CITY OF HORNELL, NEW YORK

Transcription

CITY OF HORNELL,
NEW YORK
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
MARCH 31, 2011
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED MARCH 31, 2011
PREPARED BY:
CITY OF HORNELL
CHAMBERLAIN’S OFFICE
THELMA A. PELYCH, CITY CHAMBERLAIN
Comprehensive Annual Financial Report
Table of Contents
Year Ended March 31, 2011
Page
INTRODUCTORY SECTION
Letter of Transmittal .............................................................................................................................. 1
GFOA Certificate of Achievement ........................................................................................................ 5
Organization Chart................................................................................................................................. 6
City Officials ......................................................................................................................................... 7
FINANCIAL SECTION
Independent Auditors’ Report ............................................................................................................... 8
Management’s Discussion and Analysis ............................................................................................... 10
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets ............................................................................................................... 20
Statement of Activities ................................................................................................................. 21
Fund Financial Statements:
Balance Sheet—Governmental Funds ......................................................................................... 22
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets............................................................................................... 23
Statement of Revenues, Expenditures and Changes in Fund
Balances (Deficit)—Governmental Funds ............................................................................ 24
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances (Deficit) of Governmental Funds to the
Statement of Activities .......................................................................................................... 25
Statement of Revenues, Expenditures and Change in Fund Balance—
Budget and Actual—General Fund ....................................................................................... 26
Budget and Actual—Water Fund .......................................................................................... 27
Statement of Fiduciary Net Assets ............................................................................................... 28
Statement of Changes in Fiduciary Net Assets ............................................................................ 29
Notes to the Financial Statements ...................................................................................................... 30
Individual and Combining Fund Statements and Schedules
General Fund:
Schedule of Revenues and Other Financing Sources—Budget and
Actual .................................................................................................................................... 48
Schedule of Expenditures and Other Financing Uses—Budget and
Actual .................................................................................................................................... 53
(continued)
Comprehensive Annual Financial Report
Table of Contents
(concluded)
Page
Water Fund:
Schedule of Revenues—Budget and Actual ................................................................................ 65
Schedule of Expenditures and Other Financing Uses—Budget and Actual ................................ 66
Community Development Fund:
Schedule of Revenues and Expenditures ..................................................................................... 69
Capital Projects Fund:
Combining Balance Sheet—By Project ....................................................................................... 71
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances (Deficits) —By Project ................................................................................. 72
Nonmajor Governmental Funds:
Combining Balance Sheet—Nonmajor Governmental Funds ..................................................... 73
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances—Nonmajor Governmental Funds .......................................................................... 74
Library Fund:
Schedule of Revenues and Other Financing Sources—Budget and
Actual .................................................................................................................................... 75
Schedule of Expenditures—Budget and Actual........................................................................... 76
STATISTICAL SECTION (Unaudited)
Financial Trends:
Net Assets .................................................................................................................................... 77
Changes in Net Assets ................................................................................................................. 78
Fund Balances (Deficits), Governmental Funds .......................................................................... 80
Changes in Fund Balances, Governmental Funds ....................................................................... 81
Revenue Capacity:
Assessed Value and Actual Value of Taxable Property............................................................... 83
Direct and Overlapping Property Tax Rates (Per $1,000) ........................................................... 84
Principal Taxpayers ..................................................................................................................... 85
Real Property Tax Levies and Collections................................................................................... 86
Debt Capacity:
Ratios of General Bonded Debt per Capita .................................................................................. 87
Ratios of General Bonded Debt to Taxable Property Values ...................................................... 88
Direct and Overlapping Governmental Activities Debt ............................................................... 89
Computation of Legal Debt Margin ............................................................................................. 90
Legal Debt Margin ...................................................................................................................... 91
Demographic and Economic Information:
Demographic and Economic Statistics ........................................................................................ 92
Principal Employers ..................................................................................................................... 93
Operating Information:
Full-time Equivalent Town Employees by Function/Program .................................................... 94
Operating Indicators by Function/Program ................................................................................. 96
Miscellaneous Capital Asset Statistics by Function/Program ...................................................... 97
INTRODUCTORY SECTION
The annual budget serves as the foundation for the City’s financial planning and control. Budget
to actual comparisons are provided in this report for each individual governmental fund for which
an annual budget is adopted. Certain funds, such as community development and capital projects,
do not have annual adopted budgets. In these funds either the grant documents or project-length
budgets are the control device.
Local Economy
While the City has been faced with many of the same negative economic conditions as other
small cities, our revenues and expenditures have remained relatively steady. The City has
survived the worst of its problems and has continued to rebound in the past five years. During
1997, Alstom, Inc. acquired all property, leasehold interests and personnel from Amerail. Alstom
has made substantial commitments of resources to the City as its first and only location in the
United States.
Record commercial development over the past year has created viable retail operations within the
City. These retail operations provide opportunity for local employment and have assisted in
keeping sales tax dollars within the City limits.
We continue our efforts to maintain a vital downtown area and central business district. Working
in concert with the City’s Chamber of Commerce, Hornell Partners for Growth, and the Industrial
Development Agency, we continue to identify programs to assist existing merchants and recruit
new businesses to this area.
During the past ten years, the City’s expenses relating to public safety have increased in amount
and as a percentage of total expenses. This increase reflects both regional and national trends that
have seen the salaries and benefits of police and firefighters growing at a much faster rate than
those of other categories of public-sector employees.
During this same ten year period, revenues from state aid, federal aid and charges for services
have not kept pace with the increase in expenses. Therefore, the burden for supporting ongoing
expenses has fallen to local taxpayers in the form of real property and sales taxes.
The City of Hornell has been faced with the same economic challenges as all other local
governments in New York State has faced. Due to a strong commercial base that has developed
in the City over the past decade the City has been able to maintain services and stabilize taxes due
to the growth in sales tax revenue.
In late 2009 and early 2010 Hornell’s major employer Alstom (transit car manufacturing)
completed a major NYC contract (R-160). This was the largest transit car contract ever awarded
in this country. As the contract neared completion Alstom reduced staffing and has continued to
do so. Alstom maintains an employment level of approximately 150 employees; they have laid
off over 500 people from 2009 through the spring of 2010. Alstom continues to seek contract
work and is currently bidding on work as it becomes available.
The City continues to work closely with Alstom and offer any assistance that it can so as to
continue its success here in the City. That being said, the City also aggressively pursues new
economic development opportunities continuously. The City has worked with retailer Tractor
Supply and they have opened a new thirty thousand square foot store in the former P&C Market
location filling a vacant commercial space with a successful new retailer. The City is also in
preliminary conversations with several potential manufacturing businesses that could result in
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substantial employment opportunities in the months to come; working with EPX (Electrical
Power Works) to create new jobs and with TTA (Transportation Transit Associates) to expand
operations locally. Both projects are projected to result in 25-50 new jobs over the next 2 years.
This City is financially stable and has managed to deliver four successive budgets holding the tax
levy and most recently reducing taxes by over 5%. We are diligent and mindful of the economic
climate and will continue to manage our workforce and spending in a highly responsible manner.
This attention to fiscal stability was evident in the recent bond rating upgrade by Standard and
Poor’s Rating Service. The City received a rating of A/stable with strengths being good financial
management contributing to improved fund balance levels and a low overall debt burden.
Long-term Financial Planning
The City’s General Fund, unreserved, undesignated fund balance at March 31, 2011 represents
approximately 15.6 percent of its annual appropriations. The City Council feels this is a prudent
level of fund balance as we continue to strive to provide excellent service to City residents, while
maintaining a stable tax rate. In addition, the City has established certain reserves, which
represent legal segregations of fund balance, for specific purposes; and designations, which
represent management’s intended use of fund balance. These reserves and designations serve to
protect the City and assist in stabilizing tax rates. The City has outlined a long-term financial
planning document that is updated annually.
An important part of our planning process is our continual review and updating of our capital
plan. Potential projects are discussed and evaluated as to their benefit to the community, as well
as, funding alternatives and cost to taxpayers. This process has assisted in getting project
properly prioritized, planned, funded and constructed in an effective manner.
Major Initiatives
We continue with some major projects that will benefit the City for years to come. Some of our
accomplishments and initiatives include:
 Federation Lofts/Arts Center – Restoration of historic building into nine loft
apartments and rehabilitation of retail space.
 General Improvements - Capital projects towards improvements to the City’s
infrastructure will continue as resources permit.
 Housing Rehabilitation Program - The City continues to assist homeowners in
helping to upgrade their property. The City has also has partnered with the
Southern Tier Central BOCES in the construction of three new homes
constructed throughout targeted neighborhoods within the City and sold to first
time home buyers. Currently completing the fourth BOCES home with the fifth
in planning stages.
 Sewer Line Installation – Fairlawn Drive (23 acres) to promote housing
development presently in undeveloped land.
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Organizational Chart
The Citizens of the City
of Hornell, New York
City Chamberlain
Mayor
Common Council
City Attorney
Zoning Board
City Clerk
Board of Public
Works
Board of Health
Superintendent of
Public Works
Engineering
Water Filtration
Plant
Hornell Area
Transit
General Foreman
Water Pollution
Control Plant
City Assessor
Board of Public
Safety
Police Chief
Police
Fire Chief
Fire
Ambulance
Sewers
Bridges
Parks
Streets
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Code Enforcement
Water
City Garage
Code Enforcement
City Officials
Name
Title
Elected:
Honorable Shawn D. Hogan
Mayor
Christopher Koehler
Alderman
William Norton
Alderman
Angelo Sciotti
Alderman
Joseph Foreman
Alderman
Joseph Testani
Alderman
Jean Shepard
Alderman
Robert Lockwood
Alderman
John Carbone
Alderman
Robert Murray
Alderman
John Buckley
Alderman
Thelma A. Pelych
City Chamberlain
Joseph E. Damrath
City Judge
Appointed:
Barbara Perot
City Clerk
Joseph G. Pelych
City Attorney
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FINANCIAL SECTION
Drescher & Malecki LLP
3083 William Street, Suite 5
Cheektowaga, New York 14227
Telephone: 716.565.2299
Fax: 716.565.2201
Certified Public Accountants
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and Common Council
City of Hornell, New York
We have audited the accompanying financial statements of the governmental activities, each
major fund, and the aggregate remaining fund information of City of Hornell, New York (the
“City”), as of and for the year ended March 31, 2011, which collectively comprise the City’s
basic financial statements as listed in the foregoing table of contents. These financial statements
are the responsibility of the City’s management. 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. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the basic financial statements are free of material
misstatement. An audit includes consideration of internal control over financial reporting as a
basis for designing audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audit provides a reasonable basis
for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, each major fund, and the
aggregate remaining fund information of the City as of March 31, 2011, and the respective
changes in financial position thereof, and the respective budgetary comparisons for the General
and Water Funds for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
The Management’s Discussion and Analysis, as listed in the foregoing table of contents, is not a
required part of the basic financial statements, but is supplementary information required by
accounting principles generally accepted in the United States of America. This required
supplementary information is the responsibility of the City’s management. We have applied
certain limited procedures, which consisted principally of inquiries of management regarding the
methods of measurement and presentation of the required supplementary information. However,
we did not audit the information and express no opinion on it.
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Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The combining and individual fund
financial statements and schedules listed in the foregoing table of contents are presented for the
purpose of additional analysis and are not a required part of the basic financial statements of the
City. These financial statements and schedules are also the responsibility of the management of
the City. Such additional information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, is fairly stated in all material respects
in relation to the basic financial statements taken as a whole.
The introductory and statistical sections as listed in the foregoing Table of Contents are presented
for the purpose of additional analysis and are not a required part of basic financial statements of
the City. The introductory and statistical sections are the responsibility of the management of the
City. Such additional information has not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we express no opinion on it.
July 14, 2011
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Management’s Discussion and Analysis
As management of the City of Hornell, New York (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 March 31, 2011. This document should be read in conjunction with additional information that we
have furnished in the City’s financial statements, which follow this narrative.
Financial Highlights
 The assets of the City exceeded its liabilities at the close of the fiscal year by $32,979,835
(net assets). Of this amount, $3,003,106, (unrestricted net assets) may be used to meet the
government’s ongoing obligations to citizens and creditors.
 The City’s total net assets increased by $150,596 as a result of this year’s activity.
 At the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $3,062,661, a decrease of $57,098 in comparison with the prior
year. Approximately 77.6 percent of this total amount, $2,376,937, is available for
spending at the City’s discretion (unreserved, undesignated fund balance).
 At the close of the current fiscal year, unreserved, undesignated fund balance for the
General Fund was $1,754,934, or approximately 15.6 percent of total General Fund
expenditures.
 The City’s total bonded indebtedness decreased by $306,257 during the current fiscal year
due to payments made on principal on outstanding debt.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City’s basic financial
statements. The City’s basic financial statements comprise three components: 1) government-wide
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 assets presents information on all of the City’s assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets 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 government’s net assets changed during
the most recent fiscal year. All changes in net assets 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 result in cash flows in prior or future fiscal periods (e.g.,
earned but unused vacation leave and depreciation expense on capital assets).
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
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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, streets
maintenance, sanitation, economic development, and culture and recreation; the City does not engage in
any business-type activities.
The government-wide financial statements can be found on pages 20-21 of this report.
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 two categories: governmental funds and
fiduciary funds.
A. 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 government’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 government’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.
The City maintains six individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures,
and changes in fund balances (deficits) for the General, Water, Community Development and Capital
Projects Funds, all of which are considered to be major funds. Data from the other two governmental
funds are combined into a single aggregated presentation. Individual fund data for each of these
nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.
The City adopts an annual budget for the General and Water Funds. A budgetary comparison
statement has been provided for these funds to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 22-27 of this report.
B. Fiduciary funds—Fiduciary funds are used to account for resources held for the benefit of parties
outside the City. Fiduciary funds are not reflected in the government-wide financial statement because
the resources of those funds are not available to support City’s own programs.
The basic fiduciary fund financial statements can be found on pages 28-29 of this report.
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. The notes to the
financial statements can be found on pages 30-47 of this report.
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Other information—In addition to the basic financial statements and the accompanying notes, this report
also presents a section with supplemental information about individual funds. The supplemental
information can be found following the notes to the financial statements of this report.
The combining statements referred to earlier in connection with nonmajor governmental funds are
presented immediately following the supplemental information mention above.
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as useful indicator of a government’s financial position. In
the case of the City, assets exceeded liabilities by $32,979,835 at the close of the most recent fiscal year.
Table 1, shown below, presents a condensed statement of net assets, compared to the prior year.
TABLE 1 – CONDENSED STATEMENT OF NET ASSETS
March 31,
Current assets
Capital assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Invested in capital assets,
net of related debt
Unrestricted
Total net assets
2011
2010
$ 5,452,619
37,076,354
42,528,973
$ 5,404,878
37,112,598
42,517,476
2,388,312
7,160,826
9,549,138
2,282,543
7,405,694
9,688,237
29,976,729
3,003,106
$ 32,979,835
30,253,560
2,575,679
$ 32,829,239
By far the largest portion of the City’s net assets (90.9 percent) reflects its investment in capital assets (such
as land, buildings, machinery and equipment, and infrastructure); less any related debt used to acquire those
assets that are 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 capital
assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be
provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
For the current year, the City’s investment in capital assets, net of related debt decreased by $276,831 in
comparison to the prior year. This decrease was primarily the result of depreciation expense incurred
during the year and additional debt issued to acquire assets.
The remaining balance of unrestricted net assets, $3,003,106 , may be used to meet the government’s
ongoing obligations to citizens and creditors.
At the end of the current fiscal year the City is able to report positive balances in both categories of net
assets. The same situation held true for the prior year.
The City had a current ratio of 2.28 at March 31, 2011. Such a ratio implies that the City has sufficient
assets on hand to cover its liabilities that will come due in the coming year. A comparison of the ratio of
current assets to current liabilities for the City at March 31, 2011 and 2010 is presented in Table 2.
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TABLE 2 – CURRENT ASSETS AND CURRENT LIABILITIES
March 31,
2011
Current assets
Current liabilities
$
2010
5,452,619
2,388,312
Ratio of current assets to
current liabilities
2.28
$
5,404,878
2,282,543
2.37
Governmental activities—Governmental activities increased the City’s net assets by $150,596 during the
year ended March 31, 2011. Key elements of this increase are presented on the following page, in Table 3.
