COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE CITY OF WHITE PLAINS, NEW YORK FOR THE FISCAL YEAR JULY 1, 2009 - JUNE 30, 2010

PREPARED BY: THE OFFICE OF THE COMMISSIONER OF FINANCE

CITY OF WHITE PLAINS, NEW YORK COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30,2010

TABLE OF CONTENTS PAGE INTRODUCTORY SECTION - Letter of Transmittal ...... 1 GFOA Certificate of Achievement for Excellence in Financial Reporting ...... 9 Principal Officials ...... 10 Organizational Chart ...... 11 Fiscal Performance Goals ...... 12

FINANCIAL SECTION

Independent Auditor's Report ...... 19

Management's Discussion and Analysis ...... 21

Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets ...... 36 Statement of Activities ...... 38 Fund Financial Statements: Balance Sheet - Governmental Funds ...... 40 Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Assets ...... 41 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds ...... 42 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ...... 43 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund ...... 44 Statement of Net Assets - Proprietary Funds ...... A5 Statement of Revenues, Expenses and Changes in Net Assets - Proprietary Funds ... ; ...... 46 Statement of Cash Flows - Proprietary Funds ...... 47 Statement of Changes in Fiduciary Net Assets - Fiduciary Fund ...... 48 Notes to Financial Statements ...... 49

Combining and Individual Fund Financial Statements and Schedules: Schedule of Revenues and Other Financial Sources Compared to Budget - General Fund ...... 80 Schedule of Expenditures and Other Financing Uses Compared to Budget - General Fund ...... 82 Combining Balance Sheet - Nonmajor Governmental Funds ...... ; ...... 92 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ...... 96 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Library Fund ...... 99 CITY OF WHITE PLAINS. NEW YORK COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30. 2010

TABLE OF CONTENTS - (continued)

PAGE FINANCIAL SECTION - (continued)

Combined and Individual Fund Financial Statements and Schedules (continued): Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Debt Service Fund ...... 100 Project-length Schedule - Capital Projects Fund ...... 102 Schedule of Revenue and Expenses - Budget and Actual (Budgetary Basis) - Enterprise Fund ...... 108 Schedule of Revenues and Expenses by Department - Enterprise Fund ...... 109 Schedule of Revenues and Expenses - Budget and Actual (Budgetary Basis) -Internal Service Fund ...... 112 Statement of Changes in Assets and Liabilities - Fiduciary Fund ...... 114

STATISTICAL SECTION (UNAUDITED)

Financial Trends: Net Assets by Component - Last Eight Fiscal Years ...... 117 Changes in Net Assets - Last Eight Fiscal Years ...... 118 Fund Balances, Governmental Funds - Last Eight Fiscal Years ...... 120 Changes in Fund Balances, Governmental Funds - Last Eight Fiscal Years ...... 122 Tax Revenues by Source, Governmental Funds - Last Eight Fiscal Years ...... 124

Revenue Capacity: Assessed Valuation, State Equalization Rate, and Estimated Full Value of Real Property - Last Ten Fiscal Years ...... 126 Property Tax Rates per $1,000 Assessed Valuation - All Direct and Overlapping Governments - Last Ten Fiscal Years ...... 127 Principal Taxpayers ...... 128 Property Tax Levies and Collections - Last Ten Fiscal Years ...... 129 Constitutional Tax Limit ...... 130

Debt Capacity: Ratios of Outstanding Debt by Type - Last Eight Fiscal Years ...... 132 Direct and Overlapping Governmental Activities Debt - Last Eight Fiscal Years ...... 133 Computation of Legal Debt Margin ...... 134

Demographic and Economic Information - Demographic and Economic Statistics - Last Ten Fiscal Years ...... 136

Operating Information: Principal Employers ...... 138 Full-Time Equivalent Employees by Program - Last Ten Fiscal Years ...... 139 Operating Indicators by Program - Last Ten Fiscal Years ...... 140 Capital Asset Statistics by Program - Last Ten Fiscal Years ...... 141 CITY OF WHITE PLAINS, NEW YORK COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30,2010

TABLE OF CONTENTS - (continued)

PAGE SINGLE AUDIT SECTION:

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 ...... 143 Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133 ...... 145 Schedule of Expenditures of Federal Awards...... 148 Notes to Schedule of Expenditures of Federal Awards...... 150 Schedule of Findings and Questioned Costs ...... 151 Summary Schedule of Prior Audit Findings ...... 153

INTRODUCTORY SECTION

DEPARTMENT OF FINANCE MUNICIPAL BUILDING. 255 MAIN STREET. WHITE PLAINS, NEW YORK 10601

TEL: (914) 422-1233 • Fax: (914) 422-1273 ADAM T. BRADLEY MICHAELA. GENITO MAYOR COMMISSIONER

ROSEMARY CUCURULLO DEPUTY COMMISSIONER

TO THE HONORABLE MAYOR, MEMBERS OF THE COMMON COUNCIL AND CITIZENS OF THE CITY OF WHITE PLAINS, NEW YORK

In accordance with Section 58 of the City's Charter, submitted herewith is the Comprehensive Annual Financial Report (CAFR) for the City of White Plains for the fiscal year ended June 30, 2010.

The financial statements included in this report have been prepared by the City's Department of Finance. The City has responsibility for the accuracy of the data presented, including all disclosures. We believe that the financial and other information included in this report is accurate in all material respects and that the respective financial statements present fairly the financial position of the City and its component units. Management assumes full responsibility for the completeness and reliability of the information contained in this report based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed the anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.

The City's basic financial statements have been audited by O'Connor Davies Munns & Dobbins, LLP, a firm of licensed certified public accountants. The independent auditor's report, which can be found at the front of the financial section of this report, expresses their unqualified opinion that the City's financial statements for the year ended June 30, 2010 are fairly presented in all material aspects in accordance with generally accepted accounting principles (GAAP).

This report has also been prepared and organized to meet the requirements of the Government Finance Officers Association's Certificate of Achievement for Excellence in Financial Reporting program. In accordance with its' guidelines, the report is presented with four major sections; Introductory Section, Financial Section, Statistical Section, and Federal Awards Section.

The independent audit of the financial statements of the City of White Plains was part of a broader, federally mandated "Single Audit", conducted in conformity with the provisions of the federal Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments and Non-Profit Organizations. Information related to this Single Audit, including a schedule of federal financial assistance, the independent auditors' report on internal controls and compliance with applicable laws and regulations, schedule of findings, and related corrective action plans, is included in this report following the statistical section.

1 In addition, the Governmental Accounting Standards Board (GASB) requires the City's management to provide a narrative introduction, overview and analysis of the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal complements the MD&A and should be read in conjunction with it. The City's MD&A is included in the financial section of this CAFR immediately following the independent auditor's report.

PROFILE OF THE GOVERNMENT

The City is located in the south central portion of Westchester County approximately 22 miles north of New York City and encompasses an area of 10 square miles. It became the seat of Westchester County government in 1778 by State legislative act.

Founded in 1683, it became an incorporated village in 1866 and a city in 1916. It operates under the Mayor-Council form of government with the Mayor as the Chief Executive Officer of the City. Policy­ making and legislative authority are vested in the Common Council, which includes the Mayor and six Council members, all of whom are elected at large for four year terms. The Mayor, with Common Council approval, appoints the commissioners and directors of the City's departments. The Chief Fiscal Officer of the City is the Commissioner of Finance who is responsible for the supervision and administration of the financial affairs of the City.

The City of White Plains is empowered to levy a property tax on real properties located within its boundaries. It also functions in both a fiduciary and guarantor relationship with the County of Westchester and the White Plains City School District with respect to the collection and payment of real property taxes levied by such jUrisdictions.

The financial reporting entity includes all funds of the primary government of the City of White Plains, New York, and two discretely presented component units that are presented separately ("discretely") in the government-wide financial statements: the White Plains Cable Television Access Commission, and the White Plains Urban Renewal Agency. These component units are legally separate entities, but the City of White Plains is financially accountable for them. The City of White Plains also has two legally separate component units that are not presented in the financial statements since there are no financial activities to report: the White Plains Center Local Development Corporation and White Plains Housing Development Corporation.

The White Plains City School District and the White Plains Housing Authority are independent of the City of White Plains municipal government both in governance and operations and are, therefore, excluded from the City's annual financial report.

The City provides a full range of services including, but not limited to police and fire protection, refuse collection, street and sewer maintenance, snow and leaf removal, water distribution, traffic control, on and off street parking, building inspections, licenses and permits, vital statistics, library, community and recreational services. The City has a comprehensive recreational program serving all age levels, and has 150 acres of public parks and open space, including a waterfront park, 33 tennis courts, two outdoor swimming pools, and an ice-skating rink. The White Plains Public Library occupies an 80,000 square foot building in the downtown and contains more than 409,000 books, audio recordings, movies, magazines and other materials. Its public service space includes meeting and program rooms, a Museum Gallery and "The Trove", a state of the art children's section. The library sponsors hundreds of cultural, recreational, educational and public service programs throughout the year.

The City has legally adopted budgets for the General Fund, Library Fund, Debt Service Fund, Water Fund and Self Insurance Fund. Prior to January 15th of each year, the Budget Director provides all departments and agencies with instructions on submission of budget estimates for the ensuing fiscal

2 year. Departmental budget estimates must be submitted to the Budget Director no later than February 15th • Upon receipt of such submissions, the Budget Director begins departmental budget hearings to review the estimates and make revisions in accordance with the spending needs of the department and the total revenue available to the City. The Budget Director presents the proposed budget to the Mayor and members of the Common Council at the first Common Council meeting in April. Immediately thereafter, the Common Council begins its review and consideration of the proposed budget, including public sessions held by the Common Council during the months of April and May. The budgets are legally enacted through adoption of ordinances by the Common Council on or before May 30th • Adoption of the budgets is not subject to public referendum. . The City maintains a system of budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Common Council. The level of budgetary control (Le., the level at which expenditures cannot legally exceed the appropriated amount) is the major object of expenditure in a department within each fund.

The Commissioner of Finance may not disburse money unless it has been appropriated by the Common Council. No appropriations may be used for any purpose other than that for which it is authorized. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management.

Beginning with the fiscal year ending June 30, 2009 the City was required to implement GASB Statement No. 45, Accounting and Financial Reporling by Employers for Postemployment Benefits other than Pensions. These financial statements are issued in full compliance with these standards.

ASSESSING ECONOMIC CONDITION

Local Economy

The City of White Plains, New York is a suburb of New York City, located within the affluent County of Westchester. It serves as a major commuter hub as well as a suburban regional center due to its close proximity and accessibility to New York City. The City of White Plains is headquarters for many corporations, and functions as a major regional retail shopping center for the entire New York metropolitan area including Fairfield County, Connecticut.

Median household incomes within the City and the County are significantly higher than that of New York State as a whole. According to the year 2000 census, the City's median family income was $71,891 and the County's was $79,881, while the State's was $51,691. The City's population was 53,077. As of July 1, 2009, the City's population was estimated at 57,468. Despite the softening of the housinsf market nationwide, housing prices in White Plains as well as Westchester County continue to remain strong. At fiscal year ended June 30, 2010, the median price of a single family home in the City of White Plains was $586,700 compared to $643,200 at fiscal year ended June 30, 2009.

The City has a diverse and stable economy, with many employers located within the City, including Verizon, AT&T, IBM, Con Edison, New York Power Authority, Amalgamated Life Insurance, ITT, Bloomingdales, Nordstrom, Inc., Starwood Hotels and Resorts, J.P. Morgan Chase, Skadden Arps, Slate Meagher & Flom, LLP, White Plains Hospital, Burke Rehabilitation Center, Heineken, Disney Publications, and The Ritz Carlton Hotel.

Five enclosed shopping malls and major freestanding retailers have helped to make White Plains, with over 1,000 retailers, the center of retail activity for Westchester County and the broader multi-county market. With a combined area of almost four million square feet, retail stores in White Plains appeal to the consumer at all income levels. Major retailers include such highly-recognized names as Bloomingdale's, Nieman Marcus, Nordstrom, Macy's, Sears, Wal-Mart, Burlington Coat Factory, and Target. Smaller high-end shops located in The Westchester Mall include Tiffany's, Coach, and Eileen

3 Fisher. Total estimated average annual retail sales volume exceeds $3 billion. In addition to its strong retail sector with over 11 million square feet of office space, White Plains is home to many large corporations, such as Heineken, Amalgamated Life Insurance, ITT, and several banks and professional firms. Federal, state, and county operations utilize approximately 10% of the office space available in the City of White Plains.

Medical and educational services are growing sectors of the City's economy. There are three major hospitals: New York Presbyterian Westchester Campus, Burke Rehabilitation Center, and White Plains Hospital Center. Proximity to these hospitals has been a major draw for medica! professionals and support facilities. Colleges and universities have expanded in White Plains and include Berkeley College, The College of Westchester, Mercy College, Pace University, and Westchester Community College.

All of these sectors combine to make White Plains a regional center for corporate, finance, banking, legal services, health care, and higher education.

The housing market in White Plains continues to outperform both the State and region. This is largely due to the development of over 2,500 new housing units in high-rise and mid-rise buildings in and adjacent to the City's downtown, and an additional 1 ,000 units approved but not yet constructed. This new housing primarily serves a new up-scale market of urban residents who seek urban amenities like dining, entertainment and pedestrian access to both urban amenities and mass transportation. To ensure economic diversity within this housing market, the City's Affordable Housing Program has ensured that almost 10% of the new housing units constructed are affordable to moderate and middle income families. Over 344 affordable housing units have been approved under this program.

The White Plains Performing Arts Center, a 410-seat theater, provides the community with access to a full range of performing arts programs and activities, culturally enriching entertainment, unique programming, a conservatory theater, day camp programs, and a venue for the City's local community groups.

Unemployment rates have decreased over the previous year on all levels - national, New York State, Westchester County, and the City of White Plains. The City experienced lower unemployment rates than other levels of government. The City's unemployment rate (not seasonally adjusted) fell from 7% in June 2009 to 6.5% in June 2010; Westchester County dropped from 7.4% in June 2009 to 6.7% in June 2010, and New York State decreased from 8.6% to 8.1% June 2009 to June 2010. The national (seasonally adjusted) unemployment rate remained flat at 9.5%, June 2009 to June 2010. It is still too early to tell, but the decreases in unemployment rates from the previous year may indicate a turning point of the current recession, and we remain hopeful that unemployment rates will continue to decline.

The City has maintained a credit rating of Aa1 from Moody's Investors Service since 1988.

Over the past 10+ years, the City of White Plains has experienced a period of unprecedented economic growth and investment which has been aptly called a "renaissance." More than $3 billion in new mixed­ use and residential development has been completed or is in various phases of development throughout the downtown and surrounding areas. This development, along with the City's easy commute to New York City and Fairfield County, Connecticut, high quality transportation systems, retail and service industries, and recreational, educational and health facilities has further added to the City's strong economic base.

The City of White Plains, like many other cities throughout the country, has seen a recent slowdown of this growth due to the current recession. Despite the national recession, projects continue to move forward in the medical and housing sectors, including the White Plains Kensington Assisted Living Facility, North Street Community Assisted Living, 4 Cromwell Place Medical Offices, the White Plains Institute of Rehabilitation and Health Care, and a major expansion of White Plains Hospital Center. The $19 million, 750+ spaces Longview Municipal Parking Garage, which opened in November 2008, was

4 built as a public/private partnership between the City and White Plains Hospital Center to support local businesses and the expansion of the hospital center. The retail sector is seeing the re-occupancy of major retail space, including "The Metropolitan", a new retail center of approximately 60,000 square feet located on Main Street. Other new retailers include a Shop Rite store of approximately 75,000 square feet of The City Center, and a large Day Spa facility at the Pavilion Mall. The office sector is beginning to see new leasing activity as well. Due to the diversity of its commercial base, the City expects a full recovery in all sectors of its local economy, once the national economy improves.

Lana-Term Financial Planning and Major Initiatives

The City operates under the auspices of a comprehensive plan entitled "White Plains Vision - A Plan for the 21 st Century" which serves as a planning guide for the City. Updates and revisions to this 1997 plan were adopted by the Common Council in July 2006 to recognize and incorporate changes in the economic, social, and physical conditions of the City. The revised Comprehensive Plan will continue to serve as an important planning guide for the City well into the future.

In addition to its economic development, the City has invested in its public infrastructure to make the City a vibrant and "walkable" city, which is active day and night and addresses the needs of both its residents and visitors who come to the City to work, shop, and enjoy the City's restaurants and entertainment. The City is currently planning for the revitalization of its Lexington Avenue/Post Road corridor which will begin with the installation of new streetscapes on Lexington Avenue. Federal funding in the amount of $1 million has been secured for this project which will include new sidewalks, lighting fixtures, and benches.

The City has also completed a feasibility study on the development of a trolley system within the downtown area. This system is expected to benefit the City in terms of traffic mitigation, air quality improvement, and economic development in the downtown area.

As mentioned earlier, the City has undergone a recent period of growth and expansion, particularly regarding new residential development in and around the downtown area. The most recently completed project, including the cleanup of a Brownfield site, developed as part of an urban renewal redevelopment project among the City of White Plains, the White Plains Urban Renewal Agency, and the developer 221 Main Street LLC, is the $650 million Ritz Carlton hotel and residences. Tower I includes a lUXUry 123 room Ritz Carlton hotel and 155 residential condominium units, which are fully sold. Tower II includes approximately 5,000 square feet of office space and an additional 177 residential condominiums, which are currently being marketed. Renaissance Square, a street connecting the City's two major eastlwest arteries was completed as part of this project at no cost to the City.

By Charter, the City of White Plains maintains a Six-year Capital Improvement Program which serves as its planning document to ensure that its facilities, eqUipment, and infrastructure are well maintained and operating in peak condition. Under the guidance of a Capital Projects Board, this process gives the City the ability to plan for its capital needs and allocate short and long term resources accordingly. As part of this process, the City identifies and quantifies the operational costs associated with its capital projects and budgets resources accordingly. In addition, the City's Rolling Stock Committee monitors the condition of all City equipment and vehicles and makes recommendations on their replacement. The City maintains a vehicle replacement policy which serves as its fleet replacement guide over a ten-year period. The City's fiscal 2009-2010 Capital Improvement Program anticipates $8.3 million in capital projects and $1.2 million in rolling stock replacement. Included in this $8.3 million is $860,000 for various parking facility improvements, $650,000 in municipal building improvements and $6.45 million for infrastructure and water system improvements. The remainder of the program will finance improvements to the City's parks, traffic systems and technology. Due to fiscal constraints, the City's fiscal year 2009- 2010 rolling stock program funded moderate and heavy duty vehicles only. The City did not fund passenger vehicle additions or replacements including that of police vehicles. The purchase of these vehicles will be addressed as funding becomes available.

5 Since the beginning of the City's Renaissance in 1998, the City has undertaken over $100 million in major capital projects in support of the City's redevelopment. Approximately 64% of the funding for these projects has come from private sector investment or Federal, State and County grants, with the City funding approximately $43 million, Urban Renewal Agency State grant funding approximately $6 million, private developers and White Plains Hospital Center funding approximately $53 million, and Federal, State and County funding approximately $5.3 million. These capital projects include the construction of three major parking facilities, new roads and sidewalks, roadways, utility infrastructure upgrades, and new cultural facilities.

Financial Policies

The City operates under a host of comprehensive financial policies. The City maintains an investment policy adopted by the Common Council that complies with Sections 10 and 11 of New York State General Municipal Law, which emphasizes a conservative financial approach to the investment of municipal funds and collateralization of deposits in excess of FDIC insurance coverage. The City's investment policy is reviewed annually and was last amended in fiscal 2009-2010.

The City maintains a procurement policy adopted by the Common Council in accordance with Section 104-b of New York State General Municipal Law. This policy outlines all bidding and procurement procedures that City departments must adhere to when purchasing goods and services. The Department of Purchasing is responsible for the administration of this policy.

The City is self insured for General Liability, Workers' Compensation and other risks, purchasing insurance policies where it is prudent and cost effective The City continuously assesses its risks, and annually reviews and determines the appropriate mix of self-insurance and outside coverage.

The City maintains a set of Fiscal Performance Goals, which were adopted by the Common Council in 1981and last amended in fiscal 2009-2010. These goals establish written poliCies for guiding the City's financial management practices. While some performance goals are specific and limit certain types of financial activity, the goal statements are not intended to restrict management's ability or responsibility to respond to emergency or service delivery needs above andlor beyond the limitations established by the fiscal performance goals. The fiscal performance goals immediately follow this transmittal letter.

The City continuously monitors its budget and prepares quarterly unaudited financial reports and multi­ year financial forecasts. As a result, the City is able to plan for all of its projects and purchases in accordance with available financial resources.

AWARDS AND ACKNOWLEDGMENTS

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 White Plains for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2009. This was the 29th consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report whose contents must conform to GFOA standards. 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 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.

The City also received the GFOA's Distinguished Budget Presentation Award for its annual budget document for the 2009-2010 fiscal year. The City of White Plains was the first municipality in New York State to receive this award and has done so for 26 consecutive years. In order to qualify for the

6 Distinguished Budget Presentation Award, the City's budget document was judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide, and as a communication device.

The preparation of this report could not have been accomplished without the efficient and dedicated service of the entire staff of the Finance Department, a very competent group of professionals dedicated to their work and the long term fiscal health of the City. All City departments were instrumental in providing the data necessary to compile this very thorough and comprehensive report. Appreciation is also extended to the City's independent auditors for their professionalism and service. Finally, our thanks are extended to the Mayor and members of the Common Council for their foresight, determination and support in establishing public policy and legislative initiatives that help preserve and enhance the viability of our City.

Dated: November 12,2010

Respectfully Submitted, ~~?~~ Mrcha~1 A. Genito Commissioner of Finance

7 THIS PAGE INTENTIONALLY LEFT BLANK·

8 Certificate of Achievement for Excellence in Financial Reporting Presented to City of White Plains New York

For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30,2009 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association ofthe United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest S1andards in government accounting and financial reporting.

President ~/.~, Executive Director

9 MAYOR

Adam T. Bradley

COMMON COUNCIL

Thomas M. Roach, President

Benjamin Boykin II

David Buchwald

Milagros Lecuona

Dennis J. Power

Beth N. Smayda

FINANCE DEPARTMENT

Michael A. Genito, Commissioner Rosemary Cucurullo, Deputy Commissioner Carol Endres, Chief Accountant John Freiberger, Accountant Anthony Pena, Accountant

INDEPENDENT AUDITOR

O'Connor Davies Munns & Dobbin, LLP Bennett Kielson Storch DeSantis Division

10 CITY OF WHITE PLAINS

II VOTERS

Common Council --ELECT--- Mayor II

APPOINTS APPOINTS

City Court Board of Library Board of Examining Building Plan Judge Ethics Trustees Electrical Board of Motion ReviewBd. Pictures

Conservation Medical Recreation Capital Budget & Mgmt. Board Advisory Board Advisory Projects Bd. Officer Committee ~

Design Examining Bd. examining Bd. Review Board of Plumbers of Stationary Engineers

Housing Planning Traffic Authority Board Commission

Urban Renewal Youth Youth Bureau Agency Board Director

ZOning Board Beautificatlon Building Code of Appeals Committee Appeals Comm.

Memoriallzation Committee

Appointed by Mayor and Common Council

BOARD OF BUDGET CABLE TV COMMISSIONER CITY ASSESSMENT DIRECTOR ACCESS OF BUILDING CLERK 0 REVIEW COMMISSION CORPORATION COMMISSIONER INFORMATION COMMISSIONER PERSONNEL COMMISSIONER COUNSEL OF FINANCE SERVICES OF OFFICER OF DIRECTOR PARKING PLANNING

DIRECTOR OF COMMISSIONER COMMISSIONER COMMISSIONER COMMISSIONER COMMISSIONER OF PUBLIC OF PUBLIC OF OF RECREATION OF TRAFFIC CABLElV SAFETY WORKS PURCHASING AND PARKS ACCESS COMM.

11 CITY OF WHITE PLAINS

FISCAL

PERFORMANCE

GOALS

ADOPTED MAY 18,1981

AMENDED MAY 6, 1985

MAY 3,2010

12 PREFACE

Fiscal Performance Goals adopted by the Common Council on May 18, 1981 and amended on May 6, 1985 represent written policies to guide the City's financial management practices. While some of the performance goals are specific and will limit certain types of financial activity, the goal statements are not intended to restrict the Common Council's ability and responsibility to respond to emergencies or service delivery requirements above or beyond the limitations established by the Fiscal Performance Goals.

REVENUE PERFORMANCE GOALS

• The City will maintain a diversified and stable revenue system as protection from short-run fluctuations.

• The City will estimate annual revenues on an objective and reasonable basis. The City will develop a method to project revenues on a multi-year basis.

• The City will use one-time or special purpose revenues for capital expenditures or for expenditures required by the revenue, and not to subsidize recurring personnel, operation and maintenance costs.

• The City will establish, and annually re-evaluate, all user charges and fees at a level related to the cost of providing the services.

• The City will endeavor to reduce reliance on the property tax by:

a) expanding and diversifying the City tax base with commercial, retail and residential development;

b) seeking and developing additional revenue sources;

c) seeking legislative support for local option taxes.

• The Water Fund of the City will maintain revenue which will support the full direct and indirect costs of the Fund.

OPERATING EXPENDITURES PERFORMANCE GOALS

• The Budget Director will propose and the Common Council will adopt and maintain a balanced budget in which expenditures will not be allowed to exceed reasonable estimated resources and revenues.

• The City will pay for all current operation and maintenance expenses from current revenue sources.

• The operating budget will provide for the adequate maintenance of capital assets and eqUipment.

• The budget will provide for adequate funding of all employee benefit programs and retirement systems.

13 OPERATING EXPENDITURES PERFORMANCE GOALS· (continued)

• The City will maintain a budgetary control system which will enable it to adhere to the adopted budget. This includes a centralized purchasing effort and record-keeping system to be adhered to be all programs and activities receiving annual Common Council appropriations.

• The City will prepare and maintain a system of regular monthly fiscal reports comparing actual revenues and expenditures to budgeted amounts.

• The City will develop and implement an effective risk management program to minimize losses and reduce costs. The Common Council will ensure that adequate insurance programs are in place. This shall include unemployment and workers' compensation costs.

• The City will encourage delivery of services by other public and private organizations whenever and wherever greater efficiency and effectiveness can be expected, as well as to develop and internally use technology and productivity advancements that will help reduce or avoid increasing personnel costs. The intent is to control personnel costs as a proportion of the total budget, to more productively and creatively use available resources, and to avoid duplication of effort and resources.

RESERVE PERFORMANCE GOALS

• The City will establish annually in the operating budget a reserve for financing to:

a) provide for settlement of pending labor contract negotiations;

b) provide for temporary funding of unforeseen needs of an emergency or non-recurring nature;

c) permit orderly budgetary adjustments when revenues are lost through the actions of other governmental bodies;

d) provide the local match for public or private grants;

e) meet unexpected small increases in service delivery costs.

• The reserve for financing will be budgeted at a level sufficient to provide for settlement of pending labor contract negotiations plus an amount not exceed one percent of the proposed tax budget. Use of the contingency funds will only be by action of the Common Council. The reserve for financing shall be separate from the carryover fund balance.

• The City will maintain an employee position control reserve account. Funding will be provided from salary lines plus related benefits as positions become vacant during the fiscal year. Funding for personnel to fill authorized but unfilled budgetary salary positions will be .provided from the position control reserve account. The Budget Department will be responsible for the control of the reserve account. The Personnel Department will be responsible for ensuring that positions are filled only when adequate funds are available in the reserve account.

14 RESERVE PERFORMANCE GOALS - (continued)

• The City will maintain an unrestricted fund balance in an amount necessary to maintain adequate cash flow and to reduce the demand for short-term borrowing. The unrestricted fund balance should be at least four( 4 %) percent of the general fund operating budget, and shall be separate from the reserve for financing. Unrestricted fund balance in excess of four (4%) percentage of the general fund operating budget maybe used for balancing the proposed general fund operating budget in the succeeding fiscal year. Unrestricted fund balance that falls below four (4%) percent ofthe general fund operating budget should be addressed within the succeeding fiscal year

• The Common Council is the highest level of decision-making authority and may commit and appropriate portions of fund balance by adopted resolution and/or ordinance. The Common Council has designated the Commissioner of Finance as the official having authority to assign portions of fund balance categories based on generally accepted accounting principles. The City will expend funds in the following order: restricted first, then committed, then assigned, and lastly, unassigned.

INVESTMENT PERFORMANCE GOALS

• The City will develop a cash flow analysis of all funds on a regular basis. Collections, deposits and disbursements of all funds will be scheduled to ensure maximum cash availability.

• The City will obtain the maximum possible return on all cash investments.

• Where permitted by law, cash from several separate funds and sources will be pooled to maximize investment yields. Interest will be credited to the sources of the invested monies.

• The Department of Finance will provide quarterly information to the Common Council concerning investment performance.

CAPITAL IMPROVEMENTS PERFORMANCE GOALS

• Capital Improvements will be based on long range projected needs rather than on immediate needs in order to minimize future maintenance, replacement, and capital costs.

• All capital improvements will be made in accordance with the City's approved five year capital improvement program. The capital improvement program shall be up-dated annually.

• The development of the capital improvement program will be coordinated with the operating budget in order to maintain a reasonably stable total tax levy.

• The City will identify the estimated cost and potential funding sources for each capital project proposed before submission to review bodies and the Common Council. Future operating costs associated with a proposed capital improvement will be estimated before a decision is made to implement a project.

• Federal, State and other intergovernmental and private funding sources shall be sought out and used as available to assist in financing capital improvements.

15 DEBT PERFORMANCE GOALS

• The City will limit long-term debt to only those capital improvements that cannot be financed from current revenues.

• The maturity date for any debt will not exceed the reasonably expected useful life of the project so financed.

• Thirty percent of the City's available general obligation debt limit shall be reserved for emergency purposes.

• As a means of further minimizing the impact of debt obligations on the City taxpayers:

a) the total net indebtedness shall not exceed five percent of the full assessment value of taxable property;

b) long-term debt shall not exceed $1,000 per capita;

c) these limitations shall not apply to any debt incurred for emergency purposes.

• The City will avoid the issuance of Budget, Tax and Revenue Anticipation Notes.

