City of Burlington Vermont Comprehensive Annual Fiscal Report for Fiscal Year Ended June 30, 2019
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CITY OF BURLINGTON VERMONT COMPREHENSIVE ANNUAL FISCAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2019 (This page intentionally left blank.) CITY OF BURLINGTON, VERMONT Comprehensive Annual Financial Report For the Year Ended June 30, 2019 Prepared by: The Clerk Treasurer Office Rich Goodwin Ann Barton Director of Financial Operations Comptroller (This page intentionally left blank.) CITY OF BURLINGTON, VERMONT TABLE OF CONTENTS PAGE INTRODUCTORY SECTION: Transmittal Letter 3 Organization Chart 8 Principal Officials 9 Department and Division Heads 10 Certificate of Achievement 11 FINANCIAL SECTION: INDEPENDENT AUDITORS’ REPORT 15 MANAGEMENT’S DISCUSSION AND ANALYSIS 21 BASIC FINANCIAL STATEMENTS: Government-wide Financial Statements: Statement of Net Position 33 Statement of Activities 35 Fund Financial Statements: Governmental Funds: Balance Sheet 37 Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities in the Statement of Net Position 38 Statement of Revenues, Expenditures, and Changes in Fund Balances 39 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 40 General Fund Statement of Revenues and Other Sources, and Expenditures and Other Uses - Budget and Actual 41 Proprietary Funds: Statement of Net Position 42 Statement of Revenues, Expenses, and Changes in Fund Net Position 44 Statement of Cash Flows 45 Fiduciary Funds: Statement of Fiduciary Net Position 47 Statement of Changes in Fiduciary Net Position 48 Notes to Financial Statements 49 REQUIRED SUPPLEMENTARY INFORMATION Pension: Schedule of Proportionate Share of the Net Pension Liability (GASB 68) 129 Schedule of Pension Contributions (GASB 68) 130 Schedule of Changes in the Employers’ Net Pension Liability (GASB 67) 131 OPEB: Schedules of Changes in Total OPEB Liability and Contributions (GASB 75) 132 Schedules of Changes in Total OPEB Liability and Contributions (BSD) (GASB 75) 133 SUPPLEMENTARY STATEMENTS AND SCHEDULES Combining Financial Statements: Governmental Funds: Combining Balance Sheet – Nonmajor Governmental Funds 140 Combining Statement of Revenues, Expenditures, and Changes in Fund Equity – Nonmajor Governmental Funds 146 Proprietary Funds: Combining Statement of Net Position – Nonmajor Proprietary Funds 152 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position – Nonmajor Proprietary Funds 153 Combining Statement of Cash Flows – Nonmajor Proprietary Funds 155 Fiduciary Funds: Combing Statement of Fiduciary Net Position – Private Purpose Trust Funds 157 Combing Statement of Change in Fiduciary Net Position – Private Purpose Trust Funds 158 STATISTICAL SECTION: Financial Trends Net Position by Component – Last Ten Years 162 Changes in Net Position – Last Ten Years 163 Fund Balances of Governmental Funds – Last Ten Years 165 Changes in Fund Balances of Governmental Funds – Last Ten Years 166 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years 167 Property Tax Rates – Direct and Overlapping Governments - Last Ten Fiscal Years 168 Principal Property Taxpayers – Current Year and Nine Years Ago 169 Property Tax Levies and Collections – Last Ten Fiscal Years 170 Debt Capacity Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 171 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years 172 Direct and Overlapping Governmental Activities Debt 173 Legal Debt Margin Information 174 Airport Enterprise Fund Bond Coverage – Last Ten Fiscal Years 175 Demographic and Economic Information Demographic and Economic Indicators – Last Ten Years 176 Principal Employers – Current Year and Nine Years Ago 177 Operating Information Full Time Equivalent Employees by Function/Program – Last Ten Years 178 Operating Indicators by Function/Program – Last Ten Years 179 Capital Asset Statistics by Function/Program – Last Ten Years 180 (This page intentionally left blank.) INTRODUCTORY SECTION (This page intentionally left blank.) 2 OFFICE OF THE CLERK/TREASURER City of Burlington ______________________________________________________ City Hall, Room 20, 149 Church Street, Burlington, VT 05401 Voice (802) 865-7000 Fax (802) 865-7014 TTY (802) 865-7142 January 23, 2020 Mayor and City Council City of Burlington 149 Church Street Burlington, Vermont 05401 To the Citizens, Mayor, and City Council of the City of Burlington: The Comprehensive Annual Financial Report of the City of Burlington for the Fiscal Year ended June 30, 2019, is hereby submitted. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the following data, including financial statements, supporting schedules and statistical tables, is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the City. To provide a reasonable basis for making representations, management has established a comprehensive internal control framework that is designed to both protect the government’s assets from loss, theft, or misuse and compile sufficient reliable information to the preparation of the financial statements in conformity with Generally Accepted Accounting Principles (GAAP). Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Fiscal year 2019 represents the fourth year that the City of Burlington has compiled a Compre- hensive Annual Financial Report (CAFR). The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Burlington for its Comprehensive Annual Financial Report for the fiscal year ending June 30, 2018. The Certificate of Achievement is valid for a period of one year only. The compilation of this report required a substantial time investment by the Clerk/Treasurer’s Office, but we are proud to continue our commitment to expanded disclosures of our financial position and results of operations. City Charter, as well as State statues, requires an annual audit by independent certified public accounts. The City’s audit firm is Melanson Heath. The independent auditors’ report is located at the front of the financial section of this report. In addition, the audit was designed to meet the requirements of Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (the Uniform Guidance), as applicable. Information related to the Single Audit, including the Schedule of Expenditures of Federal Awards, findings 3 and recommendations, and auditor’s reports on the internal control structure and compliance with applicable laws and regulations, is not included in this year’s CAFR but is available in a separate report. Management’s discussion and analysis (MD&A) immediately follows the independent auditors’ report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it for additional narrative overview and analysis of the City’s activities. THE CITY OF BURLINGTON The source for this section is the Introduction to Official Statement, dated November 13, 2019. Description of the City The City of Burlington, Vermont (the “City”) is the largest city in Vermont and located in northwestern Vermont on the eastern shore of Lake Champlain directly across from northern New York State. The City is the commercial center of Chittenden County and encompasses 16 square miles. The City is 90 miles south of Montreal, Quebec, 220 miles northwest of Boston, Massachusetts, and 300 miles north of New York, New York. Highways serving Burlington include State Highways 2 and 7 and Interstates U.S. 89 and 189. The Lake Champlain Transportation Company operates ferries on Lake Champlain between Vermont and New York. The Burlington International Airport serves over 1.2 million passengers per year and accom- modates non-stop air service to all three New York City metropolitan area airports, Philadelphia, both Washington D.C. airports, Chicago, Atlanta, Charlotte, NC, Orlando/Sanford, FL, Detroit, and seasonally to Toronto. Passengers can reach nearly any destination world-wide with just one connection from Burlington. Bus service is provided by Greyhound Lines, Megabus, and Vermont Trans Lines (operated by Vermont Agency of Transportation). Freight service is provided by the Vermont Railway Cor- poration and Rail America. Green Mountain Transit, which represents Burlington, Essex, South Burlington, Shelburne, Williston, Winooski, Milton, Hinesburg and a portion of Colchester provides local bus service. LINK Express routes serve Montpelier, Middlebury, and St. Albans commuters. Form of Government Burlington was incorporated as a City in 1865. On November 7, 2000, voters approved amend- ments to the City Charter which provided for direct Mayoral appointment of department heads with City Council confirmation, clarified the Mayor’s authority as the City’s Chief Executive Officer, established the position of Chief Administrative Officer, and provided that City com- missions would become advisory except when authority was re-delegated by the City Council. 4 About the Burlington Community