COMPREHENSIVE ANNUAL FINANCIAL REPORT for the fiscal year ended June 30, 2018 COMPREHENSIVE ANNUAL FINANCIAL REPORT for the fiscal year ended June 30, 2018 Director of Finance: Reginald E. Zeno Assistant Director of Finance: Karen Alder Finance Manager: Mark Ashworth 2018 CINCINNATI, OHIO INTRODUCTORY SECTION CITY OF CINCINNATI, OHIO COMPREHENSIVE ANNUAL FINANCIAL REPORT For the fiscal year ended June 30, 2018 TABLE OF CONTENTS INTRODUCTORY SECTION Page Letter of Transmittal ........................................................................................................................................ 5 Certificate of Achievement .............................................................................................................................. 13 Principal City Officials ................................................................................................................................... 15 Organization Chart ......................................................................................................................................... 17 FINANCIAL SECTION Page Report of Independent Auditors ...................................................................................................................... 21 Management’s Discussion and Analysis ........................................................................................................ 24 BASIC FINANCIAL STATEMENTS: Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ................................................................................................................ 39 Statement of Activities .................................................................................................................... 41 Fund Financial Statements: Balance Sheet – Governmental Funds ............................................................................................ 42 Reconciliation of the Balance Sheet to the Statement of Net Position – Governmental Funds ....... 43 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ...... 44 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities – Governmental Funds ........................................................................ 45 Statement of Net Position – Proprietary Funds .............................................................................. 47 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds .......... 49 Statement of Cash Flows – Proprietary Funds ................................................................................ 50 Statement of Fiduciary Net Position – Fiduciary Funds .................................................................. 52 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ............................................... 53 Notes to Financial Statements ................................................................................................................ 55 Required Supplementary Information Schedules of Ohio Police and Fire Pension Fund Net Pension Liability ............................................... 149 Schedules of Ohio Police and Fire Pension Fund Net Other Postemployment Benefit Liability ........... 150 Schedules of Ohio Public Employees Retirement System Net Pension Liability .................................. 151 Schedules of Ohio Public Employees Retirement System Net Other Postemployment Benefit Liability ................................................................................................................................................ 152 Schedule of City’s Cincinnati Retirement System Net Pension Liability and Related Ratios ................ 153 Schedule of City’s Cincinnati Retirement System Pension Employer Contributions ............................ 154 Schedule of City’s Cincinnati Retirement System Net Pension Liability Notes to the Required Supplementary Information .................................................................................................................. 155 1 TABLE OF CONTENTS (Continued) FINANCIAL SECTION (Continued) Page Schedule of City’s Cincinnati Retirement System Net Other Postemployment Benefit Liability and Related Ratios ...................................................................................................................................... 156 Schedule of City’s Cincinnati Retirement System Net Other Postemployment Benefit Employer Contributions ...................................................................................................................................... 157 Schedule of City’s Cincinnati Retirement System Notes to the Other Postemployment Benefit Required Supplementary Information ................................................................................................. 158 Schedule of Cincinnati Retirement System Net Pension Liability and Related Ratios .......................... 159 Schedule of Cincinnati Retirement System Pension Employer Contributions ....................................... 160 Schedule of Cincinnati Retirement System Net Other Postemployment Benefit Liability and Related Ratios ...................................................................................................................................... 161 Schedule of Cincinnati Retirement System Net Other Postemployment Benefit Employer Contributions ...................................................................................................................................... 162 Schedule of Cincinnati Retirement System Net Other Postemployment Benefit Liability .................... 163 Budgetary Comparison Schedule – General Fund .................................................................................. 164 Note to the Required Supplementary Information-Budgetary Data ....................................................... 165 Supplementary Information Major Governmental Fund: ................................................................................................................... 169 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) – and Actual General Fund ..................................................... 171 Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund ..................... 177 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) – and Actual Capital Projects Fund ........................................ 182 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) – and Actual Debt Service Fund ............................................. 184 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) – and Actual Tax Increment Financing Fund ......................... 185 Nonmajor Governmental Funds ................................................................................................................ 187 Combining Balance Sheet – Nonmajor Governmental Funds ............................................................ 189 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds................................................................... 192 Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) and Actual Health Services Fund ........................................................................................................... 195 Street Construction, Maintenance and Repair Fund ............................................................ 196 Income Tax Infrastructure Fund .......................................................................................... 197 Income Tax Transit Fund .................................................................................................... 200 Motor Vehicle License Fund ................................................................................................ 201 Special Recreation Fund ..................................................................................................... 202 Special Parks Fund ............................................................................................................... 203 Streetcar Operations Fund .................................................................................................... 204 Recreation Grants Fund ....................................................................................................... 205 Parks Fund .......................................................................................................................... 206 Safety Fund ......................................................................................................................... 207 Health Fund ......................................................................................................................... 208 Cincinnati Blue Ash Airport Fund ...................................................................................... 209 Community Development Fund .......................................................................................... 210 Department of Labor Grants Fund ...................................................................................... 212 Other Grants Fund ..............................................................................................................