• The City will use special assessments, revenue bonds, and/or any other available self­ liquidating debt measures instead of general obligation bonds where and when possible and applicable.

• The City will annually prepare an official statement and an annual information statement to be used in connection with all sales of bonds and notes.

• The City shall encourage and maintain good relations with financial and bond rating agencies, and will follow a policy of full and open disclosure on every financial report and bond prospectus.

FINANCIAL REPORTING PERFORMANCE GOALS

• The City will adhere to a policy of full and open public disclosure of all financial activity. The proposed tax budget will be prepared in a manner to maximize its understanding by citizens and elected officials. Copies of financial documents will be made available to all interested parties. Opportunities will be provided for full citizen participation prior to final decisions on adopting the budget. Detailed budgetary information; i.e. specific sources of revenue and objects of expenditure, will be available to the public and elected officials.

• The City's accounting system will maintain records on a basis consistent with accepted municipal accounting standards.

• The Commissioner of Finance will prepare regular quarterly and annual financial reports presenting a summary of financial activity by major types of funds and programs.

16 FINANCIAL REPORTING PERFORMANCE GOALS - (continued)

• The City will prepare the Comprehensive Annual Financial Report in conformity with generally accepted governmental accounting principles and financial reporting practices.

• The City will employ an independent public accounting firm to perform an annual audit of all Funds, Authorities, Agencies, and Grant Programs, and will make the annual audited report available to the general public, bond and financial consultants, and other interested citizens and organizations. The audit shall be completed and submitted to the Common Council no later than the stated meeting in December in the same year.

• The City will conduct its annual audit in compliance with the single audit concept as set forth by the Federal Office of Management and Budget.

• The City each year will submit its Comprehensive Annual Financial Report to the Government Finance Officers Association for review to achieve the Certificate of Achievement for Excellence in Financial Reporting.

17 THIS PAGE INTENTIONALLY LEFT BLANK

18

FINANCIAL SECTION

O'Connor Davies Munns & Dobbins, IIp ACCOUNTANTS AND CONSULTANTS

INDEPENDENT AUDITORS' REPORT

To the Honorable Mayor and Common Council of the City of White Plains, New York:

We have audited the accompanying financial statements of the governmental activities, the business-type activity, the aggregate discretely presented component units, each major fund and the aggregate remaining fund information of the City of White Plains, New York as of and for the year ended June 30, 2010, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these basic 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 Govemment 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 of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, we express no such opinion. An audit also includes 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, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our 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 business-type activity, the aggregate discretely presented component units, each major fund and the aggregate remaining fund information of the City of White Plains, New York as of June 30, 2010, and the respective changes in financial position and cash flows, where applicable, thereof, and the respective budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Govemment Auditing Standards, we have also issued our report dated November 10, 2010 on our consideration of the City of White Plains, New York'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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Govemment Auditing Standards and should be considered in assessing the results of our audit.

One Barker Avenue, White Plains, NY 10601 Tel: 914-421-5600 Fax: 914-421-5099 www.ODMD.com

19 Managemenfs Discussion and Analysis is not a required part of the basic financial statements, but is supplementary information required by the Governmental Accounting Standards Board. We applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.

As described in Note 1 to the basic financial statements, the City adopted the provisions of Governmental Accounting Standards Board Statement No. 54, "Fund Balance Reporting and Govemmental Fund Type Definitions" as of and for the year ended June 30, 2010.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of White Plains, New York's basic financial statements. The accompanying financial information listed as combining and individual fund financial statements and schedules in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements of the City of White Plains, New York. The accompanying schedule of expenditures of federal awards is also presented for purposes of additional analysis as required by OMB Circular A-133, and is not a required part of the basic financial statements of the City of White Plains, New York. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The information listed in the statistical section has not been subjected to the auditing procedures applied in our audit of the basic financial statements, and accordingly, we express no opinion on it.

~/e,NIIIIU lJfJV~ 1t1/JfAtb ( l:bbb~/ UtP O'Connor Davies Munns & Dobbins, LLP November 10, 2010

20 CITY OF WHITE PLAINS, NEW YORK MANAGEMENT'S DISCUSSION AND ANALYSIS Fiscal Year Ended June 30,2010

The City of White Plains, New York ("City") presents this Management's Discussion and Analysis ("MO&A") as an overview of the City's financial activities for the fiscal year ended June 30, 2010. This MD&A focuses on current year activities, resulting changes to net assets, and currently known facts, and should be read in conjunction with the transmittal letter beginning on page 1, and the City's financial statements beginning on page 40, including the notes to the financial statements.

Financial Highlights

• Assets of the City exceeded its liabilities by $207,875,927 (net assets) at June 30,2010. Of this amount, a negative $14,505,239 represents unrestricted net assets.

• For the fiscal year ended June 30, 2010, the City's total net assets decreased $21,513,276 or 9.4% from the prior fiscal year. Governmental activities' net assets decreased by $21,618,497, while business-type activity increased by $105,221.

• Unrestricted net assets decreased $14,745,271 from the prior fiscal year, primarily due to the recognition of other post employment benefit (OPES) obligations as required by Governmental Accounting Standards Soard ("GASS") Statement No. 45 Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions ("GASS 45").

• At June 30, 2010, the City's governmental funds reported combined fund balances of $20,576,444. Of this amount, $1,570,429 is not in spendable form or is required to be maintained intact. The remaining $19,006,015 of fund balance is in spendable form with various levels of spending constraint: restricted, committed, assigned, and unassigned.

• Total General Fund expenditures exceeded General Fund revenues by $2,510,764.

• At June 30, 2010, the City's total General Fund balance was $16,946,070, a decrease of 12.9% from the prior fiscal year, and the General Fund balance available for subsequent year appropriation was $3,689,222, a decrease of 58.5% from the prior fiscal year.

• The City's total bonded debt at June 30, 2010 was $87,656,825, an increase of 5.8% from the prior fiscal year.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the City's basic financial statements, which consist of three components: 1) the government-wide financial statements, 2) the fund financial statements, and 3) the notes to financial statements. This report also includes supplementary information, which is intended to give the reader additional detail in support of the basic financial statements.

21 I Management's Discussion & Analysis I

Govemment-Wide Fund Financial Statements Financial Statements

Notes to the Financial Statements

Supplementary Infonnation Other than MD&A

Government-wide Financial Statements

The government-wide financial statements present the City as a single, unified entity and are intended to give the reader a broad perspective of the City's fiscal condition. These statements are in accordance with GASB Statement No. 34 Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments and resemble the financial statements of a private sector entity. Included in the government-wide financial statements are the Statement of Net Assets and the Statement of Activities.

The Statement of Net Assets presents financial information on all of the City's assets and liabilities, with the difference being reported as net assets. This statement reports all of the City's assets (cash and non-cash) and its known liabilities, both current and long-term. The purpose of this statement is to give the reader an understanding of the City's net worth. Over time, increases or decreases in the City's net assets may serve as an indicator of whether the financial position of the City is improving or deteriorating. However, before such a determination can be made, other financial and nonfinancial factors need to be considered, such as changes in the City's property tax base and the condition of its infrastructure and capital assets.

The Statement of Activities presents information indicating how the City's net worth has changed during the fiscal year. Revenues and expenses are reported by activity to give the reader an understanding of how each of the government's activities is being supported. All changes in net assets are reported as soon as the underlying event occurs, regardless of the timing of related cash flows. Revenues and expenses are reported for all items that are known, even though they may not affect the actual cash flow of the City until a future year (e.g., uncollected taxes, earned but unused vacation, tax certiorari liabilities, and other post employment benefit obligations). This method of accounting is known as the accrual basis of accounting and is different from the modified accrual basis of accounting used in the City's fund financial statements. The intent of the government-wide financial statements is to give the reader a long-term view of the City's financial condition.

22 Each of the government-wide financial statements distinguishes "governmental activities" of the City that are principally supported by taxes and intergovernmental revenues from "business-type activities of the City that recover all or a significant portion of their costs through external user fees and charges. Governmental activities includes basic services provided by the City, such as the work of elected officials and general government services (licenses and permits, birth, death, and marriage certificates, etc.), public works, parking, public safety, recreation and culture, and community services. The City's Water Fund is a business-type activity.

The City's government-wide financial statements include not only the statements of the City itself (known as the primary government), but that of its legally separate component units for which the City is financially accountable. Financial information for these component units is reported separately ("discretely presented") from the financial information presented for the primary government.

The White Plains Urban Renewal Agency and the White Plains Cable Television Commission are reported in the government-wide financial statements as discretely presented component units.

The Government-wide financial statements can be found beginning on page 36 of this report.

Fund Financial Statements

A fund is a grouping of related accounts that are used to maintain control over resources that have been segregated for a specific purpose or set of objectives. The City, like other governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the City's funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds

Most of the City's basic services are reported in the governmental funds. The activities reported are essentially the same as those presented in the governmental activities section of the government-wide financial statements. However, unlike the government-wide financial statements, the governmental fund financial statements focus on near-term inflows and outflows of spendable resources (the budget), as well as on balances of spendable resources available at year end (fund balance). Such information may be useful in assessing a government's near-term financing requirements.

Since 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 City'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 19 individual governmental funds. Only information for the City's two major funds are presented separately in the governmental fund Balance Sheet and in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balance. The City's two major funds are the General Fund and the Capital Projects Fund.

The City's 17 other governmental funds are considered nonmajor funds. The financial information for these funds is combined and reported in the aggregate as "nonmajor governmental funds."

23 Individual fund data for each of these funds is in the combining statements, which can be found in the Supplemental Information section of this report.

The City adopts annual budgets for its General Fund, Library Fund, and Debt Service Fund. Capital projects budgets are adopted individually in accordance with the City's Capital Improvement Program. Individual budgetary comparison information for the General Fund can be found beginning on page of this report.

Proprietary Funds

Proprietary funds are operated and accounted for much like a private-sector business. The proprietary fund category includes "enterprise funds·, which are used to report any activity for which a fee is charged to external users for goods or services, and "internal service funds", which are used to report any activity for which a fee is charged to internal users for goods or services. The Water Fund is an enterprise fund, charging customers for the supply and use of City-provided water. The services provided by the Water Fund have been classified as business-type activities in the government-wide financial statements because they predominantly benefit external customers. The Self Insurance Fund is an internal service fund, charging other City departments for costs related to risk management and insurance services. The services provided by the Self Insurance Fund have been classified as governmental activities in the government-wide financial statements because they predominantly benefit governmental, rather than business-type, functions.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail and with the addition of a statement of cash flows. The Proprietary Fund financial statements can be found beginning on page 45 of this report.

Fiduciarv Funds

Fiduciary funds are used to report assets held in a trustee or agency capacity for others. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support City programs. The City maintains one fiduciary fund: the Agency Fund. The resources of the Agency Fund are held by the City in a custodial capacity for individuals, private organizations and other governments. The Fiduciary Fund financial statements can be found beginning on page 48 of this report.

Notes to Financial Statements

The notes to financial statements provide additional information that is essential for fair presentation and that is not otherwise displayed on the face of the financial statements. As such, the notes are an integral part of the basic financial statements and should be read in conjunction with the financial statements. The notes focus on the primary government - specifically, its governmental activities, bUSiness-type activities; major funds, and non major funds in the aggregate. Information concerning the City's component units is also provided in the notes. The notes to the financial statements can be found beginning on page 49 of this report.

Other Infonnation

In addition to the basic financial statements and notes to the financial statements, this report contains supplementary information beginning on page 80. This supplementary information gives the reader further detail on the data presented in the basic financial statements.

Included in this information are the combining non major governmental fund statements, the project length schedule for the Capital Projects Fund and the OMB Circular A-133, Audits of States, Local

24 Governments and Non-Profit Organizations compliance audit of Federal awards programs.

Government-wide Financial Analysis

Over time, net assets may serve as a useful indicator of a government's financial position. For the fiscal year ended June 30, 2010, the City's assets exceeded liabilities by $207,875,927, a 9.4% decrease from the prior fiscal year.

City of White Plains, New York Net Assets

June 30, 2010 JUDe 30, 2009

Business- Total Business- Total Governmental type Primary Governmental type Primary Activities Activity Government Activities Activity Government

Current assets $67,366,686 $8,976,021 $ 76,342,707 $ 70,882,603 $ 6,997,373 $ 77,879,976 capital assets, net 214,2~9,1~7 30,546.244 304,805,401 281,3~,840 30,882,011 312,20~,857 Total assets 341625 843 39,522.265 381,148,108 352.206,443 31.819,390 390.085,833

Current liabilities 43,434,190 2,150,298 45.584,488 48,260,284 3,015,454 51,275,738 Long-Term liabilities 114,923,842 1~,763,~ 12Z681.693 99,O~28~8 IOJ~I,034 lQ2,4~O,822 Total Liabilities 158358032 14.214,142 113,2'72.181 141.320.142 13,376.488 160,696.630

Net assets: Invested in capital assets, net of related debt 197,909,708 18,379,290 216,288,998 203,504,702 19,214,880 222,719,582 Restricted 6,092,168 6,092,168 6,429,589 6,429,589 Unrestricted (~134,1m) ~8,833 (14,505.232> (~,041.22!!l 5J88,022 ~Jl32 Total Net assets S1832611104 ~6011123 S2071175227 $204 11116 3111 $24 S!l2 2!l2 $222 3112 203

The largest portion of the City's net assets reflects its investment in capital assets (e.g., land, buildings and facilities, machinery and eqUipment, rolling stock and infrastructure), less accumulated depreCiation and any outstanding debt that was used to acquire those assets. The City uses these capital assets to provide a variety of services to its citizens and as a result these assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources used to repay this debt must be provided from other sources, since the capital assEtts themselves cannot be used to liquidate these liabilities.

An additional portion of the City's net assets is restricted and represents resources that are subject to external restrictions on how they may be used. The City's unrestricted net assets decreased $14,745,271 from the prior fiscal year primarily due to the recording of the City's OPES obligation and the use of fund balance in fiscal year ended June 30, 2010.

25 City ofWhite PlaiDS, New York Changes in Net Assets June 30, 2010 June 30, lOO9

Business- Total Business- Total Governmental type Primary Governmental type Primary Activities Activity Government Activities Activity Government

Revenues: Program revenues: Charges for services $ 33,845,820 $ 9,025,351 $ 42,871,171 $ 32,371,882 $ 9,324,200 $ 41,696,082 Operating grants and contributions 9,601,508 7,651,394 7,651,394 Capital grants and contributions 2,112,478 983,792 983,792 General revenues: Taxes and related items 93,000,803 93,669,088 93,669,088 Intergovernmental 7,268,071 9,310,919 9,310,919 Other 2,901,660 12Q,80~ 2,257,197 204,481 3,161,618 Total Revenues 148,7J!!.340 9.216,1~{i 146,944,272 2..~2Mlll 15{i,472,95J Expenses: Council and Boards 936,100 2,773,252 2,773,252 General Government 28,737,398 26,379,148 26,379,148 Public Works 37,256,161 38,946,839 38,946,839 Parking 10,979,456 11,668,608 11,668,608 Public Safety 63,070,957 61,203,429 61,203,429 Community Services 26,029,490 28,002,894 28,002,894 Interest 3,339,275 3,462,914 3,462,914 Water 9,11D,9J~ 9,Dll,~57 9,011,557 Total Expenses 17DJ4Un 9,110,9J5 172,4JZ.!)84 9,011,551 1111.448,641

Changes in Net Assets (21,618,497) 105,221 (25,492,812) 517,124 (24,975,688)

Net Assets, Beginning 204,1I11{i.3Dl 24,~~2m ~!!.379,Ul 23,285.178 254.364,891

Net Assets, Ending $183 267 804 $24608 123 $204886301 $24 502902 $229389203

Governmental Activities

For the fiscal year ended June 30, 2010, net assets for governmental activities decreased $21,618,497 from the prior fiscal year for an ending balance of $183,267,804. This decline is primarily a result of the implementation of GASS Statement No. 45 Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, which required the City to recognize post employment health care expenses of its current and future retirees. The remainder of the decline is due to the use of fund balance in the General Fund. For the year ended June 30, 2010, the City's OPES obligations of $20,060,000 are reflected as a liability on the City's financial statement, and accordingly, was a prime factor in the decrease in unrestricted net assets.

Total governmental activities revenues were $148,730,340, an increase of 1% from the previous fiscal year total of $146,944,272. Thirty percent of these revenues were program revenues (departmental revenue) and 70% came from taxes and other sources. The City's major revenue sources are as follows:

• $47,358,459 - Property taxes • $43,533,909 - Sales tax • $ 1,548,828 - Mortgage Tax • $ 5,719,243 - State aid not restricted to specific programs • $33,845,820 - Charges for Services • $ 2,901,660 - Other

26 Increases in governmental activities revenues over the prior fiscal year of $1,596,069 were noted in property taxes, $1,473,938 in charges for services, and $1,950,114 in operating grants and contributions. The increase in property tax revenue was primarily due to the 6.5% rate increase adopted with the fiscal 2009-2010 budget. The increase in charges for services reflects the first time billing of annual fire inspection fees, and the sale of transferrable taxi medallions and towing medallions. Operating grants and contributions increased due to an increase in the availability and participation in grants for Public Safety and Youth Bureau and a grant from the Federal Emergency Management Agency ("FEMA") for reimbursement of costs associated with the March 2010 storm .

Revenue decreases are noted in sales tax ($2,834,956), mortgage tax ($785,519), and New York State Aid to Municipalities ("AIM") ($1 ,257,329). The decline in sales tax is consistent with sluggish retail activity. Mortgage recording tax decline can be attributed to the reduction in home sales and refinancing due to the national recession and the availability of credit by the banking industry. The decrease in AIM is mainly due to the elimination of accelerated payments by New York State, which provided additional revenue in prior years.

Total expenses for governmental activities were $170,348,837, a decrease of $2,088,247 from the prior fiscal year. Increases are noted for General Government ($2,358,250) and Public Safety ($1,867,528). These increases are mainly noted in salary and salary related items, including pension and health benefits costs. Included in health benefits costs is the City's OPEB liability required under GASB Statement No. 45. Declines are noted in Public Works ($1,690,678), Parking ($689,152) and Community Services ($1,973,404). The decrease in expense is due primarily to mid-year budget and work force reductions.

Expe:ns e:s A.nd Pre>g r .arTll R e " e:., ..... es

Gove rnrT"l e n tal A ctivit i es

70,000,000

60,000,000

50,000,000

40,000,000

30,000,000

20,000,000

10,000,000 o Counci l Public Parking Public Community In terest and Government Works Department Safety Services on Boards Debt Revenues by Source· Governmental Actlvltios

Operating grnnts and contributi ons 6% Capl'Iat grant!> and contributions 1%

Charges for SefVlces 23%

Other 2%

Inlorgovernmental 5%

Taxes and related rtems 63%

27 Business-type Activity

Total net assets for the business-type activity (Water Fund) increased $105,221 (0.4%) over the prior fiscal year for an ending balance of $24,608,123. Charges for services decreased $298,849. The City enacted an 8% water rate increase with the adoption of the fiscal year 2009-2010 budget. This increase was offset by conservation measures implemented by commercial and residential users and adjustments for overpayments in prior periods. At June 30, 2010, total net assets were $24,608,123 of which $6,228,833 was unrestricted and $18,379,290 was invested in capital assets, net of related debt. Revenues totaled $9,216,156, of wh ich $9,025,351 (98%) represented charges for services (program revenue) and the remaining $190,805 (2%) other sources. Total expenses were $9,110,935, an increase of 1.1 % over the previous year. Even though there were mid-year budget cuts and work force reductions, there were still increases over the prior year in salary, related benefits (including the accrual of the OPEB obligation), and the City's cost of purchasing water.

Expense and P r ogram Revenues

Business-type Activ ity

9,220,000

9,200,000 9,180,000 ------1 D Expenses 9,160,000 Revenues 9,140,000

9,120,000 9,100,000

9,080,000

9,060,000 Water

Revenues by Source - Business-type Activity

Charges for Services - 98%

28 Financial Analysis of Governmental Funds

As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

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, spendable fund balance may be a useful measure of a government's net resources available for spending at the end of the fiscal year.

At June 30, 2010, the City's governmental funds reported combined fund balances of $20,576,444. Of this amount, $1,570,429 is nonspendable, $1,560,429 of which is not in spendable form (inventory, prepaid items, and long-term receivables), and $10,000 of which represents an endowment that is required to be maintained intact in perpetuity. The remaining $19,006,015 of fund balance is in spendable form as follows; $2,094,577 is restricted to specific uses by laws or regulations, debt covenants, grantors, and/or contributors; $1,853,075 has been committed by the Common Council for costs related to contracts, recreation and open space, and parking improvements; $14,348,267 has been assigned by the Common Councilor Commissioner of Finance for purchase orders, tax certiorari, and appropriations for the subsequent year's budget. The remaining $710,096 of spendable fund balance is unassigned to any specific purpose.

General Fund

The City's main operating fund is the General Fund and the majority of the City's programs and activities are supported by this fund. At June 30,2010, total fund balance of the General Fund was $16,946,070. Of this amount, $ 1,559,937 is not in spendable form (inventory, prepaid items, and long-term receivables). The remaining $15,386,133 of fund balance is in spendable form as follows; $407,377 is restricted to specific uses by enabling legislation (contingency and tax stabilization); $279,060 has been committed by the Common Council for recreation and open space purposes; $717,058 has been assigned for purchase orders and $5,250,000 assigned for tax certiorari by the Commissioner of Finance. The Common Council has assigned $5,043,416 for appropriations of the fiscal 2010-2011 budget, and the remaining $3,689,222 represents spendable, unassigned fund balance.

Total fund balance of the General Fund decreased $2,510,764 (12.9%) from the previous fiscal year, representing the difference between revenues recognized and total monies expended. The City's unassigned fund balance decreased $5,207,087 (58.3%) from $8,896,309 of the prior fiscal year to $3,689,222 at June 30, 2010.

Capital Projects Fund

The Capital Projects Fund, at June 30,2010, had a total fund deficit of $1,865,463. Of this amount, $268 was not in spendable form (prepaid items) and $1,113,395 was committed to purchase orders issued in relation to awards of contracts. A negative unassigned fund balance of $2,979,126 is the remaining component of fund balance for the Capital Projects Fund. The decline in fund balance from the prior fiscal year is due to the City's use of short-term financing rather than bond proceeds for some of its projects. In accordance with generally accepted accounting principles, proceeds from short-term financing are not recognized as other financing sources and are not included in the fund balance calculation until redeemed from appropriations or converted to permanent financing.

29 Proprietary Funds

At June 30,2010, unrestricted net assets were $6,444,048 in the Water Fund and $2,367,855 in the Self Insurance Fund. Factors concerning the finances of the Water Fund have already been addressed in the discussion on the City's business-type activity. The unrestricted net assets for the City's Self Insurance Fund represents monies available to the City, if needed, to settle claims in excess of the liabilities that have already been reported. Unrestricted net assets in the Self Insurance fund increased 1.5% from the previous fiscal year due to the increase in charges for services.

General Fund Budgetary Highlights

The General Fund's Original budget of $147,123,474 was increased through ~mendments during the fiscal year by $3,258,124 (2.2%) to account for various grants and debt proceeds that were awarded after budget adoption, resulting in a final amended budget of $150,381,598. Actual expenditures and other financing uses for fiscal year ended June 30, 2010 were $140,376,829 or $6,746,645 less than the original budget and $10,004,769 less than the final amended budget. The City typically realizes various expenditure savings throughout the year due to its very conservative budgeting practices and its use of a position control account to monitor and control personnel costs. The City also implemented mid-year budget cuts and work force reductions during the course of the fiscal year to respond to the downturn in the economy and antiCipated revenue shortfalls. .

The difference between the City's original revenue budget of $147,123,474 and final revenue budget of $150,381,598 reflects the recognition of grant revenues as indicated above. The City's actual total revenues and other financing sources for fiscal year ended June 30, 2010, exclusive of the use of fund balance, were $137,866,065. Revenue collections in excess of the Original and final budget were noted in the following categories: licenses and permits ($210,546) and miscellaneous revenues ($924,232). A shortfall of $4,126,268 is noted in taxes and related items, which includes a $3,816,091 decrease in sales and use taxes. Other revenues showing a decline from the prior fiscal year include charges for services ($740,722); interest earnings ($349,971); fines and forfeitures ($562,356); and intergovernmental revenues ($394,598). The original adopted budget called for a $7,493,456 appropriation of fund balance.

Capital Assets and Debt Administration

Capital assets

At June 30, 2010, the City's investment in capital assets for its governmental and business-type activities, net of accumulated depreciation, totaled $304,805,401 a decrease of $7,400,456. This reflects the City's investment in all of its capital assets including land, buildings and facilities, machinery and eqUipment, rolling stock and infrastructure. Also included is $10,671,180 for construction-in-progress. Major capital activities during the current fiscal year included the following:

• Various projects for the reconstruction of streets, sidewalks and storm water drains at a cost of $1,903,299. • The purchase of various vehicles and equipment at a total cost of $1,805,400. • The remainder of capital activity was for various improvements to park facilities, municipal parking structures, lots and renovations to the Library building.

30 City of White Plains Capital Assets

June 30, 2010 June 30, 2009

Business- Total Business- Total Governmental type Primary Governmental type Primary Activities Activity Government Activities Activity Government

Capital assets, not being depreciated: Land $ 50,067,172 $ 584,715 $50,651,887 $ 50,067,172 $ 584,715 $50,651,887 Construction in progress 4,921,290 5,149,890 10,67Ll80 6,891,118 5,363,783 12,254,901

Total capital assets, not being depreciated 54,988.462 6,334,605 61,323,067 56958290 5,948,498 62906,788

Capital assets being depreciated: Building & facilities 216,948,547 5,274,379 222,222,926 215,826,259 5,274,379 221,100,638 Machinery & equip. 9,905,935 639,293 10,545,228 9,859,125 639,293 10,498,418 Rolling stock 20,969,027 818,587 21,787,614 20,486,287 703,673 21,189,960 Infrastructure 212,636,365 35,422,281 248,058,652 207,826,145 35,422,287 2430648,432 Total capital assets, being depreciated 460,459,874 ~2,154 54{;i 502,614420 453,997 S16 42,039,632 496,037,448

Less accumulated depreciation for: Buildings & facilities 88,649,911 2,030,436 90,680,347 83,185,398 1,921,157 85,106,555 Machinery & equip. 7,567,709 632,458 8,200,167 7,157,808 630,879 7,788,687 Rolling stock 13,335,787 525,477 13,861,264 13,077,119 533,518 13,610,637 Infrastructure 131,635,772 14,154,~36 146,390,308 126,211,241 14,020,559 140,232,500 Total accumulated depreciation 241,189,172 17,942,207 259,132,086 222,632,266 17,106,113 246,738,379

Total capital assets being depreciated, net 2190670,695 24,211,639 243,482,334 224,365,550 24,933,519 249299,069

Capital Assets, net $27425215Z $30S~fi2~ $3!M S05 ~Ol $2S13231H0 $30 SS201Z $312205 SSZ

Further information on the City's capital asset activity for the fiscal year ended June 30, 2010 can be found in Note 3 on pages 64 though 66 of this report.

Long-term Debt

At June 30, 2010, the City had total bonded debt outstanding of $87,656,825, an increase of $4.8 million from the prior year. The City also had outstanding bond antiCipation notes (BANS) of $8.4 million at year-end, a decrease of $1,130,200 from the prior year. Pursuant to New York State laws, the City can only issue general obligation bonds backed by the full faith and credit of the City. Debt of the Water Fund represented $12,172,670 of total debt outstanding at fiscal year end.

The City issued $10,072,825 in public improvement serial bonds in fiscal 2009-2010 for miscellaneous street reconstruction, parking structure improvements, heavy duty rolling stock purchases, and various park and building improvements. Moody's Investors Service assigned an Aa1 rating on this bond issue and reaffirmed the Aa1 underlying rating on all of the City's outstanding debt. The City also issued $5,810,000 in public improvement serial bonds with interest rates ranging from 2.0%-4.0%, the proceeds of which were used to advance refund $5,730,000 of outstanding 2000, 2001 Series B, and 2002 Series A and Series B public improvement bonds, which had interest rates ranging from 4.25%-5.25%

DUring the year, the City issued $8,400,000 in bond anticipation notes, the proceeds of which were used to fund various capital projects, including library building renovations, storm water drain improvements, rOiling stock purchases and tax certiorari claims.

31 At the end of the fiscal year, the City had authorized and unissued long-term debt in the amount of $10,024,675: $600,000 for dam rehabilitation; $800,200 for Library exterior windows; $414,225 for reconstruction of sanitary sewers; $400,000 for replacement of the City's telephone system; $200,000 for purchase/installation of emergency power; $575,000 for rolling stock fire vehicles; $1,608,000 for miscellaneous street reconstruction; $1,507,500 for water main construction; $301,500 for miscellaneous sanitary sewers; $502,000 for Library electrical upgrades; $904,500 for a Library garage sprinkler system; $300,750 for gasoline storage/dispensing system; $161,000 for a Transcenter garage sprinkler system; $1,500,000 for water transmission from the Central Avenue pump station, and $250,000 for upgrades to the Orchard Street pump station.

Pursuant to Article VIII of the State Constitution and Title 9 of Article 2 of the Local Finance Law, the City is subject to a constitutional debt limit. This debt limit is equal to 7% of the latest five-year average of the full valuation of all taxable real property within the City. At June 30, 2010, the City exhausted 11.57% of its constitutional debt capacity, and accordingly had the authority to issue up to an additional $604,330,366 of general obligation long-term debt.

Pursuant to the New York State Local Finance Law and the City Charter, the City authorizes the issuance of bonds by the adoption of a bond ordinance approved by two-thirds of the members of the Common Council. Customarily, the Common Council has delegated to the Commissioner of Finance, as Chief Fiscal Officer of the City, the power to authorize and sell bond anticipation notes. The Common Council has also delegated to the Commissioner of Finance the power to prescribe the details, form and content of, and to sell serial bonds authorized by the Common Council.

Additional information on the City's long-term debt can be found in Note 3 on pages 69 through 73 of this report.