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TABLE 3 – CHANGES IN NET ASSETS
Year Ended March 31,
2011
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Real property taxes and items
Sales tax
Mortgage tax
Utilities gross receipt tax
Use of money and property
Sale of property and comp. for loss
Miscellaneous
State aid—unrestricted
Total revenues
Program expenses:
General government support
Public safety
Health
Transportation
Culture and recreation
Home and community service
Interest on debt
Total expenses
Change in net assets
Net assets—beginning
Net assets—ending
$
2010
4,114,718
975,715
1,521,323
$
4,287,037
1,777,319
596,876
Increase/(Decrease)
Dollars
Percent
$ (172,319) -4.0%
(801,604) -45.1%
924,447 154.9%
3,277,210
3,209,351
47,497
94,219
25,996
21,264
378,710
1,542,781
3,259,184
3,044,344
42,356
105,437
20,957
11,139
156,847
1,576,077
18,026
165,007
5,141
(11,218)
5,039
10,125
221,863
(33,296)
0.6%
5.4%
12.1%
-10.6%
24.0%
90.9%
141.5%
-2.1%
15,208,784
14,877,573
331,211
2.2%
1,763,652
4,174,954
895,720
3,305,890
772,852
3,949,658
195,462
2,256,406
4,085,458
674,055
3,151,400
735,470
5,049,254
226,900
(492,754)
89,496
221,665
154,490
37,382
(1,099,596)
(31,438)
-21.8%
2.2%
32.9%
4.9%
5.1%
-21.8%
-13.9%
15,058,188
16,178,943
(1,120,755)
-6.9%
150,596
(1,301,370)
32,829,239
34,130,609
$ 32,979,835
$ 32,829,239
As presented in Table 3, overall revenues increased 2.2 percent from the 2010 fiscal year. Key elements of
this are as follows:
 Capital grants and contributions—increased by $924,447, or 154.9 percent, primarily as a
result of state aid and federal aid received for current airport projects.
 Operating grants and contributions—decreased by $801,604, or 45.1 percent, from the
prior fiscal year mainly due to a reduction in community development activities.
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As presented in Figure 1 below, the City’s most significant sources of revenues, for the year ended March
31, 2011, are charges for services of $4,114,718, comprising approximately 27.1 percent of total revenues,
real property tax and items of $3,277,210, or 21.5 percent of total revenues, and sales tax of $3,209,351,
which comprise 21.1 percent of total revenues.
FIGURE 1 - REVENUES BY SOURCE
State aid unresricted
10.1%
Sales tax
21.1%
Charges for
services
27.1%
Operating grants
and contributions
6.4%
Other
3.8%
Capital grants and
contributions
10.0%
Real property taxes
21.5%
Overall expenses decreased 6.9 percent from the 2010 fiscal year. Key elements of this are as follows:
 Home and community services— decreased by $1,099,596, or 21.8 percent. This decrease was
mainly the result of the decreased activities within the Community Development Fund.
 General government support—decreased by $492,754, or 21.8 percent. This decrease is primarily
due to a reassessment of capital assets during the prior year which changed depreciation expense
allocations.
As presented on the following page in Figure 2, the most significant sources of expenses are public safety
of $4,174,954, or 27.7 percent of total expenditures, home and community services of $3,949,658,
comprising approximately 26.2 percent of total expenditures, transportation of $3,305,890, comprising 22.0
percent of total expenditures and general government support of $1,763,652, which comprise 11.7 percent
of total expenditures.
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FIGURE 2 - PROGRAM EXPENSES BY TYPE
Home and
community
services
26.2%
Public safety
27.7%
General
government
support
11.7%
Other
12.4%
Transportation
22.0%
Financial Analysis of the City’s Funds
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, unreserved fund balance may serve as a useful measure of a
government’s net resources available for spending at the end of the fiscal year.
At March 31, 2011, the City’s governmental funds reported combined ending fund balances of $3,062,661;
a decrease of $57,098 in comparison with the prior year. Of the combined ending fund balances,
$2,376,937 constitutes unreserved, undesignated fund balance, which is available for spending at the
government’s discretion; while $317,622 has been designated for the subsequent year’s expenditures. The
remainder of fund balance is reserved to indicate it is not available for new spending because it has been
committed and reserved for specific purposes.
The General Fund is the chief operating fund of the City. At March 31, 2011, the unreserved,
undesignated fund balance of the General Fund was $1,754,934, while the total fund balance reached
$2,314,036. As a measure of the General Fund’s liquidity, it may be useful to compare both the
unreserved, undesignated and total fund balances to total fund expenditures. Unreserved, undesignated
fund balance represents approximately 15.6 percent of total General Fund expenditures, while total fund
balance represents approximately 20.6 percent of that same amount.
Fund balance of the City’s General Fund increased by $55,780 during the current fiscal year. This
compares favorably to the City’s adopted budget which utilized $185,000 of fund balance. This increase is
primarily due to the collection of greater than anticipated ambulance fees.
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The Water Fund had total revenues of $1,710,439, which were primarily comprised of charges and fees
collected from the distribution of water services. Total expenditures were $1,498,637 and fund balance
increased to $556,827. The fund balances of the City’s Water Fund increased by $211,802 mainly due to
conservative spending and less than anticipated increases in employee benefits.
The Capital Projects Fund had a total fund balance deficit of $105,437. The fund balance of the Capital
Projects Fund decreased by $388,981 due primarily to capital outlay expenditures incurred for airport
improvement projects.
The Community Development Fund realized a decrease in fund balance of $935 during the year ended
March 31, 2011.
General Fund Budgetary Highlights
During the current year, there were supplemental appropriations to the General Fund’s budget totaling
$753,225. In the General Fund, health related expenditures, home and community services, debt-service
expenditures relating to capital lease payments, and operating transfers exceeded budgetary appropriations.
This primarily occurs as the uses of reserved fund balances are not included in the budget process.
Significant variances between the final amended budget and actual results include additional revenues of
$294,577 of departmental income, primarily due to larger than anticipated ambulance fees. Actual federal
aid was $422,278 less than budgeted as the amended budget reflects aid received in the prior year.
Additionally, total actual expenditures were $245,022 less than the final amended budget primarily due to
transportation including expenditures that were incurred in the prior year.
More detailed information about the City’s General Fund budget is presented in the Statement of Revenues,
Expenditures and Change in Fund Balance—Budget and Actual and the notes to the financial statements.
Capital Assets and Debt Administration
Capital assets—The City’s investment in capital assets for its governmental activities as of March 31,
2011, amounts to $37,076,354 (net of accumulated depreciation). This investment in capital assets includes
land, land improvements, buildings, machinery and equipment, and infrastructure.
The City’s assets are recorded at historical cost, or estimated historical cost, in the government-wide
financial statements. In accordance with governmental accounting standards, the City depreciates all
depreciable assets as outlined in the City’s capital asset policy.
- 17 -
A summary of capital assets, net of accumulated depreciation, for the City’s governmental activities, at
March 31, 2011 is presented in Table 4 below.
TABLE 4 - CAPITAL ASSETS (NET OF ACCUMULATED DEPRECIATION)
March 31,
2011
Land
Construction in progress
Land improvements
Buildings
Machinery and equipment
Infrastructure
Total
$
2010
669,498
1,634,387
559,588
3,607,981
2,968,057
27,636,843
$
669,498
644,613
3,760,919
2,808,491
29,229,077
$ 37,076,354
$
37,112,598
Additional information on the City’s capital assets can be found in note 6 to the financial statements.
Long-term debt—At March 31, 2011, the City had total long-term debt outstanding of $7,160,826 as
compared to $7,405,694 in the prior year. Of the total long-term debt outstanding at March 31, 2011,
$4,366,906 represents serial bonds issued by the City. New York State statutes limit the amount of general
obligation debt a governmental entity may issue up to 7% of its five year valuation. The City is well within
this debt limit. Details of the City’s long-term outstanding debt are presented in Table 5 below.
TABLE 5 - OUTSTANDING LONG-TERM DEBT
March 31,
2011
$ 4,366,906
1,944,000
Serial bonds
EFC note payable
Due to NYS Retirement
Systems
142,045
Other post-employment benefits
519,156
188,719
Capital leases
$ 7,160,826
Total
2010
$ 4,673,163
2,074,000
173,432
391,974
93,125
$ 7,405,694
During the year ended March 31, 2010 the City’s bond rating was upgraded from Baa to A. The rating
reflects Standard and Poor’s Ratings Services’ opinion that the City has good financial management
contributing to improved fund balance levels and a low overall debt burden.
Additional information on the City’s long-term debt can be found in note 8 to the financial statements.
- 18 -
Economic Factors and Next Year’s Budgets and Rates
The following factors were considered in preparing the City’s budget for the year ending March 31,
2012, there are many other important factors outside the City’s control that exert significant
influence on the budget. Some of these factors are as follows.
 The unemployment rate (not seasonally adjusted) for the County of Steuben, which
encompasses the City, was 9.9 percent at March 31, 2011. This rate is higher than the
state’s rate of 8.0 percent and higher than the national rate of 8.8 percent.
 Health insurance and retirement costs for employees as mandated by the New York State
and Local Employees Retirement System and the New York State Police and Fire
Retirement System are anticipated to increase at rates significantly above inflation.
 Revenues from state aid are anticipated to be relatively flat (no increase).
During the budget process for the 2011-12 City budget, the City appropriated $317,622 of fund balances.
This amount has been shown as a designation as of March 31, 2011.
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 Chamberlain’s Office, City of
Hornell, 82 Main Street, Hornell, New York 14843.
- 19 -
BASIC FINANCIAL STATEMENTS
Statement of Net Assets
March 31, 2011
Governmental
Activities
ASSETS
Cash and cash equivalents
Accounts receivable
Due from other governments
Capital assets not being depreciated
Capital assets net of accumulated depreciation
$
2,902,479
1,439,368
1,110,772
2,303,885
34,772,469
42,528,973
Total assets
LIABILITIES
Accounts payable
Retention payable
Accrued liabilities
Unearned revenue
Due to other governments
Bond anticipation notes payable
Non-current liabilities:
Due within one year
Due within more than one year
212,304
64,149
255,949
784,966
470,944
600,000
542,972
6,617,854
9,549,138
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
29,976,729
3,003,106
$
Total net assets
The notes to the financial statements are an intergral part of this statement.
- 20 -
32,979,835
Statement of Activities
Program Revenues
Function/Program
Primary government:
Governmental activities:
Public safety
Health
Transportation
Interest on debt
Total primary government
Expense
$
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Net (Expense)
Revenue and Changes
in Net Assets
Governmental
Activities
1,763,652
4,174,954
895,720
3,305,890
772,852
3,949,658
195,462
$
8,244
228,203
1,127,135
356,312
9,068
2,385,364
-
$
5,403
686,383
13,156
270,769
-
$
1,500,923
20,400
-
$
(1,755,408)
(3,941,348)
231,415
(762,272)
(750,628)
(1,273,125)
(195,462)
$ 15,058,188
15 058 188
$
4 114 326
4,114,326
$
975 711
975,711
$
1 521 323
1,521,323
$
(8 446 828)
(8,446,828)
General revenues:
Real property taxes and items
NSales tax
Mortgage tax
Sale of property and compensation for loss
Miscellaneous
State aid—unrestricted
Total general revenues
Net assets—ending
- 21 -
3,277,210
3,209,351
47,497
94,219
25,996
21,264
379,106
1,542,781
8,597,424
150,596
32,829,239
$ 32,979,835
Balance Sheet—Governmental Funds
March 31, 2011
Special Revenue
General
ASSETS
Receivables (net of allowance for
uncollectibles, where applicable)
Accounts
Taxes
Loans
Due from other funds
Total assets
$
Water
$
364,392
222,705
1,074,769
$
LIABILITIES AND FUND BALANCES (DEFICIT)
Liabilities:
Accounts payable
$
Retention payable
Accrued liabilities
Due to other funds
Due to other governments
Deferred revenue
Total liabilities
Fund balances (deficit):
Reserved for:
Special purposes
Unreserved, designated for:
Subsequent year's expenditures
Unreserved, undesignated reported in:
General fund
Special revenue funds
Capital projects fund (deficit)
Total fund balances (deficit)
Total liabilities and fund balances (deficit)
1,489,731
505,688
$
87,182
-
20,543
Capital
Projects
$
765,089
73,467
-
600,976
Other
Governmental
Funds
$
36,003
285,541
Total
Governmental
Funds
$
-
2,902,479
451,574
222,705
765,089
73,467
1,110,772
3,151,597
$
592,870
$
859,099
$
636,979
$
285,541
$
5,526,086
110,198
193,823
470,941
62,599
837,561
$
20,845
15,198
36,043
$
1,759
184
3
765,089
767,035
$
78,267
64,149
600,000
742,416
$
1,235
5,668
73,467
80,370
$
212,304
64,149
214,873
73,467
470,944
827,688
600,000
2,463,425
368,102
$
Community
Development
-
-
-
-
368,102
-
-
317,622
191,000
126,622
-
1,754,934
2,314,036
430,205
556,827
92,064
92,064
3,151,597
$
592,870
- 22 -
$
859,099
(105,437)
(105,437)
$
636,979
205,171
205,171
$
285,541
1,754,934
727,440
(105,437)
3,062,661
$
5,526,086
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
March 31, 2011
Amounts reported for governmental activities in the statement of net assets are different
because:
Total fund balance—governmental funds
$
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds. The cost of the assets is $96,496,659 and
the accumulated depreciation is $59,420,305.
3,062,661
37,076,354
Net accrued interest expense for bonds is not reported in the funds.
(41,076)
Real property taxes not collected within sixty days of year end are not recognized in
the funds.
42,722
Long-term liabilities, including bonds payable, long-term note payable, capital
leases, long-term retirement liability and other post employment benefits are not due
and payable in the current period and therefore are not reported in the funds:
Bonds payable
EFC note payable
Capital lease
$
Retirement liability
Total net assets—governmental activities
(4,366,906)
(1,944,000)
(188,719)
(519,156)
(7,160,826)
(142,045)
$
- 23 -
32,979,835
Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit)—Governmental Funds
Special Revenue
Other
Community
Capital
Governmental
General
Water
Development
Projects
Funds
REVENUES
Real property taxes
Other tax items
Non-property tax items
Departmental income
Intergovernmental charges
Licenses and permits
Fines and forfeitures
Sale of property and compensation for loss
Miscellaneous
State aid
Federal aid
Total revenues
$
EXPENDITURES
Current:
Public safety
Health
Transportation
Employee benefits
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from capital lease
Transfers in
Transfers out
Total other financing sources (uses)
$
Net change in fund balances (deficits)
$
1,697,838
12,593
8
1,710,439
$
83,200
225
2,971
270,769
357,165
$
19,668
147
299,217
834,730
355,646
1,509,408
$
150,000
138,055
18
10,673
8,582
307,328
$
2,794,945
498,002
3,303,570
3,998,620
19,668
26,221
35,632
60,181
21,264
379,106
3,129,950
957,362
15,224,521
1,061,068
2,764,457
578,757
2,349,889
287,033
1,378,534
2,367,295
-
86,317
966,375
206,131
-
358,100
-
1,967,139
99,961
212,334
47,297
-
1,147,385
2,864,418
578,757
2,349,889
499,367
2,703,009
2,620,723
1,967,139
277,654
177,069
11,241,756
206,614
33,200
1,498,637
358,100
1,967,139
359,592
484,268
210,269
15,425,224
98,425
211,802
143,605
185,000
(371,250)
(42,645)
Fund balances—beginning
Fund balances (deficit)—ending
2,644,945
498,002
3,303,570
2,079,527
13,238
35,632
60,181
21,264
66,237
2,286,638
330,947
11,340,181
Total
Governmental
Funds
-
55,780
211,802
2,258,256
345,025
2,314,036
(935)
$
556,827
- 24 -
(935)
92,999
$
92,064
$
(457,731)
(52,264)
(200,703)
68,750
68,750
117,500
117,500
143,605
371,250
(371,250)
143,605
(388,981)
65,236
283,544
139,935
(105,437)
$
205,171
(57,098)
3,119,759
$
3,062,661
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances (Deficit) of Governmental Funds to the Statement of Activities
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances (deficits)—total governmental funds
$
(57,098)
Governmental funds report capital asset additions as expenditures. However, in the statement of
activities, assets with an initial, individual cost of more than $1,000 are capitalized and the cost is
allocated over their estimated useful lives and reported as depreciation expense.
