City of Dayton, Ohio Splashing it up! Comprehensive Annual Financial Report January 1, 2007 • December 31, 2007 LEFT TO RIGHT Rhine McLin, Mayor Dean Lovelace, Commissioner Joey D. Williams, Commissioner Matt Joseph, Commissioner Nan Whaley, Commissioner Rashad M. Young, City Manager City of Dayton, Ohio Splashing it up! INTRODUCTORY Splashing it up! it Splashing City of Dayton, Ohio Dayton, of City CITY OF DAYTON, OHIO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2007 Table of Contents (Continued) Combining Statements and Individual Fund Schedules: Combining Statements - Nonmajor Governmental Funds Fund Descriptions . F 101 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Non-GAAP Budgetary Basis) - General Fund . .F 102 Combining Balance Sheet - Nonmajor Governmental Funds . F 104 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds . F 105 Combining Balance Sheet - Nonmajor Special Revenue Funds . .F 106-107 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue Funds . F 108-109 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Non-GAAP Budgetary Basis) - Street Fund. .F 110 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Non-GAAP Budgetary Basis) – Highway Maintenance Fund. .F 111 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Non-GAAP Budgetary Basis) – Special Projects Fund. F 112 Schedule of Revenues, Expenditures, and Changes in Fund Balance -Budget and Actual (Non-GAAP Budgetary Basis) - Miscellaneous Grants Fund. F 113 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Non-GAAP Budgetary Basis) - Debt Service Fund . F 114 Combining Statements - Nonmajor Enterprise Funds Fund Descriptions. .F 115 Combining Statement of Net Assets - Nonmajor Enterprise Funds . F 116 Combining Statement of Revenues, Expenses and Changes in Net Assets - Nonmajor Enterprise Funds . F 117 Combining Statement of Cash Flows – Nonmajor Enterprise Funds. F 118 I 2 CITY OF DAYTON, OHIO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2007 Table of Contents (Continued) Combining Statements – Internal Service Funds Fund Descriptions . .F 119 Combining Statement of Net Assets - Internal Service Funds . .F 120 Combining Statement of Revenues, Expenses and Changes in Net Assets - Internal Service Funds . .F 121 Combining Statement of Cash Flows - Internal Service Funds . .F 122 Combining Statements - Fiduciary Funds Fund Descriptions . .F 123 Combining Statement of Changes in Assets and Liabilities - Agency Funds . F124-127 STATISTICAL SECTION Statistical Section Table of Contents. ..S 3 Net Assets by Component – Last Six Fiscal Years. .S 4 - S 5 Changes in Net Assets – Last Six Fiscal Years. .S 6- S 9 Fund Balances, Governmental Funds – Last Ten Fiscal Years. S 10 - S 11 Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years. .S 12 - S13 Income Tax Revenue – Last Ten Fiscal Years . ..S 14 Property Tax Levies and Collections – Last Ten Fiscal Years . .S 15 Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years. S 16 - S 17 Property Tax Rates – Direct and Overlapping Governments – Last Ten Fiscal Years. .S 18 - S 19 Principal Property Tax Payers – Current Year and Nine Years Ago. .S 20 Special Assessment Billings and Collections – Last Ten Fiscal Years . .S 21 Ratios of Outstanding Debt By Type – Last Ten Fiscal Years . .S 22 - S 23 Computation of Legal Debt Margin – Last Ten Fiscal Years. .S 24 - S 25 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita – Last Ten Fiscal Years. .S 26 I 3 CITY OF DAYTON, OHIO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2007 Table of Contents (Continued) Ratio of Annual Debt Service Expenditures For General Obligation Bonded Debt To Total General Governmental Expenditures – Last Ten Fiscal Years . .S 27 Computation of Direct and Overlapping Debt – December 31, 2007. .S 28 Water Enterprise Revenue Bond Coverage – Last Nine Fiscal Years. S 29 Dayton International Airport Enterprise Revenue Bond Coverage – Last Ten Fiscal Years. S 30 Business Indicators – Last Ten Fiscal Years. S 31 Growth in Land Area – Selected Years. S 32 Principal Employers – Current Year and Nine Years Ago. S 33 Estimated Civilian Labor Force and Annual Average Unemployment Rates – Last Ten Fiscal Years. S 34 Estimated Per Capita Income and Personal Income – Last Ten Fiscal Years. S 35 Dayton Metropolitan Statistical Area Employment, Nonagricultural Wage and Salary Employment in Selected Industries – Last Ten Fiscal Years. S 36 - S 37 Full Time Equivalent City