(1) 2000 census figures (2003-Present) can be found at Table D-1.
(2) Includes only bonds serviced from property tax revenues.
- 89 -
Per
Capita
414.00
391.74
380.68
368.24
363.34
359.27
402.34
514.67
466.27
488.13
Business-type
Activities
Revenue
Bonds
$
4,445,000
4,160,000
3,930,000
3,595,000
5,303,194
9,768,098
10,450,000
9,735,000
8,990,000
Total
$ 4,491,488
8,695,000
8,290,000
7,925,000
7,445,000
8,988,194
13,894,879
15,729,000
14,725,000
14,214,000
Percentage
of Personal
Per
Income (1) Capita (1)
0.00%
414
0.00%
801
0.00%
764
0.00%
730
5.68%
703
7.09%
876
10.96%
1,355
12.41%
1,533
10.94%
1,376
10.56%
1,328
CITY OF BIG RAPIDS
Table C-2
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30, 2013
Debt
Outstanding
Governmental Unit
Overlapping Debt:
Big Rapids Public Schools
Mecosta County
Mecosta Osceola Intermediate School District
$
16,278,880
8,465,000
-
Percentage
Applicable
To City
Amount
Applicable
To City
39.32% $
13.42%
8.58%
6,400,856
1,136,003
-
Total Overlapping Debt
7,536,859
City of Big Rapids Direct Debt
4,674,000
Total Direct and Overlapping Debt
$ 12,210,859
Note:
The portion of the taxable value for each governmental unit located within the City of Big Rapids
over the taxable value of the governmental unit as a whole is utilized to calculate
overlapping debt percentages.
Source: Michigan Advisory Council (MAC)
- 90 -
CITY OF BIG RAPIDS
Table C-3
LEGAL DEBT MARGIN INFORMATION
Total state equalized value (1)
$ 174,851,800
Debt limitation - 10 percent of SEV
$ 17,485,180
Debt applicable to limitation:
Total bonded debt
Less:
Revenue bonds
13,664,000
8,990,000
Total Debt Applicable to Limitation
4,674,000
Legal Debt Margin
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to limit as
a percentage of debt limit
$ 12,811,180
Fiscal Year
2009
2008
2013
2012
2011
2010
$ 17,485,180
$ 18,275,170
$ 18,209,580
$ 18,067,080
$ 18,814,840
4,674,000
4,990,000
5,279,000
4,126,781
$ 12,811,180
$ 13,285,170
$ 12,930,580
$ 14,562,080
26.7%
27.3%
29.0%
19.4%
(1) Source: City assessors office
- 91 -
2007
2006
2005
2004
$ 19,061,930
$ 17,552,340
$ 17,552,340
$ 17,101,040
$ 16,414,850
3,685,000
3,850,000
3,995,000
4,130,000
4,250,000
4,431,465
$ 15,129,840
$ 15,211,930
$ 13,557,340
$ 13,422,340
$ 12,851,040
$ 11,983,385
19.6%
20.2%
22.8%
23.5%
24.9%
27.0%
CITY OF BIG RAPIDS
Table C-4
PLEDGED REVENUE COVERAGE
Fiscal
Year
Ended
June 30
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Utility
Service
Charges
$ 1,607,495
1,761,291
2,015,221
2,131,488
2,071,132
1,987,212
1,724,675
1,671,763
1,752,477
2,006,059
Less
Operating
Expenses
$ 1,388,537
1,246,199
1,454,905
1,348,764
1,893,055
1,293,829
1,796,404
1,827,798
1,416,161
1,617,046
Sewer Revenue Bonds
Net
Available
Debt Service
Revenue
Principal
Interest
$ 218,958 $ 180,000 $
66,042
515,092
115,000
57,441
560,316
120,000
51,403
782,724
125,000
43,610
178,077
135,000
38,684
693,383
140,000
31,550
(71,729)
150,000
81,518
(156,035)
160,000
182,076
336,316
475,000
205,551
389,013
325,000
179,313
Coverage
0.89
2.99
3.27
4.64
1.03
4.04
(0.31)
(0.46)
0.49
0.77
Utility
Service
Charges
$ 1,739,421
1,853,914
1,944,949
1,728,555
1,728,441
1,811,100
1,762,932
1,764,337
2,051,313
2,272,592
Less
Operating
Expenses
$ 1,268,087
1,340,055
1,260,600
1,282,462
1,791,125
1,218,899
1,216,526
1,357,627
1,486,328
1,486,328
Water Revenue Bonds
Net
Available
Debt Service
Revenue
Principal
Interest
$ 471,334 $
150,000 $ 189,023
513,859
160,000
180,910
684,349
165,000
172,408
446,093
175,000
197,574
(62,684)
200,000
121,022
592,201
215,000
109,090
546,406
220,000
94,915
406,710
225,000
90,825
564,985
240,000
81,525
786,264
260,000
61,525
Note:
Details regarding the City's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest or depreciation expense.
Service charges include interest income and operating expenses include transfers out for indirect costs.
