Town of Wethersfield Connecticut
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TOWN OF WETHERSFIELD CONNECTICUT COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2012 COMPREHENSIVE ANNUAL FINANCIAL REPORT of the TOWN OF WETHERSFIELD, CONNECTICUT FOR THE YEAR ENDED JUNE 30, 2012 PREPARED BY: THE FINANCE DEPARTMENT SUSAN L. SMITH, FINANCE DIRECTOR TOWN OF WETHERSFIELD, CONNECTICUT TABLE OF CONTENTS Page Introductory Section Organization Chart i Letter of Transmittal ii-vii Certificate of Achievement viii List of Principal Officials ix Financial Section Independent Auditors’ Report 1-2 Management’s Discussion and Analysis 3-17 Exhibit Basic Financial Statements: Government-Wide Financial Statements: I Statement of Net Assets 18 II Statement of Activities 19 Fund Financial Statements: Governmental Funds: III Balance Sheet 20-21 IV Statement of Revenues, Expenditures and Changes in Fund Balances 22-23 Proprietary Fund: V Statement of Net Assets 24 VI Statement of Revenues, Expenses and Changes in Fund Net Assets 25 VII Statement of Cash Flows 26 Fiduciary Funds: VIII Statement of Fiduciary Net Assets 27 IX Statement of Changes in Plan Net Assets - Fiduciary Funds 28 Notes to Financial Statements 29-51 Required Supplementary Information: General Fund: RSI-1 Schedule of Revenues and Other Financing Sources - Budget and Actual 52-53 RSI-2 Schedule of Expenditures and Other Financing Uses - Budget and Actual 54-55 Combining and Individual Fund Statements and Schedules: General Fund: A-1 Comparative Balance Sheet 56 A-2 Report of Tax Collector 57 Nonmajor Governmental Funds: B-1 Combining Balance Sheet 58-60 B-2 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 61-63 Internal Service Funds: C-1 Combining Statement of Net Assets 64 C-2 Combining Statement of Revenues, Expenses and Changes in Net Assets 65 C-3 Combining Statement of Cash Flows 66 Private Purpose Funds: D-1 Combining Statement of Net Assets 67 D-2 Combining Statement of Revenues, Expenses and Changes in Net Assets 68 Agency Funds: E Combining Statement of Changes in Assets and Liabilities 69 Statistical Section Tables Financial Trends: 1 Net Assets by Component 70 2 Changes in Net Assets 71 3 Fund Balances - Governmental Funds 72 4 Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 73 Revenue Capacity: 5 Assessed and Estimated Actual Value of Taxable Property 74 6 Principal Property Taxpayers 75 7 Property Tax Rates, Levies and Collections 76 Debt Capacity: 8 Schedule of Debt Limitation 77 9 Direct and Overlapping Debt 78 10 Ratios of Net General Bonded Debt per Capita 79 11 Legal Debt Margin Information 80 Demographics and Economic Statistics: 12 Demographic and Economic Statistics 81 13 Principal Employers 82 Operating Information: 14 Town Governmental Full-Time Equivalent Employees by Function 83 15 Operating Indicators by Function 84 Introductory Section TOWN OF WETHERSFIELD, CONNECTICUT ORGANIZATION CHART i December 8, 2012 Honorable Members of Town Council, Mayor and Town Manager Town of Wethersfield Wethersfield, Connecticut 06109 State law requires that all local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, I hereby submit the Comprehensive Annual Financial Report (CAFR) of the Town of Wethersfield, Connecticut, for the fiscal year ended June 30, 2012. This report consists of management’s representations concerning the finances of the Town of Wethersfield. 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 of the Town of Wethersfield has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of the Town of Wethersfield’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefit, the Town of Wethersfield’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. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The Town of Wethersfield’s financial statements have been audited by BlumShapiro. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Town of Wethersfield for the fiscal year ended June 30, 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 auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the Town of Wethersfield’s financial statements for the fiscal year ended June 30, 2012, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the Town of Wethersfield was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies and a similar State Single Audit. The standards governing Single Audit engagements require the independent auditors to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the Town of Wethersfield’s separately issued Federal and State Single Audit Reports. ii GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The Town of Wethersfield’s MD&A can be found immediately following the report of the independent auditors. Profile of the Government The Town of Wethersfield, settled in 1634 and incorporated in 1822, is one of the oldest communities in Connecticut. Known as “Ye Most Auncient Towne” in Connecticut, Wethersfield is a suburban, residential town blending a modern cosmopolitan community with strong ties to a deeply rooted colonial heritage dating back to 1634. A unique old-town historic district established in 1962, located along the scenic riverfront, attracts tourists, and a more recently developed commercial and industrial area serves the community and the region. Covering an area of 13.0 square miles, the Town is located in the central region of the State, immediately south of the City of Hartford. Wethersfield is also bordered by Newington on the west, Rocky Hill on the south, and the Connecticut River on the east. The Towns of East Hartford and Glastonbury are directly across the Connecticut River from Wethersfield. The transportation system is highlighted by access to Interstate route 91 which follows the Connecticut River through Wethersfield and connects the Town to Interstate routes 95 and 84. These interstate connections permit two-hour travel time to both New York and Boston. Routes 5 and 15, also known as the Berlin Turnpike and the Wilbur Cross Parkway, respectively, are major regional connector routes that give residents and employers easy access to New Haven and Fairfield counties. Route 3 connects Wethersfield with Glastonbury and Route 2 via a bridge across the Connecticut River. Route 99, the Silas Deane Highway, is the major commercial district. A total of 105 miles of Town roads and 20 miles of state roads provide a comprehensive highway network. The community is well served by local bus service, is home to a stretch of the Providence and Worcester Railroad freight rail line, and is only 25 miles from Bradley International Airport in Windsor Locks. The Town’s population of approximately 26,690 is stable with a higher than average median age. The 2010 median household income of $71,284 is 105.2% of the Connecticut average of $67,740 as stated by the 2006- 2010 American Community Survey. The Town provides a full range of municipal services including police and fire protection, maintenance and sanitation, health, human services, library, education, cultural and recreational activities, public improvements, planning and zoning, and general administrative services. The relatively high median age indicates a demand for services to the elderly. Wethersfield satisfies this demand with numerous programs and services. Wethersfield adopted the Council-Manager form of government in 1953. The Town Charter was last revised in November 2004. The Town Council exercises the legislative power of the Town and determines all matters of policy. The Town Council is composed of a Mayor and eight councilors who are elected at-large. The Mayor and each councilor serve a two-year term.