Capital asset additions
Depreciation expense
Loss on disposal of assets
$
2,469,342
(2,484,901)
(20,685)
(36,244)
The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt consumes the current
financial resources of governmental funds. Neither transaction, however, has any effect on net
assets. Also, interest is recognized as an expenditure in the governmental funds when it is due. In
the statement of activities, interest expense is recognized as it accrues, regardless of when it is
due. The net effect of these differences in the treatment of general obligation bonds and related
items is as follows:
Principal repayment of serial bonds
Principal repayment of EFC notes
Change in capital lease activity
Change in interest expense accrued
$
306,257
130,000
(95,594)
14,807
355,470
In the statement of activities, certain operating expenses (e.g. other post-employment benefits and
retirement costs) are measured by the amounts earned by employees during the year. However,
in the governmental funds expenditures for these items are measured by the amount of financial
resources used (essentially, the amounts actually paid). The net effect of these differences is:
$
(127,182)
31,387
(95,795)
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in the funds (i.e., deferred taxes).
(15,737)
Retirement liability
Change in net assets of governmental activities
$
- 25 -
150,596
Budget and Actual—General Fund
Budgeted Amounts
Final
Original
REVENUES
Real property taxes
Other tax items
Non-property tax items
Departmental income
Sale of property
and compensation for loss
Miscellaneous
State aid
Federal aid
Total revenues
EXPENDITURES
Current:
Public safety
Health
Transportation
Home and community services
Employee benefits
Debt service:
Principal
Interest
Total expenditures
Actual
Amounts
Variance with
Final Budget
$ 2,635,499
474,500
3,335,000
1,784,950
22,500
49,000
50,000
$ 2,635,499
474,500
3,335,000
1,784,950
22,500
49,000
50,000
$ 2,644,945
498,002
3,303,570
2,079,527
13,238
35,632
60,181
$
9,446
23,502
(31,430)
294,577
(9,262)
(13,368)
10,181
30,000
6,000
2,333,854
-
30,000
6,000
2,333,854
753,225
21,264
66,237
2,286,638
330,947
(8,736)
60,237
(47,216)
(422,278)
10,721,303
11,474,528
11,340,181
(134,347)
1,159,477
2,739,729
559,574
2,090,750
309,125
1,198,850
2,295,813
1,091,441
2,771,893
559,574
2,815,058
311,462
1,167,567
2,368,826
1,061,068
2,764,457
578,757
2,349,889
287,033
1,378,534
2,367,295
30,373
7,436
(19,183)
465,169
24,429
(210,967)
1,531
229,643
155,592
229,643
171,314
277,654
177,069
(48,011)
(5,755)
10,738,553
11,486,778
11,241,756
245,022
(17,250)
(12,250)
98,425
110,675
Transfers in
Transfers out
18,500
(186,250)
(167,750)
18,500
(191,250)
(172,750)
143,605
185,000
(371,250)
(42,645)
143,605
166,500
(180,000)
130,105
Net change in fund balance
(185,000)
(185,000)
55,780
240,780
2,258,256
$ 2,314,036
240,780
Fund balance—beginning
Fund balance—ending
2,258,256
$ 2,073,256
2,258,256
$ 2,073,256
The notes to the financial statements are an integral part of this statement.
- 26 -
$
Budget and Actual—Water Fund
Budgeted Amounts
REVENUES
Departmental income
Miscellaneous
Total revenues
Original
Final
Actual
Amounts
$ 1,619,000
7,000
3,000
1,629,000
$ 1,619,000
7,000
3,000
1,629,000
$ 1,697,838
12,593
8
1,710,439
87,550
1,152,140
278,000
87,550
1,152,140
278,000
86,317
966,375
206,131
206,614
28,908
1,753,212
206,614
28,908
1,753,212
206,614
33,200
1,498,637
EXPENDITURES
Current:
Employee benefits
Debt service:
Principal
Interest
Total expenditures
Variance with
Final Budget
$
78,838
5,593
(2,992)
81,439
1,233
185,765
71,869
(4,292)
254,575
(124,212)
(124,212)
Transfers out
19,000
(43,000)
19,000
(43,000)
-
(19,000)
43,000
(24,000)
(24,000)
-
24,000
(148,212)
(148,212)
211,802
Fund balance—beginning
345,025
345,025
345,025
Transfers in
Fund balance—ending
$
196,813
$
196,813
- 27 -
211,802
$
556,827
336,014
360,014
$
360,014
Statement of Fiduciary Net Assets
March 31, 2011
Private - Purpose
Trust
ASSETS
$
63,318
63,318
Total assets
NET ASSETS
$
Reserved for private purposes
63,318
- 28 -
Statement of Changes in Fiduciary Net Assets
Private - Purpose
Trust
ADDITIONS
Interest income
Miscellaneous revenue
Total additions
$
31
33,789
33,820
DEDUCTIONS
Trust awards
Total deductions
38,483
38,483
(4,663)
67,981
$
Net assets—ending
63,318
- 29 -
Notes to the Financial Statements
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Hornell, New York (the “City”) have been prepared in
conformity with accounting principles generally accepted in the United States of America as applied to
government units. The Governmental Accounting Standards Board (“GASB”) is the accepted standardsetting body for establishing governmental accounting and financial reporting principles. The more
significant of the City’s accounting policies are described below.
A. Reporting Entity
The City, which was incorporated in 1888, is governed by the Charter of the City of Hornell, the
General City Law and other laws of the State of New York and various local laws and ordinances.
The Common Council, which is the legislative body responsible for the overall operation of the
City, consists of ten aldermen. The Mayor serves as chief executive officer and the Chamberlain
serves as chief fiscal officer of the City.
The City provides the following basic services: police and law enforcement, fire protection, street
maintenance, culture and recreation, sanitation, water facilities and community development.
All governmental activities and functions performed for the City are its direct responsibility. No
other governmental organizations have been included or excluded from the reporting entity.
The financial reporting entity consists of (a) the primary government which is the City of Hornell,
(b) organizations for which the primary government is financially accountable, and (c) other
organizations for which the nature and significance of their relationship with the primary
government are such that exclusion would cause the reporting entity’s financial statements to be
misleading or incomplete.
Based on the foregoing criteria, no other organizations, functions or activities are included in the
City’s reporting entity.
Related Organizations—Although the following organizations, functions or activities are related to
the City, they are not included in the City reporting entity.
The City of Hornell Industrial Development Agency (the “Agency”) is a Public Benefit
Corporation created under Article 18-A, Title 1, of New York State General Municipal Law to
promote the economic welfare, recreation opportunities and prosperity of the City’s inhabitants.
Members of the Agency are appointed by the City Common Council. Agency members have
complete responsibility for management of the Agency and accountability for fiscal matters. The
City is not liable for the Agency’s debt.
- 30 -
The City of Hornell Housing Authority was established by the state legislature to provide for low
rent housing in accordance with state and federal legislation. Housing Authority board members
are approved by the City. Housing Authority members have complete responsibility for
management and accountability for fiscal matters. The City is not liable for the Housing
Authority’s debt.
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., statement of net assets and the statement of
activities) report information on all of the nonfiduciary activities of the primary government.
Interfund activity has been removed from these statements. 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.
The statement of activities demonstrates the degree to which the direct expenses of a given function
or segments are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function or segment. Indirect expenses have been included as part of the program
expenses reported for the various functional activities. Program revenues include: (1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function, and (2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function. Taxes and other items are not properly
included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and fiduciary funds, even
though the latter are excluded from the government-wide financial statements. Major individual
governmental funds are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide and fiduciary fund financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting. Revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of the related
cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants
and similar items are recognized as revenues as soon as all eligibility requirements imposed by the
provider have been met.
Governmental fund 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 City considers revenues to be available if they are collected within 60 days of the end
of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as
under accrual accounting. However, debt service expenditures (including bonds and leases
payable), as well as amortized costs such as retirement liability payments and other post
employment benefits are recorded only when payment is due.
Property taxes, non-property taxes, ambulance and water billings, licenses 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.
- 31 -
The City reports the following major governmental funds:
 General Fund—This is the principal operating fund of the City and includes all
operations not required to be recorded in other funds.
 Water Fund—This is used to record all revenues and expenditures related to
operation and maintenance of the City water system.
 Community Development Fund—This is used to record all revenues and
expenditures related to various development activities within the City.
 Capital Projects Fund—This fund is used to account for financial resources to be
used for the acquisition or construction of major capital facilities.
Additionally, the City reports the following fund type:
Fiduciary Funds
 Private Purpose Trust—The Private Purpose Trust Fund is used to account for
resources held in trust for use by individuals and not-for-profit organizations. All
resources of the fund, including any interest earned, may be used to support the
organization’s activities. There is no requirement that any portion of these
resources be preserved as capital. The City’s funds consist primarily of funds
provided by citizens to be used for sidewalk replacement.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in the government-wide financial statements to the extent that those
standards do not conflict with or contradict guidance of the Governmental Accounting Standards
Board.
As a general rule the effect of interfund activity has been eliminated from the government-wide
financial statements; however, interfund services provided and used are not eliminated in the
process of consolidation.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise general revenues include all taxes.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use
restricted resources first, then unrestricted resources as they are needed.
D. Budgets
The City follows these procedures in establishing most of the budgetary data reflected in the
financial statements:
 On the first day of February in each year, department heads submit their tentative
departmental budgets to the Common Council for the fiscal year commencing the
following April 1. The Common Council has the power to reduce any estimate
submitted to them.
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 After public hearings are conducted to obtain taxpayer comments, the Common
Council adopts the budget no later than March 15 of each year. Notices of the
original estimates along with revisions are published in the official newspaper.
 Formal annual budgetary accounts are adopted and employed for control of the
General, Water and Library Funds detailed to the department level. These budgets
are adopted on a basis consistent with generally accepted accounting principles
accepted in the United States of America. Encumbrances outstanding at year-end
are accounted for on the lapsing method, which reappropriates encumbrances in
the subsequent years’ budget. Accordingly, the City reserves fund balance for all
encumbrances it intends to honor in the subsequent period.
 Capital Projects and Community Development Fund appropriations are not
included in the City’s annual budget. Instead appropriations are approved through
Common Council resolution at the projects’ inception and lapse upon termination
of the project.
Expenditures may not legally exceed budgeted appropriations at the object level. Management
may not amend the budget to alter the total appropriations of any department. All revisions that
change the total appropriations of any department or fund must be approved by the Common
Council. There were supplemental appropriations in the General Fund for the fiscal year ended
March 31, 2011, in the amount of $753,225.
In the General Fund the health, home and community services and debt service expenditures
exceeded budgetary appropriations. In addition, operating transfers out exceeded budgetary
appropriations. In the Water Fund debt service expenditures exceeded budgetary appropriations.
This primarily occurs as the uses of reserved fund balances are not included in the budget process.
E. Assets, Liabilities and Net Assets or Equity
Cash, cash equivalents and investments—Cash and cash equivalents include cash on hand,
demand deposits, time deposits and short-term, highly liquid investments which are readily
convertible to known amounts of cash and have a maturity date within 90 days of the City’s fiscal
year end. Permissible investments include obligations of the U.S. Treasury and U.S. agencies and
repurchase agreements. There were no investments at March 31, 2011; however, it is the City’s
policy to state investments at fair value, when applicable.
Receivables—Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year is referred to as “due to/from other funds”. As previously
mentioned, the effect of interfund activity is generally eliminated from the government-wide
financial statements.
Capital assets—Capital assets, which include property, buildings, equipment and infrastructure
assets (e.g. roads, bridges, drainage systems and similar items) are reported in the applicable
governmental activities in the government-wide financial statements. Capital assets are defined by
the City as assets with an initial individual cost of more than $1,000 and an estimated useful life in
excess of two years. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at estimated fair market value at the
date of donation. The costs of normal maintenance and repairs that do not add to the value of the
asset or materially extend assets lives are not capitalized. Major outlays for capital assets and
improvements are capitalized as projects are incurred.
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Property, plant, and equipment of the City is depreciated using the straight line method over the
following estimated useful lives:
Assets
Buildings
Land improvements
Infrastructure:
Dams and drainage systems
Water and sewer systems
Traffic control systems
Bridges and culverts
Roads
Years
40
20
5 - 20
100
50
40
50
20
Unearned/deferred revenue—Certain revenues have not met the revenue recognition criteria for
government-wide or fund purposes and, therefore, have been deferred.
Long-term debt—The City’s unmatured long-term liabilities are recorded in the government-wide
financial statements when the liability is to be financed from a governmental fund. These liabilities
include serial bonds, a capital note payable, capital leases, other post-employment benefits and
retirement liabilities.
In the fund financial statements, governmental funds recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported
as other financing sources. Premiums received on debt issuances are reported as other financing
sources while discounts on debt issuances are reported as other financing uses. Issuance costs,
whether or not withheld from the actual debt proceeds received, are reported as debt service
expenditures. Further, the unmatured principal of general long-term debt does not require current
appropriation and expenditure of governmental fund financial resources.
Encumbrances—Encumbrance accounting, under which contracts, and other commitments for the
expenditure of monies are recorded for budgetary control purposes to reserve that portion of the
applicable appropriations, is employed in all City funds except the Fiduciary Fund. Outstanding
encumbrances at year end, exclusive of grant-related commitments, are reported as reservations of
fund balances since they do not constitute expenditures or liabilities. There were no outstanding
encumbrances at March 31, 2011.
Fund balances—In the fund financial statements, governmental funds report reservations of fund
balance for amounts that are not available for appropriation or are legally restricted by outside
parties for use for a specific purpose. Designations of fund balance represent tentative
management plans that are subject to change.
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F. Use of Estimates
The preparation of the financial statements, in conformity with GAAP, requires management to
make estimates and assumptions that affect the reported amounts of revenues, expenditures, assets,
and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and during the reported period. Actual results could differ from those estimates.
G. Future Impacts of Accounting Pronouncements
During the year ended March 31, 2011, the City implemented GASB Statement No. 51, Accounting
and Financial Reporting for Intangible Assets, GASB Statement No. 53, Accounting and Financial
Reporting for Derivative Instruments, and GASB Statement No. 58, Accounting and Financial
Reporting for Chapter 9 Bankruptcies. GASB Statements No. 51, 53 and 58 did not have an
impact on the City’s financial position or results of operations.
The City has not completed the process of evaluating the impact that will result from adopting
GASB Statement No. 54, Reporting and Governmental Fund Type Definitions, and GASB
Statement No. 59, Financial Instruments Omnibus, effective for the year ending March 31, 2012;
GASB Statement No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer
Plans, GASB Statement No. 60, Accounting and Financial Reporting for Service Concession
Arrangements, GASB Statement No. 62, Codification of Accounting and Financial Reporting
Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, GASB
Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of
Resources, and Net Position and GASB Statement No. 64, Derivative Instruments: Application of
Hedge Accounting Termination Provisions—an amendment of GASB Statement No. 53 effective for
the year ending March 31, 2013; and GASB Statement No. 61, The Financial Reporting Entity:
Omnibus-an amendment of GASB Statements No. 14 and No. 34, amends Statement No. 14, The
Financial Reporting Entity, and Statement No. 34, Basic Financial Statements—and
Management’s Discussion and Analysis—for State and Local Governments, for the year ending
March 31, 2014. The City is, therefore, unable to disclose the impact that adopting GASB
Statements No. 54, 57, 59, 60, 61, 62, 63 and 64 will have on its financial position and results of
operations.
2. CASH AND CASH EQUIVALENTS
The City’s investment policies are governed by state statutes. The City may use FDIC-insured
commercial banks or trust companies located within the State. The City Chamberlain is authorized to
use demand accounts and certificates of deposit. Investments with maturities of less than three months
are considered to be cash equivalents.
Collateral is required for demand deposits and certificates of deposit in an amount equal to or greater
than the amount of all deposits not covered by federal deposit insurance. Obligations that may be
pledged as collateral are obligations of the United States and its agencies and obligations of the State
and its municipalities and school districts.
