CITY OF NEW ROCHELLE, NEW YORK
CO MPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 2012
CITY OF NEW ROCHELLE, NEW YORK
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31,2012
Prepared by ,he Department of Finance I-Ioward Rattner Commissioner
City of New Rochelle, New York Comprehensive Annual Financial Report
Fiscal Year Ended December 31,2012 Table of Contents
Page
INTRODUCTORY SECTION I
Principal Officials i Organization Chart ii Letter of Transmittal iii Certificate of Achievement for Excellence in Financial Reporting ix
FINANCIAL SECTION I
Independent Auditors' Report 1
Management's Discussion and Analysis 3
Basic Financial Statements Government-Wide Financial Statements Statement of Net Position 18 Statement of Activities 19 Fund Financial Statements Balance Sheet - Governmental Funds 21 Reconciliation of Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets 23 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 26 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 27 Proprietary Funds Statement of Net Position 28 Statement of Revenues, Expenses and Changes in Net Position 30 Statement of Cash Flows 32 Statement of Assets and Liabilities - Fiduciary Fund 34 Notes to Financial Statements 35 Required Supplementary Information - Other Post Employment Benefits- Schedule of Funding Progress - Last Three Fiscal Years 67
Combining and Individual Fund Financial Statements and Schedules
Major Governmental Funds General Fund Comparative Balance Sheet 68 Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual 69 Schedule of Revenues and Other Financing Sources Compared to Budget 71 Schedule of Expenditures and Other Financing Uses Compared to Budget 75 City of New Rochelle, New York Comprehensive Annual Financial Report
Fiscal Year Ended December 31, 2012 Table of Contents (Continued)
Page
Capital Projects Fund Comparative Balance Sheet 78 Comparative Statement of Revenues, Expenditures and Changes in Fund Balance 79 Project-Length Schedule 80 Debt Service Fund Comparative Balance Sheet 82 Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 83 Non-Major Governmental Funds Combining Balance Sheet 85 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 87 Community Development Fund Comparative Balance Sheet 89 Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 90 Section 8 Housing Assistance Fund Comparative Balance Sheet 92 Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 93 Special Purpose Fund Comparative Balance Sheet 95 Comparative Statement of Revenues, Expenditures and Changes in Fund Balance 96 Enterprise Funds Parking Facilities Fund Comparative Statement of Net Position 97 Comparative Statement of Revenues, Expenses and Changes in NetPosWon 98 Comparative Statement of Cash Flows 99 Municipal Marina Fund Comparative Statement of Net Position 100 Comparative Statement of Revenues, Expenses and Changes in Net Position 101 Comparative Statement of Cash Flows 102 Railroad Station Fund Comparative Statement of Net Position 103 Comparative Statement of Revenues, Expenses and Changes in Net Position 104 Comparative Statement of Cash Flows 105 Internal Service Funds Combining Statement of Net Position 106 Combining Statement of Revenues, Expenses and Changes in Net Position 108 Combining Statement of Cash Flows 110 City of New Rochelle, New York Comprehensive Annual Financial Report
Fiscal Year Ended December 31, 2012 Table of Contents (Continued)
Page
Workers' Compensation Benefits Fund Comparative Statement of Net Position 112 Comparative Statement of Revenues, Expenses and Changes in Net Position 113 Comparative Statement of Cash Flows 114 General Liability Claims Fund Comparative Statement of Net Position 115 Comparative Statement of Revenues, Expenses and Changes in Net Position 116 Comparative Statement of Cash Flows 117 Central Garage Fund Comparative Statement of Net Position 118 Comparative Statement of Revenues, Expenses and Changes in Net Position 119 Comparative Statement of Cash Flows 120 Schedule of Changes in Assets and Liabilities - Fiduciary Fund 121
STATISTICAL SECTION (Unaudited)
This part of the City'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 reveals about the City's overall financial health.
This section includes the following schedules:
Financial Trends Net Position by Component - Last Ten Fiscal Years 122 Changes in Net Position - Last Ten Fiscal Years 124 Fund Balances of Governmental Funds - Last Ten Fiscal Years 128 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 130
Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 132 Direct and Overlapping Property Tax Rates, Per $1,000 of Assessed Valuation Last Ten Fiscal Years 134 Principal Taxpayers - Current Year and Nine Years Ago 135 Property Tax Levies and Collections - Last Ten Fiscal Years 136
Debt Capacity Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 137 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal years 139 Direct and Overlapping Governmental Activities Debt 141 Legal Debt Margin Information - Last Ten Fiscal Years 142 City of New Rochelle, New York Comprehensive Annual Financial Report
Fiscal Year Ended December 31,2012 Table of Contents (Concluded)
Page
Demographic and Economic Information Demographic Statistics - Last Ten Fiscal Years 144 Principal Employers - Current Year and Nine Years Ago 145
Operating Information Full-Time Equivalent City Government Employees by Function - Last Ten Fiscal Years 146 Operating Indicators by Function/Program - Last Ten Fiscal Years 148 Capital Asset Statistics by Function/Program - Last Ten Fiscal Years 152
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.
FEDERAL I ----AWARDS Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 154 Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance 156 Schedule of Expenditures of Federal Awards 158 Notes to Schedule of Expenditures of Federal Awards 160 Summary Schedule of Prior Audit Findings 161 Schedule of Findings and Questioned Costs 162 INTRODUCTORY SECTION (This page intentionally left blank) CITY OF NEW ROCHELLE, NEW YORK
MAYOR AND MEMBERS OF CITY COUNCIL
Noam Bramson · Mayor (2015) Barry R. Fertel · Councilman (2015) Ivar Hyden · Councilman (2015) Shari B. Rackman · Councilwoman (2015) Jared R. Rice · Councilman (2015) Albert A. Tarantino Jr. · Councilman (2015) Louis J. Trangucci · Councilman (2015)
CITY OFFICIALS
Charles B. Strome III City Manager Howard Rattner Commissioner of Finance Kathleen Gill Corporation Counsel Alexander Tergis Commissioner of Public Works Luiz Aragon Commissioner of Development Patrick J. Carroll Police Commissioner Louis Dimeglio Fire Chief City Organization Chart
City of New Rochelle, NY
The Electorate I City Youth ~ Mayor City Court I Court Council Member Clerk Council Member Commissions ~ I Council Member Clerk to Council Member I Vital r~ the Council Boards Council Member Statistics I ~ Council Member ~ ICommittees ILicenses rY Elections I I I City Manager Parks and Office for Youth Bureau I Recreation the Aging
Marina
Department of Personnel & Affirmative I Law Civil Service Action / E.E.O
I I Department of Department of Fire Police Department of Finance Public Works Department Department Development & Administrative Services
Refuse Fire Police Accounting Engineering Disposal Emergency Services BUildings I- Housing BUdget I--- l- Treasury Operations I-- Purchasing Traffic Streets and Services Highways I- Code Staff Parking Community Tax & Revenue Enforcement Services Development Administration I---- - I--- MuniciPal~ Buildings Sewers and Garage Planning Transportation Drains Staff Criminal Investigations Refuse Services Assessments '---- I- Special Projects f-- Collection Economic - Real Property Forestry Development Administrative Services f--
Information Systems I---
II Department ofFinance 515 North Avenue Telephone (914)654-2063 New Rochelle, NY 10801 Fax (914) 654-2344
Howard Rattner Commissioner City ofNew Rochelle New York
June 7,2013
To the Honorable Mayor and Members of the City Council of the City of New Rochelle, NY:
.submitted herewith is the Comprehensive Annual Financial Report of the City of New Rochelle, New York ("City") for the fiscal year ended December 31,2012. The report is submitted pursuant to the requirements of Sections 47.02 and 117 of the City Charter and prepared in compliance with both the Governmental Accounting Standards Board Statement No. 34 - Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments and Statement No. 54 - Fund Balance Reporting and Governmental Fund Type Definitions.
This report consists of management's representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management ofthe City has established a comprehensive internal control framework that is designed to both protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with generally accepted accounting principles. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatement. Management asserts that, to the best ofour knowledge and belief, this comprehensive annual financial report is complete and reliable in all material respects.
The City's financial statements have been audited by O'Connor Davies, LLP, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended December 31, 2012 are free of material misstatement. The independent audit involved 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; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering unmodified opinions that the City's basic financial statements for the fiscal year ended December 31, 2012 are fairly presented in conformity with generally accepted accounting principles. The independent auditor's report is presented as the first component of the financial section of this report. The financial section also includes an overview and analysis, known as Management's Discussion and Analysis ("MD&A"). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found immediately follOWing the report of the independent auditor.
III Profile of the City of New Rochelle, New York
The City - referred to as being "forty-five minutes from Broadway" by George M. Cohan - is located on the north shore of the Long Island Sound in Westchester County, just north of New York City. Founded in 1688 by a group of French Huguenots seeking freedom from religious persecution, New Rochelle incorporated as a city in 1899.
The City has nine miles of shoreline, a culturally diverse population, an award-winning school system, extensive recreation and entertainment facilities, easy access to New York City and a full range of housing options, making New Rochelle a great place to live, work, relax and enjoy life. Within its 10.67 square miles, over 175 miles of streets and roads, 193 miles of sanitary sewer lines, 87 miles of storm drains, 170 traffic signals and 7,000 streetlights are maintained. The present city hall, dedicated in 1963, was originally constructed in 1906 to serve as New Rochelle High School. The City also has a police station, five fire stations, 23 park and recreation facilities encompassing over 250 acres, a 330-space municipal marina, a senior citizens center, a commuter railroad station, 20 public parking structures or lots, and a public works plant consisting of offices, a central maintenance garage, storage buildings and a traffic sign making operation.
New Rochelle, with a population of 77,062 according to the 2010 Census, is Westchester County's second-largest city and is the seventh-largest city in New York State. The 2010 Census also reports median income per capita of $40,787 and median household income of $65,317. Based on the most recent sales data, the median sales price of homes in New Rochelle is $538,000, well above the state-wide average.
The City has a Council-Manager form of government, approved by referendum by the City's citizens in 1929, effective as of January 1, 1932. The City Council is the legislative body and determines policy; the City Manager admiriisters the government and carries out the policy directives of the Council.
The City Council is a seven-member body consisting of the Mayor and six Council Members - each elected by District for four-year terms. The exception is the Mayor who is elected at-large for a four year term. The Mayor is the presiding officer of the City Council and officiates at all City ceremonial functions. The City Council has specific duties: it sets policy; appoints the City Manager and the City Clerk; and enacts local laws, resolutions and ordinances.
The City Manager, the Chief Executive Officer of the City, is appointed by the City Council and is responsible for planning, implementing and budgeting the delivery of City services, programs and capital projects. The City Manager, a professional administrator, executes City Council policies and directives and appoints all department commissioners and directors as well as members of various advisory and other committees. The City Manager also serves as an advisor to the City Council and develops recommendations and alternatives leading toward the preservation and enhancement of the City's physical and economic conditions as well as its social, recreational and cultural vitality.
The City provides a full range of services. General government services include vital statistics (birth and death certificates), business, occupational and other licenses, elections, tax collection services for the New Rochelle School District and Westchester County as well as the City, and a myriad of administrative functions. Public safety is prOVided through full-time police and fire departments and contracted ambulance services. Community environment services include community planning, engineering, building inspection, emergency disaster, street maintenance, snow removal, street lighting, off-street parking, maintenance of sewers and drains, street cleaning, solid waste and recycling, and street tree maintenance. Recreational services include recreation activities (camps, athletics, tennis, youth and senior activities), parks and playgrounds, marina services, a municipal pool, and beach operations.
IV There is one independent, although related, organization for which the City is financially accountable. The New Rochelle Industrial Development Agency ("IDA") is a public benefit corporation created under Section 908-b of the New York State General Municipal Law. Its governing board serves at the pleasure of the City Council. A City Councilmember and the City Manager presently sit on the IDA's board and the City provides staff services on a contractual basis to the IDA.
The New Rochelle City School District, whose boundaries are coterminous with those of the City, is an independent organization with a separately elected board and adopted budget. The School District prepares its own financial statements and, as such, is not reflected in the City's report.
The annual budget serves as the foundation for the City's financial planning and control. When adopted, it becomes an operational and fiscal gUideline for the ensuing year. It is prepared pursuant to City Charter requirements, policy direction from the Mayor and City Council and a set of budget strategies developed by the City Manager and his administrative staff.
The City's budget is based on a calendar year cycle comprised of the follOWing major components:
March - June Completion of updated three year financial projections based on on-going direction from Mayor and City Council.
City Manager reviews City-Wide goals and objectives with Departments.
Initiation of capital improvement planning process.
July Development of targeted departmental appropriations based upon three-year financial projections.
Budget Preparation Manual distributed to operating departments; process of developing departmental requests commences.
Aug. - Sept. City Manager and Budget Team meet with all departments to review requests.
Capital Improvement Committee meets with operating departments to review capital improvement project requests.
October Financial plan developed that balances estimated resources with anticipated expenditures.
November In accordance with Section 109 of the City Charter, the City Manager presents a Budget Estimate to the Mayor and City Council.
Nov. - Dec. Public hearing, City Council budget study sessions and deliberations continue, culminating in adoption of budget by year-end.
December Budget and tax levy adopted.
Following adoption of the budget, the City Charter establishes procedures for amendments during the fiscal year and processing transfers between appropriations. Amendments to the budget, which increase overall spending, must be formally adopted by ordinance ofthe City Council. Transfers from the contingent fund, or from one budget unit to another budget unit, must be approved by the unanimous consent of the City Council. Transfers from one item to another item in the same budget unit may be made by the City Manager, except that the City Manager does not have the authority to transfer any item that increases the authorized salary amounts.
v Factors Affecting Financial Condition
The global economic downturn that began in late 2007 with the collapse of the housing market and the consequent credit crisis has negatively impacted virtually all of the City's major revenue sources. Coupled with rising costs for contractual union commitments, health insurance, pension obligations and infrastructure needs, it is evident that our ability to deliver our historically high level of quality services becomes severely impaired.
Fortunately, the City's exceptional wealth levels and housing values form a foundation which can more effectively weather the financial storm than many other communities. The City must respond to this adversity by creating a financial plan that will maintain the delivery of our basic services without placing an onerous burden on our taxpayers. Thus, the information presented in the financial statements is best understood when it is considered in light of the specific environment in which the City operates.
Local Economy
As the seventh largest city in New York State, New Rochelle has many positive attributes that contribute to its reputation as the "Queen City of the Sound" and its solid financial base, including:
• Despite recent downturns in the market, strong housing values that have seen a 20% increase in the full valuation of New Rochelle properties from $7.6 billion in 2003 to over $9 billion in 2012;
•A property tax collection rate of 99%;
• An excellent school system, including a centrally located public high school that was cited as one of 114 "Distinguished High Schools" in the United States by the u.s. Department of Education; and
• Recognition as one of America's "best places to raise your kids" by Business Week magazine in November 2008, citing New Rochelle as "an ethnically diverse place with a bustling downtown and a mix of single-family homes and apartments."
As a suburb of New York City, New Rochelle's residential housing stock remains a key component of the City's financial strength. For the most recent twelve-month period, the City Assessor's data reveals that 350 homes were sold. Sales prices ranged from $145,000 to $1.9 million. The median sales price of homes decreased by 3% from the previous twelve months to $538,000. The average sales price was $611,366, still significantly above state-wide averages.
There are also over 12,000 apartment, condominium and co-operative dwelling units in the City, including recently built (588 units) luxury apartments and condominiums (194 units) overlooking the Long Island Sound. The City's commercial sector is varied and supports its economic strength. There is a major regional hospital, three colleges, two major hotels and two large retail warehouse-type operations (Costco and Home Depot).
The economic strength of the City is further supported by its transportation infrastructure. The City is accessible by rail, road and air links. Metro-North passenger trains run frequently to Grand Central Terminal in New York City. Amtrak passenger service is also available. An extensive network of highway facilities includes the New York State Thruway, the New England Thruway, and the Hutchinson River Parkway. The City is in close proximity to three major airports: LaGuardia Airport, JFK International Airport and Westchester County Airport.
vi Long-term Financial Planning
Dramatic changes have been taking place in New Rochelle's economic condition over the past two decades, including:
• The completion of the Weyman Avenue Urban Renewal Area project comprised of a new Home Depot and relocated Price Club (now Costco) stores; together, between $3-4 million in sales tax revenues annually have been realized by the City from this development;
• The opening in September 1999 of New Roc City, a 450,000 square foot retail, entertainment and hotel complex at the downtown mall site formerly housing, among others, Macy's Department Store. The movie theater component is one ofthe most successful operations in Regal Theatre's nationwide chain;
• Completion in April 2001 of 412 units (Phase I) of market rate rental apartments with ancillary retail and parking in the downtown area, known as Avalon-on-the-Sound, and an additional 588 units (Phase II) completed in 2008, known as Avalon-on-the-Sound East;
• The completion and opening of a 73,000 square foot shopping center on Palmer Avenue with a Super Stop & Shop as its anchor tenant;
• Completion in September 2006 of a 72,000 square foot retail center known as Palmer Square, with Marshalls and Home Goods as anchor tenants;
• Completion of construction of a multi-jurisdictional Intermodal transportation center, including an inter-city bus terminal, by the City's railroad station that is a key component to the revitalization of the downtown area;
• Completion and occupancy ofTrump Plaza, a luxury condominium high-rise that is part of a mixed-use project on the long vacant City property commonly known as Parcel lA; and
• Formation of an active Business Improvement District in the downtown area that has spurred development, improved its physical appearance and attractiveness, and secured over $50 million in private investment in recent years to convert:
the former Bloomingdale's store (100,000 square feet), vacant for 25 years, to a 72 unit luxury live-work loft condominium and associated retail development known as "Davenport Lofts on Main";
the former Lillian Vernon office building (40,000 square feet), vacant for three years, to a 90-unit luxury condominium complex; and
the former Librett's Hardware Store site (25,000 square feet), vacant for three years, by Monroe College to expand its academic curriculum, including its award winning business technology programs, and to accommodate a new dormitory on an adjoining vacant lot.
While the above efforts strengthen the City's economic base, the City also recognizes the need to protect its long-term physical health. In addition to maintaining current three-year operating budget projections, the City annually updates its five-year capital improvement program. The preservation of the City's infrastructure, equipment and capital assets is as critical to a community as are its daily operational functions. A separate capital program budget, delineating proposed projects to be undertaken during a five-year period, the estimated cost and proposed method of financing, is submitted to the City Council annually as part of the budget process.
VII During 2012, the City's capital expenditures totaled almost $10 million, three quarters of which were funded by federal and state resources. About $4.5 million of this total was expended on renovations to the athletic facilities at the 21-acre City Park recreational center on Fifth Avenue. These improvements were funded by a $9.8 million "legacy grant" from Westchester County awarded in 2010. Another $1.1 million was expended on energy efficient improvements to City Hall and the Police/Court facility, largely funded by federal grants. Other major projects included the conversion to LED light fixtures in the City's two major parking garages and street resurfacing at various locations throughout the City.
Relevant Financial Policies
The City's annual budget document incorporates a series of financial policies designed to ensure the continued fiscal health of the City. Included in this document are guidelines on staffing levels, expenditure growth, debt management, enterprise fund operations, fees, self-insurance reserves and property tax rates.
The City also maintains separate documented policy gUidelines for cash management/investments, purchasing, capital assets and a five-year capital improvement program. These policies are reviewed, and updated if warranted, on an annual basis.
The City prepares its budgets with these financial policies in mind and maintains aggressive and effective budgetary controls to ensure compliance with these documents. The City does not foresee any issues with its ability to comply with the current gUidelines in the implementation of its near and long term initiatives.
Awards
The Government Finance Officers Association ("GFOA") awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of New Rochelle for its comprehensive annual financial report ("CAFR") for the fiscal year ended December 31, 2011. The Certificate of Achievement is a prestigious national award that recognizes conformance with the highest standards of preparation of state and local government financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report whose contents conform to program standards. This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City of New Rochelle, New York has received a Certificate of Achievement for the last 21 consecutive years. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate.
Acknowledgements
The preparation of this report would not have been possible without the dedicated services of the staff of the entire Finance Department who process, record and analyze the thousands of transactions summarized therein. The assistance of all City departments, who prOVided information specific to their operations, is likewise appreciated. Our gratitude is extended to the City Manager, Mayor and City Council for their continued support in enhancing the financial integrity of the City. Finally, we wish to thank our independent auditor, O'Connor Davies, LLP, for their suggestions and input in preparing this report.
Respectfully submitted, 4J 1()'I0) Howard Rattner Finance Commissioner
viii Certificate of Achievement for Excellence in Financial Reporting Presented to City ofNew Rochelle New York
For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 20 II
A CCliificatc ofAchievement for Excellence in Financial Reporting is presented by the Govermnent Filiancc Officers Association ofthe United States and Canada to government units and public employee retirement systems whose comprehensive annual fmancial reports (CAFRs) achieve the highest standards in govermnent accounting and financial reporting.
~p~. President ~,r?~ Executive Director
IX (This page intentionally left blank) FINANCIAL SECTION (This page intentionally left blank) O'CONNOR PKF DAVIES
Independent Auditors' Report
The Honorable Mayor and City Council of the City of New Rochelle, New York
We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund and the aggregate remaining fund information of the City of New Rochelle, New York ("City") as of and for the year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents,
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City, as of December 31, 2012, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.
O'CONNOR DAVIES, LLP 500 Mamaroneck Avenue, Suite 301, Harrison, NY 10528 I Tel: 914.381.8900 I Fax: 914.381.8910 I www.odpkf.com O'Connor Davies, LLP is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management's Discussion and Analysis and the Schedule of Funding Progress - Other Post Employment Benefits be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary and Other Information
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, the schedule of expenditures of federal awards as required by U.S. Office of Management and Budget Circular A-133 Audits of State, Local Governments and Non-Profit Organizations and the introductory and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual fund financial statements and schedules and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied by us in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 6, 2013 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance.
O'Connor Davies, LLP Harrison, New York June 6,2013
2 City of New Rochelle, New York
Management's Discussion and Analysis (MD&A) December 31,2012
Introduction
As management of the City of New Rochelle, New York ("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 December 31, 2012. This discussion should be read in conjunction with the transmittal letter, located at the front of this report, the basic financial statements and the accompanying notes to those statements to enhance understanding of the City's financial performance.
Financial Highlights
Key financial highlights for fiscal year ended 2012 are as follows:
• The net position (assets minus liabilities) of the City for fiscal year 2012 were $79,255,655. Of this amount, $55,515,284 represents governmental net position and $23,740,371 is business type net position.
• As of the close of the fiscal year, the City's governmental funds reported combined ending fund balances of $10,769,234, a increase of $1,939,361, or 22%, from the prior year.
• The General Fund reported an ending unassigned fund balance of $3,176,116, an increase of $1,545,922, or 95%, from the prior year and represents 2.9% of combined General Fund expenditures and other financing uses.
• The City's gross total outstanding bonds payable at December 31,2012 was $76,530,000.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to financial statements. This report also contains other supplementary information in addition to the basic financial statements.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business.
The statement of net position presents information on all the City's assets, liabilities and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in the net position may serve as a useful indicator as to whether the financial position of the City is improving or deteriorating.
3 The statement of activities presents information showing the change in the City's net position during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (for example, uncollected taxes, earned but unused vacation leave and other postemployment benefit obligations ("OPEB")).
The government-wide financial statements distinguish functions of the City that are governmental activities (those principally supported by taxes, charges for services and operating grants and contributions) and functions of the City that are business-type activities (those that are intended to recover all or a significant portion of their costs through user fees and charges). The governmental activities of the City include general government support, public safety, transportation, economic opportunity and development, culture and recreation, home and community services and interest. The business-type activities of the City reflect the operations of the Parking Facilities, Municipal Marina, and Railroad Station respectively.
The government-wide financial statements include not only the City itself (the primary government) but also the activities of one legally separate component unit: the New Rochelle Industrial Development Agency. Financial information for this unit is reported separately from the financial information presented for the primary government.
The government-wide financial statements can be found on the pages immediately following this section as the first three pages of the basic financial statements.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds.
Governmental funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as 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 for the much narrower current period, it is useful to compare this information to the data presented in the government-wide financial statements in order to better understand the long-term impact of the City's current 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 has six individual governmental funds: General, Capital Projects, Debt Service, Community Development, Section 8 Housing Assistance and Special Purpose funds. Of these, the General, Capital Projects and Debt Service funds are reported as major funds, and are presented in separate columns on the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances. Data for the other governmental funds are combined
4 into a single, aggregated column on these statements. Individual fund data for these non-major funds can be found on the combining statements elsewhere in this report.
The City adopts an annual budget for its General Fund, Community Development Fund, Section 8 Housing Assistance Fund and Debt Service Fund. A budgetary comparison statement has been provided for the General Fund, in the basic financial statements, to demonstrate compliance with the respective bUdget. Multi-year budgets are adopted for the Capital Projects Fund and a project-length schedule providing information about these projects and their budgets is included elsewhere in this report.
The governmental fund financial statements can be found in the basic financial statements section of this report.
Proprietary funds
The City maintains two different types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses an enterprise fund to account for the operations of its Parking Facilities, Municipal Marina and Railroad Station respectively. These funds are used to show activities that operate similar to private business enterprises and charge fees for services prOVided. Internal service funds are used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for its liability insurance coverage (the General Liability Claims Fund), its self-insured workers' compensation benefits (the Workers' Compensation Benefits Fund) and its charges for services to each department for repairs and maintenance of motor vehicles (the Central Garage Fund). These services have been classified as governmental activities in the government-wide financial statements because they predominantly benefit governmental, rather than business-type, functions.
The proprietary fund financial statements can be found in the basic financial statements section of this report.
Fiduciary funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support City programs. The City maintains only one type of fiduciary fund that is known as an agency fund. The City holds resources in this fund purely in a custodial capacity. The activity in this fund is limited to the receipt, temporary investment, and remittance of resources to the appropriate individual, organization, or government.
The fiduciary fund financial statements can be found in the basic financial statements section of this report.
Component Units - As discussed above, component units are legally separate entities for which the City is financially accountable. These component units are reported in the government-wide financial statements.
The component unit statements can be found in the basic financial statements section of this report.
5 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 are located following the basic financial statements section of this report.
Other Information
Additional statements and schedules can be found immediately following the notes to the financial statements. These include the required supplementary information for the City's other post employment benefit obligations, the combining statements for the non-major governmental funds and schedules of budget to actual comparisons.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets exceeded liabilities by $79,255,655 for fiscal year 2012.
Statement of Net Position
December 31,2012 December 31, 2011 Governmental Business-type Governmental Business-type Activities Activities Total Activities Activities Total
Current Assets $ 41,445,387 $ 5,274,174 $ 46,719,561 . $ 37,156,224 $ 5,040,675 $ 42,196,899 Capital Assets 152,121,402 40,067,532 192,188,934 155,633,762 41,405,986 197,039,748
Total Assets 193,566,789 45,341,706 238,908,495 192,789,986 46,446,661 239,236,647
Current Liabilities 18,271,659 1,242,588 19,514,247 14,373,686 1,526,584 15,900,270 Long-term Liabilities 119,779,846 20,358,747 140,138,593 111,377,688 22,208,580 133,586,268
Total Liabilities 138,051,505 21,601,335 159,652,840 125,751,374 23,735,164 149,486,538
Net Position Net Investment in Capital Assets 119,907,525 19,708,785 139,616,310 119,457,370 19,197,406 138,654,776 Restricted 8,979,550 1,255,701 10,235,251 13,038,775 1,105,701 14,144,476 Unrestricted (73,371,791 ) 2,775,885 (70,595,906) (65,457,533) 2,408,390 (63,049,143)
Total Net Assets $ 55,515,284 $ 23,740,371 $ 79,255,655 $ 67,038,612 $ 22,711,497 $ 89,750,109
The largest component of the City's net position reflects its investment in capital assets (land, land improvements, buildings and improvements, infrastructure, machinery and equipment and construction-in-progress), less any related debt outstanding that was used to acquire those assets, amounted to $139,616,310. The City uses these capital assets to provide services to its citizens and consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be utilized to liquidate these liabilities.
6 Restricted net position of $10,235,251, or 13% of total net position, represents resources that are subject to external restrictions on how they may be used. The restrictions are for the following purposes:
Debt Service $ 5,435,761 Capital Improvements 1,255,701 Section 8 Housing Assistance 1,122,531 Capital Projects 927,341 Special Purposes 668,884 General Liability 586,791 Community Development 238,242 $ 10,235,251
Unrestricted net position exhibits a deficit of $70,595,906. This deficit is primarily due to three items: (1) outstanding borrowing of approximately $2,8 million for tax certiorari judgments for which there are no offsetting assets; (2) outstanding borrowing of approximately $18.1 million for land acquired in the Weyman Avenue and Lawton Street Urban Renewal areas, which was subsequently disposed of, again resulting in no offsetting net position; and (3) a long-term liability of about $50,9 million for other post employment benefits as required under the calculations of Government Accounting Standards Board Statement Number 45.
