COMPREHENSIVE ANNUAL FINANCIAL REPORT for the Year Ended June 30, 2017
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Comprehensive annual 2017 financial report FOR YEAR ENDED JUNE 30, 2017 CITY OF ATLANTA, GA MAYOR KASIM REED THE CITY OF ATLANTA, GEORGIA COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2017 Kasim Reed Mayor J. Anthony Beard Chief Financial Officer CITY OF ATLANTA, GEORGIA Comprehensive Annual Financial Report For the Year Ended June 30, 2017 TABLE OF CONTENTS INTRODUCTORY SECTION (Unaudited) Page Letter of Transmittal i GFOA Certificate of Achievement ix List of Elected and Appointed Officials x Organizational Char xiii FINANCIAL SECTION Independent Auditors' Report 1 Management discussion and Analysis (Unaudited) 4 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position 23 Statement of Activities 25 Fund Financial Statements: Balance Sheet - Governmental Funds 27 Reconciliation of Government Funds' Balance Sheet to the Government-Wide Statement of Net Position 28 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Fund 29 Reconciliation of the Governmental Funds' Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities 30 Statement of Net Position - Proprietary Funds 31 Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds 33 Statement of Cash Flows - Proprietary Funds 34 Statement of Fiduciary Net Position - Fiduciary Funds 36 Components Units' Financial Statements: Statement of Net Position 39 Statement of Activities 41 Notes to Financial Statements 42 CITY OF ATLANTA, GEORGIA Comprehensive Annual Financial Report For the Year Ended June 30, 2017 TABLE OF CONTENTS Required Supplementary Information (Unaudited): Schedule of Funding Progress for Other Post-Employment Benefits 134 Schedule of Employer Net Position Liability - General Employees, Firefighters, and Police Pension Plans 135 Schedule of Changes in Net Pension Liability - General Employees' Pension Plan 138 Schedule of Changes in Net Pension Liability - Firefighters' Pension Plan 139 Schedule of Changes in Net Pension Liability - Police Officers' Pension Plan 140 Schedule of Employer Contributions 141 Schedule of Investment Returns 142 Note to Required Supplementary Information 143 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund 145 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Municipal Option Sales Tax (MOST) Fund 146 Combining and Individual Fund Statements and Schedule: Combining Balance Sheet - Nonmajor Governmental Funds 149 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - Nonmajor Governmental Funds 151 Combining Balance Sheet - Nonmajor Governmental Funds - Tax Allocations Districts 153 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental Funds - Tax Allocation Districts 154 Combining Balance Sheet - Nonmajor Governmental Funds - Other Special Revenue Funds 155 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Government Funds - Other Special Revenue Funds 156 Combining Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Nonmajor Special Revenue Funds 157 Bond Service Funds 176 Combining Statement of Net Position - Nonmajor Proprietary Funds 178 Combining Statement of Revenues, Expenditures and Changes in Fund Net Position - Nonmajor Proprietary Funds 179 Combining Statement of Cash Flows - Nonmajor Proprietary Funds 180 Combining Statement of Net Position - Internal Service Funds 181 Combining Statement of Revenues, Expenditures and Changes in Fund Net Position - Internal Service Funds 182 Combining Statement of Cash Flows - Internal Service Funds 183 Combining Statement of Plan Net Position - Pension Trust Funds 184 Combining Statement of Changes in Plan: Net Position - Pension Trust Funds 185 Statement of Changes in Assets and Liabilities - Agency Fund 186 CITY OF ATLANTA, GEORGIA Comprehensive Annual Financial Report For the Year Ended June 30, 2017 TABLE OF CONTENTS STATISTICAL SECTION (Unaudited) Net Position by Component 188 Changes in Net Position 189 Program Revenues by Function/Program 190 Fund Balances, Governmental Funds 191 Changes in Fund Balances, Governmental Funds 192 Assessed and Estimated Actual Value of Taxable Property 193 Direct and Overlapping Property Tax Rates 194 Principal Property Tax Payers 195 Property Tax Levies and Collections 196 Table Sales by Category 197 Direct and Overlapping Sales Tax Rate 198 Principal Sales Tax Remitters 199 Ratio of Outstanding Debt by Type 200 Ratio of General Bonded Debt Outstanding 201 Direct and Overlapping Governmental Activities Debt 202 Legal Debt Margin Information 203 Schedule of Revenue Bond Coverage - Department of Aviation 204 Schedule of Revenue Bond Coverage - Department of Watershed Management 205 Demographic and Economic Statistics 206 Principal Employers 207 Full-time Equivalent City Government Employees by Function/Program 208 Operating Indicators by Function/Program 209 Capital Asset Statistics by Function/Program 210 Introductory Section CITY OF ATLANTA Kasim Reed J. Anthony Beard MAYOR 55 TRINITY AVENUE, S.W. CHIEF FINANCIAL OFFICER ATLANTA, GEORGIA 30 30 3-0300 TEL (404) 330-6 10 0 December 22, 2017 The Honorable Ceasar C. Mitchell, President Members of City Council Atlanta City Council 55 Trinity Avenue Atlanta, GA 30303 Dear President Mitchell and Members of the Atlanta City Council: The Finance Department is pleased to present the Comprehensive Annual Financial Report (“CAFR”) of the City of Atlanta, Georgia (the “City”) for the fiscal year ended June 30, 2017. State law requires that all general-purpose local governments publish, within six months of the close of each fiscal year, a complete set of audited financial statements, presented in conformity with generally accepted accounting principles in the United States of America (“GAAP”). The law further requires that these statements be audited in accordance with government auditing standards by a firm of licensed certified public accountants. The CAFR has been prepared by the City in accordance with those principles and standards. GAAP requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of a Management Discussion & 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. Responsibility for the accuracy and completeness of the data and, the fairness of the presentation, including all disclosures rests with management. We believe that the data, as presented, is accurate in all material respects, presents fairly the City’s financial position and results of operations, as measured by the financial activity of its various funds. To provide a reasonable basis for making these representations, the City has established an internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse, and to compile sufficient reliable information for the preparation of the City’s financial statements that are in conformance with GAAP. The cost of internal controls should never outweigh their benefits. The City’s framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements are free from material misstatement. As management, we i assert, to the best of our knowledge and belief, that the CAFR is complete and accurate in all material respects. The City’s financial statements have been audited by KPMG, LLP. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the year ended June 30, 2017 are free of material misstatements. 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 risks of material misstatement of the financial statements, whether due to fraud or error. The independent auditors rendered unmodified opinions that the City’s financial statements for the year ended June 30, 2017, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report. This report and other historical audited financial statements, prior year(s) fiscal operating budgets, as well as the Popular Annual Financial Report, may also be accessed via the City’s website at www.atlantaga.gov. CITY OF ATLANTA GOVERNMENT OVERVIEW The City, incorporated in 1847, is located in the north-central part of the state, which is the top growth area in Georgia and has been one of the highest growth areas of the country for over three decades. The City currently occupies a land area of 134 square miles, with a population of 463,878 in the City and 5.7 million people in the Atlanta Metropolitan area, according to 2015 United States Census Bureau estimates. The Atlanta-Sandy Springs-Roswell, GA MSA (commonly referred to as Metropolitan Atlanta) is the ninth largest metropolitan area in the country. The City is empowered to levy a property tax on both real and personal properties located within its boundaries. The City’s policy-making and legislative authority are vested in a governing council (City Council) consisting of fifteen members