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Total cash and cash equivalents reported by the City at March 31, 2011 is as follows:
Governmental funds
Fiduciary fund
$ 2,902,479
63,318
$ 2,965,797
Total
Cash and cash equivalents includes all deposits carried at fair value, and consisted of following at
March 31, 2011:
Deposits
$ 2,964,937
860
Petty cash (uninsured, uncollateralized)
$ 2,965,797
Total
Deposits—All deposits are carried at fair value and are classified by custodial risk at March 31, 2011
as follows:
March 31, 2011
Credit risk category
Insured (FDIC)
Uninsured:
Collateral held by the pledging bank's agent
in the City's name
Carrying
Amount
$
253,908
Bank
Balance
$
424,299
2,711,029
2,901,546
$
Total deposits
2,964,937
$
3,325,845
Custodial Credit Risk – Deposits—In the case of deposits, this is the risk that in the event of a bank
failure, the City’s deposits may not be returned to it. As noted above, by State statute all deposits in
excess of FDIC insurance coverage must be collateralized. At March 31, 2011, all uninsured bank
deposits were fully collateralized with securities held by the pledging financial institution’s trust
department or agent in the City’s name.
Interest rate risk—In accordance with its investment policy, the government manages exposures by
limiting investments to low risk type investments governed by New York State statutes.
3. PROPERTY TAXES
Steuben County prepares the levy, tax rolls and billings for the City of Hornell real property taxes. On
April 1 of each year, or upon receipt of the tax warrant, property taxes become a lien on the property.
Tax payments are due within 30 days of delivery of the tax warrant without penalty; a 1% penalty is
added for taxes paid the next fifteen days; 2% for the next 15 days; 6% for the next 15 days; 8% for the
next 15 days and 10% thereafter. The City enforces all liens.
The Steuben County Legislature prepares its levy in late December of each year and the taxes become
due January 1. The tax roll is returned to the Steuben County Commissioner of Finance on April 1, at
which time all unpaid taxes and penalties are payable to that office. The City has no further liability
for collection of County taxes.
- 36 -
The City also collects property taxes for Steuben County and various school districts within the City’s
limits. School taxes are levied on October 1 each year. The County of Steuben assumes full
enforcement responsibility for taxes levied by the Hornell City School District on properties within the
City.
4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Interfund receivables and payables are short term in nature and exist because of temporary advances or
payments made on behalf of other funds. Interfund transfers are used primarily to support capital
project expenditures and to provide operating support to the Library Fund. Interfund activity of the
City for the year ended March 31, 2011 consisted of the following:
Fund
Receivables
Governmental Funds:
General Fund
Community Development Fund
Capital Projects Fund
Other Governmental Funds
Total Governmental Funds
$
$
73,467
73,467
Payables
$
$
73,467
73,467
Transfers In
Transfers Out
$
$
$
185,000
68,750
117,500
371,250
$
371,250
371,250
5. RECEIVABLES
Major revenues accrued by the City at March 31, 2011 consisted of the following:
A. Accounts receivable—Accounts receivable, net of allowance for doubtful accounts, of the City at
March 31, 2011 consisted of the following:
General Fund:
Ambulance billings
$ 1,046,001
Allowance for doubtful accounts
Garbage billings
Sewer billings
Canisteo homes
HAT - DDS & billed customers
Other
Water Fund:
Water billings
(875,989)
22,424
1,851
92,491
31,378
46,236 $ 364,392
87,182
$ 451,574
Total governmental funds
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B. Loans receivable—Represents outstanding loans made by the City’s Department of Community
Development under the Community Development Block Grant. These loans are made to local
businesses for economic development and to local homeowners living in areas of blight for the
rehabilitation of their homes. Principal balances outstanding at March 31, 2011 amounted to
$765,089.
C. Due from other governments—Represents amounts due mainly from New York State and
Stueben County. Amounts due from other governments at March 31, 2011 are presented below.
General Fund:
New York State - sales tax
Steuben County - property and sales tax
New York State - CHIPS
Hornell Area Transit remibursement
Miscellaneous
Capital Projects Fund:
Environmental Facilities Corporation - project financing
Total governmental funds
$
230,197
486,127
198,790
145,858
13,797
$ 1,074,769
36,003
$ 1,110,772
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6. CAPITAL ASSETS
Capital asset activity for the year ended March 31, 2011 is as follows:
Balance
4/1/2010
Increases
Governmental Activities:
Capital assets, not being depreciated:
Land
Construction in progress
$
669,498
-
$
1,634,387
Balance
3/31/2011
Decreases
$
-
$
669,498
1,634,387
669,498
1,634,387
2,328,900
7,261,875
12,587,968
71,509,594
834,955
-
(330,518)
-
2,328,900
7,261,875
13,092,405
71,509,594
93,688,337
834,955
(330,518)
94,192,774
Total capital assets not being depreciated
-
2,303,885
Capital assets, being depreciated:
Land improvements
Buildings
Infrastructure
Total capital assets being depreciated
Less accumulated depreciation for:
Land improvements
Buildings
Infrastructure
(1,684,287)
(3,500,956)
(9,779,477)
(42,280,517)
(85,025)
(152,938)
(654,704)
(1,592,234)
309,833
-
(1,769,312)
(3,653,894)
(10,124,348)
(43,872,751)
Total accumulated depreciation
(57,245,237)
(2,484,901)
309,833
(59,420,305)
36,443,100
(1,649,946)
(20,685)
34,772,469
$ (20,685)
$ 37,076,354
Total capital assets, being
depreciated, net
Governmental activities, capital
assets, net
$ 37,112,598
$
(15,559)
Depreciation expense was charged to the functions of the governmental activities as follows:
Allocated
Depreciation
Function/Program
Public safety
Health
Transportation
$
281,099
701,757
141,790
575,702
122,340
662,213
Total depreciation expense
$
2,484,901
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7. SHORT-TERM DEBT
The City utilizes bond anticipation notes (“BAN’s”) and revenue anticipation notes (“RAN’s”) to
provide temporary capital financing and operating cash. The liability for these types of debt is recorded
in the Capital Projects Fund, since that fund received the note proceeds.
BAN’s have a maximum maturity of one year; however, they may be renewed for periods up to five
years from the original issue date or, in the case of BAN’s issued to finance assessable improvements,
for periods equal to the maximum life of the improvement. Principal reductions must be made within
two years of the original issuance.
RAN’s also have a maximum maturity of one year and are supported by a guaranteed source of
revenue, which must be used to pay off the outstanding RAN’s debt. There were no RAN’s
outstanding at March 31, 2011.
The following is a summary of the City’s short-term debt activity for the year ended March 31, 2011:
Purpose
Capital Fund:
Bond anticipation notes:
Catherine St. bridge
Airport and bridge improvements
Airport improvements
Grand St. bridge
Original
Issuance/
Maturity
Interest Balance
Rate
4/1/2010
2009/2010
2010/2011
2011/2012
2011/2012
2.75%
1.50%
1.50%
1.50%
Total bond anticipation notes
Increases
$ 18,750
-
$
1,780,000
440,000
160,000
$ 18,750
$ 2,380,000
Decreases
$
18,750
1,780,000
-
$ 1,798,750
Balance
3/31/2011
$
440,000
160,000
$ 600,000
8. LONG-TERM DEBT
The following is a summary of changes in the City’s long-term debt for the year ended March 31,
2011:
Balance
Balance
Due Within
4/1/2010
Increases
Decreases
3/31/2011
One Year
$4,673,163
Serial bonds
2,074,000
EFC note payable
Due to NYS
173,432
Retirement Systems
391,974
93,125
Capital leases
$7,405,694
Total
$
$
564,353
143,605
707,958
- 40 -
$ 306,257
130,000
$ 4,366,906
1,944,000
31,387
437,171
48,011
$ 952,826
142,045
519,156
188,719
$ 7,160,826
$
$
336,517
130,000
32,956
43,499
542,972
A. Serial bonds—The following is a summary of bond transactions of the City for the fiscal year
ended March 31, 2011:
Purpose
Water improvements
Water improvements
Water improvements
Public improvements
Public improvements
Public improvements
Total
Year
of Issuance/
Maturity
Interest
Rate
Balance
4/1/2010
1998/2018
1999/2020
2001/2021
2004/2022
2007/2024
2009/2020
3.75 - 5.20%
0.00%
0.00%
4.20%
4.00 - 4.50%
2.00 - 3.50%
$ 535,000
99,000
149,163
965,000
1,945,000
980,000
$4,673,163
Increases
Decreases
$
$
$
-
50,000
9,000
12,257
55,000
105,000
75,000
$ 306,257
Balance
3/31/2011
$
485,000
90,000
136,906
910,000
1,840,000
905,000
$ 4,366,906
The following is a maturity schedule for bonded debt:
Fiscal Year Ending March 31,
2012
2013
2014
2015
2016
2017-2021
2022-2024
Total
Principal
$
$
336,517
336,778
357,039
367,299
382,560
1,886,713
700,000
4,366,906
Interest
$
$
160,809
149,366
137,053
123,594
109,474
315,971
41,231
1,037,498
Total
$
$
497,326
486,144
494,092
490,893
492,034
2,202,684
741,231
5,404,404
B. New York State Environmental Facilities Corporation note payable—Originally issued on
March 4, 2004, the City issued the EFC Drinking Water Facility Note – 2004 A to the New York
State Environmental Facilities Corporation. This note has a principal balance of $1,944,000
outstanding and bears zero interest. The final maturity of this debt is in the City’s fiscal year
ending March 31, 2026.
C. Due to New York State Retirement Systems—The City’s retirement liability does not represent
an outflow of expendable financial resources and, accordingly, has been recorded as a long-term
obligation. The City’s total unpaid liability to the New York State Retirement Systems at March
31, 2011 is $142,045 which is recorded in the government-wide statement of net assets. The final
maturity of this debt is in the City’s fiscal year ending March 31, 2015.
D. OPEB Obligation—As explained in Note 9, the City provides health insurance coverage for
retirees. The City’s annual post-employment benefit (“OPEB”) cost is calculated based on the
annual required contributions of the employer, an amount actuarially determined in accordance
with the parameters of GASB Statement No. 45, Accounting and Financial Reporting by
Employers for Postemployment Benefits Other Than Pensions. The estimated long-term OPEB
liability is estimated to be $8,703,217 as of January 1, 2008; the most recent actuarial valuation
date.
- 41 -
E. Capital leases—The City has entered into lease agreements as lessee for financing the acquisition
of certain machinery and equipment. The lease agreements qualify as capital leases for accounting
purposes and, therefore, have been recorded at the present value of the future minimum lease
payments as of the inception date.
The assets acquired through the capital leases are as follows:
Governmental
Activities
Asset:
Ambulance
Less: accumulated depreciation
Streetsweeper
Less: accumulated depreciation
Total
$
123,125
(23,086)
143,605
(7,180)
$
236,464
The future minimum lease obligations and the net present value of these minimum lease payments
as of March 31, 2011 are as follows:
Governmental
Activities
Fiscal Year Ending March 31,
2012
2013
2014
2015
$
Total minimum lease payments
Less: amount representing interest
Present value of minimum lease payments
53,767
53,767
53,767
53,768
215,069
(26,350)
$
188,719
9. OTHER POST-EMPLOYMENT BENEFITS
Plan Description—The City pays for a portion of eligible retirees’ health insurance, depending on the
type of health plan provided. Eligibility for post-employment benefits depends upon union group as
follows: (1) The City Building Employee’s Association–employee must be eligible under the rules and
regulation of NYSERS, (2) Hornell Police Association–employee must have 20 years of service and be
eligible under the rules and regulations of NYSPFRS, (3) Hornell Firefighters Association Local 835–
employee must have 20 years of service and be eligible under the rules and regulations of NYSPFRS,
(4) The Department of Public Works Association–employee must be eligible under the rules and
regulation of NYSERS, and (5) Water and Waste Water Treatment Plant Operators–employee must be
eligible under the rules and regulation of NYSERS. The plan does not issue a stand-alone financial
report.
Funding Policy—Authorization for the City to pay a portion of retiree health insurance premiums was
enacted through a union contract, which was ratified by the City’s Common Council. Upon retirement,
the City pays 50% of the cost of the medical and dental plan in effect at the time of retirement for the
employee and 35% of the dependent coverage. The City pays 35% for individual or family coverage
for surviving spouses and their dependents.
- 42 -
The City’s annual other post-employment benefit (“OPEB”) cost is calculated based on the annual
required contribution (“ARC”) of the employer, an amount actuarially determined in accordance with
the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial
liabilities over a period not to exceed 30 years.
The following table shows the components of the City’s annual OPEB cost for the past two years, the
amount actually contributed to the plan, and changes in the net OPEB obligation.
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB costs (expense)
Contributions made
Increase in net OPEB obligation
Net OPEB obligation - beginning of year
Net OPEB obligation - end of year
$
$
2011
564,353
564,353
(437,171)
127,182
391,974
519,156
$
$
2010
564,353
564,353
(404,582)
159,771
232,203
391,974
As of January 1, 2008, the most recent actuarial valuation date, the plan was not funded. Since there
were no assets, the unfunded actuarial accrued liability for benefits for governmental activities was
$8,703,217.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the health care cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates
are made about the future. The schedule of funding progress is presented as required supplemental
information.
Funding Status and Funding Progress— As of March 31, 2011, the City has had only one actuarial
valuation performed. Accordingly, information from the study is presented in the City’s Schedule of
Funding Progress and the Schedule of the City’s Contributions.
The City’s Schedule of Funding Progress is presented below:
Actuarial
Valuation
Date
Actuarial
Value of
Assets
As of 1/1/2008 $
-
Actuarial
Accrued
Liability
("AAL")
Unfunded
AAL
("UAAL")
$ 8,703,217
$ 8,703,217
- 43 -
Funded
Ratio
0.0% $
Covered
Payroll
3,603,378
Ratio of
UAAL to
Budget
Covered
Payroll
241.5%
The Schedule of the City’s contributions is shown below:
Year
Ended
March 31,
2011
2010
2009
Annual
Required
Contribution
$
564,353
564,353
564,353
Contributions
Made
$
437,171
404,582
332,150
Percentage
Contributed
77.5%
71.7%
58.9%
Actuarial Methods and Assumptions—Calculations are based on the types of benefits provided under
the terms of the substantive plan (the plan as understood by the employer and the plan members) at the
time of the valuation and on the pattern of cost sharing between the employee and plan members.
Calculations reflect a long-term perspective, so methods and assumptions used include techniques that
are designed to reduce short-term volatility.
In the January 1, 2008 actuarial valuation, the Entry Age Normal Method, over a level percent of pay,
was used. Under this method, each Participant’s projected benefit is allocated on a level basis over the
earnings or service of the participant between entry age and assumed exit ages. The amortization
method used was level percent of pay, open group. The actuarial assumptions included a valuation date
and measurement date of January 1, 2008. The expected interest rate, salary scale, and inflation rate
was 5.0%, 4.0%, and 3.0%, respectively. The RP-2000 projected to 2010, weighted 40% White Collar,
60% Blue Collar tables were used for mortality rates. Actuarial assumptions include an annual
healthcare cost trend rate of 10.0% initially reduced by decrements to an ultimate rate of 5.0% after ten
years. The unfunded actuarial accrued liability is being amortized over 30 years, therefore the
remaining amortization period at March 31, 2011, was 27 years.
10. RETIREMENT PLANS
Plan description—The City participates in the New York and Local Employees’ Retirement System
(“ERS”), the New York State and Local Police and Fire Retirement System (“PFRS”) and the Public
Employees’ Group Life Insurance Plan (“Systems”). These are cost-sharing multiple-employer
retirement systems. The Systems provide retirement benefits as well as death and disability benefits.
Obligations of employers and employees to contribute and benefits to employees are governed by the
New York State Retirement and Social Security Law (“NYSRSSL”). As set forth in the NYSRSSL, the
Comptroller of the State of New York (“Comptroller”) serves as sole trustee and administrative head of
the Systems. The Comptroller shall adopt and may amend rules and regulations for the administration
and transaction of the business of the Systems and for custody and control of their funds. The Systems
issue a publicly available financial report that includes financial statements and required supplementary
information. That report may be obtained by writing to the New York State and Local Retirement
Systems, 110 State Street, Albany, NY 12244.