7 The following table summarizes the Statement of Activities:
December 31,2012 December 31, 2011 Governmental Business-type Governmental Business-type Activities Activities Total Activities Activities Total Program Revenues: Charges for Services $ 13,613,633 $ 7,371,277 $ 20,984,910 $ 9,790,646 $ 7,146,176 $ 16,936,822 Operating Grants and Contributions 17,434,284 17,434,284 19,392,466 19,392,466 Capital Grants and Contributions 8,091,498 8,091,498 6,004,984 6,004,984 General Revenues: Real Property Taxes 50,606,101 50,606,101 48,515,952 48,515,952 Other Tax items 2,228,097 2,228,097 1,934,903 1,934,903 Non-Property Taxes 28,494,313 28,494,313 26,868,615 26,868,615 Unrestricted Use of Money and Property 135,766 11,645 147,411 146,121 13,827 159,948 Unrestricted State Aid 7,745,904 7,745,904 7,931,266 7,931,266 Sale of Real Properly 677,305 677,305 739,048 739,048 Other Revenues 741,090 741,090 1,187,823 1,187,823
Total Revenues 129,767,991 7,382,922 137,150,913 122,511,824 7,160,003 129,671,827
Program Expenses: General Government Support 18,094,901 18,094,901 16,618,891 16,618,891 Public Safety 71,573,690 71,573,690 71,319,925 71,319,925 Transportation 9,253,671 9,253,671 6,775,563 6,775,563 Economic Opportunity and Development 13,668,496 13,668,496 13,480,267 13,480,267 Culture and Recreation 5,956,887 5,956,887 5,028,336 5,028,336 Home and Community Services 19,144,141 19,144,141 18,327,071 18,327,071 Interest 2,899,533 2,899,533 3,094,129 3,094,129 Parking Facilities 4,082,457 4,082,457 4,542,544 4,542,544 Railroad Station 1,417,724 1,417,724 1,420,728 1,420,728 Municipal Marina 1,553,867 1,553,867 1,469,118 1,469,118
Total Expenses 140,591,319 7,054,048 147,645,367 134,644,182 7,432,390 142,076,572
Change in Net Assets before Transfers (10,823,328) 328,874 (10,494,454) (12,132,358) (272,387) (12,404,745)
Transfers (700,000) 700,000 (1,250,000) 1,250,000
Change in Net Position (11,523,328) 1,028,874 (10,494,454) (13,382,358) 977,613 (12,404,745)
Net Position - Beginning 67,038,612 22,711,497 89,750,109 80,420,970 21,733,884 102,154,854
Net Position - Ending $ 55,515,284 $ 23,740,371 $ 79,255,655 $ 67,038,612 $ 22,711,497 $ 89,750,109
Governmental activities: For the fiscal year ended December 31, 2012, governmental activities reduced the City's net position by $11,523,328, or 17%, Revenues from governmental activities increased by $7,256,167 from the prior year and related expenses increased by $5,947,137, Nevertheless, expenses continued to exceed revenues and, when combined with a transfer to business-type activities, produced the noted decrease to the City's net position.
Property taxes ($50.6 million) and sales taxes ($25.4 million) represent the largest revenue sources at 39% and 20%, respectively. Collection of the current tax levy remains very strong at about 99% annually over the last ten years despite the nationwide mortgage crisis. Sales tax revenues exhibited a 7% increase over FY 2011.
Other major revenue sources in 2012 included:
• Federal grants totaling about $15.4 million, comprised mainly of the U.S. Department of Housing and Urban Development's Community Development Block Grant (CDBG) and Section 8 Housing Assistance allocations;
• New York State and Westchester County aid of about $14.2 million, of which $6.2 million was the unrestricted "State Aid and Incentives for Municipalities," $4.5 million was from County Legacy grant funds for improvements to City Park athletic fields, $1.6 million was mortgage recording tax receipts and the remaining $1.9 million was for specific programs and projects;
8 • Fees and charges totaling about $13.8 million, the largest of which were police and fire fees, residential refuse collection charges and licenses and permits; and
• Non-property tax receipts amounting to about $3.1 million, comprised of utility gross receipts taxes, franchise fees and hotel occupancy taxes.
As noted, revenues increased by $7,256,167 over the prior year. The major revenue changes can be summarized as follows:
• Charges for services increased by about $3.8 million, primarily due to the increase of the residential refuse fee from $66 per residential unit per year to $223 per unit per year for most residences;
• Sales taxes increased by about $1.7 million due to an improving economy and from the collection of one-time arrears payments applicable to prior years while real property taxes increased by about $2.1 million as a result of a 5.96% tax rate hike imposed in FY 2012;
• Capital grants and contributions increased by about $2.1 million largely due to grant reimbursements from Westchester County for Phase III of City Park athletic field renovations; and
• Federal Department of Housing & Urban Development (HUD) revenues decreased by about $2.8 million largely due to the completion of North Avenue Streetscape improvements (funded . by CDBG) and the completed construction of the HOME funded Shiloh Senior Housing rental building.
Governmental activity expenses totaled about $141 million in 2012, an increase of approximately $5.9 million or 4.4% over the prior year. More than one half (51 %) of 2012 expenses were for public safety - police, fire, traffic and ambulance services. Home and Community Services (largely comprised of refuse and yard waste collection and disposal services, sewer and drain maintenance and federal CDBG grant obligations), Economic Opportunity and Development activities (primarily Section 8 subsidies) and General Government Support aggregately amounted to about $51 million, or approximately 36% of total costs. All other expenses totaled about $18 million.
The major expense changes contributing to the decrease in net position can be summarized as follows:
• Transportation costs increased by about $2.5 million due to the completion of the North Avenue streetscape project;
• General government support expenses increased by about $1.5 million, largely due to increased tax certiorari judgments and settlements; and
• Culture and recreation expenses increased by about $900,000 due to additional park improvement expenses in FY 2012.
Business-type activities. Business-type activities increased the City's net position by $1,028,874, net of interfund transfers. Revenues from business-type activities totaled about $7.4 million, almost all of which was comprised of charges for services. This source was approximately $225,000, or 3%, greater than the prior year, primarily due to permit fee rate increases implemented during the year. Expenses totaling $7,054,048 were about $380,000 less than last year's total, largely due to the
9 refunding of outstanding debt. The combination of revenue increases and expense decreases produced the net position increase in 2012.
Financial Analysis of the City's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance related legal requirements.
Fund Balance Reporting
GASB issued Statement No. 54, "Fund Balance Reporting and Governmental Fund Type Definitions", in February 2009. The requirements of GASB Statement No. 54 became effective for financial statements for the City's fiscal period ending December 31, 2011. GASB Statement No. 54 abandoned the reserved and unreserved classifications of fund balance and replaced them with five new classifications: nonspendable, restricted, committed, assigned and unassigned. An explanation of these classifications follows below.
Nonspendable - consists of assets that are inherently non-spendable in the current period either because of their form or because they must be maintained intact, including prepaid items, inventories, long-term portions of loans receivable, financial assets held for resale and principal of endowments.
Restricted - consists of amounts that are SUbject to externally enforceable legal purpose restrictions imposed by creditors, grantors, contributors, or laws and regulations of other governments; or through constitutional provisions or enabling legislation.
Committed - consists of amounts that are subject to a purpose constraint imposed by a formal action of the government's highest level of decision-making authority before the end of the fiscal year, and that require the same level of formal action to remove the constraint.
Assigned - consists of amounts that are subject to a purpose constraint that represents an intended use established by the government's highest level of decision-making authority, or by their designated body or official. The purpose of the assignment must be narrower than the purpose of the General Fund, and in funds other than the General Fund, assigned fund balance represents the residual amount of fund balance.
Unassigned - represents the residual classification for the government's General Fund, and could report a surplus or deficit. In funds other than the General Fund, the unassigned classification should be used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned.
These changes were made to reflect spending constraints on resources, rather than availability for appropriations, and to bring greater clarity and consistency to fund balance reporting. This pronouncement should result in an improvement in the usefulness of fund balance information.
Governmental funds
The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for discretionary use as it represents the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the City
10 itself, or an individual that has been delegated authority to assign resources for use for particular purposes by the City Council.
As of the end of the 2012 fiscal year, the City governmental funds reported a combined ending fund balance of $10,769,234, an increase of $1,939,361, or 22%, over the prior year. This total is now categorized according to the GASB 54 fund balance classifications. The non-spendable component of fund balance is $3,697,072, primarily comprised of prepaid expenditures and inventories in the General Fund. The restricted fund balance amount of $2,923,695 is restricted for debt service and trusts. Pursuant to City Charter provisions, $300,000 is shown in the committed classification. The assigned fund balance classification aggregately totals $2,611,672, consisting of amounts designated to balance the FY 2013 budget (in the General and Debt Service Funds); purchase order commitments unexpended as of December 31, 2012 (in the General Fund); and residual amounts in the Section 8 Fund. The remaining fund balance of $1,236,795 is unassigned and is comprised of a positive balance of $3,176,116 in the General Fund partially offset by a deficit of $1,939,321 in the Capital Projects Fund.
The General Fund is the primary operating fund of the City. At the end of the current fiscal year, the total fund balance of the General Fund was $8,423,927, a significant increase of $2,961,391, or 54%, over the prior year. The unassigned fund balance at December 31, 2012 was $3,176,116, an increase of $1,545,922, or 95%, from the prior year and represents 38% of the total General Fund balance. Two useful measures of liquidity are the percentage of unassigned fund balance to total expenditures and total fund balance to total expenditures. At the end of the current fiscal year, the General Fund exhibited a 2.9% unassigned fund balance to total expenditures and other financing uses while the total fund balance represents 7.6% of the same amount. This unassigned amount is available for future spending at the City's discretion.
There is an additional $300,000 shown as committed fund balance, which is designated to be reserved by City Charter provision. The remaining fund balance of $4,947,811 is not available for discretionary spending in order to liquidate contracts and purchase orders of the prior period and for prepaid expenses and inventories.
When the fiscal year 2012 bUdget was adopted, it anticipated that revenues would exceed expenses by $2.4 million. The actual results of operations resulted in a surplus or increase to fund balance of $2,961,391. General Fund revenues, including transfers from other funds and other financing sources, totaled $113,151,543. This amount was $7.9 million, or 7.5%, greater than the prior year. Major variances in revenue categories from the prior year can be seen as follows:
• An increase to the residential refuse fee from $66 per residential unit per year to $223 per unit per year in FY 2012 resulted in a revenue increase of $4,216,228;
• Real property taxes increased by $2,052,754, reflecting a 5.96% property tax rate increase partially offset by the payment of current year property tax refunds resulting from declining property values;
• Sales taxes increased by $1,652,212 due to an improving economy; and
• Reimbursements from FEMA for damages caused by Hurricane Sandy resulted in a one-time revenue of $1,064,191 in FY 2012, more than offsetting one-time insurance proceeds received in the prior year.
11 General Fund expenditures, including transfers to other funds, totaled $110,190,152. This amount was $1.5 million, or 1.3%, less than the final budget and about $5.0 million, or 4.8%, greater than the prior year. Major variances in expenditure categories from the prior year can be seen as follows:
• Pension rates for FY 2012 established by the New York State Comptroller's office were raised by 20% and resulted in a cost increase of $3,981,813;
• One-time overtime and debris removal costs associated with Hurricane Sandy in October 2012 totaled $1,346,477;
• Payments of tax certiorari judgments and related expenses increased by $916,978 over the prior year; and
• Job related injury expenses, including workers compensation, disability and medical payments, increased by $734,173, due to an older and leaner workforce.
The Capital Projects Fund is used to account for capital project activity throughout the City. Projects are funded through a combination of federal and grant proceeds, transfers from the General Fund, the issuance of both short and long term debt and other miscellaneous reimbursements. The Fund deficit of $1,879,321 results from the outstanding balance of about $3.7 million of short-term bond anticipation notes. Under generally accepted accounting principles, these proceeds are not recognized as a financing source. When the notes are converted to long-term bonds, the deficit will be reversed and the fund balance will be in a positive position.
During the year, about $9.7 million of capital expenditures were incurred in the Fund. Over 80% of these costs were funded by federal, state and county grants or by miscellaneous reimbursements. Major projects included:
City Park Improvements $ 4,526,000 Parking Garage Light Replacement 1,179,000 City Hall Energy Upgrades 1,060,000 Street Resurfacing and Drainage 978,000 Winthrop Avenue Infrastructure Improvements 419,000
The Debt Service Fund is used to account for the accumulation of resources required for the payment of principal and interest on general long-term debt. As of December 31, 2012, the Fund reported a fund balance of $2,459,811, a decrease of $309,257 from the prior year due to the use of available resources. Of the December 31,2012 balance, $205,000 is assigned for use in the FY 2013 budget and the remaining balance of $2,254,811 is restricted for debt service costs beyond then.
Non-major Governmental Funds consist of the following individual funds: Community Development, Section 8 Housing Assistance, and Special Purpose. For the fiscal year ending December 31, 2012, the combined fund balance of these funds totaled $1,764,817, a decrease of about 3% from the prior year. Of the year-end balance, $1,095,933 is assigned for Section 8 grant purposes while the remaining $668,884 is restricted for trust accounts.
Proprietary Funds. The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.
The total net position of the Parking Facilities Fund at year-end was $4,485,364, an increase of $859,694, or 24%, over the prior year. Unrestricted net position at December 31, 2012 amounted to $604,085, a decrease of $128,775 from the prior year. The replacement of IDA-issued bonds with
12 lower interest rate general obligation bonds for the New Roc Garage reduced the Fund's interest expense by almost $500,000. Combined with increases to certain permit and meter fees, operating income was $159,694, a significant improvement from the operating loss of $491,771 in the prior year. When non-operating revenue and expenses, as well as interfund transfers, are added in, the fund's net position improved by $859,694.
The total net position of the Railroad Station Fund at year-end was $18,003,476. Of this amount, the unrestricted portion totaled $1,892,150, a substantial increase of $520,732, or 38%, over the prior year. The Fund's financial position has improved over the past three years as permit fees and other revenues were adjusted to be more commensurate with expenses. During FY 2012, there was a modest increase in operating revenues of $20,365, or 1.3%, over FY 2011. Operating expenses increased by approximately $3,000, or less than 1%. When combined with non-operating revenues and expenses, net position increased by $137,908 over the prior year.
The total net position of the Municipal Marina Fund at year-end was $1,251,531, an increase of $31,272, or 3%, over the prior year. There was a modest increase in operating revenues of $10,299, or less than 1%, over FY 2011. Operating expenses increased by $92,358, or 6%, and when combined with non-operating revenue and expenses, an increase to net position of $31,272 resulted.
Our successful efforts to control outside legal expenses over the past three years produced a healthy net position in the General Liability Claims Fund and therefore allowed us to reduce user charges in FY 2012. At year end, the Fund enjoyed a net position of $586,791. Actuarial estimates of future liabilities in the Workers Compensation Fund exceeded budgetary estimates in past years. In FY 2012, user charges were increased, resulting in an increase of operating revenue of $412,162 over the prior year. Operating expenses increased by $474,137, necessitating a $1.5 million transfer from the General Liability Claims Fund to reduce the Fund's deficit by $416,265 to $1,356,512. User charges will be further increased in subsequent budgets to provide the resources to continue to eradicate this deficit. Increases to user fees served to produce net operating income of $32,517 in the Central Garage Fund, a substantial turn-around from a $79,729 loss in the prior year. The Fund's total net position at year-end was $77,578 compared to $45,061 in FY 2011.
Budgetary Highlights
The City adopts annual operating budgets for its governmental funds (General Fund, Community Development Fund, Section 8 Housing Assistance Fund, Debt Service Fund and Capital Projects Fund) and reports the results of operations on a budgetary comparison basis. The City also uses annual financial plans as a management tool for its enterprise and internal service funds, although the City does not report the results of these funds on a budgetary comparison basis.
In preparing its budget, the City attempts to estimate its revenues using realistic, but conservative, methods so as to budget its expenditure appropriations and activities in a prudent manner. As a result, the City Council adopts budget adjustments during the course of the fiscal year to reflect both changed priorities and availability of additional revenues to allow for expansion of existing, or creation of new, programs.
Differences between the original General Fund budget and the final amended budget were a $3,168,825 increase in appropriations. The increase is largely attributable to the receipt and use of funds that were not anticipated at the time of budget adoption, including the award of several federal and state grants.
13 In total, General Fund revenues, including transfers from other funds and other financing sources, were virtually equivalent to the final bUdget, although there were a few major categorical variances as shown below:
Variance Revenue Item Final Budget Actual Amount Percentage
Sales Tax $ 24,100,000 $ 25,444,381 $ 1,344,381 6 % Fines & Forfeitures 3,610,000 3,020,159 (589,841) (16) State Grants 1,271,590 964,951 (306,639) (24) Federal Aid 1,963,702 1,766,354 (197,348) (10) Mortgage Taxes 1,700,000 1,582,977 (117,023) (7)
The improving economy, combined with the receipt of one-time arrears payments, produced the above noted surplus in sales taxes. This surplus was almost entirely offset by the shortfalls in the other noted revenue categories. Reduced staffing in the Police Department and Buildings Bureau contributed to a reduction in the number of parking and property violations issued and the consequent variance in revenue shown above. The shortfalls indicated for Federal Aid and State Grants were simply timing issues: grants awarded primarily for police and fire projects were appropriated but not fully expended in FY 2012. Remaining unexpended balances will be reappropriated in the subsequent year. Mortgage tax receipts fell short of the original budget estimate due to the continued sluggish housing market.
General Fund expenditures, including transfers to other funds, were $1.5 million, or 1.3%, less than the final budget. Major savings can be seen as follows:
Variance Expense Item Final Budget Actual Amount Percentage
Federal and State Grants $ 3,235,292 $ 2,731,303 $ 503,989 16 % Snow Removal 736,510 371,065 365,445 50 Electrical Costs 1,809,421 1,521,160 288,261 16 Health Insurance 13,585,987 13,308,801 277,186 2
The variance noted for federal and state grants is a timing issue and is the expense offset to the revenue shortfall shown on the preceding table. Due to the relatively mild winter season, snow removal costs totaled about one-half of the budgeted amount. A recalculation of electrical rates charged by the New York State Power Authority resulting from our conversion to LED fixtures on traffic signals produced the savings noted above. Final health insurance premium rates established by the New York State Department of Civil Service for Medicare-eligible retirees were slightly less than the estimates utilized in the adopted budget and resulted in the savings shown above.
Capital Asset and Debt Administration
Capital Assets. At December 31, 2012, the City's investment in capital assets, net of accumulated depreciation for its governmental and business-type activities totaled $192.2 million a decrease of $4.8 million from the prior fiscal year. The City's investment in capital assets includes land, buildings, improvements other than buildings, machinery and equipment, infrastructure and construction in progress. Major capital activities during the 2012 fiscal year included:
14 • Depreciation expense of $9.05 million charged against buildings, improvements other than buildings, machinery and equipment and infrastructure. • Improvements to City Park athletic fields from County Legacy grant funds ($4.5 million). • The replacement of LED lights throughout the City ($1.2 million). • Reclassification of $3.6 million from construction in progress to expense for the streetscaping of North Avenue.
Capital Assets (Net of Depreciation) (in thousands)
Governmental Business-type Activities Activities Total 2012 2011 2012 2011 2012 2011
Land $ 51,530 $ 49,114 $ 5,870 $ 5,870 $ 57,400 $ 54,984 Buildings 22,271 22,225 33,481 33,277 55,752 55,502 Improvements Other than Buildings 12,673 6,926 313 1,672 12,986 8,598 Machinery & Equipment 5,063 6,567 404 587 5,467 7,154 Infrastructure 59,248 61,790 59,248 61,790 Construction-in-Progress 1,336 9,012 1,336 9,012
Total $ 152,121 $ 155,634 $ 40,068 $ 41,406 $ 192,189 $ 197,040
Additional information on the City's capital assets can be found in Note 3 of this report.
Long-term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $76,530,000, a decrease of $6,435,000 over the prior year. The City also had outstanding bond anticipation notes (BANS) of $5,971,000 at year-end, an increase of $1,302,000 over the prior year. Under New York State law, both the bonds and notes are backed by the full faith and credit of the City.
During the year, the City renewed maturing BANS of $3,561,000 and issued new BANS of $2,410,000. The proceeds of these issues were used to fund, among other projects, the purchase of Public Works vehicles; the purchase of a Fire Department engine truck; sanitary storm drain and sewer improvements; the removal and replacement of underground tanks; and the payment of tax certiorari judgments.
Through sound financial management, effective budgetary controls and manageable debt levels, the City has been successful in maintaining its high-grade rating for its general obligation bonds. The City is currently rated Aa3 by Moody's Investors Services.
The New York State Constitution limits the amount of indebtedness, both long-term and short-term, which the City may incur. The State Constitution provides that the City may not contract indebtedness in an amount greater than seven percent of the average full value of taxable real property in the City for the most recent five years. Certain indebtedness is excluded in determining the City's authority to contract indebtedness within the constitutional limits; accordingly, debt of this kind, commonly referred to as "excluded debt", may be issued without regard to the constitutional limits and without affecting the City's authority to issue debt subject to the limit. At December 31, 2012, the City of New Rochelle had used $80,856,000, or 10.7%, of the constitutional debt limit, leaving $675,086,646 remaining to be used.
15 Additional information on the City's long-term debt can be found in Note 3 of this report.
Economic Factors and Fiscal Year 2013 BUdgets
While we have seen sparks of intermittent light, the economic recession continues to take its toll on the finances of all municipalities throughout the United States. Revenue growth for the most part is stagnant while expenses, compounded by mandates imposed by the state government that are largely out the control of local officials, are rising at a rate far in excess of that of revenues.
The challenge facing the City in FY 2013 and beyond rests in formulating a financial plan that ensures the City's future fiscal viability at a cost that does not place an onerous burden on our taxpayers and preserves the delivery of our core services. Accordingly, the FY 2013 budget included:
•A property tax levy increase of 5.98%, which necessitated the City Council's approval of an override to the State's tax cap restriction;
•A capital projects budget of $4.3 million, financed by a combination of property taxes, federal and state grants, enterprise and trust funds, cable television franchise agreements and general obligation bonds;
• Maintaining the workforce at FY 2012 levels, following the reduction of 84 positions, or 13% of the FY 2010 workforce, over the three previous years;
• Aggressively negotiating collective bargaining agreements in the same vein that produced a favorable CSEA settlement in 2012;
• Deferring many capital expenditures and other non-essential programs and services in order to minimize the property tax rate increase;
• Modestly increasing business-type user charges to ensure the profitability of those operations; and
• Conservatively estimating economic-sensitive revenues (sales taxes, building permits, mortgage taxes) to reflect the current and near-term state of the economy.
According to the New York State Department of Labor, the annual average unemployment rate for New Rochelle was 8.2% for 2012, an increase from the 7.8% rate in 2011. The 2012 figure is less than the statewide annual average rate of 8.5% while the national annual average rate was at a lower rate of 8.1 %. The 1.97% increase in the Consumer Price Index, not seasonally adjusted, for the area (New York, Northern-New Jersey, Long Island, NY-NJ-CT-PA) from 2011 to 2012 was lower than the increase recorded for the All Urban Consumers U.S. city average of 2.07% for the same period.
Data compiled by the U.S. Census Bureau shows that the wealth indicators for City residents generally compare favorably to State and national indicators. The City's median household income for 2011 was $67,171, while New York State's median household income was $56,951. The median household income for the nation as a whole was $52,762.
All of these factors were considered in preparing the City budget for the 2013 fiscal year.
16 Requests for Information
This financial report is designed to provide a general overview of the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Howard Rattner, Commissioner of Finance, City of New Rochelle Finance Department, 515 North Avenue, New Rochelle, New York 10801, telephone (914) 654-2063, or visit the City's web site at www.newrochelleny.com.
17 (This page intentionally left blank) BASIC FINANCIAL STATEMENTS (This page intentionally left blank) City of New Rochelle, New York
Statement of Net Position December 31, 2012
Primary Component Government Unit Industrial Governmental Business-type Development Activities Activities Total Agency ASSETS Cash and equivalents $ 10,970,815 $ 7,324 $ 10,978,139 $ 231,477 Investments 12,014,183 12,014,183 Receivables Taxes receivable, net 6,951,926 6,951,926 Accounts 5,046,874 10,559 5,057,433 8,750 State and Federal aid 6,908,763 6,908,763 Due from other governments 259,483 259,483 Loans 238,242 238,242 Prepaid expenses 3,623,393 3,623,393 615 Inventories 263,568 263,568 Deferred charges 424,431 424,431 Internal balances (5,256,291 ) 5,256,291 Capital assets Not being depreciated 52,866,467 5,869,846 58,736,313 Being depreciated, net 99,254,935 34,197,686 133,452,621
Total Assets 193,566,789 45,341,706 238,908,495 240,842
LIABILITIES Accounts payable 6,364,062 212,308 6,576,370 15,000 Accrued liabilities 1,999,727 60,000 2,059,727 Retained percentages payable 330,190 330,190 Due to school district 4,086,926 4,086,926 Due to other governments 3,312 3,312 Accrued interest payable 972,208 170,862 1,143,070 Unearned revenues 864,234 799,418 1,663,652 2,333 Bond anticipation notes payable 3,651,000 3,651,000 Non current liabilities Due within one year 8,548,549 1,760,402 10,308,951 Due in more than one year: 111,231,297 18,598,345 129,829,642
Total Liabilities 138,051,505 21,601,335 159,652,840 17,333
NET POSITION Net investment in capital assets 119,907,525 19,708,785 139,616,310 Restricted for Capital projects 927,341 927,341 General liability 586,791 586,791 Community Development 238,242 238,242 Section 8 Housing Assistance 1,122,531 1,122,531 Special Purpose 668,884 668,884 Debt service 5,435,761 5,435,761 Capital improvements 1,255,701 1,255,701 Unrestricted (73,371,791 ) 2,775,885 (70,595,906) 223,509
Total Net Position $ 55,515,284 $ 23,740,371 $ 79,255,655 $ 223,509
The notes to the financial statements are an integral part of this statement.
18 City of New Rochelle, New York
Statement of Activities Year Ended December 31,2012
Program Revenues Operating Capital Charges for Grants and Grants and Functions/ Programs Expenses Services Contributions Contributions Primary government Governmental activities General government support $ 18,094,901 $ 1,834,421 $ 255,918 $ 80,000 Public safety 71,573,690 2,810,497 3,642,743 277,709 Transportation 9,253,671 495,000 253,254 2,250,684 Economic opportunity and development 13,668,496 219,518 11,983,526 Culture and recreation 5,956,887 694,363 265,103 4,626,471 Home and community services 19,144,141 7,559,834 1,033,740 835,404 Interest 2,899,533 21,230
Total Governmental Activities 140,591,319 13,613,633 17,434,284 8,091,498
Business-type activities Parking Facilities Fund 4,082,457 4,237,210 Railroad Station Fund 1,417,724 1,552,170 Municipal Marina Fund 1,553,867 1,581,897
Total Business-type Activities 7,054,048 7,371,277
Total Primary Government $ 147,645,367 $ 20,984,910 $ 17,434,284 $ 8,091,498
Component unit Industrial Development Agency $ 117,121 $ 90,924 $ $
General revenues Real property taxes Other tax items Interest and penalties - Taxes Payments in lieu of taxes Non-property taxes Utilities gross receipts taxes Franchise fees Hotel occupancy tax Sales taxes Unrestricted use of money and property Sale of property and compensation for loss Unrestricted State aid Miscellaneous Sale of real property Insurance recoveries Transfers
Total General Revenues
Change in Net Position
Net Position - Beginning
Net Position - End of Year
The notes to the financial statements are an integral part of this statement.
19 Net (Expense) Revenue and Changes in Net Assets Primary Government Component Unit Industrial Governmental Business-type Development Activities Activities Total Agency
$ (15,924,562) $ $ (15,924,562) $ (64,842,741 ) (64,842,741) (6,254,733) (6,254,733)
(1,465,452) (1,465,452) (370,950) (370,950)
(9,715,163) (9,715,163) (2,878,303) (2,878,303)
(101,451,904) (101,451,904)
154,753 154,753 134,446 134,446 28,030 28,030
317,229 317,229
(101,451,904) 317,229 (101,134,675)
(26,197)
50,606,101 50,606,101
1,199,304 1,199,304 1,028,793 1,028,793
1,282,736 1,282,736 1,476,598 1,476,598 290,598 290,598 25,444,381 25,444,381 135,766 11,645 147,411 267 92,002 92,002 7,745,904 7,745,904 588,755 588,755 677,305 677,305 60,333 60,333 (700,000) 700,000
89,928,576 711,645 90,640,221 267
(11,523,328) 1,028,874 (10,494,454) (25,930)
67,038,612 22,711,497 89,750,109 249,439
$ 55,515,284 $ 23,740,371 $ 79,255,655 $ 223,509
20 City of New Rochelle, New York
Balance Sheet Governmental Funds December 31,2012
Capital Debt General Projects Service ASSETS Cash and equivalents $ 10,121,782 $ $
Investments 3,862,505 3,093,751
Taxes receivable, net of allowance for uncollectible amounts 6,951,926
Other receivables Accounts 1,055,711 260,000 3,612,630 State and Federal aid 5,768,349 1,005,783 Due from other governments 259,483 Loans Due from other funds 2,774,790
7,083,543 4,040,573 3,612,630
Prepaid expenditures 3,623,393
Inventories 13,679
Total Assets $ 31,656,828 $ 4,040,573 $ 6,706,381
LIABILITIES AND FUND BALANCES (DEFICITS) Liabilities Accounts payable $ 4,654,188 $ 1,252,280 $ Accrued liabilities 1,999,727 Retained percentages payable 330,190 Due to school district 4,086,926 Due to other governments 3,312 Due to other funds 8,672,924 1,270,620 Unearned revenues 336,364 686,424 2,975,950 Deferred tax revenues 3,479,460 Bond anticipation notes payable 3,651,000
Total Liabilities 23,232,901 5,919,894 4,246,570
Fund balances (deficits) Nonspendable 3,637,072 60,000 Restricted 2,254,811 Committed 300,000 Assigned 1,310,739 205,000 Unassigned 3,176,116 (1,939,321)
Total Fund Balances (Deficits) 8,423,927 (1,879,321 ) 2,459,811
Total Liabilities and Fund Balances (Deficits) $ 31,656,828 $ 4,040,573 $ 6,706,381
The notes to the financial statements are an integral part of this statement.
21 Total Other Governmental Governmental Funds
$ 848,968 ....:::.$ 1;...;:0..:..:,9c..:..7-,,-,0'c.:..7.:..;50,-
6,956,256
6,951,926
26,598 4,954,939 134,631 6,908,763 259,483 238,242 238,242 943,904 3,718,694
1,343,375 16,080,121
3,623,393
13,679
$ 2,192,343 $ 44,596,125
$ 35,149 $ 5,941,617 1,999,727 330,190 4,086,926 3,312 86,091 10,029,635 306,286 4,305,024 3,479,460 3,651,000
427,526 33,826,891
3,697,072 668,884 2,923,695 300,000 1,095,933 2,611,672 1,236,795
1,764,817 10,769,234
$ 2,192,343 $ 44,596,125
22 (This page intentionally left blank) City of New Rochelle, New York
Reconciliation of Governmental Funds Balance Sheet to the Government - Wide Statement of Net Assets December 31,2012
Fund Balances - Total Governmental Funds $ 10,769,234
Amounts reported for Governmental Activities in the Statement of Net Position are Different Because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 152,076,405
Internal service funds are used by management to charge the costs of insurance and general services to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets. (692,143)
Governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Deferred charges 424,431
Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds. Real property taxes 3,479,460 long-term loans 464,840 Sale of real property 2,975,950
6,920,250
long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Accrued interest payable (972,208) Bonds payable (55,258,267) Bonds anticipation notes payable (2,320,000) Claims payable (200,000) Retirement incentives and other pension obligations (2,026,967) Compensated absences (2,275,451 ) Other post employment benefit obligations payable (50,930,000)
(113,982,893)
Net Position of Governmental Activities $ 55,515,284
The notes to the financial statements are an integral part of this statement.
