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CITY OF YONKERS, NEW

COMPREHENSIVE ANNUAL FINANCIAL REPORT

Fiscal Year Ended June 30, 2019

CITY OF YONKERS,

COMPREHENSIVE ANNUAL FINANCIAL REPORT

Fiscal Year Ended June 30, 2019

Prepared by the Office of Finance and Management Services

City of Yonkers, New York

Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2019 Table of Contents

Page No. INTRODUCTORY SECTION I Principal Officials Organization Chart ii Letter of Transmittal iii Certificate of Achievement for Excellence in Financial Reporting xii FINANCIAL SECTION I Independent Auditors' Report 1

Management's Discussion and Analysis 4 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position 15 Statement of Activities 16 Fund Financial Statements Balance Sheet - Governmental Funds 18 Reconciliation of Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position 20 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 21 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 23 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - , Education and Education Special Aid Funds 24 Statement of Assets and Liabilities - Fiduciary Fund 27 Notes to Financial Statements 28 Required Supplementary Information Other Post Employment Benefits Schedule of Changes in 's Total OPEB Liability and Related Ratios 71 New York State Teachers' Retirement System Schedule of the City's Proportionate Share of the Net Pension Liability (Asset) 72 Schedule of Contributions 73 New York State and Local Employees' Retirement System Schedule of the City's Proportionate Share of the Net Pension Liability 74 Schedule of Contributions 75 New York State and Local and Fire Retirement System Schedule of the City's Proportionate Share of the Net Pension Liability 76 Schedule of Contributions 77 City of Yonkers, New York

Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2019 Table of Contents (Continued)

Page No.

Combining and Individual Fund Financial Statements and Schedules Major Governmental Funds General Fund Comparative Balance Sheet 78 Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 79 Schedule of Revenues and Other Financing Sources Compared to Budget 81 Schedule of Expenditures and Other Financing Uses Compared to Budget 83 Special Revenue Funds Education Fund Comparative Balance Sheet 88 Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 89 Education Special Aid Fund Comparative Balance Sheet 91 Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 92 Community Development Fund Combining Balance Sheet - Sub Funds 94 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Sub Funds 96 City Projects Fund Comparative Balance Sheet 98 Comparative Statement of Revenues, Expenditures and Changes in Fund Balance 99 Education Capital Projects Fund Comparative Balance Sheet 100 Comparative Statement of Revenues, Expenditures and Changes in Fund Balance 101 Debt Service Fund Combining Balance Sheet - Sub Funds 102 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Sub Funds 103 Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - City 104 Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Education 106 Non-Major Governmental Funds Special Revenue Funds Combining Balance Sheet 108 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 110 Sewer Fund Comparative Balance Sheet 112 Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 113 City of Yonkers, New York Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2019 Table of Contents (Continued) Page No. Fund Comparative Balance Sheet 115 Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 116 Public Library Fund Comparative Balance Sheet 118 Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 119 School Lunch Fund Comparative Balance Sheet 121 Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 122 City Grants Fund Comparative Balance Sheet 124 Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 125 Special Purpose Fund Comparative Balance Sheet 127 Comparative Statement of Revenues, Expenditures and Changes in Fund Balance 128 Statement of Changes in Assets and Liabilities - Fiduciary Fund 129

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 schedules

Financial Trends Net Position by Component - Last Ten Fiscal Years 130 Changes in Net Position - Last Ten Fiscal Years 132 Fund Balances of Governmental Funds - Last Ten Fiscal Years 134 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 136

Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 138 Direct and Overlapping Property Tax Rates, Per $1,000 of Assessed Valuation - Last Ten Fiscal Years 140 Principal Taxpayers - Current Year and Nine Years Ago 141 Property Tax Levies and Collections - Last Ten Fiscal Years 142 Computation of Constitutional Tax Margin 143 City of Yonkers, New York Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2019 Table of Contents (Concluded) Page No. Debt Capacity Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 144 Ratios of Net General Bonded Debt Outstanding - Last Ten Fiscal Years 146 Direct and Overlapping Governmental Activities Debt 147 Legal Debt Margin Information - Last Ten Fiscal Years 148

Demographic and Economic Information Demographic Statistics - Last Ten Fiscal Years 150 Principal Employers - Current Year and Nine Years Ago 151

Operating Information Full- Equivalent City Government Employees by Department - Last Ten Fiscal Years 152 Operating Indicators by Function/Program - Last Ten Fiscal Years 154 Capital Asset Statistics by Function/Program - Last Ten Fiscal Years 156

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.

FEDERAL AWARDS I Federal Programs 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 158 Report on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance 160 Schedule of Expenditures of Federal Awards 162 Notes to Schedule of Expenditures of Federal Awards 164 Schedule of Findings and Questioned Costs 165 Summary Schedule of Prior Audit Findings 167 INTRODUCTORY SECTION

THE CITY OF YONKERS GOVERNMENT

EXECUTIVE BRANCH

MIKE SPANO MAYOR

LEGISLATIVE BRANCH

CITY COUNCIL MEMBERS

Mike Khader, City Council President

MICHAEL SABATINO, Majority Leader , Minority Leader SHANAE WILLIAMS ANTHONY MERANTE CORAZON PINEDA ISAAC JOHN RUBBO

ADMINISTRATIVE OFFICERS

JIM CAVANAUGH First Deputy Mayor

STEVE LEVY Second Deputy Mayor

DENISE EGIZIACO of Staff

JOHN LISZEWSKI Commissioner of Finance and Management Services

ELIZABETH JANOCHA Deputy Commissioner of Finance and Management Services

MATTHEW Corporation Counsel City of Yonkers

Organizational Chart

ELECTORATE

I T I

CITY COUNCIL _ INSPECTOR _ r- MAYOR LEG ISLA TIVE BRANCH -, GENERAL EXECUTIVE BRANCH

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DEPUTY MAYOR CITY CLERK/ ELECTIONS I I I I FINANCE AND CORPORATION MANAGEMENT COUNSEL RESOURCES SERVICES

I I I DEPARTMENT OF PLANNING AND POLICE INFORMATION DEVELOPM ENT DEPARTMENT TECHNOLOGY

I I I

FIRE DEPARTMENT OF ENGINEERING DEPARTMENT PUBLIC WORKS

I I l DEPARTMENT OF CONSTITUENT HOUSING AND DEPARTMENT SERVICES BUILDINGS

I I l

VETERANS HUMAN RIGHTS LIBRARY SERVICES

I

MUSEUM

ii John A. Liszewski DEPARTMENT OF FINANCE AND MANAGEMENT SERVICES Commissioner of Finance One Larkin Center Third Floor Yonkers, NY 10701 Tel. 914.377.6168 Fax 914.376.8218 December 9, 2019 To the Honorable Mayor, Members of the City Council and Citizens of the City of Yonkers, New York

The Comprehensive Annual Financial Report ("CAFR") for the City of Yonkers, New York ("City") for the fiscal year ended June 30, 2019 is herewith submitted. The New York State Comptroller's Office and Section C4 - 9 of the City Charter requires the City to submit an annual report of the financial records and transactions presented in conformity with generally accepted principles ("GAAP") and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. This CAFR is issued pursuant to these requirements.

This report consists of management's representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the City'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 GAAP. Because the cost of internal control should not outweigh their benefits, the City's comprehensive framework of internal control 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 of our knowledge and belief, this financial report is complete and reliable in all material respects.

The City's financial statements have been audited by PKF O'Connor Davies, LLP, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2019 are free from 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.

YonkersNY.gov 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 June 30, 2019, 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 financial section includes a narrative introduction, overview and analysis of the June 30, 2019 financial statements 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 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.

PROFILE OF THE CITY

The City was incorporated in 1872. As provided by the New York State Constitution, the City operates pursuant to the City Charter, adopted in 1961 and subsequently amended. The City also operates in accordance with other State laws including General City Law, General Municipal Law and Local Finance Law, to the extent that such laws are applicable to a City operating under a charter form of government. The City also operates in accordance with the Special Local Finance and Budget Act of 1976 ("Act") for the City of Yonkers, New York.

The City is Westchester 's largest , with a population of 199,663 according to 2018 US Census data. Ranking as the fourth largest city in New York State in terms of the number of residents, it covers an of 18.3 square miles including more than four miles of prime waterfront land along the eastern shore of the majestic . The and central-city areas are built on rising terrain sweeping back from the Hudson River, an unrivaled geographic position in terms of natural beauty and accessibility to the pleasures and amenities that only a riverfront location can provide.

The City operates under a Mayor-Council form of government. The Mayor is elected for a four year term and is designated by the Charter to be the chief executive officer. The City Council President is elected City-wide for a four year term and the six City Council members are elected from single member districts for four year terms. All City elected officials are limited to twelve years of consecutive service in the same position. The legislative power is vested in the City Council. The City Council President presides over the deliberations of the City Council. The main responsibilities of the City Council are to adopt the annual budget, levy taxes and authorize indebtedness.

iv The City is responsible for and maintains police, fire, sanitation, water services, , parks and . Although it is also, in large measure, responsible for the financing of local primary and secondary educational expenditures, the Board of Education, comprised of members appointed by the Mayor, administers the City's school system. In 2014, the State enacted legislation entitled Chapter 55 of the Laws of 2014 known as the "Yonkers City Deficit Financing Act". This legislation from the State required the City and the Board of Education to enter into an inter-municipal agreement, which provides for the City to impose specific financial, operational and/or supervisory control over the Board of Education, effective June 30, 2014. The City is in compliance with quarterly financial reporting in accordance with this Act. Pursuant to State law, Westchester County, not the City, is responsible for the local funding of mandated social service programs such as Medicaid, Family Assistance and Safety Net programs. The City is financially accountable for the Yonkers Downtown Waterfront Development Corporation ("YDWDC"), a legally separate entity, which is reported as a discretely presented component within the City's basic financial statements. Additional information on this component unit can be found in Note 1A in the notes to financial statements.

FACTORS AFFECTING FINANCIAL CONDITION

The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates.

Local Economy

Just thirty minutes from midtown , the City is blessed with numerous distinctive residential neighborhoods, both urban and suburban in character. The City is known for its diverse and highly skilled labor force, its splendid public resources and gardens, stately historic sites and public buildings, more than 100 parks and playgrounds, elementary and higher-educational facilities closely geared to the population's evolving needs, transportation and networks that speed connections to the New York Area and beyond - plus an array of ultra-modern shopping centers and retail facilities that form a core part of the City's economy.

The City is served by two private, not-for-profit and medical-care centers, all of which have long-established reputations for technological excellence and advanced treatment. All these elements and more - the "mix" that makes the City so unique and inviting to new development and initiatives - are manifestations of the City's underlying and ever-growing strength as a flourishing business, commercial, and manufacturing center.

v The City's has an abundance of well-located development sites for large scale corporate and business projects and for a wide diversity of "human scale projects" (, dining, cultural and activities and more). The latter are expected to attract constituencies made up of local families and business groups as well as those from surrounding areas. The prime development sites are readily accessible through the City's impressive network of transportation and highway facilities. The goal for revitalization of these areas is this: by creating a "new" multi-faceted Yonkers, the City is destined to become a magnet for commercial activity.

The City is taking a strategic approach in moving toward its net milestones of growth. There are two distinct, but interrelated, parts to the plan. First, the City has dedicated itself to attracting specific categories of business, highly specialized technology firms (those servicing the and biotech industries, for example); service and professional groups, and light manufacturing or industrial companies, seeking to expand and/or relocate in an area that is literally minutes from 's largest marketplace. Second, it is also focusing on to foster opportunities for carefully planned and responsible development of residential housing, mixed-use projects, as well as recreational, entertainment, and /conference-center facilities.

Completed Economic Development Projects

• The City of Yonkers initiated a Yonkers Alliance that brings together , cultural and tourism sites as well as eating and shopping destinations to put together tourism packages for visitors from and beyond. A new web platform launched in 2019 based on a collaboration of over 50 different local organizations, business owners and developers. • Yonkers' very successful Generation Yonkers campaign, geared to attracting millennials, kicked off another year with a new round of pitch people talking about economic opportunities in Yonkers. • The South Business Improvement District, in conjunction with the Mayor's press office and the Department of Planning and Economic Development, began a campaign to attract the restaurateurs from New York City who are being displaced by rising rents and challenged with difficult delivery schedules. • World-renowned architect and collectors Maya Lin and her husband Daniel Wolf purchased the former Yonkers City Jail on the waterfront and completed conversion of the space into an art studio and art storage space. • The State University of New York's Institute of Technology opened an affiliated called Urban Studio Unbound (US +U) on Main and is hosting gallery openings with local and non-local artists featured.

vi • Sarah Lawrence expanded into the Beczak Environmental Center, creating the Center for the Urban River and studying water quality in the . • The YOFI expanded its weekend event from downtown Yonkers to locations throughout the City over the course of 10 days in October into November. • Yonkers Arts Weekend ('YAW"), in its sixth year, continued to grow with over 5000 visitors coming to downtown, the Hudson River , the YOHO artists Loft in the newly created Carpet Mills Arts District ("CMAD") and Untermyer Gardens. • 44 Hudson Street, a former church, has been purchased for conversion into 144 market rate residential units. The Church has been demolished and work is now beginning at the site. • Phase Ill of the "daylighting" of the Saw Mill River at New is completed. The REDC awarded the City of Yonkers $2.4 million for construction of Phase IV of the "daylighting" of the Saw Mill River, which runs through Chicken Island. • A Chicken Island Request for Proposal ("RFP") went out seeking development ideas. The City has sold the six-acre lot to be redeveloped into a mixed-use residential center that will also include a hotel. Firehouse 1 at the corner of Chicken Island is under construction. • Avalon Bay received approvals for 609 units of residential housing on Street, of which 60 units will be set aside for low/moderate income families under the City's Affordable Housing Ordinance. • Boyce Thompson Institute was successfully RFP'd by the City and has been adaptively re-used as a medical office and retail space in the South Westchester Executive . This project was completed in May 2017. New tenants have been secured. Overall this property has a , restaurants, and retail shops in addition to medical offices. • Ludlow Commons, a new $27 million residential building consisting of 71 senior units that prioritizes housing for seniors displaced by Super Sandy, topped off their building. The building is now leasing. • Mill Creek received a temporary certificate of occupancy for their garage and began leasing their 324 units. • RXR topped off the first of their two towers which will bring another 440 units to the downtown. Ten percent of those units are affordable housing units under the City's Affordable Housing Ordinance. • The City completed its obligations under the Federal Housing Desegregation Order in October of 2017. The City made a three way agreement with the U.S. Department of Housing and Urban Development and the Yonkers Municipal Housing Authority that recipients of the "Tenant Based Rental Assistance" program would be transitioned over the next year onto Section 8 vouchers. • The City was awarded a $2.3 million New York State Department of Transportation grant to transform the former Putnam rail spur into a recreation that will include a and park, access to community gardens and hiking, walking and bike paths that will eventually connect the Yonkers

vii downtown with Van Cortland park. This money enhances a budget of over $500,000 in city capital improvements and additional grant funding secured by Groundworks . • Collins 111 - Hudson Park River Club is a luxury rental building consisting of 213 studio, one and two bedroom units, the majority of which have views of the Hudson River and Palisades or New York City. • 70 Street was auctioned off by the City. The successful bidder was GDC who has subsequently begun investing in the Ludlow Park area adjacent to 150 Downing St. and 70 Pier St. • The City transferred multiple empty lots in the downtown to the developer who owns 1104 Warburton in order to a park that abuts the Old with views of the Hudson River. The developer will build 78-80 new units of housing on the downtown parcels. • The $12 million expansion of the Ashburton Avenue corridor is completed. • 100 residential rental micro-units proposed at iPark are completed. • The Norwich Marriott completed its new hotel in the Executive Park ("SWEP"). • The Hampton Inn on Tuckahoe Road opened. • Three new transit-oriented developments ("TOD") completed recently. Rivertides, consisting of 330 residential units, opened and is leased up. Stratus on Hudson, consisting of 74 residential units, is open and leased up. Another 55 units at 1177 Warburton is also open and leased up. All were completed in the last two years and all have immediate access to the Hudson Line of Metro North via the Greyston station.

Long-Term Financial Planning

The City's future projects include the following:

• Ludlow. Ginsburg Development Corporation ("GDC") responded to a City issued RFP in order to buy 150 Downing Street. The proposed development there would be approximately 500 residential units. In order to increase the size of the development's footprint, GDC also purchased the property immediately adjacent to 150 Downing Street which was owned by Westchester Metal Works. Because GDC specializes in TOD projects they also purchased 70 Pier Street from the City. All of these properties are within walking distance of the Hudson Line's Ludlow . The City procured the services of BFJ to a masterplan for the area. The masterplan is anticipated to be complete in 2020. • Road. ("BRR") is accessible to the Line of the Metro North Railroad making many developments along the road TOD. Three developments are currently active on BRR. The first is 160 residential units at 697 (aka 705) BRR, which is erected and has a temporary standpipe but has not yet applied for a temporary certificate of occupancy ("TCO"). The

viii second is 44 units at 411 BRR which has a TCO. The last is the former Kimball Theater site at 453 BRR which was originally approved for 255 residential units but will likely be resubmitted with less density. • Nepperhan Valley. The Nepperhan Valley is directly to the east of the Neighborhood project area. The City worked with local owners of approximately 1.2 million square feet of former mill buildings to promote artist's studios and other artisan based industrial uses in the former Alexander Smith Carpet mills to reclassify the district "CMAD", the Carpet Mills Arts District. The City has also expanded the for the area to allow for ground floor retail that is complimentary to the artists and artisans and also allows for restaurants in the area. The City is submitting legislation amending the City's Zoning Code for the Artisans & Industry (A&I) Special District for the purpose of including certain permitted and accessory uses allowed in an industrial, residences excluded ("I") zone. • Downtown Yonkers. Several buildings have been bought and renovated in the downtown. The Trolley Barn at 92 Main Street which includes 40 residential units above first floor commercial spaces was purchased for $19.5 million and renovated for approximately $2 million. The first floor commercial space now includes Yonkers Brewing Company and Yonkers Partners in Education ("YPIE") College Zone, a tutoring and after-school space for Yonkers public high school students planning to attend college. The former Homes for America building at 86 Main Street was purchased for $15.5 million and a new fagade, consisting of floor to ceiling glass windows, was added for approximately $6 million. • City at Yonkers Raceway. In January 2013, Empire City completed a new $50 million expansion designed by Studio V Architecture that added 66,000 square feet to the casino. The expansion featured a porte-cochere sculptural entrance; the largest window in the Northeast, a 300- foot long and 27-foot high depiction of the New York City made entirely of nails; a new gaming floor with nearly 700 slot machines; and two new restaurants. In 2018, Empire City was purchased by MGM for $850 million. The current MGM management team has held community charrettes to determine what the enhanced site should include. The 97-acre site could eventually include a hotel, entertainment venue and an increased gaming floor.

Relevant Financial Policies

The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual budget approved by the City Council. Certain elements of the City's budget process are prescribed under guidelines within the Special Local Finance and Budget Act of 1976 ("Act") for the City of Yonkers, New York. This Act was enacted and designed to prohibit the recurrence of practices that created fiscal conditions that precluded the City access to financial markets. The most significant financial components of the Act require 1) that budgeted operating expenditures be limited to amounts not less than those of the

ix previous audited year and requires revenues to be estimated at not more than those of the previous audited year, unless justification documents have been filed with the State Comptroller for support, 2) that any deficits from the previous year be budgeted, 3) a provision for uncollected taxes be budgeted by a set formula, 4) that the amount of fund balance that can be appropriated for use can be no more than the amount certified by the last completed independent audit and 5) that a separate fund be established to service the City's debt obligations and that a fixed percentage of property tax levy and a fixed portion of sales tax monies be deposited directly to ensure sufficient funds be available to satisfy bondholders. The City Charter and the Act require the budget to be presented to the City Council by April

1 15 h. The City Council may alter, reject, add, increase or decrease any item in the proposed budget. The

City Council will hold public hearings in May, and by Charter, adopts the budget no than June 1st The operating budget requires a simple majority (4 votes) for approval while the capital budget requires a super majority (5 votes). The Fiscal Agent, which is the State Comptroller, reviews the operating and capital budgets after adoption by the City Council, and certifies that the budget is in compliance with the Act.

The City prepared its 2019-20 operating and capital budgets in accordance with the guidelines prescribed by the Act and the Fiscal Agent certified the City's budget. The City does not foresee any issues with its ability to comply with the guidelines in the implementation of its near and long term initiatives.

AWARDS AND ACKNOWLEDGMENTS

GFOA - Certificate of Achievement for Excellence in Financial Reporting

The Government Finance Officers Association ("GFOA") awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Yonkers for its comprehensive annual financial report for the fiscal year ended June 30, 2018. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report. 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. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to GFOA to determine its eligibility for another certificate.

x Acknowledgments

I would like to thank all the accounting and financial personnel who have assisted in the preparation of this report. In particular, I want to thank Maria Tavares, Director of Accounting, Patrick Luzzi, Chief Accountant, Desmond Barnett, Chief Accountant, the entire Finance Department and the Yonkers Public Schools and its Board of Trustees for their efforts, as well as our independent auditor who assisted in its preparation. I would also like to thank the Mayor and the City Council for their interest and support in the financial operations of the City.

Respectfully submitted, {{

JOHN LISZEWSKI Commissioner of Finance and Management Services

xi (This page intentionally left blank) Government Finance Officers Association

Certificate of Achievement for Excellence in Financial Reporting

Presented to City of Yonkers New York

For its Comprehensive Annual Financial Report for the Fiscal Year Ended

June 30, 2018

Executive Director/CEO

xii (This page intentionally left blank) FINANCIAL SECTION re9 PKF' V acONNOR DAVIES ACCOUNTANTS AND ADVISORS

Independent Auditors' Report

The Honorable Mayor and City Council of the City of Yonkers, New York

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the discretely presented component unit, each major fund and the aggregate remaining fund information of the City of Yonkers, New York ("City") as of and for the year ended June 30, 2019, 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 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 opinions 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 City'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 City'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.

PKF O'CONNOR DAVIES, LLP 500 Mamaroneck Avenue, Harrison, NY 10528 I Tel: 914.381.8900 I Fax: 914.381 .8910 I www.pkfod.com

PKF 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. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the discretely presented component unit, each major fund and the aggregate remaining fund information of the City as of June 30, 2019 and the respective changes in financial position and the respective budgetary comparison for the General, Education and Education Special Aid funds for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that Management's Discussion and Analysis and the schedules included under Required Supplementary Information in the accompanying table of contents 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 for the year ended June 30, 2019 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards and the introductory and statistical sections for the year ended June 30, 2019 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 for the year ended June 30, 2019 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 for the year ended June 30, 2019.

We also previously audited, 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, the basic financial statements of the City as of and for the year ended June 30, 2018 (not presented herein), and have issued our report thereon dated December 5, 2018 which contained unmodified opinions on the respective financial statements of the governmental activities, the discretely presented component unit, each major fund and

2 the aggregate remaining fund information. The combining and individual fund financial statements and schedules for the year ended June 30, 2018 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the 2018 financial statements. The combining and individual fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the 2018 basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare those financial statements or to those 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 for the year ended June 30, 2018.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements for the year ended June 30, 2019 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 , 2019 on our consideration of the City's internal control over financial reporting and 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 effectiveness of the City's 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.

PJ

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Management's Discussion and Analysis (MD&A) June 30, 2019

Introduction

As management of the City of Yonkers, 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 June 30, 2019. It should be read in conjunction with the basic financial statements, which immediately follow this section, to enhance understanding of the City's financial performance.

Financial Highlights

Key financial highlights for fiscal year 2019 are as follows:

• The City's total net position, as reflected in the government-wide financial statements, decreased by $9.93 million, from a deficit of $2.83 billion at June 30, 2018 to a deficit of $2.84 billion at June 30, 2019. Of this latter amount, the unrestricted portion is a deficit of $3.18 billion. This deficit results primarily from the accrual of certain operating liabilities pursuant to various Governmental Accounting Standards Board ("GASS") pronouncements discussed below. These liabilities will be satisfied in future years, including borrowings for judgments and claims, retirement system obligations, compensated absences, net pension liabilities, claims payable and other postemployment benefit ("OPES") obligations.

• The total decrease in net position resulted primarily from the increase of $62.6 million in the accrual for the City's OPES obligation in accordance with the requirements of GASS Statement No. 75, partially offset by the positive results from operations.

• In addition to the impact of the City's OPES obligations, the government-wide financial statements for the year ended June 30, 2019 are also significantly impacted by the provisions of GASS Statement No. 68. This pronouncement established accounting and financial reporting requirements associated with the City's participation in the cost sharing multiple employer pension plans administered by the New York State and Local Employees' Retirement System ("ERS"), the New York State and Local Police and Fire Retirement System ("PFRS") and the New York State Teachers' Retirement System ("TRS"). Under these standards, cost-sharing employers are required to report in their government-wide financial statements a net pension liability (asset), pension expense and pension related deferred inflows and outflows of resources based on their proportionate share of the collective amounts for all of the and school districts in the plan. At June 30, 2019, the City reported in its Statement of Net Position a liability of $120,730,134 ($39,699,196 for its proportionate share of the net pension liability of ERS and $81,030,938 for its proportionate share of the net pension liability of PFRS) while also reporting an asset of $27,507,493 for its proportionate share of the net pension asset for TRS. More detailed information about the City's pension plan reporting in accordance with the provisions of GASS Statement No. 68, including amounts reported as pension expense and deferred inflows/outflows of resources, is presented in Note 3J in the notes to financial statements.

• As of the close of the current fiscal year, the City's governmental fund financial statements reported a combined ending fund balance of $147.6 million, a decrease of $41.1 million in comparison with the prior year. However, exclusive of the Capital Projects funds, the combined ending fund balances increased by $13 million to $121.2 million. Of this latter 4 amount, $69.5 million represents the total fund balance of the General Fund, while $23.3 million represents the total fund balance of the Education Fund. Of the total fund balance of the General Fund, $41 million is unassigned and available for spending at the City's discretion. In the Education Fund, $20.8 million of the total fund balance is assigned, of which $289,307 is for purchases on order, $7 .8 million is appropriated for the 2019 budget, and $12. 7 million is for future spending on education related purposes.

• At of the current fiscal year, unassigned fund balance for the General Fund of $41 million represented 5.1 % of total General Fund expenditures and other financing uses. The assigned fund balance for the Education Fund (exclusive of encumbrances) of $20.5 million represented 3.6% of the total Education Fund expenditures and other financing uses.

• The City retired $60.4 million in general obligation bonded debt, $1.6 million in notes, $.2 million in state loans and $.8 million in energy performance contract debt in the current fiscal year.

• The City issued and has outstanding $16.2 million of bond anticipation notes for tax certiorari obligations and $79.5 million for various City and Education capital projects at June 30, 2019.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements 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 of the City's financial statements 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 of the City's assets, liabilities and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator as to whether the financial position of the City is improving or deteriorating.

The statement of activities presents information reflecting how the City's net position changed 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 flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods (for example, uncollected taxes, earned but unused leave, early retirement incentives, net pension liabilities and OPES).

The government-wide financial statements present the functions of the City that are primarily supported by taxes and intergovernmental revenues. The governmental activities of the City include general government support, education, public safety, transportation, and recreation, home and community services and interest. The government-wide financial statements include not only the City itself (the primary government) but also the Yonkers Downtown Waterfront Development Corporation for which the City is financially accountable. Financial information for this component 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. 5 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. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related and legal requirements. All of the funds of the City are divided into two categories: governmental funds and fiduciary funds.

Governmental Funds

Governmental funds 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 on 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 narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term 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 maintains thirteen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General Fund, Education Fund, Education Special Aid Fund, Community Development Fund, City Capital Projects Fund, Education Capital Projects Fund and Debt Service Fund, which are considered to be major funds. Data for the other six governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report.

The City adopts an annual appropriation budget for its General Fund, Education Fund, Education Special Aid Fund and Debt Service Fund, which are major funds. A budgetary comparison statement has been provided for the General Fund and for the Education and Education Special Aid funds (major special revenue funds) within the basic financial statements to demonstrate compliance with the respective budgets. The City also adopts an annual appropriation budget for the Sewer, Water, Public Library, School Lunch and City Grants funds, which are non-major funds.

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 the City's own programs. The City maintains only one type of fiduciary fund that is known as an agency fund. Resources are held in this fund by the City 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 financial statements for the governmental and fiduciary funds can be found in the basic financial statements section of this report.

6 Notes to 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 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 financial statements. These include the required supplementary information for the City's OPES obligations and net pension liabilities, 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 the City's financial position. In the case of the City, liabilities and deferred inflows of resources exceeded assets and deferred outflows of resources by $2.84 billion at the close of the current fiscal year.

Net Position

June 30, 2019 2018

Current Assets $ 497,799,840 $ 428,927,259 Captial Assets, net 698,488, 120 657,980,899

Total Assets 1, 196,287,960 1,086,908, 158

Deferred Outflows of Resources 243,980,505 322,864,636

Current Liabilities 306,538,810 211,261,310 Long-term Liabilities 3,896,688,784 3,839,755,868

Total Liabilities 4,203,227,594 4,051,017,178

Deferred Inflows of Resources 78,733,482 190,517,231

Net Position Net investment in capital assets 308,349,650 271,015,378 Restricted 25,621,464 20,360,581 Unrestricted {3, 175,663,725} {3, 123, 137,574}

Total Net Position $ {2,841,692,611l $ {2,831, 761,615l

One component of the City's net position is its investment in capital assets, less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to the 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 used to liquidate these liabilities.

Those assets subject to external restrictions are $25.6 million. The remaining balance of net position, unrestricted net position, is a deficit of $3.18 billion. This deficit must be financed from future operations. This deficit does not mean that the City does not have resources available to meet its obligations in the ensuing year. Rather, it is the result of having long-term commitments, including 7 retirement incentives ($89 million), claims payable ($75.1 million), state loans payable ($2.2 million), energy performance contract payable ($4.2 million), compensated absences ($49.6 million), net pension liability ($120.7 million) and OPEB obligations ($3.02 billion) that are greater than currently available resources. Payments for these liabilities will be budgeted in the years that the actual payments will be made.

Changes in Net Position

June 30, REVENUES 2019 2018 Program Revenues Charges for Services $ 97,696,377 $ 92,573,886 Operating Grants and Contributions 105,461,704 107,397,450 Capital Grants and Contributions 14,341,718 4,875,740 General Revenues Real Property Taxes 355,665,506 344,286,901 Other Tax items 92,547,545 84,072,083 Non-Property Taxes 169,293,625 161,731,666 Unrestricted Use of Money and Property 1,506,634 689,333 Sale of Property and Compensation for Loss 14,189,098 513,788

Unrestricted State Aid 423,923,300 396,316,816 Gain on sale of real property 2,998,222 2,073,315 Miscellaneous 6,815,095 6,294,038

Total Revenues 1,284,438,824 1,200,825,016

PROGRAM EXPENSE General Government Support 154,609,210 138,885,300 Education 687,802,391 675,723,493 Public Safety 306,335,889 283,946,026 Transportation 8,162,352 8,038,884 Culture and Recreation 34,431,015 32, 132,537 Home and Community Services 84,985,803 83,633,445 Interest 18,043,160 16,264,688

Total Expenses 1,294,369,820 1,238,624,373

Change in Net Position {9,930,996} {37,799,357}

NET POSITION Net Position - Beginning, as reported (2,831,761,615) (1, 111,987,844)

Cumulative Effect of Change in Accounting Principle (1,680,426,514)

Prior Period Adjustment {1,547,900}

Net Position - Beginning, as restated {2,831,761,615} {2,793,962,258}

Net Position - Ending $ {2,841,692,611} $ {2,831,761,615}

8 Governmental activities decreased the City's net position by $9.93 million. The City's total governmental activities revenues were $1.3 billion for the year ended June 30, 2019, an increase of $83.6 million, or 7.0%, over the prior year. Real property taxes comprised 27.7%, while unrestricted State aid provided 33.0% of these total revenues. Governmental activities expenses of the City for the year ended June 30, 2019 totaled $1.3 billion, an increase of $55.7 million, or 4.5%, from the prior year. Education expenses accounted for the largest portion ($687.8 million or 53.1 %), followed by public safety spending at $306.3 million, or 23.7% of total expenses.