Funding Policy—The Systems are noncontributory except for employees who joined the New York
State and Local Employees’ Retirement System after July 27, 1976 who contribute 3% of their salary.
The State Legislature passed legislation in 2000 that suspends the 3% contribution for employees who
have ten years of service or more of credited service. Additionally members who meet certain
eligibility requirements will receive one month additional service credit for each completed year of
service up to a maximum of two additional years of service credit. Employees who joined the System
after January 1, 2010 are required to contribute 3% for the duration of membership. Under the
authority of the NYSRSSL, the Comptroller shall certify annually the rates expressed as proportions of
payroll of members, which shall be used in computing the contributions required to be made by
employees to the pension accumulation fund.
- 44 -
The City of Hornell is required to contribute at an actuarially determined rate. The required
contributions for the current year and two preceding years were:
Contributions
Year
2011
2010
2009
$
ERS
275,977
184,484
207,366
$
PFRS
444,927
434,466
425,615
The City’s contributions made to the Systems were equal to 100 percent of the contributions required
for each year.
11. NET ASSETS, RESERVES AND DESIGNATIONS
The government-wide financial statements utilize a net assets presentation. The City’s net assets are
categorized as invested in capital assets (net of related debt), and unrestricted.
 Invested in capital assets, net of related debt—This category groups all capital assets,
including infrastructure, into one component of net assets. Accumulated depreciation
and the outstanding balances of debt that are attributable to the acquisition,
construction or improvement of these assets reduce the balance in this category.
 Unrestricted net assets—This category represents net assets of the City not restricted
for any project or other purpose.
The following schedule presents a reconciliation of capital assets (net of accumulated depreciation), net
of total indebtedness to net assets invested in capital assets, net of related debt.
Capital assets, net of accumulated depreciation
Less debt, issued for capital acquisition:
Serial bonds
EFC note payable
Bond anticipation notes
Capital leases
Net assets invested in capital assets, net of related debt
- 45 -
$ 37,076,354
$ (4,366,906)
(1,944,000)
(600,000)
(188,719)
(7,099,625)
$ 29,976,729
In the fund financial statements, reservations represent portions of fund balance that have been legally
segregated for specific uses or are not appropriable for expenditure by the City at March 31, 2011, and
include:
 Reserved for Special Purposes—Represents funds restricted in use for the future
capital purposes as follows:
Balance
3/31/2011
Reserve purpose:
Public safety
$ 104,846
Parklands/Playgrounds
26,318
Debt
5,659
Justice grant
14,676
216,603
Water pollution control
$ 368,102
Total
Designations are not legally required segregations but are segregated for a specific purpose by the
City at March 31, 2011 and include:
 Designated for Subsequent Year’s Expenditures—Represents available fund balances
being appropriated to meet fiscal year 2012 expenditure requirements.
12. DEFICIT FUND BALANCES
Certain capital projects have deficit unreserved fund balances at March 31, 2011. These deficits will be
remedied by future anticipated grants and proceeds from future bond issuances.
13. LABOR RELATIONS
The majority of City employees are represented by five bargaining units. Some department heads and
most part-time employees are governed by City Council policies. The Policeman’s Association and
has a contract through March 31, 2013; the remaining four units, the Department of Public Works
Association, the Water and Wastewater Employees’ Association, the City Building Employees’
Association and the Hornell Firefighters Association, have contracts through March 31, 2012.
14. RISK FINANCING AND CONTINGENCIES
A. General liability—The City is exposed to various risks of losses related to torts; theft of, damage
to, and destruction of assets; injuries to employees; and natural disasters. The City purchases
commercial insurance to cover such potential risks. There have not been any significant changes in
any type of insurance coverage from the prior year, nor have there been any settlements which have
exceeded insurance coverage in the past four fiscal years.
B. Grants—In the normal course of operations, the City receives grant funds from various Federal
and State agencies. These grant programs are subject to audit by agents of the granting authority,
the purpose of which is to ensure compliance with conditions precedent to the granting of funds.
Any disallowed expenditures resulting from such audits could become a liability of the
governmental funds. While the amount of any expenditure which may be disallowed cannot be
determined at this time, management expects any amounts to be immaterial.
- 46 -
C. Other—The City is involved in litigation arising in the ordinary course of its operations. The City
believes that its ultimate liability, if any, in connection with these matters will not have a material
effect on the City’s financial condition or results of operations.
15. SUBSEQUENT EVENTS
Subsequent to March 31, 2011, the City entered into a capital lease, in the amount of $113,425, for
the purchase of an ambulance with an interest rate of 4.56 percent.
Management has evaluated subsequent events through July 14, 2011, which is the date the financial
statements are available for issuance, and have determined, except as disclosed above, there are no
subsequent events that require disclosure under generally accepted accounting principles.
* * * * * *
- 47 -
INDIVIDUAL AND COMBINING FUND
STATEMENTS AND SCHEDULES
General Fund—Schedule of Revenues and Other
Financing Sources—Budget and Actual
Account Name
REVENUES
Real property taxes:
Real property taxes
Total real property taxes
Account
Code
A1001
Budgeted Amounts
Transfers
Original
$
2,635,499
2,635,499
$
-
$
Actual
Amounts
Final
2,635,499
2,635,499
$
2,644,945
2,644,945
Variance with
Final Budget
$
9,446
9,446
Other tax items:
Federal payment in lieu of taxes
Other payments in lieu of taxes
Interest and penalties on taxes
Total other tax items
A1080
A1081
A1090
19,500
395,000
60,000
474,500
-
19,500
395,000
60,000
474,500
18,667
425,046
54,289
498,002
(833)
30,046
(5,711)
23,502
Non-property tax items:
Sales and use tax
Utilities gross receipts tax
Total non property tax items
A1110
A1130
3,175,000
160,000
3,335,000
-
3,175,000
160,000
3,335,000
3,209,351
94,219
3,303,570
34,351
(65,781)
(31,430)
A1230
A1255
A1520
A1550
A1603
10,250
12,000
5,800
300
15,000
-
10,250
12,000
5,800
300
15,000
5,855
2,389
453
15,731
(4,395)
(9,611)
(5,347)
(300)
731
(continued)
Departmental income:
Treasurers fees
City clerk fees
Police department fees
Dog control fees
Vital statistic fees
- 48 -
Account Name
Departmental income: (concluded)
Ambulance Fees
Public works services
Bus operations
Airport fees and rentals
Recreation concessions
Parks charges (reserve 2)
Sewer charges
Refuse and garbage charges
Transportation services (County bridge)
Total departmental income
Use of money and property:
Interest and earnings
Interest and earnings (on reserves)
Rental of real property
Commissions
Total use of money and property
Account
Code
A1630
A1710
A1750
A1770
A2012
A2025
A2122
A2130
A2300
A2401
A2401.1
A2410
A2450
Budgeted Amounts
Transfers
Original
Final
Actual
Amounts
Variance with
Final Budget
930,000
5,000
285,000
40,000
600
200,000
281,000
1,784,950
-
930,000
5,000
285,000
40,000
600
200,000
281,000
1,784,950
1,111,404
5,167
261,512
34,800
1,077
1,873
269,898
309,368
60,000
2,079,527
181,404
167
(23,488)
(5,200)
477
1,873
69,898
28,368
60,000
294,577
10,000
12,000
500
22,500
-
10,000
12,000
500
22,500
535
353
12,350
13,238
(9,465)
353
350
(500)
(9,262)
(continued)
- 49 -
Account Name
Licenses and permits:
Business and occupational
Games of chance
Bingo licenses
Dog licenses
Dog fund apportionment
Building and alteration
Street opening
Plumbing
Process metals
Total licenses and permits
Fines and forfeitures:
Fines and forfeited bail
Total fines and forfeitures
Sale of property and compensation for loss:
Minor sales, other
Insurance recoveries
Other compensation for loss
Total sale of property
and compensation for loss
Account
Code
Budgeted Amounts
Transfers
Original
Final
Actual
Amounts
Variance with
Final Budget
A2501
A2530
A2540
A2542
A2544
A2555
A2560
A2565
A2590
6,600
200
2,200
4,000
900
30,000
3,500
1,500
100
49,000
-
6,600
200
2,200
4,000
900
30,000
3,500
1,500
100
49,000
2,650
80
2,692
5,175
334
19,866
2,235
2,600
35,632
(3,950)
(120)
492
1,175
(566)
(10,134)
(1,265)
1,100
(100)
(13,368)
A2610
50,000
50,000
-
50,000
50,000
60,181
60,181
10,181
10,181
A2655
A2680
A2690
12,000
3,000
15,000
-
12,000
3,000
15,000
4,985
6,199
10,080
(7,015)
3,199
(4,920)
30,000
-
30,000
21,264
(8,736)
(continued)
- 50 -
Account Name
(concluded)
Miscellaneous:
Refunds of prior year expenses
Unclassified
Refund prior year
Total miscellaneous
Account
Code
Budgeted Amounts
Transfers
Original
Final
Actual
Amounts
Variance with
Final Budget
A2701
A2770
A2790
6,000
6,000
-
6,000
6,000
25,500
2,870
37,867
66,237
25,500
(3,130)
37,867
60,237
State aid:
Per capita - unrestricted
Mortgage tax
Court facility aid
Real property tax administration—STAR
Interest aid
Consolidated highway aid
Bus and other mass transportation
Youth service and recreation
Total state aid
A3001
A3005
A3021
A3040
A3089
A3501
A3903
A3820
1,545,354
90,000
32,000
4,000
200,000
454,500
8,000
2,333,854
-
1,545,354
90,000
32,000
4,000
200,000
454,500
8,000
2,333,854
1,528,355
47,497
5,403
14,426
198,790
487,593
4,574
2,286,638
(16,999)
(42,503)
(26,597)
(4,000)
14,426
(1,210)
33,093
(3,426)
(47,216)
Federal aid:
Bus and other mass transportation
Total federal aid
A4594
753,225
753,225
753,225
753,225
330,947
330,947
(422,278)
(422,278)
753,225
11,474,528
11,340,181
(134,347)
Total revenues
10,721,303
- 51 -
Account Name
OTHER FINANCING SOURCES
Transfers in (to reserve accounts)
Transfers in
Total other financing sources
Total revenues and other financing sources
Account
Code
Budgeted Amounts
Transfers
Original
A5785
A5031
A5031
18,500
18,500
$
10,739,803
$
- 52 -
753,225
Actual
Amounts
Final
18,500
18,500
$
11,493,028
Variance with
Final Budget
143,605
125,000
60,000
328,605
$
11,668,786
143,605
125,000
41,500
310,105
$
175,758
General Fund—Schedule of Expenditures and Other
Financing Uses—Budget and Actual
Account
Code
Account Name
EXPENDITURES
General government support:
Common council:
Personal services
A1010.100
Contractual expenses
A1010.400
Total common council
Original
$
25,000
70,500
Budgeted Amounts
Transfers
$
(8,773)
Actual
Amounts
Final
$
25,000
61,727
$
24,875
57,905
Variance with
Final Budget
$
125.00
3,822
95,500
(8,773)
86,727
82,780
3,947
411
411
Mayor:
Personal services
Total mayor
A1210.100
A1210.400
130,716
9,000
139,716
3,546
3,546
134,262
9,000
143,262
134,262
8,589
142,851
Auditor:
Total Auditor
A1320.400
18,000
18,000
-
18,000
18,000
18,000
18,000
-
City chamberlain:
Personal services
Equipment and capital outlay
Total city chamberlain
A1325.100
A1325.200
A1325.400
186,500
3,000
5,950
195,450
-
186,500
3,000
5,950
195,450
185,170
895
3,314
189,379
1,330
2,105
2,636
6,071
Assessment:
Personal Services
Equipment
Total assessment
A1355.100
A1355.200
A1355.400
63,900
1,600
4,450
69,950
4,228
(1,592)
2,636
68,128
8
4,450
72,586
68,128
2,027
70,155
-
- 53 -
8
2,423
2,431
(continued)
Account Name
City clerk:
Personal services
Total city clerk
Account
Code
Original
Budgeted Amounts
Transfers
A1410.100
A1410.200
A1410.400
105,150
2,400
3,075
110,625
Bingo inspector:
Total bingo inspector
A1411.400
300
300
-
City attorney:
Personal services
Contractual expenses:
Total city attorney
A1420.100
A1420.400
30,000
550
30,550
-
Elections:
Personal services
Total elections
A1450.100
A1450.400
10,000
1,900
11,900
Public works administration:
Personal services
Total public works administration
A1490.100
A1490.200
A1490.400
95,172
1,500
3,600
100,272
- 54 -
4,239
4,239
Actual
Amounts
Final
Variance with
Final Budget
109,389
2,400
3,075
114,864
109,389
1,196
2,597
113,182
1,204
478
1,682
300
300
16
16
284
284
30,033
550
30,583
30,033
30,033
550
550
(9,150)
(9,150)
850
1,900
2,750
480
480
370
1,900
2,270
(29,104)
(29,104)
66,068
1,500
3,600
71,168
66,068
306
3,279
69,653
1,194
321
1,515
(continued)
33
33
Account Name
Buildings:
Personal services
Total buildings
Central telephone system:
Account
Code
Original
Budgeted Amounts
Transfers
Final
Actual
Amounts
Variance with
Final Budget
A1620.100
A1620.400
65,714
107,000
172,714
3,665
11,478
15,143
69,379
118,478
187,857
69,379
118,470
187,849
-
A1640.400
11,000
1,497
12,497
12,497
-
11,000
1,497
12,497
12,497
-
A1680.400
26,000
26,000
-
26,000
26,000
19,759
19,759
6,241
6,241
A1910.400
A1920.400
A1921.400
A1951.900
A1951.900
A1989.400
120,000
5,000
4,000
35,000
10,000
3,500
177,500
(35,000)
(9,878)
(3,225)
(48,103)
120,000
5,000
4,000
122
275
129,397
119,958
4,476
124,434
42
524
4,000
122
275
4,963
1,159,477
(68,036)
1,091,441
1,061,068
30,373
(continued)
Total central telephone system
8
8
General data processing:
Total general data processing
Special items:
Undistributed general insurance
Municipal association dues
Recodification
Council contingency
Other contingency
Contracts with other governments
Total special items
Total general government support
- 55 -
Account Name
Public safety:
Police:
Personal services
Equipment
Total police
Account
Code
Original
A3120.100
A3120.200
A3120.400
1,340,191
26,500
104,500
1,471,191
Traffic control:
Total Traffic Control
A3310.400
3,000
3,000
Fire department:
Personal services
Total fire department
A3410.100
A3410.200
A3410.400
1,098,938
11,000
57,700
1,167,638
Control of animals:
Total control of animals
A3510.460
37,500
37,500
Plumbing board:
Personal services
Total plumbing board
A3610.100
A3610.400
500
500
1,000
- 56 -
Budgeted Amounts
Transfers
38,170
38,170
Final
Actual
Amounts
1,378,361
26,500
104,500
1,509,361
1,378,361
26,456
102,201
1,507,018
3,000
3,000
3,000
3,000
1,108,654
11,000
57,700
1,177,354
1,108,654
11,000
54,441
1,174,095
-
37,500
37,500
37,500
37,500
-
500
500