23 City of New Rochelle, New York
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended December 31,2012
Capital Debt General Projects Service REVENUES Real property taxes $ 50,352,438 $ $ Other tax items 2,228,097 Non-property taxes 28,494,313 Departmental income 8,929,187 Intragovernmental charges 2,567,333 Intergovernmental charges 54,964 Use of money and property 352,017 21,230 Licenses and permits 1,943,362 Fines and forfeitures 3,020,159 Sale of property and compensation for loss 92,002 State aid 8,710,855 5,544,041 Federal aid 1,766,354 1,183,272 Miscellaneous 2,099,835 1,342,955
Total Revenues 110,610,916 8,070,268 21,230
EXPENDITURES Current General government support 14,461,221 Public safety 60,243,704 Transportation 4,699,356 Economic opportunity and development 1,366,348 Culture and recreation 4,130,879 Home and community services 10,289,533 Employee benefits 6,794,936 Capital outlay 9,635,734 Debt service Principal 4,845,168 Interest 20,223 2,811,713
Total Expenditures 102,006,200 9,635,734 7,656,881
Excess (Deficiency) of Revenues Over Expenditures 8,604,716 (1,565,466) (7,635,651)
OTHER FINANCING SOURCES (USES) Sale of real property 7,843 2,257,437 Insurance recoveries 60,333 Bond anticipation notes issued 800,000 Transfers in 1,672,451 927,020 6,556,932 Transfers out (8,183,952) (24,476) (1,487,975)
Total Other Financing Sources (Uses) (5,643,325) 902,544 7,326,394
Net Change in Fund Balances 2,961,391 (662,922) (309,257)
Fund Balances (Deficits) - Beginning of Year 5,462,536 (1,216,399) 2,769,068 Fund Balances (Deficits) - End of Year $ 8,423,927 $ (1,879,321) $ 2,459,811
The notes to the financial statements are an integral part of this statement.
24 Total Other Governmental Governmental Funds
$ $ 50,352,438 2,228,097 28,494,313 8,929,187 2,567,333 54,964 1,628 374,875 1,943,362 3,020,159
92,002 14,254,896 12,413,292 15,362,918 196,514 3,639,304
12,611,434 131,313,848
14,461,221 60,243,704 4,699,356
11,455,965 12,822,313 32,858 4,163,737 1,012,462 11,301,995 6,794,936 9,635,734
4,845,168 2,831,936
12,501,285 131,800,100
110,149 (486,252)
2,265,280 60,333 800,000 9,156,403 (160,000) (9,856,403)
(160,000) 2,425,613
(49,851) 1,939,361
1,814,668 8,829,873 $ 1,764,817 $ 10,769,234
25 City of New Rochelle, New York
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended December 31, 2012
Amounts Reported for Governmental Activities in the Statement of Activities are Different Because:
Net Change in Fund Balances - Total Governmental Funds $ 1,939,361
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation expense exceeded capital outlay in the current period. This amount may be less than the total capital outlay since capital outlay includes amounts that are under the capitalization threshold or were repairs and maintenance. Capital outlay expenditures 4,040,007 Depreciation expense (7,525,844)
(3,485,837)
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Real property taxes 253,663 Sale of real property subject to mortgage and other payment provisions (1,587,975)
(1,334,312)
Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. Repayment of debt· principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. Principal paid on bonds 4,585,168 Bond anticipation notes issued (800,000) Principal paid on bond anticipation notes 260,000 Amortization of issuance costs, loss on refunding bonds and issuance premium (159,148)
3,886,020
Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Accrued interest 43,788 Claims (200,000) Retirement incentives and other pension obligations 461,756 Compensated absences (438,145) Other post employment benefit obligations (11,180,000)
(11,312,601 ) Internal service funds are used by management to charge the costs of risk and other services to individuals funds. The net revenue of certain activities of internal service funds is reported with governmental activities. (1,215,959) Change in Net Position of Governmental Activities $ (11,523,328)
The notes to the financial statements are an integral part of this statement.
26 City of New Rochelle, New York
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund Year Ended December 31, 2012
Variance with Final BUdget Original Final Positive Budget Budget Actual (Negative) REVENUES Real property taxes $ 50,330,507 $ 50,330,507 $ 50,352,438 $ 21,931 Other tax items 2,052,000 2,052,000 2,228,097 176,097 Non-property taxes 27,425,000 27,425,000 28,494,313 1,069,313 Departmental income 8,782,650 8,816,150 8,929,187 113,037 Intragovernmental charges 2,713,191 2,716,951 2,567,333 (149,618) Intergovernmental charges 40,000 40,000 54,964 14,964 Use of money and property 357,360 357,360 352,017 (5,343) Licenses and permits 1,938,550 1,938,550 1,943,362 4,812 Fines and forfeitures 3,610,000 3,610,000 3,020,159 (589,841) Sale of property and compensation for loss 60,000 60,000 92,002 32,002 State aid 8,524,506 9,134,517 8,710,855 (423,662) Federal aid 300,000 1,963,702 1,766,354 (197,348) Miscellaneous 1,957,316 2,213,782 2,099,835 (113,947)
Total Revenues 108,091,080 110,658,519 110,610,916 (47,603)
EXPENDITURES Current General government support 14,710,982 15,647,896 14,461,221 1,186,675 Public safety 58,095,064 59,260,227 60,243,704 (983,477) Transportation 5,317,803 5,131,217 4,699,356 431,861 Economic opportunity and development 1,407,671 1,408,816 1,366,348 42,468 Culture and recreation 4,061,508 4,535,253 4,130,879 404,374 Home and community services 9,766,793 10,715,117 10,289,533 425,584 Employee benefits 6,738,579 6,763,579 6,794,936 (31,357) Debt service Principal 182,600 Interest 111,523 20,223 20,223
Total Expenditures 100,392,523 103,482,328 102,006,200 1,476,128
Excess of Revenues Over Expenditures 7,698,557 7,176,191 8,604,716 1,428,525
OTHER FINANCING SOURCES (USES) Sale of real property 7,843 7,843 New York State loan issued 414,166 Bond anticipation notes issued 800,000 800,000 800,000 Insurance recoveries 25,000 25,000 60,333 35,333 Transfers in 1,578,000 1,648,000 1,672,451 24,451 Transfers out (8,104,932) (8,183,952) (8,183,952)
Total Other Financing Uses (5,287,766) (5,710,952) (5,643,325) 67,627
Net Change in Fund Balance 2,410,791 1,465,239 2,961,391 1,496,152
Fund Balance (Deficit)- Beginning of Year (2,410,791) (1,465,239) 5,462,536 6,927,775
Fund Balance - End of Year $ $ $ 8,423,927 $ 8,423,927
The notes to the financial statements are an integral part of this statement. 27 City of New Rochelle, New York
Statement of Net Position Proprietary Funds December 31, 2012
Business-type Activities - Enterprise Funds
Parking Railroad Municipal Facilities Station Marina Totals ASSETS Current assets Cash and equivalents $ 7,224 $ $ 100 $ 7,324 Investments Receivables Accounts 756 9,803 10,559 Due from other funds 2,468,174 2,465,003 323,114 5,256,291 Inventories
Total Current Assets 2,476,154 2,474,806 323,214 5,274,174
Noncurrent assets Capital assets Not being depreciated 2,736,206 3,079,603 54,037 5,869,846 Being depreciated, net 17,558,314 14,966,723 1,672,649 34,197,686
Total Noncurrent Assets 20,294,520 18,046,326 1,726,686 40,067,532
Total Assets 22,770,674 20,521,132 2,049,900 45,341,706
LIABILITIES Current liabilities· Accounts payable 125,320 53,263 33,725 212,308 Accrued liabilities 60,000 60,000 Accrued interest payable 138,295 22,728 9,839 170,862 Due to other funds Unearned revenues 292,753 506,665 799,418
Total Current Liabilities 616,368 582,656 43,564 1,242,588
Noncurrent liabilities Due within one year 1,455,500 140,000 164,902 1,760,402 Due in more than one year 16,213,442 1,795,000 589,903 18,598,345
Total Noncurrent Liabilities 17,668,942 1,935,000 754,805 20,358,747
Total Liabilities 18,285,310 2,517,656 798,369 21,601,335
NET POSITION Net investment in capital assets 2,625,578 16,111,326 971,881 19,708,785 Restricted for Capital Improvements 1,255,701 1,255,701 Unrestricted 604,085 1,892,150 279,650 2,775,885
Total Net Position $ 4,485,364 $ 18,003,476 $ 1,251,531 $ 23,740,371
The notes to the financial statements are an integral part of this statement.
28 Governmental Activities Internal Service Funds
$ 65 5,057,927
91,935 2,371,602 249,889
7,771,418
44,997
44,997
7,816,415
422,445
1,316,952
1,739,397
677,000 6,092,161
6,769,161
8,508,558
44,997
(737,140)
$ (692,143)
29 City of New Rochelle, New York
Statement of Revenues, Expenses and Changes in Net Assets Proprietary Funds Year Ended December 31,2012
Business-type Activities - Enterprise Funds
Parking Railroad Municipal Facilities Station Marina Totals OPERATING REVENUES Charges for services $ 4,237,210 $ 1,552,170 $ 1,581,897 $ 7,371,277 Insurance recoveries
Total Operating Revenues 4,237,210 1,552,170 1,581,897 7,371,277
OPERATING EXPENSES Supplies Insurance Contractual 2,156,867 666,471 865,448 3,688,786 Employee benefits Judgments and claims Fees for services 358,916 154,664 528,049 1,041,629 Depreciation 875,056 517,824 129,071 1,521,951
Total Operating Expenses 3,390,839 1,338,959 1,522,568 6,252,366
Income (Loss) from Operations 846,371 213,211 59,329 1,118,911
NON-OPERATING REVENUES (EXPENSES) Interest income 4,941 3,462 3,242 11,645 Interest expense (691,618) (78,765) (31,299) (801,682)
Total Non-Operating Revenues (Expenses) (686,677) (75,303) (28,057) (790,037)
Income (Loss) Before Transfers 159,694 137,908 31,272 328,874
TRANSFERS Transfers in 700,000 700,000 Transfers out
Total Transfers 700,000 700,000
Change in Net Position 859,694 137,908 31,272 1,028,874
Net Position - Beginning of Year 3,625,670 17,865,568 1,220,259 22,711,497
Net Position - End of Year $ 4,485,364 $ 18,003,476 $ 1,251,531 $ 23,740,371
The notes to the financial statements are an integral part of this statement.
30 Governmental Activities Internal Service Funds
$ 4,574,154 31,965
4,606,119
1,157,755 725,417 189,307 1,923,242 300,448 1,529,561 26,523
5,852,253
(1,246,134)
30,175
30,175
(1,215,959)
1,500,000 (1,500,000)
(1,215,959)
523,816
$ (692,143)
31 City of New Rochelle, New York
Statement of Cash Flows Proprietary Funds Year Ended December 31, 2012
Business-type Activities - Enterprise Funds
Parking Railroad Municipal Facilities Station Marina Totals CASH FLOWS FROM OPERATING ACTIVITIES Cash received from charges for services $ 4,466,103 $ 1,027,394 $ 1,594,803 $ 7,088,300 Cash received from insurance recoveries Cash payments to other funds for reimbursement of operating transactions Cash payments to insurance carriers and claimants Cash payments for fees for services (358,916) (154,664) (528,049) (1,041,629) Cash payments to vendors (2,392,836) (660,567) (851,443) (3,904,846)
Net Cash from Operating Activities 1,714,351 212,163 215,311 2,141,825
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers in 700,000 700,000 Transfers out
Net Cash from Non-Capital Financing Activities 700,000 700,000
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal paid on bonds (1,530,028) (135,000) (184,804) (1,849,832) Acquisition and construction of capital assets (183,497) (183,497) Interest paid on bonds (705,767) (80,625) (33,749) (820,141)
Net Cash from Capital and Related Financing Activities (2,419,292) . (215,625) (218,553) (2,853,470)
CASH FLOWS FROM INVESTING ACTIVITIES Sale of investments Purchase of investments Interest income 4,941 3,462 3,242 11,645
Net Cash from Investing Activities 4,941 3,462 3,242 11,645
Net Change in Cash and Equivalents
Cash and Equivalents - Beginning of Year 7,224 100 7,324
Cash and Equivalents - End of Year $ 7,224 $ $ 100 $ 7,324
Reconciliation of Income (Loss) from Operations to Net Cash from Operating Activities Income (loss) from operations $ 846,371 $ 213,211 $ 59,329 $ 1,118,911 Adjustments to reconcile income (loss) from operations to net cash from operating activities Depreciation 875,056 517,824 129,071 1,521,951 Changes in assets and liabilities Accounts receivable (756) (2,553) 17,601 14,292 Due from other funds 275,741 (518,838) (4,695) (247,792) Inventories Accounts payable (235,969) 5,904 14,005 (216,060) Due to other funds Unearned revenues (46,092) (3,385) (49,477) Claims payable
Net Cash from Operating Activities $ 1,714,351 $ 212,163 $ 215,311 $ 2,141,825
The notes to the financial statements are an integral part of this statement.
32 Governmental Activities Internal Service Funds
$ 6,254,089 29,770
(1,624,690) (2,011,730) (1,529,561) (1,117,878)
1,500,000 (1,500,000)
5,027,752 (5,057,927) 30,175
65
$ 65
$ (1,246,134)
26,523
1,044 (1,174,269) (29,924) 216,933 1,226,275
979,552
$
33 City of New Rochelle, New York
Statement of Assets and Liabilities Fiduciary Fund December 31,2012
Agency ASSETS Investments $ 2,250,539 Accounts receivable 2,124,373
Total Assets $ 4,374,912
LIABILITIES Employee payroll deductions $ 48,919 Deposits and overpayments 4,325,993
Total Liabilities $ 4,374,912
The notes to the financial statements are an integral part of this stat~ment.
34 City of New Rochelle, New York
Notes to Financial Statements December 31. 2012
Note 1 - Summary of Significant Accounting Policies
The City of New Rochelle, New York ("City") was incorporated in 1899 and operates in accordance with its Charter and the various other applicable laws of the State of New York. The City functions under a City Council/Manager form of government. The City Council is the legislative body responsible for overall operation. The City Manager serves as the chief executive officer and the Commissioner of Finance serves as the chief financial officer. The City provides the following services to its residents: public safety, transportation, economic opportunity and development, culture and recreation, home and community services and general and administrative support.
The accounting policies of the City conform to generally accepted accounting principles as applicable to governmental units and the Uniform System of Accounts as prescribed by the State of New York. The Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the City's more significant accounting policies:
A. Financial Reporting Entity
The financial reporting entity consists of a) the primary government, which is the City, b) organizations for which the City is financially accountable and c) other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete as set forth by GASB.
In evaluating how to define the City, for financial reporting purposes, management has considered all potential component units. The decision to include a potential component unit in the City's reporting entity was made by applying the criteria set forth by GASB, including legal standing, fiscal dependency and financial accountability. Based upon the application of these criteria, the following component units are included in the City's reporting entity because of their operational relationship with the City.
The New Rochelle Industrial Development Agency ("Agency") is a public benefit corporation created by State legislation to promote the economic welfare, recreation opportunities and prosperity of the City's inhabitants. Members of the Agency are appointed by the City Council. Agency members have complete responsibility for management of the Agency and accountability for fiscal matters. The City is not liable for Agency bonds or notes. The governing board of the Agency serves at the pleasure of the City Council and, therefore, the City is able to impose its will on the Agency. Since the Agency does not provide services entirely or almost entirely to the City, the financial statements of the Agency have been reflected as a discretely presented component unit.
Complete financial information for the Agency can be obtained from:
New Rochelle Industrial Development Agency 515 North Avenue New Rochelle, New York 10801
The New Rochelle Local Development Corporation ("Corporation") is a not-for-profit corporation created for the sole purpose of financing, constructing, leasing and subleasing a parking garage to the City. The governing body consists of the Mayor, the City Manager, two members of the Board
35 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31! 2012
Note 1 - Summary of Significant Accounting Policies (Continued)
of the Industrial Development Agency and a fifth member chosen by the governing board of the Corporation. The City is considered able to impose its will on the Corporation. The financial statements of the Corporation have been reflected as a discretely presented component unit. Separate financial statements have not been prepared for the Corporation. As of December 31, 2012, the Corporation is financially inactive and has no assets, liabilities or net assets.
The following organizations are related to the City:
The New Rochelle Neighborhood Revitalization Corporation is a not-for-profit organization. The Corporation was organized to rehabilitate and develop affordable housing for low-income residents in designated areas.
The New Rochelle Municipal Housing Authority was created, under the Federal Housing Act of 1936, to manage public housing projects in the City for low income families and senior citizens.
B. Government-Wide Financial Statements
The government-wide financial statements (Le., the Statement of Net Position and the Statement of Activities) report information on all non-fiduciary activities of the primary government as a whole. For the most part, the effect of interfund activity has been removed from these statements, except for interfund services provided and used. 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 Net Position presents the financial position of the City at the end of its fiscal year. The Statement of Activities demonstrates the degree to which direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use or directly benefit from goods or services, or privileges provided by a given function or segment, (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment and (3) interest earned on grants that is required to be used to support a particular program. Taxes and other items not identified as program revenues are reported as general revenues. The City does not allocate indirect expenses to functions in the Statement of Activities.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services in connection with a proprietary fund's principal ongoing operation. The principal operating revenues of the Enterprise Funds and the Internal Service Funds are charges to customers for services. Operating expenses for the Enterprise Funds and the Internal Service Funds include the cost of services, administrative expenses, depreciation costs and benefit costs. All revenues and expenses not meeting the definition are reported as non-operating revenues and expenses.
36 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31,2012
Note 1 - Summary of Significant Accounting Policies (Continued)
C. Fund Financial Statements
The accounts of the City are organized and operated on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts which comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund balances/net position, revenues and expenditures/expenses. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance related legal and contractual provisions. The City maintains the minimum number of funds consistent with legal and managerial requirements. The focus of governmental fund financial statements is on major funds as that term is defined in professional pronouncements. Each major fund is to be presented in a separate column, with non-major funds, if any, aggregated and presented in a single column. The City maintains proprietary and fiduciary funds, which are reported by type. Since the governmental fund statements are presented on a different measurement focus and basis of accounting than the government-wide statements' governmental activities column, a reconciliation is presented on the page following, which briefly explains the adjustments necessary to transform the fund based financial statements into the governmental activities column of the government-wide presentation. The City's resources are reflected in the fund financial statements in three broad fund categories, in accordance with generally accepted accounting principles as follows:
Fund Categories
a. Governmental Funds - Governmental Funds are those through which most general government functions are financed. The acquisition, use and balances of expendable financial resources and the related liabilities are accounted for through governmental funds. The following are the City's major governmental funds:
General Fund - The General Fund constitutes the primary fund of the City and is used to account for and report all financial resources not accounted for and reported in another fund.
Capital Projects Fund - The Capital Projects Fund is used to account for and report financial resources that are restricted, committed or assigned for capital outlay, including the acquisition or construction of major capital facilities and other capital assets, other than those financed by proprietary funds.
Debt Service Fund - The Debt Service Fund is provided to account for and report financial resources that are restricted, committed or assigned to expenditures for principal and interest and for financial resources that are being accumulated for principal and interest maturing in future years.
The City also reports the following non-major governmental funds.
Special Revenue Funds - Special revenue funds are established to account for the proceeds of specific revenue sources that are restricted, committed or assigned to expenditures for specified purposes other than debt service or capital projects. The Special Revenue Funds of the City are as follows:
Community Development and Section 8 Housing Assistance Funds - The Community Development and Section 8 Housing Assistance Funds are used
37 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31. 2012
Note 1 - Summary of Significant Accounting Policies (Continued)
to account for projects and subsidies financed by entitlements from the United States Department of Housing and Urban Development.
Special Purpose Fund - The Special Purpose Fund is used to account for assets held by the City in accordance with the terms of a trust agreement.
b. Proprietary Funds - Proprietary funds include enterprise and internal service funds. Enterprise funds are used to account for operations that are financed and operated in a manner similar to private enterprises or where the governing body has decided that periodic determination of revenues earned, expenses incurred and/or net income is necessary for management accountability. Enterprise funds are used to account for those operations that provide services to the public. Internal service funds account for operations that provide services to other departments or agencies of the government, or to other governments, on a cost reimbursement basis. The operations of the Parking Facilities, Municipal Marina and Railroad Station are recorded as major enterprise funds. The City has established its Workers' Compensation Benefits, General Liability Claims and Central Garage funds as internal service funds. The City applies all applicable Financial Accounting Standards Board (UFASB") guidance issued after November 30, 1989 in accounting and reporting for its enterprise operations.
c. Fiduciary Funds (Not Included in Government-Wide Financial Statements) - The Fiduciary Funds are used to account for assets held by the City in an agency capacity on behalf of others. The City's Agency Fund is primarily utilized to account for employee payroll tax withholdings and various deposits that are payable to other jurisdictions or individuals.
D. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources (current assets less current liabilities) or economic resources (all assets and liabilities). The basis of accounting indicates the timing o,f transactions or events for recognition in the financial statements.
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the Proprietary Funds. The Agency Fund has no measurement focus but utilizes the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. Property taxes are considered to be available if collected within sixty days of the
38 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31 ,2012
Note 1 - Summary of Significant Accounting Policies (Continued)
fiscal year end. A ninety day availability period is used for revenue recognition for all other governmental fund revenues. Property taxes associated with the current fiscal period as well as charges for services and intergovernmental revenues are considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Fees and other similar revenues are not susceptible to accrual because generally they are not measurable until received in cash. If expenditures are the prime factor for determining eligibility, revenues from Federal and State grants are accrued when the expenditure is made. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, post employment benefit obligations, certain pension costs and certain claims are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources.
Component Units
The component units are presented on the basis of accounting that most accurately reflect their activities. The Agency and Corporation are accounted for on the flow of economic resources measurement focus. This measurement focus emphasizes the determination of net income. With this measurement focus, all assets and liabilities (whether current or non-current) associated with the operation of these activities are included on the statement of net position. Operating statements present increases (revenues) and decreases (expenses) in net total position. The Agency and Corporation are accounted for on the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded at the time liabilities are incurred. The Agency and Corporation apply all applicable FASS guidance issued after November 30, 1989 in accounting and reporting for their operations.
E. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balances
Deposits, Investments and Risk Disclosure
Cash and Equivalents - Cash and equivalents consist of funds deposited in demand deposit accounts, time deposit accounts and certificates of deposit with original maturities of less than three months.
The City's investment policies are governed by State statutes. The City has adopted its own written investment policy which provides for the deposit of funds in FDIC insured commercial banks or trust companies located within the State. The City is authorized to use demand deposit accounts, time deposit accounts and certificates of deposit. Permissible investments include obligations of the U.S. Treasury, U.S. Agencies, repurchase agreements and obligations of New York State or its political subdivisions.
Collateral is required for demand deposit accounts, time deposit accounts and certificates of deposit at 102% of all deposits not covered by Federal deposit insurance. The City has entered into custodial agreements with the various banks which hold their deposits. These agreements authorize the obligations that may be pledged as collateral. Such obligations include, among other instruments, obligations of the United States and its agencies and obligations of the State and its municipal and school district subdivisions.
39 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31, 2012
Note 1 - Summary of Significant Accounting Policies (Continued)
Custodial credit risk is the risk that in the event of a bank failure, the City's deposits may not be returned to it. GASB Statement No, 40 directs that deposits be disclosed as exposed to custodial credit risk if they are not covered by depository insurance and the deposits are either uncollateralized, collateralized by securities held by the pledging financial institution or collateralized by securities held by the pledging financial institution's trust department but not in the City's name. The City's aggregate bank balances that were not covered by depository insurance were not exposed to custodial credit risk at December 31,2012.
Investment Pool - The City participates in the Cooperative Liquid Assets Securities System ("CLASS"), a cooperative investment pool established pursuant to General Municipal Law that meets the definition of a 2a7-like pool. In accordance with the provisions of General Municipal Law, Article 3A, CLASS has designated Cutwater Asset Management, a wholly owned subsidiary of MBIA, Inc. as its registered investment advisor. MBIA, Inc. is registered with the Securities and Exchange Commission ("SEC"), and is subject to all of the rules and regulations of an investment advisor handling public funds. As such, the SEC provides regulatory oversight of CLASS.
The pool is authorized to invest in various securities issued by the United States and its agencies. The amount reported represents the amortized cost of the cooperative shares and is considered to approximate fair value. The City's position in the pool is equal to the value of the pool shares. Additional information concerning the cooperative is presented in the annual report of CLASS, which may be obtained from MBIA Municipal Investors Service Corporation, 113 King Street, Armonk, NY 10504.
CLASS is rated AAAm by Standard & Poor's Ratings. Local government investment cooperatives in this rating category meet the highest standards for credit quality, conservative investment policies and safety of principal. The cooperative invests in a high quality portfolio of investments legally permissible for municipalities and school districts in the State.
The City was invested only in the above mentioned obligations and, accordingly, was not exposed to any interest rate or credit risk.
Taxes Receivable - Real property taxes attach as an enforceable lien on real property and are levied on January 1st. The City collects City taxes in one installment, in January, and the taxes are payable without penalty until the end of the month. County taxes are due June 1st and are payable th without penalty until June 30 . City School District taxes attach as an enforceable lien on July 1st. School district taxes for the period July 1st to June 30th are due on October 1st, with the first half pa~able without penalty until October 31 st and the second half payable without penalty until April 30 . The City guarantees the full payment of the County and School District warrants and assumes responsibility for uncollected taxes. The City also has the responsibility for conducting in-rem foreclosure proceedings.
The City functions in both a fiduciary and guarantor relationship with the County of Westchester and the City School District of New Rochelle with respect to the collection and payment of real property taxes levied by such jurisdictions. The County Charter provides for the City to collect County and School District taxes and remit them as collected to the respective municipality. However, the City must remit to the County sixty percent of the amount levied by May 25th and the
40 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31 ,2012
Note 1 - Summary of Significant Accounting Policies (Continued)
balance of forty percent on October 15th. With respect to school district taxes, New York State law provides that the City satisfy the warrant of the School District by May 20th of the second year after the fiscal year for which such taxes were levied. Thus, the City's fiduciary responsibility for school district taxes is from the date of the levy until two years after said date, at which time the City must satisfy its obligations to the City School District, regardless of the amounts collected. Since the County tax warrant must be paid in full by October, uncollected County taxes have been accounted for in a manner similar to City taxes. The collection of school district taxes is deemed a financing transaction until the warrants are satisfied.
Other Receivables - Other receivables include amounts due from other governments and individuals for services provided by the City. Receivables are recorded and revenues recognized as earned or as specific program expenditures/expenses are incurred. Allowances are recorded when appropriate.
Loans Receivable - Loans receivable consist of residential and commercial loans made by the City through the Community Development Fund. The loans have various interest rates and maturities.
Due FromlTo Other Funds - During the course of its operations, the City has numerous transactions between funds to finance operations, provide services and construct assets. To the extent that certain transactions between funds had not been paid or received as of December 31 , 2012, balances of interfund amounts receivable or payable have been recorded in the fund financial statements. Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as internal balances.
Prepaid Expenses/Expenditures - Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items using the consumption method in both the government-wide and fund financial statements. Prepaid expenses/expenditures consist of employee retirement, health insurance and other costs, which have been satisfied prior to the end of the fiscal year, but represent items which have been provided for in the subsequent year's budget and will benefit such periods. Reported amounts in governmental funds are equally offset by nonspendable fund balance in the fund financial statements, which indicates that these amounts do not constitute "available spendable resources" even though they are a component of current assets.
Inventories - Inventories in the General Fund and the Central Garage Internal Service Fund are valued at cost on a first-in, first-out basis, and consist of certain expendable supplies held for consumption. The cost is recorded as inventory at the time individual items are purchased. The City uses the consumption method to relieve inventory. In the fund financial statements, reported amounts are equally offset by a reservation of fund balance in governmental funds, which indicates that they do not constitute "available spendable resources" even though they are a component of current assets. Purchases of other inventoriable items are recorded as expenditures/expenses at the time of purchase and year-end balances are not material.
Deferred Charges - Deferred charges in government-wide financial statements represent the unamortized portion of the cost of issuance of bonds. These costs are being amortized over the term of the respective bond issue.
41 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31, 2012
Note 1 - Summary of Significant Accounting Policies (Continued)
Capital Assets - Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks and similar items) are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at the estimated fair market value at the date of donation.
In the case of the initial capitalization of general infrastructure assets (Le., those reported by governmental activities), the City chose to include all such items regardless of their acquisition date or amount. The City was able to estimate the historical cost for the initial reporting of these assets through backtrending (Le., estimating the current replacement cost of the infrastructure to be capitalized and used an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition year).
Major outlays for capital assets and improvements are capitalized as projects are constructed. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives is not capitalized.
Land and construction-in-progress are not depreciated. Property, plant, equipment and infrastructure of the City are depreciated using the straight line method over the following estimated useful lives.
Life Class in Years
Buildings 40 Improvements other than buildings 15 Machinery and equipment 5 Infrastructure 20 - 50
The costs associated with the acquisition or construction of capital assets are shown as capital outlay expenditures on the governmental fund financial statements. Capital assets are not shown on the governmental fund balance sheet.
Unearned Revenues - Unearned revenues arise when assets are recognized before revenue recognition criteria has been satisfied. In government-wide financial statements, unearned revenues consist of revenue received in advance and/or amounts from grants received before the eligibility requirements have been met.
Unearned revenues in the fund financial statements are those where asset recognition criteria have been met, but for which revenue recognition criteria have not been met. The City has reported unearned revenues of $3,479,460 for real property taxes and $336,364 for fees received in advance in the General Fund, $686,424 and $2,975,950 for various amounts not available for expenditure in the current year in the Capital Projects Fund and Debt Service Fund, respectively, $279,688 and $26,598 for loans and amounts received in advance in the Community Development and Section 8 Housing Assistance funds, respectively, $292,753 for parking permit fees received in advance by the Parking Facilities Enterprise Fund and $506,665 for fees received in advance in the
42 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31! 2012
Note 1 - Summary of Significant Accounting Policies (Continued)
Railroad Station Enterprise Fund. Such amounts have been deemed to be measurable but not "available" pursuant to generally accepted accounting principles.