The major changes are as follows:

Revenues:

• Revenues from real property taxes increased by $11.4 million. This was primarily attributable to a $23 million increase in the current year tax levy offset by a $12 million decline in prior year tax payments.

• Revenues from non-property tax items increased by $7.6 million. This was primarily attributable to an overall increase in sales and use tax collections and better-than-expected collections of personal income taxes. Sales and use tax for the City increased by $2.5 million and sales and use tax for education increased by $.4 million. Income taxes increased $4.9 million. These are primarily due to a robust local economy due to economic development programs.

• Revenues from unrestricted State aid increased by $27.6 million and primarily relates to increases in State aid available to the Yonkers Public Schools of $21.9 million combined with an increase of Specialized state aid - Restructuring board of $5 million.

Expenses:

• General government support expenses increased by $15.7 million, primarily due to an increase in the City's OPEB obligation in this functional expense category of $19.8 million, partially offset by a reduction in tax certiorari expenses compared to the prior year of $3.6 million.

• Education expenses increased by $12.1 million, or 1.79%, from the prior year. The increase is the result of several factors, including increases in teaching and learning of $4 million as a result of contractual salary increases; employee benefits of $6.4 million as a result of increased retirement rate and health benefit increases; and disabilities of $6.8 million as a result of increases in the number of students with disabilities and tuition cost.

• Public safety expenses increased by $22.4 million primarily due to various increases in the current year allocation of long-term items. These include an increase in employee benefits of $8.52 million, compensated absences increase of $5.73 million and OPEB increase of $6.77 million.

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 June 30, 2011. GASB Statement No. 54 abandoned the reserved and unreserved classifications of fund balance and replaced them with new 9 classifications: nonspendable, restricted, committed, assigned and unassigned. An explanation of these classifications follows below.

Nonspendable - consists of assets that either are inherently nonspendable in the current period 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 , granters, 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 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 has resulted 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 spending at the end of the fiscal year.

As of the end of the current fiscal year, the City's governmental funds reported combined fund balances of $147.6 million, a decrease of $41.1 million in comparison with the prior year. Exclusive of the Capital Projects funds, the combined fund balances totaled $121.2 million. Of this amount, $2.8 million is in nonspendable form while $13.5 million is restricted for various purposes ($1.9 million for debt service, $5.6 million for community development purposes, $4.7 million for sewer purposes and $1.3 million for special purposes). The assigned fund balance of $66.4 million is being utilized to 1) fund purchases (encumbrances) aggregating $1.3 million for City purposes and $.3 million for Education purposes, 2) balance the subsequent year's budget ($27.9 million for the General Fund, $7.8 million for the Education Fund, $.35 million for the Public Library Fund and $.55 million for the School Lunch Fund) and 3) set aside funds for various specific purposes ($12. 7 million for education, $.5 million for public library purposes, $14.7 million for water purposes and $.3 million for the School Lunch Fund). The remainder of the total fund balance classified as unassigned represents the positive unassigned fund balance in the General Fund of $41 million, which is available for use at the City's discretion, partially offset by a deficit in the Education Special Aid Fund of $2.5 million (due to a timing issue in the expected receipt of a state grant).

10 The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the total fund balance of the General Fund was $69.5 million. Of this amount, $27.9 million is assigned for use in balancing the fiscal year 2019-2020 budget, while $.6 million is assigned to satisfy purchases on order at the end of the fiscal year. The remaining balance of $41 million is available for use at the City's discretion. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures and other financing uses. Unassigned fund balance represents 5.1 % of total General Fund expenditures and other financing uses (up from 3.6% in the prior year), while total fund balance represents 8.6% of that same amount (up from 5.9% in the prior year).

When the fiscal 2018-19 General Fund budget was adopted, it anticipated the use of $18.3 million in fund balance. This amount, coupled with $0.4 million in General Fund encumbrances rolled over from the prior year, resulted in a total of $18.7 million planned for use in balancing both the original and final 2018-19 General Fund operating budget. Actual results yielded an increase of $22.9 million in fund balance, resulting in $41.6 million return to fund balance from 2018-19 General Fund operations. The budget surplus of $41.6 million was derived from primarily better than expected revenues and other financing sources of $33.0 million, including 1) real estate transfer tax ($9.6 million) from the sale of the Empire City Casino, 2) surcharge ($3.8 million) due to an improving local economy, and 3) gain on sale of real property ($14.1 million) from the sale of Chicken Island. The City also expended less than anticipated by $8.3 million, including departmental savings across operations in areas such as general government support, culture and recreation, home and community services, and employee benefits.

The most significant special revenue fund of the City is the Education Fund. During fiscal year 2019, the City contributed $231.2 million to the Education Fund. The major revenue source within the Education Fund, besides the City's contribution, was State aid, which amounted to $322.3 million. The Education Fund expenditures and transfers out totaled $569.1 million. When the fiscal 2018-19 Education Fund budget was revised, it anticipated the use of $25.0 million in fund balance. This amount, coupled with $0.1 million in Education Fund encumbrances rolled over from the prior year, resulted in a total of $25.1 million planned for use in balancing the final 2018-19 Education Fund operating budget. Actual results yielded a use of $9.6 million fund balance, resulting in $15. 5 million returned to fund balance from 2018-19 Education Fund operations, mostly derived from savings in central services, programs for students with disabilities, regular teaching, pupil services, and employee benefits. Further information for the Yonkers Public Schools can be obtained in the separately issued audited financial statements.

The Community Development Fund is used to record the operations of the grant programs operated by the City's Community Development Agency. During fiscal year 2019, the fund reflected an increase in fund balance of $.3 million from the prior year, bringing the aggregate fund balance up to $5.6 million.

The City and Education Capital Projects funds reflected a decrease in fund balance of $54.1 million from the prior year, bringing the aggregate fund balances down to $26.4 million. Total capital outlay expenditures were $68.3 million, spent on school construction projects, various infrastructure improvements and equipment to support the City's various functions.

General Fund Budgetary Highlights

The Special Local Finance and Budget Act of 1976 prohibits any amendments to the General Fund budget (other than budget transfers), except in the case of authorized debt issuances or subsequent changes in State aid allocated to the City. To this end, the General Fund budget was modified by $16.1 million in 2018-19 as the result of the issuance of bond anticipation notes issued for tax certiorari claims. Actual revenues and other financing sources exceeded the final budgetary 11 expectations by $33.0 million. Actual expenditures and other financing uses were $8.5 million less than the final budget.

Overall, General Fund expenditures were $486.4 million (excluding other financing uses), which was $8.3 million less than the final budget. There were budgetary savings, as well as overages, noted in various areas:

• The general government support area, with a final budget of $109.0 million, had an overall savings of $5.6 million. The general building services and vehicle maintenance divisions of the Department of Public Works generated a combined $1.8 million in savings, primarily due to lower-than-expected maintenance/repair costs. Parking Violations Bureau expenditures were $0.5 million below final budget. Administrative/Advisory functions, such as management information, provided mandated services while generating $1.3 million in savings across operations. Special Items, such as, Termination Payments and Reserve for Uncollected Taxes, generated a net savings of $0.8 million across all accounts. Executive functions, such as Personnel and Labor Relations, generated $0.5 million in savings across operations. Taxes on City Property was overexpended by $1.0 million.

• Public safety expenditures were essentially at budget or just $0.2 million more than the final $182.0 million budget.

• Transportation expenditures were $0.2 million below final budget of $2.1 million.

• Culture and recreation expenditures were $0.5 million below final budget of $10.7 million.

• Home and community services expenditures ended $1.4 million under the final budget of $24.5 million. The Department of Public Works generated $1.1 million surplus across combined city maintenance and refuse collection/disposal operations.

• Employee Benefits generated savings of $2.1 million, which represents approximately 1.26% of the final $165.1 million budget.

The General Fund revenues were $785.0 million (excluding other financing sources), plus another $14.1 million recorded as Other Financing Sources - Sale of Property, which combined was $33.1 million more than the final budget, due to the following reasons:

• Other tax items were higher than anticipated by $10.1 million, due primarily to additional revenues from real estate transfer taxes of $9.6 million due to a strong real estate market and a large receipt from the sale of the Empire City Racine to MGM Resorts.

• Non-property taxes were $3.6 million more than the final budget due primarily to better-than­ expected collections of personal income taxes of $3.8 million due to a robust local economy offset by $0.2 million lower-than-expected collections in the other non-property taxes (such as cable television franchise fees).

• Departmental income was $2.2 million more than the final budget primarily because of better­ than-expected collections in the Parking Violations Bureau of $1.1 million.

• Other Financing Sources - Sale of Real Property (Gain on Sale), were $14.1 million greater than budget primarily due to the sale of a large parcel nicknamed "Chicken Island" for $13. O million.

12 Capital Assets

The City's investment in capital assets for its governmental activities as of June 30, 2019 amounted to $698.5 million (net of accumulated depreciation). This investment in capital assets includes land, construction-in-progress, buildings and improvements, machinery and equipment and infrastructure. The total net increase in the City's investment in capital assets for the current fiscal year was $40.5 million.

Major capital asset events during the current fiscal year included the following:

• Construction of New Firehouse • Saw Mill River Daylighting • Murray's Rink Reconstruction • Exterior Reconstruction - Will Branch Library • General Parks Improvements • Saw Mill/Bronx River Outflow Remediation • Ashburton Avenue Improvements

The change in capital assets, net of accumulated depreciation, is reflected below.

2019 2018

Land $ 31,957,006 $ 25,369,666 Building and Improvements 367,038,406 381,068, 179 Machinery and Equipment 28,408,356 36,959,980 Infrastructure 151,807,248 159, 160,032 Construction-in-progress 119,277, 104 55,423,042

Total $ 698,488, 120 $ 657,980,899 ======More detailed information about the City's capital assets is presented in Note 3F in the notes to financial statements.

Long-term Debt

The City had general obligation and other long-term debt outstanding as follows:

June 30, 2019 2018

Bonds Payable $ 506, 856, 927 $ 573, 753, 376 Notes Payable 11,096,000 12,743,336 Bonds Anticipation Notes Payable 16,150,000 State Loan Payable 2,200,000 2,400,000 Energy Performance Contract Payable 4,211,500 5,053,800 Compensated Absences 49,566,901 46,273,604 Net Pension Liability 120, 730, 134 65,607,991 Retirement Incentives and Other Pension Obligations 88,988,084 93,432,592 Claims Payable 75,051,697 81,231,959 Other Post Employment Benefit Obligation 3,021,837,541 2, 959,259,210 Total ======$ 3,896,688,784 $ 3,839,755,868

13 The City retired $60.4 million of general obligation bonded debt. The City issued $16.2 million of new bond anticipation notes.

On October 30, 2019, Moody's Investors Service ("Moody's") affirmed the long-term underlying credit rating of "A2" with a negative outlook, applicable to the City's outstanding general obligation bonds issued for City purposes and assigned such rating as an underlying rating to the Series A Bonds and Series C Bonds. At the same time, Moody's assigned the enhanced rating to bonds issued by the City on behalf of the Board of Education on account of the State aid intercept authorized by Section 99-b of the State Finance Law of "Aa3" (stable outlook) as an underlying rating to the Series B Bonds.

On October 30, 2019, S&P affirmed the long-term, underlying credit rating of "A" with a negative outlook, applicable to the City's general obligation bonds and assigned such rating as an underlying rating to the Bonds. In accordance with S&P's policy, which removed all post-default enhanced ratings, S&P no longer assigns an enhanced rating to bonds issued by the City on behalf of the Board of Education on account of the State aid intercept authorized by Section 99-b of the State Finance Law.

More detailed information about the City's long-term liabilities is presented in Note 3J in the notes to financial statements.

Economic Factors and Next Year's Budget

Economic factors were taken into account in developing the City's 2019-20 budget. In the City's budget, 2019-20 sales tax growth is budgeted at approximately 3.4% over the 2018-19 actual. The City's 2019-20 personal income tax is budgeted at approximately 0.1 % over the 2018-19 actual. The 2019-20 mortgage tax is budgeted at approximately 0.9% higher than the 2018-19 actual.

Projected expenditures exhibit continued growth, such as in the cost of providing health benefits and pension contributions. A contingency amount of $5.3 million was also budgeted.

Excluding transfers out to the Education Fund, Library Fund, Museum Fund, Water Fund and Debt Service Fund, the General Fund adopted budget for fiscal year 2019-20 is $490.0 million, as compared to the fiscal year 2018-19 budget of $477.8 million, an increase of approximately $12.2 million, or 2.6%. The City elected to use $27.9 million of unrestricted General Fund balance at June 30, 2019 to balance the fiscal year 2019-20 budget. For the 2019-20 adopted budget, the City's combined tax rate for City and Board of Education operations rose from $804.72 per thousand of assessed value to $831.98, a 3.39% increase.

Requests for Information

This financial report is designed to provide a general overview of the City's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Commissioner of Finance and Management Services, City of Yonkers, Department of Finance, One Larkin Center, Third Floor, Yonkers, New York 10701 or visit the City's web page at www.yonkersny.gov.

14 (This page intentionally left blank) BASIC FINANCIAL STATEMENTS

City of Yonkers, New York

Statement of Net Position June 30, 2019

Primary Component Government Unit Yonkers Downtown Waterfront Governmental Development Activities Cor12oration ASSETS Cash and equivalents $ 80,770,136 $ 136,961 Investments 173,920,396 Receivables Property taxes, net 13,717,393 Income taxes 300,239 Accounts, net 44,227,287 State and Federal aid 144,997,694 Loans, net 12, 118,364 Prepaid expenses 12,274 1, 106 Inventories 228,564 Net pension asset 27,507,493 Capital assets Not being depreciated 151,234,110 225,315 Being depreciated, net 547,254,010

Total Assets 1, 196,287,960 363,382

DEFERRED OUTFLOWS OF RESOURCES Deferred amounts on refunding bonds 13,978,209 Deferred amounts on pensions 230,002,296

Total Deferred Outflows of Resources 243,980,505

LIABILITIES Accounts payable 89,775,890 29,645 Accrued liabilities 35,850,645 County taxes payable 31,750,964 Employee payroll deductions 1,466,969 Due to other governments 5,489,257 Bond anticipation notes payable 79,513,082 Unearned revenues 9,119,215 Due to retirement systems 47,145,907 Overpayments 257,831 Accrued interest payable 6, 169,050 Non-current liabilities Due within one year 87,831,033 Due in more than one year 3,808,857, 751

Total Liabilities 4,203,227,594 29,645

DEFERRED INFLOWS OF RESOURCES Taxes collected in advance 476,188 Deferred amounts on pensions 78,257,294

Total Deferred Inflows of Resources 78,733,482

NET POSITION Net investment in capital assets 308,349,650 225,315 Restricted Capital projects 1,208,975 Special purposes Scholarships 1,290, 128 Debt service 1,988,780 Community development projects 16,384,521 Sewer 4,749,060 Unrestricted (3, 175,663,725) 108,422

Total Net Position $ (2,841,692,611) $ 333,737 The notes to financial statements are an integral part of this statement. 15 City of Yonkers, New York

Statement of Activities Year Ended June 30, 2019

Program Revenues

Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Primary government Governmental activities General government support $ 154,609,210 $ 24,455,474 $ 12,793 $ Education 687,802,391 1, 188,439 85, 172,201 14, 143,691 Public safety 306,335,889 16,027,792 3,586,304 Transportation 8, 162,352 488,699 5,595,849 Culture and recreation 34,431,015 2,526,667 2,234,534 Home and community services 84,985,803 53,009,306 8,401,393 60,044 Interest 18,043, 160 458,630 137,983

Total Governmental Activities $ 1,294,369,820 $ 97,696,377 $ 105,461, 704 $ 14,341,718

Component Unit Yonkers Downtown Waterfront Development Corporation $ 190,915 $ $ 169 $ ======General revenues Real property taxes Other tax items Interest and penalties on real property taxes Payments in lieu of taxes Real estate transfer taxes School tax reimbursement Supplemental real estate taxes Water Fund Non-property taxes Income taxes Sales and use taxes Off- betting surcharge Raceway admissions taxes Raceway impact fees Utilities gross receipts taxes Cable television franchise fees Hotel room and occupancy tax Unrestricted use of money and property Sale of property and compensation for loss Unrestricted State aid Gain on sale of real property Miscellaneous

Total General Revenues

Change in Net Position

Net Position - Beginning, as restated

Net Position - Ending

The notes to financial statements are an integral part of this statement. 16 Net (Expense) Revenue and Changes in Net Position Primary Component Government Unit Yonkers Downtown Waterfront Governmental Development Activities Corporation

$ (130,140,943) $ (587,298,060) (286, 721, 793) (2,077,804) (29,669,814) (23,515,060) (17,446,547)

(1,076,870,021)

(190,746)

355,665,506

4,472,150 24,328,059 23,699,949 34,699,664 744,247 4,603,476

57,878,497 96,859,078 88,530 22,771 1,500,000 8,012,072 3,921,414 1,011,263 1,506,634 14, 189,098 423, 923, 300 2,998,222 6,815,095

1,066,939,025

(9,930,996) (190,746)

(2,831,761,615) 524,483

$ (2,841,692,611) $ 333,737

17 City of Yonkers, New York

Balance Sheet Governmental Funds June 30, 2019

Education Special General Education Aid ASSETS Cash and equivalents $ 47,384,837 $ $

Investments 124,854,497

Receivables Property taxes, net 13,717,393 Income taxes 300,239 Accounts, net 6,367,262 11,461,557 State and Federal aid 29,674,844 80,320,197 14,255,572 Due from other funds 161,735,608 71,667,460 684,142 Advances to other funds 2,517,307 Loans, net 460,899

212,256,245 165,966,521 14,939,714

Prepaid expenditures

Inventories

Total Assets $ 384,495,579 $ 165,966,521 $ 14,939,714

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES (DEFICITS) Liabilities Accounts payable $ 34,002,290 $ 36,479,943 $ 3,038,451 Accrued liabilities 6,713,233 27,332,537 1,293,641 County taxes payable 31,750,964 Employee payroll deductions 1,466,969 Due to other governments 573,618 883,639 Bond anticipation notes payable Due to other funds 217,897,084 42,528,460 9,723,983 Unearned revenues Due to retiremer;it systems 12,243,465 33,601,825 Advances from other funds 2,517,307 Overpayments 257,831

Total Liabilities 304,07 4,005 140,774,214 17,457,021

Deferred inflows of resources Unavailable revenues - State aid and tuition 1,861,599 Unavailable revenues - other 1,037,922 Deferred tax revenues 9,443,380 Taxes collected in advance 476,188

Total Deferred Inflows of Resources 10,957,490 1,861,599

Total Liabilities and Deferred Inflows of Resources 315,031,495 142,635,813 17,457,021

Fund balances (deficits) Nonspendable 2,517,307 Restricted Assigned 28,442, 197 20,813,401 Unassigned 41,021,887 {2,517,3on

Total Fund Balances (Deficits) 69,464,084 23,330,708 {2,517,307)

Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficits) $ 384,495,579 $ 165,966,521 $ 14,939,714

The notes to financial statements are an integral part of this statement. 18 City Education Total Community Capital Capital Debt Non-Major Governmental Develoement Projects Projects Service Governmental Funds

$ 8,619,044 $ $ $ 1,835,801 $ 22,930,454 $ 80,770,136

48,510,588 555,311 173,920,396

13,717,393 300,239 305,193 1,979,480 24, 113,795 44,227,287 13,649 20,733,432 144,997,694 61,647 68,977,763 43,266,583 85,451,711 1,460,353 433,305,267 2,517,307 11,657,465 12,118,364

12,024,305 68,991,412 45,246,063 85,451,711 46,307,580 651,183,551

12,274 12,274

228,564 228,564

$ 20,655,623 $ 117,502,000 $ 45,246,063 $ 87,287,512 $ 70,021,909 $ 906,114,921

$ 44,892 $ 2,290,517 $ 1,733,903 $ $ 12,185,894 $ 89,775,890 1,824 171,992 337,418 35,850,645 31,750,964 1,466,969 4,032,000 5,489,257 52,193,082 27,320,000 79,513,082 191,261 51,061,382 1,451, 108 85,298,732 25,153,257 433,305,267 1,125 104, 194 9,013,896 9,119,215 45,845,290 2,517,307 257,831

4,271,102 105,649, 175 30,677,003 85,298,732 46,690,465 734,891,717

1,861,599 10,806,853 11,844,775 9,443,380 476,188

10,806,853 23,625,942

15,077,955 105,649, 175 30,677,003 85,298,732 46,690,465 758,517,659

12,274 228,564 2,758,145 5,565,394 11,852,825 14,569,060 1,988,780 5,993,157 39,969,216 17, 109,723 66,365,321 38,504,580

5,577,668 11,852,825 14,569,060 1,988,780 23,331,444 147,597,262

$ 20,655,623 $ 117,502,000 $ 45,246,063 $ 87,287,512 $ 70,021,909 $ 906,114,921

19 (This page intentionally left blank) City of Yonkers, New York

Reconciliation of Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position June 30, 2019

Amounts Reported for Governmental Activities in the Statement of Net Position are Different Because

Fund Balance - Total Governmental Funds $ 147,597,262

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 698,488, 120

Governmental funds do not report the effect of losses on refunding bonds and assets or liabilities related to net pension assets (liabilities) whereas these amounts are deferred and amortized in the statement of activities. Deferred amounts on refunding bonds 13,978,209 Deferred outflows of resources on net pension assets (liabilities) 230,002,296 Deferred inflows of resources on net pension assets (liabilities) (78,257,294)

165,723,211

Other long-term assets that are not available to pay for current period expenditures are either unearned or not reported in the funds. Real property taxes 9,443,380 Net pension asset 27,507,493 State aid and tuition 1,861,599 Departmental income 11,844,775

50,657,247 Long-term liabilities that are not due and payable in the current period and, therefore, are not reported in the funds. Bonds payable - Judgments and claims (69,216,550) Bonds payable - Deficit financing (30,432,801) Bonds payable - Capital construction (407, 207, 576) Notes payable (11,096,000) Bond anticipation note payable (16, 150,000) State loan payable (2,200,000) Energy performance contract payable (4,211,500) Compensated absences (49,566,901) Net pension liability (120,730,134) Retirement incentives and other pension obligations (88,988,084) Claims payable (75,051,697) Other post employment benefit obligations payable (3,021,837,541) Due to retirement systems (1,300,617) Accrued interest payable (6,169,050)

(3, 904, 158, 451)

Net Position of Governmental Activities $ (2,841,692,611)

The notes to financial statements are an integral part of this statement. 20 City of Yonkers, New York

Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended June 30, 2019

Education Special General Education Aid REVENUES Real property taxes $ 355,456,462 $ $ Other tax items 87,944,069 Non-property taxes 169,293,625 Departmental income 44,582,510 Charges for services 171,318 Use of money and property 1,616,434 288,303 Sale of property and compensation for loss 78,501 3,428 lnterfund revenues 384,799 State aid 122,687, 127 322,208,427 21,153,197 Federal aid 1,606,606 31,009,138 Food sales Miscellaneous 3,286,820 3,657,493 317,755

Total Revenues 784,945,548 328,320,374 52,480,090 EXPENDITURES Current General government support 103,440,675 Education 409,974,626 55, 146,502 Public safety 182, 187,640 Transportation 1,904,248 Culture and recreation 10,229,999 Home and community services 23,148,768 Employee benefits 163,060,469 155,066,979 1,344,218 Cost of food sales Debt service Principal 1,320,595 Interest 2,385,491 277,858 Capital Outlay

Total Expenditures 486,357,290 566,640,058 56,490,720

Excess (Deficiency) of Revenues Over Expenditures 298,588,258 {238,319,684} {4,010,630}

OTHER FINANCING SOURCES (USES) Insurance recoveries Sale of real property 14,107,169 Bond anticipation notes issued 16, 150,000 Issuance premium Transfers in 11,899,685 231, 160,925 1,493,323 Transfers out {317,881,207} {2,457,623}

Total Other Financing Sources (Uses) {275,724,353} 228,703,302 1,493,323

Net Change in Fund Balances 22,863,905 (9,616,382) (2,517,307)

FUND BALANCES (DEFICITS) Beginning of Year 46,600, 179 32,947,090

End of Year $ 69,464,084 $ 23,330,708 $ {2,517,307)

The notes to financial statements are an integral part of this statement. 21 City Education Total Community Capital Capital Debt Non-Major Governmental Develo~ment Projects Projects Service Governmental Funds

$ $ $ $ $ $ 355,456,462 4,603,476 92,547,545 169,293,625 239,537 43,663, 104 88,485, 151 952,545 1, 123,863 27,623 137,983 2,070,343

3,267,022 3,348,951 384,799 13,746,525 7,113,415 486,908,691 3,460, 159 17,547, 153 53,623,056 415,046 415,046 108,630 60,044 2,061,320 9,492,062

7, 102,971 60,044 13, 746,525 137,983 76,356,059 1,263, 149,594

103,440,675 85,327 465,206,455 4,347,763 186,535,403 5,979,273 7,883,521 9,422,868 19,652,867 6, 714, 191 36,462,831 66,325,790 2,909,210 322,380,876 8,044,201 8,044,201

61,724,042 63,044,637 54,320 21,626,688 24,344,357 39,905,729 28,354,352 68,260,081

6,768,511 39,905,729 28,354,352 83,350,730 67,251,473 1,335, 118,863

334,460 (39,845,685) (14,607,827) (83,212,747) 9,104,586 (71,969,269)

397,166 397, 166 14,107,169 16,150,000 244,862 244,862 82,010,804 14,890,890 341,455,627 {21, 116, 797} (341,455,627~

397,166 82,255,666 {6,225,907) 30,899, 197

334,460 (39,845,685) (14,210,661) (957,081) 2,878,679 (41,070,072)

5,243,208 51,698,510 28,779,721 2,945,861 20,452,765 188,667,334

$ 5,577,668 $ 11,852,825 $ 14,569,060 $ 1,988,780 $ 23,331,444 $ 147,597,262

22 (This page intentionally left blank) City of Yonkers, New York

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2019

Amounts Reported for Governmental Activities in the Statement of Activities are Different Because

Net Change in Fund Balances - Total Governmental Funds $ (41,070,072)

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. Capital outlay expenditures 68,853,635 Depreciation expense (34,933,754)

33,919,881 The net effect of various miscellaneous transactions involving capital assets (i.e. sales and donations) is to decrease net position. (268,800)

Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Real property taxes 209,044 Deferred revenues 313,772 Departmental income 6,960,442 Miscellaneous income (44,764)

7,438,494 Bond, note and loan proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas, these amounts are deferred and amortized in the statement of activities. Principal paid on bonds 60,355,001 Principal paid on notes 1,647,336 Principal paid on State loan 200,000 Principal paid on energy performance contract 842,300 Bond anticipation notes issued (16,150,000) Amortization of loss on refunding bonds and issuance premium 4,666,559

51,561,196 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 the governmental funds. Compensated absences (3,293,297) Pension obligations (7,652,473) Retirement incentives and other pension obligations 4,444,508 Claims payable 6,180,262 Other post employment benefits payable (62,578,331) Accrued interest payable 1,389,776 Due to retirement systems (2,140)

(61,511,695)

Change in Net Position of Governmental Activities $ (9,930,996)

The notes to financial statements are an integral part of this statement. 23 City of Yonkers, New York

Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General, Education and Education Special Aid Funds Year Ended June 30, 2019

General Fund Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Real property taxes $ 356,269,261 $ 356,269,261 $ 355,456,462 $ (812,799) Other tax items 77,807,776 77,807,776 87,944,069 10, 136,293 Non-property taxes 165,659,711 165,659,711 169,293,625 3,633,914 Departmental income 42,427,899 42,427,899 44,582,510 2,154,611 Charges for services Use of money and property 215,400 215,400 1,616,434 1,401,034 Sale of property and compensation for loss 300,000 300,000 78,501 (221,499) lnterfund revenues State aid 121,673,179 121,673, 179 122,687, 127 1,013,948 Federal aid Miscellaneous 1,629,584 1,629,584 3,286,820 1,657,236

Total Revenues 765,982,810 765,982,810 784,945,548 18,962,738

EXPENDITURES Current General government support 93,349,339 109,024,337 103,440,675 5,583,662 Education Public safety 182, 138,403 181,978,404 182, 187,640 (209,236) Transportation 1,852,000 2,102,000 1,904,248 197,752 Culture and recreation 10,761,595 10,701,595 10,229,999 471,596 Home and community services 24,539,862 24,534,863 23, 148,768 1,386,095 Employee benefits 164,685,605 165, 135,605 163,060,469 2,075,136 Debt service Principal Interest 1,200,000 1,200,000 2,385,491 (1, 185,491)

Total Expenditures 478,526,804 494,676,804 486,357,290 8,319,514

Excess (Deficiency) of Revenues Over Expenditures 287,456,006 271,306,006 298,588,258 27,282,252

OTHER FINANCING SOURCES (USES) Sale of real property 14,107,169 14,107,169 Bond anticipation notes issued 16,150,000 16, 150,000 Transfers in 11,899,685 11,899,685 11,899,685 Transfers out (318,065,715) (318,065, 715) (317,881,207) 184,508

Total Other Financing Sources (Uses) (306, 166,030) (290,016,030) (275,724,353) 14,291,677

Net Change in Fund Balances (18,710,024) (18,710,024) 22,863,905 41,573,929

FUND BALANCES (DEFICITS) Beginning of Year 18,710,024 18,710,024 46,600, 179 27,890,155

End of Year $ $ $ 69,464,084 $ 69,464,084

24 Education Fund Variance with Final Budget Original Final Positive Budget Budget Actual (Negative)

$ $ $ $

366,900 366,900 171,318 (195,582) 293,000 293,000 288,303 (4,697)

3,428 3,428 506,316 506,316 384,799 (121,517) 320, 829, 704 320, 829, 704 322,208,427 1,378,723 650,000 650,000 1,606,606 956,606 938,020 938,020 3,657,493 2,719,473

323,583,940 323,583,940 328,320,374 4,736,434

414,774,968 417,590,823 409,974,626 7,616,197

160,702,761 157,886,906 155,066,979 2,819,927

1,320,595 1,320,595 1,320,595 277,858 277,858 277,858

577,076, 182 577,076,182 566,640,058 10,436, 124

(253,492, 242) (253,492,242) (238,319,684) 15, 172,558

231,160,925 231,160,925 231, 160,925 (1,845,200) (2,809,500) (2,457,623) 351,877

229,315,725 228,351,425 228,703,302 351,877

(24, 176,517) (25,140,817) (9,616,382) 15,524,435

24,176,517 25, 140,817 32,947,090 7,806,273

$ $ $ 23,330,708 $ 23,330,708

(Continued)

25 City of Yonkers, New York

Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General, Education and Education Special Aid Funds Year Ended June 30, 2019

Education Special Aid Fund Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Real property taxes $ $ $ $ Other tax items Non-property taxes Departmental income Charges for services Use of money and property Sale of property and compensation for loss lnterfund revenues State aid 26,655,608 26,910,608 21,153,197 (5,757,411) Federal aid 34, 190,295 36,770,989 31,009,138 (5,761,851) Miscellaneous 420, 106 420, 106 317,755 (102,351)

Total Revenues 61,266,009 64,101,703 52,480,090 (11,621,613)

EXPENDITURES Current General government support Education 61,345,741 64, 179, 133 55,146,502 9,032,631 Public safety Transportation Culture and recreation Home and community services Employee benefits 1,415,468 1,417,770 1,344,218 73,552 Debt service Principal Interest

Total Expenditures 62,761,209 65,596,903 56,490,720 9,106,183

Excess (Deficiency) of Revenues Over Expenditures (1,495,200) (1,495,200) (4,010,630) (2,515,430)

OTHER FINANCING SOURCES (USES) Sale of real property Bond anticipation notes issued Transfers in 1,495,200 1,495,200 1,493,323 (1,877) Transfers out

Total Other Financing Sources (Uses) 1,495,200 1,495,200 1,493,323 (1,877)

Net Change in Fund Balances (2,517,307) (2,517,307)

FUND BALANCES (DEFICITS) Beginning of Year

End of Year $ $ $ (2,517,307) $ (2,517,307)

The notes to financial statements are an integral part of this statement.

