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City of Sandusky, Ohio CITY OF SANDUSKY, OHIO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2016 City Council City of Sandusky 222 Meigs Street Sandusky, Ohio 44870 We have reviewed the Independent Auditor’s Report of the City of Sandusky, Erie County, prepared by Rea & Associates, Inc., for the audit period January 1, 2016 through December 31, 2016. Based upon this review, we have accepted these reports in lieu of the audit required by Section 117.11, Revised Code. The Auditor of State did not audit the accompanying financial statements and, accordingly, we are unable to express, and do not express an opinion on them. Our review was made in reference to the applicable sections of legislative criteria, as reflected by the Ohio Constitution, and the Revised Code, policies, procedures and guidelines of the Auditor of State, regulations and grant requirements. The City of Sandusky is responsible for compliance with these laws and regulations. Dave Yost Auditor of State September 12, 2017 88 East Broad Street, Fifth Floor, Columbus, Ohio 43215‐3506 Phone: 614‐466‐4514 or 800‐282‐0370 Fax: 614‐466‐4490 www.ohioauditor.gov This page intentionally left blank. Introductory This page intentionally left blank. CITY OF SANDUSKY, OHIO COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2016 Prepared By: Department of Finance Hank S. Solowiej, CPA Finance Director Sally A. Poggiali Senior Accountant/Auditor Jacki M. Jesberger Heather L. Turner Senior Accounting Clerk III Senior Accounting Clerk III Renee Hoffman Kaye L. Burel Senior Accounting Clerk II Senior Accounting Clerk II Jennifer Canino Senior Accounting Clerk II i ii CITY OF SANDUSKY COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2016 TABLE OF CONTENTS INTRODUCTORY SECTION Title Page ............................................................................................................................................ i Table of Contents ............................................................................................................................... iii Letter of Transmittal ........................................................................................................................... vii Certificate of Achievement................................................................................................................. xv Organizational Chart .......................................................................................................................... xvi City of Sandusky Elected and Appointed Officials ............................................................................ xvii FINANCIAL SECTION Independent Auditor’s Report ............................................................................................................ 1 General Purpose External Financial Statements Management’s Discussion and Analysis...................................................................................... 5 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position ............................................................................................... 14 Statement of Activities .................................................................................................... 16 Fund Financial Statements Balance Sheet - Governmental Funds ............................................................................. 18 Reconciliation of Total Governmental Fund Balance to Net Position of Governmental Activities .................................................................... 19 Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds ......................................................................... 20 Reconciliation of Statement of Revenues, Expenditures, and Changes in Fund Balance of Governmental Funds to Statement of Activities................................................................................................ 21 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (Non-GAAP Budgetary Basis) and Actual General Fund ............................................................................................................ 23 Statement of Fund Net Position - Proprietary Funds ...................................................... 24 Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds ....................................................................... 26 iii TABLE OF CONTENTS (continued) FINANCIAL SECTION (continued) Statement of Cash Flows - Proprietary Funds ................................................................ 27 Statement of Fiduciary Assets and Liabilities - Agency Funds ................................................................................................................. 29 Notes to the Basic Financial Statements ............................................................................... 30 Required Supplementary Information Schedule of the City’s Proportionate Share of the Net Pension Liability - Ohio Public Employees Retirement System - Traditional Plan ...................................... 81 Ohio Police and Fire Pension Fund ................................................................................ 82 Schedule of the City’s Contributions - Ohio Public Employees Retirement System - Traditional Plan ...................................... 83 Ohio Police and Fire Pension Fund ................................................................................ 84 Combining Statements and Individual Fund Schedules ..................................................................... 87 Combining Statements - Nonmajor Governmental Funds Fund Descriptions.................................................................................................................. 88 Combining Balance Sheet - Nonmajor Governmental Funds ............................................... 91 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - Nonmajor Governmental Funds ............................................................... 97 Combining Statements - Fiduciary Funds Fund Descriptions.................................................................................................................. 103 Combining Statement of Changes in Assets and Liabilities - Agency Funds ........................................................................................................................ 104 Individual Fund Schedules of Revenues, Expenditures/Expenses, and Changes in Fund Balance - Budget (Non-GAAP Budgetary Basis) and Actual ........................................ 107 Major Funds .......................................................................................................................... 108 Nonmajor Funds .................................................................................................................... 120 STATISTICAL SECTION Description ......................................................................................................................................... S-1 Net Position - Last Ten Years .................................................................................................................................... S-2 Changes in Net Position - Last Ten Years .................................................................................................................................... S-4 iv TABLE OF CONTENTS (continued) STATISTICAL SECTION (continued) Fund Balance - Governmental Funds - Last Ten Years .................................................................................................................................... S-8 Changes in Fund Balance - Governmental Funds - Last Ten Years .................................................................................................................................... S-10 Assessed and Estimated Actual Value of Taxable Property - Last Ten Years .................................................................................................................................... S-12 Property Tax Rates - Direct and All Overlapping Governments - Last Ten Years .................................................................................................................................... S-14 Real Property Tax Levies and Collections - Last Ten Years .................................................................................................................................... S-17 Principal Taxpayers - Current Year and Nine Years Ago ..................................................................................................... S-18 Personal Income Tax Filers by Income Level - Last Ten Years .................................................................................................................................... S-20 Water Service by Type of Customer - Last Ten Years .................................................................................................................................... S-23 Sewer Service by Type of Customer - Last Ten Years .................................................................................................................................... S-28 Principal Water Customers - Last Ten Years .................................................................................................................................... S-33 Principal Sewer Customers - Last Ten Years ...................................................................................................................................
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