Comprehensive Annual Financial Report
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Comprehensive Annual Financial Report City of Roanoke, Virginia Fiscal Year Ended June 30, 2015 Cover image is an inside view of the City’s newly renovated Main Library located adjacent to Elmwood Park. COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year July 1, 2014 to June 30, 2015 DEPARTMENT OF FINANCE 215 Church Avenue, SW, Room 461 Roanoke, Virginia 24011 (540) 853-2821 www.roanokeva.gov THIS PAGE INTENTIONALLY BLANK Table of Contents Page Number INTRODUCTORY SECTION (Unaudited) Letter of Transmittal ................................................................................................................... 1 Certificate of Achievement for Excellence in Financial Reporting .......................................... 14 Directory of Principal Officials ................................................................................................ 15 Organizational Chart ................................................................................................................ 16 FINANCIAL SECTION Report of Independent Auditor .................................................................................................. 19 Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ............................................................................................................................... 23 Basic Financial Statements Government-Wide Financial Statements Exhibit A Statement of Net Position ............................................................................ 35 Exhibit B Statement of Activities .................................................................................. 36 Fund Financial Statements Governmental Funds’ Financial Statements Exhibit C Balance Sheet .............................................................................................. 38 Exhibit D Reconciliation of the Balance Sheet to the Statement of Net Position ............................................................................................... 39 Exhibit E Statement of Revenues, Expenditures, and Changes in Fund Balances .......................................................................................... 40 Exhibit F Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................................................ 41 Proprietary Funds’ Financial Statements Exhibit G Statement of Net Position ............................................................................ 42 Exhibit H Statement of Revenues, Expenses, and Changes in Fund Net Position ...... 43 Exhibit I Statement of Cash Flows ............................................................................. 44 Fiduciary Fund Financial Statements Exhibit J Statement of Fiduciary Net Position ........................................................... 45 Exhibit K Statement of Changes in Fiduciary Net Position ........................................ 46 Notes to Basic Financial Statements ....................................................................................... 47 Page Number Required Supplementary Information (Unaudited) Budgetary Comparison Schedule – General Fund ........................................................... 121 Infrastructure Assets Under Modified Approach .............................................................. 125 Schedule of City’s Pension Contributions – City Plan ..................................................... 126 Schedule of City’s Proportionate Share of Net Pension Liability- City Plan ................... 127 Schedule of School Board’s Pension Contributions – City Plan ...................................... 128 Schedule of School Board’s Proportionate Share of Net Pension Liability- City Plan .... 129 Schedule of City’s Pension Contributions – VRS ............................................................. 130 Schedule of School Board’s Pension Contributions – VRS – Nonprofessionals Plan ...... 131 Schedule of Changes in City’s Net Pension Liability and Related Ratios – VRS ............. 132 Schedule of School Board’s Pension Contributions – VRS – Teachers Plan ................... 133 Schedule of School Board’s Proportionate Share of Net Pension Liability – Teachers Plan…………. .......................................................................................... 134 Schedule of School Board’s Changes in Net Pension Liability and Related Ratios – VRS…………… ........................................................................................................ 135 Schedule of Funding Progress – OPEB ............................................................................ 136 Schedule of Employer Contributions – OPEB .................................................................. 137 Schedule of Funding Progress – Health Insurance Credit ............................................... 138 Note to Budgetary Comparison Schedule – General Fund .............................................. 139 Supplementary Information Combining and Individual Fund Financial Statements Exhibit L-1 Combining Statement of Net Position – Internal Service Funds .............. 143 Exhibit L-2 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position – Internal Service Funds .................................................... 144 Exhibit L-3 Combining Statement of Cash Flows – Internal Service Funds ............... 145 Exhibit M-1 Statement of Fiduciary Assets and Liabilities – Agency Fund ................ 146 Exhibit M-2 Statement of Changes in Fiduciary Assets and Liabilities – Agency Fund .......................................................................................... 147 STATISTICAL SECTION (Unaudited) Table 1 Net Position by Component ...................................................................... 151 Table 2 Changes in Net Position............................................................................ 152 Page Number Table 3 Governmental Activities Tax Revenues by Source .................................... 154 Table 4 Fund Balances of Governmental Funds ................................................... 155 Table 5 Changes in Fund Balances of Governmental Funds ................................ 156 Table 6 Local Tax Revenues by Source ................................................................. 158 Table 7 General Property Tax Levies and Collections .......................................... 158 Table 8 Assessed and Estimated Actual Value of Taxable Property ..................... 159 Table 9 Property Tax Rates and Levies ................................................................. 159 Table 10 Principal Property Taxpayers ................................................................... 160 Table 11 Taxable Retail Sales .................................................................................. 160 Table 12 Ratio of General Bonded Debt to Total Estimated Actual Value and Bonded Debt Per Capita .................................................................. 161 Table 13 Ratios of Outstanding Debt by Type ......................................................... 162 Table 14 Legal Debt Margin Information ................................................................ 162 Table 15 Computation of Legal Debt Margin .......................................................... 163 Table 16 Ratio of Annual Debt Service Expenditures for General Long-Term Debt to Total General Expenditures ....................................................... 163 Table 17 Debt Service as a Percentage of Non-Capital Expenditures .................... 164 Table 18 Demographic Statistics ............................................................................. 164 Table 19 Construction Statistics .............................................................................. 165 Table 20 Principal Employers ................................................................................. 165 Table 21 Full-Time Equivalent City Government Employees by Function ............. 166 Table 22 Operating Indicators by Function ............................................................ 167 Table 23 Capital Asset Statistics by Function ......................................................... 168 COMPLIANCE SECTION Schedule of Expenditures of Federal Awards ......................................................................... 171 Report of Independent Auditor 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 ..................................... 177 Report of Independent Auditor on Compliance For Each Major Program and Report on Internal Control Over Compliance as Required by OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations ............................................. 179 Schedule of Findings and Questioned Costs ........................................................................... 181 THIS PAGE INTENTIONALLY BLANK INTRODUCTORY SECTION THIS PAGE INTENTIONALLY BLANK CITY OF ROANOKE DEPARTMENT OF FIINANCE 215 Church Avenue, SW, Suite 461 PO Box 1220 Roanoke, Virginia 24011-1220 Telephone: (540) 853-2821 Fax: (540) 853-6142 BARBARA A. DAMERON, CPA ANDREA F. TRENT Director of Finance Assistant Director of Finance December 31, 2015 The Honorable Mayor, Members of the City Council and Citizens of Roanoke, Virginia: We are pleased to