City Council City of Sandusky 222 Meigs Street Sandusky, Ohio 44870 We have reviewed the Independent Auditor’s Report of the City of Sandusky, Erie County, prepared by Rea & Associates, Inc., for the audit period January 1, 2011 through December 31, 2011. Based upon this review, we have accepted these reports in lieu of the audit required by Section 117.11, Revised Code. The Auditor of State did not audit the accompanying financial statements and, accordingly, we are unable to express, and do not express an opinion on them. Our review was made in reference to the applicable sections of legislative criteria, as reflected by the Ohio Constitution, and the Revised Code, policies, procedures and guidelines of the Auditor of State, regulations and grant requirements. The City of Sandusky is responsible for compliance with these laws and regulations. Dave Yost Auditor of State August 9, 2012 88 East Broad Street, Fifth Floor, Columbus, Ohio 43215‐3506 Phone: 614‐466‐4514 or 800‐282‐0370 Fax: 614‐466‐4490 www.ohioauditor.gov This page intentionally left blank. Introductory This page intentionally left blank. CITY OF SANDUSKY, OHIO COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2011 Prepared By: Department of Finance Hank S. Solowiej, CPA Finance Director 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, 2011 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...................................................................................... 3 Basic Financial Statements Government-Wide Financial Statements Statement of Net Assets .................................................................................................. 11 Statement of Activities .................................................................................................... 12 Fund Financial Statements Balance Sheet - Governmental Funds ............................................................................. 14 Reconciliation of Total Governmental Fund Balance to Net Assets 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................................................................................................ 20 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (Non-GAAP Budgetary Basis) and Actual General Fund ............................................................................................................ 22 Statement of Fund Net Assets - Enterprise Funds .......................................................... 23 Statement of Revenues, Expenses, and Changes in Fund Net Assets - Enterprise Funds ........................................................................... 24 iii TABLE OF CONTENTS (continued) FINANCIAL SECTION (continued) Statement of Cash Flows - Enterprise Funds .................................................................. 25 Statement of Fiduciary Assets and Liabilities - Agency Funds ................................................................................................................. 27 Notes to the Basic Financial Statements ............................................................................... 28 Combining Statements and Individual Fund Schedules ..................................................................... 71 Combining Statements - Nonmajor Governmental Funds Fund Descriptions.................................................................................................................. 72 Combining Balance Sheet - Nonmajor Governmental Funds ............................................... 75 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - Nonmajor Governmental Funds ............................................................... 81 Combining Statements - Fiduciary Funds Fund Descriptions.................................................................................................................. 86 Combining Statement of Changes in Assets and Liabilities - Agency Funds ........................................................................................................................ 87 Individual Fund Schedules of Revenues, Expenditures/Expenses, and Changes in Fund Balance - Budget (Non-GAAP Budgetary Basis) and Actual ........................................ 89 Major Funds .......................................................................................................................... 90 Nonmajor Funds .................................................................................................................... 104 STATISTICAL SECTION Description ......................................................................................................................................... S-1 Net Assets - Last Ten Years .................................................................................................................................... S-2 Changes in Net Assets - 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 Eight Years ................................................................................................................................. S-18 Water Service by Type of Customer - Last Eight Years ................................................................................................................................. S-20 Sewer Service by Type of Customer - Last Eight Years ................................................................................................................................. S-24 Principal Water Customers - Last Seven Years ................................................................................................................................ S-28 Principal Sewer Customers - Last Seven Years ................................................................................................................................ S-32 Number of Water and Sewer Customers by Type - Last Seven Years ................................................................................................................................ S-36 Water Produced and Consumed and Wastewater Treated - Last Seven Years ................................................................................................................................ S-37 Ratios of Outstanding Debt by Type - Last Ten Years .................................................................................................................................... S-38 Ratio of General Bonded Debt to Estimated Actual Value and General Bonded Debt Per Capita - Last Ten Years