- 92 -
Coverage
1.39
1.51
2.03
1.20
(0.20)
1.83
1.74
1.29
1.76
2.45
CITY OF BIG RAPIDS
Table C-5
SCHEDULE OF INDEBTEDNESS
June 30, 2013
Date of
Issue
Amount of
Issue
Interest
Rate
Date of
Maturity
Principal
Interest
Total
USDA -Aerial Fire Truck
Community Hangar
3/1/2010 $ 562,000
9/7/2010
1,400,000
- 93 -
4.00%
3.75%
9/1/2013 $
3/1/2014
9/1/2014
3/1/2015
9/1/2015
3/1/2016
9/1/2016
3/1/2017
9/1/2017
3/1/2018
9/1/2018
3/1/2019
9/1/2019
3/1/2020
9/1/2020
3/1/2021
9/1/2021
3/1/2022
9/1/2022
3/1/2023
9/1/2023
3/1/2024
9/1/2024
3/1/2025
9/1/2013
3/1/2014
9/1/2014
3/1/2015
9/1/2015
3/1/2016
9/1/2016
3/1/2017
9/1/2017
3/1/2018
9/1/2018
3/1/2019
9/1/2019
3/1/2020
9/1/2020
3/1/2021
9/1/2021
3/1/2022
9/1/2022
3/1/2023
9/1/2023
3/1/2024
9/1/2024
3/1/2025
9/1/2025
3/1/2026
9/1/2026
3/1/2027
9/1/2027
3/1/2028
9/1/2028
3/1/2029
9/1/2029
3/1/2030
9/1/2030
3/1/2031
9/1/2031
3/1/2032
9/1/2032
3/1/2033
9/1/2033
31,000
33,000
33,000
34,000
37,000
38,000
41,000
42,000
43,000
46,000
48,000
49,000
$
9,500
9,500
8,880
8,880
8,220
8,220
7,560
7,560
6,880
6,880
6,140
6,140
5,380
5,380
4,560
4,560
3,720
3,720
2,860
2,860
1,940
1,940
980
980
$
9,500
40,500
8,880
41,880
8,220
41,220
7,560
41,560
6,880
43,880
6,140
44,140
5,380
46,380
4,560
46,560
3,720
46,720
2,860
48,860
1,940
49,940
980
49,980
475,000
133,240
608,240
27,000
28,000
29,000
30,000
32,000
33,000
34,000
36,000
37,000
38,000
40,000
42,000
43,000
45,000
47,000
49,000
51,000
53,000
55,000
57,000
59,000
25,294
24,788
24,788
24,263
24,263
23,719
23,719
23,156
23,156
22,556
22,556
21,938
21,938
21,300
21,300
20,625
20,625
19,931
19,931
19,219
19,219
18,469
18,469
17,681
17,681
16,875
16,875
16,031
16,031
15,150
15,150
14,231
14,231
13,275
13,275
12,281
12,281
11,250
11,250
10,181
10,181
52,294
24,788
52,788
24,263
53,263
23,719
53,719
23,156
55,156
22,556
55,556
21,938
55,938
21,300
57,300
20,625
57,625
19,931
57,931
19,219
59,219
18,469
60,469
17,681
60,681
16,875
61,875
16,031
63,031
15,150
64,150
14,231
65,231
13,275
66,275
12,281
67,281
11,250
68,250
10,181
69,181
CITY OF BIG RAPIDS
(continued)
SCHEDULE OF INDEBTEDNESS (continued)
June 30, 2013
Community Hangar (continued)
2010 Unlimited Tax GO Refunding Bonds, Series 2010
2013 Installment Purchase Contract
Date of
Amount of
Issue
Issue
9/7/2010 $ 1,400,000
12/21/2010
3/12/2013
Interest
Date of
Rate
Maturity
Principal
3.75% 3/1/2034 $
9/1/2034
62,000
3/1/2035
9/1/2035
64,000
3/1/2036
9/1/2036
66,000
3/1/2037
9/1/2037
69,000
3/1/2038
9/1/2038
72,000
3/1/2039
9/1/2039
74,000
3/1/2040
9/1/2040
77,000
3,345,000 2.0%-4.0%
550,000
8/1/2013
2/1/2014
8/1/2014
2/1/2015
8/1/2015
2/1/2016
8/1/2016
2/1/2017
8/1/2017
2/1/2018
8/1/2018
2/1/2019
8/1/2019
2/1/2020
8/1/2020
2/1/2021
2.29% 10/1/2013
4/1/2014
10/1/2014
4/1/2015
10/1/2015
4/1/2016
10/1/2016
4/1/2017
10/1/2017
4/1/2018
10/1/2018
4/1/2019
10/1/2019
4/1/2020
10/1/2020
4/1/2021
10/1/2021
4/1/2022
10/1/2022
$
- 94 -
$
Interest
9,075
9,075
7,913
7,913
6,713
6,713
5,475
5,475
4,181
4,181
2,831
2,831
1,444
1,444
$
Total
9,075
71,075
7,913
71,913
6,713
72,713
5,475
74,475
4,181
76,181
2,831
76,831
1,444
78,444
1,349,000
834,394
2,183,394
275,000
295,000
315,000
335,000
365,000
390,000
420,000
455,000
47,488
47,488
44,394
44,394
40,706
40,706
35,981
35,981
30,956
30,956
24,569
24,569
17,500
17,500
9,100
9,100
47,488
322,488
44,394
339,394
40,706
355,706
35,981
370,981
30,956
395,956
24,569
414,569
17,500
437,500
9,100
464,100
2,850,000
501,388
3,351,388
45,000
47,000
49,000
51,000
53,000
56,000
58,000
61,000
64,000
66,000
6,962
5,782
5,782
5,244
5,244
4,683
4,683
4,099
4,099
3,492
3,492
2,851
2,851
2,187
2,187
1,489
1,489
756
756
51,962
5,782
52,782
5,244
54,244
4,683
55,683
4,099
57,099
3,492
59,492
2,851
60,851
2,187
63,187
1,489
65,489
756
66,756
550,000
68,128
618,128
5,224,000
$ 1,537,149
$
6,761,149
CITY OF BIG RAPIDS
(continued)
SCHEDULE OF INDEBTEDNESS (continued)
June 30, 2013
Date of
Issue
Amount of
Issue
Interest
Rate
Date of
Maturity
Principal
Interest
Total
2006 Water Supply System Revenue Refunding Bonds
2009 Act 94 Sewage Disposal System Revenue Bonds
10/25/2006
4/1/2009
2,635,000
2,063,194