1,000
200
200
-
9,716
9,716
Variance with
Final Budget
44
2,299
2,343
-
3,259
3,259
500
300
800
(continued)
Account Name
Code enforcement officer:
Personal services
Equipment outlay
Total code enforcement officer
Sealer of weights and measures:
Total Sealer of Weights and Measures
Account
Code
A3620.100
A3620.200
A3620.400
51,500
1,000
6,100
58,600
A3630.460
800
800
2,739,729
Total public safety
Health:
Public health department:
Personal services
Total public health department
Original
A4010.100
A4010.400
2,000
3,000
5,000
- 57 -
Budgeted Amounts
Transfers
(15,722)
(15,722)
32,164
-
Actual
Amounts
Final
35,778
1,000
6,100
42,878
800
800
Variance with
Final Budget
35,598
992
6,054
42,644
180
8
46
234
-
800
800
2,771,893
2,764,457
7,436
2,000
3,000
5,000
2,303
2,303
2,000
697
2,697
(continued)
Account Name
Ambulance:
Personal services
Total ambulance
Account
Code
A4540.100
A4540.200
A4540.400
Original
Budgeted Amounts
Transfers
Final
Actual
Amounts
Variance with
Final Budget
506,274
10,000
38,300
554,574
-
506,274
10,000
38,300
554,574
506,274
8,014
62,166
576,454
1,986
(23,866)
(21,880)
559,574
-
559,574
578,757
(19,183)
A5110.100
A5110.200
A5110.400
360,000
30,000
212,800
602,800
(18,343)
(18,343)
360,000
30,000
194,457
584,457
357,282
30,000
182,143
569,425
2,718
12,314
15,032
Permanent improvements:
Total permanent improvements
A5112.200
200,000
200,000
(5,511)
(5,511)
194,489
194,489
191,028
191,028
3,461
3,461.00
Bridges:
Personal service
Total bridges
A5120.100
A5120.400
9,000
18,000
27,000
(16,979)
(16,979)
9,000
1,021
10,021
8,930
1,021
9,951
Total health
Transportation:
Streets:
Personal services
Total streets
- 58 -
70
70
(continued)
Account Name
Garage:
Personal services
Total garage
Account
Code
Original
Budgeted Amounts
Transfers
Final
Actual
Amounts
Variance with
Final Budget
A5132.100
A5132.200
A5132.400
124,600
8,000
55,300
187,900
(7,211)
(1,805)
(9,016)
117,389
8,000
53,495
178,884
115,511
3,448
48,567
167,526
1,878
4,552
4,928
11,358
Snow and ice control:
Personal services
Total snow and ice control
A5142.100
A5142.200
A5142.400
15,500
8,000
55,000
78,500
(15,555)
(15,555)
15,500
8,000
39,445
62,945
15,380
4,300
38,301
57,981
120
3,700
1,144
4,964
Street lighting
Total Street Lighting
A5182.400
180,000
180,000
8,231
8,231
188,231
188,231
188,231
188,231
-
Airport:
Total airport
A5610.400
91,500
91,500
(24,118)
(24,118)
67,382
67,382
59,496
59,496
7,886
7,886
Bus system:
Personal services
Employee benefits
Total bus system
A5630.100
A5630.200
A5630.400
A5630.800
341,450
280,600
101,000
723,050
27,405
753,225
1,805
23,164
805,599
368,855
753,225
282,405
124,164
1,528,649
368,855
330,827
282,405
124,164
1,106,251
422,398
422,398
2,090,750
724,308
2,815,058
2,349,889
465,169
(continued)
Total transportation
- 59 -
Account Name
Culture and recreation:
Parks:
Personal services
Total parks
Account
Code
Original
Budgeted Amounts
Transfers
Final
Actual
Amounts
Variance with
Final Budget
A7110.100
A7110.200
A7110.400
95,700
4,000
53,125
152,825
2,337
2,337
95,700
4,000
55,462
155,162
92,216
3,817
52,558
148,591
3,484
183
2,904
6,571
Playgrounds:
Personal services
Total playgrounds
A7140.100
A7140.200
A7140.400
30,000
15,000
4,700
49,700
-
30,000
15,000
4,700
49,700
24,352
14,672
140
39,164
5,648
328.00
4,560
10,536
Swimming pool:
Personal services
Total swimming pool
A7180.100
A7180.400
31,000
23,700
54,700
-
31,000
23,700
54,700
29,511
20,197
49,708
1,489
3,503
4,992
Youth services:
Total youth services
A7310.400
30,000
30,000
-
30,000
30,000
30,000
30,000
-
Historian:
Personal services
Total historian
A7510.100
A7510.400
1,500
400
1,900
-
1,500
400
1,900
1,500
172
1,672
- 60 -
228
228
(continued)
Account Name
Celebrations:
Total celebrations
Adult recreation:
Total adult recreation
Account
Code
Original
Budgeted Amounts
Transfers
Final
Actual
Amounts
Variance with
Final Budget
A7550.400
19,000
19,000
-
19,000
19,000
17,898
17,898
1,102
1,102
A7620.400
1,000
1,000
-
1,000
1,000
-
1,000
1,000
309,125
2,337
311,462
287,033
24,429
A8010.100
A8010.400
58,350
3,500
61,850
-
58,350
3,500
61,850
53,127
1,007
54,134
5,223
2,493
7,716
Planning board:
Total Planning Board
A8020.400
2,500
2,500
-
2,500
2,500
496
496
2,004
2,004
Sanitary sewers:
Personal services
Total sanitary sewers
A8120.100
A8120.400
67,000
31,500
98,500
(9,066)
8,284
(782)
57,934
39,784
97,718
57,926
39,383
97,309
8
401
409
(continued)
Total culture and recreation
Home and community service:
Planning:
Personal services
Total planning
- 61 -
Account Name
Sewage treatment and disposal:
Personal services
Account
Code
A8130.100
A8130.200
A8130.400
Total sewage treatment and disposal
Original
Budgeted Amounts
Transfers
Final
Actual
Amounts
Variance with
Final Budget
275,000
15,000
308,000
4,921
(12,524)
(17,256)
279,921
2,476
290,744
279,921
14,326
380,412
(11,850)
(89,668)
598,000
(24,859)
573,141
674,659
(101,518)
Storm sewers:
Personal services
Total storm sewers
A8140.100
A8140.400
38,000
5,000
43,000
-
38,000
5,000
43,000
36,947
136
37,083
1,053
4,864
5,917
Refuse and garbage:
Total refuse and garbage
A8160.400
280,000
280,000
20,204
20,204
300,204
300,204
300,203
300,203
1
1
Street cleaning:
Personal services
Total street cleaning
A8170.100
A8170.200
A8170.400
73,000
42,000
115,000
(25,846)
(25,846)
73,000
16,154
89,154
69,025
143,605
2,020
214,650
1,198,850
(31,283)
1,167,567
1,378,534
Total home and community services
3,975
(143,605)
14,134
(125,496)
(210,967)
(continued)
- 62 -
Account Name
Employee benefits:
Retirement
Police and fire retirement
Social security
Workmen's compensation insurance
Unemployment insurance
Disability
Hospital insurance
Total employee benefits
Account
Code
Original
A9010.800
A9014.800
A9030.800
A9040.800
A9050.800
A9055.800
A9060.800
225,000
495,000
310,000
130,000
6,500
16,000
1,113,313
2,295,813
A9710.600
229,643
Budgeted Amounts
Transfers
(31,784)
(50,000)
41,663
42,905
3,174
67,055
73,013
Final
Actual
Amounts
Variance with
Final Budget
193,216
445,000
351,663
172,905
6,500
19,174
1,180,368
2,368,826
193,215
444,927
351,663
172,905
5,043
19,174
1,180,368
2,367,295
1
73
-
229,643
229,643
-
229,643
-
229,643
229,643
-
155,076
516
15,722
155,076
16,238
155,075
16,238
-
155,592
15,722
171,314
171,313
1,457
1,531
Debt service:
Principal:
Serial bonds
Total Principal
Interest:
Serial bonds
Total Interest
A9710.700
A9730.700
1
1
(continued)
- 63 -
Account Name
(concluded)
Lease:
Capital lease principal
Capital lease interest
Account
Code
Budgeted Amounts
Transfers
Original
Actual
Amounts
Final
Variance with
Final Budget
A9789.600
-
-
-
48,011
(48,011)
A9789.700
-
-
-
5,756
(5,756)
-
-
-
53,767
(53,767)
(53,766)
Total Lease
Total debt service
Total expenditures
385,235
15,722
400,957
454,723
10,738,553
748,225
11,486,778
11,241,756
117,500
18,750
50,000
186,250
5,000
5,000
5,000
117,500
18,750
50,000
191,250
60,000
120,000
5,000
117,500
18,750
50,000
371,250
245,022
OTHER FINANCING USES
Transfers out:
Transfer to general (from debt reserve)
Transfer to general (from public safety reserve)
Transfer to WPC reserve
Transfer to library fund
Transfer to capital projects
Total other financing uses
Total expenditures and other financing uses
A9901.900
A9901.900
A8130.900
A9512.900
A9550.900
A9550.900
$
10,924,803
- 64 -
$
753,225
$
11,678,028
$
11,613,006
(60,000)
(120,000)
(180,000)
$
65,022
Water Fund
Schedule of Revenues—Budget and Actual
Account Name
REVENUES
Metered water sales
Flat rate water sales
Service charges
Special Assessment
Late payment penalties
Interest earnings
Account
Code
F2140
F2142
F2144
F2146
F2148
Original
$
558,000
938,000
40,000
43,000
40,000
1,619,000
Budgeted Amounts
Transfers
$
-
Actual
Amounts
Final
$
558,000
938,000
40,000
43,000
40,000
1,619,000
$
Variance with
Final Budget
651,752
896,212
33,105
66,986
49,783
1,697,838
$
93,752
(41,788)
(6,895)
9,783
54,852
F2401
7,000
7,000
-
7,000
7,000
12,593
12,593
5,593
5,593
F2701
3,000
-
3,000
8
(2,992)
3,000
-
3,000
8
(2,992)
1,629,000
-
1,629,000
1,710,439
19,000
19,000
-
19,000
19,000
-
$ 1,648,000
Miscellaneous:
Refund of prior year expenditures
Total miscellaneous
Total revenues
Transfers in
Total revenues
F2958
$ 1,648,000
- 65 -
$
57,453
$ 1,710,439
(19,000)
(19,000)
$
38,453
Water Fund
Schedule of Expenditures and Other Financing Uses—Budget and Actual
Account Name
EXPENDITURES
General government support:
General data processing:
Account
Code
F1680.400
Total general data processing
Special Items:
Total special items
F1910.400
Total general governmental support
Original
$
7,550
Budgeted Amounts
Transfers
$
-
Actual
Amounts
Final
$
7,550
$
6,317
Variance with
Final Budget
$
1,233
7,550
-
7,550
6,317
1,233
80,000
80,000
-
80,000
80,000
80,000
80,000
-
87,550
-
87,550
86,317
1,233
Home and community services:
Personal services
Total administrative
F8310.100
F8310.400
117,000
5,500
122,500
-
117,000
5,500
122,500
65,517
5,626
71,143
51,483
(126)
51,357
Source of supply:
Total source of supply
F8320.400
118,640
118,640
-
118,640
118,640
106,343
106,343
12,297
12,297
Purification:
Personal services
Total purification
F8330.100
F8330.200
F8330.400
216,000
10,000
246,200
472,200
-
216,000
10,000
246,200
472,200
192,924
9,060
200,043
402,027
23,076
940
46,157
70,173
(continued)
- 66 -
Water Fund
Account Name
Transmission and distribution:
Personal services
Total transmission and distribution
Account
Code
F8340.100
F8340.200
F8340.400
Serial bonds
Final
Actual
Amounts
Variance with
Final Budget
313,000
15,000
110,800
438,800
-
313,000
15,000
110,800
438,800
298,894
50,911
37,057
386,862
14,106
(35,911)
73,743
51,938
1,152,140
-
1,152,140
966,375
185,765
F9030.800
F9040.800
F9050.800
F9055.800
F9060.800
F9080.800
45,000
25,000
1,000
6,000
131,000
70,000
278,000
-
45,000
25,000
1,000
6,000
131,000
70,000
278,000
42,591
19,277
2,501
93,646
48,116
206,131
2,409
5,723
1,000
3,499
37,354
21,884
71,869
F9710.600
206,614
-
206,614
206,614
-
206,614
-
206,614
206,614
-
28,908
-
28,908
33,200
(4,292)
28,908
-
28,908
33,200
(4,292)
235,522
-
235,522
239,814
(4,292)
1,753,212
-
1,753,212
1,498,637
Total home and community services
Employee benefits:
Social security
Unemployment insurance
Disability
Hospital insurance
Retirement
Debt service:
Principal:
Original
Budgeted Amounts
Transfers
Total principal
Interest:
Serial bonds
Total interest
Total debt service
Total expenditures
F9710.700
254,575
(continued)
- 67 -
Water Fund
Account Name
Account
Code
Original
Budgeted Amounts
Transfers
Final
Actual
Amounts
Variance with
Final Budget
-
43,000
(concluded)
OTHER FINANCING USES
Transfers out:
Total expenditures and other financing uses
F9550.900
43,000
$ 1,796,212
- 68 -
$
-
43,000
-
$ 1,796,212
$ 1,498,637
$
254,575
Schedule of Revenues and Expenditures
Account
Code
REVENUES
Aid generated from departmental activity:
Homeowners share
Interest on loans
Principal payments
Miscellaneous
Federal aid:
Aid drawn down from federal government:
CD2172
CD2173
CD2174
CD2401
CD2701
Small cities rehabilitiation program
Actual
Amounts
$
270,769
CD3989
$
Total revenues
EXPENDITURES
Home and community service:
Rehabilitation loans and grants:
Personal services
Equip & cap outlay
Total rehabilitation loans and grants
CD8691.100
CD8691.200
CD8691.400
1,320
15,793
66,087
225
2,971
357,165
4,310
7
5,959
10,276
(continued)
- 69 -
Schedule of Revenues and Expenditures
(concluded)
City Wide Rehabilitation
Equip & cap outlay
Total city wide rehab
Administration:
Personal services
Total administration
Other:
Equip & cap outlay
Total
Economic development zone:
Personal services
Community Development
Total economic development
Total expenditures
CD9668.200
CD9668.400
245,609
42,226
287,835
CD9686.100
CD9686.400
3,510
6,673
10,183
CD9692.400
CD8694.200
CD9693.400
2,000
3,610
10,000
15,610
CD8692.100
CD8692.200
CD8692.400
,
4,310
24,000
5,886
34,196
358,100
$
- 70 -
Combining Balance Sheet—By Project
March 31, 2011
Various
Improvements
Water
Various
Improvements
$ 19,559
-
$
72,737
-
$
8,901
36,003
$ 163,529
-
$ 19,559
$
72,737
$
44,904
$ 163,529
$
$
442
-
$
-
Library
ASSETS
Total assets
LIABILITIES AND
FUND BALANCES (DEFICITS)
Liabilities:
Accounts payable
Retention payable
Total liabilities
-
442
-
Miscellaneous
$
-
2,929
-
Catherine
Street
Bridge
$
$
Airport
Improvements
Shamut
Park
Grand
Street
Bridge
-
$ 148,849
-
$ 32,479
-
$ 154,922
-
$
600,976
36,003
-
$ 148,849
$ 32,479
$ 154,922
$
636,979
-
$
$
-
$ 34,500
160,000
$
78,267
64,149
600,000
40,396
64,149
440,000
Total
2,929
-
544,545
-
194,500
742,416
Fund balances (deficits):
Unreserved, undesignated
Total fund balances (deficits)
19,559
72,295
44,904
160,600
-
(395,696)
32,479
(39,578)
(105,437)
19,559
72,295
44,904
160,600
-
(395,696)
32,479
(39,578)
(105,437)
44,904
$ 163,529
Total liabilities and
fund balances (deficits)
$ 19,559
$
72,737
$
- 71 -
$
-
$ 148,849
32,479
$ 154,922
$
636,979
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances (Deficits)—By Project
Library
REVENUES
Intergovernmental charges
$
-
$
1988-89
Water
Various
Various
Improve-
Improve-
ments
ments
19,668
22
Miscellaneous
$
22
61,113
-
-
$
Catherine
Airport
Miscell-
Street
Improve-
Shamut
Street
aneous
Bridge
ments
Park
Bridge
-
$
-
-
24
-
-
238,104
-
$
Grand
-
$
-
49
-
$
Total
-
10
$
20
-
-
19,668
147
299,217
State aid
-
-
-
-
-
834,730
-
-
834,730
Federal aid
-
-
-
-
-
335,246
-
20,400
355,646
61,135
19,690
-
238,128
-
1,170,025
20,420
1,509,408
-
-
-
173,698
-
Total revenues
10
EXPENDITURES
Capital outlay:
General government
Transportation
Total expenditures
-
48,013
-
-
-
69,115
69
115
-
-
21,905
-
-
69,115
48,013
21,905
173,698
-
(7,980)
(28,323)
(21,905)
64,430
-
-
-
-
50,000
18,750
-
-
-
50,000
18,750
(28,323)
(21,905)
114,430
18,750
100,618
66,809
46,170
(18,750)
1,574,387
-
-
173,698
-
60,000
20,021
20
021
-
-
20,021
60,000
(20,011)
(39,580)
(457,731)
-
-
-
68,750
-
-
-
68,750
(20,011)
(39,580)
1,574,387
1,682,400
89,136
89
136
21,905
1,967,139
Execss (deficiency) of revenues
Transfers in
Net change in fund balances (deficits)
(7,980)
27,539
Fund balances (deficit)—beginning
Fund balances (deficits)—ending
$
19,559
$
72,295
$
44,904
$
- 72 -
160,600
$
-
(404,362)
(404,362)
$
8,666
52,490
(395,696) $
32,479
2
$
(39,578) $
(388,981)
283,544
(105,437)
FINANCIAL STATEMENTS AND SCHEDULES
OF NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds:
The Library Fund accounts for activities of the City library.
