LEXINGTON-FAYETTE URBAN COUNTY GOVERNMENT COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2016 Cover by: Amy Wallot/Communications COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2016 LEXINGTON-FAYETTE URBAN COUNTY GOVERNMENT LEXINGTON, KENTUCKY PREPARED BY THE DEPARTMENT OF FINANCE AND ADMINISTRATION Paid for with Lexington-Fayette Urban County Government Funds This page intentionally left blank. TABLE OF CONTENTS LEXINGTON-FAYETTE URBAN COUNTY GOVERNMENT Comprehensive Annual Financial Report Year Ended June 30, 2016 INTRODUCTORY SECTION Mayor’s Letter of Transmittal .................................................................................................................................. 1 Elected Officials ..................................................................................................................................................... 2 Commissioner of Finance and Administration Letter of Transmittal ...................................................................... 3 GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................................. 9 Organizational Chart .............................................................................................................................................. 10 Directory of Government Officials ........................................................................................................................ 11 FINANCIAL SECTION Report of the Independent Auditors ....................................................................................................................... 13 Management’s Discussion and Analysis................................................................................................................ 16 Basic Financial Statements .................................................................................................................................... 30 Government–Wide Financial Statements Statement of Net Position ........................................................................................................................... 31 Statement of Activities ............................................................................................................................... 33 Fund Financial Statements Governmental Fund Financial Statements Balance Sheet – Governmental Funds .................................................................................................. 35 Reconciliation of the Balance Sheet to the Statement of Net Position – Governmental Funds ............ 36 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .......... 37 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................................... 38 Proprietary Fund Financial Statements Statement of Net Position ....................................................... 39 Statement of Revenues, Expenses, and Changes in Net Position ......................................................... 41 Statement of Cash Flows ...................................................................................................................... 43 Fiduciary Fund Financial Statements Statement of Net Position ..................................................................................................................... 45 Statement of Changes in Net Position .................................................................................................. 46 Component Unit Financial Statements Statement of Net Position ..................................................................................................................... 47 Statement of Activities ......................................................................................................................... 48 Notes to Financial Statements .................................................................................................................... 50 Required Supplementary Information Statement of Revenues, Expenditures, and Changes in Fund Balance – Budgetary Comparison – General Fund ........................................................................................................................... 102 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budgetary Comparison – Full Urban Services District Fund ............................................................................................. 105 Schedule of Changes in the net pension liability and related ratios ......................................................... 107 Schedule of the Government contributions .............................................................................................. 108 Schedule of Changes in the net pension liability and related ratios ......................................................... 109 Schedule of the Government’s proportionate share of the net liability .................................................... 110 Schedule of the Government’s contributions ........................................................................................... 111 Other Supplementary Information Combining Balance Sheet – Nonmajor Governmental Funds .................................................................. 114 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds ..................................................................................................................... 116 Schedule of Expenditures of Federal Awards .......................................................................................... 118 i Schedule of Expenditures of State Awards .............................................................................................. 121 Combining Statement of Net Position – Nonmajor Enterprise Funds ...................................................... 123 Combining Statement of Revenues, Expenses, and Changes in Net Position – Nonmajor Enterprise Funds ........................................................................................................................... 124 Combining Statement of Cash Flows – Nonmajor Enterprise Funds ....................................................... 125 Combining Statement of Net Position – Internal Service Funds .............................................................. 127 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position – Internal Service Funds ................................................................................................................................ 128 Combining Statement of Cash Flows – Internal Service Funds ............................................................... 129 Combining Statement of Net Position – Agency Funds ........................................................................... 131 Combining Statement of Changes in Assets and Liabilities – Agency Funds .......................................... 132 Combining Statement of Net Position – Nonmajor Component Units ..................................................... 134 Combining Statement of Activities – Nonmajor Component Units ......................................................... 136 STATISTICAL SECTION Net Position .................................................................................................................................................... 140 Changes in Net Position ................................................................................................................................. 141 Fund Balances, Governmental Funds............................................................................................................. 143 Changes in Fund Balances, Governmental Funds .......................................................................................... 144 Changes in Fund Balance, General Fund ....................................................................................................... 145 Sanitary Sewer System, Summary of Revenues and Expenses ...................................................................... 146 Net Assessed Value – Real, Tangible & Intangible Property......................................................................... 147 Property Tax Levies and Collections ............................................................................................................. 148 Direct and Overlapping Property Tax Rates .................................................................................................. 149 Principal Property Tax Payers ........................................................................................................................ 150 Direct and Overlapping License Fee Rates .................................................................................................... 151 Ten Major Occupational Tax Withholders ..................................................................................................... 152 Ratios of Outstanding Debt by Type .............................................................................................................. 153 Ratios of General Bonded Debt Outstanding ................................................................................................. 154 Schedule of Direct and Overlapping Indebtedness .......................................................................................