26 City of Yonkers, New York

Statement of Assets and Liabilities Fiduciary Fund June 30, 2019

Agency Fund ASSETS Cash and equivalents $ 14,841,323 Accounts receivable 3,111,322

Total Assets $ 17,952,645

LIABILITIES Accounts payable $ 246,424 Employee payroll deductions 13,453,228 Deposits 3,935,761 Student activity funds 317,232

Total Liabilities $ 17,952,645

The notes to financial statements are an integral part of this statement. 27 (This page intentionally left blank) City of Yonkers, New York

Notes to Financial Statements June 30 2019

Note 1 - Summary of Significant Accounting Policies

The City of Yonkers, New York ("City") was incorporated in 1872 and operates in accordance with its Charter, as revised, and the various applicable laws of the State of New York. Since 1976, the City is also governed by the provisions of the Special Local Finance and Budget Act of New York State for the City of Yonkers. The City functions under a Mayor-Council form of government. The City Council serves as the legislative body responsible for overall operation and the Mayor serves as the chief executive officer. The City provides the following services to its residents; public safety, transportation, culture and recreation, home and community services and general and administrative services.

The Board of Education ("Board") of the Yonkers City School District ("School District") is responsible for providing education services to the residents of the City. The members of the Board are appointed by the Mayor. The School District is, pursuant to Section 2551 of Education Law of the State of New York, a legally separate entity. However, the School District has no taxing power, cannot issue debt in its own name and relies solely upon the City for appropriations. In addition, effective June 30, 2014, the City and Board entered into an inter-municipal agreement ("IMA"). The IMA continues in perpetuity from the date of execution. The IMA requires that the City assume all School District finance and budget functions in consultation with the Superintendent of Schools and the Board. Additionally, the IMA gives the City the authority to consult on all labor contracts. The IMA also gives the City, in consultation with the Superintendent of Schools and the Board, the authority to supervise non-academic operational functions of the School District, as described in the IMA. Pursuant to the IMA, in connection with the adoption of its 2014-2015 budget, the City immediately absorbed the operations and associated expenditures of various School District administrative functions. In addition, the IMA grants the authority to create, abolish, maintain and consolidate all positions in the non-academic operational functions described in the IMA. The Board retains the authority to create, abolish, maintain or consolidate positions which have a nexus to the academic activities of the School District, which do not fall within the scope of the finance and the budget functions and non-academic operational functions discussed in the IMA. Lastly, the IMA authorizes the City to implement a schedule of public hearings on the School District's budget, which must be held at least quarterly and must be held in consultation with the Superintendent of Schools and the Board. As such, the City has determined that it is not a separate legal entity for financial reporting purposes pursuant to the provisions of Governmental Accounting Standards Board ("GASB") Statement No. 14, "The Financial Reporting Entity'', as amended by GASB Statement No. 61, "The Financial Reporting Entity: Omnibus, an Amendment of GASB Statements No. 14 and No. 34". These provisions indicate that the School District is part of the primary government of the City.

The accounting policies of the City conform to generally accepted accounting principles for local governmental units and the Uniform System of Accounts as prescribed by the State of New York. 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 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

28 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 1 - Summary of Significant Accounting Policies (Continued)

component unit is included in the City's reporting entity because of its operational or financial relationship with the City.

The Yonkers Downtown Waterfront Development Corporation ("YDWDC") is a not-for-profit corporation, established pursuant to Section 501 (c)(3) of the Internal Revenue Code, to develop and/or rehabilitate properties in the City for the cultural and economic benefit of its citizens. The YDWDC has a 81 fiscal year end. The Board of Directors consists of fifteen directors; six are Municipal Directors and nine are Business/Public Directors. The Business/Public Directors are appointed by the Mayor for three year terms. The Municipal Directors are: the Mayor, the Commissioner of Planning and Development, a designee of the City Council, a designee of the Yonkers members of County ("County") Board of Legislators, a designee of the County Executive and a designee of the City's delegation to the New York State Legislature. Board members have complete responsibility for the management of the YDWDC and accountability for fiscal matters. Financial support in the form of grants, loans and property has been provided by the City through its Community Development funds. The loan portion is required to be repaid and consequently there is a potential financial burden to the City. Since the YDWDC does not provide services entirely or almost entirely to the City, the financial statements of the YDWDC have been reflected as a discretely presented component unit.

Complete financial statements can be obtained from its administrative office at the indicated below:

Yonkers Downtown Waterfront Development Corporation City Hall - Room 414 Yonkers, New York 10705

The following organizations are related to the City:

The Yonkers Industrial Development Agency ("VIDA") is a public benefit corporation created by State legislation to promote the economic welfare, recreation opportunities and prosperity of the inhabitants of the City. Members of the VIDA are appointed by the Mayor for a specified term. VIDA members have complete responsibility for management of the VIDA and accountability for fiscal matters. The City is not liable for VIDA bonds or notes.

The Yonkers Housing Authority ("YHA") is a public benefit corporation created by State legislation to promote the development of adequate housing for the citizens of the City. Members of the YHA are appointed by the Mayor for a specified term. YHA members have complete responsibility for management of the YHA and accountability for fiscal matters. The City is not liable for YHA bonds or notes.

The Yonkers Parking Authority ("YPA'') is a public benefit corporation created to service and operate the City's parking facilities. Members of the YPA are appointed by the Mayor for a specified term. While the City does provide some accounting services, YPA members have complete responsibility for management of the YPA and accountability for fiscal matters. The City is not liable for YPA bonds or notes.

The Yonkers Economic Development Corporation ("YEDC") is a not-for-profit local development corporation under the provisions of Section 115 of the Internal Revenue Code for the purpose of assisting the VIDA with promoting and supporting the development of commerce, bolstering

29 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 1 - Summary of Significant Accounting Policies (Continued)

employment and stimulating economic growth and prosperity in the City by providing certain taxable and tax exempt financial assistance on occasions where incentives are no longer provided by the VIDA or in instances where the YIDA's ability to assist economic development projects has been significantly limited. Members of the YEDC are appointed by the Mayor for a specified term. YEDC members have complete responsibility for management of the YEDC and accountability for fiscal matters. The City is not liable for YEDC bonds or notes.

B. Government-Wide Financial Statements

The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all non-fiduciary activities of the primary government as a whole and its component unit. For the most part, the effect of interfund activity has been removed from these statements, except for interfund services provided and used. The primary government is reported separately from the legally separate component unit.

The Statement of Net Position presents the financial position of the City and its component unit 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 and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements.

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, revenues and expenditures. 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. Fiduciary funds 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 pages 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 two broad fund categories, in accordance with generally accepted accounting principles as follows:

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Note 1 - Summary of Significant Accounting Policies (Continued)

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.

Special Revenue Funds - Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects. The major special revenue funds of the City are as follows:

Education Fund - The Education Fund is used to account for the operation of the School District in accordance with the Education Law of the State of New York. The primary revenue sources for this fund are real property taxes and dedicated sales taxes transferred from the General Fund and State aid.

Education Special Aid Fund - The Education Special Aid Fund is used to account for special projects or programs of the School District which are supported in whole or in part with Federal, State or local sources of funds.

Community Development Fund - The Community Development Fund is used to record the operations of the grant programs operated by the City's Community Development Agency ("Agency"). The primary revenue source for this fund is federal aid.

City Capital Projects Fund - The City Capital Projects Fund is used to account for and report financial resources that are restricted, committed or assigned to expenditures for capital outlays, including the acquisition or construction of major capital facilities and other capital assets for City purposes.

Education Capital Projects Fund - The Education Capital Projects Fund is used to account for and report financial resources that are restricted, committed or assigned to expenditures for capital outlays, including the acquisition or construction of major capital facilities and other capital assets for School District purposes.

Debt Service Fund - The Debt Service Fund is used 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.

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Note 1 - Summary of Significant Accounting Policies (Continued)

The City also reports the following non-major governmental funds:

Special Revenue Funds:

Sewer Fund - The Sewer Fund was established pursuant to the General Municipal Law of the State of New York and is used to account for sewer operations financed by sewer rents.

Water Fund - The Water Fund is used to record the water utility operations of the City which render services primarily on a user basis to the general public.

Public Library Fund - The Public Library Fund was established pursuant to the Education Law of the State of New York and is used to account for the operations of the City's library system.

School Lunch Fund - The School Lunch Fund is used to record the operations of the and lunch programs operated by the School District.

City Grants Fund - The City Grants Fund is used to record the financial activity of certain Federal, State and local funded grant programs.

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. Fiduciary Fund (Not Included in Government-Wide Financial Statements) - Fiduciary Funds are used to account for assets held by the City in an agency capacity on behalf of others. Among the activities included in the Agency Fund are the student activity funds. The Agency fund is also used to account for employee payroll tax withholdings and various other 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 of 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. The Agency Fund has no measurement focus but utilizes the accrual basis of accounting. Revenues are generally 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.

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Note 1 - Summary of Significant Accounting Policies (Continued)

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 year end. If expenditures are the prime factor for determining eligibility, revenues from Federal and State grants are recognized as revenues when the expenditure is made. A ninety day availability period is generally used for revenue recognition for most other governmental fund revenues. 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, net pension liability, certain pension costs, claims and other postemployment benefit obligations 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 Unit

The component unit is presented on the basis of accounting that most accurately reflects its activities. The YDWDC is accounted for using the economic resources measurement focus and the accrual basis of accounting.

E. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balances

Cash and Equivalents, Investments and Risk Disclosure

Cash and Equivalents - Cash and equivalents consist of funds deposited in demand deposit accounts, time deposit accounts and short-term investments with original maturities of less than three months from the date of acquisition.

The City's deposits and 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 or trust companies located within the State. The City is authorized to use demand deposit accounts, time deposit accounts and certificates of deposit.

Collateral is required for demand deposit accounts, time deposit accounts and certificates of deposit at 100% 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.

The City utilizes a pooled investment concept for all governmental funds to facilitate its investment program. Investment income from this pooling is allocated to the respective funds based upon the sources of funds invested.

Investments - Permissible investments include obligations of the U.S. Treasury, U.S. Agencies, repurchase agreements and obligations of New York State or its political subdivisions.

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Note 1 - Summary of Significant Accounting Policies (Continued)

The City follows the provisions of GASB Statement No. 72, "Fair Value Measurements and Application", which defines fair value and establishes a fair value hierarchy organized into three levels based upon the input assumptions used in pricing assets. Level 1 inputs have the highest reliability and are related to assets with unadjusted quoted prices in active markets. Level 2 inputs relate to assets with other than quoted prices in active markets which may include quoted prices for similar assets or liabilities or other inputs which can be corroborated by observable market data. Level 3 inputs are unobservable inputs and are used to the extent that observable inputs do not exist. The detail of these investments and their related risks are described in Note 3A.

Risk Disclosure

Interest Rate Risk - Interest rate risk is the risk that the government will incur losses in fair value caused by changing interest rates. The City does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from changing interest rates. Generally, the City does not invest in any long-term investment obligations.

Custodial Credit Risk - 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, "Deposit and Investment Risk Disclosures - an amendment of GASB Statement No. 3", 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 June 30, 2019.

Credit Risk - Credit risk is the risk that an issuer or other counterparty will not fulfill its specific obligation even without the entity's complete failure. The City does not have a formal credit risk policy other than restrictions to obligations allowable under the General Municipal Law of the State of New York.

Concentration of Credit Risk - Concentration of credit risk is the risk attributed to the magnitude of a government's investments in a single issuer. The City's investment policy limits the amount on deposit at each of its banking institutions.

Property Taxes Receivable - Real property taxes attach as an enforceable lien on real property and are levied on the date confirmed by the City Council. The taxes are payable in three installments. The first installment is due on the later of thirty days after confirmation by the City Council or July 6th. The second and third installments are due on October 6th and January 6th, respectively. The City is also responsible for the billing and collection of the City's share of the real property tax levy of the County. County taxes are generally billed in the first ten days of March and are payable in one installment on April 6th. The City guarantees the full payment of the County warrant and assumes responsibility for uncollected taxes.

The City functions in both a fiduciary and guarantor relationship with the County with respect to the collection and payment of real property taxes levied by the County. The County Charter provides for the City to collect the taxes and remit them as collected to the County, except that the City must

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Note 1 - Summary of Significant Accounting Policies (Continued)

remit sixty percent of the amount levied by the County on May 25th and the balance of forty percent on October 15th. Thus, the City's fiduciary responsibility is from the date of the levy until October 1 15 h, at which time the City must satisfy its obligation to the County regardless of the amounts collected.

The City's financial statements include an allowance for uncollectible taxes which was established based on collection experience.

Income Taxes Receivable - The City Council, with approval by the State of New York, has imposed an income tax surcharge on residents and a non-resident gross receipts tax. The State of New York acts as the intermediary collecting agent for the City and remits collections, less an administrative charge, to the City on a monthly basis.

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 are incurred. Allowances are recorded when appropriate.

Due From/To 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 June 30, 2019, balances of interfund amounts receivable or payable have been recorded in the fund financial statements.

Advances from/To Other Funds - Advances from/to other funds represent loans to other funds, which are not expected to be repaid within the subsequent annual operating cycle. The advances are offset by nonspendable fund balance in the fund financial statements, which indicates that the funds are not "available" for appropriation and are not expendable available financial resources.

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 certain 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 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 School Lunch Fund consist of food and supplies and are recorded at cost on a first-in, first-out basis or, in the case of surplus food, at a stated value which approximates market. These inventories consist primarily of items held for consumption. The cost is recorded as inventory at the time individual inventory items are purchased. The City uses the consumption method to relieve inventory. In the fund financial statements, reported amounts are equally offset by nonspendable fund balance, which indicates that these amounts do not constitute "available spendable resources" even though they are a component of current assets.

Capital Assets - Capital assets, which include property, plant and equipment and infrastructure assets (e.g., roads, , sidewalks and similar items) are reported in the governmental activities column in the government-wide financial statements. Capital assets are defined by the City as

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Note 1 - Summary of Significant Accounting Policies (Continued)

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 acquisition value at the date of donation.

In the case of the initial capitalization of general infrastructure assets (i.e., 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 (i.e., 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 and equipment of the primary government are depreciated using the straight line method over the following estimated useful lives.

Life Class in Years

Buildings and Improvements 15-100 Machinery and Equipment 5-20 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 sheets.

Unearned Revenues - Unearned revenues arise when assets are recognized before revenue recognition criteria has been satisfied. In the government-wide financial statements, unearned revenues consist of revenue received in advance and/or 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 $1, 125 and $104, 194 for State aid received in advance in the Community Development and City Capital Projects funds, respectively. The City has also reported $9,013,896 for Federal and State aid in excess of expenditures in non-major governmental funds - City Grants and Special Purpose funds. 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 36 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 1 - Summary of Significant Accounting Policies (Continued)

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.

Deferred outflows and inflows of resources have been reported on the government-wide Statement of Net Position for the following: Deferred Deferred Outflows Inflows of Resources of Resources

New York State and Local Employees' Retirement System $ 26,976,255 $ 13,523,020 New York State and Local Police and Fire Retirement System 59,298,369 28,044,220 New York State Teachers' Retirement System 143,727,672 36,690,054 Taxes collected in advance 476, 188 Deferred loss on refunding bonds 13,978,209

$ 243, 980, 505 $ 78,733,482

The amount reported for the deferred loss on refunding bonds results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is being deferred and amortized over the shorter of the life of the refunded or refunding debt.

The City reported deferred inflows of resources of $476,188 for taxes collected in advance of the levy date in the General Fund and in the government-wide Statement of Net Position.

The City also reported deferred outflows of resources and deferred inflows of resources in relation to its pension obligations. These amounts are detailed in the discussion of the City's pension plans in Note 3J.

Long-term Liabilities - In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the Statement of Net Position. Bond premiums and discounts 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 expended as incurred.

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 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 fund expenditures.

Compensated Absences - The various collective bargaining agreements provide for the payment of accumulated vacation, sick and terminal leave upon separation from service. The liability for such accumulated leave is reflected in the government-wide Statement of Net Position 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 Pension Liability (Asset) - The net pension liability (asset) represents the City's proportionate share of the net pension liability (asset) of the New York State and Local Employees' Retirement System, the New York State and Local Police and Fire Retirement System and the New York State 37 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 1 - Summary of Significant Accounting Policies (Continued)

Teachers' Retirement System. The financial reporting of these amounts are presented in accordance with the provisions of GASB Statement No. 68, "Accounting and Financial Reporting for Pensions" and GASB Statement No.71, "Pension Transition for Contributions Made Subsequent to the Measurement Date".

Net Position - Net position represents the difference between assets, deferred outflows of resources, liabilities and deferred inflows of resources. 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, granters, or laws or regulations of other governments. Net position on the Statement of Net Position includes, net investment in capital assets, restricted for capital projects, special purposes, debt service, community development projects and sewer purposes. The balance is classified as unrestricted.

Fund Balance - Generally, fund balance represents the difference between current assets and deferred outflows of resources and current liabilities and deferred inflows of resources. 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 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) or they are legally or contractually required to be maintained intact (the corpus of a permanent fund).

Restricted fund balance is reported when constraints placed on the use of the resources are imposed by granters, 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 is used to report funds that are restricted for debt service obligations and for other items contained in the General Municipal Law or Education Law of the State of New York.

Committed fund balance is 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 ordinances submitted to them by the Mayor prior to the end of the fiscal year, commit fund balance. The Board is the highest level of decision making authority for School District operations that can, by the adoption of resolutions prior to the end of the fiscal year, commit fund balance. These funds may only be used for the purpose specified unless the City or Board 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 and/or the Board of Education.

Assigned fund balance, in the General Fund, represents amounts constrained either by policies of the City Council for amounts assigned for balancing the subsequent year's budget or through budgetary appropriations to the Commissioner of Finance and the various departments for amounts assigned for purchases on order. Unlike commitments, assignments generally only exist temporarily, in that additional action does not normally have to be taken for the removal of an assignment. An assignment cannot result in a 38 City of Yonkers, New York

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Note 1 - Summary of Significant Accounting Policies (Continued)

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.

In order to calculate the amounts to report as restricted and unrestricted fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. 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. 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, certain Special Revenue and Capital Projects 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 date is December 6, 2019.

Note 2 - Stewardship, Compliance and Accountability

A. Budgetary Data

Certain elements of the City's budget process are prescribed by the Special Local Finance and Budget Act of 1976 ("Act"). This Act limits budgeted expenditures to amounts not less than those of the previous audited year and requires revenues to be estimated at not more than those of the previous audited year, unless justification documents have been filed with the Office of the State Comptroller as support.

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Notes to Financial Statements (Continued) June 30 2019

Note 2 - Stewardship, Compliance and Accountability (Continued)

The City generally follows the procedures enumerated below in establishing the budgetary data reflected in the financial statements:

a) The various operating departments generally submit their requests for the ensuing year's appropriations in January.

b) During January and February, these requests are reviewed by the Budget Department.

c) The Mayor reviews the departmental requests during February and March.

d) The Charter and the Act require the budget to be presented to the City Council by April 15th.

e) The budget is referred to the Council's Budget Committee for deliberations and hearings.

f) The City Council sets dates for the public hearings which are generally held in May.

g) After the public hearings, the City Council adopts the budget which, by Charter, may not be later than June 151 or thirty days after adoption of the New York State budget, whichever is later.

h) The Fiscal Agent (State Comptroller), as defined by the Act, reviews the budget to determine the justification documents required.

i) After adoption, the Fiscal Agent certifies that the budget is in compliance with the Act.

j) Formal budgetary integration is employed during the year as a management control device for General, certain Special Revenue and Debt Service funds.

k) Budgets for General, certain Special Revenue and Debt Service funds are legally adopted annually on a basis consistent with generally accepted accounting principles. Capital Projects and Community Development funds are budgeted on a project basis. The City Council does not adopt an annual budget for the Special Purpose Fund.

I) The City Charter has established legislative legal control of the City budget at the function level of expenditures. All transfers between appropriation accounts, at the function level, except those within the Executive Department, require approval by the City Council. Any modifications to appropriations resulting from increases in revenue estimates or supplemental reserve appropriations also require a majority vote by the City Council. The legally adopted budget for the Board of Education is controlled at the fund level of expenditures. Transfers between appropriation accounts require approval by the Superintendent. Any modification to appropria­ tions resulting from increases in revenue estimates or supplemental reserve appropriations require Board of Education and City Council approval.

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Note 2 - Stewardship, Compliance and Accountability (Continued)

m) Appropriations in General, certain Special Revenue 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. Major amendments in the General Fund for the current year are as follows:

Tax certiorari obligations funded by bond anticipation notes $ 16, 150,000

B. Property Tax Limitation

The City is permitted by the Constitution of the State of New York to levy taxes up to 2% of year average full valuation of taxable real estate located within the City, exclusive of the amount raised for the payment of interest on and redemption of long-term debt, judgments and claims and tax certiorari obligations. In accordance with this definition, the maximum amount of the tax levy for the 2018-2019 fiscal year after exclusions was $323, 124, 14 7, which exceeded the actual levy by $24,990,304.

The Act requires the City to report its property tax revenues on a gross basis. Accordingly, uncollected taxes are recorded as an expenditure in the General Fund rather than as a reduction to property tax revenues.

In addition to this constitutional tax limitation, Chapter 97 of the Laws of 2011, as amended ("Tax Levy Limitation Law"), modified previous law by imposing a limit on the amount of real property taxes a local government may levy. 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 for City purposes over the tax levy of the prior year for City purposes by no more than the "Allowable 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 Department of Labor with the result expressed as a decimal to four places. The City is required to calculate its tax levy limit for City purposes 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, as well as real property taxes levied on behalf of the Board of Education. The City Council may adopt a budget that exceeds the tax levy limit for the coming fiscal year, only if the

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Notes to Financial Statements (Continued) June 30 2019

Note 2 - Stewardship, Compliance and Accountability (Continued)

Council first enacts, by a vote of at least sixty percent of the total voting power of the Council, a local law to override such limit for such coming fiscal year.

C. Expenditures in Excess of Budget

The following categories of expenditure exceeded their budgetary provisions by the amounts indicated:

General Fund: Staff Administrative and Advisory - Engineering administration $ 48,838 Special Items - Taxes on City property 992, 135 Public Safety - Police department 837,894 Fire prevention and control - Prevention 44,382 Employee benefits - Disabled ' 207 A supplemental pension 27,552 Debt Service: Interest - Bond anticipation notes 729,712 Interest - Revenue anticipation notes 455,779 City Debt Service Fund: Principal - Notes 15,209

D. Fund Deficits

The Block Grant sub-fund in the Community Development Fund reflects a deficit of $552, 709 at June 30, 2019. This is the result of expenditures exceeding program income in the current year.

The deficit in the Education Special Aid Fund in the amount of $2,517,307 resulted from incurring expenditures prior to the formal execution of a grant contract with New York State. The deficit will be eliminated upon the subsequent receipt of State aid.

Note 3 - Detailed Notes on All Funds A. Investments

Investments of the primary government consist of the following:

Certificates U.S. of Treasury Fund Deposit Bills Total General $ $ 124,854,497 $ 124,854,497 City Capital Projects 48,510,588 48,510,588 Special Purpose 555,311 555,311 $ 555,311 $ 173,365,085 $ 173,920,396

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Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

The certificates of deposit are fixed rate investments that have maturities that are of a duration of between four and twelve months and are secured by FDIC coverage and collateral posted by the respective depository. The certificates of deposit are valued at cost and are not subject to the fair value hierarchy. The U.S. Treasury bills are valued using Level 1 inputs.

B. Property Taxes Receivable

Taxes receivable at June 30, 2019 consisted of the following:

Current year - City taxes $ 7,065,980 Current year - County taxes 4,356,094 Prior years - City and County taxes 5,332,933 Tax sale certificates 1 ,547,630 Property acquired for taxes 3,761,047

22,063,684 Less - Allowance for uncollectible taxes (8,346,291)

$ 13,717,393

Taxes receivable in the fund financial statements are also partially offset by deferred tax revenues of $9,443,380, which represents the taxes receivable which were not collected within the first sixty days of the subsequent year.

C. Loans Receivable

Loans receivable of $460,899 reported in the General Fund as of June 30, 2019 represents a loan to the YPA (related organization) as consideration for a permit of use. The repayment terms require thirty annual payments of $34, 170, including interest at 5% per annum.

Loans receivable of $11 ,657,465 reported in the Community Development Fund as of June 30, 2019 represent various loans issued to qualifying recipients under the Federal Home Investment Partnership Program and the Commercial Loan Program. The repayment terms and interest rates of each loan vary. It is the City's policy to recognize monthly payments as revenue in the year payment is received in the fund financial statements.

In the fund financial statements, portions of the above amounts have been reflected as deferred inflows of resources since the amounts apply to a future period and so will not be recognized as an inflow of resources until that time.

D. Land Held for Economic Development

The City, in a prior year, had recorded in the government-wide financial statements land held for economic development. This asset was acquired as a result of the dissolution of the New Main Street Development Corporation (a former component unit of the City). During the current year, the properties were condemned and redeveloped as a . This asset has been reclassified as land at June 30, 2019 (see Note 3F).

43 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

E. Due From/To and Advances To/From Other Funds

The composition of interiund balances at June 30, 2019 were as follows:

Due Due Advances Fund From To To/From General $ 161,735,608 $ 217,897,084 $ Education 71,667,460 42,528,460 2,517,307 Education Special Aid 684, 142 9,723,983 (2,517,307) Community Development 61,647 191,261 City Capital Projects 68,977,763 51,061,382 Education Capital Projects 43,266,583 1,451, 108 Debt Service 85,451,711 85,298,732 Non-Major Governmental 1,460,353 25, 153,257 $ 433,305,267 $ 433,305,267 $

The outstanding balances between funds results mainly from the time lag between the dates that 1) interiund goods and services are provided or reimbursable expenditures occur, 2) transactions are recorded in the accounting system and 3) payments between funds are made.

F. Capital Assets

Changes in the City's capital assets are as follows:

Balance Balance Class Jul~ 1, 2018 Additions Deletions Reclassification * June 30, 2019 Capital Assets, not being depreciated: Land $ 25,369,666 $ $ 268,800 $ 6,856,140 $ 31,957,006 Construction-in-progress 55,423,042 66,744,665 2,890,603 119,277,104 Total Capital Assets, not being depreciated $ 80,792,708 $ 66,744,665 $ 3,159,403 $ 6,856,140 $ 151,234,110 Capital assets, being depreciated: Buildings and Improvements $ 610,011,588 $ 2,528,826 $ 1, 164,881 $ $ 611,375,533 Machinery and Equipment 128,443,257 1,773,337 4,920,540 125,296,054 Infrastructure 247,439,833 697,410 1,472,385 246,664,858 Total Capital Assets, being depreciated 985,894,678 4,999,573 7,557,806 983,336,445 Less Accumulated Depreciation for: Buildings and Improvements 228,943,409 16,558,599 1, 164,881 244,337, 127 Machinery and Equipment 91,483,277 10,324,961 4,920,540 96,887,698 Infrastructure 88,279,801 8,050, 194 1,472,385 94,857,610 Total Accumulated Depreciation 408,706,487 34,933,754 7,557,806 436,082,435 Total Capital Assets, being depreciated, net 577,188,191 (29,934, 181) 547,254,010 Capital Assets, net $ 657,980,899 $ 36,810,484 $ 3, 159,403 $ 6,856,140 $ 698,488, 120

*See Note 3D

44 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

Depreciation expense was charged to City functions and programs as follows:

Governmental Activities: General Government Support $ 9,789,589 Education 10,885,160 Public Safety 5,074,403 Transportation 230,372 Culture and Recreation 4,840,791 Home and Community Services 4, 113,439

Total Depreciation Expense $ 34,933,754

Net Investment in Capital Assets

The City's net investment in capital assets at June 30, 2019 as reflected in the Statement of Net Position consists of the following:

Capital Assets, net $ 698,488, 120

Less: Bonds Payable - Capital Construction (373,082,007) Unamortized Premium on Capital Construction Bonds (34,125,569) Bond Anticipation Notes Payable - Capital Construction (79,513,082) Energy Performance Contract Payable (4,211,500) Notes Payable (11,096,000) (502,028, 158)

Plus: Deferred Amounts on Refunding Bonds 7, 163,696 Unexpended Bond Proceeds 104,725,992 111,889,688

$ 308,349,650

Capital Assets - Component Unit

Changes in the capital assets of the YDWDC (component unit) were as follows:

Balance Balance , December 31, Class 2018 Deletions 2018 Capital Assets, not being depreciated - Land $ 368,751 $ 143,436 ======$ 225,315

45 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

G. Accrued Liabilities

Accrued liabilities at June 30, 2019 were as follows:

Fund Education Education Community Capital Non-Major Total General Education seecial Aid Develoement Projects Governmental Governmental Payroll and Employee Benefits $ 5,810,740 $ 17,564,325 $ 876,029 $ $ $ 216,108 $ 24,467,202 Tuition 9,411,704 417,447 9,829, 151 Other 902,493 356,508 165 1,824 171,992 121,310 1,554,292

$ 6,713,233 $ 27,332,537 $ 1,293,641 $ 1,824 $ 171,992 $ 337,418 $ 35,850,645

H. Short-Term Non-Capital Borrowings

The schedule below details the changes in short-term non-capital borrowings. The borrowings consisted of notes issued in anticipation of the collection of State aid for the 2018-2019 fiscal year.

Balance Balance July 1, 2018 Issues Redemptions June 30, 2019 Revenue Anticipation Notes - General Fund $ $ 80,000,000 $ 80,000,000 $ ======

The $80 million revenue anticipation note was issued on September 18, 2018 and was redeemed on June 28, 2019 with interest at 2.42%. Interest expenditure/expense of $1,505,779 was recorded in the find financial statements in the General Fund and in the government-wide financial statements.

I. Short-Term Capital Borrowings

The schedule below details the changes in short-term capital borrowings.

Year of Balance Balance Original Maturity Interest July 1, New June 30, Pureose Issue Date Rate 2018 Issues Redemetions 2019

Bond Anticipation Notes: City Capital Projects Fund: Various capital projects 2018 5/15/2019 2.92 % $ $ 12,700,000 $ 12,700,000 $ Various capital projects 2018 5/15/2019 3.50 2,300,000 2,300,000 Various capital projects 2018 5/15/2019 3.00 23,115,394 23,115,394 Various capital projects 2019 12/17/2019 2.43 52,193,082 52,193,082 Education Capital Projects Fund: Various building improvements 2018 5/15/2019 3.00 2,500,000 2,500,000 Textbooks and equipment 2018 5/15/2019 3.00 200,000 200,000 Various building improvements 2019 12/17/2019 2.43 27,320,000 27,320,000

$ $ 120,328,476 $ 40,815,394 $ 79,513,082

46 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

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 improvements 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 $879,712 was recorded in the fund financial statements in the General Fund. Interest expense of $634,850 was recorded in the government-wide financial statements.

