Comprehensive Annual Financial Report
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CITY OF NEW HAVEN, CONNECTICUT Comprehensive Annual Financial Report Fiscal Year 2017 July 1, 2016 – June 30, 2017 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF NEW HAVEN, CONNECTICUT FOR THE FISCAL YEAR ENDED June 30, 2017 Prepared by the Department of Finance Daryl Jones, Controller Carleen Laffitte, Chief Accountant Harold Brooks, Senior Accountant Andre Wilson, Audit Coordinator Joseph Montagna, Accountant IV Maria Hunt, Accountant I Linda Robinson, Accountant II Robert Mignosa, Account Clerk I Jean Iannuzzi, Financial Analyst Tyrone Bryan, Account Clerk I Contents I. Introductory Section - unaudited Letter of Transmittal i-v Principal City Officials vi Organization Chart vii GFOA Certificate viii II. Financial Section Independent Auditor’s Report 1-3 Management’s Discussion and Analysis - unaudited 5-13 Basic Financial Statements Exhibit Government-Wide Financial Statements: A. Statement of net position 15 B. Statement of activities 16-17 Exhibit Fund Financial Statements: C. Balance sheet – governmental funds 18 D. Statement of revenues, expenditures and changes in fund balances – governmental funds 19 E. Reconciliation of the statement of revenues, expenditures and changes in fund balances of governmental funds to the statement of activities 20 F. Statement of net position (deficit) – proprietary funds 21 G. Statement of activities – proprietary funds 22 H. Statement of cash flows – proprietary funds 23 I. Statement of fiduciary net position – fiduciary funds 24 J. Statement of changes in fiduciary net position – fiduciary funds 25 Notes to Financial Statements 26-85 Contents Required Supplementary Information - unaudited Schedule RSI-1. Schedule of revenues and other financing sources – budget and actual (non-GAAP budgetary basis) – general fund - unaudited 87-89 RSI-2. Schedule of expenditures and other financing uses – budget and actual (non-GAAP budgetary basis) – general fund - unaudited 90-91 RSI-3. Schedule of contributions 92 RSI-4. Schedules of changes in the city’s net pension liability and related ratios – police and firemen retirement plan and investment returns - unaudited 93 RSI-5. Schedules of changes in the city’s net pension liability and related ratios – city employees’ retirement plan and investment returns - unaudited 94 RSI-6. Schedule of funding progress and employer contributions – opeb plan - unaudited 95 RSI-7 Schedule of the city’s proportionate share of the net pension liability – teachers’ retirement system - unaudited 96 RSI-8. Note to required supplementary information - unaudited 97-98 Combining and Individual Fund Financial Statements and Other Schedules Nonmajor Governmental Funds 1. Combining balance sheet – nonmajor governmental funds 100-101 2. Combining statement of revenues, expenditures, and changes in fund balance – nonmajor governmental funds 102-103 Nonmajor Enterprise Funds 3. Combining statement of net position (deficit) – nonmajor enterprise funds 105 4. Combining statement of revenues, expenses and changes in fund net position (deficit) – nonmajor enterprise funds 106 5. Combining statement of cash flows – nonmajor enterprise funds 107 Fiduciary Funds 6. Combining statement of trust fund net position – fiduciary funds 109 7. Combining statement of changes in trust fund net position – fiduciary funds 110 8. Statement of changes in assets and liabilities – agency funds 111 Contents Combining and Individual Fund Financial Statements and Other Schedules (Continued) Other Schedules 9. Balance sheet – by account – general fund 114-115 10. Schedule of revenues, expenditures and changes in fund balance – by account – general fund 116-117 11. Schedule of property taxes levied, collected and outstanding 118-119 III. Statistical Section - unaudited Financial Trends Net position by component - governmental activities 122-123 Statement of activities 124-127 Fund balances, governmental funds 128-129 Changes in fund balance, governmental funds 130-131 Revenue Capacity Assessed and estimated actual value of taxable property 132-133 Principal taxpayers 134 Property tax levies and collections 135 Debt Capacity Ratio of net general bonded debt to assessed value and net general bonded debt per capita 136 Ratio of total direct debt 137 Schedule of debt limitation 138 Legal debt margin information 140-141 Demographic and economic statistics 142 Principal employers 143 Operating Information Full-time equivalent government employees by function/program 144 Operating indicators by function/program 145-159 Introductory Section CITY OF NEW HAVEN DEPT. OF FINANCE OFFICE OF THE CONTROLLER Toni N. Harp Mayor 200 ORANGE STREET TONI N. HARP. ROOM 301 Daryl H. Jones NEW HAVEN, CONNECTICUT 06510 Controller Tel. (203) 946-8300- Fax. (203) 946-7244 March 15, 2018 To The Honorable Mayor and Board of Alders of the City of New Haven New Haven, Connecticut State law requires that every local government publish within six months of the close of each fiscal year a complete set of audited financial statements. This report is published to fulfill that requirement for the fiscal year ended June 30, 2017. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. RSM US, LLP, Certified Public Accountants, have issued an unmodified (“clean”) opinion on the City of New Haven’s financial statements for the year ended June 30, 2017. The independent auditor’s report is located at the front of the financial section of this report. Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. Profile of the Government New Haven was founded in 1638, and incorporated as a city in 1784. The City is located in the heart of the northeast corridor between New York City (75 miles away) and Boston (140 miles away). It occupies 20 square miles and serves a population of 129.934 (Est. 2016). The City is empowered to levy a property tax on real property, personal property and motor vehicles located within its boundaries. The City is governed primarily under the Charter which provides for the election, organization, powers and duties of the legislative branch (the “Board of Alder’s”), the powers and duties of the executive branch and the City’s fiscal budgetary matters, contracts procurement, property and records. The Mayor, serving as the chief executive officer, is responsible for the execution and enforcement of the laws and ordinances of the City and oversees all administrative functions. i The City/Town Clerk serves a term concurrent with that of the Mayor and is elected city-wide. The Board of Alder’s performs all legislative duties and its President serves as Acting Mayor in the absence of the Mayor. The Charter provides that the City maintain a variety of public services including the protection of persons and property, maintenance of streets and establishment of health, recreation and welfare facilities. The Constitution of the State of Connecticut establishes free public elementary and secondary education as the responsibility of the State. This responsibility is legislatively delegated to the City acting through its Board of Education. Municipal services provided by the City include: police and fire protection; health care; certain welfare programs; construction and maintenance of streets, highways and bridges; trash collection and disposal; provision for recreational programs and facilities; the acquisition and maintenance of City real and personal property, including vehicles; maintenance of building codes and regulation of licenses and permits; maintenance of records and library services; collection of taxes and revenues; purchase of supplies and equipment; construction and maintenance of airport facilities; and maintenance and operation of on-street parking facilities. Other governmental authorities provide service within the City, namely the New Haven Parking Authority, and the New Haven Solid Waste and Recycling Authority. The New Haven Parking Authority is an agency of the City established in 1951 to operate certain parking facilities for the City, as well as other parking facilities that are privately owned. The New Haven Solid Waste and Recycling Authority was established in 2008 and is specifically responsible for the operation and management of the City’s transfer station for solid waste disposal and recycling. The Board of Alder’s is required to adopt a budget for the fiscal year no later than May 31 preceding the beginning of the fiscal year on July 1. The annual budget serves as the foundation for the City’s financial planning and control. Proposed commitments in excess of appropriations are not processed until additional appropriations are made available. The Board of Alder’s may establish by ordinance, from time to time, an amount of appropriation under the approved budget which the Controller, with the approval of the Mayor, shall be authorized to transfer between line items within any department or from one department to another. No such transfer in excess of such authorized amount shall be implemented unless