COMPREHENSIVE ANNUAL FINANCIAL REPORT City of Fort Wayne, Indiana Year Ended December 31, 2006 Patricia A. Roller, CPA Director of Finance and Administration City Controller Karen C. Aiken Deputy Controller Valerie A. Ahr Deputy Controller INTRODUCTION Table of Contents I. INTRODUCTION Page(s) Page(s) Table of Contents.......................................................................................................................................1-3 Mayor’s Letter of Transmittal......................................................................................................................... 5 Chief Financial Officer’s Letter of Transmittal..........................................................................................6-12 Locator Maps .........................................................................................................................................13-15 Organization Chart ...................................................................................................................................... 16 List of Principal Officials .........................................................................................................................17-18 Department Details ................................................................................................................................19-30 Fort Wayne at a Glance ..............................................................................................................................31 GFOA Certificate of Excellence .................................................................................................................32 II. FINANCIAL SECTION Independent Auditor’s Report.................................................................................................................33-34 Management’s Discussion and Analysis................................................................................................35-46 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets ...............................................................................................................48-49 Statement of Activities........................................................................................................................50 Fund Financial Statements: Balance Sheet – Governmental Funds .........................................................................................52-53 Reconciliation of the Balance Sheet to the Statement of Net Assets ..........................................................................................................54 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds............................................................................................................56-57 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...............................................................67-75 2. Deposits and Investments ..........................................................................................75-77 3. Capital Assets..............................................................................................................78-80 4. Long-Term Debt..........................................................................................................80-89 5. Operating Leases.............................................................................................................89 6. Deficit Fund Equity ..........................................................................................................90 7. Interfund Balances and Activity..................................................................................90-91 8. Risk Management .......................................................................................................92-93 9. Segment Information........................................................................................................94 10. Post Employment Health Care Benefits ..........................................................................95 11. Conduit Debt ................................ ................................ ................................ .................... 95 1 FINANCIAL SECTION (Continued) 12. Restricted Assets ........................................................................................................95-96 13. Lease of Electric Utility.....................................................................................................97 14. City of Fort Wayne Community Trust...............................................................................97 15. Net Investment in Direct Financing Lease.......................................................................97 16. Deferred Revenue – Unearned Revenue ........................................................................98 17. Redevelopment Authority-Grand Wayne Center Expansion Project...............................98 18. Harrison Square Project..............................................................................................98-99 19. Commitments and Contingencies.............................................................................99-100 20. Subsequent Events........................................................................................................100 21. Pension Plans .........................................................................................................100-106 Required Supplementary Information: Budgetary Comparison Schedule - General Fund ............................................................................................................................108 Budgetary Comparison Schedule - Major Special Revenue Funds..................................................................................................109 Modified Approach Schedules: Comparison of Needed-to-Actual Maintenance/Preservation Schedule ....................................................................................110 Condition Rating for City of Fort Wayne Street Infrastructure ..............................................................................................................110 Schedules of Funding Progress - Pensions.....................................................................................111 Schedules of Contributions from the Employer and other Contributing Entities - Pensions .................................................................................112 Notes to Required Supplementary Information.........................................................................113-115 Supplementary Information: Major Governmental Funds: Schedule of Expenditures - Budget and Actual General Fund..................................................................................118-119 Budgetary Comparison Schedules Other Budgeted Major Governmental Funds ..................................................................120 Non-major Governmental Funds: Combining Balance Sheet - Non-major Governmental Funds (by fund type)..............................................................123 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Non-major Governmental Funds (by fund type)..............................................................124 Combining Balance Sheet - Non-major Governmental Funds Non-major Special Revenue Funds .........................................................................125-126 Non-major Capital Project Funds ....................................................................................127 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Non-major Special Revenue Funds .........................................................................128-129 Non-major Capital Project Funds ....................................................................................130 Budgetary Comparison Schedules Other Non-major Budgeted Governmental Funds.....................................................131-133 Non-major Proprietary Funds: Combining Statement of Net Assets Non-major Enterprise Funds............................................................................................135 Internal Service Funds .....................................................................................................136