Deferred Outflows/Inflows of Resources - In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time.
As of December 31, 2012, no amounts were required to be reported as deferred outflows/inflows of resources.
Long-Term Liabilities - In the government-wide and proprietary fund financial statements, long term debt and other long-term obligations are reported as liabilities in the Statement of Net Position. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are amortized over the term of the related debt.
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 the 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 Capital Projects or Debt Service funds expenditures.
Compensated Absences - The various collective bargaining agreements provide for the payment of accumulated vacation leave upon separation from service. The liability for such accumulated leave is reflected in the government-wide financial statements as current and long term liabilities. A liability for these amounts is reported in the governmental funds only if the liability has matured through employee resignation or retirement. The liability for compensated absences includes salary related payments, where applicable.
Net Position - Net position represent the difference between assets and liabilities. Net position is reported as restricted when there are limitations imposed on its use either through the enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. Net position on the Statement of Net Position include, net investment in capital assets, restricted for capital projects, general liability, community development, Section 8 Housing assistance, special purpose, debt service and capital improvements. The balance is classified as unrestricted.
Fund Balance - Generally, fund balance represents the difference between current assets and current liabilities. In the fund financial statements, governmental funds report fund classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor
43 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31, 2012
Note 1 - Summary of Significant Accounting Policies (Continued)
constraints on the specific purposes for which amounts in those funds can be spent. Under this standard the fund balance classifications are as follows:
Nonspendable fund balance includes amounts that cannot be spent because they are either not in spendable form (inventories, prepaid amounts, long-term receivables, advances) or they are legally or contractually required to be maintained intact (the corpus of a permanent fund).
Restricted fund balance is to be reported when constraints placed on the use of the resources are imposed by grantors, contributors, laws or regUlations of other governments or imposed by law through enabling legislation. Enabling legislation includes a legally enforceable requirement that these resources be used only for the specific purposes as provided in the legislation. This fund balance classification will be used to report funds that are restricted for debt service obligations and for other items contained in General Municipal Law of the State of New York.
Committed fund balance will be reported for amounts that can only be used for specific purposes pursuant to formal action of the entity's highest level of decision making authority. The City Council is the highest level of decision making authority for the City that can, by the adoption of a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, these funds may only be used for the purpose specified unless the City removes or changes the purpose by taking the same action that was used to establish the commitment. This classification includes certain amounts established and approved by the City Council.
Assigned fund balance, in the General Fund, will represent amounts constrained either by the City Council for amounts balancing the subsequent year's budget or the Commissioner of Finance for amounts assigned for encumbrances. An assignment cannot result in a deficit in the unassigned fund balance in the General Fund. Assigned fund balance in all other governmental funds represents any positive remaining amount after classifying nonspendable, restricted or committed fund balance amounts.
Unassigned fund balance, in the General Fund, represents amounts not classified as nonspendable, restricted, committed or assigned. The General Fund is the only fund that would report a positive amount in unassigned fund balance. For all governmental funds other than the General Fund, unassigned fund balance would necessarily be negative, since the fund's liabilities and deferred inflows of resources, together with amounts already classified as nonspendable, restricted and committed would exceed the fund's assets and deferred outflows of resources.
When both restricted and unrestricted amounts of fund balance are available for use for expenditures incurred, it is the City's policy to use restricted amounts first and then unrestricted amounts as they are needed. For unrestricted amounts of fund balance, it is the City's policy to use fund balance in the following order: committed, assigned, and unassigned.
44 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31, 2012
Note 1 - Summary of Significant Accounting Policies (Continued)
F. Encumbrances
In governmental funds, encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve applicable appropriations, is generally employed as an extension of formal budgetary integration in the General, Community Development and Section 8 Housing Assistance funds. Encumbrances outstanding at year-end are reported as assigned fund balance since they do not constitute expenditures or liabilities.
G. Use of Estimates
The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources and disclosures of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.
H. Subsequent Events Evaluation by Management
Management has evaluated subsequent events for disclosure and/or recognition in the financial statements through the date that the financial statements were available to be issued, which is June 6,2013.
Note 2 - Stewardship, Compliance and Accountability
A. Budgetary Data
The City generally follows the procedures enumerated below in establishing the budgetary data reflected in the financial statements: .
a) On or before the tenth day of November, the City Manager shall prepare and submit to the City Council a budget estimate presenting a financial plan for conducting the affairs of the City for the ensuing fiscal year.
b) Upon receipt of the Manager's budget estimates, the Council shall consider the budget and, after publication, hold a public hearing.
c) The resolution fixing the date, time and place for the public hearing may be adopted before the Manager submits the budget estimates to the Council, but the date so fixed in such resolution shall be not less than twenty days from the date of the publication of the budget estimates in the official newspaper.
45 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31,2012
Note 2 - Stewardship, Compliance and Accountability (Continued)
d) Not less than one week after the public hearing, the Council shall adopt the budget estimates as submitted or amended, which shall then become the annual budget, and shall at the same time appropriate the amounts set forth in the budget as adopted and for the purposes stated therein.
e) Formal budgetary integration is employed during the year as a management control device for General, Community Development, Section 8 Housing Assistance and Debt Service funds.
f) Budgets for General, Community Development, Section 8 Housing Assistance and Debt Service funds are legally adopted annually on a basis consistent with generally accepted accounting principles. The Capital Projects Fund is budgeted on a project basis. Annual budgets are not adopted for the Special Purpose or Proprietary funds.
g) The City Council has established legal control of the bUdget at the function level of expenditures. Transfers between appropriation accounts, at the function level, require approval by the City Council. Any modifications to appropriations resulting from an increase in revenue estimates or supplemental reserve appropriations also require a majority vote by the Council.
h) Appropriations in General, Community Development, Section 8 Housing Assistance and Debt Service funds lapse at the end of the fiscal year, except that outstanding encumbrances are reappropriated in the succeeding year pursuant to the Uniform System of Accounts promulgated by the Office of the State Comptroller.
Budgeted amounts are as originally adopted or as amended by the City Council.
B. Property Tax Limitation
The amount that may be raised by the City for real property taxes in any fiscal year, for purposes other than for debt service on City indebtedness, is limited by the Constitution of the State of New York to two percent of the five year average full valuation of taxable real estate located within the City. For 2012, the maximum amount which could have been raised was $230,479,567, which exceeded the levy by $179,899,559.
On June 24, 2011, the Governor signed Chapter 97 of the Laws of 2011 ("Tax Levy Limitation Law"). This applies to all local governments.
The Tax Levy Limitation Law restricts the amount of real property taxes that may be levied by a City in a particular year, beginning with the 2012 year. It expires on June 16, 2016.
The following is a brief summary of certain relevant provisions of the Tax Levy Limitation Law. The summary is not complete and the full text of the Tax Levy Limitation Law should be read in order to understand the details and implementations thereof.
The Tax Levy Limitation Law imposes a limitation on increases in the real property tax levy, subject to certain exceptions. The Tax Levy Limitation Law permits the City to increase its overall real property tax levy over the tax levy of the prior year by no more than the "Allowable
46 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31, 2012
Note 2 • Stewardship. Compliance and Accountability (Continued)
Levy Growth Factor," which is the lesser of one and two-one hundredths or the sum of one plus the Inflation Factor; provided, however that in no case shall the levy growth factor be less than one. The "Inflation Factor" is the quotient of: (i) the average of the National Consumer Price Indexes determined by the United States Department of Labor for the twelve-month period ending six months prior to the start of the coming fiscal year minus the average of the National Consumer Price Indexes determined by the United States Department of Labor for the twelve month period ending six months prior to the start of the prior fiscal year, divided by (ii) the average of the National Consumer Price Indexes determined by the United States with the result expressed as a decimal to four places. The City is required to calculate its tax levy limit for the upcoming year in accordance with the provision above and provide all relevant information to the New York State Comptroller prior to adopting its budget. The Tax Levy Limitation Law sets forth certain exclusions to the real property tax levy limitation of the City, including exclusions for certain portions of the expenditures for retirement system contributions and tort judgments payable by the City. The City Council may adopt a budget that exceeds the tax levy limit for the coming fiscal year, only if the City Council first enacts, by a vote of at least sixty percent of the total voting power of the City Council, a local law to override such limit for such coming fiscal year.
C. Application of Accounting Standards
For the year ended December 31, 2012, the City implemented GASB Statement No. 63, "Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position" ("GASB Statement No. 63"). This statement provides financial reporting guidance for these elements first introduced in GASB Concept Statement No.4, "Elements of Financial Statements". Previous financial reporting standards did not include guidance for reporting these financial statement elements, which are distinct from assets and liabilities.
D. Fund Deficits
The Workers' Compensation Benefits Fund has an unrestricted deficit of $1,356,512 at December 31, 2012. The City plans to address this deficit in the subsequent year.
E. Capital Projects Fund Deficit
The undesignated deficit of $1,939,321 in the Capital Projects Fund arises in-part because of the application of generally accepted accounting principles to the financial reporting of such funds. The proceeds of bond anticipation notes issued to finance construction of capital projects are not recognized as an "other financing source". Liabilities for bond anticipation notes payable are accounted for in the Capital Projects Fund. Bond anticipation notes are recognized as revenue only to the extent that they are redeemed. The deficit will be reduced and eliminated as bond anticipation notes are redeemed from interfund transfers from other governmental funds or converted to permanent financing. Other deficits, where no bond anticipation notes were issued or outstanding to the extent of the project deficit, arise because of expenditures exceeding current financing on the projects. These deficits will be eliminated with the subsequent receipt or issuance of authorized financing.
47 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31, 2012
Note 2 - Stewardship, Compliance and Accountability (Continued)
F. Excess of Actual Expenditures Over Budget
The following categories of expenditures in the General Fund exceeded their budgetary provisions by the amounts indicated:
General Government Support Taxes on City Property $ 484 Public Safety Police Department 947,300 Fire Department 224,786 Economic Opportunity and Development Business Improvement District 3,242 Home and Community Services Bureau of Forestry 94,705 Employee Benefits - Unallocated Sick leave 1,000 Retirement amortization 222,336
Note 3 - Detailed Notes on All Funds
A. Taxes Receivable
Taxes receivable at December 31, 2012 consisted of the following:
City and County taxes $ 2,950,522 School district taxes 4,387,562 Property acquired for taxes 403,658
7,741,742 Allowance for uncollectible amounts (789,816)
$ 6,951,926
School district taxes are offset by liabilities to the school district, which will be paid when the warrants are required to be satisfied, Taxes receivable in the fund financial statements are also partially offset by deferred tax revenues of $3,479,460, which represents an estimate of the taxes receivable which will not be collected within the first sixty days of the subsequent year.
B. Loans
Loans of the Community Development Fund of $238,242 consist of amounts due from homeowners for rehabilitation loans. These amounts are due upon transfer of ownership,
48 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31, 2012
Note 3 • Detailed Notes on All Funds (Continued)
C. Due FromlTo Other Funds
The balances reflected as due from/to other funds at December 31, 2012 were as follows:
Due Due Fund From To
General $ $ 8,672,924 Capital Projects 2,774,790 Debt Service 1,270,620 Non-Major Governmental 943,904 86,091 Parking Facilities 2,468,174 Railroad Station 2,465,003 Municipal Marina 323,114 Internal Service 2,371,602 1,316,952 $ 11,346,587 $ 11,346,587
The outstanding balances between funds result mainly from the time lag between the dates that 1) interfund goods and services are provided or reimbursable expenditures occur, 2) transactions are recorded in the accounting system and 3) payments between funds are made.
D. Capital Assets
Changes in the City's capital assets are as follows:
Balance Balance January 1, December 31, Class 2012 Reclassifications Additions Deletions 2012
Governmental Activities (inclusive of Internal Service Funds)
Capital Assets, not being depreciated Land $ 49,113,985 $ 2,416,549 $ $ $ 51,530,534 Construction-in-progress 9,012,408 (5,360,436) 1,306,958 3,622,997 1,335,933
Total Capital Assets, not being depreciated $ 58,126,393 $ (2,943,887) $ 1,306,958 $ 3,622,997 $ 52,866,467
Capital Assets, being depreciated Buildings $ 47,888,980 $ $ 1,059,906 $ $ 48,948,886 Improvements other than buildings 37,725,131 2,943,887 4,579,892 45,248,910 Machinery and equipment 46,186,952 716,248 46,903,200 Infrastructure 112,611,481 112,611,481 Total Capital Assets, being depreciated 244,412,544 2,943,887 6,356,046 253,712,477
49 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31,2012
Note 3 - Detailed Notes on All Funds (Continued)
Balance Balance January 1, December 31, Class 2012 Reclassifications Additions Deletions 2012
Less Accumulated Depreciation for BUildings $ 25,664,396 $ $ 1,013,670 $ $ 26,678,066 Improvements other than buildings 30,798,856 1,777,579 32,576,435 Machinery and equipment 39,619,755 2,220,010 41,839,765 Infrastructure 50,822,168 2,541,108 53,363,276 Total Accumulated Depreciation 146,905,175 7,552,367 154,457,542 Total Capital Assets, being depreciated, net $ 97,507,369 $ 2,943,887 $ (1,196,321) $ $ 99,254,935 Governmental Activities Capital Assets, net $ 155,633,762 $ $ 110,637 $ 3,622,997 $ 152,121,402
Balance Balance January 1, December 31 , Class 2012 Reclassification Additions 2012 Business-type Activities: Capital Assets, not being depreciated Land $ 5,869,846 $ $ $ 5,869,846 Capital Assets, being depreciated: Buildings . $ 47,328,441 $ $ 157,090 $ 47,485,531 Improvements other than buildings 5,055,999 5,055,999 Machinery and equipment 1,926,190 26,407 1,952,597 Total Capital Assets, being depreciated 54,310,630 183,497 54,494,127 Less Accumulated Depreciation for: Buildings 14,051,652 (1,165,955) 1,119,491 14,005,188 Improvements other than buildings 3,383,828 1,167,134 192,343 4,743,305 Machinery and equipment 1,339,010 (1,179) 210,117 1,547,948 Total Accumulated Depreciation 18,774,490 1,521,951 20,296,441 Total Capital Assets, being depreciated, net $ 35,536,140 $ $ (1,338,454) $ 34,197,686 Business-type Activities Capital Assets, net $ 41,405,986 $ $ (1,338,454) $ 40,067,532 Depreciation expense was charged to the City's functions and programs as follows: Governmental Activities: General government support $ 517,057 Public safety 1,972,987 Transportation 253,955 Culture and recreation 1,535,399 Home and community services 3.272,969
Total Depreciation Expense - Governmental Activities $ 7.552,367
50 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31 ,2012
Note 3 - Detailed Notes on All Funds (Continued)
Business-type Activities: Parking Facilities $ 875,056 Railroad Station 517,824 Municipal Marina 129,071
Total Depreciation Expense Business-Type Activities $ 1.521.951
The reclassifications made to capital assets as of December 31, 2012 include land and certain improvements other than buildings that were complete as of the end of the prior fiscal year and should have been removed from the construction-in-progress category
E. Accrued Liabilities
Accrued liabilities at December 31,2012 were as follows:
General Business-Type Fund Activities Total
Payroll and related benefits $ 1,999,727 $ $ 1,999,727 Other 60,000 60,000 $ 1,999,727 $ 60,000 $ 2,059,727
F. Pension Plans
The City participates in the New York State and Local Employees' Retirement System ("ERS") and the New York State and Local Police and Fire Retirement System ("PFRS") ("Systems"). These Systems are cost-sharing multiple-employer defined benefit pension plans. The Systems provide retirement, disability and death benefits to plan members. Obligations of employers and employees to contribute and benefits to employees are governed by the New York State Retirement and Social Security Law. The Systems issue a publicly available financial report that includes financial statements and required supplementary information for the Systems. That report may be obtained by writing to the New York State and Local Employees' Retirement System, 110 State Street, Albany, New York 12224.
Funding Policy - The Systems are non-contributory except for employees in tiers 3 and 4 that have less than ten years of service, who contribute 3% of their salary, employees in tier 5 who also contribute 3% of their salary without regard to their years of service and employees in tier 6 who contribute between 3% and 6% depending on salary levels and also without regard to years of service. Contributions are certified by the State Comptroller and expressed as a percentage of members' salary. Contribution rates are actuarially determined and based upon membership tier and plan. Contributions consist of a life insurance portion and regular pension contributions. Contribution rates for the plan year ended March 31, 2013 are as follows:
51 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31,2012
Note 3 - Detailed Notes on All Funds (Continued)
Tier/Plan/Option Rate
ERS 1 751 25.4% 2 751 23.2 3 A14 18.6 4 A15 18.6 5 A15 15.1 6 A15 10.1
PFRS 1 3840 30.2% 2 375J 18.1 2 3840 29.4 2 3840 25.1 5 3840 20.1 6 3840 14.6
Contributions made or accrued to the Systems for the current and two preceding years were as follows:
ERS PFRS
2012 $ 3,270,295 $ 7,900,333 2011 1,907,763 5,426,096 2010 1,809,408 5,491,455
These contributions were equal to 100% of the actuarially required contributions for each respective fiscal year.
The current PFRS contribution was charged to the General Fund. The current ERS contribution was charged to the funds identified below.
Fund Amount
General $ 3,160,986 Community Development 45,726 Section 8 Housing Assistance 63,583
$ 3270.295
The City also provides benefits to those police officers who retired from service prior to the inception of PFRS. These payments are administered under the auspices of PFRS. This is not a separate retirement plan as the City acts in an agency capacity. Benefits are calculated pursuant to Section 192 of the Retirement and Social Security Law. It is the policy of the City to fund any benefits from the General Fund Police Department budget. Benefit costs for the year ended December 31,2012 were $49,424.
The Agency and the Corporation do not pay any wages and, therefore, do not participate in a pension program.
52 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31, 2012
Note 3 . Detailed Notes on All Funds (Continued)
G. Short-Term Capital Borrowings - Bond Anticipation Notes
The schedule below details the changes in short-term capital borrowings.
Year of Balance Balance Original Interest January 1, New December 31, Purpose Issue Rate 2012 Issues Redemptions 2012
Governmental Type Activities - Capital Projects Fund: Fire Aerial Ladder Truck 2007 -% $ 120,000 $ $ 120,000 $ Fire Engine - 2008 2009 1.50 288,000 96,000 192,000 Fire Rescue Truck - 2008 2009 1.50 375,000 125,000 250,000 Storm and Sanitary Sewer Capacity Improvements 2010 1.50 560,000 140,000 420,000 Trucks and Vehicles - 2010 2010 1.50 160,000 40,000 120,000 Organic Waste Transfer Station 2010 1.50 260,000 65,000 195,000 Ashland Street Sewer Rehabilitation 2010 1.50 40,000 10,000 30,000 Trucks and Vehicles - 2011 2011 1.50 320,000 64,000 256,000 Sanitary Sewer Repairs 2011 1.50 250,000 50,000 200,000 40 Pelham Road Repainting 2011 1.50 100,000 20,000 80,000 Police Patrol Cars 2011 1.50 256,000 86,000 170,000 Parks Bureau Trucks 2011 1.50 70,000 14,000 56,000 Information System Equipment 2011 1.50 90,000 18,000 72,000 Trucks and Vehicle - 2012 2012 1.50 875,000 875,000 Storm Drain/Sanitary Sewer 2012 1.50 100,000 100,000 Oil Tank Remediation 2012 1.50 60,000 60,000 Information Systems Equipment - 2012 2012 1.50 50,000 50,000 Fire Engine - 2009 2012 1.50 525,000 525,000
$ 2,889,000 $ 1,610,000 $ 848,000 $ 3,651,000
Liabilities for bond anticipation notes are generally accounted for in the Capital Projects Fund. Bond anticipation notes issued for judgments or settled claims are recorded in the fund paying the claim. Principal payments on bond anticipation notes must be made annually. State law requires that bond anticipation notes issued for capital purposes or judgments be converted to long-term obligations generally within five years after the original issue date. However, bond anticipation notes issued for assessable improvement projects may be renewed for periods equivalent to the maximum life of the permanent financing, provided that stipulated annual reductions of principal are made.
Interest expenditures of $20,223 were recorded in the fund financial statements in the General Fund. Interest expense of $46,659 was recorded in the government-wide financial statements for governmental activities.
53 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31, 2012
Note 3 - Detailed Notes on All Funds (Continued)
H. Long-Term Liabilities
The following table summarizes changes in the City's long-term indebtedness for the year ending December 31,2012:
Balance Maturities Balance January 1, New Issues/ and/or December 31, Due Within 2012 Additions Payments 2012 One Year Governmental Activities Bonds Payable Capital construction $ 33,684,979 $ $ 2,464,832 $ 31,220,147 $ 2,563,682 Other 27,071,442 2,120,336 24,951,106 2,190,918
60,756,421 4,585,168 56,171,253 4,754,600
Less Deferred Amounts (1,024,371) (111,385) (912,986)
59,732,050 4,473,783 55,258,267 4,754,600
Bond Anticipation Notes Payable 1,780,000 800,000 260,000 2,320,000 2,320,000
Other Non-Current Liabilities Claims Payable 5,789,609 2,523,690 1,344,138 6,969,161 777,000 Retirement Incentives and Other Pension Obligations 2,488,723 461,756 2,026,967 468,949 Compensated Absences 1,837,306 622,145 184,000 2,275,451 228,000 Other Post Employment Benefit Obligations Payable 39,750,000 17,920,000 6,740,000 50,930,000
Total Other Non-Current Liabilities 49,865,638 21,065,835 8,729,894 62,201,579 1,473,949
Governmental Activities Long-Term Liabilities $ 111,377,688 $ 21,865,835 $ 13,463,677 $ 119,779,846 $ 8,548,549
Business-Type Activities Bonds Payable $ 22,208,579 =$==== $ 1,849,832 $ 20,358,747 $ 1,760,402
Governmental fund liabilities for bonds, bond anticipation notes and loans are liquidated by the Debt Service Fund, which is funded primarily by the General Fund. Each governmental funds liability for claims, retirement incentives and other pension obligations, compensated absences and other post employment benefit obligations are liquidated by the respective fund, primarily the General Fund.
54 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31, 2012
Note 3 • Detailed Notes on All Funds (Continued)
Bonds Payable
Bonds payable at December 31,2012 are comprised of the following individual issues:
Amount Outstanding Original at Year of Issue Final Interest December 31, Purpose Issue Amount Maturity Rates 2012
General Purpose 1989 $ 13,487,800 June, 2015 7.000 % $ 1,300,000 Public Improvements 1991 11,041,850 February, 2017 6.500 1,200,000 Public Improvements - Series A 2004 20,950,000 March,2022 4.750 - 5.000 14,840,000 Public Improvements - Series B 2004 7,345,000 July, 2015 4.000 - 4.500 1,645,000 Public Improvements - Series C 2004 11,960,000 March,2024 5.200 - 5.950 8,670,000 Public Improvements - Series A 2005 14,508,000 March,2025 4.000 - 4.250 10,295,000 Public Improvements - Series B 2005 215,000 March,2020 5.875 - 6.000 140,000 Public Improvements - Series C 2005 19,250,000 January, 2023 4.000 - 5.000 13,430,000 Various Purposes 2005 5,690,000 July, 2018 4.000 - 5.000 2,775,000 Public Improvements 2007 6,195,000 March,2027 3.875 - 3.950 4,735,000 General Purpose 20·11 20,000,000 October, 2022 3.000 - 4.550 17,500,000 $ 76,530,000
Interest expenditures of $2,800,905 were recorded in the fund financial statements in the Debt Service Fund. Interest expense of $2,833,108 was recorded in the government-wide financial statements for governmental activities. Interest expense of $801,682 was recorded in the Enterprise Fund financial and government-wide financial statements for the business-type activities.
Bond Anticipation Notes Payable
The schedule below details changes in long-term non-capital borrowings:
Year of Balance Balance Original Rate of January 1, New December 31, Purpose Issue Interest 2012 Additions Redemptions 2012
Tax Refunds 2010 1.50 % $ 480,000 $ $ 120,000 $ 360,000 Tax Refunds 2011 1.50 700,000 140,000 560,000 Tax Refunds 2011 1.50 600,000 600,000 Tax Refunds 2012 .55 800,000 800,000
$ 1,780,000 $ 800,000 $ 260,000 $ 2,320,000
Interest expenditures of $10,808 were recorded in the fund financial statements in the Debt Service Fund. Interest expense of $19,766 was recorded in the government-wide financial statements for governmental activities.
55 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31, 2012
Note 3 - Detailed Notes on All Funds (Continued)
The City, pursuant to Financial Accounting Standards Board No.6, has not recorded these liabilities in the fund financial statements since it has demonstrated an ability to consummate refinancing. The ability to consummate refinancing was evidenced by obtaining permanent financing or a renewal of the note prior to the issuance of the financial statements. The notes are due March 2013.
Payments to Maturity
The annual requirements to amortize all bonded debt, bond anticipation notes and State loans outstanding as of December 31,2012, including interest payments of $21,018,448 were as follows:
Governmental Activities - Business-Type Activities - Bond Anticipation Year Ending Bonds Bonds Notes Total December 31, Principal Interest Principal Interest Principal Interest Principal Interest 2013 $ 4,754,600 $ 2,589,072 $ 1,760,402 $ 762,240 $ 2,320,000 $ 23,851 $ 8,835,002 $ 3,375,163 2014 4,943,676 2,363,771 1,816,325 706,221 6,760,001 3,069,992 2015 5,157,910 2,125,189 1,902,091 648,276 7,060,001 2,773,465 2016 4,317,185 1,878,343 1,987,817 587,523 6,305,002 2,465,866 2017 4,495,908 1,663,506 1,889,094 523,537 6,385,002 2,187,043 2018-2022 22,439,752 5,106,340 10,735,249 1,459,479 33,175,001 6,565,819 2023-2027 10,062,222 573,991 267,769 7,109 10,329,991 581,100 $ 56,171,253 $ 16,300,212 $ 20,358,747 $ 4,694,385 $ 2,320,000 $ 23,851 $ 78,850,000 $ 21,018,448
The above general obligation bonds and bond anticipation notes are direct obligations of the City for which its full faith and credit are pledged and are payable from taxes levied on all taxable real property within the City.
Claims Payable
The Internal Service funds reflect workers' compensation and general liability claim liabilities which are based upon estimates of the ultimate cost of claims (including future claim adjustment expenses) that have been reported, but not settled, and of claims that have been incurred but not reported. The length of time for which such costs must be estimated varies depending on the coverage involved, Because actual claim costs depend on such complex factors as inflation, changes in doctrines of legal liability and damage awards, the process used in computing claim liabilities does not necessarily result in an exact amount. Claim liabilities are recomputed periodically using a variety of actuarial and statistical techniques to produce current estimates that reflect recent settlements, claim frequency and other economic and social factors. A provision for inflation in the calculation of estimated future claims costs is implicit in the calculation because reliance is placed both on actual historical data that reflects past inflation and other factors that are considered to be appropriate modifiers of past experience.
56 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31. 2012
Note 3 - Detailed Notes on All Funds (Continued)
An analysis of the activity of unpaid claim liabilities is as follows:
Year Ended Year Ended December 31, 2012 December 31,2011 Workers' General Workers' General Compensation Liability Compensation Liability Balance - Beginning of Year $ 4,100,000 $ 1,689,609 $ 3,420,246 $ 1,980,629 Provision for Claims and Claims Adjustment Expenses 1,923,242 300,448 1,339,000 (90,765) Claims and Claims Adjustment Expenses Paid (730,709) (513,429) (659,246) (200,255) Balance - End of Year $ 5,292,533 $ 1,476,628 $ 4,100,000 $ 1,689,609 Current Portion "$ 529,000 $ 148,000 $ 410,000 $ 249,609 Claims payable at December 31, 2012 also includes a liability of $200,000 for a settlement with a City employee, which is to be paid out over a three-year period. The amount due within one year is $100,000.
Retirement Incentives and Other Pension Obligations
Legislation approved by the State and adopted by the City permits Tier 2 firefighters to avail themselves of Section 443-f of the Retirement and Social Security Law. This section provides that the retirement calculation for Tier 2 firefighters will be based on the regular compensation earned during the last year of credited service immediately preceding the member's effective date of retirement. Enactment of this provision has resulted in a liability for past service costs estimated at $2,093,718. Payments will be made over a ten year period with interest at 8%. The current year cost and balance due are noted in the table below.
In the current fiscal year, the City opted into Part A of the 2010 Retirement Incentive Program offered by ERS. This program provides eligible employees one month of additional service credit for each year of service up to 36 months. Participating employees were not required to eliminate vacated positions provided they could demonstrate, over a two-year period, savings of at least one half of the base salary of the retiring employee. The estimated cost of the program will be approximately 60% of the employee's final average salary. Enactment of this provision resulted in a liability of $110,253. Payments will be made over a five year period with interest at 7.5%. The current year cost and balance due are noted in the table below.
The State Legislature enacted Chapter 57 of the Laws of 2010. This Chapter authorized local governments, at their option, to amortize a portion of their respective ERS and PFRS contributions beginning in 2012. The maximum amortization amount each year going forward will be determined by the difference between each employer's effective contribution rate as compared to the System's overall graded rate. The amortized amounts are to be paid in equal annual installments over a ten year period, although amounts may be prepaid at any time. Interest will be charged at rates which approximate a market rate of return on taxable fixed rate securities of a comparable duration and will be adjusted annually. The City elected to amortize the maximum allowable ERS and PFRS contributions for 2011 as noted in the table below.
57 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31,2012
Note 3 • Detailed Notes on All Funds (Continued)
Current Year Original Payments Amount (Including Balance Due Within Amortized Interest) Due One Year
2003 PFRS $ 2,889,130 $ 291,706 $ 288,913 $ 288,913 2011 ERS 1,043,100 104,311 784,493 74,892 2011 PFRS 1,180,251 118,025 887,639 84,739 2010 Incentive 126,745 25,350 65,922 20,405
$ 5,239,226 $ 539,392 $ 2,026,967 $ 468,949
The current year payments were charged to retirement expenditures in the General Fund.
