LEXINGTON-FAYETTE URBAN COUNTY GOVERNMENT COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2011 The historic Fayette County courthouse on Main Street is now home to the Lexington History Museum - Photo courtesy Ian Davis COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2011 LEXINGTON-FAYETTE URBAN COUNTY GOVERNMENT LEXINGTON, KENTUCKY PREPARED BY THE DEPARTMENT OF FINANCE AND ADMINISTRATION Paid for with Lexington-Fayette Urban County Government Funds TABLE OF CONTENTS LEXINGTON-FAYETTE URBAN COUNTY GOVERNMENT Comprehensive Annual Financial Report Year Ended June 30, 2011 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 Independent Auditor's Report ................................................................................................................................ 12 Management’s Discussion and Analysis................................................................................................................ 14 Basic Financial Statements .................................................................................................................................... 28 Government–wide Financial Statements Statement of Net Assets ............................................................................................................................. 29 Statement of Activities ............................................................................................................................... 31 Fund Financial Statements Governmental Fund Financial Statements Balance Sheet – Governmental funds ................................................................................................... 33 Reconciliation of the Balance Sheet to the Statement of Net Assets Governmental Funds .................. 34 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .......... 35 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................................... 36 Statement of Revenues, Expenditures and Changes in Fund Balance – Budgetary Comparison – General Fund ........................................................................................................... 37 Statement of Revenues, Expenditures and Changes in Fund Balances – Budgetary Comparison – Full Urban Services District Fund ........................................................................... 41 Proprietary Fund Financial Statements Statement of Net Asset ......................................................................................................................... 43 Statement of Revenues, Expenses, and Changes in Net Assets ............................................................ 45 Statement of Cash Flows ...................................................................................................................... 47 Fiduciary Fund Financial Statements Statement of Fiduciary Net Assets........................................................................................................ 49 Statement of Changes in Fiduciary Net Assets ..................................................................................... 50 Component Units Financial Statements Statement of Net Assets ........................................................................................................................ 51 Statement of Activities ......................................................................................................................... 52 Notes to Financial Statements .................................................................................................................... 53 Combining and Individual Funds Statements and Schedules Combining Balance Sheet – Nonmajor Governmental Funds .................................................................. 101 Combining Statement of Revenues, Expenditures and Changes in Fund Balance – Nonmajor Governmental Funds ..................................................................................................................... 103 Schedule of Expenditures of Federal Awards .......................................................................................... 105 Schedule of Expenditures of State Awards .............................................................................................. 108 Combining Statement of Net Assets – Nonmajor Enterprise Funds ........................................................ 110 Combining Statement of Revenues, Expenses, and Changes in Net Assets – Nonmajor Enterprise Funds ........................................................................................................................... 111 Combining Statement of Cash Flows – Nonmajor Enterprise Funds ....................................................... 112 i Combining Statement of Net Assets – Internal Service Funds ................................................................. 114 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets – Internal Service Funds ................................................................................................................................ 115 Combining Statement of Cash Flows – Internal Service Funds ............................................................... 116 Combining Statement of Net Assets – Agency Funds .............................................................................. 118 Combining Statement of Changes in Assets and Liabilities – Agency Funds .......................................... 119 Combining Statement of Net Assets – Nonmajor Component Units ....................................................... 122 Combining Statement of Activities – Nonmajor Component Units ......................................................... 124 STATISTICAL SECTION Net Assets ...................................................................................................................................................... 129 Changes in Net Assets .................................................................................................................................... 130 Fund Balances, Governmental Funds............................................................................................................. 132 Changes in Fund Balances, Governmental Funds .......................................................................................... 133 Changes in Fund Balance, General Fund ....................................................................................................... 134 Sanitary Sewer System, Summary of Revenues and Expenses ...................................................................... 135 Net Assessed Value – Real, Tangible & Intangible Property......................................................................... 136 Property Tax Levies and Collections ............................................................................................................. 137 Direct and Overlapping Property Tax Rates .................................................................................................. 138 Principal Property Tax Payers ........................................................................................................................ 139 Direct and Overlapping License Fee Rates .................................................................................................... 140 Ten Major Occupational Tax Withholders ..................................................................................................... 141 Ratios of Outstanding Debt by Type .............................................................................................................. 142 Ratios of General Bonded Debt Outstanding ................................................................................................. 143 Schedule of Direct and Overlapping Indebtedness ........................................................................................ 144 Legal Debt Margin Information ..................................................................................................................... 145 Revenue Bond Coverage ................................................................................................................................ 146 Demographic and Economic Statistics ........................................................................................................... 147 Principal Employers, Fayette County............................................................................................................