The Special Purpose Fund accounts for funds which can only be used for specific activities.
Combining Balance Sheet
Nonmajor Governmental Funds
March 31, 2011
Special Revenue
Special
Purpose
Library
ASSETS
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Total
Nonmajor
Governmental
Funds
$
75,688
$
209,853
$
285,541
$
75,688
$
209,853
$
285,541
$
1,235
5,668
-
$
73,467
$
1,235
5,668
73,467
6,903
73,467
80,370
Fund balances:
Unreserved, undesignated
68,785
136,386
205,171
Total fund balances
68,785
136,386
205,171
Total liabilities
$
Total liabilities and fund balances
- 73 -
75,688
$
209,853
$
285,541
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
Special Revenue
Special
Purpose
Library
REVENUES
Real property taxes
Departmental income
Miscellaneous
State aid
$
150,000
6,118
18
10,673
8,582
$
131,937
-
Total
Nonmajor
Governmental
Funds
$
150,000
138,055
18
10,673
8,582
175,391
131,937
307,328
212,334
47,297
99,961
-
99,961
212,334
47,297
259,631
99,961
359,592
(84,240)
31,976
(52,264)
117,500
-
117,500
Net change in fund balances
33,260
31,976
65,236
Fund balances—beginning
35,525
104,410
139,935
Total revenues
EXPENDITURES
Current:
Public safety
Employee benefits
Total expenditures
(Deficiency) of revenues
(under) expenditures
Transfers in
$
Fund balances—ending
- 74 -
68,785
$
136,386
$
205,171
Library Fund—Schedule of Revenues and Other
Account Name
REVENUES
Real property tax:
Real property tax
Total real property tax
Account
Code
L1001
Original
$
Budgeted Amounts
Transfers
175,000
175,000
$
-
Actual
Amounts
Final
$
175,000
175,000
$
150,000
150,000
Variance with
Final Budget
$
$
(25,000)
(25,000)
Fines and rentals
L2082
5,000
5,000
-
5,000
5,000
6,118
6,118
Interest earnings
L2401
100
100
-
100
100
18
18
(82)
(82)
Miscellaneous:
Other local sources
Refund of prior year expenditures
Total miscellaneous
L2705
L2790
11,000
11,000
-
11,000
11,000
10,417
256
10,673
(583)
256
(583)
State aid:
Library aid
Total state aid
L3840
5,000
5,000
-
5,000
5,000
8,582
8,582
196,100
-
196,100
175,391
(20,837)
117,500
117,500
-
117,500
117,500
117,500
117,500
-
Total revenues
Transfers in
Total revenues and other financing sources
L5031
$
313,600
- 75 -
$
-
$
313,600
$
292,891
1,118
1,118
3,582
3,582
$
(20,837)
Library Fund
Schedule of Expenditures—Budget and Actual
Account
Code
Account Name
EXPENDITURES
Culture and recreation:
Personal services
L7410.100
L7410.400
Original
$
Total culture and recreation
Budgeted Amounts
Transfers
159,600
107,800
$
(25,000)
Actual
Amounts
Final
$
159,600
82,800
$
159,737
52,597
267,400
(25,000)
242,400
212,334
Variance with
Final Budget
$
(137)
30,203
30,066
Employee benefits:
Retirement
Social Security
Disability
Hospital insurance
L9010.800
L9030.800
L9040.800
L9055.800
L9060.800
11,500
12,300
1,800
1,000
23,000
49,600
-
11,500
12,300
1,800
1,000
23,000
49,600
10,883
12,081
927
1,049
22,357
47,297
617
219
873
(49)
643
2,303
Contingency account
L9500.900
1,000
-
1,000
-
1,000
Total expenditures
$
318,000
- 76 -
$
(25,000)
$
293,000
$
259,631
$
33,369
STATISTICAL SECTION
(UNAUDITED)
This part of the City of Hornell’s comprehensive annual financial report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the City’s overall financial health.
Contents
Financial Trends...............................................................................................................77
These schedules contain trend information to help the reader understand how the City’s
financial performance and well-being have changed over time.
Revenue Capacity ............................................................................................................83
These schedules contain information to help the reader assess the City’s most
significant revenue source, real property taxes.
Debt Capacity...................................................................................................................87
These schedules present information to help the reader assess the affordability of the
City’s current levels of outstanding debt and the City’s ability to issue additional debt
in the future.
Demographic and Economic Information ........................................................................92
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City’s financial activities take place.
Operating Information .....................................................................................................94
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 the activities it performs.
Net Assets
Last Eight Fiscal Years (accrual basis of accounting)
March 31,
2004
2005
2006
2007
2008
2009
2010
2011
Governmental activies:
Invested in capital assets, net of related debt $ 35,267,138
4,723
Restricted
Unrestricted
3,965,600
$ 33,284,738
4,723
2,206,641
$ 31,762,348
4,723
2,496,128
$ 30,598,270
4,723
1,901,691
$ 30,040,801
1,689,089
$ 32,010,172
2,120,437
$ 30,253,560
2,575,679
$ 29,976,729
3,003,106
$ 39,237,461
$ 35,496,102
$ 34,263,199
$ 32,504,684
$ 31,729,890
$ 34,130,609
$ 32,829,239
$ 32,979,835
Total net assets
Note: 2004 was the first year the City reported net assets. Prior to 2004 such
information is unavailable. For comparitive purposes, certain items in the prior
years presentation have been restated.
Source: City of Hornell Basic Financial Statements
- 77 -
Changes in Net Assets
2004
Expenses
Primary government:
Public safety
Health
Transportation
Interest and other fiscal charges
Total primary government expenses
Program revenues
Charges for services
Departmental
p
income
Miscellaneous
Operating grants and contributions
Capital grants and contributions
$
3,791,787
2,938,508
607,054
4,498,561
486,526
3,065,217
212,885
2005
$
2,086,658
3,700,985
572,275
5,934,285
553,407
2,710,138
224,042
2006
$
1,520,252
3,532,898
427,966
4,118,355
626,477
3,448,553
234,598
2007
$
2,632,952
2,775,807
528,248
4,843,140
655,162
2,861,109
216,599
2008
$
2,341,175
3,615,131
533,569
4,285,836
610,367
4,195,681
212,861
2009
$
1,324,220
3,752,471
1,112,174
4,580,919
541,990
2,953,643
247,888
2010
$
2,256,406
4,085,458
674,055
3,151,400
735,470
5,049,254
226,900
2011
$
1,763,652
4,174,954
895,720
3,305,890
772,852
3,949,658
195,462
15,600,538
15,781,790
13,909,099
14,513,017
15,794,620
14,513,305
16,178,943
15,058,188
3,471,596
1,414,703
163,757
3,119,234
1,015,167
485,920
3,237,152
1,019,272
426,630
3,158,436
908,393
591,984
3,649,707
,
,
32,525
43,543
1,559,656
1,859,551
3,591,622
,
,
37,751
64,350
1,580,069
4,303,670
3,705,310
,
,
38,126
75,076
468,525
1,777,319
596,876
3,999,012
,
,
35,632
60,181
19,893
975,715
1,521,323
5,050,056
4,620,321
4,683,054
4,658,813
7,144,982
9,577,462
6,661,232
6,611,756
(10,550,482)
(11,161,469)
(9,226,045)
(9,854,204)
(8,649,638)
(4,935,843)
(9,517,711)
(8,446,432)
Total primary government
program revenues
Primary government net expenses
(continued)
- 78 -
Changes in Net Assets
(concluded)
General revenues:
Property taxes and tax items
Sales tax
Mortage tax
Sale of property & compensation for loss
Miscellaneous
Unrestricted state aid
Total general revenues
Note:
3,006,411
2,526,672
125,079
34,502
62,836
1,039,831
3,100,114
2,771,234
123,563
33,515
347,752
1,043,932
3,253,430
2,773,707
136,495
62,445
504,558
1,262,507
3,272,063
2,773,798
131,973
139,175
176,119
1,602,561
3,222,645
2,756,000
65,313
133,577
133,932
23,352
66,294
1,473,731
3,353,477
3,159,588
131,967
53,464
72,485
57,385
108,125
1,576,892
3,259,184
3,044,344
42,356
105,437
20,957
11,139
156,847
1,576,077
3,277,210
3,209,351
47,497
94,219
25,996
21,264
378,710
1,542,781
6,795,331
7,420,110
7,993,142
8,095,689
7,874,844
8,513,383
8,216,341
8,597,028
3,577,540
$ (1,301,370) $
$ (3,755,151) $ (3,741,359) $ (1,232,903) $ (1,758,515) $
2004 was the first year the City reported net assets. Prior to 2004 such information is unavailable. For
comparitive purposes, certain items in the years prior to 2007 presentation have been restated or reclassified.
In addition, 2008 is the first year the City has reported charges for services by function and will be reported
as such on a prospective basis.
- 79 -
(774,794) $
150,596
Fund Balances (Deficits), Governmental Funds
Last Ten Fiscal Years
General Fund
March 31,
Reserved
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
$ 1,053,207
1,200,954
894,184
838,370
1,118,708
874,277
577,214
384,170
347,024
368,102
Other Governmental Funds
Unreserved
Unreserved
$
1,350,390
1,296,853
1,173,627
930,795
770,513
797,887
1,023,274
1,611,922
1,911,232
1,945,934
Special
Revenue Funds
Total
$
2,403,597
2,497,807
2,067,811
1,769,165
1,889,221
1,672,164
1,600,488
1,996,092
2,258,256
2,314,036
** - data unavailable
- 80 -
**
**
**
**
**
379,826
176,854
261,173
577,959
854,062
Capital
Projects Fund
**
**
**
**
**
(40,779)
(337,505)
(512,336)
283,544
(105,437)
Total
$
365,230
196,162
1,870,903
3,254,998
1,460,598
339,047
(160,651)
(251,163)
861,503
748,625
Changes in Fund Balances, Governmental Funds
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Revenues:
Taxes (1)
Charges for services (2)
$
4,912,436
2,685,928
$
5,173,514
3,121,179
$
5,651,024
3,385,230
$
5,995,740
3,030,580
$
6,163,345
$
6,186,139
$
6,153,815
3,161,344
3,082,123
3,654,443
$
6,641,315
$
6,443,448
3,955,776
3,760,093
$
6,596,517
4,018,680
53,387
23,955
34,502
33,515
62,445
139,175
110,576
72,485
434,699
26,221
40,883
39,963
38,991
40,700
36,754
33,509
32,525
37,751
38,126
35,632
Miscellaneous (3)
State aid
Federal aid
Total revenues
51,877
48,488
47,375
47,954
39,054
42,804
43,543
64,350
75,076
60,181
105,793
123,355
62,836
347,752
504,558
176,119
89,646
165,510
167,986
399,974
2,633,776
2,710,317
2,000,745
1,898,993
2,232,111
2,260,895
4,293,500
2,693,348
2,401,902
3,129,950
325,610
1,582,418
617,546
646,026
476,298
678,043
824,015
4,456,592
1,590,726
957,366
10,809,690
12,823,189
11,838,249
12,041,260
12,675,909
12,598,807
15,202,063
18,087,127
14,912,056
15,224,521
Expenditures:
Public safety
Health
Transportation
884,820
958,623
1,023,131
1,040,740
1,126,440
1,227,893
1,106,460
1,164,815
1,133,554
1,147,385
2,203,612
1,980,410
2,266,616
2,771,679
2,573,764
2,512,186
2,810,217
2,696,664
2,755,446
2,864,418
299,770
301,451
478,394
394,323
313,860
553,676
611,768
535,701
454,617
578,757
1,706,734
1,885,713
2,113,685
1,837,369
1,967,448
2,056,779
2,083,666
2,351,069
2,125,468
2,349,889
362,870
379,594
415,470
461,630
523,226
531,714
551,681
490,772
496,040
499,367
2,217,159
3,375,909
2,365,425
2,376,460
2,404,001
2,445,423
3,413,585
2,765,158
3,405,482
2,703,009
Employee benefits
1,206,419
1,304,329
1,697,459
1,955,321
2,192,351
2,261,188
2,265,957
2,370,331
2,381,634
2,620,723
Capial outlay
2,382,037
2,098,258
2,390,753
892,486
2,982,323
1,679,976
2,291,151
4,682,824
1,200,422
1,967,139
448,621
420,475
355,168
351,548
436,257
219,960
218,477
240,860
210,718
210,269
128,673
125,422
48,011
Debt service:
Principal
Interest
710,971
613,760
590,583
544,675
679,219
Capital lease payments
-
-
-
-
-
-
-
Bond issuance costs
-
-
-
-
-
-
66,848
-
-
Advance refunding escrow
-
-
-
-
-
-
121,508
-
-
Total expenditures
11,974,392
12,898,047
13,341,516
12,274,683
14,762,632
13,937,416
15,961,793
17,782,035
14,640,351
15,425,224
(continued)
- 81 -
Changes in Fund Balances, Governmental Funds
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
(concluded)
(1,164,702)
(74,858)
(1,503,267)
(233,423)
(2,086,723)
(1,338,609)
(759,730)
305,092
271,705
(200,703)
Other financing sources (uses)
Transfers in
471,000
213,000
662,844
305,000
167,192
170,000
178,750
226,091
973,753
371,250
Transfers out
(471,000)
(213,000)
(662,844)
(305,000)
(167,192)
(170,000)
(178,750)
(226,091)
(973,753)
(371,250)
Issuance of long term debt
-
-
-
-
-
-
-
-
980,000
-
-
-
-
-
-
-
-
123,125
Payments to escrow agent
-
-
-
-
-
-
-
-
-
Premiums on advance refunding
-
-
-
-
-
-
23,356
-
-
-
-
(2,110,000)
Proceeds of long-term obligations
247,843
-
-
-
412,380
-
2,275,000
-
247,843
-
-
-
412,380
-
188,356
-
(1,503,267) $
(233,423) $
(1,674,343) $
(1,338,609) $
$
(916,859) $
(74,858) $
7.41%
5.68%
(571,374) $
305,092
143,605
-
1,103,125
$
1,374,830
143,605
$
(57,098)
Debt service as a percentage
of noncapital expenditures
5.39%
4.79%
Notes:
(1) Includes general property taxes, interest and penalties on tax, payments in lieu of tax, sales tax and franchise fees.
(2) Includes revenues in departmental income and intergovernmental charges categories.
(3) Includes revenues in sale of property and miscellaneous categories.
- 82 -
5.77%
5.64%
5.26%
8.36%
4.91%
5.36%
Assessed Value and Actual Value of Taxable Property
Last Four Fiscal Years (Unaudited)
2008
Agricultural property
Residential property
$
9,000
2009
$
9,000
2010
$
9,500
2011
$
-
162,027,400
164,717,700
171,710,200
160,728,600
Vacant land
12,520,350
13,489,050
13,775,566
12,566,800
Commercial property
59,517,700
61,874,100
70,846,500
83,503,900
Recreational property
2,246,900
2,746,900
2,769,300
2,623,200
Community services
45,698,325
45,998,400
46,890,600
46,727,400
Industrial property
14,413,700
17,965,100
18,879,000
18,879,000
Public service
15,048,928
16,394,777
17,243,849
16,778,361
(83,828,700)
(90,225,000)
(110,792,567)
(112,590,023)
Less: tax exempt property
Total taxable assessed value
Total direct tax rate
$ 227,653,603
$ 232,970,027
$ 231,331,948
$0.00
$0.00
$0.00
Source: City of Hornell Assessor
Note: Prior year data has been used for comparative
purposes as data from nine years prior is unavailable.
