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City of Northwood, Ohio CITY OF NORTHWOOD, OHIO Wood County, Ohio COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2017 DRAFT 5/4/2018 DRAFT 5/4/2018 CITY OF NORTHWOOD, OHIO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2017 Issued by: Department of Finance Ken Yant Director DRAFT 5/4/2018 CITY OF NORTHWOOD, OHIO DRAFT 5/4/2018 CITY OF NORTHWOOD, OHIO TABLE OF CONTENTS CITY OF NORTHWOOD WOOD COUNTY, OHIO I INTRODUCTORY SECTION A Letter of Transmittal ............................................................................................. v B List of Principal Officials .................................................................................... xii C City Organizational Chart .................................................................................. xiii D Certificate of Achievement for Excellence in Financial Reporting......................... xiv II FINANCIAL SECTION A Independent Auditor’s Report ................................................................................ 1 B Management’s Discussion and Analysis ................................................................. 5 C Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ................................................................................... 14 Statement of Activities ....................................................................................... 15 Fund Financial Statements: Governmental Funds: Balance Sheet ..................................................................................................... 16 Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities ..................................................................................... 19 Statement of Revenues, Expenditures and Changes in Fund Balances .............. 20 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .......... 24 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non-GAAP Budgetary Basis): General Fund ................................................................................................. 26 Street Construction, Maintenance and Repair Fund ...................................... 27 Fiduciary Fund: Statement of Assets and Liabilities ..................................................................... 28 Notes to the Basic Financial Statements .................................................................. 30 D Required Supplemental Information: Schedule of the City’s Proportionate Share of the Net Pension Liability ...................................................................................................... 71 Schedule of City Contributions ............................................................................... 72 DRAFT i 5/4/2018 CITY OF NORTHWOOD, OHIO E Combining and Individual Fund Statements and Schedules: Nonmajor Governmental Financial Statements: Combining Balance Sheet ................................................................................... 76 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..................................................................................................... 77 Combining Balance Sheet – Nonmajor Special Revenue Funds ........................ 78 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Special Revenue Funds .......................................... 80 Combining Balance Sheet – Nonmajor Capital Projects Funds ......................... 82 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Capital Projects Funds ........................................... 83 Individual Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non-GAAP Budgetary Basis): Major Governmental Funds: General Fund ................................................................................................. 84 Special Revenue Fund: Street Construction, Maintenance and Repair Fund ................................... 89 Capital Projects Funds: Capital Improvement Fund ......................................................................... 90 Capital Replacement Fund ......................................................................... 91 Nonmajor Governmental Funds: Special Revenue Funds: Motor Vehicle License Tax Fund ............................................................... 92 State Highway Improvement Fund ............................................................. 93 Northwood Waste/Environmental Fund ..................................................... 94 Drug Fine Fund .......................................................................................... 95 Special Law Enforcement Fund ................................................................. 96 Enforcement and Education Fund .............................................................. 97 DRAFT - ii - 5/4/2018 CITY OF NORTHWOOD, OHIO Special Revenue Funds (Continued): Computerized Research Fund ..................................................................... 98 Storm Water Management Fund ................................................................ 99 Keep Northwood Beautiful Fund ............................................................. 100 Northwood Civic Events Fund ................................................................. 101 Debt Service Fund: General Obligation Debt Retirement Fund ............................................... 102 Capital Projects Funds: Recreation Parks Combined Fund ............................................................ 103 Economic Development Acquisition Fund .............................................. 104 Fiduciary Funds – Agency Fund: Statement of Changes in Assets and Liabilities........................................ 106 DRAFT - iii - 5/4/2018 CITY OF NORTHWOOD, OHIO III STATISTICAL SECTION Net position by Component - Last Ten Years .............................................................................. S 2 Changes in Net position - Last Ten Years .................................................................................... S 4 Fund Balances, Governmental Funds - Last Ten Years ............................................................... S 6 Changes in Fund Balances, Governmental Funds - Last Ten Years ............................................ S 8 Income Tax Revenues by Source, Governmental Funds - Last Ten Years ................................ S 12 Income Tax Collections - Current Year and Nine Years Ago .................................................... S 15 Ratio of Outstanding Debt By Type - Last Ten Years ............................................................... S 16 Ratios of General Bonded Debt Outstanding - Last Ten Years .................................................. S 18 Computation of Direct and Overlapping Debt Attributable to Governmental Activities – Current Year .................................................................................... S 21 Debt Limitations - Last Ten Years ............................................................................................. S 22 Demographic and Economic Statistics - Last Ten Years ........................................................... S 24 Principal Employers - Current Year and Nine Years Ago ......................................................... S 27 Full Time Equivalent Employees by Function - Last Ten Years ............................................... S 28 Operating Indicators by Function - Last Ten Years ................................................................... S 30 Capital Asset Statistics by Function - Last Ten Years ............................................................... S 32 DRAFT - iv - 5/4/2018 INTRODUCTORY SECTION DRAFT 5/3/2016 City of Northwood, Ohio 6000 Wales Road Northwood, Ohio 43619 Phone (419) 693-9328 Fax (419) 693-6705 May 14, 2018 Introduction To the Honorable Mayor, Members of City Council and All Citizens of the City of Northwood, Ohio: I am pleased to present the twentieth Comprehensive Annual Financial Report for the City of Northwood, Ohio for the fiscal year ended December 31, 2017. The report has been prepared in accordance with Generally Accepted Accounting Principles (GAAP) established by statements of the Governmental Accounting Standards Board (GASB), other authoritative pronouncements and guidelines recommended by the Government Finance Officers Association (GFOA) of the United States and Canada, and audited in accordance with Generally Accepted Auditing Standards (GAAS) by James G Zupka, CPA, Inc. GAAP requires a narrative introduction, overview, and analysis called the Management’s Discussion and Analysis (MD&A) to accompany the basic financial statements. This Letter of Transmittal (LOT) is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors. The Report State law, along with Administrative Rules of the Auditor of State, requires all city governments to publish an Annual Report within 150 days of the close of each fiscal year. This report must present a complete set of financial statements presented in conformity with GAAP. Various City debt service Trust Agreements require Audited Annual Reports in accordance with GAAS. Pursuant to these requirements, we hereby issue the CAFR of the City of Northwood,
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