Economic Factors and Next Year's Budgets and Rates

The following economic factors currently affect the City and were considered in developing the current year budget:

• The unemployment rate for the City of White Plains as of June 2010 was 6.4%, compared to 7.1% at June 30,2009. • The City increased water rates an additional 8% beginning July 1, 2009 antiCipating current and future expenditure increases required to meet new federal and state mandates. • The City enacted a property tax rate increase of 6.85% to fund operating cost increases. • The City reviewed its schedule of fees and charges and increased rates accordingly. • The City was able to secure an additional 1/4% of sales tax, the proceeds of which are dedicated to a contingency and tax stabilization reserve established pursuant to New York State General Municipal Law. • Declines in the state equalization rate and resulting decreases in property assessments will continue to affect the City's real property tax base. • Declines in housing prices and sales are expected to continue throughout the fiscal year, further straining mortgage tax revenues and assessed values. • On the expenditure side, increases are expected in health insurance premiums, pension costs, and other employee benefits costs. • Interest rates are expected to remain at low levels throughout fiscal year 2010-2011. • The City budgeted for the full anticipated impact of tax certiorari payments. • The City created a Sewer Rent Fund, an enterprise fund that removes the costs from the General Fund and spreads the costs across users of the City's sewer system. • The City continues to purchase a catastrophic liability insurance policy to protect it from unforeseen losses in excess of $1 million.

32 • The Self Insurance Fund continues to be fully funded based on actuarial projections. • The City's daytime population exceeds 300,000, requiring 24 hour services for residents and non-residents alike. • The City's reserve for financing includes a 1% budget contingency in accordance with the City's fiscal performance goals. • Departmental budget reductions were implemented recognizing a decline in major revenues (sales taxes, mortgage taxes, etc.) as a result of the current recession. • Recognizing the need to preserve and strengthen its fund balance, the City appropriated less fund balance than it did in prior fiscal years.

Requests for Information

This comprehensive annual financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report, or requests for additional information, should be addressed to Michael A. Genito, Commissioner of Finance, City of White Plains, 255 Main Street, Room 102, White Plains, New York 10601, or bye-mail to [email protected].

33 THIS PAGEINTENTIONALLY LEFT BLANK

34 BASIC FINANCIAL STATEMENTS

35 CITY OF WHITE PLAINS, NEW YORK STATEMENT OF NET ASSETS JUNE 30, 2010

Primary Government

Govemmental Business-type Activities Activ~ Total ASSETS Cash and cash equivalents $ 44,527,577 $ 4,587,415 $ 49,114,992 Investments 7,869,424 7,869,424 Deposits 116,072 116,072 Taxes receivable 5,306,883 5,306,883 Other receivables (net of allowance for uncollectibles) 3,850,805 4,599,731 8,450,536 Due from other govemments and agencies 4,402,797 4,402,797 Internal balances 215,215 (215,215) Inventory of supplies, at cost 825,972 825,972 Prepaid items 37,244 37,244 Deferred charges 214,697 4,090 218,787 Capital assets not being depreciation: Land 50,067,172 584,715 50,651,887 Construction-in-progress 4,921,290 5,749,890 10,671,180 Capital assets net of accumulated depreciation: Building and facilities 128,298,636 3,243,943 131,542,579 Machinery and equipment 2,338,226 6,835 2,345,061 Rolling stock 7,633,240 293,110 7,926,350 Infrastructure 81 1000,593 201667,751 101,6681344 Total Assets 341 16251843 39,5221265 381,148,108

LIABILITIES Accounts payable 4,870,071 1,821,126 6,691,197 Contract retainage payable 106,598 16,868 123,466 Accrued liabilities 5,338,399 56,426 5,394,825 Accrued interest payable 700,018 156,262 856,280 Deposits 2,167,325 32,995 2,200,320 Due to other govemments and agencies 19,384,508 19,384,508 Bond anticipation notes payable 3,250,000 3,250,000 Uneamed revenues 4,487,352 4,487,352 Due to retirement systems 3,129,919 66,621 3,196,540 Noncurrent liabilities: Due within one year 15,683,590 1,004,446 16,688,036 Due in more than one year 9912401259 11,759,398 110,999,657 Total Liabilities 1581358,039 141914,142 173,2721181

NET ASSETS Investment in capital assets, net of related debt 197,909,708 18,379,290 216,288,998 Restricted for: Capital projects 474,809 474,809 Debt service 1,238,888 1,238,888 Public safety 393,124 393,124 Community services 3,160,297 3,160,297 Nonrecurring repairs 406,804 406,804 Tax stabilization 407,377 407,377 Permanent Fund: Expendable 869 869 Nonexpendable 10,000 10,000 Unrestricted (201734I072} 612281833 (14150512391 Total Net Assets $ 18312671804 $ 24,608,123 $ 20718751927

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

36 Component Units

Urban Renewal Cable Agency Television

$ 133,498 519,671

232,789

390

2,893,760

103,682 63,032 1,628

3,027,258 921,192

6,915 26,244

12,028

11,260

100,000 10,622

2,125 100,008 6,915 262,287

2,893,760 168,342

126,583 490,563 3,020,343 658,905

37 CITY OF WHITE PLAINS, NEW YORK STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 3D, 2010

Program Revenues

Operating Capital - Charges for Grants and Grants and Expenses Services Contributions Contributions Functions/Programs: Primary government: Governmental activities: Council and boards $ 936,100 $ $ $ General government 28,737,398 3,134,315 26,291 Public works 37,256,161 1,199,284 529,305 2,047,321 Parking department 10,979,456 19,072,096 Public safety 63,070,957 4,391,545 71,519 Community services 26,029,490 6,048,580 8,974,393 Interest 3,339,275 65,157 Total Governrnental Activities 170,348,837 33,845,820 9,601,508 2,112,478

Business-type activity­ Water 9,110,935 9,025,351 Total Primary Government $ 179,459,772 $ 42,871,171 $ 9,601,508 $ 2,112,478

Component units: Urban Renewal Agency 349,075 590,660 Cable Television 676,654 615,951

Component units $ 1,025,729 $ 615,951 $ 590,660 $

General Revenues: Taxes and related items: Property tax Sales tax Hotel occupancy tax Utilities gross receipts Intergovernmental - unrestricted Franchise taxes Unrestricted investment earnings Gain on sale of capital assets Miscellaneous

Total General Revenues

Change in Net Assets

Net Assets - Beginning

Net Assets - Ending

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

38 Net (Expense) Revenue and Changes in Net Assets

Primary Govemment Component Units

Govemmental Business-type Urban Renewal Cable Activities Activity Total Agency Television

$ (936,100) $ $ (936,100) $ $ (25,576,792) (25,576,792) (33,480,251 ) (33,480,251) 8,092,640 8,092,640 (58,607,893) (58,607,893) (11,006,517) (11,006,517) (3,274,118) (3,274,118) _____ (124,789,031 ) (124,789,031)

(85,584) (85,584) (124,789,031 ) (85,584) (124,874,615)

241,585 (60,703)

241,585 (60,703)

47,358,459 47,358,459 43,533,909 43,533,909 688,580 688,580 1,419,855 1,419,855 7,268,071 7,268,071 562,090 562,090 455,823 49,981 505,804 500 1,757 66,445 66,445 1.817,302 140,824 1,958,126 9,625

103,170,534 190,805 103.361,339 500 11,382

(21,618,497) 105,221 (21,513,276) 242,085 (49,321)

204,886,301 24,502,902 229,389,203 2.778,258 708,226

$ 183,267,804 $ 24,608,123 $ 207,875,927 $ 3,020,343 $ 658,905

39 CITY OF WHITE PLAINS, NEW YORK BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2010 Capital Nonmajor Total General Projects Governmental Governmental Fund Fund Funds Funds ASSETS Cash and cash equivalents $ 32,341,410 $ 1,527,885 $ 5,911,858 $ 39,781,153 Investments 6,267,158 639,625 6,906,783 Taxes receivable (net allaowance for uncollectibles) 5,306,883 5,306,883 Other receivables (net of allowance for uncollectibles) 1,262,845 2,140,338 3,403,183 Due from other governments and agencies 2,715,611 602,693 1,084,493 4,402,797 Due from other funds 671,202 671,202 Inventory of supplies, at cost 825,972 825,972 Prepaid items 36.752 268 224 37,244 Total Assets $ 49,427,833 $ 2,130,846 $ 9,776,538 $ 61,335,217

LIABILITIES AND FUND BALANCES (DEFICITS) Liabilities: Accounts payable $ 3,274,276 $ 644,563 $ 654,845 $ 4,573,684 Contract retainage payable 4,852 101,746 106,598 Accrued liabilities 1,856,267 403,649 2,259,916 Deposits 2,149,597 17,728 2,167,325 Due to other governments and agencies 19,384,508 19,384,508 Due to other funds 671,202 671,202 Bond anticipation notes payable 3,250,000 3,250,000 Deferred revenue - taxes 733,761 733,761 Deferred revenue - other 2,087,565 2,399,787 4,487,352 Due to retirement systems 2,990,937 133,490 3,124,427 Total Liabilities 32,481,763 3,996,309 4,280,701 40,758,773

Fund Balances (Deficits): Nonspendable - not in spendable form: Inventory 825,972 825,972 Prepaid items 36,752 268 224 37,244 Long-term receivables 697,213 697,213 Nonspendable endowment 10,000 10,000 Restricted: Library 50,809 50,809 Nonrecurring repairs 406,804 406,804 Tax stabilization 407,377 407,377 Debt service 750,038 750,038 Grantors and donors restrictions 2,907,322 2,907,322 Police purposes 393,124 393,124 Committed: Capital Projects 1,113,395 1,113,395 Recreation and open space 279,060 372,802 651,862 Parking improvements 87,818 87,818 ASSigned: Purchases on order 717,058 717,058 Tax certiorari 5,250,000 5,250,000 For subsequent year's expenditures, reported in: General Fund 5,043,416 5,043,416 Special Revenue Funds 28,046 28,046 Debt Service Fund 488,850 488,850 Unassigned, reported in: General Fund 3,689,222 3,689,222 Capital Projects Fund (2,979,126} (2,979,126} Total Fund Balances (Deficits) 16,946,070 (1,865,463} 5,495,837 20,576,444 Total Liabilities and Fund Balances (Deficits) $ 49,427,833 $ 2,130,846 $ 9,776,538 $ 61,335,217

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

40 CITY OF WHITE PLAINS, NEW YORK RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS JUNE 30, 2010

Amounts reported for governmental activities in the statement of net assets are different because:

Total Fund Balances - Governmental Funds $ 20,576,444

Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds. 274,259,157

The Internal Service Fund is used by management to charge the cost of workers' compensation, general liability, and unemployment benefits to individual funds. The assets and liabilities of the internal service fund are included in governmental activities in the statement of net assets. 2,583,070

Other long-term assets that are not available to pay for current period expenditures and, therefore, are either deferred or not reported in the funds. Real property taxes 733,761 Accrued property tax interest receivable 443,941

Governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Deferred charges 214,697

Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds: Bonds payable (75,435,519) New York State loan (3,427,450) Bond anticipation note payable (5,150,000) Tax certiorari payable (5,773,298) Compensated absences (5,066,981 ) Accrued interest payable (700,018) Other post employment benefit obligations payable (19,990,000)

Net Assets of Governmental Activities $ 183,267,804

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

41 CITY OF WHITE PLAINS, NEW YORK STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 3D, 2010

Capital Nonmajor Total General Projects Governmental Governmental Fund Fund Funds Funds REVENUES Taxes and related items $ 92,680,018 $ $ $ 92,680,018 Intergovemmental 8,175,222 491,271 8,600,915 17,267,408 Charges for services 16,515,754 16,515,754 Licenses and permits 5,027,042 5,027,042 Fines and forfeitures 6,598,194 6,598,194 Interest 395,029 71,373 466,402 Fees and program income 4,642,577 4,642,577

Miscellaneous 31307,746 11556,050 2891648 5.1531444

Total Revenues 132,699,005 2,0471321 13,604,513 148,350,839

EXPENDITURES Current: Council and boards 970,154 970,154 General govemment 29,056,203 29,056,203 Public works 25,510,723 25,510,723 Parking 10,118,846 10,118,846 Public safety 54,625,523 570,566 55,196,089 Community services 6,412,148 17,413,902 23,826,050 Debt Service: Principal 496,895 4,372,033 4,868,928 Interest and fiscal charges 217,218 3,139,795 3,357,013 Refunding bond issuance costs 117,802 117,802 Capital Outlay 518421075 5,8421075 Total Expenditures 127,407.710 5,8421075 25,614,098 1581863,883

Excess (DefiCiency) of Revenues

Over Expenditures 51291 1295 (3.794.754) (1210091585) (10,513,044)

OTHER FINANCING SOURCES (USES) Bonds issued 750,000 6,260,325 7,010,325 Bond anticipation notes issued 4,400,000 4,400,000 Refunding bond issued 5,595,000 5,595,000 Issuance premium 239,917 239,917 Payment to refunded bond escrow agent (5,717,115) (5,717,115) Bond anticipation notes redeemed (250,000) (250,000) Transfers in 17,060 747,825 13,504,084 14,268,969

Transfers out {12.719.119} {610 1918} {9381932} {14,2681969} Total Other Financing Sources (Uses) (718021059) 613971232 12,682,954 11 1278.127

Net Change in Fund Balances (2,510,764) 2,602,478 673,369 765,083

Fund Balances (Deficits) - Beginning of Year 19,4561834 (414671941) 4,822,468 19,811,361

Fund Balances (Deficits) - End of Year $ 16,9461070 $ {1,8651463} $ 5,4951837 $ 2015761444

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

42 CITY OF WHITE PLAINS, NEW YORK RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2010

Amounts reported for governmental activities in the statement of activities are different because:

Net Change in Fund Balances - Total Governmental Funds $ 765,083

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation expense exceeded capital outlays in the current period. Capital outlay expenditures 5,771,012 Depreciation expense (12,835,695) (7,064,683)

R~venues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Real property taxes 331,605

Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. Repayment of bond and other debt prinCipal is an expenditure in the govemmental funds, but repayment reduces long-term liabilities in the statement of net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Refunding bonds issued (5,595,000) Issuance premium (239,917) Payment to refunded bond escrow agent 5,717,115 Refunding bond issuance costs 117,802 Principal paid on bonds 4,372,033 Amortization of issuance costs, loss on refunding and premium (27,167) Bonds issued (7,010,325) Principal paid on bond anticipation notes 250,000 Bond anticipation notes issued (4,400,000) Principal paid on State loan 496,895 (6,318,564)

The Self-Insurance Fund is an internal service fund used by management to charge the costs of workers' compensation, general liability and unemployment benefits to the individual funds. The net revenue of this fund is reported with governmental activities. 70,127

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. Accrued interest 16,639 Compensated absences 184,844 Other post employment benefit obligations (9,417,000) Tax certiorari (186,548) (9,402,065)

Change in Net Assets of Govemmental Activities $ (21,618,497)

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

43 CITY OF WHITE PLAINS, NEW YORK GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2010

Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Revenues: Taxes and related items $ 96,806,286 $ 96,806,286 $ 92,680,018 $ (4,126,268) Intergovemmental 8,516,626 8,569,820 8,175,222 (394,598) Charges for services 17,256,476 17,256,476 16,515,754 (740,722) Licenses and permits 4,816,496 4,816,496 5,027,042 210,546 Fines and forfeitures 7,160,550 7,160,550 6,598,194 (562,356) Interest 745,000 745,000 395,029 (349,971) Miscellaneous 2,328,584 2,383,514 3,307,746 924,232 Total Revenues 137,630,018 137,738,142 132,699,005 (5,039,137)

Appropriation of Fund Balance 7,493,456 7,493,456 (7,493,456)

Total Revenues and Appropriation of Fund Balance 145,123,474 145,231,598 132,699,°05 (12,532,593)

Expenditures: Current: Council and boards 5,614,630 3,374,611 970,154 2,404,457 General govemment 28,582,340 32,221,332 29,056,203 3,165,129 Public works 27,171,225 26,835,856 25,510,723 1,325,133 Parking 10,678,241 10,550,417 10,118,846 431,571 Public safety 54,112,514 56,629,314 54,625,523 2,003,791 Community services 7,149,113 6,928,782 6,412,148 516,634 Debt Service 714,113 714,113 714,113 Total Expenditures 134,022,176 137,254,425 127,407,710 9,846,715

Excess of Revenues and Appropriation of Fund Balance Over Expenditures 11 ,101 ,298 7,977,173 5,291,295 (2,685,878)

Other Financing Sources (Uses): Bonds issued 750,000 750,000 Bond anticipation note issued 2,000,000 4,400,000 4,400,000 Bond antiCipation note redeemed (250,000) (250,000) (250,000) Transfers in . - 17,060 17,060 Transfers out (12,851,298) (12,877,173) (12,719,119) 158,054 Total Other Financing Uses (11 ,101,298) (7,977,173) (7,802,059) 175,114

Net Change in Fund Balance $ $ (2,510,764) $ {2,51 0,764)

Fund Balance - Beginning of Year 19,456,834

Fund Balance - End of Year $ 16,946,070

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

44 CITY OF WHITE PLAINS, NEW YORK STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 3D, 2010

Business-type Activity- Governmental Enterl2rise Fund Activi~

Internal Service Water Fund Fund ASSETS Current Assets: Cash and cash equivalents $ 4,587,415 $ 4,746,424 Investments 962,641 Deposits 116,072 Receivables 4,599,731 3,681 Total Current Assets 9,187,146 5,828,818

Noncurrent Assets: Deferred charges 4,090 Capital Assets: Land 584,715 Building and facilities 5,274,379 Machinery and equipment 639,293 Rolling stock 818,587 Infrastructure 35,422,287 Construction-in-progress 5,749,890 Less accumulated depreciation {17,942,907} Total Noncurrent Assets 30,550,334 Total Assets 39,737,480 5,828,818

LIABILITIES Current Liabilities: Accounts payable 1,821,126 296,387 Contrad retainage payable 16,868 Accrued liabilities 56,426 3,078,483 Accrued interest payable 156,262 Deposits 32,995 Due to retirement system 66,621 5,492 Bonds payable - current 995,766 Compensated absences - current 8,680 10,601 Total Current Liabilities 3, 154l44 3,390,963

Noncurrent Liabilities: Bonds payable 11,175,278 Compensated absences 78,120 Other post employment benefit obligations payable 506,000 70,000 Total Noncurrent Liabilities 11,759,398 70,000 Total Liabilities 14,914,142 3,460,963

NET ASSETS Invested in capital assets, net of related debt 18,379,290 Unrestrided 6,444,048 2,367,855

Total Net Assets 24,823,338 $ 2,367,855

Adjustment to retied the consolidation of internal service fund activity related to enterprise fund {215,215}

Net Assets of Business-type Adivity $ 24,608,123

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

45 CITY OF WHITE PLAINS, NEW YORK STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2010

Business-type Activity- Governmental Enterprise Fund Activity

Internal Service Water Fund Fund Operating Revenues: Charges for services: Metered water sales $ 9,025,351 $ Self insurance services 3,149,053 Miscellaneous 140,824 391934 Total Operating Revenues 9,1661175 3,188,987

Operating Expenses: Personnel services 1,860,215 173,408 Employee benefits 798,191 63,214 Other post employment benefit obligations 247,000 34,000 Materials and supplies 4,094,804 842 Direct costs 716,342 2,945,492 Equipment 12,206 606 Depreciation and amortization 8821421 Total Operating Expenses 8,611 1179 312171562 Operating Income (Loss) 5541996 l28,5751

Nonoperating Revenues (Expenses): Interest income 34,330 64,426 Interest expense (448,686) Refunding bond issuance costs l111431 Total Nonoperating Revenues (Expenses) l415,4991 64,426

Change in Net Assets 139,497 35,851

Net Assets - Beginning of Year 24,6831841 213321004

Net Assets - End of Year $ 241823,338 $ 213671855

Change in Net Assets $ 139,497

Adjustment to reflect the consolidation of intemal service fund activity related

to enterprise fund l3412761

Change in Net Assets of BUSiness-type Activity $ 105,221

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

46 CITY OF WHITE PLAINS, NEW YORK STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 Business-type Activity- Governmental Ente~rise Fund Activi~ Internal Service Water Fund Fund CASH FLOWS FROM OPERATING ACTIVITIES Cash received for services provided $ 8,570,637 $ 3,149,053 Cash payments for contractual services (4,065,218) (3,528,305) Cash payments to employees for salaries and benefits (2,642,836) (234,819) Other operating revenue 140,824 39,934 Net Cash Provided by (Used in) Operating Activities 2,003.407 (574,137)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Interest paid on capital debt (437,269) Refunding bond issuance costs (4,908) Principal paid on capital debt (2,772,292) Proceeds from serial bonds 3,277,500 Purchase of capital assets {546,648) Net Cash Used in Capital and Related Financing Activities {483,617)

CASH FLOWS FROM INVESTING ACTMTIES Purchase of investments (3,486,488) Proceeds from sale of investments 3,085,386 Interest on investments 34,330 64,426 Net Cash Provided by (Used in) Investing Activities 34,330 (336,676)

Net Increase (Decrease) in Cash and Cash Equivalents 1,554,120 (910,813)

Cash and Cash Equivalents - Beginning of Year 3,033,295 5,657,237

Cash and Cash Equivalents - End of Year $ 4,587.415 $ 4,746.424

Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used in) Operating Activities:

Operating income (loss) $ 554,996 $ (28,575)

Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization expense 882,421 Decrease in deposits receivable 11,290 (Increase) in accounts receivable (454,714) Increase (Decrease) Increase in accounts payable 763,862 (154,789) (Decrease) in contract retainage payable (8,009) (Decrease) in accrued liabilities (42,589) (441,474) Increase in deposits payable 2,280 Increase in due to retirement system 31,257 2,224 Increase in compensated absences 26,903 3,187 Increase in other post employment benefit obligations payable 247,000 34,000 Total Adjustments 1,448.411 (545,562)

Net Cash Provided by (Used in) Operating Activities $ 2,003.407 $ {574,1371

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

47 CITY OF WHITE PLAINS, NEW YORK STATEMENT OF ASSETS AND LIABILITIES FIDUCIARY FUND JUNE 3D, 2010

Agency Fund

ASSETS Cash and cash equivalents $ 1,335,792 Investments 3,991 Receivables 153,689 Total Assets $ 1,493,472

LIABILITIES Accounts payable $ 256,943 Accrued liabilities 428,317 Deposits 795,798 Due to other governments 121414 Total Liabilities $ 114931472

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

48 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

Note 1: Summary of Significant Accounting Policies

The City of White Plains, New York ("City") was incorporated in 1916 and covers an area of approximately 10 square miles. The City has been the seat of the Westchester County government since 1778. The City operates in accordance with its Charter under an elected Mayor and Common Council. The six members of the Council are elected at large and serve for four year terms, as does the Mayor. The Common Council functions as the policy-making and legislative body of the City and the Mayor serves as the Chief Executive Officer. The City provides services to its residents in many areas, including various general government services, public works, parking, public safety and community services.

The accounting pOlicies of the City conform to generally accepted accounting principles as applicable to governmental units. The Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below.

A. Reporting Entity

Following the principles of GASB Statement No. 14, "The Financial Reporting Entity," these financial statements present the primary government and its component units, entities for which the government is considered to be financially accountable. Discretely presented component units are reported in separate columns in the basic financial statements to emphasize that their services are not provided to the primary government.

The discretely presented component units include the White Plains Urban Renewal Agency ("Urban Renewal Agency"), the White Plains Cable Television Access Commission ("Cable TV Commission"), the White Plains Center Local Development Corporation ("Local Development Corporation") and the White Plains Housing Development Corporation ("Housing Development Corporation"). The governing bodies of these component units are not substantively the same as the City's and they do not provide services entirely or almost entirely to the City as described below. None of the component units issue a separate financial report.

The Urban Renewal Agency was created in 1964 pursuant to an act of the New York State Legislature, General Municipal Law, Article 15-B, Title 14, which provided for the following:

1. The purpose of the Urban Renewal Agency is to eliminate or prevent the development and spread of deterioration and blight through the clearance, re-planning, reconstruction, rehabilitation, conservation or renewal of areas designated for residential, commercial, industrial, community, public and other uses.

2. The Urban Renewal Agency shall be perpetual in duration and shall consist of five Agency members who are appointed and serve at the pleasure of the Mayor. The Mayor may also appoint himself as one of the members and is currently serving as Chairman. The City provides support to the Urban Renewal Agency in the form of office space.

The Cable TV Commission was established in 1981 as a Type A not-for-profit corporation under Section 402 of the Not-for-Profit Corporation Law and Section 501(c)(1) of the IRS Code, to implement the provisions offranchise agreements between the City and cable television providers. The Cable TV Commission oversees the operations of the City's cable television production

49 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010 facilities, which include a fully equipped studio, editing suite, and a full complement of location equipment. Productions are televised on the Community Access Channel. The Cable TV Commission also manages the City's Government Access Channel, which televises the City government programs, announcements, and Common Council meetings. The Cable TV Commission is reported as a component unit because the Mayor appoints its governing body and can remove its members at will. The City guarantees debt obligations of the Commission. At June 30, 2010, there was no debt authorized or outstanding for the Cable TV Commission.

The Local Development Corporation is a not-for-profit local development corporation established pursuantto Section 1411 ofthe Not-for-Profit Corporation Law ofthe State of New York. The Local Development Corporation was formed and operated exclusively for charitable purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code to lessen the burdens of City government by engaging in the following transactions:

1. Contract with the City for the demolition of an existing garage;

2. Contract with a developer for the construction of the White Plains Center Parking Garage ("City Center Garage");

3. To provide for future reconstruction and additions to the City Center Garage;

4. Enter into various leases and subleases with the City regarding the City Center Garage;

5. Contract with the City for the operation and maintenance of the City Center Garage.

The Local Development Corporation is a component unit because the Board of Directors consists of the Mayor, the Commissioner of Building, and the Commissioner of Public Works and is fiscally dependent on the City. The Local Development Corporation is a public instrumentality separate from the City. The Corporation has no reportable operations, assets or liabilities as of and for the fiscal year ended June 30,2010.

The White Plains Housing Development Corporation is a component unit because the officers of the Corporation are appointed officials of the City serving ex officio, who can be removed by a majority of the Common Council. The Corporation is a not-for-profit corporation that was created in 1994, under the laws of the State of New York for the purpose of:

1. Functioning as an instrumentality for the City, a political subdivision of the State, and a Public Housing Agency under the United States Housing Act of 1937 and defined in regulations issued by the United States Department of Housing and Urban Development.

2. Engaging or assisting in the acquisition of land and construction and equipping of rental apartment facilities located in the City for, but not limited to elderly, handicapped, and low­ income individuals and families.

3. Issuing Housing Revenue Bonds for the defeasance or refunding of the outstanding revenue bonds of the White Plains Battle Hill Housing and the White Plains Armory Plaza Housing Development Corporation.

The only financial transactions of the Corporation are conduit debt transactions, which are not recorded as liabilities of the Corporation. As such, the Corporation has no reportable operations, assets or liabilities as of and for the fiscal year ended June 30,2010.

50 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

B. Government-Wide Financial Statements

The government-wide financial statements (i.e., the Statement of Net Assets and the Statement of Activities) report information on all of the non-fiduciary activities of the primary government as a whole and its component units. For the most part, the effect of interfund activity has been removed from these statements, except for interfund services provided and used. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for services. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable.

The Statement of Net Assets presents the financial position of the City and its component units at the end of the fiscal year. The Statement of Activities demonstrates the degree to which the 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, services, or privileges provided by a given function or segment, 2) grants and contributions that are restricted to meet 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 specific functions in the Statement of Activities.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's prinCipal ongOing operations. The principal operating revenue for the proprietary fund is the sale of water. Operating expenses of the enterprise fund, and the internal service fund, include the cost of sales and services, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

C. Fund Financial Statements

The accounts of the City are organized and operated on a fund basis. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts which comprise its assets, liabilities, fund balances/net assets, revenues and expenditures/expenses. 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 the governmental fund financial statements is on major funds as that term is defined in profeSSional pronouncements.

51 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

Each major fund is to be presented in a separate column, with non major funds aggregated and presented in a single column. Proprietary and 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 page following the statements. The reconciliation briefly explains the adjustments necessary to convert 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 three broad fund categories, in accordance with generally accepted accounting principles as follows:

1. 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 is 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.

Capital Projects Fund - The Capital Projects Fund is used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets, other than those financed by proprietary funds.

The City reports the following nonmajor governmental funds:

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 expenditure for specified purposes other than debt service or capital projects. No special revenue funds of the City meet the criteria for major funds.

Library Fund - to account for the operation and maintenance of the City library. Financing is primarily provided by a contribution from the General Fund.

RESTORE Grant Fund - to account for a New York State grant that provides assistance to low income senior citizens for housing repairs.

Community Development Block Grant Fund - to account for programs and activities that will benefit low and moderate income families through the prevention or elimination of slums and blight.

Section 8 Housing Assistance Program Fund - to account for Federal grants used for subsidizing the rents of low and moderate income senior citizens and other families within the City.

Public Safety Grant Fund - to account for grant monies received from Federal, State and local governments for the enhancement of public safety activities.

Youth Development Fund - to account for grant monies received from Federal, State and local governments and private contributions for youth development programs designed to build skills and competencies among the City's youth.

52 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

City Center Garage Fund - to account for parking revenues, the use of which is restricted to the operation and maintenance of the City Center Garage.

War Memorial Fund - to account for funds used to dedicate a memorial to those who have perished in wars.

Community Services Fund - to account for funds used to send underprivileged and economically disadvantaged children to day camp.

Recreation Parkland Fund - to account for funds to be used in acquiring and/or developing recreational facilities and open space in the City.

Library Gifts and Donations Fund - to account for donations received to benefit the City's library.

Police Activities Fund - to account for Federal forfeiture proceeds to be used to support community policing activities, training and law enforcement operations.

Mayor's Youth Council Fund - to account for monies received to benefit the youth of the City.

Housing Authority Enhancement Fund -to account for gifts, grants and contributions received and subsequently disbursed for the purpose of enhancing public housing occupancy.

Parking Fund - to account for fees received in lieu of providing required off-street parking in the central parking area, which are used to increase the quantity/quality of parking spaces available to serve properties in that area.

Debt Service Fund - The Debt Service Fund is used to account for and report financial resources that are restricted, committed or assigned to expenditure for prinCipal and interest, and for financial resources that are being accumulated for principal and interest maturing in future years

Permanent Fund - The Permanent Fund is used to account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the City's programs for the "benefit of the City or its citizenry. The Goldie Zeitlin Memorial Fund is a permanent fund ofthe City. Earnings on the principal (an endowment of $10,000) are to be used to support programs related to urban concerns.