Compensated Absences
Vacation time is generally taken in the year earned, although employees may accumulate up to two years of vacation time. Pursuant to the terms of its collective bargaining agreements, the City is not required to pay accumulated sick leave, although CSEA employees may accumulate up to 200 days, police officers may accumulate up to 180 days and crossing guards may accumulate up to 165 days. Superior fire officers, uniformed fire fighters and superior police officers have no limitation on the number of days that may be accumulated. Employees who have worked for the City in excess of twenty years are entitled to severance vacation pay upon retirement. The amount of payment varies according to years of service. The value of compensated absences at December 31, 2012 was $2,275,451 and has been reflected in the government-wide financial statements.
Other Post Employment Benefit Obligations Payable
In addition to providing pension benefits, the City provides certain health care benefits for retired employees through a single employer defined benefit pension plan. The various collective bargaining agreements stipulate the employees covered and the percentage of contribution. Contributions by the City may vary according to length of service. The cost of providing post employment health care benefits is shared between the City and the retired employee. Substantially all of the City's employees may become eligible for these benefits if they reach normal retirement age while working for the City. The cost of retiree health care benefits is recognized as an expenditure as claims are paid in the fund financial statements. The City has recognized revenues and expenditures of $352,130 for Medicare Part D payments made directly to its health insurance carrier on behalf of its retirees.
The City's annual other post employment benefits ("OPEB") cost (expense) is calculated based on the annual required contribution, ("ARC"), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. GASB Statement No. 45 establishes standards for the measurement, recognition and display of the expenses and liabilities for retirees' medical insurance. As a result, reporting of expenses and liabilities will no longer be done under the "pay-as-you-go" approach. Instead of expensing the current year premiums paid, a per capita claims cost will be determined, which will be used to determine a "normal cost", an "actuarial accrued liability", and 58 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31, 2012
Note 3 • Detailed Notes on All Funds (Continued)
ultimately the ARC. 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 thirty years.
Actuarial valuations for OPES plans involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. These amounts are subject to continual revision as results are compared to past expectations and new estimates are made about the future. Calculations are based on the OPES benefits provided under the terms of the substantive plan in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. In addition, the assumptions and projections utilized do not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. The actuarial calculations of the OPES plan reflect a long-term perspective.
The City is required to accrue on the government-wide and proprietary fund financial statements the amounts necessary to finance the plan as actuarially determined, which is equal to the balance not paid by plan members. Funding has been established on a pay-as-you-go basis. The assumed increase in the healthcare cost trend is 9.5% for the first year, and decreases by .5% per year in years two through ten, and then continues at 5% thereafter. The amortization basis is the level percentage of payroll method with an open amortization approach with 26 years remaining in the amortization period. The actuarial assumptions included a 4.5% investment rate of return, a 1.5% inflation rate and a 1.5% annual payroll growth rate. The City currently has no assets set aside for the purpose of paying post employment benefits. The actuarial cost method utilized was the projected unit credit method.
The number of participants as of December 31,2012 was as follows:
Active Employees 558 Retired Employees 602
Total 1.160
Funding for the Plan has been established on a pay-as-you-go basis. The City currently has no assets set aside for the purpose of paying postemployment benefits.
59 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31,2012
Note 3 • Detailed Notes on All Funds (Continued)
Amortization Component: Actuarial Accrued Liability as of January 1, $ 209,740,000 Assets at Market Value
Unfunded Actuarial Accrued Liability ("UAAL") $ 209,740,000
Funded Ratio 0.00%
Covered Payroll (Active plan members) $ 49,220,000
UAAL as a Percentage of Covered Payroll 426.13%
Annual Required Contribution 18,470,000 Interest on Net OPEB Obligation 1,790,000 Adjustment to Annual Required Contribution (2,340,000)
Annual OPEB Cost 17,920,000
Contributions Made (6,740,000)
Increase in Net OPEB Obligation 11,180,000
Net OPEB Obligation - Beginning of year 39,750,000
Net OPEB Obligation - End of year $ 50,930,000
The City's annual OPEB cost, the percentage of annual OPEB costs contributed to the plan and the net OPEB obligation for the current and the two preceding years is as follows:
Fiscal Percentage of Year Ended Annual OPEB Cost Net OPEB December 31, OPEB Cost Contributed Obligation
2012 $ 17,920,000 37.61 % $ 50,930,000 2011 17,250,000 38.38 39,750,000 2010 14,470,000 40.91 29,120,000
The schedule of funding progress for the OPEB plan immediately following the notes to the financial statements presents multi-year trend information about whether the actuarial value of the plan assets is increasing or decreasing relative to the actuarial accrued liability for the benefits over time.
I. Revenues, Expenditures and Transfers
Interfund Transfers
Interfund transfers are defined as the flow of assets, such as cash or goods and services, without equivalent flows of assets in return. The interfund transfers reflected below have been reported as transfers.
60 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31,2012
Note 3 . Detailed Notes on All Funds (Continued)
Transfers In Business- Internal type service- Activities - Workers' capital Debt Parking Compensation Transfers Out General Projects Service Facilities Benefits Total General $ $ 927,020 $ 6,556,932 $ 700,000 $ $ 8,183,952 capital Projects 24,476 24,476 Debt service 1,487,975 1,487,975 Non-Major Governmental 160,000 160,000 Internal service General Liability Claims 1,500,000 1,500,000
$ 1,672,451 $ 927,020 $ 6,556,932 $ 700,000 $ 1,500,000 $ 11,356,403
Transfers are used to 1) move funds from the fund with collection authorization to the Debt Service Fund as debt service principal and interest payments become due and 2) to move amounts earmarked in the operating funds to fulfill commitments for Capital Projects Fund and other funds expenditures/expenses.
J. Net Position
The components of net position are detailed below:
Net investment in Capita/ Assets - the component of net position that reports the difference between capital assets less both the accumulated depreciation and the outstanding balance of debt, excluding unexpended proceeds, that is directly attributable to the acquisition, construction or improvement of those assets.
Restricted for Capita/ Projects - the component of net position that reports the amount restricted for capital projects, less unexpended bond proceeds and unrestricted interest earnings.
Restricted for General Liability Claims - the component of net position that has been established to set aside funds to be used for a specific purpose in accordance with Section 6n of General Municipal Law.
Restricted for Community Development - the component of net position that represents funds restricted for projects and subsidies financed by entitlements from the United States Department of Housing and Urban Development.
Restricted for Section 8 Housing Assistance - the component of net position that represents funds restricted for projects and subsidies financed by entitlements from the United States Department of Housing and Urban Development.
Restricted for Special Purpose - the component of net position that represents funds restricted for assets held by the City in accordance with the terms of a trust agreement.
61 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31, 2012
Note 3 • Detailed Notes on All Funds (Continued)
Restricted for Debt Service - the component of net position that reports the difference between assets and liabilities of the Debt Service Fund with constraints placed on their use by Local Finance Law.
Restricted for Capital Improvements - the component of net position that reserves a portion of the net assets of the Parking Facilities - Enterprise Fund for capital improvements in accordance with the capital lease agreement provisions with the Corporation.
Unrestricted - all other amounts that do not meet the definition of "restricted" or "net investment in capital assets".
62 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31,2012
Note 3 - Detailed Notes on All Funds (Continued)
K. Fund Balances
2012 2011
Capital Debt Other Capital Debt Other General Projects Service Governmental General Projects Service Governmental Fund Fund Fund Funds Total Fund Fund Fund Funds -..I2!al Nonspendable Prepaid expenditures $ 3,623,393 $ $ $ $ 3,623,393 $ 3,343,673 $ $ $ $ 3,343,673 Inventories 13,679 13,679 13,849 13,849 Loans and accounts receivable -- 60,000 60,000 60,000 60,000 Total Nonspendable 3,637,072 60,000 3,697,072 3,357,522 60,000 3,417,522
Restricted Trusts 668,884 668,884 686,357 686,357 Debt service 2,254,811 2,254,811 2,431,067 2,431,067 Total Restricted 2,254,811 668,884 __2,923,695 2,431,067 686,357 3,117,424 en W Committed City charter provision 300,000 300,000 300,000 300,000
Assigned Purchases on order General government support 90,503 90,503 120,631 120,631 Public safety 102,481 102,481 25,503 25,503 Transportation 17,392 17,392 406 406 Culture and recreation 89,740 89,740 26,680 26,680 Home and community services 110,623 110,623 1,600 1,600
410,739 410,739 174,820 174,820
Subsequent year's expenditures 900,000 205,000 1,105,000 338,001 16,660 354,661 Non- Major funds 1,095,933 1,095,933 1,111,651 1,111,651 Total Assigned 1,310,739 205,000 1,095,933 2,611,672 174,820 338,001 1,128,311 1,641,132 Unassigned 3,176,116 (1,939,321) 1,236,795 1,630,194 (1,276,399) 353,795 Total Fund Balances $ 8,423,927 $ (1,879,321 ) $ 2,459,811 $ 1,764,817 $ 10,769,234 $ 5,462,536 $ (1,216,399) $ 2,769,068 $ 1,814,668 $ 8,829,873 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31, 2012
Note 3 - Detailed Notes on All Funds (Continued)
Certain elements of fund balance are described above. Those additional elements, which are not reflected in the Statement of Net Position but are reported in the governmental funds balance sheet are described below.
Prepaid Expenditures has been established to account for payments made in advance. The amount is classified as nonspendable to indicate that funds are not "available" for appropriation or expenditure even though they are a component of current assets.
Inventories have been classified as nonspendable to indicate that a portion of fund balance is not "available" for appropriation or expenditure even though they are a component of current assets.
Loans and Accounts Receivable represents funds set aside to indicate the long-term nature of certain receivables. The amount is classified as nonspendable to indicate these funds are not "available" for appropriation or expenditure even though they are a component of current assets.
Trusts have been established to set aside funds in accordance with the terms of the grants.
City Charter Provision provides that funds in excess of $300,000 may be appropriated for the subsequent year's budget. The City has committed this amount to reflect the Charter restriction.
Purchases on order are assigned and represent the City's intention to honor the contracts in process at year-end. The subsequent year's appropriations will be amended to provide authority to complete the transactions.
Subsequent year's expenditures represent that at December 31, 2012, the City Council has assigned the above amounts to be appropriated for the ensuing year's budget.
Unassigned fund balance in the General Fund represents amounts not classified as nonspendable, restricted or assigned. Unassigned fund balance in the Capital Projects Fund represents the deficit balances in the projects.
Note 4 - Summary Disclosure of Significant Contingencies
A. Litigation
The City is a defendant in numerous pending tax certiorari proceedings, the results of which cannot be determined at this time. Any future refunds resulting from adverse settlements will be funded in the year in which the payments are made.
The City, in common with other municipalities, receives numerous notices of claims for money damages arising from false arrest, property damage or personal injury. There are numerous tort claims pending against the City. However, it is anticipated that insurance coverage will be sufficient to satisfy any resolution of the tort claims pending against the City. The City's Attorney's office has reviewed the status of pending general liability actions and has determined that the amounts reflected as liabilities of the General Liability Claims Fund are sufficient to satisfy any payments arising there from.
64 City of New Rochelle, New York
Notes to Financial Statements (Continued) December 31, 2012
Note 4 - Summary Disclosure of Significant Contingencies (Continued)
B. Contingencies
The City participates in various Federal grant programs, principal of which are programs of the U.S. Department of Housing and Urban Development. These programs are subject to program compliance audits pursuant to the Single Audit Act. The amount of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the City anticipates such amounts, if any, to be immaterial.
The City currently has four labor contracts that are expired as of December 31, 2012. Two of these contracts expired as of December 31, 2009, one expired as of December 31, 2010 and the last expired as of December 31, 2011. No retroactive accruals have been made for 2012 salary increases, since management has informed us that the increases, if any, cannot be estimated at this time.
C. Risk Management
The City purchases conventional insurance which includes the following:
general liability coverage, law enforcement professional coverage, employee benefits liability coverage, public officials liability and automobile coverage of $10 million, with a $350,000 self-insured retention per occurrence, with an annual aggregate of $10 million for all of the above policies.
crime coverage of $500,000 with a $10,000 self-insured retention per occurrence.
property coverage at replacement cost up to a limit of $181,269,000 in excess of the $10 million base coverage, with a $25,000 self-insured retention per occurrence. The deductible provisions are being funded through the General Liability Internal Service Fund. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. The City is self-insured for workers' compensation benefits. The governmental and enterprise funds are charged premiums by the respective Internal Service Fund. Accrued liabilities in the respective Internal Service Fund include provisions for claims reported and claims incurred but not reported. The City has also reviewed the outstanding lawsuits and has determined that all claims have been reviewed by the claims administrators and the actuary has indicated that the appropriate liabilities have been established within the Internal Service Funds. The City also purchases conventional health insurance from various providers.
Note 5 - Subsequent Event
The City, in March 2013, issued bond anticipation notes in the amount of $6,962,000. The notes are due on March 7, 2014, with interest at .63%. The proceeds were used to renew portions of the $3,651,000 in bond anticipation notes outstanding at December 31, 2012 and include new financing of $4,360,000 for various capital projects.
The City, in March 2013, issued bond anticipation notes in the amount of $1,750,000 for tax certiorari refunds. The notes are due on March 7, 2014, with interest at 1.89%. The proceeds were used to renew portions of the $2,320,000 in bond anticipation notes outstanding at December 31, 2012.
65 City of New Rochelle, New York
Notes to Financial Statements (Concluded) December 31,2012
Note 5 - Subsequent Event (Continued)
The City, in March 2013, issued refunding serial bonds in the amount of $20,830,000. The bonds mature annually though 2025 with interest at various rates, depending on maturity. The proceeds were used to refund $25,135,000 in public improvement serial bonds outstanding at December 31, 2012.
The City, in March 2013, issued refunding serial bonds in the amount of $8,380,000. The bonds mature annually though 2024 with interest at various rates, depending on maturity. The proceeds were used to refund $8,810,000 in public improvement serial bonds outstanding at December 31, 2012.
*****
66 City of New Rochelle, New York
Required Supplementary Information - Schedule of Funding Progress Other Post Employment Benefits Last Three Fiscal Years
Unfunded Actuarial Unfunded Liability as a Actuarial Percentage Valuation Value of Accrued Accrued Funded Covered of Covered Date Assets Liability Liability Ratio Payroll Payroll
January 1, 2010 $ $ 189,690,000 $ 189,690,000 -% $ 50,560,000 375.18 % January 1, 2011 204,470,000 204,470,000 50,830,000 402.26 January 1, 2012 209,740,000 209,740,000 49,220,000 426.13
67 (This page intentionally left blank) MAJOR GOVERNMENTAL FUNDS
GENERAL FUND
• The General Fund constitutes the primary fund of the City and is used to account for and report all financial resources not accounted for and reported in another fund.
CAPITAL PROJECTS FUND
• The Capital Projects Fund is used to account for and report financial resources that are restricted, committed or assigned for capital outlay, including the acquisition or construction of major capital facilities and other capital assets, other than those financed by proprietary funds.
DEBT SERVICE FUND
• The Debt Service Fund is provided to account for and report financial resources that are restricted, committed or assigned to expenditures for principal and interest and for financial resources that are being accumulated for principal and interest maturing in future years. (This page intentionally left blank) City of New Rochelle, New York
General Fund Comparative Balance Sheet December 31,
2012 2011 ASSETS Cash Demand deposits $ 10,064,619 $ 6,926,144 Time deposits 55,623 10,235 Petty cash 1,540 1,540
10,121,782 6,937,919
Investments 3,862,505 2,901,780
Taxes receivable City and County taxes 2,950,522 2,694,571 School district taxes 4,387,562 4,393,743 Property acquired for taxes 403,658 405,854
7,741,742 7,494,168
Allowance for uncollectible amounts (789,816) (732,236)
6,951,926 6,761,932 Other receivables Accounts 1,055,711 868,986 State and Federal aid 5,768,349 4,173,119 Due from other governments 259,483 260,980
7,083,543 5,303,085
Prepaid expenditures 3,623,393 3,343,673
Inventories 13,679 13,849 Total Assets $ 31,656,828 $ 25,262,238
LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 4,654,188 $ 5,108,247 Accrued liabilities 1,999,727 231,507 Due to school district 4,086,926 3,732,050 Due to other funds 8,672,924 7,457,239 Due to other governments 3,312 2,812 Unearned revenues 336,364 42,050 Unearned tax revenues 3,479,460 3,225,797
Total Liabilities 23,232,901 19,799,702
Fund balance Nonspendable 3,637,072 3,357,522 Committed 300,000 300,000 Assigned 1,310,739 174,820 Unassigned 3,176,116 1,630,194
Total Fund Balance 8,423,927 5,462,536
Total Liabilities and Fund Balance $ 31,656,828 $ 25,262,238
68 City of New Rochelle, New York
General Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Years Ended December 31,
2012 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Real property taxes $ 50,330,507 $ 50,330,507 $ 50,352,438 $ 21,931 Other tax items 2,052,000 2,052,000 2,228,097 176,097 Non-property taxes 27,425,000 27,425,000 28,494,313 1,069,313 Departmental income 8,782,650 8,816,150 8,929,187 113,037 Intragovernmental charges 2,713,191 2,716,951 2,567,333 (149,618) Intergovernmental charges 40,000 40,000 54,964 14,964 Use of money and property 357,360 357,360 352,017 (5,343) Licenses and permits 1,938,550 1,938,550 1,943,362 4,812 Fines and forfeitures 3,610,000 3,610,000 3,020,159 (589,841 ) Sale of property and compensation for loss 60,000 60,000 92,002 32,002 State aid 8,524,506 9,134,517 8,710,855 (423,662) Federal aid 300,000 1,963,702 1,766,354 (197,348) Miscellaneous 1,957,316 2,213,782 2,099,835 (113,947)
Total Revenues 108,091,080 110,658,519 110,610,916 (47,603)
EXPENDITURES Current General government support 14,710,982 15,647,896 14,461,221 1,186,675 Public safety 58,095,064 59,260,227 60,243,704 (983,477) Transportation 5,317,803 5,131,217 4,699,356 431,861 Economic opportunity and development 1,407,671 1,408,816 1,366,348 42,468 Culture and recreation 4,061,508 4,535,253 4,130,879 404,374 Home and community services 9,766,793 10,715,117 10,289,533 425,584 Employee benefits 6,738,579 6,763,579 6,794,936 (31,357) Debt service Principal 182,600 Interest 111,523 20,223 20,223
Total Expenditures 100,392,523 103,482,328 102,006,200 1,476,128
Excess of Revenues Over Expenditures 7,698,557 7,176,191 8,604,716 1,428,525
OTHER FINANCING SOURCES (USES) Sale of real property 7,843 7,843 New York State loan issued 414,166 Bond anticipation notes issued 800,000 800,000 800,000 Insurance recoveries 25,000 25,000 60,333 35,333 Transfers in 1,578,000 1,648,000 1,672,451 24,451 Transfers out (8,104,932) (8,183,952) (8,183,952)
Total Other Financing Uses (5,287,766) (5,710,952) (5,643,325) 67,627
Net Change in Fund Balance 2,410,791 1,465,239 2,961,391 1,496,152
Fund Balance - Beginning of Year (2,410,791 ) (1,465,239) 5,462,536 6,927,775
Fund Balance - End of Year $ $ $ 8,423,927 $ 8,423,927
69 2011 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative)
$ 48,132,994 $ 48,132,994 $ 48,299,684 $ 166,690 1,886,000 1,886,000 1,934,903 48,903 26,875,000 26,875,000 26,868,615 (6,385) 4,814,950 4,964,950 4,806,330 (158,620) 2,582,705 2,582,705 2,376,459 (206,246) 60,000 60,000 39,240 (20,760) 392,360 392,360 352,726 (39,634) 1,956,500 1,956,500 2,201,312 244,812 3,911,000 3,911,000 3,408,921 (502,079)
45,000 45,000 69,967 24,967 9,047,787 9,395,496 8,719,549 (675,947) 391,697 1,217,207 586,511 (630,696) 1,927,529 2,116,606 2,597,098 480,492
102,023,522 103,535,818 102,261,315 (1,274,503)
14,394,671 15,376,849 13,573,569 1,803,280 57,879,113 58,497,418 56,551,426 1,945,992 4,891,444 5,578,830 5,457,873 120,957
1,439,224 1,439,221 1,347,727 91,494 4,046,193 4,189,393 3,838,643 350,750 9,559,430 9,506,930 9,108,291 398,639 6,261,000 6,390,648 6,382,488 8,160
41,085 41,085 41,085
98,512,160 101,020,374 96,301,102 4,719,272
3,511,362 2,515,444 5,960,213 3,444,769
1,488,000 1,488,000 1,497,788 9,788 1,616,467 1,616,467 (1,616,467) 700,000 1,300,000 1,300,000 25,000 25,000 48,623 23,623 86,000 144,036 58,036 (8,646,086) (8,885,402) (8,883,079) 2,323
(4,816,619) (4,369,935) (5,892,632) (1,522,697)
(1,305,257) (1,854,491 ) 67,581 1,922,072
1,305,257 1,854,491 5,394,955 3,540,464
$ $ $ 5,462,536 $ 5,462,536
70 City of New Rochelle, New York
General Fund Schedule of Revenues and Other Financing Sources Compared to Budget Year Ended December 31,2012 (With Comparative Actuals for 2011)
Variance with Final Budget Original Final Positive 2011 Budget Budget Actual (Negative) Actual
REAL PROPERTY TAXES $ 50,330,507 $ 50,330,507 $ 50,352,438 $ 21,931 $ 48,299,684 OTHER TAX ITEMS Interest and penalties - Taxes 1,000,000 1,000,000 1,199,304 199,304 1,061,052 Payments in lieu of taxes 1,052,000 1,052,000 1,028,793 (23,207) 873,851
2,052,000 2,052,000 2,228,097 176,097 1,934,903 NON-PROPERTY TAXES Utilities gross receipts taxes 1,400,000 1,400,000 1,282,736 (117,264) 1,314,232 Franchise fees 1,665,000 1,665,000 1,476,598 (188,402) 1,489,853 Hotel occupancy tax 260,000 260,000 290,598 30,598 272,361 Sales taxes 24,100,000 24,100,000 25,444,381 1,344,381 23,792,169
27,425,000 27,425,000 28,494,313 1,069,313 26,868,615 -....J ->. DEPARTMENTAL INCOME Treasurer 251,500 251,500 263,766 12,266 '281,310 City Clerk 11,000 11,000 4,291 (6,709) 11,292 Assessor 3,000 3,000 3,507 507 1,463 Civil service fees - - 7,672 7,672 13,641 Police 327,000 327,000 404,084 77,084 381,941 Vital statistics 75,000 75,000 72,608 (2,392) 80,233 Fire Department 150,000 150,000 124,230 (25,770) 131,991 Recreation 622,250 625,750 690,614 64,864 573,411 Safety inspection 54,000 54,000 53,588 (412) 48,675 Fire inspection 824,000 824,000 826,381 2,381 824,093 Refuse and garbage removal 6,125,000 6,125,000 6,138,787 13,787 1,922,559 Other services - Tenant protection 55,000 55,000 50,570 (4,430) 50,922 Alarm fees 100,000 100,000 74,344 (25,656) 94,956 Building Department 45,000 45,000 65,804 20,804 51,256 Planning Board 50,000 50,000 76,170 26,170 65,898 Zoning Board 10,500 10,500 18,054 7,554 11,087 Sidewalk and street sweeping charges 50,000 50,000 13,913 (36,087) 28,275 Code enforcement charges 12,000 12,000 17,401 5,401 50,834 Other 17,400 47,400 23,403 (23,997) 182,493
8,782,650 8,816,150 8,929,187 113,037 4,806,330 INTRAGOVERNMENTALCHARGES Charges for services to other funds Workers' compensation benefits 16,949 16,949 18,532 1,583 18,333 General liability claims 351,895 353,627 348,138 (5,489) 272,069 Central garage 1,269,177 1,269,177 1,159,034 (110,143) 1,111,707 Parking facilities 371,395 372,409 358,916 (13,493) 346,712 Railroad station 168,755 169,769 154,664 (15,105) 136,266 Municipal marina 535,020 535,020 528,049 (6,971) 491,372
2,713,191 2,716,951 2,567,333 (149,618) 2,376,459 INTERGOVERNMENTAL CHARGES Charges for services to other governments Other 40,000 40,000 54,964 14,964 39,240
USE OF MONEY AND PROPERTY Earnings on investments 75,000 75,000 105,591 30,591 95,905 Rentals of real property 270,360 270,360 231,068 (39,292) 244,163 Commissions 12,000 12,000 15,358 3,358 12,658
357,360 357,360 352,017 (5,343) 352,726 LICENSES AND PERMITS Business and occupational licenses 52,500 52,500 63,706 11,206 49,855 Bingo licenses 1,050 1,050 769 (281) 1,049 Dog licenses and apportionment 15,000 15,000 13,404 (1,596) 13,130 Other licenses 83,000 83,000 90,016 7,016 79,928 ""'-J Building permits 852,000 852,000 915,445 63,445 1,125,670 N Street opening permits 770,000 770,000 630,250 (139,750) 721,812 Plumbing permits 60,000 60,000 91,653 31,653 80,564 Other permits 105,000 105,000 138,119 33,119 129,304
1,938,550 1,938,550 1,943,362 4,812 2,201,312 FINES AND FORFEITURES Parking violations 2,600,000 2,600,000 2,091,545 (508,455) 2,442,743 Fines and forfeited bail 1,010,000 1,010,000 928,614 (81,386) 966,178
3,610,000 3,610,000 3,020,159 (589,841) 3,408,921 SALE OF PROPERTY AND COMPENSATION FOR LOSS Sale of equipment 50,000 50,000 84,735 34,735 60,990 Sale of scrap 10,000 10,000 7,267 (2,733) 8,977
60,000 60,000 92,002 32,002 69,967
(Continued) City of New Rochelle, New York
General Fund Schedule of Revenues and Other Financing Sources Compared to Budget (Continued) Year Ended December 31,2012 (With Comparative Actuals for 2011)
Variance with Final Budget Original Final Positive 2011 Budget Budget Actual (Negative) Actual STATE AID Per capita $ 6,162,927 $ 6,162,927 $ 6,162,927 $ - $ 6,162,927 Mortgage tax 1,700,000 1,700,000 1,582,977 (117,023) 1,768,339 Navigation law enforcement 75,000 75,000 67,774 (7,226) 75,245 Traffic safety grant 3,000 3,000 5,692 2,692 Youth programs 33,000 33,000 30,168 (2,832) 38,759 Unified court system 272,000 272,000 255,918 (16,082) 288,887 Mental health 125,000 125,000 125,859 859 125,459 State highway maintenance 91,579 91,579 91,579 - 91,579 Occupant restraint grant 7,000 7,000 4,884 (2,116) 7,006 DEA task force 15,000 15,000 17,236 2,236 17,202 Byrne narcotics grant - 63,675 10,500 (53,175) 7,583 EMT Training 20,000 20,000 14,400 (5,600) 7,200 - 18,750 53,738 34,988 1,802 -....J Disaster assistance w Disaster recovery grant - - - - 10,000 HOPWAgrant - 79,000 7,574 (71,426) Summer youth employment grant - 30,000 32,219 2,219 18,047 STRIVE grant - 45,000 43,727 (1,273) 40,000 North Avenue bridge traffic control grant - 194,834 161,675 (33,159) CAPP Grant - 30,178 22,008 (8,170) 7,762 Workforce Investment Board grant - 137,600 - (137,600) Other 20,000 30,974 20,000 (10,974) 51,752
8,524,506 9,134,517 8,710,855 (423,662) 8,719,549 FEDERAL AID Civil defense 32,000 32,000 35,793 3,793 29,624 Programs for the aging 60,000 60,000 58,458 (1,542) 60,266 Elderly nutrition programs 70,000 70,000 69,500 (500) 74,791 Youth nutrition programs 138,000 140,600 140,630 30 134,550 Fire safety grant - 109,408 79,206 (30,202) 24,840 Bullet proof vest program - 31,043 4,608 (26,435) 5,376 Urban area security initiative grant - 135,320 135,320 - 12,264 US DHHS project focus - 2,419 61 (2,358) 7,121 HPRP Program - 93,460 93,461 1 165,547 COPS technology grant - 231,703 57,795 (173,908) 60,511 Hudson Park - 27,331 27,331 Disaster assistance - 1,030,418 1,064,191 33,773 11,621
300,000 1,963,702 1,766,354 (197,348) 586,511 MISCELLANEOUS Refund of prior year's expenditures 40,000 40,000 19,186 (20,814) 638,039 Reimbursement for direct and indirect costs 1,542,316 1,669,807 1,511,080 (158,727) 1,527,865 Medicare part D reimbursement 350,000 350,000 352,130 2,130 363,186 Other 25,000 153,975 217,439 63,464 68,008
1,957,31~ 2,213,782 2,099,835 (113,947) 2,597,098
TOTAL REVENUES 108,091,080 110,658,519 110,610,916 (47,603) 102,261,315
OTHER FINANCING SOURCES Sale of real property - - 7,843 7,843 1,497,788
New York State loan issued 414,166
Bond anticipation notes issued 800,000 800,000 800,000 - 1,300,000
Insurance recoveries 25,000 25,000 60,333 35,333 48,623
Transfers in Capital Projects Fund - - 24,476 24,476 58,036 Debt Service Fund 1,488,000 1,488,000 1,487,975 (25) Special Purpose Fund 90,000 160,000 160,000 - 86,000
-....J 1,578,000 1,648,000 1,672,451 24,451 144,036 .j:::.
