NORTH CAR OLINA Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2016 City of Winston-Salem, North Carolina Perched over Single Brothers Bar, “Jenna” keeps watch over the swelling vitality of Trade Street in Winston-Salem. Created by world-renowned body painter Cheryl Ann Lipstreu and installed as part of the Art for Arts Sake (AFAS) jenna Group’s “Mannequin Shenanigans” public art campaign in 2013, she has welcomed many new establishments to the neighborhood including: Mast General Store, Mission Pizza Napoletana, Broad Brand Distillery, Black Mountain Chocolate and Big Winston Lounge. AFAS has been instrumental in building a sense of community in Winston-Salem through their mission to “build, educate and celebrate community through art.” II NORTH CAR OLINA The Comprehensive Annual Financial Report is prepared by Financial Management Services. Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2016 2015•2016 WINSTON-SALEM,City of Winston-Salem, NORTH CAROLINA North CarolinaIII CREATIVE DIRECTION AND COPY Rachel Barron, Next Level Communications DESIGN AND ART DIRECTION LinTaylor Marketing Group, Inc. PRINTING credits Keiger Graphic Communications PHOTOGRAPHY Wings Over Winston Visit Winston-Salem Jeff Silkstone Southeastern Center for Contemporary Art UNCSA Film Village The City of Winston-Salem Marketing Department Rachel Barron Will & Deni McIntyre Daniel Alvarez/Twin City Stage IV City of Winston-Salem, North Carolina COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2016 Introductory Section Page Letter of Transmittal . .2 Local Economy . .4 Community Profile . .14 GFOA Certificate of Achievement. 31 Organizational Chart . 32 City Officials . 33 Financial Section Exhibit Page Independent Auditor’s Report . 34 Management’s Discussion & Analysis . 36 Basic Financial Statements . .45 Government-wide Financial Statements – Statement of Net Position . 1 . 46 – Statement of Activities. .2 . 48 Fund Financial Statements – Balance Sheet – Governmental Funds . 3. 50 – Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position. .3.1. 51 – Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds. .4 . 52 – Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities. .4.1. 53 – Statement of Revenues, Expenditures, and Changes in Fund Balance –Budget and Actual – General Fund . 5. 54 – Statement of Net Position – Proprietary Funds. .6. 59 – Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds . .7. 61 – Statement of Cash Flows – Proprietary Funds . .8. 62 – Statement of Fiduciary Net Position – Fiduciary Funds . .9. 64 – Statement of Changes in Fiduciary Net Position – Fiduciary Funds . 10. 65 Notes to the Financial Statements . 66 Required Supplementary Information. .. 107 – Schedule of Funding Progress –Winston-Salem Police Officers’ Retirement, Police Officers’ Separation Allowance, Post-employment Benefits . .11 . 108 – Schedule of Employer Contributions – Winston-Salem Police Officers’ Retirement, Police Officers’ Separation Allowance, Post-employment Benefits. .12 . 109 – Schedule of Changes in Net Pension Liability and Related Ratios, Winston-Salem Police Officers’ Retirement System . 13 . 111 – Schedule of Contributions, Winston-Salem Police Officers’ Retirement System . 14 . 112 – Schedule of Investment Returns, Winston-Salem Police Officers’ Retirement System . 15 . 114 – Schedule of Changes in Net Pension Liability and Related Ratios, Winston-Salem Police Officers’ Separation Allowance . 16 . 115 – Schedule of Contributions, Winston-Salem Police Officers’ Separation Allowance . 17 . 116 – Schedule of Investment Returns, Winston-Salem Police Officers’ Separation Allowance . 18 . 118 – City of Winston-Salem’s Proportionate Share of Net Pension Liability (Asset) Schedule of Local Government Employees’ Retirement System . 19 . 119 – City of Winston-Salem’s Contributions Schedule of Local Government Employees’ Retirement System . 20 . 120 2015•2016 WINSTON-SALEM, NORTH CAROLINA Financial Section continued Exhibit Page Combining and Individual Fund Statements and Schedules: Major Funds: Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual – Debt Service Fund . 21 . 125 – Capital Projects Fund. .22 . 126 Enterprise Funds – Schedule of Revenues, Expenditures, and Transfers – Budget (non-GAAP Basis) and Actual – Water and Sewer Utility Fund . 23 . 127 – Solid Waste Disposal Fund . 24 . 128 – Transit Authority Fund . .25 . 129 Nonmajor Governmental Funds: – Combining Balance Sheet – Nonmajor Governmental Funds . 26 . 132 – Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds . 27 . 134 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Community Development Fund. .28 . 136 – Grants Fund . 29 . 137 – Economic and Housing Development Fund . .30 . 138 – Gasoline Tax Fund . 31 . 139 – Occupancy Tax Fund . 32 . 140 – Cable Franchise Fee Fund . 33 . 141 – Emergency Telephone System Fund . 34 . 142 – Downtown Winston-Salem Business Improvement District Fund . 35 . 143 Nonmajor Enterprise Funds: – Combining Statement of Net Position – Nonmajor Enterprise Funds. .36 . 146 – Combining Statement of Revenues, Expenses, and Changes in Net Position – Nonmajor Enterprise Funds . 37 . 147 – Combining Statement of Cash Flows – Nonmajor Enterprise Funds . 38 . 148 Schedule of Revenues, Expenditures, and Transfers – Budget (Non-GAAP Basis) and Actual – Parking Fund . .39 . 150 – Stormwater Management Fund . 40 . 151 – Public Assembly Facilities Management Fund . 41 . 152 Internal Service Funds: – Combining Statement of Net Position – Internal Service Funds . 42 . 154 – Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds. .43 . 156 – Combining Statement of Cash Flows – Internal Service Funds . 44 . 158 Schedule of Revenues, Expenditures.