Town of Plymouth Connecticut Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2011 Town of Plymouth Connecticut Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2011 Prepared by: COMPTROLLER’S OFFICE DIRECTOR OF FINANCE David Bertnagel TOWN OF PLYMOUTH, CONNECTICUT COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2011 TABLE OF CONTENTS Introductory Section Page List of Principal Officials i Organizational Chart ii Letter of Transmittal iii-viii Certificate of Achievement for Excellence in Financial reporting ix Financial Section Independent Auditors’ Report 1-2 Management’s Discussion and Analysis 3-12 Exhibit Basic Financial Statements Government-Wide Financial Statements I Statement of Net Assets 13 II Statement of Activities 14 Fund Financial Statements Governmental Funds: III Balance Sheet 15-16 IV Statement of Revenues, Expenditures and Changes in Fund Balances 17-18 Proprietary Funds: V Statement of Net Assets 19 VI Statement of Revenues, Expenses and Changes in Fund Net Assets 20 VII Statement of Cash Flows 21 Fiduciary Funds: VIII Statement of Fiduciary Net Assets 22 IX Statement of Changes in Plan Net Assets 23 Notes to Financial Statements 24-47 Required Supplementary Information RSI-1 Schedule of Revenues and Other Financing Sources - Budget and Actual 48-49 RSI-2 Schedule of Expenditures and Other Financing Uses - Budget and Actual 50-51 Exhibit Page Combining and Individual Fund Statements and Schedules General Fund A-1 Comparative Balance Sheet 52 A-2 Report of Tax Collector 53 Nonmajor Governmental Funds B-1 Combining Balance Sheet 54-56 B-2 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 57-59 Sewer Operating Fund: B-3 Schedule of Revenues, Other Financing Sources and Expenditures Budget and Actual 60-62 B-4 Schedule of Sewer Use Charges Receivable 63 Sewer Assessment Fund: B-5 Schedule of Sewer Assessments Receivable 64 Agency Funds C-1 Combining Balance Sheet 65 C-2 Combining Statement of Changes in Assets and Liabilities 66 Statistical Section Table Financial Trends: 1 Net Assets by Component 67 2 Changes in Net Assets 68 3 Fund Balances, Governmental Funds 69 4 Changes in Fund Balances, Governmental Funds 70 Revenue Capacity: 5 Assessed Value and Estimated Actual Value of Taxable Property 71 6 Principal Property Taxpayers 72 7 Property Tax Levies and Collections 73 Debt Capacity: 8 Ratios of Outstanding Debt by Type 74 9 Statement of Debt Limitation 75 10 Legal Debt Margin Information 76 Demographic and Economic Statistics: 11 Demographic and Economic Statistics 77 12 Principal Employers 78 Operating Information: 13 Full-Time Equivalent Town Government Employees by Function/Program 79 14 Operating Indicators by Function/Program 80 15 Capital Asset Statistics by Function/Program 81 Introductory Section TOWN OF PLYMOUTH, CONNECTICUT For Fiscal Year Ended June 30, 2011 PRINCIPAL OFFICIALS MAYOR AND TOWN COUNCIL BOARD OF FINANCE Vincent Festa, Jr., Mayor Ralph S. Zovich, Chairman Councilman Martin Sandshaw Victoria A. Carey, Vice-Chairman Councilman John C. Wunsch Patricia A. Budnick Councilman Tom Zagurski Peter Cook Councilwoman DiAnna Schenkel Daniel Murray III Councilman David Sekorski Michael Drozdick ADMINISTRATION Registrar of Voters – Democrat Cheryl J. Gianesini Registrar of Voters – Republican Barbara L. Deschaine Assessor Rae Ann Walcott Tax Collector Linda A. Hood Director of Finance David J. Bertnagel Treasurer David J. Barbieri Human Resources Manager William Bellotti Town Attorney Salvatore Vitrano Town Clerk Barbara K. Rockwell Fire Marshal John Schubert Human Services Coordinator Abigail Egan Judge of Probate Andre Dorval Director of Planning and Economic Development Khara Dodds Town Engineer Anthony A. Lorenzetti Zoning Enforcement Officer David Elder Police Chief Karen M. Krasicky Fire Chief Mark Sekorski Civil Preparedness Director Paul Schwanka Building Official Clarence B. Atkinson Director of Public Works Anthony A. Lorenzetti Medical Director Dr. Antonio Scappiticci Library Director Lynn White Parks and Recreation Director Brian Forman Superintendent of Schools Dr. Anthony W. Distasio BOARD OF EDUCATION Raymond Engle, Chairman Patrick A. Perugino Mark E. Berube Roxanne M. Perugino Gerard Bourbonniere Daniel Santorso Karen E. Kulesa Martin E. Wetzel Anthony J. Orsini i TOWN OF PLYMOUTH ORGANIZATIONAL CHART VOTERS Board of Finance Constables Board of Education Library Directors Board of Assessors Judge of Probate Board of Tax Review Town Clerk Registrar of Voters Tax Collector Town Treasurer