TOTAL OTHER FINANCING SOURCES 2,817,166 2,473,000 2,540,627 67,627 2,990,447
TOTAL REVENUES AND OTHER FINANCING SOURCES $ 110,908,246 $ 113,131,519 $ 113,151,543 $ 20,024 $ 105,251,762 City of New Rochelle, New York
General Fund Schedule of Expenditures and Other Financing Uses Compared to Budget Year Ended December 31,2012 (With Comparative Actuals for 2011) ----- Variance with Final Budget Original Final Positive 2011 Budget Budget Actual (Negative) Actual GENERAL GOVERNMENT SUPPORT City Council $ 385,482 $ 384,753 $ 363,631 $ 21,122 $ 371,351 Unified City Court 578,150 603,196 539,148 64,048 570,394 Mayor 270,954 270,346 262,655 7,691 246,300 City Manager 658,966 663,421 654,167 9,254 605,951 Financial accounting 1,490,248 1,490,519 1,488,354 2,165 1,365,148 Workers' compensation benefits 16,949 18,549 18,532 17 18,333 Treasury and property tax 205,230 204,873 202,082 2,791 181,932 Bureau of Assessments 403,190 402,212 394,843 7,369 376,266 Administrative services 12,429 12,429 11,951 478 11,424 Board of Assessment Review 8,500 8,500 8,354 146 7,019 Management Systems 800,904 798,021 766,132 31,889 722,520 City Clerk 513,461 512,760 470,357 42,403 467,104 600,599 686,167 683,042 3,125 775,732 -..J Law 14,710,982 15,647,896 14,461,221 1,186,675 13,573,569 PUBLIC SAFETY Police Department 27,116,591 27,824,632 28,771,932 (947,300) 27,431,704 Traffic engineering and services 1,829,703 1,858,504 1,755,588 102,916 1,596,456 Fire Department 27,288,138 27,720,160 27,944,946 (224,786) 25,828,197 Communications 1,860,632 1,856,931 1,771,238 85,693 1,695,069 58,095,064 59,260,227 60,243,704 (983,477) 56,551,426 TRANSPORTATION Streets and highways 4,041,123 3,853,763 3,814,709 39,054 3,615,929 Parking facilities 371,395 371,528 358,917 12,611 335,292 Railroad station 168,755 169,416 154,665 14,751 131,653 Snow removal 736,530 736,510 371,065 365,445 1,374,999 5,317,803 5,131,217 4,699,356 431,861 5,457,873 ECONOMIC OPPORTUNITY AND DEVELOPMENT Youth nutrition 137,874 140,474 140,459 15 133,356 Elderly nutrition 118,143 130,008 129,548 460 132,364 Office of the Aging 527,299 514,321 475,051 39,270 462,227 Developmentally disabled 209,355 209,013 203,048 5,965 207,551 Business Improvement District 415,000 415,000 418,242 (3,242) 412,229 1,407,671 1,408,816 1,366,348 42,468 1,347,727 CULTURE AND RECREATION -..J Parks and recreation O'J Administration 506,612 543,784 503,179 40,605 442,937 Maintenance 1,374,779 1,417,840 1,371,620 46,220 1,227,032 Sporting events 169,836 172,689 170,731 1,958 132,941 Summer day camp 180,870 177,763 173,665 4,098 161,772 Five Islands 40,187 40,187 29,772 10,415 47,490 Payments to other agencies 220,779 299,779 215,461 84,318 255,733 Youth Bureau 370,008 628,853 474,004 154,849 423,834 Hudson Park - Aquatics and tennis 275,436 302,643 287,363 15,280 285,264 Senior citizen recreation 284,764 284,488 255,361 29,127 262,267 Marina 535,020 533,851 528,050 5,801 476,153 Fireworks - 30,270 30,270 - 34,870 Basketball 16,750 16,750 12,034 4,716 12,821 Softball 86,467 86,356 79,369 6,987 75,529 4,061,508 4,535,253 4,130,879 404,374 3,838,643 (Continued) City of New Rochelle, New York General Fund Schedule of Expenditures and Other Financing Uses Compared to Budget (Continued) Year Ended December 31,2012 (With Comparative Actuals for 2011) Variance with Final Budget Original Final Positive 2011 Budget Budget Actual (Negative) Actual HOME AND COMMUNITY SERVICES Property maintenance $ 1,845,396 $ 1,843,979 $ 1,630,220 $ 213,759 $ 1,861,788 Refuse collection 4,776,990 4,858,248 4,841,067 17,181 4,319,868 Refuse disposal 880,400 880,400 813,975 66,425 825,987 Sewers and drains 1,358,461 1,306,057 1,110,363 195,694 1,126,883 Bureau of Forestry 256,572 1,177,941 1,272,646 (94,705) 341,198 Leaf removal 593,974 593,492 572,072 21,420 582,117 Emergency tenant protection 55,000 55,000 49,190 5,810 50,450 9,766,793 10,715,117 10,289,533 425,584 9,108,291 EMPLOYEE BENEFITS - UNALLOCATED Hospitalization 6,457,000 6,457,000 6,392,715 64,285 6,239,525 Unemployment benefits 250,000 250,000 128,763 121,237 115,123 Employee tuition reimbursement 6,000 6,000 - 6,000 -....J -....J Sick leave - 25,000 26,000 (1,000) Retirement amortization - - 222,336 (222,336) Retirement incentive 25,579 25,579 25,122 457 27,840 6,738,579 6,763,579 6,794,936 (31,357) 6,382,488 DEBT SERVICE State loan Principal 182,600 Interest 91,300 Bond anticipation notes Interest 20,223 20,223 20,223 - 41,085 294,123 20,223 20,223 - 41,085 TOTAL EXPENDITURES 100,392,523 103,482,328 102,006,200 1,476,128 96,301,102 OTHER FINANCING USES Transfers out Debt Service Fund 6,556,932 6,556,932 6,556,932 - 6,610,086 Capital Projects Fund 848,000 927,020 927,020 - 1,022,993 Parking Facilities Fund 700,000 700,000 700,000 - 1,250,000 TOTAL OTHER FINANCING USES 8,104,932 8,183,952 8,183,952 - 8,883,079 TOTAL EXPENDITURES AND OTHER FINANCING USES $ 108,497,455 $ 111,666,280 $ 110,190,152 $ 1,476,128 $ 105,184,181 City of New Rochelle, New York Capital Projects Fund Comparative Balance Sheet December 31, 2012 2011 ASSETS Receivables Accounts $ 260,000 $ 360,000 State and Federal aid 1,005,783 756,031 Due from other funds 2,774,790 1,702,465 Total Assets $ 4,040,573 $ 2,818,496 LIABILITIES AND FUND DEFICIT Liabilities Accounts payable $ 1,252,280 $ 582,401 Retained percentages payable 330,190 211,512 Unearned revenues 686,424 351,982 Bond anticipation notes payable 3,651,000 2,889,000 Total Liabilities 5,919,894 4,034,895 Fund balance (deficit) Nonspendable 60,000 60,000 Unassigned (1,939,321 ) (1,276,399) Total Fund Deficit (1,879,321 ) (1,216,399) Total Liabilities and Fund Deficit $ 4,040,573 $ 2,818,496 78 (This page intentionally left blank) 79 City of New Rochelle, New York Capital Projects Fund Project-Length Schedule Inception of Project through December 31,2012 Expenditures and Unexpended PROJECT Authorization Transfers Balance North Avenue Signalization $ 3,441,725 $ 3,441,725 $ Ward Acres Demolition 51,000 40,460 10,540 Land Acquisition - Main/Echo 603,000 603,000 City Yard Relocation 5,520,000 5,360,436 159,564 City Yard Design 25,000,000 128,334 24,871,666 Davids Island Environmental Remediation 1,353,886 1,275,772 78,114 Wildcliff Museum Improvement 1,180,640 1,015,678 164,962 Boys and Girls Club Future Improvements 500,000 500,000 Traffic Signal Replacement - Pelham Road 170,000 66,413 103,587 Fire Engine - 2008 480,000 480,000 Fire Rescue Truck - 2008 625,000 625,000 Tree Planting - 2008 50,000 42,014 7,986 Fire Station Apparatus Floor 80,000 47,327 32,673 Cable Television Upgrades 840,000 405,001 434,999 City Park Master Plan 63,298 62,060 1,238 City Park Improvements 10,350,000 9,527,486 822,514 Stephenson Park Improvements 125,000 125,000 Main/Huguenot Traffic Signals 335,000 209,086 125,914 Fire Engine - 2009 525,000 525,000 Fire Station Renovations 100,000 96,942 3,058 Trucks and Vehicles - 2009 400,000 400,000 Storm and Sanitary Sewer Capacity Improvements 900,000 495,272 404,728 GIS Upgrades 25,000 25,000 North Avenue Fiber Optic Cable 115,000 28,535 86,465 Trucks and Vehicles - 2010 200,000 200,000 Organic Waste Transfer Station 325,000 325,000 Ashland Street Sewer Rehabilitation 50,000 50,000 Security Camera Grant 200,000 200,000 Energy Efficiency Conservation 684,600 680,048 4,552 Trucks and Vehicles - 2011 320,000 320,000 Street Resurfacing - 2011 959,444 959,444 Sanitary Sewer Repairs 250,000 104,294 145,706 40 Pelham Road Repainting 100,000 100,000 Police Patrol Cars 288,000 288,000 Parks Bureau Trucks 90,000 82,996 7,004 Information Systems Equipment 90,000 51,964 38,036 FEMA Mutual Aid Grant Equipment 440,295 440,295 Mutual Assistance to Firefighters Grant Equipment 373,377 373,377 City Hall Energy Upgrades 3,900,000 1,149,938 2,750,062 SSMC Street Improvements 112,000 18,590 93,410 Winthrop Avenue Infrastructure 990,000 507,660 482,340 Trucks and Vehicles - 2012 875,000 126,387 748,613 Street Resurfacing/Drainage - 2012 960,222 960,001 221 Oil Tank Remediation 60,000 60,000 Storm Drain/Sanitary Sewer 100,000 100,000 Information Systems Equipment - 2012 50,000 32,337 17,663 FEMA Assistance to Firefighters 395,100 254,677 140,423 LED Light Replacement - New Rochelle 1,080,073 823,984 256,089 LED Light Replacement - ITC 498,914 354,640 144,274 Totals $ 66,225,574 $ 32,601,173 $ 33,624,401 80 81 (This page intentionally left blank) City of New Rochelle, New York Debt Service Fund Comparative Balance Sheet December 31, 2012 2011 ASSETS Investments $ 3,093,751 $ 3,075,297 Accounts receivable 3,612,630 5,064,245 Total Assets $ 6,706,381 $ 8,139,542 LIABILITIES AND FUND BALANCE Liabilities Due to other funds $ 1,270,620 $ 906,549 Unearned revenues 2,975,950 4,463,925 Total Liabilities 4,246,570 5,370,474 Fund balance Restricted 2,254,811 2,431,067 Assigned 205,000 338,001 Total Fund Balance 2,459,811 2,769,068 Total Liabilities and Fund Balance $ 6,706,381 $ 8,139,542 82 City of New Rochelle, New York Debt Service Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Years Ended December 31, 2012 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Use of money and property $ 37,000 $ 37,000 $ 21,230 $ (15,770) EXPENDITURES Debt service Principal Bonds 4,585,170 4,585,170 4,585,168 2 Loans Bond anticipation notes 260,000 260,000 260,000 4,845,170 4,845,170 4,845,168 2 Interest Bonds 2,800,906 2,800,906 2,800,905 1 Loans Bond anticipation notes 10,857 10,857 10,808 49 2,811,763 2,811,763 2,811,713 50 Total Expenditures 7,656,933 7,656,933 7,656,881 52 Deficiency of Revenues Over Expenditures (7,619,933) (7,619,933) (7,635,651 ) (15,718) OTHER FINANCING SOURCES (USES) Sale of real property 725,000 2,213,000 2,257,437 44,437 Transfers in 6,556,932 6,556,932 6,556,932 Transfers out (1,488,000) (1,487,975) 25 Total Other Financing Sources 7,281,932 7,281,932 7,326,394 44,462 Net Change in Fund Balance (338,001 ) (338,001 ) (309,257) 28,744 Fund Balance - Beginning of Year 338,001 338,001 2,769,068 2,431,067 Fund Balance - End of Year $ $ $ 2,459,811 $ 2,459,811 83 2011 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) $ 85,874 $ 85,874 $ 36,856 $ (49,018) 4,575,935 4,575,935 4,575,934 1 7,875 7,875 7,875 120,000 120,000 120,000 4,703,810 4,703,810 4,703,809 1 3,002,948 3,002,948 3,002,947 1 202 202 202 9,000 9,000 9,000 3,012,150 3,012,150 3,012,149 1 7,715,960 7,715,960 7,715,958 2 (7,630,086) (7,630,086) (7,679,102) (49,016) 730,000 730,000 729,235 (765) 6,610,086 6,610,086 6,717,021 106,935 7,340,086 7,340,086 7,446,256 106,170 (290,000) (290,000) (232,846) 57,154 290,000 290,000 3,001,914 2,711,914 $ $ $ 2,769,068 $ 2,769,068 84 (This page intentionally left blank) NON-MAJOR GOVERNMENTAL FUNDS • Community Development and Section 8 Housing Assistance Funds - The Community Development and Section 8 Housing Assistance funds are used to account for projects and subsidies financed by entitlements from the United States Department of Housing and Urban Development. • Special Purpose Fund - The Special Purpose Fund is used to account for assets held by the City in accordance with the terms of a trust agreement. City of New Rochelle, New York Non-Major Governmental Funds Combining Balance Sheet December 31, 2012 (With Comparative Totals for 2011) Section 8 Community Housing Special Development Assistance Purpose ASSETS Cash and equivalents $ $ 848,968 $ Receivables Accounts 26,598 State and Federal aid 134,631 Loans 238,242 Due from other funds 250,423 693,481 372,873 277,021 693,481 Total Assets $ 372,873 $ 1,125,989 $ 693,481 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 7,094 $ 3,458 $ 24,597 Due to other funds 86,091 Unearned revenues 279,688 26,598 Total Liabilities 372,873 30,056 24,597 Fund balances Restricted 668,884 Assigned 1,095,933 Total Fund Balances 1,095,933 668,884 Total Liabilities and Fund Balances $ 372,873 $ 1,125,989 $ 693,481 85 Total Non-Major Governmental Funds 2012 2011 $ 848,968 $ 940,042 26,598 26,598 134,631 629,075 238,242 238,242 943,904 942,446 1,343,375 1,836,361 $ 2,192,343 $ 2,776,403 $ 35,149 $ 258,240 86,091 396,278 306,286 307,217 427,526 961,735 668,884 686,357 1,095,933 1,128,311 1,764,817 1,814,668 $ 2,192,343 $ 2,776,403 86 City of New Rochelle, New York Non-Major Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended December 31,2012 (With Comparative Totals for 2011) Section 8 Community Housing Special Development Assistance Purpose REVENUES Use of money and property $ $ 1,479 $ 149 Federal aid 1,012,462 11,400,830 Miscellaneous 21,278 175,236 Total Revenues 1,012,462 11,423,587 175,385 EXPENDITURES Current Economic opportunity and development 11,455,965 Culture and recreation 32,858 Home and community services 1,012,462 Total Expenditures 1,012,462 11,455,965 32,858 Excess (Deficiency) of Revenues Over Expenditures (32,378) 142,527 OTHER FINANCINGS USES Transfers out (160,000) Net Change in Fund Balances (32,378) (17,473) Fund Balances - Beginning of Year 1,128,311 686,357 Fund Balances - End of Year $ $ 1,095,933 $ 668,884 87 Total Non-Major Governmental Funds 2012 2011 $ 1,628 $ 1,826 12,413,292 15,154,942 196,514 411,061 12,611,434 15,567,829 11,455,965 11,267,912 32,858 46,031 1,012,462 3,792,866 12,501,285 15,106,809 110,149 461,020 (160,000) (138,000) (49,851) 323,020 1,814,668 1,491,648 $ 1,764,817 $ 1,814,668 88 (This page intentionally left blank) City of New Rochelle, New York Community Development Fund Comparative Balance Sheet December 31, 2012 2011 ASSETS Receivables State and Federal aid $ 134,631 $ 629,075 Loans 238,242 238,242 Total Assets $ 372,873 $ 867,317 LIABILITIES Accounts payable $ 7,094 $ 190,420 Due to other funds 86,091 396,278 Unearned revenues 279,688 280,619 Total Liabilities $ 372,873 $ 867,317 89 City of New Rochelle, New York Community Development Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Years Ended December 31, 2012 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Federal aid $ 3,225,964 $ 2,941,363 $ 1,012,462 $ (1,928,901) EXPENDITURES Current Home and community services 3,225,964 2,941,363 1,012,462 1,928,901 Excess of Revenues Over Expenditures Fund Balance - Beginning of Year Fund Balance - End of Year $ $ $ $ 90 2011 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) $ 3,591,879 $ 4,994,059 $ 3,792,866 $ (1,201,193) 3,591,879 4,994,059 3,792,866 1,201,193 $ $ $ =$==== 91 (This page intentionally left blank) City of New Rochelle, New York Section 8 Housing Assistance Fund Comparative Balance Sheet December 31, 2012 2011 ASSETS Cash Demand deposits $ 848,968 $ 940,042 Receivables Accounts 26,598 26,598 Due from other funds 250,423 203,213 277,021 229,811 Total Assets $ 1,125,989 $ 1,169,853 LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 3,458 $ 14,944 Unearned revenues 26,598 26,598 Total Liabilities 30,056 41,542 Fund Balance Assigned 1,095,933 1,128,311 Total Liabilities and Fund Balance $ 1,125,989 $ 1,169,853 92 City of New Rochelle, New York Section 8 Housing Assistance Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - BUdget and Actual Years Ended December 31, 2012 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Use of money and property $ $ $ 1,479 $ 1,479 Federal aid 11,310,730 11,405,730 11,400,830 (4,900) Miscellaneous 35,500 35,500 21,278 (14,222) Total Revenues 11,346,230 11,441,230 11,423,587 (17,643) EXPENDITURES Current Economic opportunity and development 11,362,890 11,457,890 11,455,965 1,925 Excess (Deficiency) of Revenues Over Expenditures (16,660) (16,660) (32,378) (15,718) Fund Balance - Beginning of Year 16,660 16,660 1,128,311 1,111,651 Fund Balance - End of Year $ $ $ 1,095,933 $ 1,095,933 93 2011 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) $ 4,532 $ 4,532 $ 1,675 $ (2,857) 11,445,906 11,445,906 11,362,076 (83,830) 26,892 27,772 31,757 3,985 11,477,330 11,478,210 11,395,508 (82,702) 11,317,787 11,318,667 11,267,912 50,755 159,543 159,543 127,596 (31,947) (159,543) (159,543) 1,000,715 1,160,258 $ $ $ 1,128,311 $ 1,128,311 94 City of New Rochelle, New York Special Purpose Fund Comparative Balance Sheet December 31, 2012 2011 ASSETS Due from other funds $ 693,481 $ 739,233 LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 24,597 $ 52,876 FUND BALANCE Restricted 668,884 686,357 Total Liabilities and Fund Balance $ 693,481 $ 739,233 95 City of New Rochelle, New York Special Purpose Fund Comparative Statement of Revenues, Expenditures and Changes in Fund Balance Years Ended December 31, 2012 And 2011 2012 2011 REVENUES Use of money and property $ 149 $ 151 Miscellaneous 175,236 379,304 Total Revenues 175,385 379,455 EXPENDITURES Current Culture and recreation 32,858 46,031 Excess of Revenues over Expenditures 142,527 333,424 OTHER FINANCING USES Transfers out (160,000) (138,000) Net Change in Fund Balance (17,473) 195,424 Fund Balance - Beginning of Year 686,357 490,933 Fund Balance - End of Year $ 668,884 $ 686,357 96 (This page intentionally left blank) ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated in a manner similar to private enterprises or where the governing body has decided that periodic determination of revenues earned, expenses incurred and/or net income is necessary for management accountability. Enterprise funds are used to account for those operations that provide services to the public. The Enterprise funds of the City are as follows: Parking Facilities Fund - This fund has been established to account for revenues and expenses related to the operation and maintenance of all City-owned parking facilities. Municipal Marina Fund - This fund has been established to account for revenues and expenses related to the operation and maintenance of a marina within the City of New Rochelle. Railroad Station Fund - This fund has been established to account for revenues and expenses related to the ownership of the railroad station land and building located within the City of New Rochelle. (This page intentionally left blank) City of New Rochelle, New York Enterprise Fund - Parking Facilities Fund Comparative Statement of Net Position December 31, 2012 2011 ASSETS Current assets Cash Petty cash $ 7,224 $ 7,224 Receivables Accounts 756 Due from other funds 2,468,174 2,743,915 2,468,930 2,743,915 Total Current Assets 2,476,154 2,751,139 Noncurrent assets Capital assets Not being depreciated 2,736,206 2,736,206 Being depreciated, net 17,558,314 18,249,873 Total Noncurrent Assets 20,294,520 20,986,079 Total Assets 22,770,674 23,737,218 LIABILITIES Current liabilities Accounts payable 125,320 361,289 Accrued liabilities 60,000 60,000 Accrued interest payable 138,295 152,444 Unearned revenues 292,753 338,845 Total Current Liabilities 616,368 912,578 Noncurrent liabilities Bonds payable Due within one year 1,455,500 1,530,028 Due in more than one year 16,213,442 17,668,942 Total Noncurrent Liabilities 17,668,942 19,198,970 Total Liabilities 18,285,310 20,111,548 NET POSITION Net investment in capital assets 2,625,578 1,787,109 Restricted for capital improvements 1,255,701 1,105,701 Unrestricted 604,085 732,860 Total Net Assets $ 4,485,364 $ 3,625,670 97 City of New Rochelle, New York Enterprise Fund - Parking Facilities Fund Comparative Statement of Revenues, Expenses and Changes in Net Position Years Ended December 31, 2012 2011 OPERATING REVENUES Charges for services $ 4,237,210 $ 4,042,773 OPERATING EXPENSES Contractual 2,156,867 2,171,071 Fees for services 358,916 346,712 Depreciation 875,056 863,365 Total Operating Expenses 3,390,839 3,381,148 Income from Operations 846,371 661,625 NON-OPERATING REVENUES (EXPENSES) Interest income 4,941 8,000 Interest expense (691,618) (1,161,396) Total Non-Operating Expenses (686,677) (1,153,396) Income (Loss) Before Transfers 159,694 (491,771) Transfers in 700,000 1,250,000 Change in Net Position 859,694 758,229 Net Position - Beginning of Year 3,625,670 2,867,441 Net Position - End of Year $ 4,485,364 $ 3,625,670 98 City of New Rochelle, New York Enterprise Fund - Parking Facilities Fund Comparative Statement of Cash Flows Years Ended December 31, 2012 2011 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from charges for services $ 4,466,103 $ 2,797,249 Cash payments for fees for services (358,916) (346,712) Cash payments to vendors (2,392,836) (2,610,185) Net Cash from Operating Activities 1,714,351 (159,648) CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers in 700,000 1,250,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from bonds 20,000,000 Principal paid on bonds (1,530,028) (1,229,556) Acquisition and construction of capital assets (183,497) (180,002) Interest paid on bonds (705,767) (242,337) Principal paid on capital lease (18,675,000) Interest paid on capital lease (772,736) Net Cash from Capital and Related Financing Activities (2,419,292) (1,099,631 ) CASH FLOWS FROM INVESTING ACTIVITIES Interest income 4,941 8,000 Net Change in Cash (1,279) Cash - Beginning of Year 7,224 8,503 Cash - End of Year $ 7,224 $ 7,224 RECONCILIATION OF INCOME FROM OPERATIONS TO NET CASH FROM OPERATING ACTIVITIES Income from operations $ 846,371 $ 661,625 Adjustments to reconcile income from operations to net cash from operating activities Depreciation 875,056 863,365 Changes in assets and liabilities Accounts receivable (756) 41,763 Due from other funds 275,741 (1,366,137) Accounts payable (235,969) 101,939 Accrued liabilities (154,000) Due to component unit (387,053) Unearned revenues (46,092) 78,850 Net Cash from Operating Activities $ 1,714,351 $ (159,648) 99 City of New Rochelle, New York Enterprise Fund - Municipal Marina Fund Comparative Statement of Net Position December 31, 2012 2011 ASSETS Current assets Cash Petty cash $ 100 $ 100 Receivables Accounts 17,602 Due from other funds 323,114 318,419 323,114 336,021 Total Current Assets 323,214 336,121 Noncurrent assets Capital assets Not being depreciated 54,037 54,037 Being depreciated, net "1,672,649 1,801,720 Total Noncurrent Assets 1,726,686 1,855,757 Total Assets 2,049,900 2,191,878 LIABILITIES Current liabilities Accounts payable 33,725 19,720 Accrued interest payable 9,839 12,289 Total Current Liabilities 43,564 32,009 Noncurrent liabilities Bond payable Due within one year 164,902 184,804 Due in more than one year 589,903 754,806 Total Noncurrent Liabilities 754,805 939,610 Total Liabilities 798,369 971,619 NET POSITION Net investment in capital assets 971,881 916,147 Unrestricted 279,650 304,112 Total Net Position $ 1,251,531 $ 1,220,259 100 City of New Rochelle, New York Enterprise Fund - Municipal Marina Fund Comparative Statement of Revenues, Expenses and Changes in Net Position Years Ended December 31, 2012 2011 OPERATING REVENUES Charges for services $ 1,581,897 $ 1,571,598 OPERATING EXPENSES Contractual 865,448 804,229 Fees for services 528,049 491,372 Depreciation 129,071 134,609 Total Operating Expenses 1,522,568 1,430,210 Income from Operations 59,329 141,388 NON-OPERATING REVENUES (EXPENSES) Interest income 3,242 2,211 Interest expense (31,299) (38,908) Total Non-Operating Expenses (28,057) (36,697) Change in Net Position 31,272 104,691 Net Position - Beginning of Year 1,220,259 1,115,568 Net Position - End of Year $ 1,251,531 $ 1,220,259 101 City of New Rochelle, New York Enterprise Fund - Municipal Marina Fund Comparative Statement of Cash Flows Years Ended December 31, 2012 2011 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from charges for services $ 1,594,803 $ 1,573,983 Cash payments for fees for services (528,049) (491,372) Cash payments to vendors (851,443) (793,886) Net Cash from Operating Activities 215,311 288,725 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal paid on bonds (184,804) (179,510) Acquisition and construction of capital assets (70,269) Interest paid on bonds (33,749) (41,157) Net Cash from Capital and Related Financing Activities (218,553) (290,936) CASH FLOWS FROM INVESTING ACTIVITIES Interest income 3,242 2,211 Net Change in Cash Cash - Beginning of Year 100 100 Cash - End of Year $ 100 $ 100 RECONCILIATION OF INCOME FROM OPERATIONS TO NET CASH FROM OPERATING ACTIVITIES Income from operations $ 59,329 $ 141,388 Adjustments to reconcile income from operations to net cash from operating activities Depreciation 129,071 134,609 Changes in assets and liabilities Accounts receivable 17,601 (15,111) Due from other funds (4,695) 17,497 Accounts payable 14,005 10,342 Net Cash from Operating Activities $ 215,311 $ 288,725 102 City of New Rochelle, New York Enterprise Fund - Railroad Station Fund Comparative Statement of Net Position December 31, 2012 2011 ASSETS Current assets Receivables Accounts $ 9,803 $ 7,250 Due from other funds 2,465,003 1,946,165 Total Current Assets 2,474,806 1,953,415 Noncurrent assets Capital assets Not being depreciated 3,079,603 3,079,603 Being depreciated, net 14,966,723 15,484,547 18,046,326 18,564,150 Total Assets 20,521,132 20,517,565 LIABILITIES Current liabilities Accounts payable 53,263 47,359 Accrued interest payable 22,728 24,588 Unearned revenues 506,665 510,050 Total Current Liabilities 582,656 581,997 Noncurrent liabilities Bonds payable Due within one year 140,000 135,000 Due in more than one year 1,795,000 1,935,000 Total Noncurrent Liabilities 1,935,000 2,070,000 Total Liabilities 2,517,656 2,651,997 NET POSITION Net investment in capital assets 16,111,326 16,494,150 Unrestricted 1,892,150 1,371,418 Total Net Position $ 18,003,476 $ 17,865,568 103 City of New Rochelle, New York Enterprise Fund - Railroad Station Fund Comparative Statement of Revenues, Expenses and Changes in Net Position Years Ended December 31, 2012 2011 OPERATING REVENUES Charges for services $ 1,552,170 $ 1,531,805 OPERATING EXPENSES Contractual 666,471 685,505 Fees for services 154,664 136,266 Depreciation 517,824 514,324 Total Operating Expenses 1,338,959 1,336,095 Income from Operations 213,211 195,710 NON-OPERATING REVENUES (EXPENSES) Interest income 3,462 3,616 Interest expense (78,765) (84,633) Total Non-Operating Expenses (75,303) (81,017) Change in Net Position 137,908 114,693 Net Position - Beginning of Year 17,865,568 17,750,875 Net Position - End of Year $ 18,003,476 $ 17,865,568 104 City of New Rochelle, New York Enterprise Fund - Railroad Station Fund Comparative Statement of Cash Flows Years Ended December 31, 2012 2011 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from charges for services $ 1,027,394 $ 1,052,295 Cash payments for fees for services (154,664) (136,266) Cash payments to vendors (660,567) (668,720) Net Cash from Operating Activities 212,163 247,309 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal paid on bonds (135,000) (130,000) Acquisition and construction of capital assets (35,000) Interest paid on bonds (80,625) (85,925) Net Cash from Capital and Related Financing Activities (215,625) (250,925) CASH FLOWS FROM INVESTING ACTIVITIES Interest income 3,462 3,616 Net Change in Cash Cash - Beginning of Year Cash - End of Year $ $ RECONCILIATION OF INCOME FROM OPERATIONS TO NET CASH FROM OPERATING ACTIVITIES Income from operations $ 213,211 $ 195,710 Adjustments to reconcile income from operations to net cash from operating activities Depreciation 517,824 514,324 Changes in assets and liabilities Accounts receivable (2,553) 5,642 Due from other funds (518,838) (531,716) Accounts payable 5,904 16,785 Unearned revenues (3,385) 46,564 Net Cash from Operating Activities $ 212,163 $ 