2. Proprietary Funds - Proprietary funds include enterprise and internal service funds. Enterprise funds are used to account for operations that are financed and operated in a manner similar to private enterprises or where the governing body has decided that periodic determination of revenues earned, expenses incurred and/or net income is necessary for management accountability. Enterprise funds are used to account for those operations that provide services to the public while internal service funds are used to account for operations that provide services to other departments or agencies of the government, on a cost reimbursement basis. The City records the operations of its Water Fund as an enterprise fund and has" established its Self Insurance Fund as an internal service fund. The City applies all applicable Financial Accounting Standards Board ("FASB") pronouncements issued after November 30, 1989 in accounting and reporting for its enterprise operations.

53 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

3. Fiduciary Funds - The Fiduciary Funds are used to report resources held by a governmental unit in a trustee or agent capacity for others. Fiduciary funds are not included in the government-wide financial statements on the basis that the City cannot use the resources of fiduciary activities to support City programs. The City's only fiduciary fund is the Agency Fund, which is primarily used to account for employee payroll tax withholdings and various 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 reports.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as is the proprietary fund and component units. The Agency Fund has no measurement focus and utilizes the accrual basis of accounting. Revenues are 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. The City's component units are accounted for on the modified accrual basis and are converted to the accrual basis for the government-wide statements.

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. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. 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, claims and judgments and other post employment 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. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Other receipts become measurable and available when cash is received by the City and are recognized as revenue at that time. Entitlements are recorded at the time of receipt or earlier if the susceptible­ to-accrual criteria are met. Expenditure driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met.

When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed.

54 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

E. Assets, Liabilities and Net Assets or Fund Balances

1. Deposits and Investments

The City's cash and cash equivalents balances consist of funds deposited in demand deposit accounts, time deposit accounts, certificates of deposit with original maturities of less than three months, and petty cash and change funds. State statutes govern the City's investment pOlicies. The City has adopted its own written investment policy which provides for the deposit of funds in FDIC insured commercial banks or trust companies licensed to do business in New York State. Permissible investments include obligations ofthe U.S. Treasury, U.S. Agencies, repurchase agreements, obligations of New York State or its pOlitical subdivisions, and municipal cooperative investments authorized under New York State General Municipal Law.

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, directs that deposits be disclosed as exposed to custodial credit risk if they are not covered by FDIC 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 FDIC insurance were not exposed to custodial credit risk at June 30, 2010.

In order to minimize the credit risk of investments, the City adopted and adheres to the guidelines established in its Investment Policy. This policy specifically states the primary objectives of the City's investment activities. In priority order, they are: to conform with all applicable laws; to adequately safeguard prinCipal; to provide sufficient liquidity to meet all operating requirements; and lastly, to obtain a reasonable rate of return. It is also the policy of the City to diversify its deposits and investments by financial institution, by investment instrument and by maturity. These objectives, as outlined in the City's Investment Policy, along with collateralization of all investments in excess of FDIC coverage, are strictly adhered to so as to minimize exposure to credit risk. In accordance with the Investment Policy, collateral is required for demand deposit accounts, time deposit accounts and certificates of deposit at 100% of all deposits not covered by FDIC insurance. The City has entered into custodial agreements with the various banks that hold their deposits. These agreements authorize the obligations that may be pledged as collateral, which 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 was invested in demand deposit accounts, time deposit accounts and certificates of deposit and, accordingly, was not exposed to any interest rate risk or credit risk at June 30, 2010.

In addition to the above named investments, the City also invested in two United States Treasury Bonds. These two securities can pose a potential interest rate risk, since the fixed rate of interest is "locked in" for an extended period of time. However, at this time the potential risk is extremely minimal, in view of the rates of interest being paid, compared to current market interest rates. Management monitors these securities periodically to determine if the fixed interest rate poses any risk to the City. Since these securities are only $215,000, the interest rate risk is nominal.

55 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

The following segmented time distribution shows that all maturities are over three years at this time: a. Maturities within six months to three years: None b. Maturities over three years:

Description Amount Rate Maturity United States Treasury Bond $100,000 8.75% 5/15/2017 United States Treasury Bond $115.000 6.00% 2/15/2026

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

The City participates in a cooperative investment pool established pursuant to New York State General Municipal Law Article 3-A that meets the definition of a 2a7-like pool as defined by GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for Extemallnvestment Pools. The sponsoring agency of the pool is another governmental unit which, acting through its fiscal officers, is primarily responsible for executing the provisions of the cooperative agreement. This pool is authorized to invest in various securities issued by the United States and its agencies. The amount reported represents the amortized cost of the cooperative shares and is considered to approximate fair value. The fair value of the City's position in the cooperative is the same as the value of the pool's shares. Additional information concerning the cooperative investment pool is presented in the annual report of the New York Liquid Asset Fund ("NYLAF"), which may be obtained from Bankers Trust Company, N.A., 453 1h Street, P.O. Box 897, Des Moines, IA 50304.

NYLAF is rated AAA by Standard & Poor's Financial Services. Local government investment cooperatives in this rating category meet the highest standards for credit quality, conservative investment policies and safety of principal. The cooperative invests in a high quality portfolio of investments legally permissible for municipalities and school districts in the State.

2. Receivables

Real property taxes attach as an enforceable lien on real property and are levied as of January 1st for Westchester County taxes and July 1st for City and White Plains School District taxes. The City collects County taxes which are due in one installment on April 1st and are payable without penalty through April 30th• The City collects City and School taxes which are due in two installments, in July and January, and are payable without penalty until the end of each respective month.

The City functions in both a fiduciary and guarantor relationship with the County of Westchester and the White Plains City School District with respect to the collection and payment of real property taxes levied by such jurisdictions. The City must remit to the County 60% of the amount levied by May 25th and the balance of 40% on October 15th • With respect to School District taxes, the City must satisfy the warrant of the School District no later than February 20th of the second year after the fiscal year for which such taxes were levied. Thus, the City's fiduciary responsibility for School District taxes is from the date of the levy until two years after said date, at which time the City must satisfy its obligation to the School District, regardless of the amounts collected. The collection of School District taxes is deemed a financing transaction until the warrants are satisfied. Since the County tax warrant must be paid in full by October 15th, uncollected County taxes have been accounted for in a manner similar to City taxes.

56 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

The combined tax rate to finance City general governmental services and the payment of principal and interest on long-term debt for the fiscal year ending June 30, 2010, was $157.06 per $1,000 of taxable assessed value.

Other receivables include amounts due from other governments and individuals for services provided by the City. Receivables are recorded and revenues are recognized as earned or as specific program expenses/expenditures are incurred. Allowances are recorded when appropriate.

3. Due FromlTo Other Funds

During the course of its operations, the City had numerous transactions between funds to finance operations, provide services and construct assets. Balances of interfund amounts receivable or payable have been recorded in the fund financial statements to the extent that certain transactions between funds had not been paid or received as of June 30, 2010. Any residual balances outstanding between the governmental activities and business-type activity are reported in the government-wide financial statements as internal balances.

4. Inventory and Prepaid Items

Inventories are valued at cost using the first-inlfirst-out (FIFO) method and consist of expendable supplies and vehicle repair parts, and are reported in both the government-wide and fund financial statements. The cost of such inventories is recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are reported as prepaid items in both the government-wide and fund financial statements.

Amounts reported as inventories and prepaid items in the fund financial statements are offset by the same amount in the component of "nonspendable fund balance - not in spendable form" to indicate that these amounts do not constitute available spendable resources, even though they are a component of current assets.

5. Deferred Charges

Deferred charges in the government-wide financial statements represent the unamortized portion of the cost of issuance of refunding bonds. These costs are being amortized over the term of the respective bond issue.

6. Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business­ type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $10,000 and an estimated useful life in excess of three years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.

57 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

In the case of the initial capitalization of general infrastructure assets (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 by estimating the current replacement cost of the infrastructure to b~ capitalized and using an appropriate price-level index to deflate the cost to the acquiSition year.

Major outlays for capital assets and improvements are capitalized as projects are completed. The costs of normal maintenance and repairs that do not materially add to the value or useful life of the asset are not capitalized. Land and construction-in-progress are not depreciated.

Property, plant, equipment and infrastructure of the primary government, as well as the component units, are depreciated using the straight line method over the following estimated useful lives.

Class Life in Years Buildings and Facilities 10 - 50 Machinery and Equipment 10 - 20 Rolling Stock 3 - 15 Infrastructure 75 -100

The costs associated with the acquisition or construction of capital assets are shown as capital outlay expenditures on the governmental funds financial statements. Capital assets are not shown on the governmental funds balance sheet.

7. Unearned/Deferred 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 revenue from grants received before the eligibility requirements have been met.

Deferred 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 deferred revenues of $733,761 for real property taxes, $1,517,830 for parking permits, $24,720 for prepaid rents and $545,015 for miscellaneous fees received in advance in the General Fund.

The City has also reported deferred revenues of $8,905 in the Public Safety Grant Fund and $10,200 in the Youth Development Fund for grant funds received in advance. It has reported $276,540 in the City Center Garage Fund for parking permit fees received in advance. For deferred revenues for loans receivable, the City has reported $2,067,253 in the Community Development Fund and $36,889 in the Section 8 Housing Assistance Program Fund. Such amounts have been deemed to be measurable but not "available" pursuant to generally accepted accounting principles.

8. Long-Term Obligations

In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the government-wide and the proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. 58 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued and any premiums received are reported as other financing sources. Issuance discounts are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as Capital Projects Fund expenditures.

9. Compensated Absences

Vacation

The City's leave policy permits employees to accumulate limited earned but unused vacation benefits, which are eligible for payment upon separation from City service. The liability for such leave is reported in the government-wide and the proprietary fund financial statements as current and long-term liabilities. A liability for those amounts is recorded in the governmental funds only if the liability has matured through employee resignation or retirement. The liability for compensated absences includes salary-related benefits, where applicable.

Sick Leave

An employee's accumulated sick leave lapses upon separation from City service with no further obligation, financial or otherwise, on the part of the City.

10. Net Assets

Net assets represent the difference between assets and liabilities. Net assets are reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. Net assets on the government-wide Statement of Net Assets falls within three categories: 1) invested in capital assets, net of related debt; 2) restricted (capital projects, debt service, public safety, community services, nonrecurring repairs, permanent fund), and 3) unrestricted (the remaining balance).

11. Fund Balances

In fiscal 201 0, the City of White Plains early implemented Governmental Accounting Standards Soard Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions ("GASS 54"). GASS 54 changed the terminology and classification of fund balance to reflect spending constraints on resources, rather than availability for appropriation. This approach is intended to provide users more consistent and understandable information about a fund's net resources.

Under GASS 54, fund balance is classified as either 1) nonspendable, 2) restricted, or 3) unrestricted. Unrestricted fund balance is further classified as 1) committed, 2) assigned, or 3) unassigned:

Nonspendable fund balance represents amounts that cannot be spent due to form (such as inventories and prepaid amounts), or amounts that must be maintained intact legally or contractually (such as the prinCipal of a permanent fund).

Restricted fund balance represents amounts constrained for a specific purpose by external parties, constitutional provision or enabling legislation.

59 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

Committed fund balance represents amounts constrained for a specific purpose by a government using its highest level of decision-making authority. It would require action by the same group to remove or change the constraints placed on the resources. The action to constrain resources must occur prior to year-end; however, the amount can be determined in the subsequent period. The Common Council is the decision-making authority that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance.

Assigned fund balance, in the General Fund, represents amounts constrained by a governing board, or a body or person(s} with delegated authority from a governing board to assign amounts, for a specific intended purpose. Assigned fund balance in all other governmental funds represents any positive remaining amount after classifying nonspendable, restricted, or committed fund balance. By resolution dated May 3, 2010, the Common Council amended the City's Reserve Performance Goals to comply with GASB 54, and authorizing the Commissioner of Finance to assign fund balance.

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 only be shown if the fund's liabilities, together with the amounts classified as nonspendable, restricted, and committed exceeded the fund's assets (a residual deficit).

The City's Reserve Performance Goals provide that unless otherwise required by law or agreement, funds will be spent in the following order: restricted first, then committed, then assigned, and lastly unassigned.

The City's Reserve Performance Goals require the City to maintain a minimum unrestricted fund balance of at least 4% of the General Fund operating budget, not including any amount already provided for in the Reserve for Financing account. Unrestricted fund balance falling below this minimum level should be replenished within the succeeding fiscal year.

12. Stabilization Arrangement

By ordinance adopted May 10, 2010 and in accordance with Section 6-e of the General Municipal Law, the City of White Plains established and maintains a contingency and tax stabilization reserve fund ("rainy day fund"). The principal resource for this fund is a one-quarter of one percent (0.25%) tax on gross taxable retail sales (sales tax). Other resources include interest earned or capital gains realized on deposits or investments, and other resources as the Common Council might authorize by adopted resolution or ordinance.

Upon recommendation of the Mayor and by at least two-thirds of the voting strength of the Common Council, amounts may be withdrawn from the fund:

To finance unanticipated revenue loss chargeable to the eligible portion of the annual budget, provided that the maximum amount that may be used to finance such unanticipated revenue loss shall equal either the amount of the revenue actually received for the base year or the amount of the estimated revenue for the current fiscal year, whichever is less, minus the amount of the revenue actually received for the current fiscal year, and only to finance that portion of the unanticipated revenue loss which, as a matter of law, cannot be financed with amounts available in any other account or fund, andlor,

60 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

To finance an unanticipated expenditure chargeable to the eligible portion of the annual budget, provided that the maximum amount that may be used to finance an unanticipated expenditure shall equal the sum of the amount of the unanticipated expenditure and the amount appropriated for that purpose for the current fiscal year minus either the amount appropriated for that purpose for the current fiscal year or the actual expenditure for the same purpose in the base year, whichever is greater, and only to finance that portion of an unanticipated expenditure which, as a matter of law, cannot be financed with amounts available in any other account or fund, and/or,

To lessen or prevent any projected increase in excess of 2%% in the amount of the real property tax levy needed to finance the eligible portion of the annual budget for the next succeeding fiscal year. The maximum amount that may be used for this purpose shall equal the difference between the projected amount of such real property tax levy and 102.5% of the amount of the real property tax levy needed to finance the eligible portion of the annual budget for the current fiscal year.

When preparing the annual budget, if the current balance of the contingency and tax stabilization reserve fund exceeds 10% of the eligible portion of the annual budget for the current fiscal year, such excess shall be used to reduce the amount of real property taxes needed to finance the eligible portion of the annual budget for the next succeeding fiscal year.

Not later than 60 days after the start of each fiscal year (not later than August 29) and at such times as may be required by the Common Council, the Commissioner of Finance transmits to the Common Council a detailed report of the operation and condition of the fund during the preceding fiscal year that includes a statement of receipts and disbursements and a statement of the balance of the fund as of the last day of the preceding fiscal year. Not later than 30 days prior to the last date provided by law for the filing of the proposed budget (30 days prior to the stated meeting of the Common Council in April), the Finance Commissioner transmits to the Budget Director a statement of the current balance of the fund.

The City accounts for the contingency and tax stabilization reserve fund as restricted fund balance in the General Fund. The balance in the fund at June 30,2010 was $407,377.

13. Encumbrances

In governmental funds, encumbrance accounting under which purchase orders, contracts and other commitments for the expenditure of monies are recorded is generally employed as an extension of formal budgetary integration, and encumbrances outstanding at fiscal year end in the General Fund, Library Fund and Capital Projects Fund are reported as a commitment or aSSignment of fund balance.

14. Estimates and Assumptions

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure 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 amounts could differ from those estimates.

61 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

15. 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 November 10,2010.

Note 2: Stewardship. Compliance and Accountability

A. Budgetary Information

The procedures for establishing the budgetary data reflected in the financial statements are as follows:

1. Formal annual operating budgets are adopted by the Common Council for the General Fund, Library Fund, Water Fund, Debt Service Fund and Self Insurance Fund. General, Library and Debt Service Fund budgets are prepared on a basis consistent with generally accepted accounting prinCiples ("GAAP") and serve as management control devices during the fiscal year. The Capital Projects Fund is budgeted on a project basis with Common Council approval. Other special revenue funds and the Permanent Fund do not have annual budgets, since grant awards and revenues received under other contractual requirements recorded in these funds span more than a single fiscal year.

2. Prior to January 15'" of each year, the Budget Director furnishes to the heads of departments, offices and other spending agencies, instructions for the submission of budget estimates for the General Fund, Library Fund, Water Fund, Debt Service Fund and Self Insurance Fund.

3. Not later than February 15th, estimates of the expenditure requirements and projected revenues for the new budget year are submitted to the Budget Director. Immediately thereafter, the Budget Director conducts departmental budget hearings to review said estimates, after which he/she may revise the estimates based upon the needs of the various spending agencies and the probable total revenue available to the City.

4. At the first stated meeting of the Common Council in April, the Budget Director presents the proposed budgets to the Mayor and the members of the Common Council. Immediately thereafter, the Common Council commences consideration and review of the proposed budgets.

5. Public sessions are held by the Common Council during the months of April and May on the proposed budgets.

6. On or before May 30th, the budgets are legally enacted through adoption of ordinances by the Common Council. The budgets are not subject to referendum.

7. The Commissioner of Finance may not disburse money unless appropriated and may not disburse funds in excess of such appropriations. With the exception of personal services and related employee benefits, department heads are authorized, in all funds, to transfer budgeted amounts up to $5,000 between major objects of expenditure within their department, which is the legal level of budgetary control, with the approval of the Budget Director. Transfers in excess of $5,000 between major objects of expenditures within a department, transfers of personal services, related employee benefits,

62 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

transfers between departments and any revisions that alter the total expenditures of any fund must be approved by the Common Council.

8. Appropriations in all budgeted funds lapse at the end of the fiscal year, except that outstanding encumbrances are re-appropriated in the subsequent year pursuant to the Uniform System of Accounts promulgated by the Office of the State Comptroller.

B. Property Tax Limitation

The amount that may be raised by the City for real property taxes in any fiscal year, for purposes other than for debt service on City indebtedness, is limited by the Constitution of the State of New York to 2% of the five-year average full valuation of taxable real property located within the City. For the fiscal year 2009-2010, the maximum tax amount which could have been raised was $195,591,771, which exceeded the levy by $150,796,320.

C. Capital Projects Fund Deficits

Individual projects within the Capital Projects Fund reported deficits at year end primarily due to the application of generally accepted accounting principles to the financial reporting of the fund. Bond anticipation notes issued to finance the construction of capital projects are recognized in the fund financial statements as a liability, not an "other financing source", and are recognized as revenue only to the extent that they are redeemed. These "deficits" will be eliminated as the bond anticipation notes are redeemed from interfund transfers from other governmental funds or converted to permanent financing. Other deficits, where no bond anticipation notes were issued or outstanding to the extent of the project deficit, arise because of expenditures and encumbrances exceeding current financing on the projects. These deficits will be eliminated with subsequent funding from the General Fund, grants and aid, and/or permanent financing.

Note 3: Detailed Notes on all Funds

A. Taxes Receivable

Taxes receivable at June 30, 2010 consisted of the following:

Current Year Prior Years Total City $ 533,243 $ 272,835 $ 806,078 School 1,681,446 548,642 2,230,088 County and Sewer 949,342 366,864 1,316,206

Liens and other Charges 954,511 9541511

Total $ 31164,031 $ 211421852 $ 5,306,883

Taxes receivable are partially offset in the fund financial statements by deferred tax revenues of $ 733,761, which represents an estimate of the receivable that will not be collected within the first 60 days of the subsequent year.

Other receivables at June 30, 2010 of the City's governmental activities consisted of rehabilitation loans, charges for services, utility gross receipts and miscellaneous items. The receivable of the business-type activity consisted of water rents.

63 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

B. Due FromlTo Other Funds

The balances reflected as due from/to other funds at June 30,2010 are as follows:

Receivable Fund Payable Fund Amount

General Community Development $ 15,000 Public Safety Grant 227,747 Youth Development 428,455 $ 671,202

The outstanding balances between funds result mainly from the time lag between the dates that interfund goods and services are provided or reimbursable expenditures occur and payments between funds are made. These balances also include the amount of working capital loans made to both the Public Safety Grant and Youth Development Funds that the General Fund expects to collect in the subsequent year.

C. Capital Assets Capital assets activity for the year ended June 30, 2010 was as follows:

Balance Balance Government Activities: July 1, 2009 Increases Decreases June 30, 2010 capital assets, not being depreciated: Land $ 50,067,172 $ $ $ 50,067,172

Constructlon-In-Progress 61891 1118 5,771,012 7,740,840 4,921,290 Total capital assets, not being depreciated 56,958,290 5,771,012 7,740,840 54,988,462 capital assets, being depreciated: Buildings and facilities 215,826,259 1,122,288 216,948,547 Machinery and equipment 9,859,125 46,810 9,905,935 Rolling stock 20,486,287 1,761,522 1,278,782 20,969,027

Infrastructure 20718261145 418101220 212,636,365 Total capital asset, being depreciated 453,997,816 7,740,840 1,278,782 460,459,874

Less accumulated depreciation for: Buildings and facilities 83,185,398 5,464,513 88,649,911 Machinery and equipment 7,157,808 409,901 7,567,709 Rolling stock 13,077,119 1,537,450 1,278,782 13,335,787

Infrastructure 1261211 1941 514231831 131,6351772 Total accumulated depreciation 229,632,266 12,835,695 1,278,782 241,189,179 Total capital assets being depreciated, net 224,365,550 (5,094,855) 219,270,695

Govemment activities capital assets, net $ 281,323,840 $ 676,157 $ 7,740,840 $ 274,259,157

Depreciation expense was charged to the functions/programs of the governmental activities of the primary government as follows:

Government activities: General government $ 751,912 Public Works 9,572,393 Public Safety 1,515,505 Community Services 995,885 Total depreciation expense governmental activities $ 12,835,695

64 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

Balance Balance Business-type Activity: July 1, 2009 Increases Decreases June 30, 2010 Capital assets, not being depreciated: Land $ 584,715 $ $ $ 584,715 Construdion-In-progress 5,363,783 386,107 5,749,890 Total capital assets, not being depreciated 5,948,498 386,107 $ 6,334,605

Capital assets, being depreciated: Buildings and facilities 5,274,379 5,274,379 Machinery and equipment 639,293 639,293 Rolling stock 703,673 160,541 45,627 818,587

Infrastrudure 35,4221287 3514221287 Total capital asset, being depreciated 42,039,632 160,541 45,627 42,154,546

Less accumulated depreciation for: Buildings and facilities 1,921,157 109,279 2,030,436 Machinery and equipment 630,879 1,579 632,458 Rolling stock 533,518 37,586 45,627 525,477

Infrastrudure 141020,559 733,977 14,7541536 Total accumulated depreciation 17,106,113 882,421 45,627 17,942,907

Total capital assets being depreciated, net 24,933,519 (721,880) 24,211,639

Govemment activities capital assets. net $ 301882,017 $ ~335l731 $ $ 301546.244

Total depreciation expense for the business-type activity of the primary government was $882,421.

Construction Commitments

The City has active construction projects as of June 30, 2010 which include both new construction and renovations to its existing properties. At year end, the City had $1,113,395 in construction encumbrances. Capital Assets - Discretely Presented Component Units

Capital assets activity for the Urban Renewal Agency for the year ended June 30, 2010, was as follows: Balance Balance July 1. 2009 Increases Decreases June 30. 2010 Urban Renewal CapHaIAsse~Land $ 6.601,630 $ 150.000 $3.857.870 $ 2.893.760

65 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

Capital assets activity for the Cable TV Commission for the year ended June 30, 2010, was as follows:

Balance Balance July 1, 2009 Increases Decreases June 30, 2010

Capital assets, being depreciated: Building and facilities $ 345,616 $ 345,616 Machinery and equipment 320,730 320,730

Rolling stock 321513 321513 Total capital assets, being depreciated 698,859 698,859

Less accumulated depreciation for: Buildings and facilities 228,109 13,825 241,934 Machinery and equipment 236,690 21,008 257,698

Rolling stock 271634 3,251 30,885 Total accumulated depreciation 492,433 38,084 530,517

Cable TV Commission capital assets, net $ 2061426 $ ~38,084l $ $ 168,342

Depreciation expense charged to the Cable TV Commission component unit was $ 38,084.

D. Accrued Liabilities Accrued liabilities at June 30, 2010 were as follows: Nonmajor Total General Governmental Governmental Fund Funds Funds

Salary and employee benefits $1,856,267 $ 209,808 $2,066,075 Other 193,841 193,841 Total accrued liabilities ~ 1,856,267 1 403,649 12.259.916

E. Pension Obligations

The City participates in the New York State and Local Employees' Retirement System ("ERSD) and the New York State and Local Police and Fire Retirement System ("PFRSD) ("SystemsD). These Systems are cost-sharing, multiple-employer, defined benefit retirement plans that provide retirement, disability and death benefits to plan members. Contributions required of employers and employees, and benefits to employees, are govemed by the New York State Retirement and Social Security Law. The Systems issue a publicly available financial report that includes financial statements and required supplementary information. That report may be accessed at http://www.osc.state.ny.us/retire/ or obtained by writing to the New York State and Local Retirement System, 110 State Street, Albany, N.Y. 12244.

Employer and employee contribution rates are actuarially determined and based upon membership plan and tier. Contributions consist of a penSion contribution and a group term life insurance portion ("GTLn component. Contributions are certified by the State Comptroller and expressed as a percentage of member's salary.

66 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

Contributions made to the Systems for the years indicated are:

Fiscal Governmental Business-type Cable Year Activities Activity Television Total ERS PFRS 2010 $3,233,708 $153,790 $27,324 $3,414,822 $5,398,252 2009 2,889,552 141,621 26,816 3,057,959 5,323,640 2008 3,349,795 157,221 28,591 3,535,607 4,948,293

These contributions were equal to 100% of the actuarially required contribution for each respective fiscal year.

F. Short-Term Non-capital Borrowings

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

Year of Original Interest Balance Balance Issue Rate 07/01/09 Issues Redemptions 06130110

Component Unit, Urban Renewal Agency- Revenue Anticipation Note 2007 2.00% $4,000,000 i $4,000,000 i

The taxable revenue anticipation note was issued in anticipation of the receipt of land sale proceeds. The note, renewed on May 27,2009, matured on December 29,2009 and was paid in full. Interest expense of $47,111 was recorded in the Urban Renewal Agency, a component unit of the City.

Intentionally left blank

67 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

G. Short-Term Capital Borrowings

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

Original Interest Balance Balance Issue Rate 07/01/10 Issues Redemptions 06/30110 Govemmental Activities:

Rolling Stock AcquisitionlRefurbish FY 05 2005 2.00% $ 301,625 $ $ 301,625 Single Space Electronic Parking Meters 2005 2.00 70,000 70,000 Ebersole Ice Rink Floor Renovation 2008 2.00 125,000 125,000 Library Roof Replacement 2008 2.00 50,000 50,000 Delfino Park Improvements 2008 2.00 40,000 40,000 Multi Space Meters-Galleria Garage 2008 2.00 768,000 768,000 Hybrid Aerial Bucket Truck 2008 2.00 110,000 110,000 Miscellaneous Sanitary Sewer Reconstruction FY 05 2009 2.00 135,775 135,775 Miscellaneous Storm Water Drain FY 07 2009 2.00 250,000 250,000 Municipal Parking Structure Rehabilitation FY 07 2009 2.00 350,000 350,000 Renovations to Fire Facilities FY 08 2009 2.00 350,000 350,000 Miscellaneous Street Reconstruction FY 08 2009 2.00 1,757,800 1,757,800 North White Plains Parking Lot Rehabilitation 2009 2.00 100,000 100,000 Chatterton Playground 2009 2.00 125,000 125,000 Municipal Parking Structure Rehabilitation FY 09 2009 2.00 300,000 300,000 Rolling Stock Acquisition-Heavy Duty Vehicles FY 09 2009 2.00 1,547,000 1,547,000 Public Safety Radio System Phase II 2009 2.00 525,000 525,000 Library Interior Renovations 1st Floor Restrooms 2009 1.50 225,000 225,000 Public Library Roof Replacement Phase I 2009 1.50 535,000 535,000 Miscellaneous Storm Water Drains FY 09 2009 1.50 500,000 500,000 Public Safety I-Series Computer Main Frame 2009 1.50 150,000 150,000 Renovations to Fire Facilities FY 09 2009 1.50 250,000 250,000 140 S. Kensico Ave. Rehabilitation-Structural 2009 1.50 300,000 300,000 Rolling Stock Heavy Duty Vehicles FY 10 2009 1.50 1,040,000 1,040,000 Gedney Way Landfill Capping 2009 1.50 250,000 250,000 6,905,200 3,250,000 6,905,200 3,250,000 Business-type Activity Orchard St. Pump Station Upgrades 2006 3.00 125,000 125,000 Water Transmission from CAPS 2009 2.00 1,500,000 1,500,000 1,625,000 1,625,000

Total Short-Term Capital Borrowings $ 8,530,200 $ 3,250,000 $ 8,530,200 $ 3,2501000

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. 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 improvement projects may be renewed for periods equivalent to the maximum life of the permanent financing, provided that stipulated annual reductions of principal are made.

Bond antiCipation notes interest expense of $115,443 was recorded in the government-wide financial statements for governmental activities. Interest expenditures of $138,104 were recorded in the fund financial statements of the Debt Service Fund. Interest expense of $18,083 was recorded in the government-wide financial statements for business-type activity and in the proprietary fund.