MAYOR COUNCIL Appoints Appoints Approves Planning and Zoning Town Attorney Director of Public Works Commission Director of Civil Conservation and Zoning Board of Appeals Preparedness Inland/Wetland Commission Board of Police Urban Renewal and Housing Director of Welfare Commissioners Agency Water Pollution Control Director of Human Services Housing Board of Appeals Authority Parks and Recreation Cemetery Committees Director of Finance Commission Redevelopment Agency Board of Fire Commissioners Housing Authority Director of Volunteer Building Inspector Fire Chief Ambulance Corps Dog Warden Fire Marshal Human Services Commission Administrative Assistant Director of Health Sanitarian ii Town of Plymouth Comptroller’s Office 200 Years of Quality Service 80 Main Street, Terryville, Connecticut 06786 Telephone: (860) 585-4001 Fax: (860) 585-4015 December 21, 2011 To the Honorable Mayor, Members of the Town Council, Members of the Board of Finance and Citizens of the Town of Plymouth: State law requires that all general-purpose local governments publish within six months of the close of each fiscal year a complete set of financial statements. This report is published to fulfill that requirement for the fiscal year ended June 30, 2011. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of material misstatements. Blum, Shapiro & Company, Certified Public Accountants, have issued an unqualified (“clean”) opinion on the Town of Plymouth’s financial statements for the year ended June 30, 2011. The independent auditors’ report is located at the front of the financial section of this report. Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complement this letter of transmittal and should be read in conjunction with it. PROFILE OF THE GOVERNMENT The Town of Plymouth was incorporated in 1795, making it the one hundred third town established in the State of Connecticut. Plymouth is located in Litchfield County, approximately twenty-one miles southwest of Hartford and five miles north of Waterbury. The Town is contiguous to the Towns of Wolcott, Thomaston, Harwinton, Burlington, and the Cities of Waterbury and Bristol. Plymouth covers a 22.4 square mile area. Plymouth is a community predominantly composed of owner-occupied, single-family dwellings. Single- family dwellings comprise over 80% of all housing units in the Town. During the 2010 U. S. Census, the Town population was 12,243. iii To the west of Plymouth is Connecticut Route 8 which provides north-south interstate connections from Bridgeport to the Massachusetts border. Connecticut Routes 6, 72, 222 and 262 also serve the Town. Rail service is available connecting with Waterbury and the south, while coach and motor freight companies serve the Town’s residents and businesses. Local firms are involved in a wide range of products and services with nearly 200 commercial properties and over 100 industrial facilities contributing to the Town’s tax base. Products manufactured in Town include conduits, screw machines, modular buildings, airplane equipment, and chemicals. In 1965 the Town adopted its first Plan of Development. As part of that plan, and subsequent revised plans, comprehensive planning and zoning regulations have been enacted to reflect current development standards and practices. These have resulted in a balanced economy, improved residential development and have helped to stabilize the tax rate. The most recent Plan of Development was adopted in April 2005. The Town’s educational system consists of two elementary schools, one middle school and one high school. Form of Government The Town of Plymouth is organized under the Council-Mayor form of government. The Town Charter was adopted in the 1974 and most recent revisions were approved by voters in November 2009. The legislative function is performed by a bipartisan Town Council of five members, who are elected biennially for two-year terms. The Town electorate elects a Mayor for two-year terms. The Board of Finance consists of six members who serve staggered six-year terms. Two members are elected to the Board of Finance in each municipal election. A referendum vote is retained under the Charter for approval of the annual budget. The Board of Finance recommends the annual budget for the referendum that is held before May 3. Upon approval, the Board of Finance sets the tax rate. NATIONAL, STATE & LOCAL ECONOMY The national economy is still recovering and will take some time as we are coming out of a major recession. As the economy recovers there