247,309 105 (This page intentionally left blank) INTERNAL SERVICE FUNDS Internal service funds account for operations that provide services to other departments or agencies of the government, or to other governments, on a cost reimbursement basis. The internal service funds of the City are as follows: Workers' Compensation Benefits Fund - This fund has been established to account for the City's workers' compensation benefits. This program is self-insured by the City. General Liability Claims Fund - This fund has been established to account for the City's general liability claims. The deductible provisions of the general liability program are self-insured by the City. Central Garage Fund - This fund is used to account for repairs and maintenance of motor vehicles that are charged to each department. City of New Rochelle, New York Internal Service Funds Combining Statement of Net Position December 31,2012 (With Comparative Totals for 2011) Workers' General Compensation Liability Central Benefits Claims Garage ASSETS Current assets Petty cash $ $ $ 65 Investments 1,570,448 3,487,479 Receivables Accounts 71,240 20,695 Due from other funds 2,347,554 24,048 2,418,794 44,743 Inventories 249,889 Total Current Assets 3,989,242 3,487,479 294,697 Noncurrent assets Capital assets Being depreciated, net 44,997 Total Assets 3,989,242 3,487,479 339,694 LIABILITIES Current liabilities Accounts payable 53,221 107,108 262,116 Due to other funds 1,316,952 Total Current Liabilities 53,221 1,424,060 262,116 Noncurrent liabilities Claims payable Due within one year 529,000 148,000 Due in more than one year 4,763,533 1,328,628 Total Noncurrent Liabilities 5,292,533 1,476,628 Total Liabilities 5,345,754 2,900,688 262,116 NET POSITION Net investment in capital assets 44,997 Unrestricted (1,356,512) 586,791 32,581 Total Net Position $ (1,356,512) $ 586,791 $ 77,578 106 Totals 2012 2011 $ 65 $ 65 5,057,927 5,027,752 91,935 92,979 2,371,602 1,197,333 2,463,537 1,290,312 249,889 219,965 7,771,418 6,538,094 44,997 71,520 7,816,415 6,609,614 422,445 205,512 1,316,952 90,677 1,739,397 296,189 677,000 659,609 6,092,161 5,130,000 6,769,161 5,789,609 8,508,558 6,085,798 44,997 71,520 (737,140) 452,296 $ (692,143) $ 523,816 107 City of New Rochelle, New York Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Net Position Year Ended December 31,2012 (With Comparative Totals for 2011) Workers' General Compensation Liability Central Benefits Claims Garage OPERATING REVENUES Charges for services $ 1,006,013 $ 1,200,000 $ 2,368,141 Insurance recoveries 31,965 Total Operating Revenues 1,037,978 1,200,000 2,368,141 OPERATING EXPENSES Supplies 20,257 1,137,498 Insurance 712,848 12,569 Contractual 189,307 Employee benefits 1,923,242 Judgments and claims 300,448 Fees for services 18,532 351,995 1,159,034 Depreciation 26,523 Total Operating Expenses 2,131,081 1,385,548 2,335,624 Income (Loss) From Operations (1,093,103) (185,548) 32,517 NON-OPERATING REVENUES Interest income 9,368 20,807 Income (Loss) Before Transfers (1,083,735) (164,741) 32,517 TRANSFERS Transfers in 1,500,000 Transfers out (1,500,000) Total Transfers 1,500,000 (1,500,000) Change in Net Position 416,265 (1, 664, 741 ) 32,517 Net Position - Beginning of Year (1,772,777) 2,251,532 45,061 Net Position - End of Year $ (1,356,512) $ 586,791 $ 77,578 108 Totals 2012 2011 $ 4,574,154 $ 4,239,709 __----.:3;..;.1='9~65~ 156,347 4,606,119 4,396,056 1,157,755 1,015,030 725,417 726,353 189,307 299,611 1,923,242 1,339,000 300,448 (90,765) 1,529,561 1,404,381 26,523 26,523 5,852,253 4,720,133 (1,246,134) (324,077) 30,175 50,216 (1,215,959) (273,861 ) 1,500,000 (1,500,000) (1,215,959) (273,861) 523,816 797,677 $ (692,143) =$==5=23=,=81=6= 109 City of New Rochelle, New York Internal Service Funds Combining Statement of Cash Flows Year Ended December 31, 2012 (With Comparative Totals for 2011) Workers' General Compensation Liability Central Benefits Claims Garage CASH FLOWS FROM OPERATING ACTIVITIES Cash received from charges for services $ 1,006,013 $ 2,991,421 $ 2,256,655 Cash received from insurance recoveries 29,770 Cash payments to other funds for reimbursement of operating transactions (1,624,690) Cash payments to insurance carriers and claimants (892,561 ) (1,119,169) Cash payments for fees for services (18,532) (351,995) (1,159,034) Cash payments to vendors (20,257) (1,097,621) Net Cash from Operating Activities (1,500,000) 1,500,000 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers in 1,500,000 Transfers out (1,500,000) Net Cash from Non-Capital Financing Activities 1,500,000 (1,500,000) CASH FLOWS FROM INVESTING ACTIVITIES Sale of investments 1,561,080 3,466,672 Purchase of investments (1,570,448) (3,487,479) Interest income 9,368 20,807 Net Cash from Investing Activities Net Change in Cash Cash - Beginning of Year 65 Cash - End of Year $ $ $ 65 RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS TO NET CASH FROM OPERATING ACTIVITIES Income (loss) from operations $ (1,093,103) $ (185,548) $ 32,517 Adjustments to reconcile income (loss) from operations to net cash from operating activities Depreciation 26,523 Changes in operating assets and liabilities Accounts receivable (2,195) 3,239 Due from other funds (1,624,690) 474,469 (24,048) Inventories (29,924) Accounts payable 27,455 107,108 82,370 Due to other funds 1,316,952 (90,677) Claims payable 1,192,533 (212,981 ) Net Cash from Operating Activities $ (1,500,000) $ 1,500,000 $ 110 Totals 2012 2011 $ 6,254,089 $ 4,139,623 29,770 152,651 (1,624,690) (2,011,730) (1,857,380) (1,529,561 ) (1,404,381 ) (1,117,878) (1,030,513) 1,500,000 (1,500,000) 5,027,752 4,977,536 (5,057,927) (5,027,752) 30,175 50,216 65 65 =$====6=5= =$=====6==:5= $ (1,246,134) $ (324,077) 26,523 26,523 1,044 339 (1,174,269) (137,246) (29,924) (46,376) 216,933 58,978 1,226,275 33,125 979,552 388,734 $ $ 111 City of New Rochelle, New York Internal Service Fund - Workers' Compensation Benefits Fund Comparative Statement of Net Position December 31, 2012 2011 ASSETS Investments $ 1,570,448 $ 1,561,080 Receivables Accounts 71,240 69,045 Due from other funds 2,347,554 722,864 2,418,794 791,909 Total Assets 3,989,242 2,352,989 LIABILITIES Current liabilities Accounts payable 53,221 25,766 Noncurrent liabilities Claims payable Due within one year 529,000 410,000 Due in more than one year 4,763,533 3,690,000 Total Noncurrent Liabilities 5,292,533 4,100,000 Total Liabilities 5,345,754 4,125,766 NET POSITION Unrestricted $ (1,356,512) $ (1,772,777) 112 City of New Rochelle, New York Internal Service Fund - Workers' Compensation Benefits Fund Comparative Statement of Revenues, Expenses and Changes in Net Position Years Ended December 31, 2012 2011 OPERATING REVENUES Charges for services $ 1,006,013 $ 469,469 Insurance recoveries 31,965 156,347 Total Operating Revenues 1,037,978 625,816 OPERATING EXPENSES Contractual 189,307 299,611 Employee benefits 1,923,242 1,339,000 Fees for services 18,532 18,333 Total Operating Expenses 2,131,081 1,656,944 Loss From Operations (1,093,103) (1,031,128) NON-OPERATING REVENUES Interest income 9,368 15,659 Loss Before Transfers (1,083,735) (1,015,469) Transfers in 1,500,000 Change in Net Position 416,265 (1,015,469) Net Position - Beginning of Year (1,772,777) (757,308) Net Position - End of Year $ (1,356,512) $ (1,772,777) 113 City of New Rochelle, New York Internal Service Fund - Workers' Compensation Benefits Fund Comparative Statement of Cash Flows Years Ended December 31, 2012 2011 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from charges for services $ 1,006,013 $ 806,692 Cash received from insurance recoveries 29,770 152,651 Cash payments to other funds for reimbursement of operating transactions (1,624,690) Cash payments to insurance carriers and claimants (892,561) (941,010) Cash payments for fees for services (18,532) (18,333) Net Cash from Operating Activities (1,500,000) CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers In 1,500,000 CASH FLOWS FROM INVESTING ACTIVITIES Sale of investments 1,561,080 1,545,421 Purchase of investments (1,570,448) (1,561.,080) Interest income 9,368 15,659 Net Cash from Investing Activities Net Change in Cash Cash - Beginning of Year Cash - End of Year $ $ RECONCILIATION OF LOSS FROM OPERATIONS TO NET CASH FROM OPERATING ACTIVITIES Loss from operations $ (1,093,103) $ (1,031,128) Adjustments to reconcile loss from operations to net cash from operating activities Changes in assets and liabilities Accounts receivable (2,195) (3,696) Due from other funds (1,624,690) 337,223 Accounts payable 27,455 17,847 Claims payable 1,192,533 679,754 Net Cash from Operating Activities $ (1,500,000) $ 114 City of New Rochelle, New York Internal Service Fund - General Liability Claims Fund Comparative Statement of Net Position December 31, 2012 2011 ASSETS Investments $ 3,487,479 $ 3,466,672 Due from other funds 474,469 Total Assets 3,487,479 3,941,141 LIABILITIES Current liabilities Accounts payable 107,108 Due to other funds 1,316,952 Total Liabilities 1,424,060 Noncurrent liabilities Claims payable Due within one year 148,000 249,609 Due in more than one year 1,328,628 1,440,000 Total Noncurrent Liabilities 1,476,628 1,689,609 Total Liabilities 2,900,688 1,689,609 NET POSITION Unrestricted $ 586,791 $ 2,251,532 115 City of New Rochelle, New York Internal Service Fund - General Liability Claims Fund Comparative Statement of Revenues, Expenses and Changes in Net Position Years Ended December 31, 2012 2011 OPERATING REVENUES Charges for services $ 1,200,000 $ 1,700,002 OPERATING EXPENSES Supplies 20,257 13,531 Insurance 712,848 716,115 Judgments and claims 300,448 (90,765) Fees for services 351,995 274,341 Total Operating Expenses 1,385,548 913,222 Income (Loss) From Operations (185,548) 786,780 NON-OPERATING REVENUES Interest income 20,807 34,557 Income (Loss) Before Transfers (164,741) 821,337 Transfers out (1,500,000) Change in Net Position (1,664,741 ) 821,337 Net Position - Beginning of Year 2,251,532 1,430,195 Net Position - End of Year $ 586,791 $ 2,251,532 116 City of New Rochelle, New York Internal Service Fund - General Liability Claims Fund Comparative Statement of Cash Flows Years Ended December 31, 2012 2011 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from charges for services $ 2,991,421 $ 1,204,242 Cash payments to insurance carriers and claimants (1,119,169) (916,370) Cash payments for fees for services (351,995) (274,341) Cash payments to vendors (20,257) (13,531) Net Cash from Operating Activities 1,500,000 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers out (1,500,000) CASH FLOWS FROM INVESTING ACTIVITIES Sale of investments 3,466,672 3,432,115 Purchase of investments (3,487,479) (3,466,672) Interest income 20,807 34,557 Net Cash from Investing Activities Net Change in Cash Cash - Beginning of Year Cash - End of Year $ $ RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS TO NET CASH FROM OPERATING ACTIVITIES Income (loss) from operations $ (185,548) $ 786,780 Adjustments to reconcile income (loss) from operations to net cash from operating activities Changes in assets and liabilities Due from other funds 474,469 (474,469) Accounts payable 107,108 Due to other funds 1,316,952 (21,291) Claims payable (212,981) (291,020) Net Cash from Operating Activities $ 1,500,000 $ 117 City of New Rochelle, New York Internal Service Fund - Central Garage Fund Comparative Statement of Net Position December 31, 2012 2011 ASSETS Current assets Petty cash $ 65 $ 65 Accounts receivable 20,695 23,934 Due from other funds 24,048 Inventories 249,889 219,965 Total Current Assets 294,697 243,964 Noncurrent assets Capital assets Being depreciated, net 44,997 71,520 Total Assets 339,694 315,484 LIABILITIES Current liabilities Accounts payable 262,116 179,746 Due to other funds 90,677 Total Liabilities 262,116 270,423 NET POSITION Net investment in capital assets 44,997 71,520 Unrestricted 32,581 (26,459) Total Net Position $ 77,578 $ 45,061 118 City of New Rochelle, New York Internal Service Fund - Central Garage Fund Comparative Statement of Revenues, Expenses and Changes in Net Position Years Ended December 31, 2012 2011 OPERATING REVENUES Charges for services $ 2,368,141 $ 2,070,238 OPERATING EXPENSES Supplies 1,137,498 1,001,499 Insurance 12,569 10,238 Fees for services 1,159,034 1,111,707 Depreciation 26,523 26,523 Total Operating Expenses 2,335,624 2,149,967 Income (Loss) from Operations 32,517 (79,729) Net Position - Beginning of Year 45,061 124,790 Net Position - End of Year $ 77,578 $ 45,061 119 120 City of New Rochelle, New York Fiduciary Fund - Agency Fund Schedule of Changes in Assets and Liabilities Year Ended December 31,2012 Balance Balance January 1, December 31, 2012 Increases Decreases 2012 ASSETS Investments $ 2,234,271 $ 17,663 $ 1,394 $ 2,250,540 Accounts Receivable 2,573,248 41,730,102 42,178,978 2,124,372 Total Assets $ 4,807,519 $ 41,747,765 $ 42,180,372 $ 4,374,912 LlASI LlTI ES Net Payroll $ $ 32,267,216 $ 32,267,216 $ Employee Payroll Deductions 630,917 46,197,824 46,779,822 48,919 Deposits and Overpayments 4,176,602 1,295,419 1,146,028 4,325,993 Total Liabilities $ 4,807,519 $ 79,760,459 $ 80,193,066 $ 4,374,912 121 (This page intentionally left blank) STATISTICAL SECTION (UNAUDITED) (This page intentionally left blank) Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. These schedules include: Net Position by Component Changes in Net Position Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds City of New Rochelle, New York Net Position By Component Last Ten Fiscal Years 2003 2004 2005 2006 GOVERNMENTAL ACTIVITIES Net Investment in Capital Assets $ 139,535,269 $ 119,401,236 $ 117,654,820 $ 118,750,335 Restricted 5,986,974 7,026,146 10,722,767 8,214,381 Unrestricted (30,736,444) (26,350,124) (16,635,229) (11,558,242) Total Governmental Activities Net Position $ 114,785,799 $ 100,077,258 $ 111,742,358 $ 115,406,474 BUSINESS-TYPE ACTIVITIES Net Investment in Capital Assets $ 3,786,713 $ 17,307,154 $ 19,174,868 $ 18,869,906 Restricted 456,548 571,544 686,540 801,530 Unrestricted 338,436 2,167,785 9,100 476,903 Total Business - Type Activities Net Position $ 4,581,697 $ 20,046,483 $ 19,870,508 $ 20,148,339 PRIMARY GOVERNMENT Net Investment in Capital Assets $ 143,321,982 $ 136,708,390 $ 136,829,688 $ 137,620,241 Restricted 6,443,522 7,597,690 11,409,307 9,015,911 Unrestricted (30,398,008) (24,182,339) (16,626,129) (11,081,339) Total Primary Government Net Position $ 119,367,496 $ 120,123,741 $ 131,612,866 $ 135,554,813 122 2007 2008 2009 2010 2011 2012 $ 126,008,637 $ 123,898,279 $ 122,009,979 $ 118,958,503 $ 119,457,370 $ 119,907,525 9,810,903 10,184,570 9,220,451 8,177,734 13,038,775 8,979,550 (24,409,932) (32,599,633) (43,715,980) (46,715,267) (65,457,533) (73,371,791 ) $ 111,409,608 $ 101,483,216 $ 87,514,450 $ 80,420,970 $ 67,038,612 $ 55,515,284 $ 18,914,969 $ 19,315,999 $ 20,077,046 $ 20,210,368 $ 19,197,406 $ 19,708,785 951,530 1,101,530 805,701 955,701 1,105,701 1,255,701 823,855 859,954 774,290 567,815 2,408,390 2,775,885 $ 20,690,354 $ 21,277,483 $ 21,657,037 $ 21,733,884 $ 22,711,497 $ 23,740,371 $ 144,923,606 $ 143,214,278 $ 142,087,025 $ 139,168,871 $ 138,654,776 $ 139,616,310 10,762,433 11,286,100 10,026,152 9,133,435 14,144,476 10,235,251 (23,586,077) (31,739,679) (42,941,690) (46,147,452) (63,049,143) (70,595,906) $ 132,099,962 $ 122,760,699 $ 109,171,487 $ 102,154,854 $ 89,750,109 $ 79,255,655 123 City of New Rochelle, New York Changes In Net Position Last Ten Fiscal Years 2003 2004 2005 2006 EXPENSES Governmental Activities General government support $ 10,002,845 $ 11,299,008 $ 10,743,728 $ 11,179,860 Public safety 43,811,871 50,658,223 52,050,839 55,852,600 Transportation 5,336,008 4,293,125 6,567,389 6,191,506 Economic opportunity and development 952,471 14,783,272 10,143,311 15,528,513 Culture and recreation 5,397,961 4,513,208 4,339,270 4,527,703 Home and commur;Jity services 21,038,652 14,957,922 13,918,398 14,323,354 Interest 4,808,257 3,652,972 3,362,773 3,979,455 Total Governmental Activities Expenses 91,348,065 104,157,730 101,125,708 111,582,991 Business-type Activities Parking facilities 4,671,601 4,634,980 4,766,362 4,670,613 Railroad station 110,114 601,441 1,194,431 1,326,571 Municipal marina 854,923 948,236 930,560 891,865 Total Business-type Activities Expenses 5,636,638 6,184,657 6,891,353 6,889,049 Total Primary Government Expenses $ 96,984,703 $ 110,342,387 $ 108,017,061 $ 118,472,040 PROGRAM REVENUES Governmental Activities Charges for Services General government support 1,720,557 1,695,799 1,690,244 ' 1,879,102 Public safety 1,973,840 2,491,745 2,920,348 3,916,898 Transportation 13,197 13,094 272,410 278,232 Economic opportunity and development 124,069 124,064 121,529 145,064 Culture and recreation 413,227 345,097 439,411 448,531 Home and community services 1,879,505 7,095,693 6,318,308 6,163,984 Operating Grants and Contributions 15,533,675 17,643,646 15,718,291 15,475,102 Capital Grants and Contributions 11,183,313 1,734,299 8,398,210 5,583,472 Total Governmental Activities .Program Revenues 32,841,383 31,143,437 35,878,751 33,890,385 Business-type Activities Charges for Services Parking facilities 2,912,531 2,666,365 2,603,631 2,872,425 Railroad station 38,198 297,039 842,889 999,179 Municipal marina 870,129 783,920 1,149,461 1,211,518 Capital Grants and Contributions 2,481,200 Total Business-type Activities Program Revenues 3,820,858 6,228,524 4,595,981 5,083,122 Total Primary Government Program Revenues $ 36,662,241 $ 37,371,961 $ 40,474,732 $ 38,973,507 124 2007 2008 2009 2010 2011 2012 $ 13,462,017 $ 14,069,998 $ 14,387,231 $ 16,070,229 $ 16,618,891 $ 18,094,901 62,985,325 65,012,257 67,147,137 68,426,551 71,319,925 71,573,690 8,021,043 7,315,425 10,472,228 7,337,857 6,775,563 9,253,671 10,993,057 11,735,769 13,965,495 12,777,322 13,480,267 13,668,496 5,137,696 5,537,299 5,562,588 6,837,956 5,028,336 5,956,887 16,368,229 18,461,623 17,723,434 16,675,034 18,327,071 19,144,141 3,605,678 4,000,597 3,567,083 3,310,939 3,094,129 2,899,533 120,573,045 126,B2,968 132,825,196 131,435,888 134,644,182 140,591,319 4,646,127 4,886,839 4,890,961 4,993,324 4,542,544 4,082,457 1,309,308 1,395,661 1,359,299 1,397,285 1,420,728 1,417,724 980,071 1,319,876 1,282,286 1,369,736 1,469,118 1,553,867 6,935,506 7,602,376 7,532,546 7,760,345 7,432,390 7,054,048 $ 127,508,551 $ 133,735,344 $ 140,357,742 $ 139,196,233 $ 142,076,572 $ 147,645,367 2,425,625 2,303,333 1,911,581 1,758,720 2,088,599 1,834,421 4,752,555 4,214,652 3,805,637 2,874,479 2,803,351 2,810,497 405,268 384,799 402,595 433,902 427,500 495,000 143,423 117,898 108,636 108,029 130,593 219,518 511,121 527,104 558,105 539,855 573,411 694,363 5,398,909 3,222,090 3,480,469 3,405,120 3,767,192 7,559,834 17,699,954 17,554,794 18,564,174 18,119,149 19,392,466 17,434,284 3,391,760 4,896,569 8,509,882 4,048,759 6,004,984 8,091,498 34,728,615 33,221,239 37,341,079 31,288,013 35,188,096 39,139,415 2,862,836 3,273,606 3,419,815 3,511,360 4,042,773 4,237,210 1,148,173 1,258,542 1,303,494 1,312,911 1,531,805 1,552,170 1,227,861 1,480,047 1,355,270 1,487,906 1,571,598 1,581,897 5,238,870 6,012,195 6,078,579 6,312,177 7,146,176 7,371,277 $ 39,967,485 $ 39,233,434 $ 43,419,658 $ 37,600,190 $ 42,334,272 $ 46,510,692 (Continued) 125 City of New Rochelle, New York Changes In Net Position (Continued) Last Ten Fiscal Years 2003 2004 2005 2006 Net Expense/Revenue Governmental Activities $ (58,506,682) $ (73,014,293) $ (65,246,957) $ (77,692,606) Business-type Activities (1,815,780) 43,867 (2,295,372) (1,805,927) Total Primary Government Net Expense $ (60,322,462) $ (72,970,426) $ (67,542,329) $ (79,498,533) GENERAL REVENUES Governmental Activities Taxes Real Property Taxes 33,078,321 37,097,819 38,545,180 40,994,866 Other Tax Items 1,548,928 1,678,388 1,176,688 1,332,370 Non-Property Taxes 22,812,625 24,575,455 25,240,559 25,778,448 Unrestricted Use of Money and Property 313,403 508,280 993,160 1,577,774 Sale of property and compensation for loss Unrestricted State aid 8,128,995 9,198,968 10,907,457 10,867,382 Insurance recoveries 61,089 83,192 . Miscellaneous 120,414 56,435 151,883 88,680 Gain on sale of real property 371,481 1,699,535 2,711,798 Sale of real property Transfers (2,154,576) (15,391,288) (2,016,375) (1,994,596) Total Governmental Activities 63,909,199 58,178,730 76,698,087 81,356,722 Business-type Activities Unrestricted Use of Money and Property 19,087 29,631 103,022 89,162 Transfers 2,154,576 15,391,288 2,016,375 1,994,596 Total Business-type Activities 2,173,663 15,420,919 2,119,397 2,083,758 Total Primary Government General Revenues $ 66,082,862 $ 73,599,649 $ 78,817,484 $ 83,440,480 Change in Net Position Governmental Activities $ 5,402,517 $ (14,835,563) $ 11,451,130 $ 3,664,116 Business-type Activities 357,883 15,464,786 (175,975) 277,831 Total Primary Government $ 5,760,400 $ 629,223 $ 11,275,155 $ 3,941,947 126 2007 2008 2009 2010 2011 2012 $ (85,844,430) $ (92,911,729) $ (95,484,117) $ (100,147,875) $ (99,456,086) $ (101,451,904) (1,696,636) (1,590,181) (1,453,967) (1,448,168) (286,214) 317,229 $ (87,541,066) $ (94,501,910) $ (96,938,084) $ (101,596,043) $ (99,742,300) $ (101,134,675) 127 City of New Rochelle, New York Fund Balances of Governmental Funds Last Ten Fiscal Years 2003 2004 2005 2006 GENERAL FUND Nonspendable $ $ $ $ Committed Assigned Unassigned Reserved 898,925 2,530,619 2,137,759 2,798,394 Unreserved 3,821,210 7,977,398 11,577,310 13,832,705 Total General Fund $ 4,720,135 $ 10,508,017 $ 13,715,069 $ 16,631,099 ALL OTHER GOVERNMENTAL FUNDS Nonspendable $ $ $ $ Restricted Assigned Unassigned Reserved 8,340,604 20,345,459 10,436,029 9,101,420 Unreserved, Reported In Special Revenue Funds 525,165 464,229 828,193 1,275,620 Debt Service Fund 52,625 50,875 500,000 Capital Projects Fund (10,805,828) (25,533,287) (4,399,276) (9,149,752) Total All Other Governmental Funds $ (1,887,434) $ (4,672,724) $ 7,364,946 $ 1,227,288 Total Governmental Funds $ 2,832,701 $ 5,835,293 $ 21,080,015 $ 17,858,387 (1 ) Components of fund balance were reclassified with the December 31,2011 implementation of Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. 128 2007 2008 2009 2010 2011 (1) 2012 $ $ $ $ $ 3,357,522 $ 3,637,072 300,000 300,000 174,820 1,310,739 1,630,194 3,176,116 2,616,247 2,492,609 2,987,024 2,837,139 13,315,309 9,797,845 4,200,961 2,557,816 $ 15,931,556 $ 12,290,454 $ 7,187,985 $ 5,394,955 $ 5,462,536 $ 8,423,927 129 City of New Rochelle, New York Changes In Fund Balances of Governmental Funds Last Ten Fiscal Years 2003 2004 2005 2006 REVENUES Real property taxes $ 32,775,119 $ 37,174,128 $ 38,802,156 $ 40,938,678 Other tax items 1,548,928 1,678,388 1,176,688 1,332,370 Non-property taxes 22,812,625 24,575,455 25,240,559 25,778,448 Departmental income 2,314,753 7,000,037 7,688,508 7,461,719 Intragovernmental charges Intergovernmental charges 107,981 111,835 105,976 93,329 Use of money and property 771,018 957,760 1,419,526 1,950,165 Licenses and permits 1,636,798 2,458,830 1,972,432 2,805,648 Fines and forfeitures 2,304,426 2,796,622 2,793,150 3,012,286 Sale of property and compensation for loss 94,830 515,491 107,289 163,879 State aid 11,630,426 11,832,456 15,424,126 14,739,419 Federal aid 20,290,106 13,230,689 13,736,244 13,555,932 Miscellaneous 2,069,281 1,958,766 2,913,756 2,290,275 Total Revenues 98,356,291 104,290,457 111,380,410 114,122,148 EXPENDITURES Current General government support 8,353,259 9,651,694 9,468,959 10,012,314 Public safety 39,063,226 43,506,027 47,044,081 49,921,766 Transportation 3,606,496 3,763,755 4,333,772 4,104,021 Economic opportunity and development 9,408,636 10,162,256 9,963,431 10,161,440 Culture and recreation 3,757,336 2,660,756 2,918,710 2,984,706 Home and community services 9,582,470 9,963,699 9,671,813 9,978,916 Employee benefits 4,779,851 5,694,166 5,019,585 5,551,154 Debt service Principal 4,347,966 4,614,489 4,659,911 4,453,535 Interest 4,741,348 3,630,288 3,459,346 4,170,494 Refunding bond issuance costs 558,765 256,396 Capital outlay 15,507,342 8,049,027 12,977,235 16,393,005 Total Expenditures 103,147,930 102,254,922 109,773,239 117,731,351 Excess (Deficiency) of Revenues Over Expenditures (4,791,639) 2,035,535 1,607,171 (3,609,203) OTHER FINANCING SOURCES (USES) Sale of real property 520,543 993,900 3,392,530 2,382,171 Insurance recoveries Bonds issued 12,005,000 Refunding bonds issued 39,814,376 24,940,000 Payment to refunded bond escrow agent (39,945,398) (25,320,197) Issuance premium 689,787 636,593 Bond anticipation notes issued 400,000 400,000 Transfers in 10,837,359 11,579,306 12,510,357 13,178,944 Transfers out (12,991,935) (12,564,914) (14,526,732) (15,173,540) Total Other Financing Sources (Uses) (1,234,033) 967,057 13,637,551 387,575 Net Change in Fund Balances $ (6,025,672) $ 3,002,592 $ 15,244,722 $ (3,221,628) Debt Service as a Percentage of Non-Capital Expenditures 10.3% 8.2% 8.2% 7.9% 130 2007 2008 2009 2010 2011 2012 $ 41,443,954 $ 44,913,864 $ 46,410,688 $ 47,687,231 $ 48,299,684 $ 50,352,438 1,092,326 1,349,824 1,649,583 1,884,184 1,934,903 2,228,097 27,472,789 27,477,162 25,356,106 26,085,267 26,868,615 28,494,313 7,805,334 6,001,822 5,365,962 4,830,928 4,806,330 8,929,187 2,234,401 2,174,659 2,116,135 2,223,441 2,376,459 2,567,333 89,718 88,289 82,684 75,999 39,240 54,964 2,095,510 1,302,863 766,285 467,763 391,408 374,875 3,064,260 2,006,190 1,978,605 1,489,203 2,201,312 1,943,362 3,347,746 3,954,079 3,904,565 3,497,290 3,408,921 3,020,159 117,181 107,061 141,408 41,640 69,967 92,002 13,455,787 12,046,254 11,863,171 11,543,446 12,808,323 14,254,896 15,195,837 14,814,382 19,217,720 15,262,475 17,375,438 15,362,918 2,357,859 2,701,417 3,013,743 2,567,661 3,253,528 3,639,304 119,772,702 118,937,866 121,866,655 117,656,528 123,834,128 131,313,848 600,000 1,300,000 800,000 12,120,978 13,199,900 9,631,361 7,689,651 7,936,050 9,156,403 (14,220,978) (15,299,900) (11,431,361 ) (9,189,651 ) (9,186,050) (9,856,403) 3,380,902 (905,428) (773,909) 3,318,787 2,325,646 2,425,613 $ 6,120,714 $ (3,961,292) $ (7,491,000) $ (2,811,102) $ (885,834) $ 1,939,361 7.4% 7.1% 6.6% 6.6% 6.4% 6.0% 131 (This page intentionally left blank) Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. These schedules include: Assessed Value and Estimated Actual Value of Taxable Property Direct and Overlapping Property Tax Rates, Per $1,000 of Assessed Valuation Principal Taxpayers Property Tax Levies and Collections City of New Rochelle, New York Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years Total Taxable Residential Commercial Other Assessed Year Property Property Property Value 2003 $ 206,286,588 $ 68,702,560 $ 29,086,573 $ 304,075,721 2004 207,454,681 67,445,495 26,195,306 301 ,095,482 2005 209,364,693 67,051,808 24,566,387 300,982,888 2006 210,044,235 65,030,576 24,304,986 299,379,797 2007 209,417,228 64,870,548 23,516,846 297,804,622 2008 206,925,188 63,975,536 22,213,014 293,113,738 2009 200,638,075 62,650,368 22,464,165 285,752,608 2010 195,604,825 61,565,050 21,884,761 279,054,636 2011 191,075,619 60,442,328 22,270,449 273,788,396 2012 188,835,008 58,947,609 22,430,973 270,213,590 (1 ) Provided by the New York State Office of Real Property Services. Note: Estimated actual taxable value is calculated by dividing taxable assessed value by the state special equalization rate. Tax rates are per $1,000 of assessed value. 