68 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

H. Long-Term Liabilities

Changes in the City's long-term liabilities for the year ended June 30, 2010 were as follows:

Maturities Due Balance New and/or Balance Within July 1, 2009 Issues Payments June 30, 2010 One Year Govemmental Activities: Bonds payable $ 72,n2,863 $ 12,605,325 $ (9,894,033) $ 75,484,155 $ 4,473,059 Deferred amounts on refunding ~921339l 44,802 ~1,099l ~4816361 72,680,524 12,650,127 (9,895,132) 75,435,519 4,473,059 New York State loans payable 3,924,345 (496,895) 3,427,450 521,740 Bond anticipation notes payable 1,000,000 4,400,000 (250,000) 5,150,000 5,150,000 Tax certiorari 5,586,750 3,043,523 (2,856,975) 5,n3,298 3,000,000 Compensated absences 5,259,239 870,191 (1,051,848) 5,On,582 2,538,791 Other post employment benefit obligations payable 10,609,000 17,673,000 (8,222,000) 20,060,000 Govemmental activities Long-term liabilities $ 99,059,858 $ 3816361841 $ {22,772,8501 $ 1141923,849 $ 1516831590

Governmental fund liabilities for bonds are liquidated by the Debt Service Fund, which is primarily funded by the General Fund. The liability for state loans, bond anticipation notes and tax certiorari is liquidated by the General Fund. Each governmental funds' liability for compensated absences and other post employment benefit obligations is liquidated by the respective fund.

Maturities Due Balance New and/or Balance Within July 1, 2009 Issues Payments June 30, 2010. One Year Business-~ Activmt: Bonds payable $ 10,042.137 $ 3,2n,500 $ (1,146,967) $ 12,172,670 $ 995,766 Deferred amounts on refunding ~1,9511 325 ~1,6261 10,042,137 3,275,549 (1,146,642) 12,171,044 995,766

Compensated absences 59,897 38,882 (11,979) 86,800 8,680 Other post employment benefit obligations payable 259,000 348,000 101,000 506,000

Business-type activity Long-term liabilities $ 10,361,034 $ 3,662,431 $ (1,057,621) $ 12,763,844 $ 1,004,446

Component unit- cable Television Compensated absences $ 2,266 $ 21,226 $ (5,359) $ 18,133 $ 2,125 Other post employment benefit obligations payable 42,000 49,000 (7,000) 84,000

Component unit- Long-term liabilities $ 441266 $ 3,732,657 $ {1,069,9801 $ 121865,9n $ 11006,571

69 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

Bonds Payable The primary government issues general obligation bonds to provide funds for major capital projects. General obligation bonds have been issued for both governmental and business-type activities.

General obligation bonds at June 30, 2010 were comprised of the following individual issues:

Governmental Activities: Interest Sale Original Rates to Final Outstanding Serial Bond DescriQtion Date Borrowing Maturity Maturi~ June 30,2010

Public Improvements 2000 $3,235,000 5.125% 2011 $ 275,000 Public Improvements (Series A) 2001 2,100,000 4.125-4.20 2012 350,000 Public Improvements (Series A) 2002 21,100,000 4.25 2011 940,000 Public Improvements (Series B) 2002 2,950,000 4.25 2011 125,000 Public Improvements 2003 7,525,000 3.50-3.60 2018 4,552,743 Public Improvements (Taxable Bond) 2003 360,000 5.15 2014 144,000 Public Improvements 2004 8,112,000 4.00-4.50 2029 6,200,000 Public Improvements (Library) 2004 1,075,000 4.00-4.50 2024 830,000 Public Improvements 2005 3,575,000 3.50-4.25 2025 2,940,184 Public Improvements (Library) 2005 2,700,000 3.50-4.25 2025 2,220,557 Public Improvements 2006 3,574,000 4.00-4.25 2021 2,815,000 Public Improvements (Refunding) 2007 12,470,000 4.00-5.00 2022 12,280,000 Public Improvements 2007 8,644,500 4.00-4.25 2027 7,730,000 Public Improvements (Series A) 2008 3,835,000 3.375-4.00 2028 3,446,346 Public Improvements (Series B) 2008 18,750,000 4.00-4.375 2033 17,800,000 Public Improvements (Series C) 2008 250,000 6.25-6.750 2033 230,000 Public Improvements 2010 6,972,825 1.50-4.00 2030 6,972,825 Public Improvements (Library) 2010 37,500 1.50-4.00 2030 37,500 Public Improvements ( Refunding) 2010 5,595,000 2.00-4.00 2016 5,595,000 $ 75.484,155

Business-tvDe Activitv: Interest Sale Original Rates to Final Outstanding Serial Bond DescriQtion Date Borrowing MaturiW Maturity June 30, 2010

Public Improvements (Refunding-Series A) 1998 $2,440,000 4.875-4.90% 2012 $ 330,000 Public Improvements (Series A) 2001 445,000 4.125-4.20 2012 250,000 Public Improvements 2003 450,000 3.50-3.60 2018 272,257 Public Improvements 2004 1,500,000 4.00-4.50 2024 1,170,000 Public Improvements 2005 1,902,000 3.50-4.25 2025 1,564,259 Public Improvements 2006 2,700,000 4.00-4.25 2021 1,760,000 Public Improvements 2007 2,865,000 4.00-4.25 2027 2,650,000 Public Improvements (Series A) 2008 1,000,000 3.375-4.00 2028 898,654 Public Improvements 2010 3,062,500 1.50-4.00 2030 3,062,500 Public Improvements (Refunding) 2010 215,000 2.00-4.00 2016 215,000 I 12,172,670

Bond interest expense of $2,988,203 was recorded in the government-wide financial statements for governmental activities. Interest expenditures of $3,001,691 were recorded in the fund financial statements in the Debt Service Fund. Interest expense of $430,603 was recorded in the fund financial statements and government-wide financial statements for the business-type activity.

70 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

New York State Loans Payable

The ERS and PFRS charges to participating governments increased significantly in 2003. Consequently, the State Legislature enacted Chapter 49 of the Laws of 2003 and Chapter 260 of the Laws of 2004 which enabled employers to amortize a portion of their next three years' bills. For fiscal years 2005,2006 and 2007, contributions in excess of 7%, 9.5%, and 10.5% respectively of covered payroll were eligible for amortization. All amortization payments include a 10 year repayment schedule with interest at 5% per annum. The City, at its option, can elect to accelerate its amortization payments to the State.

The City has chosen to amortize the following PFRS contributions:

Fiscal Amount Balance New Balance Contribution Amortized 07/01/09 Issues Payments 06/30110

2005 $ 2,350,000 $ 1,544,713 $ $ 227,100 $ 1,317,613 2006 1,518,668 1,138,032 139,772 998,260 2007 1,483,365 1,241,600 130,023 1,111,577 I 5,352,033 $ 3,924,345 I I 496,895 I 3,427,450

During 2010 the amortized payments, including interest of $ 196,218, were charged to expenditures in the General Fund and to the government-wide financial statements for governmental activities.

Bond Anticipation Notes Payable

The schedule below details changes in long-term non-capital borrowings:

Original Interest Balance Balance Issue Rate 07/01/09 Issues Redemptions 06130/10

Primary Govemment, Govemmental activities- Bond Anticipation Note 2008 2.10% $ 1,000,000 $ $ 250,000 $ 750,000 Bond Anticipation Note 2009 1.50% 2,000,000 2,000,000 Bond Anticipation Note 2009 1.19% 400,000 400,000

Bond Anticipation Note 2010 0.82% 210001000 2,0001000

$ 1,0001000 $ 4 1400,000 $ 250,000 $5,1501000

Bond anticipation notes interest expense of $39,411 was recorded in the government-wide finanCial statements for governmental activities. Interest expenditures of $21,000 were recorded in the General Fund.

The City, pursuant to FASB 6, Classification of Short-Term Obligations Expected to Be Refinanced - an amendment of ARB No. 43, Chapter 3A, has not recorded these liabilities in the fund financial statements since it has demonstrated an ability to consummate refinancing. The ability to consummate refinancing was evidenced by obtaining permanent financing or a renewal of the note prior to the issuance of the financial statements. These notes were renewed September 16, 2010 with interest payable at 1.50%.

71 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

Payments to Maturity

Annual debt service requirements to maturity for general obligation bonds, State loans, and bond anticipation notes are as follows: Governmental Activities

Year Ending Bonds New York State Loans Bond Anticipation Notes June 30, Principal Interest Principal Interest Principal Interest 2011 $ 4,473,059 $ 2,934,462 $ 521,740 $ 171,373 $ 5,150,000 $ 48,215 2012 4,398,436 2,803,282 547,827 145,286 2013 4,377,299 2,662,895 575,218 117,894 2014 4,483,196 2,505,470 603,979 89,133 2015 4,645,775 2,363,473 634,175 58,934 2016-2020 22,714,981 9,014,521 544,511 36,374 2021-2025 16,851,915 4,744,307 2026-2030 10,064,494 1,929,664

2031-2033 3,475,000 308 1931 $ 75,484,155 $ 29,267,005 $ 3,427,450 $ 618,994 $5,150,000 $ 48,215

Business-type Activity Year Ending Bonds Total June 30, Principal Interest Principal Interest 2011 $ 995,766 $ 458,856 $ 11,140,565 $ 3,612,906 2012 1,002,564 423,155 5,948,827 3,371,723 2013 703,701 388,245 5,656,218 3,169,034 2014 712,804 363,922 5,799,979 2,958,525 2015 714,225 339,102 5,994,175 2,761,509 2016-2020 3,445,019 1,315,802 26,704,511 10,366,697 2021-2025 3,053,085 677,351 19,905,000 5,421,658 2026-2030 1,545,506 159,949 11,610,000 2,089,613

2031-2033 3,4751000 308 1931

$ 121172,670 $ 4,126,382 $ 96,234,275 $ 34,060,596

The above general obligation bonds, State loans and bond anticipation notes 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.

Advanced Refunding

The City issued $5,810,000 in public improvement bonds with interest rates ranging from 2.0% to 4.0%. The proceeds were used to advance refund $5,730,000 of outstanding 2000,2001 Series B, 2002 Series A and 2002 Series B public improvement bonds which had interest rates ranging from 4.25% to 5.25%. The net proceeds of $5,937,204 (including $249,914 of re-offering premium and after payment of $122,710 in underwriting fees and other issuance costs) were deposited in an irrevocable trust with an escrow agent to provide funds for the future debt service payments on the refunded bonds. As a result, the 2000, 2001 Series B, 2002 Series A and 2002 Series B public improvement bonds are considered defeased and the liability for those bonds has been removed from the Statement of Net Assets.

72 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

The reacquisition price exceeded the net carrying amount of the old debt by $207,063. This amount and the premium are being netted against the new debt and amortized over the remaining life of the refunded debt. The City advanced refunded the 2000, 2001 Series B, 2002 Series A and 2002 Series B public improvement bonds to reduce its total debt service payments over 6 years by $327,142 and to obtain a net present value economic gain of $276,773. As of June 30, 2010 $3,530,000 of the bonds are considered defeased.

Prior Year Defeasance

In prior years, the City defeased public improvement bonds by placing the proceeds of the new bonds in an irrevocable escrow account to provide for all debt service payments on the old bonds. Accordingly, the escrow account assets and the liability for the defeased bonds are not included in the City's financial statements. At June 30, 2010, $12,230,000 of bonds outstanding are considered defeased.

Tax Certiorari

At June 30,2010, there were approximately 406 tax certiorari proceedings pending against the City to reduce various assessments upon which taxes had been levied between fiscal year 1992 and fiscal year 2010. Based upon historical experience, the City has estimated it can reasonably be expected to refund approximately $ 5.7 million and accordingly, this amount has been recorded as a liability in the Government-wide Statement of Net Assets at June 30, 2010.

Other Post-Employment Benefit Obligations

The City provides health care benefits for retired employees through a single employer defined benefit plan for which a separate audited report is not issued. The City's Municipal Code and the various collective bargaining agreements stipulate the employees covered, and the percentage of contribution, if any, which may vary according to an employee's length of service. The City pays the cost of the post-employment health care benefits for retirees, their spouses, and their dependents during the life of the retiree. Surviving spouses of retirees may elect to continue health care benefits at their own expense. Substantially all of the City's employees may become eligible for these benefits if they reach normal retirement age while working for the City. The cost of retiree health care benefits is recognized as an expenditure as claims are paid within the governmental funds.

The City's annual other post-employment benefit ("OPEB") cost (expense) is calculated based on the annual required contribution ("ARC"), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. GASB Statement No. 45 establishes standards for the measurement, recognition and display of the expenses and liabilities for retirees' medical insurance. As a result, reporting of expenses and liabilities will no longer be done under the "pay-as-you-go" approach. Instead of expensing the current year premiums paid, a per capita claims cost will be determined, which will be used to determine a "normal cost", an "actuarial accrued liability" and ultimately the ARC. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years.

Actuarial valuations for OPEB plans involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. These amounts are subject to continual revisions as results are compared to past expectations and new estimates are made about the future. Calculations are based on the OPEB benefits provided under the terms of the substantive plan in effect at the time of each valuation and on the pattern of sharing costs between employer and plan members to that pOint. In addition, the assumptions and projections utilized do not explicitly

73 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010 incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. The actuarial calculations of the OPEB plan reflect a long-term perspective.

The City is required to accrue on the city-wide and proprietary funds financial statements the amounts necessary to finance the plan as actuarially determined, which is equal to the expected rate of return on the City's general assets. Funding for the Plan has been established on a pay-as-you-go basis.

The assumed increase in post-retirement benefits is 10% for the first year, decreases in years two through seven to 9%, 8%, 7%, 6% (for years five and six) and 5%, respectively, and then continues at 5% thereafter.

The amortization basis is the level percentage of projected payroll over 30 years with an open amortization approach with 29 years remaining in the amortization period. The actuarial cost method utilized was the projected unit credit method. The actuarial assumptions included a 4.5% investment rate of return, a 3% inflation rate and a 3% annual growth rate. The City currently has no assets set aside for the purpose of paying post-employment benefits. Current New York State law prohibits municipalities from pre-funding retiree health care benefits obligations in a Trust Fund. If and when New York municipalities are permitted to pre-fund these obligations, the City will have the option of doing so in order to reduce and/or eliminate the accumulated liability.

The number of participants as of June 30, 2010 was as follows:

Govemmental Business-type Component Unit- Activities Activity WPClVC Active Employees 979 7 4 Retired Employees 637 31· 1 Total 1,616 38 5

Govemmental Business-type Component-Unit- Activities Activity Cable Television Amortization Component:

Actuarial Accrued Uability as of July 1, 2009 $ 235,480,000 $ 7,180,000 $ 450,000 Assets at Market Value

Unfunded Actuarial Accrued Uability rUAAL") $ 235,4801°00 $ 71180,000 $ 450,000 Funded Ration 0.00% 0.00% 0.00% Covered Payroll (active plan members) $ 69,015,000 $ 1,650,000 $ 325,000 UAAL as a Percentage of Covered Payroll 341.20% 435.15% 138.46%

Annual Required Contribution 17,636,000 347,000 47,000 Interest on Net OPES Obligation 478,200 9,800 2,000 Adjustment to Annual Required Contribution (441,200) (8,800) Annual OPES Cost 17,673,000 348,000 49,000 Contributions Made (8,222,000) (101,000) (7,000) Increase to Net OPEB Obligation 9,451,000 247,000 42,000 Net OPES Obligation, Beginning of year 10,609,000 259,000 42,000

Net OPEB Obligation, End of year $ 4711841000 $ 11101 1°00 $ 84 1°°0

74 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the current and preceding year is as follows:

Percentage of Fiscal Year Annual AnnualOPEB NetOPEB Ended June 30, OPEB Cost Cost Contributed Obligation Governmental 2010 $ 17,673,000 46.10% $ 20,060,000 Activities 2009 18,378,000 42.27% 10,609,000

Business-type 2010 $ 348,000 29.02% $ 506,000 Activity 2009 343,000 24.49% 259,000

Component 2010 $ 49,000 14.29% $ 84,000 Unit 2009 49,000 14.29% 42,000

The City first implemented the provisions of GASB Statement No. 45 for the fiscal year ended June 30,2009.

I. Interfund Transfers

Interfund 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 Out: Nonmajor Governmental Funds capital General Projects Debt Total Transfers In: Fund Fund Library Service Transfers In

General Fund $ $ 17,060 $ - $ - $ 17,060 Capital Projects Fund 102,950 644,875 747,825 Nonmajor Govemment Funds: Library 5,128,108 5,128,108 Public Safety Grant Fund 37,256 37,256 Debt ServIce Fund 7,449,185 592,858 294,057 8,337,100

Housing Authority Enhancement Fund 1,620 11620

Total Transfers Out $1217191119 $ 609,918 $2941057 $ 6441875 $ 141268,969

Transfers are used to 1) move revenues from the fund with collection authorization to the Debt Service Fund as debt service principal and interest payments become due, and 2) move unrestricted General Fund revenues to finance various programs that the government must account for in other funds in accordance with budgetary authorizations, including amounts provided as subsidies or matching funds for various grant programs.

75 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

J. Lease Agreements

Commitments under lease agreements for a Senior Center facility operated by the City and for handicapped-accessible office space for the City's Building and Parking Departments provide for minimum annual rental payments as follows:

Year Ending Senior Building Parking June 30, Center Department Department 2011 $ 264,000 $ 178,925 $ 84,583 2012 264,000 183,200 14,192 2013 264,000 106,867 2014 264,000 2015 264,000 2016-2020 1,344,025 2021-2025 1,472,539 2026-2027 791,978

Rental expenditures charged to operations of the primary government for fiscal year 2009-10 were $559,682.

The City, under various agreements, leases real property for usage as parking lots. Rental payments are based on parking income generated or negotiated on a year-to-year basis. The City is responsible for ordinary repairs and maintenance of its leased properties. Rental expense charged to operations aggregated $205,589 in the fiscal year ending June 30,2010.

K. Net Assets

The components of net assets are detailed below:

Invested in capital assets, net of related debt - This component of net assets consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.

Restricted net assets - Net assets should be reported as restricted when constraints placed on net asset use are either 1) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments, or 2) imposed by law through constitutional provisions or enabling legislation. Permanent endowments or permanent fund principal amounts are displayed as two components of restricted net assets - expendable and nonexpendable. Nonexpendable net assets are those that are required to be retained in perpetUity. Specific identification of restricted net assets presented in the City's financial statements is as follows:

Restricted for Capital Projects - net assets that reports the amounts restricted for capital projects, exclusive of unexpended bond proceeds.

76 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

Restricted for Debt Service - net assets that reports the difference between assets and liabilities of the Debt Service Fund with constraints placed on their use by Local Finance Law and bond ordinances.

Restricted for Public Safety - net assets that represents funds restricted for public safety activities under federal or state laws or by external parties and/or statutes.

Restricted for Community Services - net assets of the nonmajor governmental funds, exclusive of the Debt Service Fund, Permanent Fund, and Police Activities Fund, that are legally or administratively restricted for specific purposes under federal or state laws or by external parties and/or statutes.

Restricted for Nonrecurring Repairs - net assets of the City Center Garage Fund, restricted by ordinance and/or legal agreements to be used for certain repairs to the City Center Garage.

Restricted for Tax Stabilization - the component of net assets of the General Fund that has been established by City ordinance to set aside a portion of the sales tax revenue to be used in accordance with Section 6-e of the General Municipal Law.

Restricted for Permanent Fund - net assets that reports the difference between assets and liabilities of the Goldie Zeitlin Memorial Fund, with $10,000 of this difference representing an endowment amount that must be retained in perpetuity (nonexpendable), and the remaining balance, if any, representing expendable restricted net assets that can only be used for programs related to urban concerns.

Unrestricted - Unrestricted net assets consist of net assets that do not meet the definition of "restricted" or "invested in capital assets, net of related debt."

Note 4: Other Information

A. Self Insurance Fund

The City, including its component units, is self insured for workers' compensation, general and automobile liability, and unemployment benefits. Insurance pOlicies were purchased for the following exposures with the deductible or self insured retention indicated in parenthesis: public officials and employment practices liability ($25,000/$100,000 deductible), property ($1 OO,OOO/deductible), workers' compensation excess coverage ($750,000/self insured retention), boiler and machinery ($10,000/deductible), and employee faithful performance ($25,000 deductible). The City self insures its general and automobile liability and purchases an excess liability insurance policy ($1 ,OOO,OOO/self insured retention).

The Self Insurance Fund ("SIF"), an internal service fund, is funded by charges to the City's other funds and component units, and is based primarily upon the contributing funds claims experience. Estimates for incurred but not reported ("IBNR") losses and trend and development factors for workers' compensation, general liability and auto liability claims, as well as administrative costs, are also formulated into the contributions. Each contributing fund, based upon its proportionate share of SIF fund balance, benefits from the investment income earned by the SIF.

There were no significant reductions in insurance coverage from fiscal year 2008-09 to fiscal year 2009-10. For the exposure covered by insurance, there were no settlements in excess of the insurance coverage in any of the three prior fiscal years.

77 CITY OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010

Reconciliation of claims/liabilities is as follows:

General and Workers' Automotive Compensation Liability Liability - June 30, 2008 $ 1,498,034 $ 2,371,795 Claims incurred 291,336 218,036 Claims payment (1,263,384) (807,336) Changes to prior year estimates 570,346 681,962 Liability - June 30 2009 1,096,332 2,464,457 Claims incurred 481,047 130,050 Claims payments (1,101,616) (790,244) Changes to prior year estimates 605,007 398,423 Liability - June 30, 2010 $ 1,080,770 $ 2,202,686

B. Litigation

There are claims against the City that have occurred in the normal course of operations for personal injuries and wrongful death claimed to have been sustained from various causes. Additionally, litigation is pending with respect to other miscellaneous matters. In the opinion of the management of the City, based on the advice from the Corporation Counsel, the final disposition of these matters will not have a materially adverse effect on the financial condition of the City.

C. Contingencies

The City participates in various Federal grant programs, principal of which are programs ofthe United States Department of Housing and Urban Development. These programs are subject to program compliance audits pursuant to the Single Audit Act as amended in 1996. The amount of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the City anticipates such amounts, if any, will be immaterial.

D. Subsequent Events

Beginning with fiscal year 2010-2011, the City established a Sewer Rent Fund, an enterprise fund, that will be used to account for sanitary sewer activities. The creation of this fund allows the City to more equitably distribute the cost of operating and maintaining the City's sewer system to the users of the system, rather than to property taxpayers only.

Effective July 1, 2010, the City's contribution for health insurance premiums was reduced from 100% to 85% for aI/ eligible employees not covered by a col/ective bargaining agreement, certain newly hired eligible employees, all eligible grant-funded employees and all eligible retired employees not covered by a collective bargaining agreement. Litigation is pending regarding the City's right to reduce its contribution.

On September 16, 2010, the City issued $9,186,750 bond antiCipation notes of which $4,500,000 was for tax certiorari judgements, $4,286,750 was for various capital projects and $400,000 was for funds for the Urban Renewal Agency. The interest rate on the notes is 1.50% and the maturity date is September 16, 2011.

78 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND ADDITIONAL SCHEDULES

79 CITY OF WHITE PLAINS, NEW YORK GENERAL FUND SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES COMPARED TO BUDGET FOR THE FISCAL YEAR ENDED JUNE 3D, 2010

Variance with Budgeted Amounts Final Budget Positive Original Final Actual {Negative} REVENUES Taxes and Related Items: Property taxes $ 44,845,451 $ 44,845,451 $ 44,100,703 $ (744,748) Payments in lieu of taxes 2,905,835 2,905,835 2,597,634 (308,201) Interest and lien fees 225,000 225,000 355,084 130,084

Less allowance for uncollected taxes and tax certiorari (20,OOO} (20 1000} (15,747} 4,253 47,956,286 47,956,286 47,037,674 (918,612) Sales and use taxes 47,350,000 47,350,000 43,533,909 (3,816,091 ) Hotel occupancy tax 688,580 688,580

Utility gross receipts tax 115001000 1,500,000 1,419,855 (80,145}

Total Taxes and Related Items 961806,286 9618061286 921680,018 (411261268}

Intergovemmental: Federal Support: Emergency Management Assistance 399,429 399,429 Senior Citizens - Title III B 12,922 14,340 10,444 (3,896) Nutrition Program-Title mc 37,663 37,663 35,087 (2,576) Commodity funding 4,300 4,300 2,150 (2,150) U.S.-OOJ Bullet Proof Vest Partnership 7,977 7,977

F.B.I. Violent Crime Task Force 71500 71500 51924 (1,576}

621385 63,803 461 1011 3971208

State Support: Aid and Incentives to Municipalities ("AIM") 5,896,127 5,896,127 5,719,243 (176,884) Youth programs 50,349 50,349 54,759 4,410 Emergency Management Assistance 62,569 62,569 Buckle up New York 15,776 15,283 (493) Aid to Local Municipalities 5,000 5,000 NYS Criminal Justice Service 1,098 1,098 Arterial highway maintenance 28,050 28,050 28,050 Mental health program 70,395 70,395 99,531 29,136 STAR grant 10,500 10,500 (10,500)

Unified court aid 401000 401000 63,270 231270 61095,421 6,111,197 610481803 (62,394}

County and Local Support: Mortgage tax 2,300,000 2,300,000 1,548,828 (751,172) Stop OWl programs 6,900 6,900 City clerk's grant 16,700 16,700 31,615 14,915

Community development grant 421120 781120 781065 (55}

2.3581820 21394.820 116651408 {7291412}

Totallntergovemmental 8,5161626 815691820 8,175,222 (3941598)

Charges for Services: General services 208,127 208,127 189,722 (18,405) Finance department 890,750 890,750 748,779 (141,971) City clerk's office 91,400 91,400 89,371 (2,029) Public works department 157,925 157,925 167,992 10,067 Parking department 13,247,059 13,247,059 12,904,250 (342,809) Public safety department 1,309,567 1,309,567 1,030,691 (278,876) Recreation department 829,500 829,500 988,762 159,262

Youth services bureau 522.148 5221148 3961187 (1251961}

Total Charges for Services 171256,476 171256,476 161515.754 {740.722}

Continued

80 CITY OF WHITE PLAINS, NEW YORK GENERAL FUND SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES COMPARED TO BUDGET (Concluded) FOR THE FISCAL YEAR ENDED JUNE 30, 2010

Variance with Budgeted Amounts Final Budget Positive Original Final Actual {Negative} Licenses and Permits: General services 1,341 1,341 1,400 59 City clerk's office 26,400 26,400 27:931 1,531 Planning department 500 500 2,250 1,750 Building department: Building permits 1,000,000 1,000,000 1,271,371 271,371 Other 825,719 825,719 803,747 (21,972) Public works department: Street openings 110,000 110,000 103,119 (6,881) Street obstructions 220,000 220,000 99,138 (120,862) Other 178,700 178,700 183,419 4,719 Public safety department 1,941,280 1,941,280 1,972,577 31,297 City franchise fees 512,556 512,556 562,090 49,534 Total Licenses and Permits 4,816,496 4,816,496 5,027,042 210,546

Fines and Forfeitures: Parking fines 5,265,500 5,265,500 5,218,577 (46,923) Forfeited deposits 50 50 2,160 2,110 Hazard alarm 195,000 195,000 153,430 (41,570) Fines and bail 1,700,000 1,700,000 1,224,027 {475,973} Total Fines and Forfeitures 7,160,550 7,160,550 6,598,194 {562,356}

Interest 745,000 745,000 395,029 {349,971}

Miscellaneous: Sale of property 287,500 287,500 325,782 38,282 Insurance recoveries 41,400 41,400 109,453 68,053 Contributions 54,000 108,930 95,242 (13,688) Tenant emergency protection 46,500 46,500 47,085 585 Rentals and commissions 1,569,543 1,569,543 1,592,292 22,749 Other 329,641 329,641 1,137,892 808,251 Total Miscellaneous 2,328,584 2,383,514 3,307,746 924,232

Total Revenues 137,630,018 137a138,142 132,699,005 {5,039,137}

OTHER FINANCING SOURCES Bonds issued 750,000 750,000 Bond anticipation notes issued 2,000,000 4,400,000 4,400,000 Transfers In- Capital Projects Fund 17,060 17,060 Total Other Financing Sources 2,000,000 5,150,000 5,167,060 17,060

Total Revenues and Other Financing Sources 139,630,018 142,888,142 137,866,065 (5,022,077)

Appropriation of Fund Balance 7,493,456 7,493,456 (7,493,456}

Total Revenues, Other Financing Sources and Appropriation of Fund Balance $ 147,123,474 $ 150,381 ,598 $ 137,866,065 $ (12,515,533}

81 CITY OF WHITE PLAINS, NEW YORK GENERAL FUND SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES COMPARED TO BUDGET FOR THE FISCAL YEAR ENDED JUNE 3D, 2010

Variance with Budgeted Amounts Final Budget Positive Original Final Actual (N~ative} EXPENDITURES Current: Council and Boards: Common Council: Personal services $ 221,326 $ 617,464 $ 613,816 $ 3,648 Employee benefits 105,249 177,652 174,476 3,176 Materials and supplies 51,200 63,030 60,018 3,012 Direct costs 800 50 30 20 Contingency 5,0991896 21379,868 2 13791868 51478,471 3,2381064 8481340 2,3891724 City Court: Employee benefits 2,500 2,500 1,635 865 Materials and supplies 15,500 15,500 13,654 1,846 Direct costs 71110 71110 2.760 4 1350 251110 251110 181049 71061 Board of Assessment Review: Personal services 10,000 9,880 9,712 168 Employee benefits 1,043 1,198 1,197 1 Materials and supplies 596 716 683 33 11,639 11.794 11 1592 202 Zoning Board of Appeals: Personal services 55,817 56,017 55,817 200 Employee benefits 26,163 26,179 25,054 1,125 Materials and supplies 11080 11°80 785 295 831060 831276 81 1656 11620 Real Estate Committee: Materials and supplies 550 550 550 Direct costs 51000 51000 51000 51550 51550 51550 White Plains Board of Ethics- Direct costs 300 300 300

White Plains Housing Authority: Personal services 9,500 9,500 9,500 Employee benefits 11000 11017 11°17 101500 101517 1°1517

Total Council and Boards 516141630 313741611 9701154 214041457

General Government: Office of the Mayor: Personal services 549,382 507,217 501,216 6,001 Employee benefits 164,601 156,384 144,669 11,715 Materials and supplies 27,200 29,200 20,805 8,395 Direct costs 131000 61380 3 1°31 3 1349 7541183 6991181 669.721 291460

City Clerk: Personal services 337,143 340,143 339,408 735 Employee benefits 131,514 132,094 127,475 4,619 Materials and supplies 35,000 35,500 28,271 7,229 Direct costs 921329 891679 831037 61642 5951986 5971416 5781191 191225

Continued

82 CITY OF WHITE PLAINS, NEW YORK GENERAL FUND SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES COMPARED TO BUDGET (Continued) FOR THE FISCAL YEAR ENDED JUNE 3D, 2010

Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative)

Law Department: Personal services 960,639 1,090,532 1,052,281 38,251 Employee benefits 257,636 299,657 282,144 17,513 Materials and supplies 73,000 69,000 60,931 8,069 Direct costs 4501029 5921029 3271821 2641208 1.741 1304 21051 1218 1,7231177 3281041 Assessor: Personal services 493,176 485,207 481,951 3,256 Employee benefits 175,547 171,828 165,382 6,446 Materials and supplies 19,105 19,405 17,222 2,183 Diredcosts 249.750 199.750 761585 123,165 9371578 8761190 741,140 1351050 Finance Department: Personal services 1,398,592 1,428,035 1,414,689 13,346 Employee benefits 8,649,643 8,715,242 8,705,837 9,405 Materials and supplies 53,225 47,645 43,333 4,312 Diredcosts 6,763,668 9,212,058 7,016,480 2,195,578

Equipment 11650 21230 21229 1 16,866.778 1914051210 1711821568 212221642 Budget Department: Personal services 87,491 782,320 782,302 18 Employee benefits 34,671 111,729 111,671 58 Materials and supplies 16,700 11,273 10,424 849 Diredcosts 550 550 550 Equipment 4.700 342 292 50 1441112 9061214 9051239 975 Information Services: Personal services 565,111 649,205 644,271 4,934 Employee benefits 232,405 241,356 224,273 17,083 Materials and supplies 384,134 384,134 237,871 146,263 Diredcosts 173,434 123,434 62,582 60,852 Equipment 18,388 18,388 81878 91510 113731472 114161517 111771875 238,642 Purchasing Department: Personal services 390,815 389,000 386,723 2,277 Employee benefits 127,547 126,460 124,640 1,820 Materials and supplies 9,960 9,900 9,900 Direct costs 750 750 750 Equipment 675 675 229 446 529.747 526.785 5221242 41543 Planning Department: Personal services 566,083 559,019 548,678 10,341 Employee benefits 183,313 175,437 163,602 11,835 Materials and supplies 11,170 10,038 9,981 57

Diredcosts 31 1000 31 1861 31 1861

791 1566 7761355 754,122 22,233

Continued

83 CITY OF WHITE PLAINS, NEW YORK GENERAL FUND SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES COMPARED TO BUDGET (Continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2010

Variance with Budgeted Amounts Final Budget Positive Original Final Actual (N~ative} Building Department: Personal services 1,662,591 1,723,690 1,706,122 17,568 Employee benefits 570,391 591,500 550,127 41,373 Materials and supplies 266,048 259,548 242,673 16,875 Direct costs 59,738 14,500 13,650 850

Equipment 11500 400 385 15

215601268 2,589,638 2,512,957 76,681 Traffic Department: Personal services 887,974 864,286 861,574 2,712 Employee benefits 318,154 308,433 303,726 4,707 Materials and supplies 169,952 318,338 316,243 2,095 Direct costs 151613 31 1222 301293 929 11391 1693 1,5221279 11511 1836 10,443 Personnel Department: Personal services 591,883 568,225 553,740 14,485 Employee benefits 215,017 209,571 196,447 13,124 Materials and supplies 27,178 24,178 10,256 13,922 Direct costs 58,175 48,955 16,692 32,263 Equipment 3,400 3,400 3,400 895,653 854,329 777,135 77,194

Total General Government 28,5821340 32,221,332 291°561203 31165,129

Public Works: Administration: Personal services 1,203,055 1,192,432 1,191,939 493 Employee benefits 402,159 390,248 367,810 22,438 Materials and supplies 26,984 45,823 42,934 2,889 Direct costs 341390 391500 391500 1,6661588 1,6681003 116421183 25,820 Engineering: Personal services 1,696,280 1,612,813 1,581,525 31,288 Employee benefits 563,597 539,464 522,535 16,929 Materials and supplies 23,116 23,116 19,935 3,181 Direct costs 475 475 475 Equipment 41°00 2,171 21171 212871468 211781039 2,1261166 51 1873 Building Maintenance: Personal services 1,364,602 1,328,794 1,328,295 499 Employee benefits 561,086 548,100 525,635 22,465 Materials and supplies 1,131,136 1,130,862 825,145 305,717 Direct costs 521,457 516,347 494,163 22,184 Equipment 4,200 61896 61097 799 31582,481 315301999 3,1791335 351,664 Garage and Shop: Personal services 1,299,064 1,293,519 1,289,654 3,865 Employee benefits 526,306 528,080 498,460 29,620 Materials and supplies 119,448 111,048 102,445 8,603 Direct costs 39,610 39,610 36,534 3,076 Equipment 11549 11437 11437 119851977 119731694 11928,530 451164

Continued

84 CITY OF WHITE PLAINS, NEW YORK GENERAL FUND SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES COMPARED TO BUDGET (Continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2010 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (N~ative} Public Works-Continued: Waste Water: Personal services 492,369 497,332 494,558 2,774 Employee benefits 188,514 193,621 185,552 8,069 Materials and supplies 56,493 56,493 47,685 8,808 Direct costs 42,100 42,100 34,418 7,682 779,476 789,546 762,213 27,333 Highway and Bridges: Personal services 3,152,346 3,382,162 3,312,288 69,874 Employee benefits 1,256,560 1,255,411 1,212,259 43,152 Materials and supplies 3,197,604 3,156,397 2,774,531 381,866 Direct costs 250,827 399,864 319,382 80,482 Equipment 3,300 2.819 2.819 7.860.637 8,196.653 7.621.279 575,374 Parks Maintenance: Personal services 953,237 870,792 836,229 34,563 Employee benefits 346,919 321,167 295,602 25,565 Materials and supplies 327,586 357,693 357,239 454 Direct costs 91,788 78,165 62.500 15,665 1.719.530 1,627,817 1.551.570 76,247 Sanitation: Personal services 4,188,552 4,000,536 3,999,248 1,288 Employee benefits 1,853,714 1,758,520 1,639,967 118,553 Materials and supplies 227,702 233,363 233,283 80 Direct costs 1.019.100 878.686 826,949 51,737 7.289.068 6.871,105 6.699.447 171.658

Total Public Works 27.171,225 26.835,856 25,510,723 1,325,133

Parking: General Operations: Personal services 2,286,503 2,289,509 2,157,305 132,204 Employee benefits 833,071 829,668 781,425 48,243 Materials and supplies 520,393 500,220 430,739 69,481 Direct costs 336,500 307,234 306,627 607 Equipment 45,200 28.672 14.168 14.504 4,021.667 3.955.303 3.690.264 265.039 Garages: Personal services 1,255,172 1,216,937 1,216,841 96 Employee benefits 484,692 467,256 453,360 13,896 Materials and supplies 740,950 726,450 676,013 50,437 Direct costs 225,906 219,173 217,435 1,738 Equipment 4,000 2,710,720 2.629,816 2.563,649 66,167 Parking Lots: Materials and supplies 294,195 294,195 271,797 22,398 Direct costs 700 10,513 10.513 294.895 304,708 282.310 22.398

Continued

85 CITY OF WHITE PLAINS, NEW YORK GENERAL FUND SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES COMPARED TO BUDGET (Continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2010

Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative)

Parking-continued Violations Bureau: Personal services 292,465 303,424 296,786 6,638 Employee benefits 77,322 79,678 76,664 3,014 Materials and supplies 113,624 104,190 77,297 26,893 Direct costs 667,000 693,186 693,160 26 Equipment 1,600 1,600 1,600 1,152,011 1,182,078 1,143,907 38,171 Parking Enforcement: Personal services 1,790,272 1,790,037 1,780,178 9,859 Employee benefits 695,876 677,162 648,190 28,972 Materials and supplies 2,800 1,313 1,313 Equipment 10,000 10,000 9,035 965 2,498,948 2,478,512 2,438,716 39,796

Total Parking Department 10,678,241 10,550,417 10,118,846 431,571

Public Safety: Administration: Personal services 821,548 732,260 727,237 5,023 Employee benefits 216,666 199,315 184,057 15,258 Materials and supplies 159,708 164,708 164,476 232 Direct costs 475,147 420,172 399,620 20,552 1,673,069 1,516,455 1,475,390 41,065 Fire Department: Personal services 15,387,847 16,258,885 16,213,067 45,818 Employee benefits 6,229,464 6,289,974 5,747,253 542,721 Materials and supplies 347,820 323,709 262,834 60,875 Direct costs 3,986 4,203 3,932 271 Equipment 55,593 42,093 37,809 4,284

22,024,710 2219181864 22,264,895 653,969 Police Department: Personal services 21,164,664 22,715,244 22,222,762 492,482 Employee benefits 8,434,707 8,768,312 7,963,934 804,378 Materials and supplies 637,029 589,029 588,873 156 Direct costs 169,835 120,910 109,331 11,579 Equipment 8,500 500 338 162

30,414,735 32,1931995 30,885,238 11308,757

Total Public Safety 54,112,514 561629,314 54.6251523 21003.791

Community Services: Recreation and Parks Personal services 2,125,719 1,972,141 1,930,418 41,723 Employee benefits 552,939 505,350 444,359 60,991 Materials and supplies 776,706 751,170 562,658 188,512 Direct costs 435,169 428,823 395,910 32,913

Equipment 6,880 81003 3,802 4,201

3,897,413 3,6651487 3,337,147 328,340

Continued

86 CITY OF WHITE PLAINS, NEW YORK GENERAL FUND SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES COMPARED TO BUDGET (Concluded) FOR THE FISCAL YEAR ENDED JUNE 30, 2010

Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative} Community Services-continued: T.H. Slater Center: Materials and supplies 72,325 72,325 52,859 19,466

Direct costs 2371607 2371607 2361502 11105

3091932 3091932 2891361 201571 Service Office: Personal services 115,944 115,944 111,675 4,269 Employee benefits 37,832 37,833 34,206 3,627 Materials and supplies 3,650 3,650 1,227 2,423

Direct costs 1001650 1001650 881872 11.778

2581076 2581077 235,980 221097 Youth Services: Personal services 2,042,338 2,060,725 1,981,100 79,625 Employee benefits 528,361 515,258 476,869 38,389 Materials and supplies 58,524 64,772 53,038 11,734 Direct costs 53,969 54,031 38,653 15,378 Equipment 500 500 500

216831692 21695,286 2,549,660 1451626

Total Community Services 711491113 61928.782 6 1412,148 5161634

Debt Service: Principal 496,895 496,895 496,895

Interest 217,218 2171218 2171218

Total Debt Service 714,113 7141113 714,113

Total Expenditures 13410221176 1371254,425 127,407.710 9,8461715

OTHER FINANCING USES: Bond anticipation notes redeemed 250,000 250,000 250,000 Transfers out: Capital Projects Fund 106,557 106,557 102,950 3,607 Library Fund 5,292,326 5,280,945 5,128,108 152,837 Public Safety Grant Fund 37,256 37,256 Housing Authority Enhancement Fund 3,230 3,230 1,620 1,610

Debt Service Fund 714491185 714491185 714491185

Total Other Financing Uses 131101,298 13,1271173 1219691119 1581054

Total Expenditures and Other

Financing Uses $ 147,123.474 $ 1501381 !598 $ 140,3761829 $ 101004,769

87 THIS PAGE INTENTIONALLY LEFT BLANK

88 NONMAJOR GOVERNMENTAL FUNDS

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 Fund and Capital Projects Fund.

Librarv Fund - to account for the operation and maintenance of the City Library. Financing is primarily provided by a contribution from the General Fund.

RESTORE Grant Fund - to account for a New York State grant which provides assistance to low income senior citizens for housing repairs.

Community Development Block Grant Fund - to account for programs and activities which will benefit low and moderate income families through the prevention or elimination of slums and blight.

Section 8 Housing Assistance Program Fund - to account for Federal grants used for subsidizing the rents of low and moderate income senior citizens and other families within the City of White Plains.

Public Safety Grant Fund - to account for the grant monies received from the federal, state, and local governments for the enhancement of public safety activities.

Youth Development Fund - to account for various grant monies received from the Federal, State and local governments and provide contributions for youth development programs that are designed to build skills and competencies among our City's children and youth.

City Center Garage Fund - to account for parking revenues which are restricted to the operation and maintenance of this parking structure.

War Memorial Fund - to account for funds used to dedicate a memorial to those who have perished in wars.

Community Services Fund - to account for funds used to send underprivileged and economically disadvantaged children to day camp.

Recreation Parkland Fund - to account for funds to be used in acquiring and/or developing recreational facilities and open space in the City.

Librarv Gifts and Donations Fund - to account for donations received to benefit the City's library.

Police Activities Fund - to account for Federal forfeiture proceeds to be used to support community policing activities, training and law enforcement operations.

Mayor's Youth Council Fund - to account for monies received to benefit the youth of the City of White Plains.

89 Housing Authority Enhancement Fund - to account for gifts, grants and contributions received and subsequently disbursed for the purpose of enhancing public housing occupancy.

Parking Fund - to account for those fees received in lieu of providing required off-street parking in the central parking area, which are used to increase the quantity/quality of parking spaces available to serve properties in that area.

Debt Service Fund

The Debt Service Fund is used to account for and report financial resources that are restricted, committed or assigned to expenditure for principal and interest, and for financial resources that are being accumulated for principal and interest maturing in future years.

Permanent Fund

Permanent funds are used to account for report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the City's programs for the benefit of the City and its citizenry.

Goldie Zeitlin Memorial Fund - to account for principal and interest on a donation received from a City resident. The interest portion can be used to provide lectures discussing urban concerns.

90 THIS PAGE INTENTIONALLY LEFT BLANK

91 CITY OF WHITE PLAINS, NEW YORK COMBINING BALANCE SHEET NON~ORGOVERNMENTALFUNDS JUNE 30, 2010

S~ecial Revenue Funds

Community Section 8 Development Housing Public Safety UbralY RESTORE Block Assistance Grant Fund Grant Fund Grant Fund P~ramFund Fund ASSETS Cash and cash equivalents $ 396,151 $ 60,395 $ 2,191,672 $ 607,388 $ 1,275 Investments Receivables 5,958 2,097,464 36,889 Due from other govemments and agencies 77,393 252,414 Prepaid items 224 Total Assets $ 402,109 $ 60,395 $ 4,366,529 $ 644,501 $ 253,689

UABILmES AND FUND BALANCES Uabilities: Accounts payable $ 94,741 $ 700 $ 107,764 $ 13,544 $ 14,386 Accrued liabilities 144,228 12,035 15,177 Deposits 3,179 378 14,171 Due to other funds 15,000 227,747 Deferred revenue - other 2,067,253 36,889 8,905 Due to retirement system 81,106 13,947 4,255 2,651 Total Uabilities 323,254 700 2,216,377 84,036 253,689

Fund Balances: Nonspendable for prepaid items 224 Nonspendable endowment Restricted for libralY 50,809 Restricted for nonrecurring repairs Restricted for debt seNice Restricted by grantors and donors 59,695 2,150,152 560,241 Restricted for police purposes Committed for recreation and open space Committed for parking improvements Assigned for subsequent year's expenditures 28,046 Total Fund Balances 78,855 59,695 2,150,152 560,465

Total Uabilities and Fund Balances $ 402,109 $ 60,395 $ 4,366,529 $ 644,501 $ 2531689

92 Seecial Revenue Funds

Mayor's Youth War Recreation Library Police Youth Development City Center Memorial Community Parkland Gifts and Activities Council Fund Garage Fund Fund Services Fund Fund Donations Fund Fund Fund

$ 1,875 $ 418,477 $ 45,154 $ 85,940 $ 372,802 $ 670 $ 394,213 $ 1,309 629,625

754,686

$ 756,561 $ 1,048,102 $ 45,154 $ 85,940 $ 372,802 $ 670 $ 394,213 $ 1,309

$ 269,655 $ 149,269 $ $ 2,802 $ $ 670 $ 1,089 $ 33,062 199,147

428,455 10,200 276,540

151189 16,342 7561561 641 1298 2,802 670 1,089

406,804

45,154 83,138 1,309 393,124 372,802

406,804 451154 831138 3721802 3931124 1,309

$ 756,561 $ 1,048,102 $ 451154 $ 85,940 $ 372,802 $ 670 $ 3941213 $ 1,309

Continued

93 CITY OF WHITE PLAINS, NEW YORK COMBINING BALANCE SHEET (Concluded) NON~ORGOVERNMENTALFUNDS JUNE 30, 2010 Permanent Special Revenue Funds Fund

Housing Goldie Total Authority Zeitlin Nonmajor Enhancement Parking Debt Memorial Govemmental Fund Fund Service Fund Fund Funds ASSETS cash and cash equivalents $ 6,989 $ 87,818 $ 1,238,888 $ 842 $ 5,911,858 Investments 10,000 639,625 Receivables 27 2,140,338 Due from other governments and agencies 1,084,493 Prepaid items 224 Total Assets $ 6,989 $ 87,818 $ 1,238,888 $ 10,869 $ 9,776,538

LIABILITIES AND FUND BALANCES Uabilities: Accounts payable $ 225 $ $ $ $ 654,845 Accrued liabilities 403,649 Deposits 17,728 Due to other funds 671,202 Deferred revenue - other 2,399,787 Due to retirement system 133,490 Total Uabilities 225 4,280,701

Fund Balances: Nonspendable for prepaid items 224 Nonspendable endowment 10,000 10,000 Restricted for library 50,809 Restricted for nonrecurring repairs 406,804 Restricted for debt service 750,038 750,038 Restricted by grantors and donors 6,764 869 2,907,322 Restricted for police purposes 393,124 Committed for recreation and open space 372,802 Committed for parking improvements 87,818 87,818 Assigned for subsequent year's expenditures 488,850 516,896 Total Fund Balances 6,764 87,818 1,238,888 10,869 5,495,837

Total UBbilities and Fund Balances $ 6,989 $ 87,818 $ 1,238,888 $ 10,869 $ 9,776,538

94 THIS PAGE INTENTIONALLY LEFT BLANK

95 CITY OF WHITE PLAINS, NEW YORK COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NON~ORGOVERNMENTALFUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2010

Sl:!!2ial Revenue Funds

Community Section 8 Development Housing Public Safety Library RESTORE Block Assistance Grant Fund Grant Fund Grant Fund Program Fund Fund Revenues: Intergovernmental $ 16,334 $ 33,345 $ 1,126,449 $ 4,846,245 $ 493,346 Interest 62 2,908 3,541 Fees and program income 117,252 16,800 554,908 Miscellaneous 40,771 13,918 Total Revenues 174,357 50,207 1,684,265 4,863,704 493,346

Expenditures: Current: Public safety 530,602 Community services 4,958,106 69,445 1,525,146 4,805,164 Debt service: Principal Interest Refunding bond issuance costs Total Expenditures 4,958,106 69,445 1,525,146 4,805,164 530,602

Excess (Deficiency) of Revenues OVer Expenditures (4,783,749) (19,238) 159,119 58,540 {37,256)

Other Financing Sources (Uses): Refunding bond issued Issuance premium Payment to refunded bond escrow agent Transfers in 5,128,108 37,256 Transfers out (294,057) Total Other Financing Sources 4,834,051 37,256

Net Change in Fund Balances 50,302 (19,238) 159,119 58,540

Fund Balances - Beginning of Year 28,553 78,933 1,991,033 501,925

Fund Balances - End of Year $ 78,855 $ 59,695 $ 2,150,152 $ 560,465 $

96 SEecial Revenue Funds

Mayor's Youth War Recreation Library Police Youth Development City Center Memorial Community Parkland Gifts and Activities Council Fund Garage Fund Fund Services Fund Fund Donations Fund Fund Fund

$ 2,085,196 $ $ $ $ $ $ $ 2,888 152 336 26 1,891 12 3,953,617 531880 24.116 37.113 54.997 211391°76 3.980.621 152 37A49 26 56,888 12

39,964 2,139,076 3,884,044 6,966 24,230

2,1391°76 3,884.044 6.966 24,230 391964

96,5n 152 30A83 26 (24,230) 16.924 12

96,5n 152 30,483 26 (24,230) 16,924 12

310,227 45,002 52.655 372,n6 241230 376,200 1.297

$ $ 4061804 $ 45,154 $ 831138 $ 372,802 ,a:$==== $ 393,124 ,a:$,====,:!1,=30... 9=

Continued

97 CITY OF WHITE PLAINS, NEW YORK COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (Concluded) NON~ORGOVERNMENTALFUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2010

Permanent Seecial Revenue Funds Fund

Housing Goldie Total Authority Zeitlin Nonmajor Enhancement Parking Debt Memorial Governmental Fund Fund Service Fund Fund Funds Revenues: Intergovernmental $ $ $ $ $ 8,600,915 Interest 78 59,354 125 71,373 Fees and program income 4,642,577 Miscellaneous 59,050 5,803 289,648 Total Revenues 59,128 65,157 125 13,604,513

Expenditures: Current: Public safety 570,566 Community services 1,725 17,413,902 Debt service: Principal 4,372,033 4,372,033 Interest 3,139,795 3,139,795 Refunding bond issuance costs 117,802 117,802 Total Expenditures 1,725 7,629,630 25,614,098

Excess (Deficiency) of Revenues Over Expenditures (1,725} 59,128 (7,564.473} 125 (12,009,585)

Other Financing Sources (Uses): Refunding bond issued 5,595,000 5,595,000 Issuance premium 239,917 239,917 Payment to refunded bond escrow agent (5,717,115) (5,717,115) Transfers in 1,620 8,337,100 13,504,084 Transfers out (644,875} (938,932} Total Other Financing Sources 1,620 7,810,027 12,682,954

Net Change in Fund Balances (105) 59,128 245,554 125 673,369

Fund Balances - Beginning of Year 6,869 28,690 993,334 10,744 4,822,468

Fund Balances - End of Year $ 6164 $ 87,818 $ 1,238,888 $ 10,869 $ 5.495,837

98 CITY OF WHITE PLAINS, NEW YORK LIBRARY FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2010

Budgeted Amounts Variance with Final Budget Positive Original Final Actual {Negative} Revenues: Intergovernmental $ 18,568 $ 18,568 $ 16,334 $ (2,234) Fines and fees 156,185 156,185 117,252 (38,933) Miscellaneous: Rent and commissions 16,750 16,750 18,333 1,583 Other 25,000 25,000 22,438 {2,562) Total Revenues 216,503 216,503 174,357 {42,146)

Expenditures: Current: Personnel services 2,742,059 2,740,984 2,694,591 46,393 Employee benefits 1,161,879 1,144,468 1,123,849 20,619 Materials and supplies 936,989 936,989 820,634 116,355 Direct costs 349,644 349,644 313,429 36,215 Equipment 6,500 6,500 5,603 897 Contingency 47,105 47,105 Total Expenditures 5,197,071 5,225,690 4,958,106 267,584

Deficiency of Revenues Over Expenditures {4,980,568) {5,O09,187) {4,783,749) 225,438

Other Financing Sources (Uses): Transfers in 5,292,326 5,320,945 5,128,108 (192,837)

Transfers out {311,758) {311 ,758) {294I 0571 17,701

Total Other Financing Sources 4,980,568 5,009,187 4,8341051 {175,136)

Net Change in Fund Balance $ $ 50,302 $ 50,302

Fund Balance - Beginning of Year 281553

Fund Balance - End of Year $ 781855

99 CITY OF WHITE PLAINS, NEW YORK DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2010

Budgeted Amounts Variance with Final Budget Positive Original Final Actual {Negative} Revenues: Interest $ $ $ 59,354 $ 59,354 Miscellaneous 51803 51803 Total Revenues 65,157 65,157

Appropriation of Fund Balance 4581000 4581000 (4581000)

Total Revenues and Appropriation of

Fund Balance 4581000 4581000 651157 {3921843}

Expenditures- Debt Service: Principal 5,016,908 4,372,033 4,372,033 Interest 3,199,535 3,199,535 3,139.795 59,740

Refunding bond issuance costs 1171802 1171802 TotalExpend~ures 8.216.443 716891370 7.6291630 59.740

Deficiency of Revenues and Appropriation

of Fund Balance Over Expenditures {7,7581443} {71231.370} {7.564,473} {333.103}

Other Financing Sources (Uses): Refunding bond issued 5,595.000 5,595,000 Issuance premium 239.917 239,917 Payment to refunded bond escrow agent (5,717,115) (5,717,115) Transfers in 7,758,443 7,758,443 8,337,100 578.657 Transfers out {644,875} {6441875} Total Other Financing Sources 717581443 71231 1370 71810,027 5781657

Net Change in Fund Balance $ $ 245,554 $ 245.554

Fund Balance - Beginning of Year 993.334

Fund Balance - End of Year $ 1,238,888

100 THIS PAGE INTENTIONALLY LEFT BLANK

101 CITY OF WHITE PLAINS, NEW YORK CAPITAL PROJECTS FUND PROJECT-LENGTH SCHEDULE INCEPTION OF PROJECT THROUGH JUNE 30, 2010

Ex[:!enditures and Transfers

Project Year Project Prior Current Total Number Descri[:!tion Authorized Budget Years Year Ex~nditures Active Capital Prolects 546 Old Mamaroneck Road Signalization 98-99 $ 45,000 $ 13,779 $ $ 13,779 5149 Interoperable Coordinated Signal System 00-01 690,000 665,190 665,190 5182 Rochammbeau School Gym Floor 02-03 25,000 25,000 25,000 5214 Tax ColiectionJUtility Billing System 03-04 151,500 104,314 21,730 126,044 5215 140 So. Kensico Ave. Rehabilitation-5tructural 03-04 554,000 139,945 9,057 149,002 5265 Public Library Roof Replacement Phase I 05-06 652,000 589,571 17,527 607,098 5273 City-wide Telephone Upgrade 06-07 404,000 9,000 9,000 5274 City-wide Emergency Power 06-07 242,000 5281 Public Safety Radio System FY 07 06-07 1,005,000 947,802 46,316 994,118 5289 Hydrogen Powered Vehicles 07-08 705,250 5291 Miscellaneous Storm Water Drains FY 08 07-08 402,000 381,041 11,154 392,195 5292 Municipal Parking Structure Rehabilitation FY 08 07-08 351,750 292,350 52,498 344,848 5294 Municipal Parking Lot Rehabilitation FY 08 07-08 100,000 12,918 42,963 55,881 5304 Miscellaneous Sanitary Sewers FY 08 07-08 301,500 1,993 533 2,526 5309 MuniCipal Parking Lot Rehabilitation 08-09 100,000 6,587 6,587 5310 Municipal Parking Structure Rehabilitation FY09 08-09 603,000 24,519 (10,947) 13,572 5311 Rolling Stock Acquisition-Heavy Duty Vehicles FY 09 08-09 1,620,800 712,535 631,589 1,344,124 5313 Miscellaneous Storm Water Drains FY 09 08-09 502,500 274,593 193,294 467,887 5316 Rolling Stock Fire Engine Vehicles FY 09 08-09 578,000 156,561 418,332 574,893 5317 Public Safety Radio System Phase II 08-09 527,625 514,419 1,166 515,585 5319 Renovations to Fire Facilities FY 09 08-09 251,250 58,682 52,943 111,625 5320 Library Exterior Windows 08-09 1,454,000 45,000 59,495 104,495 5321 City Fuel Sites Code Compliance 08-09 301,500 539 539 5322 Rolling Stock Heavy Duty Vehicles FY 10 09-10 1,110,200 678,295 678,295 5323 GIS System Upgrade 09-10 50,000 33,668 33,668 5324 Gedney Way Landfill Capping 09-10 251,250 89,999 89,999 5325 Transcenter Garage Fire System 09-10 161,000 32,377 32,377 5326 Library Electrical Upgrade 09-10 502,000 5327 Traffic System Improvements 09-10 223,000 5328 Miscellaneous Street Reconstruction FY 10 09-10 2,008,000 160,275 160,275 5329 Miscellaneous Sanitary Sewer Reconstruction FY 10 09-10 301,500 5330 Library Garage Sprinkler System 09-10 904,500 5337 Fiberoptic as Built Survey 09-10 451000 Sub-total active projects 17,1241125 4,969,212 2,5491390 7,518,602

102 Methods of Financing- Cumulative Proceeds Federal Fund Balance Bond Anticipation Interfund of and (Deficit) at Notes Outstanding Transfers Obligations State Aid Other Totals June 30,2010 at June 30, 2010

$ 2,250 $ $ 13,786 $ $ 16,036 $ 2,257 $ 665,190 665,190 25,000 25,000 1,500 150,000 151,500 25,456 4,000 250,000 254,000 104,998 300,000 2,000 50,000 65,000 117,000 (490,098) 535,000 4,000 4,000 (5,000) 42,000 42,000 42,000 5,000 1,000,000 1,005,000 10,882 150,000 150,000 150,000 2,000 400,000 402,000 9,805 1,750 350,000 351,750 6,902 100,000 100,000 44,119 1,500 1,500 (1,026) 100,000 100,000 93,413 1,500 300,000 301,500 287,928 8,000 1,547,000 1,555,000 210,876 2,500 2,500 (465,387) 500,000 3,000 3,000 (571,893) 2,625 525,000 527,625 12,040 1,250 1,250 (110,375) 250,000 3,000 3,000 (101,495) 750 750 211 5,200 5,200 (673,095) 1,040,000 50,000 50,000 16,332 1,250 1,250 (88,749) 250,000 (32,3n)

147,088 147,088 (13,187)

45,000 45,000 45,000 565,°75 4,572,000 891,064 6,028,139 {1 ,490,463} 2,875,000

Continued

103 CITY OF WHITE PLAINS, NEW YORK CAPITAL PROJECTS FUND PROJECT- LENGTH SCHEDULE (Continued) INCEPTION OF PROJECT THROUGH JUNE 30, 2010

Ex~nditures and Transfers

Project Year Project Prior Current Total Number Description Authorized Budget Years Year Ex~nditures

ComRleted CaRital Projects as of June 30, 2010 5119 Backflow Prevention Devices 99-00 $ 150,000 $ 12,865 $ 137,135 $ 150,000 5227 Single Space Electronic Parking Meters 03-04 282,800 282,800 282,800 5229 Longview Ave. Garage Design and Construction 04-05 19,657,000 19,641,383 15,617 19,657,000 5232 Ebersole Ice Rink Floor Renovation 04-05 126,250 126,250 126,250 5233 Miscellaneous Sanitary Sewer Reconstruction FY 05 04-05 252,500 138,275 138,275 5234 Rolling Stock Acquisition/Refurbish FY 05 04-05 1,592,825 1,592,825 1,592,825 5266 Miscellaneous Storm Water Drains FY 07 06-07 252,500 252,500 252,500 5272 Delfino Park Improvements 06-07 40,000 40,000 40,000 5282 Public Safety Building Access Control FY 07 06-07 200,000 168,176 31,824 200,000 5284 Multi-space Meters Lexington/Grove Garage 06-07 IT3,000 IT3,000 IT3,OOO 5290 Court Street Extension 06-07 2,756,050 1,000,000 1,556,050 2,556,050 5293 Renovations to Fire Facilities FY 08 07-08 351,750 351,750 351,750 5298 Miscellaneous Street Reconstruction FY 08 07-08 2,850,610 1,312,567 1,538,043 2,850,610 5299 North White Plains Parking Lot Rehabilitation 07-08 100,500 100,500 100,500 * 5300 Library Interior Renovation-1st Floor Restrooms 07-08 226,125 20,089 206,036 226,125 5301 Hybrid Aerial Bucket Truck 07-08 168,000 168,000 168,000 5302 Kittrell Park Improvements-RestroomsiLocker Rooms 07-08 50,000 33,315 16,685 50,000 5305 Kittrell Basketball Courts-Lights/Drainage 07-08 125,000 125,000 125,000 5306 Ebersole Ice Rink-Electrical 07-08 125,000 125,000 125,000 5307 Slater Center Exterior Rehabilitation 08-09 50,000 28,307 21,693 50,000 5308 Chatterton Playground 08-09 126,250 126,250 126,250 5312 Rolling Stock Acquisition-Light Duty Vehicles FY 09 08-09 523,000 445,816 IT,184 523,000 5314 Mitchell Place Tot Lot FY 09 08-09 90,000 37,992 52,008 90,000 5315 Conference Room C- City Court 08-09 225,000 215,683 54 215,737 * 5318 Public Safety I-Series Computer Mainframe 08-09 150.750 149,476 1,274 150,750 Sub-total completed projects 31,244,910 27,017,819 3,903,603 30,921,422

Total Capital Projects Fund $ 48,369,035 $ 31,987,031 $ 6,452,993 $ 38,440,024

* Project complete - future financing required.