J. Long-Term Liabilities The following table summarizes changes in the City's long-term liabilities for the year ended June 30, 2019:

Balance New Maturities Balance Due July 1, Issues/ and/or June 30, Within 2018 Additions Payments 2019 One Year Governmental Activities: General Obligation Bonds Payable: General Fund $ 289,902,330 $ $ 29,338,759 $ 260,563,571 $ 29,501,092 Education Fund 175,314,158 24,368,504 150,945,654 16,354,654 Water Fund 29,369,666 3,418, 194 25,951,472 3,653,123 Sewer Fund 24,341,295 2,440,670 21,900,625 2,654,751 Public Library Fund 8,207,551 788,874 7,418,677 626,380

527, 135,000 60,355,001 466,779,999 52,790,000 Plus - Unamortized Premium on bonds 46,618,376 6,541,448 40,076,928

573, 753,376 66,896,449 506,856,927 52,790,000

Notes Payable 12,743,336 1,647,336 11,096,000 1,704,456

Bond Anticipation Notes Payable 16,150,000 16,150,000

State Loan Payable 2,400,000 200,000 2,200,000 200,000

Energy Performance Contract Payable 5,053,800 842,300 4,211,500 842,300

Other Non-current Liabilities: Compensated Absences 46,273,604 7,920,297 4,627,000 49,566,901 4,957,000 Net Pension Liability 65,607,991 55, 122, 143 120,730,134 Retirement Incentives and Other Pension Obligations 93,432,592 7,646,771 12,091,279 88,988,084 13,019,164 Claims Payable 81,231,959 26,395,292 32,575,554 75,051,697 14,318, 113 Other Post Employment Benefit Obligations 2,959,259,210 134,659,425 72,081,094 3,021,837,541

Total Other Non-current Liabilities 3,245,805,356 231,743,928 121,374,927 3,356, 17 4,357 32,294,277

Governmental Activities Long-Term Liabilities $ 3,839,755,868 $ 247,893,928 $ 190,961,012 $ 3,896,688, 784 $ 87,831,033

47 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

Each governmental fund's liability for compensated absences, net pension liability, retirement incentives and other pension obligations, claims payable and other postemployment benefit obligations are primarily liquidated by the General and Education Funds. The City's indebtedness for bonds, notes, bond anticipation notes, state loans and energy performance contract debt is satisfied by the Education Fund and City and Education Debt Service Funds, respectively, which are funded primarily by the General and Education Funds, respectively.

General Obligation Bonds Payable

General obligation bonds payable at June 30, 2019 are comprised of the following individual issues:

Amount Original Outstanding Year of Issue Final Interest at June 30, Purpose Issue Amount Maturit~ Rates 2019

Qualified Zone Academy Bonds - Educational Facilities Improvements 2009A $ 13,836,000 December, 2019 0.35 % $ 1,400,000 Public Improvements 2010A 37,185,000 November, 2020 4.0-5.0 4,655,000 Public Improvements 2011 A 85,575,000 October, 2021 4.264-5.0 20,060,000 Educational Facilities Improvements 2011 B 12,555,000 October, 2021 5.0 2,345,000 Qualified School Construction Bonds - Educational Facilities Improvements 2011 c 15,000,000 December, 2026 5.75 8,000,000 Refunding Bonds 2012 A 37,040,000 August, 2030 3.0 8,480,000 Public Improvements 2012 c 30,330,000 August, 2026 3.0-4.0 19,745,000 Educational Facilities Improvements 2012 D 26,590,000 August, 2025 3.0 16,660,000 Refunding Bonds 2014 A 47,355,000 September, 2031 3.0-5.0 37,290,000 Education Refunding Bonds 2014 B 14,430,000 September, 2027 2.5-5.0 11,745,000 Public Improvements 2014 c 35,175,000 October, 2023 2.0-2.5 17,630,000 Educational Facilities Improvements 2014 D 21,355,000 October, 2029 2.5-3.0 17,400,000 Education Deficit Bond 2015 A 37,260,000 March, 2021 5.0 7,975,000 Public Improvements 2015 B 13,720,000 August, 2024 4.0-5.0 8,870,000 Refunding Bonds 2015 D 76,215,000 August, 2035 3.0-5.0 50,630,000 Public Improvements 2015 E 43,585,000 September, 2031 3.25-5.0 39,398,900 Tax Certiorari 2015 E 6,600,000 September, 2031 3.25-5.0 5,966,100 Educational Facilities Improvements 2015 F 18,370,000 September, 2027 3. 141-4.741 15,585,000 Public Improvements 2016A 24,825,000 November, 2031 3.254-5.0 23,510,000 Educational Facilities Improvements 2016B 15,525,000 November, 2036 3.0-5.0 14,785,000 Refunding Bonds 2016C 9,945,000 November, 2020 4.0 7,314,999 Public Improvements 2017A 36,725,000 September, 2031 2.75-5.0 36,315,000 Educational Facilities Improvements 20178 20,405,000 September, 2037 30-5.0 20,370,000 Refunding Bonds 2017C 72,120,000 October, 2025 2.0-5.0 55,095,000 Refunding Bonds 2017D 17,255,000 October, 2030 3.0-5.0 15,555,000

$ 466,779,999

Interest expenditures of $14,733,899 and $6,834,245 were recorded in the fund financial statements in the City and Education Debt Service Funds, respectively. Interest expense of $15,469,877 was recorded in the government-wide financial statements.

48 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

Notes Payable

The City, in 2003-04, entered into a contractual agreement to install energy saving equipment and/or to upgrade existing facilities at the City's skating rink to enhance performance. The terms of the contract provide for repayment over twenty years, with monthly installments of $5,329 through January, 2024. Payments include interest at 2.35%. The contract further provides that the savings in energy costs resulting from this modernization will equal or exceed the lease payment terms. The balance due at June 30, 2019 was $277,619.

The City, in 2008-09, entered into a contractual agreement to install energy saving equipment and/or to upgrade existing facilities at the City's Pier to enhance performance. The terms of the contract provide for repayment over fifteen years, with monthly installments of $10,479 through March, 2024. Payments include interest at 2.97%. The balance due at June 30, 2019 was $547,319.

The City, in 2014-15, entered into a contractual agreement to install energy saving fixtures and/or upgrade existing facilities at various City buildings. The terms of the contract provide for repayment over fifteen years, with monthly installments of $9,688 through May, 2031. Payments include interest at 2.35%. The balance due at June 30, 2019 was $1,200,256.

The City, in 2015-16, entered into a contractual agreement to replace or refurbish windows at City hall. The terms of the contract provide for repayment over fifteen years, with monthly installments of $7,408 through May, 2031. Payments include interest at 2.35%. The balance due at June 30, 2019 was $917,604.

During 2009, the School District entered into a contractual agreement for the acquisition of energy efficient equipment to assist the School District in reducing its ongoing energy costs. The terms of the agreement provide for annual installments of $793,596 including interest at 2.32%, through October, 2024. The balance due at June 30, 2019 was $4,397, 101.

During 2011, the School District entered into a contractual agreement to finance energy saving upgrades. The terms of the agreement provide for semi-annual installments in varying amounts from $310,515 to $443,505 including interest at 3.77%, through February, 2024. The balance due at June 30, 2019 was $3, 756, 101.

Interest expenditures of $58,544 and $277,858 were recorded in the fund financial statements in the City Debt Service Fund and the Education Fund, respectively. Interest expense of $378,334 was recorded in the government-wide financial statement.

Bond Anticipation Notes Payable

A bond anticipation note in the amount of $16,150,000 was issued on May 14, 2019, with an interest rate of 3.05%. The City, pursuant to GASS guidance, did not record this note as a liability in the fund financial statements since it demonstrated an ability to consummate refinancing. The ability to consummate refinancing was evidenced by obtaining permanent financing prior to the issuance of the current year's financial statements (See Note 6).

49 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

Loan Payable

The Agency guaranteed a $14,000,000 New Market Tax Credit ("NMTC") transaction for the construction of the Yonkers Larkin Garage. The NMTC transaction required seven years (28 quarterly interest only payments of $54,320). The first six payments were made directly by Yonkers Larkin Garage, Inc. (a private not for profit entity not controlled by the City)("YLGI") during the construction of the garage. Since its opening in early 2013, the garage has failed to achieve profitability and is incapable of servicing this debt. The Agency has received a quarterly payment demand from YLGI and Solomon Hess (the administrative agent for the NMTC transaction). As a result, there were four quarterly payments made by the Agency in a prior fiscal year. Interest expense/expenditures of $54,320 were recorded in the fund financial statements in the Community Development Fund and in the government-wide financial statements.

State Loan Payable

The State of New York, pursuant to Chapter 88 of the Laws of 2000, accelerated $6 million of Education State aid during the 1999-2000 fiscal year. In each of the subsequent 30 years, the aid formula enumerated in the statutes will reduce the accelerated portion by $200,000 per year. This loan is interest free. Accordingly, at June 30, 2019, the City has recorded a liability of $2,200,000.

The provisions of the statute also require the School District's chief fiscal officer to monitor all budgets and prepare a quarterly report depicting revenue and expenditure trends. The reports require recommended remedial action by the Superintendent, if necessary, to resolve any unfavorable budget variances. The reports are to be submitted within sixty days after the end of the quarter to the Board of Education, the State Division of the Budget, the State Comptroller, the Commissioner of Education, the Chairman of the Assembly Ways and Means Committee and the Chairman of the Senate Finance Committee.

Energy Performance Contract Payable

The City, in 2013-14, entered into an $8,423,000 contractual agreement to install energy saving street lights. The terms of the agreement provide for ten annual payments of $842,300 at no interest through July 2024. The contract further provides that the savings in energy costs resulting from this modernization will equal or exceed the payment terms. The balance due at June 30, 2019 was $4,211,500.

Payments to Maturity

The annual requirements to amortize all bonded debt, notes, State loans and energy performance contract debt outstanding as of June 30, 2019, including interest payments of $112,807,678 are as follows:

50 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

Year Ending General Obligation Bonds Notes June 30, Principal Interest Principal Interest 2020 $ 52,790,000 $ 18,429,050 $ 1,704,456 $ 306, 185 2021 47,630,000 16,340,325 1,773,142 255,359 2022 42,175,000 14,296,416 1,844,642 202,253 2023 43,330,000 12,443,916 1,919,076 146,766 2024 45,075,000 10,584,269 1,784,848 89,054 2025-2029 146,285,000 30, 184,625 1,701,753 117,622 2030-2034 72,035,000 8,493,922 368,083 8,339 2035-2038 17,459,999 909,577 $ 466,779,999 $ 111,682, 100 $ 11,096,000 $ 1,125,578 Energy Year Performance Ending State Loan Contract Total June 30, Principal Principal Principal Interest 2020 $ 200,000 $ 842,300 $ 55,536,756 $ 18,735,235 2021 200,000 842,300 50,445,442 16,595,684 2022 200,000 842,300 45,061,942 14,498,669 2023 200,000 842,300 46,291,376 12,590,682 2024 200,000 842,300 47,902, 148 10,673,323 2025-2029 1,000,000 148,986,753 30,302,247 2030-2034 200,000 72,603,083 8,502,261 2035-2038 17,459,999 909,577 $ 2,200,000 $ 4,211,500 $ 484,287,499 $ 112,807,678

The above general obligation bonds, notes, State loans and energy performance contract debt 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.

Prior Year Defeasance of Debt

In prior years, the City defeased certain bonds by placing the proceeds of new bonds or certain defined revenues in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account's assets and the liability for the defeased bonds are not included in the City's financial statements. At June 30, 2019, $62, 130,000 of bonds are considered defeased.

Legal Debt Margin

The City is subject to legal limitations on the amount of debt that it may issue. The City's legal debt margin is 9% of the five year average full valuation of taxable real property. At June 30, 2019, the City had exhausted 26.59% of its debt contracting margin and had $1,067,400,021 of net debt contracting authority available.

51 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

Compensated Absences

City employees earn vacation leave based upon the terms of the respective collective bargaining agreements. Vacation leave is accumulated monthly and is payable upon termination. The maximum accumulation is dependent upon length of service and varies with each agreement. City employees, with at least 20 years of service to the City, are entitled to terminal leave upon retirement. Eligible employees receive one and one-half day's pay for each year of service to the City. Accumulated sick and personal leave lapses when employees leave the employ of the City and, upon separation of service, no monetary obligation exists. Additionally, certain School District employees with at least 20 years of service to the School District are entitled to receive payment for accumulated unused sick days upon retirement. The value of the compensated absences has been reflected in the government-wide financial statements.

Pension Plans

New York State and Local Retirement System and Teachers' Retirement System

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") which are collectively referred to as the New York State and Local Retirement System ("System"). These are cost-sharing, multiple-employer defined benefit pension plans. The System provides retirement benefits as well as and disability benefits. The net position of the System is held in the New York State Common Retirement Fund ("Fund"), which was established to hold all assets and record changes in fiduciary net position. The Comptroller of the State of New York serves as the trustee of the Fund and is the administrative head of the System. The Comptroller is an elected official determined in a direct statewide election and serves a four year term. Obligations of employers and employees to contribute and benefits to employees are governed by the New York State Retirement and Social Law ("NYSRSSL"). Once a public employer elects to participate in the System, the election is irrevocable. The New York State Constitution provides that pension membership is a contractual relationship and plan benefits cannot be diminished or impaired. Benefits can be changed for future members only by enactment of a State statute. The City also participates in the Public Employees' Group Life Insurance Plan, which provides death benefits in the form of life insurance. The System is included in the State's financial report as a pension trust fund. That report, including information with regard to benefits provided may be found at www.osc.state.ny.us/retire/about_us/financial_ statements_index.php or obtained by writing to the New York State and Local Retirement System, 110 , Albany, NY 12244.

The City also participates in the New York State Teachers' Retirement System ("TRS"). This is a cost-sharing, multiple-employer defined benefit pension plan. TRS provides retirement benefits as well as death and disability benefits. The TRS is governed by a ten member Board of Trustees, which sets policy and oversees operations consistent with its fiduciary obligations under applicable law. Obligations of employers and employees to contribute and benefits to employees are governed by the Education Law of the State of New York. Once a public employer elects to participate in the TRS, the election is irrevocable. The New York State Constitution provides that pension membership is a contractual relationship and plan benefits cannot be diminished or impaired. Benefits can be changed for future members only by enactment of a State statute. The TRS issues a stand-alone financial report which may be found at www.nystrs.org or obtained by

52 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

writing to the New York State Teachers' Retirement System, 10 Corporate Woods Drive, Albany, NY 12211-2395.

ERS, PFRS and TRS are noncontributory for employees who joined the systems before July 27, 1976. Employees who joined the systems after July 27, 1976 and before January 1, 2010 contribute 3% of their salary for the first ten years of membership. Employees who joined the systems after January 1, 2010 generally contribute between 3% and 6% of their salary for their entire length of service. Under the authority of the NYSRSSL, the Comptroller annually certifies the actuarially determined rates expressly used in computing the employers' contributions based on salaries paid during the System's fiscal year ending March 31. Pursuant to Article 11 of the Education Law of the State of New York, actuarially determined employer contributions are established annually for the TRS by its Board of Trustees. The employer contribution rates for the plans' year ending in 2019 are as follows:

Tier/Plan Rate

ERS 1 751 21.6 % 2 751 19.7 3A15 15.9 4A15 15.9 5A15 13.1 6A15 9.4

PFRS 1 384E2 29.5 % 2 384E 29.0 3 384E 23.7 5 384E 22.2 6 384E 15.0

TRS 1-6 10.62 %

At June 30, 2019, the City reported the following for its proportionate share of the net pension liability (asset) for ERS, PFRS and TRS:

ERS PFRS TRS

Measurement date March 31, 2019 March 31, 2019 June 30, 2018

Net pension liability (asset) $ 39,699,196 $ 81,030,938 $ (27,507,493) City's proportion of the net pension liability (asset) 0.5603033 % 4.8317166 % 1.521210 % Change in proportion since the prior measurement date 0.0133021 % 0.0873684 % 0.004462 %

The net pension liability (asset) was measured as of March 31, 2019 for ERS and PFRS and June 30, 2018 for TRS and the total pension liability used to calculate the net pension liability (asset) were determined by actuarial valuations as of those dates. The City's proportion of the net pension liability for ERS and PFRS was based on a computation of the actuarially determined indexed present value of future compensation by employer relative to the total of all participating

53 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

members. The City's proportion of the net pension liability for TRS was based on the City's contributions to the pension plan relative to the contributions of all participating members.

For the year ended June 30, 2019, the City recognized pension expense in the government-wide financial statements of $97,397,301 ($27,208,094 for ERS, $51,722,772 for PFRS and $18,466,435 for TRS). Pension expenditures of $87, 739,498 were recorded in the fund financial statements and were charged to the following funds:

ERS PFRS TRS Total

General Fund $ 12,099,578 $ 35,067,905 $ $ 47, 167,483 Education Fund 8,949,873 24,316,299 33,266,172 Education Special Aid Fund 408,323 2,656,084 3,064,407 Sewer Fund 565,355 565,355 School Lunch Fund 676,081 676,081

$ 22,699,210 $ 35,067,905 $ 26,972,383 $ 84,739,498

At June 30, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

ERS PFRS Deferred Deferred Deferred Deferred Outflows Inflows Outflows Inflows of Resources of Resources of Resources of Resources Differences between expected and actual experience $ 7,817,602 $ 2,664,933 $ 19,684,657 $ 8,651,390 Changes of assumptions 9,978,755 29,440,701 Net difference between projected and actual earnings on pension plan investments 10, 189,007 16,228,519 Changes in proportion and differences between City contributions and proportionate share of contributions 3,462,466 669,080 1,187,878 3,164,311 City contributions subsequent to the measurement date 5,717,432 8,985, 133

$ 26,976,255 $ 13,523,020 $ 59,298,369 $ 28,044,220

TRS Total Deferred Deferred Deferred Deferred Outflows Inflows Outflows Inflows of Resources of Resources of Resources of Resources Differences between expected and actual experience $ 20,556, 128 $ 3,723,517 $ 48,058,387 $ 15,039,840 Changes of assumptions 96,156,736 135,576, 192 Net difference between projected and actual earnings on pension plan investments 30,535,413 56,952,939 Changes in proportion and differences between City contributions and proportionate share of contributions 67, 116 2,431,124 4,717,460 6,264,515 City contributions subsequent to the measurement date 26,947,692 41,650,257

$ 143,727,672 $ 36,690,054 $ 230,002,296 $ 78,257,294

54 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

$5,717,432 and $8,985,133 reported as deferred outflows of resources related to ERS and PFRS, respectively, resulting from the City's accrued contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the plan's year ended March 31, 2020. The $26,647,692 reported as deferred outflows of resources related to TRS will be recognized as an increase of the net pension asset in the plan's year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to ERS, PFRS and TRS will be recognized in pension expense as follows:

March 31, June 30, Year Ended ERS PFRS TRS Total

2019 $ $ $ 27,077,215 $ 27,077,215 2020 9,236,234 14,843,065 18,225, 102 42,304,401 2021 (6,954,876) (3, 736,485) 1,479,708 (9,211,653) 2022 (268,334) (44,568) 18, 160,295 17,847,393 2023 5,722,779 9,172,220 12,250,031 27, 145,030 Thereafter 2,034,784 2,897,575 4,932,359

The total pension liability for the ERS, PFRS and TRS measurement dates were determined by using actuarial valuation dates as noted below, with update procedures used to roll forward the total pension liabilities to those measurement dates. Significant actuarial assumptions used in the valuations were as follows:

ERS PFRS TRS

Measurement Date March 31, 2019 March 31, 2019 June 30, 2018 Actuarial valuation date , 2018 April 1, 2018 June 30, 2017 Investment rate of return 7.0% * 7.0% * 7.25% * Salary scale 3.8% 5.0% 1.90%-4.72% Inflation rate 2.5% 2.5% 2.25% Cost of living adjustments 1.3% 1.3% 1.5%

*Compounded annually, net of pension plan investment expenses, including inflation.

For ERS and PFRS, annuitant mortality rates are based on the System's experience with adjustments for mortality improvements based on Society of Actuaries Scale MP-2014. For TRS, annuitant mortality rates are based on plan member experience, with adjustments for mortality improvements based on Society of Actuaries Scale MP-2014, applied on a generational basis. Active member mortality rates are based on plan member experience.

The actuarial assumptions used in the ERS and PFRS valuation were based on the results of an actuarial experience study for the period April 1, 2010 - March 31, 2015. The actuarial assumptions used in the TRS valuation were based on the results of an actuarial experience study for the period July 1, 2009 to June 30, 2014.

For ERS and PFRS, the long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected return, net of investment expenses and inflation) are developed for each

55 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

For TRS, the long-term expected rate of return on pension plan investments was determined in accordance with Actuarial Standard of Practice ("ASOP") No. 27, Selection of Economic Assumptions for Measuring Pension Obligations. ASOP No. 27 provides guidance on the selection of an appropriate assumed investment rate of return. Consideration was given to expected future real rates of return (expected returns, net of pension plan investment expense and inflation) for each major asset class as well as historical investment data and plan performance.

Best estimates of arithmetic real rates of return for each major asset class included in the target asset allocation is summarized in the following table:

ERS/PFRS TRS March 31, 2019 June 30, 2018 Long-Term Long-Term Expected Expected Target Real Rate Target Real Rate Asset Type Allocation of Return Allocation of Return

Domestic Equity 36 % 4.55 % 33 % 5.80 % International Equity 14 6.35 16 7.30 Private Equity 10 7.50 8 8.90 Real Estate 10 5.55 11 4.90 Domestic Fixed Income Securities 16 1.30 Global Fixed Income Securities 2 0.90 High Yield Fixed Income Securities 1 3.50 Short-Term 1 0.30 Global Equities 4 6.70 Private Debt 1 6.80 Real Estate Debt 7 2.80 Absolute Return Strategies 2 3.75 Opportunistic Portfolio 3 5.68 Real Assets 3 5.29 Bonds and Mortgages 17 1.31 Cash 1 (0.25) Inflation Indexed Bonds 4 1.25

100 % 100 %

The real rate of return is net of the long-term inflation assumption of 2.5% for ERS and PFRS and 2.3% for TRS.

The discount rate used to calculate the total pension liability was 7.0% for ERS and PFRS and 7.25% for TRS. The projection of cash flows used to determine the discount rate assumes that contributions from plan members will be made at the current contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. 56 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

Based upon those assumptions, the System's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

The following presents the City's proportionate share of the net pension liability (asset) calculated using the discount rate of 7.0% for ERS and PFRS and 7.25% for TRS, as well as what the City's proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1 percentage point lower (6.0% for ERS and PFRS and 6.25% for TRS) or 1 percentage point higher (8.0% for ERS and PFRS and 8.25% for TRS) than the current rate:

1% Current 1% Decrease Assumption Increase {6.0%) {7.0%) {8.0%} City's proportionate share of the ERS net pension liability (asset) $ 173,571,220 $ 39,699,196 $ {72,762,799}

City's proportionate share of the PFRS net pension liability (asset) $ 292,833,698 $ 81,030,938 $ {95,848,952)

1% Current 1% Decrease Assumption Increase {6.25%} {7.25%} {8.25%} City's proportionate share of the TRS net pension liability (asset) $ 188,980,970 $ {27,507,493) $ {208,864,664)

The components of the collective net pension liability as of the March 31, 2019 ERS and PFRS measurement date and the June 30, 2018 TRS measurement date were as follows:

ERS PFRS Total

Total pension liability $ 189,803,429,000 $ 34, 128, 100,000 $ 223,931,529,000 Fiduciary net position 182,718, 124,000 32,451,037,000 215, 169, 161,000

Employers' net pension liability $ 7,085,305,000 $ 1,677,063,000 $ 8,762,368,000

Fiduciary net position as a percentage of total pension liability 96.27% 95.09% 96.09%

TRS

Total pension liability $ 118, 107,253,288 TRS fiduciary net position 119,915,517,622

Employers' net pension liability $ (1,808,264,334)

TRS fiduciary net position as a percentage of total pension liability 101.53%

57 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

Employer contributions to ERS and PFRS are paid annually and cover the period through the end 51 of System's fiscal year, which is March 31 . Accrued retirement contributions as of June 30, 2019 represent the projected employer contribution for the period April 1, 2019 through June 30, 2019 based on paid ERS and PFRS wages multiplied by the employers' contribution rate, by tier. Employee contributions are remitted monthly.

Employer and employee contributions for the year ended June 30, 2019 are paid to TRS in the following fiscal year through a state aid intercept or, if state aid is insufficient, through a payment by the School District to TRS. Accrued retirement contributions as of June 30, 2019 represent employee and employer contributions for the fiscal year ended June 30, 2019 based on paid TRS wages multiplied by the employers' contribution rate plus employee contributions for the fiscal year as reported to TRS.

Accrued retirement contributions as of June 30, 2019 were $5, 717,432 to ERS, $8,985, 133 to PFRS and $31,142,725 to TRS, including employee contributions of $1,826,345 and incentive payments of $2,368,688.

Voluntary Defined Contribution Plan

The City can offer a defined contribution plan to all non-union employees hired on or after July 1, 2013 and earning at the annual full-time salary rate of $75,000 or more. The employee contribution is between 3% and 6% depending on salary and the City will contribute 8%. Employer contributions vest after 365 days of service. No current employees participated in this program.

Retirement Incentives and Other Pension Obligations

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 2010. 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 and the School District have elected to amortize the maximum allowable ERS and PFRS contribution in each of the fiscal years since this option was first offered which is outlined in the table below.

Chapter 57 of the Laws of 2013, Part BB, authorized local governments, at their option, to amortize a portion of their respective TRS contributions beginning in 2014. Stabilization rates will continue through 2020. The deferred contribution for years one through five will be amortized over a five­ year period, with payments beginning in year six. Interest on deferred amounts will be based on the monthly average yield on 10-year U.S. Treasury securities for the twelve month period that precedes August 1 of the applicable deferred year, plus 1%. The City had elected to amortize the maximum allowable TRS contribution for 2014 and 2015 as noted in the table below.

58 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

Original Current Amount Year Balance Due Within Amortized Payments Due One Year

2009-2010 ERS $ 829,817 $ 106,812 $ 199,820 $ 97,474 2010-2011 ERS 754,907 97,170 181,783 88,675 2010-2011 PFRS 2,947,725 381,744 709,818 346,253 2011-2012 ERS 4,343,262 526,414 1,474,576 473,545 2011-2012 PFRS 6,050,195 736,679 2,054,092 659,651 2012-2013 ERS 8,517,369 996,713 3,711,509 887,150 2012-2013 PFRS 9,860,670 1, 160,250 4,296,860 1,027,066 2013-2014 ERS 10,737,043 1,128,179 6,831,868 871,302 2013-2014 PFRS 15,605,577 1,647,318 9,929,666 1,266,380 2013-2014 TRS 4,631,076 632,719 1,237, 155 609,706 2014-2015 ERS 10,938,294 1,131,935 7,780,890 859,607 2014-2015 PFRS 11,328,976 1, 172,367 8,058,800 890,309 2014-2015 TRS 7,535,726 1,735,968 3,373,808 1,656, 182 2015-2016 ERS 6,289,945 642,793 4,939,866 480, 141 2015-2016 PFRS 8,838,590 908, 142 6,941,467 674,692 2016-2017 ERS 2,603,518 255,811 2,223,913 197,323 2016-2017 PFRS 8,649,390 849,855 7,388,269 655,544 2017-2018 ERS 2,074,915 211,825 1,931,268 148,401 2017-2018 PFRS 8,676,565 891,495 8,075,885 620,562 2018-2019 ERS 624,386 624,386 41,578 2018-2019 PFRS 7,022,385 7,022,385 467,623

$ 138,860,331 $ 15,214,189 $ 88,988,084 $ 13,019,164

The current year payments were charged to retirement expenditures in the funds identified below:

Fund TRS ERS PFRS Total

General Fund $ $ 2,676,609 $ 7,747,850 $ 10,424,459 Education Fund 2,368,687 2,421,043 4,789,730

$ 2,368,687 $ 5,097,652 $ 7,747,850 $ 15,214,189

Claims Payable

The government-wide financial statements reflects general and workers' compensation 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 (IBNR's). 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 59 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

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.

An analysis of the activity of unpaid claim liabilities is as follows:

Year Ended Year Ended June 30, 2019 June 30, 2018 General Workers' General Workers' Lia bi lit}". Com~ensation Liabilit}". Com~ensation Balance - Beginning of Year $ 11,247,000 $ 49,944,000 $ 23,818,000 $ 45,082,000 Provision for Claims and Claims Adjustment Expenses 4,608,000 13,996,472 (11,571,000) 16,861,470

Claims and Claims Adjustment Expenses Paid (1,000,000) {13,139,472) {1,000,000) (11,999,470} Balance - End of Year $ 14,855,000 $ 50,801,000 $ 11,247,000 $ 49,944,000 Due Within One Year $ 1,000,000 $ 13, 139,472 $ 1,000,000 $ 11,999,470

Claims payable also includes a liability of $9, 109,880 for court ordered tax certiorari refunds which were not due and payable at year end and $285,817 for settlements reached between the City and several bargaining units. These amounts have been recorded as an expense and liability in the government-wide financial statements.

Other Post Employment Benefit Obligations

In addition to providing pension benefits, the City provides certain benefits for retired employees through a single employer defined benefit OPEB 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 as noted below. Substantially all of the City's employees may become eligible for those benefits if they reach normal retirement age while working for the City. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75, "Accounting and Financial Reporting for Postemployment Benefits Other than Pensions", so the net OPEB liability is equal to the total OPEB liability. Separate financial statements are not issued for the plan.

At June 30, 2019, the following employees were covered by the benefit terms:

Inactive employees currently receiving benefit payments 4,243 Inactive employees entitled to but not yet receiving benefit payments Active employees 5,343

9,586

60 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

The City's total OPEB liability of $3,021,837,541 was measured as of June 30, 2019, and was determined by an actuarial valuation as of July 1, 2017.

The total OPEB liability in the July 1, 2017 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:

Salary increases 3.0%, average, including inflation Discount rate 3.5% Healthcare cost trend rates 9.0% for 2019, decreasing 0.5% per year to an ultimate rate of 5.0% for 2027 and later years Retirees' share of benefit-related costs Varies from 8.0% to 15.0%, depending on applicable retirement year and bargaining unit

The discount rate was based on an average of three 20-year bond indices (e.g., Bond Buyer - 20 Bond GO, S&P Municipal Bond 20 Year High Grade Rate Index, Fidelity GA AA 20 Years) as of June 30, 2019.

Mortality rates were based on the RP-2014 Healthy Male and Female Tables for both pre and post retirement, projected with mortality improvements using Projection Scale AA for 3.50 years, plus ten years additional mortality improvement.

The actuarial assumptions used in the July 1, 2017 valuation were based on the most recent decrement tables for turnover, disability and retirement for ERS, PFRS and TRS. ERS, PFRS and TRS tables were based on a version released in 2015.

The City's change in the total OPEB liability for the year ended June 30, 2019 is as follows:

Total OPEB Liability - Beginning of Year $ 2,959,259,210 Service cost 32,346,772 Interest 102,312,653 Changes of benefit terms Differences between expected and actual experience Changes in assumptions or other inputs Benefit payments (72,081,094)

Total OPEB Liability - End of Year $ 3,021,837,541

The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower (2.5%) or 1 percentage point higher (4.5%) than the current discount rate:

1% Current 1% Decrease Assumption Increase (2.5%) (3.5%) (4.5%)

Total OPEB Liability $ 3,787,262,617 $ 3,021,837,541 $ 2,475,261,744

61 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower (8% decreasing to 4%) or 1 percentage point higher (10% decreasing to 6%) than the current healthcare cost trend rates:

Healthcare 1% Cost Trend 1% Decrease Rates Increase (8% decreasing (9% decreasing (10% decreasing to 4%) to 5%) to 6%)

Total OPEB Liability $ 2,383,031,509 $ 3,021,837,541 $ 3,973,247,782

For the year ended June 30, 2019, the City recognized OPEB expense of $134,659,425 in the district-wide financial statements. At June 30, 2019, no amounts were reported in deferred outflows/inflows of resources.

K. Revenues and Expenditures

lnterfund Transfers

lnterfund 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.

Transfers In Education Special Debt Non-Major Transfers Out General Education Aid Service Governmental Total General $ $ 231,160,925 $ $ 71,829,392 $ 14,890,890 $ 317,881,207 Education 1,493,323 964,300 2,457,623 Non-Major Governmental 11,899,685 9,217,112 21,116,797 $ 11,899,685 $ 231, 160,925 $ 1,493,323 $ 82,010,804 $ 14,890,890 $ 341,455,627

Transfers are used to 1) move funds from the General Fund to the Education Fund to provide local funding for the City's public school operations, 2) move funds from the operating funds to the Debt Service Fund as debt service principal and interest payments become due, 3) move budgeted surplus funds from the Water Fund to the General Fund, and 4) move amounts earmarked in the operating funds to fulfill commitments for Special Aid and School Lunch funds expenditures.

