City of Fort Wayne, Indiana 201 Comprehensive Annual Financial Report for the year ended December 31, 201 Thomas C. Henry /HQ3RHKOHU Mayor Controller COMPREHENSIVE ANNUAL FINANCIAL REPORT City of Fort Wayne, Indiana Year Ended December 31, 201 /HQ3RHKOHU Director of Finance and Administration City Controller Valerie A. Ahr Deputy Controller TABLE OF CONTENTS Page(s) Table of Contents.............................................................................................................................................. 1-3 I. INTRODUCTION Mayor’s Letter of Transmittal............................................................................................................................. 5 Chief Financial Officer’s Letter of Transmittal................................................................................................... 7-14 Locator Maps..................................................................................................................................................... 15-17 Organizational Chart.......................................................................................................................................... 18 List of Principal Officials.................................................................................................................................... 19 Department Details............................................................................................................................................ 20-31 Fort Wayne at a Glance.................................................................................................................................... 32 GFOA Certificate of Excellence ........................................................................................................................ 33 II. FINANCIAL SECTION Independent Auditor’s Report............................................................................................................................ 35-37 Management’s Discussion and Analysis........................................................................................................... 39-49 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position....................................................................................................................... 51 Statement of Activities............................................................................................................................ 52 Fund Financial Statements: Balance Sheet - Governmental Funds................................................................................................... 53 Reconciliation of the Balance Sheet to the Statement of Net Position - Governmental Funds............ 54 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds........ 55 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities - Governmental Funds ………................................................... 56 Statement of Net Position - Proprietary Funds....................................................................................... 57 Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds.............. 58 Statement of Cash Flows - Proprietary Funds....................................................................................... 59 Statement of Net Position - Fiduciary Funds.......................................................................................... 60 Statement of Changes in Net Position - Fiduciary Funds...................................................................... 61 Combining Statement of Net Position - Discretely Presented Component Units ................................. 62 Combining Statement of Activities - Discretely Presented Component Units ...................................... 63 Notes to the Financial Statements: 1. Summary of Significant Accounting Policies......................................................................................... 65-76 2. Deposits and Investments...................................................................................................................... 77-79 3. Capital Assets........................................................................................................................................ 79-81 4. Long-Term Debt..................................................................................................................................... 82-89 5. Operating Leases................................................................................................................................... 89 TABLE OF CONTENTS (Continued) Page(s) 6. Deficit Fund Balances............................................................................................................................ 89 7. Interfund Balances and Activity............................................................................................................. 90-91 8. Risk Management.................................................................................................................................. 91-92 9. Segment Information.............................................................................................................................. 93 10. Other Postemployment Benefits............................................................................................................ 94-95 11. Conduit Debt.......................................................................................................................................... 95 12. Restricted Assets................................................................................................................................... 96-97 13. Lease and Subsequent Installment Sale of Electric Utility Assets........................................................ 97-98 14. City of Fort Wayne Community Legacy Fund........................................................................................ 98 15. Net Investment in Direct Financing Lease............................................................................................. 98 16. Unearned Revenue................................................................................................................................ 99 17. Deferred Outflows of Resources........................................................................................................... 99 18. Deferred Inflows of Resources.............................................................................................................. 99 19. Fund Balance Classification.................................................................................................................. 100 20. Redevelopment Authority....................................................................................................................... 101-102 21. Restatement - Change in Accounting Principle..................................................................................... 102 22. Commitments and Contingencies.......................................................................................................... 102-103 23. Subsequent Events................................................................................................................................ 104 24. Net Investment in Capital Assets........................................................................................................... 104 25. Pension Plans........................................................................................................................................ 105-129 Required Supplementary Information: Budgetary Comparison Schedule - General Fund...................................................................................... 131 Budgetary Comparison Schedule - Major Special Revenue Funds............................................................ 132-133 Infrastructure - Modified Reporting: Comparison of Budgeted–to-Actual Maintenance/Preservation........................................................... 134 Condition Rating..................................................................................................................................... 134 Schedule of Changes in the City's Net Pension Liability and Related Ratios - Single-employer Defined Benefit Pension Plans....................................................................................................... 135-137 Schedule of the City's Proportionate Share of the Net Pension Liability - Cost-Sharing Multiple- employer Defined Benefit Pension Plans....................................................................................... 138 Schedule of City Contributions - Single-Employer Defined Benefit Pension Plans.................................... 139 Schedule of City Contributions - Cost-Sharing Multiple-Employer Defined Benefit Pension Plans........... 140 Schedule of Pension Investment Returns................................................................................................... 141 Schedule of Funding Progress - Retiree Healthcare Plan.......................................................................... 142 Schedule of City Contributions - Retiree Healthcare Plan.......................................................................... 142 Notes to Required Supplementary Information..........................................................................................