Anne Clewell Graphic Design, LLC | BC / CAFR 2013 | 120413 City of Baltimore Maryland Comprehensive Annual Financial Report DRAFTYear Ended - UNAUDITED June 30, 2013 1 Anne Clewell Graphic Design, LLC | BC / CAFR 2013 | 120413 City of Baltimore, Maryland Comprehensive Annual Financial Report Year Ended June 30, 2013 Prepared by the Department of Finance Harry E. Black Director of Finance Bureau of Accounting and Payroll Services Henry J. Raymond Deputy Director of Finance DRAFT - UNAUDITED 469 City Hall, 100 N. Holliday Street, Baltimore, Maryland 21202 I Anne Clewell Graphic Design, LLC | BC / CAFR 2013 | 120413 ELECTED OFFICIALS MAYOR Stephanie Rawlings-Blake PRESIDENT OF THE CITY COUNCIL Bernard C. Young COMPTROLLER Joan M. Pratt BOARD OF ESTIMATES PRESIDENT Bernard C. Young MAYOR Stephanie Rawlings-Blake COMPTROLLER Joan M. Pratt DIRECTOR OF PUBLIC WORKS Alfred H. Foxx CITY SOLICITOR George A. Nilson CITY COUNCIL Bernard C. Young, President Edward Reisinger, Vice-President FIRST DISTRICT EIGHTH DISTRICT James B. Kraft Helen Holton SECOND DISTRICT NINTH DISTRICT Brandon M. Scott William “Pete” Welch THIRD DISTRICT TENTH DISTRICT Robert Curran Edward Reisinger FOURTH DISTRICT ELEVENTH DISTRICT Bill Henry William H. Cole IV FIFTH DISTRICT TWELFTH DISTRICT Rochelle “Rikki” Spector Carl Stokes SIXTH DISTRICT THIRTEENTH DISTRICT Sharon Green Middleton Warren Branch SEVENTH DISTRICT FOURTEENTH DISTRICT Nick Mosby Mary Pat Clarke DRAFT - UNAUDITED II Anne Clewell Graphic Design, LLC | BC / CAFR 2013 | 120413 City of Baltimore Comprehensive Annual Financial Report Year Ended June 30, 2013 TABLE OF CONTENTS Page INTRODUCTORY SECTION (UNAUDITED) Title Page ........................................................................................I Elected Officials ..................................................................................II Table of Contents . III Letter of Transmittal..............................................................................VII Municipal Organization Chart .....................................................................XVI FINANCIAL SECTION Report of Independent Auditors . 1 Management’s Discussion and Analysis (unaudited) . 3 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position . 16 Statement of Activities....................................................................... 17 Fund Financial Statements: Balance Sheet — Governmental Funds . 18 Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds . 19 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities .................................. 20 Statement of Net Position — Proprietary Funds . 21 Statement of Revenues, Expenses, and Changes in Net Position — Proprietary Funds . .22 Statement of Cash Flows — Proprietary Funds . 23 Statement of Fiduciary Net Position — Fiduciary Funds ...............................................24 Statement of Changes in Fiduciary Net Position — Pension and OPEB Trust Funds . 25 Index to the Notes to Basic Financial Statements........................................................ 26 Notes to the Basic Financial Statements . 27 Required Supplementary Information: Schedule of Revenues, Expenditures and Encumbrances, and Changes in Fund Balance — Budget and Actual — Budgetary Basis — General Fund .............................................................. 75 Schedules of Funding Progress —Pension Trust Funds and OPEB Trust Fund . 76 Schedule of Employer Contributions — OPEB Trust Fund............................................. 76 Notes to the Required Supplementary Information....................................................... 77 Combining and Individual Fund Statements and Schedules: Combining Balance Sheet — Nonmajor Governmental Funds .......................................... 82 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances — Nonmajor Governmental Funds . 83 Schedule of Revenues, Expenditures and Encumbrances, and Changes in Fund Balance — Budget and Actual — BudgetaryDRAFT Basis — Special Racetrack Fund -...................................................... UNAUDITED84 III Anne Clewell Graphic Design, LLC | BC / CAFR 2013 | 120413 Page Combining Statement of Net Position — Nonmajor Proprietary Funds ................................... 86 Combining Statement of Revenues, Expenses, and Changes in Net Position — Nonmajor Proprietary Funds.......87 Combining Statement of Cash Flows — Nonmajor Proprietary Funds .................................... 