62 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

L. Significant Commitments - Encumbrances

As discussed in Note 2A, Budgetary Data, encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. At June 30, 2019, the amount of encumbrances expected to be honored upon performance by the vendor in the next year were as follows:

General Fund: General government support: Executive - Supplies and website services $ 3,556 Management Information Systems - rental of equipment 213,727 General services - janitorial services 23,188 Vehicle maintenance - repairs and maintenance 26,272 Other 55,893 Public safety: Police department - wearing apparel, training, guns and supplies 14,901 : Administration services 16,517 Apparel, supplies and equipment 71,932 Other 10,883 Culture and recreation - Parks department - supplies and equipment 37,136 Home and community services - Sanitation - Refuse disposal equipment and supplies 78,037 Total General Fund 552,042

Education Fund - Equipment, supplies and contractual services 289,307

Water Fund - Water department - equipment and supplies 697,861

Sewer Fund - Equipment and supplies 6,877

$ 1,546,087

M Net Position

The components of net position are detailed below:

Net Investment in Capital 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.

63 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

Restricted for Capital Projects - the component of net position that reports the amounts restricted for capital projects less unexpended bond proceeds and unrestricted interest earnings.

Restricted for Special Purposes - the component of net position that reports the difference between assets and liabilities of certain programs with constraints placed on their use by either external parties and/or statute.

Restricted for Debt SeNice - the component of net position that reports the difference between assets and liabilities with constraints placed on their use by Local Finance Law.

Restricted for Community Development Projects - the component of net position that reports the difference between assets and liabilities of the Community Development Funds with constraints placed on their use by the United States Department of Housing and Urban Development.

Restricted for Sewer - the component of net position that represents funds restricted for specific purposes under New York State law or by external parties and/or statutes.

Unrestricted - all other amounts that do not meet the definition of "restricted" or "net investment in capital assets".

64 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 3 - Detailed Notes on All Funds (Continued)

N. Fund Balance 2019 Education Community City Capital Education Debt Non-Major Genera! Education Special Aid Development Projects Capital Projects Service Governmental Fund Fund Fund Fund Fund Fund Fund Funds Total Nonspendable: Advances $ $ 2,517,307 $ $ $ $ $ $ $ 2,517,307 Prepaid expenditures 12,274 12,274 Inventories 228,564 228,564

Total Nonspendable 2,517,307 12,274 228,564 2,758, 145

Restricted: Debt service 183,131 183,131 Debt service - for subsequent years expenditures 1,805,649 1,805,649 Community development purposes 5,565,394 5,565,394 Capital projects 11,852,825 14,569,060 26,421,885 Sewer purposes 4,536, 175 4,536,175 Sewer purposes - for subsequent years expenditures 159,977 159,977 Sewer purposes - purchases on order 6,877 6,877 Special purposes 1,290,128 1,290, 128 0) ()1 Total Restricted 5,565,394 11,852,825 14,569,060 1,988,780 5,993, 157 39,969,216

Assigned: Purchases on order: General government support 322,636 322,636 Education 289,307 289,307 Public safety 114,233 114,233 Culture and recreation 37,136 37,136 Home and community services 78,037 697,861 775,898

552,042 289,307 697,861 1,539,210 For subsequent years expenditures: General Fund 27,890, 155 27,890,155 Education Fund 7,806,273 7,806,273 Public Library Fund 346,139 346,139 School Lunch Fund 548,955 548,955 Education purposes 12,717,821 12,717,821 Public library purposes 469,552 469,552 Water purposes 14,719,693 14,719,693 School Lunch Fund 327,523 327,523

Tota! Assigned 28,442, 197 20,813,401 17, 109,723 66,365,321

Unassigned 41,021,887 (2,517,307) 38,504,580

Total Fund Balances (Deficits) $ 69,464,084 $ 23,330,708 $ (2,517,307) $ 5,577,668 $ 11,852,825 $ 14,569,060 $ 1,988,780 $ 23,331,444 $ 147,597,262 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30, 2019

Note 3 - Detailed Notes on All Funds (Continued)

2018 Community City Capital Education Debt Non-Major General Education Development Projects Capital Projects Service Governmental Fund Fund Fund Fund Fund Fund Funds Total Nonspendable: Prepaid expenditures $ $ $ 23,406 $ $ $ $ $ 23,406 Inventories 293,391 293,391

Total Nonspendable 23,406 293,391 316,797

Restricted: Debt service 1,805,649 1,805,649 Debt service - for subsequent year's expenditures 964,300 1,140,212 2, 104,512 Community development purposes 5,219,802 5,219,802 Capital projects 51,698,510 28,779,721 80,478,231 Sewer purposes 4,279,876 4,279,876 Sewer purposes - for subsequent years expenditures 406,166 406, 166 Sewer purposes - purchases on order 11,807 11,807 Special purposes 1,040,572 1,040,572

Total Restricted 964,300 5,219,802 51,698,510 28,779,721 2,945,861 5,738,421 95,346,615 O> O> Assigned: Purchases on order: General government support 184,649 184,649 Education 82,874 82,874 Public safety 228,456 228,456 Culture and recreation 26,767 26,767 Home and community services 9,144 373,594 382,738

449,016 82,874 373,594 905,484 For subsequent years expenditures: General Fund 18,261,008 18,261,008 Education Fund 24,093,643 24,093,643 Public Library Fund 506,733 506,733 School Lunch Fund 1,087,018 1,087,018 Education purposes 7,806,273 7,806,273 Public library purposes 346, 139 346,139 Water purposes 12,418,522 12,418,522 School Lunch Fund (311,053) (311,053)

Total Assigned 18,710,024 31,982,790 14,420,953 65, 113,767

Unassigned 27,890, 155 - 27,890, 155

Total Fund Balances $ 46,600,179 $ 32,947,090 $ 5,243,208 $ 51,698,510 $ 28,779,721 $ 2,945,861 $ 20,452,765 $ 188,667 ,334 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

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.

Advances have been established to indicate the long-term nature of funds advanced to the Education Special Aid Fund. The amount is classified as nonspendable to indicate that these funds do not represent "available" spendable resources even though they are a component of current assets.

Prepaid expenditures has been established to account for certain 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 in the School Lunch Fund have been classified as nonspendable to indicate that a portion of fund balance is not "available" for expenditure because the asset is in the form of commodities and the School District anticipates utilizing them in the normal course of operations.

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.

The Special Local Finance and Budget Act for the City provides that any operating surplus of prior years, not in excess of the amount of the aggregate fund balance of the various operating funds of the City as of the end of the previous fiscal year, can be included as a financing source in the preparation of the next budget. Similarly, any deficits created in the current year must be provided for in the next budget. Accordingly, at June 30, 2019, the City has assigned the above amounts to be appropriated for the ensuing year's budget.

Unassigned fund balance in the General Fund represent amounts not classified as nonspendable, restricted, committed or assigned. Unassigned fund balance in the Education Special Aid Fund represents expenditures in excess of resources in certain grants.

Note 4 - Summary Disclosure of Significant Contingencies

A. Litigation

The City, in common with other municipalities, receives numerous notices of claims for money damages arising generally from false arrest and imprisonment, malicious prosecution, personal injury and breach of civil rights. The filing of such claims commences a statutory period for initiating judicial action. There are also several employment discrimination and tort claims that have been filed against the School District, which are in various stages and are either awaiting trial or judgment. The City is self-insured with respect to most tort and workers' compensation matters for both the City and School District. The City's actuarial consultant provides an analysis of loss experience. The government-wide financial statements reflects general and workers' compensation claims which are based upon estimates of the ultimate cost of claims that have been reported, but not settled, and of claims that have been incurred but not reported.

67 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 4 - Summary Disclosure of Significant Contingencies (Continued)

There are currently pending certiorari proceedings, the results of which could require the payment of future tax refunds by the City if existing assessment rolls are modified based on the outcome of the litigation proceedings. However, the amount of these possible refunds cannot be determined at the present time. Any payments resulting from adverse decisions will be funded in the year the payment is made.

B. Contingencies

In 1979, the City entered into a Consent Order with the New York State Department of Environmental Conservation ("NYSDEC") to remediate the Austin Avenue landfill site. All physical work required by NYSDEC in the approved Remedial Action Plan has been completed as of December 31, 2018. The NYSDEC has issued a certificate of completion for the site. As of December 31, 2018, all bills related to this work were paid and YIDA's dedicated account for the Austin Avenue remediation held a balance of $13,722 to pay any remaining final legal bills, insurance costs and NYSDEC fees. Actual costs could exceed this amount.

C.

Property and Casualty Claims/Public Officials Liability

The City purchases conventional property and casualty insurance to reduce its exposure to loss from damage or fire to City owned properties. The City also purchases conventional insurance coverage for public officials liability. The current policy reflects a limit of $250,000. Settled claims resulting from those risks have not exceeded commercial insurance coverage in any of the past three fiscal years.

Unemployment Benefits

The City is self-insured for claims arising from benefit cases. Incurred but not reported claims are not material.

Workers' Compensation and Liability Claims

The City is currently self-insured for general, auto, police and fire liability and workers' compensation claims. Conventional insurance is not purchased for catastrophic losses.

Health Benefits

The City purchases conventional health insurance coverage for all full-time City and Board of Education employees and retirees.

D. Compliance with Grant Requirements

The City and the School District participate in various Federal grant programs. These programs are subject to program compliance audits pursuant to the Uniform Guidance. The amount of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although City and School District management anticipate such amounts, if any, to be immaterial.

The School District is subject to audits of State aid by the New York State Education Department. The amount of aid previously paid which may be disallowed cannot be determined at this time, although the School District anticipates such amounts, if any, to be immaterial.

68 City of Yonkers, New York

Notes to Financial Statements (Continued) June 30 2019

Note 5 - Tax Abatements

The City attracts and/or maintains companies through VIDA which has the ability to induce developers with a sales tax and/or mortgage tax abatement as part of a (""). These incentives stimulate economic growth and are seen as a benefit to all the residents and business owners throughout the City. Some of the factors considered are the jobs created during the development of the project, the permanent jobs that will remain after the completion of the project, the cost of the improvements to the property and the amount of sales tax that is expected to be abated.

Each PILOT recipient must report on the number of jobs created and the cost of materials that would be subject to sales tax.

PILOT Abatement

During fiscal year ended June 30, 2019, there were 60 projects that received property tax abatements. In addition, the City had two (2) housing projects that received property tax abatements. The tax is specific to the City and School District. The breakdown of the abatements is as follows:

PILOT Revenue Taxes Abated City and School District Share $24,328,059 $26,829,538

Mortgage Tax Abatement

Mortgages in the City carry a 1.8% recording tax. VIDA has the ability to provide an exemption of the mortgage recording tax for qualified projects. During the fiscal year ended June 30, 2019, there were three projects that received mortgage tax abatements. The tax is specific to the local municipality where the property is located. The City, County and City of New York share amounts that aggregated $10,368,387. The portion of the abatement specific to the City cannot be allocated.

Sales Tax Abatement

The combined sales tax rate in the City is 8.875%. For qualified projects, VIDA can provide a sales tax exemption on the cost of goods and services related to construction, reconstruction, equipment and installation. During the fiscal year ended June 30, 2019, there were 21 projects that received sales tax abatements. Sales tax is shared by the City with the State. The breakdown of the abatement is as follows:

City Share $ 2,767,973 New York State Share 3,383,079

Total Sales Tax Abatement $ 6,151,052

69 City of Yonkers, New York

Notes to Financial Statements (Concluded) June 30 2019

Note 6 - Subsequent Events

The City, in September, 2019, issued $6,000,000 of bond anticipation notes with interest at 2.00% and maturing in September, 2020.

The City, in November 2019, issued $148,600,000 in serial bonds. The proceeds were used to 1) redeem $52, 193,082 of outstanding bond anticipation notes issued for various City capital projects, 2) redeem $27,320,000 of outstanding bond anticipation notes issued for Education capital projects, 3) redeem $16, 150,000 of outstanding bond anticipation notes issued for tax certiorari obligations, 4) provide $46,761,918 of new monies for various City and Education capital projects and 5) provide $6, 175,000 to fund tax certiorari obligations.

*****

70 (This page intentionally left blank) REQUIRED SUPPLEMENTARY INFORMATION

City of Yonkers, New York

Required Supplementary Information - Schedule of Changes in the City's Total OPES Liability and Related Ratios Last Ten Fiscal Years (1) (2)

2019 2018 Total OPES Liability: Service cost $ 32,346,772 $ 31,404,633 Interest 102,312,653 100, 175,696 Changes of benefit terms Differences between expected and actual experience Changes of assumptions or other inputs Benefit payments (72,081,094) (68,967,717)

Net Change in Total OPES Liability 62,578,331 62,612,612

Total OPES Liability - Beginning of Year 2,959,259,210 2,896,646,598 (3)

Total OPES Liability - End of Year $ 3,021,837,541 $ 2,959,259,210

City's covered-employee payroll $ 548,041,659 $ 520,644,093

Total OPES liability as a percentage of covered-employee payroll 551.39% 568.38%

Notes to Schedule: (1) Data not available prior to fiscal year 2018 implementation of Governmental Accounting Standards Board Statement No. 75, "Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions".

(2) No assets are accumulated in a trust that meets the criteria in paragraph 4 of this Statement to pay related benefits.

(3) Restated for the implementation of the provisions of GASS Statement No. 75.

See independent auditors' report. 71 City of Yonkers, New York

Required Supplementary Information - Schedule of the City's Proportionate Share of the Net Pension Liability (Asset) New York State Teachers' Retirement System Last Ten Fiscal Years (1)

2019 2018 (3) 2017(2) 2016 2015 City's proportion of the net pension liability (asset) 1.521210% 1.516748% 1.481040% 1.475492% 1.447884% City's proportionate share of the net pension liability (asset) $ (27,507,493) $ (11,528,794) $ 15,862,559 $ (153,256,641) $ (164,733,013)

City's covered payroll $ 248,808,490 $ 240,090,469 $ 228,539,404 $ 221,638,990 $ 207,758,212 City's proportionate share of the net pension liability (asset) as a percentage of its covered payroll (11.06)% (4.80)% 6.94% (69.15)% (79.29)% Plan fiduciary net position as a percentage of the total pension liability 101.53% 100.66% 99.01 % 110.46% 111.48%

Note - The amounts presented for each fiscal year were determined as of the June 30 measurement date of the prior fiscal year.

(1) Data not available prior to fiscal year 2015 implementation of Governmental Accounting Standards Board Statement No. 68, "Accounting and Financial Reporting for Pensions".

(2) The discount rate used to calculate the total pension liability was decreased from 8.0% to 7.5% effective with the June 30, 2016 measurement date.

(3) The discount rate used to calculate the total pension liability was decreased from 7.5% to 7.25% effective with the June 30, 2017 measurement date.

See independent auditors' report. 72 City of Yonkers, New York

Required Supplementary Information - Schedule of Contributions New York State Teachers' Retirement System Last Ten Fiscal Years {1)

2019 2018 2017 2016 2015

Contractually required contribution $ 26,947,392 $ 24,383,232 $ 28,138,603 $ 30,304,325 $ 38,853,314 Contributions in relation to the contractually required contribution (26,947,392) {24,383,232) (28, 138,603) {30,304,325) {38,853,314)

Contribution excess $ $ $ $ $

City's covered payroll $ 253,744,746 $ 248, 808,490 $ 240, 090,469 $ 228,539,404 $ 221, 638, 990

Contributions as a percentage of covered payroll 10.62% 9.80% 11.72% 13.26% 17.53%

(1) Data not available prior to fiscal year 2015 implementation of Governmental Accounting Standards Board Statement No. 68, "Accounting and Financial Reporting for Pensions".

See independent auditors' report. 73 City of Yonkers, New York

Required Supplementary Information - Schedule of the City's Proportionate Share of the Net Pension Liability New York State and Local Employees' Retirement System Last Ten Fiscal Years (1)

2019 2018 2017 2016 (2) 2015 City's proportion of the net pension liability 0.5603033% 0.5470012% 0.5570470% 0.5205044% 0.5409689% City's proportionate share of the net pension liability $ 39,699, 196 $ 17,654,165 $ 52,341,384 $ 84,189,662 $ 18,159,153

City's covered payroll $ 160,835,923 $ 160,350,044 $ 152,765,261 $ 150,330,917 $ 138,527,647 City's proportionate share of the net pension liability as a percentage of its covered payroll 24.68% 11.01 % 34.26% 56.00% 13.11% Plan fiduciary net position as a percentage of the total pension liability 96.27% 98.24% 94.70% 90.70% 97.90%

Note - The amounts presented for each fiscal year were determined as of the March 31 measurement date within the current fiscal year.

( 1) Data not available prior to fiscal year 2015 implementation of Governmental Accounting Standards Board Statement No. 68, "Accounting and Financial Reporting for Pensions".

(2) The discount rate used to calculate the total pension liability was decreased from 7.5% to 7.0% effective with the March 31, 2016 measurement date.

See independent auditors' report. 74 City of Yonkers, New York

Required Supplementary Information - Schedule of Contributions New York State and Local Employees' Retirement System Last Ten Fiscal Years ~1}

2019 2018 2017 2016 2015

Contractually required contribution $ 22,926,532 $ 22,620,436 $ 22,518,054 $ 23, 170,012 $ 26,767,640 Contributions in relation to the contractually required contribution (22,926,532) (22,620,436) (22,518,054) (23,170,012) (26,767,640)

Contribution excess $ $ $ $ $

City's covered payroll $ 162,122,575 $ 162,111,292 $ 153,511,407 $ 151, 136,444 $ 139,959,904

Contributions as a percentage of covered payroll 14.14% 13.95% 14.67% 15.33% 19.13%

(1) Data not available prior to fiscal year 2015 implementation of Governmental Accounting Standards Board Statement No. 68, "Accounting and Financial Reporting for Pensions".

See independent auditors' report. 75 City of Yonkers, New York

Required Supplementary Information - Schedule of the City's Proportionate Share of the Net Pension Liability New York State and Local Police and Fire Retirement System LastTen Fiscal Years (1)

2019 2018 2017 2016 (2) 2015 City's proportion of the net pension liability 4.8317166% 4.7443482% 4.8149236% 4.7837182% 4.7969082% City's proportionate share of the net pension liability $ 81,030,938 $ 47,953,826 $ 99,796,609 $ 141,635,712 $ 13,203,948

City's covered payroll $ 159,704,780 $ 158,077,391 $ 150,699,631 $ 145,097,103 $ 131,991,932 City's proportionate share of the net pension liability as a percentage of its covered payroll 50.74% 30.34% 66.22% 97.61% 10.00% Plan fiduciary net position as a percentage of the total pension liability 95.09% 96.93% 93.50% 90.20% 99.00%

Note - The amounts presented for each fiscal year were determined as of the March 31 measurement date within the current fiscal year.

( 1) Data not available prior to fiscal year 2015 implementation of Governmental Accounting Standards Board Statement No. 68, "Accounting and Financial Reporting for Pensions".

(2) The discount rate used to calculate the total pension liability was decreased from 7.5% to 7.0% effective with the March 31, 2016 measurement date.

See independent auditors' report. 76 City of Yonkers, New York

Required Supplementary Information - Schedule of Contributions New York State and Local Police and Fire Retirement System Last Ten Fiscal Years (1)

2019 2018 2017 2016 2015

Contractually required contribution $ 41,799,414 $ 41,344,329 $ 39, 125,443 $ 35,469, 184 $ 39,627,476 Contributions in relation to the contractually required contribution (41,799,414) (41,344,329) (39, 125,443) (35,469, 184) (39,627,476)

Contribution excess $ $ $ $ $

City's covered payroll $ 161,613,055 $ 158,629,961 $ 153,234,366 $ 150,992,612 $ 134,328,481

Contributions as a percentage of covered payroll 25.86% 26.06% 25.53% 23.49% 29.50%

(1) Data not available prior to fiscal year 2015 implementation of Governmental Accounting Standards Board Statement No. 68, "Accounting and Financial Reporting for Pensions".

See independent auditors' report. 77 (This page intentionally left blank) MAJOR GOVERNMENTAL FUNDS I

GENERAL FUND

The General Fund constitutes the primary operating fund of the City and is used to account for and report all financial resources not accounted for and reported in another fund.

SPECIAL REVENUE FUNDS

Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects.

• Education Fund - The Education Fund is used to account for the operation of the Yonkers City School District ("School District") in accordance with the Education Law of the State of New York.

• Education Special Aid Fund - The Education Special Aid Fund is used to account for special projects or programs of the School District which are supported in whole or in part with Federal, State or local funds.

• Community Development Fund - The Community Development Fund is used to record the operations of the Federal grant programs operated by the City's Community Development Agency.

CAPITAL PROJECTS FUNDS

• City Capital Projects Fund - The City Capital Projects Fund is used to account for and report financial resources that are restricted, committed or assigned to expenditures for capital outlays, including the acquisition or construction of major capital facilities and other capital assets for City purposes.

• Education Capital Projects Fund - The Education Capital Projects Fund is used to account for and report financial resources that are restricted, committed or assigned to expenditures for capital outlay, including the acquisition or construction of major capital facilities and other capital assets for School District purposes.

DEBT SERVICE FUNDS

• City Debt Service Fund - The Debt Service Fund is used 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 for the City.

• Education Debt Service Fund - The Education Debt Service Fund is used 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 for the School District.

City of Yonkers, New York

General Fund Comparative Balance Sheet June 30, 2019 2018 ASSETS Cash and equivalents $ 47,384,837 $ 38,612,430

Investments 124,854,497 56,004,329

Property taxes receivable City 11,502,574 12,484,323 County 5,252,433 3,668,468 Tax sale certificates 1,547,630 1,722,921 Property acquired for taxes 3,761,047 3,761,047

22,063,684 21,636,759

Allowance for uncollectible taxes {8,346,291) {8,930, 717~

13,717,393 12,706,042 Other receivables Income taxes 300,239 881,993 Accounts, net of allowance for uncollectible amounts of $301,747 in 2019 and $390,707 in 2018 6,367,262 6,021,886 State and Federal aid 29,674,844 24,893,794 Due from other funds 161,735,608 94, 155,529 Loans 460,899 471,494

198,538,852 126,424,696

Total Assets $ 384,495,579 $ 233,747,497

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE Liabilities Accounts payable $ 34,002,290 $ 30,351,000 Accrued liabilities 6,713,233 5,994,983 County taxes payable 31,750,964 29,769,318 Employee payroll deductions 1,466,969 1,432,992 Due to other funds 217,897,084 93,665,875 Due to retirement systems 12,243,465 11,856,404

Total Liabilities 304,074,005 173,070,572 Deferred inflows of resources Unavailable revenues - other 1,037,922 1,082,686 Deferred tax revenues 9,443,380 9,234,336 Taxes collected in advance 476,188 3,759,724 Total Deferred Inflows of Resources 10,957,490 14,076,746

Total Liabilities and Deferred Inflows of Resources 315,031,495 187,147,318 Fund balance Assigned 28,442,197 18,710,024 Unassigned 41,021,887 27,890,155

Total Fund Balance 69,464,084 46,600,179

Total Liabilities, Deferred Inflows of Resources and Fund Balance $ 384,495,579 $ 233,747,497

See independent auditors' report. 78 City of Yonkers, New York

General Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Years Ended June 30,

2019 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Real property taxes $ 356,269,261 $ 356,269,261 $ 355,456,462 $ (812,799) Other tax items 77,807,776 77,807,776 87,944,069 10, 136,293 Non-property taxes 165,659,711 165,659,711 169,293,625 3,633,914 Departmental income 42,427,899 42,427,899 44,582,510 2, 154,611 Use of money and property 215,400 215,400 1,616,434 1,401,034 Sale of property and compensation for loss 300,000 300,000 78,501 (221,499) State aid 121,673,179 121,673,179 122,687, 127 1,013,948 Federal aid Miscellaneous 1,629,584 1,629,584 3,286,820 1,657,236

Total Revenues 765,982,810 765,982,810 784,945,548 18,962,738

EXPENDITURES Current General government support 93,349,339 109,024,337 103,440,675 5,583,662 Public safety 182, 138,403 181,978,404 182,187,640 (209,236) Transportation 1,852,000 2,102,000 1,904,248 197,752 Culture and recreation 10,761,595 10,701,595 10,229,999 471,596 Home and community services 24,539,862 24,534,863 23, 148,768 1,386,095 Employee benefits 164,685,605 165, 135,605 163,060,469 2,075, 136 Debt service Principal Interest 1,200,000 1,200,000 2,385,491 (1,185,491)

Total Expenditures 478,526,804 494,676,804 486,357,290 8,319,514

Excess of Revenues Over Expenditures 287,456,006 271,306,006 298,588,258 27,282,252

OTHER FINANCING SOURCES (USES) Sale of real property 14, 107, 169 14,107,169 Bonds issued Bond anticipation note issued 16,150,000 16,150,000 Transfers in 11,899,685 11,899,685 11,899,685 Transfers out (318,065,715) (318,065,715) (317,881,207) 184,508

Total Other Financing Uses (306, 166,030) (290,016,030) (275, 724,353) 14,291,677

Net Change in Fund Balance (18,710,024) (18,710,024) 22,863,905 41,573,929

FUND BALANCE Beginning of Year 18,710,024 18,710,024 46,600, 179 27,890,155

End of Year $ $ $ 69,464,084 $ 69,464,084

See independent auditors' report. 79 2018 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative)

$ 331,524,949 $ 331,524,949 $ 344,259,383 $ 12,734,434 73,650,342 73,650,342 79,333,527 5,683,185 158, 155, 953 158, 155,953 161, 731,666 3,575,713 43,792,918 43,792,918 43,126,903 (666,015) 199, 100 199, 100 795,386 596,286

300,000 300,000 205,353 (94,647) 115,891,179 115,891,179 117,004,360 1,113,181 341,235 341,235 1,674,133 1,674,133 2,947,482 1,273,349

725, 188,574 725, 188,574 749,745,295 24,556,721

97,020,696 95,505,493 96,584,085 (1,078,592) 175,817,111 177,880,313 177,228,116 652, 197 1,801,000 1,726,000 1,719,174 6,826 10,642,580 10,324,581 9,925,375 399,206 24,744,542 24,532,542 23,603,368 929,174 154, 758,324 154,815,324 153,847,821 967,503

6,000,000 6,000,000 810,000 810,000 834,098 (24,098)

465,594,253 471,594,253 469,742,037 1,852,216

259,594,321 253,594,321 280,003,258 26,408,937

1,852,778 1,852,778 6,000,000 6,000,000

11,822,384 11,822,384 11,822,384 (313,771,498) (313,771,498) (313,694,042) 77,456

(301,949, 114) (295,949, 114) (294,018,880) 1,930,234

(42,354,793) (42,354,793) (14,015,622) 28,339, 171

42,354,793 42,354,793 60,615,801 18,261,008

$ $ $ 46,600,179 $ 46,600,179

80 City of Yonkers, New York

General Fund Schedule of Revenues and Other Financing Sources Compared to Budget Year Ended June 30, 2019 (With Comparative Actuals for 2018)

Variance with Final Budget Original Final Positive 2018 Budget Budget Actual (Negative) Actual

REAL PROPERTY TAXES $ 356,269,261 $ 356,269,261 $ 355,456,462 $ (812,799) $ 344,259,383 OTHER TAX ITEMS Interest and penalties on real property taxes 5,173,000 5,173,000 4,472,150 (700,850) 6,618,229 Payments in lieu of taxes 23,294, 112 23,294, 112 24,328,059 1,033,947 22,096,340 Real estate transfer taxes 14,091,000 14,091,000 23,699,949 9,608,949 13,887,771 School tax relief reimbursement 34,699,664 34,699,664 34,699,664 - 35,633,645 Supplemental real estate taxes 550,000 550,000 744,247 194,247 1,097,542

77,807,776 77,807,776 87,944,069 10, 136,293 79,333,527 NON-PROPERTY TAXES Income taxes 54,053,370 54,053,370 57,878,497 3,825,127 52,981,451 Sales and use taxes 80,453,784 80,453,784 80,922,819 469,035 78,408,852 ...... CXl Sales and use taxes - education 16,090,757 16,090,757 15,936,259 (154,498) 15,519,574 Off-track betting surcharge 65,350 65,350 88,530 23, 180 94,988 Raceway admissions taxes 20,450 20,450 22,771 2,321 22,363 Raceway impact fees 1,500,000 1,500,000 1,500,000 - 1,500,000 Utilities gross receipts taxes 7,700,000 7,700,000 8,012,072 312,072 8,049,457 Cable television franchise fees 4,696,000 4,696,000 3,921,414 (774,586) 4,071,349 Hotel room and occupancy tax 1,080,000 1,080,000 1,011,263 (68,737) 1,083,632

165,659,711 165,659,711 169,293,625 3,633,914 161,731,666 DEPARTMENTAL INCOME Executive 400,000 400,000 450,664 50,664 366,047 Development 5,053,000 5,053,000 5,676,160 623,160 5,928,797 Engineering 801,000 801,000 1, 135,264 334,264 1, 124, 120 Consumer protection 1,357,570 1,357,570 1,352,646 (4,924) 1,362,385 Finance 92,015 92,015 239,623 147,608 120,358 Parking Violations Bureau/Courts 19,700,000 19,700,000 20,840,975 1, 140,975 19,528,071 Civil service fees 40,000 40,000 53,440 13,440 543,544 Legislative 299,000 299,000 273,062 (25,938) 304,785 Parks, recreation and conservation 2,946,576 2,946,576 2,487,039 (459,537) 2,618,144 Police and fire 8,881,282 8,881,282 9,203,041 321,759 8,362,815 Public works 1,988,750 1,988,750 1,970,479 (18,271) 1,984,376 County prisoner processing 387,801 387,801 411,418 23,617 399,435 Maintenance of State and County roads 480,905 480,905 488,699 7,794 484,026

42,427,899 42,427,899 44,582,510 2, 154,611 43,126,903 USE OF MONEY AND PROPERTY Earnings on investments 111,400 111,400 1,506,634 1,395,234 689,333 Rental of real property 104,000 104,000 109,800 5,800 106,053

215,400 215,400 1,616,434 1,401,034 795,386 SALE OF PROPERTY AND COMPENSATION FOR LOSS Sale of real property 300,000 300,000 78,501 (221,499) 205,353

STATE AID Aid and incentives to municipalities 108,215,479 108,215,479 108,215,479 - 108,215,479 Specialized state aid - Restructuring board 5,000,000 5,000,000 5,000,000 Court reimbursements 440,000 440,000 350,000 (90,000) 440,000 Mortgage tax 7,832,000 7,832,000 8,892,635 1,060,635 8, 161,762 Community mental health 173,000 173,000 216,220 43,220 153,026 Local Government Efficiency Grant - - - - 21,300 Veteran's services 12,700 12,700 12,793 93 12,793

121,673,179 121,673,179 122,687, 127 1,013,948 117,004,360 FEDERAL AID Emergency Management Assistance - - - - 341,235

MISCELLANEOUS co Refunds of prior year's expenditures - - 1,573,242 1,573,242 603,856 !\) Other 1,629,584 1,629,584 1,713,578 83,994 2,343,626

1,629,584 1,629,584 3,286,820 1,657,236 2,947,482

TOTAL REVENUES 765,982,810 765,982,810 784,945,548 18,962,738 749,745,295

OTHER FINANCING SOURCES Sale of real property - - 14, 107, 169 14,107,169 1,852,778 Bonds issued - - - - 6,000,000 Bond anticipation notes issued - 16,150,000 16,150,000 Transfers in - Water Fund 11,899,685 11,899,685 11,899,685 - 11,822,384