Total long-term debt - primary government
Total long-term debt
4.0-4.25%
10/1/2013 $
4/1/2014
10/1/2014
4/1/2015
10/1/2015
4/1/2016
10/1/2016
4/1/2017
10/1/2017
4/1/2018
10/1/2018
4/1/2019
10/1/2019
2.50% 10/1/2013
4/1/2014
10/1/2014
4/1/2015
10/1/2015
4/1/2016
10/1/2016
4/1/2017
10/1/2017
4/1/2018
10/1/2018
4/1/2019
10/1/2019
4/1/2020
10/1/2020
4/1/2021
10/1/2021
4/1/2022
10/1/2022
4/1/2023
10/1/2023
4/1/2024
10/1/2024
4/1/2025
10/1/2025
4/1/2026
10/1/2026
4/1/2027
10/1/2027
4/1/2028
10/1/2028
4/1/2029
10/1/2029
4/1/2030
10/1/2030
260,000
275,000
300,000
200,000
200,000
210,000
210,000
$
33,362
28,163
28,162
22,663
22,662
16,663
16,662
12,663
12,662
8,663
8,662
4,463
4,462
$
293,362
28,163
303,162
22,663
322,662
16,663
216,662
12,663
212,662
8,663
218,662
4,463
214,462
1,655,000
219,912
1,874,912
325,000
335,000
345,000
355,000
360,000
370,000
380,000
390,000
400,000
410,000
420,000
430,000
440,000
450,000
465,000
475,000
485,000
500,000
91,688
87,625
87,625
83,438
83,438
79,125
79,125
74,688
74,688
70,188
70,188
65,563
65,563
60,813
60,813
55,938
55,938
50,938
50,938
45,813
45,813
40,563
40,563
35,188
35,188
29,688
29,688
24,063
24,063
18,250
18,250
12,313
12,313
6,250
6,250
416,688
87,625
422,625
83,438
428,438
79,125
434,125
74,688
434,688
70,188
440,188
65,563
445,563
60,813
450,813
55,938
455,938
50,938
460,938
45,813
465,813
40,563
470,563
35,188
475,188
29,688
479,688
24,063
489,063
18,250
493,250
12,313
497,313
6,250
506,250
7,335,000
1,772,563
9,107,563
8,990,000
1,992,475
10,982,475
14,214,000
3,529,624
17,743,624
$ 14,214,000
$ 3,529,624
$ 17,743,624
(concluded)
- 95 -
CITY OF BIG RAPIDS
Table D-1
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Year
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013 (4)
Population (1)
10,849 $
10,849
10,849
10,849
10,596
10,257
10,257
10,601
10,702
10,702
Per Capita
Personal
Income (2)
Personal
Income (2)
130,966,560
126,776,520
126,776,520
131,028,360
134,641,862
134,641,862
$
12,360
12,360
12,360
12,360
12,581
12,581
Unemployment
Rate (3)
9.2
7.2
7.8
7.8
8.8
8.9
13.6
11.0
10.1
10.5
(1) Per U.S. Census Bureau.
(2) Personal Income information is not available prior to 2008.
(3) Per Michigan Department of Labor & Economic Growth (Unemployment rate is for Mecosta County)
(4) Census information is only available for 2012 census at this time.
- 96 -
CITY OF BIG RAPIDS
Table D-2
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2013
Employer
Ferris State University
Spectrum Health **
Manpower International
Wolverine World Wide
Fluid Routing Solutions
Midwest Publishing
Big Rapids Products
Mecosta County Courthouse
Haworth Inc.
MOISD
Mark IV Automotive
Labelle Management
Danielle, Inc.
Employees
4,664
682
547
451
435
395
349
305
292
281
-
Rank
1
2
3
4
5
6
7
8
9
10
-
2004
Percentage
of Total City
Employment
*
Source: City offices
* information is not available
** formerly Mecosta County General Hospital
- 97 -
Employees
5,026
508
539
455
254
329
329
349
339
269
Rank
1
3
2
4
10
8
7
5
6
9
Percentage
of Total City
Employment
*
CITY OF BIG RAPIDS
Table E-1
CITY EMPLOYEES BY FUNCTION/PROGRAM
Function/Program
General government
Administration
Full time
Part time
Finance
Full time
Part time
Public works
Full time
Part time
Library
Full time
Part time
2013
2012
2011
Fiscal Year
2009
2008
2010
2007
2006
2005
2004
13
8
14
4
14
6
14
6
14
4
14
2
13
2
13
2
12
2
12
2
8
2
7
3
6
4
6
4
6
3
6
4
6
4
7
4
7
4
7
4
34
57
34
56
33
38
33
38
33
39
32
36
28
45
32
50
32
49
31
43
2
9
2
10
2
8
2
8
2
11
2
9
2
10
2
12
2
13
2
13
17
4
3
17
5
3
16
8
3
16
8
3
18
10
3
17
6
3
17
11
3
17
16
3
17
15
3
17
16
3
9
13
9
15
9
13
9
13
10
13
9
14
9
13
9
15
9
19
9
16
Dial-a-Ride
Full time
Part time
1
14
1
11
1
11
1
11
1
9
1
10
1
11
1
12
1
14
1
12
Total
194
191
172
172
176
165
175
195
199
188
Public Safety
Police
Full time
Part time
Other public safety
Fire
Full time
Part time
Source: City clerks office
- 98 -
CITY OF BIG RAPIDS
Table E-2
OPERATING INDICATORS BY FUNCTION/PROGRAM
Function/Program
2013
2012
2011
2010
Fiscal Year
2009
2008
2007
2006
2005
2004
Police
Arrests
Accident responses
614
409
744
410
1,337
484
1,428
470
