City of Sandusky, Comprehensive Annual Financial Report For the Year Ended December 31, 2012 Introductory CITY OF SANDUSKY, OHIO COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2012 Prepared By: Department of Finance Hank S. Solowiej, CPA Finance Director Sally A. Poggiali Senior Accountant/Auditor Jacki M. Jesberger Heather L. Turner Senior Accounting Clerk II Senior Accounting Clerk II Lois Huff Kaye L. Conway Senior Accounting Clerk II Senior Accounting Clerk II i ii CITY OF SANDUSKY COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2012 TABLE OF CONTENTS INTRODUCTORY SECTION Title Page ............................................................................................................................................ i Table of Contents ............................................................................................................................... iii Letter of Transmittal ........................................................................................................................... vii Certificate of Achievement ................................................................................................................. xiv Organizational Chart .......................................................................................................................... xv City of Sandusky Elected and Appointed Officials ............................................................................ xvi FINANCIAL SECTION Independent Auditor’s Report ............................................................................................................ 1 General Purpose External Financial Statements Management’s Discussion and Analysis...................................................................................... 4 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position ............................................................................................... 13 Statement of Activities .................................................................................................... 14 Fund Financial Statements Balance Sheet - Governmental Funds ............................................................................. 16 Reconciliation of Total Governmental Fund Balance to Net Position of Governmental Activities .................................................................... 17 Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds ......................................................................... 18 Reconciliation of Statement of Revenues, Expenditures, and Changes in Fund Balance of Governmental Funds to Statement of Activities................................................................................................ 19 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (Non-GAAP Budgetary Basis) and Actual General Fund ............................................................................................................ 20 Statement of Fund Net Position - Enterprise Funds ........................................................ 21 Statement of Revenues, Expenses, and Changes in Fund Net Position - Enterprise Funds ......................................................................... 22 iii TABLE OF CONTENTS (continued) FINANCIAL SECTION (continued) Statement of Cash Flows - Enterprise Funds .................................................................. 23 Statement of Fiduciary Assets and Liabilities - Agency Funds ................................................................................................................. 25 Notes to the Basic Financial Statements ............................................................................... 26 Combining Statements and Individual Fund Schedules ..................................................................... 67 Combining Statements - Nonmajor Governmental Funds Fund Descriptions.................................................................................................................. 68 Combining Balance Sheet - Nonmajor Governmental Funds ............................................... 71 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - Nonmajor Governmental Funds ............................................................... 77 Combining Statements - Fiduciary Funds Fund Descriptions.................................................................................................................. 83 Combining Statement of Changes in Assets and Liabilities - Agency Funds ........................................................................................................................ 84 Individual Fund Schedules of Revenues, Expenditures/Expenses, and Changes in Fund Balance - Budget (Non-GAAP Budgetary Basis) and Actual ........................................ 87 Major Funds .......................................................................................................................... 88 Nonmajor Funds .................................................................................................................... 98 STATISTICAL SECTION Description ......................................................................................................................................... S-1 Net Position - Last Ten Years .................................................................................................................................... S-2 Changes in Net Position - Last Ten Years .................................................................................................................................... S-4 Fund Balance - Governmental Funds - Last Ten Years .................................................................................................................................... S-8 Changes in Fund Balance - Governmental Funds - Last Ten Years .................................................................................................................................... S-10 Assessed and Estimated Actual Value of Taxable Property - Last Ten Years .................................................................................................................................... S-12 iv TABLE OF CONTENTS (continued) STATISTICAL SECTION (continued) Property Tax Rates - Direct and All Overlapping Governments - Last Ten Years .................................................................................................................................... S-14 Real Property Tax Levies and Collections - Last Ten Years .................................................................................................................................... S-16 Principal Taxpayers - Current Year and Nine Years Ago ..................................................................................................... S-17 Personal Income Tax Filers by Income Level - Last Nine Years .................................................................................................................................. S-18 Water Service by Type of Customer - Last Nine Years .................................................................................................................................. S-21 Sewer Service by Type of Customer - Last Nine Years .................................................................................................................................. S-26 Principal Water Customers - Last Eight Years ................................................................................................................................. S-31 Principal Sewer Customers - Last Eight Years ................................................................................................................................. S-35 Number of Water and Sewer Customers by Type - Last Eight Years ................................................................................................................................. S-39 Water Produced and Consumed and Wastewater Treated - Last Eight Years ................................................................................................................................. S-41 Ratios of Outstanding Debt by Type - Last Ten Years .................................................................................................................................... S-42 Ratio of General Bonded Debt to Estimated Actual Value and General Bonded Debt Per Capita - Last Ten Years .................................................................................................................................... S-44 Computation of Direct and Overlapping Debt for Governmental Activities ..................................... S-45 Computation of Legal Debt Margin - Last Ten Years .................................................................................................................................... S-46 General Obligation - Revenue Supported - Bond Coverage - Water Enterprise Fund - Last Ten Years .................................................................................................................................... S-48 General Obligation - Revenue Supported - Bond Coverage - Sewer Enterprise Fund - Last Ten Years .................................................................................................................................... S-49 v TABLE OF CONTENTS (continued) STATISTICAL SECTION (continued)