Additionally, assessed value is equal to the actual
value.
- 83 -
$
229,217,238
$0.00
Direct and Overlapping Property Tax Rates (per $1,000)
Last Ten Fiscal Years (Unaudited)
Fiscal
City
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Notes:
$
School
13.76
14.41
14.99
15.41
15.89
11.75
11.90
11.90
11.26
11.26
$
14.90
15.10
17.94
20.35
21.94
18.45
17.69
17.56
17.69
16.95
County
$
8.80
8.92
10.03
10.03
10.61
11.90
9.59
9.06
9.63
9.09
There are no limitations, either as to the rate or amount, with respect to ad valorem taxes real
property in the City which may be required to pay principal and interest of its bonded
indebtedness. The decrease from 2006 to 2007 occurred because of property revaluations.
Source:
City of Hornell Office of City Chamberlain.
- 84 -
Total
$
37.46
38.43
42.96
45.79
48.44
42.10
39.18
38.52
38.58
37.30
Principal Taxpayers
Current Year and Nine Years Ago (Unaudited)
2011
Taxpayer
National Fuel
Steuben Trust Co.
New York State Electric & Gas
Hornell Associates LLC
SJM Properties, Inc.
Maple City Lodging
Hornell Garden Properties LLC
Verizon
Wilkins Family Properties
Pennsylvania Lines LLC
M. Hunt/Hornell Associates
Conrail (penn lines)
RHH Properties, Inc.
Shuts Estates/D&Eshuts
Sweeney Estate/S. Kellogg
Assessed
Valuation
Type of Business
Utility
Bank
Utility
Real Estate/Commercial
Medical Center
Motel
Nursing Home
Utility
Commercial/Residential
Railroad
Shopping Center
Railroad
Nursing Home
$
$
5,711,802
4,884,500
4,653,154
1,952,400
1,919,600
1,897,000
1,771,600
1,382,624
1,296,000
1,198,214
26,666,894
Source: City of Hornell Assessor
- 85 -
2002
Rank
Percentage
of Total
Assessed
Valuation
1
2
3
4
5
6
7
8
9
10
2.47%
2.11%
2.01%
0.84%
0.83%
0.82%
0.77%
0.60%
0.56%
0.52%
Assessed
Valuation
$
11.53%
$
5,054,739
5,662,700
4,044,973
1,594,000
2,419,394
1,159,500
3,969,575
1,400,000
1,147,100
1,105,400
27,557,381
Rank
Percentage
of Total
Assessed
Valuation
2
1
3
3.02%
3.38%
2.41%
-
6
0.95%
5
1.44%
8
4
7
9
10
0.69%
2.37%
0.84%
0.68%
0.66%
16.45%
Real Property Tax Levies and Collections
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Total
Collection
At Date
of Return
Total Levy
$
2,453,186
2,581,232
2,667,509
2,760,313
2,714,814
2,674,613
2,715,161
2,744,185
2,914,307
2,901,298
$
2,234,178
2,345,622
2,438,186
2,522,730
2,446,462
2,414,484
2,436,057
2,512,582
2,665,828
2,621,061
Percentage
Collected
At Date
of Return
91.07%
90.87%
91.40%
91.39%
90.12%
90.27%
89.72%
91.56%
91.47%
90.34%
The total levy includes Water, Sewer Water and Public charges. Tax payments are due
between May 1 and June 1 without penalty. Penalties are:
June 02-15
1%
June 16-30
2%
July 01-15
6%
July 16-31
8%
August 1 and thereafter
10%
The tax roll is returned to the Steuben County Commissioner of Finance after June 1 at
which time all unpaid taxes and penalties are payable. The City retains their full tax levies
for all funds and special districts prior to remitting the balance plus unpaid items to the
County. Thus, the City is assured of receiving 100% of its tax levy.
The City pays to the School District the full amount of the taxes collected on their behalf.
Source: Receiver of Taxes
- 86 -
Subsequent
Receivable
From
County
$
219,008
235,610
229,323
237,584
268,352
260,129
279,104
231,603
248,479
280,237
Ratios of General Bonded Debt per Capita
Fiscal
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
General
Obligation
Bonds
$
4,713,933
4,383,662
4,011,230
4,863,537
4,520,584
4,270,370
4,144,895
3,919,159
4,673,163
4,366,906
Percentage
of Personal
Income
Personal
Income
$
254,191,496
254,191,496
254,191,496
254,191,496
254,191,496
254,191,496
254,191,496
254,191,496
254,191,496
166,981,010
1.85%
1.72%
1.58%
1.91%
1.78%
1.68%
1.63%
1.54%
1.84%
2.62%
Population
9,019
9,019
9,019
9,019
9,019
9,019
9,019
9,019
9,019
8,590
Sources: City of Hornell Basic Financial Statements and U.S. Census Bureau, Census 2000, 2010
- 87 -
Debt per
Capita
$
523
486
445
539
501
473
460
435
518
508
Ratios of General Bonded Debt to Taxable Property Values
General
Obligation
Bonds
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
$
4,713,933
4,383,662
4,011,230
4,863,537
4,520,584
4,270,370
4,144,895
3,919,159
4,673,163
4,366,906
Actual Taxable
Value of
Property
$
Percentage of
Actual Taxable
Value of
Property
167,495,797
167,412,597
165,564,999
168,209,066
168,379,652
227,948,645
227,653,603
232,970,027
231,331,948
229,217,238
Sources: City of Hornell Basic Financial Statements and City Assessor
- 88 -
2.81%
2.62%
2.42%
2.89%
2.68%
1.87%
1.82%
1.68%
2.02%
1.91%
Direct and Overlapping Governmental Activities Debt
As of March 31, 2011 (Unaudited)
Gross
Indebtedness
GOVERNMENTAL UNIT
Estimated Direct Debt:
City of Hornell
$
Estimated Overlapping Debt:
County of Steuben
School Districts:
Hornell City School District
7,099,625
$
3,509,477
25,990,000
Total Estimated Overlapping Debt
Total Estimated Direct
and Overlapping Debt
(1)
Estimated
Exclusions
$
Net
Indebtedness
$
-
100.00 %
25,990,000
5.33 %
1,384,263
66.41 %
31,917,316
11,390,000
48,064,624
85,444,624
11,390,000
74,054,624
$
14,899,477
$
77,644,772
Notes:
(1) Under New York State Statutes certain indebtedness related to Water Improvements is excludable and certain
Sewer Improvements as well as School indebtness funded by State Building Aid may be excluded if applied for, in the
computation of statutory debt limits.
Source: Per most recent data provided - City 3/31/2011, County 12/31/2010 and Schools 6/30/2011
- 89 -
City of
Hornell
Portion
3,590,148
59,454,624
92,544,249
City of
Hornell
Percentage
Applicable
$
3,590,148
33,301,579
$
36,891,727
Computation of Legal Debt Margin
As of March 31, 2011 (Unaudited)
Estimated actual value of real property (after exemptions):
2007
2008
2009
$
2010
2011
320,311,438
320,479,000
321,191,000
342,124,515
341,807,261
$
Total
Average full valuation
Debt limit- 7% of average full valuation (1)
Debt applicable to limit:
Serial bonds
EFC notes payable
Capital leases
1,304,105,953
260,821,191
18,257,483
Less:
Excludable serial bonds
Excludable EFC notes payable
Subsequent year appropriations
4,366,906
1,944,000
600,000
188,719
7,099,625
(711,906)
(1,944,000)
(253,571)
(600,000)
(3,509,477)
Total net debt applicable to limit
3,590,148
$
Legal debt margin
NOTES:
(1) The provisions of Section 104 of the Local Finance Law specifies City debt
limits in New York State.
(2) There is no constitutional limitation of the amount that may be raised by the
City by tax on real estate in any fiscal year to pay interest and principal on all
indebtedness.
Sources: City of Hornell Basic Financial Statements and the Annual Report of the
Division of Real Property Tax, Department of Finance, County of Steuben, New
York.
- 90 -
14,667,335
Legal Debt Margin
Debt Limit
December 31,
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Total Debt
Applicable
to Limit
$
11,633,290
$
11,634,617
11,820,358
9,500,501
12,223,614
14,363,033
16,312,360
18,491,124
20,925,941
18,257,483
4,457,000
5,408,662
5,161,230
4,953,537
3,820,000
5,697,911
5,423,670
2,811,733
3,649,913
3,590,148
Sources: City of Hornell Basic Financial Statements
- 91 -
Legal
Debt Margin
$
Percentage of Net
Debt Applicable
to Limit
7,176,290
38.31%
6,225,955
6,659,128
4,546,964
8,403,614
8,665,122
10,888,690
15,679,391
17,276,028
14,667,335
46.49%
43.66%
52.14%
31.25%
39.67%
33.25%
15.21%
17.44%
19.66%
Demographic and Economic Statistics
Last Ten Calendar Years (Unaudited)
Calendar
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Population
9,019
9,019
9,019
9,019
9,019
9,019
9,019
9,019
9,019
8,590
Per Capita
Personal
Income
Personal
Income
$
254,191,496
254,191,496
254,191,496
254,191,496
254,191,496
254,191,496
254,191,496
254,191,496
254,191,496
166,981,010
$
28,184
28,184
28,184
28,184
28,184
28,184
28,184
28,184
28,184
19,439
Median
Age
School
Enrollment
Percent
High School
Graduate
or Higher
34.8
34.8
34.8
34.8
34.8
34.8
34.8
34.8
34.8
35.4
1,889
1,889
1,889
1,889
1,889
1,889
1,889
1,889
1,889
2,263
82.6%
82.6%
82.6%
82.6%
82.6%
82.6%
82.6%
82.6%
82.6%
92.6%
Sources: U.S. Census Bureau, Census 2000, 2010, and New York State Department of Labor.
- 92 -
Percent
Bachelor's
Degree
or Higher
13.3%
13.3%
13.3%
13.3%
13.3%
13.3%
13.3%
13.3%
13.3%
18.4%
Steuben County
Unemployment
Rate
7.2%
7.4%
6.4%
5.7%
5.4%
5.3%
6.0%
9.7%
9.1%
11.7%
Principal Employers
Current and Prior Year (Unaudited)
2011
Employer
Employees
2010
Rank
Employees
Rank
St. James Mercy Hospital
The Gunlocke Company
886
840
1
2
600
936
2
1
Alfred State College
Hornell City School Dist.
NYS Dept. of Transportation
Alstom, Inc.
516
418
399
-
3
4
5
-
500
455
188
3
4
5
Sou
ces: City
C ty of
o Hornell
o e Chamber
C a be oof Co
e ce
Sources:
Commerce
- 93 -
Full- Time Equivalent Town Government Employees by Function/Program
Function/Program
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
General Government
Council members
Mayor
Chamberlain
Assessor
Clerk
Attorney
Codes
Planning Board
10.0
2.0
4.0
2.0
3.0
1.0
1.5
1.0
10.0
2.0
4.0
2.0
3.0
1.0
1.5
1.0
10.0
2.0
4.0
2.0
3.0
1.0
1.5
1.0
10.0
2.0
4.0
2.0
3.0
1.0
1.5
1.0
10.0
2.0
4.0
2.0
3.0
1.0
1.5
1.0
10.0
2.0
4.0
2.0
3.0
1.0
1.5
1.0
10.0
2.0
4.5
2.0
3.0
1.0
2.0
1.0
10.0
2.0
4.5
2.0
3.0
2.5
1.0
-
10.0
2.0
4.5
2.0
3.0
1.0
1.5
1.0
10.0
2.0
4.0
1.0
3.0
1.0
1.0
1.0
Total General Government Support
24.5
24.5
24.5
24.5
24.5
24.5
25.5
25.0
25.0
23.0
Public Safety
Police
Fire
Ambulance
27.0
19.0
5.0
27.0
19.0
5.0
27.0
19.0
5.0
27.0
19.0
5.0
27.0
19.0
5.0
27.0
19.0
5.0
21.0
18.0
5.0
21.0
18.0
5.0
24.0
18.0
5.0
23.0
20.0
6.0
Total Public Safety
51.0
51.0
51.0
51.0
51.0
51.0
44.0
44.0
47.0
49.0
Transportation
Bus
Street cleaning
16.0
2.0
16.0
2.0
16.0
2.0
16.0
2.0
16.0
2.0
16.0
2.0
16.0
2.0
21.0
2.0
19.0
2.0
18.0
2.0
Total Transportation
18.0
18.0
18.0
18.0
18.0
18.0
18.0
23.0
21.0
20.0
(continued)
- 94 -
Full- Time Equivalent Town Government Employees by Function/Program
Function/Program
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
(concluded)
Public Works
General
Buildings
Administrative
Sewer
Sewer Treatment
Water
20.0
3.0
2.0
2.0
5.0
12.0
20.0
3.0
2.0
2.0
5.0
12.0
20.0
3.0
2.0
2.0
5.0
12.0
20.0
3.0
2.0
2.0
5.0
12.0
20.0
3.0
2.0
2.0
5.0
12.0
20.0
3.0
2.0
2.0
5.0
12.0
16.0
3.0
2.0
2.0
4.0
10.0
15.0
3.0
1.5
2.0
4.5
7.5
16.0
3.0
2.0
2.0
4.0
10.0
18.0
3.0
2.0
2.0
5.0
10.0
Total Public Works
44.0
44.0
44.0
44.0
44.0
44.0
37.0
33.5
37.0
40.0
Parks and Recreation
14.5
14.5
14.5
14.5
14.5
14.5
14.5
14.5
14.5
14.5
152.0
152.0
152.0
152.0
152.0
152.0
139.0
140.0
144.5
146.5
Total
Source: The City of Hornell's payroll department.
Note: Data prior to 2007 based on 2007 figures as no significant changes occurred.
- 95 -
Operating Indicators by Function/Program
Last Three Years (Unaudited)
POLICE:
Arrests
Traffic tickets
Calls for service
Police reports
2011
2010
2009
1,010
1,639
13,107
1,071
1,322
11,831
897
1,189
11,346
FIRE:
Emergency responses
Fires extinguished
Inspections
428
214
501
396
76
463
371
20
99
AMBULANCE:
Emergency responses
2,006
2,055
2,044
363,926
106,542
342,924
97,151
365,608
90,506
2
359
13,678,633
120
52
9,266
73
122
5,821
TRANSIT:
Total route miles
Passengers
NUMBER OF BUILDING PERMITS:
One family
Other
Value of construction
$
$
$
SEWER:
Average daily sewage treatment (in gallons)
2,220,000
1,900,000
2,548,593
WATER:
New connections
Average daily consumption (in gallons)
Peak daily consumption (in gallons)
14
2,300,000
3,100,000
5
2,100,000
3,000,000
32
2,140,027
2,856,470
4,000
3,641
3,833
51,585
56,256
50,332
65,187
50,642
59,258
REFUSE:
Refuse collected (tons annually)
LIBRARY:
Volumes in collection
Total volumes borrowed
- 96 -
Miscellaneous Capital Asset Statistics by Function/Program
Last Five Fiscal Years (Unaudited)
Function/Program
General government
City hall
Public Safety
Police stations
Patrol units
Fire stations
Fire trucks
Ambulance
Transportation
Garage
Salt storage shed
Bus
Bridges
Traffic lights
Street lights
Economic Opportunity and Development
Senior center
Parks and recreation
Library
Skate park complex
Pool complex
Water
DPW buildings
Fire hydrants
Storage tanks
Pump stations
2007
2008
2009
2010
2011
1
1
1
1
1
1
5
4
4
4
1
6
1
2
6
1
6
1
4
4
1
2
1
4
6
1
2
1
4
5
1
1
16
15
5
126
1
1
17
15
5
126
1
1
14
15
5
136
1
1
21
15
5
126
1
1
17
15
5
131
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
260
2
10
1
260
2
10
2
260
2
10
2
260
2
10
2
260
2
10
Source: City of Hornell, Capital Asset Report
- 97 -

CITY OF HORNELL, NEW YORK

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