2,065
527
1,820
510
1,813
488
1,943
552
1,778
610
1,761
664
Fire
Fire calls
Rescue calls
MFR calls
Public service calls
166
12
759
41
146
20
759
30
81
54
634
94
61
51
624
136
47
53
501
166
67
82
554
56
53
57
484
69
68
90
546
73
64
63
478
53
66
34
552
70
Public works and streets
Street resurfacing (in miles)
2.00
0.25
-
0.25
0.20
1.20
(1.00)
(1.00)
(1.00)
0.57
54,390
53,487
64,222
69,313
67,954
66,397
65,681
65,168
69,478
71,475
Sewer system
Number of service connections
Daily average treatment in millions of gallons
2,553
1.026
2,554
1.095
2,560
1.048
2,561
1.080
2,587
1.200
2,503
1.190
2,518
1.131
2,505
1.165
2,502
1.114
2,505
1.144
Water system
Number of service connections
Daily average consumption in millions of gallons
2,187
1.250
2,187
1.230
2,192
1.280
2,312
1.240
2,305
1.260
2,273
1.230
2,350
1.224
2,245
1.246
2,217
1.217
2,214
1.147
112,661
76,091
111,694
70,459
109,721
68,887
103,200
64,257
99,239
59,936
91,099
56,850
93,431
56,576
84,336
55,790
86,670
56,335
84,677
56,633
Library books
Dial-a-Ride system
Total transit miles
Passengers
Source: Various City departments
- 99 -
CITY OF BIG RAPIDS
Table E-3
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Function/Program
2013
2012
2011
Fiscal Year
2009
2008
2010
2007
2006
2005
2004
Police
Stations
Patrol units
1
10
1
10
1
10
1
10
1
10
1
10
1
10
1
9
1
8
1
8
Fire
Stations
Emergency response vehicles
1
12
1
12
1
12
1
12
1
12
1
12
1
12
1
11
1
10
1
10
28
43.25
475
27
42.50
475
27
42.50
475
25
42.50
475
25
42.50
449
25
42.50
449
25
42.44
449
24
42.44
449
21
42.51
449
19
42.51
482
302
302
302
252
204
204
204
245
197
197
34.40
20.20
4.00
34.40
20.20
4.00
34.40
20.20
4.00
34.30
20.20
4.00
34.30
20.20
4.00
34.30
20.20
4.00
33.00
20.20
6.00
33.00
20.20
6.00
33.00
20.20
6.00
33.00
20.20
6.00
58
488
58
488
58
488
58
488
58
488
58
488
58
482
58
482
*
482
*
*
1.50
1.25
5.40
1.50
1.25
5.40
1.50
1.25
5.40
1.50
1.25
5.40
1.50
1.25
5.40
1.50
1.25
5.40
1.50
1.25
5.40
1.50
1.25
5.40
1.50
1.25
5.40
1.50
1.25
5.40
1
7
1
7
1
7
1
7
1
7
1
7
1
8
1
8
1
8
1
9
Public works and streets
Buildings
Miles of streets
Number of street lights
Park acreage
Sewer system
Miles of sanitary sewers
Miles of storm sewers
Maximum daily capacity in millions of gallons
Water system
Miles of water mains
Fire hydrants
In millions of gallons:
Above ground storage capacity (at grade)
Above ground storage capacity (elevated)
Maximum daily capacity
Dial-a-Ride system
Stations
Vehicles
Source: City finance office
- 100 -
CITY OF BIG RAPIDS
WASTEWATER CONTRACT USER CHARGE
FISCAL YEAR ENDED JUNE 30, 2013
Wastewater Treatment Operational Expenses
Labor
590-560-702.000
590-560-703.000
590-560-706.100
590-560-709.000
590-560-710.000
Total Labor
Full Time
Part Time
Comp Buy Out
Overtime
DPW Services
Fringes
590-560-715.000
590-560-716.000
590-560-716.200
590-560-716.300
590-560-717.000
590-560-717.100
590-560-717.200
590-560-717.300
590-560-717.400
590-560-718.000
590-560-719.000
590-560-720.000
590-560-720.500
590-560-720.600
590-560-822.200
Total Fringes
FICA
Insurance
Dental/Optical
Health Ins. Reimbursement
Employer Health Ins. Premiums
Employer HSA Contributions
Insurance Broker Fees
Flex Administration Fee
Michigan Claims Tax
Unemployment
Workers Comp
DB MERS
Sick Leave Buy Out
DC AFSCME
LTD/Life/ADD
Supplies
590-560-732.000
590-560-736.000
590-560-743.000
Total Supplies
Operational Supplies
Uniforms
Chemicals
$
261,039
13,128
163
5,740
600
280,670
20,521
45,755
3,207
2,589
8,206
3,000
543
28
86
293
4,534
80,200
15,915
9,729
768
195,374
60,436
1,755
34,009
96,200
Contracted Services
590-560-801.000
Contracted Services
590-560-801.100
MDEQ Fee/Permit
590-560-802.000
Engineering (Minor)
590-560-808.000
Audit Fees
Total Contracted Services
48,908
14,218
22,672
2,640
88,438
Liability
590-560-814.000
590-560-814.100
Total Liability
Insurance Coverage
Insurance Deductible
13,114
1,875
14,989
Travel
590-560-860.000
590-560-870.100
590-560-961.000
Total Travel
Travel
Training
Lunch / Dinner Meetings
Utilities
590-560-920.000
3,402
5,743
14
9,159
Utilities
202,867
Repairs & Maintenance
590-560-930.000
Operational Repairs & Main.