104 Methods of Financing- Cumulative Proceeds Federal Fund Balance Bond Anticipation Interfund of and (Deficit) at Notes Outstanding Transfers Obligations State Aid other Totals June 30, 2010 at June 30, 2010

$ 150,000 $ $ $ $ 150,000 $ $ 2,800 280,000 282,800 7,000 19,650,000 19,657,000 1,250 125,000 126,250 2,500 135,n5 138,275 17,325 1,575,500 1,592,825 2,500 250,000 252,500 40,000 40,000 200,000 200,000 5,000 768,000 n3,OOO 1,000,000 1,556,050 2,556,050 1,750 350,000 351,750 9,125 1,757,800 1,083,685 2,850,610 500 100,000 100,500 1,125 1,125 (225,000) 225,000 1,000 110,000 57,000 168,000 50,000 50,000 125,000 125,000 125,000 125,000 50,000 50,000 1,250 125,000 126,250 523,000 523,000 90,000 90,000 215,737 215,737 750 750 {150,OOO} 150,000 1,366,875 25,267,075 2,299,422 1,613,050 30,546,422 {375,OOO} 375,000

$ 1,931,950 $ 29,839,075 $ 3,190,486 $ 1,613.050 $ 36.574,561 $ (1,865.463} $ 3,250,000

105 THIS PAGE INTENTIONALLY LEFT BLANK

106 ENTERPRISE FUND

An Enterprise Fund accounts for the acquisition, operation and maintenance of City facilities and services that are primarily self­ supported through service charges to customers.

Water Fund - to account for all activities necessary to provide water to the residents of the City.

107 CITY OF WHITE PLAINS, NEW YORK WATER FUND SCHEDULE OF REVENUES AND EXPENSES-BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED JUNE 30, 2010

Budgeted Amounts Variance with Final Budget Positive Original Final Actual (Negative) Revenues: Water rents $ 10,604,211 $ 10,604,211 $ 9,025,351 $ (1,578,860) Interest 60,000 60,000 34,330 (25,670) Miscellaneous 24,600 24,600 140,824 116,224 Total Revenues 10,688,811 10,688,811 9,200,505 (1,488,306)

Expenses: Personnel services 1,797,235 1,875,805 1,860,215 15,590 Employee benefits 761,060 799,084 798,191 893 Other post employment benefit obligations 247,000 (247,000) Materials and supplies 5,165,633 5,207,404 4,094,804 1,112,600 Direct costs 888,908 890,758 716,342 174,416 Equipment 15,264 195,264 172,747 22,517 Depreciation and amortization 967,649 967,649 882,421 85,228 Debt service - Principal 1,001,467 1,001,467 1,001,467 Debt service - Interest 495,647 495,647 448,686 46,961 Refunding bond issuance costs 1,143 (1,143) Capital outlay 256,000 76,000 76,000

Contingency 447,852 341 1258 341,258 Total Expenses 11l96,715 11,850,336 10,223,016 1,627,320

Deficiency of Revenues Over Expenses $ (11 107,904) $ {1,161 1525} $ {1 ,022,511} $ 139,014

108 CITY OF WHITE PLAINS, NEW YORK WATER FUND SCHEDULE OF REVENUES AND EXPENSES BY DEPARTMENT FOR THE FISCAL YEAR ENDED JUNE 30, 2010

Total Administration SUQQI~ Distribution Charges for services: Metered water sales $ 9,025,351 $ $ $ 9,025,351 Miscellaneous 140,824 140,824 Total Operating Revenues 9,166,175 9,166,175

Operating Expenses: General operations: Personnel services 1,860,215 460,994 449,581 949,640 Employee benefits 798,191 283,330 158,975 355,886 Other post employment benefit obligations 247,000 247,000 Materials and supplies: Office operations 17,633 15,483 2,150 Land operations 27,172 1,433 25,739 Building - facility operations 10,950 10,290 660 Rolling stock operations 52,536 945 2,379 49,212 Water operations 181,609 120,739 60,870 Utilities 3,804,858 3,601 3,801,257 Rentals 46 46 Direct costs- Contractual services 716,342 327,631 151,383 237,328 Equipment 12,206 809 11,397 Depreciation and amortization 882,421 882,421

Total Operating Expenses 8,611,179 2,221,405 4,699,042 1,690,732

Operating Income (Loss) 554,996 (2,221 ,405) (4,699,042) 7,475,443

Nonoperating Revenues (Expenses): Interest income 34,330 34,330 Interest expense (448,686) (448,686) Refunding bond issuance costs {1,143} {11143} Total Nonoperating Expenses {415,499} {415,499}

Change in Net Assets $ 139,497 $ {21636,904} $ {4,699I 042} $ 7,4751443

109 THIS PAGE INTENTIONALLY LEFT BLANK

110 INTERNAL SERVICE FUNDS

Internal Service Funds account for activities and services performed for other organizational units within the City. Charges to other City agencies are made to support these activities.

Self Insurance Fund - to account for all insurance and risk management activities.

111 CITY OF WHITE PLAINS, NEW YORK SELF INSURANCE FUND SCHEDULE OF REVENUES AND EXPENSES-BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED JUNE 30, 2010

Budgeted Amounts Variance with Final Budget Positive Original Final Actual ~Negative} Revenues: Charges for services $ 3,189,053 $ 3,229,053 $ 3,149,053 $ (80,000) Interest 64,426 64,426 Miscellaneous 39,934 39.934 Total Revenues 3,189,053 3,229,053 3,253,413 24,360

Appropriation of net assets 302.571 302.571 (302.571)

Total Revenues and Appropriation of Net Assets 3.491.624 3,531,624 3,253,413 (278,211)

Expenses: Personnel services 170,166 173,409 173,408 1 Employee benefits 58,598 65,347 63,214 2,133 Other post employment benefit obligations 34,000 (34,000) Materials and supplies 1,025 1,025 842 183 Direct costs: Liability insurance 900,000 900,000 899,998 2 Workers' compensation 850,000 868,100 868,093 7 Unemployment benefits 545,848 570,848 251,579 319,269 Contractual services 947,287 942,972 925,822 17,150 Equipment 700 700 606 94 Contingency 18.000 9,223 9,223 Total Expenses 3,491.624 3,531.624 3.217.562 314,062

Excess of Revenues and Appropriation of Net Assets Over Expenses $ $ $ 35.851 $ 35,851

112 FIDUCIARY FUND

Assets held by the City in a trustee capacity for individuals, private organizations, other governments, and/or other funds are accounted for in the Agency Fund.

Agency Fund - to account for custodial transactions where assets equal liabilities.

113 CITY OF WHITE PLAINS, NEW YORK FIDUCIARY FUND - AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2010

Balance Balance July 1. 2009 Additions Deductions June 30.2010

ASSETS Cash and cash equivalents $ 1.829.884 $ 69.605.604 70.099.696 $ 1.335.792 Investments 3.987 4 3.991 Receivables 50.890 153.849 51.050 153.689

Total Assets $ 1.884.761 $ 69.759.457 $ 70.150.746 $ 1.493.472

LIABILITIES Accounts payable $ 604.550 $ 49,855.029 $ 50,202.636 $ 256,943 Accrued liabilities 141,835 20,763,700 20,477,218 428.317 Deposits 1,128,594 2,017,096 2,349,892 795,798 Due to other governments 9,782 34,968,764 34,966,132 12,414

Total Liabilities $ 1,884,761 $ 10716041589 $ 107.9951878 $ 1.493,472

114

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 Assets by Component

Changes in Net Assets

Fund Balances, Governmental Funds

Changes in Fund Balances, Governmental Funds

Tax Revenues by Source, Governmental Funds

115 THIS PAGE INTENTIONALLY LEFT BLANK

116 CITY OF WHITE PLAINS, NEW YORK NET ASSETS BY COMPONENT LAST EIGHT FISCAL YEARS

2010 2009 2008 2007 2006 2005 2004 2003 Governmental Activities: Invested in capital assets, net of related debt $ 197,909,708 $ 203,504,702 $ 208,598,302 $ 213,680,405 $ 214,948,718 $ 216,997,086 $ 218,452,330 $ 214,738,456 Restricted 6,092,168 6,429,589 7,147,294 6,423,430 6,464,831 6,009,427 6,447,715 8,468,799 Unrestricted (20,734,072~ (5,047,990~ 14,633,517 15,461,974 11,885,015 14,645,041 17,398,001 16,668,484 Total Governmental Activities Net Assets 18312671804 204,886,301 230,379,113 235,565,809 233,298,564 237,651,554 242,298,046 239,875.739

Business-type Activity: Invested in capital assets, net of related debt $ 18,379,290 $ 19,214,880 $ 19,750,850 $ 16,573,605 $ 18,163,979 $ 18,592,642 $ 17,727,785 $ 17,777,369 Unrestricted 6,228,833 5,288,022 4,234,928 6,544,087 4,458,232 4,142,037 5,534,679 6,490,293 Total Business-type Activity Net Assets 24,608,123 24,502,902 23,985,778 23,117,692 22,622,211 22,734,679 23,262,464 24,267,662

Primary Government: ~ Invested in capital assets, ~ ...... net of related debt 216,288,998 222,719,582 228,349,152 230,254,010 233,112,697 235,589,728 236,180,115 232,515,825 Restricted 6,092,168 6,429,589 7,147,294 6,423,430 6,464,831 6,009,427 6,447,715 8,468,799 Unrestricted (141505,239~ 240,032 18,868,445 22,006,061 16,343,247 18,787,078 22,932,680 23,158,777 Total Primary Government Net Assets $ 207,875,927 $ 229,389,203 $ 254,364,891 $ 258,683,501 $ 255,920,775 $ 260,386,233 $ 265,560,510 $ 264,143,401

Note: Data not available prior to fiscal 2003 implementation of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments. CITY OF WHITE PLAINS, NEW YORK CHANGES IN NET ASSETS LAST EIGHT FISCAL YEARS

2010 2009 2008 2007 Expenses Governmental Activities: Council and boards $ 936,100 $ 2,773,252 $ 630,028 $ 625,902 General government 28,737,398 26,379,148 24,555,359 22,637,961 Public works 37,256,161 38,946,839 37,048,565 35,355,753 Parking department 10,979,456 11,668,608 10,950,845 10,289,385 Public safety 63,070,957 61,203,429 55,284,971 52,266,271 Community services 26,029,490 28,002,894 28,100,351 24,539,276 Interest 3,339,275 3,462,914 2,838,043 2,550,891 Total Governmental Activities 170,348,837 172,437,084 159,408,162 148,265,439

Business-type Activity- Water 9,110,935 9,011,557 8,356,237 7,625,604

Total Expenses $ 179,459,772 $ 181,448,641 $ 167,764,399 $ 155,891,043

Program Revenues Governmental Activities: Charges for services: Council and boards $ $ $ $ General government 3,134,315 2,739,902 4,360,295 5,008,417 Public works 1,199,284 1,341,090 1,542,842 1,153,199 Parking department 19,072,096 19,121,917 19,375,312 16,403,669 Public safety 4,391,545 2,727,619 3,604,230 3,180,184 Community services 6,048,580 6,441,354 6,759,149 5,338,018 Operating grants and contributions 9,601,508 7,651,394 6,827,195 6,982,551 Capital grants and contributions 2,112,478 983,792 1,876,009 1,602,599 Total Governmental Activities 45,559,806 41,007,068 44,345,032 39,668,637

BUSiness-type Activity- Charges for services- Water 9,025,351 9,324,200 8,535,444 7,836,344 Operating grants and contributions 270,202 Total Business-type Activity 9,025,351 9,324,200 8,805,646 7,836,344

Total Program Revenues $ 54,585,157 $ 50,331,268 $ 53,150,678 $ 47,504,981

Net (Expense)/Revenue Governmental Activities $ (124,789,031 ) $ (131,430,016) $ (115,063,130) $ (108,596,802) Business-type Activity !85,584) 312,643 449,409 210,740 Total Net Expense $ !124,874,615) $ (131,117,373) $ (114,613,721) $ (108,386,062l

General Revenues Governmental Activities: Property taxes $ 47,358,459 $ 45,762,390 $ 43,705,394 $ 41,562,032 Sales tax 43,533,909 46,368,865 45,462,388 44,853,309 Hotel occupancy tax 688,580 Utilities gross receipts 1,419,855 1,537,833 1,524,322 1,393,945 Intergovernmental-unrestricted 7,268,071 9,310,919 9,692,600 11,129,981 Franchise taxes 562,090 321,678 311,789 232,280 Unrestricted investment earnings 455,823 1,302,766 2,314,791 2,603,890 Gain (loss) on sale of capital assets 66,445 23,121 88,142 Miscellaneous 1,817,302 1,309,632 6,299,422 9,088,610 Total Governmental Activities 103,170,534 105,937,204 109,398,848 110,864,047 Special Item Total Governmental Activities and Special Item 103,170,534 105,937,204 109,398,848 110,864,047

Business-type Activity: Unrestricted investment earnings 49,981 71,058 156,928 172,708 Miscellaneous 140,824 133,423 261,749 112,033 Total BUSiness-type activities 190,805 204,481 418,677 284,741

Total General Revenues and Special Item $ 103,361,339 $ 106,141,685 $ 109,817,525 $ 111,148,788

Change in Net Assets Governmental Activities $ (21,618,497) $ (25,492,812) $ (5,664,282) $ 2,267,245 Business-type Activity 105,221 517,124 868,086 495,481 Total Change in Net Assets $ (21,513,276) $ (24,975,688) $ (4,796,196) $ 2,762,726

Note: Data not available prior to fiscal 2003 implementation of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements and Managemenfs Discussion and Analysis for State and Local Governments.

118 2006 2005 2004 2003

$ 673,185 $ 662,005 $ 567,512 $ 556,334 21,977,139 20,402,372 17,993,365 16,591,973 33,676,657 31,503,823 30,939,781 28,508,487 6,823,792 7,083,831 52,758,948 49,500,918 45,147,241 38,507,899 23,883,484 22,518,404 20,277,269 18,826,050 2,694,390 2,589,890 2,440,058 2,533,428 142,487,595 134,261,243 117,365,226 105,524,171

7,038,281 7,060,813 6,174,790 5,878,362

$ 149,525,876 $ 141,322,056 $ 123,540,016 $ 111,402,533

$ 29,150 $ $ $ 5,116,934 2,407,397 2,637,795 2,824,928 1,140,480 1,024,905 1,160,234 1,002,011 15,866,013 15,584,702 3,734,933 2,955,164 5,851,578 5,630,379 5,111,029 4,302,727 2,871,365 1,773,070 7,272,199 8,085,497 7,630,696 7,277,208 1,334,484 1,423,455 11,508,645 12,756,422 39,605,222 35l83,847 31,660,313 31,264,018

6,560,748 5,946,111 4,984,370 4,585,558 203,324 39,268 40,629 6,560,748 6,149,435 5,023,638 4,626,187

$ 46,165,970 $ 41,933,282 $ 36,683,951 $ 35,890,205

$ (102,882,373) $ (98,477,396) $ (85,704,913) $ (74,260,153) (477,533l (911,378l (1,151,152l (1,252,175l $ (103,359,906) $ (99,388,774) $ (86,856,065l $ (75,512,328)

$ 38,677,976 $ 37,060,991 $ 33,187,978 $ 32,443,742 41,886,257 40,929,781 37,698,714 34,413,440

1,490,316 1,373,286 1,365,271 1,151,473 9,948,692 9,398,195 7,112,143 7,136,794 279,338 373,194 169,424 345,118 2,128,736 1,135,611 634,723 1,120,745 47,720 37,185 724,808 5,373,620 2,056,187 1,616,921 882,139 99,784,935 92,374,965 81,822,359 78,218,259 6,304,861 99,784,935 92,374,965 88,127,220 78,218,259

163,298 156,366 120,835 167,795 201,767 227,227 25,119 25,413 365,065 383,593 145,954 193,208

$ 100,150,000 $ 92,758,558 $ 88,273,174 $ 78,411,467

$ (3,097,438) $ (6, 102,431) $ 2,422,307 $ 3,958,106 (112,4681 (527,785l (1,O05,198l (1,058,9671 $ (3,209,906l $ (6,630,216) $ 1,417,109 $ 2,899,139

119 CITY OF WHITE PLAINS, NEW YORK FUND BALANCES, GOVERNMENTAL FUNDS LAST EIGHT FISCAL YEARS

2010 (1) 2009 2008 2007

General Fund: Nonspendable - not in spendable form: Inventory $ 825,972 $ $ $ Prepaid items 36,752 Long-term receivables 697,213 Restricted- Tax stabilization 407,377 Committed- Recreation and open space 279,060 Assigned: Purchases on order 717,058 Tax certiorari 5,250,000 For subsequent year's expenditures 5,043,416 Unassigned 3,689,222 Reserved 2,025,252 2,233,825 2,573,565 Unreserved 17,431,582 26,186,916 26,302,351 Total General Fund $ 16,946,070 $ 19,456,834 $ 28,420,741 $ 28,875,916

All Other Governmental Funds: Nonspendable - not in spendable form- Prepaid items $ 492 $ $ $ Nonspendable endowment 10,000 Restricted- Library Fund 50,809 Nonrecurring repairs 406,804 Debt Service Fund 750,038 Grantors and donors restrictions 2,907,322 Police purposes 393,124 Committed: Capital Projects Fund 1,113,395 Recreation and open space 372,802 Parking improvements 87,818 Assigned: For subsequent year's expenditures, reported in: Library Fund 28,046 Debt Service Fund 488,850 Unassigned- Capital Projects Fund (2,979,126) Reserved 2,446,235 7,140,025 19,538,546 Unreserved, reported in: Capital Projects Fund (6,058,001 ) (54,841) (14,747,077) Special Revenue Funds 3,507,549 4,125,397 4,078,763 Debt Service Fund 458,000 350,000 616,446 Permanent Fund 744 590 1,113 Total All Other Governmental Funds $ 3,630,374 $ 354,527 $ 11,561,171 $ 9,487,791

Total Governmental Funds $ 2015761444 $ 19,811,361 $ 391981,912 $ 38,363,707

Note: Data not available prior to fiscal 2003 implementation of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements and Managemenfs Discussion and Analysis for State and Local Governments.

(1) Components of fund balance reclassified with the June 30, 2010 implementation of Governmental Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions.

120 2006 2005 2004 2003

$ $ $ $

1,910,655 1,715,779 2,403,527 3,232,272 20,966,814 21,121,017 20,812,805 16,967,015 $ 22,877,469 $ 22,836,796 $ 23,216,332 $ 20,199,287

$ $ $ $

2,230,175 3,467,413 8,117,203 $ 5,359,584

(1,735,077) (1,402,520) 1,558,585 8,016,257 4,147,006 2,723,422 3,964,696 5,248,361 351,726 500,413

11159 806 614 499

$ 4,9941989 $ 512891534 $ 131641,098 $ 18,624,701

$ 27,872,458 $ 28,126,330 $ 36,857,430 $ 38,823,988

121 CITY OF WHITE PLAINS, NEW YORK CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST EIGHT FISCAL YEARS

2010 2009 2008 2007 REVENUES Taxes and related items $ 92,680,018 $ 93,173,482 $ 90,858,965 $ 88,365,864 Intergovernmental 17,267,408 17,766,027 18,228,591 19,402,038 Charges for services 16,515,754 16,955,893 17,976,903 14,355,680 Licenses and permits 5,027,042 2,649,889 4,253,707 4,714,648 Fines and forfeitures 6,598,194 6,670,562 7,537,158 7,511,149 Interest 466,402 1,241,167 2,131,464 2,436,139 Fees and program income 4,642,577 4,976,526 5,327,040 4,026,579 Miscellaneous 5,153,444 2,909,752 7,306,745 9,951,674 Total Revenues 148,350,839 146,343,298 153,620,573 150,763,771

EXPENDITURES Current: Council and boards 970,154 2,492,373 615,676 613,812 General government 29,056,203 26,966,651 26,487,929 24,514,136 Public works 25,510,723 26,993,941 27,295,660 25,662,325 Parking 10,118,846 10,611,509 10,669,137 9,971,792 Public safety 55,196,089 53,144,364 52,641,804 49,642,916 Community services 23,826,050 25,202,058 24,853,155 23,325,581 Debt Service: Principal 5,118,928 5,191,551 6,324,088 6,577,407 Interest and fiscal charges 3,357,013 3,460,868 2,783,145 2,525,172 Refunding bond issuance costs 117,802 138,109 Capital Outlay 5,842,075 12,450,534 24,644,360 7,567,246 Total Expenditures 159,113,883 166,513,849 176,314,954 150,538,496

Excess (Deficiency) of Revenues over Expenditures {10,763,044} {20,170,551} {22,694,381} 225,275

OTHER FINANCING SOURCES (USES) New York State loan 1,483,365 Bond anticipation notes issued 5,150,000 1,000,000 Bonds issued 7,010,325 22,835,000 8,644,500 Refunding bonds issued 5,595,000 12,470,000 Issuance premium 239,917 509,521 Payment to refunded bond escrow agent (5,717,115) (12,841,412) Bond anticipation notes redeemed (750,000) Transfers in 14,268,969 15,564,216 17,494,976 17,598,166 Transfers out {14,268,969} {15,564,216} {17,494,976} {17,598,166} Total Other Financing Sources 11,528,127 23,835,000 10,265,974

Net Change in Fund Balances before Special Item 765,083 (20,170,551) 1,140,619 10,491,249

Special Item

Net Change in Fund Balances $ 765,083 $ {20,170,551} $ 1,140,619 $ 10,491,249

Debt Service as a percentage of noncapital expenditures 5.60% 5.60% 5.92% 6.46%

Note: Data not available prior to fiscal 2003 implementation of Govemmental Accounting Standards Board Statement No. 34, Basic Financial Statements and Managemenfs Discussion and Analysis for State and Local Governments.

122 2006 2005 2004 2003

$ 82,553,202 $ 79,910,187 $ 72,346,126 $ 67,090,183 18,110,505 18,146,071 16,418,321 16,444,995 14,031,230 13,346,928 6,112,023 5,587,683 4,947,321 2,461,692 2,319,937 2,749,721 7,623,848 6,980,147 1,900,776 2,099,093 2,018,885 1,085,579 529,057 959,831 3,905,891 3,118,156 7,148,016 5,686,189 6,444,133 3,425,309 6,451,423 7,547,760 139,635,015 128,474,069 113,225,679 108,165,455

659,709 633,424 567,148 543,549 23,123,447 21,389,560 18,563,692 17,280,172 24,453,087 23,710,685 22,713,995 21,433,284 6,686,585 6,687,958 50,148,293 46,895,801 42,067,710 37,157,871 22,835,583 21,082,993 18,968,046 17,437,590

6,449,245 6,060,995 6,852,569 6,985,217 2,762,142 2,489,014 2,328,124 2,627,514 108,271 7,863,464 14,989,505 18,934,301 28,069,823 144,981,555 143,939,935 131,103,856 131,535,020

(5,346,540) (15,465,866) (17,878,177) (23,369,565)

1,518,668 2,350,000

3,574,000 6,275,000 9,547,000 7,525,000 8,180,946 209,942 (8,282,617)

16,551,216 12,750,296 7,709,375 11,125,659 {16,551,216} {12,750,296} {7,709,375} {11,125,659} 5,092,668 8,625,000 9,655,271 7,525,000

(253,872) (6,840,866) (8,222,906) (15,844,565)

6,256,348

$ (253,872) $ (6,840,866) $ {1,966,558) $ {15,844,565)

6.72% 6.68% 8.31% 9.40%

123 CITY OF WHITE PLAINS, NEW YORK TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS LAST EIGHT FISCAL YEARS

Fiscal Real Sales and Hotel Utilities Gross Year Proe!rty Taxes Use Tax (1) Occu~n~ Tax (2) Receiets Tax Total 2010 $ 47,037,674 $ 43,533,909 $ 688,580 $ 1,419,855 $ 92,680,018 2009 45,266,784 46,368,865 1,537,833 93,173,482 2008 43,872,255 45,462,388 1,524,322 90,858,965 2007 42,118,610 44,853,309 1,393,945 88,365,864 2006 39,176,629 41,886,257 1,490,316 82,553,202 2005 37,607,120 40,929,781 1,373,286 79,910,187 2004 33,282,141 37,698,714 1,365,271 72,346,126 2003 31,525,270 34,413,440 1,151,473 67,090,183

(1) Comeonents of Sales and Use Tax

Fiscal New York Year State * MTA** Coun~ Ci~*** Total 2010 4.00 0.375 1.50 2.50 8.375 2009 4.00 0.375 1.50 2.25 8.125 2008 4.00 0.375 1.50 2.25 8.125 2007 4.00 0.375 1.50 2.00 7.875 2006 4.00 0.375 1.50 2.00 7.875 2005 4.00 0.375 1.50 2.00 7.875 2004 4.25 0.250 1.50 2.00 8.000 2003 4.25 0.250 1.50 2.00 8.000

* Effective June 1, 2005 the NYS rate decreased from 4.25% to 4.00% ** Effective June 1, 2005 the MTA rate increased from .250% to .375% *** Effective June 1, 2008 the City rate increased from 2.00% to 2.25% *** Effective June 1, 2010 the City rate increased from 2.25% to 2.50%

(2) Hotel Occupancy Tax was effective as of October 1, 2009 at the rate of 3.00%

Source: City of White Plains Finance Department

124 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 Valuation, State Equalization Rate and Estimated Full Value of Real Property

Property Tax Rates per $1,000 of Assessed Valuation All Direct and Overlapping Governments

PrinCipal Taxpayers

Property Tax Levies and Collections

Constitutional Tax Limit

125 CITY OF WHITE PLAINS, NEW YORK ASSESSED VALUATION, STATE EQUALIZATION RATE, AND ESTIMATED FULL VALUE OF REAL PROPERTY LAST TEN FISCAL YEARS

Total One-Three Condo, Less Taxable State Family Co-ops, Tax-Exempt Assessed Equalization Full Tax Year Residences A~arbnents Commercial Pro~rty Valuation Rate Valuation 2009-10 $ 120,231,089 $ 57,784,368 $ 258,505,307 $ 151,308,436 $ 285,212,328 2.84% $ 10,042,687,606 2008-09 121,005,719 72,739,746 248,431,682 151,987,770 290,189,377 2.75 10,552,340,982 2007-08 120,796,989 72,115,083 253,648,541 156,658,202 289,902,411 2.75 10,541,905,855 2006-07 120,349,269 72,309,698 258,470,800 154,975,203 296,154,564 3.24 9,140,572,963 2005-06 119,440,434 66,388,333 268,331,520 151,904,088 302,256,199 3.54 8,538,310,706 2004-05 118,563,640 64,679,083 275,369,362 153,931,776 304,680,309 3.82 7,975,924,319 2003-04 117,932,903 64,189,864 282,257,581 147,275,814 317,104,534 4.45 7,125,944,584 2002-03 117,927,223 63,724,104 283,224,518 145,441,665 319,434,180 4.71 6,782,042,038 2001-02 116,736,008 63,651,429 283,447,393 145,410,174 318,424,656 6.35 5,014,561,512 2000-01 115,635,003 63,825,309 282,725,648 145,141,310 317,044,650 7.09 4,471,715,797

Note: Assessed values are established by the City of White Plains Assessor on March 1st of each year and include Special Franchise Assessments as established by the New York State Office of Real Property Services. The 2009-10 tax levy was based upon the list of March 1, 2009.

Source: City of White Plains Assessor's Office.