TOTAL OTHER FINANCING SOURCES 11,899,685 28,049,685 42,156,854 14, 107, 169 19,675,162

TOT AL REVENUES AND OTHER FINANCING SOURCES $ 777,882,495 $ 794,032,495 $ 827, 102,402 $ 33,069,907 $ 769,420,457

See independent auditors' report. City of Yonkers, New York

General Fund Schedule of Expenditures and Other Financing Uses Compared to Budget Year Ended June 30, 2019 (With Comparative Actuals for 2018)

Variance with Final Budget Original Final Positive 2018 Budget Budget Actual (Negative) Actual GENERAL GOVERNMENT SUPPORT Legislative City Council $ 1,155,645 $ 1, 162,145 $ 1,128,525 $ 33,620 $ 1,117,290 President of City Council 683, 118 683,118 611,911 71,207 665,385 City Clerk 755,958 740,760 730,725 10,035 700,690 Elections 357,000 365,698 365,698 - 350,000

2,951,721 2,951,721 2,836,859 114,862 2,833,365 Executive Mayor 862,162 862,162 739,593 122,569 794,971 Constituent and veteran's services 1,040,649 1,030,649 989,909 40,740 966,787

(X) Personnel and labor relations 3,931,927 3,898,927 3,689,404 209,523 4,095,447 w Public and community affairs 1,177,318 1,177,317 1,029,838 147,479 1,035,735

7,012,056 6,969,055 6,448,744 520,311 6,892,940 Fiscal services Comptroller 6,050,233 5,955,233 5,748,591 206,642 5,505,279 Budget 637,393 552,393 514,604 37,789 534,262 Parking Violations Bureau 7,018,674 6,953,674 6,471,810 481,864 6,333,736 Assessment 1,248,561 1,198,561 1,106,395 92,166 1,124,752 Inspector General 700,879 700,879 507,864 193,015 508,417

15,655,740 15,360,740 14,349,264 1,011,476 14,006,446 Staff Administrative and Advisory Corporation Counsel 2,602,726 2,577,726 2,446,363 131,363 2,556,599 Engineering administration 1,724,045 1,724,045 1,772,883 (48,838) 1,868,902 Purchasing 1,108,594 1,098,594 1,080,205 18,389 1,037,572 Management information services 7,600,018 7,450,018 6,602,325 847,693 6,499,068 engineering and street lighting 1,142,678 1,142,678 1,084,704 57,974 1,029,124 Public works administration 1, 188,998 1, 188,998 1,106,121 82,877 1,090,401 Production control 835,155 835,155 693,910 141,245 708,583 Dog control 1,071,132 1,071,132 974,883 96,249 942,442

17,273,346 17,088,346 15,761,394 1,326,952 15,732,691 Shared services General services 8,109,281 8,626,279 8,068,356 557,923 8,280,916 Vehicle maintenance 8,468,933 8,548,934 7,270,475 1,278,459 7,417,472

16,578,214 17,175,213 15,338,831 1,836,382 15,698,388

Special items Taxes on City property 3,012,713 1,912,713 2,904,848 (992,135) 1,345,792 Tax remissions 1,100,000 1,100,000 882,450 217,550 980,208 Senior tax exemption 440,000 440,000 388,166 51,834 335,926 Reserve for uncollected taxes 12,892, 118 12,892,118 12,328,786 563,332 20,245,619 Bond and note issuance costs 100,000 100,000 100,000 - 32,800 Municipal dues 32,000 32,000 30,965 1,035 18,723 Tenants' act 167,000 167,000 155,310 11,690 163,500 Judgments and claims 1,000,000 1,000,000 1,000,000 - 1,000,000 Assessment review and repayments 500,000 16,650,000 16,650,000 - 500,000 Termination payments 9,932,793 10,498,793 10,105,438 393,355 11,091,207 co Fiscal agent banking fees 25,000 25,000 25,000 .j:::.. Yonkers Historical Society 10,000 10,000 10,000 - 10,000 Green Policy Task Force 20,000 20,000 - 20,000 Tax 65,000 65,000 63,008 1,992 60,000 YMCA/SNUG Grant 100,000 100,000 100,000 - 100,000 Metropolitan commuter transportation mobility tax 921,433 921,433 872,243 49,190 904,366 Litigation costs 2,065,000 2,465,000 2,179,732 285,268 2,827,515 Administrative charge - Income tax 366,000 366,000 323,906 42,094 340,663 Grant cash match 35,000 Annual audit and review 560,000 560,000 460,700 99,300 477,700 Buena Vista parking garage 134,205 134,205 120,356 13,849 121,953 Affordable housing subsidies 400,000 20,000 4,675 15,325 864,283

33,878,262 49,479,262 48,705,583 773,679 41,420,255

Total General Government Support 93,349,339 109,024,337 103,440,675 5,583,662 96,584,085

(Continued) City of Yonkers, New York

General Fund Schedule of Expenditures and Other Financing Uses Compared to Budget (Continued) Year Ended June 30, 2019 (With Comparative Actuals for 2018)

Variance with Final Budget Original Final Positive 2018 Budget Budget Actual (Negative) Actual PUBLIC SAFETY Police department $ 105,338,530 $ 105,878,530 $ 106, 716,424 $ (837,894) $ 102,690,972

Fire prevention and control Administration 3,155,860 3,155,860 3,090,924 64,936 3,042,706 Fire fighting 67,899,251 67,399,252 66,927,378 471,874 66,154,868 Communications 480,946 480,946 472,076 8,870 448,065 Prevention 1,810,058 1,810,058 1,854,440 (44,382) 1,680,631

73,346,115 72,846,116 72,344,818 501,298 71,326,270

CD Other protection 01 Bureau of Housing and Buildings 3,453,758 3,253,758 3, 126,398 127,360 3,210,874

Total Public Safety 182,138,403 181,978,404 182,187,640 (209,236) 177,228, 116

TRANSPORTATION and ice control 1,852,000 2,102,000 1,904,248 197,752 1,719,174

CULTURE AND RECREATION Parks administration 1,226,388 1,206,388 1,065,440 140,948 1,055,489 Parks maintenance 6,081,831 6,041,831 5,810,580 231,251 5,727,961 Recreation and playgrounds 2,714,464 2,714,464 2,654,259 60,205 2,459,588 Museum 250,000 250,000 250,000 - 250,000 Community centers 348,912 348,912 321,879 27,033 315,878 Youth service agencies 140,000 140,000 127,841 12, 159 116,459

Total Culture and Recreation 10,761,595 10,701,595 10,229,999 471,596 9,925,375 HOME AND COMMUNITY SERVICES General environment Development administration 506,491 506,491 496,427 10,064 496,895 Planning 538,001 488,001 442,669 45,332 456,745 Human rights 115,000 115,000 61,917 53,083 67,512 Office for the aging 420,984 420,984 413,115 7,869 380,603 Economic development 323,966 323,966 287,449 36,517 295,857 Downtown and waterfront development 209,776 144,776 118, 113 26,663 183,831

2,114,218 1,999,218 1,819,690 179,528 1,881,443 Sanitation Refuse collection 10,002,564 9,682,564 9,424,531 258,033 10,030,394 Refuse disposal/City cleaning 10,728,048 11,158,048 10,293,227 864,821 10,120,152

20,730,612 20,840,612 19,717,758 1,122,854 20,150,546 Community Environment Shade Tree Bureau 1,695,032 1,695,033 1,611,320 83,713 1,571,379

Total Home and Community Services 24,539,862 24,534,863 23,148,768 1,386,095 23,603,368

EMPLOYEE BENEFITS State retirement 15,127,665 14,927,665 14,776,187 151,478 14,274, 111 Police and fire retirement 42,790,854 43,030,854 42,815,755 215,099 39,671,729 CX> O'> Disabled firefighters' 207A supplemental pension 2,783,225 3,283,225 3,310,777 (27,552) 2,734,351 Policemen's and firemen's local pension funds 45,000 45,000 37,700 7,300 38,425 Social security and Medicare 17,283,027 17,783,027 17,433,794 349,233 16,775,859 Life, health and dental insurance 68,435,175 66,935,175 66,250,021 685,154 63,380,838 210,234 210,234 209,603 631 134,904 Workers' compensation 12,836,313 13,816,313 13, 139,472 676,841 11,999,470 Trust and welfare payments 5,174,112 5,104,112 5,087,160 16,952 4,838,134

Total Employee Benefits 164,685,605 165, 135,605 163, 060,469 2,075,136 153,847,821

DEBT SERVICE Principal Bond anticipation notes - - - - 6,000,000

Interest Bond anticipation notes 150,000 150,000 879,712 (729,712) 226,463 Revenue anticipation notes 1,050,000 1,050,000 1,505,779 (455,779) 607,635

1,200,000 1,200,000 2,385,491 (1, 185,491) 834,098

Total Debt Service 1,200,000 1,200,000 2,385,491 (1,185,4912_ 6,834,098

TOTAL EXPENDITURES 478,526,804 494,676,804 486,357,290 8,319,514 469,742,037

(Continued) City of Yonkers, New York

General Fund Schedule of Expenditures and Other Financing Uses Compared to Budget (Continued) Year Ended June 30, 2019 (With Comparative Actuals for 2018)

Variance with Final Budget Original Final Positive 2018 Budget Budget Actual _ .. (Negative) Actual OTHER FINANCING USES Transfers out Education Fund $ 231,160,925 $ 231, 160,925 $ 231,160,925 $ - $ 246,537,012 Community Development Fund - - - - 3,394,649 City Debt Service Fund 41,579,684 41,579,684 41,395,176 184,508 34,875,419 Education Debt Service Fund 30,434,216 30,434,216 30,434,216 - 14,708,930 Water Fund 4,588,996 4,588,996 4,588,996 - 4,526,009 Public Library Fund 10,301,894 10,301,894 10,301,894 - 9,652,023

TOTAL OTHER FINANCING USES 318,065,715 318,065,715 317,881,207 184,508 313,694,042 co TOTAL EXPENDITURES AND --.,J OTHER FINANCING USES $ 796,592,519 $ 812,742,519 $ 804,238,497 $ 8,504,022 $ 783,436,079

See independent auditors' report. City of Yonkers, New York

Education Fund Comparative Balance Sheet June 30,

2019 2018 ASSETS Receivables Accounts $ 11,461,557 $ 9,433,678 State and Federal aid 80,320, 197 74,244,536 Due from other funds 71,667,460 75,979, 193 Advances to other funds 2,517,307

Total Assets $ 165,966,521 $ 159,657,407 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE Liabilities Accounts payable $ 36,479,943 $ 25,697,043 Accrued liabilities 27,332,537 23,572,781 Due to other governments 573,618 1,382,114 Due to other funds 42,528,460 43,561,968 Due to retirement systems 33,601,825 30,794,519 Overpayments 257,831 154,065

Total Liabilities 140,774,214 125, 162,490

Deferred inflows of resources Unavailable revenues - State aid and tuition 1,861,599 1,547,827

Total Liabilities and Deferred Inflows of Resources 142,635,813 126,710,317

Fund balance Nonspendable 2,517,307 Restricted 964,300 Assigned 20,813,401 31,982,790

Total Fund Balance 23,330,708 32,947,090

Total Liabilities, Deferred Inflows of Resources and Fund Balance $ 165,966,521 $ 159,657,407

See independent auditors' report. 88 City of Yonkers, New York

Education Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Years Ended June 30, 2019 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Charges for services $ 366,900 $ 366,900 $ 171,318 $ (195,582) Use of money and property 293,000 293,000 288,303 (4,697) Sale of property and compensation for Joss 3,428 3,428 lnterfund revenues 506,316 506,316 384,799 (121,517) State aid 320,829,704 320,829,704 322,208,427 1,378,723 Federal aid 650,000 650,000 1,606,606 956,606 Miscellaneous 938,020 938,020 3,657,493 2,719,473

Total Revenues 323,583,940 323,583,940 328,320,374 4,736,434 EXPENDITURES Current Education General support Board of education 285,639 285,639 246,546 39,093 Central administration 932, 146 953,505 938,035 15,470 Finance 154,000 154,000 126,450 27,550 Central services 38,857,462 39,540,807 38,538,114 1,002,693 Special items 1,048,646 1,048,646 1,047,467 1, 179

Total General Support 41,277,893 41,982,597 40,896,612 1,085,985

Instruction Instruction, administration and improvement 31,404,725 31,867,715 31,058,528 809, 187 Teaching - Regular school 182,024,292 182,391,360 180,634, 700 1,756,660 Programs for students with disabilities 93,719,502 93,778,912 91,694,792 2,084,120 Occupational education 6,676,399 6,491,620 6,444,105 47,515 Instructional media 1,952,029 1,989,233 1,950,281 38,952 Pupil services 20,557,667 21,079,772 19,980,054 1,099,718

Total Instruction 336,334,614 337,598,612 331,762,460 5,836,152

Pupil transportation 37,162,461 38,009,614 37,315,554 694,060

Total Education 414,774,968 417,590,823 409,974,626 7,616,197

Employee benefits 160,702,761 157,886,906 155,066,979 2,819,927

Debt service Principal 1,320,595 1,320,595 1,320,595 Interest 277,858 277,858 277,858

Total Debt Service 1,598,453 1,598,453 1,598,453

Total Expenditures 577,076,182 577,076,182 566,640,058 10,436,124

Deficiency of Revenues Over Expenditures (253,492,242) (253,492,242) (238,319,684) 15, 172,558 OTHER FINANCING SOURCES (USES) Transfers in 231, 160,925 231,160,925 231, 160,925 Transfers out (1,845,200) (2,809,500) (2,457,623) 351,877

Total Other Financing Sources 229,315,725 228,351,425 228,703,302 351,877

Net Change in Fund Balance (24, 176,517) (25,140,817) (9,616,382) 15,524,435

FUND BALANCE Beginning of Year 24,176,517 25,140,817 32,947,090 7,806,273

End of Year $ $ $ 23,330,708 $ 23,330,708

See independent auditors' report. 89 2018 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative)

$ 434,500 $ 434,500 $ 391,995 $ (42,505) 268,000 268,000 300,267 32,267 308,435 308,435 621,373 621,373 374,565 (246,808) 303,812,539 305,312,539 300,326,079 (4,986,460) 614,900 614,900 1,133,856 518,956 686,300 686,300 3,514,637 2,828,337

306,437,612 307,937,612 306,349,834 (1,587,778)

290,050 310,831 247,658 63, 173 1,224,000 1, 193,142 1,103,717 89,425 217,870 217,870 143,490 74,380 38,535, 154 38,605,714 36,875,476 1,730,238 986, 100 980, 100 956,737 23,363

41,253,174 41,307,657 39,327,078 1,980,579

31,166,359 30,889,859 30,267,519 622,340 178,870,390 178,551,029 176,562,972 1,988,057

87,382,485 87,703,807 84,907,644 2,796,163 6,685,691 6,459,897 6,358,225 101,672 2,016,437 2,097,636 1,748, 106 349,530 20,767,247 19,937,892 19,143,942 793,950

326,888,609 325,640, 120 318,988,408 6,651,712

35, 127,380 37,355,783 37,065,038 290,745

403,269, 163 404,303,560 395,380,524 8,923,036

148,041,597 148,225,044 147,884,888 340,156

1,265,241 1,265,241 1,265,241 316,379 316,379 316,379

1,581,620 1,581,620 1,581,620

552,892,380 554, 110,224 544,847,032 9,263, 192

(246,454, 768) (246,172,612) (238,497' 198) 7,675,414

246,432,990 246,432,990 246,537,012 104,022 (18,609,306) (18,891,462) (18,781,751) 109,711

227,823,684 227,541,528 227,755,261 213,733

(18,631,084) (18,631,084) (10,741,937) 7,889,147

18,631,084 18,631,084 43,689,027 25,057,943 $ $ $ 32,947,090 $ 32,947,090

90 (This page intentionally left blank) City of Yonkers, New York

Education Special Aid Fund Comparative Balance Sheet June 30,

2019 2018 ASSETS Receivables State and Federal aid $ 14,255,572 $ 15,447,793 Due from other funds 684, 142 686,479

Total Assets $ 14,939,714 $ 16, 134,272

LIABILITIES AND FUND BALANCE (DEFICIT) Liabilities Accounts payable $ 3,038,451 $ 3,166,420 Accrued liabilities 1,293,641 1,259,881 Due to other governments 883,639 755,002 Due to other funds 9,723,983 10,952,969 Advances from other funds 2,517,307

Total Liabilities 17,457,021 16, 134,272

Fund balance (deficit) Unassigned (2,517,307)

Total Liabilities and Fund Balance (Deficit) $ 14,939,714 $ 16, 134,272

See independent auditors' report. 91 City of Yonkers, New York

Education Special Aid Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Years Ended June 30,

2019 Variance with Final Budget Original Final Positive Budget Budget Actual (Ne9ative) REVENUES State aid $ 26,655,608 $ 26,910,608 $ 21, 153,197 $ (5,757,411) Federal aid 34,190,295 36,770,989 31,009, 138 (5, 761,851) Miscellaneous 420,106 420,106 317,755 (102,351)

Total Revenues 61,266,009 64, 101,703 52,480,090 (11,621,613)

EXPENDITURES Current Education 61,345,741 64, 179, 133 55,146,502 9,032,631 Employee benefits 1,415,468 1,417,770 1,344,218 73,552

Total Expenditures 62,761,209 65,596,903 56,490,720 9, 106, 183

Deficiency of Revenues Over Expenditures (1,495,200) (1,495,200) (4,010,630) (2,515,430)

OTHER FINANCING SOURCES Transfers in 1,495,200 1,495,200 1,493,323 (1,877)

Net Change in Fund Balance (2,517,307) (2,517,307)

FUND BALANCE (DEFICIT) Beginning of Year

End of Year $ $ $ (2,517,307) $ (2,517,307)

See independent auditors' report. 92 2018 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative)

$ 26,298,407 $ 26, 136,618 $ 21,480,017 $ (4,656,601) 33,026,956 35,435,060 31,570,599 (3,864,461) 343,335 155,555 155,554 ( 1)

59,668,698 61,727,233 53,206,170 (8,521,063)

60,128,385 62,186,920 53,597,917 8,589,003 1,035,513 1,035,513 993,742 41,771

61,163,898 63,222,433 54,591,659 8,630,774

(1,495,200) (1,495,200) (1,385,489) 109,711

1,495,200 1,495,200 1,385,489 (109,711)

$ $ $ $

93 City of Yonkers, New York

Community Development Fund Combining Balance Sheet - Sub Funds June 30, 2019 (With Comparative Actuals for 2018)

Community Block Development HOME Grant Agency Program Fund Fund Fund ASSETS Cash and equivalents $ 2,468,426 $ 5,219,342 $ 931,276

Receivables Accounts 292,940 12,253 Due from other funds 27,542 27, 134 6,971 Loans, net 1,137,041 10,520,424

1,457,523 27, 134 10,539,648

Prepaid expenditures 2,581 9,693

Total Assets $ 3,928,530 $ 5,246,476 $ 11,480,617

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES (DEFICITS)

Liabilities Accounts payable $ 2,830 $ 42,062 $ Accrued liabilities 1,824 Due to other governments 4,032,000 Due to other funds 158,156 33, 105 Unearned revenues 1, 125

Total Liabilities 4, 194,810 43, 187 33, 105

Deferred inflows of resources Unavailable revenues - other 286,429 10,520,424

Total Liabilities and Deferred Inflows of Resources 4,481,239 43,187 10,553,529

Fund balances (deficits) Nonspendable 2,581 9,693 Restricted (555,290) 5,203,289 917,395

Total Fund Balances (Deficits) (552,709) 5,203,289 927,088

Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficits) $ 3,928,530 $ 5,246,476 $ 11,480,617

See independent auditors' report. 94 Totals

2019 2018

$ 8,619,044 $ 5,998,252

305, 193 23,052 61,647 3,266, 103 11,657,465 4,735,648

12,024,305 8,024,803

12,274 23,406

$ 20,655,623 $ 14,046,461

$ 44,892 $ 144,689 1,824 1,341 4,032,000 4,754,000 191,261 56,812 1, 125

4,271, 102 4,956,842

10,806,853 3,846,411

15,077,955 8,803,253

12,274 23,406 5,565,394 5,219,802

5,577,668 5,243,208

$ 20,655,623 $ 14,046,461

95 City of Yonkers, New York

Community Development Fund Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Sub Funds Year Ended June 30, 2019 (With Comparative Actuals for 2018)

Community Block Development HOME Grant Agency Program Fund Fund Fund REVENUES Departmental income $ 41,034 $ $ 198,503 Use of money and property 20,574 7,049 Sale of property and compensation for loss 3,267,022 Federal aid 3,413,400 46,759 Miscellaneous 108,630

Total Revenues 3,475,008 3,382,701 245,262

EXPENDITURES Current Home and community services 4,217,500 573,988 1,922,703 Debt service Interest 54,320

Total Expenditures 4,217,500 628,308 1,922,703

Excess (Deficiency) of Revenues Over Expenditures (742,492) 2,754,393 (1,677,441)

OTHER FINANCING SOURCES (USES) Transfers in Transfers out

Total Other Financing Sources

Net Change in Fund Balances (742,492) 2,754,393 (1,677,441)

FUND BALANCES (DEFICITS) Beginning of Year 189,783 2,448,896 2,604,529

End of Year $ (552,709) $ 5,203,289 $ 927,088

See independent auditors' report. 96 Totals

2019 2018

$ 239,537 $ 595,636 27,623 31, 126 3,267,022 225,000 3,460, 159 4,388,642 108,630 222,868

7,102,971 5,463,272

6,714,191 4,611,328

54,320 217,280

6,768,511 4,828,608

334,460 634,664

4,000,039 (605,390)

3,394,649

334,460 4,029,313

5,243,208 1,213,895

$ 5,577,668 $ 5,243,208

97 City of Yonkers, New York

City Capital Projects Fund Comparative Balance Sheet June 30,

2019 2018 ASSETS Investments $ 48,510,588 $ 91,928, 114

Receivables Accounts 532,065 State and Federal aid 13,649 13,649 Due from other funds 68,977,763 4,290,813

68,991,412 4,836,527

Total Assets $ 117,502,000 $ 96,764,641

LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 2,290,517 $ 5,308,293 Bond anticipation notes payable 52, 193,082 Due to other funds 51,061,382 39,633,601 Unearned revenues 104, 194 124,237

Total Liabilities 105,649, 175 45,066, 131

Fund balance Restricted 11,852,825 51,698,510

Total Liabilities and Fund Balance $ 117,502,000 $ 96,764,641

See independent auditors' report. 98 City of Yonkers, New York

City Capital Projects Fund Comparative Statement of Revenues, Expenditures and Changes in Fund Balance Years Ended June 30,

2019 2018 REVENUES Miscellaneous $ 60,044 $ 67,711

EXPENDITURES Capital outlay 39,905,729 25,786,003

Deficiency of Revenues Over Expenditures (39,845,685) (25,718,292)

OTHER FINANCING SOURCES (USES) Bonds issued 30,725,000 Issuance premium 5,654,095 Transfers out (1,514,234)

Total Other Financing Sources 34,864,861

Net Change in Fund Balance (39,845,685) 9,146,569

FUND BALANCE Beginning of Year 51,698,510 42,551,941

End of Year $ 11,852,825 $ 51,698,510

See independent auditors' report. 99 City of Yonkers, New York

Education Capital Projects Fund Comparative Balance Sheet June 30,

2019 2018 ASSETS Receivables Accounts $ 1,979,480 $ 251,319 Due from other funds 43,266,583 31,387,443

$ 45,246,063 $ 31,638,762

LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 1,733,903 $ 1, 121,765 Accrued liabilities 171,992 386, 191 Bond anticipation notes payable 27,320,000 Due to other funds 1,451, 108 1,351,085

Total Liabilities 30,677,003 2,859,041

Fund balance Restricted 14,569,060 28,779,721

Total Liabilities and Fund Balance $ 45,246,063 $ 31,638,762

See independent auditors' report. 100 City of Yonkers, New York

Education Capital Projects Fund Comparative Statement of Revenues, Expenditures and Changes in Fund Balance Years Ended June 30,

2019 2018 REVENUES State aid $ 13,746,525 $ 3,675,661

EXPENDITURES Capital outlay 28,354,352 18,841,096

Deficiency of Revenues Over Expenditures (14,607,827) (15, 165,435)

OTHER FINANCING SOURCES Insurance recoveries 397, 166 716,257 Bonds issued 20,405,000 Issuance premium 1,762,363

Total Other Financing Sources 397,166 22,883,620

Net Change in Fund Balance (14,210,661) 7,718,185

FUND BALANCE Beginning of Year 28,779,721 21,061,536

End of Year $ 14,569,060 $ 28,779,721

See independent auditors' report. 101 City of Yonkers, New York

Debt Service Fund Combining Balance Sheet - Sub Funds June 30, 2019 (With Comparative Actuals for 2018)

City Education Totals Debt Debt Service Service 2019 2018 ASSETS Cash and equivalents $ 1,835,801 $ $ 1,835,801 $ 6,407,706 Due from other funds 42,923,251 42,528,460 85,451,711 83,680,295

Total Assets $ 44,759,052 $ 42,528,460 $ 87,287,512 $ 90,088,001

LIABILITIES AND FUND BALANCES Liabilities Due to other funds $ 43,033,236 $ 42,265,496 $ 85,298,732 $ 87, 142, 140

Fund balances Restricted 1,725,816 262,964 1,988,780 2,945,861

Total Liabilities and Fund Balances $ 44,759,052 $ 42,528,460 $ 87,287,512 $ 90,088,001

See independent auditors' report. 102 City of Yonkers, New York

Debt Service Fund Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Sub Funds Year Ended June 30, 2019 (With Comparative Actuals for 2018)

City Education Totals Debt Debt Service Service 2019 2018 REVENUES Use of money and property $ 41,380 $ 96,603 $ 137,983 $ 416,111

EXPENDITURES Debt service Principal Bonds 35,986,497 24,368,504 60,355,001 63,100,000 Notes 326,741 326,741 330,994 Energy performance contract 842,300 842,300 842,300 State loan 200,000 200,000 200,000

37,155,538 24,568,504 61,724,042 64,473,294

Interest Bonds 14,733,899 6,834,245 21,568, 144 19,247,545 Notes 58,544 58,544 41,435

14,792,443 6,834,245 21,626,688 19,288,980

Refunding bond issuance costs 592,765

Advance refunding escrow 1,323,243

Total Expenditures 51,947,981 31,402,749 83,350,730 85,678,282

Deficiency of Revenues Over Expenditures (51,906,601) (31,306,146} (83,212,747) (85,262, 171)

OTHER FINANCING SOURCES (USES) Refunding bonds issued 89,375,000 Payment to refunded bond escrow agent (101,388,719) Refunding bond issuance premium 12,606,484 Issuance premium 244,862 244,862 Transfers in 50,612,288 31,398,516 82,010,804 77,408,224

Total Other Financing Sources 50,857,150 31,398,516 82,255,666 78,000,989

Net Change in Fund Balances (1,049,451) 92,370 (957,081) (7,261, 182)

FUND BALANCES Beginning of Year 2,775,267 170,594 2,945,861 10,207,043

End of Year $ 1,725,816 $ 262,964 $ 1,988,780 $ 2,945,861

See independent auditors' report. 103 City of Yonkers, New York

City Debt Service Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Years Ended June 30,

2019 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Use of money and property $ $ $ 41,380 $ 41,380

EXPENDITURES Debt service Principal Bonds 35,986,497 35,986,497 35,986,497 Notes 370,076 311,532 326,741 (15,209) Energy performance contract 842,300 842,300 842,300

37,198,873 37,140,329 37,155,538 (15,209)

Interest Bonds 14,733,902 14,733,902 14,733,899 3 Notes 58,544 58,544

14,733,902 14,792,446 14,792,443 3

Refunding bond issuance costs

Advance refunding escrow

Total Expenditures 51,932,775 51,932,775 51,947,981 (15,206)

Deficiency of Revenues Over Expenditures (51,932,775) (51,932,775) (51,906,601) 26,174

OTHER FINANCING SOURCES (USES) Refunding bonds issued Payment to refunded bond escrow agent Refunding bond issuance premium Issuance premium 244,862 244,862 Transfers in 50,796,796 50,796,796 50,612,288 (184,508)

Total Other Financing Sources 50,796,796 50,796,796 50,857, 150 60,354

Net Change in Fund Balance (1, 135,979) (1, 135,979) (1,049,451) 86,528

FUND BALANCE Beginning of Year 1, 135,979 1,135,979 2,775,267 1,639,288

End of Year $ $ $ 1,725,816 $ 1,725,816

See independent auditors' report. 104 2018 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative)

$ $ $ 270,569 $ 270,569

36,207,648 36,207,648 37,467,646 (1,259,998) 362,299 320,864 330,994 (10,130) 870,000 870,000 842,300 27,700

37,439,947 37,398,512 38,640,940 (1,242,428)

14,531,385 14,531,385 13,252,995 1,278,390 41,435 41,435

14,531,385 14,572,820 13,294,430 1,278,390

299,869 299,869

1,323,243 1,323,243

51,971,332 53,594,444 53,558,482 35,962

(51,971,332) (53,594,444) (53,287,913) 306,531

49,988,000 49,988,000

(56,575,769) (56,575,769) 6,887,638 6,887,638

44,602,431 44,602,431 45,935,188 1,332,757

44,602,431 44,902,300 46,235,057 1,332,757

(7,368,901) (8,692,144) (7,052,856) 1,639,288

7,368,901 8,692,144 9,828,123 1, 135,979

$ $ $ 2,775,267 $ 2,775,267

105 City of Yonkers, New York

Education Debt Service Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Years Ended June 30,

2019 Variance with Final Budget Original Final Positive Budget Budget Actual {Negative~ REVENUES Use of money and property $ $ $ 96,603 $ 96,603

EXPENDITURES Debt service Principal Bonds 24,368,504 24,368,504 24,368,504 State loan 200,000 200,000 200,000

24,568,504 24,568,504 24,568,504

Interest Bonds 6,834,245 6,834,245 6,834,245

Refunding bond issuance costs

Total Expenditures 31,402,749 31 ,402,749 31,402,749

Deficiency of Revenues Over Expenditures (31,402,749) {31,402,749) (31,306, 146) 96,603

OTHER FINANCING SOURCES (USES) Refunding bonds issued Payment to refunded bond escrow agent Refunding bond issuance premium Transfers in 30,434,216 31,398,516 31,398,516

Total Other Financing Sources 30,434,216 31,398,516 31,398,516

Net Change in Fund Balance (968,533) (4,233) 92,370 96,603

FUND BALANCE Beginning of Year 968,533 4,233 170,594 166,361

End of Year $ $ $ 262,964 $ 262,964

See independent auditors' report. 106 2018 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative)

$ $ $ 145,542 $ 145,542

25,632,354 25,632,354 25,632,354 200,000 200,000 200,000

25,832,354 25,832,354 25,832,354

5,994,550 5,994,550 5,994,550

292,896 292,896

31,826,904 32, 119,800 32, 119,800

(31,826,904) (32, 119,800) (31,974,258) 145,542

39,387,000 39,387,000

(44,812,950) (44,812,950) 5,718,846 5,718,846 31,452,217 31,452,217 31,473,036 20,819

31,452,217 31,745, 113 31,765,932 20,819

(374,687) (374,687) (208,326) 166,361

374,687 374,687 378,920 4,233

$ $ $ 170,594 $ 170,594

107 (This page intentionally left blank) NON-MAJOR GOVERNMENTAL FUNDS I

SPECIAL REVENUE FUNDS

• Sewer Fund - The Sewer Fund was established pursuant to the General Municipal Law of the State of New York and is used to account for sewer operations financed by sewer rents.

• Water Fund - The Water Fund is used to record the water utility operations of the City which render services primarily on a user charge basis to the general public.

• Public Library Fund - The Public Library Fund was established pursuant to the Education Law of the State of New York and is used to account for the operations of the City's library system.

• School Lunch Fund - The School Lunch Fund is used to record the operations of the breakfast and lunch programs operated by the School District.

• City Grants Fund - The City Grants Fund is used to record the financial activity of certain federal and state funded City grant programs.