590-560-930.001
Oper Maintenance - Software
590-560-930.007
Ultraviolet Lamps
Total Repair & Maintenance
26,222
5,946
15,335
47,503
Miscellaneous
590-560-824.600
Operator License Fees
590-560-958.000
Membership
590-560-967.096
Future Planning Study
Total Miscellaneous
70
554
1,508
2,132
Total Treatment Operations
Shared
City I & I
Total
- 101 -
$
937,332
87.97% $
12.03%
824,571
112,761
100.00% $
937,332
CITY OF BIG RAPIDS
WASTEWATER CONTRACT USER CHARGE (continued)
Wastewater Collection Expenses
Collection
590-561-710.000
590-561-732.000
590-561-782.000
590-561-801.000
590-561-801.600
560-561-802.000
590-561-943.000
Total Collection
DPW Overhead
Supplies
Maintenance Materials
Contracted Services
Vactor & TV Video
Engineering
Equipment Rental
$
$
158,000
4,882
3,797
2,395
33,468
217
48,922
251,681
87.97% $
12.03%
221,404
30,277
100.00% $
251,681
$
$
97,379
63,523
78,267
75,714
314,883
$
37,786
$
3,680
6,301
93,804
74,710
52,460
Total Depreciation Costs (See attached detail)
$
230,955
Recommended by committee, subject to change
$
130,000
Shared
City I & I
Total
Wastewater Administrative Expenses
Administrative
101-172
City Manager
101-210
Attorney
101-441
Public Works
101-253
Treasurer
Total Administrative
12% agreed by contracted parties
2012-2013 Depreciation Expenses
5 years or less
7 years
10 years
15 years
20 years
- 102 -
CITY OF BIG RAPIDS
Depreciation Expense Detail
Est. Life
5
5
5
5 Year Total
Classification
Furn./Fixtures
Furn./Fixtures
Furn./Fixtures
Asset Description
Sensus Autorun
Sensus AR5502 Reader
Computers
Placed in
Service
2/12/2008
9/16/2009
6/30/2008
Initial Cost
$
4,000
7,450
8,539
Accumulated
Depreciation
$
4,000
5,643
8,539
2012/2013
Depreciation
$
520
1,490
1,670
3,680
7
7
7
7
7
7
7 Year Total
Pumping
Pumping
Furn./Fixtures
Furn./Fixtures
Furn./Fixtures
Furn./Fixtures
SIGMA All Weather
SIGMA Samplers
Phone System Upgrade Allowance
Computer Allowance
Ethernet Switches and Patch Panels
UPS Systems
4/24/2007
4/23/2007
7/1/2010
7/1/2010
7/1/2010
7/1/2010
5,208
10,431
1,500
5,000
16,600
8,000
4,468
8,940
428
1,428
4,742
2,286
617
1,242
214
714
2,371
1,143
6,301
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10 Year Total
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Med Voltage Switch
MOVNO 200 Pump
Polyblend Polymer
Sludge Transfer Pump
HVAC System
Dehumidifier
Temperature Controls
Moyno Pumps
RAS Pumps
Tanks - EDI Aeration
Switchboards (Dist. Equip.)
Panelboards (Dist. Equip.)
VFDs (Dist. Equip.)
Motor Control Ctrs. (Dist. Equip.)
Transformers (Dist. Equip.)
Enclosed Controller (Dist. Equip.)
Safety Switches (Dist. Equip.)
Field Instruments/Magmeters
D.O. & OPR Analyzers
Ultrasonic Level/Radar
Gas Detection System
Float Switches/ISR Relays
Air Flow Transmitters
12/5/2008
11/26/2008
7/20/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
9,392
11,188
6,398
45,600
193,150
6,200
19,950
82,000
38,800
126,000
25,000
4,600
22,800
184,800
16,000
600
2,700
27,600
42,500
7,500
30,100
2,700
32,550
4,273
5,633
1,866
9,120
38,630
1,240
3,990
16,400
7,760
25,200
5,000
920
4,560
36,960
3,200
120
540
5,520
8,500
1,500
6,020
540
6,510
931
1,118
640
4,560
19,315
620
1,995
8,200
3,880
12,600
2,500
460
2,280
18,480
1,600
60
270
2,760
4,250
750
3,010
270
3,255
93,804
15
15
15
15
15
15
15
15
15
15
15 Year Total
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Polyblend Pump
Pumping Equip
Generator/Lift Station(Northland)
Trolley Hoist
Gravity Thickener
Spencer Blowers
Kaeser Blowers
Air Compressor
Grit Classifier
Generator/ATS
7/26/2004
6/30/2004
12/28/2004
7/1/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
7/1/2010
6,828
89,522
23,722
4,700
12,100
328,800
220,650
12,500
255,000
167,300
4,081
53,796
13,523
626
1,611
43,840
29,420
1,666
34,000
22,306
451
5,954
1,569
313
807
21,920
14,710
833
17,000
11,153
74,710
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20 Year Total
Structures
Structures
Structures
Structures
Structures
Improvements
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Pumping
Engineering
Storm Sewers
Storm Sewers
Addition 1995/96
Concrete Repair
Roofing System
Clarifier Grating
Influent/Effluent Pipping
30" Repair Pipe
N State & Novak Station
Clarifer Upgrade
Screw Pump Upgrade
Equipment
Screw Lift Pump #1
Aeration Blower
KVA 3 Phase Transformer
UltraViolet Disinfection
Pole Barn/UV Cover
Smoke Testing
Sewer 03/04
11/28/1995
7/16/1996
10/17/2001
9/23/2008
12/30/2004
5/5/1997
7/1/1997
6/30/1999
6/30/2009
6/30/2003
6/30/2003
7/20/2006
12/5/2008
10/5/2011
3/24/1998
7/13/1998
6/30/2004
6,450
21,740
27,427
40,394
133,228
68,722
66,870
117,747
229,789
14,404
177,064
73,751
23,300
16,884
5,200
13,166
13,031
5,678
18,411
16,024
9,738
54,447
55,432
53,485
82,541
161,083
8,037
89,107
25,756
5,326
1,477
3,970
9,855
5,908
323
1,087
1,371
2,020
6,661
3,439
3,344
5,887
11,489
720
8,853
3,687
1,165
844
260
658
652
52,460
Grand Total
$
- 103 -
230,955
CITY OF BIG RAPIDS
Billable Flow - 1 Unit = 1,000 Gallons
Billable Flow through WWTP (1,000)
Inflow & Infiltration - City's Cost Responsibility (1,000)
329,535
45,081
87.97%
12.03%
Total Plant Flow (WWTP) Effluent (1,000)
374,616
100.00%
Green Township Billable Flow
Big Rapids Township Billable Flow
City of Big Rapids Billable Flow
City of Big Rapids Inflow & Infilitration
9,632
35,841
284,062
45,081
2.57%
9.57%
75.83%
12.03%
Total Volume
374,616
100.00%
- 104 -
CITY OF BIG RAPIDS
CONTINUING DISCLOSURE
A. Number of Water Customers
Type of User
2013
2012
2011
2010
2009
Residential
Commercial
Institutional
Industrial
1,581
372
216
18
1,575
376
218
18
1,583
377
216
16
1,650
416
226
20
1,640
416
229
20
Total
2,187
2,187
2,192
2,312
2,305
Source: City of Big Rapids
B. Water Consumption by Category (1,000 Gallons)
Type of User
2013
2012
2011
2010
2009
Residential, commercial, industrial
Government / institutional
211,432
137,553
207,052
149,864
202,425
133,956
209,814
147,409
215,119
163,595
Total
348,985
356,916
336,381
357,223
378,714
C. Percentage of Water Consumption by Category
Type of User
Residential
Government / institutional
Commercial / industrial
Total
2013
2012
2011
2010
2009
23%
39%
38%
22%
42%
36%
24%
40%
36%
24%
41%
35%
24%
43%
33%
100%
100%
100%
100%
100%
- 105 -
CITY OF BIG RAPIDS
D. Water Pumped vs. Water Sold
The following table presents five-year history of the number of gallons of water pumped vs. the
number of gallons of water sold.