Government Employees By Function/Program – Last Seven Fiscal Years. .S 38 School Enrollment Trends in Montgomery County – Last Ten Fiscal Years. S 39 City of Dayton and Montgomery County, Ohio - Land Area – December 31, 2007. S 40 Building Permits Issued – Last Ten Fiscal Years. S 41 Average Cost of Housing Construction – Last Ten Fiscal Years. S 42 Operating Indicators and Capital Asset Statistics – Last Ten Fiscal Years. S 43 I 4 July 29, 2008 The Honorable Mayor, Members of the City Commission, the City Manager, and the Citizens of the City of Dayton, Ohio We are pleased to submit the Comprehensive Annual Financial Report (CAFR) of the City of Dayton, Ohio for the fiscal year ended December 31, 2007. The City’s Charter, Sections 44 and 78, prescribes the required accounting, audit and examination procedures for the City of Dayton. Clark, Schaefer and Hackett, Certified Public Accountants, studies the City’s system of internal control, conducts such tests that are necessary under the circumstances and renders an opinion based upon the statements when taken in whole. The City has again received an unqualified opinion from the independent auditor that the financial statements are presented fairly. The opinion letter is included in the Financial Section of this report. State law requires that every general-purpose local government publish within six months of the close of each fiscal year a complete set of audited financial statements. The CAFR was prepared using Generally Accepted Accounting Principals (GAAP) as applied to governmental units and contains all disclosures necessary to enable the reader to understand the City’s financial affairs. Responsibility for both the accuracy of the data and completeness and fairness of the presentation rests with the management of the City. The City’s accounting system provides reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition and the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of internal control should not exceed the benefits likely to be derived and that the evaluation of costs and benefits require estimates and judgments by management. This transmittal letter is designed to provide historical information about the City, as well as complement the required Management’s Discussion and Analysis (MD&A). GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements. The City’s MD&A, which focuses on the government-wide statements, can be found immediately following the report of the independent auditors. PROFILE OF THE CITY OF DAYTON Dayton was founded on April 1, 1796 by a small group of US settlers seven years before the admission of Ohio to the Union in 1803. The town was incorporated in 1805 and given its name after Jonathan Dayton, a captain in the American Revolutionary War and youngest signer of the U.S. Constitution. In 1797, Daniel C. Cooper laid out the Mad River Road, the first overland connection between Cincinnati, Ohio and Dayton. This opened up the "Mad River Country" at Dayton and the upper Miami Valley to settlement. In 1913, Dayton was the first large city to adopt the Council-Manager form of government The Dayton City Commission is comprised of the Mayor and four City Commissioners. They are elected at-large on a non-partisan basis for four-year overlapping terms. All policy items are decided by the City Commission, which is empowered by the City Charter to pass ordinances and resolutions, adopt regulations and appoint the City Manager. The City Manager manages 19 City Departments employing 2761 people. I 5 Dayton is a city in southwestern Ohio. It is the county seat and the largest city in Montgomery County. Dayton is a part of several other communities called the Greater Dayton area which includes the communities of Vandalia, Trotwood, Kettering, Centerville, Beavercreek, Fairborn, West Carrollton, Huber Heights, Troy, and Miamisburg. As of the 2006 census estimate, the population of Dayton was 156,711. The estimate for the Greater Dayton Area had a population of 542,237. The City provides a full range of services that include water supply and treatment, sewer and storm water maintenance, wastewater treatment, airport services, fire and emergency medical services, police protection, convention center, building inspection, neighborhood support, recreation and parks, golf, street and bridge maintenance, waste collection, and a municipal court system. The City has included in the CAFR all of the funds for which it is financially