• 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 Yonkers, New York

Non-Major Special Revenue Funds Combining Balance Sheet June 30, 2019 (With Comparative Actuals for 2018)

Public Sewer Water Library ASSETS Cash and equivalents $ $ 19,985,777 $ 955, 163

Investments

Receivables Accounts 4,691,957 19,239,822 500 State and Federal aid Due from other funds 271,328

4,963,285 19,239,822 500

Inventories

Total Assets $ 4,963,285 $ 39,225,599 $ 955,663

LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 260,256 $ 8,533,408 $ 139,972 Accrued liabilities Due to other funds 15,274,637 Unearned revenues

Total Liabilities 260,256 23,808,045 139,972

Fund balances Nonspendable Restricted 4,703,029 Assigned 15,417,554 815,691

Total Fund Balances 4,703,029 15,417,554 815,691

Total Liabilities and Fund Balances $ 4,963,285 $ 39,225,599 $ 955,663

See independent auditors' report. 108 Total Non-Major Special Revenue Funds School City Special Lunch Grants Purpose 2019 2018

$ $ 1,300,091 $ 689,423 $ 22,930,454 $ 14,605,955

555,311 555,311 479,601

47,438 134,078 24,113,795 24,765,953 2,092,898 18,640,534 20,733,432 21,766,239 1,140,094 48,931 1,460,353 1,421,426

3,280,430 18,689,465 134,078 46,307,580 47,953,618

228,564 228,564 293,391

$ 3,508,994 $ 19,989,556 $ 1,378,812 $ 70,021,909 $ 63,332,565

$ 1,596,723 $ 1,595,554 $ 59,981 $ 12, 185,894 $ 11,968,562 319,458 17,960 337,418 199,408 487,771 9,390,789 60 25, 153,257 18,502,831 8,985,253 28,643 9,013,896 12,208,999

2,403,952 19,989,556 88,684 46,690,465 42,879,800

228,564 228,564 293,391 1,290, 128 5,993, 157 5,738,421 876,478 17,109,723 14,420,953

1, 105,042 1,290, 128 23,331,444 20,452,765

$ 3,508,994 $ 19,989,556 $ 1,378,812 $ 70,021,909 $ 63,332,565

109 City of Yonkers, New York

Non-Major Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2019 (With Comparative Actuals for 2018)

Public Sewer Water Library REVENUES Other tax items $ $ 4,603,476 $ Departmental income 8,765,023 34,858,453 39,628 Charges for services 215,372 State aid 57,438 Federal aid Food sales Miscellaneous 79,550 13,050

Total Revenues 8,765,023 39,756,851 110,116

EXPENDITURES Current Education Public safety Transportation Culture and recreation 9,246,531 Home and community services 5,334,387 25,231,728 Employee benefits Cost of food sales

Total Expenditures 5,334,387 25,231,728 9,246,531

Excess (Deficiency) of Revenues Over Expenditures 3,430,636 14,525,123 (9, 136,415)

OTHER FINANCING SOURCES (USES) Transfers in 4,588,996 10,301,894 Transfers out (3,425,456) (16,488,681) (1,202,660)

Total Other Financing Sources (Uses) (3,425,456) (11,899,685) 9,099,234

Net Change in Fund Balances 5,180 2,625,438 (37, 181)

FUND BALANCES Beginning of Year 4,697,849 12,792,116 852,872

End of Year $ 4,703,029 $ 15,417,554 $ 815,691

See independent auditors' report. 110 Total Non-Major Special Revenue Funds School City Special Lunch Grants Purpose 2019 2018

$ $ $ $ 4,603,476 $ 4,738,556 43,663,104 45,588,793 737, 173 952,545 1,260, 128 221, 147 6,834,830 7,113,415 9,563,411 10,352,904 7,194,249 17,547, 153 17,820,176 415,046 415,046 1,397,834 1,499,668 469,052 2,061,320 533,483

10,989,097 16,265,920 469,052 76,356,059 80,902,381

85,327 85,327 21,950 4,258,341 89,422 4,347,763 5,426, 125 5,979,273 5,979,273 5,866,631 131,590 44,747 9,422,868 9,092,896 5,896,716 36,462,831 38,334,826 2,909,210 2,909,210 2,934,053 8,044,201 8,044,201 7,795,242

10,953,411 16,265,920 219,496 67,251,473 69,471,723

35,686 249,556 9,104,586 11,430,658

14,890,890 14,810,188 (21, 116,797) (21,367,919)

(6,225,907) (6,557,731)

35,686 249,556 2,878,679 4,872,927

1,069,356 1,040,572 20,452,765 15,579,838

$ 1, 105,042 $ $ 1,290, 128 $ 23,331,444 $ 20,452,765

111 (This page intentionally left blank) City of Yonkers, New York

Sewer Fund Comparative Balance Sheet June 30,

2019 2018 ASSETS Receivables Accounts $ 4,691,957 $ 4,819,028 Due from other funds 271,328

Total Assets $ 4,963,285 $ 4,819,028

LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 260,256 $ 72,513 Due to other funds 48,666

Total Liabilities 260,256 121,179

Fund balance Restricted 4,703,029 4,697,849

Total Liabilities and Fund Balance $ 4,963,285 $ 4,819,028

See independent auditors' report. 112 City of Yonkers, New York

Sewer Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Years Ended June 30,

2019 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative} REVENUES Departmental income $ 8,579,102 $ 8,579,102 $ 8,765,023 $ 185,921

EXPENDITURES Current Home and community services 5,571,619 5,571,619 5,334,387 237,232

Excess of Revenues Over Expenditures 3,007,483 3,007,483 3,430,636 423,153

OTHER FINANCING USES Transfers out (3,425,456) (3,425,456) (3,425,456)

Net Change in Fund Balance (417,973) (417,973) 5,180 423,153

FUND BALANCE Beginning of Year 417,973 417,973 4,697,849 4,279,876

End of Year $ $ $ 4,703,029 $ 4,703,029

See independent auditors' report. 113 2018 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative)

$ 8,046,236 $ 8,046,236 $ 9, 116, 135 $ 1,069,899

4,062,063 4,062,063 3,700,013 362,050

3,984, 173 3,984, 173 5,416,122 1,431,949

(3,991, 126) (3,991, 126) (3,991, 126)

(6,953) (6,953) 1,424,996 1,431,949

6,953 6,953 3,272,853 3,265,900

$ $ $ 4,697,849 $ 4,697,849

114 (This page intentionally left blank) City of Yonkers, New York

Water Fund Comparative Balance Sheet June 30,

2019 2018 ASSETS Cash and equivalents $ 19,985,777 $ 12,930,228 Accounts receivable 19,239,822 19,778,422

Total Assets $ 39,225,599 $ 32,708,650

LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 8,533,408 $ 8,533,694 Due to other funds 15,274,637 11,382,840

Total Liabilities 23,808,045 19,916,534

Fund balance Assigned 15,417,554 12,792,116

Total Liabilities and Fund Balance $ 39,225,599 $ 32,708,650

See independent auditors' report. 115 City of Yonkers, New York

Water Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Years Ended June 30,

2019 Variance with Final Budget Original Final Positive Budget Budget Actual {Negative} REVENUES Other tax items $ 4,530,901 $ 4,530,901 $ 4,603,476 $ 72,575 Departmental income 36,880,016 36,880,016 34,858,453 (2,021,563) Charges for services 243,550 243,550 215,372 (28,178) Miscellaneous 112,000 112,000 79,550 (32,450)

Total Revenues 41,766,467 41,766,467 39,756,851 (2,009,616)

EXPENDITURES Current Home and community services 30,240,376 30,240,376 25,231,728 5,008,648

Excess of Revenues Over Expenditures 11,526,091 11,526,091 14,525,123 2,999,032

OTHER FINANCING SOURCES (USES) Transfers in 4,588,996 4,588,996 4,588,996 Transfers out (16,488,681) (16,488,681) (16,488,681)

Total Other Financing Uses (11,899,685) (11,899,685) (11,899,685)

Net Change in Fund Balance (373,594) (373,594) 2,625,438 2,999,032

FUND BALANCE Beginning of Year 373,594 373,594 12,792,116 12,418,522

End of Year $ $ $ 15,417,554 $ 15,417,554

See independent auditors' report. 116 2018 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative)

$ 4,928,279 $ 4,928,279 $ 4,738,556 $ (189,723) 36,490,037 36,490,037 36,410,892 (79, 145) 205,500 205,500 155,779 (49,721) 112,000 112,000 172,646 60,646

41,735,816 41,735,816 41,477,873 (257,943)

29,936, 160 29,936,160 25,359,641 4,576,519

11,799,656 11,799,656 16, 118,232 4,318,576

4,526,009 4,526,009 4,526,009 (16,348,393) (16,348,393) (16,348,393)

(11,822,384) (11,822,384) (11,822,384)

(22,728) (22,728) 4,295,848 4,318,576

22,728 22,728 8,496,268 8,473,540

$ $ $ 12,792,116 $ 12,792,116

117 (This page intentionally left blank) City of Yonkers, New York

Public Library Fund Comparative Balance Sheet June 30,

2019 2018 ASSETS Cash and equivalents $ 955, 163 $ 1,033,684 Accounts receivable 500 500

Total Assets $ 955,663 $ 1,034, 184

LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 139,972 $ 181,312

Fund balance Assigned 815,691 852,872

Total Liabilities and Fund Balance $ 955,663 $ 1,034, 184

See independent auditors' report. 118 City of Yonkers, New York

Public Library Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Years Ended June 30,

2019 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative} REVENUES Departmental income $ 62,000 $ 62,000 $ 39,628 $ (22,372) State aid 47,560 47,560 57,438 9,878 Miscellaneous 41,050 41,050 13,050 (28,000)

Total Revenues 150,610 150,610 110,116 (40,494)

EXPENDITURES Current Culture and recreation 9,756,577 9,756,577 9,246,531 510,046

Deficiency of Revenues Over Expenditures (9,605,967) (9,605,967) (9, 136,415) 469,552

OTHER FINANCING SOURCES (USES) Transfers in 10,301,894 10,301,894 10,301,894 Transfers out (1,202,660) (1,202,660) (1,202,660)

Total Other Financing Sources 9,099,234 9,099,234 9,099,234

Net Change in Fund Balance (506,733) (506,733) (37,181) 469,552

FUND BALANCE Beginning of Year 506,733 506,733 852,872 346, 139

End of Year $ $ $ 815,691 $ 815,691

See independent auditors' report. 119 2018 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative)

$ 77, 100 $ 77, 100 $ 61,766 $ (15,334) 47,560 47,560 56,875 9,315 41,050 41,050 31,330 (9,720)

165,710 165,710 149,971 (15,739)

9,353,982 9,353,982 8,992, 104 361,878

(9, 188,272) (9, 188,272) (8,842, 133) 346, 139

9,652,023 9,652,023 9,652,023 (1,028,400) (1,028,400) (1,028,400)

8,623,623 8,623,623 8,623,623

(564,649) (564,649) (218,510) 346, 139

564,649 564,649 1,071,382 506,733

$ $ $ 852,872 $ 852,872

120 (This page intentionally left blank) City of Yonkers, New York

School Lunch Fund Comparative Balance Sheet June 30,

2019 2018 ASSETS Receivables Accounts $ 47,438 $ 65,822 State and Federal aid 2,092,898 1,464,666 Due from other funds 1, 140,094 1,381,875

3,280,430 2,912,363

Inventories 228,564 293,391

Total Assets $ 3,508,994 $ 3,205,754

LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 1,596,723 $ 1,470,924 Accrued liabilities 319,458 183,683 Due to other funds 487,771 481,791

Total Liabilities 2,403,952 2, 136,398

Fund balance Nonspendable 228,564 293,391 Assigned 876,478 775,965

Total Fund Balance 1, 105,042 1,069,356

Total Liabilities and Fund Balance $ 3,508,994 $ 3,205,754

See independent auditors' report. 121 City of Yonkers, New York

School Lunch Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Years Ended June 30,

2019 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES State aid $ 191,552 $ 191,552 $ 221, 147 $ 29,595 Federal aid 8,319,004 8,319,004 10,352,904 2,033,900 Food sales 1,348,706 1,348,706 415,046 (933,660) Miscellaneous

Total Revenues 9,859,262 9,859,262 10,989,097 1, 129,835

EXPENDITURES Current Employee benefits 3, 104, 152 2,984, 152 2,909,210 74,942 Cost of food sales 8,192,128 8,312,128 8,044,201 267,927

Total Expenditures 11,296,280 11,296,280 10,953,411 342,869

Excess (Deficiency) of Revenues Over Expenditures (1,437,018) (1,437,018) 35,686 1,472,704

OTHER FINANCING SOURCES Transfers in 350,000 350,000 (350,000)

Net Change in Fund Balance (1,087,018) (1,087,018) 35,686 1,122,704

FUND BALANCE Beginning of Year 1,087,018 1,087,018 1,069,356 (17,662)

End of Year $ $ $ 1, 105,042 $ 1, 105,042

See independent auditors' report. 122 2018 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative)

$ 207,480 $ 207,480 $ 183,099 $ (24,381) 8,150,346 8,150,346 7,759,169 (391, 177) 1,684,574 1,684,574 1,397,834 (286,740) 48,768 48,768

10,042,400 10,042,400 9,388,870 (653,530)

2,954,270 2,954,270 2,934,053 20,217 7,911,918 7,911,918 7,795,242 116,676

10,866, 188 10,866, 188 10,729,295 136,893

(823,788) (823,788) (1,340,425) (516,637)

350,000 350,000 632, 156 282, 156

(473,788) (473,788) (708,269) (234,481)

473,788 473,788 1,777,625 1,303,837

$ $ $ 1,069,356 $ 1,069,356

123 (This page intentionally left blank) City of Yonkers, New York

City Grants Fund Comparative Balance Sheet June 30,

2019 2018 ASSETS Cash and equivalents $ 1,300,091 $

Receivables State and Federal aid 18,640,534 20,301,573 Due from other funds 48,931 39,551

18,689,465 20,341,124

Total Assets $ 19,989,556 $ 20,341,124

LIABILITIES Accounts payable $ 1,595,554 $ 1,526,866 Accrued liabilities 17,960 15,725 Due to other funds 9,390,789 6,589,534 Unearned revenues 8,985,253 12,208,999

Total Liabilities $ 19,989,556 $ 20,341,124

See independent auditors' report. 124 City of Yonkers, New York

City Grants Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Years Ended June 30,

2019 Variance with Final Budget Original Final Positive Budget Budget Actual {Negative) REVENUES Departmental income $ $ $ $ Charges for services 1,040,678 1,040,678 737,173 (303,505) State aid 15,881,961 15,881 ,961 6,834,830 (9,047,131) Federal aid 18,091,137 18,091, 137 7, 194,249 (10,896,888) Miscellaneous 1,605,310 1,605,310 1,499,668 (105,642)

Total Revenues 36,619,086 36,619,086 16,265,920 (20,353, 166)

EXPENDITURES Current Public safety 7,396,898 7,396,898 4,258,341 3, 138,557 Transportation 12,367,425 12,367,425 5,979,273 6,388,152 Culture and recreation 858,240 858,240 131,590 726,650 Home and community services 15,996,523 15,996,523 5,896,716 10,099,807

Total Expenditures 36,619,086 36,619,086 16,265,920 20,353,166

Excess of Revenues Over Expenditures

FUND BALANCE Beginning of Year

End of Year $ $ $ $

See independent auditors' report. 125 2018 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative)

$ 111,320 $ 111,320 $ $ (111,320) 187,784 187,784 1, 104,349 916,565 22,546,482 22,546,482 9,323,437 (13,223,045) 23,660,380 23,660,380 10,061,007 (13,599,373) 1,417,920 1,417,920 53,860 (1,364,060)

47,923,886 47,923,886 20,542,653 (27,381,233)

7,496, 191 7,496, 191 5,355,850 2,140,341 13,422,864 13,422,864 5,866,631 7,556,233 815,824 815,824 45,000 770,824 26,189,007 26, 189,007 9,275, 172 16,913,835

47,923,886 47,923,886 20,542,653 27,381,233

$ $ $ $

126 City of Yonkers, New York

Special Purpose Fund Comparative Balance Sheet June 30,

2019 2018 ASSETS Cash and equivalents $ 689,423 $ 642,043 Investments 555,311 479,601 Accounts receivable 134,078 102,181

Total Assets $ 1,378,812 $ 1,223,825

LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 59,981 $ 183,253 Due to other funds 60 Unearned revenues 28,643

Total Liabilities 88,684 183,253

Fund balance Restricted 1,290, 128 1,040,572

Total Liabilities and Fund Balance $ 1,378,812 $ 1,223,825

See independent auditors' report. 127 City of Yonkers, New York

Special Purpose Fund Comparative Statement of Revenues, Expenditures and Changes in Fund Balance Years Ended June 30,

2019 2018 REVENUES Miscellaneous $ 469,052 $ 226,879

EXPENDITURES Current Education 85,327 21,950 Public safety 89,422 70,275 Culture and recreation 44,747 55,792

Total Expenditures 219,496 148,017

Excess of Revenues Over Expenditures 249,556 78,862

FUND BALANCE Beginning of Year 1,040,572 961,710

End of Year $ 1,290, 128 $ 1,040,572

See independent auditors' report. 128 City of Yonkers, New York

Fiduciary Funds - Agency Fund Statement of Changes in Assets and Liabilities Year Ended June 30, 2019

Balance Balance July 1, June 30, 2018 Additions Reductions 2019 ASSETS Cash and equivalents $ 12,422,089 $ 70,460,698 $ 68,041,464 $ 14,841,323 Accounts receivable 1,255,072 15,307,285 13,451,035 3,111,322

Total Assets $ 13,677,161 $ 85,767,983 $ 81,492,499 $ 17,952,645

LIABILITIES Accounts payable $ 460,725 $ 1,696, 152 $ 1,910,453 $ 246,424 Employee payroll deductions 9,974,037 14,947,924 11,468,733 13,453,228 Deposits 2,897,273 23,864,564 22,826,076 3,935,761 Student activity funds 345, 126 891,589 919,483 317,232

Total Liabilities $ 13,677,161 $ 41,400,229 $ 37,124,745 $ 17,952,645

See independent auditors' report. 129 STATISTICAL SECTION (UNAUDITED)

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 Yonkers, New York

Net Position by Component Last Ten Fiscal Years

2010 2011 2012 2013 2014 PRIMARY GOVERNMENT Net Investment in Capital Assets $ 138,726,316 $ 145,785,120 $ 152, 139,303 $ 169,689,871 $ 185,485,893 Restricted 15,735,859 10,091,958 10,390,761 12,781,517 15,582,841 Unrestricted (470,490,453} (546,741,785} (632,055, 187} (771,684,413} (952,318,671}

Total Primary Government Net Position $ (316,028,278) $ (390,864, 707) $ (469,525, 123) $ (589,213,025) $ (751,249,937)

(1) Reflects initial implementation of Governmental Accounting Standards Board Statement No. 68 "Accounting and Financial Reporting for Pensions".

(2) Reflects initial implementation of Governmental Accounting Standards Board Statement No. 75 "Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions".

See independent auditors' report. 130 2015(1) 2016 2017 2018 (2) 2019

$ 197,113,917 $ 208,289,343 $ 228,345,239 $ 271,015,378 $ 308,349,650 12,625,956 23,403,311 22,542,626 20,360,581 25,621,464 (1,030,371,616) (1, 159,869,999) (1,362,875,709) (3,123,137,574) (3, 175,663, 725)

$ (820,631, 743) $ (928, 177,345) $ (1,111,987,844) $ (2,831,761,615) $ (2,841,692,611)

131 City of Yonkers, New York

Changes In Net Position Last Ten Fiscal Years

2010 2011 2012 2013 EXPENSES Governmental Activities General government support $ 114,557,722 $ 92,153,380 $ 109,233,631 $ 96,698,090 Education 610,339,040 584,220, 136 574,517,266 604,723,981 Public safety 249,200,177 253,462,854 245,285,519 277,342,296 Transportation 3,748,615 3,762,332 1,644,099 2,554,540 Culture and recreation 27,174,255 20,244,726 24,923,829 28,174,200 Home and community services 80,486,508 78,678,985 92,983,418 86,846,243 Interest 21,830,388 22,705,567 21,507,938 20,408,530

Total Primary Government Expenses 1,107,336,705 1,055,227,980 1,070,095,700 1,116,747,880

PROGRAM REVENUES Governmental Activities Charges for services General government support 11,662,302 15, 196,280 16,533, 157 16,242,532 Education 3,057,251 2,648,820 2,983, 150 2,918,507 Public safety 8,057,938 8,995,653 7,675,845 8,358,062 Transportation 483,993 473,027 474,493 475,298 Culture and recreation 2,257,067 2,548,614 2,631,213 2,690,904 Home and community services 23,470,866 25,569, 193 29,142,758 33,845,283 Operating grants and contributions 106,495,033 106,646,647 90,099,855 98,127,740 Capital grants and contributions 6,242,682 918,951 308,144 1,088,882

Total Primary Government Program Revenues 161,727, 132 162,997,185 149,848,615 163,747,208

Total Primary Government Net Expense (945,609,573} (892,230,795} (920,247,085) (953,000,672)

GENERAL REVENUES Governmental Activities Taxes Real property taxes 275,684,037 286,255,827 292,352,321 300,323,045 Other tax items 66,758,036 64,637,100 72,026,152 75,579,609 Non-property taxes 96,551,065 101,458,201 115,619,511 120, 189,039 Forfeitures 8,275 1, 175 1,600 6,750 Unrestricted use of money and property 498,478 270,688 256,191 224,682 Sale of property and compensation for loss 14,770 14,628 307,875 258,202 Unrestricted State aid 347,251,203 351,076,326 342,328,128 328,309, 196 Federal aid 15,346,588 8, 155,256 75,522 20,804 Gain on sale of real property 266,270 Insurance recoveries Miscellaneous 5,098,904 5,258,895 8,407,534 8,401,443 Transfer of land held for economic development to primary government

Total Primary Government 807,211,356 817,394,366 831,374,834 833,312,770

CHANGE IN NET POSITION Total Primary Government $ (138,398,217) $ (74,836,429) $ (88,872,251) $ (119,687,902)

(1) Reflects initial implementation of Governmental Accounting Standards Board Statement No. 68 "Accounting and Financial Reporting for Pensions".

(2) Reflects initial implementation of Governmental Accounting Standards Board Statement No. 75 "Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions".

See independent auditors' report. 132 2014 2015(1) 2016 2017 2018 (2) 2019

$ 107,100,494 $ 137,770,430 $ 128,681,687 $ 208,688,406 $ 138,885,300 $ 154,609,210 647,422,656 609,518, 158 649,534,790 695,610,202 675,723,493 687,802,391 275,001,739 283,662,266 338,140,560 277,482,571 283,946,026 306,335,889 6,172,307 6,809,978 4,818, 156 5,007,085 7,819,377 8,162,352 28,498,545 29,597,372 34,288,308 51,784,258 32,132,537 34,431,015 86,636,459 82,700,233 90,401,286 97,592,695 83,633,445 84,985,803 21,239,113 19,391,454 15,116,847 20,408,348 16,264,688 18,043, 160

1,172,071,313 1, 169,449,891 1,260,981,634 1,356,573,565 1,238,404,866 1,294,369,820

19,468,301 21,189,174 22,884,073 22,232,019 23,455,363 24,455,474 2,666,651 2,669,696 2,397,920 3,286,209 2,090,096 1, 188,439 7,768,318 13,221,978 13,510,258 14,227,436 15,795,397 16,027,792 476,745 476,745 478,338 480,905 484,026 488,699 2,647,887 2,543,170 2,674,338 2,619,710 2,679,910 2,526,667 34,289,017 35,612,489 42,426, 157 49,394,765 48,069,094 53,009,306 91,087,054 92,534,142 107,725,454 100,037,291 107,177,943 105,461,704 165,268 201,359 294,651 851,231 4,875,740 14,341,718

158,569,241 168,448,753 192,391, 189 193,129,566 204,627,569 217,499,799

(1,013,502,072) {1,001,001, 138~ (1,068,590,445) (1, 163,443,999~ (1,033,777,297} {1,076,870,0212

302,493,214 317,266,537 319, 188,289 337,055,758 344,286,901 355,665,506 78,870,430 81,961,747 78,596,755 77,828,471 84,072,083 92,547,545 125,049,902 134,923,934 148,642,365 154,579,376 161,731,666 169,293,625 975

127,257 93,440 90,360 173,938 689,333 1,506,634

1,302,671 735,537 421,170 2,811, 177 513,788 14,189,098 333,252, 133 379,624,711 386,184,613 397,788,617 396,316,816 423,923,300

807, 193 14,250,000 3,717,943 2,073,315 2,998,222 1,227,935 8,333,450 6,803,053 6,815, 151 5,678,220 6,294,038 6,815,095

6,856,140

851,465, 160 921,408,959 961,044,843 979,633,500 995,977,940 1,066,939,025

$ {162,036,912} $ {79,592, 179} $ {107,545,602} $ {183,810,499} $ {37 ,799,357} $ {9,930,996~

133 City of Yonkers, New York

Fund Balances of Governmental Funds Last Ten Fiscal Years

2010 2011 (1) 2012 2013 GENERAL FUND Reserved $ 2,355,246 $ $ $ Unreserved 9,231,545 Non spendable 10,600 3,071,221 4,464,686 Assigned 5,638,555 10,825,579 18,816,058 Unassigned 8,866,923 20,918,509 31,597,978

Total General Fund $ 11,586,791 $ 14,516,078 $ 34,815,309 $ 54,878,722

ALL OTHER GOVERNMENTAL FUNDS Reserved $ 7,856,804 $ $ $ Unreserved, Reported In Special revenue funds 26,725,258 Capital projects funds 77,911,500 Debt service funds (51,995) Nonspendable 187,741 3,219,474 2,859,762 Restricted 33,018,073 42,027,554 98,795,703 Committed 6,350,000 4,850,000 Assigned 25,836,039 73,594,799 19,320,853 Unassigned 7,477,234 (323,253) (169,809)

Total All Other Governmental Funds $ 112,441,567 $ 72,869,087 $ 123,368,574 $ 120,806,509

Total Governmental Funds $ 124,028,358 $ 87,385,165 $ 158, 183,883 $ 175,685,231

(1) Components of fund balance were reclassified with the June 30, 2011 implementation of Governmental Accounting Standards Board Statement No. 54 "Fund Balance Reporting and Governmental Fund Type Definitions".

See independent auditors' report. 134 2014 2015 2016 2017 2018 2019

$ $ $ $ $ $

3,543,829 4,173,560 4,173,560 33,036,096 39,214,537 39,328,369 42,354,793 18,710,024 28,442,197 37,494,895 37,950,372 37,686,576 18,261,008 27,890,155 41,021,887

$ 74,074,820 $ 81,338,469 $ 81, 188,505 $ 60,615,801 $ 46,600,179 $ 69,464,084

$ $ $ $ $ $

3,888,520 1,613,965 88,579 334,439 316,797 2,758,145 58,551,794 69,797,346 96,532,474 72,466,284 95,346,615 39,969,216

4,963,390 11,329,192 32,319,001 61,502,557 46,403,743 37,923, 124 (38,878,918) (993,470) (2,517,307)

$ 28,524,786 $ 81,747,033 $ 128,940,054 $ 134,303,280 $ 142,067,155 $ 78, 133, 178

$ 102,599,606 $ 163,085,502 $ 210,128,559 $ 194,919,081 $ 188,667,334 $ 147,597,262

135 City of Yonkers, New York

Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years

2010 2011 2012 2013 REVENUES Real property taxes $ 272, 185,428 $ 281,141,856 $ 289,233, 129 $ 305,492, 125 Other tax items 66,758,036 64,637, 100 72,026,152 75,579,609 Non-property taxes 96,551,065 101,458,201 115,619,511 120, 189, 039 Departmental income 43,152,935 50,340,662 54,345,600 59,550,507 Charges for services 2, 175,963 2,454,558 2,166,655 1,287,372 Use of money and property 1,294,407 676,970 1,123,190 1, 144,704 Forfeitures 8,275 1, 175 1,600 6,750 Sale of property and compensation for loss 229,631 238,588 327,370 474,752 lnterfund revenues 1,503,125 1,215,987 930,311 802,375 State aid 387,913,948 385,536,864 379, 197,328 370,846,330 Federal aid 79,978,174 79,415,310 52,113,409 54,962,067 Food sales 2,387,226 2,091,379 2,122,494 1,989,735 Miscellaneous 12,474,334 7,077,996 8,322,953 10, 119,862

Total Revenues 966,612,547 976,286,646 977,529,702 1,002,445,227

EXPENDITURES Current General government support 90,193,733 74,270,685 84,799,011 78,047,611 Education 399,394,075 381,717,571 367,300,654 392, 760, 138 Public safety 145,703,692 140,277,496 143,026,543 144,844,426 Transportation 3, 145,339 3, 159,440 1,567,905 1,949,464 Culture and recreation 16,480,097 14,997,660 15,093,456 15,315,630 Home and community services 60,043,934 63,695,300 64,900,922 65,653,674 Employee benefits 205, 895, 109 226,517,753 232,468, 118 238,47 4,631 Cost of food sales 7,052,612 6,878,962 6,996,278 7,088,976 Debt service Principal 45,957,628 38,063,952 53,303,407 44,944,850 Interest 22,349,835 22,037,297 19,730,990 24,375,426 Refunding bond issuance costs 351,624 Advance refunding escrow Capital outlay 49,050,934 52,433,957 46,219,673 38,292,154

Total Expenditures 1,045,266,988 1,024,050,073 1,035,406,957 1,052,098,604

Deficiency of Revenues Over Expenditures (78,654,441) (47, 763,427) (57,877,255) (49,653,377)

OTHER FINANCING SOURCES (USES) Insurance recoveries Sale of real property 200,000 Bonds issued 51,021,000 113,130,000 56,920,000 Bond anticipation notes issued 14,800,000 2,000,000 7,065,000 Issuance premium 1,041,051 5,162,591 5,887,999 Notes issued 1,516,019 8,090,419 Refunding bonds issued 49,150,000 Payment to refunded bond escrow agent (51,868,274) Loans issued 341,770 Issuance costs (170,223) State loan issued 829,815 Energy performance contract issued Transfers in 294,171,762 290,798,606 296,975, 124 313,321,291 Transfers out (294, 171,762) (290, 798,606) (296,975, 124) (313,321,291)

Total Other Financing Sources 68,378,070 11, 120,234 118,464, 138 67,154,725

Net Change in Fund Balances $ (10,276,371) $ (36,643, 193) $ 60,586,883 $ 17,501,348

Debt Service as a Percentage of Non-Capital Expenditures 6.8% 6.2% 7.3% 6.8%

See independent auditors' report. 136 2014 2015 2016 2017 2018 2019

$ 306,231,052 $ 315,999,359 $ 319,927,787 $ 340,998,409 $ 344,259,383 $ 355,456,462 78,870,430 81,961,747 78,596,755 77,828,471 84,072,083 92,547,545 125,049,902 134,923,934 148,642,365 154,579,376 161, 731,666 169,293,625 60,475,476 71,943,358 81,203,698 87,190,889 89,311,332 88,485,151 1,394,855 1,703,402 1,690,804 2,285,601 1,652,124 1, 123,863 1,075,132 963,768 1,004,411 738,807 1,542,890 2,070,343 975

4,194,671 735,537 421, 170 2,811,177 738,788 3,348,951 860,523 961,887 1,276,647 505,788 374,565 384,799 371,689,310 422,904,701 436,628,853 444,954,411 452,049,528 486,908,691 51,304,469 47,382,715 56,455,243 51,692,915 55,254,508 53,623,056 1,712,136 1,882,055 1,607,425 1,520,255 1,397,834 415,046 9,801,713 8,830,490 7,833,059 6,211,267 7,441,734 9,492,062

1,012,660,644 1,090, 192,953 1, 135,288,217 1, 171,317,366 1, 199,826,435 1,263, 149,594

72,735,309 96,617,811 97,775,844 111,841,422 96,584,085 103,440,675 411,981,049 403,351,031 416,933,504 428,577,630 449,000,391 465,206,455 147,603,655 157,592,026 168,012,569 176,508,424 182,654,241 186,535,403 4,953,065 2,927,135 5,294,022 5,877,588 7,585,805 7,883,521 16,212,230 16,676,412 17,915,863 18,663,819 19,018,271 19,652,867 60,945,008 67,340,391 64,242,819 61,382,041 66,549,522 66,325,790 252,828, 101 266,227,317 280,850,247 290,588,678 305,660,504 322,380,876 7,326,434 7,210,892 7,285,824 7,317,294 7,795,242 8,044,201

46,294,960 59,127,659 54,376,650 60,937,628 71,738,535 63,044,637 23,309,149 20,246,809 20,747,739 24,653,243 20,656,737 24,344,357 2,378,311 591,520 142,998 592,765 1,426,395 1,323,243 51,208,244 54,693,827 46,352,992 53,232,412 44,627,099 68,260,081

1,095,397,204 1,154,389,621 1, 180,379,593 1,241, 149,572 1,273,786,440 1,335, 118,863

(82, 736,560) (64, 196,668) (45,091,376) (69,832,206) (73,960,005) (71,969,269)

1,227,935 598,362 716,257 397, 166 14,250,000 3,717,943 1,852,778 14,107,169 112,520,000 68,555,000 40,350,000 57,130,000 6,000,000 16,150,000 13,103,612 11,454,753 4,465,238 20,022,942 244,862 1,492,903 1,141,630 61,785,000 76,215,000 9,945,000 89,375,000 (64,218,951) (79,481,950) (10,453,815) (101,388,719)

8,423,000 320,803,342 324,594,263 355,090,694 358, 162,686 355,963,336 341,455,627 (320, 803, 342) (324,594,263) (355,090,694) (358, 162,686) (355,963,336) (341,455,627)

9,650,935 124,682,564 92, 134,433 54,622,728 67,708,258 30,899,197

$ (73,085,625) $ 60,485,896 $ 47,043,057 $ (15,209,478) $ (6,251,747) $ (41,070,072)

6.7% 7.2% 6.6% 7.2% 7.5% 6.9%

137 (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

Computation of Constitutional Tax Margin City of Yonkers, New York

Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years

Residential Commercial Industrial Special Assessed Year Property Property Property Franchise (1) Value (2)

2010 $ 304,612,788 $ 156,880,931 $ 10,432,912 $ 17, 156,259 $ 489,082,890

2011 299,493,453 155,332,661 10, 198,215 18,822,499 483,846,828

2012 295,363,498 152,089,693 9,822,044 18,822,499 476,097,734

2013 293,056,452 151,007,227 8,719,143 26,240,243 479,023,065

2014 290, 193, 996 151,713,915 8,574,853 24,842,941 475,325,705

2015 285,562,477 151,845,007 8,339,862 27,010,486 472,757,832

2016 284,650,412 152,225,954 8,354,862 27,010,486 472,241,714

2017 285,554,424 150,599,035 7,500,999 28,922,888 472,577,346

2018 287,079,661 150,324,798 7,643,063 26,731,549 471,779,071

2019 275,209,945 160, 177,905 7,643,063 26,731,549 469,762,462

(1) Assessed valuation of transmission lines of and Verizon (2) Assessed valuation for City purposes (3) Assessed valuation for educational purposes (4) 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.