Gallons
Pumped
Fiscal Year
2008 - 2009
2009 - 2010
2010 - 2011
2011 - 2012
2012 - 2013
Gallons Sold
464.2
452.8
465.4
449.5
456.4
378.8
357.2
336.4
356.9
349.0
Sold as a % of
Pumped
81.60%
78.89%
72.28%
79.40%
76.47%
* Gallons are millions of gallons
E. Water Rates (As of July 1, 2012)
The City has implemented the following rates.
Meter Size (Inches)
5/8
3/4
1
1 1/2
2
3
4
6
Monthly
Capacity
Charge for Noninstitutional
$
4.00
10.22
18.41
35.96
65.99
112.79
207.69
299.99
Monthly
Capacity
Charge for
Institutional
$
9.00
15.60
25.69
55.59
106.94
182.99
348.09
563.24
* Commodity charges are $5.05 / 1,000 gallons for non-institutional, 5.25 / 1,000 gallons for
- 106 -
CITY OF BIG RAPIDS
F. Historical Net Earnings and Cash Flow - Water Supply System Fund
2013
Operating revenue
Operating expense
$
2012
2,268,403
2,006,655
$
2011
2,038,386
1,660,376
$
2010
1,738,244
1,611,981
$
2009
1,720,965
1,444,413
$
1,784,694
1,496,449
Operating income
261,748
378,010
126,263
276,552
288,245
Interest revenue
Interest expense
4,189
(65,856)
12,927
(79,446)
26,093
(85,209)
41,967
(94,915)
28,472
(109,090)
Net income
200,081
311,491
67,147
223,604
207,627
Plus: Depreciation expense
Plus: Interest expense
401,099
65,856
388,948
79,446
390,140
85,209
380,187
94,915
385,450
109,090
Net revenue
$
667,036
$
779,885
$
542,496
$
698,706
$
702,167
Maximum annual debt service requirements
$
339,325
$
339,325
$
339,325
$
339,325
$
330,359
Coverage ratio
1.97
2.30
1.60
2.06
2.13
Source: City of Big Rapids audited financial statements
G. Water Usage and Revenue - Ten Largest Customers
Usage (1,000) Gallons
Usage
% of Total
Customer
Amount
Revenues
% of Total
Ferris State University
Haworth
Mecosta County Medical Center
Hillcrest / Oakwood
Big Rapids Housing Commission
Jenning Mobile Home
Big Rapids Products
Metron
Meijer
Mecosta County
105,313
11,551
11,178
8,940
7,779
5,033
4,499
4,271
4,018
4,002
30.18%
3.31%
3.20%
2.56%
2.23%
1.44%
1.29%
1.22%
1.15%
1.15%
$
698,625
60,478
72,633
54,875
59,160
27,792
24,006
22,360
25,577
24,998
31.04%
2.69%
3.23%
2.44%
2.63%
1.23%
1.07%
0.99%
1.14%
1.11%
Total
166,584
47.73%
$
1,070,504
47.56%
* Based on 2013 fiscal year usage of 348,985 gallons and revenues of $2,251,077
H. Major Water Customers within the City - Five Year History
Fiscal Year
2009
2010
2011
2012
2013
Ferris State
University
Mecosta
County
General
Hospital
126,978
112,104
103,779
115,192
105,313
15,633
12,646
10,612
11,745
11,178
* Based on usage in millions of gallons
- 107 -
Big Rapids
Housing
Commission
8,792
8,033
7,690
7,568
7,779
Haworth
8,628
8,179
7,806
9,015
11,551
Hillcrest /
Oakwood
4,107
9,352
8,501
10,102
8,940
City of Big Rapids
Dial-A-Ride Fund
Schedule 1 - Schedule of Operating Revenues
Operating revenues
Demand response (farebox)
Regular service
Contracted fares
Interest revenue
Insurance refund
Transfer from General Fund
Total local revenues
Jul. 1, 2012 to
Sep. 30, 2012
Oct. 1, 2012 to
Jun. 30, 2013
$
18,706
210
57
-
$
59,157
13,650
108
1,282
127,500
$
77,863
13,860
165
1,282
127,500
$
18,973
$
201,697
$
220,670
Total
City of Big Rapids
Dial-A-Ride Fund
Schedule 1A - Schedule of Operating Revenues
For the Year Ended September 30, 2012
Operating revenues
Demand response (farebox)
Regular service
Contracted fares
Interest revenue
Insurance refund
Gain on sale of bus
Transfer from General Fund
Total local revenues
- 108 -
Oct. 1, 2011 to
Jun. 30, 2012
Jul. 1, 2012 to
Sep. 30, 2012
$
53,271
14,525
355
1,992
4,823
140,000
$
18,706
210
57
-
$
71,977
14,735
412
1,992
4,823
140,000
$
214,966
$
18,973
$
233,939
Total
City of Big Rapids