132 State Estimated Total Special Actual Direct Equalization Taxable Tax Rate (1) Value Rate 4.02 % $ 7,564,072,662 $ 107.143 3.75 8,029,212,853 122.049 3.28 9,176,307,561 127.541 3.08 9,720,123,279 133.280 2.74 10,868,781,825 139.811 2.44 12,012,858,115 152.394 2.44 11,711,172,459 160.866 2.67 10,451,484,494 170.318 2.90 9,440,979,172 175.099 2.96 9,128,837,500 185.532 133 City of New Rochelle, New York Direct and Overlapping Property Tax Rates, Per $1,000 Of Assessed Valuation Last Ten Fiscal Years Overlapping Rates Westchester County New Total Refuse Rochelle Direct Sewer Disposal School Year Rate (3) Operating Districts (1 ) District District(2) 2003 $ 107.143 $ 71.978 $ 14.593 $ 10.575 $ 362.185 2004 122.049 91.699 16.695 11.733 405.935 2005 127.541 97.555 16.117 11.433 442.211 2006 133.280 98.704 18.240 11.486 483.045 2007 139.811 106.197 17.231 11.811 525.841 2008 152.394 114.549 19.008 11.020 564.340 2009 160.866 120.045 20.884 11.364 601.301 2010 170.318 127.605 22.434 12.161 626.960 2011 175.099 127.429 25.589 12.433 647.992 2012 185.532 123.366 27.823 12.023 674.463 (1) Average rate for three sewer districts (2) Reflects School District tax rate for fiscal year ending June 30th in year indicated; as of 2004, tax rate includes amounts for the New Rochelle Public Library which was previously included in the City's tax levy. (3) A single direct property tax rate applies to all classes of real property. Source: City of New Rochelle Department of Finance 134 City of New Rochelle, New York Principal Taxpayers Current Year and Nine Years Ago 2012 Percent of Taxable Taxable Assessed Assessed Rank Taxpayer Type of Business Valuation Valuation Consolidated Edison Public Utility $ 7,301,334 2.70 % 2 United Water New Rochelle Public Utility 1,994,712 0.74 3 Harbor One Company Apartment Building 1,710,000 0.63 4 Palmer-Petersville Assoc. Retail Services 1,115,050 0.41 5 HD Development of Maryland Retail Services 895,000 0.33 6 Verizon New York, Inc. Public Utility 753,491 0.28 7 GHP 145 Huguenot Delaware LLC Office Building 675,000 0.25 8 Costco Wholesale Corp. Retail Services 673,550 0.25 9 210-220-230 Owners Corp Apartment Building 661,500 0.24 10 Faymor Gardens Apartment Building 555,000 0.21 Total $ 16,334,637 6.04 % 2003 Percent of Taxable Taxable Assessed Assessed Rank Taxpayer Type of Business Valuation Valuation Consolidated Edison Public Utility $ 8,359,366 2.75 % 2 United Water New Rochelle Public Utility 2,421,619 0.80 3 Home Depot, USA Retail Services 1,864,350 0.61 4 Harbor One Company Apartment Building 1,707,950 0.56 5 G & S New Rochelle Retail Services 1,685,200 0.55 6 Verizon Public Utility 1,259,765 0.41 7 Palmer-Petersville Assoc. Retail Services 1,115,050 0.37 8 H.P. Walton Office Building 850,000 0.28 9 Faymor Gardens Apartment Building 760,000 0.25 10 Rosbrook Assoc. Hotel 745,000 0.25 Total $ 20,768,300 6.83 % Source: City of New Rochelle Assessor's Office. 135 City of New Rochelle, New York Property Tax Levies and Collections Last Ten Fiscal Years Collected within the City Taxes Fiscal Year of the Levy Collections Total Collections to Date Levied for the Percentage in Subsequent Percentage Year Fiscal Year Amount of Levy Years Amount of Levy 2003 $ 37,591,320 $ 37,181,951 98.91 % $ 393,855 $ 37,575,806 99.96 % 2004 40,042,277 39,759,775 99.29 264,545 40,024,320 99.96 2005 44,004,554 43,643,202 99.18 327,575 43,970,777 99.92 2006 44,704,908 44,305,783 99.11 300,574 44,606,357 99.78 2007 45,887,107 45,402,029 98.94 75,789 45,477,818 99.11 2008 48,404,246 47,923,848 99.01 41,268 47,965,116 99.09 2009 50,240,488 49,590,282 98.71 61,296 49,651,578 98.83 2010 51,621,237 51,064,304 98.92 30,669 51,094,973 98.98 2011 51,886,952 51,414,435 99.09 58,422 51,472,857 99.20 2012 57,853,080 57,260,987 98.98 65,299 57,326,286 99.09 Source: City of New Rochelle Finance Department; collections as of February 28, 2013. 136 Debt Capacity 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. These schedules include: Ratios of Outstanding Debt by Type Ratios of General Bonded Debt Outstanding Direct and Overlapping Governmental Activities Debt Legal Debt Margin Information City of New Rochelle, New York Ratios of Outstanding Debt By Type Last Ten Fiscal Years Governmental Activities (2) Percentage of Estimated General Bond New York Less Debt Actual Taxable Fiscal Obligation Anticipation State Service Funds Value of Year Bonds Notes Loans Available Net Property 2003 $ 75,640,283 $ 1,605,000 $ 734,188 $ 1,376,187 $ 76,603,284 1.04 % 2004 73,604,376 1,405,000 571,236 1,563,131 74,017,481 0.94 2005 82,480,790 870,000 399,911 3,557,611 80,193,090 0.92 2006 78,577,388 500,000 219,778 3,101,776 76,195,390 0.82 2007 79,259,345 240,000 30,380 2,839,958 76,689,767 0.75 2008 74,802,874 80,000 23,063 3,735,899 71,170,038 0.63 2009 70,146,991 15,563 3,558,984 66,603,570 0.60 2010 65,332,355 600,000 7,875 3,001,914 62,938,316 0.64 2011 60,756,421 1,780,000 2,769,068 59,767,353 0.87 2012 56,171,253 2,320,000 2,459,811 56,031,442 0.84 (1) - Population data can be found in the schedule of demographic and economic statistics (2) - Includes general bonded debt of business-type activities Note: Details regarding the City's outstanding debt can be found in the notes to financial statements 137 Business-type Activities General Total Percentage of Per Obligation Capital Primary Per Personal Capita (1) Bonds Lease Government Capita (1) Income $ 1,061 $ 1,839,717 $ 23,940,000 $ 102,383,001 $ 1,418 4.44 % 1,025 1,665,624 23,335,000 99,018,105 1,372 4.29 1,111 4,187,210 22,690,000 107,070,300 1,483 4.64 1,056 3,957,612 22,000,000 102,153,002 1,415 4.43 1,062 5,020,655 21,260,000 102,970,422 1,427 4.46 986 4,622,126 20,460,000 96,252,164 1,333 4.17 923 4,193,009 19,600,000 90,396,579 1,252 3.92 817 3,747,645 18,675,000 85,360,961 1,108 2.72 776 22,208,579 81,975,932 1,064 2.61 727 20,358,747 76,390,189 991 2.43 138 City of New Rochelle, New York Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years Governmental Activities Other Governmental Activities Debt Percentage of Estimated General Less Debt Net Actual Taxable Bond New York Fiscal Obligation Service Funds Long-Term Value of Per Anticipation State Year Bonds Available Debt Property Capita (1) Notes Loans 2003 $ 75,640,283 $ 1,376,187 $ 74,264,096 0.98 % $ 1,029 $ 1,605,000 $ 734,188 2004 73,604,376 1,563,131 72,041,245 0.90 998 1,405,000 571,236 2005 82,480,790 3,557,611 78,923,179 0.86 1,093 870,000 399,911 2006 78,577,388 3,101,776 75,475,612 0.78 1,046 500,000 219,778 2007 79,259,345 2,839,958 76,419,387 0.70 1,059 240,000 30,380 2008 74,802,874 3,735,899 71,066,975 0.59 985 80,000 23,063 2009 70,146,991 3,558,984 66,588,007 0.57 923 15,563 2010 65,332,355 3,001,914 62,330,441 0.60 809 600,000 7,875 2011 60,756,421 2,769,068 57,987,353 0.61 752 1,780,000 2012 56,171,253 2,459,811 53,711,442 0.59 697 2,320,000 (1) - Population and personal income data can be found in the schedule of demographic and economic statistics (2) - Includes general bonded debt, other governmental activities debt, and business-type activities debt. Note: Details regarding the City's outstanding debt can be found in the notes to financial statements 139 Business-type Activities General Total Percentage of Obligation Capital Primary Per Personal Bonds Lease Government (2) Capita (1) Income (1) $ 1,839,717 $ 23,940,000 $ 102,383,001 $ 1,418 4.44 % 1,665,624 23,335,000 99,018,105 1,372 4.29 4,187,210 22,690,000 107,070,300 1,483 4.64 3,957,612 22,000,000 102,153,002 1,415 4.43 5,020,655 21,260,000 102,970,422 1,427 4.46 4,622,126 20,460,000 96,252,164 1,333 4.17 4,193,009 19,600,000 90,396,579 1,252 3.92 3,747,645 18,675,000 85,360,961 1,108 2.72 22,208,579 81,975,932 1,064 2.61 20,358,747 76,390,189 991 2.43 140 (This page intentionally left blank) City of New Rochelle, New York Direct and Overlapping Governmental Activities Debt December 31, 2012 Net Percentage Amount Long-Term Applicable Applicable Debt to New to New Government Unit Outstanding (1) Rochelle (3) Rochelle County of Westchester $ 1,012,426,484 12.60 % $ 127,582,025 City School District of New Rochelle (2) 65,812,504 100.00 65,812,504 Net Overlapping Debt 193,394,529 City Direct Debt 58,491,253 Net Direct and Overlapping Debt $ 251,885,782 (1) Excludes enterprise fund bonds and the amount available for repayment in the Debt Service Fund. (2) As of June 30, 2012. (3) The percentage of overlapping debt applicable is estimated using taxable assessed values. Applicable percentages were estimated by determining the portion of the City's taxable assessed value that is within the government's boundaries and dividing it by the City's total taxable assessed value. Source: New Rochelle School District and County of Westchester Finance Departments. Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the property taxpayers of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the property taxpayers should be taken into account. 141 City of New Rochelle, New York Legal Debt Margin Information Last Ten Fiscal Years 2003 2004 2005 2006 Debt Limit $ 379,017,718 $ 433,694,066 $ 497,619,724 $ 561,376,129 Total Net Debt Applicable to Limit 87,480,133 85,030,236 84,552,911 85,801,978 Legal Debt Margin $ 291,537,585 $ 348,663,830 $ 413,066,813 $ 475,574,151 Total Net Debt Applicable to the Limit as a Percentage of Debt Limit 23.08% 19.61% 16.99% 15.28% Legal Debt Margin Calculation for Fiscal Year 2012 Assessment Roll State Special Budget Assessed Equalization Full Year Year Valuation Ratio Valuation 2011 2012 $ 270,213,590 2.96 %$ 9,128,837,500 2010 2011 273,788,396 2.90 9,440,979,172 2009 2010 279,054,636 2.67 11,702,056,066 2008 2009 285,752,608 2.44 11,711,172,459 2007 2008 293,113,738 2.44 12,012,858,115 Total Five Year Full Valuation $ 53,995,903,312 Five Year Average Full Valuation of Taxable Real Property 10,799,180,662 Debt Limit - 7% of Five Year Average Full Valuation 755,942,646 Outstanding City Debt Serial Bonds 76,530,000 Bond Anticipation Notes 5,971,000 82,501,000 Less Urban Renewal Bonds 1,645,000 Net Indebtedness Subject to Debt Limit 80,856,000 Net Debt Contracting Margin $ 675,086,646 142 2007 2008 2009 2010 2011 2012 $ 635,018,975 $ 697,301,971 $ 748,721,776 $ 766,574,253 $ 762,666,235 $ 755,942,646 79,018,780 73,935,663 69,126,863 69,786,875 85,484,000 80,856,000 $ 556,000,195 $ 623,366,308 $ 679,594,913 $ 696,787,378 $ 677,182,235 $ 675,086,646 12.44% 10.60% 9.23% 9.10% 11.21% 10.70% 143 (This page intentionally left blank) Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. These schedules include: Demographic Statistics Principal Employers City of New Rochelle, New York Demographic Statistics Last Ten Fiscal Years Fiscal Year Median Median Ended Median Personal Per Capita Household Family Unemployment Dec. 31, Population (1) Age (1) Income Income (1) Income (1) Income (1) Rate (2) 2003 72,182 37.0 $ 2,306,647,992 $ 31,956 $ 55,513 $ 72,723 5.2 % 2004 72,182 37.0 2,306,647,992 31,956 55,513 72,723 5.0 2005 72,182 37.0 2,306,647,992 31,956 55,513 72,723 4.6 2006 72,182 37.0 2,306,647,992 31,956 55,513 72,723 4.4 2007 72,182 37.0 2,306,647,992 31,956 55,513 72,723 4.3 2008 72,182 37.0 2,306,647,992 31,956 55,513 72,723 5.3 2009 72,182 37.0 2,306,647,992 31,956 55,513 72,723 8.1 2010 77,062 37.0 3,143,127,794 40,787 65,317 91,553 8.1 2011 77,062 37.0 3,143,127,794 40,787 65,317 91,553 7.6 2012 77,062 37.0 3,143,127,794 40,787 65,317 91,553 8.1 Sources: (1 ) U.S. Bureau of Census (2000 Census for 2003-2009; 2010 Census for 2010-2012) (2) New York State Department of Labor - unemployment rates not seasonally adjusted. 144 City of New Rochelle, New York Principal Employers Current Year and Nine Years Ago 2012 Percentage of Total EMPLOYER Employees Employment Sound Shore Medical Center of Westchester and Schaffer Extended Care Pavilion 1,800 7.62 % New Rochelle City School District 1,337 5.66 The City of New Rochelle 608 2.57 lona College 560 2.37 New Roc City 456 1.93 The College of New Rochelle 450 1.90 United Hebrew Geriatric Center 425 1.80 Monroe College 400 1.69 Westchester County Dept. of Health 400 1.69 Home DepotiShoprite 300 1.27 6,736 28.50 % 2003 Percentage of Total EMPLOYER Employees Employment New Rochelle City School District 1,700 7.40 % Sound Shore Medical Center of Westchester and Schaffer Extended Care Pavilion 1,500 6.53 The City of New Rochelle 630 2.74 lona College 600 2.61 College of New Rochelle 500 2.18 United Hebrew Geriatric Center 350 1.52 Home Depot 300 1.31 Costco 250 1.09 Rawplug Company 200 0.87 New Rochelle Nursing Home 180 0.78 6,210 27.03 % Source: City of New Rochelle Finance Department 145 (This page intentionally left blank) Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. These schedules include: Full-Time Equivalent City Government Employees by Function Operating Indicators by Function/Program Capital Asset Statistics by Function/Program City of New Rochelle, New York Full-Time Equivalent City Government Employees By Function Last Ten Fiscal Years Full-time Equivalent Employees as of December 31, 2003 2004 2005 2006 Function General Government 70 69 69 72 Public Safety 392 391 391 400 Transportation 33 33 33 33 Economic Opportunity and Development 7 6 7 7 Culture and Recreation 19 18 18 18 Home and Community Services 77 78 78 80 Parking Facilities 3 3 4 3 Railroad Station 1 Municipal Marina 4 4 5 5 Central Garage 16 16 16 16 Total 621 618 621 635 Source: City of New Rochelle Finance Department 146 2007 2008 2009 2010 2011 2012 74 74 74 70 70 66 411 416 416 400 381 377 33 35 35 32 30 32 7 7 7 7 7 10 20 20 20 19 18 18 86 89 89 84 81 83 3 3 3 3 3 3 1 1 1 1 1 1 5 5 5 5 5 5 16 16 16 14 14 13 656 666 666 635 610 608 147 City of New Rochelle, New York Operating Indicators By Function/Program Last Ten Fiscal Years 2003 2004 2005 2006 GENERAL GOVERNMENT SUPPORT Cable television programs produced 83 82 82 97 Vital statistic certificates issued 11,729 12,477 11,720 11,758 STAR applications processed 11,300 11,739 12,450 12,600 Payroll and vendor checks issued 35,671 31,927 33,803 33,900 Tax bills processed 61,500 61,800 62,306 62,500 PUBLIC SAFETY Police Calls for service 50,696 48,382 47,813 50,968 Part I crimes 1,912 1,783 1,779 1,558 Physical arrests 3,213 3,617 3,031 3,392 Parking summonses issued 75,580 84,877 84,204 82,872 Traffic violations issued 11,009 12,087 11,097 12,542 Fire Calls for service 7,832 7,666 7,532 7,743 Inspections 1,610 1,605 1,590 1,570 Fire violations issued 466 470 430 453 Transportation Street lights replaced 1,636 .1,667 2,034 1,657 Street signs replaced 1,618 1,841 2,162 3,600 ECONOMIC OPPORTUNITY AND DEVELOPMENT Elderly nutrition meals served 20,647 21,455 20,755 22,368 Senior citizen case assistance 4,713 4,959 5,998 7,785 CULTURE AND RECREATION Omnicards issued 880 1,408 1,357 1,044 Tennis permits issued 664 413 468 430 Athletic field permits issued 800 750 575 475 . Summer youth employment workers 50 54 82 75 HOME AND COMMUNITY SERVICES Tons of trash collected 37,900 36,447 36,130 35,187 Tons of material recycled 20,000 5,056 5,209 4,973 Tons of leaves/yard waste recycled 13,800 17,188 13,192 26,380 Storm water catch basins cleaned 2,953 1,400 703 685 Building, plumbing and related permits issued 1,178 1,264 2,058 1,118 Building inspections conducted 2,350 3,251 3,308 3,315 PARKING FACILITIES Parking permits issued 2,339 2,339 3,256 3,248 Parking meter repairs 1,027 816 926 985 Parking revenue $ 2,912,000 $ 2,620,000 $ 2,684,000 $ 2,873,000 148 2007 2008 2009 2010 2011 2012 110 120 100 100 121 105 11,025 10,405 9,408 9,006 10,889 10,123 13,132 13,150 13,252 13,300 12,753 12,595 33,263 35,094 35,012 32,772 30,453 28,569 61,286 61,866 62,758 62,733 62,233 62,189 51,633 49,511 54,218 56,503 54,971 51,105 1,647 1,758 1,488 1,311 1,589 1,546 2,648 2,477 2,218 1,991 2,083 1,646 85,729 105,130 89,271 80,180 81,165 66,545 12,683 12,754 12,343 11,860 9,196 6,811 8,774 7,657 7,543 7,938 7,833 8,014 1,410 2,069 2,749 2,275 1,895 2,284 450 1,061 659 653 778 723 1,916 1,993 2,106. 1,941 2,093 1,859 1,894 839 1,220 1,199 1,496 1,568 20,270 20,363 17,450 19,341 24,551 18,721 8,728 7,396 4,583 4,664 4,365 5,385 956 969 878 871 842 846 526 544 614 378 307 276 481 480 N/A 104 106 110 79 81 96 82 73 82 35,979 30,677 28,446 28,705 29,769 26,687 4,061 5,861 5,311 10,171 6,524 5,289 12,747 21,853 15,917 12,821 8,550 14,741 1,557 2,429 2,004 1,541 1,331 N/A 2,187 2,115 1,168 1,953 1,693 1,935 3,763 2,798 1,456 2,113 1,207 2,476 3,117 2,654 3,426 3,400 3,172 3,053 1,426 988 673 1,087 1,324 1,292 $ 2,863,000 $ 3,274,000 $ 3,410,000 $ 3,461,000 $ 4,042,775 $ 4,237,210 (Continued) 149 City of New Rochelle, New York Operating Indicators By Function/Program (Continued) Last Ten Fiscal Years 2003 2004 2005 2006 RAILROAD STATION Parking permits issued 1,226 1,550 1,570 Daily parkers served 24,388 30,000 Railroad revenue $ 38,000 $ 297,000 $ 860,000 $ 999,000 MUNICIPAL MARINA Summer boat slip permits 327 307 320 320 Winter storage permits 240 300 300 300 Gallons of fuel sold 90,000 70,000 90,000 Marina revenue $ 870,000 $ 784,000 $ 1,150,000 $ 1,212,000 CENTRAL GARAGE Vehicle repairs 2,895 4,469 2,893 3,469 Sources: Various City departments N/A - Information not available 150 2007 2008 2009 2010 2011 2012 1,467 1,368 1,329 1,321 1,296 1,272 40,790 45,904 43,374 45,514 44,840 45,407 $ 1,148,172 $ 1,259,000 $ 1,303,000 $ 1,313,000 $ 1,531,804 $ 1,552,170 330 325 307 350 290 281 370 330 254 250 261 288 66,926 99,000 71,902 90,000 90,130 90,003 $ 1,228,000 $ 1,445,000 $ 1,355,000 $ 1,488,000 $ 1,571,597 $ 1,581,897 2,627 2,541 2,529 2,377 2,176 1,930 151 City of New Rochelle, New York Capital Asset Statistics By Function/Program Last Ten Fiscal Years 2003 2004 2005 2006 GENERAL GOVERNMENT SUPPORT Number of general government buildings 27 27 27 26 PUBLIC SAFETY Number of police stations 1 1 1 1 Number of fire stations 5 5 5 5 Number of traffic signals 159 159 165 170 TRANSPORTATION Miles of streets (paved) 176 176 176 176 Number of street lights 6,500 6,750 6,800 7,000 ECONOMIC OPPORTUNITY AND DEVELOPMENT Number of Senior Citizen Centers 1 1 1 1 CULTURE AND RECREATION Number of parks 23 23 23 23 Acres of parks and recreation area 250 250 250 252 Number of swimming pools 1 1 1 1 HOME AND COMMUNITY SERVICES Number of fire hydrants 1,379 1,379 1,379 1,379 Miles of sanitary sewers 176 176 176 176 Miles of storm drains 135 135 135 135 PARKING FACILITIES Number of parking structures 2 2 2 2 Number of parking lots 19 19 18 18 RAILROAD STATION Number of railroad parking structures 1 1 1 Number of railroad parking lots MUNICIPAL MARINA Number of boat slips 327 327 320 325 Source: Various City departments 152 2007 2008 2009 2010 2011 2012 26 26 26 26 26 26 1 1 1 1 1 1 5 5 5 5 5 5 170 170 170 170 170 170 176 176 176 176 176 176 7,000 7,000 7,000 7,000 7,000 7,000 1 1 1 1 1 1 23 23 23 23 23 38 254 256 256 256 256 257 1 1 1 1 1 1 1,379 1,381 1,382 1,382 1,382 1,382 176 176 193 193 193 193 135 135 87 87 87 87 2 2 2 2 2 2 18 18 18 18 18 18 1 1 1 1 1 1 330 325 330 330 316 330 153 (This page intentionally left blank) FEDERAL AWARDS I (This page intentionally left blank) O'CONNOR PKF DAVIES Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Independent Auditors' Report The Honorable Mayor and City Council of the City of New Rochelle, New York We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the discretely presented component I.mit, each major fund and the aggregate remaining fund information of the City of New Rochelle, New York ("City") as of and for the year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated June 6, 2013. Our report includes a reference to other auditors who audited the financial statements of the Industrial Development Agency (a component unit), as described in our report on the City's financial statements. This report· does not include the results of the other auditors' testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting ("internal control") to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. O'CONNOR DAVIES, LLP 500 Mamaroneck Avenue, Suite 301, Harrison, NY 10528 I Tel: 914.381.8900 I Fax: 914.381.8910 I www.odpkf.com O'Connor Davies, LLP is a member firm of the PKF International limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. We noted certain matters that we reported to the management of the City in a separate letter. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. O'Connor Davies, LLP Harrison, New York June 6,2013 155 O'CONNOR PKF DAVIES Report on Compliance For Each Major Federal Program and on Internal Control Over Compliance Independent Auditors' Report The Honorable Mayor and City Council of the City of New Rochelle, New York Report on Compliance for Each Major Federal Program We have audited the City of New Rochelle, New York's ("City") compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended December 31, 2012. The City's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the City's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMS Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMS Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City's compliance. O'CONNOR DAVIES, LLP 500 Mamaroneck Avenue, Suite 301, Harrison, NY 10528 I Tel: 914.381.8900 I Fax: 914.381.8910 I www.odpkf.com O'Connor Davies, LLP is a member firm of the PKF International limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. Opinion on Each Major Federal Program In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2012. Report on Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMS Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance wi"th a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by" those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMS Circular A-133. Accordingly, this report is not suitable for any other purpose. O'Connor Davies, LLP Harrison, New York June 6,2013 157 City of New Rochelle, New York Schedule of Expenditures of Federal Awards Year Ending December 31,2012 Federal Federal Grantor CFDA Non Program Title Number (1) ARRA ARRA(2) Expenditures U.S. Department of Transportation Indirect Programs - Passed through New York State Department of Transportation Highway Planning and Construction: North Ave Signal- NYS Contract # D012107 20.205 $ 18,590 $ 18,590 Pelham Road Traffic Signal- NYS Contract # D031768 20.205 5,455 5,455 Main/Huguenot Traffic Signal - NYS Contract # D031769 20.205 71,528 71,528 Total U.S. Department of Transportation 95,573 U.S. Department of Justice Direct Programs- Bullet PrQof Vest Partnership Grant 16.607 4,608 4,608 Public Safety Partnership and Community Policing Grants ·16.710 57,795 57,795 Total U.S. Department of Justice 62,403 U.S. Department of Labor Indirect Program - Passed through Westchester County Workforce Investment Act (WIA) National Emergency Grant 17.277 27,331 27,331 U.S. Department of Agriculture Direct Programs Summer Food Service Program for Children 10.559 140,630 140,630 U.S. Department of Housing and Urban Development Direct Programs Community Development Block Grant - Small Cities Program 14.218 865,111 865,111 Home Investment Partnership Program 14.239 147,351 147,351 Homelessness Prevention and Rapid Re-Housing Program - ARRA 14.257 93,461 93,461 Section 8 Housing Choice Vouchers 14.871 11,400,830 11,400,830 Total U.S. Department of Housing and Urban Development 12,506,753 (Continued) 158 City of New Rochelle, New York Schedule of Expenditures of Federal Awards (Continued) Year Ending December 31, 2012 Federal Federal Grantor CFDA Non Program Title Number (1) ARRA ARRA(2) Expenditures U.S. Department of Energy Direct Program Conservation Research and Development 81.086 $ 766,000 $ 766,000 Indirect Program - Passed through New York State Department of Energy Energy Efficiency and Conservation Block Grant Program (EECBG) - ARRA 81.128 43,990 43,990 Total U.S. Department of Energy 809,990 Federal Emergency Management Agency Indirect Program - Passed through New York State Division of Military and Naval Affairs Civil Defense 83.552 35,793 35,793 U.S. Department of Health and Human Services Indirect Programs - Passed through Westchester County: Aging - Title III Part B 93.044 58,458 58,458 Aging - Title III Part C 93.045 69,500 69,500 Cluster Subtotal 127,958 Indirect Programs - Passed through Student Assistance Services Corp. Drug-Free Communities Support Program Grants 93.276 61 61 Total U.S. Department of Health and Human Services 128,019 U.S. Department of Homeland Security Direct Program Assistance to Firefighters Grant Fire Safer - Fed Contract # EMW-2006-FF-03730 97.044 79,206 79,206 FEMA Fire Assistant - Fed Contract # EMW-201 0-FO-091 08 97.044 277,709 277,709 Grant Subtotal 356,915 Indirect Program - Passed through New York State Division of Homeland Security Homeland Security Grant 97.067 186,568 186,568 Indirect Program - Passed through New York State Emergency Management Office Disaster Grants - Public Assistance 97.036 1,012,943 1,012,943 Total U.S. Department of Homeland Security 1,556,426 Total $ 15,225,467 $ 137,451 $ 15,362,918 (1) Catalog of Federal Domestic Assistance Number. (2) American Recovery and Reinvestment Act 159 City of New Rochelle, New York Notes to Schedule of Expenditures of Federal Awards December 31, 2012 NOTE A- SUMMARY OF ACCOUNTING POLICIES 1. General The accompanying Schedule of Expenditures of Federal Awards presents all activity of all federal awards programs for the year ended December 31,2012. Federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the Schedule. 2. Basis ofAccounting The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting. 3. Relationship to Financial Statements The fund financial statements are presented using the modified accrual basis of accounting. 160 City of New Rochelle, New York Summary Schedule of Prior Audit Findings Year Ended December 31, 2012 NONE 161 City of New Rochelle, New York Schedule of Findings and Questioned Costs Year Ended December 31, 2012 Section I- Summary of Auditor's Results Financial Statements Type of auditor's report issued: Unqualified Internal control over financial reporting: • Material weakness(es) identified? __Yes X No • Significant deficiency(ies) identified that are not considered to be material weaknesses? __Yes X None reported Noncompliance material to financial statements noted? __Yes X No Federal Awards Internal Control over major programs: • Material weakness(es) identified? __Yes X No • Significant deficiency(ies) identified that are not considered to be material weakness(es)? __Yes -2L None reported Type of auditor's report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of OMS Circular A-133? __Yes X No Identification of major programs: CFDA Number(s) Name of Federal Program or Cluster 81.086 Conservation Research and Development 14.871 Section 8 Housing Choice Vouchers 97.036 Disaster Grants - Public Assistance Dollar threshold used to distinguish between Type A and Type S programs: $460,888 Auditee qualified as low-risk auditee? --LYes __No 162 City of New Rochelle, New York Schedule of Findings and Questioned Costs (Continued) Year Ended December 31! 2012 Section II - Financial Statement Findings None Section III - Federal Award Findings and Questioned Costs None 163