88 Combining Statement of Net Position — Internal Service Funds ........................................ 90 Combining Statement of Revenues, Expenses, and Changes in Net Position — Internal Service Funds . .90 Combining Statement of Cash Flows — Internal Service Funds......................................... 91 Combining Statement of Fiduciary Net Position — Pension Trust Funds .................................. 94 Combining Statement of Changes in Fiduciary Net Position — Pension Trust Funds......................... 95 Combining Statement of Assets and Liabilities — Agency Funds.........................................96 Combining Statement of Changes in Assets and Liabilities — Agency Funds .............................. 97 STATISTICAL SECTION (UNAUDITED) Financial Trends .................................................................................103 Net Position by Component, Last Ten Fiscal Years ..................................................105 Changes in Net Position, Last Ten Fiscal Years..................................................... 106 Fund Balances, Governmental Funds, Last Ten Fiscal Years........................................... 107 Changes in Fund Balances, Governmental Funds, Last Ten Fiscal Years ................................. 108 Revenue Capacity............................................................................... 109 Property Tax Levies and Collections, Last Ten Fiscal Years . 111 Assessed and Estimated Actual Value of Taxable Property, Last Ten Fiscal Years . 111 Direct and Overlapping Property Tax Rates, Last Ten Fiscal Years...................................... 112 Principal Property Taxpayers, Current Year and Nine Years Ago . 112 Debt Capacity.................................................................................. 113 Ratios of Outstanding Debt by Type, Primary Government, Last Ten Fiscal Years.......................... 115 Ratios of General Bonded Debt Outstanding, Last Ten Fiscal Years ..................................... 116 Direct and Overlapping Governmental Activities Debt ............................................... 117 Legal Debt Margin Information................................................................. 117 Pledged Revenue Coverage, Last Ten Fiscal Years . 117 Demographic and Economic Information..............................................................119 Demographic and Economic Statistics, Last Ten Calendar Years . 121 Principal Employers, Current Year and Nine Years Ago . 122 Operating Information . 123 Full Time Equivalent Employees by Function, Last Ten Years ......................................... 125 Operating Indicators by Function/Program, Last Ten Fiscal Years . 126 Capital Asset Statistics by Function/Program, Last Ten Fiscal Years . .127 DRAFT - UNAUDITED IV Anne Clewell Graphic Design, LLC | BC / CAFR 2013 | 120413 Introductory SECTION • Letter of Transmittal • Organization Chart DRAFT - UNAUDITED V Anne Clewell Graphic Design, LLC | BC / CAFR 2013 | 120413 (THIS PAGE INTENTIONALLY LEFT BLANK) DRAFT - UNAUDITED Anne Clewell Graphic Design, LLC | BC / CAFR 2013 | 120413 CITY OF BALTIMORE DEPARTMENT OF FINANCE HARRY BLACK, Director 454 City Hall STEPHANIE RAWLINGS-BLAKE, Mayor Baltimore, Maryland 21202 Honorable President and Members of The Board of Estimates City of Baltimore, Maryland June 20, 2014 In compliance with Article VII, Section 8, of the revised City Charter (November, 1964), submitted herewith is the Comprehensive Annual Financial Report (CAFR) of the City of Baltimore, Maryland, (the City) for the year ended June 30, 2013. The CAFR was prepared by the City’s Department of Finance. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe that the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and changes in financial position of the City; and, that all disclosures necessary to enable the reader to gain the maximum understanding of the City’s financial affairs have been provided. The CAFR is presented in three sections: introductory, financial, and statistical. The introductory section includes this transmittal letter and the City’s organizational chart. The financial section includes the auditor’s opinion, management’s discussion and analysis, basic financial statements with related notes, and required supplementary information with related notes. The financial section also includes the combining and individual fund financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. Management has provided a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of a Management’s Discussion and Analysis