Schedule of Expenditures of Federal and State Awards
Federal Grantor / Pass Through Grantor Program Title
Federal CFDA
Number
State Grantor
Number
Program or
Award
Amount
Current year expenditures
Federal
State
Total
Prior Year's
Expeded
Local
Award
Amount
Remaining
Michigan Department of Transportation (MDOT)
Local Bus Operating Assistance (Act 51)
Local Bus Operating Assistance (Act 51)
FY12
FY13
$
Total State Assitance
U.S. Department of Transportation
Passed Through MDOT
Operating Grant - Section 5311
Operating Assistance - Section 5311 - 2009-2010
Rural Transit Assistance Program
Capital Grant - Section 5311 - FY 2010 capital
Total Federal Assitance
$
38,659
126,117
$
-
$
38,659
126,117
$
-
$
155,992
-
$
-
164,776
-
164,776
-
155,992
-
67,872
74,722
78,958
71,016
2
71,016
2
71,016
-
-
67,870
74,722
78,958
-
-
20.509
20.509
20.509
20.509
07-0177/Z9/R1
07-0177/Z11/R1
12-0047/P1/R1
12-0047/P2/R1
20.509
N/A
3,298
3,298
3,298
-
-
-
-
20.509
07-0177/Z6
17,600
-
-
-
-
17,600
-
313,466
74,316
74,316
-
-
239,150
-
$
Total State & Federal Assitance
$
- 109 -
239,092
$
74,316
$
164,776
$
-
$
395,142
$
-
City of Big Rapids
Dial-A-Ride Fund
Schedule 2A - Schedule of Federal & State Awards
Michigan Department of Transportation
Local bus operating (Act 51)
Federal Transit Administration
Section 5311 - operating
RTAP reimbursements
Prior year settlement
Jul. 1, 2012 to
Sep. 30, 2012
Oct. 1, 2012 to
Jun. 30, 2013
$
$
43,552
2,005
-
Total
$
45,557
121,224
Total
$
71,016
1,293
2
$
193,535
164,776
71,016
3,298
2
$
239,092
City of Big Rapids
Dial-A-Ride Fund
Schedule 2B - Schedule of Federal & State Awards
Michigan Department of Transportation
Local bus operating (Act 51)
State portion of facility grant
Federal Transit Administration
Section 5311 - operating
Section 5311 - capital
RTAP reimbursements
Oct. 1, 2011 to
Jun. 30, 2012
Jul. 1, 2012 to
Sep. 30, 2012
$
$
115,992
4,893
48,607
58,833
4,130
834
213,109
Total
$
- 110 -
446,398
43,552
-
Total
$
2,005
$
45,557
159,544
4,893
48,607
58,833
4,130
2,839
213,109
$
491,955
City of Big Rapids
Dial-A-Ride Fund
Schedule 3A - Operating Expenses
Expenses
Labor
Fringe Benefits
Pension
Services
Audit
Materials & supplies
Casualty and liability costs
Utilities
Miscellaneous
Depreciation
Total Expenses
July 1, 2012 to
Sept. 30, 2012
Oct. 1, 2012 to
June 30, 2013
$
56,280
8,304
1,076
3,426
15,767
5,661
1,799
72
31,173
$
213,260
13,718
3,589
10,352
2,740
104,376
6,028
142
93,520
$
269,540
22,022
4,665
13,778
2,740
120,143
5,661
7,827
214
124,693
$
123,558
$
447,725
$
571,283
Total
City of Big Rapids
Dial-A-Ride Fund
Schedule 3B - Operating Expenses
Expenses
Labor
Fringe Benefits
Pension
Services
Audit
Materials & supplies
Casualty and liability costs
Utilities
Miscellaneous
Depreciation
Total Expenses
Oct. 1, 2011 to
June 30, 2012
July 1, 2012 to
Sept. 30, 2012
$
196,219
24,307
21,972
39,043
3,000
63,626
1,495
5,425
860
75,965
$
56,280
8,304
1,076
3,426
15,767
5,661
1,799
72
31,173
$
252,499
32,611
23,048
42,469
3,000
79,393
7,156
7,224
932
107,138
$
431,912
$
123,558
$
555,470
Total
The following cost allocation plans were adhered to in the preparation of the financial statements (note that utilities are now
paid according to meter rather than using the allocation plan):
2006 Utilities and snow removal costs
2006 Maintenance and administrative costs
2009 Charter service
During the fiscal year ended Jun 30, 2013, the Dial-A-Rid paid $4,665 into the defined contribution pension plan. The entire
amount was expensed and included in eligible expenses above. No other postemployment benefit amounts were paid by the
Dial-A-Ride.