126 CITY OF WHITE PLAINS, NEW YORK PROPERTY TAX RATES PER $1,000 OF ASSESSED VALUATION- ALL DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS

Total City Total Assessed City White City, Valuation New York of Plains Refuse School, Including State White School Westchester Sewer Disposal Total County Special . Equalization Year Plains District Coun~ Districts District Coun~ Tax Rate Franchises Rate 2009-10 $ 157.06 $ 515.15 $ 110.88 $ 15.95(1) $ 10.17 $137.00(1) $ 809.21(1) $ 285,212,346 2.84% 118.44(2) 139.49(2) 811.70(2)

2008-09 147.47 503.01 102.80 14.51(1) 9.82 127.13(1) 777.61(1) 290,189,377 2.75 17.53(2) 130.15(2) 780.63(2)

2007-08 141.93 474.62 93.22 12.96(1) 10.15 116.33(1) 732.88(1) 289,902,411 2.75 15.75(2) 119.12(2) 735.67(2)

2006-07 132.64 443.77 . 88.89 10.32(1) 10.24 109.45(1) 685.86(1) 296,154,564 3.24 13.29(2) 112.42(2) 688.83(2)

2005-06 123.05 410.45 86.10 9.82(1) 10.28 106.20(1) 639.70(1) 302,256,199 3.54 12.43(2) 108.81(2) 642.31(2)

2004-05 117.61 375.30 82.26 8.73(1) 9.75 100.74(1) 593.65(1) 304,680,309 3.82 10.75(2) 102.76(2) 595.67(2)

2003-04 104.31 349.03 62.88 7.80(1) 8.60 79.28(1) 532.62(1) 317,104,534 4.45 9.39(2) 80.87(2) 534.21(2)

2002-03 97.00 326.53 54.36 7.04(1) 7.86 69.26(1) 492.79(1) 319,434,180 4.71 9.38(2) 71.60(2) 495.13(2)

2001-02 91.48 300.71 54.99 7.36(1) 8.16 70.51(1) 462.70(1) 318,424,656 6.35 9.82(2) 72.97(2) 465.16(2)

2000-01 91.48 278.59 59.68 7.29(1) 8.30 75.27(1) 445.34(1) 317,044,650 7.09 11.14(2) 79.12(2) 449.19(2)

(1) Bronx Valley District (2) Mamaroneck District

Source: City of White Plains Finance Department

127 CITY OF WHITE PLAINS, NEW YORK PRINCIPAL TAXPAYERS CURRENT YEAR AND NINE YEARS AGO

2009-10 Percentage of Total Assessed Assessed Rank Taxpayer Type of Business Valuation Valuation

1 Fashion Mall Partners, LP Retail Outlet $ 11,079,450 3.88- % 2 Consolidated Edison Public Utility 11,016,698 3.86 3 White Plains Galleria Retail Outlet 6,380,000 2.24 4 44 South Broadway Property, LLC Office Space Rental 4,270,000 1.50 5 Cali WP Realty Associates, LP Real Estate Development 4,010,000 1.41 6 White Plains Plaza Office Space Rental 3,894,800 1.37 7 Gateway I Group, Inc. Office Space Rental 3,275,000 1.15 8 American Telephone & Telegraph Public Utility 3,125,000 1.10 9 LC Main Street, LLC Real Estate Development 2,507,050 .88 10 Caf West, LLC Office Space Rental 2,200,000 .77 11 Verizon New York, Inc. Public Utility 2,032,860 .71 12 Westpark I, LLC Office Space Rental 1,950,000 .67 13 1185 Bank Street,LLC Office Space Rental 1,750,000 .61 14 Urstadt Biddle Properties, Inc. Retail Outlet 1,700,000 .60 13 HPT ING 2 Properties Hotel 1,650,000 .58 14 7071709 Westchester Office Space Rental 1,400,000 .49 15 Bryant Gardens Corp. Cooperative Apartments 1,340,000 .47 16 Bloomingdale's Inc. Retail Outlet 1,300,000 .46 17 North Street Community Office Space Rental 1,000,000 .35 20 925/1025 Westchester Office Space Rental 1,000,000 .35 $ 66,880,858

2000-01 Percentage ofTotal Assessed Assessed Rank Taxpayer Type of Business Valuation Valuation

1 Consolidated Edison Public Utility $ 13,327,836 4.20 % 2 Fashion Mall Partners, LP Retail Outlet 12,331,000 3.89 3 Cadillac-Fairview Retail Outlet 8,610,000 2.72 4 Metropolitan Life Ins. Co. Insurance 8,260,300 2.61 5 American Telephone & Telegraph Public Utility 7,536,641 2.38 6 IBM Business Equipment 6,995,500 2.21 7 Eastridge Properties Office Space Rental 6,726,000 2.12 8 Westchester One Office Space Rental 6,370,000 2.01 9 Cali WP Realty Associates, LP Real Estate Development 4,839,200 1.53 10 Connedicut General Office Space Rental 4,213,100 1.33 11 New York Telephone Public Utility 3,327,937 1.05 12 State of Wisconsin Investment Board Retail Outlet 2,468,000 .78 13 1185 Bank Street, LLC Office Space Rental 2,300,000 .73 14 Bloomingdale's Inc. Retail Outlet 2,250,000 .71 15 Reckson Operating Partnership, LP Office Space Rental 2,100,850 .66 16 Town Park Hotel Corp Hotel 2,002,200 .63 17 Hutchinson Corp. Park Association Office Space Rental 1,809,450 .56 18 A & S Real Estate Inc. Retail Outlet 1,800,000 .56 19 Bryant Gardens Corp. Cooperative Apartments 1,600,000 .50 20 Mass Mutual Life Ins., Co. Office Space Rental 1,225,000 .39

$ 100,093,014

Source: City of White Plains Assessor's Office.

128 CITY OF WHITE PLAINS, NEW YORK PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS

Collected within the Fiscal Year of the Le~ Collections Total Collections to Date Fiscal Property Amount Percent in Subsequent Amount Percent Year TaxLe~ Collected ofLev~ Years Collected of Levy 2009-10 $ 44,795,451 $ 42,430,049 99.15% $ $ 44,262,208 98.81% 2008-09 42,794,228 42,430,049 99.15 197,378 42,627,427 99.61 2007-08 41,145,849 40,802,400 99.17 258,433 41,060,833 99.79 2006-07 39,281,812 39,107,050 99.56 163,108 39,270,158 99.97 2005-06 37,192,306 36,342,557 97.72 847,766 37,190,323 99.99 2004-05 35,833,139 35,128,929 98.03 697,286 35,826,215 99.98 2003-04 33,077,174 32,674,496 98.78 402,536 33,077,032 99.99 2002-03 30,924,005 30,667,049 99.17 256,641 30,923,690 99.99 2001-02 29,129,488 29,006,844 99.58 122,644 29,129,488 100.00 2000-01 29,003,245 28,958,600 99.85 44,645 29,003,245 100.00

Source: City of White Plains Finance Department

129 CITY OF WHITE PLAINS, NEW YORK CONSTITUTIONAL TAX LIMIT

Constitutional tax limit calculation, June 30, 2010: Full valuation, last five fiscal years:

2009 $ 10,552,340,982 2008 10,541,905,855 2007 9,140,572,963 2006 8,538,310,706 2005 7197519241319 Total full valuation, last five years $ 46,749,054,825

Five-year average full valuation $ 9,3491810,965

Two (2%) percent of five-year average full valuation $ 186,996,219 Total exclusions 1 8,595,552 Maximum taxing power 195,591,771 Tax levy-general city purposes 44.795,451 Constitutional tax limit $ 150.796,320

Available constitutional tax limit $ 106,000,869

Percent of constitutional tax limit exhausted 22.90%

Constitutional Tax Limit - Last Ten Fiscal Years:

Maximum Tax Taxing Tax Constitutional Limit Percent Year Power Le~ Tax Limit Available Exhausted 2009-10 $ 195,591,771 $ 44,795,451 $ 150,796,320 $ 106,000,869 22.90 % 2008-09 182,550,281 42,794,228 139,756,053 96,961,825 23.44 2007-08 168,203,474 41,145,849 127,057,625 85,911,776 24.46 2006-07 152,088,226 39,281,812 112,806,414 73,524,602 25.83 2005-06 134,411,315 37,192,306 97,219,009 60,026,703 27.67 2004-05 117,547,080 35,833,139 81,713,941 45,880,802 30.48 2003-04 92,279,012 33,077,174 59,201,838 26,124,664 35.84 2002-03 78,824,235 30,924,005 47,900,230 16,976,225 39.23 2001-02 88,672,858 29,129,488 59,543,370 30,413,882 32.85 2000-01 86,660,007 29,003,245 57,656,762 28,653,517 33.47

1 The constitutional tax limit specifically excludes debt service related to bonds and notes issued for certain specific purposes, and also excludes budgetary appropriations in the forthcoming year's budget for objects or purposes for which a period of probable usefulness is provided for in Section 11 of the New York State Local Finance Law.

130 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

Direct and Overlapping Governmental Activities Debt

Computation of Legal Debt Margin

131 CITY OF WHITE PLAINS, NEW YORK RATIOS OF OUTSTANDING DEBT BY TYPE LAST EIGHT FISCAL YEARS

Percentage General Bond Total of Full Debt Fiscal Obligation Anticipation Loans Outstanding Estimated Full Property per Year Bonds Notes Payable Debt Property Value Value Population 1 Capita

Governmental Activities: 2009-10 $ 75,484,155 $ 8,400,000 $ 3,427,450 $ 87,311,605 $ 10,042,687,606 0.87% 53,077 $ 1,645 2008-09 72,772,863 7,905,200 3,924,345 84,602,408 10,552,340,982 0.80% 53,077 1,594 2007-08 77,491,180 3,086,250 4,397,579 84,975,009 10,541,905,855 0.81% 53,077 1,601 2006-07 60,529,569 1,799,375 4,848,278 67,177,222 9,140,572,963 0.73% 53,077 1,266 2005-06 57,905,557 4,178,000 3,681,832 65,765,389 8,538,310,706 0.77% 53,077 1,239 2004-05 60,593,966 4,735,500 2,350,000 67,679,466 7,975,924,319 0.85% 53,077 1,275 2003-04 60,379,961 2,230,000 62,609,961 7,125,944,584 0.88% 53,077 1,180 2002-03 57,501,584 57,501,584 6,782,042,038 0.85% 53,077 1,083

Business -!ll~ Activi!ll: 2009-10 12,172,670 12,172,670 10,042,687,606 0.12% 53,077 229 2008-09 10,042,137 1,625,000 11,667,137 10,552,340,982 0.11% 53,077 220 2007-08 11,069,820 187,500 11,257,320 10,541,905,855 0.11% 53,077 212 2006-07 11,021,931 250,000 11,271,931 9,140,572,963 0.12% 53,077 212 2005-06 9,154,143 250,000 9,404,143 8,538,310,706 0.11% 53,077 177 2004-05 7,189,734 7,189,734 7,975,924,319 0.09% 53,077 135 2003-04 5,919,739 5,919,739 7,125,944,584 0.08% 53,077 112 2002-03 5,136,116 5,136,116 6,782,042,038 0.08% 53,077 97

Total Government-Wide: 2009-10 87,656,825 8,400,000 3,427,450 99,484,275 10,042,687,606 0.99% 53,077 1,874 2008-09 82,815,000 9,530,200 3,924,345 96,269,545 10,552,340,982 0.91% 53,077 1,814 2007-08 88,561,000 3,273,750 4,397,579 96,232,329 10,541,905,855 0.91% 53,077 1,813 2006-07 71,551,500 2,049,375 4,848,278 78,449,153 9,140,572,963 0.86% 53,077 1,478 2005-06 67,059,700 4,428,000 3,681,832 75,169,532 8,538,310,706 0.88% 53,077 1,416 2004-05 67,783,700 4,735,500 2,350,000 74,869,200 7,975,924,319 0.94% 53,077 1,411 2003-04 66,299,700 2,230,000 68,529,700 7,125,944,584 0.96% 53,077 1,291 2002-03 62,637,700 62,637,700 6,782,042,038 0.92% 53,077 1,180

1 United States Census Bureau

132 CITY OF WHITE PLAINS, NEW YORK DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT LAST EIGHT FISCAL YEARS

Net General Amount Long-Term Percentage Applicable to Government Unit: Debt Applicable City of White Plains White Plains School District $ 91,960,000 100.00 % $ 91,960,000 Westchester County 781,045,064 5.76 44,977,711

Subtotal, Overlapping Debt 136,937,711 City Direct Debt 75,484,155 Total Direct and Overlapping Debt $ 212,421,866

Population 53,077

Overlapping Debt per Capita $ 2,580

Direct and Overlapping Debt per Capita $ 4,002

Summary of Direct and Overlapping Governmental Activities Debt-Last Seven Fiscal Years:

Direct and Direct and Overlapping Overlapping Overlapping City Direct Overlapping Debt Per Debt Per Debt Debt Debt Po~ulation Ca~ita Ca~ita 2008-09 $ 136,966,153 $ 72,772,863 $ 209,739,016 53,077 $ 2,581 $ 3,952 2007-08 122,111,541 77,491,180 199,602,721 53,077 2,301 3,761 2006-07 75,541,276 60,529,569 136,070,845 53,077 1,423 2,564 2005-06 73,341,176 57,905,557 131,246,733 53,077 1,382 2,473 2004-05 69,941,571 60,593,966 130,535,537 53,077 1,318 2,459 2003-04 66,073,183 60,379,961 126,453,144 53,077 1,245 2,382 2002-03 68,982,160 57,501,584 123,574,767 53,077 1,300 2,328

Sources: Outstanding debt and applicable percentages provided by each governmental unit.

Note: Overlapping governments are those that coincide, at least in part, with 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 of White Plains. 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.

133 CITY OF WHITE PLAINS, NEW YORK COMPUTATION OF LEGAL DEBT MARGIN JUNE 30, 2010

State Fiscal Net Assessed Equalization Full Year Valuation Rate Valuation 2010 $ 285,212,346 2.84 % $ 10,042,688,239 2009 290,189,377 2.75 10,552,340,982 2008 289,902,411 2.75 10,541,905,855 2007 296,154,564 3.24 9,140,572,963 2006 302,256,199 3.54 81538,310,706 Total Five Year Valuation $ 48,815,818,745

Five Year Average Full Valuation of Taxable Real Property $ 9,763,163,749

Constitutional Debt Limit (7% of Average Full Valuation) $ 683,421,462

Outstanding Indebtedness at June 30th 1 96,056,825 Less: 2010-11 Appropriations for Debt Service Principal 5,788,825 Water Projects 11,176,904

Net Indebtedness subject to debt limit 79,091,096

Net debt contracting margin $ 604,330,366

Percentage of net debt contracting margin available 88.43%

Percentage of net debt contracting power exhausted 11.57%

Last Ten Fiscal Years Percentage of Net Debt Outstanding Net Debt Contracting Constitutional Indebtedness Less Contracting Margin Year Debt Limit June 30 Exclusions Margin Available 2009-10 $ 683,421,462 $ 96,056,825 $ 16,965,729 $ 604,330,366 88.43 % 2008-09 654,486,768 92,345,200 16,746,545 578,888,113 88.45 2007-08 606,517,218 91,834,750 16,781,762 531,464,230 87.63 2006-07 553,691,863 73,600,875 15,086,445 495,177,433 89.43 2005-06 495,927,703 71,487,700 16,716,860 441,156,863 88.96 2004-05 438,995,374 72,519,200 14,009,643 380,485,817 86.67 2003-04 386,728,897 68,529,700 11,985,734 330,184,931 85.38 2002-03 342,919,806 62,637,700 11,825,962 292,108,068 85.18 2001-02 305,609,037 62,342,098 12,415,514 255,682,453 83.66 2000-01 288,699,535 42,245,098 11,988,297 258,442,734 89.52

1 Excludes loan payable to the New York State Police and Fire Retirement System.

Source: City of White Plains Finance Department

134 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 and Economic Statistics

135 CITY OF WHITE PLAINS, NEW YORK DEMOGRAPIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS

Median Median Public Fiscal Medium Per Capita Personal Family Household School Unemployment Year POE!ulation(l) Age(l) Income (1) Income Income (1) Income (1) Enrollment (2) Rate(3) 2009-10 53,077 38.1 $ 33,825 $ 1,795,329,525 $ 71,891 $ 58,545 7,113 6.4% 2008-09 53,077 38.1 33,825 1,795,329,525 71,891 58,545 7,067 7.1 2007-08 53,077 38.1 33,825 1,795,329,525 71,891 58,545 7,167 4.6 2006-07 53,077 38.1 33,825 1,795,329,525 71,891 58,545 6,820 3.5 2005-06 53,077 38.1 33,825 1,795,329,525 71,891 58,545 6,940 3.7 2004-05 53,077 38.1 33,825 1,795,329,525 71,891 58,545 6,727 3.6 2003-04 53,077 38.1 33,825 1,795,329,525 71,891 58,545 6,972 4.2 2002-03 53,077 38.1 33,825 1,795,329,525 71,891 58,545 6,868 4.3 2001-02 53,077 38.1 33,825 1,795,329,525 71,891 58,545 6,546 4.3 2000-01 53,077 38.1 33,825 1,795,329,525 71,891 58,545 6,546 3.3

Sources: (1) 2000 U.S. Census Bureau.

(2) Annual School Census of the White Plains Board of Education.

(3) New York State Department of Labor unemployment rate for the City of White Plains (not seasonally adjusted).

136 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:

Principal Employers

Full-Time Equivalent Employees by Program

Operating Indicators by Program

Capital Asset Statistics by Program

137 CITY OF WHITE PLAINS, NEW YORK PRINCIPAL EMPLOYERS JUNE 30, 2004 1

Number of Employer Industry Employees White Plains Hospital Center Hospital 1,300 White Plains City School District Education 1,255 City of White Plains Govemment 749 IBM Business Equipment 700 Fortunoff Retail 650 Burke Rehabilitation Hospital Hospital 550 Bloomingdale's Retail 500 Nordstrom Retail 440 National Economic Research Research 430 Alliance Capital Management Corp. Financial Services 430

1 No data available prior to or after fiscal year 2004. No data on total employment available

Source: Westchester County Planning Department

138 CITY OF WHITE PLAINS, NEW YORK FULL-TIME EQUIVALENT EMPLOYEES BY PROGRAM LAST TEN FISCAL YEARS

General Public Parking Public Community Year Government Works De~artment Safet~ Services Total 2009-10 101 234 94 387 66 882 2008-09 114 255 102 422 76 969 2007-08 117 260 102 418 75 972 2006-07 116 262 102 417 78 975 2005-06 116 261 64 445 77 963 2004-05 114 259 66 436 76 951 2003-04 112 254 N/A 1 440 76 882 2002-03 113 235 N/A 428 89 865 2001-02 119 239 N/A 421 87 866 2000-01 119 236 N/A 434 86 875

1 As of 2004-05, the Parking Authority, formerly a component unit, became a department in the General Fund.

139 CITY OF WHITE PLAINS, NEW YORK OPERATING INDICATORS BY PROGRAM LAST TEN YEARS

2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 General Govemment- Building permits issued 1,197 1,224 1,751 1,630 1,440 1,622 1,752 1,576 1,494 1,699 Public Safety: Number of pOlice personnel and officers 230 249 245 245 245 243 242 229 229 230 Number of arrests 4,036 4,797 4,574 4,227 4,736 4,325 3,545 2,802 2,967 2,813 Number of traffic violations 19,635 23,740 25,252 23,138 26,311 20,913 16,693 14,490 17,891 10,024 Number of parking violations 225,264 228,113 233,697 244,882 248,030 265,569 235,406 219,953 241,392 205,220 Number of paid firefighters 151 165 165 165 161 158 162 162 159 167 Number of fire emergency responses 3,903 3,825 4,197 4,372 4,163 4,106 3,829 3,346 3,351 3,339 Number of fires extinguished 66 76 91 85 87 140 112 75 70 71 Number of fire inspections 2,105 1,928 1,851 1,822 1,530 1,891 1,686 1,432 1,528 1,717 Number of school crossing guards 24 24 23 23 24 24 23 23 20 22 Public Works: Tons collected and disposed: Solid waste 34,222 34,222 38,466 41,731 41,094 42,271 42,911 41,387 41,085 41,399 Metal 161 393 110 350 385 385 243 283 283 248 Papers 3,835 3,835 3,578 3,402 3,381 3,358 3,557 3,744 3,861 3,855 Recyclable containers 1,752 1,752 1,292 1,025 1,009 1,032 1,012 1,134 1,154 1,193 Leaves (cubic yards) 38,741 47,672 38,564 46,654 56,775 36,175 34,071 30,421 29,855 29,200

~ Number of shade trees: ~ Planted 227 130 158 . 175 158 59 141 159 189 162 0 Removed 277 217 293 712 293 272 272 297 376 349 Trimmed 454 284 374 237 374 326 326 354 381 386 Stumps removed 320 280 204 253 204 168 189 197 289 170 Wastewater: Catch basins cleaned 439 110 1,300 1,250 1,200 800 800 915 430 355 Emergency calls 194 200 275 253 200 250 125 100 100 100 Recreation and Parks: Field permits issued 240 236 185 230 200 188 192 190 175 181 Recreation permits issued 2,320 2,314 2,395 2,200 2,500 2,487 4,311 4,240 4,171 4,171 Number of youth programs 324 298 238 226 183 211 127 94 118 115 Number of adult programs 190 165 216 173 259 193 108 64 61 67 Number for senior citizen programs 356 285 301 410 410 400 400 359 291 107 Library- Volumes in collection 322,105 329,563 328,364 325,813 340,612 331,338 333,535 347,506 348,164 335,134 Water: Average daily consumption (gallons) 7,950,000 8,270,000 8,540,000 8,525,000 8,440,000 8,530,000 8,630,000 8,626,580 8,804,290 8,975,330 Number of metered accounts 9,560 9,541 9,546 9,528 9,527 9,492 9,455 9,440 9,418 9,404 Number of fire lines 700 681 673 673 672 672 677 669 679 677

Sources: Various city departments CITY OF WHITE PLAINS, NEW YORK CAPITAL ASSET STATISTICS BY PROGRAM LAST TEN YEARS

2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 General Govemment- Number of general govemment buildings 2 2 2 2 2 2 2 2 2 2 Public Safety: Number of police stations 1 1 1 1 1 1 1 1 1 1 Number of fire stations 7 7 7 7 7 7 7 7 7 7 Parking Department- Number of parking garages 7 7 6 6 6 6 6 6 6 6 Public Works: Number of public works buildings 6 6 5 5 5 5 5 5 5 5 Miles of streets 150 142.2 142 142 140 140 135 135 135 135 Number of street lights 5,800 5,700 5,700 5,700 7,500 6,000 6,000 6,000 6,000 6,000 Miles of sanitary sewers 127.1 127.1 127.1 127 124.8 124.8 124.8 124.8 124.8 124.8 Miles of storm water drains 82.9 82.4 82.2 82 81.5 81.5 81.5 81.5 81.5 81.5 Recreation and Parks: Number of parks 23 23 23 23 23 23 22 20 19 19 Acres of parks 230.7 230.7 230.7 .230.7 230.7 230.7 225.7 225.7 217.1 217.1 Water:

.....10. Miles of water mains 158.1 158.4 158.2 158.1 158.1 158.1 157.4 157.8 157.8 157.8 ~ Number of fire hydrants 2,050 1,772 1,770 1,769 1,767 1,767 1,762 1,762 1,762 1,762 .....10.

Sources: Various city departments THIS PAGE INTENTIONALLY LEFT BLANK

142

SINGLE AUDIT SECTION

O'Connor Davies Munns & Dobbins, lip ACCOUNTANTS AND CONSULTANTS

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 AUplTING STANDARDS

To the Honorable Mayor and Common Council of the City of White Plains, New York:

We have audited the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the City of White Plains, New York as of and for the year ended June 30,2010, and have issued our report thereon dated November 10, 2010. 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.

Internal Control Over Financial Reporting In planning and performing our audit, we considered the City of White Plains, New York's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of White Plains, New York's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of White Plains, New York's internal control over financial reporting.

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 of White Plains, New York's financial statements will not be prevented, or detected and corrected on a timely basis.

Our consideration of internal control over financial reporting 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 financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above.

One Barker Avenue, White Plains, NY 10601 Tel: 914-421-5600 Fax: 914-421-5099 www.ODMD.com

143 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of White Plains, New York's financial statements are free of 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.

We noted certain matters that we reported to the management of the City of White Plains, New York in a separate letter.

This report is intended solely for the information and use of the Common Council, management and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.

O'Connor Davies Munns & Dobbins, LLP November 10, 2010

144 ~ O'Connor Davies Munns & Dobbins, lip l!!) ACCOUNTANTS AND CONSULTANTS

REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMS CIRCULAR A-133

To the Mayor and Common Council of the City of White Plains, New York:

Compliance

We have audited the compliance of the City of White Plains, New York with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that could have a direct and material effect on each of the City of White Plains, New York's major federal programs for the year ended June 30,2010. The City of White Plains, New York's major federal programs are identified in the summary of auditor'S resuHs section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the City of White Plains, New York's management. Our responsibility is to express an opinion on the City of White Plains, New York's, compliance based on our audit.

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 OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 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 of White Plains, New York'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. Our audit does not provide a legal determination of the City of White Plains, New York's compliance with those requirements.

In our opinion, the City of White Plains, New York complied, in all material respects, with the 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, 2010.

Internal Control Over Compliance

The management of the City of White Plains, New York is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing

One Barker Avenue, White Plains, NY 10601 Tel: 914-421-5600 Fax: 914-421-5099 www.ODMD.com

145 our audit, we considered the City of White Plains, New York's internal control over compliance with the requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, 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 of White Plains, New York'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.

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 deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above.

This report is intended solely for the information and use of the Common Council, management, federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

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146 THIS PAGE INTENTIONALLY LEFT BLANK

147 CITY OF WHITE PLAINS, NEW YORK

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDING JUNE 30, 201O

Federal Federal Federal Grantor CFDA Non- Program Program Title Number (1~ ARRA ~2~ ARRA Ex~enditures

U.S. Deeartment of Housing and Urban Develoement

Direct Program -

CDSG - Entitlements Grants Cluster:

Entitlement Grants 14.218 $ 1,004,449 $ $ 1,004,449 Entitlement Grants - ARRA 14.253 122,000 122,000 1,126,449 Section 8 Housing Assistance Payment Program -

Section 8 Housing Choice Vouchers 14.871 4,846,245 4,846,245 Total U.S. Department of Housing and Urban Development 5,972,694

U.S. DeQartment of Homeland Securi~

Direct Program -

Assistance to Firefighters Grant 97.044 35,292 35,292 Indirect Programs - Passed through New York State Department of Homeland Security:

Disaster Grants - Public Assistance 97.036 375,416 375,416 Homeland Security Grant Program 97.067 253,459 253,459 Indirect Program - Passed through New York State Division of Military and Naval Affairs -

Emergency Management Performance Grants 97.042 24,013 24,013 Total U.s. Department of Homeland Security 688,180 U.S. Deeartment of Agriculture

Indirect Program - Passed through Westchester County -

Nutrition Program for the Elderly 10.570 2,150 2,150 U.S. Department of Labor

Indirect Program - Passed through Westchester County -

Workforce Investment Act - Youth Activities 17.259 132,438 132,438 Workforce Investment Act - Youth Activities - ARRA 17.259 68,006 68,006 Total U.s. Department of Labor 200,444

(Continued)

148 CITY OF WHITE PLAINS, NEW YORK

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Concluded) YEAR ENDING JUNE 30, 2010

Federal Federal Federal Grantor CFDA Non- Program Program Title Number {1) ARRA {2l ARRA Exeenditures u.S. Del2artment of Education

Indirect Program - Passed through New York State Department of Education

21st Century Community Learning Center 84.287 1,490,350 1,490,350

U,S. Del2artment of Health and Human Services

Indirect Programs - Passed through Westchester County -

Aging - Title III - Part B - Grants for Supportive Services and Senior Centers 93.044 10,445 10,445

Aging - Title III - Part C - Nutrition Services 93.045 35,087 35,087

Temporary Assistance for Needy Families 93.558 39,000 39,000

Total U.S. Department of Health and Human Services 84,532

U.S. Del2artment of Justice

Direct Programs:

The Community-Defined Solutions to Violence Against Women 16.590 76,354 76,354

Bullet Proof Vest Partnership Program 16.607 7,976 7,976

Public Safety Partnership and Community Policing Grant 16.710 28,949 28,949

113,279 Indirect Programs - Passed through Westchester County:

Edward Byrne Memorial Justice Assistance Grant Program 16.738 19,032 19,032

Edward Byrne Memorial Justice Assistance Grant Program - ARRA 16.804 61,434 61,434

80,466

Total U.S. Department of Justice 193,745

Total $ 8,380,655 $ 251,440 $ 8,632,095

(1) Catalog of Federal Domestic Assistance Number (2) American Recovery and Reinvestment Act

149 CITY OF WHITE PLAINS, NEW YORK

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS JUNE 30, 2010

NOTE A - SUMMARY OF ACCOUNTING POLICIES

1. General

The accompanying Schedule of Expenditures of Federal Awards presents all activity of all federal award programs for the year ended June 30, 2010. Federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the Schedule.

2. Basis of Accounting

The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting.

3. Relationship to Financial Statements

The fund financial statements are presented using the modified accrual basis of accounting.

150 CITY OF WHITE PLAINS

Schedule of Findings and Questioned Costs Year Ended June 30, 2010

Section I-Summary of Auditor's Results

Financial Statements

Type of auditor's report issued: Unqualified

Internal control over financial reporting {unqualified qualified, adverse, or disclaimer}:

Internal control over financial reporting:

• Material weakness(es) identified _yes -1Lno • Significant deficiency(ies) identified? _yes -1L none reported • Noncompliance material to financial statements noted? _yes -1Lno

Federal Awards

Internal control over major programs:

• Material weakness(es) identified? _yes -1Lno • Significant deficiency(ies) identified? _yes -1L none reported

Type of auditor's report issued on compliance for major programs {unqualified, qualified, adverse, or disclaimer}: Unqualified

Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of Circular A-133? _yes -1Lno

Identification of major programs:

CFDA Number(s) Name of Federal Program or Cluster

CDBG Entitlements Grants Cluster: 14.218 Community Development Block Grants - Entitlement Grants 14.253 Community Development Block Grants - Entitlement Grants (ARRA) 14.871 Section 8 Housing Choice Voucher Program 97.036 Disaster Grants - Public Assistance

151 Dollar threshold used to distinguish between Type A and Type B programs: $300.000

Auditee qualified as low-risk auditee? .....K...Yes _No

Section II - Financial Statement Findings

None

Section III - Federal Award Findings and Questioned Costs

None

152 CITY OF WHITE PLAINS, NEW YORK

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS YEAR ENDED JUNE 30, 2010

None

153