See independent auditors' report. 138 State Estimated Total Plus Total Taxable Special Actual Direct Veteran's Assessed Equalization Taxable Tax Exemption Value (3) Rate (4) Value Rate

$ 7,696,865 $ 496,779,755 3.00 % $ 16,559,325, 167 $ 600.75

7,700,399 491,547,227 3.10 15,856,362, 161 624.76

8, 155,530 484,253,264 3.24 14,946,088,395 654.78

7,525,610 486,548,675 3.23 15,063,426,471 677.02

7,192,720 482,518,425 3.11 15,515,061,897 688.93

7,724,788 480,482,620 3.10 15,499,439,355 701.59

2,232,063 474,473,777 3.08 15,404,992,760 719.87

1,992,028 474,569,374 2.76 17, 194,542,536 749.96

500,697 472,279,768 2.84 16,629,569,296 754.56

575,579 470,338,041 2.93 16,052,492,867 804.72

139 City of Yonkers, New York

Direct and Overlapping Property Tax Rates, Per $1,000 of Assessed Valuation Last Ten Fiscal Years

Overlapping Rates Westchester Count~ City Refuse Direct Sewer Disposal Year Rate (1) Operating Districts (2) District

2010 $ 600.75 $ 122.15 $ 19.26 $ 11.48

2011 624.76 120.42 19.10 11.61

2012 654.78 117.60 18.51 11.35

2013 677.02 113.38 18.32 10.92

2014 688.93 117.86 18.82 10.90

2015 701.59 116.98 18.44 10.86

2016 719.87 112.48 18.62 10.28

2017 749.96 109.97 18.46 9.85

2018 754.56 120.48 21.71 10.50

2019 804.72 131.18 16.98 10.98

(1) A single direct property tax rate applies to all classes of real property. (2) Average rate for five sewer districts

Source: City of Yonkers Department of Finance

See independent auditors' report. 140 City of Yonkers, New York

Principal Taxpayers Current Year and Nine Years Ago

2019 Percent of Net Net Assessed Assessed Rank Taxpayer Type of Business Valuation Valuation

1 Con Edison Utility $ 34,415,452 7.32 %

2 City of New York Utility 2,860,900 0.61

3 Clearbrook South LLC Office Park 2,748,784 0.58

4 Morris Builders LP Supermarket 2,592,200 0.55

5 UE Yonkers II LLC Shopping Mall 1,750,000 0.37

6 Crestwood Lake 1,708,465 0.36

7 SNH Yonkers Properties Trust Apartments 1,400,000 0.30

8 AAC Cross County Mall LLC Shopping Center 1,279,950 0.27

9 Central Plaza Associates LLC Shopping Center 1,147,000 0.24

10 Fleetwood Park Corp Apartments 1,139,041 0.24

Total $ 51,041,792 10.84 %

2010 Percent of Net Net Assessed Assessed Rank Taxpayer Type of Business Valuation Valuation

1 Con Edison Utility $ 26,462,216 5.33 %

2 Cali So. West. Realty Assoc. Office Park 3,717,800 0.75

3 Acklinis Realty Holding Shopping Center 2,910,800 0.59

4 City of New York Water Supply Utility 2,860,900 0.58

5 Crestwood Lake Heights Apartments 1,708,465 0.34

6 AACW Cross County Mall LLC Shopping Center 1,655,500 0.33

7 Inc. Utility 1,652,625 0.33

8 Sadore Lane Gardens Apartments 1,481,661 0.30

9 Central Plaza Association Lie Shopping Center 1,300,000 0.26

10 Hudson View Associates Apartments 1,300,000 0.26

Total $ 45,049,967 9.07 %

Sources: City of Yonkers Assessment Roll

See independent auditors' report. 141 City of Yonkers, New York

Property Tax Levies and Collections Last Ten Fiscal Years

Collected within the Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date for the Percentage in Subsequent Percentage Year Fiscal Year (1) Amount of Levy Years Amount of Levy

2010 $ 297, 192,534 $ 286,263,245 96.32 % $ 3,698,045 $ 289,961,290 97.57 %

2011 305,699,826 292,001,250 95.52 425,820 292,427,070 95.66

2012 315,524,266 302,517,073 95.88 10,541,946 313,059,019 99.22

2013 327,820,814 313,694,684 95.69 3,457,218 317, 151,902 96.75

2014 330,920,260 322,055, 121 97.32 849,443 322,904,564 97.58

2015 335,448,551 325,319,867 96.98 1,034,514 326,354,381 97.29

2016 341,072,515 331,738,270 97.26 3,084,728 334,822,998 98.17

2017 355,438,902 346,014,930 97.35 3,052,965 349,067,895 98.21

2018 356,243,271 348,940,284 97.95 2,992,443 351,932,727 98.79

2019 378,330,354 370,419,539 97.91 1,887,938 372,307,477 98.41

(1) Includes amounts for City and educational purposes

City of Yonkers Department of Finance.

See independent auditors' report. 142 City of Yonkers, New York

Computation of Constitutional Tax Margin June 30, 2019

Assessment Roll State Special Budget Assessed Equalization Full Year Year Valuation Rate Valuation

2018 2019 $ 470,338,041 2.93 % $ 16,052,492,867 2017 2018 472,279,768 2.84 16,629,569,296 2016 2017 474,569,374 2.76 17,194,542,536 2015 2016 474,473,777 3.08 15,404,992,760 2014 2015 480,482,620 3.10 15,499,439,355

Total Five Year Full Valuation $ 80, 781,036,813

Five Year Average Full Valuation of Taxable Real Property $ 16, 156,207,363

Tax Levying Limitation - 2% of Average Full Valuation 323,124,147

Total Exclusions 80, 196,511

Maximum Taxing Power 403,320,658

Total Levy for 2018-19 378,330,354

Tax Margin $ 24,990,304

Constitutional Tax Limit - Last Ten Fiscal Years:

Maximum Tax Taxing Tax Limit Percent Year Power Levy Available Exhausted

2010 $ 539,391,129 $ 297, 192,534 $ 242, 198,595 55.10 % 2011 508,219,999 305,699,826 202,520, 173 60.15 2012 438,683,688 315,524,266 123, 159,422 71.93 2013 390,601,233 327,820,814 62,780,419 83.93 2014 347,730,272 330,920,260 16,810,012 95.17 2015 375,086,370 335,448,551 39,637,819 89.43 2016 377,893,298 341,072,515 36,820,783 90.26 2017 384,331,270 355,432,328 28,898,942 92.48 2018 377,012,104 356,243,271 20,768,833 94.49 2019 403,320,658 378, 330, 354 24,990,304 93.80

See independent auditors' report. 143 (This page intentionally left blank) 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 Net General Bonded Debt Outstanding

Direct and Overlapping Governmental Activities Debt

Legal Debt Margin Information City of Yonkers, New York

Ratios of Outstanding Debt by Type Last Ten Fiscal Years

General Bond Fiscal Obligation Anticipation State Year Bonds Notes Loan Note Loan

2010 $ 472,610,648 $ 13,554,877 $ $ 14,800,000 $ 4,000,000

2011 437,472,776 20,529,397 16,800,000 3,800,000

2012 519,774,591 19, 137,620 341,770 3,600,000

2013 539,404,439 17,690,456 341,770 7,065,000 3,400,000

2014 493,769,884 16, 188,304 341,770 7,065,000 3,200,000

2015 570,486,892 16, 185,848 341,770 3,000,000

2016 588,844,729 15,873, 128 341,770 2,800,000

2017 569,916, 153 14,339,571 6,000,000 2,600,000

2018 573,753,376 12,743,336 2,400,000

2019 506,856,927 11,096,000 16, 150,000 2,200,000

(1) - Population and personal income data can be found in the schedule of demographic and economic statistics

Note: Details regarding the City's outstanding debt can be found in the notes to financial statements

See independent auditors' report. 144 Total Energy Gross Percentage Performance Long-Term of Personal Per Contract Debt Income (1) Capita (1)

$ $ 504,965,525 8.92 % $ 2,571

478,602,173 7.87 2,422

542,853,981 9.10 2,741

567,901,665 9.68 2,857

8,423,000 528,987,958 8.64 2,652

7,580,700 597,595,210 9.75 2,992

6,738,400 614,598,027 10.01 3,072

5,896,100 598,751,824 9.91 2,999

5,053,800 593,950,512 9.83 2,975

4,211,500 540,514,427 8.32 2,707

145 City of Yonkers, New York

Ratios of Net General Bonded Debt Outstanding Last Ten Fiscal Years

Percentage of General Less: Amounts Net Actual Taxable Percentage Fiscal Obligation Available in Debt Long-Term Value of of Personal Per Year Bonds Service Fund Debt Property Income (1) Capita (1)

2010 $ 472,610,648 $ $ 472,610,648 0.03 % 8.35 % $ 2,406

2011 437,472,776 437,472,776 0.03 7.20 2,214

2012 519,774,591 462, 171 519,312,420 0.03 8.70 2,622

2013 539,404,439 1,546,610 537,857,829 0.04 9.17 2,705

2014 493, 769,884 1,660,134 492, 109, 750 0.03 8.04 2,468

2015 570,486,892 2,058,410 568,428,482 0.04 9.27 2,846

2016 588,844,729 13,750,978 575,093,751 0.04 9.37 2,874

2017 569,916,153 10,207,043 559,709, 110 0.03 9.26 2,803

2018 573,753,376 2,945,861 570,807,515 0.03 9.45 2,859

2019 506,856,927 1,988,780 504,868,147 0.03 7.78 2,529

(1) - Population and personal income data can be found in the schedule of demographic and economic statistics

Note: Details regarding the City's outstanding debt can be found in the notes to financial statements

See independent auditors' report. 146 City of Yonkers, New York

Direct and Overlapping Governmental Activities Debt June 30, 2019

Net Percentage Amount Long-Term Applicable Applicable Debt to to Government Unit Outstanding (1) Yonkers (2) Yonkers

County of Westchester $ 1,211,674,651 9.03 % $ 109,472,718

Total Direct Debt 540,514,427

Net Direct and Overlapping Debt $ 649,987, 145

(1) At December 31, 2018. Excludes the amount available for repayment in the Debt Service Fund (2) 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: City of Yonkers 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.

See independent auditors' report. 147 City of Yonkers, New York

Legal Debt Margin Information Last Ten Fiscal Years

2010 2011 2012 2013

Debt Limit $ 2, 188,783, 138 $ 2,283,392,221 $ 1,730,794,918 $ 1,465,449,804

Total Net Debt Applicable to Limit 425,905,851 416,674,184 446,054,539 459,840,697

Legal Debt Margin $ 1,762,877,287 $ 1,866,718,037 $ 1,284,740,379 $ 1,005,609, 107

Total Net Debt Applicable to the Limit as a Percentage of Debt Limit 19.46% 18.25% 25.77% 31.38%

Legal Debt Margin Calculation for Fiscal Year 2019

Assessment Roll State Special Budget Assessed Equalization Full Year Year Valuation Ratio Valuation

2018 2019 $ 470,338,041 2.93 %$ 16,052,492,867 2017 2018 472,279,768 2.84 16,629,569,296 2016 2017 474,569,374 2.76 17, 194,542,536 2015 2016 474,473,777 3.08 15,404,992,760 2014 2015 480,482,620 3.10 15,499,439,355

Total Five Year Full Valuation $ 80,781,036,813

Five Year Average Full Valuation of Taxable Real Property 16,156,207,363

Debt Limit - 9% of Five Year Average Full Valuation 1,454,058,663

Outstanding City Debt at June 30, 2019 (1) - Serial Bonds 466,779,999

Less Exclusion for Outstanding Water Fund Debt 30,984,479 2019/20 Appropriations for Bond Principal (Exclusive of Water Fund Debt) 49,136,878

80,121,357

Net Indebtedness Subject to Debt Limit 386,658,642

Net Debt Contracting Margin $ 1,067,400,021

(1) Excludes notes, bond anticipation notes, state loans and energy performance contract indebtedness

See independent auditors' report. 148 2014 2015 2016 2017 2018 2019

$ 1,279, 130,647 $ 1,388, 117,823 $ 1,372,885,822 $ 1,379,738,720 $ 1,368,303,725 $ 1,454,058,663

410, 138,874 460, 147,434 468, 156,901 455,259,051 440,828,527 386,658,642

$ 868,991,773 $ 927,970,389 $ 904,728,921 $ 924,479,669 $ 927,475,198 $ 1,067,400,021

32.06% 33.15% 34.10% 33.00% 32.22% 26.59%

149 (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 Yonkers, New York

Demographic Statistics Last Ten Fiscal Years

Fiscal Year Ended Personal Per Capita Unemployment June 30, Population (3) Income Income (1) Rate (2)

2010 196,405 $ 5,663,338, 175 $ 28,835 9.00 %

2011 197,575 6,077,604,575 30,761 8.20

2012 198,075 5,967,405,525 30,127 8.90

2013 198,809 5,864,666,691 29,499 8.00

2014 199,434 6, 120,031, 158 30,687 6.80

2015 199, 721 6, 128,838,327 30,687 5.70

2016 200,083 6,139,947,021 30,687 4.70

2017 199,672 6,042,673,736 30,263 4.80

2018 199,663 6,042,401,369 30,263 4.80

2019 199,663 6,493,240,423 32,521 4.80

Sources: (1) U.S. Census Bureau, American FactFinder 2013-2017 American Community Survey 5-Year Estimates (2) NYS Department of Labor, Labor Statistics, Local Area Unemployment Statistics Program (3) U.S. Census Bureau 2018 Population Estimates

See independent auditors' report. 150 City of Yonkers, New York

Principal Employers Current Year and Nine Years Ago

2019(1) 2010 (2) Percentage Percentage of Total of Total Employer Employees Employment Employees Employment

Empire City at Yonkers Raceway 1,129 18.90 % 1,400 25.64 %

Montefiore IT 770 12.89

Liberty Lines 694 11.62 625 11.44

Leake and Watts Services 615 10.30

Pop Displays USA LLC 538 9.01 720 13.18

Consumers Reports/Union 502 8.41 500 9.16

Stew Leonard's of Yonkers LLC 479 8.02 600 10.99

Kawasaki Rail Inc 457 7.65 445 8.15

American Sugar Refining Inc 348 5.83 320 5.86

FedEx Distribution Center 290 4.86

Mindspark (IAC Search) 150 2.51

Ecker Windows 300 5.49

America Bus Associates 300 5.49

American Specialties 251 4.60

5,972 100.00 % 5,461 100.00 %

Sources: (1) City Finance Department (2) Yonkers Planning Bureau, Yonkers IDA

See independent auditors' report. 151 (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 Department

Operating Indicators by Function/Program

Capital Asset Statistics by Function/Program City of Yonkers, New York

Full-Time Equivalent City Government Employees by Department Last Ten Fiscal Years

Department 2010 2011 2012 2013

Executive 11 11 11 11

Legislative 28 27 27 27

Corporation Counsel 25 23 23 25

Finance and Management Services 104 92 95 100

Human Resources 45 40 39 41

Information Technology (1)

Planning and Development (2) 18 15 16 14

Housing and Community Redevelopment (2) 2 1

Police 720 661 685 686

Fire 458 419 446 460

Public Works 354 302 334 334

Engineering 32 28 28 27

Parks 106 98 98 101

Housing and Buildings 37 34 31 32

Constituent Services 7 4 5 6

Inspector General 4 3 2 2

Veterans Services 3 3 4 5

Human Rights 4 2

Grants 32 32 27 24

Total 1,990 1,793 1,871 1,897

(1) Department of Information Technology was established as a separate department under Local Law 3-2013. (2) Services provided and positions adopted under Housing and Community Redevelopment were eventually merged into the Department of Planning and Development. (3) In 2015, 64 Board of Education (BOE) positions were absorbed into the City operating budget as part of the consolidation of City/BOE Human Resources, Law, Information Technology, and Finance functions.

Source: City of Yonkers Adopted Budget Books

See independent auditors' report. 152 2014 2015{3~ 2016 2017 2018 2019 11 17 17 17 15 15 27 27 27 29 28 29 25 27 26 27 24 22 93 130 135 135 135 134 22 42 43 43 40 39 37 40 40 43 41 41 15 16 15 15 15 16

689 690 694 695 692 690 460 459 458 458 458 453 339 340 345 351 350 350 26 26 26 27 27 27 106 106 107 107 107 104 32 32 33 34 37 37 8 8 8 8 8 8 2 3 3 3 3 5 5 5 5 5 5 5 1 1 1 1 1 1 35 24 24 23 22 22 1,933 1,993 2,007 2,021 2,008 1,998

153 City of Yonkers, New York

Operating Indicators by Function/Program Last Ten Fiscal Years

2010 2011 2012 2013 GENERAL GOVERNMENT SUPPORT Building permits issued 1,303 1,371 1,598 1,630 Building inspections conducted 16,822 15,557 13,306 14,024

PUBLIC SAFETY Police Physical arrests 6,374 6,100 6, 131 6,502 Parking violations 153,631 217,404 147,570 148,979 Fire Emergency responses 14,949 14,949 14,701 15,035 Fires extinguished 1,613 1,613 1,490 1,599 Inspections 1,970 1,970 3,045 6,235

CULTURE AND RECREATION Recreation Adult programs 56 56 99 99 Children's programs 46 46 94 94 Teen centers 7 7 6 6 Senior citizen's programs 26 26 35 35 Boys and club 12 12 12 12 Swim programs- adults 15 15 58 58 Swim programs - youths 44 44 238 238 Pre-school classes 10 10 39 39 Open 3 3 2 3 Special events 50 50 60 180 Library Volumes in collections 753,503 769,435 650,295 678,846 Circulation 855,798 868,285 920,250 895,792

HOME AND COMMUNITY SERVICES Water Average daily consumption (millions of gallons) 29,670 29,550 27,037 26,730 Peak daily consumption (millions of gallons) 39,200 39,425 37,795 35, 110 Refuse Refuse collected (tons per day) 370 395 367 346 Recyclables collected (tons per day) 171 199 201 267 Total refuse tons 96,147 102,700 91,581 90,076 Total recycling tons 44,482 51,740 50,110 69,490

Sources: Various City departments

See independent auditors' report. 154 2014 2015 2016 2017 2018 2019

1,641 1,435 2,318 1,567 2,596 1,828 14,119 21,261 21,565 19,964 19,703 18,989

5,752 3,056 3,028 3,065 3,286 3,851 169,485 184,014 186,519 190,616 172,507 180,467

15,537 17,892 21,044 18,857 17,698 18,468 1,384 1,572 1,310 1,226 1,293 1,278 6,235 5,500 7,089 5,823 5,805 5,453

56 62 62 62 65 65 153 152 152 152 153 150 8 8 8 8 8 8 72 74 75 74 80 82 11 11 12 11 12 11 48 48 50 48 48 48 243 243 244 243 243 243 40 44 45 44 46 46 2 2 6 2 2 7 180 340 340 340 280 283

678,846 480,002 420,205 420,286 405, 179 352,076 786, 191 764,236 846,301 691,963 641,905 673,918

26,090 26,030 26,250 24,697 24.7612 23.9199 33,709 31,569 31,838 31,419 30,779 30, 170

335 321 315 363 365 369 228 213 261 240 243 254 87,048 83,391 81,967 83,748 83,879 85,008 59,349 55,413 67,951 57,521 56,287 58,414

155 City of Yonkers, New York

Capital Asset Statistics by Function/Program Last Ten Fiscal Years

2010 2011 2012 2013 GENERAL GOVERNMENT SUPPORT Number of general government buildings 25 25 25 25

PUBLIC SAFETY Number of police stations 11 11 11 11 Number of fire stations 12 12 12 12 Patrol units 21 21 21 21

TRANSPORTATION Miles of streets 292 292 292 292 Number of street lights 26,000 26,000 26,000 26,000 Number of traffic signals 201 201 201 215

CULTURE AND RECREATION Number of community centers 5 5 5 5 Number of parks 76 76 76 76 Acres of parks 410 410 410 410 Playgrounds 53 53 53 53 Baseball/ 57 57 57 57 Outdoor courts 23 23 23 24 Soccer fields 27 27 27 27 Basketball courts 48 48 48 48 Parks ancillary buildings 18 18 18 18 Rifle range 1 1 1 1 Indoor pool 1 1 1 1 Skating center 1 1 1 1 Skate board park 1 Animal shelter 1 1 1 1 Nature 2 2 2 2 Greenhouses 2 2 2 2 Picnic areas 2 2 2 2 Libraries 3 3 3 3

HOME AND COMMUNITY SERVICES Miles of water mains 375 375 375 385 Fire hydrants 4,500 4,500 4,500 4,500 Miles of sanitary sewers 400 400 400 400

Sources: Various City departments

See independent auditors' report. 156 2014 2015 2016 2017 2018 2019

25 18 18 18 18 18

11 10 10 10 11 12 12 10 11 11 11 11 22 22 22 24 27 28

292 292 294 302 302 302 26,000 26,000 26,000 26,000 26,000 26,000 215 215 217 217 217 218

5 5 5 5 5 5 76 79 76 76 76 78 410 413 413 413 413 413 53 54 54 54 54 54 57 57 57 57 57 57 24 24 24 24 24 24 27 27 30 30 30 30 48 48 48 48 48 48 18 18 18 18 18 18 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3

385 385 385 386 386 386 4,500 4,500 4,500 4,505 4,505 4,564 400 400 400 400 400 400

157 (This page intentionally left blank) FEDERAL AWARDS I

~ PKF V acONNOR DAVIES ACCOUNTAN TS AND ADVISORS

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 Yonkers, 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 discretely presented component unit, each major fund and the aggregate remaining fund information of the City of Yonkers, New York ("City") as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated December 6, 2019.

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 City'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.

PKF O'CONNOR DAVIES, LLP 500 Mamaroneck Avenue, Harrison, NY 10528 I Tel: 914.381.8900 I Fax: 914.381 .8910 I www.pkfod.com PKF O'Connor Davies, LLP is a member firm of the PKF lnternalional 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.

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 City'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 City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

PJ

159 re9 PKF' V acONNOR DAVIES ACCOUNTANTS ANO ADVISORS Report on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance

Independent Auditors' Report

The Honorable Mayor and City Council of the City of Yonkers, New York

Report on Compliance for Each Major Federal Program

We have audited the City of Yonkers, New York's ("City") compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended June 30, 2019. The City's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs.

The City's basic financial statements include the operations of the Education Fund, the Education Special Aid Fund, the Education Capital Projects Fund, the School Lunch Fund and the Education Debt Service Fund, which received $41,839, 109 in federal awards which is not included in the schedule during the year ended June 30, 2019. Our audit, described below, did not include the operations of these funds because the compliance audit is being issued under separate cover by the School District.

Management's Responsibility

Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.

Auditors' 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 the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Those standards and the Uniform Guidance 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 the 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.

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 June 30, 2019.

PKF O'CONNOR DAVIES, LLP 500 Mamaroneck Avenue, Harrison, NY 10528 I Tel: 914.381.8900 I Fax: 914.381.8910 1 www.pkfod.com ~KF . O'Connor D~vies, LLP is. a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or habll1ty for the actions or Inactions on the part of any other individual member firm or firms. 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 the Uniform Guidance, 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 with 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 the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

PJ

161 City of Yonkers, New York

Schedule of Expenditures of Federal Awards Year Ended June 30, 2019

Pass-Through Federal Entity Provided Total Federal Grantor/Pass-Through Grantor/ CFDA Identifying to Sub- Federal Program or Cluster Title Number (1) Number recipients Expenditures

U.S. Department of Housing and Urban Development

Direct Programs

CDBG - Entitlement Grants Cluster Community Development Block Grants/Entitlement Grants 14.218 $ 3,168,192 $ 3,197,313

Emergency Solutions Grant Program 14.231 201,897 207,732

Home Investment Partnerships Program 14.239 46,759 46,759

CDBG - Disaster Recovery Grants - Public Law No.113-2 Cluster Sandy Community Development Block Grant Disaster Recovery Grants 14.269 - 58,000

Total U.S. Department of Housing and Urban Development 3,416,848 3,509,804

U.S. Department of Justice

Direct Programs

Edward Byrne Memorial Justice Assistance Grant Program 16.738 38,785 88,144

Paul Coverdell Forensic Sciences Improvement Grant Program 16.742 - 20,096

Equitable Sharing Program 16.922 - 30,588

Total U.S. Department of Justice 38,785 138,828

U.S. Department of Labor

Indirect Programs - Passed through New York State Department of Labor

WIOA Cluster WIA/WIOA - Adult Program 17.258 N/A - 371,278 WIA/WIOA - Youth Activities 17.259 N/A - 529,392 WIA/WIOA - Dislocated Worker Formula Grant 17.278 N/A - 308,328

Total U.S. Department of Labor - 1,208,998

U.S. Department of Transportation

Indirect Program - Passed through New York State Department of Transportation

Highway Planning and Construction Cluster Highway Planning and Construction 20.205D031802 - 1,653,630

(Continued)

162 City of Yonkers, New York

Schedule of Expenditures of Federal Awards (Concluded) Year Ended June 30, 2019

Pass-Through Federal Entity Provided Total Federal Grantor/Pass-Through Grantor/ CFDA Identifying to Sub- Federal Program or Cluster Title Number (1) Number recipients Expenditures

National Endowment for the Humanities

Direct Program

Promotion of the Arts Grants to Organizations and Individuals 45.024 $ - $ 20,000

U.S. Department of Health and Human Services

Indirect Programs - Passed through Westchester County

Aging Cluster Special Programs for the Aging - Title III, Part B Grants for Supportive Services and Senior Centers 93.044 N/A - 242,079

Special Programs for the Aging - Title III, Part C Nutrition Services 93.045 N/A - 377,141

Subtotal Aging Program Cluster - 619,220

Indirect Program - Passed through New York State Office of Temporary and Disability Assistance

TANF Cluster Temporary Assistance for Needy Families 93.558 N/A - 484,433

Total U.S. Department of Health and Human Services - 1,103,653

U.S. Department of Homeland Security

Direct Program

Assistance to Firefighters Grant 97.044 - 9,795

Indirect Programs Passed through New York State Division of Homeland Security and Emergency Services

Disaster Grants - Public Assistance 97.036 N/A - 675,752

Homeland Security Grant Program 97.067 WM15984553 - 187,390 Homeland Security Grant Program 97.067 WM16154063 - 215,878 Homeland Security Grant Program 97.067 WM17154073 - 843,831 Homeland Security Grant Program 97.067 WM18154083 - 1,027,617 Homeland Security Grant Program 97.067 WM15834359 - 49,732 Homeland Security Grant Program 97.067 WM15154059 - 9,500

- - 2,333,948

Total U.S. Department of Homeland Security - 3,019,495

Total Expenditures of Federal Awards $ 3,455,633 $ 10,654,408

(1) Catalog of Federal Domestic Assistance number N/A - Information not available

The accompanying notes are an integral part of this schedule.

163 City of Yonkers, New York

Notes to Schedule of Expenditures of Federal Awards Year Ended June 30 2019

Note 1 - Basis of Presentation

The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal award activity of the City of Yonkers, New York ("City") under programs of the federal government for the year ended June 30, 2019. Federal awards received directly from the Federal agencies as well as Federal awards passed through other government agencies are included in the Schedule. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or cash flows of the City.

Note 2 - Summary of Significant Accounting Policies

Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.

The financial statements include $41,839, 109 of Federal award activity that is attributable to the Yonkers City School District. The audit of compliance in accordance with the Uniform Guidance will be issued separately by the School District.

Note 3 - Indirect Cost Rate

The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

164 City of Yonkers, New York

Schedule of Findings and Questioned Costs Year End June 30 2019

Section I - Summary of Auditors' Results

Financial Statements

Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP Unmodified

Internal control over financial reporting: • Material weakness(es) identified? Yes _x_No • Significant deficiency(ies) identified? Yes _x_ None reported

Noncompliance material to financial statements noted? Yes _x_No

Federal Awards

Internal control over major federal programs: • Material weakness(es) identified? Yes _x_No • Significant deficiency(ies) identified? Yes _x_ None reported

Type of auditors' report issued on compliance for major federal programs Unmodified

Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Yes __x_ No

Identification of major federal programs:

CFDA Number (s) Name of Federal Program or Cluster

CDBG - Entitlement Grants Cluster 14.218 Community Development Block Grants/Entitlement Grants Highway Planning and Construction Cluster 20.205 Highway Planning and Construction TANF Cluster 93.558 Temporary Assistance for Needy Families

Dollar threshold used to distinguish between Type A and Type B programs $750,000

Auditee qualified as low-risk auditee? X Yes No

165 City of Yonkers, New York

Schedule of Findings and Questioned Costs (Continued) Year End June 30 2019

Section II - Financial Statement Findings

None

Section Ill - Federal Award Findings and Questioned Costs

None

166 City of Yonkers, New York

Summary Schedule of Prior Audit Findings Year End June 30 2019

None

167