- 111 -
City of Big Rapids
Dial-A-Ride Fund
Schedule 4E - Operating and Contract Expenses
Operations
Operating Expenses
Labor
Salaries & wages
Fringe benefits
Pension
Services
Audit
Other services
Materials & Supplies Consumed
Fuel & Lubricants
Other Materials & Supplies
Insurance
Utilities
Miscellaneous
Depreciation
$
$
197,998
25,578
5,684
Maintenance
$
-
General &
Administrative
$
54,501
7,033
17,364
Total
System
$
252,499
32,611
23,048
12,711
13,468
3,000
16,290
3,000
42,469
61,898
2,677
7,156
7,224
-
14,818
-
932
107,138
61,898
17,495
7,156
7,224
932
107,138
320,925
- 112 -
$
28,287
$
206,258
$
555,470
City of Big Rapids
Dial-A-Ride Fund
Schedule 5 - Operating Assistance Calculation
Nonurban
State eligible expenses
Labor
Fringe Benefits
Services
Utilities
Insurance
Miscellanoues
Depreciation
$
252,499
55,659
45,469
79,393
7,156
7,224
932
107,138
Total expenses
555,470
Less ineligible expenses
Depreciation
Capital grant costs not capitalized
Federal grants - RTAP
107,138
2,839
Total ineligble expenses
109,977
445,493
State operating assistance (36.24%)
$
161,447
$
445,493
Federal eligible expenses
Less additional federal ineligible expenses - Audit costs
3,000
Federal eligible expenses
442,493
Section 5311 reimbursement (18.5%)
$
- 113 -
81,861
City of Big Rapids
Dial-A-Ride Fund
Schedule of Nonfinancial Information (unaudited)
Miles
Demand Response
First Quarter (7/1/12 to 9/30/12)
Second Quarter (10/1/12 to 12/31/12)
Third Quarter (1/1/13 to 3/31/13)
Fourth Quarter (4/1/13 to 6/30/13)
Total
Hours
25,490
29,603
29,588
28,010
2,182
2,456
2,579
2,424
112,691
9,641
City of Big Rapids
Dial-A-Ride Fund
Schedule of Nonfinancial Information (unaudited)
Miles
Demand Response
First Quarter (10/1/11 to 12/31/11)
Second Quarter (1/1/12 to 3/31/12)
Third Quarter (4/1/12 to 6/30/12)
Fourth Quarter (7/1/12 to 9/30/12)
Total
Hours
27,861
28,558
27,150
25,490
2,427
2,524
2,303
2,182
109,059
9,436
The methodology for compiling miles and other nonfinancial data information used to allocate costs has been
reviewed and the recording method has been found to be adequate and reliable.
- 114 -
INTERNAL CONTROL AND COMPLIANCE
November 8, 2013
We have audited the financial statements of the governmental activities, the business-type
activities, the discretely presented component unit, each major fund, and the aggregate remaining
fund information of the City of Big Rapids for the year ended June 30, 2013. Professional
standards require that we provide you with information about our responsibilities under generally
accepted auditing standards (and, if applicable, Government Auditing Standards and OMB
Circular A-133), as well as certain information related to the planned scope and timing of our
audit. We have communicated such information in our letter to you dated June 7, 2013.
Professional standards also require that we communicate to you the following information
related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The
significant accounting policies used by the City of Big Rapids are described in Note 1 to the
financial statements. No new accounting policies were adopted and the application of existing
policies was not changed during the fiscal year ended June 30, 2013. We noted no transactions
entered into by the governmental unit during the year for which there is a lack of authoritative
guidance or consensus. All significant transactions have been recognized in the financial
statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management
and are based on management’s knowledge and experience about past and current events and
assumptions about future events. Certain accounting estimates are particularly sensitive because
of their significance to the financial statements and because of the possibility that future events
affecting them may differ significantly from those expected. The most sensitive estimate
affecting the City of Big Rapid’s financial statements was:


Useful lives of capital assets, the allowance for uncollectible accounts receivable, and the
valuation of the pension plan obligations.
Management’s estimate of the useful lives and uncollectible accounts is based on
previous history and the estimate of pension plan obligations is based on actuarial
valuations of the Plans. We evaluated the key factors and assumptions used to develop
the estimates in determining that they are reasonable in relation to the financial
statements taken as a whole.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and
completing our audit.
-1 Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified
during the audit, other than those that are trivial, and communicate them to the appropriate level
of management. Management has corrected all such misstatements. In addition, none of the
misstatements detected as a result of audit procedures and corrected by management were
material, either individually or in the aggregate, to each opinion unit’s financial statements taken
as a whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction,
that could be significant to the financial statements or the auditor’s report. We are pleased to
report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the
management representation letter dated November 8, 2013.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a “second opinion” on certain situations. If a
consultation involves application of an accounting principle to the governmental unit’s financial
statements or a determination of the type of auditor’s opinion that may be expressed on those
statements, our professional standards require the consulting accountant to check with us to
determine that the consultant has all the relevant facts. To our knowledge, there were no such
consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to retention as the governmental unit’s
auditors. However, these discussions occurred in the normal course of our professional
relationship and our responses were not a condition to our retention.
Other Matters
With respect to the supplementary information accompanying the financial statements, we made
certain inquiries of management and evaluated the form, content, and methods of preparing the
information to determine that the information complies with accounting principles generally
accepted in the United States of America, the method of preparing it has not changed from the
prior period, and the information is appropriate and complete in relation to our audit of the
financial statements. We compared and reconciled the supplementary information to the
underlying accounting records used to prepare the financial statements or to the financial
statements themselves.
-2 This information is intended solely for the use of management, the City Commission, and others
within the organization and is not intended to be and should not be used by anyone other than
these specified parties.
Grand Rapids, MI
-3 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS
November 8, 2013
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States, the financial
statements of the governmental activities, the business-type activities, the discretely presented
component unit, each major fund, and the aggregate remaining fund information of City of Big
Rapids, Michigan, (the “City”) as of and for the year ended June 30, 2013, and the related notes
to the financial statements, which collectively comprise City’s basic financial statements, and
have issued our report thereon dated November 8, 2013.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered City’s internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity’s financial statements will not be prevented,
or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or, significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
-1 Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit, and
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing
Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity’s internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity’s
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Best regards,
Grand Rapids, MI
-2

CITY OF BIG RAPIDS MECOSTA COUNTY, MICHIGAN

Transcription

Similar documents

Studnet Branch March 2015 Event

OSSBERGER Small decentralized hydropower stations

Fauquier 01.10.07 - 2/90 Sign Systems!

July 2016.pub

here

grand rapids, mi • van andel arena • sunday, october 16, 2016 • 6:00

A Michigan Success Story

Rough-it @ Rapids Adventure Camps Information Sheet