City of Fort Wayne, Indiana 2009 Comprehensive Annual Financial Report For the year ended December 31,2009 Thomas C. Henry Patricia A. Roller CPA Mayor Controller COMPREHENSIVE ANNUAL FINANCIAL REPORT City of Fort Wayne, Indiana Year Ended December 31, 2009 Patricia A. Roller, CPA Director of Finance and Administration City Controller Valerie A. Ahr Deputy Controller Mark Knepper Deputy Director of Financial Operations INTRODUCTION Table of Contents I. INTRODUCTION Page(s) Table of Contents.......................................................................................................................................1-3 Mayor’s Letter of Transmittal ........................................................................................................................5 Chief Financial Officer’s Letter of Transmittal..........................................................................................6-13 Locator Maps .........................................................................................................................................14-16 Organization Chart.................................................................................................................................17-18 List of Principal Officials.........................................................................................................................19-20 Department Details ................................................................................................................................21-33 Fort Wayne at a Glance ..............................................................................................................................34 GFOA Certificate of Excellence .................................................................................................................35 II. FINANCIAL SECTION Independent Auditor’s Report.................................................................................................................37-38 Management’s Discussion and Analysis ...............................................................................................39-50 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets ...............................................................................................................52-53 Statement of Activities........................................................................................................................54 Fund Financial Statements: Balance Sheet – Governmental Funds ..............................................................................................55 Reconciliation of the Balance Sheet to the Statement of Net Assets ..........................................................................................................56 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds.................................................................................................................57 Reconciliation of the Statement of Revenues Expenditures, and Changes in Fund Balances to the Statement of Activities ...................................................................................58 Statement of Net Assets – Proprietary Funds....................................................................................59 Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds ....................................................................................................................60 Statement of Cash Flows – Proprietary Funds ..................................................................................61 Statement of Fiduciary Net Assets.....................................................................................................62 Statement of Changes in Fiduciary Net Assets .................................................................................63 Combining Statement of Net Assets - Discretely Presented Component Units...................................................................................64 Combining Statement of Activities - Discretely Presented Component Units...................................................................................65 Notes to the Financial Statements 1. Summary of Significant Accounting Policies ..............................................................67-76 2. Deposits and Investments ..........................................................................................76-78 Capital Assets 79-81 4. Short-Term Liabilities.......................................................................................................81 5. Long-Term Debt..........................................................................................................82-91 Operating Leases 91 Deficit Fund Balances – Deficit Net Assets 91 8. Interfund Balances and Activity ..................................................................................92-93 9. Risk Management.......................................................................................................93-95 10. Segment Information ..................................................................................................95-96 11. Other Postemployment Benefits .................................................................................96-97 1 FINANCIAL SECTION (Continued) 12. Conduit Debt .............................................................................................................. 97-98 13. Restricted Assets ....................................................................................................... 98-99 14. Restatements – Prior Period Adjustment…....................................................................100 15. Lease of Electric Utility.................................................................................................. 100 16. City of Fort Wayne Community Trust ..................................................................... 100-101 17. Net Investment in Direct Financing Lease .................................................................... 101 18. Deferred Revenue – Unearned Revenue...................................................................... 101 19. Redevelopment Authority....................................................................................... 101-102 20. Commitments and Contingencies .......................................................................... 102-103 21. Subsequent Events ................................................................................................ 103-104 22. Net Assets – Invested in Capital Assets, Net of Related Debt...................................... 104 23. Pension Plans ........................................................................................................ 104-110 Required Supplementary Information: Budgetary Comparison Schedule - General Fund............................................................................................................................ 112 Budgetary Comparison Schedule - Major Special Revenue Funds ................................................................................................. 113 Modified Approach Schedules: Comparison of Needed-to-Actual Maintenance/Preservation Schedule ................................................................................... 114 Condition Rating for City of Fort Wayne Street Infrastructure.............................................................................................................. 114 Schedules of Funding Progress - Pensions .................................................................................... 115 Schedules of Contributions from the Employer and other Contributing Entities - Pensions................................................................................. 116 Notes to Required Supplementary Information ........................................................................ 117-119 Supplementary Information: Major Governmental Funds: Schedule of Expenditures - Budget and Actual General Fund ................................................................................. 122-123 Budgetary Comparison Schedules Other Budgeted Major Governmental Funds.................................................................. 124 Non-major Governmental Funds: Combining Balance Sheet - Non-major Governmental Funds (by fund type) ............................................................. 127 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Non-major Governmental Funds (by fund type) ............................................................. 128 Combining Balance Sheet - Non-major Governmental Funds Non-major Special Revenue Funds......................................................................... 129-130 Non-major Capital Project Funds.................................................................................... 131 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Non-major Special Revenue Funds......................................................................... 132-133 Non-major Capital Project Funds.................................................................................... 134 Budgetary Comparison Schedules Other Non-major Budgeted Governmental Funds .................................................... 135-137 Non-major Proprietary Funds: Combining Statement of Net Assets Non-major Enterprise Funds ................